Larry Kudlow: Biden inherited a V-shaped resurgence from Trump and turned it into a crisis

Larry Kudlow: Biden inherited a V-shaped resurgence from Trump and turned it into a crisis

As we’ve said many times on this show: Americans are smarter than Joe Biden thinks. No matter how many displays of cognitive dissonance from Mr. Biden or lies or — to use a word I don’t like to apply to presidents, but have to in this case — outright lies, Americans see light.

You simply cannot tell the public that there is no inflation when the prices of food, groceries, electricity, natural gas and cars are rising sharply. Even with the recent decline in gas prices, they still rose 26% over the past year. As a result, workers were forced to take a 3.4% pay cut during this period.

That’s why I don’t blame the railway workers for demanding higher wages. They are just trying to catch up with the higher prices. They do not control government spending and monetary taps. They are victims of very bad policies.

Mr. Biden’s zero inflation “celebration” on the White House lawn is a slap in the face for these folks. When he says he “inherited” an economic crisis and turned it into a “resurgence”, that is simply not true. People know it. In fact, he inherited a V-shaped resurgence from President Trump and turned it into a crisis. No amount of James Taylor songs will change that.

The economy grew by around 6.5% in the first quarter of 2021, with inflation around 1.5%. So far this year, the economy has contracted into negative territory and more could come. The Atlanta Fed’s GDP tracker was marked for the third quarter from 2.6% to just 0.5%.

The CPI is up 8.3% from a year ago, and of course people are feeling it in their bones and budgets. The Cleveland Fed’s median CPI, which is a very useful measure of core inflation, is now at 6.7% after rising month after month and as the economy slides deeper into recession , we are experiencing a price-wage spiral that is built into the economy. . Milton Friedman called it “inflationary recession. These days we call it “stagflation” and Biden’s Democrats are now at war with the Federal Reserve.

BANK OF AMERICA WARNS NEW LOWS FOR S&P 500 AS ‘INFLATION SHOCK IS NOT OVER’

President Joe Biden on Saturday urged major G20 energy-producing nations with spare capacity to ramp up production to ensure a stronger global economic recovery as part of a broad effort to pressure OPEC and its counterparts. partners to increase oil supply. (AP Photo/Evan Vucci/AP Newsroom)

The former continues to spend and borrow like there’s no tomorrow, while the Fed tightens money. It’s not good. Actual inflation is three to four times higher than fedThe 2% target and the Biden team gives Jay Powell & Co. no alternative but to tighten even more aggressively, which will hurt the economy even more, which frankly isn’t what anyone no one wants, including me.

Instead of turning on all the energy taps or cutting taxes or scrapping trade regulations, the Bidens are turning off the taps, raising taxes, and marching toward big government socialism with their massive central planning regulatory assault.

For now, the offer is dead, while Democrats weed out whatever radical and progressive programmatic itch they can. Think of it this way: the economy has no oxygen. His veins are completely clogged and Mr. Biden continues to say that is not the case, but the facts clearly say otherwise. Again, Americans are not stupid. Now listen to a top Biden ally. See for yourself :

HILLARY CLINTON: “This midterm election is going to have a lot of energy from women and men who don’t want government, don’t want politicians like Abbott or anybody else coming into their lives. Enough with the absurdity of sending those poor Venezuelans to Martha Vineyard or excusing a former president who stole classified information.”

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With the greatest respect, Madam Secretary, these leftist causes are not going to drive the midterm elections. Of course, I respect voters who agree with you, but this election is going to be an election against inflation, an election against recession, an economic election. There are plenty of problems in the air, but none will be as dominant in November as America’s economic descent.

Let me end on an optimistic note. Biden’s failed policies will be changed. Why? Because the vast majority of people know they need to be changed. Men and women of good faith and common sense will change them simply because people know that change is absolutely essential to making America great again. That’s why the cavalry is coming and that’s my riff.

This article is adapted from Larry Kudlow’s opening comment in the September 16, 2022 edition of “Kudlow”.

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