FOX Business host Larry Kudlow sounds optimistic about the US economy on ‘Kudlow.’
What’s wrong with 5% growth? Or more?
To repeat my New Year’s message that Trump’s economic recovery could bring growth of 5, 6, or even 7%, there are numbers today that are just as strong as I thought. Economists take note: Mr. Trump knows the economy better than you. And what’s wrong with 5% growth, or better?
The Atlanta Fed GDPNow for Q4, which you remember was the closing quarter, was revised up to 5.4%. Meanwhile, economic output, one of the most important variables, has reached 4.5% in the past two quarters. That comes out per hour, in the non-farm economy. Maybe More importantly, the productivity of non-financial corporations increased by 3.8% over the past two quarters. Thus, trend productivity of around 4% opens the door to economic growth of 5% (or more).
US Ambassador to NATO Matthew Whitaker joins ‘Mornings with Maria’ to discuss President Donald Trump’s Venezuelan oil strategy and the national security focus on the possible purchase of Greenland.
And again, I want to remind everyone of the biggest story that has never been told: the plunge in oil prices is a positive oil shock, which means it’s like a big tax cut for consumers and business, which means Trump’s inflation is replacing Biden’s inflation. And oil inflation after almost 5 years of the covid era, Biden inflation is a very good thing for the economy. Democrats are completely paralyzed and paralyzed by the success of President Trump’s economic policies: supply-side tax cuts, deregulation, ‘drill, baby, drill’, and free and fair trade.
As the numbers come in, and as Team Trump markets themselves, the prospect of a midterm election looks stronger and stronger for the GOP. Treasury man Scott Bessent speaking at the Minnesota Economic Club (is Minnesota Economic Club an oxymoron?) reminded people of the wages and productivity and growth benefits of full cost of factories, equipment, and farm buildings. CapEx business investment spending is up 12% in the first three quarters of last year, but even he appears to be reaping the benefits of the economy-wide drop in oil prices.
There will be negative CPI prints that will appear. That’s how important power is. It’s not just fuel, although that’s mild. There are hundreds of other prices that have been affected by the drop in petroleum prices. Meanwhile, initial jobless claims continued to fall by their four-week average, and the trade deficit in October narrowed as expected.
Gatestone Institute senior fellow Gordon Chang joins ‘Mornings with Maria’ to discuss China’s pushback against President Donald Trump’s seizure of Venezuelan oil and what it means for US and global power.
And here is Mr. Trump and his ‘drill, baby, drill’ purge communism from the Western Hemisphere in the Trump Corollary to the Monroe Doctrine. And to move the combination of oil energy from the Persian Gulf to the Americas, right where it belongs.
