Larry Kudlow: These climate policies would lead to a global economic and financial catastrophe

There they go again, Joe Biden and company there on the campaign trail telling us how great their economic policies have been. stop. Scrap “Wonderful.” Insert “successful,” spectacularly successful economic policies.

The problem is, in barely over a year, Bidnomics has taken a non-inflationary boom and turned it into a high-inflation bust. To be honest, I’m glad to see my dear friends on the editorial board of the Wall Street Journal, at least until the cavalry arrives and changes Congressional policies this November. Treasury Secretary Janet Yellen Work.

She is leading the Biden economic victory tour, but unfortunately, she has supported all of the far-right Democratic Party’s progressive big-government socialist policies.

He believes that the $2 trillion stimulus package of March 2021 was necessary to boost the economy. The trouble is that the economy was already in a V-shaped recovery coming out of the pandemic, fueled by President Trump’s policies of low taxes, deregulation and open fossil fuels.

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US Treasury Secretary Janet Yellen has issued a new inflation forecast and admitted that an analysis she presented in May on inflation was incorrect. (Photo by Chung Sung-joon/Getty Images) (Photo by Chung Sung-joon/Getty Images/Getty Images)

Ms Yellen, who is an accomplished economist and a former Fed chairman And married to a distinguished Nobelist, she is speaking with a prickly tongue. His analysis is false. In addition, she was leading the charge with Jay Powell and Joe Biden, which created inflationary pressures from extravagant government spending, massive government borrowing, and Fed money-printing.

These are all domestic policies that preceded the invasion of Ukraine by Vladimir Putin. The reason for these huge fiscal mistakes was the 8% inflation rate. This is why Ms Yellen’s reputation is declining. Personally, I hate watching it. Professionally, I have to talk about it.

As the Wall Street Journal points out (and I’ve said it dozens of times on this show over the past year) the Trump tax cut increased real wages for blue-collar working people and minorities. The unemployment rate for those groups fell to a 50-year low. Poverty decreased. Inequality decreased.

The biggest winners from personal and business tax deductions were middle- and low-income people — not the top earners. These are facts. Speaking in Detroit, Ms Yellen argues that Trump’s tax cuts have caused higher inequality and slower growth. She is factually wrong and she knows it. With Mr Biden’s 8% inflation rate, real worker wages have actually fallen 3.5% over the past year.

The first bullet in today’s White House Economic Blueprint Fact Sheet says that workers are being empowered. Oh, forgot about falling real wages and family income!

They talk about making and making in America, but wait a second, you can’t get a permit to build or build anything in Biden America. Their passionate environmental regulations have put almost everything to a halt. All that energy—and, by the way, even general road-building infrastructure—can’t get it past the hardliners in the White House and the EPA.

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Reward work, not money, they say. Well, every model—government or private sector—shows that Biden’s recent legislation would heavily tax the middle class and that the IRS will spend its time unloading on the middle class and virtually no one in the entire US population believes that inflation reduction bills. will decrease. inflation– Literally none.

I will end my talk with this thought. This radical global warming, the obsession with climate change that informs every single policy of the Joe Biden administration, is driving the US and world economy into an unstoppable economic decline. Hat tip to the Wall Street Journal’s Joseph Sternberg for his latest column, “The Coming Global Crisis of Climate Policy.”

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There is no climate emergency. All this is the central planning socialist fabric, which is trying to embrace this bureaucratic religion by our necks. Fossil fuels generate about 85% of the world’s electricity, even after decades of government subsidies and crazy-quilt regulatory schemes, but what if none of these climate policies are “net-zero this, or net-zero that, or we are taking your car away from you, or we won’t let you run our air conditioner” or virtually any of these crazy policies that just want America to unplug, if any of that stuff actually passed , then it would be a global economic and financial disaster.

Friends, I want to go home with a positive attitude during the weekend. Why? Because the cavalry is coming and that’s my crack.

This article is adapted from Larry Kudlow’s opening remarks on the September 9, 2022 edition of “Kudlow.”

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