After the expiration of COVID-19 jobless bonuses this summer, former Trump chief economist Larry Kudlow noted President Joe Biden finally delivered “a strong employment report,” but it will not last if Democrats get their way on tax-and-spend bills.
“The unemployment rate went down, wages went up, hours worked went up – these are very healthy developments; everybody wants to trash the Biden economy, but looking at it empirically,” Kudlow told Sunday’s “The Cats Roundtable” on WABC 770 AM-N.Y., “and putting politics aside, this is actually a strong employment report.”
Kudlow hailed some economic “momentum” but warned to host John Catsimatidis of potentially damaging consequences of the $3.5 trillion budget reconciliation plan being considered as a companion bill to the $1.2 trillion infrastructure deal.
“The economy is doing better,” he said. “It’s still Trump’s economy until the [Democrats] start ruining it with higher taxes and more regulations. If it ain’t broke don’t fix it. We don’t need $6 trillion of so-called spending stimulus.”
Kudlow warned the “European-style entitlement system” plans “would discourage work.”
“Consumers are very, very strong,” Kudlow continued. “Most of all, corporate profits are very strong, and profits are the mother’s milk of stocks, and the lifeblood of the economy.”
The Senate has agreed to keep U.S. spending and the federal government in business under a continuing resolution, but Republicans must not break on spending like Democrats want to in their proposed bills.
“If Biden’s [spending plan] gets through, it’s going to do great damage,” Kudlow concluded. “You’ll see some of the damage toward the middle of next year or later. And they will slow things down very badly. It will be a wet blanket.”