Larry Kudlow, a prominent economic commentator and former director of the National Economic Council, did not hold back his criticism of the Commerce Secretary’s recent response to a significant revision in the U.S. jobs report. During an appearance on Fox Business’s The Big Money Show, hosted by Brian Brenberg, Jackie DeAngelis, and Lydia Hu, Kudlow labeled the Secretary’s response as “pathetic,” expressing deep concern over the state of the economy and the handling of these job revisions.
A Disappointing Response
Kudlow began his critique by calling the Commerce Secretary’s response “pathetic” and “horrible.” He acknowledged that she is considered one of the better members of the current administration’s cabinet but was clearly unimpressed with her handling of the revised job numbers. Kudlow’s dissatisfaction stems from the significant downward revision of 813,000 jobs, which he emphasized was not a minor error. Within this revision, the manufacturing sector alone saw a loss of 115,000 jobs, a concerning development for an industry that has historically been a backbone of the American economy.
Manufacturing in Decline
Kudlow didn’t mince words when discussing the state of manufacturing in the U.S. He pointed out that the latest data shows a manufacturing recession, with industrial production and business equipment investments falling steadily for nearly two years. Kudlow also referenced the ISM manufacturing survey, noting that it has declined for 21 straight months, save for a small bump in March. This persistent downturn, Kudlow argued, indicates deeper economic issues that the current administration seems unwilling or unable to address effectively.
Housing Market Woes
The housing market, another critical component of the economy, also came under Kudlow’s scrutiny. He highlighted that housing starts are in recession, and existing home sales, despite a slight uptick in recent months, are still significantly below levels seen during the Trump administration. This decline in the housing market is troubling, as it not only reflects the struggles of the construction industry but also impacts consumer confidence and spending, which are crucial for overall economic health.
Consumer Spending: The Last Pillar
Kudlow noted that consumer spending is the only factor currently propping up the economy. However, he warned that even this pillar is shaky, with much of the spending driven by government assistance rather than organic economic growth. This reliance on government support, Kudlow argued, is not sustainable in the long term and could lead to more significant economic challenges down the road.
A Precarious Economic Position
Summarizing his concerns, Kudlow stated that the economy is in a “more precarious position than people might have thought.” The revisions to the job numbers, which include the loss of 68,000 jobs per month – primarily in the private sector – paint a much grimmer picture of the U.S. economy than what has been publicly acknowledged by the administration. Kudlow’s assessment suggests that the U.S. is facing significant economic headwinds that could worsen if not addressed with sound fiscal policies.
Taxation Policies Under Fire
The discussion then turned to taxation policies, with Jackie DeAngelis highlighting proposals from Vice President Kamala Harris to raise taxes, do away with the Trump tax cuts, and introduce taxes on unrealized capital gains. Kudlow responded by labeling Harris as a “taxer,” criticizing her support for the Biden administration’s budget, which includes significant tax increases. He warned that raising the top personal tax rate would not only impact wealthy individuals but also small businesses, which are the backbone of the American economy.
Unaddressed Economic Issues
Kudlow expressed frustration that despite the pressing economic issues, key figures at the DNC convention, including former President Bill Clinton, have avoided discussing these topics. Kudlow noted that Clinton, who had a strong economic record in his second term, did not mention the current economic challenges. Instead, the focus has been on attacking former President Donald Trump, which Kudlow sees as a missed opportunity to address the real issues facing the nation.
A Call for Serious Economic Discussion
In his closing remarks, Kudlow expressed hope that Vice President Harris might address her economic plans more substantively in her upcoming speech. However, he remained skeptical, pointing to the lack of focus on economic issues during the DNC convention so far. Kudlow reiterated his concerns about the current administration’s economic policies, particularly the $2 trillion budget deficit and the reliance on government spending to prop up the economy. He warned that without a serious discussion on these issues, the U.S. economy could face even greater challenges in the future.
The Need for Honest Economic Dialogue
Kudlow’s critique serves as a reminder of the importance of transparency and honesty in economic policymaking. The significant revisions to job numbers and the ongoing struggles in key sectors like manufacturing and housing should prompt serious discussions about the direction of the U.S. economy. Kudlow’s frustrations with the lack of attention to these issues highlight the need for leaders to address economic realities head-on, rather than sidestepping them for political convenience. As the economy continues to show signs of strain, policymakers and the public must engage in a meaningful dialogue about the best path forward.
“Ignorant About the Economy”
People in the comments shared their thoughts: “What has Harris done in 3.5 years that she is now saying she is gonna fix? Come on ppl. You have to see through all this BS.”
Another commenter added: “20 million illegal immigrants costing on average 68k dollars. Am I wrong or is that about 1.36 trillion dollars!! Unbelievable”
One person said: “The Commece Secretary is a fool and she exposed herself to be ignorant about the economy as well.”
Economic Uncertainty Ahead
As the U.S. grapples with these economic challenges, Kudlow’s warnings should not be taken lightly. The revisions to job numbers, the decline in manufacturing and housing, and the contentious taxation policies all point to an economy that may be more fragile than it appears on the surface. Whether the current administration can address these issues effectively remains to be seen, but one thing is clear: the time for serious economic discussion is now.
Recent Job Revisions
What do you think? How significant are the recent job revisions in signaling potential long-term economic challenges, and what might they reveal about the current administration’s handling of the economy? With manufacturing and housing sectors showing signs of recession, what steps should be taken to revitalize these critical parts of the economy? How sustainable is the current reliance on consumer spending, particularly when much of it is driven by government assistance? What might happen if this support diminishes?
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