Fox Business' Stuart Varney couldn't get a straight answer from Trump's economic advisor as to why the deficit is exploding, and wages aren't rising enough with economic growth and Trump's tax cuts.
Larry Kudlow joined Stuart on Varney & Co., to discuss the nation's economy. After doing his usual rah-rah cheer-leading nonsense, Kudlow couldn't answer why things are not working out for the American people as Team Quantitative Easing promised.
Varney pointed out that wages are barely rising for Americans in this economic boom.
Kudlow, "That's the incentive..."
Varney, "Wages have to rise to pull people out of early retirement --"
Varney, "But when are we going to see it?
Kudlow replied, "Wages are rising..."
Varney, "No that much above inflation."
Kudlow tried to muddy his questions by saying, "There are different measures of wages -- running about a percentage point above inflation."
He's agreeing with Varney without admitting it and then veered off into employment records, Ronald Reagan and the 1980's.
Larry monologues, "We are crushing it, Okay?"
Kudlow, "Psychologically, Trump comes into office, the confidence measures start the day after he's elected and has not stopped rising, that's significant and has not stopped..."
He is saying, just take a swing at the ball, Okay? Go for it; I have got your back. This is psychological confidence issue that is so important, and you see the optimism coming out everywhere, okay? The big companies, the middle companies, and most of all, the small, new companies."
It's the confidence fairy that will save you!
Corporations look at numbers, not fairies.
Varney, "With the economy doing so well, we're growing what, 4%, why is the deficit going up? It is not supposed to be like that, is it? Strong growth, higher deficit. You know it is not supposed to be like that."
Larry babbled about supply-side economics and said, "First of all the deficit came out $100 billion then CBO, first thought. That is not nothing. 3.9% of GDP. That is quite manageable. Now, the issue here, we have to keep growing, which we will. This is not a one-time growth. We'll have recurring growth, a huge investment boom, capital is pouring into the U.S."
See, we keep growing and growing and growing and soon the economy will be the 50 Foot Woman!
This is the usual garbage from conservative economists.
The tax cuts were irresponsible and foolish and were a huge gift for the wealthy they didn't need or deserve. TRump's tax cuts are strangling the federal government because 31% less revenue is coming in from corporations and with the added military spending, the deficit has risen dramatically.
And wages are rising at a minuscule rate during a low unemployment economy. That's very bad.
Tax cuts don't pay for themselves.
They go into the pockets of greedy big money people, Larry.