White House National Economic Council Director Larry Kudlow appears to have been converted into a fan of New York Democratic Rep. Alexandria Ocasio-Cortez – at least where one of her economic viewpoints is concerned.
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During an interview with "Fox & Friends" on Thursday, Kudlow said he would like to sit down with the congresswoman to discuss supply-side economics, after he was impressed by her line of questioning during hearing on Capitol Hill this week with Federal Reserve Chair Jerome Powell.
Kudlow was referencing an exchange where Ocasio-Cortez asked Powell about the so-called “Phillips Curve,” which is the idea that inflation and unemployment are inversely related. She suggested that the theory does not describe conditions in the current economy.
Powell admitted the Phillips Curve hasn’t worked in years.
Inflation in the U.S. has remained low while the unemployment rate also hovers near multi-decade lows.
Kudlow praised Ocasio-Cortez for “getting that out of the chairman” – saying it has been both his and the president’s position.
“I’m just saying nobody in life is all good or all bad and I’ve got to give hats off Ms. AOC, [she] kind of nailed that and I’m hoping she and I can sit down and talk supply-side economics very soon,” he added.
It’s not the first time Ocasio-Cortez’s economic views have generated interest.
She is a big reason an economic theory known as modern monetary theory (MMT) has become a big headline recently, after she said she was “absolutely” open to supporting MMT as a means to fund social programs – like Medicare-for-all and free college tuition.
The idea behind MMT is that if a government controls its own currency, there is no need to worry about balancing the budget. Therefore, the government – not the central bank – can control the economy through fiscal policies, like spending and taxing.
Independent Vermont Sen. Bernie Sanders has also indicated support for the policy.
However, it has some powerful detractors – including Microsft co-founder Bill Gates and Powell.