Does the White House want the economy to boom or bust? "Kudlow" host Larry Kudlow asked in his opening monologue Friday while slamming President Biden’s proposed tax hikes on the heels the April jobs report which wildly missed expectations.
LARRY KUDLOW: Today’s job report gave us the biggest miss in history, how is that? 266,000 new jobs. The entire economics profession, including me, expected around 1 million. Well, so it goes. Stocks loved it, they absolutely adored it, because it probably guarantees more free money from the Fed, forever. President Joe Biden sort of liked it, because he’s arguing his stimulus plan is working.
President Joe. You just had the biggest jobs miss in history, nearly 800,000 lower than expected, so that doesn’t sound so great for your stimulus plan, right? Then, of course not for your tax plan, because you’re going to hike $4 trillion in taxes which doesn’t sound like much of a plan if the job market is under-performing. Then again, Mr. Biden argues we need more stimulus in order to bail out the jobs market. Well, heck. He’s at 4 trillion, why stop there? Why not go to 6 trillion? And by the way, all this be on top of the current services budget spending, which, if I get this right, is around 4 trillion, so you’d be $10 trillion layered on all this other economic stuff because today’s number was only 266,000. It seems like a pretzel twist to me I really don’t understand the logic. I never have. We’re going to pour cash into the economy, to stimulate, but then we’re going to tax cash out of the economy, which is recessionary. So somebody in the West Wing should make up their mind. You want a boom? Or do you want a bust?
Now you can appreciate the conundrum folks. Putting this all high-level policy stuff aside. I have to think today’s jobs report was basically a fluke. That’s right, a fluke. It doesn’t correlate with any other economic statistics. Be it housing, manufacturing, services, ISM’s, trucking, business capital investment, huge profits, there is a boom out there, and the jobs report just missed it. By the way, the boom is still being led by Trump rules, want to make this point. Operation Warp Speed, that was the vaccines. Low taxes, minimal regulations, and energy independence. So far Mr. Biden’s plan has not been enacted except for the 1.9 trillion stimulus, which had a temporary bump-up in March consumer spending in jobs, but you’re not get much bang for your buck just look at today’s number if you’re worried about it. Mr. Trump’s policies are already leading to higher productivity, and real wages, if only they’d be left in place, if it ain’t broke, don’t fix it. You knew I was going to say that.
For the first four months of the year, jobs have jumped 1.8 million. That’s not nothing and that’s just if Biden would just quit meddling with the economy, you could have four or 5 million new jobs in 2021 which be fabulous.