Larry Kudlow, a host on FOX Business, discussed former President Donald Trump’s plan to rejuvenate American industrialism on the program “Kudlow.” This segment coincided with a Wall Street Journal editorial that critiqued President Biden’s claims of a manufacturing boom, noting that U.S. industrial output has remained stagnant over the past two years. Trump presented his vision for a renewed American industrialism in a speech delivered in Savannah, Georgia.
The Wall Street Journal highlighted that the ISM purchasing managers index for manufacturing has shown near-constant contraction since autumn 2022, with most manufacturing job gains under the Biden-Harris administration being recoveries from the pandemic. Additionally, jobs and hours worked have seen declines since October 2022, and real average weekly wages for manufacturing workers dropped by 2.7% since January 2021. This is despite substantial Biden-Harris subsidies and tax credits aimed at advancing the Green New Deal.
Overregulation, particularly climate-related, has been blamed for inhibiting growth in most hard goods industries, compounded by rising inflation and increased electricity prices. Industries such as paper, cement, glass, steel, iron, and chemicals were significantly affected by the Biden EPA’s climate rules.
In contrast, Trump’s proposal focuses on reducing taxes, energy costs, and regulatory burdens. He articulated his plan to offer the lowest taxes, energy costs, and regulatory burdens to major companies and manufacturers worldwide, on the condition that they produce their products in the United States. This initiative, referred to as the new American industrialism, aims to boost sectors like shipbuilding, aerospace, robotics, artificial intelligence, and electricity production.
A key component of Trump’s strategy is the introduction of a 15% made in America tax rate, lowering the business tax from its current 21% to make the U.S. one of the most competitive tax environments globally, exclusively for those manufacturing domestically. This plan also includes substantial regulatory cuts.
Some Republican House members have already proposed legislation to implement the 15% corporate tax rate. Trump has endorsed a provision for a 100% expensing write-off for heavy machinery and equipment in the first year, promoting full expensing for manufacturing investments. Lastly, he aims to reduce regulatory burdens by eliminating 10 old regulations for every new one introduced.
Trump’s new American industrialism embodies his pro-growth policies, emphasizing job creation and industrial revitalization. The program’s commentary, as detailed by Kudlow, underscores the former president’s ongoing efforts to position the U.S. as a leading manufacturing power.
This analysis is derived from Larry Kudlow’s opening remarks on the September 24, 2024 edition of “Kudlow.”