FOX Business host Larry Kudlow discussed Vice President Kamala Harris’s recent advocacy for new government spending plans on the show “Kudlow.” Kudlow critiqued Harris’s approach as a form of big government socialism, arguing it has proven ineffective. He highlighted that, according to a TIPP/Insights poll of 1,488 adults, 54% believe Harris’s economic ideas lean toward socialism. This sentiment spans political affiliations, including 38% of Democrats, 53% of Republicans, and 49% of independents.
The TIPP/Insights article, titled “Her holistic socialism exposes deep economic ignorance and total unpreparedness,” shares similar criticisms. During a recent speech in Pittsburgh, Harris addressed issues such as homeownership and economic planning from a holistic perspective. She proposed her third economic plan in two months, reiterating policies like price controls, a $25,000 housing fund, a $6,000 refundable child tax credit without work requirements, and the repeal of the Trump administration’s tax cuts.
Critics argue these measures, including $100 billion in tax credits for selected industries, are ineffective. Instead, they suggest that allowing individuals and businesses to retain and manage their funds would be more beneficial.
Kudlow pointed out that the Biden-Harris administration has spent trillions on targeted subsidies and tax credits, with little to show in terms of industrial output or new investment. Citing a Wall Street Journal editorial, he noted that despite increased spending on factory construction, the manufacturing sector’s performance has remained stagnant for two years.
The administration claims to have created 800,000 new manufacturing jobs, but critics state these were merely recoveries from pandemic losses rather than genuine growth. Under the Trump administration, 450,000 manufacturing jobs were created, including within targeted industries such as semiconductors and batteries. Additionally, real wages in manufacturing have decreased since Biden-Harris took office.
The critique posits that free-market policies are more effective than government-directed assistance. It mentions former President Donald Trump’s proposal to reduce the corporate tax rate from 21% to 15% for domestic producers and to allow 100% full expensing for depreciation, contrasting with Harris’s plans to increase the corporate rate and abolish specific deductions beneficial to small businesses.
The article concludes by comparing inflation rates under Biden-Harris and Trump, noting a significant rise during the current administration. Despite Federal Reserve measures reducing inflation to below 3%, it remains above the target rate. Kudlow asserts that Harris’s big government approach has been unsuccessful and promotes a return to capitalist free-enterprise solutions.
This commentary is adapted from Larry Kudlow’s opening statement on the September 26, 2024, edition of “Kudlow.”