Kudlow gives Trump an economic advisor who understands conservative policy

Kudlow gives Trump an economic advisor who understands conservative policy
March 15 19:17 2018 Print This Article

President Donald Trump announced this week that economist Larry Kudlow will replace former Wall Street executive Gary Cohn as his chief economic advisor.  The position does not require Senate confirmation.  Kudlow was an economic advisor to former President Ronald Reagan, who ushered in an economic boom in the 1980s.  He went on to become chief economist at brokerage House Bear Sterns and has been a commentator at the business network CNBC since 2001.

Cohn was known as a major Democrat donor who did not have a strong background in international trade issues or small business issues.  Kudlow is a well-respected conservative who understands the plight of American manufacturers, who have lost a lot of ground since the inception of the World Trade Organization in the 1990s.  Kudlow is likely to push for a move to index capital gains taxes on investment profits for inflation and to lower the capital gains tax rate.  Presidents Bill Clinton and George W. Bush both got Congress to lower the capital gains tax rate, and capital gains revenue increased in both cases, due to increased investment.

Many economic indicators have improved since Trump got elected.  The February 24 first-time unemployment claims report showed the lowest number of claims since 1969.  313,000 jobs were created in February, with strong growth in construction and manufacturing.  The 4.1% unemployment rate is the lowest in 17 years.  Wage growth of 2.6% exceeds the inflation rate.

Tax cuts and regulatory reform are credited with much of the recent economic growth.  More than 4 Million workers have received bonuses, pay raises or improved benefits so far in 2018.  Kudlow has the depth of experience to “sell” pro-growth economic policy which will improve the standard of living for ordinary American families.  He will help President Trump with the messaging needed to influence Main Street USA.