America’s Economy Is Booming Right Now, and It Does Not Need a Dose of Democratic Party Socialism

Now, look, the key to American prosperity is not socialism. It’s not communism. It’s not some bizarre big government statist combination that generates weird, un-American values. Those folks are dead wrong.Right now the economy is booming. More people are working than ever before. Working, investing, producing. We are the envy of the world. We don’t need to emulate the Chinese Communist Party or the old Soviet Union, or North Korea, or Iran or any of the other places that these Democratic socialist crazies are in bed with.Take today’s job report — private sector payrolls were up, and government payrolls were down. In a sense that’s all you need to know.Actually, since Donald Trump became president, private sector jobs have exploded upwards by 877,000. While federal jobs have fallen by 327,000. It is a reordering of the economy from President Biden’s socialism to Mr. Trump’s free enterprise. Even more important, for the first time in many years, manufacturing is booming. Not only were the Institute for Supply Managers’ surveys up for the seventh straight month, but July marks the fifth straight month of goods-producing job growth. As Treasury Secretary Scott Bessent has written, by creating 105,000 jobs so far this year, goods-producing employment has had the best seven-month start since 2023. On top of that, productivity growth has more than doubled the expected rate, and is now 2.2 percent above a year ago. As a result, cost push inflation is negligible, unit labor costs are rising only 1.2 percent, and that allows profits to be growing by an extraordinary 25 percent year on year. So today, the broad based S&P 500 index hit a new record high.The Atlanta Federal Reserve is now predicting near 6 percent economic growth in the third quarter. Productivity growth is surging at more than 2 percent. Goods producing jobs like manufacturing and construction are up 105,000 so far this year. The stock market is roaring. There’s more than 160 million Americans at work that shows you we are as strong as we have ever been.The unemployment rate is at a historically low 4.1 percent. Employee wages are rising across the income distribution. Noteworthy is that the lower earnings percentiles are rising faster than the top earners.Median weekly wages up 4.6 percent, while the bottom quartile is up 5.5 percent. This shows we don’t need socialist government regulators to redistribute income. Instead as Mr. Trump cut taxes across the board last year in the One, Big, Beautiful Bill, the labor force has responded to the age-old incentive that when you tax something less, like work, you get more of it. Or simply, when you let people keep more of what they earn, they respond with hard work. The big government socialism of the Biden years produced a 21 percent inflation increase, as it tried to centrally plan the economy. Yet their high taxes and enormous government spending, completely back-fired. And that’s why when these new even further extreme socialists talk about affordability in a state-run economy, they have no credibility at all. They were proven badly wrong during the Biden years, but the whole issue of a socialist planned economy has been proven badly wrong every place it has ever been tried. No doubt, the Republicans would do themselves a favor if they adopted a new budget of pro-growth tax cuts and spending restraint to end the Biden-esque waste fraud and corruption. The GOP promised to drain the swamp and add some powerful supply-side stimulus. Politically, that’s their missing link right now. Yet to think that some Democratic Party socialism or even communism, is gonna replace the prosperity from free market enterprise, is pure folly. From Mr. Kudlow’s broadcast on Fox Business Network.

America’s Economy Is Booming Right Now, and It Does Not Need a Dose of Democratic Party Socialism

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