Here’s a Simple, Clear State of the Union Message

Someone asked me at a briefing earlier today what I would say in a State of the Union address. My answer was pretty simple and clear: I’d slash spending, cut tax rates, deregulate, and have the Fed maintain honest money. That’s right, that would be my view. If we had such policies, we’d be growing the economy about 3.5 percent a year, like we did in the post-World War II period — instead of the 1.5 percent a year trend line we’ve been on for some time. Less spending, lower taxes, limited regs, sound money — that equals prosperity. That’s right, nice and simple. I guess getting there is politically a little harder. It doesn’t matter to me which political party offered to be steward of a new economic prosperity. I’d say the chances are, nowadays, the Republicans have a higher probability than the Democrats, and unfortunately President Biden, who will give the State of the Union speech tonight, has virtually no probability. Mr. Biden will defend his economic stewardship, and it’s going to sound a lot different than what I just outlined. He may even tell a lot of untruths during the speech. I sincerely hope not, but that’s my concern. On the other hand, Americans are very smart and polls unanimously show they’re not buying Mr. Biden’s economic prowess. Here’s one reason why: In the last four quarters alone, real wages for blue-collar workers have fallen 1.4 percent. That’s the worst since 2011. Since Mr. Biden became president, the cost of living has gone up 14 percent. In terms of real dollars, working people are losing about $15 a week, or $60 a month. It’s this decline in real wages that has been the soft underbelly of the Biden economy since Day 1. Because of the overspending and the overregulating and the war on fossil fuels and the taxing and the inflation, Mr. Biden has never been able to escape the public’s disapproval. We will see tonight if he is willing to compromise with Speaker McCarthy on a debt ceiling increase that includes structural spending reductions. The new Republican speaker gave an excellent State of the Union “prebuttal,” which among other things emphasizes the need for work requirements for social benefit programs. Over the last several years, as many as 7 million able-bodied people have left the workforce because government benefits pay more than the private sector. This is not only bad in economic terms, it undermines the dignity of work and, to some extent, the very soul of America. Mr. Biden is probably going to call for higher taxes on successful earners, more redistributionary policies, and more disincentives to work, save, invest, start new businesses, and grow the economy. So, I don’t think he would subscribe to my view of the optimal State of the Union message. Oh, well, we’ll wait until next year, or maybe the year after that. I’m a patient man. I know what works: Save America. Stop the spending. Go back to work. From Mr. Kudlow’s broadcast on Fox Business News.

Here’s a Simple, Clear State of the Union Message

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