Trump’s ‘America First’ Platform Promises a High-Growth Second Term — Without Inflation

Tax cuts, a strong dollar, regulatory relief, and ‘drill, baby, drill’ policies will be counter-inflationary — unless the Federal Reserve starts printing excess money.

AP/Chris Szagola, file
President Trump on June 22, 2024, at Philadelphia's Temple University. AP/Chris Szagola, file

There’s nothing inflationary about President Trump’s “America First” platform. If Trump’s economic policies generated essentially no inflation during his first term, why is it that people on Wall Street and elsewhere keep telling us that virtually the same policies in a second term will suddenly boost inflation?

I don’t get it. Where’s the logic? I would even argue that Trump’s policies in a second term will be growthier, without inflation.

In his first term, Trump slashed the corporate tax rate, executed across the board regulatory red-tape relief, promoted fossil fuel production, fought unfair trading practices, and kept our southern border relatively closed.

The average inflation rate over his entire four-year term was 1.9 percent at an annual rate.

Now, reading through Trump’s newly released platform, his agenda aims to slash regulations, cut taxes, secure fair trade deals, “drill, baby, drill,” and, importantly, keep the dollar as the world’s reserve currency, also known as King Dollar.

So, tell me again where the inflation is going to come from?

The only real cause of inflation is if the Federal Reserve starts printing boatloads of excess money. If Trump wants the American dollar to be “America First” in world currency markets, though, that’s not going to permit the Fed to go berserk in creating unwanted dollars.

By the way, in Trump’s platform documents he talks several times about curbing unnecessary and wasteful spending. Again and again, the platform talks about defeating inflation.

And, as he turns the fossil spigots back on, oil prices could drop closer to $40 a barrel than to $85 to $100 a barrel.

That is major league counter inflation.

And preserving Mr. Trump’s corporate tax cuts, as well as restoring capital depreciation bonuses — that will raise real worker wages, as it did in the first term, and enhance productivity as a result of the buildup of innovation and investment.

That whole process is counter inflationary.

Stopping President Biden’s border catastrophe will restore law and order and public safety, and that is like a tax cut for families and small businesses — which is always counter inflationary.

Meanwhile, open borders are not the pro-growth labor tool that some left-wing economists think it is. It sure has increased federal, state, and local spending on food, housing, and healthcare, though, crowding out traditional entitlements, and raising prices in many of those areas. Especially housing.

I remember the so-called smart money on Wall Street was opposed to Trump back in 2016, and thought his corporate tax cuts would just boost deficits and inflation.

Tax cuts and a strong dollar is always growthier — not inflationary.

From Mr. Kudlow’s broadcast on Fox Business Network.

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