As spring reaches full-tilt, American economic optimism has hit a new stride. Bolstered by an accelerating vaccine program, the US workforce returned in droves as states lifted pandemic mandates, while the Dow climbed 160 points in its 4th straight week of gains. And while nothing good lasts forever, many are concerned the Biden administration is already sabotaging the American recovery with his new infrastructure bill.
“Nothing’s forever, that’s for sure,” Larry Kudlow told The Cats Roundtable on Sunday, airing his concerns that Biden’s commitment to hiking corporate tax rates and greenwashing US power would stifle the recovery and current economic boom.
“It could last a good long time if team Biden would just leave things alone,” Kudlow cautioned. “We don’t need major tax increases, we don’t need giant regulatory increases, we don’t need to destroy fossil fuels, we don’t need to become non-competitive again worldwide—if it ain’t broke, don’t fix it.”
The gains on Wall Street, and the inevitable return of US workers, were an indicator to Kudlow that Biden’s spending is what Democrats want, but not what Americans need.
Biden’s commitment to progressive ideology has wider implications on the international stage, particularly with China, implications that Kudlow believes would leave the US on the back foot. While trying to transition to electric cars, under the current supply chain, most of the batteries necessary for electronic vehicles are made in China.
“It’s very true China has the bulk of the rare-earth minerals that go into the batteries,” Kudlow noted, believing it would only run up the trade deficit that the Trump administration had tried to balance.
But the consequences perhaps have their deepest echo here at home. Kudlow noted the goal of the Green New Deal was to steer money away from fossil fuels with massive subsidies in solar and wind power.
“If the so-called infrastructure plan goes through, including its large tax hikes and these Green New Deal plans, it will throw a wet blanket over our economic boom,” Kudlow warned. “And you will see that reflected in the stock market before long.”
Listen to the interview below