Kudlow warns Biden policies ‘fighting a war’ against jobs and wages

Kudlow: Yellen let ‘cat out of the bag’ suggesting interest rates may need to rise

FOX Business’ Larry Kudlow discusses interest rate concerns and what will keep the economy stable.

FOX Business' Larry Kudlow, while discussing President Biden's agenda to rebuild the American economy, argued that the president’s policies are "fighting a war against worker jobs and wages," during an appearance on "Mornings with Maria." 

LARRY KUDLOW: The house is not on fire, there is no crisis, there's no economic crisis, there's no longer a vaccination crisis. All the businesses are now opening up. There is no existential threat from global warming.

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So the Bidens are kind of running out of ammunition to sell this massive $4 trillion add-on to the $1.9 trillion. That, by the way, is a spending number, but it also is a taxing number.

You know, if it ain't broke, don't fix it. That continues to be my mantra.

The stimulus checks played a modest role in consumer spending. By the way, the stimulus checks also helped to stimulate China. 

I don't think that was the intended consequence, but our trade deficit with China has now become gargantuan. It's almost like a straight line up because consumer spending here is buying Chinese goods over there. That's not a good policy mix. 

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What we need is investment and productivity. But unfortunately, Biden policies, I don't know that they'll get through, but Biden policies are fighting a war against investment and capital formation, which means they're fighting a war against worker jobs and wages because the jobs and the wages come from the investment into the new businesses…

And Janet Yellen kind of let the cat out of the bag. She was speaking the truth, if only for an hour or two, until the White House got to her and she had to walk that back. I've seen this before. It'll happen again…

Eventually, the Fed's going to have to stop the free money. They're not going to do it right away for sure. But free money on top of huge spending and taxing, that is not a good policy mix.

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