Economy

Kudlow’s ‘No Stimulus’ Pledge Lasted Three Days

JM Ashby
Written by JM Ashby

It feels almost too easy to dunk on Larry Kudlow, but I think there's something else we can draw from this.

Trump's top economic adviser spoke to reporters outside the White House just a few days ago where he said the Trump White House will not talk to members of Congress about passing more stimulus before the end of the month, but they are talking.

Several Trump regime officials appeared on the Sunday talking head shows where they admitted they're talking to Congress.

Officials in President Donald Trump's administration, including Treasury Secretary Steven Mnuchin and White House economic adviser Larry Kudlow, said they were holding discussions with lawmakers on issues including potential aid to states whose finances have been devastated by the pandemic. [...]

On CBS's "Face the Nation," [Kevin Hassett] said the U.S. unemployment rate could rise to somewhere "north of 20 percent" in May or June before the economy moves into what administration officials have said will be a robust recovery in late 2020.

Asked if the country could now be facing a "real" unemployment rate of close to 25 percent, Mnuchin replied: "We could be." Such a rate also includes people who have lost jobs and are not actively seeking employment and people considered underemployed.

Even if they sincerely believe the economy will see a miraculous turnaround later this year, they evidently don't believe we can get there without a large government spending package. The former chairman of the White House Council of Economic Advisers, Kevin Hasset, even said the next stimulus package could include an expansion of food stamps.

Members of his regime and Trump himself project an image of confidence in public, but Kudlow's declaration that they won't talk to Congress only lasting about three days tell us the economic data they're looking at is not Great Again.

Trump and his team will be increasingly desperate as we grow closer to the presidential election and I think House Speaker Nancy Pelosi should stick to her guns and extract as much as she can from Trump while he's willing to sign almost anything that makes it past congressional Republicans and onto his desk.

I don't know where that line is, but Pelosi's proposals, such as sending Americans more stimulus checks, tells me she's going to ask for more than before and see what she can get by Senate Majority Leader Mitch McConnell.

  • muselet

    Huh.

    I wonder if this is a matter of the right hand not knowing what the far-right hand is doing or if sending out mixed signals like this is a cloud of squid ink to obscure the administration’s ongoing inability to organize a booze-up in a brewery.

    Could be both, I suppose.

    –alopecia