Larry Kudlow on Government Shutdown, Economic Boom, and Trump's Economy

The Government Shutdown

• ⚠️ The government shutdown is described as a pointless, stupid, and damaging action, driven by "Trump derangement syndrome" rather than genuine policy concerns.
• 🎯 It's argued that continuing the shutdown will damage the careers of many politicians, not just Chuck Schumer.

The Booming Economy

• 📈 The stock market is presented as evidence of an economic boom brewing, with the Dow Jones Industrial Average reaching a record high.
• 💰 This boom is seen as benefiting millions through brokerage accounts, 401(k)s, IRAs, and union pension funds.
• 📊 The market's optimism is attributed to strong profits and the positive impact of immediate expensing policies.

Economic Performance Under Trump vs. Biden

• 📉 Critics who claim prices are not down are countered by data showing real wages declined by $4,000-$5,000 under Biden.
• 💡 Under Trump, the inflation rate is cited as 2.5% annually, significantly lower than Biden's average of 5.5%, and well below the 9% peak.
• ⛽ Gasoline prices are noted to be in the $2.50-$2.75 range in over half the country, a positive trend.

Addressing Inflation and Grocery Prices

• 🍳 While some prices are up, others are falling rapidly, with eggs down 30% since President Trump took office.
• 📉 The breakfast basic index (eggs and a bagel) has fallen 14% over the last 6 months.
• ☕ Tariffs on items like coffee beans and bananas are criticized as silly and damaging, with a focus shifting to more important national security issues like advanced design chips.

Housing and Mortgage Rates

• 🏠 The proposed 50-year mortgage is deemed a bad idea due to nearly double the interest expense over 30 years, leading to indentured servitude to banks.
• 🛠️ The core problem in housing is identified as a lack of supply, requiring deregulation at local levels.
• 💰 Mortgage rates have come down to about 6.10-6.20%, and incomes are rising, with the Atlanta Fed wage tracker showing a 4.1% rise in median wages.