This may sound far-fetched, but it seems to me that now would be a good time to talk about a return to a balanced budget in Washington DC. That’s right, a balanced budget.
In the midst of out of control federal spending, deficit financing, borrowing, printing money – and let’s not forget we have a president who thinks more spending would actually reduce inflation – I think I I’m going to encourage everyone to embrace a new idea: save America, balance the budget.
Now, that’s not entirely new. I talked about it with our next guest, Newt Gingrich, for many months this year and he has a whole segment in his American Majority Project on the balanced budget.
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We also talk about it at the America First Policy Institute with Russ Vought, myself and Brooke Rollins. We will draw one.
In the last balanced budget, at the end of the 1990s, during the presidency of Newt Gingrich, the political orientation of these balanced budgets came from the contract with America.
Now, here’s a key thought in economic terms. The balanced budget, if done correctly, would produce rapid economic growth and low inflation. That’s right. Strong growth, low inflation.
Today, with massive spending deficits and huge deficits, we have low growth and high inflation. It’s time for a change. Newt thinks — and I agree — that Republicans, Democrats and independents would welcome a balanced budget initiative.
After the collapse of Biden’s radical and progressive experiment, which Newt aptly calls “great government socialism,” it’s time to return to common-sense ideas that would revolve around a return to free-market capitalism.
Proposing a balanced budget today would not only emphasize tough limits on federal spending, but would also include making permanent Trump’s tax cuts, a return to deregulation, and support for a strong and reliable dollar king.
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Also, the principle of workfare, where taxpayer benefits for various forms of welfare, food stamps, health care and all too many to count costly subsidies and programs littered with the $4 trillion federal budget dollars, would be based on work and education requirements.
That was Senator Joe Manchin’s contribution in our so far successful quest to save America and kill the bill, but low marginal tax rates could generate supply-side growth and take us back to the period post-World War II, when real growth in the United States averaged about 3.5% for about 50 years. We did it once and we can do it again. Let’s go back to free market incentives to stimulate more work, productivity and family incomes, low rates, minimal regulation and minimal federal spending.
Joe Biden’s woke economy and woke culture are rejected by the American public. Its idea of income redistribution, its aversion to successful men and women in business, its inflationism, its attacks on parents and families, its painful and costly initiatives for a green new deal, its contempt for border sovereignty – it all adds up to the progressive agenda he has stuck with in the face of growing unpopularity.
Not only did he damage the culture and assault the economy, but frankly, he also tore the Democratic Party apart. This is where a balanced budget policy could become an organizing principle for all sorts of important reforms in the economy and culture.
Remember, Biden budgets funded massive inflation, but they also funded left-wing woke social policies, including critical race theory, savage teachings about gender and sexuality in early schooling, new social justice agencies across government, sweeping climate regulations that are killing us at the pumps but literally stopping energy from fueling the economy.
Massive new regulatory burdens are an assault on business in general and, of course, fossil fuel business in particular, and it’s all backfired, as these sweeping progressive policies have always done wherever they’ve been tried. throughout history.
In a rather dull and dark time during this small slice of Biden’s history, I choose to remain resolutely optimistic about America’s future. With Uncle Joe’s approval polls running into the thirties, I see his new progressive era drawing to a close before long.
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Yes, the cavalry is coming. This is the gospel of good news, and somewhere in that good news, I think a balanced budget aimed at high growth, low inflation, and new family prosperity is an important organizing principle.
Save America. Balance the budget.
This article is adapted from Larry Kudlow’s opening comment in the May 16, 2022 edition of “Kudlow”.