Newsmax Finance Insider Larry Kudlow is fed up with the way global central banks have been trying to revive the economy.
Nothing they have done has worked. So there’s really only one option left, he told CNBC.
“Overthrow the establishment. Now's the time,” said the CNBC senior contributor who also hosts a syndicated radio-talk show. "Overthrow the establishment," urged Kudlow, who was a former economic adviser to President Ronald Reagan.
“We need a different model. In other words, zero interest rates, or negative interest rates, and tons and tons of government spending for all these G-7 countries have not worked,” he said.
“We have global stagnation, a virtual global recession. And we have virtually no inflation,” he said “Something's got to change here,” he said.
He offered his own solution to right the sinking U.S. economic ship.
“I recommend an across-the-board slashing of corporate tax rates for large and small businesses in the U.S. I would start right there to reignite growth and then give the Fed a chance to normalize their interest rates," he said.
"I do not approve of what the Fed or these other central banks are doing. I have never favored it, QE, negative rates even worse. The trick is how to get out of this with minimal damage. Let's cut the corporate tax, that will pick up business investment and it will pick up productivity,” he said.
"I think one of the candidates, Donald Trump, has a very significant business tax cut for large and small companies. And I favor that. He also is a de-regulator, and I favor that,” he said.
Trump and fellow Newsmax Finance Insider Stephen Moore are helping Trump's campaign revamp a controversial tax plan
that would've likely added $10 trillion to the deficit, Politico
reports. Trump's initial plan was criticized for expanding the deficit, according to the Tax Foundation
, by an estimated $10 trillion in the next decade.
Meanwhile, Kudlow says Hillary Clinton "has a different world view."
Kudlow says Clinton is "talking about raising regulations and more spending. And with respect to taxes, she wants to raise the capital-gains tax, that's bad for productivity in jobs,” he said.
“We don't know her views yet on the corporate tax. But she also wants to raise upper income personal taxes. So I think she has the wrong model," he said.
"Mr. Trump is closer to the truth. It ain't perfect, but it's closer to the truth. Let's think outside the box. We need new pro-growth fiscal policies, taxes and regulations, and then let the central banks follow suit,” he said.
He even has a timetable for the next commander-in-chief.
“First 30 days, the next president slashes business tax rates right away. The economy reignites, real interest rates go up and the fed follows by raising their target rate and we get out of this mess. And they let their whole bond portfolio runoff. That's how we get out of this business," he said.
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