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Kudlow: 'Trump Is Biggest Trade Reformer in Decades'

(Evan Vucci/AP)

By    |   Tuesday, 05 June 2018 05:17 PM

White House economic adviser Larry Kudlow contends that the global trade system has been broken for decades and President Donald Trump is the first leader to actually try and fix it.

“President Trump is the biggest trade reformer in decades and decades,” Kudlow, director of the White House's National Economic Council, told Fox News.

“The world trading system is broken. There is no reciprocity. People have been raising trade tariffs. They have been raising non-tariff barriers. It doesn't help us," said Kudlow, who served as the Trump campaign's senior economic adviser.

"Poor trade deals actually damaged the American economy down through the years,” Kudlow said.

The veteran financial guru and former Ronald Reagan adviser said Trump “regards himself as a free trader and I certainly am. But you can't get free trade with unfair trading practices, stealing technology, stealing intellectual property. China is probably worst offender of this but all countries are guilty. America is most competitive. If you lower barriers, we will export a ton. That will drive our economy up and help the other economies as well.

He predicted steady, ongoing economic growth of at least 3 percent, which he said would be a “tremendous achievement.”

To be sure, Friday’s blockbuster jobs data capped a long line of recent strong economic reports which has led to much brighter forecasts for American growth under Trump.

The Atlanta Fed on Friday said it expects U.S. gross domestic product (GDP) to expand at a 4.8 percent pace in the second quarter, up from 4.7 percent on May 31. Friday's revision was just the latest in a recent handful of surging revisions. On May 25, the measure predicted four percent GDP growth. Meanwhile, the New York Fed’s Nowcast also rose Friday, to 3.5 percent from 3.0 percent a week ago

The improved forecasts come even as the stimulus from a $1.5 trillion income tax cut package and increased government spending is yet to be fully felt.

“Goes to show you if you lower tax rates and allow people to succeed and reward their success, and you open up small businesses by getting all the regulatory red tape out of the way, people will respond," Kudlow explained.

"America is a very entrepreneurial economy. I hope the rest of the world thinks about that at this G7 conference,” said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

Kudlow also touted the overall economic strength in America since Trump took office.

“If you take a look at the confidence surveys, small businesses have the highest confidence survey in the record of that survey. Consumers in general and large businesses in general. So the confidence surveys are like polls. And he is doing very well,” he said of the president.

“The growth is very clear. We're getting it from the business investment side. We're getting from the consumer side. We're getting it from the jobs side,” he said. “Minority unemployment is reaching record lows.”

Meanwhile, the government said Friday that U.S. job growth accelerated in May and the unemployment rate dropped to an 18-year low of 3.8 percent, pointing to rapidly tightening labor market conditions.

The strong employment report added to a string of recent upbeat economic data, including consumer spending, industrial production and construction spending, that have suggested economic growth was regaining speed early in the second quarter after expanding at a moderate 2.2 percent annualized rate in the January-March period, Reuters explained.

The Atlanta Fed forecasts a big boost in private sector fixed investment, which includes capital investment in machinery, land, buildings, vehicles, and technology, Breitbart reported.

The Atlanta Fed had expected this to expand at a 4.6 percent rate but after the release Friday of a construction spending report from the U.S. Census Bureau and the Manufacturing ISM Report on Business from the Institute for Supply Management, the growth pace was increased to a 5.4 percent rate. Consumer spending is expected to grow at a 4.6 percent rate, up from 3.4 percent prior to the Friday data releases, the Atlanta Fed said.

For his part, the president has taken to Twitter to tout his administration's economic accomplishments.

"The U.S. has an increased economic value of more than 7 Trillion Dollars since the Election. May be the best economy in the history of our country. Record Jobs numbers. Nice!" he wrote.

(Newsmax wire services contributed to this report).

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White House economic adviser Larry Kudlow contends that the global trade system has been broken for decades and President Donald Trump is the first leader to actually try and fix it.
kudlow, trump, trade, reformer, economy
Tuesday, 05 June 2018 05:17 PM
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