Tags: larry kudlow | donald trump | chuck schumer | budget

Larry Kudlow: Gov't Shutdown Talks Sharpen Anger at Washington

By    |   Friday, 19 January 2018 04:44 PM

Larry Kudlow, the Reagan administration economist who also advised the Trump campaign, said a possible shutdown of the federal government likely will have little long-term effect on the economy or markets — but it will make voters more angry at Washington.

Lawmakers have until Friday at midnight to pass a short-term spending bill to avoid a shutdown. The House on Thursday night passed a bill that appears less likely to get through the Senate. Democrats are demanding that the legislation include protections for young undocumented immigrants.

Senator Chuck Schumer of New York, the Democratic leader, had a closed-door meeting with President Trump at the White House that didn’t result in a deal to avert a shutdown, The New York Times reported.

Kudlow said a bigger portion of the government workers are now considered “essential” — meaning they are required to show up for work even if they don’t get paid — than when he worked in the White House Office of Management and Budget during Reagan’s first term.

“In my day, it was only about 16, 17, 18 percent essential. Today, actually, given government expansion, it’s almost up to 50 percent essential,” Kudlow said on business news channel CNBC. “What that means is a lot of people including the military will not get paid. They’ll get it back later, but they’re going to be working for free, so will a lot of the cops and firefighters and first responders. That’s very unfair.”

Requiring people to work while delaying their paychecks only supports the idea that President Donald Trump repeated during his presidential campaign – that Washington is a dysfunctional morass.

“This whole story makes the public angrier at the government, Congress and the swamp,” Kudlow said.

He also said issues like immigration reform are unlikely to get resolved during this round of budget discussions, and that Trump has some negotiating leverage against Democrats because of his success on tax reform.

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Larry Kudlow, the Reagan administration economist who also advised the Trump campaign, said a possible shutdown of the federal government likely will have little long-term effect on the economy or markets -- but it will make voters more angry with Washington.Lawmakers have...
larry kudlow, donald trump, chuck schumer, budget
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2018-44-19
Friday, 19 January 2018 04:44 PM
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