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Kudlow: G-7 Can Learn From Trump's Extraordinary Growth

Kudlow: G-7 Can Learn From Trump's Extraordinary Growth
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By    |   Friday, 08 June 2018 01:59 PM

White House economic adviser Larry Kudlow points out that President Donald Trump has defied “cynics and the doubters” and has presided under “extraordinary” economic growth Group of Seven leaders would be wise to recognize.

“The cynics and the doubters said it couldn’t happen. But just 500 days into his presidency, President Trump has demolished the fashionable and fatalistic theories of permanent secular stagnation,” Kudlow wrote in an opinion-editorial piece for The Washington Post.

The veteran financial guru and former Ronald Reagan adviser described Trump “as the leader not just of the largest and fastest-growing ­G-7 economy in the world but also as the most important pro-growth reformer” of modern times.

Kudlow has repeatedly said Trump's economic accomplishments are clearly evident in countless recent government dfata reports that tout small-business confidence, consumer sentiment and job growth.

“Thanks to the president’s leadership, America is entering a new era of economic growth and prosperity that promises to be larger and longer than we have seen in decades. The remarkably strong U.S. economy holds some key lessons for other economically advanced democracies,” wrote Kudlow, assistant to the president for economic policy and director of the White House’s National Economic Council.

“[O]ur friends and foes alike should recognize that President Trump has been remarkably faithful in keeping his campaign promises. From massive tax cuts to historic regulatory reduction to forcefully challenging one-sided international agreements, he has done exactly what he said he would do. There’s a simple lesson in President Trump’s record of achievement: Believe him,” the White House reported Kudlow as writing.

“Nowhere is this lesson clearer than when it comes to President Trump’s passion as a trade reformer. President Trump supports a vision of free trade that is fair and reciprocal. As a pro-growth reformer, the president understands that fair and reciprocal trade can knock down barriers, open up export markets and increase investment, which is the path to lasting economic growth,” Kudlow wrote.

“But this vision has been thwarted in recent decades by a lack of reciprocity, along with unfair and often illegal trading practices, including massive intellectual property theft. Country after country has been putting our global trading system at risk by raising tariffs and non-tariff barriers, protecting sectors from automobiles to agriculture. So do not blame President Trump for taking decisive actions that protect our American workers,” wrote Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

“Past U.S. administrations — both Republican and Democrat — have paid only lip service to dealing with this breakdown. Not President Trump. He has shown courage and decisiveness to prevent harm to the American economy and its workforce, “ Kudlow wrote.

“As a lifelong free trader myself, tariffs have not been my preferred policy tool. But at a time when nations have become so unwilling to play by the rules and restore reciprocity, tariffs are a wake-up call to the dangers of a broken trading system that is increasingly unfree,” wrote Kudlow, who served as the Trump campaign's senior economic adviser.

Kudlow isn't alone in is praise of Trump.

Economists Stephen Moore and Arthur Laffer wrote in The Wall Street Journal Friday that Trump deserves credit for the economy’s improvement, not former President Barack Obama.

Moore, a senior fellow at the Heritage Foundation, and Laffer, the chairman of Laffer Associates, write that “Mr. Obama might be justified in taking credit for today’s economy if his successor had adopted and carried on his policies. Instead, Mr. Trump has reversed nearly every Obama rule, edict and law that he can legally overturn."

The two wrote that "at its core, the Trump economic strategy wasn’t complicated: systematically repeal Mr. Obama’s ‘accomplishments’—the tax increases, the regulatory blitz on business, the welfare expansions, the war on American fossil fuels, and so on. As a result, the economy would pop like a cork pulled from a shaken champagne bottle.”

They go on to note the predictions made by former Obama advisers and prominent Democrats before Trump assumed office, which claimed that Trump winning would lead almost immediately to another recession.

“The smart set argued that getting economic growth to 3% was virtually impossible. Yet 18 months into Mr. Trump’s tenure, the economy is already nearing that mark, with no recession in sight. It turns out that 3 percent growth seemed impossible to the left only because Mr. Obama’s Keynesian policy prescriptions failed to do the trick,” they wrote.

“It’s a little rich that liberals who warned the economy would melt down under Mr. Trump are now insisting that growth was in the cards all along. If the economy and the stock market had crashed, it’s obvious they’d be sanctimoniously denouncing Trumponomics as a tragic failure.”

Moore and Laffer, who have a new book coming out called “Trumponomics: Inside the America First Plan to Get Our Economy Back on Track,” conclude that “Mr. Obama’s approaches to taxes, energy and regulation were wrongheaded. In that sense, they really did set up President Trump for this big economic rally—by giving him bad policies to repeal.”

For his part, Trump said Friday he wants to use the G-7 summit to resolve what he called unfair trade deals with US allies.

America's closest allies are bracing for a showdown with Trump at the G7 summit, as anger at being slapped with trade tariffs by their most powerful member threatened to split the club.

Four days before Trump's ice-breaking summit with North Korea's leader Kim Jong Un in Singapore, the president can expect a far chillier reception when he hops across the border to Canada.

Much of his fellow members' anger stems from Trump's recent imposition of tariffs on imported steel and aluminum.

But relations had already been soured by the US pullout from the Paris climate accord and the Iran nuclear deal.

(Newsmax wire services Reuters, AFP and Bloomberg contributed to this report).

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White House economic adviser Larry Kudlow points out that President Donald Trump has defied “cynics and the doubters” and has presided under “extraordinary” economic growth Group of Seven leaders would be wise to recognize.
larry kudlow, trump, g7, growth, economy
Friday, 08 June 2018 01:59 PM
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