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Tags: kudlow | middle | class | boom | economy

Kudlow: US Experiencing 'Middle-Class Boom'


By    |   Thursday, 19 December 2019 10:26 PM EST

White House Economic Council director Larry Kudlow proclaims that the U.S. is experiencing a "middle-class boom."

"Wage earners, people on the production line, are making faster wage increases than their managers," the veteran financial guru and former Ronald Reagan adviser recently told Fox Business Network.

He said America is experiencing a "terrific economy" and "it's not over yet," said Kudlow, who served as the Trump campaign's senior economic adviser.

"Average income, nationwide, is up $5,000 after tax. The prior two administrations, it was flat," said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

Among corporations, many have taken advantage of the lower corporate tax rate which Trump cut to 21 percent from 35 percent, Fox explained.

"Next year is going to be a terrific year, absolutely terrific year," Kudlow said.

Kudlow also told Fox Business Network he would be thrilled to get started on tax cuts 2.0 with Trump.

"If he mentions tax cuts 2.0, and I'd love to do it, he will be talking about something that's under process and wouldn't be published until we're well into the campaign later next year," Kudlow said.

Meanwhile, the Atlanta Federal Reserve lifted its gross domestic product estimate for the fourth quarter back above 2% in the wake of recent strong economic data on housing and factories.

The Atlanta Fed GDP Now boosted its fourth-quarter GDP growth estimate to a 2.3% rate from a 2% pace on Friday.

The regional arm of the central bank boosted estimates for Q4 real consumer spending and real gross private domestic investment growth, and trimmed the estimate for real net exports.

The economy grew at a 2.1% rate in the third quarter. The economy grew at a 2.0% pace in the April-June period.

However, another regional central bank wasn't as optimistic. The economy is expected to expand by 0.7% in the last quarter of the year, compared to the previous week's estimate of 0.6%, the Federal Reserve Bank of New York's latest Nowcasting Report showed on Friday. For the first quarter 2020, the N.Y. sees growth of 0.8%.

The Atlanta Fed revision came hours after U.S. homebuilding increased more than expected in November and permits for future home construction surged to a 12-1/2-year high as lower mortgage rates continue to boost the housing market and support the broader economy, Reuters explained.

The economy's near-term prospects were also bolstered by other data on Tuesday showing a strong rebound in manufacturing production in November as the return of formerly striking General Motors' workers boosted automobile output. The data suggested the economy remained on a moderate growth path in the fourth quarter despite slowing consumer spending.

But the economy's improving fortunes could prove temporary. Boeing said on Monday it would suspend production of its best-selling 737 MAX jetliner in January as fallout from two fatal crashes of the now-grounded aircraft drags into 2020.

Boeing's biggest assembly-line halt in more than 20 years could wreak havoc on supply chains, and offset some of the lift to business confidence from easing trade tensions. The production stoppage is expected to undercut manufacturing and exports, and ultimately crimp economic growth.

"The economy never seems to be fully out of the woods," Chris Rupkey, chief economist at MUFG in New York, told Reuters.

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White House Economic Council director Larry Kudlow proclaims that the U.S. is experiencing a "middle-class boom."
kudlow, middle, class, boom, economy
Thursday, 19 December 2019 10:26 PM
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