It may sound far-fetched, but I think now would be a good time to talk about getting back to a balanced budget in Washington, DC. That’s right, a balanced budget.
Amid uncontrolled federal spending, deficit financing, borrowing, money printing — and let’s not forget, we have a president who thinks more spending will curb inflation — I think I’ll encourage everyone to have a new idea: Save America, balance the income.
Now, this is not entirely new. I’ve been talking about this with our next guest, Newt Gingrich, for several months this year and he has a full slice on his American majority project on the balanced budget.
We’re also talking about that at America First Policy Institute with Ross Vogt and myself and Brooke Rollins. We’re actually going to draw one.
In the last Balanced Budget, in the late 1990s, during Newt Gingrich’s speech, the political orientation of those Balanced Budgets came from the decade with America.
Now, here’s a main idea in economic terms. A balanced budget, if implemented correctly, will produce rapid economic growth and low inflation. This is correct. Strong growth and low inflation.
Today, with massive spending deficits, we are experiencing massive growth deficits, weak growth and high inflation. Its time for a change. Newt believes – and I agree with him – that Republicans, Democrats and independents would welcome the Balanced Budget initiative.
After the collapse of Biden’s experiment with progressive radicalism, which Newt correctly calls “big government socialism,” it is time to return to the logical ideas that would revolve around a return to free-market capitalism.
Proposing a balanced budget today would not only emphasize tight limits on federal spending, but also make Trump’s tax cuts permanent, and return to liberalizing and supporting a healthy and reliable dollar.
Also, the principle of work, where the taxpayer benefits from various forms of welfare, food stamps, health care and all that is too much to account for benefits and exorbitant programs scattered in the $4 trillion federal budget, will depend on work and education requirements.
This was Senator Joe Manchin’s contribution to our so far successful quest to save America and eliminate the bill, but low marginal tax rates can generate supply-side growth and take us back to the post-World War II period when US real growth averaged roughly 3.5% to about 50 years. We did it once and we can do it again. Let’s go back to free market incentives to spur more work, productivity and household income, lower rates, minimal regulation, and minimal federal spending.
Joe Biden’s waking economics and waking culture are being rejected by the American public. His idea of income redistribution, his dislike of successful men and women in business, his inflation, his assault on parents and families, his painful and costly Green Deal initiatives, his disregard for border rule—all add to the progressive agenda he has stuck to in the face of growing unpopularity.
He has not only damaged culture and assaulted the economy, but has also frankly ruptured the Democratic Party. This is where balanced budget policy can become an organizing principle for all kinds of important reforms throughout the economy and culture.
Remember, Biden’s budgets funded massive inflation, but they also funded big left-wing social policies, including critical race theory, unbridled sex and sexism in early education, new social justice agencies throughout the entire government, drastic climate regulations that are killing us at the pump but also preventing Literally the energy from feeding the economy.
The massive new regulatory burdens are an attack on business in general, and of course fossil companies specifically, and it’s all backfired, because these radical progressive policies have always been wherever they’ve been tried throughout history.
In a rather dull and bleak period, during this small sliver of Biden’s history, I chose to remain steadfastly optimistic about America’s future. As Uncle Joe’s polls continue into the 1930s, I see the era of neo-progressiveism coming to an end before long.
Yes, the cavalry is coming. This is the gospel of good news and somewhere in that good news, I think a balanced budget aimed at high growth, low inflation, and new family prosperity is an important organizing principle.
Save America. Balance the budget.
This article is excerpted from Larry Kudlow’s opening comment on the May 16, 2022, Kudlow edition.