Posted on 06/30/2018 8:25:26 PM PDT by SeekAndFind
On Fox Business Channel Friday morning director of the United States National Economic Council Larry Kudlow claimed that the deficit “is coming down, and it’s coming down rapidly.”
He said:
"As the economy gears up, more people working, better jobs and careers, those revenues come rolling in. And the deficit—which is one of the other criticisms—is coming down, and it’s coming down rapidly. Growth solves a lot of problems. You’ve heard me say this for a very long time."
While job growth continues to show strong numbers and revenues have increased from last year, is it inaccurate to suggest that "the deficit" is “coming down rapidly.”
Despite April’s record-breaking surplus of $214.3 billion, the deficit is still rising because the government is still outspending its revenue. “The budget deficit widened in the first seven months of fiscal 2018,” the Wall Street Journal reported in May. “The deficit . . . stood at $385.4 billion in October through April, which was 12% larger than the deficit during the same period a year earlier.” May fared no better, bringing the total deficit from October through May to 23 percent more than the same time frame a year prior.
“The deficit is up and it’s no great mystery why,” the director of Fiscal Policy at American Action Forum Gordon Gray told TWS Fact Check. “When you increase spending and cut taxes it’s what happens.” Gray also advised against analyzing the deficit from each month. “The temptation to compare month-to-month is tempting but not terribly illuminating,” Gray says, pointing out that government spending can change significantly from May of year X to May of year Y, but this difference is not necessarily reflected in the overall yearly deficit.
"There is really no defending Larry's statement, I'm afraid,"
(Excerpt) Read more at weeklystandard.com ...
In my view, Kudlow is a part of the sold out to China establishment, in charge of offshoring.
I know, a lot of people here have said he’s not. But our trade deficit with China is at an all-time high, and it is INCREASING AGAIN this year.
This is completely the opposite, of what he claims.
The complete opposite.
Agreed.
Always remember the Weekly Standard is Never Trump driven by Billy’s animus
“Agreed.
Always remember the Weekly Standard is Never Trump driven by Billy’s animus”
You are correct. The Weekly Standard has an anti-Trump bias.
“In my view, Kudlow is a part of the sold out to China establishment, in charge of offshoring.
I know, a lot of people here have said he’s not. But our trade deficit with China is at an all-time high, and it is INCREASING AGAIN this year.
This is completely the opposite, of what he claims.
The complete opposite.”
LK has only been in office for three months. Besides, you don’t have numbers for 2018 so I won’t ask you for them ...
“The deficit is up and it’s no great mystery why,” the director of Fiscal Policy at American Action Forum Gordon Gray told TWS Fact Check. “When you increase spending and cut taxes it’s what happens.”
Wrong. Revenues are up with the tax cuts in place. It’s all spending.
Numbers. 2018.
First four months, available already.
https://www.census.gov/foreign-trade/balance/c5700.html
Shows the bilateral trade deficit with China going UP this year. From the already all-time record high last year.
And the all-time record highs set almost every other year, for the last GENERATION AND A HALF.
You’re welcome.
“Shows the bilateral trade deficit with China going UP this year. From the already all-time record high last year.”
April year-over-year is back to 2017 level. Already LK is having an effect in his first month!
Kudlow has been an open borders apologist, both trade and immigration, since the 1980s. I was surprised to see Trump hiring him. But they probably know each other well from NYC.
The deficit has been declining since the Republicans took back control of Congress. This shouldn’t be a controversial issue.
Kudlow is great! Been listening to him for years. As usual, they cherry pick the dates. I am sure Larry was talking about after the tax cuts and the renewed growth. Lower unemployment means less welfare and more tax revenue.
A couple of ticks up in interest is going to suck all of the cash out of the economy.
This is going to get ugly fast. People will have no idea how their low rate interest card is all of a sudden at 19%.
>> A couple of ticks up in interest is going to suck all of the cash out of the economy <<
Nope. As interest rates go up, more funds will flow into the USA from foreign investors. That increased investment will add to the economic boom that’s already underway.
In the meantime, higher interest rates on credit cards will force many consumers to put less money into purchases they can’t afford, thereby increasing the overall rate of domestic saving — an effect that also will support increased investment in our booming economy.
In other words, it’s a win-win situation except maybe for irresponsible folks who run up credit card balances they can’t afford — plus those urban yuppies who buy overpriced houses by taking advantage of ridiculously low rates of mortgage interest
You still think people are going to give the Fed more of their cash. I disagree. I think China and Russia are not going to attack us. All they need to do is stop using dollars. And then refuse dollars from anyone else.
I do not think that is all that outrageous a thought.
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