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larry kudlow
Trump's Millionaire Economic Adviser Celebrates 'Gales of Creative Destruction' as Millions Lose Their Jobs and Go Hungry
"Wonder how the 14% of households with kids who reported that they didn't get enough food to eat in the last seven days feel about the 'gales of creative destruction.'"
Oct 16, 2020
With millions of Americans out of work, struggling to afford food for themselves and their children, and facing the possibility of losing their homes, President Donald Trump's top economic adviser on Friday celebrated what he described as the "gales of creative destruction" supposedly unleashed by the U.S. economic system in the midst of the pandemic-induced recession.
"The talk is that a lot of folks who became unemployed, alright, most regrettably--but, they're sticking with it and they're going out and starting new businesses," Larry Kudlow, director of the National Economic Council, said in an appearance on Fox Business. "They're going to be small businesses."
"But that's the great part of American capitalism, gales of creative destruction," Kudlow continued, deploying a phrase popularized in the 1940s by economist Joseph Schumpeter. "I just love that new business start-up story."
Watch:
\u201cWH Economic Adviser Larry Kudlow: \u201cA lot of folks who became unemployed ... they\u2019re going out and starting new businesses \u2026 That\u2019s the great part of American capitalism.\u201d— The Recount (@The Recount) 1602865014
Critics immediately noted that the millions of people across the U.S. who are teetering on the brink of complete financial ruin are likely not impressed by the so-called "creative destruction" praised by Kudlow, who in June complained that the $600-per-week federal unemployment insurance boost many jobless workers were receiving at the time was excessive.
"Wonder how the 14% of households with kids who reported that they didn't get enough food to eat in the last seven days or the 32% of adults who are having trouble paying for usual household expenses feel about the 'gales of creative destruction,'" tweeted Washington Post reporter Jacqueline Alemany, pointing to data from the Center on Budget and Policy Priorities.
Kudlow's comments came a day after the Labor Department reported that an additional 1.3 million Americans filed for unemployment benefits, yet another indication that the strong economic recovery Kudlow has repeatedly predicted in recent weeks is not materializing.
"As American capitalism becomes even crueler, the rhetoric of its apologists will only grow more explicit," Jacobin's Luke Savage tweeted in response to Kudlow's remarks.
\u201cThousands of small businesses have closed, many permanently so. Not because there had been anything fundamentally broken with their business models -- because the government has so badly screwed up the covid response that it remains broadly unsafe to operate\u201d— Catherine Rampell (@Catherine Rampell) 1602863361
On top of being cold comfort for Americans struggling to get by as the prospect of another federal relief package before the November election remains uncertain, Kudlow's rosy insistence that the economic turmoil caused by the Covid-19 pandemic spurred a major new wave of entrepreneurship was also likely factually dubious.
"Self-employment is absolutely helping us to adapt to the pandemic," Adam Ozimek, chief economist at freelancing platform Upwork, told the Post's Jeff Stein. "But it's really nowhere near enough to make up for the massive shortfall in overall employment that we still have. Not even close."
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As Trump Pushes New Tax Cuts for Wealthy, Analysis Shows US Billionaires $800 Billion Richer Since Pandemic Hit
"For billionaires, this is a heads we win, tails you lose economy, boosted by Trump policies to funnel wealth to the top."
Aug 26, 2020
As President Donald Trump and top members of his administration continue their push to deliver another round of tax cuts to rich investors, an analysis published Tuesday by the Institute for Policy Studies and Americans for Tax Fairness showed that U.S. billionaires have seen their collective wealth soar by nearly $800 billion since Covid-19 began spreading rapidly across the country in March.
The new research found that between March 18 and August 20--a five-month period in which the economy tanked and tens of millions of people across the U.S. lost their jobs--the combined wealth of America's more than 600 billionaires jumped by $792 billion, bringing their collective net worth to a staggering $3.7 trillion.
"By demanding even more tax cuts for the rich at this crucial moment, President Trump shows he is as out of touch with our nation's needs as America's billionaires are disconnected from our nation's misery."
--Frank Clemente, Americans for Tax Fairness
"For billionaires, this is a heads we win, tails you lose economy, boosted by Trump policies to funnel wealth to the top," Chuck Collins, director of the IPS Program on Inequality, said in a statement.
Collins said the fact that just 12 U.S. billionaires now own more than a trillion dollars in combined wealth is "an unprecedented and disturbing indicator of the concentrated wealth during a pandemic." According to IPS, Amazon CEO Jeff Bezos--the richest man in the world--has seen his wealth grow by $81.9 billion since mid-March, a bigger jump than any other U.S. billionaire.
The updated wealth figures came just hours before Larry Kudlow, Trump's top economic adviser, boasted about the president's plan to slash the capital gains tax during a speech on the second night of the Republican National Convention Tuesday. The benefits of any cut to the capital gains tax would disproportionately flow to the wealthiest Americans.
"Looking ahead, more tax cuts and regulatory rollback will be in store," said Kudlow. "Payroll tax cuts for higher wages, income tax cuts for the middle class. Capital gains tax cuts for investment, productivity, and jobs. Much more regulatory relief for small businesses."
Earlier this month, Trump himself vowed to slash the capital gains tax if reelected in November.
\u201cLarry Kudlow says Trump's re-election would usher in new tax cuts for middle class Americans and roll back regulations. He called out payroll and income tax cuts, and capital gains cuts.\n\nThe latest on the #RNC2020 \u27a1\ufe0f https://t.co/AZIMmeMXYV\u201d— Bloomberg TV (@Bloomberg TV) 1598409089
Frank Clemente, executive director of Americans for Tax Fairness, said in a statement that "by demanding even more tax cuts for the rich at this crucial moment, President Trump shows he is as out of touch with our nation's needs as America's billionaires are disconnected from our nation's misery."
"The pandemic profiteering of America's billionaires shows taxes on the wealthy must go up substantially to narrow the wealth gap and raise revenue vital for our big climb back from disaster," Clemente added.
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White House Pushes 'Pure Giveaway' to Rich Investors While Urging Cut to Pandemic Unemployment Aid
Recipients of the enhanced unemployment benefit could see the aid slashed by more than 50% under a plan being discussed by the Trump administration and GOP
Jul 14, 2020
The Trump White House is publicly advocating a massive tax cut for wealthy U.S. investors while simultaneously urging Congress to pare back the expanded unemployment benefits currently serving as a financial lifeline for more than 30 million--and counting--jobless Americans.
"Regarding the 'capital gains holiday,' remember this key stat: 82% of all capital gains tax is paid by the richest 1%. A capital gains tax holiday is a pure giveaway to the rich."
--Michael Linden, Groundwork Collaborative
In an interview on Fox Business Monday, White House economic adviser Larry Kudlow said President Donald Trump wants included in the next Covid-19 stimulus package "a payroll tax holiday"--which critics warn is a stealth attack on Social Security--and a reduction in the capital gains tax.
A levy on profits from the sale of assets, the capital gains tax disproportionately affects the wealthy and most of the benefits of any cut would largely be enjoyed by rich investors.
Slashing the capital gains tax is a longtime goal of congressional Republicans and Trump, who last year considered but ultimately abandoned a legally dubious plan to lower the tax with an executive order.
While stressing that formal talks with Congress on the next stimulus package have not yet begun, Kudlow said the administration is also pushing for "reforms" to the $600-per-week boost in unemployment insurance (UI) payments, which he characterized as excessively generous "disincentives" to work.
The benefits are set to expire at the end of the month without action from Congress.
\u201cWhite House economic advisor Larry Kudlow says a "capital gains holiday" and a "payroll tax holiday" are possible items the Trump administration wants for a new round of virus stimulus. Many of these measures would benefit the extremely wealthy during high unemployment.\u201d— The American Independent (@The American Independent) 1594658607
"So the White House position is that we have to cut the incomes of 30 million people who lost their jobs or who lost hours, while also giving a giant tax cut to the biggest corporations and the richest people in the world," tweeted Michael Linden, executive director of the Groundwork Collaborative, a progressive think tank.
"Regarding the 'capital gains holiday,' remember this key stat: 82% of all capital gains tax is paid by the richest 1%," Linden added. "A capital gains tax holiday is a pure giveaway to the rich."
The Washington Post reported Tuesday that after previously urging complete expiration of the enhanced unemployment benefits, "Trump administration officials have begun opening the door to accepting a narrower version of what Congress previously approved."
"One potential compromise discussed by Republican lawmakers would involve cutting the unemployment benefit from $600 per week to between $200 and $400 per week and making up at least part of the difference by sending another round of $1,200 stimulus payments," the Post reported.
Trump spokesman Judd Deere told the Post that the White House is open to approving a reduction in the current weekly UI payments but remains opposed to extending the full $600-per-week.
"UI reform is a priority for this White House in any phase four package and we are in ongoing discussions with the Hill," said Deere.
\u201c-- Ending UI increase would cut *by 50-75%* the incomes of +30 million\n\n-- Millions on UI will ALSO be newly vulnerable to eviction\n\n-- We risk a simultaneous wave of small business failures\n\n-- Senate comes back July 20 - 5 days before UI benefits expire\n\nhttps://t.co/weoBSV4UGV\u201d— Jeff Stein (@Jeff Stein) 1594728112
Julia Wolfe, state economic analyst with the Economic Policy Institute, warned in a blog post last week that if Congress fails to extend the enhanced unemployment benefits through next year, "it could cost us more than five million jobs and $500 million in personal income."
"We should despair for the millions who have lost their jobs and for their families," Wolfe wrote, "and our top priority as a country should be protecting the health and safety of workers and our broader communities by paying workers to stay home when possible, whether that means working from home some or all of the time, using paid leave, or claiming UI benefits."
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