Larry Kudlow Concedes Strength of Biden Economy, Citing Government Spending and Inflation

Introduction

In a startling turn of events, former White House economic adviser Larry Kudlow surprisingly acknowledged that the U.S. economy under President Joe Biden is performing better than he had previously asserted. Kudlow, now a prominent Fox Business host, made this admission during an interview with Fox News’ Sandra Smith, following a Bureau of Economic Analysis report revealing a robust GDP growth of 3.3% in the final quarter of 2023.

Kudlow’s Acknowledgment

Kudlow’s admission of the Biden economy’s strength caught Smith off guard, prompting her to exclaim, “Whoa! That’s a headline.” Kudlow acknowledged that Biden “deserves credit” for the positive economic news, stating that if he were in the president’s shoes, he’d be “out there touting it” as well.

Caveats and Concerns

Despite his acknowledgment, Kudlow raised concerns about the sustainability of the economic growth, attributing it primarily to government spending. He cautioned against taking the numbers at face value, emphasizing the need to scrutinize the role of government spending in fueling this growth.

Additionally, Kudlow pointed to Biden’s failure to enjoy a significant polling boost despite the positive economic news. He attributed this to the lingering effects of high inflation that persisted through much of 2023, suggesting that the benefits of the economic recovery may not be fully felt by the general public.

Implications and Significance

Kudlow’s admission is significant because it represents a shift in the narrative surrounding the Biden economy. Previously, Kudlow had been among the most vocal critics of the president’s economic policies. His acknowledgment that the economy is performing well under Biden could potentially influence public perception and the political discourse surrounding the president’s economic agenda.

Conclusion

Larry Kudlow’s acknowledgment of the strength of the Biden economy is a notable development, indicating a possible shift in the narrative surrounding the president’s economic policies. While Kudlow raised concerns about the sustainability of the growth and the lingering effects of inflation, his admission that Biden “deserves credit” could have significant implications for public perception and the political discourse surrounding the president’s economic agenda.