Larry Kudlow: Democrats are trying to spend and borrow to buy the election

You would assume that with consumer prices up almost 20% since Joe Biden took workplace and with a Consumer Price Index snapback in latest months to almost 5% yearly — manner above the Fed’s 2% goal — that Joe Biden, who’s in a heap of hassle on the inflation concern to start with, would need to do one thing to curb inflation and perhaps in some way salvage the election. 

If you thought that, you’d be completely improper. Biden has no such intention. By the manner, Biden is the man who simply instructed an interviewer that he inherited a 9% inflation fee. 

Actually, Donald Trump handed over a 1.4% inflation fee, which Joe Biden subsequently ran up to 9% with an enormous federal spending and borrowing spree. 

Speaking of large federal and borrowing, a bunch of latest articles have simply come out exhibiting that Biden would simply love to spend the up to $1.6 trillion of cash that Congress has permitted, however the federal paperwork has not but spent out. 

FED CHAIRMAN POWELL FINDS LOWERING RATES TOO EASY TO SWALLOW 

The unspent cash covers clear power, electrical automobiles, numerous local weather change giveaways, subsidies and tax credit, together with semiconductor manufacturing and who is aware of what. 

The misnamed Inflation Reduction Act is a giant offender on this story. It continues to be spending out, however even going again to March 2021, which some name the “original sin” of inflation, there’s nonetheless COVID cash spending out! 

Really, you possibly can’t make these items up, and truly, it might be a monumental job requiring a few of the best minds alive in the present day to devise methods to spend $1.6 trillion of federal cash in the subsequent six months. 

Judging from Joe Biden’s total efficiency, he isn’t in possession of the best minds in the present day, however they are all trying their hardest to spend and borrow and in some way buy the election. There’s even one other $350 billion remaining underneath the guise of COVID-19 reduction. This is for state and native governments. It’s referred to as the Coronavirus State and Local Fiscal Recovery Fund. 

It’s dangerous sufficient that this factor continues to be kicking round as a holdover from the misbegotten American Rescue Place of March 2021, however this cash is meant to be spent earlier than the finish of this yr. Now, the Biden Treasury has determined that if the states and localities plan to spend it after the statutory deadline, they will go on forward and spend it. 

CLICK HERE TO GET THE FOX NEWS APP             

Is this an excellent nation or what? Now, Republicans could have alternatives to cease this avalanche of inflationary spending, however they are going to have to get to work in the subsequent 90 days. Meanwhile, the potential inflationary penalties of those dreadful insurance policies may effectively lead to a lot greater rates of interest and, in fact, a lot better deficits and borrowing and inflation, however Joe Biden doesn’t care one whit about inflation. 

He thinks he is going to win the election this fashion. Well, Joe — keep in mind this: FDR had 4 phrases. You might solely have one. 

This article is customized from Larry Kudlow’s opening commentary on the May 9, 2024, version of “Kudlow.”