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103-592: Moore advocates tax cuts and other supply-side policies . Moore's columns have appeared in outlets such as the Wall Street Journal , The Washington Times , The Weekly Standard and National Review . Along with Larry Kudlow , Moore advised the Trump administration during the writing and passage of the Tax Cuts and Jobs Act . On March 15, 2019, President Donald Trump announced that Moore would be nominated to serve as

206-564: A Master of Arts (M.A.) in economics from George Mason University . From 1983 to 1987, Moore served as the Grover M. Hermann Fellow in Budgetary Affairs at The Heritage Foundation . In 1987, Moore was the research director of President Ronald Reagan 's Privatization Commission. Moore spent ten years as a fellow of the Cato Institute , a libertarian think tank . As senior economist of

309-673: A governor of the Federal Reserve . On May 2, 2019, Moore withdrew his name from consideration amid bipartisan resistance in the Senate. Moore grew up in New Trier Township, Illinois . He attended Saints Faith Hope & Charity School in Winnetka and graduated from New Trier High School in 1978. He received a Bachelor of Arts (B.A.) from the University of Illinois at Urbana–Champaign and

412-506: A political action committee in the 2000, 2002, and 2004 election cycles "despite spending millions of dollars on federal campaign activity during the 2000, 2002, and 2004 election cycle." In 2007, the FEC and the Club for Growth agreed to settle the lawsuit, paying $ 350,000. Moore was involved with the consulting firms Arduin, Laffer & Moore Econometrics, and 32 Advisors. In May 2015, Moore co-founded

515-465: A "Bush boom", and chastised other commentators for failing to realize it. Kudlow firmly denied that the United States would enter a recession in 2007 , or that it was in the midst of a recession in early to mid-2008. In December 2007, he wrote: "The recession debate is over. It's not gonna happen. Time to move on. At a bare minimum, we are looking at Goldilocks 2.0. (And that's a minimum). The Bush boom

618-565: A "Distinguished Visiting Fellow." In 2017, Moore worked with Larry Kudlow on overhauling the US tax policy for the Trump administration, which was eventually passed into law by Congress. In 2017, he left Fox News Channel to join CNN as a senior economic analyst, leaving that position in early 2019. In July 2008, as the Fed had for months been rapidly cutting interest rates as the economy weakened into what became

721-543: A 2014 op-ed in the Washington Times, Moore cited the role of a "culture of virtue" in America's economic success, writing, "What is irrefutable is that marriage with a devoted husband and wife in the home is a far better social program than food stamps, Medicaid, public housing or even all of them combined." Moore has often expressed support for some variation of a gold standard. In 2015, he declared, "We have got to get rid of

824-518: A Nobel laureate or University of Chicago professor." The nomination stirred immediate criticism by economists, and was widely viewed as the most political appointment to the Federal Reserve Board since the 1980s. Benn Steil , director of international economics for the Council on Foreign Relations , stated he found the decision appalling. Monetary economist George Selgin stated he believed Moore

927-474: A Senate or a House seat without the support of the Club for Growth." From 2003 to 2004, the Club for Growth was the single largest fundraiser for Republican House and Senate candidates, being outdone only by the Republican party itself. In December 2004, the Club for Growth's board voted to remove Moore as president, with his opponents within the organization upset by his criticism of President George Bush and by

1030-460: A candid interview with CNN 's Jake Tapper , saying that Trudeau had "stabbed us in the back". Kudlow has been married three times: In 1974, he married Nancy Ellen Gerstein, an editor in The New Yorker magazine's fiction department, with the marriage lasting about a year. In 1981, he married Susan (Cullman) Sicher, whose grandfather was businessman Joseph Cullman and whose great-grandfather

1133-458: A definition of supply-side economics as the belief that adjustments in marginal tax rates have significant effects on the total supply. Gwartney and Stroup said "that the supply-side argument provided the foundation for the Reagan tax policy, which led to significant reductions in marginal tax rates in the United States during the 1980s". Barry P. Bosworth has provided another definition by presenting

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1236-533: A deposition before the court threatened to have him arrested and ordered him to sell his home to make the payments; the court revoked the order at Moore's request after he made a $ 217,000 payment. In January 2018, the IRS obtained a tax lien against Moore for $ 75,328 in unpaid federal taxes, interest, and penalties, alleging Moore had filed a "fraudulent" tax return in 2014. Moore contended that his accountant made an error in improperly deducting child support payments and that

1339-400: A fall in investment and savings. At the same time, lower tax rates would cause the investment and savings levels to rise, while the consumption levels would fall. The second price influences decisions of individuals on the distribution of their time between work and leisure. The cost of individual's decision to allocate a unit of time either to work or leisure stands for current income, which

1442-590: A full-blown international banking crisis . As George W. Bush took office in January 2001, America was in the fourth consecutive fiscal year of federal budget surpluses and the CBO projected increasing surpluses in each year through 2010, totaling over $ 5 trillion. Days before Bush signed his tax cut plan in June, Kudlow predicted it would cause future budget surpluses to rise. Instead, there were budget deficits in every fiscal year of

1545-509: A generally conservative viewpoint, but he also engages in broader economic discussions. He declined an offer to serve in Donald Trump's second administration, opting instead to continue his work at Fox Business. A self-described " Reagan supply-sider ", Kudlow is known for his support for tax cuts and deregulation. He argues that reducing tax rates will encourage economic growth and ultimately increase tax revenue and, while acknowledging

1648-464: A global conspiracy to obtain money via research grants. In an April 2019 interview, Moore said that the Federal Reserve should not consider the economic impacts of climate change in decision-making. Moore wrote a 2014 Kansas City Star opinion piece entitled, "What's the matter with Paul Krugman ?," responding to Krugman's earlier opinion piece "Charlatans, Cranks and Kansas," which had discussed

1751-400: A gradual and painless way to fight inflation by "producing our way out of it". Switching from earlier monetary policy, Federal Reserve chair Paul Volcker implemented tighter monetary policies including lower money supply growth to break the inflationary psychology and squeeze inflationary expectations out of the economic system . Therefore, supply-side supporters argue that Reaganomics

1854-483: A great advocate for supply-side economics in politics and repeatedly praised his leadership. Critics of Reaganomics claim it failed to produce much of the exaggerated gains some supply-siders had promised. Paul Krugman later summarized the situation: "When Ronald Reagan was elected, the supply-siders got a chance to try out their ideas. Unfortunately, they failed." Although he credited supply-side economics for being more successful than monetarism which he claimed "left

1957-445: A household phrase and promised an across-the-board reduction in income tax rates and an even larger reduction in capital gains tax rates. During Reagan's 1980 presidential campaign , the key economic concern was double digit inflation , which Reagan described as "[t]oo many dollars chasing too few goods", but rather than the usual dose of tight money, recession and layoffs, with their consequent loss of production and wealth, he promised

2060-538: A junior financial analyst at the New York Federal Reserve . He soon left government to work on Wall Street at Paine Webber and Bear Stearns as a financial analyst . In 1981, after previously volunteering and working for left-wing politicians and causes, Kudlow joined the administration of Ronald Reagan as associate director for economics and planning in the Office of Management and Budget . After leaving

2163-447: A major in history (aside from his foreign policy coursework at Princeton), Kudlow claims that the particular history curriculum that he completed at Rochester dealt heavily with economic themes, especially pertinent to trade policy. In 1971, Kudlow enrolled in the master's program at Princeton University 's Woodrow Wilson School of Public and International Affairs , but he left before completing his degree. Kudlow began his career as

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2266-743: A major instrument to affect aggregate production and GNP, while Monetarism focuses on management of monetary aggregates and credit. Unlike supply-side economics, demand-side economics is based on the assumption that increases in GNP result from increased spending. Traditional policy approaches were challenged by the theory of supply-side economics in the Reagan Administration of the 1980s. It claims that fiscal policy may lead to changes in supply as well as in demand. So, when marginal tax rates are high, consumers pursue additional leisure and current consumption instead of pursuing current income and extra income in

2369-582: A one-sentence letter expressing support for Moore's candidacy for the Federal Reserve Board. Signatories included Steve Forbes , Ed Feulner , and Bill Ford, the former President of the Federal Reserve Bank of Atlanta . Endorsements for Moore's nomination also came from his long-time collaborator Larry Kudlow , who recommended the appointment, and from Adam Brandon, president of the conservative advocacy group FreedomWorks . Moore's former employer, The Wall Street Journal editorial board, endorsed Moore for

2472-548: A recent major tax cut in Kansas. Moore said that job creation had been superior in low-taxation states during the five years ending June 2009 following the recession. After errors were found in Moore's data, he sought to correct the errors with different data that were also incorrect. Miriam Pepper, editorial page editor for the Star stated "I won't be running anything else from Stephen Moore." In

2575-486: A run. In early December 2015, Jack Fowler of National Review created a 527 organization that encouraged Kudlow to run. In March 2018, Donald Trump appointed Kudlow to be Director of the National Economic Council , succeeding Gary Cohn . He assumed office on April 2, 2018. At the time, Kudlow said that the nonpartisan Congressional Budget Office was untrustworthy. He dismissed CBO's estimate that

2678-636: A staff economist at the Federal Reserve Bank of New York , taking a position "as a junior economist in a job where a master's degree wasn't required". He worked in the division of the Fed that handled open market operations . In 1970, while he was still a Democrat, Kudlow joined Americans for Democratic Action chair Joseph Duffey 's "New Politics" senatorial campaign in Connecticut which also attracted an "A-list crowd of young Democrats", including Yale University law student Bill Clinton , John Podesta , and Michael Medved , another future conservative. Duffey

2781-630: A substitute, until he left to become an economics advisor to President Trump. In March 2006, Kudlow started to host a talk radio show on politics and economics on WABC as The Larry Kudlow Show aired on Saturday mornings from 10   am to 1   pm ET and via nationwide syndication in the US starting June 5, 2010. Kudlow's name was floated by Republicans as a potential Senate candidate in either Connecticut or New York in 2016 . In October 2015, U.S. Senator Richard Blumenthal , in an email to supporters, attacked Kudlow as "a champion of big corporations and big money" despite Kudlow's not announcing

2884-521: A zero capital gains rate. Defunct Newspapers Journals TV channels Websites Other Economics Gun rights Identity politics Nativist Religion Watchdog groups Youth/student groups Miscellaneous Other In the United States, commentators frequently equate supply-side economics with Reaganomics . The administration of Republican president Ronald Reagan promoted its fiscal policies as being based on supply-side economics. Reagan made supply-side economics

2987-579: Is a macroeconomic theory postulating that economic growth can be most effectively fostered by lowering taxes , decreasing regulation , and allowing free trade . According to supply-side economics theory, consumers will benefit from greater supply of goods and services at lower prices, and employment will increase. Supply-side fiscal policies are designed to increase aggregate supply , as opposed to aggregate demand , thereby expanding output and employment while lowering prices. Such policies are of several general varieties: A basis of supply-side economics

3090-642: Is a financial news commentator for Fox Business and served as the Director of the National Economic Council during the Trump Administration from 2018 to 2021. He assumed that role after his previous employment as a CNBC television financial news host. By 2024 Kudlow was the vice chair of the board of the America First Policy Institute , a nonprofit think tank developing policies for the second Trump presidency. Kudlow began his career as

3193-819: Is a member of the Catholic Advisory Board of the Ave Maria Mutual Funds . He served as a member of the Fordham University Board of Trustees and is on the advisory committee of the Kemp Institute at the Pepperdine University School of Public Policy . On June 11, 2018, Kudlow suffered what the White House referred to as a "very mild" heart attack. White House Press Secretary Sarah Sanders stated that Kudlow had been admitted to

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3296-515: Is alive and well. It's finishing up its sixth splendid year with many more years to come". In a May 2008 column entitled "Bush's 'R' is for 'Right ' ", Kudlow wrote: "President George W. Bush may turn out to be the top economic forecaster in the country". By July 2008, Kudlow continued to deny that the economy was looking poor, stating that "We are in a mental recession, not an actual recession." Lehman Brothers collapsed in September 2008, creating

3399-626: Is also a founding member of the Board of Advisors for the Independent Institute and consulting chief economist for American Skandia Life Assurance, Inc., in Connecticut , a subsidiary of insurance giant Prudential Financial . Kudlow became Economics Editor at National Review Online (NRO) in May 2001. In December 2007, NRO published a Kudlow article entitled Bush Boom Continues , in which he asserted

3502-673: Is merely a secondary consequence. Early on, this idea had been summarized in Say's Law of Markets , which states: "A product is no sooner created, than it, from that instant, affords a market for other products to the full extent of its own value." or, in other words, production (supply) must first occur to enable economic activity or trade. Supply-side economics rose in popularity among Republican Party politicians from 1977 onwards. Prior to 1977, Republicans were more split on tax reduction, with some worrying that tax cuts would fuel inflation and exacerbate deficits. In 1978, Jude Wanniski published The Way

3605-711: Is systemic racism in the U.S." In February 2021, Larry Kudlow joined the Fox Business Network (FBN) as a host, following his tenure as Director of the National Economic Council under President Donald Trump. Kudlow, known for his economic commentary, was given the platform to host a weekday show titled "Kudlow," which premiered in early 2021. His program is broadcast at 4 p.m. and 7 p.m. Eastern Time, providing viewers with economic insights, market analysis, and discussions on fiscal policy with various experts and politicians. His show focuses on economic issues from

3708-581: Is the Laffer curve , a theoretical relationship between rates of taxation and government revenue . The Laffer curve suggests that when the tax level is too high, lowering tax rates will boost government revenue through higher economic growth , though the level at which rates are deemed "too high" is disputed. A 2012 poll of leading economists found none agreed that reducing the US federal income tax rate would result in higher annual tax revenue within five years. Critics also argue that several large tax cuts in

3811-410: The Wall Street Journal where he decried his critics, writing, "What did me in was not my economic ideas but gutter campaign tactics and personal assaults." Some Senate Republicans expressed relief that they would not have to cast a vote for or against him, because of his history of remarks deprecating women as well as a concern that he would not be independent of the White House. After his nomination

3914-414: The 2017 Tax Cuts and Jobs Act would increase the deficit by $ 1.3 trillion, saying, "Never believe the CBO. Very important: Never believe them. They're always wrong, especially with regard to tax cuts, which they never score properly." Numerous studies of the tax plan, whether by non-partisan organizations, Wall Street analysts, or right-leaning research organizations, showed that the tax plan would increase

4017-620: The Congressional Research Service found that the Agreement would not have a measurable effect on jobs, wages, or overall economic growth. On February 25, 2020, as a coronavirus pandemic was emerging as a global pandemic, Kudlow stated, "We have contained this, I won't say airtight but pretty close to airtight." In June 2020, amid the George Floyd protests against racism and police brutality, Kudlow said, "I don't believe there

4120-544: The Great Recession , Moore stated, "I happen to believe we should be raising rates, not cutting them." Moore supports abolishing the income tax, and replacing it with a national sales tax. Moore rejects the scientific consensus on climate change . In 2009, he described climate change as "the biggest scam of the last two decades." In columns and op-eds , Moore called those with concerns about climate change "Stalinistic" and has accused climate scientists of being part of

4223-499: The U.S. Congress Joint Economic Committee under Chairman Dick Armey of Texas , Moore was said to be "instrumental in creating the FairTax proposal". In 1999, Moore co-founded and became president of the Club for Growth , a group advocating tax cuts and a reduction in government spending, along with supporting political candidates who favored free-market economic policies. While president of

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4326-559: The Wall Street Journal which asserted that the Federal Reserve 's policies were slowing the economy and causing "wild swings in the stock market," at a time the Dow was up 13% for the year. He also asserted that the Fed should focus more on commodity price changes rather than overall price changes. Larry Kudlow , the Director of the U.S. National Economic Council , showed the article to President Trump, who decided he wanted to place Moore on

4429-451: The " Laffer Curve ", an economic measure of the relationship between tax levels and government revenue. Kudlow was fired from Bear Stearns in the mid-1990s due to his cocaine addiction. He was a member of the board of directors of Empower America , a supply-side economics organization founded in 1993 and merged in 2004 with the Citizens for a Sound Economy to form FreedomWorks . Kudlow

4532-602: The Bush administration. In their 2015 book Superforecasting , University of Pennsylvania political scientist Philip E. Tetlock and Dan Gardner refer to Kudlow as a "consistently wrong" pundit, and use Kudlow's long record of failed predictions to clarify common mistakes that poor forecasters make. Kudlow supported free trade prior to his White House appointment. As recently as three weeks before taking office, he co-authored with Stephen Moore and Art Laffer an opinion piece entitled Tariffs Are Taxes. , in which he argued against

4635-613: The Club for Growth, Moore founded the 501(c)(4) Free Enterprise Fund with other former Club for Growth members including Arthur Laffer and Mallory Factor. In 2005, Moore left the Free Enterprise Fund to serve on the editorial board of the Wall Street Journal . On September 19, 2005, the Federal Election Commission (FEC) filed suit against the Club For Growth, alleging that the group had failed to register as

4738-544: The Fed on March 28, 2019. In an appearance on Fox Business Network , political commentator Charlie Gasparino described Steve Moore as "the counterweight to [Chair of the Federal Reserve Jerome] Powell’s hawkishness." Journalist Fred Barnes defended Moore as "a disrupter, like Trump." In April 2019, CNN and The New York Times reported on several articles Moore had written in the National Review in

4841-558: The Federal Reserve Board. Moore called for higher interest rates when the economy was recovering from the Great Recession under Barack Obama, but has called for lower rates when the economy has fully recovered and continues to grow under Donald Trump. Moore stated in August 2018, "I have to confess: I was wrong about inflation in 2009 and 2010. I thought there would be a lot of inflation with the Fed lowering rates to practically zero, and that

4944-447: The Federal Reserve and move towards a gold standard in this country!" Few economists support a gold standard. During a 2016 debate on the minimum wage, Moore stated, "I'm a radical on this. I'd get rid of a lot of these child labor laws. I want people starting to work at 11, 12." Moore asserted in a December 2018 appearance on CNN that the Federal Reserve was causing deflation in the economy, although Commerce Department data showed there

5047-528: The Reagan Administration during the second term, Kudlow returned to Wall Street and Bear Stearns, serving as the firm's chief economist from 1987 until 1994. During this time, he also advised the gubernatorial campaign of Christine Todd Whitman on economic issues. In the late 1990s, after a publicized battle with cocaine and alcohol addiction , Kudlow left Wall Street to become an economics and financial commentator – first with National Review , and later hosting several shows on CNBC . Kudlow

5150-851: The Treasury Alexander Hamilton . Bartlett stated in 2007 that Today, hardly any economist believes what the Keynesians believed in the 1970s and most accept the basic ideas of supply-side economics – that incentives matter, that high tax rates are bad for growth, and that inflation is fundamentally a monetary phenomenon. Consequently, there is no longer any meaningful difference between supply-side economics and mainstream economics. ... Today, supply-side economics has become associated with an obsession for cutting taxes under any and all circumstances. No longer do its advocates in Congress and elsewhere confine themselves to cutting marginal tax rates –

5253-538: The United Nations Nikki Haley had announced that the U.S. would soon sanction Russia due to "momentary confusion". After Haley contradicted Kudlow's claim, Kudlow called her to apologize. In April 2018, Kudlow stated, "The trouble I had with the Obama [stimulus] program was it was all spending." However, about 35% of the stimulus was tax relief, including a $ 116 billion income tax cut. As Trump celebrated

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5356-448: The United States over the last 40 years have not increased revenue. The term "supply-side economics" was thought for some time to have been coined by the journalist Jude Wanniski in 1975; according to Robert D. Atkinson , the term "supply side" was first used in 1976 by Herbert Stein (a former economic adviser to President Richard Nixon ) and only later that year was this term repeated by Jude Wanniski. The term alludes to ideas of

5459-499: The World Works in which he laid out the central thesis of supply-side economics and detailed the failure of high tax rate progressive income tax systems and United States monetary policy under Richard Nixon and Jimmy Carter in the 1970s. Wanniski advocated lower tax rates and a return to some kind of gold standard , similar to the 1944–1971 Bretton Woods System that Nixon abandoned. James D. Gwartney and Richard L. Stroup provide

5562-479: The advocacy group Committee to Unleash Prosperity with Laffer, Larry Kudlow , and Steve Forbes . Moore advised Herman Cain , a former presidential candidate and business executive, on his 9-9-9 Tax Plan for his 2012 presidential campaign . In 2014, The Heritage Foundation announced that Moore would rejoin the think tank as chief economist. Since March 2015 his profile on the Heritage website has described him as

5665-466: The amount of retained and taxed income is determined by the marginal tax rate. That is why, from a supply-side economist's standpoint, marginal tax rates play a significant role in determining the development of the economy. Due to crucial role in determining how much time workers will spend on work and leisure or how much income will be spent on consumption and for savings, supply-side economists insist on decreasing tax rates as they believe it could improve

5768-483: The country and "presumably their allegiance to President Trump." In the summer of 2019, Kudlow twice asserted that the proposed United States–Mexico–Canada Agreement would increase GDP by half a percentage point and job creation by 180,000 per year after ratification. The International Trade Commission analysis that he was apparently referencing estimated that the Agreement would increase GDP by 0.35% and jobs by 176,000 six years following ratification. Another study by

5871-459: The decrease in tax revenues even if the tax rates are high. Due to the effect exerted by taxes on the taxed income, the adjustment of tax rates may not lead to proportional changes in tax revenues. That is why, some supply-side economists insist decreasing high tax rates can result in an increase of tax revenues. The Laffer curve embodies a postulate of supply-side economics: that tax rates and tax revenues are distinct, with government tax revenues

5974-512: The deficit. In July 2018, Kudlow supported his earlier opinion that the CBO is not credible when he asserted, "Even the CBO numbers show now that the entire $ 1.5 trillion tax cut is virtually paid for by higher revenues and better nominal GDP ." The CBO later found that the tax cut reduced revenues and that the resulting deficits increased by $ 1.9 trillion after accounting for macroeconomic feedback. Also in April, Kudlow alleged that U.S. Ambassador to

6077-407: The distribution of their income between consumption and savings. The cost of individual's decision to assign a unit of income to either consumption or savings is a future value of the unit, which has been given up by choosing either to consume or to save. The unit of income value is defined by the marginal tax rates. Therefore, higher tax rates would decrease the cost of consumption, which would cause

6180-419: The early 2000s that disparaged women, which Moore dismissed as spoofs or jokes. The Times reported, "Congressional Republicans say [Moore's views on interest rates and the gold standard] are less likely to impede Mr. Moore’s confirmation prospects than concerns over his personal life and past statements." Moore's call on the Federal Reserve to lower interest rates was also controversial. Lowering interest rates

6283-560: The economists Robert Mundell and Arthur Laffer . Supply-side economics developed in response to the stagflation of the 1970s . It drew on a range of non- Keynesian economic thought , including the Chicago School and New Classical School . Bruce Bartlett , an advocate of supply-side economics, traced the school of thought's intellectual descent from the philosophers Ibn Khaldun and David Hume , satirist Jonathan Swift , political economist Adam Smith and United States Secretary of

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6386-406: The economy boomed in the late-1990s, Kudlow credited it to tax cuts and capital gains rate cut enacted during the Reagan administration. Kudlow was a strong advocate of George W. Bush 's substantial tax cuts, and argued that the tax cuts would lead to an economic boom of equal magnitude. After the implementation of the Bush tax cuts, Kudlow said year after year that the economy was in the middle of

6489-528: The economy in ruins", he stated that supply-side economics produced results which fell "so far short of what it promised", describing the supply-side theory as "free lunches". Clinton signed the Omnibus Budget Reconciliation Act of 1993 into law, which raised income taxes rates on incomes above $ 115,000, created additional higher tax brackets for corporate income over $ 335,000, removed the cap on Medicare taxes, raised fuel taxes and increased

6592-616: The economy would continue to expand for years to come. The Great Recession , the worst economic downturn since the Great Depression , began that month. Kudlow served as one in a rotating set of hosts on the CNBC show America Now , which began airing in November 2001. In May 2002, the show was renamed Kudlow & Cramer , and Kudlow and Jim Cramer became the permanent hosts. In January 2005, Cramer left to host his own show, Mad Money , and

6695-437: The first calendar year", although data released later showed that federal revenue had declined and that the deficit had increased during fiscal year 2018. During the 2018–2019 partial federal government shutdown , approximately 420,000 federal workers deemed "essential" were compelled to continue working without pay. On the 34th day of the shutdown, Kudlow asserted that such workers were "volunteering" to work for their love of

6798-462: The fiscal year ended September 2018 were down 31% from the prior fiscal year, the largest decline since records began in 1934, except for during the Great Recession when corporate profits, and hence corporate tax receipts, plummeted. In February 2019, Moore stated, "There's no bigger swamp in Washington than the Federal Reserve Board. It's filled with hundreds of economists who are worthless, who have

6901-515: The five-month anniversary of the tax cut on June 29, 2018, Kudlow falsely asserted that the tax cut was generating such growth that "the deficit, which was one of the other criticisms, is coming down – and it's coming down rapidly." Kevin Hassett , chairman of Trump's Council of Economic Advisers , noted days earlier that the deficit was "skyrocketing", which is consistent with the analysis of every reputable budget analyst. Kudlow later asserted that he

7004-514: The future. Therefore, there is a decline in work effort and investment, which in turn causes a decrease of production and GNP, regardless of the total demand levels. On these assumptions, supply side economists formulate the idea that a cut in marginal tax rates has a positive effect on economic growth. The main focus of supply-side economics is promotion of economic growth. In this regard, some studies have suggested to consider two relative prices. The first one influences decisions of individuals on

7107-481: The global war on terrorism is the single biggest problem facing the stock market and the nation today". In an open letter dated February 12, 2003, he endorsed George W. Bush 's policies on economic growth and jobs. In 2016, Kudlow endorsed Republican presidential candidate Donald Trump . He later defended Executive Order 13767 , Trump's plan to build a wall along the Mexico–United States border, declaring it

7210-545: The group, Moore targeted " Republicans in Name Only " whom he viewed as not aligned with his anti-tax views; he criticized Republican Senators who did not readily embrace tax cuts, including Arlen Specter , Olympia Snowe , and George Voinovich . At the Club for Growth, Moore sought to change the Republican Party, saying in 2003, "We want to take over the party's fundraising. We want it to be, in 10 years, that no one can win

7313-469: The growth rates of the economy. Laffer curve illustrates a mathematical relationship between tax revenues and tax rates, which was popularized by economist Arthur B. Laffer in 1974. The Laffer Curve posits the existence of a maximum point when tax revenue is maximized at a specific (unknown) tax rate. Many interpret the Laffer Curve as higher tax rates can sometimes decrease the tax base, which will lead to

7416-459: The lien was the result of an IRS miscalculation, though Moore claims to have paid the lien and Montgomery County, Maryland Circuit Court records show the case is closed. In addition to the child support payments, the IRS also disallowed other deductions Moore had claimed. Moore has three sons and, as of 2019, is married to Anne Carey. Supply-side economics Heterodox Supply-side economics

7519-453: The limits of growth, that economic growth will clear deficits. According to The Economist , Kudlow is "the quintessential member of the Republican Party's business wing." Although in the media, Kudlow regularly comments on economic matters and served as Bear Stearns 's chief economist from 1987 until 1994, he has no formal economics qualifications. In 1993, Kudlow said that Bill Clinton 's tax increases would dampen economic growth. When

7622-404: The narrow defeat of Senator Pat Toomey , who had the group's support. After Moore's departure, lawyers for the group sent letters to him and members of his new organization, the Free Enterprise Fund, threatening legal action for allegedly stealing the group's mailing list to raise funds for his new organization; Moore's partner Mallory Factor stated the list was acquired elsewhere. After he left

7725-498: The nomination. Democrats also criticized Moore over an unpaid $ 75,000 tax lien entered against him. Though some key Republican senators expressed support for Moore's nomination, including members of the Senate Banking Committee , enough Republican senators voiced concerns about Moore to place his confirmation in jeopardy. Republican senator Richard Shelby said, "I've always said they could use diversity, you don’t need to be

7828-438: The portion of Social Security income subject to tax, among other tax increases. Frankel and Orszag described the "progressive fiscal conservatism" of the 1993 package: "Such progressive fiscal conservatism combines modest attempts at redistribution (the progressive component) and budget discipline (the fiscal conservative component). Thus the 1993 package included significant spending reductions and tax increases. But it concentrated

7931-499: The program's name was changed the next month to Kudlow & Company . The program went on hiatus in October 2008, returned in January 2009 as The Kudlow Report , and ended its run on CNBC in March 2014. Kudlow is also a regular guest on Squawk Box . He has contributed to CNBC.com on MSN . Starting in 2004, he also appeared on The John Batchelor Show as a co-host on Tuesdays and as

8034-584: The proposed Trump tariffs. However, upon his appointment, he said that he was "in accord" with President Trump's steel and aluminum tariffs , apparently as a "negotiating tactic". Kudlow is not known as a deficit hawk . On June 26, 2002, in a commentary in NRO titled "Taking Back the Market – By Force", Kudlow called for the United States to attack Iraq , saying Saddam Hussein had "weapons of mass destruction at his disposal" and that "a lack of decisive follow-through in

8137-455: The rich provided counter-example to the supply-side tax cut doctrine: "Bill Clinton provided a clear test, by raising taxes on the rich. Republicans predicted disaster, but instead the economy boomed, creating more jobs than under Reagan." Larry Kudlow Lawrence Alan Kudlow (born August 20, 1947) is an American conservative broadcast news analyst, economist, columnist, journalist, political commentator, and radio personality. He

8240-547: The same at a 100% tax rate as they are at a 0% tax rate and maximum revenue somewhere in between these two values. Supply-siders argued that in a high tax rate environment lowering tax rates would result in either increased revenues or smaller revenue losses than one would expect relying on only static estimates of the previous tax base. This led supply-siders to advocate large reductions in marginal income and capital gains tax rates to encourage greater investment, which would produce more supply. Jude Wanniski and many others advocate

8343-460: The supply-side economics from two perspectives: Supply-side economics has originated as an alternative to Keynesian economics, which focused macroeconomic policy on management of final demand. Demand-side economics relies on a fixed-price view of the economy, where the demand plays a key role in defining the future supply growth, which also allows for incentive implications of investment. The Keynesian policy approaches focus on demand management as

8446-573: The tax increases on upper-income taxpayers, while substantially expanding the Earned Income Tax Credit, Head Start, and other government programs aimed at lower earners." The tax increases led to greater revenue (relative to a baseline without a tax increase). The bill was strongly opposed by Republicans, vigorously attacked by John Kasich and Minority Whip Newt Gingrich as destined to cause job losses and lower revenue. Economist Paul Krugman wrote in 2017 that Clinton's tax increases on

8549-572: The tax on each additional dollar earned – as the original supply-siders did. Rather, they support even the most gimmicky, economically dubious tax cuts with the same intensity. ... today it is common to hear tax cutters claim, implausibly, that all tax cuts raise revenue. Current day advocates of supply-side economic policies claim that lower tax rates produce macroeconomic benefits and emphasize this benefit rather than their traditional ideological Classical liberals opposition to taxation because they opposed government in general. Their traditional claim

8652-488: The two vacant seats at the Federal Reserve Board of Governors . After the nomination was announced, Moore stated "I’m kind of new to this game, frankly, so I’m going to be on a steep learning curve myself about how the Fed operates, how the Federal Reserve makes it decisions, and this is a real, exciting opportunity for me." Democratic Senators denounced Moore as unqualified for the post, and called upon Trump to drop

8755-891: The world", though foreign direct investment into America declined significantly during the two years through August 2019. On June 29, 2018, Kudlow stated, "This is now, the USA, according to the OECD , the hottest economy in the world." However, this was not a new phenomenon under the Trump presidency, as by 2015 the American GDP growth rate had been almost twice that of other industrialized countries since 2008, and by 2015 America had created as many jobs as all other industrialized countries combined since 2010. Kudlow also asserted: "They've been saying that all along, OK? We could never get to 3% growth... It couldn't be done, they say. It's being done." However, analysts have actually said that 3% sustained growth

8858-399: The wrong model in their mind. They should all be, they should all be fired and they should be replaced by good economists." Before his nomination to the Federal Reserve Board, in late December 2018 Moore stated, while on a radio talk show, that he believed "the people on the Federal Reserve Board should be thrown out for economic malpractice". On March 13, 2019, Moore co-authored a column in

8961-502: Was a leading anti-war politician during the Vietnam war era . Duffey's campaign manager called Kudlow a "brilliant organizer". In 1976, he worked on the U.S. Senate campaign of Daniel Patrick Moynihan , along with Tim Russert , against Conservative Party incumbent James L. Buckley , brother of William F. Buckley, Jr. During the first term of the Reagan administration (1981–1985), Kudlow

9064-597: Was associate director for economics and planning in the Office of Management and Budget (OMB), a part of the Executive Office of the President . In 1987, Kudlow was hired by Bear Stearns as its chief economist and senior managing director. Kudlow also served as an economic counsel to A. B. Laffer & Associates, the San Diego, California , company owned by Arthur Laffer , a major supply-side economist and promoter of

9167-784: Was born and raised in New Jersey , the son of Ruth (née Grodnick) and Irving Howard Kudlow. His family is Jewish . He attended The Elisabeth Morrow School in Englewood, New Jersey , until the sixth grade. He then attended the Dwight-Englewood School through high school. He graduated from the University of Rochester in Rochester, New York , with a bachelor's degree in history in 1969. Although his undergraduate qualifications and credentials pertaining to economics have been called into question as he completed only an undergraduate degree with

9270-438: Was businessman Lyman G. Bloomingdale . The Washington wedding was presided over by U.S. District Judge John Sirica . In 1986, he married Judith "Judy" Pond, a painter and Montana native. In the mid-1990s, Kudlow left Bear Stearns and entered a 12-step program in order to deal with his addictions to cocaine and alcohol. He subsequently converted to Catholicism under the guidance of Father C. John McCloskey III . Kudlow

9373-428: Was consistent inflation. In April 2019, Moore asserted deflation was "the whole reason the economy was so poor in late 2018," although inflation was 2.2% in the fourth quarter of 2018. In September 2018, Moore wrote a Wall Street Journal opinion piece entitled, "The Corporate Tax Cut Is Paying for Itself," in which he asserted that "faster-than-expected growth has produced a revenue windfall." Corporate tax receipts for

9476-427: Was given up by choosing either work or leisure. The cost also includes the future income, which was given up for leisure instead of enhancing the professional skills. The value of lost income is defined by the tax rate assigned to the additional income. Therefore, the increase in marginal tax rates leads to a decrease in the price of leisure. However, if the marginal tax rate decline, the cost of leisure increases. Both

9579-600: Was necessary to prevent terrorists from entering the United States, the United States was at war with ISIS and Trump was going to do what was necessary to protect the country. He also penned an article for RealClearPolitics advocating for conservative unity in the election and asking his conservative peers to stop criticizing Trump and instead help him become a stronger candidate. After the 2018 G7 Summit in Charlevoix, Canada, he criticized Canadian Prime Minister Justin Trudeau in

9682-594: Was not an economic stimulus . Moore said, if it were true that it was the stimulus, "we could just give everybody $ 100,000 and we'd all be rich right? It’s just so stupid." In 2023, Moore co-authored the chapter on the Department of the Treasury in the Heritage Foundation's Project 2025 book, Mandate for Leadership: The Conservative Promise. On March 22, 2019, Trump announced he would nominate Moore to fill one of

9785-457: Was only partially based on supply-side economics. Congress under Reagan passed a plan that would slash taxes by $ 749 billion over five years. Critics claim that the tax cuts increased budget deficits while Reagan supporters credit them with helping the 1980s economic expansion and argued that the budget deficit would have decreased if not for massive increases in military spending. As a result, Jason Hymowitz cited Reagan—along with Jack Kemp —as

9888-514: Was referring to future deficits. Other budget forecasts indicated deficits in coming years would increase as a result of the Trump tax cut unless they were offset by major spending cuts. Barring such reductions, the CBO projected the tax cut would add $ 1.27 trillion to deficits over the next decade, even after considering any economic growth the tax cut might generate. Kudlow asserted on June 29, 2018, that "capital investment, you know, for new jobs and better careers, [is] flowing in from all corners of

9991-479: Was released the day before Kudlow spoke – coming in at 2.0%. Three months later GDP for the second quarter of 2018 was announced at an annual growth rate of 4.1%. On August 28, 2018, after Trump accused Google of rigging search results to show information biased against him, Kudlow told reporters, "We're taking a look at" regulating Google. In November 2018, eleven months after the Trump tax cut, Kudlow stated, "The tax cut has paid for itself already barely through

10094-555: Was supported by Trump but opposed by Fed chairman Powell and other policymakers at the time. The Federal Reserve later lowered rates by a quarter of a percent in September 2019 and again the next month. Moore reacted by calling it "an example of where I was right, and where my critics were wrong." On May 2, 2019, Moore withdrew his name from consideration, saying "The unrelenting attacks on my character have become untenable for me and my family and 3 more months of this would be too hard on us." Following his withdrawal, Moore penned an op-ed in

10197-463: Was that each man had a right to himself and his property and therefore taxation was immoral and of questionable legal grounding. On the other hand, supply-side economists argued that the alleged collective benefit (i.e. increased economic output and efficiency) provided the main impetus for tax cuts. As in classical economics , supply-side economics proposed that production or supply is the key to economic prosperity and that consumption or demand

10300-545: Was unfit to serve on the Board. Economist Justin Wolfers called the selection of Moore "the first genuinely bad Trump pick for the Fed" and called on the Senate not to confirm Moore. Harvard economics professor Greg Mankiw said that Moore "does not have the intellectual gravitas" for the position. Economist Menzie Chinn noted that Moore has not authored or co-authored any peer-reviewed journal articles. In April 2019, 105 professors, former government officials, and analysts signed

10403-443: Was unlikely, rather than periodic quarters of growth of 3% or more. From 2009 through 2016, GDP growth exceeded 3% in eight quarters – including 5.5% and 5.0% in consecutive quarters of 2014 – yet it did not sustain 3% or more for any full year. Although GDP exceeded 3% in two consecutive quarters of 2017, the average growth was 2.4% through Trump's first five quarters in office. The final figure for first quarter 2018 GDP growth

10506-608: Was withdrawn, Moore returned to his previous positions with FreedomWorks, The Heritage Foundation, and Committee to Unleash Prosperity. Additionally, Moore became chief economic officer of Frax, a cryptocurrency company that branded itself "the world’s decentralized central bank." Moore was married to Allison Moore until 2011. In 2012, a Virginia court held Moore in contempt of court for failing to pay his ex-wife $ 300,000 in spousal support, child support, and other obligations in his divorce settlement. Moore did not respond to repeated court requests to make payments and failed to appear for

10609-449: Was wrong." In April 2020, Moore referred to individuals who protested stay-at-home orders during the coronavirus pandemic as "the modern-day Rosa Parks — they are protesting against injustice and a loss of liberties." He ran a group named Save Our Country, which argued for the reopening of the economy amid the coronavirus pandemic. Moore argued against coronavirus relief in the form of unemployment benefits, arguing that "giving people money"

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