By: Larry Kudlow – townhall.com – January 28, 2018
Quote: “America is open for business, and we are competitive once again.” End quote. That was just one of the key lines in President Trump’s highly successful Davos speech this week.
Of course, in going to Davos, Trump entered the lion’s den. A year ago such a visit would have been a poor idea. Back then, elitist heads of state, the EU bureaucrats, and the international CEOs were uniformly against Donald Trump.
A year later he could make the fact-based argument that, in his words, “The world is witnessing the resurgence of a strong and prosperous America.”
And the core of his message was this: “There has never been a better time to hire, to build, to invest, and to grow in the United States.”
Trump’s polices, in just one year, have begun to restructure the American economy. We’ve moved from “secular stagnation” (i.e., high taxes, massive regulation, huge government spending, and a disdain for business and investors) to a new private-sector incentive system that rewards success.
By slashing individual and corporate tax rates, providing 100% immediate expensing for plants and technology, and making it easy for big companies who fled our high-tax system to bring the money back home, he has ended the war against business and investment.
And it has happened faster than anyone imagined possible.
More than 250 American companies have announced gigantic investment projects, paid sizeable bonuses to their workforces, increased 401(k) contributions, and raised corporate minimum wages and other benefits.
And now, a roaring stock market, generating $7 trillion in new wealth, provides the only realistic chance of bailing out excessive government-union pensions and benefits — even though these very unions totally opposed Trump’s corporate tax reform.
Ankle-biting Democrats say, “Rising business profits will go to shareholder buybacks.” As if that were a bad thing. Meanwhile, new money is circulating throughout the economy to start new companies and re-oxygenate the system.
Didn’t Apple just announce $ 350 billion in new investment projects?
Democrats say the incredible business response to tax reform is nothing more than one-time crumbs for workers. But didn’t Walmart — which has bitterly fought attempts to raise the federal minimum wage — just raise its internal minimum wage for virtually all its wage earners, give bonuses of up to $1,000, expand maternity and parental leave, and commit $5,000 to every employee who adopts a child?
That’s permanent, as are increased retirement-fund contributions.
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