Larry Kudlow at NRO is quoting John Taylor (good choice)

He [Taylor] concludes, “To turn the economy around we need to take the muzzle off, and that means regulatory reform, tax reform, budget reform, and monetary reform.”

Then Larry says:

Well, aren’t those exactly the reforms that President Trump is promoting?

The issue is whether The Donald’s growth expectations, that are higher than current but lower than most recent past president, will be met.  The answer to Larry’s question is: Almost.  He can check off a good start on regulatory reform.  Monetary and budget are pretty far off.  Tax reform is a work is progress with one big caveat.  The Donald wants to tax international trade.  The question is how big of a negative will that be?  We think the uncertainty might be a bigger an impact than the direct effect.  Taxing international trade is just another regulation to hinder business.  Larry is right that growth is the key to many political outcomes.  We think it will improve on The Donald’s watch but it will be hindered by his obsessions with taxing and restricting international trade.



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