FOX Business host Larry Kudlow discussed former President Donald Trump’s plan to rejuvenate the American industrial sector by creating jobs and reducing regulations on the show ‘Kudlow.’ This development comes on the same day as a Wall Street Journal editorial highlighted the stagnation in U.S. industry output over the past two years, contradicting claims of a manufacturing boom under the Biden administration.
The Wall Street Journal emphasized that the ISM purchasing managers index for manufacturing has mostly been in contraction since late 2022. According to the publication, the rebound in manufacturing jobs during the Biden-Harris administration mainly reflected a recovery from the pandemic, with jobs and hours worked declining since October 2022. Additionally, real average weekly wages for manufacturing workers have decreased by 2.7% since January 2021, despite the significant subsidies and tax credits provided under the Green New Deal.
Overregulation, particularly concerning climate policies, and rising inflation have significantly hampered hard goods industries. The Biden administration’s Environmental Protection Agency (EPA) climate rules have particularly affected industries such as paper, cement, glass, steel, iron, and chemicals, compounded by increasing electricity prices.
In a speech in Savannah, Georgia, Trump outlined his vision for a new American industrialism. He proposed offering major companies and manufacturers incentives, including lower taxes, reduced energy costs, minimized regulatory burdens, and access to the vast American market, provided they manufacture their products domestically.
Trump’s plan is centered on what he terms a manufacturing renaissance, featuring a Made-in-America tax rate of 15%. He proposed reducing the business tax from 21% to 15%, aiming to make the U.S. the most competitive tax environment globally, but only for those producing within the country. Additionally, Trump endorsed a 100% expensing write-off for heavy machinery and other manufacturing equipment in the first year, advocating for full expensing of manufacturing investments. He also committed to reducing old regulations at a rate of ten removed for every new one introduced, upping his previous ratio of seven to one.
Some Republican House members have already drafted legislation in line with Trump’s proposed 15% corporate tax rate, which could position the U.S. as a leading global competitor. Trump’s vision for a revitalized industrial sector encapsulates all his growth-oriented policies, aiming to drive substantial domestic production and economic expansion.
The discussion was part of Larry Kudlow’s opening commentary on the September 24, 2024, edition of “Kudlow.”
