No matter how political Fed chairman Jay Powell may be, with his 50-bps election gift to Kamala Harris, the person who helped the American economy the most was Donald Trump during the pre-pandemic first three years of his administration.
New Census numbers show that real median income growth during Mr. Trump's pre-pandemic first three years compared to Joe Biden's — overall take-home pay for typical families — increased more than five-times as much under Mr. Trump than under Mr. Biden — up $6,040 for Trump, versus just $1,050 under Biden-Harris.
When you break it down among key demographics, Mr. Trump's income numbers are almost 10-times better than Biden's. For example — now, stay with me on these numbers, folks — among Whites, real median income increased $8,910 under Trump, compared to a measly $850 under Biden. That's actually 10-and-a-half times more.
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Among Asians, income increased $14,600 under Trump, versus a paltry $1,500 under Biden — about 10-times as much. For Hispanics, $6,960 under Trump, versus only $700 under Biden. Again, just about 10-times. Among Blacks, it was $4,540 under Mr. Trump, versus $2,650 under Biden. So, about double.
This is one reason why Mr. Trump has been able to put together a working-class coalition, spanning all racial and ethnic groups. Remember, median income means that of all the incomes, this statistic captures the middle of the population, and these Census numbers adjust for inflation.
The key takeaway here is how badly these groups have done under Biden-Harris, which I call the affordability crisis. So, income growth under Biden-Harris was low, on top of which, cost-of-living price increases were very high, outstripping income gains.
That is why people are worse off under Biden-Harris and were much better off under Mr. Trump. That is why Mr. Trump has such a large lead when it comes to the economy.
No amount of election-year interest-rate finagling by Jay Powell is going to change this. Mr. Trump's record is solidly entrenched in voters’ minds.
Powell, meanwhile, keeps telling people how great the Biden-Harris economy is — but, if so, why has he made a 50-bps super rate cut, something that's only happened in emergencies like 9/11 or COVID or the financial meltdown?
Or, perhaps Powell is acknowledging just how bad the Biden-Harris economy really is, with perhaps more big job losses coming down the road, and even higher unemployment. Donald Trump has a better policy idea. Here's what he said last night at his rally in Long Island, NY.
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FORMER PRESIDENT TRUMP: We are going to grow, grow, grow to start paying down our debt. | And we will keep the U.S. dollar as the world's reserve currency. | We will deliver low taxes, low regulations, low energy cost, low interest rates, low inflation, so that everyone can afford groceries, a car and a home — very simple.
Now that's a real economic growth plan — not some phony, politicized interest rate cut. That's the riff.
This article is adapted from Larry Kudlow’s opening commentary on the Sept. 19, 2024, edition of "Kudlow."
