According to Larry Kudlow, a long-time advocate of Reaganomics and now President Trump’s chief economic adviser, the US needs to cut the corporate tax rate even more and strengthen the dollar.
It is not readily apparent but a strong dollar results in big trade deficits, like the US has now, which President Trump says needs to be reduced. Trump’s commerce advisory says, however, that the trade imbalance has a lot to do with currency devaluation. In other words, the department of commerce is saying that a strong dollar derives from devaluation, and that causes the trade deficit.
The derivative argument being made here is intended to transact an interpretation of what reality actually is (and what “the makers” naturally do is color and shape just exactly what it is, but with limited liability, naturally derived, of course). According to Mr. Kudlow, cut taxes for the corporate body, “like Reagan and Kennedy did,” and the US will have the growth (the added supply) to raise interest rates and strengthen the dollar at the same time.
Since the problem to be solved is not the trade deficit but what derives it, commerce officials talk about unfair trade practices. What derived from the balance of trade is record income inequality and equity valuations supported by falling median income, all of which derives from free-trade agreements the president says he opposes. His new adviser, however, supports free-trade agreements that render competitive labor prices and add supply without competitive-price pressure. The difference is due mostly to corporate consolidation, which Mr. Kudlow advocates should pay no taxes because it causes (derives) slow growth.
Since slow growth is what we have now, derived from record, corporate tax cuts of the GW Bush era, and resulting in the Great Recession, Mr. Kudlow’s derivative argument is good, isn’t it? The president should heed his advice since people like Larry Kudlow know that objective reality just is what it is. It just derives (objectively) no matter what, and if we all just yield to it, and don’t fight it (like Ayn Rand argued), we will all be better off, won’t we?