The day after the election, the stock market rose 1,500 points, one of the best days in its history. It’s a bit like saying, “Welcome home, President Trump.” We’re glad you’re back! »

The market is certainly welcoming Mr. Trump’s tax cut plans, as well as his rollback of deregulation of the $2 trillion in new regulations put in place by the Biden-Harris administration.

Trump’s deregulation plan will include permitting reform, not only to unblock the fossil fuel taps and produce more liquid gold, but also to open the door to pipelines, fracking and drilling in Alaska, New York. -Mexico and the Gulf of Mexico.

Additionally, reopening LNG exports and allowing new LNG upgrades and terminals. The stock market welcome mat for President Trump it is also a vote of confidence on the death of big government socialism; the radicals have woken up and climate policies are dead; The radical and positive politics of DEI are dead. All these left-wing obsessions affected large and small businesses alike.

The Fed’s preferred inflation gauge showed price growth continued to slow in September

They affected construction projects, broadband projects and even high-tech companies. Whether it’s chips, quantum computing, or AI, because you couldn’t build anything unless you respected the various mandates of woke government and DEI.

Or the SEC imposing insane climate reporting requirements on all companies and their consumers.

It’s as if securities regulators have decided they really are the Weather Channel. There is a good chance that there will be banking deregulations – such as lower capital standards, or at least no higher capital requirements for a sector that is currently vastly overcapitalized.

Then there is the Elon Musk phenomenon. He’s the smartest man on the planet. Lately, he has become a political rock star, devoting himself full-time to helping Mr. Trump get elected president.

Elon already works with the Trump transition committee to remove approximately $2 trillion in wasteful and wasteful federal spending to curb the budget deficit and debt creation.

Crazy programs like the COVID Act of 2021, or the various CHIPS and infrastructure bailout bills, or the misnamed “Inflation Reduction Act” – all sponsored by Democrats and passed with Kamala’s tie-breaking vote – should be submitted to a thorough audit.

Many of these programs were authorized by the Democratic Congress, but the money hasn’t even been spent. Partly because the government is so incompetent, and partly because of the DEI’s crazy regulations.

Regardless, the unspent funds would have to be forgiven, putting a significant damper on federal spending. Meanwhile, extended corporate tax cuts – and let’s not forget a 15% corporate tax rate on domestic goods – will spur economic growth and job creation, making raise the GDP needle to maybe 3-4%.

So producing lots of extra income through new incentives to work and invest, and all of that will reduce budget deficits even further. Growth solves deficits and debt.

Some on Wall Street continue to talk about the tariffs being inflationary, but Mr. Trump, during his first term, slammed China with huge tariffs, accusing it of unfair trade and intellectual property theft .

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Yet there has been virtually no inflation. So let me get this straight… During his first term, Mr. Trump cut taxes, curbed regulations, protected America from unfair trade practices, and the overall CPI only rose 7 % over four years, or 1.4% at an annual rate. .

Biden-Harris, on the other hand, maintained Trump’s tariffs but bulldozed their way into the kingdom, producing record deficits and debt, opening the floodgates to illegal immigration, and their CPI rose by 21%, or around 6% on an annual basis. .

So, I ask you, friends: who is the inflationist? To top it off, Trump constantly repeats that he wants the dollar to remain the world’s reserve currency.

It fundamentally supports the king dollar, and that can never be inflationary, and that’s why the stock market rolled out a record welcome mat for Mr. Trump the day after his landslide election. That’s the riff.

This article is adapted from Larry Kudlow’s opening commentary in the November 7, 2024 edition of “Kudlow.”