Larry Kudlow: Start right away with a nice, big financial reconciliation package

High back l Speaker Mike JohnsonThis is the topic of scum.

Today’s afternoon drama was on the House floor, where Michael Johnson was finally re-elected Speaker of the 119th Congress by a vote of 218 to 215.

It may be a bit of an exaggeration, but it all reminded me of the great cowboy movie “High Noon” – starring Gary Cooper and Grace Kelly. Cooper won an Oscar for his role, where he had to take down bad guys and, in fact, at the end of the film, shoot the worst criminal in the city.

It wasn’t exactly that way on the House floor today, but in the end, Mike Johnson managed to convince dozens of GOP insurrectionists, including a friendly President Trump of the last holdouts. So, Gary Cooper’s metaphor isn’t accurate, but you get the picture.

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Speaker Johnson delivered a powerful acceptance speech after the final result – touching on key elements of President Trump’s mandate for the change agenda. Here is one of them:

Speaker Johnson: We will act quickly and begin to defend our country’s borders. This is priority number one. Yes. | We will deport dangerous criminals and illegal aliens, and we will finally finish building the border wall.

The speaker then moved immediately to pro-growth tax cuts. I listen:

Johnson: After four years of high inflation, we have a big agenda. | We can fight high inflation, and we must do so. We will provide relief to Americans and extend Trump’s tax cuts.

Unfortunately, when President Trump takes office, he will be stuck with a leftover Inflation – Partly caused by Biden’s crazy, last-minute, lame-duck spending and the Fed mistakenly monetizing Biden’s deficits by lowering interest rates and inflating the money supply.

Unless Mr. Trump’s tax cuts and supply-side deregulation are implemented quickly, 2025 may turn out to be a very disappointing year for the broad working-class coalition that gave Mr. Trump such a resounding electoral victory.

For this reason, the new Congress should act immediately to create what some sources close to President Trump call “a nice, big bill.” This may include tax cuts, border closures, spending cuts passed by the DOGE brothers, energy deregulation, and a “peace through strength” defense component.

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Let’s not waste any time – like we did in 2017. Start right away with a nice, big financial reconciliation package. Get this done by mid-year at the latest.

This would beat Biden’s inflation and provide much-needed support, Blue collar Boom. This is the riff.

This article is an excerpt from Larry Kudlow’s editorial commentary on the January 3, 2025 edition of “The Kudlow.”