Mike Faulkender joined Kudlow on FBN to discuss the economy.

In a recent discussion on Fox Business Network’s "Kudlow," experts Kevin Hassett, former Chair of the Council of Economic Advisors, and Mike Faulkender, former Assistant Treasury Secretary and current Chief Economist at AFPI, provided insights into the current state of the economy. They highlighted several concerning trends: manufacturing and factory orders are in decline, unemployment claims are rising, and the housing market is in a prolonged recession.

Faulkender emphasized the dichotomy within the economy, where growth is primarily driven by government spending, health care services, and specific construction projects, leaving the private sector stagnant. He pointed out the struggles in the manufacturing and housing sectors, suggesting that increased government spending might be required to counterbalance the weak private sector performance.

The conversation also touched on political influences, with Hassett noting market reactions to fluctuations in President Trump’s betting odds and the potential economic impacts of his policies. Both experts underscored the need for policy adjustments, such as reindexing Social Security taxes to inflation, to alleviate the economic burden on seniors and stimulate labor supply. Faulkender and Hassett agreed that strategic tax cuts could be vital in steering the economy away from a potential recession.