DEBUNKED: Larry Kudlow did NOT dismiss America’s 22 trillion debt and say it was “quite manageable”

Earlier today it was reported by a Washington Post reporter that Larry Kudlow had dismissed America’s 22 trillion in debt, saying it wasn’t a huge problem and that it was quite manageable:



As soon as I saw this tweet I was suspicious because it doesn’t sound anything like what a fiscal hawk like Kudlow would say. And I was right.

Kudlow was asked by someone in the audience at a post-interview Q&A this morning on CNBC about our budget deficits, and it was to that question that he made the above remarks.

It’s cued up to the question:

Here’s my quick transcription:

QUESTIONER: On the deficit, how are you going to deal with it? It’s unsustainable.

KUDLOW: Right now the latest numbers show the current deficit is about two and a half percent of GDP. It’s a very modest number. …The deficit is coming down in the long run. I will say, Peter, as I have, there are basically only two ways to lower budget deficits. One is economic growth….and limited government, and we are pursuing both. I don’t see this as a huge problem right now. Quite manageable. …Revenue analysis is coming in very well with respect to our earliest projections of the impact of the tax cuts on the economy and the budget. Actually, I would argue strongly that the corporate tax cut has already been paid for and that roughly two thirds of the overall tax cut has been paid for. 2018 was year one, 2019 is year two. Give me another year or two and I think you’ll see tremendous improvement.” Right now two and a half of GDP – that’s the CBO number – it ain’t much.

Now whether or not you want to take issue with his answer about the deficit is up to you. But let’s just be honest about what he was actually talking about, because there’s a HUGE difference between budget deficits and the national debt.

Comment Policy: Please read our comment policy before making a comment. In short, please be respectful of others and do not engage in personal attacks. Otherwise we will revoke your comment privileges.

19 thoughts on “DEBUNKED: Larry Kudlow did NOT dismiss America’s 22 trillion debt and say it was “quite manageable”

  1. because there’s a HUGE difference between budget deficits and the national debt.

    A sad majority of Americans do not understand that in the slightest. (Same way they don’t understand what insurance is or how it works.)

    1. and, because it’s all considered boring by most, they do not care, which is why they want all those give-aways the commie-socialist demonrats espouse.

    2. Profit vs profit margin…such a foreign concept to so many.

      The government wants it this way. When something goes wrong because people don’t read or understand what they’re signing, the government can step in and say, “We’ll fix it for you.”

      Oh yes, more government, please. We have a country of economically illiterate citizens.

    3. Deficit and debt are interchangeable terms. Let’s conflate them to the ignorance of the American voter and to the benefit of the gravy train and ever bigger government. Let’s do the same with government spending and investment, tax and savings, tax cut and how we “pay for it”, and so on and so on..

  2. The thing about deficits is that the larger the national debt gets, the less we’re able to afford deficits. Already the interest on the national debt is the fourth-largest budget item.

  3. Sorry, but Larry Kudlow DID dismiss our crippling debt, he just did it in 5 minutes instead of a 280 character Tweet, so to suggest that the Tweet was false is doing a disservice to us.

    For Kudlow to claim A) it’s only a fraction of our GDP (it SOO isn’t), B) that the Trump administration is pursuing “limited Government” and C) that Tariffs imposed on China (that WE will pay for) will lower the deficit without ONE spending cut is laughable, ignorant and preposterous.

    Kudlow: “One is economic growth….and limited government, and we are pursuing both.”

    Really Larry? Because the Trump administration has BALLOONED the deficit and is projected to add another +$800,000,000,000 THIS YEAR ALONE. In addition, Trump’s 2019 Budget proposal was the BIGGEST Budget proposal in US HISTORY ($4.75 TRILLION), and the 2020 proposal? 5% LARGER than the 2019 Budget proposal? Does that sound like someone trying to CUT the deficit? No, you’re cutting NOTHING. In fact, you sound like a broken record of past schmucks promising the same thing. – Just give us time, they’d say. We’re ‘spending’ NOW to ‘cut’ LATER. Sure Larry.

    I hate to burst the trumpster’s bubble but Trump is now OUTSPENDING Obama.

    http://www.crfb.org/blogs/deficit-has-never-been-high-when-economy-was-strong

    1. Exactly right. I was thinking the same thing when I read this article. To have these levels of deficit and debt during a strong economy is unconscionable. It is much harder to reduce debt in a weak economy.
      When the economy slows (and it will) and/or interest rates rise (as they should), we will be in serious trouble.

  4. Sorry, but Larry Kudlow DID dismiss our crippling debt, he just did it in 5 minutes instead of a 280 character Tweet, so to suggest that the Tweet was false is doing a disservice to us.

    For Kudlow to claim A) it’s only a fraction of our GDP (it SOO isn’t), B) that the Trump administration is pursuing “limited Government” and C) that Tariffs imposed on China (that WE will pay for) will lower the deficit without ONE spending cut is laughable, ignorant and preposterous.

    Kudlow: “One is economic growth….and limited government, and we are pursuing both.”

    Really Larry? Because the Trump administration has BALLOONED the deficit and is projected to add another +$800,000,000,000 THIS YEAR ALONE. In addition, Trump’s 2019 Budget proposal was the BIGGEST Budget proposal in US HISTORY ($4.75 TRILLION), and the 2020 proposal? 5% LARGER than the 2019 Budget proposal? Does that sound like someone trying to CUT the deficit? No, you’re cutting NOTHING. In fact, you sound like a broken record of past schmucks promising the same thing. – Just give us time, they’d say. We’re ‘spending’ NOW to ‘cut’ LATER. Sure Larry.

    I hate to burst the trumpster’s bubble but Trump is now OUTSPENDING Obama.

    http://www.crfb.org/blogs/deficit-has-never-been-high-when-economy-was-strong

  5. Stupid leftist “journalists” were completely quiet when Obama raised the national debt by almost 10 trillion dollars!!! What a complete disaster he was for this country!

  6. The thing about deficits is that the larger the national debt gets, the less we’re able to afford deficits. Already the interest on the national debt is the fourth-largest budget item.

  7. because there’s a HUGE difference between budget deficits and the national debt.

    A sad majority of Americans do not understand that in the slightest. (Same way they don’t understand what insurance is or how it works.)

    1. and, because it’s all considered boring by most, they do not care, which is why they want all those give-aways the commie-socialist demonrats espouse.

    2. Profit vs profit margin…such a foreign concept to so many.

      The government wants it this way. When something goes wrong because people don’t read or understand what they’re signing, the government can step in and say, “We’ll fix it for you.”

      Oh yes, more government, please. We have a country of economically illiterate citizens.

    3. Deficit and debt are interchangeable terms. Let’s conflate them to the ignorance of the American voter and to the benefit of the gravy train and ever bigger government. Let’s do the same with government spending and investment, tax and savings, tax cut and how we “pay for it”, and so on and so on..

  8. “In simple terms, a budget deficit is the difference between what the federal government spends (called outlays) and what it takes in (called revenue or receipts). The national debt, also known as the public debt, is the result of the federal government borrowing money to cover years and years of budget deficits.”

  9. Stupid leftist “journalists” were completely quiet when Obama raised the national debt by almost 10 trillion dollars!!! What a complete disaster he was for this country!

  10. “In simple terms, a budget deficit is the difference between what the federal government spends (called outlays) and what it takes in (called revenue or receipts). The national debt, also known as the public debt, is the result of the federal government borrowing money to cover years and years of budget deficits.”

Comments are closed.