When Ideology Trumps Realism

TW: I have mentioned previously the danger of ideology over realism. One of the worst offenders in this respect is Larry Kudlow, conservative economist and CNBC host. Investors must be as politically agnostic as feasible. Kudlow and places like Fox Business who are primarily cheerleaders for the Republicans do great disservice to investors. First Kudlow refused to see any clouds emerging in his so-called "goldilocks economy" then he continues to push the same tired mantra, tax cuts, tax cuts, tax cuts.

From Kudlow via the National Review's den of inequity The Corner Blog from one year ago Dec, 2007:
"There is no recession. Despite all the doom and gloom from the economic pessimistas, the resilient U.S economy continues moving ahead...defying dire forecasts and delivering positive growth. In fact, we are about to enter the seventh consecutive year of the Bush boom...Earlier today, a doom and gloom economic forecast from Macro Economic Advisors was released predicting zero percent growth in the fourth quarter. This report is off by at least two percentage points. These guys are going to wind up with egg on their faces...Down in Washington, Democrats are stuck with a Keynesian message of economic pessimism, spending increases, and tax hikes to finance their big government proposals. Unfortunately, they still refuse to acknowledge that tax rates have a profound effect on behavior. This kind of tax and spend, big government, Walter Mondale approach may come back to haunt them at the polls next year. The GOP, on the other hand, has a positive supply-side message of limited government, lower spending, and lower tax rates... That's just one reason why—not to mention what I expect to be continuing growth in 2008— I believe the economic pendulum will soon swing in favor of the GOP. There's no recession coming. The pessimistas were wrong. It's not going to happen. At a bare minimum, we are looking at Goldilocks 2.0. (And that's a minimum). Goldilocks is alive and well. The Bush boom is alive and well. It's finishing up its sixth consecutive year with more to come. Yes, it's still the greatest story never told."
http://corner.nationalreview.com/post/?q=NmZlZjlhYTFjYTQ2YWViZmE3MmUzNWQzODE3NDhhNTQ=