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Unleash Prosperity Hotline – Weekend Edition
Issue #1159
12/06/2024 – 12/08/2024
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Join UP’s Steve Moore, Tim Doescher, and other special guests on Thursday, December 12 at 3:00 PM EST for our popular webinar series covering the Trump transition. We will cover the ever-changing landscape here in DC, other timely developments (there are MANY) since Election Day, and always have a little fun. To RSVP, click the link below. See you then!
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1) The Laffer Curve Travels to Argentina

Did you think Unleash Prosperity was only influential in the USA?

Look who's hanging out with Javier Milei, president of Argentina:
 


Yes, that's our Unleash Prosperity co-founder, Arthur Laffer, in Buenos Aires helping advise Milei on how to steer Argentina away from its road to serfdom. 
 

Since Milei and Laffer have become best buddies, it's no wonder Argentina's stock market has been a top global performer over the past 12 months. 

Slash tax rates. Slash the bureaucracy. Slash regulations. It's so simple. 

We like this cover from the current issue of The Economist
 
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2) Will Trumpism Go Global?

All at once, leftist regimes around the world are going bankrupt, or are so corrupt, they have lost the support of the governed:

  • In Britain, the Conservative Party grew government, lost its moorings, and was chased from office only to be replaced by an economically incompetent Labour Party that came into office earlier this year, raised taxes on everything and everyone, and plunged the economy into recession
  • Germany’s hyper-obsession with climate change since the days of Merkel have almost deindustrialized the nation - which the Wall Street Journal describes as effectively leaderless. 
  • The French just ousted their prime minister for the first time in decades, "thrusting the country into chaos," as CNN put it. President Macron's days are numbered. 
  • In South Korea, the government has invoked martial law and now the citizens are demanding the president's impeachment.  
  • In Japan, the ruling party was voted out in October for the first time since 1955.
  • Mexico and Canada have installed leftist boobs who are losing support by the day. 
  • Russian companies are facing crippling debt burdens that could lead to a wave of mass corporate bankruptcies. Moscow is running out of money to finance the war in Ukraine. 

We predict over the next 18 months Putin, Macron, Trudeau, Starmer, and the rest of this confederacy of dunces will be gone - replaced with Trump and Milei free market populists.

It's time for them to go!
 

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3) Jerome Begone

Our spies tell us that Trump really wants to replace Fed Chairman Jerome Powell right away. 
 
Let's look at Powell's performance objectively.  Our UP monetary/economic advisory board member, Louis Woodhill, has crunched the numbers. 

Remember, the primary job of the Fed is to keep the dollar stable in value.  Since January 2012, the Fed has defined “stable in value” as 2.00% year-over-year PCE inflation. 
 
Woodhill finds, "Powell was sworn in as Fed Chairman on 2/3/18. He has been Chairman for 69 months, for which we have 12-month PCE inflation data. The Fed has come within +/- 10% of its 2.00% year-over-year PCE target in 2 of those 69 months."
 
So, if this were baseball, Powell and his more than 300 PhD economists would be batting .029.  A blind squirrel might have had a better record. 
 
The law says that the president can replace the Fed members for "cause."  Wouldn't the chronic inability to hit his own monetary policy target qualify?
 

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4) Jeff Bezos Must Be Reading the HOTLINE!

The founder of Amazon has embraced key elements of the growth agenda. Speaking at the DealBook Summit, the owner of the Washington Post gave his personal editorial commentary on Donald Trump's return to power.
 


Bezos said of Trump: "I'm very hopeful – he seems to have a lot of energy around reducing regulation. And my point of view is, if I can help him do that, I'm going to help him, because we do have too much regulation in this country."

He then sounded like a born-again supply-sider when he discussed fiscal issues:

"If you look at the national debt and how gigantic it is as a portion of GDP, these are real long-term problems, and the way we get out of them is by outgrowing them. You're going to solve the problem of the national debt by making it a smaller percentage of GDP. Not by shrinking the national debt but by growing the GDP. You have to grow the denominator, and that means you have to grow GDP at, you know, 3, 4, or 5 percent a year."

"If you can do that, this is a very manageable problem. So we need a growth orientation in this country. The most important thing is a growth mindset. And we are the luckiest country in the world. We have all these natural resources, including energy independence. We have the best risk capital system in the world..."

We couldn’t have said it better ourselves. Actually, we have said all this.
 
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5) And the Brits Are Getting the Message Too
Luke Johnson, one of Britain's best known entrepreneurs, sounds a lot like Bezos in his succinct statement on what Britain needs to do to fix its economy.

Testifying to Parliament against a new Labour government bill to dramatically expand government intervention in labor markets, he succinctly diagnosed the problems tearing Britain and tore the idea apart:

"If you crush the private sector you crush jobs.  All the research shows that the single most important ingredient for a happy society are jobs. Without jobs you don't have civilization."  

Labour's bill would dramatically boost trade union power and by its own admission, would cost the economy up to $6.5 billion a year.  

"Some of my companies may not survive next year," Johnson warned.  As for smaller companies he warned they also could under:  "The idea that companies that can barely afford any form of HR could stomach a big new bill of 150 pages in 28 measures - they won't even have time to read it,"

Labour remains committed to its anti-jobs crusade, but the public appears to be noticing.  Prime Minister Keir Starmer's approval rating is down to 22%, and the NowCast group (tracks the popularity of political parties) finds that Labour would now lose power if there were another election.
 
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6) Money In, Money Out
 

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