Larry Kudlow: The Success of Trump’s ‘Drill, Baby, Drill’ Strategy

Today marked a significant release of economic data as the government prepares to move forward following the recent shutdown. A key takeaway from the jobs report for October and November is the ongoing transformation of the economy, signaling the end of Joe Biden’s expansive government policies. In contrast, President Trump’s approach to re-privatization is gaining momentum.

This year, federal employment has decreased by approximately 270,000 positions, while private sector jobs have surged by nearly 700,000. In line with Trump’s policies, native-born employment has risen by around 2.7 million, whereas jobs for foreign-born workers have declined by almost a million.

Overall, the report was decent, though not extraordinary. Unemployment rates have increased as federal employees seek new opportunities. However, a positive note is that wages for middle-class workers have risen by about 5% year-on-year, which is roughly double the current inflation rate.

Meanwhile, oil prices are experiencing a steady decline, dropping almost daily. West Texas Crude has fallen from $80 at the start of the year to around $55 currently. The oil fields are responding to market incentives, producing an impressive 13.8 million barrels per day. U.S. production is now surpassing domestic demand, leading to a decrease in prices.

At the pump, gasoline prices have dipped below $3 a gallon nationwide, with Oklahoma boasting the lowest prices at $2.30. In contrast, California is seeing prices as high as $4.35, largely due to stringent climate regulations. The broader implication of falling oil prices is significant; they influence nearly every aspect of the economy, including food and grocery costs. This dramatic drop in oil prices is expected to lower inflation indexes in the coming months, potentially paving the way for reduced interest rates.

Trump has consistently maintained an energy-centric perspective on inflation. His deregulation efforts, coupled with crucial tax incentives for production and investment, are yielding positive results. With 5% wage growth reported today, contrasted with a projected inflation rate of 2% or less, workers are experiencing a real wage increase of approximately 3 percentage points—more than many had anticipated.

Today marked a significant release of economic data as the government prepares to move forward following the recent shutdown. A key takeaway from the jobs report for October and November is the ongoing transformation of the economy, signaling the end of Joe Biden’s expansive government policies. In contrast, President Trump’s approach to re-privatization is gaining momentum.

This year, federal employment has decreased by approximately 270,000 positions, while private sector jobs have surged by nearly 700,000. In line with Trump’s policies, native-born employment has risen by around 2.7 million, whereas jobs for foreign-born workers have declined by almost a million.

Overall, the report was decent, though not extraordinary. Unemployment rates have increased as federal employees seek new opportunities. However, a positive note is that wages for middle-class workers have risen by about 5% year-on-year, which is roughly double the current inflation rate.

Meanwhile, oil prices are experiencing a steady decline, dropping almost daily. West Texas Crude has fallen from $80 at the start of the year to around $55 currently. The oil fields are responding to market incentives, producing an impressive 13.8 million barrels per day. U.S. production is now surpassing domestic demand, leading to a decrease in prices.

At the pump, gasoline prices have dipped below $3 a gallon nationwide, with Oklahoma boasting the lowest prices at $2.30. In contrast, California is seeing prices as high as $4.35, largely due to stringent climate regulations. The broader implication of falling oil prices is significant; they influence nearly every aspect of the economy, including food and grocery costs. This dramatic drop in oil prices is expected to lower inflation indexes in the coming months, potentially paving the way for reduced interest rates.

Trump has consistently maintained an energy-centric perspective on inflation. His deregulation efforts, coupled with crucial tax incentives for production and investment, are yielding positive results. With 5% wage growth reported today, contrasted with a projected inflation rate of 2% or less, workers are experiencing a real wage increase of approximately 3 percentage points—more than many had anticipated.