Larry Kudlow insists ‘Trump Effect’ has America back on top as world’s hottest country — but here’s the big brutal truth

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A recent segment from economist and TV host Larry Kudlow praised what he called "The Trump Effect", a mix of tax cuts, market optimism and a blue-collar boom.It sounds exciting but Kudlow has also previously been singled out by decision scientists as a "consistently wrong" pundit[1], so what's the truth?Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howI'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast)Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAPKudlow’s look at revised government data that showed U.S. GDP growing at 3.8% during the second quarter of Trump’s presidency. That was a big swing from the -0.6% drop in the quarter before. To Kudlow, that looked like proof that Trump’s tax bill was already working.The bill let businesses write off the cost of new machines and computers right away instead of spreading it out over years. Kudlow argues that this was why companies suddenly spent more—business investment jumped 8.5%.Kudlow also highlights to a 16% rise in new businesses starting up, a stat he borrowed from the St. Louis Federal Reserve. And he waved at the stock market as more proof: since early April, the S&P 500 was up 32% and the Nasdaq was up 46%.Put together, Kudlow paints a picture of an America bursting with confidence — companies buying, investors piling in, and entrepreneurs hanging out new signs. In his words, America is “the hottest country in the world.”Several of Kudlow's claims invite closer scrutiny.The "big beautiful bill" and its tax credits weren't actually signed until after Q2 closed in July. That means businesses would have needed crystal balls to know exactly what was coming and start spending accordingly. It's like crediting your morning coffee for making you productive yesterday—the sequence just doesn't work.Next, when Kudlow talks about inflation, he points to something called the GDP deflator sitting at just 2.1%. But here's the thing: that's not what you feel at the grocery store. Most economists prefer looking at the Consumer Price Index (CPI) or Personal Consumption Expenditures (PCE) because those actually track what families spend.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,643.70 +38.98 (+0.59%)Dow 3046,247.29 +299.97 (+0.65%)Nasdaq22,484.07 +99.37 (+0.44%)Russell 20002,434.32 +23.28 (+0.97%)VIX15.29 -1.45 (-8.66%)Gold3,809.00 +37.90 (+1.01%)PortfolioSign in to access your portfolioSign inTop gainersCRNX Crinetics Pharmaceuticals, Inc. 45.91 +10.02 (+27.92%)QMMM QMMM Holdings Limited 119.40 +19.40 (+19.40%)EA Electronic Arts Inc. 193.35 +25.03 (+14.87%)SRRK Scholar Rock Holding Corporation 38.75 +4.26 (+12.35%)PPTA Perpetua Resources Corp. 21.16 +2.16 (+11.37%)Top losersCNXC Concentrix Corporation 47.66 -7.33 (-13.33%)MP MP Materials Corp. 68.63 -8.50 (-11.02%)KC Kingsoft Cloud Holdings Limited 15.64 -1.83 (-10.48%)IREN IREN Limited 41.86 -4.43 (-9.57%)OKLO Oklo Inc. 110.53 -8.60 (-7.22%)Most activeINTC Intel Corporation 35.50 +1.51 (+4.44%)OPEN Opendoor Technologies Inc. 8.81 -0.28 (-3.08%)SNAP Snap Inc. 8.27 -0.06 (-0.72%)NVDA NVIDIA Corporation 178.19 +0.50 (+0.28%)F Ford Motor Company 12.01 +0.39 (+3.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersFWONK Formula One Group 104.93 +0.97 (+0.93%)BTC-USD Bitcoin USD 109,429.19 -176.98 (-0.16%)AMKR Amkor Technology, Inc. 29.03 -0.14 (-0.46%)XRP-USD XRP USD 2.79 -0.01 (-0.33%)PPL PPL Corporation 36.72 +0.56 (+1.55%)Top economic events