Americans aren't really 'clued in' to this: Liz Peek

Key Concepts

• Economic Recovery: Focus on declining inflation, rising incomes, and overall economic growth under the current administration.
• “Big, Beautiful Bill”: Reference to recent legislation aimed at tax cuts and economic benefits.
• Trump’s Republican Party: The shift in the Republican party towards a more populist, “America First” ideology under Donald Trump’s influence.
• Midterm Election Strategy: The discussion centers on how the presented economic message can be leveraged for success in the upcoming midterm elections.
• Patriotism Divide: The perceived difference in patriotic sentiment between Republicans and Democrats.
• Growth-Oriented Policies: Emphasis on economic growth as a solution to fiscal problems, echoing strategies of past presidents like Kennedy and Reagan.
• Voter ID: A specific policy proposal gaining traction within the Republican party.

The State of the Economy and its Impact on the Midterms

The discussion revolves around an assessment of a recent speech delivered by former President Trump, focusing on its potential impact on the upcoming midterm elections. The central theme is a narrative of economic recovery, with claims of plummeting inflation and rising incomes. Specifically, core inflation is stated to have been driven down to the lowest level in over 5 years, reaching 1.7% in the last three months of 2025. Steve Moore corroborated this figure, emphasizing its accuracy.

The speakers analyze whether the speech successfully “made the sale” for the midterms, suggesting it provided a clear framework for the Republican party to address key issues like the economy, immigration, patriotism, and law and order. The core message is to embrace and amplify the “America First” agenda.

The “Big, Beautiful Bill” and Tax Policy

Liz Peek highlights the perceived failure of Republicans to adequately promote the benefits of the “Big, Beautiful Bill,” particularly its tax cuts. She contrasts this with Kamala Harris’s campaign platform, which focused on raising taxes. Peek argues that Americans haven’t fully grasped the positive implications of the bill and credits Trump with effectively communicating these benefits in his speech. She notes the bill represents “common sense, pragmatic Republican leadership” and provides a useful “template” for candidates.

Shifting Political Landscape and Party Identity

A significant point raised by both panelists is the transformation of the Republican party under Trump’s leadership. Larry Kudlow states, “This isn’t your grandfather’s Republican party. This is Mr. Trump’s Republican party.” Steve Moore extends this observation, arguing that the Democratic party has also undergone a radical shift to the left, citing figures like AOC and Democratic governors like Gavin Newsom as examples. He questions whether voters want America to resemble states governed by these progressive leaders.

This shift is further illustrated by the discussion of patriotism, with Moore asserting a clear “patriotism divide” between the two parties, characterizing Republicans as staunchly patriotic while questioning the same commitment from many Democrats.

Economic Data and Growth Strategies

Steve Moore cites data from Kevin Hassett indicating a substantial increase in median after-inflation and after-tax income – nearly $4,000 for median income families in 13 months – due to tax cuts. He also points to positive trends like mortgage rates falling below 6%.

The conversation emphasizes the importance of economic growth as a solution to fiscal challenges. Moore references the Committee to Unleash’s research, suggesting that sustained growth of 3.5% annually could resolve the budget debt problem within two to three decades. Trump’s proposed strategy of using tariffs to fund income tax cuts is presented as a pro-growth measure. This echoes the economic philosophies of past presidents like John F. Kennedy and Ronald Reagan, who also advocated for growing the economy to address fiscal issues.

Voter ID and Common Sense Issues

Liz Peek advocates for Republicans to prioritize voter ID legislation, suggesting a single-item bill focused solely on this issue. She argues that it’s a policy with broad public support and challenges Democrats to articulate a valid objection. She believes Trump has successfully captured “all the 80-20 issues” – those with widespread appeal – and positioned the Republican party favorably on them.

Optimism and Leadership

Larry Kudlow emphasizes the optimistic tone of Trump’s speech, contrasting it with previous narratives of economic hardship under the Biden administration. He highlights the importance of optimism in driving economic recovery and draws parallels to the optimistic leadership styles of JFK and Reagan. Kudlow notes Trump’s willingness to engage with political opponents, citing his handshake with John Roberts as a sign of a positive mood.

Logical Connections

The discussion flows logically from an assessment of Trump’s speech to an analysis of its potential impact on the midterms. The conversation then delves into the underlying economic data supporting the optimistic narrative, the shifting political landscape, and specific policy proposals. The emphasis on growth-oriented strategies and common-sense issues serves as a unifying theme throughout the discussion.

Notable Quotes

• Larry Kudlow: “This isn’t your grandfather’s Republican party. This is Mr. Trump’s Republican party.”
• Liz Peek: “President Trump has grabbed all the 80-20 issues, and he’s on the right side of them.”
• Steve Moore: “It reminds me sort of, of JFK, Reagan optimism.”

Technical Terms

• Core Inflation: Inflation that excludes volatile food and energy prices, providing a more stable measure of underlying price pressures.
• After-Inflation Income: Income adjusted to account for the effects of inflation, reflecting the real purchasing power of earnings.
• After-Tax Income: Income remaining after the deduction of taxes, representing disposable income.
• Tariffs: Taxes imposed on imported goods, often used to protect domestic industries.
• 80-20 Issues: Policies or topics that appeal to a broad majority (80%) of the population, even if they don't dominate political discourse.

Conclusion

The discussion paints a picture of a potentially advantageous situation for Republicans heading into the midterm elections. The core message centers on a narrative of economic recovery, driven by tax cuts and a focus on growth. Trump is presented as a unifying force within the Republican party, successfully articulating a clear and optimistic vision for the future. The panelists suggest that by embracing this message and focusing on common-sense issues like voter ID, Republicans can defy historical trends and achieve success in the midterms. The emphasis on economic growth, echoing the strategies of past presidents, is presented as a key element of this potential turnaround.