Larry Kudlow: This will bolster affordability

Key Concepts

• Walmart Thanksgiving Bundle Cost
• Inflation Rates
• Real Worker Wages
• Supply-Side Tax Cuts
• Deregulation
• Energy Dominance Policies

Walmart Thanksgiving Bundle Affordability

The discussion begins by examining the affordability of the Walmart Thanksgiving Bundle, a topic brought up by Donald Trump who claimed it is 25% lower this year compared to last year. A fact-check revealed the bundle is actually 28% lower. In 2024, the bundle costs $53 for 21 items, whereas in a previous year (implied to be 2023), it cost $38 for 15 items. This means six fewer items were included but the price was $15 cheaper.

Specific Item Pricing: Turkey

The Butterball turkey, considered the main item, is priced at $13.01 for a 13.5-pound turkey, which equates to $0.97 per pound. This is noted as the lowest price for turkey since 2019, the last time Trump was president. Target also claims their Thanksgiving bundle is the lowest price ever.

Inflation and Wage Trends

The transcript then shifts to broader economic indicators, specifically inflation rates and wage growth.

Inflation Rates

• Trump Administration: Inflation averaged 2.5% annually.
• Biden Administration: Inflation was more than twice that of the Trump years, peaking at 9%, which is described as the worst in 40 years.

Real Worker Wages

The Atlanta Fed Wage Tracker indicates a 4.1% increase in wages through August. Even with 2% inflation, this means real worker wages are rising by approximately 1.5%. In contrast, real wages fell during the Biden years.

Economic Policies and Future Outlook

The transcript touches upon the potential impact of Donald Trump's economic policies.

Supply-Side Policies

It is argued that most of Donald Trump's supply-side tax cuts, deregulation, and energy dominance policies have "barely begun to take effect."

Future Tax Refunds

Looking ahead to the next year, it is projected that as much as $200 billion in tax refunds will be distributed to the "great American middle-class," which is expected to significantly bolster affordability.

Conclusion

The main takeaway is that while the Walmart Thanksgiving Bundle's cost has decreased, contributing to a perception of affordability, the broader economic context of inflation rates and real wage growth is presented as a key factor in assessing overall affordability. The transcript suggests that Trump's economic policies, particularly supply-side measures and potential future tax refunds, are positioned to further improve affordability.