Larry Kudlow says the deficit is shrinking. It’s not.


Haters said shrinking the deficit "couldn't be done," National Economic Council Director Larry Kudlow claims. They were right.
America's growing economy is driving the deficit down, Kudlow insisted on Fox Business Network on Friday. But economists and the government itself say the opposite is true.
It's true that the U.S. economy has grown every quarter since President Trump took office, per the Bureau of Economic Analysis. Building a strong economy has been Trump's big promise, and it's a common Republican priority.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
But that growth isn't as promising as Trump claims, and it's certainly not rapid enough to stave off an expanding deficit. Debt is on track to be its highest in U.S. history thanks to Trump's deficit spending, the nonpartisan Congressional Budget Office projected Tuesday. The Republican tax plan passed in December, which was expected to add $1.4 trillion to the deficit in the next decade, didn't help either.
So yes, growth can solve a lot of problems. Just not this one.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.
-
Can the world stop Israel from starving Gaza?
Today's Big Question Total blockade on food and aid enters its third month, and Israel is accused of 'weaponising starvation'
-
The timely revival of watchmaking
Under The Radar Artisan horology is enjoying a surprising resurgence
-
Alcatraz: America's most infamous prison
The Explainer Donald Trump wants to re-open notorious 'escape-proof' jail for 'most ruthless and violent prisoners' in the US
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine