“Could it be that a lack of decisive follow-through in the global war on terrorism is the single biggest problem facing the stock market and the nation today? I believe it is…The shock therapy of decisive war will elevate the stock market by a couple-thousand points.” Make no mistake, to Kudlow “decisive follow-through” means getting tough on “Iraq, Iran, and Syria, but also to Saudi Arabia, and perhaps even Egypt”
War doesn’t increase prosperity. Some individuals benefit in the short term (manufacturing in service of war efforts, for instance) but only by trading off with other sectors. More importantly, war grows the state and extracts revenue from the economy. Kudlow thinks the market will like this. Who is this guy??