Economy

Why Trump Chose CNBC's Kudlow to Replace Cohn as Economic Adviser

posted by Bil Lako - 3.15.18

Larry Kudlow is in as Director of the National Economic Council after Gary Cohn’s resignation. The outgoing Director was a huge advocate for tax reform and has been credited, to some degree, with getting that job done late last year.

Larry Kudlow is no stranger to politics. After getting an early start by campaigning for a Democrat—yes, a Democrat—Joseph Duffey along with the likes of Bill Clinton in 1970, Larry’s economic education kicked in winning him over to conservative causes. His work as associate director for economics and planning at the Office of Management and Budget in the early 1980s under the Reagan administration seemed to signal his official change of political persuasion to conservative Republican.

In recent years, Kudlow has been an advocate for conservative causes like lower taxes and supply-side economics. He is also a staunch advocate for fair dealing and outspoken against corporate corruption, making this clear in his criticism of Enron and WorldCom management scandals.

In contrasting the two, Larry Kudlow is no stranger to government or politics while Cohn had a successful career in the financial industry before accepting the job in the Trump administration. Cohn’s demeanor, that of a Wall Street trader, is reportedly a bit harsher and strategic, while Kudlow is revered by peers for his principals and ability to get along even while disagreeing. Both Kudlow and Cohn have openly disagreed with Donald Trump’s tariffs. It’s hard to find an economist who likes a tariff. However, his open disagreement shows Kudlow is not a “Yes Man,” even though he is still willing to take the position.

Kudlow, a true conservative economist, should fit well in Donald Trump’s administration.

William G. Lako, Jr., CFP®, is a principal at Henssler Financial, a financial advisory and wealth management firm that has been delivering comprehensive financial solutions to its individual, corporate, and institutional clients for 30 years. Mr. Lako is a Certified Financial Planner™ professional.