From Stephen Moore <[email protected]>
Subject Unleash Prosperity Hotline #1277
Date June 3, 2025 2:02 PM
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Unleash Prosperity Hotline
Issue #1277
06/03/2025
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1) Growth Again

After a brutal couple of months at the start of the year, due to the Trump tariff turmoil, the American economy is humming right now. The Atlanta Fed's latest estimate of the GDP growth over the first two months of the 2nd quarter is now a healthy 4.6%.

The latest tally of the first-quarter GDP has been revised upward to -0.2.

So much for the Trump recession.

Investment has flipped from negative to positive and consumers are spending again. Imports have fallen as well. Inflation is running just a tad over the Fed's 2% target. Consumer confidence is up to a four year high.

It’s true that this is just a couple months of data, and things could turn south with more tariff wars. But it’s noteworthy that the economic "experts" and the media were all doom and gloom six weeks ago. Note that the growth this quarter has surpassed the expectations of all the blue-chip forecasts.

Oh, ye of little faith.
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2) Trump's Regulators Declare War on Coal

In one of the most convoluted lawsuits of all time, a cabal of state attorney generals and the Federal Trade Commission, under the incompetent leadership of chair Andrew Ferguson, are now accusing financial firms Blackrock, State Street and Vanguard of monopolistic behavior.

The complaint asserts that these firms bought coal stocks and then helped impose radical environmental restrictions on the companies they partially own, so that coal output would fall and the price of coal would rise. The lawsuit alleges that this strategy generated "supra-competitive profits" for those investors.

If your head is spinning around from this loopy conspiracy theory - it should be. If it were true, then these asset managers must be capable of pulling off the equivalent of a triple-bank shot in billiards. They allegedly invested in coal companies, then partnered with environmental groups to destroy them.

The Vanguards of the world didn't need to conspire to restrict coal production: that's what Democrats like Joe Biden and the environmental groups, including the Sierra Club, have been doing for years.

Over the past 15 years, 63 major coal companies have closed their mining operations. So just where exactly are these "supra-profits" that the FTC and the state lawyers are asserting? Coal production has been dropping for two decades.
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Maybe this isn't taught in the top law schools, but money management firms with trillions of dollars of assets like BlackRock, State Street and Vanguard don't invest in companies and then try to steer them into bankruptcy. That's a money-LOSING proposition every time - except in Mel Brooks' famous Broadway show, The Producers, in which two scamsters conspire to make a show that would intentionally flop. That was a make-believe COMEDY.

This lawsuit is too, but no one is laughing.

Trump says he wants to bring BACK King Coal, but his regulators are trying to kill the industry.
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3) Republicans Can SURELY Do Better than This!

Yes, of course, the Trump tax cut MUST be made permanent, but there must be some fiscal spending discipline.

Senators Ron Johnson and Rand Paul stand nearly alone in taking on the budget behemoth, that will grow from $7 to $10 trillion over 10 years (even under the GOP budget).
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Senator Johnson sent this disheartening chart to us yesterday:

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4) Democrats Are Losing the Middle Class

For many years Democrats advertised themselves as the party of the working class. But thanks to their embrace of tax and spend economic policies, radical race and gender theories, and their devotion to anti-jobs climate change initiatives, that is not how voters see them anymore. Many millions of middle class Americans have quit the Democratic Party as revealed by - of all people - CNN.
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5) The Myth of the European "Union"

One reason America has become the economic superpower is that the 50 states comprise one giant free trade zone.

The Europeans wanted to emulate that model with the creation of the EU, but it hasn’t worked. Here is a stunning fact from the Wall Street Journal's Joe Sternberg:

The International Monetary Fund calculates that Europe's complex economic regulations impose the same costs as would a 44% tariff on goods traded between EU countries. For services, the costs of complying with different national rules are equivalent to a 110% tariff. By comparison, the regulatory costs associated with trading manufactured goods across state lines within the U.S. amount to a 15% tariff.
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Those are the INTERNAL barriers to trade between EU member countries, which is nothing like the free trade zone it purports to be. And of course, American businesses face all of those same country-level regulatory barriers when they do business in Europe, PLUS another huge thicket of red tape at the EU level.

When it comes to European protectionism, it's the regulations, more so than the tariffs that are causing sclerosis. The Brits were smart to get out while the gettin's good.
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6) They Finally Agree on Something!

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