Kudlow: The Goldilocks Economy, The Greatest Story Never Told, Rocks on

From National Review, Kudlow’s wrap is rhapsodical:

In his brief tenure at the Fed, Bernanke has mopped up excess liquidity and reduced inflationary expectations; he has stuck to his free-market principles while targeting inflation and employment. Meanwhile, low tax rates have led to the availability of more goods and services, a growth cycle that makes the existing money supply less inflationary.

This is a supply-side model, and it’s very much in place right now: A combination of strong economic growth and newfound monetary control are working together for the betterment of investors, workers, and businesses — and even federal finances. According to Wall Street economist Michael Darda, surging tax receipts have reduced the federal deficit to only 1.4 percent of GDP, significantly below the 2.3 percent average of the last three decades.

The recessionists are wrong. The bears are wrong. The pessimists are wrong. The doom-and-gloom crowd is wrong. The Democrats who rule the roost on Capitol Hill are wrong.

We are witnessing the Bush-Bernanke boom, and it’s still the greatest story never told.

I think Don Luskin would say that inflation still looms. The Consumer Price Index report earlier this week also indicated that some inflationary caution is warranted. But it’s hard to argue with Kudlow’s central take on the state of the economy.