One thing is for sure: The new Republican Congress is going to make it a lot harder — in fact, nearly or totally impossible — for President Biden and Senator Schumer and their radical progressive agenda to keep spending money at the same pace as they have in the last couple of years.  

There will be less spending and lower inflation. There may also be a lot of other pro-growth elements — I certainly hope so — but lowering spending and inflation is what the GOP Congress was elected to do, and it looks like the members are following through. 

I think that’s the biggest, most important, and most significant outcome of the conservative reforms put into place during the GOP speakership voting that finally ended early Saturday morning with Representative Kevin McCarthy’s victory. 

Here is Mr. McCarthy presumably unifying the House GOP at the early morning swearing in: “Our nation is worth fighting for. Our rights are worth fighting for. Our dreams are worth fighting for. Our future is worth fighting for. Therefore, with love for this country, and charity for each other, let us now take our oath.”

It was a Lincolnesque “with malice toward none and charity toward all” speech. Which sets a very good tone. I presume more of the rule changes to be voted on tonight will pass. For my part, I really favor the principle of a balanced budget.  

I love the idea of restoring regular order for budget and non-budget items. Restoring “Paygo” caps, or what is now called “Cutgo,” is a terrific idea. Reinstating the three-fifths supermajority to approve any increase in tax rates is another superb idea.  

Repealing the 87,000 new IRS agents is a good start as well, as is reinvigorated judicial and regulatory oversight, including a hopefully deep dive look at the abuses of the FBI intel agencies and the justice department. All of this is good. It’s excellent. It’s going to block a lot of big-government socialism bads and it may well set up some long-term pro-growth, pro-prosperity goods. 

Did you know that between the end of World War II and the year 2000, the American economy grew at roughly 3.5 percent after inflation, per year? That’s right, 3.5 percent growth for more than 50 years.  

Now, did you know that between the years 2000 and 2022, that growth rate has crashed to only 1.7 percent per year? You know what the difference is between 3.5 percent and 1.7 percent in the long run? Prosperity. Happiness. Peace through strength. Blue-collar booms. Unrivaled world leadership. Stronger families. Better schools. I could go on and on, but you get the picture.  

That’s why our colleague Art Laffer and the regulars on my show, including Steve Forbes and Kevin Hasett and Steve Moore and many others (plus yours truly, who has devoted a career toward seeking maximum growth and prosperity), all believe that free-market capitalism is the best path to prosperity, along with the other great freedoms embodied in our Bill of Rights, our Declaration of Independence, and our Constitution.  

All of us know full well what doesn’t breed prosperity or happiness: socialism, massive central planning, unlimited government, or welfare triumphing over workfare. We know it because history proves it.  

Now, the coming-together of the Republican House, despite all the travails of the 15 speaker ballots, is not going to solve all of our problems, but it sure moves the ball in the right direction. My great hope is not only that this reconstituted and reinvigorated GOP policy agenda will stop the bad stuff, but even more that it will lay out a positive roadmap that basically says a freedom agenda unleashes American potential once again.  

A transparent, accountable Congress is a boom to all voters, Democrat and Republican and independent. Nothing is perfect, but I think the country has made a lot of good progress this past week, and hopefully there is a lot more of it coming in the weeks and months ahead.  

From Mr. Kudlow’s broadcast on Fox Business News.