A Drop In The Consumer Price Index Is A Good Thing

Larry Kudlow argues that the drop in the Consumer Price Index equals any stimulus package. And it's happening without an act of Congress:

But the plunge in consumer prices is a great thought. It is a tax cut of massive proportions. The drop in retail gas prices alone has been variously estimated at $350 billion in new consumer purchasing power. In fact, real average weekly earnings have now risen four straight months on the back of the CPI drop. Over the past year, this key measure is up nearly 3 percent.

The drop in oil and gas prices does no favors for us here in Oklahoma but those prices will rebound. They won't return to the highs of this past summer - prices should never have been that high in the first place - and they won't likely return to their current lows. For now, let's enjoy the fruits of the free market, without the meddling of government.