Former National Economic Council director Larry Kudlow is urging Republicans to make affordability and economic growth central themes heading into the midterm cycle, citing polling that shows a significant GOP advantage when the party frames the choice as capitalism versus big-government socialism.

Pollster John McLaughlin, surveying 1,000 likely voters, finds that when Republican candidates explicitly champion free-market capitalism against Democratic policies characterized as big-government socialism, the GOP shifts from a near tie on the generic Congressional ballot — a standard polling measure that asks voters which party they would support for Congress without naming specific candidates — to a 49 percent to 36 percent advantage. Independent and moderate voters exhibit the same shift when the framing centers on capitalism versus socialism.

Kudlow argues this dynamic offers Republicans a clear lesson, while expressing regret that the party is unlikely to advance a pro-growth, pro-affordability budget package combining tax and spending cuts. He characterizes that as a missed opportunity but suggests that effective messaging over the summer represents a viable alternative. He also points to the upcoming midterm convention in Dallas in early September as a key moment.

On the economic front, Kudlow points to what he describes as a booming environment. Manufacturing activity is expanding, the artificial intelligence boom is reshaping the American economy, and construction is rising at a pace not seen in years, he notes. Consumers continue to spend and businesses are investing, he adds.

Citing recent data, Kudlow highlights that non-defense capital goods excluding aircraft — what Wall Street refers to as capex, a closely watched proxy for business investment tracked in the Census Bureau's durable goods reports — posted a 10.5 percent increase in orders over the last three months at an annual rate. Shipments rose 11.5 percent, and backlogs increased by more than 9 percent. He states these figures represent levels unmatched in decades.

The stock market is also reaching new records on a daily basis, including the S&P. The Dow closed at 54,085, with nearly 150 million Americans invested in the market. Kudlow notes that what he refers to as Trump accounts are being established at a record pace.

Looking back at policy, Kudlow credits last year's One, Big, Beautiful Bill — which included tax cuts and spending reductions — as delivering results today. He calls on the Republican Party to actively communicate these economic gains, emphasizing growth and affordability as central themes heading into the midterm cycle.