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The Daily Signal

Victor Davis Hanson: Energy, Tax Cuts, and Deregulation Could Supercharge 2026’s Economy

The Daily Signal

The Daily Signal

Government, Daily News, News, Politics

4.61.2K Ratings

🗓️ 7 January 2026

⏱️ 6 minutes

🧾️ Download transcript

Summary

Economic booms are usually defined by  “greater productivity,” increased foreign investment, “reasonable” interest rates, “energy production,” and “plentiful deregulation and tax cuts.” But will any of this happen in 2026? Hanson predicts we’ll “see an economic bonanza” in 2026 as “there's going to be more oil,”  “ new technologies,” and “all sorts of tax cuts” and “more deregulation than we've ever seen” in the Big Beautiful Bill on today’s episode of “Victor Davis Hanson: In a Few Words.”  “ Add it all up: We've had an unexpectedly—unexpectedly, unexpectedly—good third quarter. I imagine the fourth quarter might be just as good if it were not for the government shutdown—the longest in history—that occurred in the fourth quarter, but we'll see.  But more importantly: more foreign investment, more tax cuts, more deregulation, more energy development, lower interest, and I think you're gonna see an economic bonanza.” 00:00 Introduction: What Makes an Economy Boom? 00:34 Unexpected Economic Trends 01:18 Analyzing Trump’s Third Quarter Growth 02:56 Future Economic Predictions for 2026 04:43 Conclusion: Preparing for the Unexpected 👉 The Daily Signal cannot continue to tell stories, like this one, without the support of our viewers: http://dailysignal.com/donate 👉Don’t miss out on Victor’s latest short videos by subscribing to The Daily Signal today. You’ll be notified every time a new piece of content drops: ⁠https://www.youtube.com/dailysignal?sub_confirmation=1⁠  Also on Spotify: https://megaphone.link/THEDAILYSIGNAL9753340027  👉Want more VDH? Watch Victor’s weekly, hour-long podcast, “Victor Davis Hanson: In His Own Words,” now! Subscribe to his YouTube channel, and enable notifications:  https://www.youtube.com/@victordavishanson7273?sub_confirmation=1 👉More exclusive content is available on Victor’s website: https://victorhanson.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This episode is brought to you by Shopify. With Shopify, 2026 is the year you make it happen. It gives you the tools to build your dream store, online and in person. Plus with marketing built in, it'll help you reach exactly who you need to. Join the millions who've already made the leap, like Jim Shark and all birds, and ring in the new year with Shopify.

0:23.3

Sign up for your £1 per month trial at Shopify.com.uk.

0:28.2

What makes an economy boom? The economists will usually say it booms if there is greater productivity, if there's more foreign investment,

0:39.8

if interest rates are reasonable and down a little bit, if there is plentiful deregulation,

0:45.9

tax cuts, and energy production. Let's ask ourselves if any of that might happen in 2026.

1:04.0

Thank you. might happen in 2026. Hello, this is Victor Davis Hanson for the Daily Signal.

1:08.4

If you notice this use of the adverb unexpectedly, it's all over the Wall Street

1:14.1

Journal, it's all over the financial sites, it's all over the popular culture and the media culture.

1:20.5

It's never used in association with Democrats. Usually they tell us things are going rosy,

1:27.1

and then when they're not rosy, they just leave it blank.

1:29.5

But with Trump, we were told, remember repeatedly, that the trade war, so-called trade war, would sink the economy that terrorists would ruin prosperity.

1:41.6

We would be in a recession by now.

1:43.8

The stock market was going to collapse,

1:45.8

that interest rates would have to go again and again.

1:48.5

And now all of a sudden, in the last few days,

1:51.6

we see unexpectedly, third quarter growth of the economy

1:57.1

was 4.3.

2:00.4

That's a booming economy in the third quarter. That was unexpectedly a new

2:05.7

development. We were told inflation would probably be hyperinflation because of the trade.

2:11.6

And what do we find out? In the third quarter, it was about 2.7, and some months it was three, some months,

2:23.1

2.4, but 2.7, 2.8. That was pretty good, especially given Joe Biden's average over

2:30.2

four years of 5.2 every year. And then there was the unemployment we were told.

...

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