Stephen Moore: Working and middle class Americans are new GOP coalition as inflation rises

"Republicans are now the party of working class, middle class Americans, and that's where they should be," said Stephen Moore, author of "Trumponomics" and Senior Economic Contributor for FreedomWorks.

When asked on the "John Solomon Reports" podcast if working and middle class voters will revolt against "Bidenomics," Moore said, "I think inflation would be a big one, I really do. Because that really does shrink your paycheck. It's that simple. And also, it's the enemy of the stock market."

"I hate that liberals say, 'Oh, it's only rich people that have stocks.' No … I have stock, I’m not rich. I mean, I buy retirement benefits."

"Republicans are now the party of working class, middle class Americans, and that's where they should be. And Democrats have a big problem with those — I'm not talking about the union leaders, I'm talking about the rank and file, blue collar workers, who are — who vote socially conservative, and they also don't like this attack on America. That's the other thing, Republicans really go defend American exceptionalism because that's something most Americans believe in."

Moore also compared the 2022 elections during a weak economy to the 1994 and 2010 midterm elections.

"What happened in both those elections was that in the first case, Bill Clinton, and in the second case, Barack Obama, they overplayed their hand. They thought the American people had turned to the left, when this is still … a center-right country."

"Biden is so far to the left. My God, Barack Obama looks like Ronald Reagan. And so I think they will be punished."

He explained the significant impact of rising interest rates with inflation on the national debt.

"Let's just stop spending, stop borrowing money. Because can you imagine if we spent another $2 trillion and borrowed that money? That's going to lead to even much higher inflation, much higher interest rates…we're the largest debtor in the world. Every time the interest rates go up by one percentage point, that raises our debt by another trillion dollars."

"Imagine we had a three or four percentage point increase in interest rates — I don't think that's going to happen, but if it did — my gosh, then we're just paying all these taxes, not even for government services … We're just paying our taxes to pay the interest on the debt."