The economy is in a recession that is driven by profit losses of businesses and the stock market, and tax relief must be given to provide the stimulus for recovery, said Kudlow, an economics commentator for CNBC and a contributing editor to the National Review magazine.

"The trick here is to grow the economy and let the economic growth raise the revenue for the war effort," Kudlow said during a question-and-answer session conducted primarily with students. Kudlow said that country was in recession before the terrorist attacks, and those attacks may delay the cyclical economic recovery until the second quarter of next year. "Some people think this country is on its last financial legs," he said. "That can't be further from the truth."

Kudlow appeared at Tusculum following an earlier address to the 2001 Regional Investment Forum held at the General Morgan Inn & Conference Center in Greeneville, an event sponsored in part by Tusculum College. Kudlow is chief executive officer of Kudlow & Co., LLC, and was the associate director for economics and planning during President Ronald Reagan's first term.

Kudlow's appearances at both events occurred later than first scheduled because he was among a group of economists called to a meeting with Cheney that day in Washington. Kudlow said he expected that the Cheney meeting would last about 20 minutes, but it lasted an hour and a half instead. "He wanted to know the entire story - the budget, the stock market, the economy. It was unbelievable," he said.

When asked his opinion of the vice president, Kudlow said the country is "blessed" to have someone with Cheney's experience in foreign affairs in that key position. Cheney's life goal when he was at the beginning of his political career was to be Speaker of the House of Representatives, Kudlow said. However, he became Secretary of Defense instead under President George H.W. Bush, providing leadership through Operation Desert Storm.

After Bush was defeated in 1992, Cheney returned to private life as CEO of a oil company, and then was called back into public service to be the running mate of George W. Bush, a candidate at the time not considered a likely winner, Kudlow said.

But Bush was indeed elected, and since then the nation has been abruptly drawn into war. "History and the hand of God work in strange ways," Kudlow commented.

When asked about President Bush, Kudlow described him as a personal friend, although not a close friend, and a man who is ideally suited to take on the current war and "not waver."

"President Bush is a person who has a strong spiritual transformation," he said. "He is unshakable in his beliefs. If you reread his speech of last week (Sept. 20), you can see with what great clarity he makes moral distinctions. He has a clear conscience and a deep faith in God."

Another strength of Bush that is probably underestimated is his strong management skill, Kudlow said. "It may be why some people don't take him seriously," he said. "Bush is not a guy to command the center of attention. He is willing to find good lieutenants, give them a department and let run with the ball. If they are successful, he keeps them. You have to delegate in that position, particularly now."

Kudlow did not have as much praise for Federal Reserve Chairman Alan Greenspan. Although Greenspan has been an excellent steward of the economy in his career, mistakes have been made in recent years, Kudlow said.

"He is one of the primary causes of the recession," Kudlow said of Greenspan. "He has had a terrific career as federal reserve chairman, but as I have publicly said before, he should retire." Greenspan has served four terms, which are too many, Kudlow said. A federal reserve chairman should just serve two terms. He also questioned whether the 15-hour-a-day job is suitable for a 75-year-old.

Students asked several questions about investing and what an individual consumer can do to help the economy. Kudlow said that this is an excellent time to buy stock, and to remain in the stock market for the long term. In response to the question about how individuals can help the economy, Kudlow said, "Do what you do and do it well."

"After I saw what happened to friends in New York, I asked myself how I could help," he said. "Really, I am quite powerless. Good people went to work on that Tuesday and didn't go home.

"I talked to my friends and my parish priest, and we decided that we do God's work by doing what we do and fulfilling the commitments we have made to our families and friends."

When asked about one of the economic results of the terrorist attacks, the airline bailout plan, Kudlow said he basically agrees with it, although some of his conservative friends have been critical of that stand. "We are not going to recover economically unless we get the airline system back on its feet," he said.

Asked about the government having to borrow funds, Kudlow said that borrowing in itself is not good or bad, and must be judged by the reasoning behind it. "If you run a company and you borrow some money to give yourself a fine automobile, that is a waste of funds," he said. "But if you borrow money to hire good people, buy the latest technology, or develop a marketing plan, it is a good investment.

"Right now, the private sector is in hock up to its eyeballs, and Uncle Sam has all the money," he said when asked about the use of the federal government budget surplus to fund the war against terrorism. "I would prefer the private sector receive the surplus and grow, and the federal government be in debt."

Kudlow was flown to Greeneville by Scott M. Niswonger, a regional business leader, Tusculum alumnus, and member of the college's board of trustees.