Larry Kudlow

On CNBC Wednesday night, Jack Welch, GE's CEO from that firm's salad days in the '80s and '90s, pointed out the dangers of a three-house Democratic sweep. He says it's dangerous for both the stock market and the economy. And he wants to know why the St. Paul Republicans aren't running against Harry Reid, Nancy Pelosi and Barack Obama.

"With Pelosi and Reid pushing him," said Welch, "there's no limit to the taxes (Obama will) raise." Republican Sen. Mitch McConnell of Kentucky, who joined Welch on our show, was in full agreement: "You've got a prescription for turning America into France," said the Senate minority leader, "which is exactly what the Democrats want to do if they get all three (houses)."

I agree completely. A three-house Democratic sweep is a vital issue, and John McCain and Sarah Palin should be raising it. A three-house sweep is bad for the economy and the stock market. And will someone tell me exactly why the St. Paul Republican's aren't mentioning the economy?

As we head into the closing night in St. Paul, there has so far been no reference to the weak economy. There has been no economic-recovery message and no growth message. There has been no reference to the populist revolt against high gas prices at the pump, which is the main cause of the economic slump. There has been no reference to the 70 percent of Americans who are tired of high gas prices and want to drill for more oil as at least a short-run solution over the next five to 10 years.

There is no one connecting with the economic woes of blue-collar-type working folks who are getting creamed, who worry about falling jobs and rising unemployment, and who want someone to help with the oil shock. What's going on here? Whatever happened to the prosperity part of peace and prosperity?

I made many of these same points Wednesday night on The Corner, National Review Online's political blog. To digest, Palin delivered a brilliant speech in St. Paul. So many good lines. She showed us all that she's a superb communicator -- that she's even Reagan-like. I personally loved her line about the difference between a hockey mom and a pit bull: lipstick.

With a smile and a great quip, she signaled to her opponents that she is tough, serious and purposeful -- that she has strong convictions, and she's not going to be intimidated. I asked last night if we're not witnessing the Western frontier version of Margaret Thatcher. Palin is just what the Republican Party needs. She connected really well with middle-class working folks, both in cultural and social terms, which is no small feat: Values matter, and the Democrats are in trouble here -- big-time. The more they go after Palin culturally, as they have already, the more trouble they'll fall into.

Larry Kudlow

Lawrence Kudlow is host of CNBC’s “The Kudlow Report,” which airs nightly from 7 p.m. to 8 p.m.