Reactionaries are not hurting the economy.
Weakening welfare hurts the economy. That's what he's laughing about. Welfare has always been the biggest no-brainer in economic theory. It always makes the country more than you spend. Even the wealthy.
Why, you may ask, do they hurt themselves, and help the oligarchs?
The reason is that they always do what the man on the television screen tells them.
Do you know many conservatives, for real? I'm not talking Trump-heads. I'm talking actual conservatives. There's this underlying attitude that the world is a "free" place where you work hard and earn your way to betterment. You hear it in the voices of the older generation, but also the newer generation, when they talk about things like "work ethic", or someone being "too proud to beg" when there's a disaster and family or friends try to offer help. Have you never heard anyone say "I don't want nothin for free", or tell their boss "I don't need that kinda money, just pay me ____ and I'll be happy"? I've seen and heard all those things.
One way to look at conservativism is that it's means based, where the Left is more ends based. A conservative cares more about "doing the right thing" than "making the world a better place", They see the government's place as "enforcing peace" and nothing else, so social programs seem like a giant mandated charity to them.
Conservatives rarely oppose welfare because they think it doesn't work. They oppose welfare because they think it's wrong whether it works or not. And that's not a talking head telling them that, it's decades of growing up surrounded by that same hierarchical mindset.
Like John F Kennedy said "Ask Not What Your Country Can Do For You. Ask what you can do for your country". There's people who take that to heart and feel it's not the country's job to make their life a better place. And will allow themselves to sink into poverty holding on to that belief.
They're horribly wrong, but if you don't understand why they feel that way, it's hard to help move the country forward.