Billionaire Mario Gabelli says Trump marks the 'end of creeping socialism'

The presidency of Donald Trump brings "the end of creeping socialism," billionaire investor Mario Gabelli told CNBC on Tuesday.

Gabelli told "Squawk Box" he believes "fiscal stimulus" in the form of pro-growth policies from Trump will offset any drag from rising interest rates signaled by the Federal Reserve.

"Inflation is coming back. So we like companies that have pricing power," Gabelli said. "Earnings are going to go up sharply over the next 12 months, pretax, even with higher costs for labor."

Gabelli said tax cuts and rising wages will be more money in Americans' pocket, which should translate into increased consumer spending.

"The real element of the Trump victory dealt with ... the end of creeping socialism and the notion that the American economy, even with all the flaws of capitalism, was the greatest place to keep capital on a global basis," the chairman and CEO of Gamco Investors said.

Founded by Gabelli in 1976, Gamco has about $40 billion in assets under management.

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