NUMBER OF DAYS EXACTLY WHAT IS GOING TO BE --
STUART: YOU HEARD WHAT THE
PRESIDENT HAD TO SAY.
JOINING US NOW IS LARRY KUDLOW,
CHIEF ECONOMIC ADVISER TO THE
PRESIDENT.
PRESIDENT. LARRY, WELCOME TO THE PROGRAM.
IT’S VERY GOOD TO SEE YOU.
THE PRESIDENT JUST SAID VERY
CLOSE TO A PLAN TO REOPEN THE
ECONOMY.
ECONOMY. WOULD MAY, SOME POINT IN THE
MONTH OF MAY, BE A REASONABLE
TARGET TO GO TO TOWARDS
REOPENING SOME PARTS OF THE
ECONOMY?
ECONOMY? >> WELL, LOOK, STU, THE QUOTE
YOU GAVE THE PRESIDENT TALKING
ABOUT GUIDELINES TO GIVE TO THE
STATES AND SO FORTH, I CAN’T
IMPROVE UPON THAT.
I DO THINK IT’S SAFE TO SAY THAT
IN THE NEXT FEW DAYS, HE WILL BE
MAKING SOME VERY IMPORTANT
ANNOUNCEMENTS REGARDING THOSE
GUIDELINES.
GUIDELINES. LOOK, THE KEY POINT HERE REALLY,
NUMBER ONE, SAFETY, THE HEALTH
AND SAFETY OF THE AMERICAN
PEOPLE.
PEOPLE. NUMBER TWO, THE WELLBEING OF THE
AMERICAN PEOPLE.
AMERICAN PEOPLE. WE WANT TO GET FOLKS BACK TO
WORK.
WORK. YOU KNOW, FOLKS, ORDINARY MEN
AND WOMEN, BLUE COLLAR WORKERS,
FAMILIES, SMALL BUSINESSES, WE
WANT TO DO IT AS QUICKLY AS
POSSIBLE.
POSSIBLE. IT HAS TO BE SAFE, IT HAS TO BE
DRIVEN BY THE DATA FROM OUR KEY
HEALTH SPECIALISTS, BUT THE
PRESIDENT I THINK IS MOVING
TOWARDS THE VERY IMPORTANT
ANNOUNCEMENT IN THE NEXT DAY OR
TWO.
TWO. STUART: IT WON’T BE A
SIMULTANEOUS REOPENING, ALL
STATES EVERYWHERE.
STATES EVERYWHERE. PRESUMABLY SOME PARTS OF THE
COUNTRY ARE MORE SUITABLE TO A
REOPENING THAN OTHERS.
WOULD YOU AGREE WITH THAT?
>> WELL, I THINK THAT’S TRUE
FROM A COMMON SENSE STANDPOINT.
AND AGAIN, THE PRESIDENT HAS
SUGGESTED A KIND OF ROLLING
REENTRY HERE, BUT I DON’T WANT
TO, YOU KNOW, I DON’T WANT TO
FRONT-RUN HIS VIEWS, I DON’T
WANT TO PRE-ANNOUNCE ANYTHING
THIS MORNING.
THIS MORNING. I JUST WANT TO SAY AGAIN, YOU
KNOW, IT’S A QUESTION OF HEALTH,
A QUESTION OF SAFETY, AND A
QUESTION OF WELLBEING SO THAT
MAIN STREET FOLKS, MIDDLE CLASS
BLUE COLLAR FOLKS, WE WANT TO
GET THEM BACK TO WORK AS SOON AS
WE SAFELY CAN.
I BELIEVE THE COUNTRY IS READY
TO GO BACK TO WORK.
I JUST WANT TO MAKE A POINT
HERE.
HERE. THE PRESIDENT’S VISION ALL
ALONG, YOU GO ALL THE WAY BACK
FROM THE TIME HE WAS ELECTED,
LOWER TAXES, SWEEPING
DEREGULATION, ENERGY
DEREGULATION, ENERGY INDEPENDENCE, FAIR TRADE DEALS
TO HELP MANUFACTURERS AND
FARMERS AND SO FORTH, THAT
GENERATED A TREMENDOUS,
TREMENDOUS PROSPERITY, OKAY?
IT’S IMPORTANT THAT WE NOT
FORGET THAT.
FORGET THAT. AND NOW COMES THIS PANDEMIC AND
IT’S AN AWFUL SITUATION AND IT’S
AFFECTED HEALTH AND LIVES AND OF
COURSE, IT SLAMMED THE ECONOMY.
WE’RE GOING TO BE IN A BRIEF
TEMPORARY CONTRACTION.
TEMPORARY CONTRACTION. BUT I THINK THIS, STU.
WITH THE PRESIDENT’S ECONOMIC
POLICY VISION ON TAXES AND
REGULATIONS AND SO FORTH,
THERE’S NO REASON, NO REASON WHY
WHEN THIS PANDEMIC PASSES, AND
WE BEGIN TO REOPEN THE ECONOMY
IN A SAFE MANNER, THERE’S NO
REASON WE CAN’T BEGIN QUICKLY TO
REBUILD AND REIGNITE THE
AMERICAN ECONOMY AND REGENERATE,
IF YOU WILL, THE SAME KIND OF
TREMENDOUS JOBS AND WAGES AND
PROSPERITY THAT WE HAD BEFORE
AND I THINK WE’RE GOING TO SEE
GREAT ECONOMIC NUMBERS IN THE
BACK END OF THE YEAR.
STUART: YOU’RE LOOKING AT THE
OTHER SIDE OF THIS THING.
YOU’RE LOOKING AT THE ECONOMY ON
THE OTHER SIDE OF THIS PANDEMIC.
YOU’VE GOT TRILLIONS OF DOLLARS
FLOWING INTO THE ECONOMY FROM
THE TREASURY, FROM THE FEDERAL
RESERVE, IT’S ALL FLOWING INTO
THE ECONOMY AND YOU ARE LOOKING
AT THE OTHER SIDE.
WHEN DOES THE PICKUP IN THE
ECONOMY START?
ECONOMY START? JPMORGAN IS SAYING LOOK, WE ARE
IN A SEVERE RECESSION AS OF
RIGHT NOW, WE ARE IN THE DEPTHS
RIGHT NOW.
RIGHT NOW. WHEN DO WE START TO SEE THOSE
IMPROVING NUMBERS?
IMPROVING NUMBERS? >> WELL, YOU KNOW, A LOT OF
THESE FORECASTS AND SO FORTH, I
DON’T WANT TO QUIBBLE WITH
ANYTHING, I’M JUST SAYING THIS
IS, YOU KNOW, USING THOSE OLD
TERMS RECESSION OR RELATED
TERMS, YOU KNOW, THIS IS NOT OF
OUR OWN MAKING.
THIS IS A VERY SPECIAL UNUSUAL
SITUATION BECAUSE OF THE
CORONAVIRUS AND THE PANDEMIC.
NOW, LOOKING ON THE OTHER SIDE
OF THAT, AGAIN, I’M SAYING THE
VERY SAME INCENTIVES THAT THE
PRESIDENT PUT INTO PLACE WHEN HE
WAS FIRST ELECTED SHOWING UP IN
THE STOCK MARKET, SHOWING UP IN
THE JOBS MARKET, SHOWING UP IN
THE EMPLOYMENT NUMBERS, SHOWING
UP IN MIDDLE AND LOWER MIDDLE
CLASS WAGE INCREASES, INEQUALITY
WAS FALLING UNDER PRESIDENT
TRUMP’S POLICIES BEFORE THE
PANDEMIC.
PANDEMIC. SO I DON’T WANT TO BE PRECISE ON
ANYTHING.
ANYTHING. I’M JUST SAYING WE REGARD THIS
AS A TEMPORARY MATTER.
WE ARE READY TO GO BACK AND TAKE
THE NECESSARY STEPS TO GET
AMERICA BACK ON TRACK.
THE PRESIDENT HIMSELF WILL BE
MAKING A NUMBER OF IMPORTANT KEY
VITAL ANNOUNCEMENTS IN THE NEXT
DAY OR TWO.
STUART: WILL WE SEE ANOTHER
RESCUE PLAN?
RESCUE PLAN? I KNOW IT IS BEING CONSIDERED.
DO YOU THINK WE NEED IT?
I ASK BECAUSE THE HOUSE IS NOT
GOING BACK TO WORK IN D.C. UNTIL
MAY 4th, THAT’S THREE WEEKS
AWAY.
AWAY. DO WE NEED IT MORE URGENTLY THAN
THAT?
THAT? >> WELL, A COUPLE POINTS ON
THIS.
THIS. FIRST OF ALL, IN TWO WEEKS, IN
TWO WEEKS WE HAVE EXECUTED AN
UNBELIEVABLY LARGE, LARGEST
RESCUE PLAN IN AMERICAN HISTORY.
I JUST HAD SOME UP-TO-DATE
NUMBERS.
NUMBERS. IN TERMS OF THE SMALL BUSINESS
ASSISTANCE, THE PAYROLL
PROTECTION PLAN, THIS IS FROM
THE TREASURY DEPARTMENT, WE HAVE
APPROVED OVER ONE MILLION LOANS.
THIS IS IN TWO WEEKS OR SLIGHTLY
LESS.
LESS. $250 BILLION NOW HAS BEEN
APPROVED.
APPROVED. AND THE MONEY IS, IN FACT,
FLOWING.
FLOWING. INDEED, I WANT TO SAY THIS.
WE HAVE REQUESTED AN EXTRA $250
BILLION ON TOP OF THE ORIGINAL
$350.
$350. AT THE PRESENT RUN RATE, WE WILL
BE OUT OF MONEY FOR THE SMALL
BUSINESS ASSISTANCE PLAN SO WE
ASKED CONGRESS TO PLEASE PUT
PARTISANSHIP ASIDE AND LET’S GET
THAT ADDITIONAL MONEY.
THE OTHER POINT I WANT TO MAKE
IS CHECKS ARE GOING OUT, THE
ECONOMIC IMPACT ASSISTANCE PLAN,
DIRECT TREASURY CHECKS FROM THE
IRS, WILL BE IN ALMOST $150
BILLION BY TOMORROW, I AM TOLD
AND THE TOTAL PACKAGE, THIS IS
SUCH AN EXTRAORDINARY NUMBER, WE
HAVE PROVIDED ASSISTANCE TO
ROUGHLY 175 MILLION AMERICANS.
IT’S AN EXTRAORDINARY NUMBER.
PREDOMINANTLY MIDDLE CLASS
FOLKS, MAIN STREET FOLKS, BLUE
COLLAR FOLKS AND THE LIKE.
NOTHING LIKE THIS HAS EVER BEEN
DONE BEFORE.
DONE BEFORE. SO THAT’S THE FOCUS RIGHT NOW
AND WE WOULD LIKE TO FILL UP OUR
LOAN CARD WITH SOME EXTRA HELP
FROM CONGRESS BECAUSE THESE
PAYROLL PROTECTION PLANS, THE
BURN RATE, THEY ARE SO POPULAR
THE BURN RATE IS GOING TO GET US
OUT BEFORE THIS WEEK IS OVER.
DON’T FORGET, WE HAD THE
BUSINESS PAYROLL TAX HOLIDAY, WE
DEFERRED INCOME TAX PAYMENTS FOR
INDIVIDUALS AND COMPANIES, WE
DEFERRED STUDENT LOAN PAYMENTS.
THESE ARE ALL PART OF THE PLAN
FOR LIQUIDITY AND CASH AND
STABILITY.
STABILITY. I LOOK FORWARD TO THE POINT WHEN
AMERICA CAN REIGNITE, WHEN
AMERICANS CAN GO BACK TO THE
ANIMAL SPIRITS AND RESTORE THE
PROSPERITY THAT PRESIDENT
TRUMP’S ORIGINAL POLICY VISION
AND EXECUTION PUT INTO PLACE.
STUART: THERE ARE SOME
REPUBLICANS IN THE SENATE WHO
WANT TO, AS THEY SAY, HOLD CHINA
ACCOUNTABLE FOR WHAT HAPPENED
DURING THE EPIDEMIC AND
THEREAFTER.
THEREAFTER. THEY ARE TALKING IN PUNITIVE
TERMS AS IF THEY WANT TO PUNISH
CHINA AND CERTAINLY CHANGE THE
SUPPLY CHAIN WHEN IT COMES TO
PHARMACEUTICALS.
PHARMACEUTICALS. WILL THAT HURT, A, OUR
RELATIONSHIP WITH CHINA AND B,
OUR TRADE WITH CHINA?
>> WELL, LOOK, COUPLE THINGS.
FIRST OF ALL, CHINA HAS TO BE
ACCOUNTABLE IN A NUMBER OF
AREAS, TRADE, THE PHASE ONE
DEAL, WHICH IS PROCEEDING, BY
THE WAY, CERTAINLY IN FAIRNESS
TO THE CHINESE, WE ARE MOVING.
I’M SURE IT’S SLOWER THAN IT
WOULD HAVE OTHERWISE BEEN THE
CASE BUT REPORTS ARE COMING IN
THAT DEAL IS BEING IMPLEMENTED.
CHINA NEEDS TO BE HELD
ACCOUNTABLE ON A NUMBER OF
MEASURES.
MEASURES. OVER A PERIOD OF TIME, THEY WILL
BE HELD ACCOUNTABLE, THERE’S NO
QUESTION ABOUT THAT.
HAVING SAID THAT, THE PRESIDENT
IS ENGAGING WITH CHINA, HE’S
SPEAKING WITH PRESIDENT XI,
THEIR RELATIONSHIP REMAINS VERY
POSITIVE SO WE ARE WORKING WITH
THEM.
THEM. LOOK, ANOTHER POINT THAT OFTEN
COMES UP, CHINESE -- AMERICAN
COMPANIES OVERSEAS, SUPPLY
CHAINS OVERSEAS.
CHAINS OVERSEAS. LOOK, WE WOULD LIKE TO BRING
THEM HOME, JUST AS A MATTER OF
POLICY ACROSS THE BOARD.
YOU AND I HAVE TALKED ABOUT
THIS.
THIS. TO ME, 100% EXPENSING, 100%
EXPENSING WHETHER IT’S
STRUCTURES, PLANTS, EQUIPMENT,
RENOVATIONS, INTELLECTUAL
RENOVATIONS, INTELLECTUAL PROPERTY, THAT WOULD ESSENTIALLY
PAY THE MOVING EXPENSES FOR
COMPANIES TO COME BACK TO
AMERICA.
AMERICA. AND BY THE WAY, IT WOULD ALSO
HELP AMERICANS TO RECOVER EVEN
MORE RAPIDLY FROM THE PANDEMIC.
BUT AGAIN, WE ARE ENGAGING WITH
CHINA AND THE TRADE DEAL IS
BEING IMPLEMENTED.
BEING IMPLEMENTED. STUART: LARRY, THE AIRLINES ARE
WORKING OUT A DEAL FOR SUPPORT
FROM THE GOVERNMENT.
IF PART OF THAT SUPPORT MEANS
THE GOVERNMENT TAKING AN
OWNERSHIP STAKE IN AN AIRLINE,
PIECE OF THE EQUITY, OR BOEING,
FOR EXAMPLE, DO YOU APPROVE OF
THAT?
THAT? >> YES, I DO.
I DON’T WANT TO SPEAK TO
SPECIFICS.
SPECIFICS. SECRETARY MNUCHIN HAS SAID AND
THE PRESIDENT HAS SAID TIME AND
AGAIN THAT IN RETURN FOR
ASSISTANCE, TAXPAYERS, U.S.
TAXPAYERS HAVE A RIGHT TO TAKE
SOME EQUITY POSITION.
AFTER ALL, WE ARE BEING VERY
GENEROUS WITH THE AIRLINES.
WE NEED FUNCTIONING AIR SYSTEM,
NO QUESTION ABOUT THAT.
THAT’S TRUE FOR OTHER PARTS OF
TRANSPORTATION.
TRANSPORTATION. I WON’T GO INTO SPECIFICS.
THAT’S UP TO MR. MNUCHIN.
BUT YES, I SUPPORT THAT POLICY
COMPLETELY.
COMPLETELY. STUART: LARRY KUDLOW, WE HAVE
TAKEN A LOT OF YOUR TIME ON A
BUSY DAY.
BUSY DAY. WE ALWAYS APPRECIATE IT.