CHAIRMAN OF THE COUNCIL OF
ECONOMIC ADVISORS.
HE WAS TALKING ABOUT HOW GOOD
THINGS ARE RIGHT NOW.
YOU KNOW, FOR EIGHT YEARS, WE
WENT TO THE OBAMA
ADMINISTRATION.
I GOT TO TELL YOU, ONE OF THE
THINGS THAT FRUSTRATED ME ABOUT
THE PRESIDENT AND HIS ECONOMIC
TEAM THEN WAS EVERY SINGLE TIME
YOU GOT A LITTLE BIT OF GLIMMER
OF HOPE.
ONCE THINGS STARTED LOOKING A
LITTLE BIT BETTER, PRESIDENT
OBAMA WOULD CAUTION YOU, SAY WE
GOT A LOT OF WORK TO DO.
FOR SURE.
BUT IT IS KIND OF NICE WHEN YOU
CAN CELEBRATE THESE GOOD
MOMENTS, RIGHT?
LIKE RECORD LOW UNEMPLOYMENT.
YOU HEARD KEVIN HASSETT SAY,
LOOK, THIS IS THE BEST ECONOMY
SINCE THE DAYS OF WORLD WAR II.
WE'RE FINALLY RETURNING TO 3% AS
NORMAL.
JOINING ME NOW, FORMER REAGAN
ECONOMIC ADVISOR ART LAFFER, WHO
I KNOW IS VERY ENCOURAGED ABOUT
THE CURRENT STATE OF THE U.S.
ECONOMY AS WELL.
DOES IT KEEP UP?
DO WE STAY AT 3%?
DO WE MOVE HIGHER?
WHAT ARE THE CAVEATS IN ALL OF
THAT, ART?
>> I THINK WE DO STAY AT 3%.
IN FACT WE MIGHT LOSE A LITTLE
BIT HIGHER AS WELL.
WE HAVE ROOM FOR PARTICIPATION
RATE TO RISE.
WE HAVE A LOT OF ROOM STILL LEFT
FOR AVERAGE HOURS TO RISE.
PRODUCTIVITY IS NOT NEARLY WHERE
IT SHOULD BE YET.
I'M VERY OPTIMISTIC, TRISH,
WE'LL BE DOING EVEN BETTER IN
THE FUTURE.
BUT WASN'T KEVIN'S PRESENTATION
PROFESSIONAL AND FIRST CLASS?
I MEAN WHAT A WONDERFUL --
TRISH: YOU LIKE THAT
COUNTERPOINT, HUH?
>> I HAVE KNOWN HIM FOR YEARS
AND YEARS.
HE IS SO PROFESSIONAL, SO
COMPETENT, SO WELL-DONE.
WE'RE VERY WELL SERVED TO HAVE
KEVIN HASSETT THERE AS CHAIRMAN
OF COUNCIL ECONOMIC ADVISORS.
WE REALLY ARE.
TRISH: I LIKE THE CHARTS.
I LIKE GRAPHS.
I LIKE CHARTS.
I LIKE BEING ABLE TO QUANTIFY
FOR ALL THIS.
NUMBERS DON'T LIE.
THEY REALLY DON'T.
IT IS GOOD TO SEE THAT THINGS
ARE IMPROVING.
THE QUESTION, QUESTION IS, DOES
IT STAY?
OUR OWN BLAKE BURMAN HAD AN
IMPORTANT QUESTION.
I WOULD LIKE YOU TO WEIGH IN ON
THIS AS WELL.
LOOK, IF WE GET A TRADE WAR,
WHAT MIGHT THAT MEAN FOR U.S.
GROWTH IN THE INTERIM, ART?
>> YEAH, BLAKE ASKED THAT
QUESTION.
I DIDN'T HEAR KEVIN REALLY
ANSWER IT.
I THINK A TRADE WAR IS MISTAKE
FOR ANYONE TO HAVE.
IT WOULD BE DAMAGING TO U.S.
ECONOMY.
HISTORICALLY IT HAS.
I WAS WITH THE NIXON
ADMINISTRATION IN THE 1970S, WE
PUT ON 10% IMPORT TAX SURCHARGE,
WE HAD JOB DEVELOPMENT CREDIT
EXCLUDED FOREIGN GOODS GETTING
CREDIT.
WE DEVALUED THE DOLLAR.
THE STOCK MARKET COLLAPSED.
WE HAD ONE OF THE WORST
ECONOMIES IN THE MIDDLE OF THE
190'S, I BELIEVE PRIMARILY AS A
RESULT OF TRADE WARS AND BAD
TRADE POLICY ON PART OF THE U.S.
AND OTHER COUNTRIES BY THE WAY.
I DO WORRY ABOUT THAT I WORRY
ABOUT THAT.
I THINK KEVIN IS RIGHT THE
PRESIDENT DOESN'T WANT TRAIT
WAR.
TRISH: NOBODY WANTS ONE.
>> THERE SHOULDN'T BE ONE.
IF WE GET THEM TO THE REDUCE
TARIFFS TO THE U.S. LEVELS.
WE WOULD HAVE ONE OF THE BIGGEST
WORLDWIDE BOOMS IN HISTORY.
TRISH: I DON'T THINK WE'RE
ASKING FOR THE MOON, ART.
>> COME ON.
TRISH: WE'RE NOT ASKING FOR THE
MOON.
>> I THOUGHT YOU SAID WE ARE.
YEAH.
TRISH: LET'S BRINGING FAIR.
>> THERE IS NO REASON.
TALK TO SOMEONE, YOUR TARIFFS
ARE WAY HIGHER THAN OUR CARS AND
OUR TARIFFS ON YOUR CARS.
LOWER TARIFFS.
LET'SLET'S GO TO TOWN WITH GOOD
COMPETITION.
I THINK THAT IS WHAT WE'LL FIND
HAPPENING.
>> 3% NOW AND WHAT DO YOU THINK?
>> MOON IS THE LIMIT.
DURING THE WHOLE KENNEDY YEARS,
THE GROWTH WAS FIVE PLUS%.
DURING REAGAN YEARS IT WAS 4%.
TRISH: HE CUT TAXES TOO.
I'M SEEING A THEME.
>> CLINTON DID REALLY WELL WHEN
HE CUT TAXES TOO.
TRISH: WHAT DO YOU KNOW?
>> IT IS ALL VERY EXCITING.
IT IS POLICY-DRIVEN.
WHAT TRUMP HAS DONE ON POLICY
LEVELS IS JUST SPECTACULAR.
THAT TAX BILL IS REALLY GREAT.
CUT THE CORPORATE RATE.
PUT THE PERSONNAL INCOME TAX.
TRISH: IT IS GOOD.
IT IS GOOD.
I KNOW YOU'RE MR. OPTIMISM.
THERE ARE LITTLE THINGS I WOULD
HAVE LIKED TO SEEN FIXED.
>> ME TOO.
ME TOO.
TRISH: OPPORTUNITY TO DO IT.
GLASS HALF HERE.
WE'LL TAKE IT.
>> THE PRESIDENT TOLD ME WANTS A
SECOND TAX BILL.
I'M ALL FOR IT.
DROP NUMBER OF BRACKETS.
DROP RATES FURTHER.
WE'LL GET TO FOUR, 4 1/2%.
HOW IS THAT?
TRISH: I LIKE IT.
I LIKE IT.
>> WON'T THAT BE FUN?
TRISH: HEY, 4%, 5%.
LET'S JUST GROW.
LET'S GROW.
KEEP IT COMING.
ART LAFFER.
GOOD TO SEE YOU.
MIKE HUCKABEE IS IS A HI.
>> I DON'T KNOW YOU WERE MISS
NEW HAMPSHIRE?
TRISH: YOU DOESN'T KNOW THAT?
COME ON!
>> NOT THAT I WOULDN'T EXPECT
IT.
WOW, I DIDN'T REALIZE THAT.
TRISH: MISS NEW HAMPSHIRE.
YOU KNEW I WAS AN OPERA SINGER,
RIGHT?
>> NO, I DON'T KNOW THAT.
TRISH: OH, MY GOODNESS.
MY GOODNESS.
YOU ONLY KNOW ONE PART OF ME.