BUT THERE’S A MAN WHO CAN ANSWER
SOME OF THAT.
HE IS LARRY KUDLOW.
HE JOINS US NOW FROM THE GROUNDS
OF THE WHITE HOUSE.
HE’S ECONOMIC ADVISER TO
PRESIDENT DONALD TRUMP.
LARRY, FIRST OF ALL, JUST
GENERAL QUESTION, WHAT DO YOU
THINK OF THAT JOBS NUMBER?
>> I THINK IT WAS A VERY
IMPORTANT, VERY POSITIVE NUMBER,
DAVID.
IT REALLY TELLS US A WHOLE BUNCH
OF THINGS.
NUMBER ONE, THE JOB RECOVERY
CONTINUES.
BEAR IN MIND THAT THIS WAS IN
JULY, THE WEEK OF JULY 12th TO
18th.
THAT WAS SMACK IN THE MIDDLE OF
THE SPIKING HOT SPOTS IN THE
SOUTHWEST AND A FEW OTHER
PLACES.
SO THE DIMINUTION OR THE WORRIES
THAT SOME PARTIAL SHUTDOWNS OR
SOME PAUSING SHUTDOWNS WOULD
WRECK THE JOB NUMBERS DID NOT
PAN OUT.
I THINK THAT’S A GREAT SIGN OF
STRENGTH.
GETTING UNEMPLOYMENT DOWN TO
10.2% PUTS LIE TO THE IDEA WE
WILL HAVE DOUBLE DIGIT
UNEMPLOYMENT IN THE FALL, AROUND
ELECTION TIME.
YOU ARE GOING TO SEE SINGLE
DIGIT UNEMPLOYMENT RATES.
WE MAY NOT GET BACK, WE ARE NOT
GOING TO GET BACK TO WHERE WE
WERE AT THE PEAK IN FEBRUARY, I
GRANT YOU THAT, BUT THE IDEA WE
ARE GOING TO GET DOWN TO, YOU
KNOW, BELOW 10%, 9%, 8%, I DON’T
WANT TO GO TOO FAR BUT THAT’S A
BIG CHANGE IN ATTITUDE.
LET ME ADD A THIRD POINT THAT’S
VERY VERY IMPORTANT.
THIS IS A SELF-SUSTAINING
RECOVERY.
WHY DO I SAY THAT?
AWAY FROM THE JOBS NUMBERS, YOU
HAD A CRASH OF INVENTORIES, ALL
RIGHT, SO WHAT’S GOING ON IN THE
ECONOMY, CAR SALES, DAVID, ARE
BOOMING, RETAIL SPENDING OVERALL
IS BOOMING, OKAY.
BUT COMPANIES ARE GOING TO HAVE
TO PRODUCE NEW INVENTORIES TO
RESTOCK THE SHELVES ALL ACROSS
AMERICA AND THAT IS A HUGE BOOST
TO THE ECONOMY IN THE THIRD AND
FOURTH QUARTERS --
DAVID: LARRY --
>> THIS IS SELF-SUSTAINING
RECOVERY AND THE JOB NUMBERS ARE
STRONGER THAN ANYONE THOUGHT
POSSIBLE AND WE’RE CLIMBING OUR
WAY BACK FROM THE AWFUL
PANDEMIC --
DAVID: IT WAS A GREAT BEAT OF
THE ESTIMATES AND I DON’T MEAN
TO RAIN ON THE PARADE BUT THERE
WERE A COUPLE ISSUES I WANT TO
TALK ABOUT.
FIRST, THERE ARE STILL MILLIONS
OF AMERICANS UNEMPLOYED.
THE FEDERAL BONUS OF $600 A WEEK
IN UNEMPLOYMENT BENEFITS EXPIRED
AND IT LOOKS LIKE DEMOCRATS HAVE
NO INTEREST IN EXTENDING IT.
WILL THE PRESIDENT EXTEND THAT
ON HIS OWN?
MAYBE NOT AT THE $600 BUT AT
SOME OTHER MARK?
>> WELL, THE PRESIDENT IS
LOOKING VERY VERY CAREFULLY, I
HAVE BEEN ENGAGED IN THIS WITH
OTHERS ABOUT USING EXECUTIVE
AUTHORITY TO TAKE UP THE SLACK.
IF THE DEMOCRATS, THE OTHER
SIDE, DOESN’T WANT TO MAKE A
DEAL, AND REALLY DON’T SEEM TO
BE MAKING MUCH PROGRESS, MAYBE
THE TONE WAS BETTER A FEW DAYS
AGO, BUT NOTHING BUT
DISAPPOINTMENT, SO THE PRESIDENT
IS LOOKING FOR A PAYROLL TAX
CUT.
HE’S LOOKING FOR ADMINISTRATIVE
ACTION TO KEEP THE EVICTION
MORATORIUM IN PLACE.
HE’S ALSO LOOKING AT EXECUTIVE
AUTHORITY TO REFORM UNEMPLOYMENT
TO PROVIDE A BENEFIT FOR
REEMPLOYMENT, A RETENTION CREDIT
FOR EMPLOYERS, AND A BENEFIT FOR
REEMPLOYMENT FOR THE WORK FORCE.
THOSE ARE ESSENTIAL ITEMS ON HIS
LIST.
WE WANT TO KEEP THE MOMENTUM
GOING HERE IN THE ECONOMY.
AS YOU NOTED, THERE’S STILL
HARDSHIP AND HEARTBREAK OUT
THERE.
THE GREAT NEWS IS THE V-SHAPED
RECOVERY IS SPRINGING BACK.
BUT --
DAVID: LET ME JUST ASK ABOUT
THIS --
>> WE HAVE MORE WORK TO DO.
LET ME JUST FINISH THE THOUGHT.
HE IS INTENT ON USING ALL OF THE
FEDERAL POWER LEVERS AT HIS
DISPOSAL AND IF WE HAVE TO DO
EXECUTIVE ORDERS, HE WILL DO
THEM.
I CAN TELL YOU, YESTERDAY AND
LAST EVENING, WHEN I LEFT, I’M
WORKING WITH THE COUNSEL’S
OFFICE ON A PAYROLL TAX CUT.
THE DRAFT IS BASICALLY
COMPLETED.
DAVID: WE WILL TALK ABOUT THAT,
BUT THE ISSUE OF THE
UNEMPLOYMENT BONUS, OF COURSE, A
LOT OF PEOPLE SAY IT’S A
DISINCENTIVE FOR PEOPLE TO GO
OUT AND LOOK FOR WORK.
I THINK THERE’S A LOT TO THAT.
HOWEVER, THERE ARE PEOPLE WHO
ARE COUNTING ON IT.
HOW SOON CAN YOU GIVE THEM ANY
IDEA OF HOW SOON THEY WILL HAVE
TO WAIT?
>> WELL, I CAN’T, BECAUSE OF THE
STALLED NEGOTIATIONS.
WE WANT TO GET STUFF DONE RIGHT
AWAY.
YOU’VE GOT DIFFICULTIES, OF
COURSE, IN THE LOW END ON THE
UNEMPLOYMENT SIDE.
THEY MAY NOT BE ABLE TO GET
JOBS.
ONE OF THE THINGS HERE IS THE
TEMPORARY LAYOFFS AND FURLOUGHS,
THOSE FOLKS ARE COMING BACK TO
WORK IN LARGE SIZE.
THAT WAS FROM THE PAYROLL
PROTECTION PROGRAM AND OTHER
PARTS OF THE FIRST CARES BILL IN
MARCH.
THAT’S A GREAT PART OF THE
STORY.
THERE ARE OTHER PARTS OF THE
STORY, THOUGH, THAT ARE NOT AS
GOOD AND WE WOULD LIKE TO PUT
OUT SOME ADDITIONAL EXTENSIONS
OF TEMPORARY ASSISTANCE TO HELP
THOSE FOLKS.
IF THE PRESIDENT HAS TO USE HIS
EXECUTIVE AUTHORITY, YOU CAN BET
HE WILL USE IT JUST AS HE HAS IN
THE PAST.
DAVID: WILL HE USE IT FOR A
PAYROLL TAX CUT?
>> I BELIEVE HE WILL.
AS I SAID, THE LEGAL DRAFTING IS
COMPLETE.
WE’VE HAD INTENSE DISCUSSIONS
ABOUT THIS IN THE LAST SEVERAL
DAYS.
I DON’T WANT TO MAKE A
PREDICTION.
IT’S UP TO HIM TO INFORM THE
PUBLIC.
IF HE’S SATISFIED WITH WHAT THE
WORK’S BEEN DONE.
BUT WE ARE HARD INTO IT AND
OTHER AREAS.
WE MAY BE ABLE TO REPURPOSE
FUNDS THAT WERE NOT -- THEY WERE
OBLIGATED BUT NOT SPENT LAST
MARCH.
THERE’S A WHOLE VARIETY OF
ISSUES AND FEDERAL POWERS THAT
ARE AT THE PRESIDENT’S DISPOSAL
AND HE WILL USE THEM.
YOU CAN BET ON IT.
DAVID: LET’S TALK ABOUT
SPENDING, IF YOU CAN.
THERE ARE TRILLIONS OF DOLLARS
SPENT ALREADY ON COVID RELIEF.
THE DEMOCRATS WANT TO SPEND
TRILLION MORE THAN REPUBLICANS
DO.
WE STILL HAVE OVER $1 TRILLION
WAITING TO BE SPENT IN THE
COFFERS AND ACTUALLY, JUDY
WOODRUFF, SHE’S NOT A BIG TRUMP
FAN.
ON THE OTHER HAND, SHE PUSHED
NANCY PELOSI ON THIS AND NANCY
PELOSI SAID YOU’RE A REPUBLICAN
SYMPATHIZER FOR SUGGESTING THAT
THERE’S MONEY LEFT OVER.
BUT THERE IS, IS IT NOT TRUE
THAT THERE’S OVER $1 TRILLION
THAT HAS YET TO BE SPENT?
>> WELL, I CAN’T GIVE YOU THE
EXACT NUMBER BUT I THINK YOU’RE
IN THE RIGHT BALLPARK.
JUDY WOODRUFF AND HER HUSBAND AL
HUNT ARE VERY DEAR FRIENDS OF
MINE.
I WAS ON JUDY WOODRUFF’S PBS
NEWS HOUR LAST EVENING TALKING
ABOUT THIS VERY SUBJECT.
THE QUESTIONS HERE ARE PART
LEGAL AND PART FISCAL.
WHETHER THE LEGAL COUNSEL AND
THE OFFICE OF MANAGEMENT AND
BUDGET CAN SEE THEIR WAY TO
REPURPOSING SOME OF THE MONIES
THAT WEREN’T SPENT, OR ELSE JUST
TO ADD THEM ON TO VARIOUS RELIEF
AND ASSISTANCE PROGRAMS THAT
WE’RE ALL LOOKING AT.
YES, THAT GIVES US A LOT OF
RESOURCES TO WORK WITH.
I JUST CAN’T SAY THIS ENOUGH.
PEOPLE SHOULD NOT BELIEVE THE
PRESIDENT IS BLUFFING ON USING
HIS EXECUTIVE AUTHORITY.
HE IS NOT BLUFFING.
AND SINCE WE CAN’T SEEM TO GET A
DEAL DONE WITH THE OTHER TEAM
RIGHT NOW, HE WILL TAKE HIS
EXECUTIVE AUTHORITY TO THE
FULLEST.
DAVID: HE’S NOT BLUFFING ON
TIKTOK EITHER.
COMING OUT WITH A DEADLINE FOR
THEM TO SELL TO PRESUMABLY
MICROSOFT IF SOMEBODY ELSE
DOESN’T COME UP WITH THE MONEY.
THERE’S ALSO OF COURSE THE NEW
RULE THAT CHINESE COMPANIES HAVE
TO ADHERE TO OUR ACCOUNTING
STANDARDS, OTHERWISE THEY WILL
BE DE-LISTED BY 2022.
IS ALL THIS SORT OF A PAYBACK
FOR WHAT THEY DID WITH THE
CORONAVIRUS?
>> WELL, ACTUALLY, NO, IN
SPECIFIC TERMS, WE ARE VERY
UNHAPPY WITH HOW CHINA BEHAVED
DURING THE CORONAVIRUS BUT
THAT’S KIND OF A SEPARATE SET.
WE HAVE BEEN WORKING ON INVESTOR
PROTECTION FOR QUITE SOME TIME.
NATIONAL SECURITY ADVISER ROBERT
O’BRIEN, A DEAR FRIEND, HE’S A
REALLY SMART GUY, HE AND I HAVE
WORKED TOGETHER.
WE STOPPED THE THRIFT SAVINGS
PLAN FROM INVESTING IN CHINESE
SECURITIES.
WE ARE TRYING TO URGE THE
RAILROAD RETIREMENT FUNDS TO DO
LIKEWISE.
THE BIGGER PICTURE HERE IS THAT
THE PUBLIC COMPANY
ACCOUNTABILITY BOARD IS NOT
HAPPY FOR YEARS WITH CHINA’S
LACK OF DISCLOSURE AND
TRANSPARENCY, AND AS YOU SAID,
WE’RE GOING TO GIVE THEM A YEAR.
THEY HAVE TO HAVE AUDITS THAT
ARE CONFIRMED BY THE PUBLIC
ACCOUNTING BOARD AND SIGNED OFF
BY THE S.E.C.
NOT ONLY JUST THE AUDITS, DAVID
ASMAN, BUT ALSO THE WORK PAPERS
BEHIND THE AUDITS.
IF THAT IS NOT DONE ADEQUATELY
BY COMPANIES THAT ARE PUBLIC NOW
OR MAY WISH TO GO PUBLIC IN THE
FUTURE, THEN IT WILL NOT PASS
MUSTER.
THEY HAVE TO MEET AMERICAN
STANDARDS.
WHAT WE ARE DOING HERE IS U.S.
INVESTOR PROTECTION AS WELL AS
NATIONAL SECURITY ITEMS.
I WOULD TAKE THAT ONE VERY
SERIOUSLY.
DAVID: LOT OF PEOPLE THINK IT’S
ABOUT TIME, FRANKLY.
WE HAVE BEEN TALKING ABOUT THIS
FOR YEARS.
LARRY KUDLOW, WHAT A PLEASURE TO
SEE YOU.
MY BEST TO EVERYBODY THERE,