ALL RIGHT, JOINING ME NOW, GREAT
FUN, SANDRA SMITH, THE GREAT
SANDRA SMITH, COANCHOR OF
"AMERICA REPORTS."
>> THANK YOU, LARRY.
LARRY: THANK YOU, SANDRA.
I SURPRISED THE THING WASN’T
OVER HERE.
MAYBE IT WAS.
>> I CAN TURN.
LARRY: HERE WE ARE JUST US KIDS.
>> YOU’RE FIRED UP, LARRY.
LARRY: WELL, LOOK IT, THIS
STARTED EARLY IN THE MORNING BY
MY LIGHTS, PROBABLY NOT BY
YOURS.
ONE THING I WANTED TO ASK YOU
ABOUT THIS BUSINESS MONTHLY
EXPENSES AHEAD OF INCOME, LIVING
PAYCHECK TO PAYCHECK.
LESS THAN $50,000 A YEAR, ALMOST
30%.
IT HAS GONE UP 7%.
YOU’RE MOVING IN THE WRONG
DIRECTION.
EVEN PEOPLE IN THE 50 TO
100,000-DOLLAR RANGE, ANOTHER
3%.
THIS CAN’T BE A GOOD SIGN.
I DON’T RECALL THIS HAPPENING
BEFORE.
>> NO THAT IS WHY
"THE WALL STREET JOURNAL" THIS
MORNING HAS A PIECE, THE U.S.
CONSUMER STARTING FREAK OUT.
LARRY: RIGHT.
>> THEIR WARNING THE ENGINE OF
THE U.S. ECONOMY, U.S. CONSUMER
SPENDING IS STARTING TO SPUTTER.
YOU’RE SEEING IT FROM ALL
ANGLES.
YOU JUST PROVIDED SOME OF THEM.
FOR A WHILE, PEOPLE ARE SAYING
EVEN THOUGH THESE NUMBERS DON’T
LOOK BAD GOOD INFLATION IS
CONSUME IS STILL SPENDING.
SAVINGS BUILT UP DURING THE
PANDEMIC.
THOSE TOUT THE ECONOMY LIKE THE
CURRENT ADMINISTRATION, DIDN’T
TOUT THAT FACT THAT COULD BE
LENDING SUPPORT TO THE CONSUMER
WHAT WOULD NORMALLY BE A VERY
CHALLENGING TIME.
I THINK THERE ARE A LOT OF
HEADLINES OUT THERE THAT WOULD,
I FEEL LIKE SOME OF THESE
ECONOMISTS ARE BACKING OFF THE
RECESSION FORECASTS.
LARRY: REALLY?
>> THAT SHOCKS ME WHEN YOU HAVE
HOME PRICES SLIDING FOR A FIFTH
STRAIGHT MONTH.
INFLATION IS NOT GOING AWAY,
SAYS REUTERS.
THEN YOU’VE GOT THIS OUT OF
TOUCHED A ADMINISTRATION.
YOU CAN’T MAKE THIS UP.
HE GETS INTO AN EV, A HUMMER EV
THAT COSTS $80,000 A YEAR, I
WILL REMIND YOU THE AVERAGE
MEDIAN INCOME IN THIS COUNTRY IS
LESS THAN $60,000.
HE GETS IN THERE TOUT TAX
CREDITS THIS VEHICLE NOT EVEN --
LARRY: ELIGIBLE FOR TAX CREDITS.
DID YOU LIKE THE HUMMER OR THE
CORVETTE IN HIS GARAGE WITH
BOXES OF CLASSIFIED DOCUMENTS?
I WAS JUST KIDDING.
THAT WAS A JOKE.
I WOULD NEVER SAY THAT
SERIOUSLY.
>> THERE IS REASON TO BE
CONCERNED OBVIOUSLY.
I KNOW YOU’RE AN OPTIMIST.
LARRY: I AM.
>> YOU WILL ALWAYS FIND THE
BRIGHT SIDE OF EVERYTHING.
I KNOW A LOT OF FOLKS LISTENING
RIGHT NOW, THEY WANT TO FIND
GOOD NEWS OUT THERE.
BUT THE CONSUMER DOES NOT LOOK
HEALTHY RIGHT NOW.
LARRY: RIGHT.
>> THAT IS FAIR TO SAY.
THIS LIVING PAYCHECK TO
PAYCHECK, THE NUMBER OF PEOPLE
MAKING OVER $100,000 A YEAR,
THAT HAS GONE UP 9%.
5% OF THE COUNTRY IS MAKING OVER
$100,000 A YEAR LIVING PAYCHECK
TO PAYCHECK, THAT IS
GAME-CHANGER.
LARRY: CONSUMERS PULLING BACK,
BUSINESSES ARE PULLING BACK.
YOU HAVE TREMENDOUS LAYOFFS
BEING SCORED.
WE HAVEN’T SEEN IT YET IN THE
UNEMPLOYMENT RATE BUT I FEAR
THAT’S COMING.
PEOPLE ARE WORKING LESS.
HOURS WORKED COMING DOWN.
PRODUCTIVITY ALSO DECLINING.
>> WORK PSYCHOLOGY HAS CHANGED.
LARRY: IT IS ALL, JUST YOU KNOW,
IT JUST HAS A BAD FEEL TO IT AS
I SAID.
IT IS KIND OF LIKE YOU’RE
BUMPING ALONG LOWER.
YOU’RE LOSING ALTITUDE.
THERE IS RECESSION NOT SO FAR IF
YOU’RE FLYING IN THE AIRPLANE
METAPHOR WHICH I MAY HAVE
BUNGLED.
YOU KNOW WHAT I’M SAYING.
WE’RE LOSING ALTITUDE, HOW IS
THAT?
WE’RE LOSING ALTITUDE.
CAN I JUST MENTION THIS
INFRASTRUCTURE BUSINESS THAT
MR. BIDEN IS OUT SELLING?
>> SURE.
LARRY: HE IS HERE IN NEW YORK I
BELIEVE TODAY.
>> JUST DOWN THE STREET FROM THE
MIGRANT CRISIS IN NEW YORK BUT
NOT MAKING A STOP THERE.
LARRY: RIGHT.
NO STOP THERE.
>> 30 BLOCKS AWAY.
LARRY: HERE’S THE DEAL, THAT
BILL WHICH WAS PASSED IN 2021,
RIGHT, IT WAS SUMMER OF 21,
TRILLION DOLLARS PLUS,
PROBABLY5% -- 75% WAS GREEN NEW
DEAL.
>> LOOK WHERE WE ARE TODAY.
LARRY: HERE IS WHAT ANNOYS ME,
THAT BILL HAD NO PERMITTING
REFORMS AND BIDEN’S OWN
AGENCIES, SANDRA, ARE RULING OUT
NEW PROJECTS, NEW ROADS, NEW
LANES TO SOLVE TRAFFIC PROBLEMS,
EVEN IF EVs ARE THE TRAFFIC
AND SO FORTH AND SO ON.
SO THERE IS A FEW VISIBLE
PROJECTS BUT THEY NEVER GOT BACK
INTO THE NEPA REFORMS WHERE TWO
YEARS WOULD BE THE ABSOLUTE
LIMIT.
THEY’RE CLOSING DOWN PERMITS,
NOT OPENING PERMITS.
NOT JUST TALKING ABOUT OIL AND
GAS.
I’M TALKING ABOUT INFRASTRUCTURE
AND, THIS IS NOT GOOD.
>> WHAT COULD GO WRONG?
LARRY: THIS IS PHONY STUFF.
THIS WILL NOT COME HOME.
THIS WILL NOT STIMULATE
ANYTHING.
WE WILL NOT GET DONE FOR A
TRILLION DOLLARS WHAT TAXPAYERS
WERE PROMISED TO GET DONE.
>> INITIAL POINT YOU MADE IN THE
OPENING RIFF.
THE GOVERNMENT NEEDS TO GET OUT
OF THE WAY.
LARRY: YES.
>> MORE AND MORE PEOPLE, MORE
AND MORE AMERICANS ARE ON TO
THAT.
DID IT SURPRISE YOU THAT TOPS
THE ECONOMY NOW?
THAT IT TOPS INFLATION?
IT TOPS THE BORDER CRISIS?
THAT MORE PEOPLE ARE CONCERNED
ABOUT THE GOVERNMENT, BIG
GOVERNMENT IN THEIR LIVES?
I MEAN THAT IS A LOT OF PEOPLE
WHO ARE ACKNOWLEDGING THAT
GOVERNMENT POLICIES ARE MAKING
SITUATIONS THAT ARE FIXABLE IN
THIS COUNTRY.
NOT ONLY NOT FIXING THEM.
THEY’RE MAKING THEM WORSE.
LARRY: WHAT IS THE MATTER WITH
FREE ENTERPRISE?
I KNOW I’M OUT OF FAVOR.
THIS ADMINISTRATION, FREE
ENTERPRISE COULD REALLY HELP
THESE GUYS.
I’M LOOKING --
>> I SEE YOU DID YOUR HOMEWORK.
LARRY: JUST SKIMMING THROUGH,
GROCERIES UP 11.8%, RENTS UP
8.3%.
I THINK RENTS ARE SOFTENING.
GASOLINE IS DOWN YEAR TO YEAR
BUT WAY UP FROM WHERE IT WAS IN
2021.
AIRLINE FARES UP 28 1/2%.
NEW CARS UP 6%.
OLD CARS DOWN 9%.
ELECTRICITY, SANDRA UP 14%.
IN OTHER WORDS, MY POINT IS,
THIS IS A RECESSION OR LOOKS
LIKE A RECESSION THAT WAS
SPAWNED BY HIGH INFLATION.
AND THAT WAS THE BACK BREAKER
OF, WHAT WAS THE STRONG ECONOMY,
EVEN COMING OUT OF COVID.
I DARE --
>> IT IS UNSUSTAINABLE.
UNSUSTAINABLE.
LARRY:
>> YOU CAN’T DO THAT.
>> COCKTAIL CONVERSATION,
ANYBODY LISTENING TO THIS FROM A
NEIGHBOR, FRIEND, WORK
COLLEAGUE, UP OPEN ELECTRICITY
BILLS THIS MONTH ARE
EYE-POPPING, SHOCKING.
TAKE AVERAGE AMERICAN FAMILY IN
THIS COUNTRY TRYING TO SURVIVE
THE COLD WINTER WITH ELECTRIC
BILLS SKY-HIGH, LET ALONE FUEL
PRICES GONE SKY-HIGH.
IT IS UNSUSTAINABLE.
WHEN YOU DON’T HAVE WAGE GROWTH
TO KEEP UP WITH THAT, OBVIOUSLY
WITH NEGATIVE WAGE GROWTH.
LARRY: REAL WAGES DOWN,
BASICALLY 21 STRAIGHT MONTHS.
>> YOU KNOW WHAT WE’RE HEARING
FROM THE BIDEN TEAM?
BIDEN CAMPAIGN IS TELLING THE
PRESIDENT TO LEAN IN ON THE
ECONOMY AND HIS PRESIDENTIAL RUN
FOR 2024.
HOW DO YOU DO THAT?
LARRY: WELL --
>> DID YOU SEE WHAT PAUL KRUGMAN
HAD TO SAY ABOUT THIS?
I WELL LOOK LIKE YOU SHUFFLING
THROUGH MY PAPERS.
HE BLEW MY MIND, PAUL KRUGMAN
ASKED THE QUESTION IN
"NEW YORK TIMES" OPINION SECTION
TODAY WILL AMERICANS EVEN NOTICE
THE IMPROVING ECONOMY?
HE GOES ON TO LAMENT THAT NOT
ENOUGH PEOPLE ARE READING
THROUGH THE ACADEMIC PAPERS,
LENGTHY ESSAYS HOW THINGS WILL
REALLY GET BETTER WITH THESE
POLICIES.
LARRY: I LOVE THAT.
THE ACADEMIC PAPERS.
THAT’S THE KEY.
>> HE SAYS THAT THE NEGATIVE
OUTLOOK ON THE AMERICAN ECONOMY
RIGHT NOW IS DUE TO PUBLIC
PERCEPTION.
IT IS NOT ECONOMIC REALITY IN
THIS COUNTRY.
I AM NOT MAKING THIS UP.
THIS IS THE "NEW YORK TIMES"
OPINION PIECE.
LARRY: DO YOU THINK HE HAS A GAS
BURNING STOVE?
>> HERE IT IS.
HERE IT IS.
LARRY: DOES HE HAVE A GAS
BURNING STOVE.
>> 100% GUARRANTY.
MOST PEOPLE DON’T READ LONG
FORM, DATA DRIVEN ESSAYS ON THE
ECONOMIC OUTLOOK.
THEIR SENSE OF THE ECONOMY IS
BELIEVED TO BE SHAPED BY
SNIPPETS THEY READ OR HEAR.
HOW MUCH MORE CAN YOU TALK DOWN
TO THE AMERICAN CONSUMER.
LARRY: HOW ABOUT IN YOUR GROCERY
BASKET AT THE --
>> AMEN.
PEOPLE FEEL IT EVERY DAY,
SANDRA SMITH, BEST OF THE BEST.
CATCH SANDRA WEEKDAYS, 1:00 P.M.
EASTERN ON FOX NEWS.
>> DON’T WORRY ABOUT IT.
IT IS JUST THE HEADLINES.
THE ECONOMY IS FINE.
LARRY: DO THEY NEED TO READ MORE
ACADEMIC PAPERS?
SNORE.
>> CAN’T MAKE THAT UP.
LARRY: SANDRA CO-HOSTS WITH MY
FRIEND JOHN ROBERTS.
WE NEVER REALLY PUT THAT IN.