JACKIE.
>> JACKIE: EDWARD LAWRENCE,
THANK YOU FOR ALL THAT.
FOR MORE WELCOME UTAH
CONGRESSMAN JASON AND ECONOMIC
EXPERT CAROL ROTH.
JASON, LET’S START WITH YOU WITH
THE WALL STREET JOURNAL PIECE
WITH BIDEN’S STAGNATION SAYING
IT’S ARRIVED.
THE ADMINISTRATION WANTS TO CALL
THIS A TRANSITION.
THEY CAN CALL IT WHATEVER THEY
WANT TO CALL IT, BUT WE’VE GOT A
PULMOBY ROAD AHEAD.
>> WE DO, THEY’RE SELF-INFLICTED
WOUNDS AND THEY CHANGE THE
POLICY AND SPENT A RECORD AMOUNT
OF MONEY AND THEY WANT TO RAISE
TAXES AND HOW CAN THEY LITERALLY
TODAY GO BACK AND MAKE THE
ARGUMENT THEY NEED TO SPEND
MONEY THAT WILL FIGHT INFLATION
AND THEY’RE GOING TO RAISE
TAXES.
ARE YOU KIDDING ME?
THAT’S IN NO COOK BOOK ON HOW TO
DEAL WITH THE ECONOMY. ECONOMY.
>> JACKIE: THEY’RE GOOD AT
RENAMING THINGS AND CALLING
BUILD BACK BETTER INFLATION
REDUCTION ACT AND WE HAVE THE
FULL SCREEN BREAKING DOWN TO
$739 BILLION IN NEW TAXES,
$369 BILLION IN ENERGY AND
CLIMATE AND $69 BILLION IN
EXPANSION OF AFFORDABLE CARE
ACT.
CAROL ROTH, EXPLAIN HOW SPENDING
MORE WILL GET US OUT OF THE HOLE
BECAUSE I CAN’T FIGURE IT OUT.
>> I HAVE NO IDEA WHAT’S GOING
ON, JACKIE.
THE FED IS TRYING TO COOL DEMAND
WITH THEIR POLICIES ASK COOL
SPENDING ON THE CONSUMER SIDE,
ON THE BUSINESS SIDE, THEN AT
THE SAME TIME YOU HAVE THE
GOVERNMENT WHO WANTS TO COME OUT
AND SPEND ALL OF THIS MONEY.
THESE TWO THINGS ARE ENTIRELY IN
CONFLICT WITH EACH OTHER.
I AM PERSONALLY SICK OF THE
PEOPLE WHO HAVE BEEN WRONG ABOUT
EVERYTHING.
THEY’VE BEEN WRONG ABOUT MONEY
PRINTING, WRONG ABOUT CRIME,
THEY’VE BEEN WRONG ABOUT
ANYTHING THAT YOU CAN THINK OF.
NOW ALL THE SUDDEN THEY’VE GOT
THE SOLUTION AND IT’S MORE
SPENDING, WE ALL KNOW WHAT THAT
MEANS.
>> YEAH, IT’S INTERESTING
BECAUSE WE HAVE A SOUND BYTE,
JASON, FROM PRESIDENT OBAMA IN
2009 TALKING ABOUT RAISING TAXES
WHEN THE ECONOMIC CLIMATE IS NOT
RIPE FOR IT.
LISTEN TO THAT.
>> LAST THING YOU WANT TO DO IS
RAISE TAXES IN THE MIDDLE OF A
RECESSION BECAUSE THAT WOULD
JUST SUCK UP -- TAKE MORE DEMAND
OUT OF THE ECONOMY AND PUT
BUSINESSES IN A FURTHER HOLE.
>> REMEMBER IN THE EARLY ’80S,
WE HAD PAUL VOLKER AND HE TRIED
TO RAISE INTEREST RATES AND
RONALD REAGAN CUT TAXES BECAUSE
THAT ENDS UP BEING A BIT OF A
BALANCE TO KIND OF GET THE
BETTER LANDING THAT YOU WANT.
EVEN PRESIDENT OBAMA AGREES.
YOUR THOUGHTS.
>> AT THIS POINT, WE’RE SPENDING
ALMOST 25% OF THE GDP IS SPENT
BY THE FEDERAL GOVERNMENT.
IT’S AN ABSURD AMOUNT OF MONEY
AND THE INTEREST ON THE DEBT IS
ANOTHER PART OF THE STORY WE
HAVEN’T TOLD.
WE’RE GOING TO BE SPENDING ABOUT
$1 BILLION A DAY ON INTEREST
SERVICING OUR NATIONAL DEBT.
WE DON’T GET ANYTHING FOR THAT,
BUT IT COSTS THE PERSON MEME A
LOT OF MONEY AND RISING INTEREST
RATES ONLY GOING HIGHER >>
JACKIE: THEIR WAY OF LOOKING AT
THIS, CAROL, IS LONG TERM
CALCULATIONS THAT THIS WILL
REDUCE THE DEFICIT AND MANY
PEOPLE QUESTION THAT AND HAVING
SAID THAT, LET’S SWITCH GEARS
FOR A MOMENT BECAUSE IT’S NOT
THE ADMINISTRATION IN DENIAL BUT
THE MEDIA ALSO.
WATCH THIS.
>> INFLATION REDUCTION ACT
CLIMATE DEAL WAS ANNOUNCED
YESTERDAY, GENERALLY GOOD FOR A
WHOLE BUNCH OF REASONS.
>> THERE IS SOME GOOD NEWS
TONIGHT FOR PRESIDENT BIDEN.
I KNOW, WE’VE NOT BEEN HEARING
THAT MUCH.
>> WE’RE AT A SKILLFULLY TITLED
INFLATION REDUCTION ACT OR BUILD
BACK BETTER 2.0, WOULD DO A LOT
OF GOOD FOR THE COUNTRY.
IT IS THE CHERRY ON TOP OF
WHAT’S BEEN AN OVERALL GOOD WEEK
FOR THE DEMOCRATIC PARTY, THE
PRESIDENT, AND THE COUNTRY. COUN
>> JACKIE: WOW, THE CHERRY ON
TOP OF THE SUNDAY, CAROL.
MANY PEOPLE WOULD SAY NOT SO
FAST, JOY.
>> YEAH, IT’S LIKE PUTTING AN
OLIVE ON TOP OF ICE CREAM
SUNDAY.
SOUNDS REALLY GROSS TO ME.
THEY’VE GOT NOTHING TO TALK
ABOUT.
THIS HAS BEEN AN ECONOMIC
DISASTER AND THERE’S NOTHING YOU
CAN SAY ABOUT YOUR LIFE THAT’S
BEEN BETTER UNDER THE BIDEN
ADMINISTRATION THAN IT WAS
BEFORE HE GOT INTO OFFICE.
THERE’S ANYTHING THAT THEY CAN
CLING TO AND LET’S BE
HONEST, THE DEMOCRATS LOVE
SPENDING.
THEY HAVE SORT OF A DISCONNECT
WITH MATH AND REALITY AND THAT
SOUNDS LIKE AN AMAZING THING AND
GET TO PUSH ALL THEIR FANTASY
AGENDAS AND I’M NOT SURPRISED TO
HEAR HIS MEDIA CHEERLEADERS
WOULD BE SAYING THIS IS A
FANTASTIC THING BECAUSE THEY
DON’T EITHER UNDERSTAND OR CARE
ABOUT THE CONSEQUENCES.
>> JACKIE: YEAH, WE’VE GOT A
FULL SCREEN FROM BLOOMBURG
TALKING ABOUT CREDIT CARD DEBT
AND I’VE BEEN WATCHING THIS
CLOSELY, JASON, BECAUSE I WORRY
ABOUT AMERICANS WITH THE HIGHER
GAS PRICES AND GROCERY PRICES,
AND HIGHER PENT UP DEMAND FROM
THE PANDEMIC AND WANT TO GET OUT
WITH THE FAMILY AS WELL.
I WORRY THEY’RE PUTTING THAT ON
THEIR CREDIT CARD AND IN FACT
MAST ERE CARD IS SAYING CREDIT
CARD DEBT IS RISING IN THE
COUNTRY.
AT THE SAME TIME YOU’VE GOT
JANET YELLEN AND SHE’S SAYING,
YOU KNOW, THIS IS ALL ABOUT
SEMANTICS.
>> WE SHOULD AVOID SEMANTIC
BATTLE.
I’VE TRIED TO DO THAT IN MY
REMARKS TODAY.
WHEN YOU SAY THAT AMERICANS ARE
VERY CONCERNED ABOUT THE
ECONOMY, I THINK THEIR BIGGEST
CONCERN IS WITH INFLATION AND
HIGH PRICES THAT THEY FEEL THEY
CAN’T AFFORD TO PUT GAS IN THEIR
GAS TANK AND PEOPLE ARE WORRIED
ABOUT THEIR RETIREMENT SAVINGS
AND WHETHER OR NOT THEY’LL HAVE
ENOUGH TO RETIRE.
NOW, SOMETIMES PEOPLE USE THE
WORD RECESSION TO REFER TO DEBT,
THAT’S REALLY ABOUT INFLATION.
>> JACKIE: ALL RIGHT, PART OF
THAT MADE SENSE.
PART OF IT WAS, YOU KNOW, KIND
OF CIRCULAR LOGIC TO FOLLOW.
SHE GETS THE FACT THAT PEOPLE
ARE HURTING RIGHT NOW BUT WE’RE
ALL DISAGREEING ABOUT WHAT WE
SHOULD CALL THIS.
>> LOOK, PEOPLE’S REAL WAGES
HAVE GONE DOWN.
I MEAN, THIS IS THE FUNDAMENTAL
PROBLEM IS YOU MAY HAVE GOTTEN A
RAISE AT WORK BUT INFLATION IS
OUTPACING YOU AND YOU GO TO THE
GAS TANK AND, YOU KNOW, I HAPPEN
TO DRIVE AN F150, IT COSTS MORE
THAN $100 TO FILL THAT TANK.
YOU CAN’T JUST KEEP DOING THAT.
>> YEAH, AND GAS PRICES ARE
STILL $2 ABOVE WHERE THEY WERE
WHEN BIDEN CAME INTO OFFICE AND
SO PEOPLE ARE JUST FEELING THAT
PAIN AND, CAROL, WHEN IT COMES
TO THE PAIN THAT PEOPLE ARE
FEELING, YOU KNOW, WHEN
PRESIDENT TRUMP WAS IN OFFICE,
SO MANY TIMES SURVEYS WOULD
INDICATE, THE POLLS WOULD
INDICATE PEOPLE FELT OPTIMISTIC
ABOUT THE FUTURE, THEY FELT
OPTIMISTIC ABOUT THE ECONOMY,
THEY THOUGHT THEIR FAMILY WAS ON
THE RIGHT TRACK; RIGHT.
THESE ARE THE THINGS THAT MATTER
TO PEOPLE.
THE KITCHEN TABLE ITEMS, AND
RIGHT NOW YOU’VE GOT SO MANY
PEOPLE SAYING MORE THAN 80% THEY
DON’T THINK THIS COUNTRY IS
HEADED IN THE RIGHT DIRECTION.
>> I THOUGHT THEY WERE CONCERNED
ABOUT MEAN TWEETS, JACKIE.
THAT’S WHAT I’VE BEEN RELIABLY
TOLD AND THE ADULTS ARE BACK IN
CHARGE.
IT’S VERY EXPENSIVE TO HAVE THE
ADULTS BACK IN CHARGE AND PEOPLE
AREN’T SEEING A LOT OF OPTIMISM
BECAUSE THERE’S NO POLICIES OUT
THERE THAT MAKE IT CLEAR THAT
ANYBODY IS SERIOUS ABOUT
ECONOMIC SECURITY, WHETHER IT’S
ENERGY, WHETHER IT’S CHANGING
JOBS OR ANYTHING ABOUT BRINGING
DOWN INFLATION.
THERE’S NO CREDIBLE POLICY
THAT’S MOVING THINGS IN THAT
OPTIMISTIC DIRECTION.
ALL ANYBODY SEES IS THAT LIGHT
AT THE END OF THE TUNNEL IS A
TRAIN COMING IN THE OTHER
DIRECTION AND THEY KNOW THEY’RE
GOING TO HAVE TO PAY FOR IT. IT.
>> JACKIE: YEAH, AND WITH
RESPECT TO JOBS, THE DEMOCRATS,
JASON, THEY’LL HANG THEIR HAT ON
THE FACT THE UNEMPLOYMENT RATE
IS LOW RIGHT NOW AND WHAT SEEMS
TO BE HAPPENING IS PEOPLE HAVE
DROPPED OUT OF THE LABOR FORCE;
RIGHT?
THAT LABOR PARTICIPATION NUMBER
IS DOWN AND EVERYONE LOOKING,
THERE’S TWO JOBS OPEN.
WHAT I THINK IS HAPPENING HERE
TO YOUR POINT ABOUT REAL WAGES
IS PEOPLE SIT BACK AND SAY, MY
WAGES AREN’T GOING UP ENOUGH
FAST ENOUGH TO KEEP UP WITH THE
INFLATION.
WHY SHOULD I BOTHER GOING TO
WORK?
IF I WAIT LONG ENOUGH, THEY’LL
SIGN ANOTHER BILL LIKE THEY’RE
TRYING TO DO NOW CALLING IT
INFLATION REDUCTION ACT, AND
I’LL GET A BENEFIT FROM THAT.
WHY BOTHER GOING?
?
>> THE BENEFITS FAR RICHER THAN
GOING BACK TO WORK.
I THINK YOU’RE RIGHT.
I THINK THE LABOR PARTICIPATION
RATE, THAT’S A SCARY NUMBER.
WHEN YOU HAVE SUCH LOW
PARTICIPATION IN THE WORK FORCE,
PEOPLE SIT BACK AND SAY I’LL
TAKE IT ON THE GOVERNMENT’S DIME
AND THAT’S HAPPENING IN MASS.
IT’S NOT A VERY SMALL ISOLATED
NUMBER.
>> JACKIE: YEAH, I THINK WHAT
WILL END UP HAPPENING AS WE GO
INTO THE FALL AS PEOPLE PULL
BACK EVEN MORE, YOU’LL SEE THE
JOB MARKET START TO SLOW, YOU
START SEEING MORE AND MORE
COMPANIES LAYING OFF, AND THAT
ADDS TWO SIDES TO THIS WHERE
PEOPLE WILL BE STRAINED AND SO
WE HAVE TO BRACE FOR THAT.
WE’LL BE WATCHING VERY CLOSELY