♪.
LARRY: OKAY.
HANG ON.
I’VE GOT THE EASIEST ASSIGNMENT
POSSIBLE.
LET US BALANCE THE BUDGET IN THE
NEXT SIX MINUTES WITH MY DEAR
FRIEND MICK MULVANEY.
FORMER DIRECTOR OF OMB, FORMER
WHITE HOUSE CHIEF OF STAFF.
MICK, WELCOME BACK.
THIS IS EASY.
COME ON, FOR YOU, THIS IS A
PIECE OF CAKE BUT I WILL JUST
POSIT THIS AT THE BEGINNING, WE
WILL NOT END THE INFLATION IF WE
KEEP SPENDING AND BORROWING THE
WHICH WE HAVE BEEN.
OF COURSE THAT PUTS THE FEDERAL
RESERVE IN A VERY COMPROMISING
POSITION AND THEY AIN’T DONE
SUCH A GOOD JOB EITHER.
SO COME ON, LET’S BALANCE THE
BUDGET.
>> IT IS EASY.
ALL YOU HAVE TO DO IS CUT
FOREIGN AID AND NOT PAY
CONGRESS.
LARRY: I LOVE THAT.
>> I USED TO GET THOSE EMAILS.
IF WE CUT FOREIGN AID TO ZERO WE
COULD BALANCE THE BUDGET.
IF YOU CUT THE DEFENSE
DEPARTMENT TO ZERO YOU COULDN’T
BALANCE THE BUDGET.
YOU KNOW THE NUMBERS ARE GETTING
BIGGER AND INTEREST CARRYING ON
THE DEBT OF $30 TRILLION.
YOU TALKED ABOUT MAYBE INTEREST
RATES BO FIVE TO 6%.
THAT IS $1.8 TRILLION EVENTUALLY
ANNUAL BASIS ON JUST THE
INTEREST ALONE.
IT IS HARD, IT REALLY IS.
THERE ARE THINGS WE COULD BE
DOING.
WE COULD BE DOING FIXING
MEDICARE AND SOCIAL SECURITY
WHICH ARE RUNNING OUT OF MONEY.
BUT INSTEAD WHAT WASHINGTON IS
DOING MAKING MORE MANDATORY
SPENDING.
WHAT IS MANDATORY SPENDING?
THAT IS AUTOMATIC SPENDING EVERY
SINGLE YEAR.
WHEN YOU AND I WORKED ON THE
BUDGET TOGETHER, THE BUDGET WAS
$1.2 TRILLION BUT THE GOVERNMENT
SPENT FOUR.
THAT OTHER $2.8 TRILLION WAS IN
MANDATORY SPENDING.
IT IS REALLY, REALLY HARD.
THE POLITICAL WILL PROBABLY
ISN’T THERE.
IF THERE IS A SILVER LINING,
LARRY, TO INFLATION, IS THAT
FINALLY, AFTER 20 YEARS OF FOLKS
LIKE YOU AND ME SAYING THERE
WOULD BE NEGATIVE IMPACTS IF WE
KEPT SPENDING MONEY LIKE THIS,
PEOPLE ARE STARTING TO SEE
NEGATIVE IMPACTS OF THIS.
ONE VOTERS DECIDE THEY WANT A
BALANCED BUDGET POLITICIANS WILL
CARE ABOUT IT.
LARRY: THAT IS THE THING.
YOU HAVE AN OPPORTUNITY WITH
INFLATION RAGING.
A LOT OF IT IS BAD FEDERAL
RESERVE POLICY, A LOT IS BAD
FEDERAL SPENDING POLICY, WHICH
TO SOME EXTENT FORCES THE FED’S
HAND.
YOU HAVE ALL THESE SO-CALLED
SMALL ENTITLEMENTS, WELFARE
RELATED, FOOD STAMPS, RELATED,
HOUSING SUBSIDIES, CHILD
SUBSIDIES, SO FORTH, THEY HAVE
GROWN WAY TOO MUCH.
THERE IS NO WORK REQUIREMENTS
ATTACHED TO ANY OF THEM.
THE MAJOR REDUCTIONS AND TOUGHER
RULEMAKING THERE.
DISCRETIONARY SPENDING,
SO-CALLED, OUTSIDE OF THE
DEFENSE BUDGET I DON’T WANT TO
CUT DEFENSE.
I WANT TO CUT ALL THESE
EXTRANEOUS DISCRETIONARY POINTS.
YOU COULD PUT ON STRICT
PENALTIES LIKE GRAMM-RUDMAN.
WE TALKED ABOUT GRAM -- WE HAD
OUR FORMER BOSS ON TO THE
GRAMM-RUDMAN SEQUESTRATION FOR
ABOUT 10 DAYS.
HE BACKED OFF IT.
THOSE ARE THINGS THAT COULD BE
DONE.
MICK, WE COULD GROW THE ECONOMY
AT 4% A YEAR WITH LOWER TAXES
AND REGULATIONS.
I MEAN YOU KNOW --
>> NOT ONLY IS THE GOVERNMENT
BRINGING IN MORE RAW DOLLARS
THAN EVER BEFORE --
LARRY: RECORD REVENUES.
>> IT IS BRINGING IN A RECORD
PERCENTAGE.
20% OF GDP THIS YEAR.
LOOK WE DID SOMETHING I THINK IT
WAS RIGHT BEFORE YOU JOINED US
IN THE WHITE HOUSE.
UNDER THE TRUMP ADMINISTRATION
WE OFFERED THE MOST DRAMATIC
REDUCTION IN MANDATORY SPENDING
AND WE DID NOT TOUCH
SOCIAL SECURITY AND DID NOT
TOUCH MAIN LINE MEDICARE AND SO
FORTH BECAUSE THERE IS SO MUCH
OF THAT MANDATORY SPENDING THAT
PEOPLE DON’T KNOW B.
PART OF YOUR MEDICARE TAXES GO
OBVIOUSLY TO PAY FOR YOUR
MEDICAL BILLS.
THAT IS GOOD.
THAT IS WHAT IT IS THERE FOR.
DID YOU KNOW IT GOES TO PAY DOWN
TUITION COSTS FOR DOCTORS AND
HOSPITALS?
LARRY: NO.
>> THAT IS THE STUFF YOU CAN
FIND A LOT OF MONEY.
LARRY: GOOD START.
WORKFARE SHOULD BE RESTORED INTO
EVERY SINGLE ONE OF THOSE
PROGRAMS.
>> ABSOLUTELY.
LARRY: YOU WOULD GET MASSIVE
REDUCTIONS IN SPENDING.
>> YOU HAVE TO CHANGE THE
CULTURE.
NO ONE’S EVER LOST THEIR JOB IN
WASHINGTON BECAUSE THEY SPENT
TOO MUCH.
IN FACT I HEARD
MITCH McCONNELL SAY THAT TO
DONALD TRUMP ONE TIME.
LARRY: I KNOW, I THINK MITCH IS
WRONG ON THAT.
HERE IS YOUR EXCUSE.
THIS ELECTION IS ABOUT INFLATION
AND IT IS ABOUT RECESSION.
INFLATION, OKAY?
INFLATION.
SO TO CUT INFLATION THE PUBLIC
IS READY TO SEE A GREATLY
TRIMMED DOWN FEDERAL BUDGET.
THAT IS ALL.
>> INFLATION.
TOO MUCH MONEY CHASING TOO FEW
GOODS.
LARRY: RIGHT.
>> HOW DO YOU SOLVE IT?
YOU TAKE SOME MONEY OUT OF
SYSTEM OR YOU PUT MORE GOODS
INTO THE SYSTEM WHICH IS WHAT WE
DID IN THE TRUMP ADMINISTRATION.
WE HAD WAGE INCREASES AND WE HAD
GROWTH WITHOUT INFLATION BECAUSE
WE WERE MAKING MORE STUFF.
LARRY: UH-HUH.
>> YOU COULD ALSO DO BOTH THINGS
TAKE MONEY OUT AND PUT THINGS
IN.
LARRY: WHAT IS THE SOLUTION?
>> BIDEN ADMINISTRATION, FED IS
LOOKING TO DRIVE DEMAND DOWN,
DEMAND DESTRUCTION IS WHAT A
RECESSION IS.
THEY SHOULD LOOK FOR WAYS TO GET
MORE STUFF INTO THE MARKETPLACE.
LARRY: BIDEN IS RAISING DEMAND
WITH MORE AND MORE SPENDING THAT
DOESN’T MAKE ANY SENSE AT ALL.
>> MAKING MORE STUFF, REGULATORY
CLIMATE IS MAKING HARD TO BRING
GOOD AND SERVICES HERE.
LARRY: WE’LL DONE IT, SLASH
MANDATORY SPENDING, RESTORE
WORKFARE, GROW THE ECONOMY 4% A
YEAR MINIMIZING TAXES
REGULATIONS.
MORE PENALTIES, SEQUESTRATION,
PHIL GRAMM SEQUESTRATION.