ACROSS THE BOARD BUT NOT THAT
MUCH.
LET’S GET RIGHT AT IT.
LARRY KUDLOW, DIRECTOR OF
ECONOMIC COUNCIL AT THE WHITE
HOUSE.
LARRY, NEGATIVES THIS MORNING.
MORE THAN 1.1 MILLION JOBLESS
CLAIMS, THE FED SAYS THE VIRUS
IS HURTING GROWTH, BACK TO
SCHOOL AND COLLEGES ARE BUST FOR
IN-CLASSROOM LEARNING, PARENTS
ARE STUCK AT HOME.
WHY DON’T YOU GIVE US AN UPDATE
ON THE STATUS OF V-SHAPE
RECOVERY.
>> LARRY: OKAY, THANKS, I’M NOT
SUPPOSED TO TALK ABOUT
UNEMPLOYMENT UNTIL 9:30 BUT I
WILL SAY THIS QUICKLY, THE
FOUR-WEEK MOVING AVERAGE OF
INITIAL CLAIMS IS STILL COMING
DOWN, IT’S A VOLATILE SERIES.
WE CREATED OVER 9 MILLION JOBS,
WE THE, ECONOMY, THE AMERICAN
PEOPLE IN THE LAST 3 MONTHS AND
ALL THE SIGNALS I THINK ARE FOR
STRONG V-SHAPE RECOVERY.
INCIDENTALLY ON THE CLAIM
NUMBERS, ONE MORE QUICKIE,
CONTINUING CLAIMS, CONTINUING ON
UNEMPLOYMENT FELL FOR OVER
600,000.
I DON’T THINK IT’S A BAD NUMBER
AT ALL.
STUART: ASIDE FROM THE JOBLESS
NUMBER, IT’S NOT A VIGOROUS
DYNAMIC, FLAT-OUT, STRAIGHT UP
RECOVERY IS IT?
>> LARRY: AFTER PANDEMIC WHICH
WAS A BONE CRUSHER YOU HAVE
SERIES OF INDICATORS THAT ARE
BOOMING, I MEAN, THEY ARE JUST
SOARING.
THE HOUSING SECTOR WHICH IS A
LEADING INDICATOR TO HAVE
ECONOMY, HOUSING PERMITS UP BY
40%, THEY’RE WAY ABOVE THE
FEBRUARY LEVEL BEFORE THE
PANDEMIC, HOME BUILDER SENTIMENT
IS AS STRONG AS IT’S BEEN IN 22
YEARS.
YOU’VE GOT A BOOM IN AUTOMOBILES
BOTH PRODUCTION AND SALES AND
HERE IS A KEY POINT, INVENTORIES
COLLAPSED IN THAT SECOND
QUARTER, THE CONTRACTION
QUARTER.
SO YOU HAVE TO REBUILD
INVENTORIES TO SATISFY CONSUMER
DEMAND ON CARS AND OTHER THINGS,
RETAILING, I MEAN, YOU SAW THE
NUMBERS FROM LOWES AND HOME
DEPOT AND TARGET YESTERDAY AND
SO FORTH.
RETAILING IS VERY STRONG.
THAT THING IS ABOVE ITS FEBRUARY
LEVELS.
IT’S HARD FOR ME TO SEE, LOOK, I
UNDERSTAND PERFECTLY WELL THE
CONCERN ABOUT THE VIRUS.
I UNDERSTAND THAT, I GET THAT.
THE GOOD NEWS IS NEW CASES HAVE
DROPPED QUITE A BIT, ABOUT 35%
FROM THE MID-JULY HIGHS, BUT
FATALITIES FLATTENING OUT AND
CURVING DOWN.
I UNDERSTAND THAT RISK, I GET
THAT AND ALSO UNDERSTAND THAT
STILL WAY TOO MANY PEOPLE ARE
NOT WORKING.
THAT’S FAIR ENOUGH, BUT I WILL
SAY THIS, THE ONLY RETURNS FOR
MAY, JUNE AND JULY HAVE BEEN
REALLY KIND OF SPECTACULAR, SO
I’VE GOT MY FINGERS CROSSED THAT
WE ARE IN A SELF-SUSTAINING
RECOVERY.
STUART: OKAY, FINGERS CROSSED.
WELL, DO WE NEED ANOTHER VIRUS
AID PACKAGE?
WE UNDERSTAND THAT THE DEMOCRATS
ARE THINKING ABOUT PUTTING IT TO
THE VOTE NEXT WEEK, DO WE NEED
MORE MONEY PUMPED INTO THE
ECONOMY RIGHT NOW?
>> LARRY: WELL, LOOK, WE IS ADD
TARGETABLE SENSIBLE HELP, WE CAN
DO THAT.
WE CANNOT ADD 3 AND A HALF TO
4 TRILLION MORE WHICH WAS
DEMOCRATIC WISH LIST.
THAT’S NOT GOING TO WORK AT ALL.
WE’D LIKE SOME EXTRA MONEY TO
HELP THE SCHOOLS, THAT’S
IMPORTANT.
WE’D LIKE EXTRA MONEY TO HELP
HEALTH CARE, COVID-RELATED
HEALTHCARE AND OFFERED TO PUT
MORE MONEY TO THE POST OFFICE
ALTHOUGH I DON’T THINK THEY
REALLY NEED IT.
THEY GOT 10 BILLION IN CASH A
FEW MONTHS AGO.
THAT’S OKAY.
OUR MANTRA IS KIDS AND JOBS.
DON’T FORGET REGARDING FISCAL
STIMULUS, THE PRESIDENT’S
BRILLIANT IDEA TO DEFER THE
PAYROLL TAX FOR QUITE SOME TIME.
I THINK IT WILL ULTIMATELY BE
FORGIVEN IF HE’S REELECTED.
THAT’S HIS PLEDGE.
THAT’S WAGE INCREASE FOR OVER
140 MILLION WORKING AMERICANS
WHO ARE HEROS AND HAD THE
OPPORTUNITY DURING THE PANDEMIC,
WE ARE GOING TO REWARDED THEM.
WE ALSO ARE GOING TO INCREASE --
WE’VE OFFERED TO INCREASE
ASSISTANCE FOR THOSE WHO ARE
UNEMPLOYED.
A GENEROUS PACKAGE WHICH WILL
REDUCE THE FEAR OF DISINCENTIVES
TO WORK.
IT’S $300 FROM FEDERAL, MAYBE AN
EXTRA $100 FROM THE STATES BUT
THEY DON’T HAVE TO MATCH.
IF THEY PUT THE MONEY IN, WE
WILL HELP THEM ANYWAY.
THESE ARE THINGS THAT ARE
TARGET.
WE WILL KEEP THE EVICTION
MORATORIUM ON AND KEEP THE
STUDENTS LINE DEFERRAL INTEREST
FREE, SO, YEAH, WE ARE ADDING
SOME -- SOME ON THE TAX CUTS
SIDE, SOME ON THE SPENDING SIDE.
WE DO NOT NEED ANOTHER
$4 TRILLION.
STUART: WELL, IF THEY CAME TO
YOU, LOOK, WE HAVE A DEAL HERE
FOR ANOTHER TRILLION, I’M JUST
PICKING A NUMBER.
ANOTHER TRILLION, WOULD YOU AND
THE PRESIDENT TURN IT DOWN?
>> LARRY: I DON’T THINK SO.
IT DEPENDS WHAT’S IN -- STUART:
POLITICAL ANGLE TO THIS, LARRY.
I DON’T MEAN TO INTERRUPT YOU,
SORRY.
THERE’S A POLITICAL ANGLE TO
THIS WITH TEN WEEKS TILL THE
ELECTION.
I CAN’T IMAGINE A POLITICIAN
TURNING DOWN A CHUNK OF MONEY,
CHUNKED INTO THE ECONOMY,
CHUNKED INTO VOTERS RIGHT BEFORE
AN ELECTION.
I DON’T SEE HOW YOU COULD TURN
IT DOWN.
>> LARRY: WELL, AGAIN THROUGH
COMBINATION THROUGH SENSIBLE
TARGETING INCREASES AND TAX
CUTS, RIGHT?
TAX CUTS, LET’S NOT FORGET THAT.
IN FACT, THE PRESIDENT HAS
TALKED ABOUT CUTTING THE INCOME
TAX IN HIS SECOND PERM.
STUART: THAT’S SECOND TERM.
>> LARRY: HE’S TALKING ABOUT
MAKING CORPORATIONS IMMEDIATE
PERMANENT.
VERY POWERFUL INCENTIVES FOR THE
ECONOMY, BUT JUST TO THROW
ANOTHER $4 TRILLION WILLY NILLY
ON DEMOCRATIC LIST, SECRETARY
MNUCHIN SAID IF IT’S SENSIBLE
AND IF IT WORKS AND IF IT’S
TARGETED, YES, WE WOULD PROBABLY
BE FAVORABLE BUT WE DON’T HAVE
THE DETAILS YET AND RIGHT NOW
THE TALKS ARE RATHER STALLED.
STUART: WHAT DO YOU MAKE OF THE
DEMOCRAT CONVENTION AND JOE
BIDEN AND HIS CALLS FOR SHARPLY
HIGHER TAXES, PRETTY MUCH ACROSS
THE BOARD.
WHAT DO YOU THINK HAPPENS TO THE
ECONOMY AND RECOVERY IF ANY OF
THOSE TAX INCREASES ARE IMPOSED?
>> LARRY: YEAH, WELL, LET ME ASK
YOU THIS, YOU’RE COMING OUT OF A
TERRIBLE PANDEMIC CONTRACTION,
TERRIBLE, ALL RIGHT, TRAGEDIES
ALMOST EVERYWHERE, WOULD YOU
STILL, VARNEY, SUGGEST THAT WE
SHOULD BE TAKING MONEY FROM
INDIVIDUAL MEN AND WOMEN WHO ARE
WORKING OR WANT TO GO BACK TO
WORK?
I MEAN, THAT’S WHAT A TAX HIKE
IS.
IT’S TAKING MONEY AND PICKING
PEOPLE’S POCKET AND THE OLD
MANTRA FROM THE DEMOCRATS IT’S
RICH PEOPLE.
NO, IT’S NOT.
THEY WILL GO ACROSS THE BOARD.
YOU NAME IT, THEY WILL TAX IT.
THEY WILL NEVER GET THE NUMBERS
THEY THINK FROM TAXING
SUCCESSFUL EARNERS, IT NEVER
HAPPENS.
IT’S THE MIDDLE-CLASS FOLKS THAT
WILL GET THE TAX HIKE AS THEY
ALWAYS DO.
PRESIDENT TRUMP HAS A MIDDLE-TAX
PAYROLL TAX CUT TO INCREASE
WAGES.
I MEAN, WHY WOULD YOU -- I DON’T
CARE -- WHAT’S YOUR PHILOSOPHY,
WE ARE DESPERATELY TRYING TO
CLAW OUR WAY BACK, THE NUMBERS
ARE GOOD, THE EARLY NUMBERS LOOK
GOOD, WHY WOULD YOU TAKE MONEY
OUT OF PEOPLE’S POCKETS, I WOULD
LIKE TO PEOPLE TO HAVE MORE
AFTER TAX INCOME, NOT LESS.
I DON’T GET IT.
STUART: BECAUSE IT’S NOT -- THIS
IS NOT ME TALKING.
I’M TRYING TO, YOU KNOW --
>> LARRY: I THOUGHT THAT WAS
YOUR PROPOSAL.
THAT WAS BIDEN.
STUART: STOP IT, PLEASE.
[LAUGHTER]
STUART: YESTERDAY APPLE WENT TO
A VALUATION OF $2 TRILLION.
AMAZON WENT UP WELL ABOVE $3,000
PER SHARE.
THE PEOPLE WHO RUN THOSE
COMPANIES REPRESENT THE VERY,
VERY WEALTHY PEOPLE OF AMERICA
AND THE LEFT IS SAYING, YOU’VE
GOT SO MUCH, YOU CAN GIVE UP A
LITTLE, WE WILL TAX YOU A BIT
MORE IN THE INTEREST OF
FAIRNESS, SO, AGAIN, A POLITICAL
ANGLE TO THIS WHICH IS VERY
ATTRACTIVE TO MANY AMERICANS.
IT’S NOT FAIR THE WAY THINGS ARE
AT THE MOMENT.
>> LARRY: THIS IS ALWAYS -- YOU
KNOW, I WAS HERE SEVERAL DECADES
AGO FOR REAGAN.
I HEARD THE SAME, ONLY RICH
PEOPLE GET TAX CUTS, SO REAGAN
SLASHED TAXES FROM 70% TO 28%,
OKAY, AND NOBODY COMPLAINED WHEN
WE HAD ONE OF THE GREATEST
ECONOMIC BOOMS IN THE HISTORY OF
THIS COUNTRY WHICH CREATED WELL
OVER 20 MILLION JOBS.
HERE IS PRESIDENT TRUMP’S STORY.
HE INHERITS THE WEAKEST RECOVERY
ON RECORD, UNEMPLOYMENT RATES,
INDUSTRIAL PRODUCTION TEETERING
ON THE EDGE OF RECESSION AND
PRESIDENT TRUMP COMES IN, LOWERS
TAXES ACROSS THE BOARD, SHARPLY
REDUCES BURDENSOME AND COSTLY
BUSINESS REGULATIONS
PARTICULARLY BUSINESS, UNLEASHES
ENERGY WHICH MR. BIDEN WANTS TO
TERMINATE FRACKING AND NATURAL
GAS AND FOSSIL FUELS AND SCORES
MAJOR TRADE DEALS IN NORTH
AMERICA AND CHINA AND ELSEWHERE
WHICH WILL HELP OUR
MANUFACTURING AND OUR FARM
PEOPLE AND JUST ABOUT EVERYBODY
ELSE, SO THE ECONOMY SOARS, THE
ECONOMY SOARS, OKAY.
LOWER TAXES, FAIR TRADE, GET THE
REGULATIONS OUT.
WE HAVE THE THE UNEMPLOYMENT
RATE DOWN WITH NO INFLATION.
GO DOWN THE LIST, BLACKS,
HISPANICS, ASIANS, WOMEN AND SO
FORTH, LOWEST UNEMPLOYMENT IN
HISTORY FOR THE MOST PART.
THAT’S WHY HIS POLICIES HAVE
WORKED.
DEMOCRATS WANT TO OVERTURN HIS
POLICIES AND HERE IS WHAT YOU’LL
GET, HERE IS WHAT IS AT STAKE,
TO VOTERS, AMERICANS OF ALL
STRIPES, I DON’T CARE WHAT PARTY
YOU’RE IN, COLOR OR ANYTHING, DO
YOU WANT A FUTURE ECONOMY WITH
PROSPERITY AND OPPORTUNITY AND
HEALTH OR DO YOU WANT TO GO BACK
TO A STAGNATE ECONOMY WHICH WILL
MAKE EVERYBODY WORSE OFF AND
LOWER LIVING STANDARDS AND FINAL
POINT, PRESIDENT TRUMP HAS SAID
ON DAY ONE AND THIS IS WHERE HE
COMPLETELY DIFFERS FROM OUR
FRIENDS ON THE OTHER SIDE OF THE
AISLE.
WE SHOULD AS AMERICANS, AS OUR
IDEAL, WE SHOULD REWARDED
SUCCESS, OKAY.
THOSE COMPANIES YOU CITED
WEREN’T EVEN AROUND, OKAY, 20,
30 YEARS AGO, WEREN’T EVEN
AROUND, HAVE CREATED HUNDREDS OF
THOUSANDS OF JOBS, HAVE REWARDED
THEIR SHAREHOLDERS IN THE STOCK
MARKET, HAVE REWARDED
STAKEHOLDERS IN THEIR COMMUNITY.
I DON’T WANT TO PUNISH THEM, I
WANT TO REWARDED THEM, BUT MOST
OF ALL, I WANT MORE PEOPLE TO
INVENT NEW COMPANIES AND NEW
TECHNOLOGIES TO INNOVATE, TO
BUILD UP, YOU CAN FAIL 3 OR 4
TIMES IN THIS COUNTRY BUT AS
LONG AS THE OPPORTUNITY IS
THERE, AS LONG AS THE
OPPORTUNITY IS THERE AND WE
REWARDED SUCCESS, WE WILL SEE A
FABULOUS COMEBACK.
YOU WILL SEE IT BEFORE THE YEAR
IS OVER, 20% PLUS GROWTH IN THE
THIRD AND FOURTH QUARTER.
STUART: RIGHT AT THE VERY END.
20% GROWTH.
>> LARRY: IN THE THIRD AND
FOURTH QUARTERS, YOU CAN SCORE
THAT AND WE ARE GOING TO HAVE A
BIG BANG YEAR NEXT YEAR AND THE
PRESIDENT PUTS IN HIS FREE
MARKET REWARDED SUCCESS POLICY.
STUART: YOU’RE A FORMER
JOURNALIST AND YOU BURIED THE
LEAD UNTIL THE LAST SECOND OF
THE INTERVIEW.
I’M SURPRISED.
>> LARRY: I WANT TO KEEP YOU ON
THE EDGE OF YOUR SEAT.
STUART: HAPPY BIRTHDAY, LARRY,
20TH, YOUR BIRTHDAY?
>> LARRY: YES, SIR.
I AM 73.
I AM 73 YEAR’S OLD.
I’M STILL STANDING AND I AM VERY
BLESSED, REALLY VERY BLESSED TO
GIVE SERVICE TO THE COUNTRY AND
MY WONDERFUL BRIDE AND THE STU