DAVID, MELISSA.
MELISSA: NO DOUBT THEY ARE FAR
APART ON EVERYTHING.
DAVID?
DAVID: HERE FOR HIS PERSPECTIVE,
MR., DOCTOR I SHOULD SAY,
DR. RON PAUL OF THE LIBERTY
REPORT.
DR. PAUL, GAIT TO SEE YOU.
WHAT DO YOU THINK OF THE
TARIFFS?
>> YOU KNOW WHAT I THINK.
A TARIFF IS A TAX.
I DON'T LIKE TAXES.
IT IS A BUNCH OF ECONOMIC
PLANNING.
I DON'T LIKE ECONOMIC PLANNING.
NOBODY SEEMS TO ASK WHERE DOES
THE PRESIDENT GETS POWER TO PUT
ON A TARIFF TO DO ALL THIS
MISCHIEF?
ECONOMIC PLANNING AND TOO MUCH
POWER IN THE HANDS OF A
PRESIDENT.
IF YOU DEFER AND TAKE IT AWAY IT
GOES TO THE WORLD TRADE
ORGANIZATION.
DAVID: WE DON'T WANT THAT.
BUREAUCRATS OVERSEAS.
BUREAUCRATS HERE ARE BAD ENOUGH.
THE CONSTITUTION DOES GIVE THE
POWER OF TARIFFS TO CONGRESS BUT
THAT WAS AMENDED OVER THE YEARS,
DECADES AGO.
PRESIDENT IN HIS OWN WORDS IS
VERY CLEAR, HE SAYS IT IS ABOUT
JOBS.
TREASURY SECRETARY STEVE MNUCHIN
WAS MAKING SAME CASE TO
SKEPTICAL MARIA BARTIROMO ON FBN
EARLIER TODAY.
LET'S JUST PLAY THE TAPE.
>> DO YOU WORRY WHILE YOU'RE
TRYING TO PROTECT HUNDREDS OF
THOUSANDS OF JOBS IN THE STEEL
INDUSTRY YOU'RE THREATENING
MILLIONS OF JOBS IN OTHER
INDUSTRIES?
>> THE PRESIDENT IS VERY FOCUSED
ON JOBS.
AS YOU KNOW IT IS HIS NUMBER ONE
PRIORITY.
THE PRESIDENT IS NOT GOING TO DO
ANYTHING THAT CREATES JOB LOSS
IN THESE OTHER AREAS.
AGAIN, WE HAVE A THOUGHT-OUT
PROCESS.
DAVID: DR. PAUL, YOU HAVE
140,000 JOBS IN THE STEEL
INDUSTRY THAT IS BEING PROTECTED
BY THESE TARIFFS.
AND YOU HAVE ABOUT SIX 1/2
MILLION JOBS IN COMPANIES
MANUFACTURING JOBS, THAT USE
STEEL, THAT MIGHT BE HURT.
DO YOU THINK IN THE NET, IN THE
END, JOBS WILL BE HELPED OR HURT
BY THE TARIFFS?
>> I THINK THEY WILL BE HURT.
KNOWS NUMBERS NEVER PAN OUT.
IF YOU TAKE IT FROM ONE, YOU
MIGHT LOSE IT TO SOMEBODY ELSE.
SO I THINK THERE IS ALWAYS A
COST AND MOST ECONOMISTS HAVE
OVER THE YEARS INDICATED THAT
TARIFFS AREN'T GOOD FOR THE
ECONOMY.
IT DOESN'T CREATE JOBS T MAY
CREATE OR PRESERVE A JOB IN A
CERTAIN INDUSTRY HAVING TROUBLE
BUT IF THERE IS TROUBLE IN AN
INDUSTRY, WE WORRIED ABOUT THIS
BACK IN THE 70'S, OUR
AUTOMOBILES WEREN'T AS GOOD AS
JAPANESE, WE HAD TO PROTECT
THEM.
YOU DON'T WANT TO PROTECT
SOMETHING THAT IS NOT EFFICIENT.
OR TOO MANY REGULATIONS OR DUE
TO THE MONETARY POLICY.
SO YOU DON'T WANT TO PROTECT
THEM, PROTECT THE MISTAKES.
THAT IS WHY BAILOUTS ARE BAD.
IT IS A FORM OF A BAILOUT.
A LOT OF PEOPLE TALKING ABOUT
THAT DURING THE RECESSION.
WHY ALLOW THE PEOPLE WHO ARE
MAKING ALL MISTAKES ESSENTIALLY
THAT'S WHAT WE DID.
DAVID: LET ME GO TO THE SOURCE,
THE PRESIDENT HIMSELF TWEETED
OUT EARLIER FROM BUSH ONE TO
PRESENT OUR COUNTRY HAS LOST
MORE THAN 55,000 FACTORIES, SIX
MILLION MANUFACTURING JOBS AND
ACCUMULATED TRADE DEFICITS OF
MORE THAN $12 TRILLION.
LAST YEAR WE HAD A TRADE DEFICIT
ALMOST 800 BILLION.
BAD POLYS AND LEADERSHIP.
WE MUST WIN AGAIN.
ONE OF THE WORST TRADE DEFICIT
YEARS WE HAD IN DECADE WAS BACK
IN 1984.
IN THAT YEAR, WHEN WE HAD SUCH A
BAD TRADE DEFICIT THE ECONOMY
ACTUALLY GREW 7.3.
SO IT IS NOT CLEAR THERE IS A
DIRECT RELATIONSHIP BETWEEN
TRADE DEFICITS AND GROWTH.
>> YEAH I THINK THERE IS A LOT
OF MISUNDERSTANDING ABOUT TRADE
DEFICITS BECAUSE WHAT YOU LOOK
AT TO FIND OUT WHAT HAPPENED,
THERE IS ALWAYS A BALANCE OF
TRADE.
NOW WHEN WE HAVE A MONETARY
SYSTEM LIKE WE HAVE NOW, WE GET
TO PRINT THE MONEY, YOU WILL
HAVE A TRADE DEFICIT BY ITS VERY
NATURE BECAUSE WE HAVE THE CASH
AND WE BUY STUFF.
WE GET A FOOD PRICE ON IT.
GOOD PRICE.
IT IS NOT STATIC LIKE WE LOST ON
THAT.
THE CHINESE AND OTHERS DO US BIG
FAVORS, THEY BUY UP OUR DEBT.
WE LITERALLY EXPORT SOME OF OUR
PENALTIES AND EXPORT INFLATION
AND IT IS NOT QUITE LIKE THE
TRADE DEFICIT.
I THINK WHAT YOU HAVE TO LOOK AT
IS THE TOTAL PICTURE OF THE
BALANCE OF TRADE, WHERE IT IS
GOING, WHAT HAPPENS WHEN YOU
HAVE A CENTRAL BANK MANIPULATING
INTEREST RATES AND CURRENCY
WHICH ENCOURAGES DEBT.
IF YOU PATCH UP SOME THINGS IT
DOESN'T DEAL WITH THE BIG
PROBLEM.
THAT IS DEBT.
DAVID: YOU KNOW WHAT I WOULD
LOVE TO HAVE, DR. PAUL.
I WOULD LOVE TO HAVE FIVE
MINUTES TO TALK TO YOU.
YOU AND WILBUR ROSS IN A DEBATE.
THAT IS A THING OF BEAUTY.
SOME DAY WE'LL GET THAT DONE.