STUART: 11:15 EASTERN AND RIGHT
ON TIME, LARRY KUDLOW JOINS US
FROM THE WHITE HOUSE.
LARRY, LET’S GET RIGHT AT THIS.
MITCH McCONNELL SAYS THE
STIMULUS TALKS, THE VIRUS AID
TALKS, ARE AT A STALEMATE.
DOES THAT, IN YOUR OPINION, SLOW
DOWN THE ECONOMIC RECOVERY AT
ALL, IF THERE’S NO MORE MONEY
OTHER THAN THE PRESIDENT’S
EXECUTIVE ORDER GOING TO BE PUT
OUT THERE?
>> WELL, I DON’T THINK SO,
ALTHOUGH THERE ARE CERTAIN ITEMS
LIKE MONEY FOR SCHOOL AND THINGS
THAT ARE VERY VERY IMPORTANT AND
WOULDN’T MIND AN EXTENSION OF
THE PAYROLL PROTECTION PLAN
WHICH I THINK WOULD HELP SMALL
BUSINESS, BUT NO, LOOK, THE
NUMBERS ARE COMING IN VERY VERY
NICELY.
I MEAN, THE INCREASE IN THE
CASELOAD, I UNDERSTAND, IN THE
SOUTH AND WEST PUT A SLIGHT
RESTRAINT ON THE ECONOMY, BUT THE NUMBERS COMING OUT SHOW IT
THE NUMBERS COMING OUT SHOW IT
WASN’T A MAJOR RESTRAINT.
UNEM
UNEMPLOYMENT CLAIMS COMING BACK
DOWN, THERE’S A MANUFACTURING
BOOM, A HOUSING BOOM.
PRIVATE TRUCKING SURVEYS ARE
VERY VERY STRONG RIGHT NOW.
STUART: WE DON’T NEED A WHOLE
LOT MORE MONEY CHUCKED AT THE
ECONOMY?
>> I DON’T THINK SO
PARTICULARLY.
I THINK YOU NEED TARGETED MONEY.
I WILL COME BACK TO THE SCHOOL
OPENINGS BECAUSE THEY ARE SO
IMPORTANT FOR THE KIDS AND SO
IMPORTANT FOR THE PARENTS.
THERE IS AN ECONOMIC IMPACT
THERE.
OUR POSITION WAS HIGHER THAN THE
DEMOCRATS’ POSITION ORIGINALLY.
WE PUT IN $105 BILLION, SLIGHTLY
MORE THAN THEY PUT IN.
THAT’S THE KIND OF THING THAT
OUGHT TO WORK.
THE PRESIDENT IS WILLING TO TALK
ABOUT TARGETED CHECKS, YES, AND
SOME OTHER MATTERS, BUT NO, I
DON’T THINK THE ECONOMY IS GOING
TO RELY SOLELY ON THIS.
LOOK, THE PAYROLL TAX DEFERRAL
IS A HUGE ECONOMIC GROWTH AND
JOBS INCENTIVE.
THAT’S BIG STUFF.
I THINK THE CONTINUATION OF THE
UNEMPLOYMENT INSURANCE OR THE
FEDERAL GOVERNMENT HAS PONIED
UP, IS WILLING TO PONY UP $300,
THE STATES CAN ADD TO IT IF THEY
CHOOSE TO, IT WOULD BE A $700
OVERALL PACKAGE, THAT’S GOING TO
BE A BIG HELP AND THE EVICTION,
IT’S NOT QUITE AN EVICTION
MORATORIUM BUT IT’S CERTAINLY
EVICTION PROTECTION AS SECRETARY
CARSON PUT IT WELL.
THAT’S A BIG HELP ALREADY.
AND THE STUDENT LOAN DEFERRAL,
ZERO INTEREST RATE, BY THE WAY.
SOME OF THE KIDS MAY WANT TO PAY
DOWN WITH ZERO INTEREST.
MY POINT IS THE EXECUTIVE ORDERS
PROVIDE CONSIDERABLE ASSISTANCE
AND ECONOMIC GROWTH INCENTIVE SO
WE CAN STAY WITH THAT AS WE ARE
ENTERING WHAT I THINK IS A
SELF-SUSTAINING ECONOMIC
RECOVERY.
STUART: THE STATES, OF COURSE,
ARE REALLY UPSET THAT THEY ARE
RESPONSIBLE FOR, WHAT, $100 A
WEEK OF THE BONUS, THE
UNEMPLOYMENT BONUS.
THEY SAY THEY DON’T HAVE IT.
A LOT OF THEM DON’T HAVE IT.
WHAT DO YOU MAKE OF THAT?
>> WELL, WE ARE NO LONGER
INSISTING ON A COST SHARING
DEAL.
IN OTHER WORDS, THERE’S SOME
TECHNICAL ADJUSTMENTS TO THE
EXECUTIVE ORDER LAST WEEKEND.
AT THIS POINT, HERE’S THE THING.
ANY STATE THAT HAS ALREADY
PROVIDED $100 OF BENEFITS FOR
PEOPLE UNEMPLOYED BECAUSE OF
COVID, AND THAT I THINK’S GOT TO
MEAN ALL 50 STATES, IF YOU HAVE
ALREADY DONE THAT AND YOU ARE
CONTINUING THAT, THE FEDERAL
GOVERNMENT WILL PUT IN $300 SO
THE COST SHARE, NOW, IF THE
STATE WANTS TO PLUS UP ANOTHER
HUNDRED, THAT’S GREAT.
BUT THAT’S THEIR DECISION.
BUT WE ARE NOT INSISTING ON
THEIR PLUSSING UP ANOTHER
HUNDRED.
WE ARE COMMITTED TO PUTTING $300
IN PLUS THEIR $400 MEDIAN
AVERAGE ACROSS THE COUNTRY.
I THINK IT’S A GREAT DEAL.
I THINK IT’S A VERY GENEROUS
COMPROMISE KIND OF DEAL.
AND I THINK IT’S GOING TO HELP
THE 16 MILLION PEOPLE WHO ARE
UNEMPLOYED AND ARE STILL
SUFFERING A LOT OF HEARTBREAK
AND HARDSHIP.
I GET THAT.
WE ARE GOING TO BE HELPING THEM
THERE.
AND THE PAYROLL TAX DEFERRAL
AGAIN, THAT’S A SHOT IN THE ARM.
IT PUTS MORE CASH -- IT GIVES
THE 140 MILLION PEOPLE WHO ARE
WORKING, WHO YOU KNOW, WERE ABLE
TO GET THROUGH THIS, THEY ARE
HEROES WORKING, THEY WILL GET A
BIG PAY RAISE.
THAT’S WHAT IT AMOUNTS TO.
6.25% PAY RAISE, ABOUT $1100.
THAT’S HUGE STIMULUS ALSO.
STUART: DO YOU ABSOLUTELY OBJECT
AND COMPLETELY REJECT BAILOUT
MONEY FOR THE STATES?
>> WELL, THAT WORD BAILOUT,
YEAH, WE REJECT THAT.
I THINK -- I HAVE TO GO --
GOOGLE UP WEBSTER’S DICTIONARY
FOR BAILOUT, I.E. STUART VARNEY,
TO MAKE SURE I KNOW WHAT YOU’RE
SAYING.
STUART: YOUR MONEY, COMING FROM
THE ADMINISTRATION, GOING TO
PLACES LIKE NEW JERSEY OR
ILLINOIS, ESSENTIALLY HELPING
THEM BAIL OUT THEIR BANKRUPT
PENSION PAYMENTS TO THEIR
GOVERNMENT WORKERS.
DO YOU ABSOLUTELY FLAT OUT
REJECT IT, YOU WILL NEVER DO IT?
>> THE PRESIDENT HAS REJECTED
THAT VERY STEADILY AND
CONSISTENTLY.
THIS IS NOT ABOUT BAILING OUT
PENSIONS, IT’S NOT ABOUT BAILING
BAD MANAGEMENT.
I DON’T WANT TO USE NEW JERSEY
AS AN EXAMPLE BECAUSE I HAPPEN
TO THINK -- I THINK A LOT OF OF
GOVERNOR PHIL MURPHY AND I THINK
HE’S DONE A GOOD JOB AND WORKS
VERY WELL WITH US.
BUT GENERICALLY YOUR POINT IS
TAKEN.
THE PRESIDENT COMPLETELY OPPOSES
THAT.
HOWEVER, WE ARE NOT OPPOSED TO
SOME ASSISTANCE, FEDERAL
ASSISTANCE WITH RESPECT, FOR
EXAMPLE, TO COVID-RELATED
EQUIPMENT OR CONSTRUCTION OR
RENOVATION, ESPECIALLY, I SAY
THIS AGAIN, OPENING SCHOOLS AND
OPENING BUSINESSES, 80% OF
BUSINESS OPEN, HOPE TO GET THAT
MUCH HIGHER IN THE MONTHS AHEAD
AND THAT LEAVES US WITH THE
GUIDELINES, RIGHT?
IT’S VERY IMPORTANT, SAFETY AND
SECURITY, THE MASKING, THE
DISTANCING, THE TESTING WHERE
APPLICABLE AND GOOD HAND WASHING
AND HYGIENE.
THAT’S ESSENTIAL.
NOW, PEOPLE NEED HELP ON THAT,
WE PROBABLY WOULD BE WILLING TO
PROVIDE SOME ASSISTANCE.
STUART: I JUST SEE THE NUMBERS.
BETWEEN MARCH 23rd AND
YESTERDAY, THE VALUE OF ALL
PUBLICLY TRADED COMPANIES IN THE
UNITED STATES WENT UP TO THE
TUNE OF $12.2 TRILLION.
THAT IS A STUNNING INCREASE.
I HAVE NEVER SEEN ANYTHING LIKE
IT.
IS THIS AN ECONOMIC INDICATOR?
>> YES.
VERY IMPORTANT INDICATOR.
THE BROAD S&P 500 AS YOU KNOW IS
UP 50% FROM THE MARCH 23rd LOWS.
MIDDLE INCOME PEOPLE OWN SHARES
THROUGH I.R.A.s AND 401(k)s.
UNIONS, PUBLIC AND PRIVATE
UNIONS, ARE IN THEIR PENSION
PLANS.
THAT RELIES ON THE STOCK MARKET.
HOUSEHOLD NET WORTH, STUART,
WHICH IS WHAT YOU ARE MEASURING,
ESSENTIALLY STOCKS AND HOMES AND
WHAT KIND OF CASH YOU HAVE IN
THE BANK AND SOME OTHER ITEMS,
THAT THING IS UP, I THINK I SAW
IT’S NOW WORTH $112 TRILLION.
THAT’S A REMARKABLE NUMBER.
IT’S LIKE, YOU KNOW, THE TOTAL
VALUE OF AMERICAN ASSETS.
THAT’S A REMARKABLE NUMBER.
IT’S GOT TO BE UP AT LEAST 30%
FROM THE LOWS.
I’LL HAVE TO CHECK THAT.
ANYWAY, YOU ARE CORRECT.
THAT’S A LEADING INDICATOR.
MANY DISTINGUISHED ECONOMISTS ON
WALL STREET USE THAT HOUSEHOLD
NET WORTH, IT’S FROM THE FEDERAL
RESERVE, AS A LEADING INDICATOR
OF THE ECONOMY.
STUART: BUT THE LEFT, I PRESUME
KAMALA HARRIS, WILL SAY THAT’S
NOT FAIR.
THE RICH ARE GETTING RICHER,
THEY ARE DOING WELL OUT OF THIS
VIRUS PROBLEM.
WHAT ARE YOU DOING ABOUT THAT?
>> YEAH.
WELL, YOU KNOW, I FEEL SORRY FOR
THEM AND THAT POINT OF VIEW.
SO COMPLETELY WRONG.
THIS RUNS COUNTER TO THE
AMERICAN IDEA.
I MEAN, IN A FREE ECONOMY LIKE
OURS, WHERE WE REWARD SUCCESS, A
RISING TIDE DOES LIFT ALL BOATS.
IT MAY NOT BE PERFECT BUT YOU
START AT THE BEGINNING, AT THE
STARTING LINE WITH EQUAL
OPPORTUNITY AND FREEDOM, WHERE
YOU END UP AND THE FINISH LINE
IS COMPLETELY UP TO YOU, BUT ALL
AMERICANS HAVE SHARED, YOU KNOW
TRUMP’S -- PRESIDENT TRUMP’S
FIRST THREE YEARS AND TWO MONTHS
WAS SPLENDID.
LOWEST UNEMPLOYMENT IN HISTORY,
WAGE INCREASES, AS YOU PROBABLY
KNOW, MIDDLE CLASS AND LOWER
MIDDLE CLASS, THE BOTTOM
QUINTILE DID THE BEST UNDER
PRESIDENT TRUMP’S TAX CUTS AND
DEREGULATION AND TRADE REFORM
AND SO FORTH AND ENERGY.
I THINK THAT’S JUST A PHONY
ARGUMENT.
DEMOCRATS PUT THAT OUT EVERY
TIME.
I DON’T THINK AMERICANS REALLY
BUY IT.
YOU KNOW WHAT, LOOK, I DON’T
THINK AMERICANS RESENT PEOPLE
FROM SUCCEEDING OR GETTING RICH,
QUOTE UNQUOTE, WHATEVER THAT
MEANS.
I THINK AMERICANS WANT
OPPORTUNITIES AND INCENTIVES,
AND THAT’S WHAT PRESIDENTIAL
POLICIES HAVE ALWAYS DONE.
AND WE DO HAVE A SAFETY NET AND
THIS DEBATE ABOUT THE COVID
SO-CALLED CARES PACKAGE NUMBER
TWO IS THAT WE ARE PUTTING IN
INCENTIVES, WE WANT TO CREATE
NEW OPPORTUNITIES AND WHERE
NECESSARY, WHERE IT APPLIES TO
COVID, WE WILL RAISE THE SAFETY
NET WITH TEMPORARY CASH
INJECTIONS.
WE’VE ALWAYS DONE THAT FROM THE
BEGINNING.
IT WAS BIPARTISAN LAST WINTER.
UNFORTUNATELY, IT’S VERY
PARTISAN TODAY.
BUT I DON’T CARE.
ALL THIS STUFF, NO ONE SHOULD --
PEOPLE DON’T OBJECT TO THEIR
NEIGHBORS AND FRIENDS DOING WELL
AND THEY WANT TO DO WELL.
THEY WANT THE SAME OPPORTUNITY.
THIS MIDDLE CLASS OWNS A LOT OF
STOCKS, STUART.
51% OF THE PEOPLE IN THIS
COUNTRY, 51% OF THE HOUSEHOLDS
OWN STOCK.
THAT’S A GIGANTIC NUMBER.
STUART: AS WE GO OUT, WOULD YOU
MAKE ANY COMMENT ON THE
SELECTION OF KAMALA HARRIS AS
JOE BIDEN’S RUNNING MATE?
>> I HAVE NO PERSONAL COMMENT.
I DON’T KNOW HER.
I HAVE NEVER MET HER.
I KNOW THE PRESIDENT’S
DISAPPOINTED IN HER PERFORMANCE
IN THE JUDICIAL HEARINGS.
I WOULD JUST SAY, THOUGH, THE
ISSUE HERE IS THE SIGNIFICANT
LEFT TURN IN DEMOCRATIC
POLICIES.
I MEAN, BIDEN, SENATOR BIDEN OR
FORMER VICE PRESIDENT BIDEN IS
BACKING OVER $3 TRILLION IN TAX
CUTS -- TAX HIKES, I’M SORRY,
TAX HIKES.
THAT’S CRAZY.
YOU ARE COMING OUT OF A
PANDEMIC, CONTRACTION AT
HISTORIC DIMENSIONS AND HE WANTS
TO RAISE TAXES.
AS I SAY, WHERE ARE THE
KEYNESIANS WHEN YOU NEED THEM,
MUCH LESS THE SUPPLY SIDERS.
THEY WILL DECIMATE ENERGY,
DECIMATE ENERGY WHICH WILL
COMPLETELY CRATER THE ECONOMY
AND THE STOCK MARKET.
THAT’S THE PROBLEM.
IT’S NOT THE PERSONALITIES THAT
CONCERN ME.
IT’S THE POLICIES.
AND THE POLICIES WOULD TRANSFORM
AMERICA AS VICE PRESIDENT BIDEN
HAS SAID.
IT WOULD TRANSFORM IT TOWARDS A
GOVERNMENT-RUN SOCIALIZED
ECONOMY THE LIKES OF WHICH HAVE
NEVER SUCCEEDED.
THAT’S A WARNING.
I HOPE VOTERS -- WELL, I KNOW
VOTERS ARE VERY SMART.
THEY WILL BE FOLLOWING THIS
INTENSELY.
THE CONTRAST BETWEEN PRESIDENT
TRUMP AND MR. BIDEN COULDN’T BE
CLEARER.
PRESIDENT TRUMP’S TAX CUTS AND
DEREGULATION AND FAIR TRADE AND
ENERGY REVIVAL GAVE US A
SPLENDID FAST-GROWING ECONOMY
FOR THREE YEARS AND TWO MONTHS
BEFORE THE PANDEMIC.
WHY DO YOU WANT TO UNWIND THAT?
WHY DO YOU WANT TO OVERTURN
THAT?
WHY DO YOU WANT TO TRANSFORM
THAT?
I DON’T WANT TO TRANSFORM IT.
I WANT TO CONTINUE WITH A SECOND
ROUND OF ECONOMIC REBUILDING.
STUART: THAT VIRUS CHANGED
EVERYTHING, DIDN’T IT?
>> IT DID BUT WE WILL PERSEVERE,
STU.
BY THE WAY, YOUR ANNOUNCEMENT
ABOUT THE MASTERS IS FABULOUS
NEWS.
FABULOUS.
STUART: ISN’T THAT WONDERFUL?
>> THE PSYCHE OF AMERICA.
PEOPLE LOVE THAT JUST LIKE THE
BASEBALL OPENING.
STUART: THE 9th THROUGH THE
15th.
THE MASTERS WILL TAKE PLACE.