LONGER A PUBLIC HEALTH
EMERGENCY WE ARE UNDER.
NEIL: THANK YOU FOR THAT.
AT THE WHITE HOUSE, LET’S GO TO
ART LAUGHTER, THE FORMER RONALD
REAGAN ECONOMIST AND ICONIC
FIGURE WITH HISTORIC MOMENTS
FOR THE ECONOMY.
GREAT TO HAVE YOU.
YOU WERE TALKING ABOUT THIS GAS
TAX HOLIDAY THE PRESIDENT WAS
THINKING ABOUT AND WE ARE TOLD
HE IS GOING TO ACT ON IT AND IF
PUSH CAME TO SHOVE AND YOU WERE
ADVISING THE PRESIDENT YOU
WOULD BE OKAY WITH THIS.
WHY WAS THAT?
>> IT IS PALLIATIVE, SOMETHING
THAT SHOWS HE IS DOING
SOMETHING, NOT VERY MUCH BUT
SHOWING HE’S TRYING TO BRING
DOWN GAS PRICES BUT ALSO I
WOULD MUCH RATHER HAVE A TAX
RATE REDUCTION THAN A SPENDING
INCREASE.
THE OTHER THING IT SHOWS IS IT
IS A SLAP IN THE FACE OF THE
GREEN NEW AGENDA.
WHAT IT WILL DO IS ENCOURAGE
MORE PEOPLE TO BUY GAS TO USE
HYDROCARBONS WHICH IS THE
OPPOSITE OF WHAT THE
ADMINISTRATION’S POLICIES WERE
BUT IT IS MORE OF A GIMMICK
THAN REAL POLICY BUT IT IS
SOMETHING TO SHOW HE CARES.
NEIL: I SEE WHERE YOU ARE
COMING FROM BUT GENERALLY YOU
CUT THE PRICE OF SOMETHING YOU
BUILD UP DEMAND FOR SOMETHING
SO COULD THAT INCREASE THE
PRICE IN THE LONG RUN?
>> EXACTLY ESPECIALLY WHEN YOU
PROHIBITED THEM FROM PRODUCING
ORAL HEALTH, IF THERE’S AN
INCREASE IN DEMAND ON OIL IN
THE US YOU HAVE TWO WAYS OF
SOLVING A, INCREASE THE
QUANTITY TO SATISFY THE DEMAND
OR IF YOU CAN’T INTRODUCE THE
QUALITY YOU HAVE TO RATION THE
AMOUNT OF OIL YOU HAVE.
WHAT THE ADMINISTRATION HAS
DONE IS PROHIBITED OIL
COMPANIES FROM PRODUCING MORE,
SO WHENEVER THERE IS AN
INCREASE IN DEMAND IT CAUSES
PRICE TO RISE SHARPLY AND THE
CAPITALIST PIGS AND ALL THIS
STUFF WHICH IS TOTALLY
INAPPROPRIATE, THEY PUSH THE
OIL COMPANIES INTO THIS
POSITION AND THAT IS TRUE.
I DON’T THINK THIS SURGE, THE
PRESIDENT’S GREEN AGENDA -- AND
IN THE LONG RUN CONTROLLING OIL
PRICES BUT IT IS A SHORT-TERM
POLICY AND MAYBE IT WILL HELP
IN THE ELECTIONS IN NOVEMBER.
NEIL: I WANT TO GET YOUR
THOUGHTS INTO A GOOD STUDENT
HISTORY IN THE DAYS YOU WERE
WITH RONALD REAGAN, HIS FIRST
TWO YEARS KIND OF ROCKY, THE
RECESSION AND INFLATION AND
WHAT IS HAPPENING, HE STAYED
CONFIDENT THROUGHOUT BUT I
WONDER HOW MUCH ATTENTION HE
PAID TO THE MARKETS.
THEY WERE STILL I WOULDN’T SAY
A FREEFALL BUT GOING NOWHERE
FAST AND IT WOULD TAKE UNTIL
1982 THEY GAINED TRACTION AND
HAD A THOUSAND ON THE DOW, I
RAISE THAT WITH YOU NOW BECAUSE
IT IS A PRETTY GOOD BET THIS
PRESIDENT DOESN’T FOLLOW THE
STOCK MARKET CLOSELY OR CARE,
MAYBE HE CARES, BY NOT
MENTIONING IT HE IS STATING THE
OBVIOUS BUT HOW IMPORTANT IS IT
FOR PRESIDENT TO LOOK AT THOSE? >> THE STOCK MARKET IS A
>> THE STOCK MARKET IS A
SERIOUS BELLWETHER.
AND BECAUSE HE DEFERRED THE TAX
CUTS, PEOPLE THIS YEAR THE
FURTHER SPENDING AND PRODUCTION
AND INVESTMENT, AND THAT CAUSED
THE 81-82 RECESSION, NOT THE
MONETARY POLICY OF PAUL
VOLCKER.
IN 1982, IT 777 ON AUGUST 13,
1982, WHICH WAS A LONG DECLINE
FROM FEBRUARY OF 66, 16 YEARS
DOWN, 76% IN REAL TERMS.
NEIL: YOU ARE RIGHT ABOUT THAT.
WE ARE HAVING AUDIO