now there's a lot of a lot of info
stacked in there here to comment on
senator cramer's thoughts
maybe tell us how long this bulls stock
market's going to last
we've got nancy tangler chief investment
officer at laffer tangler investments
and we've got uh worldwide economist my
brother steve moore
associated with every good cause known
to mankind steve moore let me start with
you
kevin cramer is a pretty sound thinking
guy i think you would agree with me on
that
you heard his rundown and i i hope you
heard you know the options that are
being put on the table on infrastructure
for the gop
what you think steve where does it stand
now
well first of all i love your uh talking
about a half trillion dollar
infrastructure bill is a skinny deal yes
i mean that tells you how much money
we're spending these days right uh i
remember when it was about 100 or 200
billion now
600 800 2 trillion dollars uh larry
i love your idea by the way you have two
great ideas one
that you just mentioned with uh with the
senator from north dakota
which is the idea of repurposing money
that we've already appropriated
uh for the vital infrastructure that we
may need in this country
and i'll give you an example where we
should do that let's quit with the 300 i
mean the 4
300 to 400 a week increase unemployment
benefits which are keeping people out of
the workforce
and let's get that money into
infrastructure for jobs how about that
what a great thing get people
incentivized to work rather than not
work
but i'll you hit on another big one
larry that's really
uh important we are sitting on in the
united states
somewhere between 30 and 50 trillion
dollars
of mineral and energy resources why
don't we go for those resources
we can collect royalties we can collect
tax payments on that
and we can use that money to pay for the
infrastructure so it doesn't raise a
dime of taxes on americans
this is the right but the biden's put up
a ban
on any drilling for anything on federal
lands
which is a waste of resources by the way
we need
critical minerals anyway so we don't
lose the world to china
but also there's a lot of potential
revenues there and let me
switch it over to nancy tangler you know
nancy you heard this discussion
i have no idea how this is going to turn
out it's a very complex
matter it's highly politicized
gop is standing strong uh on this um
on this skinny package so to speak but
nancy wouldn't it be great wouldn't the
stock market love to hear
that we're gonna have a good sized you
know
10-year infrastructure package
traditional infrastructure
without massive tax hikes
on large and small businesses and
capital gains and everything else
you can get the one and not have to
wreck the economy
with gigantic taxes market would
wouldn't it
roar on that yeah i mean i think it it
started to in the fall larry and then
we've we've kind of uh
paused a little bit particularly in the
infrastructure stock play but if you get
the full tax increases
we're going to shave 12 off of s p
earnings
we're going to go from four percent
growth in s p uh earnings in 2022
to forget what year it is to for from 14
expected today and and that's going to
have a profound
impact on on stocks but in addition to
that the thing that i worry about
is okay let's say this bill passes
because i don't think we'll see
compromise
only to the extent that democrats want
to see um
you know a 25 corporate tax rate instead
of 28 but if we spend
700 billion dollars as the current
infrastructure plan proposes
over eight years that's 80 billion
dollars a year in a 22 trillion dollar
economy
and we're we're proposing 50 billion
for semi uh production independence
and we need 1.4 trillion for the
semiconductor industry to become
self-sufficient in the u.s i'd much
rather see the money
spent there than in some of the places
where we're talking about because we
know we have a shortage and we know it's
one of our
competitive advantages in all aspects of
the economy
steve moore it's an interesting thought
now nancy tangler
very sound thinking lady right
and remember her firm has laffer as part
of the firm's name
but i want to ask you steve uh should we
spend whatever 500 billion or a trillion
dollars
of federal subsidies for the
semiconductor business
it's a tough question no no we shouldn't
look uh almost all of the great
innovation in this
country throughout our history you know
others of the railroads or
henry ford building the automobiles or
the internet i mean i hate to
you know break it to you larry but al
gore did not embed the internet
the internet was due to america's great
uh
innovators in silicon valley we don't
need the government to pay for these
kinds of things
the you know you've got google just
announced the other day they're gonna
put 300 billion dollars or something
like that
into broadband that's the kind of
infrastructure we need
eighty percent of the infrastructure and
capital spending
in this country larry is done by private
businesses
and that's the most efficient one i want
to get one quick thing off my uh
off of my chest you keep mentioning the
unionization issue
did you see yesterday the coal miners
associate the mining association
came out in favor in favor of the
democratic bill
to kill the coal industry this is one of
the greatest betrayals
by a union of their own rank and file 50
000
coal miners are going to lose their jobs
under the biden clan
and the coal mining union came out in
favor of it we'll have to cover that
that's a very interesting point
nancy i'll just close with this we had a
huge debate
inside the administration on the issue
of
semiconductor help subsidies whatever
you want to call it
and mnuchin
pompeo o'brien wilbur ross
bob lighthizer all agreed that we needed
to provide some
subsidies to help out semiconductor on
the basis of national security
as well as economic growth in the big
meeting in the oval office with all
those heavy hitters and they're all
friends of mine dear friends of mine
there were two people who opposed it
one was kudlow and the other was trump
give me the last word i am a free market
thinker just like you larry i'm just
saying if we're going to spend all this
money this is a place where
we could provide some cover for the
country not just from a national
security standpoint
but from uh an overall independence it's
kind of like energy independence in my
view
i don't think the government belongs
there but it was it was a point i'm i'm
making just as a juxtaposition
the president rejected it and he
rejected it fast he's never liked
subsidies and he i remember his first
remark was um
why not pharmaceuticals or why not
something else and he's got a point
we'll discuss this more it's the
subject's going to come up i'm not
panning my
former colleagues they're very good
friends of mine it was a very spirited
debate
and frankly i think there are merits on
both sides but they're also demerits on
both sides
nancy tangler thanks a million steve
moore thanks a million
coming