GRADY, THANKS VERY MUCH.
APPRECIATE IT.
LARRY KUDLOW’S WITH US.
ALL RIGHT, JUST POPPED UP ON THE
SCREEN LIVE FROM THE WHITE
HOUSE, LARRY KUDLOW.
SIR, YOU ARE ON.
I’D LIKE TO DEAL WITH SOMETHING
RIGHT FROM THE START, IF I MAY,
LARRY.
JOE BIDEN EARLIER -- NOT TODAY,
BUT EARLIER THIS WEEK -- HE SAID
THAT MR. TRUMP HAD TAKEN A GOOD
ECONOMY AND DRIVEN IT BACK INTO
THE DITCH.
I THOUGHT THAT WAS ABSOLUTE
NONSENSE AND SAID SO ON THE AIR,
BUT I WANT YOUR REACTION,
PLEASE.
>> WELL, LOOK, IT’S FACTUALLY
INACCURATE.
THAT’S REALLY THE KEY POINT.
I DON’T WANT TO DO POLITICS,
IT’S JUST FACTUALLY INACCURATE.
FIRST OF ALL, THE EXPANSION
AFTER THE FINANCIAL MELTDOWN,
YOU KNOW, TEN SOME ODD YEARS AGO
WAS THE SLOWEST, I DON’T KNOW,
GOING BACK TO THE GREAT
DEPRESSION.
BUT EVEN WORSE THAN THAT, AND
THIS IS A POINT THAT I’D LIKE TO
MAKE, IF YOU GO BACK AND LOOKED
AT A WHAT PRESIDENT TRUMP
DIRECTLY INHERITED FROM THE
MIDDLE OF 2015 TO THE END OF
2016, THE ECONOMY WAS ON THE
FRONT END OF A RECESSION.
IT WAS GROWING, STU, BY 1.A --
1.5% OR LESS.
AND HAVING BEEN IN THE BUSINESS
FOR A LONG TIME, WE USED TO CALL
THAT A GROWTH RECESSION.
AND WHAT PRESIDENT TRUMP DID BY
CUTTING TAXES AND REGULATIONS
AND OPENING UP OIL AND BETTER
TRADE DEALS IS IMMEDIATELY
PROVIDED ALMOST SHOCK THERAPY TO
REBUILD THE ECONOMY WITH A
GIGANTIC INCREASE IN EMPLOYMENT
AND A RECORD LOWER IN
UNEMPLOYMENT AND A MUCH FASTER
GROWTH RATE.
AND, OF COURSE, A HUGE STOCK
MARKET.
SO MY POINT HERE IS NOT ONLY HAS
TRUMP, YOU KNOW, NOT RUN IT IN
THE DITCH, BLAH, BLAH, BLAH,
BLAH, WE INHERITED THE FRONT END
OF A RECESSION, AND THAT IS IN
THE FACTS.
AND LAST POINT I’LL MAKE IS TO
THE OTHER SIDE THAT WANTS TO
RAISE TAXES BY $4 TRILLION, THIS
IS SOMETHING I WILL NEVER
UNDERSTAND.
I MEAN, YOU’RE COMING OUT OF A
DEEP PANDEMIC CONTRACTION, ALL
RIGHT?
WE’VE MADE GREAT PROGRESS ON THE
RECOVERY, BUT THERE’S A LOT OF
WORK TO BE DONE.
THIS THING’S NOT OVER YET.
STILL A LOT OF HARDSHIP OUT
THERE.
STUART: YEP.
>> SHOW ME A GOOD KEYNESIAN,
SHOW ME A GOOD DEMAND-CIDER,
SHOW ME --SIDER, SHOW ME A JOHN
F. KENNEDY DEMOCRAT, NOBODY IN
THEIR RIGHT MIND WOULD WANT TO
RAISE TAXES RIGHT NOW.
WE WANT TO KEEP MONEY IN THE
POCKETS OF MEN AND WOMEN IN
WALLETS AND POCKETBOOKS AND
BUSINESSES.
WE DON’T WANT TO BE PICKING
THEIR POCKETS WITH TAX HIKES
BECAUSE WE’RE TRYING TO GET A
GOOD RECOVERY GOING.
SO I DON’T UNDERSTAND THAT
EITHER.
STUART: WE WANT TO GET A GOOD
RECOVERY GOING, AND TREASURY
SECRETARY MNUCHIN SAYS WE NEED
MORE TARGETED HELP, I THINK TO
THE TUNE OF $1.3 TRILLION.
YOU ONBOARD WITH MORE STIMULUS
AT THIS POINT?
>> WELL, LOOK, AGAIN, I AGREE
WITH SECRETARY MNUCHIN ON THE
IDEA OF TARGETING.
I THINK THAT’S ESSENTIAL.
WE’LL COME BACK TO THE V-SHAPED
RECOVERY.
WE’VE HAD SOME PHENOMENAL
NUMBERS IN FACTORY ORDERS AND
MANUFACTURING AND CAR SALES IN
JUST THE LAST COUPLE DAYS.
BUT I THINK SECRETARY MNUCHIN IS
SAYING, LOOK, THERE ARE SOME
IMPORTANT TARGETS THAT WOULD BE
VERY HELPFUL.
ONE OF THEM’S GOING TO BE THE
SMALL BUSINESS EXTENSION OF THE
PPP.
THAT IS SOMETHING THAT WOULD BE
A GREAT HELP, OKAY?
THE RECOVERY MAY NOT DEPEND ON
IT, BUT THAT’S NOT IMPORTANT.
IT WOULD HELP.
WHY NOT DO IT?
THE OTHER THING IS SOME EXTRA
MONEY FOR SCHOOLS WOULD BE A
GREAT HELP.
WHY NOT DO IT?
THERE SEEMS TO BE SOME AGREEMENT
ABOUT THIS, SO PERHAPS
DIFFERENCES ON THE QUANTITIES.
SO, LOOK, WHERE WE AGREE, WHY
NOT GO FOR A TARGETED BILL
INSTEAD OF, YOU KNOW, A $3 OR $4
TRILLION WHICH WOULD BAIL OUT
STATE AND LOCAL GOVERNMENTS AND
WASTE TAXPAYERS’ MONEY?
THERE’S SOME THINGS THAT REALLY
COULD HELP, WHY NOT TRY IT?
I WOULD ALSO ADD TO THAT LIST
WHY NOT PUT IN SOME MORE
UNEMPLOYMENT ASSISTANCE?
THERE’S NOTHING WRONG WITH THAT.
IT WOULD BE A GREAT HELP TO
PEOPLE.
PRESIDENT TRUMP HAS DONE IT BY
EXECUTIVE ORDER.
PRESIDENT TRUMP IS DEFERRING PAW
ROLL TAXES BY EXECUTIVE ORDER.
AND HE’S KEEPING UP THE I
EVICTION MORATORIUM BY EXECUTIVE
ORDER, BUT WE COULD GET SOME
HELP FROM CONGRESS BY CODIFYING
ALL OF THAT.
I THINK THAT WOULD BE QUITE
USEFUL ALSO.
SO THERE ARE THINGS, THERE ARE
TARGETED SPECIFICS THAT WOULD BE
SMART, THAT WOULD BE SMART.
NOT POLITICAL, NOT GRAB BAG, NOT
THINGS THAT HAVE FAILED TIME AND
TIME AGAIN, STUFF THAT WOULD BE
SMART TO HELP THIS ECONOMY.
WE’RE GOING TO GROW AT 20
PRESIDENT IN THE SECOND HALF --
20% IN THE SECOND HALF, STU.
THERE’S A V-SHAPED RECOVERY.
STUART: THAT’S WHAT I WANT TO
TALK ABOUT.
[INAUDIBLE CONVERSATIONS]
>> LOOK, THE ISM MANUFACTURING
NUMBERS WERE SPECK TACK ALREADY.
THE NEW -- SPECTACULAR.
THE NEW ORDERS COMPONENT WERE
SPECTACULAR.
THE FACTORY NUMBERS THAT CAME
OUT, I THINK LAST FRIDAY OR
THURSDAY, WERE SPECTACULAR.
I’VE SEEN PRIVATE SURVEYS OF,
GET THIS, A TRUCKING BOOM, AND
WE KNOW ABOUT THE CAR BOOM.
SO WE’RE IN GOOD SHAPE FOR THE
V-SHAPED RECOVERY.
BUT, BUT, BUT, BUT, IT WOULD BE
NICE IF THE CONGRESS COULD
DEVELOP SOME BIPARTISAN,
TARGETED POINT, PUT IT IN A
SMALLER BILL AND HELP THE
AMERICAN RECOVERY.
STUART: HOW ABOUT THIS AS A DRAG
ON THE SUPER V RECOVERY, THE
FAILURE -- ESPECIALLY IN THE BIG
CITIES -- TO GET BACK TO SCHOOL?
I WOULD HAVE THOUGHT THAT WAS A
DRAG ON THE ECONOMIC RECOVERY.
BECAUSE IF THE KIDS DON’T GET
BACK TO IN-CLASSROOM LEARNING,
THE PARENTS CAN’T GO BACK TO
WORK.
I MEAN, I WOULD HAVE THOUGHT
THAT WAS A DRAG ON THE RECAN
COVER. -- RECOVERY.
>> WELL, IT MAY BE A RESTRAINT.
I THINK YOUR GENERIC POINT IS
VERY IMPORTANT, KIDS SHOULD GET
BACK TO SCHOOL.
I MEAN, OUR WATCH WORDS HERE
REGARDING ANY OF THESE
CONGRESSIONAL NEGOTIATIONS ARE
SCHOOLS AND KIDS.
SCHOOLS AND KIDS.
NOT HARD TO UNDERSTAND.
AND WE DON’T HAVE TO SPEND A
FORTUNE, WE JUST HAVE TO PROVIDE
THE NECESSARY ASSISTANCE.
BUT YOU’RE RIGHT, THERE COULD BE
IN CERTAIN AREAS SOME RESTRAINT
ON THE RECOVERY, ON THIS
V-SHAPED RECOVERY BECAUSE
PARENTS MAY HAVE TO STAY HOME.
ALL I CAN SAW ON THAT POINT,
STU, YOU’RE RIGHT, LET’S SEE HOW
IT PLAYS OUT BEFORE WE PUT
QUANTITIES ON THAT.
STUART: YEAH.
AND THE VIRUS APPEARS TO BE IN
RETREAT --
>> GOOD NATIONAL NUMBERS.
STUART: ABSOLUTELY --
[INAUDIBLE CONVERSATIONS]
WE SHOULD BE UP MORE.
>> YES.
HEAVENS MORE.
LET’S REOPEN.
WE’RE ABOUT 80% REOPENING.
THE SPIKES IN THE SOUTH AND WEST
DID HAVE SOME RESTATEMENT ON THE
RECOVERY -- RESTRAINT ON THE
RECOVERY BUT NOT NEARLY AS MUCH
AS ANY OF US FEARED, IS SO
THAT’S IMPORTANT.
AND, LOOK, ONE LAST POINT THAT’S
WORTH NOTING, THIS BUG -- THIS
BIG STOCK MARKET BOOM IS
CONTRIBUTING TO A ALL AMERICANSS
NOT ONLY JUST THEIR 401(K)s
AND IRAs AND UNION PENSION
FUNDS, FOR EXAMPLE, BUT IT’S
CREATING HUGE NET WEALTH.
CONSUMER NET WEALTH HAS
INCREASED BY $12 TRILLION FROM
THE PANDEMIC LOW.
WE ARE NOW AT A RECORD LEVEL OF
CONSUMER NET WEALTH.
I LOOKED IT UP THIS MORNING,
IT’S $122 TRILLION.
WE’VE PICKED UP $12 TRILLION
MORE.
STOCKS RISING, HOMES RISING,
PEOPLE HAVE PLENTY OF CASH IN
THEIR BANK ACCOUNTS.
THEY’RE NOT TAKING ON NEW DEBT.
SO THAT’S A GOOD FUNDAMENTAL
POINT AS WELL.
STUART: FROM YOUR DAYS IN
BROADCASTING, LARRY, YOU KNOW
THAT A HARD BREAK IS COMING UP.
>> I GOT IT.
STUART: YOU KNOW HOW IT GOES.
