Art Laffer: US is ‘bright light’ in world economy

Art Laffer: US is ‘bright light’ in world economy


THIS IS THE ADP REPORT ABOUT IT WAY. HERE NOW IS ART LAFFER, FORMER REAGAN ADVISOR, CHAIRMAN OF LAFFER ASSOCIATES. WHAT DO YOU MAKE FIRST OF ALL OF THIS NUMBER AND WHAT DOES IT TELL YOU ABOUT THE BIG GOVERNMENT JOBS NUMBER COMING LATER?>>HI, MELISSA. I DON’T TAKE THIS NUMBER VERY SERIOUSLY AT ALL. LOOKS LIKE RIGHT IN LINE AND IN REASON. WHAT I REALLY WANTED TO SAY LAST MONTH’S JOBS NUMBER LOOKED AT THE ESTABLISHMENT NUMBER. I THINK IT WAS UP 130,000 OR SOMETHING LIKE THAT. IF YOU LOOK AT THE HOUSEHOLD NUMBER IT WAS UP 590,000. I WOULD EXPECT THE ESTABLISHMENT NUMBER, THE OFFICIAL NUMBER TO BE UP QUITE SUBSTANTIALLY ON FRIDAY THERE IS NO MONEY BACK GUARRANTY IN MY COMMENT, PLEASE BUT I WOULD EXPECT THE ESTABLISHMENT NUMBER TO LOOK VERY GOOD TOMORROW. MELISSA: WHAT WOULD THAT TELL YOU? YOU HEARD ALL THE HEADLINES TODAY THAT THIS IS SHOWING THAT THE ECONOMY IS SLOWING DOWN. WHAT DO YOU THINK?>>WELL, WHAT I THINK THE REST OF THE WORLD IS SLOWING DOWN DRAMATICALLY. JAPAN ADDED TWO CENT SALES TAX INCREASE WHICH IS DEVASTATING TO AN ECONOMY THAT HAS NOT SEEN PROSPERITY FOR 40, 50 YEARS. I MEAN IT IS REALLY TERRIBLE. ALL THE REST OF THE WORLD IS DOWN. THE U.S. IS BEING HIT BY THAT AS WELL. BUT WE’RE THE BRIGHT LIGHT IN THE WORLD ECONOMY. WE’RE DOING NICELY. THE TAX BILL COMING THROUGH WELL. WE’RE HAVING ALL SORTS OF GOOD DEREGULATION RESULTS. I’M QUITE OPTIMISTIC ABOUT THE U.S. I DENT SEE RECESSION AT ALL. I DON’T SEE ANYTHING IN THE WAY OF POLICY. OTHER NEGATIVE IMPEACHMENT OF THE PRESIDENT THE PROSPECTS OF THAT. THAT IS RIDICULOUS. THAT WILL HURT THE ECONOMY. HE IS A GREAT PRESIDENT AT THE STANDPOINT OF ECONOMICS AND I WISH THEY WOULD STOP. MELISSA: WHY WOULD IT HURT THE ECONOMY SHORT OF REMOVING HIM WHICH DOESN’T SEEM LIKELY?>>IT GETS TIME TO BE DIVERTED AND IN LOOKING AT ECONOMY AND THERE IS LOTS OF THINGS LIKE THAT. USMCA WON’T BE PASSED. IT SHOULD BE PASSED. HE HAS A GREAT AGENDA SITTING THERE. IT TAKES AWAY TIME AND ENERGY AS THE WHOLE TIME IN OFFICE HE HAD THIS HARRASSMENT. AND HE HAS BEEN A GREAT PRESIDENT FROM THE STANDPOINT OF ECONOMICS. MELISSA: REALLY WON’T GO FORWARD? IN A PRESS CONFERENCE EARLIER TODAY NANCY PELOSI IN BETWEEN BREATHS ABOUT IMPEACHMENT WAS TALKING ABOUT THE FACT THEY ARE CLOSE TO THE FINISH LINE. SHE SAID THEY’RE MOVING IN THE DIRECTION YES. WE HEARD LAST FRIDAY FROM OUR OWN CHAD PERGRAM MOVING CLOSER TO THE HILL. NEGOTIATION IS GOING ON. IT IS IN EVERYONE’S BEST INTEREST. YOU DON’T THINK THEY WILL GET THAT OVER THE FINISH LINE IN SPITE OF WHAT IS GOING ON?>>I BELIEVE IT WHEN I SEE IT. I HAVE NOT SEEN THE NANCY PELOSI AND HOUSE DEMOCRATS AGREE WITH TRUMP ON ANYTHING. THEY REALLY DON’T. MELISSA: YEAH.>>THE QUESTION IS ALSO WHATMENTS THEY WILL PUT IN IT, WHAT CHANGES THEY WILL PUT IN IT, IF THEY PUT IN ENOUGH BAD AMENDMENTS AND BAD CHANGES IT WILL DILUTE, IF NOT ELIMINATE REALLY GOOD PLUSES OF THAT BILL. THERE ARE LOTS OF OTHERS GOING ALONG — MELISSA: ART, QUICK.>>YES, SORRY. MELISSA: THE ACE IN HIS POCKET WOULD END THE CHINA TRADE WAR, NO?>>OH I HOPE SO. THAT IS THE ACE IN THE POCKET BUT I DON’T KNOW IF HE CAN DO IT BY HIMSELF. HE CAN’T DO IT WITHOUT SOME CONCESSIONS, ESPECIALLY ON INTELLECTUAL PROPERTY AND TRANSFER OF TECHNOLOGY. I DON’T KNOW HOW HE CAN DO IT CONSISTENTLY WITHOUT THAT. BOY, WOULD I LOVE TO SEE HIM DO THE CHINA DEAL. THAT WOULD SEND THE MARKET OFF TO THE MOON.

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