Economic data points to continued GROWTH

[00:00:00] Speaker 1: WE WILL BRING IN THE GREAT STEVE FORBES, FORBES MEDIA CHAIRMAN, EDITOR IN CHIEF, ART LAFFER, REAGAN ECONOMIST, TRUMP ECONOMIST, KUDLOW ECONOMIST, WE WILL GIVE MR. STEVE FORBES A FANTASTIC AWARD LATER ON THIS WEEK. IT WILL BE MY HONOR TO GIVE IT. ARTHUR, THANK YOU FOR COMING ON. ART, I'LL JUST START WITH YOU. YOU KNOW, I'VE REPRISED THIS ARGUMENT BEFORE, BUT I WANT TO MAKE IT AGAIN. I TALKED TO -- I INTERVIEWED MR. TRUMP ON SUNDAY. HE TALKED ABOUT THE HOST ECONOMY IN THE WORLD. YOU GO BACK AND YOU LOOK AT THE NUMBERS. I'M LOOKING AT NUMBERS, ART. I'M NOT LOOKING AT IDEOLOGY. I'M NOT LOOKING AT POLITICS. I DON'T CARE WHO FOLKS ARE GOING TO VOTE FOR. I'M JUST LOOKING AT THE NUMBERS. IT'S NOT JUST ABOUT GASOLINE. CONSUMER SPENDING IS STRONG. BUSINESS INVESTMENT IS STRONG. LABOR MARKETS ARE STRONG. THE STOCK MARKET IS STRONG. PRODUCTIVITY AND PROFITS ARE STRONG. THE QUESTION IS WHY AREN'T THESE [00:01:05] Speaker 2: FACTOIDS BEING REPORTED, ARTHUR? THAT'S MY QUESTION. I DON'T KNOW WHY THEY'RE NOT BEING REPORTED, LARRY, BUT I DO KNOW THAT THE PROSPECTS FOR THE FACTORS ARE STRONG. THE FACTORS ARE STRONG. THE FACTORS ARE STRONG. THE FACTORS ARE STRONG GOING [00:01:16] Speaker ?: FORWARD. [00:01:16] Speaker 2: AND TO A LARGE EXTENT BECAUSE OF THE TRUMP ADMINISTRATION. IF YOU LOOK AT THE BBB, WE'VE GOT LOCKED IN THE 21% CORPORATE RATE. WE'VE GOT LOCKED IN THE 37% PERSONAL INCOME TAX RATE. WE'VE GOT LOCKED IN THE DEATH TAX. WE'VE GOT LOCKED IN INHERITANCE TAX. WE'VE GOT LOCKED IN 100% EXPENSING. WE'VE GOT WORK REQUIREMENTS IN THE FED CHAIRMAN WE'VE HAD EVER IN THE U.S. AT THIS STAGE IN HIS DEVELOPMENT. WHAT WE HAVE LOCKED IN IS TRUMP HAS NOT ONLY DONE A GREAT JOB, BUT THE PROSPECTS FOR THE FUTURE ARE CONTINUING. IF YOU LOOK AT EMPLOYMENT AND ALL THOSE NUMBERS YOU LOOKED AT ARE LOOKING REALLY, REALLY STRONG GOING FORWARD. AND WE DON'T NEED TO HAVE CONTROL OF CONGRESS TO HAVE THAT HAPPEN BECAUSE TRUMP WILL VETO ANY ATTEMPT THEY WILL HAVE OF UNDERMINING THE GOOD ECONOMICS. I'VE NEVER BEEN MORE BULLISH ABOUT THE U.S. THAN I AM TODAY. I THINK IT LOOKS LIKE A GREAT THREE YEARS IN FRONT OF US BECAUSE OF TRUMP. [00:02:13] Speaker 1: STEVE FORBES, WELCOME AS ALWAYS. LOOK, I DON'T DENY THE GASOLINE PRICE SHOCK. I DON'T -- FOUR AND A QUARTER, FOUR AND A HALF BUCK. I DON'T NEED TO DENY. I DON'T DENY THE DIESEL SHOCK. BUT I WANT TO KNOW IF IT'S SO ALL ENCOMPASSING AS AN OBSTACLE TO THE ECONOMY, WHY IS, FOR EXAMPLE, CONSUMER SPENDING ADJUSTED FOR INFLATION, GROWING AT THREE AND A HALF PERCENT, STEADLY, QUARTER AFTER QUARTER. RETAIL SALES, SAME STORE SALES, ALMOST 10% YEAR ON YEAR. THAT IS NOT ADJUSTED FOR INFLATION. I'M JUST SAYING, IF THE GASOLINE WAS SO TOTALLY, TOTALLY IMPORTANT, AS YOU READ IN THE PAPERS, WHY ARE PEOPLE SPENDING? HOW IS THIS POSSIBLE? OR DOES THE MEDIA GET IT WRONG? [00:02:58] Steve Forbes: THE MEDIA MOSTLY GETS IT WRONG. BUT ALSO PEOPLE'S MOUDS ARE AFFECTED BECAUSE ONE, THEY SEE THAT GASOLINE PRICE EVERY DAY BLARED IN THEIR FACE. SAME THING WITH DIESEL. BUT ALSO, TWO, IT'S AN AFTERSHOCK OR AFTERMATH OF THE WAR AGAINST IRAN. PEOPLE ARE WONDERING HOW THIS THING IS GOING TO PLAY OUT. I WILL BE BLUNT, I DON'T THINK THE PRESIDENT SAID THE COMMUNICATIONS THE WAY HE SHOULD HAVE. THEY SHOULD HAVE GONE AHEAD IN APRIL, FINISHED THE TARGETING AND ALL THAT SORT OF THING. SO PEOPLE ARE IN AN UNCERTAIN MOOD. THAT'S THE THING. UNCERTAIN MOOD. SO WE'VE HAD PERIODS BEFORE. THEY'RE UNCERTAINLY SPENDING THEIR KEISTERS OFF. BUT THAT'S THE THING. PEOPLE'S MOODS DON'T REFLECT WHAT THEY'RE ACTUALLY DOING. AND ONE OF THE THINGS THE REPUBLICANS HAVE FAILED TO DO IS MAKE A CONVINCING CASE THAT PEOPLE WILL SAY, OKAY, I'M WORRIED ABOUT IT. I DON'T LIKE THINGS THE WAY OF GOING IN THE WORLD, ALL THAT SORT OF THING. BUT THINGS SEEM TO BE PRETTY GOOD. BETTER NOT ROCK THE BOAT. AND SO I THINK IT'S ON THE REPUBLICANS THAT HAVEN'T DONE A GOOD JOB. YES. AND ALSO REINFORCING THE GOOD NEWS BY COMING UP -- AND YOU HAMMER THIS SO OFTEN -- NEW TAX CUTS. YES. PEOPLE FEEL OKAY. THINGS ARE OKAY. BUT BY GOlly, I CAN LOOK FORWARD THAT IT'S NOT GOING TO DISAPPEAR NEXT YEAR OR THE YEAR AFTER. EVEN IF THE DEMOCRATS WIN CONGRESS. PRESIDENT TRUMP WANTS TO PUSH TAX CUTS. THAT'S GOOD IN THE FUTURE. WELL, I THINK HE DOES. I THINK HE ABSOLUTELY DOES. YES, BUT THE AMERICAN PEOPLE HAVEN'T SEEN A CONCRETE PROPOSAL. NO, YOU'RE RIGHT. THE WAY HE DID WHEN HE RAN IN [00:04:29] Speaker 1: IT TWO YEARS AGO. I GAVE IT MY BEST SHOT. BUT, YOU KNOW, I WENT A FEW AND I LOSE A FEW. YOU HELPED ME WITH IT. ARTHUR, YOU HELPED ME WITH IT. BUT, ARTHUR, I JUST WANT TO ADD -- IT'S ALMOST A TECHNICAL QUESTION, ARTHUR. ALL RIGHT. STEVE'S POINT ABOUT, YOU KNOW, CONSUMER WORRIES, UNCERTAINTY, WAR. I DON'T DISCOUNT OR DENY ANY OF THAT. BUT I'M JUST SAYING, ARTHUR, IF GASOLINE WERE THAT IMPORTANT, WHY ARE PEOPLE SPENDING AT RATES THAT WE HAVEN'T SEEN IN 20 YEARS PLUS? THAT'S ALL I'M SAYING. IT'S A SIMPLE FACTOID TYPE QUESTION. BECAUSE, LOOK, MAYBE ENERGY IS NOT AS IMPORTANT TO THIS ECONOMY AS IT USED TO BE ON A PER CAPITA BASIS, ON A PER UNIT OF GDP BASIS. OKAY? MAYBE THE ECONOMY IS SO DARN GOOD AND SO MANY PEOPLE ARE WORKING AND SO MANY PEOPLE ARE PROSPERING INCLUDING THEIR STOCK MARKET PORTFOLIO. MAYBE THAT'S OVERCOMING A LOT OF THE GASOLINE. ALL I KNOW IS, ARTHUR, RIGHT? WE'RE ECONOMISTS. WE TALK FACTS. THE FACTS ARE THREE AND A HALF PERCENT REAL SPENDING BY CONSUMERS IS A VERY BIG NUMBER. YEAH, IT IS, LARRY. [00:05:34] Speaker 2: BUT PEOPLE KNOW ALSO THAT THE OIL NUMBERS AND THE GASOLINE NUMBERS AND ALL THAT ARE GOING TO COME WAY DOWN WHEN THE IRAN CONFLICT IS SETTLED OR WHEN THE ISSUES OF THE STRAITS OF HARMUS, ET CETERA, ARE SETTLED THERE. THEY KNOW THAT. TRUMP DECONTROLLED OIL. HE DECONTROLLED. WE HAVE THE BEST PRODUCTION FACILITIES GOING ON NOW IN THE U.S. WITH DECONTROLLED OIL. PRICES ARE GOING TO COME WAY, WAY DOWN. IF THEY THOUGHT THIS OIL SITUATION WAS GOING TO LAST FOR THE NEXT 50 YEARS, THEN YOU WOULD BE RIGHT. IT WOULD BE A BIG PROBLEM. BUT THIS IS NOT THE PROBLEM. GETTING RID OF IRAN SOLVES ONE OF THE BIGGEST PROBLEMS THE WORLD HAS EVER SEEN IS THAT COUNTRY IS A RENEGATE OUTLAW NATION AND WE'VE TAKEN CARE OF THAT AT LEAST FOR THE TIME BEING. SO WHEN I LOOK AT THIS AND YOU LOOK AT DECONTROL AND MEDICAL CARE, PRICE TRANSPARENCY, ALL OF THIS STUFF, EVERYONE KNOWS THE WORLD IS GOING TO BE A LOT BETTER, LARRY. [00:06:25] Speaker 1: WAIT A SECOND. I HAVE TO CHANGE THE RIP. YOU ARE RIGHT. YOU REMINDED ME DRUG PRICES, PRESCRIPTION DRUG PRICES HAVE FALLEN ABOUT 4% IN THE PAST YEAR. THAT BY ITSELF IS REMARKABLE. HELLO. BY THE WAY, HOLD ON. I GOT ONE FOR YOU. STEVE, NOT ONLY HAVE PRESCRIPTION DRUG PRICES FALLEN, EGG PRICES. NOW LET'S GO BACK. REMEMBER THE EGG PROBLEM. THAT WAS SUPPOSED TO FRIE THE REPUBLICAN PARTY. WE'RE GOING TO FRIE THE REPUBLICAN PARTY WITH OR WITHOUT ITS BACON. SO MY DEAR FRIEND BROOKIE ROLLINS, WHO IS THE AGRICULTURE COMMISSIONER, AGRICULTURE SECRETARY, SHE WAS TAKING MAJOR HEAT THE FIRST COUPLE MONTHS OF THE ADMINISTRATION BECAUSE EGG PRICES HAD SHOT UP. AND ALL THE MEDIA WANTED TO TALK ABOUT WAS EGG PRICES GOING UP. OKAY. SO I WAS LOOKING AND I WAS GOOGLING AROUND THE OTHER NIGHT, WATCHING THE OTHERWISE BORING WORLD SERIES GAME. AND IT TURNS OUT EGG PRICES, AT LEAST AT WHOLESALE, HAVE FALLEN ABOUT 90%. RIGHT? SO GASOLINE IS UP, BUT EGG PRICES ARE DOWN. NOW WHEN WAS THE LAST TIME YOU READ ABOUT FALLING EGG PRICES? EVER? EVER? DOES THE MEDIA EVER REPORT THAT? [00:07:29] Steve Forbes: NO, BECAUSE IT'S INCONVENIENT. BUT ALSO, BUT ALSO IT'S A VIVID DEMONSTRATION OF WHAT FREE MARKET ECONOMICS DO. IT WAS DISEASE THAT REDUCED THE HEN HERDS, YOU MIGHT SAY, AND REDUCED THE NUMBER OF EGGS. AND SO GUESS WHAT? THEY BREAD MORE CHICKENS. GUESS WHAT HAPPENS? GET MORE EGGS. [00:07:48] Speaker 1: YES. AND THE PRICE CAME DOWN. WASN'T THAT A SHOCKING THING? THAT'S UNBELIEVED. AND NOBODY -- I MEAN, I GOT TO MAKE A COMPARE. I DON'T KNOW. IT'S A VALUE JUDGMENT WHICH IS MORE IMPORTANT, EGGS OR GASOLINE, ALL RIGHT? WE DON'T HAVE TIME ON THIS SEGMENT TO GO THROUGH IT. WE'LL ALL DO SOME MORE RESEARCH, WHICH IS MORE IMPORTANT, HIGHER GASOLINE, LOWER EGGS. ALL RIGHT, WE CAN DO THAT AT A TIME. YOU CAN DO THAT. I DON'T KNOW. I DON'T KNOW IF THE CHICKEN CAN GET -- OH, GOD. ARTHUR, I GOT ANOTHER ONE FOR YOU. AMERICAN INGENUITY. WE ARE WINNING THE RACE IN ADVANCED TECHNOLOGY. WE ARE WINNING THE AI RACE. THERE'S NO QUESTION ABOUT THAT. IF YOU LOOK AT THE BIGGEST COMPANIES IN THE WORLD, THIS IS NOT -- TRILLION-DOLLAR CLUB. 11, LET ME SEE, 13 OUT OF 15, IF I'M NOT MISTAKEN, ARE AMERICAN COMPANIES, ALL RIGHT? NVIDIA, APPLE, ALPHABET, MICROSOFT, AMAZON, SPACEX, META. GO THROUGH THE WHOLE THING. TESLA, BERKSHIRE, ELI -- MICRON TECHNOLOGY. ARTHUR, THAT'S NOT A COINCIDENCE. SEE, THAT'S ANOTHER THING. INVESTMENT IS COMING HERE BECAUSE WE TREATED HOSPITABLY WITH LOW TAXES AND LIGHT REGULATIONS AND AMPLE ENERGY. THAT'S NOT A COINCIDENCE. THEY ARE COMING HERE. WHEN TRUMP TALKS ABOUT THE HOTTEST ECONOMY IN THE WORLD AND THE FOREIGN INVESTMENT. BUT THE MEDIA DOESN'T -- WHEN THEY REPORT THAT STUFF, THEY REPORT IT IN QUOTES. LIKE HE'S SAYING THAT BUT IT'S NOT TRUE. BUT THE FACTS SHOW THAT IT IS [00:09:09] Speaker ?: TRUE. [00:09:10] Speaker 2: YOU'RE COMPLETELY RIGHT. BY THE WAY, STEVE FORBES, CONGRATULATIONS. THE NATIONAL REVIEW BUCKLEY AWARD IS GREAT. I THINK THAT'S THE ONE YOU'RE GETTING THIS WEEK. CONGRATULATIONS, SIR. IT'S JUST WONDERFUL. AND BECAUSE OF PEOPLE LIKE CONGRATULATIONS. EVERYONE WANTS TO INVEST IN THIS COUNTRY. EVERYONE WANTS TO INVEST IN THIS COUNTRY BECAUSE YOU SAY IT THE WAY IT IS. AND YOU RECOMMEND IT THE WAY IT'S BEEN. AND WE'VE BEEN VERY LUCKY IN HAVING REALLY GOOD POLICIES WITH GOOD PRESIDENTS. AND THIS IS NO EXCEPTION. WE'VE GOT THE GREATEST ECONOMY GOING AND WE'RE GOING TO MAKE IT EVEN GREATER GOING FORWARD. I AM JUST SO EXCITED ABOUT THE NEXT 30 YEARS. I JUST SEEN'T BUT ROSES AND BLOSSOMS AND SUNSHINE. YES. [00:09:47] Speaker 1: I DON'T CARE WHAT THE -- YOU DON'T HAVE TO BE REPUBLICAN OR DEMOCRAT TO THINK ABOUT A GOLDEN AGE FOR AMERICA. ALL RIGHT. BUT WE MUST MAINTAIN OUR FREE [00:09:56] Speaker ?: ENTERPRISE. [00:09:56] Speaker 1: WE MUST MAINTAIN OUR FREE ENTERPRISE. WE MUST. THAT'S IMPORTANT. AND THAT'S WHAT THIS ELECTION IS ABOUT IN LARGE MEASURE. I'M JUST SAYING. I'M JUST SAYING. LOOK AT THE FACTS. TRUMP IS RIGHT ON THE FACTS. YOU MAY -- YOU MIGHT WANT TO TWEAK THE POLICIES BUT TRUMP IS RIGHT ON THE FACTS. I WILL SAY TO MY FRIEND STEVE FORBES, ONE BUCKLEY PRIZE WINNER, NAMELY MYSELF, IS GOING TO AWARD ANOTHER ONE, NAMELY STEVE FORBES. AND IT WILL BE MY GREAT HONOR THURSDAY EVENING. THANKS TO BOTH OF YOU. THANKS FOR THE GREATEST STORY. 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