tv Washington Journal Stephen Moore CSPAN September 11, 2019 4:10am-4:39am EDT
washington journal" continues. host: stephen moore joins us. he is the co-author of the book cnomics." guest: i do not see a recession, i never say never. but the economy is pretty healthy. if you are an american worker looking for a job, this is probably the best labor market in my lifetime. we have seven point 3 million unfilled jobs, that is larger than the higher population of indiana. we have about 6 million unemployed, but if we put every unemployed american in a job we have one million jobs that we still are not able to fail. that is a good situation and it has allowed workers to pick up
their wages, because if you get competition and employers need to hire people you will pay them more and you are seeing that with target, walmart, and i a lot of the retailers in the country. that is a good thing. wages are ride -- is what -- are rising, and manufacturing is weak. businesses,ding by which is something that i like to look at, that is down a little bit this year, and the growth rate is now down to about two. a lot of this is leading into something i know you want to ask me about which is the trade situation. this is the dark cloud over the economy. i would give the economy a be --b+ right now. this recovery began in june 2009. this is one of the longest recoveries without a recession on record. host: back to trade, critics
would say that the trade policies are causing the slowdown. is the president's approach a right one? he -- i tend to see what i tend to support what he is doing. every day we see that china is a menace on the world scene. a lot of the legal trade practices. they have never really opened up their markets united dates as we have to them. they are increasingly hostile in terms of their building up their military. i am worried about what they call their liberation army moving into hong kong. i believe that those hong kong freedom fighters deserve the nobel peace prize this year. they are an adversarial country to the united states. i give trump a lot of credit for standing up to them and being one of the first modern presidents to say this is not a friend. i think a lot of people would
agree that china is a big problem. so, i am hopeful that we get a trade deal, because you know what is so frustrating? if president trump and president xi would sit down. china will have to make concessions, we cannot live with the current situation. we lower our tariffs and they lower their tariffs, that would be great for both countries. i think the economy would explode. i think trump is surprised at how hard it is to get the government of beijing to make a deal. host: one of the critics of this process, one of the editors of " the washington post," said "the biggest economic lie was that trade wars would be easily one -- won." there is some truth to that. i do think the idea that this was going to be easy was wrong, because we are almost two years into this trade war.
there is a big debate going on among economists about who is paying the cost of these tariffs. borne iple say it is american consumers, but it is not that simple because the truth is if china could raise their prices by 20% they would have done it a long time ago. there is some evidence that the chinese government, manufacturers, and producers are eating a lot of that cost, they are charging lower than they used to charged take account of the higher tariff. hurt and iare being think the american people will have to decide if this is the right fight in the right time to fight it. i happen to think yes, but some of my colleagues do not agree with me on this. i hope there is a peaceful and as i said,is, and once we get the trade deal
amount, whether it will happen next month, or next year, i think the economy explodes. that is one of the things slowing growth. 202-748-8000 for democrats. 202-748-8001 four republicans. 202-748-8002 for independents. and you can tweet your thoughts to stephen moore. on the topic of trade, the usmca, do you see ratification by our congress and what is the result. about how wee talk win against china, do not care, everyone cares -- once the u.s. to come out ahead. one way you do that and one way that trump -- one mistake that trump made was picking fights with some of our allies in europe, mexico, canada, and japan, and not isolating china as the bad actor. if we could get the
canada-mexico trade agreement ratified the senate and the congress it would be a plus, because i love the vision. this was ronald reagan and bill clinton's vision, to have the north american competent -- continent be a free-trade zone. it had to be modernized, and let us get that done. the frustration that the trump administration has is all we want from nancy pelosi and all we are asking for, bring that trade agreements to a vote, let us just have a vote. if it gets a vote, i believe it will be ratified and that puts more pressure on china to make a deal. there areou think drastic differences between old and new nafta? guest: there are modernizations and there are some things in the new nafta that i do not like, but i think it is an up needed version. how old was nafta? 25 years old? and needed to be modernized but
it is not substantially different. all the more reason to get it done. it helps canada, new mexico, and u.s.. city, northlizabeth carolina. republican line, ray you are up first. caller: thank you for taking the call. first of all i want to thank the heritage foundation for all of their hard work that they do. it is excellent. guest: very nice of you to say that. i hope to people go and see some of the research we have done. caller: i totally support trump and his efforts. i totally agree with you, because this man is the best answer for our economy. compare that with what the democrats are offering. they are offering socialism, they want big government and
high taxes to pay for it. -- has revolutionized this economy and is the best person, the best person to keep this economy going. than people tobs fill them. guest: i agree with a lot of that and i think that donald trump is far from perfect. a lot of people asked me what is my book? and i think it is bringing a businessman's perspective, and i think that has made a big difference. politicians in the past two have been in the white house have not known a lot about business and how to make a profit, meet a payroll and grow a business. that pro-business attitude, putting america first means putting american businesses and workers first in front of other countries' interest. i agree with this caller that the school was to get the
economy to full appointment to get wages up. i did a report showing that the average family over the last 2.5 years since trump took office has about $4000 increase in $1400 in taxnother cuts, so the average family is about $5,000 richer than they obama left office, and that is a lot of increase in income and it puts lights the idea that elizabeth warren and joe biden, and bernie sanders are saying that only the rich have benefited from the policies. that is factually untrue. host: we will hear from cleveland, ohio. democrats line. caller: i want to say that i do agree with the president on one thing, that we need to protect american jobs. i just do not think he is doing a good job of it. my main issue with the usmca and with nafta 2.0, it is not doing
enough to protect american workers. i have family in the youngstown area, and every time i go out there it breaks my heart to see the plant broken down, because that is something that the president was going to help those people keep their jobs, and their job -- gone and not coming back. he would go ahead and fight harder to keep these american jobs so i don't not and he is fighting hard enough. guest: he has a good point. some of the jobs in some of jobs,old manufacturing through technology and trade, some of those are just going to go away. the fact is that we have still stellmi -- steel mills. i listen to the democrats talking about climate change, and it was bernie sanders and a
couple of others who said that they wanted to ban fracking, which is the stupidest idea. fracking has rejuvenated the ohio and pennsylvania, and west virginia economies. we are producing more natural gas. it opened up the u.s. to massive amounts of oil and natural gas that we do not have to import the stuff, it is like the cure for cancer in terms of energy. the idea that democrats would want to abolish that. you talk about preserving jobs, get rid of oil and gas , you are talking about putting millions of blue-collar workers out of their jobs. host: this is steve greene from twitter asking a question about the rising national debt, saying that "we are borrowing tons of money and lowering taxes, can our gdp pay off all of this debt, can you explain it? caller: -- guest: it is the one black mark
of both parties. i am a republican, but the republicans deserve more of the blame because of this big exploding debt and i cannot defend it. it is not a patch problem. if you look at what happened in haveand 2019, because we almost finished a fiscal year, we got the data in for those years, and in 2018 and 2019, the federal treasury took in more tax revenues than any other single year in american history. it is not a tax problem, it is an overspending problem. democrats want to spend money on social problems and republicans want to spend money on the military. we have got to start imposing some spending discipline. i hear democrats sending -- saying they want to spend billions, but where are they going to get the money to do that. host: does the president have to change his attitude? i wish she i said
would be tougher on spending, and so far the trump administration, my good friend runs the budget office, and he has submitted tough budgets, but they go over to congress and they die there. notp has, in my opinion, fought hot enough for fiscal discipline. host: when was the last time you talk to the president about this? guest: three months ago. the president has done an amazing job, and his view is that we will put the biggest priority on getting the economic risingway out -- up and wages, and then we will deal with the debt problem. i think that is the right order of things. in his second term, he will have to do something about this. we cannot live with trillion dollar deficits. the one thing bailing us out is these record low interest rates. i saw a piece saying what the
federal government should do is start issuing bonds 50 and 100 years lacking a low interest rate so that we are not susceptible to being -- to big increases in rates. host: this is from mike, seattle, washington. republican line. caller: we made the chinese rich so they do not need us anymore. they want the president out of office as much as the democrats, and they need to have everything made in america that can be possibly meet -- be made in america because they do not want to deal, they want the president out and install. they have robbed a dozen piggy banks and now we are educating close to half a million chinese students. guest: the gentleman is right. you asked me can trump get this deal done, i think, clearly the ball is in beijing's court, they will have to make major concessions because we cannot live in the current situation.
this relationship has to stop, but a lot of people are saying leaders will just wait trump out and see if he loses the next election and if something like joe biden gets in, he will be more of a patsy when he comes to china, that is a problem for trump. yes to try to get this thing done before the election, and the chinese are stalling. host: illinois, james. hello. caller: i would like to say that i am so sick and tired of people talking about how great ronald reagan was. he was not that great. as a matter of fact he's the one that started the down client of manufacturing in this country. he is the one that told companies that we are going to give you a big tax break, and you are going to build companies, and higher people. they built factories and they hired people, the problem was is that they did not hire them
here. your heritage foundation has spent a lot of talking about how great they are, and really they are not. they are only for the rich people and they could care less about how poor people survive in this country. host: we will let our guest respond. guest: i disagree with that. worstd the 1970's, the decade since the great richard nixon, jimmy carter, and jerry ford, was a disaster. i remember this very vividly. -- rates of deflation of inflation. people said that japan would take over the world, and the u.s. was in the twilight of its economic supremacy, and reagan came in and we talked -- cut our tax rates, we deregulated the economy, we sweated inflation out of the system and had an
economic doom that lasted almost blue --, the economy boomed under reagan and clinton. those were prosperous years, we need to return to those kinda policies and i think trump is doing that. reagan saves the american economy and won the cold war. host: is there some type of ripple effect from president obama's efforts? guest: i am not a big fan of his policies. i think he did the best that he could, but it was a meager recovery. i mentioned that this has been enabled long recovery, but it has been flat. for middle-class workers there were no gains in income under obama, in fact, in the first three or four years we continue to lose income. i will give him a c grade. people have called in about the debt, under barack obama the trillion toom $10
$20 trillion. host: this is a fewer off of twitter saying that "barack obama had a debt heading toward zero." first graph that larry kudlow and i showed donald trump was the congressional budget office showing that the debt is going up every year in the future over the next 20 years. the deficit -- they expected it to go up every year, but not down. this is a long-term problem that we have to deal with. it is the entitlements, i love this idea that trump has talked about but has not been put into effect. i have to do is cut every government spending program by a penny. every dollar they get, you give them $.99. the next year you give them $.98, and you do that for five years and you have cut the deficit in half. cutting five cents out of every
dollar the government spends, i think that the government should cut $.25. let us -- let us have spending disciplined -- discipline. host: this is a democrat line, in pikesville. caller: thank you for taking my call. i am glad you have the representative from the heritage foundation because i believe there policies are just out of line and do not make sense at all. thet of all, donald trump russians and chinese a favor by having this tariff war, because all he has done is deliver the russians and brazilians the market. that is why they are burning the forests. ago, the or 30 years chinese did not have a market open to the west.
the market open to the west and we gave them a 60-40 split with the advantage going to them because it was a closed market. a questioni ask you respectfully and i think you make a point? let us say you are president trump's advisor and you will advise him what to do about china, what would your advice be? caller: my advice to him loads --deal with china -- would with dealing with china would be to following into that agreement , surrounding china economically and forcing them to the table to deal with you, not to use tariffs and go to war with them. pickingican public is up the tab on. he is raising taxation without representation. host: thank you. guest: a lot of the comments are saying maybe we should've stayed in the tpp, and that gets into
my point of isolating china because people do not realize that china was not part of tpp, it was australia, japan, and singapore. i thought it was a flawed agreement, but i think there is a lot to what this gentleman has to say. host: bill, reading, pennsylvania. republican line. i have been watching for a long time. you are a nice guy and you know what you are talking about. presidents all these years have made a lot of big mistakes. is trying to do the best for this country. why doesn't anybody stop giving him a hard time and work with him so that he can do the job and finish it? nobody does, they call him every name in the book, i have never
seen such a president be destroyed by the democrats, and republican. i am 100 percent republican. host: on matters of the economy, what would you like to address specifically? not play games and get your pockets filled and do nothing. guest: i am glad this gentleman called in. people ask me why did you get behind double -- donald trump? about donaldke trump, and this has to do with the economy, i went to his early rallies when he was getting started, and what i saw, because i have in republican politics for a long time, people who would show up are not rich republicans, they were blue-collar workers in places like youngstown, ohio and eerie, pennsylvania. -- erie, pennsylvania.
it felt like neither party had needs,tentive to their and president trump pushed a lot of buttons with these folks. for the most part, i am proud of having played a small part in putting this together. has been acut, which spectacular success in getting jobs back. we did the deregulation of energy. yearse first time in 50 we are producing more oil and gas than we are having to import so we do not have to bring -- send all our money to places like saudi arabia and the middle east, and that is a great story. i do not ways agree with this president, i have skepticism on his trade policies but the record is god. if the economy stays strong i do think trump will be easily reelected. if the economy goes south on him, i think he has problems, because you look at the opinion trump,40% of people like
40% is like him in the 20% in the middle, and he has to that he isose people doing the right things. line, southndent carolina. steve, hello. caller: you stole my thunder there from a politically strategic standpoint, he might have gotten -- waited to get into the chicken contest. the economy is doing well and i do not believe that it is such a hard concept to grasp that when -- ourer stimulus to economy depends on people spending money. we like to make inventory disappear off the shelves and we know that the inventory has to be replaced which affect somebody in another part of the country and their jobs and they in turn buy from their local people. it even affects factories and
other parts of the country down to people who change light bulbs. i do not know why it is so hard for people to grasp. down here in south carolina we are a right to work state. bush 41 and the prime minister of canada and the president of mexico engineered nafta. the president of mexico engineered nafta. and of course, clinton signed it into law. the textile industry is coming back -- not textiles, but we the biggest bmw plant in the world. we have amazon prime hub. this works. if people quit griping a route -- about making the rich richer, it's about giving people jobs. it goes to taxes. we're running out of time, so go ahead. guest: this gentleman talks about the american consumer.
the reason you know the economy is really strong right now, especially for families, is just look at how they are spending. people are spending money. lowe's, home depot, those companies are recording record sales. people have more money in their pocket books but they are going out and spending it. it helps the economy. i want businesses to be spending and investing. that's where i'm nervous right now. the last point i would make is that people talk about blue-collar jobs. i remember a month or two before the election, barack obama gave a speech where he mocked trump and said how is he going to bring back these manufacturing jobs? with a magic wand? in the last two and a half years , we have created 1.3 million manufacturing, mining, and