U.S. House of Representatives Legislative Business CSPAN September 15, 2016 1:41pm-2:54pm EDT
>> video here from new york. hillary clinton arrive on the car mack for her flight to greensboro. on board the plane today telling reporters she's feeling well. she's been resting after her bout with bacterial pneumonia. and speaking this afternoon. a look at the former secretary of state boarding her plane. >> hillary clinton on her way to greensboro, north carolina, we really have live coverage of her speech at 3:45 eastern here
on c-span. meanwhile, donald trump this afternoon earlier today laid out his vision for managing the nation's economy as president. he spoke to the new york economic club today. introduced here by his vice presidential runningmate, mike pence. r. pence: thank you. it is a great honor for this smalltown boy to be in the big apple and to introduce today the next president of the united states. [applause] particular honor for me to be here at the economic club of new york, a historic and storied place. and a place where men and women who drive not only this great city but much of the dynamic
american economy over the decades of our nation's history in so many different ways, each one of you makes an extraordinary difference. i'm honor to be before you today. the also great to be back in new york city. i've been on the campaign trail now for the last couple of mobblets. this is my first time back -- months. this is my first time back since i accepted my runningmate's invitation to run and serve as the next vice president of the united states of america. [applause] i was humbled to accept that invitation. with my wife as my side. but i did it in a heartbeat. because our party has nominated a man for president of the united states who is the embodiment of this great city. and this great nation. he's a builder, he is a dreamer and i believe when he becomes president he will make america great again. [applause]
we find ourselves on this day in the middle of september, 2016, in the midst of the weakest economic recovery since the great recession. at this historic forum, the republican nominee for president of the united states will do what so many other american leaders have done from this very podium. he will take this moment to outline a new economic vision, a vision to make this country great and strong and prosperous again and it is truly my privilege to introduce him today. you all know him well here in new york city. i've just gotten to know him over the last few months. but i got to tell you, i had someone walk up to me the other day and they said, i've known donald trump for the last 30 years and i really like him. i told him, i've known him for the last 120 days and i really like him. this is a good man who loves his family and loves this country and he will be a great resident of the united states.
[applause] we've become fast friends. for all the world it seems like i've known him all my life. like so many other builders and entrepreneurs, he's a dreamer, he's a driver, he's a man who speaks his mind. but i have to tell you, what you may not know here in the big apple is that clear-eyed vision and that leadership has literally inspired a movement of people all across this country. i was in scranton, pennsylvania, last night. he was in ohio. everywhere i go campaigning with donald trump or for donald trump i see firsthand that he's given voice to the aspirations and the frustrations of the american people, like no other president in my lifetime since ronald reagan. i think the key is that donald trump has never forgotten the men and women in this -- who built this country. men and women who worked with their hands, who grow our food, who build our roads and bridges and protect our families. and they know it.
this is a challenging time. for working families all across this country. the truth of the matter is, as i stand before you today, not only are we in the midst of the weakest economic recovery since the great depression, but we're -- we also have an economy that in the last quarter only grew by 1.1%. we have the lowest labor participation rate since the 1970's and most heartbreaking of all, from 7 1/2 years ago to today, there's nearly seven million more americans living in poverty than there were in 2009. you know, for all the world, these days remind many of us of the 1970's. then as now we had one candidate who spoke of a national malaise and of accepting a status quo. and then there was another candidate who spoke with confidence of a boundless american future and the american people chose that optimistic future and i believe
they will again. [applause] the other party tells us this is the best that we can do. that the american people know better -- but the american people know better. it's nowhere near the best we can do, it's just the best they can do. and when donald trump becomes president of the united states of america, we're going to get this economy moving again for every city and every town and every state in the nation. [applause] today you'll hear donald trump again describe that vision that will unleash the bounledless potential of the american economy -- boundless potential of the american economy. an american economy that will be driven by empowering working families and businesses large and small. encouraging entrepreneurs to invest, to build and to grow and to produce right here in america again. and so let me say it is a joy for me, it is a privilege for me. but it is also a distinct honor
to introduce to you the next president of the united states of america, donald trump. [applause] [applause] mr. trump: thank you very much, ladies and gentlemen. it's a great honor to be with you. we had some really incredible things happen today. the polls are coming out, we're leading in so many polls. i can't tell you, i don't know where to begin. but that's a good feeling. we are, i guess cnn just came
out, we're leading nationwide with cnn. we're leading in ohio and we're leading just -- i think it just me out, we're leading in north carolina, florida, we're leading and we're having a lot of fun. we're having a lot of fun on the campaign. and on the trail. i just wanted to say that the always a lot of fun when you come up and the people don't have the teleprompter working, but that's ok. [laughter] lucky i brought some notes. today i do want to outline a plan for american economic revie value. it's a bold and ambitious and forward-looking plan to massively increase jobs, wages, income and opportunities for the people of our country. great people of our country. i will tell you. my plan will embrace the truth that people flourish under a minimum government burden and
will tap into the incredible unrealized potential of our workers and their dreams. right now 92 million americans are on the sideline outside of the work force and they're not a part of our economy. t's a silent nation of jobless americans. and look no further, and i mean no further, all you have to do is look at flint, where i spent a lot of time, the city of flint. and what a disaster has taken place. the jobs have been stripped from the community and its infrastructure has totally collapsed. in 1970 there were more than 80,000 people in flint working for general motors. . day it's less than 8,000
that's going down. and they're making very, very little and people are trying to go down to that $8,000 mark. what we're doing is ford, ford has announced just yesterday that they're moving their small car production facilities to mexico. and i've been talking about this a long while and i think that's maybe one of the reasons that we're doing so well in ohio and michigan and lots of other places where cars and parts are involved. to think that ford is moving its small car division is a disgrace. it's disgraceful. disgraceful that our politicians allow them to get away with it. [applause] really is. it used to be cars were made in flint and you couldn't drink the water in mexico. now cars are made in mexico and
you can't drink the water in flint. [applause] we're going to turn this around . my economic plan rejects the cynicism that saves our labor -- says our labor force will keep declining, that our jobs will keep leaving. and that our economy can never grow as it did once before. and boy, oh, boy, did it used to grow. we reject the pessimism that says our standard of living can no longer rise and that's all there is really left to divide because frankly we're looking an economy now of no growth and redistribution of wealth. nd that's not going to work.
everything that is broken today can be fixed and every failure n be turned into a truly great success. just look at the way i just melded into the teleprompter that just went on. [laughter] who else could have pulled that off, ok, who else. [applause] jobs can stop leaving our country and they will just absolutely start poring in. failing schools can become flourishing schools. crumbling roads and bridges can become gleaming new infrastructure. inner cities can experience a flood of new jobs and investment and rising crime can give way to safe and prosperous
communities. all of these things and so much more are possible. but to accomplish them we must replace the present policy of globalism, which has taken so many jobs out of our communities, and so much wealth out of our country, and we place it with a new policy of americanism. [applause] america first. remember that. [applause] understand this american system, every policy decision we make must pass a simple test. does it create more jobs and better wages for americans? the test. if we lower our taxes, remove destructive regulations and we have to do that, unleave the vast -- unleash the vast treasure of american energy and negotiate trade deals that put america first, then there is no limit to the number of jobs we
can create and the amount of prosperity we can unleash. america will truly be the greatest place in the world to invest, hire, grow and to create new jobs, new technologies, and entire new industry. instead -- thank you. [applause] instead of driving jobs and wealth away, america will become the world's great magnet for innovation and job creation. my opponent's plan rejects this optimism. she offers only more taxing and her tax increases are unbelievable. more regulating. more spending. and more wealth redistribution. a future of slow growth, eclining incomes and dwindling
prosperity. the only people who get rich under hillary clinton are the donors of the special interests. but bad for our country. and hillary clinton's america, we have surrendered our status as the world's great economy. and we have surrendered our middle class to the whims of foreign countries. we take care of them better than we take care of ourselves. got ne single idea she's will create one net american job or create one new dollar of american wealth for our workers. the only thing she can offer is a welfare check. that's about it. our plan will produce paychecks and they're going to be great paychecks for millions of people now unemployed or underemployed. in the course of this campaign,
i've traveled all across the country and i've met the most amazing people. every day i've seen the good theness and character of our country -- goodness and character of our country and brave citizens proudly fighting through hard times and difficult circumstances. i have been all over this country, for example. and we have unbelievable -- country, folks, and we have unbelievable people. but they need leadership. the country needs leadership. in many parts of our country, the hard times never seem to end. i visited cities and towns in upstate new york where half of the jobs have left and moved to mexico and other countries. the businesses are gone, they've been taken away, like taking candsy from a baby. politicians have abandoned these places all over the country and the people who live there are just there.
no hope. worst still, politicians have heaped scorn and disdain on these wonderful americans. my opponent described tenses of millions of american citizens as deplorable and irredeemable just last week. so how can hillary clinton seek to lead this country when she considers its citizens, tremendous, tremendous numbers of them, beyond redemption? the hardworking people she calls deplorable are the most admirable people i know. they're cops. [applause] and soldiers. teachers and firefighters. young and old. moms and dads. blacks and whites. latinos.
above everything else, they're americans. some are rich americans, some are poor americans. they're americans. they love their families. they love their country. and they want a better future. these are the forgotten men and women of our country and they have been forgotten. people who work hard but don't have a voice. 'm running to be their voice. mr. trump: and to bring prosperity to every part of this country. too many of our leaders have forgotten it is their duty to protect the jobs, wages and well-being of american workers before any consideration. we have to do that. i'm not running to be the president of the world.
i'm running to be the president of the united states of america. [applause] mr. trump: and as your president, i will fight for every last american job and every american company, which really a lot of companies in this room. we are going to be fighting for you. you are bringing the jobs. we are a nation that paved the way, dug out the panama canal and won two world wars and put a man on the moon. it's time to start thinking big once again. that's why i believe it's time to establish a national goal of reaching 4% economic growth. [applause] mr. trump: and migrate economists don't want me to say this, but i think we can do
better than that. they're upset, will be very upset. but i think we can substantial by do better than that. in working with my economic team we have a plan to put us on track to achieve that goal. that under our plan, the economy will average 3.5 frs growth and create a total of 25 million new jobs. you can visit our website. just look at the math. it works. mr. trump: mr. trump: this growth means that our jobs and plans including our child care reform that ivanka trump is involved in -- i like her, too, i agree. will be completely paid for in combination with proposed savings. it will be deficit neutral.
if we reach 4% growth, it will reduce the deficit. it will be accomplished through a complete overall of our tax regulatory energy and trade policies. [applause] mr. trump: right now under the obama-clinton policies, the economy grew 1.1% last quarter, a number that was shocking to people that do this professionally and for life. it translates into millions of lost jobs and certainly millions of lost good jobs because we don't have good jobs anymore. those jobs are gone and going. this is the weakest so-called recovery since the great depression. over the last seven years, the slowest ew 2.1%, the
period, 70 years. had the economy grown at the same rate as reagan, it would have meant 10 million more jobs. perhaps most shockingly, most men aged 18-34 are either in jail or out of work. two million hispanics have been added to the ranks in poverty. the obama-clinton policies have doubled the national debt. it took more than 130 years for the united states to accumulate its first $10 trillion in debt. it took president obama less han eight years to add another $10 trillion. now, it will be one thing if
that money had been used to completely rebuild our nation, our military, our infrastructure , but that didn't happen. instead, the opposite happened. we doubled our debt and in eturn, we have bad infrastructure and schools. badly depleted military and they have a badly depleted equipment, old and tired. and another 14 million people who have left the work force, never has so much money been spent so poorly and so unwisely. but we are going to turn that all around and here's how. it begins with bold new tax reform. [applause] mr. trump: don't worry, they are going up, not down. thought you were concerned, they
are going up. as outlined in detroit, our tax plan will greatly simplify the code and reduce the number of brackets from seven to three. the new bracket will be 12, 25 and 33%. lower income americans will pay no income tax at all. our plan will remove millions and millions of workers from the income tax roll entirely so that all of that work that we do in washington can be discontinued. they'll pay tax. they'll pay tax, but pay tax when they start making a certain amount of income. by lowering rates, streamlining deductions and simplifying the process, we will add millions and millions of new jobs. in addition, because we have strongly capped deductions for the wealthy and closed special
interest loopholes, the tax relief will be concentrated on the working and middle class taxpayer. they will receive the biggest benefit and it won't even been close. they have been forgotten. we are not going to forget them. they have built our country. we will not forget. thank you. [applause] mr. trump: this is a working and middle class tax relief proposal. the tax relief for these workers will be expanded by my child care proposals that i have worked on with my daughter ivanka. these proposals are central and are very, very powerful central element of our comprehensive tax reform and economic growth plan. families will be able to fully deduct the average cost of child care from their taxes, including
stay-at-home parents. because the deduction is capped, it will be disproportionately and it will benefit working and middle class families. got to take care of our middle class families. the less you make, the larger the share of your income you can exclude from taxation. parents will also be enroll a tax-free dependent savings account for their children or elderly relatives. low income households will benefit from an expanded earned income tax credit in the form of child care rebates and matching $500 contribution for their savings account. a married couple earning $50,000 per year with two children and $8,000 in child care expenses will save 35% from their current tax bill. that's a tremendous savings.
[applause] mr. trump: and will have a better life. a married couple earning $75,000 per year with two children and $10,000 in child care, expenses will receive a 30% reduction in their tax bill from what they are paying right now. someone earning $5 million, like the people in this room, will receive virtually no change in their tax bill at all. one of our greatest job creation measures is going to be our 15% business tax rate, down from the current 35% rate, a reduction of more than 40%. [applause] mr. trump: i know that's what you people have been waiting for. [laughter] mr. trump: an explosion of new businesses and new jobs will be created. it will be amazing to watch.
you watch and it will happen. we will also allow united states-based manufacturers to fully expense the cost of new plants and equipment. big, big deal. [applause] mr. trump: on top of that, we will bring back trillions of business wealth and this is wealth that costs overseas. nobody knows how much it is. they say it is $2.5 trillion. i have people who think it's $5 trillion. and bring them back and taxed at 10% and not 35%. who would bring it back at 35%? obvious nobody because nobody is doing it. i think it's going to be something that is so phenomenal, far beyond what people even thing think. by taxing at 10% instead of 35%,
all of this money will come back into our country and lots of good things will start to happen. we will turn america into a new magnet with jobs and jobs in our poorest companies. so important. companies are leaving the country because taxes are so high and countries leaving the country to get their money. that's a first. no one has ever heard that before, but believe me, that's happened. next comes to regulation. need to scale back years of disastrous regulation unilaterally imposed by out of control bureaucrats. regulations have grown into a massive job-killing industry and the regulation industry is one business i will absolutely put to an end day one. [applause]
mr. trump: in 2015 alone, federal agencies issued over 3,300 final rules and regulations up from 2,400 the prior year. every year, overregulation costs our economy $2 trillion a year and reduces household wealth by almost $15,000. i propose a moratorium on new federal regulations that are not compelled by congress or public safety. and i will eliminate all needless and job-killing regulations on the books, and there are plenty of them. [applause] mr. trump: this includes eliminating some of our most intrusive regulations like the waters of the u.s. rule and means scrapping the e.p.a. so-called clean power plan, which the government itself
estimates will cost $7.2 billion a year. this obama-clinton directive will shut down most if not all coal electricity plants. all over the country, they are shutting down. hillary clinton said she wants to shut down the miners like she wants to shut down the steel mills and workers and we're not going to let that happen. [applause] mr. trump: we are going to put our great miners and steel workers back to work. energy reform is central to our plan as well. according to heritage foundation, by 2030, president obama's energy restrictions will eliminate half a million manufacturing jobs, reduce economic output by $2.5 trillion and reduce incomes by $7,000 per
person. and today, you have workers, and i see them all the time and i meet them all the time and they are part of this massive group of people that have just come on to this movement. but you have workers making less money today than they made 18 years ago in real wages. they are working much harder oftentimes because of the disastrous obamacare that we are going to repeal and replace. oftentimes, they're working two jobs. so they are working harder, they're older and they're making less, like me. i'm working harder than i ever worked also. who cares about that? hillary clinton wants to go even further and her plan could cost the economy $5 trillion. a trump administration will lift restrictions on all sources of american energy production. according to the institute for
american energy resources, this will increase the g.d.p. by more than $100 billion annually. add over 500,000 new jobs annually. increase annual wages by more than $30 billion over the next seven years. increase federal, state, local tax revenues by almost $6 trillion over four decades. increase total economic activity by more than $20 trillion over a 40-year period. in addition, we will streamline the permitting process to all energy infrastructure projects which are desperately needed, including the billions of dollars in projects held up by president obama currently being held up. they just won't approve anything. creating countless more jobs in the process.
finally comes trade. the foundation for everything. america's annual trade deficit with the world is now almost $800 billion a year. who are negotiating these deals? we have a trade deficit of almost $800 billion a year. that's going to change so fast. between world war i and the year 2000, the united states averaged a 3.5% growth rate. but after china joined the world trade organization, our average growth rate has been reduced to only 2%. predatory trade practices, product dumping, currency manipulation, which is a big one and intellectual property theft have taken millions of jobs and trillion of jobs in wealth right out of our country.
right out of our country. so sad that we allowed this to happen. our incompetent politicians were not watching. and the ones that were watching, were taken care of in some form, because this should have never been allowed to have happened. it is no great secret that many of the special interests funding my opponent's campaign are the same people profitting from these terrible trade deals. they are terrible. terrible for everybody. the same so-called experts advising hillary clinton are the same people who gave us nafta. china's entry into the world trade organization, the job-killing trade deal with south korea, another disaster. and now the transpacific partnership that they are pushing so strongly. the verdict is in. all of the special interests that the media raced, which they
raced to get comment from have been proven wrong over such a long period of time. every single deal they promoted, every lie and every present dick shon has just crashed. they have been so absolutely wrong and been so bad for our country. our manufacturing base has crumbled. communities have been hollowed out. wages have declined. and households are making less today than they were in the year 2000. i propose a detailed plan to reform our trade policy and bring vast new jobs and wealth to america. we need our welfare. e don't have wealth.
a foreign country is using to to harm our ry workers and our country is being harmed. i will use every tool to end these abuses and i will use our greater leaders and finest negotiators and i will tell you some of them are in this room right now. not all of them, but some. i know who you are and we are going to be calling on you because we have people negotiating the biggest deals in the world, far bigger than your company deals. take some of these big companies and look at some of these trade deals, hate to say it but companies are peanuts. but we are going to use our best. right now we have political hacks negotiating the biggest
important deals in the world. we are going to start with nafta, which is causing so much damage to our country. we will entirely renegotiate nafta into a deal that will either be a good one for us as a country and our workers, or we will terminate it until a brand new and productive deal can be signed. [applause] we'll keep america out of transpacific partnership unless we can do something that is phenomenal and i'm not seeing it right now. i can tell you that. i'm not seeing it. [applause] mr. trump: next i'm going toll instruct my treasury secretary china, china -- i like they are my tenant and buy
condos all the time. they're just fine. but you know what? they are a currency manipulator and we are going to apply tariffs to any country that devalues its currency to gain an unfair advantage over the united states. they are a manipulator, grand master level. we can't allow it to happen and how people and our representatives and politicians don't even have a little clue how to play the game. we have a trade deficit this year with china of approximately $500 billion. what kind of a deal is that? and this has been going on for years. $200 billion, $300 billion, $400 billion for years. i'm going to instruct the united states trade representative to bring trade cases against china. china's unfair subsidy behavior
is prohibited by the terms of its entrance into the w.t.o. and i intend to enforce the rules. and i'm sure we'll make a deal somewhere along the way. but they're not playing fairly and our politicians don't understand how to play the game. [applause] mr. trump: if china does not stop its illegal activities including theft of american trade secrets and intellectual properties, i will apply countervailing duties until china ceases and desists. you know what that means? woe add ction of millions. according to the international trade commission, improved protection of america's -- just think of this, improve protection of america's intellectual property in china
would add two million jobs a year within the united states iffer single year. and we do nothing. we allow them to get away with it. who can blame them? if you can blame away with it, they are going to get away with it. we are going to stop the outflow of jobs from our country and open a new highway of jobs back into our country. here's how the plan adds up. we are proposing a 4.4 trillion x cut that will score as a $2.6 trillion under dynamic growth models, which is how taxes should be scored. [applause] mr. trump: this includes the child care plan that we announced the other day. our economic team has further modeled that the growth induced
based from trade, energy and regulation reform will shave another $1.8 trillion off of the remaining debt. that leaves around $800 billion. this money can all be saved through simple, commonsense reforms. if we just save one penny of each federal dollar spent on nondefense and nonentitlement programs, we could save almost $1 trillion over the next decade. one penny. we can all do that. [applause] mr. trump: save over a trillion. again this is spending that does not touch defense, because we have to buildup our military, which is so terribly depleted and that does not touch entitlements. f our plan exceeds the $3.5% 10-year growth average that our
jobs proposed will actually reduce and start really strongly reducing the deficit. savings will be compounded by the fact that people who are currently receiving unemployment or welfare will finally be able to find jobs. this is the most pro-growth, families' plan. this is what our new future will look like. i'm going to lower your taxes. i'm going to get rid of massive amounts of unnecessary regulation. all of these regulations on your business and in your life. i'm going to unleash america's energy. i'm going to repeal and replace obamacare. i'm going to appoint justices of the supreme court who will follow the constitution. [applause]
mr. trump: i'm going to rebuild our depleted military and take care of our vets who are treated so badly. [applause] mr. trump: in many cases, our vets are treated not nearly as well as people who come into our country illegally. we can't have that. i'm going to save your second amendment, which is under siege. i'm going to stop illegal immigration and drugs from pouring into our country and totally poisoning our youth and others. [applause] mr. trump: and yes, we will build the wall. the wall will be built. and just in case you are worried who is going to pay for it, mexico will pay for it. totally serious about it. mexico will pay for it. mexico, we look at the trade deficit we have with mexico, it's massive.
the wall is peanuts compared to what we are talking about. mexico will pay for the wall. and i'm going to renegotiate our disastrous trade deals especially nafta and make great trade deals that put the american worker first and put the american worker back to work. [applause] mr. trump: that includes our miners and our steel workers. they are going back to work. we will rebuild our roads, our bridges, our tunnels, our highways, airports, schools, hospitals. we'll rebuild everything. american cars will travel the world. american planes will sore the skies. and american ships will patrol the seas. american steel will send new skyscrapers into the clouds. american hands will rebuild this nation. and america's energy harvested
from american sources will power this nation. american workers will be hired to do the jobs. we will put new american metal and new american steel into the spine of this country. jobs will return. incomes will rise. new factories will come rushing back to our shores. we will make america wealthy again. we will make america strong again. and we will make america great again. thank you very much. god bless you. thank you. thank you very much. [applause] r. trump: thank you.
[captions copyright national cable satellite corp. 2016] [captioning performed by national captioning institute] >> we are pleased to have as our interviewer, john paulsen, a member of the economic club of new york board and president of paulsen company. we would also like to thank those members who took the time to share their thoughts and ideas on topics and questions from mr. paulsen online so they could be perhaps used in this conversation. i think we had some members of the board and others provide some input directly to mr. paulsen and i thank everyone for that. the chairs are ready, gentlemen. so please take your seats and
et the conversation begin. [applause] >> what happened to the teleprompter? he's a little late, right? i had nothing to do with it. >> let me thank you for speaking with us today. i think many of us found your economic plan very bold and a.m. bishos. i was talking with marty -- glen hubbard, who is the dean of the columbia business school -- mr. trump: big difference. >> and you know, we were talking about how many economists have resigned themselves to low owth, 1 1/2, two percent for
the u.s. you believe we can grow 3 1/2 plus. could you summarize the key components of that plan and if possible quantify the contribution to the increased growth. mr. trump: i think that -- i watch the world and i look at china and other countries. and if china goes down to 7% or 8%, it's like they will have a revolution. and what do they do, they start devaluing and do all sorts of things and get it back on track one way or the other. and i had friends come do me who have been devastated. great manufacturers, very successful people, but they become less and less successful because they can't beat the system. and they are almost doing well and then there is a massive devaluation in china or other countries and there are plenty of other countries out there and
actually hurting china now. they have 7%. and you see it, and dropping to 7%, 8%, they consider it to be a disaster and we are stuck at 1%. the real number is 1%, but no more than 2% and we try to learn to live with it. we can't do it nime. we are going to -- we can't do it anymore. we are bringing back trillions of dollars that doesn't come into this country. there have been a lot of companies that leave. not because taxes are too high but leave to get their money. we are going to unleash a lot with the regulations. the thing that most surprised me in going around, because -- i have been everywhere. this started on june 16. who knew this was going to happen, right? but it started on june 16 and it
has been an amazing thing. what has amazed me, i speak to big businesses, the biggest businesses in the world and i also speak to the small business people and the farmers. if they had their choice between this massive tax cut from 35% to 15% or regulation relief, they would take 100% -- the regulations are a disaster. they are killing the farmers. they are killing the energy folks. they killed the mines. and we all believe there has to be regulation for safety, environment. but it has gone so crazy and gotten so excessive that they would take that over taxes. we are going to unleash a number of jobs coming in and going to have cutting of waste, fraud and abuse. if the penny plan, just a penny out of every dollar. i know you can do that.
but we have to appoint people to head these massive agencies. if they were companies, they would be very large companies and some would be bigger than any other companies. but you you take a penny, a penny off the dollar and do that for a number of years and all of a sudden, great things start to happen. in addition to that, we spend a tremendous amount of military, which we are going to increase. but we also defend other countries. and those countries are not paying us nearly what they should be paying us. we are losing billions and billions of dollars on defending don't pay of them us. if they don't pay us, i say why? they don't ask. so those countries i'm sure will start to pay for the defense, but it's a fantastic number.
it's a very, very large -- it's a shocking number. i will just finish with this. i have great respect for japan, but we defend japan, germany, saudi arabia, south korea, 28,000 soldiers right now in south korea. these are wealthy countries. and when i say they have to pay more, a general came to refute my statement and said, doesn't mr. trump know that japan pays 50% of the cost of its defense? and i said, why don't they pay 100%? the numbers you are talking about are massive. and when you add it all together, a lot of good things are going to happen. [applause] >> on the corporate tax rate, the corner stone of your
economic policy is reducing the corporate tax rate to 15%. secretary of the treasury lew proposed a 28% rate. the u.k. is at 20%. ireland is at 12.5%. how did you settle on 15% of the target for the u.s.? >> a lot of that has to do with the cutting because we are going to be cutting costs also. i think we are going to unleash something that is so amazing and a lot of it is competition. ireland is the lowest. right now we are the highest in the world of the industrialized countries. and we set it from a competitive standpoint and added to that and very importantly to that the cost cutting. and there's tremendous -- when all of us in the room did this, when we buy companies, we like to buy companies that are poorly run because we have so much run
to cut. we don't want to run a perfectly running machine where we can't do too much. we have tremendous waste, fraud and abuse. our military orders equipment that is ordered politically motivated because they will buy equipment that isn't what they want and the equipment that the generals want are better and less expensive. my whole thing has been make america great again. we are going to make america great again. >> now it's time for morton who is on our board and chirme of the department of economics at harvard. part of the issue in reducing tax rates is the impact on the deficit. what offsets would you propose to compensate for the reduced revenue? you mentioned in your speech that you believe over time your
economic policy can be revenue neutral. >> we think and hopefully beyond that. evently with time this is going to work out. but the big things in terms of neutrality is going to be the amount of business that we generate, the fact that companies are no longer going to be leaving. you have to look at the list of companies. ford motor company, all small cars going to make them in mexico. it's like a story in the newspaper, but devastating for michigan and areas of the country that have to go through this. we are going to keep our companies here. our companies are leaving because our taxes so high and they can't bring money back in and. the regulation is so massive that our companies are leaving us.
number one, we are going to keep companies and won't be leaving because they will have a better deal. and importantly, we are cutting costs, cutting budgetary costs and lots of costs. many costs that we are going to be cutting and enhanced by certain things like -- with the military and the defense of other countries which other people didn't know. in this room, until i spoke about it a year ago, we defend, as an example, germany or japan. pretty much knew south korea and we are defending south korea. but saudi arabia as an example. saudi arabia we know. lots of wealth. lots of money. they don't pay us very much for what we do. and you could ask yourself how long would saudi arabia even be there if we weren't defending them. and i think we should defend them, but we have to be
compensated properly for that defense. i'm sure they will be thrilled to on hear that. [laughter] >> one issue that came up previously was the potential for default on the u.s. debt. the u.s. has a perfect credit history. is there any scenario you would consider defaulting on the u.s. debt? mr. trump: no. there are some areas where you could buy back debt. i said buy back debt. this isn't like building a real estate project and the market crashes and you have a shot at a bank. i loved those days. someone said i'm one of the great in the world. i love buying debt and negotiating debt. with the united states you are talking about something beyond the gold standard. the answer is no. but you can buy back. we are not talking discounts. you can discount and do things. the debt of this country is
absolutely sacred. absolutely 100% sacred. [applause] >> regarding regulation, you said that we have too much regulation and that excess regulation impedes growth. what would be your strategy for reducing excessive regulation? mr. trump: i go back to the heads of the various groups, agencies, all of the parcels of government and i would be utting very, very top people into negotiate. we put political people in to negotiate and people who gave contributions, we put people that work the system. we put people that shouldn't be there. and when you say can you cut 1% off your budget and they say that's impossible.
a know some of the people in this room are total killers. they said i can get it down 25% in one year, maybe more. i said take it easy, relax. there are people in this room who would say that. 1% a year for 10 years, it's a massive difference. 1% a year for 10 years. so i would really have it done at the level of the group running whatever individual thing within government they are running and they would be able to do if we have the right people. we don't have the right people. we have people who shouldn't be doing what they are doing. they have people under them that are far, far more competent than they are. and those people lose respect for the system when they see what's coming. and i can't tell you how strongly i believe this and the trade deals are so bad. nafta has destroyed our country. nafta has destroyed the manufacturing leg of our
country. look in upstate new york and lost 40% of their manufacturing and going to lose a lot more. hillary clinton said she was going to bring jobs back to new york. upstate new york, long island, you look at things that are happening. building after building is empty. they all left. so when we negotiate great trade deals -- and we aren't including that to a large extent in the numbers we are giving you. when you take nafta and make it a two-lane highway and not one lane, we have a lot of catching up to do. they have absolutely stripped this country of its manufacturing jobs and jobs. and companies that destroyed companies. thousands and thousands of companies. millions of jobs, we are going to get that back. we are going to get that back. when i talk about tax cutting
and balancing, a big part of it is we are going to have great trade deals. i think this man will be in charge of china. we will do very well. but seriously, we have the greatest negotiators in the world. when china enters that negotiation, they come in with 20 people that are the toughest, smartest, meanest, they don't say good morning, isn't it a lovely day? how did the yankees do last night? there's no talk. we get down to business, boom. no games. we put people in there who don't know what they are doing because this is why we have deficits of $500 billion with one country. we built china. great ay that with respect for china. they -- i have many friends from
china. the biggest people, the richest people, they cannot believe what china gets away with. and when i announced i was running for president, well, i didn't mean that. they didn't know this was going to happen. but in the good ole days, they would say we don't believe. your government is stupid and now they deny they ever said that. [applause] >> on staffing, how would you run a government to make it more effective? what would be your criteria in choosing the senior administrators? mr. trump: track record, great competence, love of what they're doing, how they're getting along with people, references. no different when you are owning a company, how you hire top
people. people with heart also is need ly the one thing you in government. there's some there, but not a lot. but you need people that are truly, truly capable and you need -- and i think so much has to do with past history, how is it done, how is it worked out. you understand that perhaps better than anybody. and we have to get the best people. we can no longer be so politically correct. we do things today, people are afraid to walk, afraid to talk. they can't speak. they afraid they are going to say a wrong word and shunned from society. that only lasts for a week if that happens. but we have to stop being politically correct. we need to get the best and finest and if we don't, we will be in trouble for a long period of time and maybe never come out of it. i'm not saying it because it's
myself, this is going to be the last election we have a chance to make this country great again, make it wealthy and strong again. make it all of the things we want to see. but i believe this is the most important election that we have been involved in for many, many, many years. many decades, because it's going down. the supreme court justices that i told you about before, if they put certain people onto the supreme court, our country is going to be a whole different country. large-scale version of venezuela, a totally different deal. and this is the last chance that in my opinion our country has to really get better, to get well. and i just think this election is so important, not because of me, but because the ideas, the ideas that we have, the ideas
that we need to do what we have to do. but i think it's going to be a very, very important election and that's why we are seeing such enthusiasm. we have people showing up, 25,000 people show up and 30,000 people. [applause] mr. trump: we announced one day, we had one in the pensacola the other day, we had tens of thousands of people that showed up a day and-a-half before the speech on twitter. people want to see great things happen to this country. people really love this country. the people of this country really love this country and other countries want to see great things happen because it's so important. i think this is going to be the most important election we have had for many, many decades and i'm not sure you are going to have a second chance at it.
[applause] >> donald, on jobs, what industries do you expect would benefit from your economic plan to create high-paying jobs going forward? mr. trump: i think h and r block would be a disaster. ow about people -- it's so complicated. and people that frankly are making a small amount of money. they have to go and have their tax returns done by people. and by the way, when they're done, you'll have 10 different tax people. the whole thing is crazy. so that would be one industry that wouldn't do well. i can tell you an industry that will do well and industry we can use and prices are low now. but when prices go up is the energy industry. we have amazing people in that
industry and they are being decimated. they are being absolutely decimated. and energy is so important. and we found out because of new technology, whether fracking and many other things. we have more than just about anybody in the world. our land is so valuable because of what is underneath it. we have to be careful and environmentally sound. that's very important. it's incredible when you look at what's happened in the last five years, we can be self-sufficient otherwise we will be stuck in the middle east. we have to knock out isis. i didn't want to be in that war, but i wasn't a politician and nobody cared. i didn't want to be in the war. the way they got out was bad, so quickly. isis developed. we have to knock out isis. ou see the atrocities.
yesterday, 22 people were hung from racks in a slaughter house and then throats cut. can you imagine, nobody has heard of things like this before and we talk about waterboard hing. it's an incredible thing. not playing on the same playing field. if you look at the atrocities, just yesterday with the meat hooks, we have no choice but to totally decimate isis. we have to do it and do it rapidly. we have no choice. [applause] mr. trump: and we have to get to rebuilding our country and rebuild the infrastructure and rebuild our country because it's a mess. >> last question. if you were to advise the fed, what would you advise them to do regarding interest rate policy?
mr. trump: lower interest rates, of course. you are going to have them until january 1, because obama wants to go and play golf and wants to leave and no stock market disruption. and i said, i think the fed is being totally controlled politically and not raising rates and being controlled politically. i think they are going to below until -- i don't know if they're going to have a raise. but they will be low to the end of the year. shouldn't be discussing it. i just think it's a terrible thing that's happening because we are doing it for political -- i believe the fed is very political and has become very political, like many other groups in this country. beyond anything i would have ever thought possible. so i think you are going to have low interest rates until the end of the year. maybe no interest at all. and the market will stay
artificially high and then have to see what happens after that. they are not doing the right job. with all of that being said, all my life i liked low interest rates. because i'm doing this, i can't take advantage of it. but that's ok. i will say it's become in my opinion, the fed has become extremely political. i don't think they would do -- i believe if it was a political decision or the right decision, they wog go with the political decision every single time. [applause] >> that concludes our fireside chat. once again on behalf of myself and everyone here, thank you very much for joining us today. mr. trump: thank you very much everybody. thank you. [applause]
>> we would ask everyone to stay in place so that mr. trump and governor pence and their security detail can leave. the next meeting of the economic club will be a breakfast on monday where we will be hosting the president and of the environmental defense fund. that same day, monday, september 19, we are hosting a luncheon featuring paul ryan, speaker of the house, where he will share his economic and tax reform plans. on tuesday, the 20th, we're