1 00:00:00,080 --> 00:00:03,320 Speaker 1: Welcome to today's edition of the Clay Travis and Buck 2 00:00:03,360 --> 00:00:06,800 Speaker 1: Sexton Show podcast. Second hour of The Clay Travis and 3 00:00:07,000 --> 00:00:10,960 Speaker 1: Buck Sexton Show is going on now. Thanks for being 4 00:00:10,960 --> 00:00:15,320 Speaker 1: with us. The economy is important to all of us 5 00:00:15,640 --> 00:00:18,119 Speaker 1: and is certainly going to play a massive role in 6 00:00:18,120 --> 00:00:22,000 Speaker 1: the upcoming election just a few months away. Now, we 7 00:00:22,079 --> 00:00:26,279 Speaker 1: want to bring on somebody who is legendary in the space. 8 00:00:26,960 --> 00:00:30,000 Speaker 1: Even does get a shout out in the fantastic Ferris 9 00:00:30,000 --> 00:00:33,640 Speaker 1: Bueller's day off for his amazing curve. Art Laffer of 10 00:00:33,720 --> 00:00:38,080 Speaker 1: the Laffer Curve, former Reagan economic advisors with us now. Art, 11 00:00:38,159 --> 00:00:40,720 Speaker 1: great to talk to you again, sir, Thank you very much, 12 00:00:40,760 --> 00:00:43,440 Speaker 1: My pleasure, My pleasure. Start with the big ones and 13 00:00:43,440 --> 00:00:45,880 Speaker 1: we'll work down into some specifics here. Art, are we 14 00:00:46,040 --> 00:00:50,000 Speaker 1: in a recession? How bad is it going to get? Well? 15 00:00:50,120 --> 00:00:53,760 Speaker 1: City Corps today said that their expectation was a fifty 16 00:00:53,800 --> 00:00:57,760 Speaker 1: percent chance of getting in a recession, and my comment 17 00:00:57,840 --> 00:01:00,600 Speaker 1: on that was, we had the first corp was down 18 00:01:00,760 --> 00:01:03,680 Speaker 1: GDP one point six percent, the second car is already 19 00:01:03,680 --> 00:01:05,959 Speaker 1: over and the estimates, sorry, it's going to be down 20 00:01:06,000 --> 00:01:08,400 Speaker 1: around one and a half percent, which means we're already 21 00:01:08,440 --> 00:01:10,560 Speaker 1: in a recession. How neck can they ever say it's 22 00:01:10,560 --> 00:01:14,520 Speaker 1: a fifty percent chance when it's already happened and we've 23 00:01:14,560 --> 00:01:16,880 Speaker 1: been in one now. The only question is really is 24 00:01:17,080 --> 00:01:18,520 Speaker 1: how long is it going to last? Now? Bad? Is 25 00:01:18,560 --> 00:01:22,320 Speaker 1: it going to be? Art? Where would we be? First 26 00:01:22,319 --> 00:01:25,520 Speaker 1: of all, thanks for coming on a second, where would 27 00:01:25,520 --> 00:01:29,399 Speaker 1: we be if the Democrats had been able to pass 28 00:01:29,520 --> 00:01:35,120 Speaker 1: their build back better multi trillion dollars expenditures in terms 29 00:01:35,120 --> 00:01:38,440 Speaker 1: of inflation in your mind, and we're at nine point 30 00:01:38,560 --> 00:01:40,920 Speaker 1: one percent right now? Do you think that inflation is 31 00:01:40,920 --> 00:01:43,120 Speaker 1: going to get worse? How much worse do you think 32 00:01:43,160 --> 00:01:45,520 Speaker 1: it might have been if Biden had gotten his way 33 00:01:45,959 --> 00:01:48,920 Speaker 1: and been able to get build back better past? Well, 34 00:01:49,040 --> 00:01:51,000 Speaker 1: first place, I do think it's going to look get worse, 35 00:01:51,040 --> 00:01:52,960 Speaker 1: and I think it's going to get a good deal worse. 36 00:01:53,280 --> 00:01:55,920 Speaker 1: How much worse? Because it's pretty bad right now. So 37 00:01:56,160 --> 00:01:58,120 Speaker 1: but you say it's going to get worse, Not really? 38 00:01:58,240 --> 00:02:00,400 Speaker 1: I mean, you know the next three number if you 39 00:02:00,480 --> 00:02:02,600 Speaker 1: look at let me do inflation with you for a 40 00:02:02,640 --> 00:02:06,640 Speaker 1: second first, just to see it. Inflation is the percent 41 00:02:06,760 --> 00:02:09,040 Speaker 1: change in the consumer pricing is from a year ago, 42 00:02:09,840 --> 00:02:13,960 Speaker 1: So it's an annual change in the percentage change in 43 00:02:14,000 --> 00:02:17,799 Speaker 1: the CPI Consumer Price Index. Now every month we get 44 00:02:17,800 --> 00:02:20,880 Speaker 1: a new number, which means we drop off one month 45 00:02:20,960 --> 00:02:23,680 Speaker 1: a year ago, and we had a new month on now. 46 00:02:24,600 --> 00:02:27,720 Speaker 1: The numbers we have been dropping off over the last 47 00:02:27,720 --> 00:02:31,440 Speaker 1: four months have been very very large numbers, which means 48 00:02:31,480 --> 00:02:34,480 Speaker 1: that the new numbers have even been larger for that 49 00:02:34,720 --> 00:02:37,600 Speaker 1: thing to increase. It's really amazing. I would have thought 50 00:02:37,680 --> 00:02:41,000 Speaker 1: the inflation rate would have dropped now the next three months. 51 00:02:41,520 --> 00:02:44,919 Speaker 1: The numbers dropped off are really small, are very very small. 52 00:02:44,960 --> 00:02:47,760 Speaker 1: So even modest numbers on inflation are going to pop 53 00:02:47,840 --> 00:02:50,640 Speaker 1: us up over ten percent in the next three months. 54 00:02:50,639 --> 00:02:53,519 Speaker 1: So coming into the election, I would expect inflation numbers 55 00:02:53,520 --> 00:02:57,120 Speaker 1: to be above ten percent. Speaking of Art Laffer, former 56 00:02:57,200 --> 00:03:01,120 Speaker 1: Reagan economic advisor, Art, I've got a question that I 57 00:03:01,440 --> 00:03:04,919 Speaker 1: keep posing to people, and I hear all these different explanations. 58 00:03:04,919 --> 00:03:08,040 Speaker 1: I really wanted to hear this from you, because one 59 00:03:08,080 --> 00:03:10,119 Speaker 1: thing the Biden White House talks about a lot. They'll say, 60 00:03:10,120 --> 00:03:13,919 Speaker 1: the unemployment rate is so low, so things are good. 61 00:03:13,960 --> 00:03:16,200 Speaker 1: You just don't know it. Yeah, gas is expensive, and 62 00:03:16,240 --> 00:03:17,920 Speaker 1: so is your food, and so is everything else. That 63 00:03:17,960 --> 00:03:21,040 Speaker 1: inflation is a problem, but look at how good the 64 00:03:21,120 --> 00:03:24,160 Speaker 1: unemployment rate is. That's one part of this. But then 65 00:03:24,200 --> 00:03:28,360 Speaker 1: even more specifically, I come across businesses and have talked 66 00:03:28,360 --> 00:03:32,400 Speaker 1: to business owners who keep saying it's really hard to 67 00:03:32,440 --> 00:03:36,800 Speaker 1: find people to take jobs and restaurants and stores. This 68 00:03:36,840 --> 00:03:39,200 Speaker 1: seems to be happening in different parts of the country. 69 00:03:39,440 --> 00:03:43,240 Speaker 1: Across the country, though, What is going on there? Oh, really, 70 00:03:43,240 --> 00:03:46,280 Speaker 1: it's very very simple. I mean, the unemployment rate is 71 00:03:46,400 --> 00:03:49,960 Speaker 1: very very low. Yes, there are very few people available 72 00:03:50,000 --> 00:03:52,360 Speaker 1: to take jobs. There are lots of job openings for 73 00:03:52,400 --> 00:03:54,560 Speaker 1: a number of people. But one other thing you have 74 00:03:54,640 --> 00:03:57,480 Speaker 1: to add into that is the employment rate is also 75 00:03:57,840 --> 00:04:02,440 Speaker 1: very very low. The employment rate has dropped huge amounts 76 00:04:02,680 --> 00:04:05,480 Speaker 1: to where it's a little over sixty two percent. All 77 00:04:05,520 --> 00:04:08,600 Speaker 1: of this means is one thing. Lots and lots and 78 00:04:08,680 --> 00:04:12,440 Speaker 1: lots of potential workers have left the labor force and 79 00:04:12,520 --> 00:04:16,160 Speaker 1: are no longer included in the employment rate and or 80 00:04:16,200 --> 00:04:19,120 Speaker 1: the unemployment rate. So what's happened is workers have just 81 00:04:19,240 --> 00:04:21,640 Speaker 1: left the labor force because they were given enough money 82 00:04:21,880 --> 00:04:23,640 Speaker 1: to not have to go back to their jobs that 83 00:04:23,760 --> 00:04:27,279 Speaker 1: they didn't like. So we have a huge reduction in 84 00:04:27,320 --> 00:04:31,800 Speaker 1: total employment, reduction in the number of unemployed, and also 85 00:04:31,960 --> 00:04:35,279 Speaker 1: a lot of new jobs' what's you said sixty two percent, 86 00:04:35,360 --> 00:04:38,400 Speaker 1: what would be the standard number. Well, let's say back 87 00:04:38,440 --> 00:04:42,279 Speaker 1: to Clinton, it was sixty eight sixty nine percent. Got you. Now, 88 00:04:42,320 --> 00:04:46,960 Speaker 1: that's seven times that's seven times one million, a half million, 89 00:04:47,040 --> 00:04:50,200 Speaker 1: six one hundred and sixty sixty millions, something like that. 90 00:04:50,560 --> 00:04:53,440 Speaker 1: So you're talking eleven twelve million people have left the 91 00:04:53,520 --> 00:04:58,280 Speaker 1: labor force. Wow, a lot of people. You have been 92 00:04:58,320 --> 00:05:02,440 Speaker 1: talking about the impact that COVID had in our response 93 00:05:02,480 --> 00:05:03,840 Speaker 1: to it for a while, So I want to kind 94 00:05:03,880 --> 00:05:06,600 Speaker 1: of give you a two parter here. One, going back 95 00:05:06,600 --> 00:05:09,440 Speaker 1: to the question build back Better passes, you say you 96 00:05:09,440 --> 00:05:11,080 Speaker 1: think we're going to be over ten percent in the 97 00:05:11,120 --> 00:05:13,599 Speaker 1: next three months running into the election. What do you 98 00:05:13,600 --> 00:05:16,039 Speaker 1: think it would have been if Biden had gotten his 99 00:05:16,120 --> 00:05:19,080 Speaker 1: economic agenda in place? And as you now have a 100 00:05:19,080 --> 00:05:21,320 Speaker 1: couple of years of data to look back over how 101 00:05:21,360 --> 00:05:24,480 Speaker 1: we responded to COVID Building off of that, how much 102 00:05:24,520 --> 00:05:27,880 Speaker 1: of a disaster from a pure economic perspective were the 103 00:05:27,920 --> 00:05:31,800 Speaker 1: policies that we embraced associated with COVID. Well, let me 104 00:05:31,880 --> 00:05:34,520 Speaker 1: just say number one, if the Buildback Better had passed, 105 00:05:34,960 --> 00:05:37,000 Speaker 1: depending on how they rolled it out, we would have 106 00:05:37,040 --> 00:05:40,359 Speaker 1: a lot higher inflation rate, a lot higher debt to 107 00:05:40,400 --> 00:05:43,160 Speaker 1: GDP ratio, and the economy would be in a lot 108 00:05:43,200 --> 00:05:46,800 Speaker 1: worse shape than it is now. That's number one. There 109 00:05:46,800 --> 00:05:50,960 Speaker 1: would be a lot less people working, either employment or unemployment. 110 00:05:50,960 --> 00:05:54,120 Speaker 1: It would have been a major reduction and output and 111 00:05:54,360 --> 00:05:57,040 Speaker 1: also a major increase in the rate of inflation. That's 112 00:05:57,080 --> 00:05:59,479 Speaker 1: what would have happened if we had build back better, 113 00:05:59,520 --> 00:06:01,679 Speaker 1: and it would have been rolled out over a longer 114 00:06:01,720 --> 00:06:04,839 Speaker 1: period of time, so this would continue for several years 115 00:06:04,880 --> 00:06:08,240 Speaker 1: from now. That's true. Now. The COVID thing, the one 116 00:06:08,320 --> 00:06:10,839 Speaker 1: thing I liked on COVID, and I as I as 117 00:06:10,839 --> 00:06:12,440 Speaker 1: you probably know, I spent a lot of time with 118 00:06:12,480 --> 00:06:15,400 Speaker 1: the president on COVID, and he did. One thing that 119 00:06:15,520 --> 00:06:22,039 Speaker 1: was amazing was the developing a development of the vaccine. 120 00:06:22,360 --> 00:06:25,680 Speaker 1: Of his efforts to get that vaccine were wonderful. They 121 00:06:26,080 --> 00:06:28,919 Speaker 1: he spared no expense and we got a vaccine in 122 00:06:29,000 --> 00:06:31,440 Speaker 1: less than a year, which is just unheard of. It 123 00:06:31,480 --> 00:06:34,200 Speaker 1: was the most amazingly. Everything else on COVID should not 124 00:06:34,240 --> 00:06:38,360 Speaker 1: have been done. You know, it's a tragedy COVID. It's 125 00:06:38,800 --> 00:06:42,000 Speaker 1: everyone got hurt. But any of this trying to alleviate 126 00:06:42,040 --> 00:06:45,960 Speaker 1: the pain by redistributing income makes no sense. Whatsoever. All Right. 127 00:06:46,000 --> 00:06:50,440 Speaker 1: I like to try to focus on the optimistic side 128 00:06:50,440 --> 00:06:52,680 Speaker 1: of things if I can, but it's hard to be 129 00:06:52,720 --> 00:06:55,880 Speaker 1: optimistic about where this economy seems to be going, especially 130 00:06:55,920 --> 00:06:59,280 Speaker 1: given the people who are pulling the levers, whether it's 131 00:06:59,279 --> 00:07:03,200 Speaker 1: at the White House, Treasury, and the Fed. What does 132 00:07:03,200 --> 00:07:06,560 Speaker 1: it look like if things get If you said we're intercession, 133 00:07:06,600 --> 00:07:09,280 Speaker 1: I've claimed I've been saying that for months, just because 134 00:07:09,279 --> 00:07:12,800 Speaker 1: it's pretty apparent everybody paying attention or already intercession. But 135 00:07:12,920 --> 00:07:14,880 Speaker 1: it could be six months, it could be three or 136 00:07:14,880 --> 00:07:17,600 Speaker 1: four years, right for us to actually turn this thing around. 137 00:07:17,680 --> 00:07:19,600 Speaker 1: Some of these some of these last a long time. 138 00:07:20,120 --> 00:07:23,080 Speaker 1: I mean, you know, the stock market in February sixty 139 00:07:23,120 --> 00:07:26,760 Speaker 1: six was at a thousand, and inflation adjusted, in August 140 00:07:26,760 --> 00:07:29,040 Speaker 1: of nineteen eighty two, it was at two thirty five. 141 00:07:29,800 --> 00:07:32,679 Speaker 1: So the value of the stock market in real terms 142 00:07:32,680 --> 00:07:35,440 Speaker 1: felled by seventy six and a half percent in sixteen 143 00:07:35,440 --> 00:07:38,680 Speaker 1: and a half years. That's a bear market. And you know, 144 00:07:38,960 --> 00:07:42,440 Speaker 1: those things are not impossible, and we have worse government 145 00:07:42,480 --> 00:07:44,840 Speaker 1: today than we've ever had. So what does it look 146 00:07:44,880 --> 00:07:47,320 Speaker 1: like though, if you're looking for indicators for the for 147 00:07:47,360 --> 00:07:49,920 Speaker 1: the folks out there that not only were we having 148 00:07:49,920 --> 00:07:53,560 Speaker 1: this inflation and you're you know, you explained why the 149 00:07:53,640 --> 00:07:56,280 Speaker 1: job's numbers aren't really reflective of the health of the economy. 150 00:07:56,360 --> 00:07:59,120 Speaker 1: Right now, what do you see on the front page 151 00:07:59,120 --> 00:08:01,720 Speaker 1: of the Wall Street journy or you know, popping up 152 00:08:01,720 --> 00:08:04,040 Speaker 1: on CNBC and you go, oh, this is going to 153 00:08:04,120 --> 00:08:06,600 Speaker 1: get ugly. Yeah, Well, let me just tell you what 154 00:08:06,680 --> 00:08:08,680 Speaker 1: I look at and why I'm why I can be 155 00:08:08,720 --> 00:08:12,480 Speaker 1: a little optimistic. I don't like to be optimistic or pessimistic, buck, 156 00:08:12,720 --> 00:08:16,080 Speaker 1: I like to really be realistic. Tax rates are low, 157 00:08:16,520 --> 00:08:18,840 Speaker 1: the thirty seven percent. These guys were not able to 158 00:08:18,920 --> 00:08:21,720 Speaker 1: roll back the Trump tax cuts all of that, which 159 00:08:21,760 --> 00:08:25,920 Speaker 1: means that the economy could really do a lot better 160 00:08:26,080 --> 00:08:28,360 Speaker 1: than it would have done let's say, during the seventies 161 00:08:28,400 --> 00:08:34,160 Speaker 1: and sixties, late sixties. So I'm much more optimistic because 162 00:08:34,160 --> 00:08:36,040 Speaker 1: the tax rates we never went back up to the 163 00:08:36,080 --> 00:08:39,760 Speaker 1: seventy eight ninety percent tax rates, and that's a big blessing. 164 00:08:40,480 --> 00:08:43,120 Speaker 1: We have a huge debt overload, which makes it ch 165 00:08:43,200 --> 00:08:46,080 Speaker 1: a lot worse than it was back then. So here 166 00:08:46,120 --> 00:08:48,760 Speaker 1: we are in a world where we have a lot 167 00:08:48,760 --> 00:08:51,200 Speaker 1: of conflicting things. But my view is I think the 168 00:08:51,200 --> 00:08:54,280 Speaker 1: economy is in rough shape. Unless we win the elections 169 00:08:54,280 --> 00:08:57,000 Speaker 1: in November and then win them again in November of 170 00:08:57,040 --> 00:09:01,240 Speaker 1: twenty four, we really need to change policies, change direction, 171 00:09:01,280 --> 00:09:06,560 Speaker 1: and change the incentive structure dramatically. Art you're way smarter 172 00:09:06,800 --> 00:09:10,800 Speaker 1: obviously than either Buck or I in analyzing the economic situation. 173 00:09:10,800 --> 00:09:13,440 Speaker 1: And Buck and I have been talking off air, and 174 00:09:13,480 --> 00:09:15,480 Speaker 1: I'm curious if you could explain it to me in 175 00:09:15,520 --> 00:09:18,360 Speaker 1: a way that our audience can understand and I can understand. 176 00:09:19,000 --> 00:09:21,840 Speaker 1: Despite the fact that our economy certainly appears to be 177 00:09:21,960 --> 00:09:27,240 Speaker 1: in a very challenging time, the dollar has been skyrocketing 178 00:09:27,240 --> 00:09:31,880 Speaker 1: and value against virtually every other other global currency out 179 00:09:31,880 --> 00:09:35,319 Speaker 1: there recently achieved parity with the Euro, which hadn't happened 180 00:09:35,320 --> 00:09:38,640 Speaker 1: in roughly twenty years. What is going on that we're 181 00:09:38,640 --> 00:09:41,840 Speaker 1: seeing a flight into the dollar such that the dollar 182 00:09:42,120 --> 00:09:46,760 Speaker 1: is increasing in value against virtually every currency around the world. Yeah, 183 00:09:46,800 --> 00:09:49,120 Speaker 1: there's three measures of the value of a dollar. You 184 00:09:49,160 --> 00:09:51,839 Speaker 1: can measure it in terms of eggs, you can measure 185 00:09:51,840 --> 00:09:54,240 Speaker 1: it in terms of shoes, you can measure it in 186 00:09:54,320 --> 00:09:56,880 Speaker 1: terms of gold. You can measure it in terms of 187 00:09:56,920 --> 00:09:59,520 Speaker 1: foreign exchange, or you can measure it in terms of 188 00:09:59,520 --> 00:10:02,400 Speaker 1: goods and services. The dollar is very strong relative to 189 00:10:02,400 --> 00:10:06,080 Speaker 1: the other really really bad currencies. The dollar has even 190 00:10:06,120 --> 00:10:09,760 Speaker 1: improved relative to goals, but relative to goods and services 191 00:10:09,760 --> 00:10:13,120 Speaker 1: of dollars in terrible shape. Um, you know, being very 192 00:10:13,120 --> 00:10:16,840 Speaker 1: short myself. The way I like to say it is, 193 00:10:17,559 --> 00:10:20,360 Speaker 1: you know, the dollars is the tallest midget in the group. 194 00:10:21,480 --> 00:10:25,599 Speaker 1: And you know, all currencies worldwide are in really bad shape, 195 00:10:25,840 --> 00:10:27,640 Speaker 1: and the dollar is just in the least bad of 196 00:10:27,640 --> 00:10:29,959 Speaker 1: those words. What if you could get the Biden administration 197 00:10:30,040 --> 00:10:32,720 Speaker 1: back to your back to your your realism tinged with 198 00:10:32,760 --> 00:10:35,920 Speaker 1: optimistm perhaps we're speaking of art laugh for everybody. The 199 00:10:36,040 --> 00:10:40,160 Speaker 1: legendary economist, Reagan's advisor on the economy advised Trump on 200 00:10:40,200 --> 00:10:43,000 Speaker 1: the economy during COVID art if you could, if you 201 00:10:43,040 --> 00:10:45,040 Speaker 1: could get by, let's just assume him for a second. 202 00:10:45,040 --> 00:10:47,040 Speaker 1: You know, we're doing a talk show here. You could 203 00:10:47,040 --> 00:10:50,520 Speaker 1: sit down with Biden after the midterms, after the utter 204 00:10:50,600 --> 00:10:53,760 Speaker 1: butt kicking that we hope and believe is coming in 205 00:10:53,800 --> 00:10:57,000 Speaker 1: the Congress for the Democrats, And Biden was willing to 206 00:10:57,040 --> 00:10:59,679 Speaker 1: listen to you on a thing or two. Right, He's 207 00:10:59,679 --> 00:11:01,720 Speaker 1: not going to do everything, but on a thing or two, 208 00:11:02,080 --> 00:11:05,160 Speaker 1: what would you say, please just do this because you 209 00:11:05,200 --> 00:11:08,480 Speaker 1: will see the benefits for the American people. Well, let 210 00:11:08,480 --> 00:11:10,600 Speaker 1: me start up by saying, how do you reduce the 211 00:11:10,600 --> 00:11:14,320 Speaker 1: price of apples if you look at the marketplace and apples, 212 00:11:14,320 --> 00:11:16,839 Speaker 1: and how do we get apple prices to fall? Well, 213 00:11:16,840 --> 00:11:20,080 Speaker 1: there are two ways you can get apple prices to fall. One, 214 00:11:20,120 --> 00:11:22,920 Speaker 1: you can get people to demand less apples, and if 215 00:11:22,920 --> 00:11:25,400 Speaker 1: there's less demand for apples, the price of apples will 216 00:11:25,440 --> 00:11:28,760 Speaker 1: fall as we move downward along the supply curview with me, yes, sir, 217 00:11:29,520 --> 00:11:31,680 Speaker 1: There's another way of making the price of apples to 218 00:11:31,720 --> 00:11:33,600 Speaker 1: fall is to have a bumper crop and apples, to 219 00:11:33,640 --> 00:11:36,440 Speaker 1: have a huge increase in the supply of apples, and 220 00:11:36,480 --> 00:11:38,600 Speaker 1: then we move down along the demand curve and the 221 00:11:38,640 --> 00:11:41,640 Speaker 1: price of apples falls. One way is to crush demand. 222 00:11:42,040 --> 00:11:45,800 Speaker 1: The other way is to enhance supply. My view is, 223 00:11:46,120 --> 00:11:49,280 Speaker 1: as opposed to Larry Summers and these other Canesian economists, 224 00:11:49,640 --> 00:11:52,839 Speaker 1: is I like to see us reduce inflation by increasing 225 00:11:52,880 --> 00:11:56,400 Speaker 1: the supply of goods and services, which would naturally help 226 00:11:56,520 --> 00:12:00,319 Speaker 1: bring down the price of goods and services. That's number one. 227 00:12:00,840 --> 00:12:03,440 Speaker 1: Number two, the currency you need to have a tight 228 00:12:03,520 --> 00:12:07,800 Speaker 1: money policy. Inflation is basically too much money chasing, too 229 00:12:07,920 --> 00:12:10,680 Speaker 1: few goods. As I said, I'd like to increase the 230 00:12:10,800 --> 00:12:13,800 Speaker 1: supply of goods to make it more goods, and also 231 00:12:13,920 --> 00:12:15,840 Speaker 1: to reduce the supply of money or to make the 232 00:12:15,880 --> 00:12:18,760 Speaker 1: demand for money there, which means you have to stop 233 00:12:18,800 --> 00:12:21,240 Speaker 1: trying to control interest rates and let interest rates seek 234 00:12:21,280 --> 00:12:24,760 Speaker 1: their own level in the marketplace. I mean, with inflation 235 00:12:24,840 --> 00:12:28,840 Speaker 1: running a nine point run percent, how in the heck, Clay, 236 00:12:28,880 --> 00:12:31,400 Speaker 1: how in the heck is it possible that we have 237 00:12:31,440 --> 00:12:34,640 Speaker 1: a ten year bond yield of around three percent? Would 238 00:12:34,679 --> 00:12:37,520 Speaker 1: you buy a government bond today for ten years the 239 00:12:37,640 --> 00:12:41,360 Speaker 1: yield at three percent with your money? Now, that's one 240 00:12:41,400 --> 00:12:43,920 Speaker 1: of the questions that I that we both have in 241 00:12:43,920 --> 00:12:45,960 Speaker 1: general about the way the mortgage rates are going, and 242 00:12:46,000 --> 00:12:50,040 Speaker 1: that leads me art and you're awesome on all this stuff, 243 00:12:50,040 --> 00:12:52,640 Speaker 1: by the way, that even people who are not a 244 00:12:52,720 --> 00:12:56,600 Speaker 1: Nobel Prize winning economists can understand. Basically, as you work 245 00:12:56,679 --> 00:12:59,680 Speaker 1: through here, we're at nine point one percent inflation, you 246 00:12:59,760 --> 00:13:03,079 Speaker 1: think we're going over ten percent by the mid terms. Oh, 247 00:13:03,200 --> 00:13:05,240 Speaker 1: you know, there is nothing I see that's going to 248 00:13:05,280 --> 00:13:08,880 Speaker 1: stop inflation anytime soon. That was my question for everybody 249 00:13:08,920 --> 00:13:11,200 Speaker 1: out there right now that is dealing with the ravages 250 00:13:11,240 --> 00:13:14,520 Speaker 1: of inflation. Now, how long is it going to be 251 00:13:14,720 --> 00:13:17,880 Speaker 1: till there's some normalcy in terms of inflation to what 252 00:13:17,920 --> 00:13:19,960 Speaker 1: the FED does. If the Fed let's interest rates stay 253 00:13:20,040 --> 00:13:23,599 Speaker 1: below the rate of inflation, it could last forever. Yeah, 254 00:13:23,600 --> 00:13:26,240 Speaker 1: if they keep printing more money. Now, when you look 255 00:13:26,240 --> 00:13:28,520 Speaker 1: at it, M one, the money supply is a share 256 00:13:28,520 --> 00:13:31,960 Speaker 1: of GDP has increased four or fold in the last 257 00:13:31,960 --> 00:13:35,800 Speaker 1: two or three years. Hello, You've got a huge increase 258 00:13:35,840 --> 00:13:38,360 Speaker 1: in the quantity of money in liquidity and there's no 259 00:13:38,480 --> 00:13:42,559 Speaker 1: controls there, and you're constricting the supply of goods and services. 260 00:13:42,880 --> 00:13:45,760 Speaker 1: You know, it makes no sense whatsoever. If those policies 261 00:13:45,760 --> 00:13:49,160 Speaker 1: are continued, you could just see that inflation going on 262 00:13:49,200 --> 00:13:51,600 Speaker 1: and on and on. Now. I lived through the seventies 263 00:13:51,640 --> 00:13:54,760 Speaker 1: and the eighties, and we had two sets of policies 264 00:13:54,760 --> 00:13:58,040 Speaker 1: that brought it under control. Paul Boker allowed interest rates 265 00:13:58,040 --> 00:14:01,439 Speaker 1: to rise. I think the interest rates where fifteen, sixteen, 266 00:14:01,520 --> 00:14:04,360 Speaker 1: seventeen percent when the inflation rate was in the low teens, 267 00:14:04,960 --> 00:14:07,880 Speaker 1: and that really made it tight money. Then we had 268 00:14:07,880 --> 00:14:10,120 Speaker 1: the tax cuts which increased the supply of goods and 269 00:14:10,120 --> 00:14:12,920 Speaker 1: services on the Reagan and if you look at that inflation, 270 00:14:12,960 --> 00:14:16,200 Speaker 1: it felt like a stone. It just came straight down 271 00:14:16,800 --> 00:14:19,120 Speaker 1: and that's exactly what we have to do now. But 272 00:14:19,480 --> 00:14:21,760 Speaker 1: you know, there is no talent on the Federal Reserve 273 00:14:21,800 --> 00:14:24,960 Speaker 1: Board today. They're picked for all sorts of characteristics other 274 00:14:25,040 --> 00:14:28,640 Speaker 1: than being competent in FED policy. And I can't see 275 00:14:28,680 --> 00:14:31,320 Speaker 1: them having the wherewithal to even the knowledge to be 276 00:14:31,360 --> 00:14:34,680 Speaker 1: able to choose a good answer. They just don't know. 277 00:14:34,800 --> 00:14:37,960 Speaker 1: These are not professionals. This is not Paul Vulker, it's 278 00:14:38,000 --> 00:14:41,360 Speaker 1: not Alan Greenspan, it's not Arthur Burns, it's not mcchesley Martin. 279 00:14:41,720 --> 00:14:44,520 Speaker 1: These are people selected because of their gender or whatever 280 00:14:44,560 --> 00:14:47,720 Speaker 1: it may be, and they are running something very serious 281 00:14:47,760 --> 00:14:49,720 Speaker 1: and they don't have the wherewithal to do it. Our 282 00:14:49,800 --> 00:14:52,280 Speaker 1: laugh for everybody, Clay, I'm gonna coffee your notes after 283 00:14:52,360 --> 00:14:55,520 Speaker 1: class today. Okay, yeah, I'm not kid. This is amazing 284 00:14:55,680 --> 00:14:58,040 Speaker 1: that first of all, thank you for the time and 285 00:14:58,280 --> 00:15:01,000 Speaker 1: my pleasure. I hope will enjoyed this as much as 286 00:15:01,000 --> 00:15:03,520 Speaker 1: Buckeye did, because it does feel like you get to 287 00:15:03,520 --> 00:15:05,880 Speaker 1: sit with a like you're an economics class. I think 288 00:15:05,880 --> 00:15:07,600 Speaker 1: I got to go home for that and study though, 289 00:15:07,800 --> 00:15:12,400 Speaker 1: like do some homework. Oh, he's awesome. Look, we gotta 290 00:15:12,440 --> 00:15:17,120 Speaker 1: tell you Cyber criminals have been taken advantage of so 291 00:15:17,240 --> 00:15:20,520 Speaker 1: much of your information out there, whether it's your private 292 00:15:20,600 --> 00:15:24,120 Speaker 1: medical information, whether it is your credit card data. It's 293 00:15:24,240 --> 00:15:27,760 Speaker 1: all out there. And how often are you seeing all 294 00:15:27,800 --> 00:15:31,600 Speaker 1: of these different companies announcing that all of their all 295 00:15:31,680 --> 00:15:34,720 Speaker 1: of their information has leaked and it's out on the internet. 296 00:15:34,880 --> 00:15:38,520 Speaker 1: It's important to understand how cybercrime and identity theft are 297 00:15:38,560 --> 00:15:42,600 Speaker 1: affecting our lives. Your information is out there all the time, 298 00:15:42,880 --> 00:15:47,160 Speaker 1: which is why you need Norton LifeLock. While LifeLock can't 299 00:15:47,200 --> 00:15:51,520 Speaker 1: guarantee that you that your identity is not gonna be stolen, 300 00:15:51,560 --> 00:15:56,080 Speaker 1: nobody can, but they can monitor all of your transactions 301 00:15:56,120 --> 00:16:00,240 Speaker 1: at all businesses and help you if something arises. They 302 00:16:00,320 --> 00:16:03,800 Speaker 1: got specialists that can fix it and they can help 303 00:16:03,840 --> 00:16:08,720 Speaker 1: to protect you with their great opportunity at LifeLock, Identity 304 00:16:08,760 --> 00:16:12,680 Speaker 1: theft starts here. Join now save up to twenty five 305 00:16:12,760 --> 00:16:17,000 Speaker 1: percent off your first year with promo code Clay. Go 306 00:16:17,200 --> 00:16:20,600 Speaker 1: online right now to LifeLock dot com. You can also 307 00:16:20,720 --> 00:16:25,200 Speaker 1: call one eight hundred LifeLock. Remember that promo code Clay 308 00:16:25,360 --> 00:16:30,720 Speaker 1: cla why for twenty five percent of welcome back in Klay. 309 00:16:30,760 --> 00:16:34,280 Speaker 1: Travis buck Sexton show I wish Art Laugher were in 310 00:16:34,360 --> 00:16:36,760 Speaker 1: charge of the FED right now. I mean, I bet 311 00:16:36,760 --> 00:16:38,840 Speaker 1: a lot of you out there listening right now who 312 00:16:39,120 --> 00:16:42,120 Speaker 1: haven't had economics since high school. Maybe you had it 313 00:16:42,200 --> 00:16:47,720 Speaker 1: in college and you understand it in theory. Buck. He's 314 00:16:47,800 --> 00:16:51,200 Speaker 1: such a excellent I mean, I don't know how much time, 315 00:16:51,200 --> 00:16:53,480 Speaker 1: if you ever spend a lot of time teaching, but 316 00:16:53,520 --> 00:16:56,160 Speaker 1: I always we've had him on what once before, and 317 00:16:56,360 --> 00:16:59,600 Speaker 1: every question he answers, I feel like you're sitting in 318 00:16:59,640 --> 00:17:05,280 Speaker 1: a cloud room of a great professor. Yes, and the 319 00:17:05,560 --> 00:17:11,120 Speaker 1: way he breaks it down, Yeah, we were talking during 320 00:17:11,160 --> 00:17:14,040 Speaker 1: the break. The big question that I've had that he 321 00:17:14,080 --> 00:17:18,719 Speaker 1: went right to addressing is when you're talking about having 322 00:17:18,880 --> 00:17:22,080 Speaker 1: inflation that is running far in excess of what interest 323 00:17:22,160 --> 00:17:25,960 Speaker 1: rates are, why in the world would you not continue 324 00:17:26,000 --> 00:17:28,560 Speaker 1: to take out as many loans at three percent as 325 00:17:28,600 --> 00:17:31,920 Speaker 1: you can when inflations at nine And how would inflation 326 00:17:32,000 --> 00:17:33,760 Speaker 1: ever come down? As long as that's going on. The 327 00:17:33,800 --> 00:17:37,199 Speaker 1: whole Democrat Party is premised on the idea when it 328 00:17:37,200 --> 00:17:39,480 Speaker 1: comes to finance and everything else that Uncle Sam is 329 00:17:39,480 --> 00:17:42,119 Speaker 1: actually Santa Claus. Yeah, can just give the people that 330 00:17:42,160 --> 00:17:45,200 Speaker 1: are the good people whatever gifts and good ease they 331 00:17:45,280 --> 00:17:47,879 Speaker 1: want to with no downside. We are finding out right 332 00:17:47,920 --> 00:17:51,119 Speaker 1: now everybody. Yes, there is a downside to that, and 333 00:17:51,480 --> 00:17:54,399 Speaker 1: modern monetary theory doesn't work at all. Verizon AT and 334 00:17:54,440 --> 00:17:57,560 Speaker 1: T T Mobile, they're charging you a premium right now 335 00:17:57,680 --> 00:18:00,440 Speaker 1: every single month of data that you don't use. Doesn't 336 00:18:00,480 --> 00:18:02,280 Speaker 1: have to be that way. It shouldn't be that way. 337 00:18:02,320 --> 00:18:05,240 Speaker 1: Instead of paying ninety bucks a month your current provider, 338 00:18:05,600 --> 00:18:07,919 Speaker 1: you can get talk, text and data for just thirty 339 00:18:07,920 --> 00:18:11,200 Speaker 1: dollars a month with pure Talk. 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Welcome back into the Clay and Buck Show. 350 00:18:44,800 --> 00:18:47,800 Speaker 1: We just had a great conversation with Art Laugher. If 351 00:18:47,840 --> 00:18:49,720 Speaker 1: you missed it, you want to know what's going on 352 00:18:49,760 --> 00:18:53,800 Speaker 1: with the economy. Make sure you have your notebook out, 353 00:18:53,800 --> 00:18:58,159 Speaker 1: your number, two pencils, and perhaps a protractor, one of 354 00:18:58,160 --> 00:19:01,080 Speaker 1: those graphing calculators they may us all buy back in 355 00:19:01,600 --> 00:19:04,480 Speaker 1: in you know, high school or junior high or whenever 356 00:19:04,520 --> 00:19:06,000 Speaker 1: you had the graphic guy. I think it was high 357 00:19:06,000 --> 00:19:09,080 Speaker 1: school graphic calculative Texas instruments. I remember that. Oh yeah, 358 00:19:09,119 --> 00:19:11,320 Speaker 1: I remember that. I hated I hated the graphic because 359 00:19:12,119 --> 00:19:15,080 Speaker 1: oh man, no good. Anyway, get all that stuff ready, 360 00:19:15,080 --> 00:19:17,400 Speaker 1: but you learn a lot. The podcast The clan Buck 361 00:19:17,400 --> 00:19:19,359 Speaker 1: shows that. I'm telling you to go check out and 362 00:19:19,400 --> 00:19:21,760 Speaker 1: subscribe to it. Please. iHeart app a great place to 363 00:19:21,760 --> 00:19:25,439 Speaker 1: do it, Apple Podcast Store. Listen to it wherever you like, 364 00:19:26,040 --> 00:19:27,800 Speaker 1: but it's put up hour by hours, so you can 365 00:19:27,840 --> 00:19:32,919 Speaker 1: listen also to a best of and there you go. Uh. Now, 366 00:19:33,640 --> 00:19:37,520 Speaker 1: we have a couple of things. One is the that 367 00:19:37,640 --> 00:19:41,359 Speaker 1: that shooting that was stopped in progress at the mall 368 00:19:41,440 --> 00:19:47,720 Speaker 1: in Indiana by Elisha Dicken twenty two years old. The 369 00:19:48,000 --> 00:19:50,840 Speaker 1: reports were that he was forty yards away with a 370 00:19:50,880 --> 00:19:54,240 Speaker 1: pistol and put eight of ten rounds on target, hit 371 00:19:54,280 --> 00:19:56,720 Speaker 1: the mat. The the mass shooter who would would have 372 00:19:56,760 --> 00:20:01,399 Speaker 1: been somebody that likely killed dozens of people in this mall. 373 00:20:01,800 --> 00:20:06,760 Speaker 1: Elisha Dickon pulled out his side arm or his firearm, 374 00:20:06,760 --> 00:20:09,240 Speaker 1: i should say, and hit him with eight out of 375 00:20:09,280 --> 00:20:12,760 Speaker 1: ten rounds. The word hero is the first thing for 376 00:20:12,840 --> 00:20:15,439 Speaker 1: any normal person that comes to mind. It has just 377 00:20:15,520 --> 00:20:18,960 Speaker 1: been fact for Elisha dicken. Just been fascinating to see 378 00:20:18,960 --> 00:20:23,240 Speaker 1: how CNN, for example, writes about him. And hat tip 379 00:20:23,560 --> 00:20:26,800 Speaker 1: my friend Mike Zernovich on this one. What we know 380 00:20:27,040 --> 00:20:31,400 Speaker 1: about the armed bystander who killed the shooter at an 381 00:20:31,400 --> 00:20:35,000 Speaker 1: Indiana mall. No, they only use the word hero. There's 382 00:20:35,080 --> 00:20:37,520 Speaker 1: no sense of, oh my gosh, what this guy did 383 00:20:37,600 --> 00:20:40,119 Speaker 1: is amazing. Keep in mind, folks, even if you're the 384 00:20:40,160 --> 00:20:42,880 Speaker 1: good guy in the situation, you know, you draw your pistol, 385 00:20:43,920 --> 00:20:47,000 Speaker 1: you miss, and you might hit somebody. And you know, 386 00:20:47,040 --> 00:20:49,000 Speaker 1: this is a tough situation. You're in a crowded place, 387 00:20:49,000 --> 00:20:50,720 Speaker 1: you're in a mall. You might hit somebody. You have 388 00:20:50,760 --> 00:20:52,800 Speaker 1: to deal with those consequences. Even if you were to 389 00:20:52,880 --> 00:20:54,960 Speaker 1: hit the shooter, you might hit somebody behind him. That 390 00:20:55,000 --> 00:20:57,760 Speaker 1: did not happen. Here, you're going up against somebody who's 391 00:20:57,800 --> 00:21:00,480 Speaker 1: got a rifle clay at this range us what the 392 00:21:00,560 --> 00:21:03,440 Speaker 1: rifle is gonna be much more. You know, it's gonna 393 00:21:03,440 --> 00:21:05,600 Speaker 1: be a much more potent in close quarters combat than 394 00:21:05,640 --> 00:21:07,439 Speaker 1: the pistol will be. You're going up again. You know, 395 00:21:07,480 --> 00:21:12,120 Speaker 1: he could have died doing this heroic act. Instead, he 396 00:21:12,359 --> 00:21:16,440 Speaker 1: absolutely nailed it and saved lives. And CNN's like, yeah, 397 00:21:16,480 --> 00:21:20,440 Speaker 1: I guess that's a good thing. Armed bystander. Buck, he 398 00:21:20,640 --> 00:21:25,280 Speaker 1: took the guy out in fifteen seconds. Fifteen seconds for 399 00:21:25,359 --> 00:21:27,680 Speaker 1: fifteen seconds from the start of the shooting. Yes, that's 400 00:21:27,680 --> 00:21:30,520 Speaker 1: what I'm saying. Yeah, he think about just think about 401 00:21:30,760 --> 00:21:33,080 Speaker 1: the last time you were in a mall food court. 402 00:21:34,640 --> 00:21:36,680 Speaker 1: I'm not sure that I could have react in fifteen 403 00:21:36,720 --> 00:21:41,000 Speaker 1: seconds to one of my kids knocking over the Chick 404 00:21:41,040 --> 00:21:43,880 Speaker 1: fil a right and like get it, get it, reacted 405 00:21:43,880 --> 00:21:46,359 Speaker 1: to to clean up. This guy is just there with 406 00:21:46,400 --> 00:21:49,640 Speaker 1: his girlfriend. He's twenty two years old. So far as 407 00:21:49,680 --> 00:21:52,040 Speaker 1: I have seen, Buck, he's never been in the military. 408 00:21:52,320 --> 00:21:55,159 Speaker 1: He is not like he's had special ops training or something. 409 00:21:55,640 --> 00:21:57,800 Speaker 1: He is the definition of a good guy with a gun. 410 00:21:58,080 --> 00:22:03,119 Speaker 1: Within fifteen seconds of that the shooter and I will say, Buck, 411 00:22:03,760 --> 00:22:07,679 Speaker 1: it seems to me that there's becoming less attention paid 412 00:22:07,720 --> 00:22:11,480 Speaker 1: to mass shooters. I have barely seen anything about this 413 00:22:11,520 --> 00:22:14,359 Speaker 1: mass shooter in terms of his background, in terms of 414 00:22:14,400 --> 00:22:17,919 Speaker 1: his story, fifteen seconds, he hits him eight out of 415 00:22:17,960 --> 00:22:22,000 Speaker 1: ten times and ends the situation in a food courts. 416 00:22:22,200 --> 00:22:25,480 Speaker 1: It's a remarkable story and just my favorite of the 417 00:22:26,280 --> 00:22:29,600 Speaker 1: worst of these sort of headlines from to be fair 418 00:22:29,640 --> 00:22:32,760 Speaker 1: and we are always fair and honest here, okay, New 419 00:22:32,840 --> 00:22:37,360 Speaker 1: York Times Yesterday had after indianimall shooting, one hero. They 420 00:22:37,480 --> 00:22:40,560 Speaker 1: use the h word, but no lasting solution other than 421 00:22:40,600 --> 00:22:42,719 Speaker 1: taking everyone's guns away, of course, but the New York 422 00:22:42,720 --> 00:22:44,800 Speaker 1: Times on the front page New York Times Yesterday, to 423 00:22:45,000 --> 00:22:47,199 Speaker 1: be fair, that is the right way to approach, at 424 00:22:47,280 --> 00:22:50,240 Speaker 1: least the description of this individual. He is a hero. 425 00:22:50,880 --> 00:22:54,520 Speaker 1: But I thought this is funny BBC armed hero in 426 00:22:54,680 --> 00:22:58,679 Speaker 1: quotes stopped mass shooter. It's like, I think you guys 427 00:22:58,680 --> 00:23:02,480 Speaker 1: are safe given the facts of the case in the declaration, 428 00:23:02,560 --> 00:23:04,840 Speaker 1: but you know, the hero and quotes. I think it 429 00:23:04,880 --> 00:23:06,840 Speaker 1: was a pretty funny one. Well. They used to remember 430 00:23:07,800 --> 00:23:11,400 Speaker 1: not use the phrase liar in or a lie in 431 00:23:11,920 --> 00:23:14,640 Speaker 1: traditional media coverage. I'm not talking about a column, I'm 432 00:23:14,640 --> 00:23:17,280 Speaker 1: talking about a story. And then during the Trump era 433 00:23:17,359 --> 00:23:20,639 Speaker 1: they were like the lies were so overwhelming that we 434 00:23:20,720 --> 00:23:24,680 Speaker 1: had to start saying in our traditional news coverage, and 435 00:23:24,760 --> 00:23:27,200 Speaker 1: so I think they're probably still trying to hue to 436 00:23:27,320 --> 00:23:30,160 Speaker 1: that by the hero is probably a quote from the 437 00:23:30,200 --> 00:23:33,960 Speaker 1: mayor or the or the the what the mayor I 438 00:23:34,000 --> 00:23:36,359 Speaker 1: think spoke and also the chief of police in that 439 00:23:36,400 --> 00:23:40,200 Speaker 1: community and called him a hero almost immediately. But so 440 00:23:40,280 --> 00:23:43,480 Speaker 1: on the one end, we had the story of heroism 441 00:23:43,520 --> 00:23:45,800 Speaker 1: from this individual and a mass shooting. Three people were 442 00:23:45,880 --> 00:23:47,520 Speaker 1: killed in the shooting, but it would have been a 443 00:23:47,600 --> 00:23:50,280 Speaker 1: much higher death toll if he had not, if Elishah 444 00:23:50,320 --> 00:23:53,040 Speaker 1: Dickon had not stepped in. So the the biggest of 445 00:23:53,119 --> 00:23:57,919 Speaker 1: high fives and and and praise for Elishah Dickens on 446 00:23:57,960 --> 00:24:00,960 Speaker 1: the Elijah Dickon on this one. But then there's there's 447 00:24:00,960 --> 00:24:05,520 Speaker 1: the situation we mentioned yesterday of Starbucks is closing stores 448 00:24:06,160 --> 00:24:07,800 Speaker 1: all and I, you know, I just I like the 449 00:24:07,800 --> 00:24:09,560 Speaker 1: egg bites. I'm just gonna say it. I'm an egg 450 00:24:09,560 --> 00:24:14,280 Speaker 1: bite guy. I like those. Clay Travis, this is madness. 451 00:24:14,320 --> 00:24:17,080 Speaker 1: They're delicious, man. They're not a breakfast guy. Is this 452 00:24:17,160 --> 00:24:19,280 Speaker 1: a breakfast food? No? I eat at any time of 453 00:24:19,359 --> 00:24:22,520 Speaker 1: day because otherwise it's like pastries and I can't eat 454 00:24:22,520 --> 00:24:24,719 Speaker 1: flour obviously unless I want to get really sick, so 455 00:24:24,960 --> 00:24:26,720 Speaker 1: the only thing I can usually eat is either banana 456 00:24:26,800 --> 00:24:28,680 Speaker 1: or an egg bite that I can get there. But 457 00:24:29,040 --> 00:24:33,439 Speaker 1: you know, Starbucks, really, you know, it's it was the 458 00:24:33,480 --> 00:24:38,359 Speaker 1: beginning of the nationwide coffee chain revolution. Became a multi 459 00:24:38,440 --> 00:24:42,880 Speaker 1: multi billion dollar business, one of the most recognizable brands, 460 00:24:43,280 --> 00:24:45,240 Speaker 1: certainly I would say, in the United States, right, and 461 00:24:45,520 --> 00:24:49,320 Speaker 1: it's now you know, you see Starbucks all over the world. Um, 462 00:24:49,520 --> 00:24:52,480 Speaker 1: they're they've closed sixteen stores, which, given how many stores 463 00:24:52,480 --> 00:24:55,200 Speaker 1: they have, may not sound like it's that big of 464 00:24:55,000 --> 00:24:58,119 Speaker 1: a of a number. But more are coming and the 465 00:24:58,200 --> 00:25:01,000 Speaker 1: reason for the stores closed and the reality of those 466 00:25:01,040 --> 00:25:05,439 Speaker 1: stores is yet another indicator of Democrats are crazy when 467 00:25:05,480 --> 00:25:07,800 Speaker 1: it comes to crime. They're crazy on COVID, They're crazy 468 00:25:07,800 --> 00:25:11,800 Speaker 1: on crime. Here's what I mean. Howard Schultz, CEO of Starbucks, 469 00:25:11,800 --> 00:25:14,880 Speaker 1: has said that the sixteen stores they're closing, which are 470 00:25:15,160 --> 00:25:20,560 Speaker 1: all in Seattle, Los Angeles, Philadelphia, Portland, DC, what do 471 00:25:20,640 --> 00:25:24,239 Speaker 1: those places have in common? My friends? Who's calling the 472 00:25:24,320 --> 00:25:29,280 Speaker 1: shots in the mayor's office, as police commissioner, as prosecutors. 473 00:25:29,280 --> 00:25:32,520 Speaker 1: Oh we all know, don't we? These are democrats cities 474 00:25:32,640 --> 00:25:37,440 Speaker 1: blue deep blue enclaves. More store closures are coming despite 475 00:25:37,480 --> 00:25:40,800 Speaker 1: the fact that they are profitable because of the assaults 476 00:25:40,880 --> 00:25:44,919 Speaker 1: and the crime. This is audio of the Starbucks CEO, 477 00:25:45,000 --> 00:25:48,359 Speaker 1: Howard Schultz telling people in the company that it is 478 00:25:48,400 --> 00:25:51,040 Speaker 1: in fact crime that is closing these stores. You all 479 00:25:51,119 --> 00:25:53,560 Speaker 1: read the press release the last couple of days about 480 00:25:53,600 --> 00:25:56,480 Speaker 1: the fact that we are beginning to close stores that 481 00:25:56,600 --> 00:26:01,199 Speaker 1: are not unprofitable. It has shocked me that one of 482 00:26:01,200 --> 00:26:06,040 Speaker 1: the primary concerns that our retail partners have is their 483 00:26:06,080 --> 00:26:09,320 Speaker 1: own personal safety. And then we heard the stories that 484 00:26:09,480 --> 00:26:12,000 Speaker 1: go along with it about what happens in our bathrooms, 485 00:26:12,400 --> 00:26:15,480 Speaker 1: the issue of mental illness initied, the issues of homelessness, 486 00:26:15,600 --> 00:26:19,040 Speaker 1: and the issues of crime. And Starbucks is a window 487 00:26:19,160 --> 00:26:22,000 Speaker 1: into America. We have stores in every community and we 488 00:26:22,040 --> 00:26:25,280 Speaker 1: are facing things in which the stories were not built 489 00:26:25,280 --> 00:26:28,159 Speaker 1: for them. And so we're listening to our people and 490 00:26:28,320 --> 00:26:30,560 Speaker 1: closing stores. And this is just the beginning. There are 491 00:26:30,600 --> 00:26:33,760 Speaker 1: going to be many more because Starbucks is unsafe now 492 00:26:33,800 --> 00:26:37,960 Speaker 1: Clay in these democrats cities. I wonder what led to this. 493 00:26:37,960 --> 00:26:44,360 Speaker 1: This is what happens when you allow woke viral outrage 494 00:26:44,720 --> 00:26:48,959 Speaker 1: on social media to change your policies effectively overnight. And 495 00:26:49,000 --> 00:26:51,560 Speaker 1: you'll remember that there were suddenly a lot of complaints. 496 00:26:51,960 --> 00:26:55,800 Speaker 1: It went viral. It was trending around the fact that 497 00:26:55,880 --> 00:27:00,160 Speaker 1: I believe the protocol used to be buck that Starbucks 498 00:27:00,160 --> 00:27:04,040 Speaker 1: bathrooms were only available for people who were consumers of 499 00:27:04,160 --> 00:27:08,359 Speaker 1: Starbucks products. And then they said, no, what, anybody can 500 00:27:08,480 --> 00:27:13,280 Speaker 1: use our bathrooms, and they effectively turned into but why 501 00:27:13,600 --> 00:27:15,840 Speaker 1: why do they make that decision about anybody can use 502 00:27:15,920 --> 00:27:18,000 Speaker 1: not just button that's not just the bathrooms, clay, you 503 00:27:18,040 --> 00:27:19,920 Speaker 1: can sit down at a Starbucks and not buying, never 504 00:27:19,960 --> 00:27:22,080 Speaker 1: have to buy anything. Why why do they make that decision? 505 00:27:22,119 --> 00:27:24,000 Speaker 1: We all remember this one. I think it was because 506 00:27:24,040 --> 00:27:25,639 Speaker 1: there were a couple of black guys sitting there that 507 00:27:25,720 --> 00:27:28,680 Speaker 1: supposedly got They said it was racist when they were asked, why, 508 00:27:28,720 --> 00:27:30,760 Speaker 1: you know, to leave if they didn't buy something. So 509 00:27:30,800 --> 00:27:34,200 Speaker 1: Starbucks not accused of racism by two people who weren't 510 00:27:34,200 --> 00:27:38,159 Speaker 1: buying anything. And then they changed the policy nationwide. And 511 00:27:38,200 --> 00:27:40,240 Speaker 1: at the same time we had the rise of the 512 00:27:40,280 --> 00:27:44,160 Speaker 1: BLM movement, progressive prosecutors, and ending of mass incarceration where 513 00:27:44,160 --> 00:27:46,920 Speaker 1: by police forces are told, look, if there's a crazy 514 00:27:47,400 --> 00:27:51,439 Speaker 1: homeless person who's, you know, throwing trash at people and 515 00:27:51,520 --> 00:27:53,840 Speaker 1: screaming and they're spittle flying out of his mouth or whatever. 516 00:27:53,880 --> 00:27:55,879 Speaker 1: It's like, it's no big deal. Just let him be. 517 00:27:56,200 --> 00:27:57,880 Speaker 1: You don't want the cops to actually make an arrest, 518 00:27:57,960 --> 00:27:59,760 Speaker 1: don't want the cops to remove them from a private 519 00:28:00,800 --> 00:28:02,840 Speaker 1: don't don't want to do that. This is what's happened 520 00:28:02,840 --> 00:28:05,320 Speaker 1: in these cities. And I think it's also significant Bucket 521 00:28:05,320 --> 00:28:08,160 Speaker 1: the very beginning there, he said, these are still stores 522 00:28:08,200 --> 00:28:11,159 Speaker 1: where they're making money. They are profitable. It's one thing 523 00:28:11,200 --> 00:28:14,120 Speaker 1: if you decide to close down because you're not businesses 524 00:28:14,160 --> 00:28:18,639 Speaker 1: not being a successful, people don't feel safe and so 525 00:28:18,680 --> 00:28:21,639 Speaker 1: they're having to shut down. I mean, they have to 526 00:28:21,680 --> 00:28:24,040 Speaker 1: go back to the policies that they had for decades 527 00:28:24,320 --> 00:28:27,640 Speaker 1: before they trended for being racist for a day and 528 00:28:27,720 --> 00:28:30,760 Speaker 1: destroyed all of these places. And the irony is, I'm 529 00:28:30,800 --> 00:28:32,480 Speaker 1: sure a lot of the people who are going to 530 00:28:32,560 --> 00:28:35,840 Speaker 1: lose their jobs at these sixteen stores in these different 531 00:28:35,840 --> 00:28:39,840 Speaker 1: cities are minorities. There's CEO here who's who's you know, 532 00:28:40,000 --> 00:28:43,920 Speaker 1: left of center guy, a Democrat actually spoke about some 533 00:28:44,480 --> 00:28:46,960 Speaker 1: spoke about elected officials being to blame. We have that 534 00:28:47,040 --> 00:28:49,200 Speaker 1: audio too, so you should hear it, folks. You want 535 00:28:49,200 --> 00:28:51,680 Speaker 1: to he knows this Democrat play We'll play it when 536 00:28:51,720 --> 00:28:54,600 Speaker 1: we come back. That'd be perfect. My Pillow is serving 537 00:28:54,680 --> 00:28:57,200 Speaker 1: up a big time summer sale on another of their 538 00:28:57,320 --> 00:29:00,280 Speaker 1: very popular products. This sale is on their perk Cow 539 00:29:00,480 --> 00:29:03,280 Speaker 1: sheets that are available in a variety of colors and sizes. 540 00:29:03,600 --> 00:29:05,440 Speaker 1: Just to give you a sense of this online sale, 541 00:29:05,640 --> 00:29:08,880 Speaker 1: their Queen size sheets are regularly about ninety bucks, but 542 00:29:08,960 --> 00:29:11,840 Speaker 1: are now only thirty nine ninety eight. 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Same is 552 00:29:40,760 --> 00:29:43,440 Speaker 1: true if you call this phone number eight hundred seven 553 00:29:43,560 --> 00:29:46,480 Speaker 1: nine two three two sixty nine. Again that number and 554 00:29:46,480 --> 00:29:50,240 Speaker 1: remember these perk Cow sheets are phenomenal eight hundred seven 555 00:29:50,360 --> 00:29:53,240 Speaker 1: nine two three two sixty nine and use the same 556 00:29:53,280 --> 00:29:59,560 Speaker 1: promo code Clay and buck Welcome back in Clay Chorravis 557 00:29:59,640 --> 00:30:05,720 Speaker 1: Bucks Extant show. He are breaking down Starbucks CEO Howard 558 00:30:05,840 --> 00:30:11,520 Speaker 1: Schultz's comments about needing to close sixteen stores over the 559 00:30:11,520 --> 00:30:14,840 Speaker 1: fact that they're frankly just not safe. And he also 560 00:30:14,960 --> 00:30:17,840 Speaker 1: as a part of this discussion with Starbucks employee, said 561 00:30:18,240 --> 00:30:20,960 Speaker 1: there are going to be more that we are going 562 00:30:21,000 --> 00:30:25,720 Speaker 1: to have to close. And this was his further discussion 563 00:30:25,840 --> 00:30:30,600 Speaker 1: about the political consequences that have mostly come from Democrat rule. 564 00:30:30,760 --> 00:30:36,000 Speaker 1: All sixteen of those stores are from Democrat blue cities. Listen, 565 00:30:36,280 --> 00:30:40,040 Speaker 1: in my view, at the local, state and federal level, 566 00:30:40,680 --> 00:30:46,000 Speaker 1: these governments across the country and leaders mayors and governors 567 00:30:46,000 --> 00:30:51,920 Speaker 1: and city councils have advocated their responsibility in fighting crime 568 00:30:52,440 --> 00:30:55,520 Speaker 1: and addressing mental homes. And we are going to have 569 00:30:55,680 --> 00:31:00,280 Speaker 1: to refine and transform and modernize many of the things 570 00:31:00,320 --> 00:31:03,000 Speaker 1: we do to meet the needs of our customers in 571 00:31:03,080 --> 00:31:08,600 Speaker 1: a very changing operating environment in which customer behavior has changing. 572 00:31:09,080 --> 00:31:11,200 Speaker 1: Here is Howard Schultz, the CEO of one of the 573 00:31:11,200 --> 00:31:14,240 Speaker 1: most recognizable brands with among the most franchises. I mean, 574 00:31:14,280 --> 00:31:16,760 Speaker 1: I think it's right up there alongside McDonald's, and it's 575 00:31:16,760 --> 00:31:22,000 Speaker 1: one of the most common franchise restaurants in the whole country. 576 00:31:22,120 --> 00:31:25,280 Speaker 1: Here he is just straight up saying everybody. I mean, 577 00:31:25,320 --> 00:31:28,480 Speaker 1: he doesn't say the D word Democrats, but it's in Portland, 578 00:31:28,720 --> 00:31:34,720 Speaker 1: Los Angeles, Philadelphia, Washington, DC. He's saying, they will not 579 00:31:34,960 --> 00:31:38,200 Speaker 1: enforce the law, they will not punish crime, so we 580 00:31:38,320 --> 00:31:41,560 Speaker 1: have to close our stores in these places because it's unsafe. 581 00:31:42,760 --> 00:31:45,400 Speaker 1: We just had Art Laugher on and he was phenomenal. 582 00:31:45,480 --> 00:31:47,400 Speaker 1: I'd encourage you to go download the podcast if you 583 00:31:47,400 --> 00:31:49,800 Speaker 1: want to lesson on economics. But he said something interesting. 584 00:31:49,840 --> 00:31:52,640 Speaker 1: He said, Look, I've been through high inflation times before. 585 00:31:53,360 --> 00:31:56,640 Speaker 1: That's what happened in the late seventies and early eighties. 586 00:31:57,240 --> 00:31:59,160 Speaker 1: And I feel like, and I bet you feel this 587 00:31:59,200 --> 00:32:00,800 Speaker 1: way a little bit, but not that either one of 588 00:32:00,840 --> 00:32:04,320 Speaker 1: us are very old. But time is a flat circle. 589 00:32:04,880 --> 00:32:08,280 Speaker 1: And uh, to quote a true detective, I was like, Wow, 590 00:32:08,280 --> 00:32:10,120 Speaker 1: did you just go true detective on this? Yeah? I 591 00:32:10,160 --> 00:32:14,280 Speaker 1: just went true detective. And what happens is our country's 592 00:32:14,360 --> 00:32:16,600 Speaker 1: very young. Do you know what the average age of 593 00:32:16,800 --> 00:32:19,160 Speaker 1: an American is today? I was looking at this the 594 00:32:19,160 --> 00:32:23,400 Speaker 1: other day, thirty eight years old. And if the average 595 00:32:23,400 --> 00:32:28,640 Speaker 1: American pretty yeah, I'm an old man at forty three 596 00:32:28,680 --> 00:32:31,040 Speaker 1: buck just turned forty, but we are very close to 597 00:32:31,040 --> 00:32:33,840 Speaker 1: the average age of an American. And one of the 598 00:32:33,880 --> 00:32:35,640 Speaker 1: things you recognize, and I'm sure a lot of you 599 00:32:35,640 --> 00:32:37,760 Speaker 1: out there are older than us and you're saying, yeah, 600 00:32:37,840 --> 00:32:40,120 Speaker 1: speak to the choir here, one of the things you 601 00:32:40,160 --> 00:32:45,960 Speaker 1: recognize is people forget and end up making the same 602 00:32:46,000 --> 00:32:51,080 Speaker 1: mistakes that have been made before because times change and 603 00:32:51,160 --> 00:32:55,479 Speaker 1: we forget what was done that was successful. And it 604 00:32:55,520 --> 00:32:58,040 Speaker 1: makes sense, Buck, because if you look at a lot 605 00:32:58,080 --> 00:33:01,520 Speaker 1: of these people who are advocating for the policies that 606 00:33:01,600 --> 00:33:05,880 Speaker 1: have led to massive spikes and crime, they grew up 607 00:33:06,960 --> 00:33:10,000 Speaker 1: in an era when crime was not a major threat 608 00:33:10,040 --> 00:33:14,520 Speaker 1: in their lives. And that's different than if you're sixty 609 00:33:14,600 --> 00:33:17,080 Speaker 1: or seventy years old out there listening to us right now. 610 00:33:17,480 --> 00:33:22,560 Speaker 1: You remember the seventies and the eighties when crime skyrocketed 611 00:33:22,640 --> 00:33:25,920 Speaker 1: all over this country and you had to fight the 612 00:33:25,960 --> 00:33:30,719 Speaker 1: battles to ultimately win and drive crime back down in 613 00:33:30,760 --> 00:33:33,520 Speaker 1: the nineties and the two thousands, and Buck, New York 614 00:33:33,560 --> 00:33:35,760 Speaker 1: City is a perfect example of this. And you're right 615 00:33:35,800 --> 00:33:39,200 Speaker 1: at that age where you're old enough to remember. I 616 00:33:39,200 --> 00:33:41,880 Speaker 1: bet you do. When you're walking through Times Square and 617 00:33:41,960 --> 00:33:44,360 Speaker 1: is mostly peep shows and you know, your parents are 618 00:33:44,400 --> 00:33:45,880 Speaker 1: kind of covering your eyes and they don't want you 619 00:33:45,880 --> 00:33:47,960 Speaker 1: to be able to see it. It's not safe. You 620 00:33:48,000 --> 00:33:50,440 Speaker 1: couldn't go in Central Park late at night. You didn't 621 00:33:50,440 --> 00:33:53,200 Speaker 1: feel comfortable on the subway. And then you came through 622 00:33:53,240 --> 00:33:55,680 Speaker 1: that renaissance where suddenly the city became one of the 623 00:33:55,720 --> 00:33:57,880 Speaker 1: safest in the world. Clay I grew up in a 624 00:33:57,920 --> 00:34:01,400 Speaker 1: New York city where if you went into Central Park 625 00:34:01,440 --> 00:34:05,360 Speaker 1: at night and were mugged robbed, people were like, what 626 00:34:05,400 --> 00:34:07,640 Speaker 1: were you doing in Central Park at night? Yeah, that's 627 00:34:07,640 --> 00:34:10,000 Speaker 1: the most famous park in the most famous city in 628 00:34:10,040 --> 00:34:12,960 Speaker 1: America and probably the world. Right if you went in 629 00:34:13,000 --> 00:34:15,359 Speaker 1: there after dark, oh, man, you were you know, it's 630 00:34:15,360 --> 00:34:17,759 Speaker 1: almost like you were asking for it, oh, going into 631 00:34:17,800 --> 00:34:20,759 Speaker 1: the park at night. And then you would also have 632 00:34:21,200 --> 00:34:23,280 Speaker 1: just as a sense of the psychology of the city. 633 00:34:23,600 --> 00:34:25,520 Speaker 1: I knew so many people I would at any time 634 00:34:25,560 --> 00:34:28,200 Speaker 1: i'd be in an adults house, you know, family member 635 00:34:28,320 --> 00:34:32,799 Speaker 1: or whatever, everybody had like a night stick or a 636 00:34:33,760 --> 00:34:36,319 Speaker 1: you know, a big like butcher knife, kitchen knife, or 637 00:34:36,320 --> 00:34:39,160 Speaker 1: something that kept near the bed in case of a burglar. 638 00:34:39,239 --> 00:34:41,200 Speaker 1: Now you could say, well, that's just a you know, 639 00:34:41,239 --> 00:34:43,359 Speaker 1: that's just sort of helping their mindset or that makes 640 00:34:43,360 --> 00:34:46,040 Speaker 1: them feel better. It's not really, But no everybody did. 641 00:34:46,120 --> 00:34:48,880 Speaker 1: I knew there were guys who had baseball, a baseball 642 00:34:48,920 --> 00:34:50,600 Speaker 1: bat that they would keep in a certain part of 643 00:34:50,600 --> 00:34:53,080 Speaker 1: the house ready to go in case somebody broke in. 644 00:34:53,239 --> 00:34:56,360 Speaker 1: I mean, that was New York City in the late eighties, 645 00:34:56,400 --> 00:35:01,960 Speaker 1: early nineties. And then they fixed it remarkably all over 646 00:35:02,000 --> 00:35:04,680 Speaker 1: the country, but New York City was certainly sorted. That 647 00:35:04,760 --> 00:35:08,040 Speaker 1: Shining City on a hill example. We did two things. 648 00:35:08,840 --> 00:35:11,680 Speaker 1: We put more cops on the street, and we put 649 00:35:11,800 --> 00:35:16,960 Speaker 1: criminals behind bars. And over years, as you do that, 650 00:35:17,560 --> 00:35:20,560 Speaker 1: the number of criminals, and certainly you know well and 651 00:35:20,800 --> 00:35:22,879 Speaker 1: a lot of our people out there know they let 652 00:35:22,920 --> 00:35:25,440 Speaker 1: police do their jobs, they let them be aggressive and 653 00:35:25,520 --> 00:35:28,520 Speaker 1: trying to protect people. All these things right, and then 654 00:35:28,760 --> 00:35:32,800 Speaker 1: crime got low enough that Democrats were able to turn 655 00:35:32,920 --> 00:35:36,719 Speaker 1: the crime conversation from we're trying to protect everybody to 656 00:35:37,400 --> 00:35:41,000 Speaker 1: its racist what's going on in our country? Because the 657 00:35:41,040 --> 00:35:46,160 Speaker 1: people being put behind bars are overwhelmingly minority. They also, 658 00:35:46,239 --> 00:35:49,200 Speaker 1: by the way, are committing most crimes. And the answer 659 00:35:49,400 --> 00:35:52,279 Speaker 1: should have been, if Republicans were smart, well, you don't 660 00:35:52,360 --> 00:35:55,719 Speaker 1: argue that it's sexist because men are the ones committing crimes. Right, 661 00:35:55,800 --> 00:35:58,400 Speaker 1: you go wherever the criminals are and put them in jail. 662 00:35:58,760 --> 00:36:02,280 Speaker 1: Speaking of crime, you like this one play the Biden 663 00:36:02,400 --> 00:36:07,960 Speaker 1: Crime Family, Hunter Biden. I have a little bet with 664 00:36:08,000 --> 00:36:11,600 Speaker 1: a certain Clay Travis on whether there will be criminal charges. 665 00:36:11,880 --> 00:36:14,319 Speaker 1: I'm feeling good about my side of the bet that 666 00:36:14,400 --> 00:36:18,080 Speaker 1: there won't be, but I wouldn't bet my future house 667 00:36:18,160 --> 00:36:20,279 Speaker 1: on it because it's looking like it's heating up a 668 00:36:20,280 --> 00:36:22,719 Speaker 1: little bit there, Clay. So you want to lead us 669 00:36:22,760 --> 00:36:25,920 Speaker 1: through the latest as to the Hunter. Got a brilliant 670 00:36:26,000 --> 00:36:28,600 Speaker 1: theory for you. And also i'd like to apologize to 671 00:36:28,680 --> 00:36:30,560 Speaker 1: your fiance for what you're going to have to pay 672 00:36:30,600 --> 00:36:31,440 Speaker 1: for my steak dinner.