1 00:00:00,840 --> 00:00:03,360 Speaker 1: Welcome to the Truth with Lisa Booth, where we cut 2 00:00:03,360 --> 00:00:05,120 Speaker 1: through the noise to get to the heart of what 3 00:00:05,200 --> 00:00:10,760 Speaker 1: matters to you. So today we're talking about Trump's economy. 4 00:00:10,800 --> 00:00:15,920 Speaker 1: With inflation cooling and the Federal Reserve fumbling, President Trump 5 00:00:15,920 --> 00:00:20,160 Speaker 1: has been pushing for lower rates, smarter trade deals, and 6 00:00:21,040 --> 00:00:24,200 Speaker 1: executing his vision of the Golden Age of America. 7 00:00:24,280 --> 00:00:26,160 Speaker 2: Today, we're going to talk to EJ. And Tony. 8 00:00:26,280 --> 00:00:29,120 Speaker 1: He is an economist over at the Heritage Foundation. We're 9 00:00:29,240 --> 00:00:31,800 Speaker 1: going to talk to him about all this exposing the 10 00:00:31,840 --> 00:00:34,640 Speaker 1: Fed's failures, you know, how we can get the economy 11 00:00:34,720 --> 00:00:39,519 Speaker 1: under control, and most importantly, what is the state of 12 00:00:39,560 --> 00:00:45,520 Speaker 1: the economy in America today, particularly compared to Biden's economy. 13 00:00:46,000 --> 00:00:47,239 Speaker 2: So we'll dig into all of that. 14 00:00:47,360 --> 00:00:50,080 Speaker 1: Also, these big trade deals at President Trump's getting done, 15 00:00:50,240 --> 00:00:51,120 Speaker 1: what does it mean for you? 16 00:00:51,240 --> 00:00:52,800 Speaker 2: What's the significance of all of it. 17 00:00:53,120 --> 00:00:55,520 Speaker 1: So stay tuned for my friend EJ and Tony from 18 00:00:55,520 --> 00:00:56,440 Speaker 1: the Heritage Foundation. 19 00:01:01,440 --> 00:01:03,560 Speaker 2: E j Antoni, it's great to have you back on 20 00:01:03,600 --> 00:01:04,160 Speaker 2: the show. 21 00:01:04,520 --> 00:01:07,319 Speaker 1: The last time we had talked, you know, there were 22 00:01:07,360 --> 00:01:09,920 Speaker 1: some of the certainty around Traffs. It was after Liberation Day. 23 00:01:09,920 --> 00:01:11,840 Speaker 1: Everyone was kind of trying to figure out what this 24 00:01:11,880 --> 00:01:14,959 Speaker 1: would mean for the country, what it would mean for 25 00:01:15,000 --> 00:01:18,680 Speaker 1: the economy. You know, now it's been a little bit 26 00:01:18,680 --> 00:01:22,240 Speaker 1: of time, what's sort of like your reflection and where 27 00:01:22,280 --> 00:01:22,960 Speaker 1: do you see. 28 00:01:22,720 --> 00:01:25,400 Speaker 2: Things now that were a little bit removed. 29 00:01:25,400 --> 00:01:27,560 Speaker 1: And there's been some trade deals, especially the big one 30 00:01:27,560 --> 00:01:28,039 Speaker 1: with the EU. 31 00:01:29,360 --> 00:01:32,160 Speaker 3: Well, Lisa, I'm really really happy to see that since 32 00:01:32,200 --> 00:01:35,959 Speaker 3: our last conversation, the administration has really course corrected here. 33 00:01:36,800 --> 00:01:39,480 Speaker 3: They've gotten away from from some of the kind of 34 00:01:39,520 --> 00:01:42,320 Speaker 3: political talking points, and I feel like they're getting back 35 00:01:42,360 --> 00:01:46,920 Speaker 3: to more sound economics and that's being reflected in these 36 00:01:46,959 --> 00:01:50,040 Speaker 3: different trade deals that are getting done and the various 37 00:01:50,040 --> 00:01:52,440 Speaker 3: agreements you mentioned the one with the EU. We also 38 00:01:52,480 --> 00:01:55,520 Speaker 3: have a recent one with Japan. And in each of 39 00:01:55,560 --> 00:02:00,000 Speaker 3: these instances, we're getting greater access to foreign consumer marks, 40 00:02:00,240 --> 00:02:02,400 Speaker 3: so that means American exporters are going to be able 41 00:02:02,440 --> 00:02:06,040 Speaker 3: to export more. That increases the demand for American exports, 42 00:02:06,080 --> 00:02:09,200 Speaker 3: and it increases the demand for the American labor producing 43 00:02:09,200 --> 00:02:11,640 Speaker 3: those exports. So you're going to look You're going to 44 00:02:11,639 --> 00:02:14,600 Speaker 3: be looking for not only more job growth, Lisa, in 45 00:02:14,919 --> 00:02:18,560 Speaker 3: these different industries, but also faster wage growth too, and 46 00:02:18,600 --> 00:02:22,680 Speaker 3: that's really important for an American middle class, especially blue 47 00:02:22,680 --> 00:02:26,840 Speaker 3: collar workers, who have been so beaten down by inflation 48 00:02:27,040 --> 00:02:30,360 Speaker 3: outpacing their wage growth over the last four years. So 49 00:02:30,520 --> 00:02:34,560 Speaker 3: really good news on that front, and again, very very 50 00:02:34,600 --> 00:02:37,720 Speaker 3: positive to see the administration not talk so much about 51 00:02:38,200 --> 00:02:41,240 Speaker 3: the trade deficit and some of these metrics that don't 52 00:02:41,280 --> 00:02:43,760 Speaker 3: necessarily matter, at least not in the way they're talking 53 00:02:43,840 --> 00:02:47,840 Speaker 3: about them, And very very positive to see them moving 54 00:02:47,880 --> 00:02:50,359 Speaker 3: towards these different agreements that are actually going to give 55 00:02:50,440 --> 00:02:53,880 Speaker 3: us more free trade, not less. It'll give us more 56 00:02:54,200 --> 00:02:57,799 Speaker 3: interaction with different economies around the world, because again it's 57 00:02:57,880 --> 00:03:01,880 Speaker 3: giving us better access to those foreign consumer markets. It 58 00:03:01,919 --> 00:03:06,480 Speaker 3: really is amazing how President Trump is essentially overturning, especially 59 00:03:06,680 --> 00:03:11,040 Speaker 3: in the case of the EU, He's overturning an international 60 00:03:11,040 --> 00:03:15,200 Speaker 3: trading system that's literally eighty years old. After World War Two, 61 00:03:15,600 --> 00:03:17,920 Speaker 3: we allowed Europe to put all these trade barriers in 62 00:03:17,960 --> 00:03:20,360 Speaker 3: place so that their industries would not have to compete 63 00:03:20,400 --> 00:03:23,400 Speaker 3: with ours because they were trying to rebuild their industries 64 00:03:23,440 --> 00:03:26,120 Speaker 3: from the devastation of World War Two. There is no 65 00:03:26,400 --> 00:03:31,160 Speaker 3: reason that eighty years later, that same international trading order 66 00:03:31,400 --> 00:03:33,679 Speaker 3: should still be in place. And yet somehow Trump is 67 00:03:33,720 --> 00:03:35,960 Speaker 3: the first president to question it and to say we 68 00:03:36,040 --> 00:03:38,840 Speaker 3: need to improve this and get a better deal for 69 00:03:38,880 --> 00:03:42,480 Speaker 3: the American people, specifically the American worker. So that's all 70 00:03:42,480 --> 00:03:44,240 Speaker 3: a very very positive development. 71 00:03:44,920 --> 00:03:47,839 Speaker 1: Yeah, why do you think he's the first to say, hey, 72 00:03:47,880 --> 00:03:50,800 Speaker 1: wait a minute, like this doesn't make sense for America, 73 00:03:50,880 --> 00:03:51,840 Speaker 1: we need to change it. 74 00:03:52,120 --> 00:03:54,800 Speaker 2: Like why hasn't anyone tried it before him? 75 00:03:55,240 --> 00:03:57,800 Speaker 3: That's a really great question, Lisa. And if you'll allow 76 00:03:57,840 --> 00:03:59,440 Speaker 3: me to speculate here a little bit, I. 77 00:03:59,440 --> 00:04:02,920 Speaker 2: Think, because I do it all the time, Well. 78 00:04:03,120 --> 00:04:06,720 Speaker 3: I think it's because Trump is really the first president 79 00:04:06,840 --> 00:04:10,760 Speaker 3: in I mean at least over forty years, really to 80 00:04:11,120 --> 00:04:14,840 Speaker 3: not be beholden to a lot of special interests, particularly 81 00:04:14,920 --> 00:04:19,760 Speaker 3: international special interests. Ironically, it took the New York City 82 00:04:20,200 --> 00:04:24,440 Speaker 3: billionaire to be the most connected with the common man, 83 00:04:24,600 --> 00:04:27,799 Speaker 3: with the average joe, with the blue collar worker across 84 00:04:27,839 --> 00:04:30,599 Speaker 3: the heartland of this nation. And again, I think that's 85 00:04:30,640 --> 00:04:33,520 Speaker 3: because he's not beholden to a lot of special interests, 86 00:04:33,720 --> 00:04:36,719 Speaker 3: which include a lot of foreign special interests. If you 87 00:04:36,760 --> 00:04:40,000 Speaker 3: look at previous presidents, it doesn't matter if it was Biden, 88 00:04:40,640 --> 00:04:43,640 Speaker 3: if it was either of the Bushes, if it was Obama. 89 00:04:44,160 --> 00:04:46,479 Speaker 3: So many of those of those guys, really all of 90 00:04:46,520 --> 00:04:50,920 Speaker 3: those guys were beholden to donors, including ones who had 91 00:04:51,080 --> 00:04:54,920 Speaker 3: key international stakes, and so there was a vested interest 92 00:04:55,040 --> 00:04:59,640 Speaker 3: in maintaining, in my opinion, in maintaining the existing post 93 00:04:59,640 --> 00:05:02,440 Speaker 3: World War or to international trading system. And I think 94 00:05:02,480 --> 00:05:05,640 Speaker 3: that's why you never saw any real progress made to 95 00:05:05,680 --> 00:05:09,400 Speaker 3: dismantle it. Even the landmark trade agreements that we had, 96 00:05:09,520 --> 00:05:13,600 Speaker 3: things like NAFTA, never did anything to give us that 97 00:05:13,680 --> 00:05:17,839 Speaker 3: kind of greater access to foreign consumer markets that foreign 98 00:05:17,920 --> 00:05:21,720 Speaker 3: exporters have had. In terms of our consumer markets, there 99 00:05:21,800 --> 00:05:24,760 Speaker 3: was never a two way street because there were too 100 00:05:24,800 --> 00:05:28,080 Speaker 3: many special interests that didn't want it, you know. 101 00:05:28,279 --> 00:05:30,880 Speaker 1: And we've been able to raise a bunch of money 102 00:05:32,000 --> 00:05:35,640 Speaker 1: from the tariffs so far. But then you're also seeing 103 00:05:35,680 --> 00:05:39,960 Speaker 1: things like you know, Procter and Gamble recently said that 104 00:05:40,000 --> 00:05:43,159 Speaker 1: they've had like the weakest sales growth since twenty eighteen, 105 00:05:43,240 --> 00:05:46,080 Speaker 1: that they planned some layoffs and too, they're also planning 106 00:05:46,120 --> 00:05:49,279 Speaker 1: on raising prices on twenty five percent of its North 107 00:05:49,320 --> 00:05:55,560 Speaker 1: American products. They're saying because of tariffs and product innovation. 108 00:05:55,640 --> 00:05:58,760 Speaker 1: Is what they're saying, is that like a Procter and 109 00:05:58,839 --> 00:06:02,360 Speaker 1: Gamble problem or or is this result of the tariffs 110 00:06:02,400 --> 00:06:04,680 Speaker 1: and like where it kind of where is this all heading. 111 00:06:05,839 --> 00:06:07,919 Speaker 3: Well, it's a bit of a mixed bag, honestly. So 112 00:06:08,160 --> 00:06:11,880 Speaker 3: you're going to have some instances where tariffs are passed 113 00:06:11,920 --> 00:06:15,560 Speaker 3: on to consumers, but not in all instances. You know, 114 00:06:15,839 --> 00:06:18,279 Speaker 3: this is kind of like, well, let me put it 115 00:06:18,279 --> 00:06:21,960 Speaker 3: this way, Lisa, if you have as a consumer alternatives, 116 00:06:21,960 --> 00:06:24,280 Speaker 3: when you go to the store and you have five 117 00:06:24,360 --> 00:06:27,400 Speaker 3: or six different products, all more or less the same thing, 118 00:06:27,920 --> 00:06:30,440 Speaker 3: and you know one brand might be slightly different from another. 119 00:06:30,520 --> 00:06:32,640 Speaker 3: One brand might be made in America, another might be 120 00:06:32,640 --> 00:06:34,920 Speaker 3: made in Europe, once made in Canada, whatever the case 121 00:06:34,960 --> 00:06:37,960 Speaker 3: may be, tariffs are not going to affect all of 122 00:06:38,000 --> 00:06:41,839 Speaker 3: those products the same. There's, markets are dynamic, and so 123 00:06:41,920 --> 00:06:45,960 Speaker 3: we have to anticipate dynamic effects here, and even the 124 00:06:46,080 --> 00:06:49,520 Speaker 3: foreign made products companies who source their products from a 125 00:06:49,560 --> 00:06:52,520 Speaker 3: location again, you know in Canada and Mexico and China 126 00:06:52,520 --> 00:06:56,560 Speaker 3: and Europe, they're going to start changing, whether they increase 127 00:06:56,600 --> 00:06:59,920 Speaker 3: their prices, whether they source their products from a different low. 128 00:07:01,480 --> 00:07:03,880 Speaker 3: There are a lot of different again, dynamic effects that 129 00:07:03,960 --> 00:07:07,120 Speaker 3: we have to take into account here, and there will 130 00:07:07,120 --> 00:07:10,160 Speaker 3: be differences between the short run effects and the long 131 00:07:10,240 --> 00:07:13,360 Speaker 3: run effects. It would not surprise me if you get 132 00:07:13,640 --> 00:07:16,640 Speaker 3: increases and prices in the short run on a lot 133 00:07:16,680 --> 00:07:19,480 Speaker 3: of these products, but then you actually get not only 134 00:07:19,560 --> 00:07:22,600 Speaker 3: a decrease back to the baseline in the long run, 135 00:07:22,640 --> 00:07:26,720 Speaker 3: but a further decrease even after that, because as you 136 00:07:26,800 --> 00:07:30,240 Speaker 3: start shifting some of this production to the United States, 137 00:07:30,560 --> 00:07:34,520 Speaker 3: and you couple that with tax and regulatory reform, you 138 00:07:34,560 --> 00:07:38,800 Speaker 3: actually get a net decrease in your production costs because 139 00:07:39,080 --> 00:07:41,880 Speaker 3: you not only avoid the tariffs by moving production here 140 00:07:41,920 --> 00:07:44,520 Speaker 3: to the United States, but now producing in the United 141 00:07:44,520 --> 00:07:48,160 Speaker 3: States is cheaper than it was previously. So this is, 142 00:07:48,640 --> 00:07:50,320 Speaker 3: you know, this is kind of the whole carrot and 143 00:07:50,400 --> 00:07:53,840 Speaker 3: stick approach that the administration is doing. The stick is tariffs. 144 00:07:53,880 --> 00:07:56,120 Speaker 3: If you don't produce stuff here, you'll pay a tax 145 00:07:56,200 --> 00:07:59,080 Speaker 3: and import duty. But also there's a carrot. If you 146 00:07:59,200 --> 00:08:02,560 Speaker 3: produce here, you're going to get tax and regulatory benefits 147 00:08:02,720 --> 00:08:05,720 Speaker 3: that you never saw before. And so again it's going 148 00:08:05,800 --> 00:08:07,880 Speaker 3: to be a very mixed bag. You will actually see 149 00:08:07,920 --> 00:08:10,640 Speaker 3: some consumer products in the long run go down in price. 150 00:08:10,720 --> 00:08:13,560 Speaker 3: You will see some go up in price, But the 151 00:08:13,600 --> 00:08:17,679 Speaker 3: net effects, the net effect right now, it's mixed. There's 152 00:08:17,720 --> 00:08:20,160 Speaker 3: no way to tell yet which magnitude is going to 153 00:08:20,160 --> 00:08:22,960 Speaker 3: outweigh each other. Are the price increases going to outweigh 154 00:08:23,200 --> 00:08:25,600 Speaker 3: the price decreases or vice versa. 155 00:08:26,160 --> 00:08:28,320 Speaker 1: Got to take a quick commercial break more with EJ 156 00:08:28,440 --> 00:08:33,840 Speaker 1: and Tony on the economy. On the other side, you know, 157 00:08:33,920 --> 00:08:39,800 Speaker 1: President Trump recently visited the Federal Reserve headquarters. I called 158 00:08:39,840 --> 00:08:43,520 Speaker 1: it sort of like a public flogging. You know, it 159 00:08:43,600 --> 00:08:45,439 Speaker 1: kind of seems like it was an embarrassment ritual to 160 00:08:46,240 --> 00:08:49,160 Speaker 1: call J. Powell out for not lowering interest rates and 161 00:08:49,200 --> 00:08:53,000 Speaker 1: then also for going so grossly over budget on the 162 00:08:53,040 --> 00:08:58,880 Speaker 1: renovations at the headquarters. We have recently found out that 163 00:08:58,960 --> 00:09:02,640 Speaker 1: the Fed will not lower interest rates, and there was 164 00:09:02,679 --> 00:09:05,600 Speaker 1: some descent within the Federal Reserve. 165 00:09:05,840 --> 00:09:07,120 Speaker 2: Like I think you had. 166 00:09:07,960 --> 00:09:12,640 Speaker 1: Two Fed governor's descent, which is the first time that's 167 00:09:12,679 --> 00:09:15,440 Speaker 1: happened since like nineteen ninety three, so kind of a 168 00:09:15,440 --> 00:09:15,920 Speaker 1: big deal. 169 00:09:17,720 --> 00:09:20,600 Speaker 2: Why do you think that decision was reached? 170 00:09:20,679 --> 00:09:22,400 Speaker 1: What does it tell you that there was sort of 171 00:09:22,440 --> 00:09:25,800 Speaker 1: discord and disagreement within the Federal Reserve? 172 00:09:26,960 --> 00:09:28,640 Speaker 2: Your what's your takeaway from all that? 173 00:09:29,600 --> 00:09:32,400 Speaker 3: Well, Lisa, you're absolutely right. It was the first time 174 00:09:32,480 --> 00:09:35,840 Speaker 3: you had more than one member of the Board of 175 00:09:35,880 --> 00:09:40,400 Speaker 3: Governors dissenting in over thirty years. That's significant now, it's 176 00:09:40,400 --> 00:09:43,600 Speaker 3: not unprecedented. In fact, if you go back further into 177 00:09:43,679 --> 00:09:48,720 Speaker 3: the fed's history, multiple descents were actually increasingly common. It's 178 00:09:48,760 --> 00:09:52,199 Speaker 3: only been in recent decades where we've had these FED 179 00:09:52,240 --> 00:09:57,040 Speaker 3: regimes of kind of you know, one person rule, if 180 00:09:57,080 --> 00:09:59,800 Speaker 3: you will, where the FED chairman comes down with his 181 00:10:00,000 --> 00:10:03,600 Speaker 3: dictator or her dictate from on high, and then everyone 182 00:10:03,679 --> 00:10:05,960 Speaker 3: just kind of has to follow along, regardless of what 183 00:10:06,000 --> 00:10:08,840 Speaker 3: the data says, regardless of what their personal feelings on 184 00:10:08,880 --> 00:10:11,880 Speaker 3: the matter are. So I actually view the increasing descent 185 00:10:12,360 --> 00:10:14,760 Speaker 3: as a good thing. Hopefully it's a sign of more 186 00:10:15,280 --> 00:10:18,360 Speaker 3: individual thinking at the FED instead of just this group 187 00:10:18,400 --> 00:10:22,560 Speaker 3: think which has led to absolute disaster. But kind of 188 00:10:22,559 --> 00:10:26,680 Speaker 3: taking a broader view here, thirty thousand foot view, so 189 00:10:26,760 --> 00:10:30,240 Speaker 3: to speak. I think Trump's visit to the FED was 190 00:10:30,280 --> 00:10:33,560 Speaker 3: a good move on multiple levels. It lets them know, look, 191 00:10:33,760 --> 00:10:37,640 Speaker 3: we're watching you. You don't get to run amok here. 192 00:10:37,679 --> 00:10:40,720 Speaker 3: In terms of these renovation costs, you could have knocked 193 00:10:40,720 --> 00:10:43,560 Speaker 3: down all of the building and rebuilt them from scratch 194 00:10:43,880 --> 00:10:46,559 Speaker 3: for a lower price than the cost of these renovations. 195 00:10:46,559 --> 00:10:49,680 Speaker 3: So that's certainly pretty asinine on the Fed's part that 196 00:10:49,720 --> 00:10:54,560 Speaker 3: they're doing this. The opulence of the renovations is also 197 00:10:55,040 --> 00:10:58,160 Speaker 3: I mean, it's not only ostentatious and in bad taste, 198 00:10:58,280 --> 00:11:00,880 Speaker 3: but it's especially in bad taste from the standpoint of 199 00:11:00,880 --> 00:11:04,160 Speaker 3: how much the American people are suffering right now because 200 00:11:04,200 --> 00:11:08,400 Speaker 3: of the Fed's monetary malfeasance. So again the President going 201 00:11:08,400 --> 00:11:11,320 Speaker 3: in there and letting everybody know, look, we're watching you guys. 202 00:11:11,440 --> 00:11:14,000 Speaker 3: This is not going unnoticed. I really like that move. 203 00:11:15,080 --> 00:11:17,800 Speaker 3: I also really like the fact that the President is 204 00:11:17,840 --> 00:11:22,679 Speaker 3: continuing to exert pressure on the FED, essentially telling them, look, 205 00:11:22,800 --> 00:11:26,800 Speaker 3: you guys cut interest rates last year during an election season. 206 00:11:26,960 --> 00:11:30,360 Speaker 3: What I think was blatant election interference. You did that 207 00:11:30,400 --> 00:11:33,320 Speaker 3: when inflation was worse than it is today. All of 208 00:11:33,360 --> 00:11:35,960 Speaker 3: the indicators are actually more in favor of a rate 209 00:11:36,000 --> 00:11:38,520 Speaker 3: cut now than they were in the autumn. But why 210 00:11:38,559 --> 00:11:41,360 Speaker 3: did we get one hundred basis points of cuts back then? 211 00:11:41,400 --> 00:11:44,760 Speaker 3: In other words, a full percentage point, specifically because it 212 00:11:44,880 --> 00:11:48,560 Speaker 3: was an election And if you look at political donations 213 00:11:48,920 --> 00:11:51,960 Speaker 3: from people who work at the FED, the race show 214 00:11:52,040 --> 00:11:55,640 Speaker 3: is literally ninety ten. It's ninety percent go exclusively to 215 00:11:55,679 --> 00:11:59,319 Speaker 3: Democrats and only ten percent to Republicans. There is clear 216 00:11:59,360 --> 00:12:02,760 Speaker 3: political You can also see that in the so called 217 00:12:02,840 --> 00:12:06,720 Speaker 3: research I'm using air quotes here for the so called 218 00:12:06,800 --> 00:12:10,320 Speaker 3: research that the economists that the FED produced. It is 219 00:12:10,400 --> 00:12:15,000 Speaker 3: overwhelmingly in favor of Democrat talking points. It's not based 220 00:12:15,040 --> 00:12:18,959 Speaker 3: on sound economics, it's not based on empirical analysis necessarily. 221 00:12:19,640 --> 00:12:22,640 Speaker 3: So again, I like the fact that the President is 222 00:12:22,679 --> 00:12:26,920 Speaker 3: exerting some authority here. The FED is clearly acting, you know, 223 00:12:26,960 --> 00:12:31,800 Speaker 3: from a political standpoint. They're clearly political animals. They are 224 00:12:31,840 --> 00:12:36,199 Speaker 3: neither data dependent nor politically independent. That is very, very 225 00:12:36,240 --> 00:12:37,440 Speaker 3: clear if you look at the record. 226 00:12:38,360 --> 00:12:41,560 Speaker 1: So it's fair to say that j. Powell is a 227 00:12:41,600 --> 00:12:44,080 Speaker 1: big glib with Trump arrangement syndrome. 228 00:12:45,360 --> 00:12:49,440 Speaker 3: Well, there's certainly a whole lot of animosity between the 229 00:12:49,520 --> 00:12:52,079 Speaker 3: two of them, and I'm not saying the President has 230 00:12:52,120 --> 00:12:55,400 Speaker 3: done anything to help that. That's for sure. He certainly 231 00:12:55,440 --> 00:12:58,240 Speaker 3: has not been playing nice in the sandbox. But you know, 232 00:12:58,240 --> 00:13:03,200 Speaker 3: maybe he shouldn't. I mean, pal has completely botched the job. 233 00:13:03,480 --> 00:13:06,400 Speaker 3: And it's not as if that that's a recent phenomenon, Lisa, 234 00:13:06,440 --> 00:13:08,880 Speaker 3: You know, we forget that going back to the first 235 00:13:08,920 --> 00:13:13,440 Speaker 3: Trump administration, Palell was raising rates the entire time before 236 00:13:13,520 --> 00:13:16,120 Speaker 3: COVID when there was really no reason to do so. 237 00:13:16,160 --> 00:13:20,240 Speaker 3: He was operating on this ludicrous idea that somehow economic 238 00:13:20,280 --> 00:13:24,679 Speaker 3: growth causes inflation, and so the faster Trump got economic 239 00:13:24,760 --> 00:13:27,880 Speaker 3: growth to move, the more Pale said, well, we have 240 00:13:27,920 --> 00:13:29,800 Speaker 3: to keep raising rates. That's part of the reason why 241 00:13:29,880 --> 00:13:33,080 Speaker 3: the Trump economic miracle from the first term was just 242 00:13:33,200 --> 00:13:37,040 Speaker 3: that a miracle. He was working against the Fed the 243 00:13:37,200 --> 00:13:40,760 Speaker 3: entire time, and then Palll gave Biden all the low 244 00:13:40,840 --> 00:13:44,360 Speaker 3: rates he wanted until inflation shot up to forty year highs, 245 00:13:44,640 --> 00:13:48,000 Speaker 3: and then Palll gave us the fastest interest rates interest 246 00:13:48,080 --> 00:13:51,200 Speaker 3: rate hikes also in over forty years. It's been a 247 00:13:51,240 --> 00:13:55,439 Speaker 3: complete disaster. Palell has played a key role in destroying 248 00:13:55,520 --> 00:13:58,880 Speaker 3: the middle classes, upward mobility over the last several years. 249 00:13:59,520 --> 00:14:03,640 Speaker 3: I mean, really good reason for firing firing him quite frankly, well, 250 00:14:03,640 --> 00:14:04,160 Speaker 3: see that's what. 251 00:14:04,160 --> 00:14:04,760 Speaker 2: I was thinking. 252 00:14:05,040 --> 00:14:07,560 Speaker 1: I know, after the visit he said he wasn't going 253 00:14:07,600 --> 00:14:10,000 Speaker 1: to fire them. But the way I read that, you know, 254 00:14:10,200 --> 00:14:12,720 Speaker 1: off of no, you know, not not based on any 255 00:14:12,760 --> 00:14:14,880 Speaker 1: internal knowledge or anything. But like the way I kind 256 00:14:14,880 --> 00:14:19,960 Speaker 1: of read the visit was this was Trump potentially setting 257 00:14:20,040 --> 00:14:23,320 Speaker 1: him up for a four cause firing, like highlighting to 258 00:14:23,360 --> 00:14:26,560 Speaker 1: the public, here's this guy who has grossly misbused, abused 259 00:14:26,600 --> 00:14:30,040 Speaker 1: your money, like the way over budget right, like sort 260 00:14:30,040 --> 00:14:32,360 Speaker 1: of like I felt like that was kind of like 261 00:14:32,400 --> 00:14:35,920 Speaker 1: the leading the horse to slaughter a little bit if 262 00:14:35,960 --> 00:14:40,520 Speaker 1: he needed to. Is that like fair or you know, 263 00:14:40,560 --> 00:14:41,960 Speaker 1: I don't know, do you do you read that the 264 00:14:42,000 --> 00:14:44,560 Speaker 1: same because I know that to fire him, you know, 265 00:14:44,600 --> 00:14:47,480 Speaker 1: there has to be a quote unquote four cause under 266 00:14:47,480 --> 00:14:49,720 Speaker 1: the Federal Reserve Act, and it typically is some sort 267 00:14:49,720 --> 00:14:55,080 Speaker 1: of misconduct, malfeasance, like negligence. There's got to be, you know, 268 00:14:55,240 --> 00:14:58,000 Speaker 1: some big legitimate reason you're firing the FED chair. 269 00:14:58,720 --> 00:15:00,200 Speaker 2: But I kind of felt like he was seeing them 270 00:15:00,240 --> 00:15:00,560 Speaker 2: up for that. 271 00:15:01,040 --> 00:15:04,160 Speaker 3: Yeah, you're exactly right, Lis, And I think that analysis 272 00:15:04,200 --> 00:15:08,560 Speaker 3: is spot on that this could definitely be Trump doing 273 00:15:08,600 --> 00:15:10,880 Speaker 3: his art of the deal, so to speak. Well, maybe 274 00:15:10,880 --> 00:15:14,480 Speaker 3: it's more sun Zoo right where you know, you're setting 275 00:15:14,480 --> 00:15:18,200 Speaker 3: your enemy up for failure essentially, and you're exposing him 276 00:15:18,920 --> 00:15:21,200 Speaker 3: to the eyes of the world. I think that's a 277 00:15:21,280 --> 00:15:24,040 Speaker 3: very very good point, and I do think there is 278 00:15:24,200 --> 00:15:29,000 Speaker 3: absolutely a cause for firing power on multiple levels, not 279 00:15:29,120 --> 00:15:32,480 Speaker 3: just these these crazy cost overruns and whether or not 280 00:15:32,520 --> 00:15:36,680 Speaker 3: there might be some malfeasance there and and some misuse 281 00:15:36,720 --> 00:15:40,720 Speaker 3: of taxpayer dollars. Again, why are we spending all of 282 00:15:40,760 --> 00:15:44,480 Speaker 3: this money on gold inlays and imported marble for the 283 00:15:44,480 --> 00:15:48,520 Speaker 3: Federal Reserve building. Was that a misuse of taxpayer dollars? 284 00:15:48,560 --> 00:15:52,360 Speaker 3: And people have this crazy idea that somehow the Fed's 285 00:15:52,440 --> 00:15:55,880 Speaker 3: expenses do not come out of the taxpayer's pocket. They 286 00:15:56,000 --> 00:15:59,520 Speaker 3: absolutely do, just not directly. Right, if the Treasury has 287 00:15:59,560 --> 00:16:01,600 Speaker 3: an expense, it's a little easier to see that that 288 00:16:01,720 --> 00:16:05,000 Speaker 3: is directly coming out of the taxpayer's pocket. But people 289 00:16:05,040 --> 00:16:08,080 Speaker 3: forget that the FED is mandated by its charter that 290 00:16:08,120 --> 00:16:10,760 Speaker 3: you just mentioned, the Federal Reserve Act. The FED is 291 00:16:10,880 --> 00:16:14,640 Speaker 3: mandated to turn over to the Treasury all of its 292 00:16:14,720 --> 00:16:18,960 Speaker 3: profits we call those remittances. And because of complete mismanagement, 293 00:16:19,000 --> 00:16:22,120 Speaker 3: the FED hasn't had any profits since September of twenty 294 00:16:22,160 --> 00:16:24,560 Speaker 3: twenty two. Instead, they're over two hundred and thirty five 295 00:16:24,760 --> 00:16:29,040 Speaker 3: billion dollars in the hole because of they're cumulative losses 296 00:16:29,360 --> 00:16:32,600 Speaker 3: again since the fall of twenty two. But all of 297 00:16:32,640 --> 00:16:34,800 Speaker 3: the profits that the FED has not earned that have 298 00:16:34,880 --> 00:16:37,960 Speaker 3: been replaced with losses now are not being turned over 299 00:16:38,000 --> 00:16:40,280 Speaker 3: to the Treasury. And who has to make up for 300 00:16:40,320 --> 00:16:43,640 Speaker 3: those losses, Well, the taxpayer does any of the money 301 00:16:43,640 --> 00:16:46,920 Speaker 3: that is not going to the Treasury ends up adding 302 00:16:46,960 --> 00:16:51,480 Speaker 3: to the deficit because it's a receipt essentially for the Treasury. 303 00:16:51,840 --> 00:16:53,960 Speaker 3: It's on the revenue side of the balance sheet, and 304 00:16:53,960 --> 00:16:56,280 Speaker 3: it's been removed, So again, the taxpayer has to make 305 00:16:56,360 --> 00:16:59,680 Speaker 3: up for that. Every additional expense by the Fed, every 306 00:16:59,800 --> 00:17:02,680 Speaker 3: law of revenue by the Fed is an indirect cost 307 00:17:02,680 --> 00:17:06,880 Speaker 3: to taxpayers, but a cost nonetheless, and so every dime 308 00:17:06,920 --> 00:17:10,680 Speaker 3: that the Treasury has spent on these renovations has indirectly 309 00:17:10,680 --> 00:17:14,240 Speaker 3: been paid for by the taxpayer. But on top of that, 310 00:17:14,680 --> 00:17:17,760 Speaker 3: the FED has again they've completely botched the job on 311 00:17:17,920 --> 00:17:22,120 Speaker 3: inflation on interest rates that has helped create the cost 312 00:17:22,200 --> 00:17:24,920 Speaker 3: of living crisis we're in today. And on top of that, 313 00:17:25,600 --> 00:17:29,959 Speaker 3: Jerome Powell has actually violated the Fed's charter because they 314 00:17:30,000 --> 00:17:34,800 Speaker 3: have been essentially illegally funding the Consumer Finance Protection Bureau, 315 00:17:34,840 --> 00:17:37,480 Speaker 3: which is a very odd entity, not so much in 316 00:17:37,520 --> 00:17:40,680 Speaker 3: the fact that it's Elizabeth Warren's like personal regulatory attack 317 00:17:40,800 --> 00:17:44,399 Speaker 3: dog that she sticks on whatever conservative group she wants, 318 00:17:44,760 --> 00:17:48,200 Speaker 3: but more so because the CFPB does not get its 319 00:17:48,200 --> 00:17:53,080 Speaker 3: funding through the normal congressional appropriations process. Instead, it gets 320 00:17:53,080 --> 00:17:58,679 Speaker 3: its operating expenses paid for out of the profits at 321 00:17:58,720 --> 00:18:00,880 Speaker 3: the FED. So the FED take a portion of its 322 00:18:00,920 --> 00:18:04,320 Speaker 3: profits and then sends that over to the CFPB. Well, 323 00:18:04,320 --> 00:18:06,240 Speaker 3: the problem is, as we said, the FED hasn't had 324 00:18:06,280 --> 00:18:10,600 Speaker 3: any profits since September of twenty twenty two. So instead, 325 00:18:10,960 --> 00:18:14,439 Speaker 3: what the FED has been doing was literally creating the 326 00:18:14,560 --> 00:18:18,040 Speaker 3: money to send to the CFPB, which it is not 327 00:18:18,440 --> 00:18:21,600 Speaker 3: allowed to do. Nowhere in its charter does it have 328 00:18:21,680 --> 00:18:23,679 Speaker 3: the authority to do that. It may have the power 329 00:18:23,680 --> 00:18:26,000 Speaker 3: to do that, clearly it does, but it hasn't been 330 00:18:26,040 --> 00:18:29,000 Speaker 3: granted the authority by Congress to do that. And so 331 00:18:29,160 --> 00:18:34,040 Speaker 3: pal has actually been illegally funding the CFPB, which again 332 00:18:34,359 --> 00:18:37,400 Speaker 3: is caused for firing him. So there's plenty of reasons 333 00:18:37,480 --> 00:18:40,080 Speaker 3: if we really want to go down that road. Granted, 334 00:18:40,200 --> 00:18:42,560 Speaker 3: it'll cause a bunch of court battles, it'll be a 335 00:18:42,640 --> 00:18:46,320 Speaker 3: drawn out process, you know, it'll cause market turmoil. But 336 00:18:46,440 --> 00:18:49,000 Speaker 3: I think there is cause for firing him if you 337 00:18:49,080 --> 00:18:51,000 Speaker 3: want to risk that market turmoil. 338 00:18:52,400 --> 00:18:54,879 Speaker 2: And I mean he's out pretty soon, right. 339 00:18:54,680 --> 00:18:56,960 Speaker 3: So, And that's exactly LISTA. 340 00:18:57,040 --> 00:18:59,639 Speaker 2: That's a great point, and that that's oil worth it. 341 00:18:59,760 --> 00:19:02,439 Speaker 3: Just wait it out, Bingo, you hit the nail on 342 00:19:02,480 --> 00:19:05,680 Speaker 3: the head. It's a it's a typical cost benefit analysis, 343 00:19:05,960 --> 00:19:09,920 Speaker 3: he's out by May, and not only that, but we'll 344 00:19:10,000 --> 00:19:13,399 Speaker 3: get a FED chair named and probably confirmed by the 345 00:19:13,440 --> 00:19:17,760 Speaker 3: Senate before May. And so once markets see who is 346 00:19:17,840 --> 00:19:21,280 Speaker 3: coming in, and once markets see what monetary policy is 347 00:19:21,320 --> 00:19:23,480 Speaker 3: going to look like, as soon as Powell is removed, 348 00:19:23,800 --> 00:19:27,040 Speaker 3: markets will anticipate that, because that's the nature of markets. 349 00:19:27,080 --> 00:19:30,800 Speaker 3: They are anticipating, anticipatory. If you look at stock prices, 350 00:19:30,800 --> 00:19:36,040 Speaker 3: what justifies stock prices future company earnings? Well, you don't 351 00:19:36,080 --> 00:19:40,080 Speaker 3: have future company earnings today by definition, right, They're for 352 00:19:40,160 --> 00:19:44,880 Speaker 3: the future. So markets are always anticipatory in nature, and 353 00:19:45,040 --> 00:19:48,080 Speaker 3: once they see who the next FED chair is likely 354 00:19:48,119 --> 00:19:51,600 Speaker 3: to be and then will be again after the confirmation process, 355 00:19:51,960 --> 00:19:55,840 Speaker 3: markets will already start adapting to the future monetary policy 356 00:19:56,080 --> 00:19:58,560 Speaker 3: before it's even put into place. So I don't even 357 00:19:58,600 --> 00:20:02,200 Speaker 3: think we'll necessarily have to wait until May before we 358 00:20:02,240 --> 00:20:05,960 Speaker 3: see the economy really adapting to Powell's replacement. 359 00:20:06,480 --> 00:20:09,560 Speaker 1: So what's he denying to the people you had mentioned previously, 360 00:20:09,600 --> 00:20:11,760 Speaker 1: the harm it's done to the middle class. 361 00:20:13,080 --> 00:20:17,080 Speaker 3: Well, the big thing right now, if we take kind 362 00:20:17,080 --> 00:20:20,000 Speaker 3: of as a given all of the past mistakes, so 363 00:20:20,040 --> 00:20:21,840 Speaker 3: we can't go back and fix them, right, This is 364 00:20:21,880 --> 00:20:25,639 Speaker 3: not about the damage Pal has already done. But what 365 00:20:25,880 --> 00:20:28,320 Speaker 3: is as you said, Pale denying to the American people 366 00:20:28,359 --> 00:20:31,520 Speaker 3: today by not acting by kind of maintaining the status quo. 367 00:20:32,400 --> 00:20:35,080 Speaker 3: The status quo here, Lisa, is not just interest rates, 368 00:20:35,240 --> 00:20:38,199 Speaker 3: but it includes a lot of other failed federal reserve 369 00:20:38,280 --> 00:20:42,160 Speaker 3: policies too, not the least of which is Pal has 370 00:20:42,200 --> 00:20:46,679 Speaker 3: been paying banks and other financial institutions to not lend money. 371 00:20:47,000 --> 00:20:49,399 Speaker 3: He has been paying them instead, you could call it 372 00:20:49,480 --> 00:20:53,160 Speaker 3: to lend money to the FED. If these institutions keep 373 00:20:53,200 --> 00:20:56,200 Speaker 3: money parked at the FED, whether it's by paying interest 374 00:20:56,320 --> 00:20:59,520 Speaker 3: on reserve balances or interest paid out through something called 375 00:20:59,560 --> 00:21:03,840 Speaker 3: the reverse Repurchase Agreement operations at the New York FED, 376 00:21:04,320 --> 00:21:07,760 Speaker 3: these are all different mechanisms by which the FED is 377 00:21:07,840 --> 00:21:11,360 Speaker 3: getting money to stay parked in its own vaults instead 378 00:21:11,400 --> 00:21:14,560 Speaker 3: of being lent out in the private sector. And not 379 00:21:14,640 --> 00:21:16,880 Speaker 3: just to the private sector, but also to the Treasury. 380 00:21:17,480 --> 00:21:21,240 Speaker 3: Powell has now set up in this bizarre scenario where 381 00:21:21,280 --> 00:21:24,040 Speaker 3: the private sector and the Treasury have to compete with 382 00:21:24,119 --> 00:21:28,320 Speaker 3: the FED for liquidity. So one of the things driving 383 00:21:28,400 --> 00:21:31,399 Speaker 3: Treasury yields higher today. In other words, the interest that 384 00:21:31,440 --> 00:21:34,040 Speaker 3: the Treasury has to pay on the federal debt is 385 00:21:34,119 --> 00:21:37,040 Speaker 3: the fact that they have to offer a rate that 386 00:21:37,160 --> 00:21:40,440 Speaker 3: beats the FED. And it's not just a rate that 387 00:21:40,640 --> 00:21:43,560 Speaker 3: beats the Fed in terms of just looking at the 388 00:21:43,600 --> 00:21:46,760 Speaker 3: interest rate. The FED is allowing people to keep money 389 00:21:46,840 --> 00:21:50,480 Speaker 3: parked on a daily basis, so there's no liquidity premium. 390 00:21:50,720 --> 00:21:52,720 Speaker 3: In other words, your money is tied up for twenty 391 00:21:52,720 --> 00:21:55,600 Speaker 3: four hours and then you get it back, So that's 392 00:21:55,680 --> 00:21:58,800 Speaker 3: a really, really great deal. The Treasury, on the other hand, 393 00:21:58,840 --> 00:22:02,080 Speaker 3: is asking you to keep your money tied up for 394 00:22:02,160 --> 00:22:06,600 Speaker 3: either several weeks in the case of Treasury bills, or 395 00:22:06,800 --> 00:22:09,680 Speaker 3: several years in the case of Treasury notes, or many 396 00:22:09,800 --> 00:22:12,080 Speaker 3: years in the case of Treasury bonds, which are twenty 397 00:22:12,119 --> 00:22:15,560 Speaker 3: or thirty years, So there's a huge liquidity premium attached 398 00:22:15,600 --> 00:22:17,640 Speaker 3: to it. So if the FED is willing to pay 399 00:22:17,680 --> 00:22:20,800 Speaker 3: you four point four percent interest for some of these 400 00:22:20,840 --> 00:22:24,199 Speaker 3: operations in order to keep your money tied up for 401 00:22:24,240 --> 00:22:26,960 Speaker 3: only twenty four hours, you're going to require much more 402 00:22:27,200 --> 00:22:29,560 Speaker 3: to keep your money tied up for thirty years. And 403 00:22:29,600 --> 00:22:33,200 Speaker 3: that's where you're getting these yields on Treasury bonds in 404 00:22:33,280 --> 00:22:37,480 Speaker 3: excess of five percent. What PAL really should be doing 405 00:22:37,800 --> 00:22:41,800 Speaker 3: is stopping all of that entirely. We should go back 406 00:22:41,840 --> 00:22:44,960 Speaker 3: to the previous requirement, which is banks have to keep 407 00:22:45,000 --> 00:22:49,160 Speaker 3: a certain percentage of their money in reserve at the FED, 408 00:22:49,440 --> 00:22:52,280 Speaker 3: they don't get paid interest on it. And now banks 409 00:22:52,320 --> 00:22:54,520 Speaker 3: will be out there looking for a rate of return 410 00:22:54,920 --> 00:22:57,320 Speaker 3: on their money. They will go to the private market 411 00:22:57,359 --> 00:23:00,359 Speaker 3: and loan it out, so we'll we'll get more capital 412 00:23:00,400 --> 00:23:03,119 Speaker 3: formation that way, which will help growth in the private sector. 413 00:23:03,359 --> 00:23:05,880 Speaker 3: And they will also be loaning it to the treasury, 414 00:23:05,920 --> 00:23:09,160 Speaker 3: which will help bring down treasury yields, so it's not 415 00:23:09,359 --> 00:23:13,159 Speaker 3: just a matter of lower interest rates. Would do things 416 00:23:13,240 --> 00:23:17,760 Speaker 3: like reduce people's costs to borrow money for a home 417 00:23:18,160 --> 00:23:22,240 Speaker 3: or reduce people's financing charges on their credit cards. But 418 00:23:22,400 --> 00:23:25,680 Speaker 3: on top of that, it would also help taxpayers by 419 00:23:25,760 --> 00:23:29,840 Speaker 3: reducing the cost to service the federal debt. And that's 420 00:23:29,840 --> 00:23:32,199 Speaker 3: something a lot of people aren't talking about today when 421 00:23:32,240 --> 00:23:34,840 Speaker 3: they should be, because we're paying about one point two 422 00:23:34,960 --> 00:23:38,000 Speaker 3: trillion dollars a year right now to service that debt. 423 00:23:38,080 --> 00:23:41,440 Speaker 3: That's a huge expense to the taxpayer. It accounts for 424 00:23:41,640 --> 00:23:43,120 Speaker 3: most of the deficit. 425 00:23:43,359 --> 00:23:44,439 Speaker 2: Got to take quick break. 426 00:23:44,520 --> 00:23:46,639 Speaker 1: If you like what you're hearing, please share it on 427 00:23:46,680 --> 00:23:48,520 Speaker 1: social media or maybe send it to a friend. 428 00:23:48,600 --> 00:23:53,800 Speaker 2: More EJ. On the other side, sort of looking at the. 429 00:23:53,760 --> 00:24:00,959 Speaker 1: Economy today compared to before President Trump took office, Like 430 00:24:01,119 --> 00:24:04,200 Speaker 1: where do things stand today versus. 431 00:24:03,920 --> 00:24:05,439 Speaker 2: Where they were under Joe Biden? 432 00:24:05,520 --> 00:24:07,960 Speaker 1: Like what's the state of the How would you assess 433 00:24:08,359 --> 00:24:10,800 Speaker 1: the strength of our economy today? I mean, it seems 434 00:24:10,840 --> 00:24:13,280 Speaker 1: like the rest of the world would place. 435 00:24:13,000 --> 00:24:13,879 Speaker 2: It at a. 436 00:24:15,800 --> 00:24:17,879 Speaker 1: You know, at a high degree considering the fact everyone 437 00:24:17,880 --> 00:24:20,439 Speaker 1: wants access to a markets based off of these trade deals. 438 00:24:20,480 --> 00:24:22,399 Speaker 1: But sort of like, how would you assess the strength 439 00:24:22,440 --> 00:24:23,919 Speaker 1: of the American economy today? 440 00:24:25,280 --> 00:24:28,160 Speaker 3: Well, at least I think you're really right on the direction. 441 00:24:28,359 --> 00:24:31,119 Speaker 3: You know, things are looking up. We have a lot 442 00:24:31,200 --> 00:24:34,320 Speaker 3: of a lot of positive indicators, Like you were saying, 443 00:24:34,359 --> 00:24:38,080 Speaker 3: all of these foreign interests who really really want to 444 00:24:38,080 --> 00:24:40,960 Speaker 3: make sure they maintain access to American consumer markets, and 445 00:24:41,000 --> 00:24:44,760 Speaker 3: they're willing to make concessions because of that. This is 446 00:24:44,800 --> 00:24:47,320 Speaker 3: all a result of the President realizing that he can 447 00:24:47,359 --> 00:24:51,080 Speaker 3: wield the American consumers purchasing power like a weapon on 448 00:24:51,240 --> 00:24:54,520 Speaker 3: the world stage. That's paying a lot of dividends right now. 449 00:24:55,240 --> 00:25:00,000 Speaker 3: On top of that, you're finally seeing the average Americans 450 00:25:00,320 --> 00:25:03,840 Speaker 3: wage growth outpace inflation. In other words, not only is 451 00:25:03,880 --> 00:25:07,680 Speaker 3: their weekly paycheck getting bigger, but it's buying more too, 452 00:25:08,160 --> 00:25:13,000 Speaker 3: because the paycheck is growing faster than prices are. Under Biden, 453 00:25:13,080 --> 00:25:15,439 Speaker 3: it was exactly the opposite. We've talked about this a 454 00:25:15,440 --> 00:25:18,520 Speaker 3: lot on your program. How despite the fact that the 455 00:25:18,560 --> 00:25:22,720 Speaker 3: average Americans weekly paycheck grew about twenty percent, which is 456 00:25:22,840 --> 00:25:25,920 Speaker 3: huge in only four years, the problem was that prices 457 00:25:25,960 --> 00:25:28,720 Speaker 3: grew even faster. So by the end of Biden's term, 458 00:25:29,080 --> 00:25:33,680 Speaker 3: the average Americans weekly paycheck bought four percent less than 459 00:25:33,720 --> 00:25:37,640 Speaker 3: it had four years earlier. Under Trump, again, that's reversed. 460 00:25:37,640 --> 00:25:42,040 Speaker 3: The average Americans weekly paycheck now buys about one percent 461 00:25:42,160 --> 00:25:44,720 Speaker 3: more than it did when he took office. So you 462 00:25:44,760 --> 00:25:46,960 Speaker 3: can see things are moving in the right direction, but 463 00:25:47,040 --> 00:25:49,960 Speaker 3: you can also see we haven't made up for all 464 00:25:49,960 --> 00:25:53,640 Speaker 3: the lost ground. We've still lost ground compared to when 465 00:25:53,800 --> 00:25:57,360 Speaker 3: Trump first left office, or compared to these different pre 466 00:25:57,440 --> 00:26:01,680 Speaker 3: pandemic measures. So again I would define this economy as 467 00:26:01,720 --> 00:26:04,880 Speaker 3: one that is moving in the right direction, but it's 468 00:26:04,920 --> 00:26:09,040 Speaker 3: still not all sunshine and rainbows. We have lost a 469 00:26:09,080 --> 00:26:11,480 Speaker 3: tremendous amount of ground. We are still in a cost 470 00:26:11,520 --> 00:26:15,000 Speaker 3: of living crisis. The cost of living is still way 471 00:26:15,040 --> 00:26:18,440 Speaker 3: too high. American standard of living is still way too low, 472 00:26:18,760 --> 00:26:21,600 Speaker 3: and so we need to keep making progress before we 473 00:26:21,680 --> 00:26:24,800 Speaker 3: will even get back to where we were, let alone, 474 00:26:24,880 --> 00:26:28,520 Speaker 3: before we can actually start making progress compared to twenty 475 00:26:28,600 --> 00:26:32,199 Speaker 3: nineteen levels again in terms of standard of living and 476 00:26:32,359 --> 00:26:36,399 Speaker 3: cost of living. But again I'm very optimistic not only 477 00:26:36,440 --> 00:26:41,359 Speaker 3: from the trade deals and agreements and those frameworks that 478 00:26:41,400 --> 00:26:45,000 Speaker 3: are coming in. The international front is looking better, but 479 00:26:45,080 --> 00:26:48,280 Speaker 3: the domestic front, we're seeing a lot of progress there too. 480 00:26:48,480 --> 00:26:51,320 Speaker 3: The One big beautiful Bill, you know, it might not 481 00:26:51,400 --> 00:26:53,680 Speaker 3: have been the legislation that I would have written, right. 482 00:26:53,720 --> 00:26:55,399 Speaker 3: There were some things in it I loved. There were 483 00:26:55,440 --> 00:26:58,320 Speaker 3: some things in it I certainly didn't love. But overall, 484 00:26:58,480 --> 00:27:02,280 Speaker 3: net positive regulatory efforts that we are seeing from this 485 00:27:02,400 --> 00:27:06,560 Speaker 3: administration could very well be the best we have ever 486 00:27:06,600 --> 00:27:09,879 Speaker 3: seen in American history, because what we saw during the 487 00:27:09,920 --> 00:27:14,040 Speaker 3: first Trump administration was literally the best deregulation that we 488 00:27:14,040 --> 00:27:17,560 Speaker 3: saw in American history, and this second Trump administration right 489 00:27:17,600 --> 00:27:21,040 Speaker 3: now is poised to top it because of the whole 490 00:27:21,080 --> 00:27:24,760 Speaker 3: of government approach that they have taken, where every department, 491 00:27:25,000 --> 00:27:28,440 Speaker 3: every agency is doing what they can to roll back 492 00:27:28,480 --> 00:27:32,480 Speaker 3: these burdens some regulations. So again, all of those things 493 00:27:32,680 --> 00:27:35,399 Speaker 3: pointing in the right direction. The dials are really lining 494 00:27:35,440 --> 00:27:38,959 Speaker 3: up here on the machine. But we have to be honest, 495 00:27:39,000 --> 00:27:41,640 Speaker 3: and we have to be realistic about where we are 496 00:27:41,680 --> 00:27:44,640 Speaker 3: coming from, and we have to acknowledge I think the 497 00:27:44,680 --> 00:27:49,360 Speaker 3: pain that the American middle class is still facing today. 498 00:27:49,920 --> 00:27:52,119 Speaker 3: Just because things are moving in the right direction, just 499 00:27:52,160 --> 00:27:55,520 Speaker 3: because things are getting better, doesn't mean they're okay yet. 500 00:27:57,040 --> 00:27:58,920 Speaker 1: All right, But you're saying there's a chance that we're 501 00:27:58,960 --> 00:28:00,720 Speaker 1: going to get Mark get. 502 00:28:00,600 --> 00:28:04,240 Speaker 3: Back, absolutely exactly, and that's why, and you know that's 503 00:28:04,280 --> 00:28:06,760 Speaker 3: why I'm optimistic kind of, you know, Lisa, if I 504 00:28:07,000 --> 00:28:10,600 Speaker 3: can use the analogy here, where we're at right now 505 00:28:10,960 --> 00:28:14,560 Speaker 3: is kind of like Sunday morning after you went out 506 00:28:14,560 --> 00:28:17,080 Speaker 3: and had too much to drink Saturday night. Right, So 507 00:28:17,480 --> 00:28:20,280 Speaker 3: you went out Saturday night, you had way too much 508 00:28:20,359 --> 00:28:24,600 Speaker 3: to drink, and now you feel like absolute garbage. Well 509 00:28:24,640 --> 00:28:26,639 Speaker 3: maybe that was you know, the second half of the 510 00:28:26,640 --> 00:28:28,960 Speaker 3: Biden years was when you felt like absolute garbage. Now 511 00:28:28,960 --> 00:28:32,520 Speaker 3: it's it's later in the morning on Sunday, so you're 512 00:28:32,560 --> 00:28:35,720 Speaker 3: feeling a little bit better, you're sobering up, but your 513 00:28:35,760 --> 00:28:38,840 Speaker 3: head is still pounding, right, and it's gonna be a while. 514 00:28:38,880 --> 00:28:41,560 Speaker 3: It's gonna be a few more hours before you're really 515 00:28:41,560 --> 00:28:44,320 Speaker 3: feeling better. You know that. That's kind of where we're 516 00:28:44,320 --> 00:28:47,200 Speaker 3: at economically. So we're heading in the right direction. We're 517 00:28:47,240 --> 00:28:50,000 Speaker 3: sobering up, but it still really hurts. 518 00:28:51,320 --> 00:28:53,160 Speaker 1: Although the good news is I don't do that to 519 00:28:53,200 --> 00:28:58,280 Speaker 1: myself as much anymore. So Amen, we've grown up. 520 00:28:58,320 --> 00:28:58,600 Speaker 2: BJA. 521 00:28:59,400 --> 00:29:02,000 Speaker 3: That's right. We can't even if we wanted to. I 522 00:29:02,040 --> 00:29:02,800 Speaker 3: don't think we could. 523 00:29:03,080 --> 00:29:04,680 Speaker 2: EJ and Tony, thanks for coming on. 524 00:29:05,280 --> 00:29:08,960 Speaker 1: Really always appreciate your insight and just appreciate connecting. 525 00:29:09,080 --> 00:29:10,400 Speaker 2: Thanks so much, my friend. 526 00:29:10,280 --> 00:29:12,560 Speaker 3: Lisa always my pleasure. Love the show. 527 00:29:13,120 --> 00:29:15,760 Speaker 1: It was EJ and Tony over at the Heritage Foundation. 528 00:29:15,920 --> 00:29:17,920 Speaker 1: Appreciate him for making the time to come on the show. 529 00:29:17,960 --> 00:29:21,360 Speaker 1: Appreciate you guys at home for listening every Tuesday and Thursday, 530 00:29:21,400 --> 00:29:23,040 Speaker 1: but you can listen throughout the week. I also want 531 00:29:23,080 --> 00:29:25,560 Speaker 1: to thank my producer, John Cassio for putting the show together. 532 00:29:25,640 --> 00:29:26,360 Speaker 2: Until next time.