1 00:00:04,680 --> 00:00:08,159 Speaker 1: On this episode of Newtsworld, I'm joined by members of 2 00:00:08,160 --> 00:00:12,560 Speaker 1: my Inner Circle Club for a fascinating conversation about the 3 00:00:12,640 --> 00:00:17,920 Speaker 1: economy and what we can expect with grocery prices, gas prices, 4 00:00:18,320 --> 00:00:22,760 Speaker 1: increased inflation, and rising interest rates in the coming months. 5 00:00:23,160 --> 00:00:26,599 Speaker 1: We hold these regular video conference calls so that we 6 00:00:26,680 --> 00:00:29,880 Speaker 1: can have an honest discussion about what is happening in 7 00:00:29,920 --> 00:00:34,159 Speaker 1: America today. I find it extraordinarily helpful to me personally 8 00:00:34,560 --> 00:00:37,720 Speaker 1: in thinking through the issues that are facing us. So 9 00:00:38,120 --> 00:00:42,239 Speaker 1: I hope you'll find this episode of Newtsworld informative. And 10 00:00:42,320 --> 00:00:44,160 Speaker 1: if you'd like to become a member of my Inner 11 00:00:44,159 --> 00:00:47,640 Speaker 1: Circle Club, please go to newts Inner Circle dot com 12 00:00:47,680 --> 00:00:50,280 Speaker 1: and sign up for a one or two year membership today. 13 00:00:50,960 --> 00:00:54,640 Speaker 1: And I'm really pleased to welcome a special guest, Stephen Moore. 14 00:00:55,400 --> 00:01:00,240 Speaker 1: Steve is a senior economist at Freedom Works. Previously, heerd 15 00:01:00,280 --> 00:01:03,960 Speaker 1: as an economic advisor to President Donald J. Trump and 16 00:01:04,040 --> 00:01:07,040 Speaker 1: as a member of the Wall Street Journals at aitorial board. 17 00:01:07,560 --> 00:01:10,160 Speaker 1: He's here to talk with us about the economy and 18 00:01:10,360 --> 00:01:13,360 Speaker 1: all the issues we're facing. I also want to mention 19 00:01:13,400 --> 00:01:17,039 Speaker 1: his recent book Gov Zillah, how the relentless growth of 20 00:01:17,120 --> 00:01:21,520 Speaker 1: government is devouring our economy and our freedom which is 21 00:01:21,560 --> 00:01:32,800 Speaker 1: available now. Well, first, let me thank you for being 22 00:01:32,840 --> 00:01:35,520 Speaker 1: a part of the Inner Circle, and I'm really pleased 23 00:01:35,520 --> 00:01:38,280 Speaker 1: to have Steve Moore join us today. He has a 24 00:01:38,280 --> 00:01:43,480 Speaker 1: free weekly newsletter he sends out called Unleashing Prosperity, which 25 00:01:43,520 --> 00:01:45,800 Speaker 1: you can sign up for by going to committee to 26 00:01:46,000 --> 00:01:50,920 Speaker 1: Unleashed Prosperity dot com. It is well worth reading. In fact, 27 00:01:50,960 --> 00:01:54,160 Speaker 1: I read it every day. He covers an amazing range 28 00:01:54,160 --> 00:01:56,480 Speaker 1: of issues. He was one of the first people to 29 00:01:56,520 --> 00:01:59,320 Speaker 1: point out the difference and unemployment, the difference in a 30 00:01:59,360 --> 00:02:03,160 Speaker 1: whole range of areas between the republican governed states and 31 00:02:03,240 --> 00:02:07,280 Speaker 1: the democratic governed states. And he's really done great analytical 32 00:02:07,320 --> 00:02:12,480 Speaker 1: work on the impact of limited conservative constitutional government in 33 00:02:12,600 --> 00:02:18,000 Speaker 1: improving freedom, improving the economy versus a dependence oriented big 34 00:02:18,040 --> 00:02:23,160 Speaker 1: government bureaucratic system in places like New York, New Jersey, Illinois, 35 00:02:23,440 --> 00:02:26,760 Speaker 1: and California. So Steve, I think, really is one of 36 00:02:26,800 --> 00:02:30,280 Speaker 1: the leading intellectuals, and given everything we've seen in the 37 00:02:30,360 --> 00:02:33,880 Speaker 1: last few months in the economy, I couldn't imagine anyone 38 00:02:34,000 --> 00:02:36,280 Speaker 1: who would be more helpful to me as well as 39 00:02:36,280 --> 00:02:40,280 Speaker 1: the rest of us, in advising us on what to expect. So, Steve, 40 00:02:40,639 --> 00:02:43,040 Speaker 1: I want to toss it to you. Tell us how 41 00:02:43,080 --> 00:02:46,720 Speaker 1: you're thinking about the economy right now. Well, I'm pretty 42 00:02:46,760 --> 00:02:49,000 Speaker 1: glum today. I mean, my wife just called me about 43 00:02:49,040 --> 00:02:51,040 Speaker 1: what happened to our for a one K plan today 44 00:02:51,080 --> 00:02:54,760 Speaker 1: and it was blood bath. Look, I'll just summarize very simply. 45 00:02:55,080 --> 00:02:57,639 Speaker 1: I knew that Joe Biden would be a bad president 46 00:02:57,680 --> 00:03:00,480 Speaker 1: when it came to economic policy. That you that a 47 00:03:00,480 --> 00:03:03,480 Speaker 1: lot of the gains that we had made under Donald Trump, 48 00:03:03,520 --> 00:03:06,160 Speaker 1: and many of the gains that date back to when 49 00:03:06,200 --> 00:03:08,120 Speaker 1: you became Speaker of the House where we really had 50 00:03:08,200 --> 00:03:10,880 Speaker 1: that conservative revolution. I knew that there would be an 51 00:03:10,880 --> 00:03:14,359 Speaker 1: attempt by the radical left to reverse these policies. I 52 00:03:14,400 --> 00:03:17,079 Speaker 1: truly can't think of a single policy that Biden has 53 00:03:17,120 --> 00:03:19,160 Speaker 1: put in place when it comes to the economy that's 54 00:03:19,200 --> 00:03:21,320 Speaker 1: been good for the economy. That's how bad it's been. 55 00:03:21,440 --> 00:03:24,360 Speaker 1: And so just to give you a sense, folks, of 56 00:03:24,800 --> 00:03:27,800 Speaker 1: how much we've slid in the last fourteen months, because 57 00:03:27,800 --> 00:03:30,360 Speaker 1: I run into people all the time who come up 58 00:03:30,360 --> 00:03:32,160 Speaker 1: to me and I will say, you know, they didn't 59 00:03:32,200 --> 00:03:34,440 Speaker 1: vote for Donald Trump. They didn't like Donald Trump very much, 60 00:03:34,680 --> 00:03:37,680 Speaker 1: but boy, they sure liked his policies, and I think 61 00:03:37,760 --> 00:03:41,400 Speaker 1: every day that goes by, people remembering how good they 62 00:03:41,440 --> 00:03:45,240 Speaker 1: were compared to what's happening today. So when Trump left office, 63 00:03:45,280 --> 00:03:47,680 Speaker 1: this is one of my favorite statistics when we speaker. 64 00:03:48,040 --> 00:03:51,160 Speaker 1: When Trump left office in January of twenty twenty one, 65 00:03:51,720 --> 00:03:55,360 Speaker 1: the United States was completely energy independent. We had reached 66 00:03:55,440 --> 00:03:57,840 Speaker 1: a stage that we'd never seen him fifty years in 67 00:03:57,880 --> 00:04:00,760 Speaker 1: this country where we're actually most of you know this. 68 00:04:00,880 --> 00:04:03,880 Speaker 1: We were producing morel and gas and coal than we 69 00:04:03,880 --> 00:04:07,040 Speaker 1: were importing. So we had broken the back of OPEC, 70 00:04:07,640 --> 00:04:10,960 Speaker 1: and Biden declared war on American energy. And now we're 71 00:04:11,320 --> 00:04:14,960 Speaker 1: importing a million or two million barrels a day from abroad, 72 00:04:15,000 --> 00:04:18,080 Speaker 1: which is criminal. I mean, we're actually funding Russia in 73 00:04:18,160 --> 00:04:21,360 Speaker 1: their evil war against Ukraine. So that's one statistic to 74 00:04:21,440 --> 00:04:23,400 Speaker 1: keep in mind. And by the way, just one more 75 00:04:23,400 --> 00:04:25,880 Speaker 1: thing on that. I really believe we were at twelve 76 00:04:25,880 --> 00:04:29,760 Speaker 1: million barrels a day production under Trump. Biden's taking that 77 00:04:29,760 --> 00:04:31,880 Speaker 1: down to it about ten million barrels a day. I 78 00:04:32,200 --> 00:04:34,880 Speaker 1: truly believe if Trump were still president, we'd be producing 79 00:04:34,920 --> 00:04:38,000 Speaker 1: fifteen million barrels a day. Now, think about that, that's 80 00:04:38,120 --> 00:04:41,000 Speaker 1: five million fewer barrels of oil a day, the price 81 00:04:41,040 --> 00:04:43,440 Speaker 1: is one hundred dollars of barrel. That means we're losing 82 00:04:43,920 --> 00:04:49,000 Speaker 1: new five hundred million dollars a day because this insane 83 00:04:49,000 --> 00:04:51,640 Speaker 1: war on American energy. So that's one statistic. The other 84 00:04:51,680 --> 00:04:53,320 Speaker 1: one I'll throw out there just to give you a 85 00:04:53,320 --> 00:04:56,560 Speaker 1: sense of how much things have faltered in the last 86 00:04:56,560 --> 00:05:00,840 Speaker 1: fifteen months. When Trump left office in January twenty twenty one, 87 00:05:01,440 --> 00:05:05,479 Speaker 1: do you know, knew what the inflation rate was that month? No, 88 00:05:05,920 --> 00:05:10,240 Speaker 1: take a guess, one and a half. So think about that, 89 00:05:10,440 --> 00:05:12,240 Speaker 1: and how do you go from one and a half 90 00:05:12,279 --> 00:05:14,760 Speaker 1: percent inflation to eight and a half percent inflation in 91 00:05:14,839 --> 00:05:17,480 Speaker 1: fifteen months. I wouldn't have thought that was possible. By 92 00:05:17,520 --> 00:05:21,360 Speaker 1: the way, the economy was already expanding when Biden came 93 00:05:21,400 --> 00:05:22,840 Speaker 1: into office, so it's not as if all of a 94 00:05:22,839 --> 00:05:25,920 Speaker 1: sudden we had this big surgeon economy. And so now 95 00:05:25,920 --> 00:05:28,279 Speaker 1: we have a tragedy in this country. And I think 96 00:05:28,320 --> 00:05:32,599 Speaker 1: that the match that lit this forest buyer of higher inflation, 97 00:05:33,320 --> 00:05:37,679 Speaker 1: unquestionably was the massive increase in multi trillions of dollars 98 00:05:37,680 --> 00:05:41,839 Speaker 1: of spending and borrowing. And it's as clear as the 99 00:05:41,880 --> 00:05:44,480 Speaker 1: sun rising every morning in the east that you were 100 00:05:44,480 --> 00:05:47,200 Speaker 1: going to have inflation when you just keep spending. We 101 00:05:47,240 --> 00:05:51,479 Speaker 1: had a trillion dollars in the hopper because Trump shortly 102 00:05:51,480 --> 00:05:53,920 Speaker 1: before we left office, we passed a one trillion dollar 103 00:05:53,960 --> 00:05:56,520 Speaker 1: COVID relief bill on top of the ones we'd already passed. 104 00:05:56,680 --> 00:05:59,640 Speaker 1: So there's already one trillion dollars flowing into the system 105 00:06:00,000 --> 00:06:02,599 Speaker 1: beyond the normal budget. And Biden comes in and he 106 00:06:02,640 --> 00:06:05,400 Speaker 1: spends three trillion dollars more. You know, what's the old 107 00:06:05,440 --> 00:06:07,880 Speaker 1: saying that a crisis is a terrible thing to waste. 108 00:06:07,920 --> 00:06:10,560 Speaker 1: That's Robin Manuel. Well, that's the way they left yout it. 109 00:06:10,680 --> 00:06:13,560 Speaker 1: We can just spend and spend this deluge of money, 110 00:06:13,880 --> 00:06:15,960 Speaker 1: and that has caused this inflation crisis. Now I'll set 111 00:06:16,040 --> 00:06:17,360 Speaker 1: up in a minute, but I want to make sure 112 00:06:17,360 --> 00:06:19,960 Speaker 1: people connect the dots here. So it was the massive 113 00:06:20,000 --> 00:06:23,320 Speaker 1: increase in the spending, it was the massive increase in 114 00:06:23,360 --> 00:06:26,120 Speaker 1: the borrowing which had to fund that spending. Then the 115 00:06:26,200 --> 00:06:29,120 Speaker 1: FED is complicit here as well, because the FED was 116 00:06:29,160 --> 00:06:32,359 Speaker 1: basically buying a lot of these bonds. So that was 117 00:06:32,400 --> 00:06:35,440 Speaker 1: just flushing all of this money into the economy. And 118 00:06:35,480 --> 00:06:37,640 Speaker 1: you know, Milton Friedman taught us, when you have all 119 00:06:37,680 --> 00:06:40,520 Speaker 1: that money in the economy, more money chasing fewer goods, 120 00:06:40,520 --> 00:06:43,200 Speaker 1: you're going to have inflation. And if we don't stop 121 00:06:43,279 --> 00:06:45,680 Speaker 1: this inflation, and I think that what the Fed did 122 00:06:45,760 --> 00:06:49,320 Speaker 1: was completely insufficient, we are going to have a reception now. 123 00:06:49,320 --> 00:06:51,279 Speaker 1: I don't think it's too late to avoid one, but 124 00:06:51,360 --> 00:06:54,280 Speaker 1: we've got to start taking smart action now. So when 125 00:06:54,279 --> 00:06:56,000 Speaker 1: you look out to the end of the year, which 126 00:06:56,040 --> 00:06:57,880 Speaker 1: was the election cycle, and then maybe to the end 127 00:06:57,880 --> 00:07:01,839 Speaker 1: of next year, in terms of unemployment and in terms 128 00:07:01,839 --> 00:07:06,640 Speaker 1: of inflation, what does your instinct tell you know, right now, 129 00:07:07,320 --> 00:07:09,200 Speaker 1: it's a weird economy. I don't think I've ever seen 130 00:07:09,240 --> 00:07:11,840 Speaker 1: anything in my forty years of being an economist where 131 00:07:11,880 --> 00:07:15,000 Speaker 1: I've seen a very very strong labor market. I mean, 132 00:07:15,000 --> 00:07:16,600 Speaker 1: if you want a job out there, they're out there 133 00:07:16,680 --> 00:07:20,000 Speaker 1: right now. They are. We've got ten millions or plus jobs. Now, 134 00:07:20,040 --> 00:07:22,000 Speaker 1: that's a good thing if you're a worker. It's not 135 00:07:22,040 --> 00:07:23,640 Speaker 1: such a good thing if you're an employer trying to 136 00:07:23,640 --> 00:07:26,200 Speaker 1: find workers. And I do think that one of the 137 00:07:26,200 --> 00:07:28,840 Speaker 1: big mistakes we made we should have cut the payroll 138 00:07:28,920 --> 00:07:32,000 Speaker 1: tax rather than increased all these unemployment bests. Let's really 139 00:07:32,040 --> 00:07:33,840 Speaker 1: review what we did in the last two years and 140 00:07:33,920 --> 00:07:36,040 Speaker 1: all the mistakes that we made, and one of them 141 00:07:36,160 --> 00:07:38,280 Speaker 1: was that, you know, we paid people not to work 142 00:07:38,400 --> 00:07:41,040 Speaker 1: rather than paying people to work. And as you know, 143 00:07:41,480 --> 00:07:44,120 Speaker 1: mister speaker, the other thing that Biden did was immediately 144 00:07:44,120 --> 00:07:47,280 Speaker 1: eviscerate all of the welfare reforms. All of the work 145 00:07:47,320 --> 00:07:51,080 Speaker 1: for welfare reforms were eviscerated under Biden, and so they 146 00:07:51,240 --> 00:07:53,760 Speaker 1: don't exist anymore. You don't have to work to get 147 00:07:53,800 --> 00:07:55,400 Speaker 1: food stamps, you don't need to get work to get 148 00:07:55,480 --> 00:07:58,280 Speaker 1: rent of the assistance. That's a hard question to answer. 149 00:07:58,320 --> 00:08:01,000 Speaker 1: I mean, as I said, pends a lot on what 150 00:08:01,040 --> 00:08:03,520 Speaker 1: we'd do over the next few months. As soon as 151 00:08:03,640 --> 00:08:07,280 Speaker 1: Jerome Powell made his announcement, I said, oh, that was 152 00:08:07,360 --> 00:08:11,360 Speaker 1: not a hawkish anti inflation policy. He put forward was 153 00:08:11,480 --> 00:08:15,239 Speaker 1: the opposite. We should be raising rates much more quickly 154 00:08:15,440 --> 00:08:18,480 Speaker 1: if we want to get this inflation down. And that's 155 00:08:18,520 --> 00:08:21,440 Speaker 1: not what Jerome Powell did. And he's been wrong, by 156 00:08:21,440 --> 00:08:24,600 Speaker 1: the way, for the last year, every pronouncement he has 157 00:08:24,640 --> 00:08:27,280 Speaker 1: made on inflation has been wrong. First he said there 158 00:08:27,320 --> 00:08:29,200 Speaker 1: is no inflation, Then he said to his temporary, Then 159 00:08:29,200 --> 00:08:30,680 Speaker 1: he said it was transitory, then he said it was 160 00:08:30,680 --> 00:08:31,960 Speaker 1: going to go away, and then he said it was 161 00:08:32,559 --> 00:08:34,760 Speaker 1: not that harmful. And all of those of the ron 162 00:08:34,880 --> 00:08:37,720 Speaker 1: Ron wrong. I don't know why anyone actually believes him anymore. 163 00:08:38,080 --> 00:08:40,439 Speaker 1: I think that Jerome Powell was actually one of Trump's 164 00:08:40,440 --> 00:08:43,800 Speaker 1: worst appointments. You know, I came in as a freshman 165 00:08:43,840 --> 00:08:47,000 Speaker 1: in the middle of Carter's inflationary cycle, and I was 166 00:08:47,080 --> 00:08:51,839 Speaker 1: there when Volker basically was told by finance ministers around 167 00:08:51,880 --> 00:08:54,840 Speaker 1: the world, if you don't get this under control, we're 168 00:08:54,880 --> 00:08:57,720 Speaker 1: going to withdraw support for the dollar as a reserve currency. 169 00:08:58,240 --> 00:09:01,240 Speaker 1: And he came back home with rage in support. He 170 00:09:01,360 --> 00:09:04,560 Speaker 1: was relentless in raising interest rates. What do you think 171 00:09:04,960 --> 00:09:09,480 Speaker 1: Volker would do today if he was faced with pals challenges. Well, 172 00:09:09,559 --> 00:09:14,040 Speaker 1: let me just say something about why inflation is so devastating, 173 00:09:14,520 --> 00:09:16,959 Speaker 1: because we haven't had inflation like this in a long time. 174 00:09:17,080 --> 00:09:18,720 Speaker 1: As you said, you have to go back to the 175 00:09:18,800 --> 00:09:22,200 Speaker 1: Carter years to remember when inflation was this bad. Think 176 00:09:22,200 --> 00:09:24,160 Speaker 1: about it like this, when you have an eight and 177 00:09:24,200 --> 00:09:26,480 Speaker 1: a half percent inflation rate. So let's look at that 178 00:09:26,559 --> 00:09:29,400 Speaker 1: GDP number that came out last week. It was negative 179 00:09:29,400 --> 00:09:32,960 Speaker 1: at one point four percent. In nominal turns, the economy 180 00:09:33,000 --> 00:09:35,160 Speaker 1: grew pretty well, it was up six percent. That's a 181 00:09:35,160 --> 00:09:37,800 Speaker 1: good number normally, But when you have an eight and 182 00:09:37,800 --> 00:09:40,719 Speaker 1: a half percent inflation rate. Everything has to grow by 183 00:09:40,720 --> 00:09:42,360 Speaker 1: eight and a half percent just to get even. You 184 00:09:42,360 --> 00:09:44,600 Speaker 1: see what I'm saying. In other words, if you don't 185 00:09:44,600 --> 00:09:46,800 Speaker 1: go at eight and a half percent, you're negative because 186 00:09:46,800 --> 00:09:50,000 Speaker 1: you're below the inflation rate. It's a huge hurdle to 187 00:09:50,080 --> 00:09:53,680 Speaker 1: get over. That's why wages are falling. New that wages 188 00:09:53,720 --> 00:09:56,920 Speaker 1: are growing at six percent, but inflation is eight and 189 00:09:56,920 --> 00:09:59,360 Speaker 1: a half percent, so people are losing money. Same thing 190 00:09:59,360 --> 00:10:01,640 Speaker 1: on the stock market. I even said this before this 191 00:10:01,679 --> 00:10:03,920 Speaker 1: big fall. If you look at the real rate of 192 00:10:04,280 --> 00:10:06,199 Speaker 1: returns on the stock market the last year, they were 193 00:10:06,240 --> 00:10:09,320 Speaker 1: completely negative because they didn't keep pace with inflation. That's 194 00:10:09,360 --> 00:10:11,840 Speaker 1: why you can't get an in healthy economy with an 195 00:10:11,840 --> 00:10:14,760 Speaker 1: inflation rate this high. So job number one has to 196 00:10:14,760 --> 00:10:17,240 Speaker 1: be to bring this inflation rate down. It has to 197 00:10:17,280 --> 00:10:20,720 Speaker 1: be and that requires two things. Number one, the FED 198 00:10:20,800 --> 00:10:22,880 Speaker 1: needs to be more aggressive in terms of pulling money 199 00:10:22,880 --> 00:10:25,800 Speaker 1: on economy. And by the way, that's not just raising 200 00:10:25,840 --> 00:10:28,320 Speaker 1: interest rates, one thing the FED has been doing for 201 00:10:28,320 --> 00:10:30,680 Speaker 1: the last three years. Have you looked at the FED balanchet. 202 00:10:30,720 --> 00:10:34,040 Speaker 1: They own six seven eight trillion dollars of assets, so 203 00:10:34,080 --> 00:10:37,120 Speaker 1: they keep buying these assets, which pushes more money into 204 00:10:37,120 --> 00:10:39,840 Speaker 1: the economy, and the one thing they've been buying other 205 00:10:39,880 --> 00:10:43,280 Speaker 1: than bonds until recently. Now they've stopped doing this, but 206 00:10:43,400 --> 00:10:46,840 Speaker 1: they were buying all these mortgage backed securities. Does that 207 00:10:46,880 --> 00:10:49,640 Speaker 1: sound familiar. That's exactly what the Fed boys doing back 208 00:10:49,679 --> 00:10:51,280 Speaker 1: in two thousand and seven and eight. It's like they've 209 00:10:51,360 --> 00:10:54,240 Speaker 1: learned none of the lessons from the crisis. I'm worried 210 00:10:54,240 --> 00:10:56,280 Speaker 1: about the housing market, by the way. I'm really worried 211 00:10:56,280 --> 00:10:59,400 Speaker 1: about it. Mortgage rates are going up, housing affordability is 212 00:10:59,440 --> 00:11:02,199 Speaker 1: going down, and if people start losing jobs and stuff, 213 00:11:02,240 --> 00:11:03,679 Speaker 1: I mean, I think you could have another crash in 214 00:11:03,760 --> 00:11:07,560 Speaker 1: the market. So it's a precarious situation. Answer your question 215 00:11:08,400 --> 00:11:13,640 Speaker 1: is Boker would be raising rates aggressively to kill the inflation, 216 00:11:13,760 --> 00:11:16,080 Speaker 1: just smash it down. And you're right, that's what it 217 00:11:16,080 --> 00:11:18,720 Speaker 1: took in nineteen eighty one eighty two. It was a 218 00:11:18,880 --> 00:11:22,439 Speaker 1: part landing we had. But then remember that set the stage. 219 00:11:22,559 --> 00:11:24,480 Speaker 1: Once we got that inflation rate down, we have the 220 00:11:24,520 --> 00:11:28,800 Speaker 1: biggest bull market expansions are to Raagan ever and has 221 00:11:28,840 --> 00:11:32,679 Speaker 1: set the base for healthy growth for thirty years. Yeah, exactly. 222 00:11:32,720 --> 00:11:51,920 Speaker 1: It was amazing. I saw one report today that September 223 00:11:51,920 --> 00:11:55,240 Speaker 1: and October will actually be worse months for the price 224 00:11:55,280 --> 00:12:00,560 Speaker 1: of food because of the real world not just inflationary problem, 225 00:12:00,600 --> 00:12:04,640 Speaker 1: but the amount of fertilizer available is dropped dramatically. The 226 00:12:04,720 --> 00:12:09,040 Speaker 1: price has gone up, farmers are using less fertilizer, the 227 00:12:09,080 --> 00:12:13,319 Speaker 1: price of the productivity is going down. In terms of agriculture, 228 00:12:14,000 --> 00:12:17,160 Speaker 1: Ukraine and Russia are something like forty percent of the 229 00:12:17,200 --> 00:12:22,160 Speaker 1: world's grain exports, and so places like India Egypt are 230 00:12:22,200 --> 00:12:25,080 Speaker 1: going to have huge problems. And in the US the 231 00:12:25,160 --> 00:12:28,080 Speaker 1: price of beef is going to go apparently through the roof, 232 00:12:28,600 --> 00:12:32,679 Speaker 1: So you could have the absence of supply driven price increases, 233 00:12:33,080 --> 00:12:35,360 Speaker 1: which I actually are in a function of inflation, their 234 00:12:35,440 --> 00:12:39,120 Speaker 1: function of market behavior. And it strikes me that the 235 00:12:39,160 --> 00:12:42,600 Speaker 1: American people will respond to that. As this all sinks 236 00:12:42,600 --> 00:12:45,960 Speaker 1: in my personal hunches, you'll see the savings rate go 237 00:12:46,080 --> 00:12:50,000 Speaker 1: up and people really pull back on spending because they'll 238 00:12:50,040 --> 00:12:52,800 Speaker 1: be afraid. Well, you know, there's a lot there. I 239 00:12:52,840 --> 00:12:55,920 Speaker 1: agree with everything that you just said. First of all, 240 00:12:56,440 --> 00:12:58,760 Speaker 1: let's take the energy issue, because I should have mentioned 241 00:12:58,760 --> 00:13:02,119 Speaker 1: this also, and the price of energy goes up, everything 242 00:13:02,200 --> 00:13:06,360 Speaker 1: goes up. People don't realize how energy intensive food production is, right, 243 00:13:06,600 --> 00:13:09,640 Speaker 1: I mean, you mentioned fertilizer. Fertilizer uses a lot of energy. 244 00:13:09,679 --> 00:13:11,800 Speaker 1: Irrigation you use a lot of energy. You need trucks 245 00:13:11,800 --> 00:13:13,719 Speaker 1: and all these things to transport the food. You know, 246 00:13:13,880 --> 00:13:18,080 Speaker 1: ask any farmer. It's an energy intensive industry. And you're 247 00:13:18,160 --> 00:13:23,280 Speaker 1: right that those food prices cabin rising very rapidly. Look, 248 00:13:23,320 --> 00:13:25,520 Speaker 1: if we have higher food prices, let's say a ten 249 00:13:25,520 --> 00:13:27,559 Speaker 1: percent increase in food prices in the United States, because 250 00:13:27,600 --> 00:13:30,319 Speaker 1: you're right, because the supply is dropping, that's going to 251 00:13:30,400 --> 00:13:33,480 Speaker 1: cause hardship for people. It's gonna cause financial hardship, but 252 00:13:33,600 --> 00:13:36,040 Speaker 1: for people around the world, it's going to cause severe hunger. 253 00:13:36,200 --> 00:13:38,880 Speaker 1: I mean, you're going to have people, literally, I hope 254 00:13:38,920 --> 00:13:41,320 Speaker 1: I'm wrong about this, starving to death because they don't 255 00:13:41,320 --> 00:13:43,160 Speaker 1: have the safety nest that we do. So this is 256 00:13:43,200 --> 00:13:46,640 Speaker 1: a crisis, and you've got to bring energy prices down, 257 00:13:46,679 --> 00:13:49,680 Speaker 1: you've got to bring the inflation rate down. And you 258 00:13:49,800 --> 00:13:53,520 Speaker 1: mentioned something else that's really important to this equation. Yes, 259 00:13:53,640 --> 00:13:57,200 Speaker 1: Paul Voker slam the brakes on the money supply, but 260 00:13:57,400 --> 00:14:01,040 Speaker 1: other part of this that the left doesn't understand is 261 00:14:01,080 --> 00:14:03,000 Speaker 1: what you just said, the supply side. That's what we 262 00:14:03,040 --> 00:14:06,720 Speaker 1: call us supply side economics. That means we're pro production, 263 00:14:06,960 --> 00:14:11,280 Speaker 1: we're pro business. And so as soon as those deregulations 264 00:14:11,320 --> 00:14:15,600 Speaker 1: by Reagan and the big steep Laffer tax cuts took place, 265 00:14:16,080 --> 00:14:19,320 Speaker 1: you had a huge search and supply right. And guess what, 266 00:14:19,360 --> 00:14:21,800 Speaker 1: when supply goes up, prices go down. So that was 267 00:14:21,920 --> 00:14:26,600 Speaker 1: also a correlating factor to that reduction and crisis. Same 268 00:14:26,640 --> 00:14:29,920 Speaker 1: thing under Trump, we reduced the regulations and we reduced 269 00:14:29,920 --> 00:14:32,840 Speaker 1: the tax rates, and that's how we got that inflation rate. 270 00:14:32,880 --> 00:14:36,360 Speaker 1: So under Trump we were actually below the Fed's targeted inflation. 271 00:14:36,400 --> 00:14:38,800 Speaker 1: The FEDS shoots for two percent inflation. We're at one 272 00:14:38,800 --> 00:14:40,640 Speaker 1: and a half percent. And so you got to do 273 00:14:40,720 --> 00:14:43,240 Speaker 1: both the supply side, right. You got to get the 274 00:14:43,240 --> 00:14:46,360 Speaker 1: taxes down, the regulations down, you get better trade deals, 275 00:14:46,400 --> 00:14:48,840 Speaker 1: all those types of things, and you have to control 276 00:14:48,880 --> 00:14:50,920 Speaker 1: the money supply. And right now, I'm here to tell 277 00:14:50,960 --> 00:14:54,120 Speaker 1: you that Biden is doing neither of those. There's almost 278 00:14:54,120 --> 00:14:57,600 Speaker 1: the worst of both worlds. I remember in the late 279 00:14:57,680 --> 00:15:01,480 Speaker 1: seventies and ear lyadies with Jude Anisky and Art Leffer 280 00:15:01,560 --> 00:15:05,600 Speaker 1: and Jack Kemp pushing the concept of supply side. In 281 00:15:05,600 --> 00:15:07,640 Speaker 1: a sense, I say this for all of our members 282 00:15:07,760 --> 00:15:11,160 Speaker 1: Unit circle. The model is very simple. If you try 283 00:15:11,160 --> 00:15:14,800 Speaker 1: to break inflation only on the demand side. The level 284 00:15:14,800 --> 00:15:18,200 Speaker 1: of pain is dramatically great at it. But if you 285 00:15:18,240 --> 00:15:21,040 Speaker 1: think of it, if you provide more goods and services, 286 00:15:21,160 --> 00:15:24,440 Speaker 1: they mop up the money, and therefore you can actually 287 00:15:24,480 --> 00:15:28,880 Speaker 1: get to a better equilibrium with dramatically more supplies. At 288 00:15:28,880 --> 00:15:30,880 Speaker 1: the time in the mid seventies, that was a very 289 00:15:31,000 --> 00:15:34,320 Speaker 1: radical model, although it actually just went back to general 290 00:15:34,360 --> 00:15:38,400 Speaker 1: economics in a pre Kansian sense. You're exactly right. And 291 00:15:38,480 --> 00:15:40,680 Speaker 1: then there's another part of this too, which happened when 292 00:15:40,720 --> 00:15:44,640 Speaker 1: you were Speaker and Bill Clinton was president. You guys 293 00:15:44,720 --> 00:15:47,560 Speaker 1: came in and you cut government spending. People don't realize 294 00:15:47,560 --> 00:15:51,000 Speaker 1: how much spending came down under your years as speaker, 295 00:15:51,440 --> 00:15:54,600 Speaker 1: and that also had very positive effect on the economy 296 00:15:54,720 --> 00:15:57,480 Speaker 1: as well, because you know, every dollar that the government 297 00:15:57,520 --> 00:16:00,920 Speaker 1: doesn't spend as a dollar that the private sector spent. Again, 298 00:16:00,960 --> 00:16:03,720 Speaker 1: the left doesn't get this. I mean, you need government. 299 00:16:03,760 --> 00:16:06,000 Speaker 1: I'm not saying we shouldn't have any government, but when 300 00:16:06,000 --> 00:16:08,440 Speaker 1: you have all of these government programs, and this is 301 00:16:08,600 --> 00:16:10,920 Speaker 1: why I'm really worried when you asked me where's the 302 00:16:10,920 --> 00:16:13,960 Speaker 1: economy headed? I mean, just listen to what the Democrats 303 00:16:13,960 --> 00:16:17,080 Speaker 1: are saying. First of all last week, Chuck Schulder said 304 00:16:17,080 --> 00:16:19,040 Speaker 1: the way to bring inflation down is to cancel the 305 00:16:19,040 --> 00:16:21,880 Speaker 1: Trump tax cuts. Billy, you're going to do a two 306 00:16:21,920 --> 00:16:25,080 Speaker 1: trillion dollar tax increase on American businesses. And then you 307 00:16:25,120 --> 00:16:27,560 Speaker 1: had Biden say, oh, we're going to increase the tax 308 00:16:27,600 --> 00:16:31,240 Speaker 1: on the energy companies because they're price couching. Well, if 309 00:16:31,240 --> 00:16:33,440 Speaker 1: you tax something, you get less of it. If you 310 00:16:33,600 --> 00:16:35,760 Speaker 1: increase tax on the energy companies, they're not going to 311 00:16:35,800 --> 00:16:38,240 Speaker 1: produce more energy, They're gonna produce less of it. And 312 00:16:38,320 --> 00:16:42,200 Speaker 1: so they're violating the most basic rules of economics. And 313 00:16:42,280 --> 00:16:46,360 Speaker 1: Biden is still out there pushing his idiotic Build Back 314 00:16:46,400 --> 00:16:49,520 Speaker 1: Better bill. Can you imagine new if Joe Manson had 315 00:16:49,520 --> 00:16:52,200 Speaker 1: not saved our country and held that thing up, if 316 00:16:52,240 --> 00:16:54,640 Speaker 1: they had passed that five trillion dollars spending bill, we 317 00:16:54,680 --> 00:16:57,440 Speaker 1: would be looking at fifteen percent inflation right now. You know, 318 00:16:57,480 --> 00:17:00,440 Speaker 1: I always try to tell people, no matter what your ideology, 319 00:17:00,960 --> 00:17:03,200 Speaker 1: if you take eggs and you put them in the freezer, 320 00:17:03,520 --> 00:17:05,879 Speaker 1: they're not going to be boiled. They may end up 321 00:17:05,920 --> 00:17:08,320 Speaker 1: being hard, but they're not going to be boiled. And 322 00:17:08,440 --> 00:17:11,320 Speaker 1: on the left, you just cannot get that across. It's 323 00:17:11,359 --> 00:17:30,080 Speaker 1: amazing their willingness to deny reality. Thanks very much. The 324 00:17:30,200 --> 00:17:34,439 Speaker 1: comments were really interesting in terms of Russia's war on 325 00:17:34,600 --> 00:17:38,120 Speaker 1: Ukraine and how it's affected global food supplies. I mean, 326 00:17:38,160 --> 00:17:41,560 Speaker 1: it's causing the prices of key agricultural products produced not 327 00:17:41,600 --> 00:17:45,760 Speaker 1: only in that region, including wheat, as you mentioned to Skyrocket, 328 00:17:45,840 --> 00:17:48,480 Speaker 1: And there are many countries that are fearing shortages. And 329 00:17:48,520 --> 00:17:51,600 Speaker 1: I just read a report that the USA ID is 330 00:17:51,760 --> 00:17:56,000 Speaker 1: planning to release their critical food supplies because of this issue. 331 00:17:56,320 --> 00:17:58,600 Speaker 1: I mean, so if Ukraine is showing us anything, it's 332 00:17:58,640 --> 00:18:01,520 Speaker 1: that we take food for granted and the world is 333 00:18:01,560 --> 00:18:04,760 Speaker 1: about to go hungry because of that war. And so 334 00:18:04,880 --> 00:18:07,919 Speaker 1: with this new crisis building, you know, what are your 335 00:18:07,920 --> 00:18:11,200 Speaker 1: guys's recommendations to deal with this. I moved to Puerto 336 00:18:11,280 --> 00:18:14,800 Speaker 1: Rico four years ago and formed Fusion Farms, which is 337 00:18:14,840 --> 00:18:20,600 Speaker 1: an indoor vertical aquaponics hurricane protected farm, and we're trying 338 00:18:20,640 --> 00:18:23,480 Speaker 1: to expand as fast as we can because we're growing 339 00:18:23,640 --> 00:18:28,920 Speaker 1: without an ammonia chemical fertilizer solution. We're using telapia as 340 00:18:28,920 --> 00:18:32,640 Speaker 1: our nutrient source, but we can't grow fast enough to 341 00:18:32,680 --> 00:18:37,040 Speaker 1: meet the coming shortages in the fall. So what do 342 00:18:37,080 --> 00:18:38,680 Speaker 1: you recommend to people? I mean, I'm trying to get 343 00:18:38,720 --> 00:18:41,040 Speaker 1: people to grow backyard gardens and get back to the 344 00:18:41,119 --> 00:18:43,760 Speaker 1: victory gardens of World War two, because this is a 345 00:18:43,960 --> 00:18:46,120 Speaker 1: big problem. And do you see it at that kind 346 00:18:46,160 --> 00:18:48,840 Speaker 1: of level, Steve, do you want to comment on I'm 347 00:18:48,840 --> 00:18:51,600 Speaker 1: not an expert on this issue. I think Kettles probably 348 00:18:51,800 --> 00:18:53,119 Speaker 1: know it's a lot more about it than I do. 349 00:18:53,480 --> 00:18:56,320 Speaker 1: I would simply say that when you have these inflated 350 00:18:56,400 --> 00:19:01,240 Speaker 1: costs of energy and the inputs that are used to 351 00:19:01,520 --> 00:19:04,520 Speaker 1: grow food and put it in the grocery store, that 352 00:19:04,760 --> 00:19:07,880 Speaker 1: is causing a real crisis. And we should be able 353 00:19:07,920 --> 00:19:11,240 Speaker 1: to produce as much food as we need to, you know, 354 00:19:11,320 --> 00:19:13,399 Speaker 1: with the right economic policies. Why does the world have 355 00:19:13,480 --> 00:19:16,440 Speaker 1: to be depended on Ukraine for food? We're the breadbasket. 356 00:19:16,840 --> 00:19:18,800 Speaker 1: I mean we should be energy into pad. Of course, 357 00:19:19,000 --> 00:19:21,080 Speaker 1: that goes without saying. It's funny. I do a radio 358 00:19:21,119 --> 00:19:24,120 Speaker 1: show once a week on WABC, and I've been challenging 359 00:19:24,200 --> 00:19:28,000 Speaker 1: for seven weeks some liberal Democrat to explain to me 360 00:19:28,119 --> 00:19:32,600 Speaker 1: the logic of the Biden energy policy. How does it 361 00:19:32,680 --> 00:19:36,480 Speaker 1: make any logical sense that we would get our oil 362 00:19:36,520 --> 00:19:40,119 Speaker 1: and gas from Russia? And I ran on rather than 363 00:19:40,200 --> 00:19:43,600 Speaker 1: Texas and Oklahoma and incidentally, if you care about climate change, 364 00:19:43,760 --> 00:19:45,960 Speaker 1: it doesn't keep me up at night, but many people does. 365 00:19:46,400 --> 00:19:49,199 Speaker 1: The single and most important thing that we could do 366 00:19:49,240 --> 00:19:52,920 Speaker 1: if you want to reduce global emissions of greenhouse gases 367 00:19:53,320 --> 00:19:56,600 Speaker 1: is bring all oil and gas production to the United States, 368 00:19:56,800 --> 00:19:59,160 Speaker 1: because we have by far the cleanest oil and gas, 369 00:19:59,240 --> 00:20:02,280 Speaker 1: we have by far the most stringent environmental protections. So 370 00:20:02,320 --> 00:20:04,879 Speaker 1: when we move the production out of the US, that's 371 00:20:05,000 --> 00:20:08,320 Speaker 1: actually making the greenhouse gas emissions higher and not lower. 372 00:20:08,359 --> 00:20:10,320 Speaker 1: I don't know if the Left understands that, but it's 373 00:20:10,320 --> 00:20:13,080 Speaker 1: a fact. Let me mention Ken because you raised a 374 00:20:13,080 --> 00:20:16,640 Speaker 1: really good question. When Klisto is the ambassador to the Vatican, 375 00:20:17,200 --> 00:20:21,040 Speaker 1: we have in Rome an American ambassador to the Food 376 00:20:21,080 --> 00:20:24,080 Speaker 1: and Agricultural Organization, and we got to know Kip Tom 377 00:20:24,119 --> 00:20:27,280 Speaker 1: who is a farmer multi generations, goes back a long 378 00:20:27,320 --> 00:20:31,560 Speaker 1: way in his family, and he's extraordinarily knowledgeable. He was 379 00:20:31,600 --> 00:20:33,960 Speaker 1: one of the first people to warn me food will 380 00:20:34,000 --> 00:20:37,679 Speaker 1: be expensive but available in the US. Food may not 381 00:20:37,800 --> 00:20:41,240 Speaker 1: be available in parts of Egypt, or parts of India, 382 00:20:41,400 --> 00:20:43,800 Speaker 1: or parts of Sub Satire in Africa, and you may 383 00:20:43,840 --> 00:20:47,840 Speaker 1: literally have several hundred million people faced with starvation. I've 384 00:20:47,880 --> 00:20:49,240 Speaker 1: got a couple of questions, I'd like to run it 385 00:20:49,280 --> 00:20:50,920 Speaker 1: to buy you. The first one is the one we've 386 00:20:50,920 --> 00:20:54,359 Speaker 1: been talking about, is the number of people around the 387 00:20:54,359 --> 00:20:57,399 Speaker 1: world who will be faced with starvations as a result 388 00:20:57,440 --> 00:21:01,760 Speaker 1: of the food shortages. A hack to solve the problem 389 00:21:01,920 --> 00:21:05,720 Speaker 1: would be to shift ethanol production to food production. In 390 00:21:05,760 --> 00:21:09,280 Speaker 1: the US, that would instantly release a whole lot of 391 00:21:09,320 --> 00:21:12,119 Speaker 1: food for production. The downside of it would be that 392 00:21:12,600 --> 00:21:17,639 Speaker 1: it would further stretch US energy production, and currently the 393 00:21:18,160 --> 00:21:21,640 Speaker 1: oil reserves are almost down up with the driving seat. 394 00:21:21,640 --> 00:21:23,680 Speaker 1: In the summer, they'll run into two hundred dollars of barrel, 395 00:21:24,280 --> 00:21:26,560 Speaker 1: which would be bad, but the alternative would be far 396 00:21:26,640 --> 00:21:30,760 Speaker 1: worse for worldwide hundred Would you think that shifting ethanol 397 00:21:30,800 --> 00:21:33,359 Speaker 1: production to food production would be a good idea a 398 00:21:33,480 --> 00:21:35,879 Speaker 1: bad idea? It has a couple of impacts. One is 399 00:21:36,560 --> 00:21:41,320 Speaker 1: the American domestic energy supply. The other is that, except 400 00:21:41,320 --> 00:21:43,800 Speaker 1: for food we give away, we're probably not going to 401 00:21:43,800 --> 00:21:46,919 Speaker 1: be the primary source of that solution, because we have 402 00:21:47,000 --> 00:21:50,280 Speaker 1: the largest agricultural economy in the world. But it is 403 00:21:50,320 --> 00:21:55,000 Speaker 1: in fact fairly expensive, and the places that historically been buying, 404 00:21:55,040 --> 00:21:58,119 Speaker 1: for example, from the Ukraine, have been buying mostly wheat 405 00:21:58,119 --> 00:22:02,280 Speaker 1: and mostly at much lower prices. But I suspect the 406 00:22:02,320 --> 00:22:05,520 Speaker 1: market economy the summer will have some effect on corn 407 00:22:05,600 --> 00:22:09,440 Speaker 1: shifting towards food and away from ethanol. That'd be my guests. 408 00:22:09,480 --> 00:22:11,680 Speaker 1: But Steve, do you want to comment We have more 409 00:22:11,680 --> 00:22:13,480 Speaker 1: oil and gas and coal than any other country in 410 00:22:13,480 --> 00:22:18,200 Speaker 1: the world. Really, we have a superabundance all those energy resources. 411 00:22:18,240 --> 00:22:21,919 Speaker 1: We have the most fertile agricultural land in the world. 412 00:22:22,400 --> 00:22:25,200 Speaker 1: And it's amazing that we're even talking about this, right 413 00:22:25,280 --> 00:22:28,720 Speaker 1: if you've got to really screw things up to happy 414 00:22:29,040 --> 00:22:32,080 Speaker 1: energy and not producing enough food. So that's my comment 415 00:22:32,160 --> 00:22:33,679 Speaker 1: about it, and this idea, well, we have to have 416 00:22:33,680 --> 00:22:36,040 Speaker 1: a trade off between food and energy. That's like nineteenth 417 00:22:36,080 --> 00:22:38,320 Speaker 1: century stuff. I mean, we should be producing more oil, 418 00:22:38,359 --> 00:22:40,920 Speaker 1: we should be producing more gas and coal. By the way, 419 00:22:41,040 --> 00:22:43,480 Speaker 1: China is building fifty coal plants while we're shutting all 420 00:22:43,480 --> 00:22:46,480 Speaker 1: our coal plants down, and so there's no need for 421 00:22:46,520 --> 00:22:48,800 Speaker 1: this sort of trade off. It's just because of bad 422 00:22:48,840 --> 00:22:52,160 Speaker 1: government policy. Well, and frankly, if we went back to 423 00:22:52,720 --> 00:22:56,320 Speaker 1: the kind of energy independence that Trump goddess who you 424 00:22:56,320 --> 00:23:00,399 Speaker 1: would lower the cost of fertilizer overnice? Really? YEA question 425 00:23:00,480 --> 00:23:03,600 Speaker 1: is last year, I moved a bunch of funds in 426 00:23:03,680 --> 00:23:08,880 Speaker 1: the old retirement account over to farm equipment manufacturers, and 427 00:23:08,920 --> 00:23:12,760 Speaker 1: they have done very poorly. I mean, I thought that 428 00:23:12,880 --> 00:23:17,439 Speaker 1: this increased focus on agriculture and production would help a 429 00:23:17,440 --> 00:23:21,080 Speaker 1: lot with the equipment manufacturers, but apparently it's not. Might 430 00:23:21,119 --> 00:23:26,440 Speaker 1: be energy costs. The second point is with ethanol going 431 00:23:26,480 --> 00:23:28,800 Speaker 1: out to the various sites who keep track of it. 432 00:23:29,000 --> 00:23:31,760 Speaker 1: The corn belt in the United States on a yearly basis, 433 00:23:32,680 --> 00:23:36,719 Speaker 1: fixes more carbon dioxide from the atmosphere than the Amazon forest. 434 00:23:37,320 --> 00:23:41,600 Speaker 1: So our corn belt is the biggest carbon fixer and 435 00:23:41,720 --> 00:23:44,360 Speaker 1: we do it every year. And if you make ethanol 436 00:23:44,440 --> 00:23:46,679 Speaker 1: from it and burn it, you're putting it back in. 437 00:23:46,760 --> 00:23:49,840 Speaker 1: But if you put it into food, it really loads 438 00:23:50,040 --> 00:23:53,200 Speaker 1: CO two content. The question is what about the farm 439 00:23:53,240 --> 00:23:55,879 Speaker 1: equipment guys. Well, I think the average farmer will tell 440 00:23:55,920 --> 00:23:59,120 Speaker 1: you right now that with the cost of petroleum based products, 441 00:23:59,440 --> 00:24:02,560 Speaker 1: they don't have the extra money to buy new equipment. 442 00:24:02,920 --> 00:24:06,520 Speaker 1: I mean, it's pretty straightforward. The agricultural community feels like 443 00:24:06,560 --> 00:24:10,280 Speaker 1: it's been pretty hard hit by precisely what Steve's talked about. 444 00:24:10,320 --> 00:24:14,920 Speaker 1: When you adopt suicidal policies that artificially raised the cost 445 00:24:14,960 --> 00:24:17,840 Speaker 1: of oil and gas in the greatest producing country in 446 00:24:17,880 --> 00:24:20,600 Speaker 1: the world. One of the ripple effects is that farmers 447 00:24:21,119 --> 00:24:24,840 Speaker 1: feel it in their pocketbook almost immediately, and that's been 448 00:24:24,880 --> 00:24:27,159 Speaker 1: a big factor. I think. One other quick point on 449 00:24:27,280 --> 00:24:29,840 Speaker 1: this sole issue. You make this point about corn and 450 00:24:30,000 --> 00:24:33,119 Speaker 1: the fact that corn production actually reducing carbon emissions. You 451 00:24:33,160 --> 00:24:35,800 Speaker 1: know some of the crazy things that we're doing right now, 452 00:24:35,880 --> 00:24:40,119 Speaker 1: So for example, trees, trees absorb carbon. You know what 453 00:24:40,160 --> 00:24:42,520 Speaker 1: we're doing right now in America. We're cutting down trees 454 00:24:42,520 --> 00:24:46,679 Speaker 1: to build windmills. How stupid is that it's probably going 455 00:24:46,720 --> 00:24:49,480 Speaker 1: to increase carbon emissions. And sometimes I wonder, you know, 456 00:24:49,520 --> 00:24:51,320 Speaker 1: I get asked this all the time. Are they trying 457 00:24:51,400 --> 00:24:55,280 Speaker 1: to undermine and it's just an intentional thing? And I 458 00:24:55,320 --> 00:24:57,199 Speaker 1: always say, well, I don't know if it's intentional. You 459 00:24:57,240 --> 00:24:59,760 Speaker 1: know what they're doing. But if it were intentional, it's 460 00:24:59,760 --> 00:25:02,360 Speaker 1: work because they're taking all the dials. There's no left. 461 00:25:02,400 --> 00:25:05,280 Speaker 1: Would say, you know, economics, isn't that complicated. If you 462 00:25:05,400 --> 00:25:07,760 Speaker 1: turn the dials in the right direction, you get good results. 463 00:25:07,920 --> 00:25:09,479 Speaker 1: If you turn them in the right direction, you get 464 00:25:09,520 --> 00:25:12,280 Speaker 1: bad results. And Biden has come in and just twisted 465 00:25:12,320 --> 00:25:14,960 Speaker 1: them all in an opposite direction, and in fifteen months. 466 00:25:15,359 --> 00:25:17,160 Speaker 1: You know, how do you like it? Now? That's why 467 00:25:17,200 --> 00:25:18,840 Speaker 1: I do think you're going to see a real revolt 468 00:25:18,880 --> 00:25:22,440 Speaker 1: in November among voters. Yeah, thank you. I'd like to 469 00:25:22,520 --> 00:25:26,040 Speaker 1: kind of stay on the agriculture issue. The DOJ is 470 00:25:26,080 --> 00:25:29,880 Speaker 1: going after the poultry industry for supposed price fixing. They've 471 00:25:29,920 --> 00:25:32,560 Speaker 1: had two mistrials and they're going to have a third trial, 472 00:25:32,560 --> 00:25:35,119 Speaker 1: which is almost unheard of, and they're also planning on 473 00:25:35,280 --> 00:25:39,080 Speaker 1: going after the beef industry. Is that smart right now? Well, 474 00:25:39,119 --> 00:25:42,680 Speaker 1: the left has to blame somebody. Their model is that 475 00:25:42,720 --> 00:25:45,080 Speaker 1: if you're big, you're dangerous and they don't like you. 476 00:25:45,920 --> 00:25:48,520 Speaker 1: There's always all right man CLSI used to be the 477 00:25:48,640 --> 00:25:52,359 Speaker 1: chief clerk of the Agriculture Committee, where they talked relentlessly 478 00:25:52,840 --> 00:25:58,320 Speaker 1: about the world's safest and most available agricultural system. And 479 00:25:58,600 --> 00:26:03,480 Speaker 1: the fact is we have fed more people better. In fact, 480 00:26:03,640 --> 00:26:06,600 Speaker 1: we went from a problem of malnutrition to over nutrition 481 00:26:07,119 --> 00:26:11,160 Speaker 1: in the last seventy years. And I think that if 482 00:26:11,160 --> 00:26:14,359 Speaker 1: you're on the left, you have to defend big government, 483 00:26:14,359 --> 00:26:16,919 Speaker 1: no matter how stupid it is, and you have to 484 00:26:16,960 --> 00:26:20,159 Speaker 1: attack the private sector, no matter how smart it is. 485 00:26:20,640 --> 00:26:23,680 Speaker 1: When I wrote my book on Defeating Big Government Socialism, 486 00:26:23,720 --> 00:26:26,040 Speaker 1: part of us based on that model that they have 487 00:26:26,119 --> 00:26:29,879 Speaker 1: an absolute need to have a villain, and since the 488 00:26:29,960 --> 00:26:32,919 Speaker 1: villain can't be big government, the villain has to be 489 00:26:33,320 --> 00:26:35,920 Speaker 1: the private sector. But do you want to comment, Steve 490 00:26:36,000 --> 00:26:39,240 Speaker 1: on this whole notion of suing the poultry industry and 491 00:26:39,320 --> 00:26:42,719 Speaker 1: suing the beef producers. You know, you put it so 492 00:26:42,760 --> 00:26:44,879 Speaker 1: well that you know they have to find someone to 493 00:26:44,920 --> 00:26:48,520 Speaker 1: blame other than themselves. And by the way, this is 494 00:26:48,520 --> 00:26:52,199 Speaker 1: something that I find so despicable about this president. You know, 495 00:26:52,280 --> 00:26:54,320 Speaker 1: I'm a fan of believing or not of Harry Truman, 496 00:26:54,359 --> 00:26:56,600 Speaker 1: who was a Democrat, but you all know that he 497 00:26:56,680 --> 00:26:58,760 Speaker 1: had a placard on his desk in the old Office. 498 00:26:58,800 --> 00:27:01,359 Speaker 1: The buck stops here. And with Biden, no matter what 499 00:27:01,440 --> 00:27:04,760 Speaker 1: the problem is, he is always blaming someone else. I 500 00:27:04,800 --> 00:27:06,679 Speaker 1: love this idea that somehow, all of a sudden, the 501 00:27:06,760 --> 00:27:11,280 Speaker 1: companies all got greedy. Now they're not getting more. Companies 502 00:27:11,359 --> 00:27:12,920 Speaker 1: want to make money. They're always going to try to 503 00:27:12,960 --> 00:27:15,359 Speaker 1: make as much money as they can. And when you 504 00:27:15,400 --> 00:27:18,639 Speaker 1: create shortages like this, their prices are going to go up. 505 00:27:18,680 --> 00:27:20,960 Speaker 1: There's no question about it, you know, And so we've 506 00:27:20,960 --> 00:27:24,720 Speaker 1: fallen into this trap. But blaming greedy beef producers or 507 00:27:24,760 --> 00:27:27,479 Speaker 1: the meat packers or the oil companies. That's not going 508 00:27:27,520 --> 00:27:30,800 Speaker 1: to get us anywhere. Well, while you're here, Steve, I 509 00:27:30,920 --> 00:27:34,800 Speaker 1: wanted to change the discussion just a little bit because 510 00:27:34,840 --> 00:27:38,879 Speaker 1: there's always an issue with the Social Security Trust Fund. 511 00:27:39,720 --> 00:27:42,240 Speaker 1: And so my question to you is, instead of maintaining 512 00:27:42,240 --> 00:27:46,400 Speaker 1: the fiction that this trust fund is paying for itself, 513 00:27:46,400 --> 00:27:50,719 Speaker 1: why not adjust taxes and benefits for those after sixty seven, 514 00:27:50,760 --> 00:27:54,760 Speaker 1: as well as inheritance taxes to fully fund Social Security, 515 00:27:54,840 --> 00:27:58,920 Speaker 1: retirement and medicare for retireing so the people who are 516 00:27:59,000 --> 00:28:01,560 Speaker 1: using it would be the ones that would cover it, 517 00:28:01,680 --> 00:28:05,360 Speaker 1: rather than young people who have lower incomes. The thing 518 00:28:05,400 --> 00:28:07,360 Speaker 1: I'm trying to get at here is right now, we're 519 00:28:07,359 --> 00:28:11,520 Speaker 1: supposedly taxing young people into a trust fund and it's 520 00:28:11,560 --> 00:28:14,080 Speaker 1: going to go bust. And so my thought here is 521 00:28:14,160 --> 00:28:17,720 Speaker 1: why not set the taxes up for all the retirees 522 00:28:18,600 --> 00:28:23,800 Speaker 1: so that they are paying for their generation through more 523 00:28:23,920 --> 00:28:29,160 Speaker 1: controlled benefits, taxes and inheritance. Well, you know, the fact 524 00:28:29,400 --> 00:28:31,760 Speaker 1: matter is one of the biggest mistakes we made in 525 00:28:31,760 --> 00:28:34,359 Speaker 1: this country's history. Is thirty or forty years ago when 526 00:28:34,400 --> 00:28:37,679 Speaker 1: we started talking about this idea of creating private personal accounts. 527 00:28:37,960 --> 00:28:40,080 Speaker 1: If we had done this thirty or forty years ago, 528 00:28:40,360 --> 00:28:43,800 Speaker 1: every single American retiring now would have well more than 529 00:28:43,840 --> 00:28:46,720 Speaker 1: a million dollars in their accounts and they'd be getting benefits. 530 00:28:46,880 --> 00:28:49,040 Speaker 1: So so security doesn't pay too much money. It pays 531 00:28:49,080 --> 00:28:52,640 Speaker 1: too little given how much it's taken from workers for 532 00:28:52,640 --> 00:28:56,000 Speaker 1: forty years. And I'm very frustrated by that because the 533 00:28:56,080 --> 00:28:58,520 Speaker 1: Left was opposed to this. The people will get screwed 534 00:28:58,560 --> 00:29:01,240 Speaker 1: the most from this, or the lowest income people. And 535 00:29:01,520 --> 00:29:03,840 Speaker 1: let's let everybody have a piece of the wealth. When 536 00:29:03,840 --> 00:29:06,760 Speaker 1: Reagan came in to the Dow, what hit below at 537 00:29:06,800 --> 00:29:09,680 Speaker 1: eight hundred and now you know, even with the declines, 538 00:29:09,680 --> 00:29:12,920 Speaker 1: we're at thirty two thousand. So why not let people 539 00:29:13,120 --> 00:29:16,719 Speaker 1: become owners. Every American should be an owner in America. Steve, 540 00:29:16,760 --> 00:29:19,320 Speaker 1: I want to thank you for joining us today. I 541 00:29:19,440 --> 00:29:22,520 Speaker 1: know all of us are more knowledgeable from this conversation, 542 00:29:23,000 --> 00:29:26,280 Speaker 1: and I want to mention again your new book Gov. Zillah, 543 00:29:26,640 --> 00:29:30,520 Speaker 1: how the relentless growth of government is devouring our economy 544 00:29:30,880 --> 00:29:34,160 Speaker 1: and our freedom, is available now and if you'd like 545 00:29:34,240 --> 00:29:37,240 Speaker 1: to sign up for Steve's newsletter, please go to Committee 546 00:29:37,240 --> 00:29:45,080 Speaker 1: to Unleash Prosperity dot com. Thank you to my guests 547 00:29:45,120 --> 00:29:47,640 Speaker 1: Stephen Moore and members of my Inner Circle Club for 548 00:29:47,680 --> 00:29:50,680 Speaker 1: their thoughtful questions. If you'd like to become a member, 549 00:29:50,680 --> 00:29:53,840 Speaker 1: please go to new Center Circle dot com and sign 550 00:29:53,920 --> 00:29:57,320 Speaker 1: up for a one or two year membership. Today. News 551 00:29:57,400 --> 00:30:01,800 Speaker 1: World is produced by Ginglish Sweet sixty and iHeartMedia. Our 552 00:30:01,800 --> 00:30:05,840 Speaker 1: executive producer is Guernsey Sloan, our producer is Rebecca Howell, 553 00:30:06,160 --> 00:30:10,400 Speaker 1: and our researcher is Rachel Peterson. The artwork for the 554 00:30:10,440 --> 00:30:14,680 Speaker 1: show was created by Steve Penley. Special thanks to the 555 00:30:14,680 --> 00:30:18,240 Speaker 1: team at Gingwich three sixty. If you've been enjoying news World, 556 00:30:18,480 --> 00:30:21,760 Speaker 1: I hope you'll go to Apple Podcast and both rate 557 00:30:21,880 --> 00:30:25,040 Speaker 1: us with five stars and give us a review so 558 00:30:25,200 --> 00:30:29,000 Speaker 1: others can learn what it's all about. Right now, listeners 559 00:30:29,000 --> 00:30:32,320 Speaker 1: of newts World can sign up for my three free 560 00:30:32,320 --> 00:30:37,080 Speaker 1: weekly columns at Gingwich three sixty dot com slash newsletter. 561 00:30:37,880 --> 00:30:40,240 Speaker 1: I'm Newt Gingrich. This is newts World.