Latest / The Mark Simone Show / Mark interviews Breitbart Business News Editor John Carney.

Transcript

Mark interviews Breitbart Business News Editor John Carney. · The Mark Simone Show

• 0:00
  Speaker 1: Welcome back to the Mark Simone Show.
• 0:02
  Speaker 2: Live from the wo R Life Back Studios.
• 0:07
  Speaker 1: Oh, we bring you the smartest people around Now. John
• 0:10
  Speaker 1: Karney is the business editor editor of the The Breitbart
• 0:15
  Speaker 1: Business Digest. Now you should sign up for this and
• 0:18
  Speaker 1: get it every morning. The Breitbart Business Digest is the
• 0:22
  Speaker 1: best out the Scott Bessett, Treasury Secretary, says the first
• 0:25
  Speaker 1: thing he reads every morning. Larry cudlows that it's the
• 0:27
  Speaker 1: first thing he looks at every morning, The Breitbart Business Digest.
• 0:31
  Speaker 1: Just go to Breitbart dot com and go to where
• 0:34
  Speaker 1: it says newsletters and sign up with your email. It's free.
• 0:37
  Speaker 1: The Breitbart Business Digest the editor John Carney, John Carney,
• 0:41
  Speaker 1: how you doing.
• 0:43
  Speaker 2: Thanks for having me Mark.
• 0:45
  Speaker 1: Hey, great to have you in the perfect time to
• 0:46
  Speaker 1: have you. Because the job numbers came out, we lost
• 0:50
  Speaker 1: twenty three thousand jobs in July. That what happened.
• 0:55
  Speaker 2: Yeah, this is probably one of the most unexpected jobs
• 0:59
  Speaker 2: reports in recent memory. So we lost twenty three thousand
• 1:05
  Speaker 2: jobs the in turn, but the product sector actually added
• 1:11
  Speaker 2: thirty thousand jobs. What happened was government payrolls, particularly local
• 1:16
  Speaker 2: education payrolls, shrank by nearly fifty thousand jobs. Add that
• 1:21
  Speaker 2: together and you end up with this twenty three thousand
• 1:24
  Speaker 2: job loss. In a net we also lost jobs, however,
• 1:29
  Speaker 2: in leisure and hospitality, particularly in restaurants and bars. We
• 1:34
  Speaker 2: lost jobs in retail as well, but we gained a
• 1:38
  Speaker 2: lot in construction, durable goods. Manufacturing was really strong. And
• 1:44
  Speaker 2: despite losing all of those jobs, by the way, the
• 1:48
  Speaker 2: unemployment rate went down to four point one percent, which
• 1:51
  Speaker 2: is super low. This is a report that has a
• 1:54
  Speaker 2: lot of people scratching their heads.
• 1:55
  Speaker 1: Well, why would we lose all these restaurant jobs so
• 1:58
  Speaker 1: people have less money? This the reason.
• 2:01
  Speaker 2: No, I think what happened was actually the World Cup,
• 2:06
  Speaker 2: so I've added a bunch of jobs while people needed
• 2:10
  Speaker 2: to you know, there were people and by the way,
• 2:13
  Speaker 2: in leisure and hospitality, one hint that that's what happened
• 2:16
  Speaker 2: is we actually lost a lot of jobs in a
• 2:20
  Speaker 2: category they call it that includes spectator sports, so in
• 2:24
  Speaker 2: other words, stadiums, bars, restaurants had hired a lot of
• 2:28
  Speaker 2: people to deal with all of the people coming into
• 2:31
  Speaker 2: the country, people traveling for the World Cup that ends
• 2:35
  Speaker 2: a couple of weeks into July. A lot of these
• 2:37
  Speaker 2: people are let go and I think That's explains a
• 2:41
  Speaker 2: huge part of what happened in leisure and hospitality in July.
• 2:47
  Speaker 1: And the weather could be affected, couldn't We had that
• 2:49
  Speaker 1: terrible heat wave we had that week where you couldn't
• 2:51
  Speaker 1: go out the air was so dirty here, something like
• 2:54
  Speaker 1: that could affect it, right.
• 2:55
  Speaker 2: Yeah, No, I mean definitely the Northeast we had those
• 2:57
  Speaker 2: you know, the Canadian smoke coming down with the weather
• 3:02
  Speaker 2: was very awful. That probably contributed to it. I actually
• 3:05
  Speaker 2: think weather played an effect in the education numbers too.
• 3:11
  Speaker 2: So normally when summer comes we let go of a
• 3:14
  Speaker 2: lot of people, but that's usually in June people, you know,
• 3:18
  Speaker 2: payrolls contract in education what made it, but and seasonal
• 3:25
  Speaker 2: adjustment takes care of that, so it doesn't actually show
• 3:27
  Speaker 2: up as like some great depression because a bunch of
• 3:30
  Speaker 2: teachers lost their jobs. But if the people got fired
• 3:33
  Speaker 2: in July instead, then that wouldn't be as seasonally adjusted
• 3:39
  Speaker 2: taking care of I think what happened was at least
• 3:42
  Speaker 2: I know in the you know, our area in the Northeast,
• 3:45
  Speaker 2: we had a really heavy winter and much of the
• 3:48
  Speaker 2: country did, and a lot of the school years actually
• 3:51
  Speaker 2: got extended because there were so many snow days that
• 3:55
  Speaker 2: it's possible that that the teachers who would normally and
• 3:58
  Speaker 2: not just teachers, but custodians, administrators, people who worked in
• 4:04
  Speaker 2: cafeterias in schools. A lot of the people who would
• 4:07
  Speaker 2: normally be let go over the summer weren't let go
• 4:11
  Speaker 2: in June, were let go in July. So it showed
• 4:13
  Speaker 2: up as this huge loss that I think is really
• 4:17
  Speaker 2: just what economists called residual seasonality and not some big
• 4:22
  Speaker 2: change in the economy.
• 4:23
  Speaker 1: Interesting. Hey, John Carney, a president Trump, one of his
• 4:27
  Speaker 1: goals when he came back into office was to bring
• 4:29
  Speaker 1: back manufacturing. How's that going.
• 4:33
  Speaker 2: It's actually going very well. So, first of all, the
• 4:36
  Speaker 2: most recent data we were just talking about, we added
• 4:38
  Speaker 2: eighteen thousand durable goods manufacturing jobs in July. That is
• 4:43
  Speaker 2: a lot. That's a big pickup in hiring of people
• 4:47
  Speaker 2: getting jobs doing durable goods manufacturing. And if you look
• 4:51
  Speaker 2: at numbers that were released earlier this week, they showed
• 4:56
  Speaker 2: that output is up by a lot. It was contracting
• 5:00
  Speaker 2: under Biden. So the total amount of manufactured goods, and
• 5:03
  Speaker 2: this is inflation adjusted, it's not a difference in prices.
• 5:06
  Speaker 2: The total amount of manufactured goods was falling under Biden
• 5:11
  Speaker 2: in the US, and it is now climbing rapidly. Another
• 5:15
  Speaker 2: one is productivity, So you know, in other words, per hour,
• 5:19
  Speaker 2: how much stuff our employees at in manufacturing turning out.
• 5:24
  Speaker 2: That's on the rise a lot. And in addition to that,
• 5:27
  Speaker 2: the hours worked in manufacturing has been on the rise.
• 5:31
  Speaker 2: So this is a rare sort of triple good news
• 5:36
  Speaker 2: for the manufacturing sector that only happens around I look
• 5:40
  Speaker 2: through history, there's only been around thirteen percent of quarters
• 5:44
  Speaker 2: going back into the nineteen sixties that we've actually had
• 5:49
  Speaker 2: all three productivity, hours and output rising at the same time.
• 5:53
  Speaker 2: And as I said, all of those were falling when
• 5:55
  Speaker 2: Biden was president. So Trump's doing a good job. Manufacturing
• 5:59
  Speaker 2: is coming back now.
• 6:01
  Speaker 1: One reason they moved to manufacturing. One reason they would
• 6:04
  Speaker 1: do that is you could get very cheap labor in China,
• 6:06
  Speaker 1: Vietnam or so. But with the AI and robots and
• 6:09
  Speaker 1: all that, you mean, it's going to be just as
• 6:11
  Speaker 1: cheap to do it here.
• 6:14
  Speaker 2: So a few things. One, yes, some of it was
• 6:17
  Speaker 2: driven by the desire for cheaper labor abroad. Another was
• 6:22
  Speaker 2: the fact that China had told a lot of businesses
• 6:26
  Speaker 2: if you don't make your stuff here, we won't give
• 6:29
  Speaker 2: you access to the Chinese consumer. We'll lock you out
• 6:32
  Speaker 2: of our market. And the US didn't make any reciprocal promise,
• 6:37
  Speaker 2: meaning if you built your factory in China, you could
• 6:40
  Speaker 2: sell to the US and you could sell to China.
• 6:42
  Speaker 2: If you built your factory in America, you could sell
• 6:45
  Speaker 2: only in America and not to China. So that meant
• 6:47
  Speaker 2: a lot of people built factories in China. Well, our
• 6:50
  Speaker 2: tariffs are now offsetting that policy, so in other words,
• 6:54
  Speaker 2: it's no longer a free lunch just to build in
• 6:57
  Speaker 2: China's convincing a lot of people, and then China has
• 7:01
  Speaker 2: also proven that they're not reliable market. You build a
• 7:05
  Speaker 2: factory in China and you say I'm going to sell
• 7:08
  Speaker 2: my stuff to China, and suddenly you look around and
• 7:10
  Speaker 2: you find there are knockoffs of everything you thought you
• 7:14
  Speaker 2: had the intellectual property to being sold by a million
• 7:17
  Speaker 2: other manufacturers all over China. So a lot of people
• 7:20
  Speaker 2: are saying, Okay, the Chinese market is not going to
• 7:23
  Speaker 2: be as good as we thought, and the and US
• 7:26
  Speaker 2: policy is no longer being complacent when it comes to
• 7:30
  Speaker 2: China basically extorting businesses in having to build things in
• 7:34
  Speaker 2: China rather.
• 7:35
  Speaker 1: Than the US. So let me ask you about the FED.
• 7:40
  Speaker 1: Kevin Walsh. We all wanted to see him become the
• 7:42
  Speaker 1: FED chairman, and how's he doing so far?
• 7:46
  Speaker 2: He's doing really well. He's gotten a lot of pushback
• 7:52
  Speaker 2: from pundits, from some Wall Street economists because he's changing
• 7:57
  Speaker 2: the way the FED works. He is no longer. His
• 8:01
  Speaker 2: idea is that FED should be less a focus of
• 8:04
  Speaker 2: all of our attention. That, you know, because the FED
• 8:08
  Speaker 2: played such a big role in the years after the
• 8:10
  Speaker 2: financial crisis, and then also in our response to COVID
• 8:14
  Speaker 2: that we became two and the FEDS under Jerome Powell
• 8:18
  Speaker 2: started holding a press conference every week where he stands
• 8:21
  Speaker 2: up at a not every week, sorry, every meeting, you know,
• 8:24
  Speaker 2: every six weeks, but he stands up at a podium.
• 8:27
  Speaker 2: He looks like a politician. I think that worsh is
• 8:31
  Speaker 2: eventually getting due away with the every meeting press conference.
• 8:37
  Speaker 2: There's rumors that he wants to reduce the amount of
• 8:40
  Speaker 2: FED meetings. They hold eight every year. They could get
• 8:43
  Speaker 2: away with six, They could do as little as four.
• 8:45
  Speaker 2: I think under the law the UH he wants us
• 8:50
  Speaker 2: to focus more on what's going on with the economy
• 8:54
  Speaker 2: rather than what is the FED going to do? Uh
• 8:57
  Speaker 2: in reaction to what's going on in the economy. He
• 8:59
  Speaker 2: thinks we're who focused on that, and we didn't used
• 9:02
  Speaker 2: to be. Yes, you know, people paid attention to what Alan,
• 9:04
  Speaker 2: Greenspan and Bolker were doing, but it wasn't as central
• 9:09
  Speaker 2: as it has become in the last twenty years. And
• 9:13
  Speaker 2: so Worsh wants to move back something to what we
• 9:16
  Speaker 2: had before the financial crisis, but so many but we've
• 9:19
  Speaker 2: been doing it this way for so long that it's
• 9:21
  Speaker 2: going to rub some people.
• 9:23
  Speaker 1: The wrong way.
• 9:23
  Speaker 2: They grew up in a sense with the FED being
• 9:27
  Speaker 2: central to everything, and moving away from that is going
• 9:30
  Speaker 2: to have some growing pains.
• 9:31
  Speaker 1: Yeah, that's your own Pola. It was a lot of
• 9:34
  Speaker 1: Anthony Fauci and him with his press conferences and.
• 9:38
  Speaker 2: What and still his refusal to step down. He's still
• 9:42
  Speaker 2: at the Federal Reserve. That is unprecedented. That hasn't happened
• 9:47
  Speaker 2: since the nineteen forties, where a former chairman stayed on
• 9:50
  Speaker 2: and by the way, the former chairman who stayed out
• 9:52
  Speaker 2: in the nineteen forties, he was asked to stay on
• 9:55
  Speaker 2: to sort of help with the transition. Clearly, Trump hasn't
• 9:58
  Speaker 2: asked Powell to stay on. Pal just refuses to go
• 10:01
  Speaker 2: because he does have Anthony Fauci syndrome. He thinks he's
• 10:04
  Speaker 2: absolutely central to everything that happens.
• 10:07
  Speaker 1: Well, what does he do? He comes to the meetings,
• 10:09
  Speaker 1: He comes in every day, and.
• 10:11
  Speaker 2: Yeah, I don't know, you know, does he come in
• 10:13
  Speaker 2: every day? Probably not, but maybe I don't know, you know,
• 10:18
  Speaker 2: if he has a lot else going on. But yeah,
• 10:20
  Speaker 2: he goes to the meetings, He participates. I will say, admirably,
• 10:25
  Speaker 2: he has stayed out of the spotlight. He is not
• 10:28
  Speaker 2: sort of run, you know, running a shadow fed chair
• 10:32
  Speaker 2: operation where he's speaking to the press and undermining war.
• 10:35
  Speaker 2: So that's good. Yeah, you know, he he is not.
• 10:38
  Speaker 2: He could, in other words, be a lot worse. He's there,
• 10:43
  Speaker 2: but he seems to be playing a background role right now,
• 10:45
  Speaker 2: which is for the good.
• 10:46
  Speaker 1: Did they try the the Larry cudloaw tactic move his
• 10:49
  Speaker 1: parking space three blocks away or something like that?
• 10:52
  Speaker 2: You know, I have put in some inquiries to Kevin
• 10:56
  Speaker 2: Worsh's office to ask and they haven't responded. I'm sure
• 11:01
  Speaker 2: there Worshes, you and I and maybe Larry Cudlow would
• 11:05
  Speaker 2: like to you know, see how I'll pay a little
• 11:09
  Speaker 2: bit of a maybe a convenience price for his stubborness
• 11:14
  Speaker 2: and stay on. But I think worsh is probably a
• 11:17
  Speaker 2: little too magnanimous to actually do that. And you know
• 11:21
  Speaker 2: is you know, have bigger fish to fry than you know,
• 11:25
  Speaker 2: worrying about where Powell's parking space is. But Kevin, if
• 11:28
  Speaker 2: you're listening, you know it still might be a good
• 11:31
  Speaker 2: idea move about to the sea lot, you know, the
• 11:35
  Speaker 2: one furthest away from the office spot.
• 11:38
  Speaker 1: I like that. Well, John Carney great as always. Everybody
• 11:41
  Speaker 1: subscribed to the Bright Part Business Digest. It is the
• 11:44
  Speaker 1: best you get it. It's free right every morning it'll.
• 11:48
  Speaker 2: Come to absolutely free every morning, comes out five days
• 11:51
  Speaker 2: a week, and Friday's are special. If you subscribe today,
• 11:55
  Speaker 2: we do a kind of fun run through of the
• 11:58
  Speaker 2: week and at the very end there's a bit of
• 12:00
  Speaker 2: history that you probably haven't heard about. Last week we
• 12:04
  Speaker 2: wrote about the first US patent and what happened to
• 12:09
  Speaker 2: that patent owner. He didn't go well for him. He
• 12:12
  Speaker 2: had a big invention that it didn't go well. So
• 12:14
  Speaker 2: you know, subscribe today. Friday is a great day to subscribe.
• 12:17
  Speaker 2: H And it's absolutely free.
• 12:19
  Speaker 1: It's really interesting. Maybe just go to Breitbart dot com,
• 12:22
  Speaker 1: then go to newsletters and sign up for the Breitbart
• 12:25
  Speaker 1: Business Died just free. It'll come write to your email.
• 12:28
  Speaker 1: John Carney brilliant is always. Thanks for being with us,
• 12:31
  Speaker 1: Thanks for having me, Matte, take care. Hey, don't forget
• 12:34
  Speaker 1: coming up at noon. Buck and Clay a great show.
• 12:37
  Speaker 1: And you know at nine o'clock every night, Jimmy Fhala,
• 12:40
  Speaker 1: what a funny show every night at nine. Right here
• 12:43
  Speaker 1: on seven to ten wor