Economist shares why Bidenomics keeps him up at night

DON'T KNOW WHAT IT MEANS. THAT WAS EARLY THIS MORNING. HERE WE ARE LATE AFTERNOON, FOLKS I DON'T KNOW WHAT "BIDENOMICS" MEAN. MIDDLE IN, LOWER OUT, UP OR DOWN? I'M CALLING FOR HELP FROM MY PAL STEVE MOORE WILL HELP ME FIGURE IT OUT, FREEDOMWORKS, COMMITTEE TO UNLEASH PROSPERITY, "GOVZILLA," HIS RADIO SHOW, MOORE MONEY. IN ALL HONESTLY, WE HAVE A SOUND, HERE IS WHAT KARINE JEAN-PIERRE WHITE HOUSE

PRESS SECRETARY HER RENDITION OF WHAT "BIDENOMICS" SUPPOSEDLY MEANS. TAKE A LISTEN. >> AMERICANS FEEL BETTER ABOUT THEIR PERSONAL FINANCES. THAT IS IMPORTANT. WHEN YOU THINK ABOUT WAGES ARE GOING UP. WHEN YOU THINK ABOUT REALLY GOOD PAYING MILLIONS OF UNION JOBS THAT HIS POLICIES ARE GOING TO CREATE. I MEAN LOOK, WE BELIEVE "REAGANOMICS" DOESN'T WORK. WE'VE BEEN VERY CLEAR. WE BELIEVE TRICKLE DOWN, TRICKLE DOWN ECONOMY DOESN'T

WORK. IT HAS NOT WORKED. THAT HAS SHOWN TO BE THE CASE FOR DECADES NOW. LARRY: YEAH, SURE IT IS. SO I JUST WANT TO, COURTESY OF ONE OF OUR ACE PRODUCERS WHEN RONALD REAGAN SLASHED TAX RATES, BEATING UP ON "REAGANOMICS," RIGHT? THE FIRST YEAR AFTER THE TAX CUTS THE ECONOMY GREW BY 4.6%. THE SECOND YEAR AFTER THE TAX CUTS THE ECONOMY GREW BY 7.2%. IN JOE

BIDEN'S SECOND YEAR IN OFFICE THE ECONOMY GREW BY 0.9% AND IT IS HEADED FOR ABOUT 1% STAGNATION THIS YEAR AND, I DON'T UNDERSTAND, MIDDLE IN, LOWER UP, UP OR DOWN, WHAT ARE THEY TALKING ABOUT? >> YEAH, I LOVE THOSE ATTACKS AGAINST "REAGANOMICS." IT WAS SUCH A CLOSE ELECTION, REMEMBER IN 1984 WHEN I THINK REAGAN WHAT WAS IT 49 STATES? IN BIGGEST LANDSLIDE EVER. I THINK THE

AMERICAN PEOPLE REALLY LIKED WHAT HAPPENED IN "REAGANOMICS." YOU'RE RIGHT THE ECONOMY BOOMED. WHERE TO START. THIS REALLY STARTED UNDER OBAMA WHERE YOU HAD EIGHT YEARS OF A TERRIBLE ECONOMY. LET'S FACE IT, THE ECONOMY PERFORMED REALLY POORLY WITH THE MASSIVE TAX-AND-SPEND REDISTRIBUTE. WE GET THIS NEW PRESIDENT DONALD TRUMP. BY THE WAY AS YOU KNOW, LARRY I WROTE THE BOOK CALLED TRUMP-NOMICS. WHICH YOU HAD A BIG PART

ABOUT. WHAT WAS THAT ABOUT? CUTTING TAX RATES, DEREGULATING THE ECONOMY, BETTER TRADE DEALS. IT WAS ABOUT PRODUCING AMERICAN ENERGY. REMEMBER WE USED TO TALK ABOUT TRUMP MAKING AMERICA ENERGY INDEPENDENT WHICH HAPPENED. WHAT DID WE HAVE? WE HAD A ECONOMIC BOOM UNDER TRUMP. A 6,000-DOLLAR PER HOUSEHOLD INCREASE IN REAL INCOMES WHICH IS A PHENOMENAL PERFORMANCE. THEN BIDEN COMES IN, HE DOUBLED DOWN OWN OBAMA-NOMICS WITH MASSIVE AMOUNTS

OF SPENDING AND DEBT. HOW OFTEN DO YOU HEAR JOE BIDEN TALK ABOUT WEALTH CREATION? HE DOESN'T. HE TALKS ABOUT WEALTH REDISTRIBUTION. THE OTHER DAY KARINE TALKED ABOUT THEY THINK PROFITS ARE TOO HIGH. PROFITS ARE TOO HIGH. LARRY: THEY ARE AGAINST PROFITS. >> LARRY YOU WERE THE ONE WHO TOLD ME, YOU MADE THIS SAYING FAMOUS, THAT PROFITS ARE THE MOTHER'S MILK OF THE STOCK MARKET. LARRY: YES.

>> HOW WILL YOU HAVE A THRIVING ECONOMY WITHOUT PROFITABLE BUSINESSES. LARRY: THE LIFEBLOOD OF THE ECONOMY. YOU CANNOT HAVE A CAPITALIST ECONOMY WITHOUT PROFITS ATTACKING PROFITS YOU'RE EXACTLY RIGHT. THE PROOF IN THE PUDDING IS THE EATING. UNDER BIDEN, ALL OF HIS SPENDING, TAXING REGULATING THIS IS "BIDENOMICS." "BIDENOMICS" IS SPENDING, TAXING REGULATING. "BIDENOMICS" IS WHAT STEVE FORBES CALLS MODERN SOCIAL I THROUGH THE WELFARE REGULATORY STATE. NEWT

GINGRICH CALLS IT BIG GOVERNMENT SOCIALISM. THE POINT IS HE HAS 1% GROWTH. THE CONSUMER PRICE INDEX HAS GONE UP 15.6% UNHIM. REAL WAGES CONTINUE TO FALL. I THINK THEY'RE DOWN 26 STRAIGHT MONTHS. THAT IS "BIDENOMICS." IN OTHER WORDS IT DIDN'T WORK. DIDN'T WORK. THE PROOF OF THE PUDDING IS IN THE EATING DID NOT WORK. THAT IS THE ONE THING THEY WON'T TALK ABOUT. >> 71% OF

AMERICANS THINK THE ECONOMY IS HEADED IN THE WRONG DIRECTION. UNDER TRUMP 71% OF AMERICANS SAID THE ECONOMY WAS HEADED IN THE RIGHT DIRECTION. SO I DON'T WHERE THEY GET THIS IDEA PEOPLE ARE FEELING BETTER ABOUT THEIR ECONOMIC CONDITION. FOREI THINK THE NUMBER IS 22 OUT OF THE LAST 25 MONTHS THE CONSUMER PRICE INDEX HAS EXCEEDED THE AMOUNT OF INCREASE IN WAGES AND SALARIES. THAT MEANS PEOPLE

GET POORER EVERY MONTH. PEOPLE ARE, YOU SAID IT VERY WELL. LARRY, PEOPLE ARE KIND OF ANGRY RIGHT NOW ABOUT WHAT IS GOING ON IN THE COUNTRY. LARRY: THEY'RE NOT HAPPY. >> THEY'RE FEELING NOT CONFIDENT ABOUT THE DIRECTION OF THE ECONOMY BECAUSE THEY HAVE BIG DEBT THEMSELVES. YOU GOT A 6 TRILLION-DOLLAR NATIONAL DEBT. GET BACK TO, GET BACK TO "REAGANOMICS" AND TRUMP-NOMICS, IT WORKED. LARRY: SPEAKING OF

71%, COINCIDENT ALLEY, WE HAVE A CHART, THERE IS A NEW YORK FEDERAL RESERVE MODEL WHICH PREDICTIONS THE ECONOMY BASED ON THE YIELD CURVE, TREASURY YIELD CURVE. >> YEAH. LARRY: AND SHORT RATES ARE SO MUCH HIGHER THAN LONG RATES TODAY, THIS MODEL, I DON'T FLOW WE MAY OR MAY NOT HAVE A CHART TO PUT UP ON THE FULL SCREEN. THE MODEL IS NOW PREDICTING THROUGH MAY OF

2023 A 71% PROBABILITY OF RECESSION IN THE NEXT YEAR. YOU CAN'T FORECAST THIS STUFF WITH PRECISION. I DON'T KNOW. THE MODEL ITSELF HAS A FABULOUS TRACK RECORD. IT IS NOT MY MODEL. IT IS A NEW YORK FED MODEL BY A VERY SMART GUY TEACHING ECONOMICS IN UPSTATE NEW YORK. THE POINT AGAIN, YOU'RE ROCK BOTTOM GROWTH, STAGNATION, YOU STILL HAVE HIGH INFLATION, PEOPLE HAVE SUFFERED THROUGH THAT

REAL WAGE DECLINE AND THE PROBABILITY OF RECESSION IS VERY HIGH. REAGAN DIDN'T HAVE A PROBABILITY OF RECESSION. REAGAN HAD MASSIVE GROWTH. I BELIEVE FROM '82 THROUGH '89 REAGAN'S TERM, ECONOMY GREW FIVE 1/2, 6% PER YEAR ON AVERAGE. WE'RE NOWHERE NEAR THAT NOW. WHO IS TALKING ABOUT BIDENNOMICS. >> I'M NOT GOING TO CALL IT RECESSION BECAUSE I DON'T KNOW WHERE THE ECONOMY IS HEADED. I DO KNOW

THIS, IF YOU LOOK AT ALL THE POLICIES BEING PUT IN PLACE THEY'RE ALL WEIGHTS ON THE BACK OF THE ECONOMY. NOW YOU AND I BELIEVE THIS IS AN INCREDIBLY RESILIENT ECONOMY. WE HAVE GREAT BUSINESSMEN AND WOMEN WHO FIND WAYS TO GROW THE ECONOMY EVEN THOUGH GOVERNMENT DOES EVERYTHING THEY CAN TO IMPEDE IT BUT MY GOSH, THINK OF HOW WELL WE WOULD BE DOING RIGHT NOW. THIS

IS WHAT KEEPS ME UP AT NIGHT. IF WE STUCK WITH TRUMP'S POLICIES YOU PUT IN PLACE WE WOULDN'T BE 1% GROWTH. WE WOULD BE TALKING ABOUT 3% GROWTH. WE WOULD BE TALKING ABOUT AN ECONOMIC BOOM. COVID ENDED TWO YEARS AGO. THEY'RE STILL ENDING LIKE WE'RE IN A ECONOMIC CRISIS. WE'RE NOT. WE SHOULD BE BOOMING. THE PROBLEM IS, LARRY WHEN WE GET IT WRONG IN AMERICA WHICH

WE'RE GETTING IT WRONG NOW UNDER BIDEN THE REST OF THE WORLD GOES TO HELL AS WELL. LARRY: LAST POINT THAT I LOVE USA GROWING AT 1%, CANADA IS GROWING AT 3%. EVEN JUSTIN TRUDEAU -- >> THAT IS PRETTY BAD, WE'RE MORE SOCIALIST THAN CANADA THAT IS PRETTY BAD. LARRY: STE