Transcripts: Bannon’s War Room. Dave Brat: The Decline of Our Nation. October 19, 2022.
Topic: The Decline of Our Nation. Guest, Dave Brat. October 19, 2022.
Transcripts from Bannon’s War Room on Rumble: Dave Brat: The Decline of Our Nation.
Published October 19, 2022.
MSNBC CLIP:
News Anchor
How do the British solve a problem like Liz Truss?
Guest
Well, they could solve the problem of Liz Truss by getting somebody besides Liz Truss to take that job and indeed there's a lot of speculation going on in the UK that, that might happen. But in the meantime, they're stuck with her. And as you know, they walked back, they’ve walked back now much of the economic program that they first unveiled just a few weeks ago, change the chancellor of the exchequer and so on. But fundamentally, the British economy is a weak economy, and they have some real structure and performance issues that they have to deal with. And this chart you can see is really giving you the sort of the punch line, so to speak, which is that real wages after you adjust for inflation in the UK have not gone up since before the great financial crisis.
They went down, they kind of came back up a bit and now with inflation in the UK as well, they’re right back where they started and you can see on the red line, our real wages which are nothing to brag about compared if you went back further in history, but at least we got up to about a 15% real wage income, real wage increase before that red line turned down, which is really inflation, not so much wages. And so, why is this happening? It's happening really fundamentally because Britain has had suffered from low investment. You can see on the left, the pace of their investment versus the pace of our investment, and it suffered as a result of that, low productivity. Productivity, which is how much each worker produces, is kind of the Holy Grail of economic performance. Because without productivity growth, you really can't have wage growth. And so you can see again their productivity growth rate it was decent until around the financial crisis, really kind of flat lined.
Ours again, nothing absolutely nothing fantastic in our history but moving up. And the consequence of all that is you can see on this last chart here, is their growth rate has been really slow. And again, you can see if you go back before the financial crisis, the US Germany and the UK…
END of Clip
Steve Bannon
Dave Brat, they’re trying to bring charts in, you've been the guy what a year ago told us, hey productivity, Gordon's analysis of productivity is the key is the Holy Grail. Why is misleading this both on the wages because he doesn't mention the Trump thing, and then about productivity, sir.
Dave Brat
Yeah, well, he kind of opens with UK's got a week, structural economy. Well, so does the US and those graphs you know, he talked about, 15 percent increase in wage rates that's over 20 years. So yeah, 15 percent divided by 20 then you’re less than 1% in wages and at the end of all those charts, it looks like they're all going up steady. Right now, we're in a recession.
I didn't see any recession on those charts with zero percent, GDP growth, or negative - GDP growth. And then investment, why this really matters is going forward, we're going to see the real economy, not all this financialization Wall Street, talk all day every day. And there's going to be a resorting there to how many people could be in that sector. We need more people making stuff and supply chains coming back from China, manufacturing here. But beside that one the term investment, right. The left has hijacked that.
The administrative state now calculates all these investments. What is investment? If you're doing green stuff that's not productive but it's rent-seeking behavior, where all the money goes through DC, are we seriously going to call that investment? So, we have major work to do and that he did say rightly that productivity is the Holy Grail, but his productivity graph was going straight up. And so, I got a few charts and people just want to see a few…
Steve Bannon:
We're going to, hang on and we're going to do that after the break, just hang with us. Also, the key thing about the wages, the wages, the graph was, it's really Trump's. In Trump, we had the real wage growth, right? Because it's basically zero inflation, and I think he had 11% wage growth among high school graduates versus college, blue collar workers versus white collar. So, the Golden Age, they talk about is the Golden Age of Trump in 18, and particularly 19, before the CCP virus hit us.
Brat, hit me with your chart. Walk us through, we got a couple minutes on this side. I’m going to hold you on the other side. Walk me through your charts to counter Steve. Steve Rattner is running for Secretary of Treasury right now. I'm putting Brat on the short list for Secretary of Treasury or a head of the National Economic Council under President Trump when Trump wins for the third time. So, Brat, give me some charts, do your audition.
Dave Brat:
Yeah, yeah, thanks for that pressure, very good. If you want to get America back, right? Here's the chart, just slap them up. I think you got GDP growth first.
This is the measure of human welfare. Look at the far left, we start at six back in the 60s. Six percent GDP growth. Look at the far right, you end up in 2022 down at 2% GDP growth, after Obama and whatever transforms America as you know it. Now we're at zero. Now we're in a recession, it's going to be harder than a soft landing. There is America for the last 50 years, a downward decline. If you want to fix that, you got to get business back here. You got to get kids studying again, instead of by doing pronoun studies and all this cultural junk.
Next chart. This is roughly the same thing you're looking at. Look at the far left. This is productivity. This is what Rattner didn't show you, is anything defined on the vertical axis to go over to the lab. There's productivity change. 6%, which is almost perfectly aligned with six percent GDP growth on the last chart.
That's as Rattner said, that is right now. Look, what's happened to labor productivity and real hourly wages compensation over time by far right over there, you’re back down to 1% or 2%.
And now you’re lower….
Steve Bannon:
I'm going to hold you through break. BREAK
Brat, what you're doing here is quite important because we're bringing it back to the content of why this is important and why you have to take your weekend and work a phone bank, why you have to get out the vote, why you have to make sure you volunteer, to Melody Jennings’ or Cleta Mitchell’s or the RNC. You pick it. It's a free country but we need you at the ramparts doing something.
You got to participate; you must be part of this. This is all yours. You're doing this, not Trump, not Tucker Carlson. Not Steve Bannon, not Sean Hannity, not Ron DeSantis, It's you, it's you. But to show why I want to go back Brat, walk me through those charts. You see this better than anything shows, you, the manage decline of our nation. Dave Brat, walk me through those charts and then press forward.
Dave Brat:
And this is in contrast with Rattner’s graph that he put up and the only reason I bring that up is because they will not focus in on these things. Because the administrative state has totally failed to produce any good outcomes. And so, I know I can be a downer with all these stats, but in faith you had the Cardinal on yesterday. Jesus out of, Loaves and Fishes can produce, the American people can produce again in faith. We can turn this around, but it will take a couple of years. And so, first off you see, the GDP graph, the blue with a yellow line, starting at the far left, that six percent GDP growth coming out of the war.
At the far left, look at that yellow line. We're growing at six percent GDP per capita that's huge. And if you haven't done percentage growth over time you know your money in the bank growing at 6 is way better than growing at the far right of the graph growing at 2%. And now we're growing at negative, right, we're in a recession, the economy is actually shrinking.
And again, economic growth is key and one of the things, the left is convinced a lot of Americans think that there's a fixed pie. There is not a fixed pie. Everyone in this country from kids in the inner city to kids out in the rural farmland, you can all get rich. There's no upper bound of this country’s greatness. And so how do you do that?
The answer is to next graph, productivity growth. And here we get the manage decline also of K to 12 education which is totally failed to achieve outcomes, higher ed which is just cultural Marxism at present. And we got to do better. So, at the far left again, you see 6% labor productivity growth, the amount of stuff you make per hour and that roughly is GDP per capita. And you see it reflected also there in the light green. real hourly compensation or wages and salaries. And the amount you get paid to the amount you make, is the amount you get paid and at the macro level, right, real national output is approximately real national income. And so that's why you got to make stuff and the fire up, right of that graph. You see next graph,
but I dig into it that productivity a little bit more and you see England with the well that one, there's the manage decline to the country to that's the real interest rate managed to climb for 40 50 years down, down down at the bar, right. You see, zero percent federal funds rate for a decade which created the 07-08 financial crisis, and this financial crisis. So again, the administrative state managed failure, not only declined, but the total failure. We have to reignite our faith in these institutions and we have to insist the people. In charge and are responsible for outcomes.
Next one is productivity graph with the US and England, the purple and the green bars.
Up at the top is the United States after the war, fifty to seventy-two and there's your productivity growth. The green peace is called total Factor Productivity. That's the most important thing, right? And just thank you know, Einstein and the brain brain coming over here with the ideas, the smartest people in the world. If you haven’t Googled that, that's a great story. If you look at the bottom of those farm for buyers of the US. later the green has almost disappeared. And similarly, the bottom, four bars are the UK, England coming out of World War II, they had nothing, and their productivity growth was huge.
So, you can do this starting from nothing. And at the bottom, you'll see, there's no green there either. Their administrative state is focused on all the wrong things and have not focused on UK production and ideas, and the university. And the state can play a role. It used to in France. France had world-class engineering science, Germany was known for it but they're collapsing.
They're not focusing on the basics, and neither are we right now. And so, all of our resources, when our government officials, Congress, folks, whatever, go to spend money in economics, called opportunity cost, you got to make sure that next dollar they spend is spent on the most important thing and if it's not, it's a wasted dollar. So that that is some heavy heavy lifting. I hope we get serious coming up this year and realize it next year.
Steve Bannon:
Yep, you remember from Bloomberg the other day, this thing called fiscal domination that is easily a political class of all these countries just been spending and the Central Bank of Tokyo to the ECB, European Central Bank, to the Bank of England, to the Bundesbank and to the Federal Reserve have funded it.
They’ve just printed money. Those days are over it. Particularly from the great reset. I think that's 50 trillion dollars of debt that have gone on these countries. It can't continue. Now the interest rates are not going to be negative or zero, it's going to wipe out, we're about to wipe out the generation under 35.
Dave, a how do they, how do people get you at Liberty with your Dean of Business and find out more about the school? And how do people get to the charts on your social media?
Dave Brat:
Yeah. Thanks so much. Steve. Yeah. Brat Economics on GETTR and I should have, I'll post another graph. But if you want to see a contrast, we've exported our productivity to China over the past 20 years, right. We got cheap stuff, but we didn't invest in our own people or infrastructure. And so now we're paying the price and China's collapsing right now. So, we're going to have to get our ducks straight through to obtain productivity for the next generation of kids.
Steve Bannon:
We either take action and drive this or it's going to be forced upon us. You know, Liz Truss, she tried to go back to the old Thatcher/Reagan playbook. That can work back in the old days, it ain't going to work now. You've got to first off, get control of spending. You got to get control of this debt. You got to get control of the interest rates is going to bury you on the $31 trillion.
Folks, after we win on the 8th and close the deal, the orgy you're going to see in Washington DC between then in the first of January when the new Congress comes in, is going to be something you can't even comprehend. And because the Democrats understand they're going to be out of power for 10 years, 10 years going to be a decade at least, and they're going to try to get all the payoffs for the lobbyists and the corporation, the crony capitalist. Dave Brat, thank you very much.
END
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