now that's a win-win. switcho geico. captioning sponsored by cbs >> it's sunday, august 25. i'm margaret brennan and this is "face the nation." as the u.s. trade war with china heats up, president trump meets with world leaders in france. and dismisses concerns of an economic impact back home. >> our country is doing really well. we have horrible trade deals, and i'm straightening them out. the biggest one by far is china. >> brennan: but british prime minister boris johnson told the president we don't like tariffs. >> the sheep-like motive of you on the trade war. >> brennan: president trump did just the opposite before

leaving the u ess inor tariffs. the stock market plunged per our guests: white house economic adviser larry kudlow and trump ally south carolina senator lindsey graham. >> i still have a lot ofatile. >> brennan: and in a new cbs news poll, americans shared their thoughts on the economy, their finances, and whether president trump gets the credit. plus the race for president shrinks as more democrats call it quits. >> let's get this done and win. thank you. >> brennan: we'll hear from one still holding strong, minnesota senator amy klobuchar. all that and political analysis of the week up next on "face the nation." >> brennan: good morning. and welcome to "face the nation."

today, we are focusing on the economy, its impact on policy and politics. throughout our show, you will hear from voters about what it means for them. and we begin this morning with white house national economic council director larry kudlow. he joins us from france. good morning, larry. >> good morning, margaret. thank you. >> brennan: the president was asked this morning if he regretted es escalating the trae war with china. then the white house released a statement saying he meant to say he only regrettedly not raising tariffs further. which is it? are you escalating or de-escalating? >> no, look, actually, it's neither. but he didn't quite hear the question this morning. but his thought was if he had any second thoughts-- and he said sometimes he does-- he would have actually raised the tariff, not lower it. but there is no change. a 5% additional tariff on $nd tn

tariff on the second of $300 pld then december 15. he's responding to the chinese action, and i want to say in my judgment, at least, both actions were very temperate, very restrained. all right, both countries weigh in. president trump has got to defend the american economy, which he has done. and, of course, as you know, our battle to stop unfair trading practices from china, more on that, if you wish. but he's continued the drumbeat. but i want to make one last point if i may. the negotiations between the two great countries continue. we had deputies dell conference meeting last week. another one is coming up this week, and the principals still expect the chiles team to come to the united states in september. both countries seem to be protecting their turf here, but the talks and negotiations

continue, and i think that's very positive. >> brennan: do you expect china to retaliate to the tariffs will the president put in place on friday? >> i do not. i think, you know, his was an action to respond to their action. so i doubt whether they're going to take another step. >> brennan: okay. >> i had not heard and seethat. >> brennanrry, in past yo areve been very essentially attacks on the american consumer, and that it particularly hits low-income families. how do you tell americans that this is not going to spiral in a way that hurts them? >> well, look, one important point i want to make is the economic burden of these tariffs is falling most heavily on china, probably by a factor of four or five to one. as far as any impact here, i will argue, as i vit's a very

small, minimal impact. falling on china. the impact for ordinary american families-- consumer wages are booming. consumer spending is booming. actually, the best-performing sectors in terms of wage increase, margaret, blue-collar workers, middle-income and lower income workers. the bottom 10 percentile are doing the best. and our tax cuts have provided at least $2,300 less taxes, lower tax liabilities on ordinary average american families. the net-net, the tax cuts, in my judgment, far outweigh very small harm regarding the tariffs. and, look, the president, again, he has got to defend the american economy-- economy-- >> brennan: sure, but larry the success-- >> ...has done great damage certain sectors of our economy. >> brennan: which is why so many people summit the idea of

getting tough with china, but they're worried that you're actually going to damage american businesses. i'm looking at statements from the retail industry leaders association, just on friday, "mr. president, we implore you to understand this trade war before the damage is irreversible." national retail federation, "it's impossible for businesses to plan for the future. how and where does this end?" larry, this is the business community saying this. china hasn't agreed to any concessions. where does this end? >> well, look, we-- we're in constant touch with all those business groups. and, by the way, they're also saying before something really bad happens, which i think is an implication nothing bad has really happened. i just want to disabuse so much of this recession talk out there. it just ain't so. >> brennan: but businesses, as you know, have to plan for sayie inhibited here. >> but, at the same time, truly, thousands and thousands of businesses center implord the

president to protect them against china's unfair trading practices and their i.p. theft, and their forced technologies of transfers, and their high tariffs. they have implored the president to take action. look, he's the-- he's the first president in our memory, margaret, to go after these chinese practices, which have done so much damage to the american economy and want rest of the world's economy as well. he has to do it. he's going to continue to do it. lower trade barriers would do great, great help to our economy, to everybody, large and small companies. we have our tax cut plan, which gave the retaferls and so fh, the retil a so small businesses agreement benefit. and as i said earlier last week, there's a tax cut 2.0 study going under myng it's not immediate. we're not worried about a

recession. >> brennan: as you heard, the president said he was pulling back some because he was concerned it could be passed along to the consumer. do you, though, based on what the president said again today, do you believe that the president does have the authority to block private businesses from investing in china? >> well, look, ultimately, he does have authority. >> brennan: how would that work. >> emergency economic power authority. well, it was nearly invoked, regarding the mexican border crisis, before the mexicans came to our rescue, and they've done a great job down at the border, great job. so in theory, that law exists. but that is not what the president said. he's asking american companies to take a look, take a fresh look, at, frankly, moving out of china, going someplace else. >> brennan: that takes years. >> ...coming home to america. it would take years. that is correct. t put thahere.

look, i've heard him say this time and time again, the couple of years i've been working here, he's said it to individual business. he said it to the big business groups. he's asking them to come home. come back home to america. we're giving you low taxes and low regulations and know entrepreneurial environment. so in a sense, this is nothing new. maybe the way it was fralzed was a little tougher than usual. but come home. come home to america. this is the base-- the best place to work and live and earn and invest. >> brennan: another so to be clear, the president does not believe he can block private transactions with china. >> heending to rig now. that is not his intention. >> brennan: but that is still something he's thinking about? >> you know, i don't even want to go down that road. it's like first things first. let's look straight ahead. >> brennan: all right. larry kudlow, always good to talk to you. >> thank you, margaret. appreciate it. >> brennan: we turn now to the

chairman of the senate judiciary committee, south carolina senior senator lindsey graham. senator, goo have you here. >> thank you. that was fun. >> brennan: well, i want to know what you think about what larry just described there. he said the president does have the authority to block private investment in china. you said the other day you don't think he does. >> i don't know how the statute works. i think he can levy taxes on countries that are creating a national security threat to us. maybe he can, you know, do something about exporting to countries that he believes are a national security danger. i don't know. but if you start getting into that, it's a global economy. the one thing i-- i love larry kudlow. it's a global economy. i'm glad american companies are in china doing business because there's a lot of customers. what i don't like is they close off markets to the american business community in china. they're required to have a chinese business partner when you do business in china, and they steal all of your stuff. every democrat and every republican of note has said china cheats. the democrats very years have

been claiming that china should be stood up to. now trump sand we've just got to accept the pain that comes with standing up to china. how do you get china to change n should people of south carolina be prepared for? >> some. consumer prices on commodities are going to go up. were you fee increases at walmart. the president has backed off because he's worried about the christmas shopping season. i'd tell mr. president, listen, you have a lot more bullets than they do. the goal is to get them to change their behavior. the chinese government, the chinese army, and the chinese business community are one and the same. they're very mercantile. you don't have these disputes among democracies. but the chinese communist party runs everything in china. until they feel the pain, ther not going to stop. they need to change their intu intellectual property theft practice. they need to open their marketss to us.

they need to become a reliable trading market rather than a mercantile system. >> brennan: a lot of people as you say supports want president and chinareo th >> and they never will until they pay a heavier price. >> brennan: so you think possibly not until after the i think they made a calculation that our elections are right around the corner. they can play this game until 2020. if trump keeps piling on, i don't know if they can make it that long because the supply chain is beginning to move. the more expensive it is to produce products in china, the more likely you are to relocate the supply chain, which coul woe a death blow want to chinese economy. >> brennan: that's been happening for in time. do you, because south carolina has so many auto plant in america. >> the alum flum tariffs have hurt us. china produced more steel in one year than the entire world testimony consumed. that's an unfair trade practice.

developiatill with chuck schumer seven or eight years ago to label china a currency manipulator, and put a 27.5% tariff on every product. bush would never do it. obama would never do it. trump did it. to my democratic colleagues he's doing the things you've been calling for all these years. >> brennan: what about threats with tariffs and the dispute with the e.u., that could impact auto makers. >> i think tariffs are tools. when you look at the world tariffs, they disadvantage america. there is a higher tariff on american products in countries in which we do business with. india is the worst. i introduced a bill that allows the american president to charge the same as the country we're doing business with changes-- charges. so, like in india. they have 100% tariff on a lot of our products. either we increase tariffs on indian products or we all go to zero. the goal is to go to zero. >> brennan: i want to you

about a rt thikom trebudget dget defit to trillion for 2020. as a origin, do you still believe deficits matter? >> deficits matter, but they're driven by entitlemliiscretio domestic-- >> brennan: tax cuts. >> i believe the tax cuts are going to pay for thenselves. i think an infrastructure bill would probably pay for itself. you'll never get deficits in order and out of debt until you reform medicare, social security, and medicaid. >> brennan: i want to ask you about afghanistan. i know you have been tracking these peace talks that the trump administration is holding with the taliban. there were two american service people killed in afghanistan this week. more than 2,400 americans have been killed on that battlefield over the past 18 years. virtually every single democrat running for president says they're going to bring the troops home. >> yeah. >> brennan: that's exactly what president trump is saying.- >> i think they're all wrong. i think in one day we lost 3,000

americans. almost 3,000 americans died because we ignored afghanistan. two, bernie sanders and elizabeth warren, read the intelligence assessment, by our intelligent community, as to what would happen to our homeland if we pulled out of afghanistan tomorrow. mr. president, if you don't have a counter-terrorism force left behind, even if you've got to deal with the taliban-- which i doubt but you might-- they don't have the capability or will to protect the american homeland. every national security adviser to this president unanimously believes we need a robust, counter-terrorism force to make sure that isis and al qaeda do not regenerate in afghanistan to hit the american homeland. >> brennan: are you concerned the president is not listening? >> i am concerned that the president, in his desire to get out, is going to make the same mistake that president obama did in iraq. i don't want you to be like bernie sanders or elizabeth. i want you to take good, sound military advice.

mr. president, lowering the cost of this war is a noble endeavor. we lost 14 soldiers this year. god bless them all. but they're an insurance policy against another 9/11. that is a virtual wall against isis and al qaeda. you may get a peace deal with the taliban, but you'll never get a peace deal with al qaeda and isis. they have an intent to strike america. they just don't have the capability yet. if we leave and outsource our national security to the taliban that they're going to take care of al qaeda and isis, that would be a disastrous decision. and when you're on the stage with bernie, elizabeth, or biden, i wish you'd look them in the eye and say, "unlike you, i'm going to listen to my commanders. unlike you, i'm not going to expose the american homeland to another 9/11 because of politics sm the. >> brennan: what is that number? >> the number is go to be around 8600. to go below that i think would be really risky. i'm going to introduce legislation requiring the secretary of defense and the doesursko the

homeland. isis-k, the afghan version of isis in is and al qaeda is alive and well. our american soldier soldiers ad intelecommunity have the capability to deal with the homeland. 80% of the people in afghanistan reject the taliban. i hope it's an honorable deal. i hope we don't throw the women back into the soccer stadium to be killed for sport. i think you'll get the taliban to the table but you'll never get isis and al qaeda to the table. >> brennan: this is the one-year anniversary of your good friend john mccain's passing. his widow has called for acts of civility to try to remember him. is that possible anymore? has the rhetoric just gotten so rough and tumble that-- >> it's a rough-scpf-tumble america. but america's always been pretty rough and tumble. what missingshuy,but thetesult. t pre results. m aout a thine.

mccain? e understanding of the world. if he were alive today he would be saying exactly what i'm saying about afghanistan. i know we're all tired of being over there. i know it's been costly, in blood and treasure. but there is no way to leave afghanistan, in my view, honorably and safely without having a counter-terrorism force with inspell capability to protect the american homeland. john mccain never sold false peace. he never sold the illusion of peace. cindy mccain has taken over his job of the family. nobody was ever better taken care of in illness, than cindy provided care for john. she's doing a great job on her and threen trafficking. daughters, they're doing-- doing great. they miss their dad. i miss him. but my job is to carry on and to help this president where i can, and i will. >> brennan: thank you very much, senator. much, senator. we'll beht

they are faring in the trump economy is cbs news director of elections and surveys, anthony salvanto. he has fresh numbers from a new cbs news poll. anthony, good to see you here. >> thanks. >> brennan: how are americans feeling after this week? >> well, optimism still outweighs pessimism, certainly in people's personal finances, they tell us, but also for the economy as a whole. but then we ask people, okay, specifically, "what do you think it is that you can can be optimistic or pessimistic about?" look, there are so many ways you can measure the economy. well, the number-one thing they told us was the job market. they think that that's in good shape. that gave them reason for optimism.

more mixed was when they looked at the stock market. that's a more close balance of optimism and pessimism. >> brennan: about half of americans own stock. >> exactly. so not everybody is account ifed by it. in fact, it's only about 13% of people that tell us that the stock market affects them a lot. the president often uses that as a measure for the economy. important to remember that's not always coming through to the kitchen table for everybody. and then, on trade policy and on world affairs, both of those things, people tell us they look out and they see more reason for pessimism. so there is a little bit of that mix of pessimism and uncertainty still out there. >> brennan: on pessimism, are people saying on the trade war that they support what president trump is doing? >> well, a majority of americans feels that the american consumer will end up paying for these tariffs, and the president gets lower marks on handling trade policy with china than he does for handling the economy overall. but we also talked to people who are specifically involved in agriculture and jobs related to it. and they're more mixed on the

help-and-hurt balance story what this will do. it's interesting, we also asked, "is this something that you think you believe will work or something that you hope will work?" and that's really split, too. so i think it underpins this idea that there's a sense people want something done, although maybe not necessarily specifically this. >> brennan: what happens at the kitchen table? what are the pocketbook issues that have people concerned? >> right. when you look at what people are dealing with on a day-to-day basis, they tell us, they really see a split between the comfort and the-- confident and the concern. which is to say there are people who are confident they can pay their housing, pay their daily bills. but those concerned about the same sorts of things, about easily, interestingly enough, medical costs and medical bills are the thing that really stood out that people are more concerned about right now. we even talked to about a third of people who told us that they'd passed up seeing a doctor or filling a prescription because of the cost. >> brennan: it's always health

care. >> it's always health care, and it's always that specific element of cost. so that's something that i think going forward we have to watch. >> brennan: so, do people hold the president accountable for these concerns? or do they give him, you know, credit? >> well, the first thing that people want to look at is where they're getting their information about the economy. and that's really different today in this partisan environment. we saw the clip of the woman who was talking about what the media talks about the economy. and there is a sizable number of people who feel that the media makes things about the economy sound worse than they really are. but then again, they-- >> brennan: trust factor. >> there is the trust factor. then again the president, and a lot of people think he makes things sown better than they really are. which is to say, it depends where you get your information. the number of people who say they probably or definitely will vote for him, and that's about where his approval rating is. so there's that. but then, also, when you talk about the economy, today, you

have to talk about partisanship. which is to say, republicans say they're better off, but the ones who say they aren't better off are still voting for president trump. democrats who say they are better off still say they won't vote for president trump. so any time-- the old measures of, you know, "it's the economy, stupid," or "are you better off today than you were four years ago?" those things kind of go out the window more and more today and it's really the partisan lens through which people view even things that might otherwise be seen as objective numbers. >> brennan: bottom line, it's notes simple as saying if the economy is booming the president will be reelected? >> no, it's not. it's the partisan lens that really dominates today or is a major factor and that's the thing people should watch when they talk and the punditry, looking forward at this election, that that partisan lens really starts to color how people look at economic numbers, too. >> brennan: anthony, thank you very much. very much. >> thanks. >> brennan: we'll be right back. like viola.

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laso you can enjoy it even ifst you're sensitive. se. yet some say it isn't real milk. i guess those cows must actually be big dogs. sit! i said sit! i was told to begin my aspirin regimen, blem. and i just didn't listen. until i almost lost my life. my doctors again ordered me to take aspirin, and i do. be sure to talk to your doctor before you begin an aspirin regimen. listen to the doctor. take it seriously. . >> brennan: some of our stations are leaving us now, but we'll be rht bacth minnesota senator amy klobuchar.

. >> brennan: welcome back to "face the nation." we are now joined by minnesota senator and 2020 democratic presidential candidate, amy klobuchar. she joins us from boston. good morning to you, senator. >> good morning, margaret. >> brennan: you've said before on this program that you agree with the premise of challenging china, but you would do it with allies and you wouldn't use tariffs. how exactly would you get them to the negotiating table? >> well, right now, you have complete chaos, margaret. and you can use tariffs, but not the way this president has been using tariffs. he's been using them like a meant cleaver-- or maybe the better word is a tweet cleaver.

when you look at what he's done, just on august 1, he announced $300 billion goods, more tear ofs. on august 13 they reversed it. on august 20 they said they were going to go taxes because of the fear of recession, they were going to reduce taxes, which, of course, would only add more to the debt that he's created. and then the next day they reversed that. and i think one common adage, when you deal with the rest of the world and you want to have credibility for our great country is you keep your promises and you keep your threats. what he does is make these blustering threats, like kicking all of our companies out of china, that people don't think really he's going to follow through on. so what i would do is go back to the negotiating table with our allies, examine these tariffs. some of them can come off. some of them could stay on. and then make sure that we're using trade enforcement. i had my own experience with this to keep minnesota iron ore

mines open because of chinese steel dumping. and at the end of the obama administration we called for and passed some laws, got more enforcement going, and they opened up again. that is not the careful, targeted approach that this president is doing. and as a result, you've got soybeans sitting in bins in iowa. wruf got pork down to its lowest export levels in nine years. this is starting to hurt everyday americans because of the chaos that he's created glearg democrats are running on this message that the economy isn't working for everyone. but in this latest cbs news poll, we see the majority of people say the economy is good, and they approve of president trump's handling of it. are democrats out of step? >> we're not out of step. and i just know that people that i talk to. they know the economy is stable, and we've come up on the of the downturn because of the hard work and resil yenls of our workers and our businesses.

but whatta sitrue leader does-- there's a saying a true leader makes decisions not for this generation but for seven generations from now. this president can't keep his decision for seven minutes from now. what a true leader does is say, "what are these challenges? what do i see on the horizon?" we know we've got to do something long term about this debt and he just keeps adding to it. we know we have to help people afford things like their pharmaceuticals, and he's done nothing. he has made a bunch of promises. i would take him on. it's a constellation of things where it's too expensive for people to participate in this economy. and then the third thing that we need to do is to simply go back to the negotiating table when it comes to the trade war that he's created, and then make sure we are doing something about this debt in the long term. that's why i've opposed so many of his policies. even if you just took these corporate tax giveaways, what he's done in that last tax bill,

you could have so much more money to invest in people's everyday lives and infrastructure. >> brennan: i want to ask you about afghanistan. as commander in chief, you told "the new york times," in your first year, you would no longer have troops in this country. senator lindsey graham is warning, you go to zero, that's reckless. that risks having the country collapse into the hands of terrorists. so how do you balance that? >> i look at it this way: we have people that were-- now are deploying that weren't even born when we got into afghanistan. so a lot of this is negotiating. you know, this president, because of the chaos that he's created on the foreign stage, makes it so our allies don't always trust him. but that doesn't mean that you don't go back to the negotiating table, and you try to negotiate. i think you've got to make sure that when you're dealing with the taliban, you know exactly what they're up to, what's going to happen. you want to make sure a lot of

gains we made with women in government andcy s that we made start bringing our troops home. >> brennan: does any footprint need to stay? >> you could always have training footprints and people working there, ready to go, if there's a complete upsurge. but i think that you have to make sure that this country can function on their own, and my concern right now is that if this president just keeps going back and forth on this, once again, they'll never step up. that's been the past with afghanistan. >> brennan: we saw three 2020 candidates drop out recently. seth moulton, one of them, told the "times,," i think it's evident this is a three-way race between biden, warren, and sanders and it's a debate about how far left the party are should go." dowferl the same pressures? >> no, i don't feel them at all, because i've just made the debates for the fall. it's like making the play-offs,

and it is a long haul. a number of our presidents that ended up being our president were in single dij ats in the point in the summer, and that's because i have a different kind of campaign. i am running a grass-roots campaign. gainsummits and engormt all w a to detain indefinitely migrant families but holding them together. the obama administration also tried to get out from under the flores agreement. where do you stand on this? >> this will end up in court, and my guess is that it will be thrown out because of the way this administration has handled immigration. but i think the bigger issue here, margaret, is that if he really wanted to do something about this, he'd pass comprehensive eu78igration reform, which would be better for our economy. instead of using these

immigrants as pawns. >> brennan: senator clob char. thank you. we'll be right back with josh bolten of the business as a small business owner,

the one thing you learn pretty quickly, is that there's a lot to learn. grow with google is here to help you with turning ideas into action. putting your business on the map, connecting with customers, and getting the skills to use new tools. so, in case you're looking, we've put all the ways we can help in one place. free training, tools, and small business resources are now available at google.com/grow >> brennan: we're now joined by joshua bolton, president and c.e.o. of the business roundtable, a lobbying group that represents nearly 200 of the world's largest companies, many here in washington also remember him as former white house chief of staff to george w. bush. welcome to the show. >> thanks for having me. >> brennan: you just heard the

president's economic adviser, larry kudlow, saying the president does have the authority, though he's not using it right now, to essentially stop private investment in china. what do corp raingszs think when they hear that? >> they get worried. you know, we don't need to go into the details of what authorities the president has, but he has a lot of authority through the national security statutes to disrupt trade and commerce in a way that would cause huge damage, not just to the chinese economy, but to global economy and the u.s. economy. so american c.e.o.s are concerned about the escalating tit-for-tat trade war with china. >> brennan: and you saw some of that reflected in the sell-off we saw in the financial markets on friday and concerns about what is going to be happening in the global economy. we're hearing from american companies that they're worried about investing, because they just don't know what's aroundlet the corner.

and the white house is saying, "trust us on this." is that enough to invest on? how do corporations plan around that? >> no, they can't plan around that. i mean, look, it's a difficult situation because the c.e.o.s of the business roundtable have been very supportive of a lot of the objectives that the administration has been pursuing in their negotiation with the chinese. there need to be structural reforms to get rid of intellectual property theft, to open their markets to more investment, to open their markets to more u.s. products, to stop forced technology transfer, to stop subsidies to targeted industries. and all of those things are very important to have happen. but if the-- if this trade war spirals out of control, the damage is huge. i have a lot of respect for larry kudlow, but he's just not reflecting the views of american business when he says, "this is

all fine." a lot of american businesses now have their foot poised above-- right on top of the brake, and they're tapping the brake periodically. what we saw on friday with the stock market was the markets tapping the brake lightly. but if this spirals out of control, the risk is that everybody's going to slam on the brake, and that would be a disaster, not just for the chinese but for the united states as well. >> brennan: what is that tipping point? >> we don't know where the tipping point is. but the current situation is sounding very risky. here's what was most concerning about the president's tweet yesterday, which was he's clearly trying to ratchet up the pressure on the chinese to make the kinds of accommodation we want in the trade negotiations. the business community supports that. but the president's tweet also implied that he thinks it would be either benign or maybe even

helpful for the united states to decouple completely from the chinese economy. that would be a disaster, not just for the chinese, for the global economy and for the united states. >> brennan: this is the world'second-rgest onomy. ref f u.ni a crydy else'he lt a complete decoupling from the chinese. we need to resolve the d, amerin businesses' foot is going to be poised over the brake pedal and hopefully not slamming on the brakes. >> brennan: you hear support for the premise not for the tactics from a lot of republicans. but you also hear, though, a response in some ways that this is a necessary amount of pain. you also hear out there on the campaign trail a lot of

complaints, particularly from democratic candidates, that corporations have been essentially getting the best of american workers for years. president trump, when he campaigned, essentially said the same thing. this week, your organization made a change, saying that your sort of premise for the responsibility of corporations is not first to profits and shareholders, but essentially to their employees. is this a response to these political pressures? >> no, it's not a response to the political pressures. but it's recognition of 182 of our c.e.o.s, some of america's biggest companies, that it's the right thing to do. you know, margaret, for 20 years, the business roundtable has had a policy statement that said the principal purpose of a corporation is to benefit its shareholders. and what the-- those 182 c.e.o.s of the roundtable did this past week is issued a

statement withdraw that previous policy statement and saying, "no, the purpose of a corporation is to serval o servl of its stakeholders-- its customers, its employees, its communities, and its shareholders. >> brennan: and that means higher wages. >> it absolutely does in some cases. many of our companies have already raised their minimum wages, and for the first time, the business roundtable supports an increase in the minimum wage. but it means taking care of all of your stakeholders. because in the very long run, you can't take care of your shareholders unless you've taken care of your customers, employees, and communities as well. >> brennan: as a republican, as someone, do you believe still deficits matter when you see numbers like you saw this week? >> yeah, deficits absolutely matter. they have not, so far, mattered as much as most economists or

budget directors would have predicted, but they definitely do matter. but i-- i agree with snearlt graham when he says that the way to attack this problem is to go after the real drivers of the unsustainable costs in our budget, which is our entitlement programs. you cannot balance this budget by shrinking the economy with higher taxes, and you cannot balance the budget by focusing just on the discretionary spending, which is really the relatively small part problem. >> brennan: josh bolten, thank you for joining us. y

fothe we provid for thechange that we make in their lives.t e for many, many years. in the jail we provide medical, mental health, and pharmaceutical services to our patients. i'm very proud of the work we do at wellpath. the work that my team does. i think a patient who comes into our facility and is able to gain the care that they've needed for years and we see them improve and we see the changes that they make, that's probably the most rewarding part of the job.

>> how are things going for you financially? >> they could be better. they could be better. >> everybody i know is working. it seems pretty easy to get a job. >> i have some issues with president trump's approach on trade. i don't think tariffs work. >> i am so upset by the fact that we're losing ground, and our allies don'tt? i get it. i totally get it. >> brennan: for political analysis we turn now to our

manual. michael graham is politics editor inside sources and contributor on cbsn. joshua johnson is the host of noorp's "1 a" and anne gearan is a white hoe. does the white house have a clear message to calm the concerns? >> no. and we saw that play out in dramatic fashion all week where trump would say one thing in the morning, something else in the afternoon, and then by 7:00, we had three aides will on the driveway or on television cleaning it up. it has continued in france, where he appeared today to say he had second thoughts about the tariff war with china, only to have aides go out and say that isn't what he meant at all. so, no, no, there's no clear message. >> brennan: but when you look at the polling that we're seeing here, michael, it says the majority of americans do think

things are going okay with want economy. >> aninlarrkudlow tried to make the case if you look at the economy broadly, still doing well. the polling you had from cbs news shows it's still there. my quest successful economy do to voter behavior? if you really believe the economy is so good it can survive the craziness of trump, then it's so good it can survive no trump. and it can free voters who don't like trump, but really like the economy, the 53%, to say, "you know what? i don't have to take the craziness. this economy is so strong, i can afford to vote against my economic means." and you're absolutely right. the era of "it's want economy, stupid," is over. >> brennan: joshua, 45% of those polled said they'd definitely,/probably vote for trump. as you were laying out there, a strong economy, it's not decisive in the way is it it uso be. is the bottom line people can't see beyond their party anymore? >> i don't know if it's that.

when you look at the poll and combine the people who say they will and won't and who won't vote, within the margin of error, it could go either way. that's what i take from the i don't know that we know what to make of the economy yet. there are all these different indicators that larry kudlow throws out. he did this week, he did it last week in another sunday morning interview. there are all of this kind of-- there are all these facts and figures flying around. you have your own personal force, and you say i can still pay my bills, can still gas the car up, my health insurance hasn't gotten that much more expensive. maybe i'm okay. then you have all these other economic things going on around the world. you have britin dealing with brexit. prime minister boris johnson told the bbc this morning it's touch and go, and the ball is in the e.u. court, and the world is more complicated. then you have president xi who is not thinking about the end of his end of his administration. he is thinking of the end of his

life xi jinping will be president until the day he dies and in the middle you haveamerat eiero ve l? i init'om to when people start cancelling their netflix subscriptions, when it comes to the creature comforts we have to feeling day-to-day life has changed. we're not there yet. so i totally understand are why people are like, "maybe i like the economy. i may not like the upon fact he tweets so much, but everything seems to be okay." we can't know yet. there's too much going on, and nothing rises to the top. >> brennan: and the other uncertainty is just what's happening in the world. we saw some breaking headlines that irany top diplomat has made the surprise visit to the g7. what is he there for? is he meeting with president trump? >> we don't know the answer to that. it appears that one of two things isit the french pperty, who isis muel ma, has some kind of side plan for

sareef to speak with other diplomats there. this may or may not include trump, and it-- which brings up the other possibility, which is that if that advanced planning does not inc t- and we had not heard a word about it until an hour ago-- that means macrone is sandbagging trump. so stay tuned. ( laughter ) >> brennan: stay tuned. we'll see, to quote want president, as he said. but this uncertainty, is there a political cost to the geopolitical, to the economic, to the financial uncertainty? >> obviously, it affects, you know, the world. i think it's fascinating. do you know who the most-popular back home of the g7 summit leaders is? it's not trump. it's actually abe. trump is number two. he's the second-most popular person at home. not because he's popular, but because he's so unpopular.

there's so much turmoil and change going at home. imagine what happens to theex we e kno that ane cdate o turmoil. more turmoil, that's my team. and i-- you know, that energizes my people. and that's why he's more popular with the leaders of poland and romania, than with england and france. >> we should be careful. i hear what you're saying. but i think for the voters who put donald trump in office, what some would call "turmoil" they would call a "shake-up." this is why donald trump got elected. there are millions of americans who said you don't see me? fine. i'm going to punch you in the throat and make you pay attention and elect somebody who will do it for me for four years. so for the voters who get what i wanted now, even those who see their economic fortune shaky, there risk, i think politically, for democrats and some republicans-- we heard joe walsh is now going to run for the republican nomination this year-- telling those voters,

this." you are going to tell americans i'm what's wrong with the company because i put the president in office and just because you don't like him, are you supposed to make me feel like i'm the problem now?" i'm looking forward to see when the american is people start to feel what's going on and how that plays out with the voters who put donald trump in office, and whether any other candidate can pull them over without shaming them for what theaf put the country through. and for what they've sent the country into. i'm not sure anyone's ready to do that yet. >> brennan: and the the president, though, is feeling some. he has been tweeting and talking at length about what is happening in china and blame the feptd chair for a good part of it. >> he blames china. he blames the fed chair, he blames germany, and he blames the media for misinterpreting. sometimes that order gets mixed up, but those are the main

scapegoats. he clearly is feeling pressure.- and our reporting shows-- that he does firmly believe in the power of tariffs and thinks that he can wait out china. the problem is that china thinks that china can wait out trump. and, yes, the u.s. economy is larger and stronger. yes, trump has a lot of cards that he can play. but he doesn't have a command economy, the way china does. he doesn't have the state control that china disw where they could just demand that they wait him out. >> brennan: we will stay tuned. thanks to all of you for joining us. and we will be right become. botox® prevents headaches and migraines before they even start. botox® is for adults

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z3hl0z zi0z y3hl0y yi0y . >> brennan: that's it for us today. thank you all for watching. until next week, for "face the nation," i'm margaret brennan. captioning sponsored by cbs

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(announcer) the following is a paid presentation brought to you by rare collectibles tv. (announcer) the california gold rush is considered to be one of the most impactful events to affect america's young economy during its first 100 years, and it has certainly had a long lasting impression in numismatic history as well. the people of california soon needed a way to standardize the value of the new gold, so they set up assayers' offices. the assayers' offices declared the value of the gold, melted the gold into bars and shipped the bars across the country to the philadelphia mint to make gold coins. at the time, the largest u.s. coin was the $10 liberty head gold eagle. this surge of new gold circulating throughout the economy sparked the idea of a new larger gold coin.