on this right now, want to bring in one of president trump's top economic advisors, kevin hassett. i know that the white house, i think it is pretty brilliant on the way by your part, the white house's part to acknowledge there is a anti-capitalism move going on and so you prepare ad report or the white house prepare ad report on socialism and you want to share some of those with us as we approach the 200th anniversary of karl marx's birth. >> sure, we put a report out today that received a heck of a lot of attention already. basically one of the things we noticed at the council of economic advisors as bunch of geeky economist, a lot of people bandying about the world socialist maybe even don't understand the word means. we haven't put out a political document, rather than an academic one, goes through the history of socialism, and how terrible it has been for the people that adopted it. we talk about the things like modern in orderric examples, give fun facts or not so fun facts. take a typical scandinavian move him to the u.s., his income goes up 50%. a metric how more important

and later, kevin hassett will join us to talk the president's ned itisofheed stay tuned >>> hurricaneel set to make landfall along the coast. the possible economic impact of this category 4 storm is straight ahead >>> it's a just a week before weed becomes legal for canada. one analyst says there's more room to run. >> i've been smoking since i was born i can smoke anything, man. >> straight ahead. >>> plus a "squawk" news making interview with the president's right-hand man on the economy. kevin hassett joins us to talk about this environment, state of the economy, and much hour as the second hour of "squawk box" begins right now ♪ >>> live from the beati ining h of business, new york, this is "squawk box. >>> good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with wilfred frost and melissa lee. we've been watching u.s. equity futures. the dow is actually in positive territory. it's up by about 30 points the nasdaq down by just over six points following what we had seen yesterday with the d

thank you. >> kevin hassett, thank you. >>> when we come up, it has been a scary october.down 8.5%. the nasdaq down nearly 11% this month. we'll talk markets and find out if investors will be giving thanks in november take a quick look at u.s. equity futures at this hour we are in the green. dow much higher 239 higher s 5 u 117 points,&p00p 37 back in a moment ♪ a moment of joy. a source of inspiration. an act of kindness. an old friend. a new beginning. some welcome relief... or a cause for celebration. ♪ what's inside? ♪ [laughter] possibilities. what we deliver by delivering. when you retire will you or will you just be you, without the constraints of a full time job? you can grow your retirement savings with pacific life and create the future that's most meaningful to you. which means you can retire, without retiring from life. having the flexibility to retire on your terms. that's the power of pacific. ask your financial professional about pacific life today. >>> all right. welcome back, everybody. let's talk more about the markets this morning joining us now is gene

we have kevin hassett who will be joining us to talk about where they think the economy is headed andning. it's a tricky line the economy has been going gang busters. the unemployment rate is at the lowest level in almost 50 years. seeing massive gains across the board in all kinds of economic statistics wages have come up but at the same time you have the president once again saying yesterday that he is not happy with what the fed is doing with raising rates. kevin hassett has to walk that line, talking about a great economy and explaining the case for why the fed should not be raising rates in that environment. we will also talk to jeh johnson. we're a few weeks away from an election he will talk about how safe he thinks the election infrastructure is as we head into that. >> certainly a lot to do today thank you very much. see you in a couple of minutes. >>> still ahead, we'll weigh the risks. it's rising rates versus china what's the bigger risk to you and your money we'll discuss and debate it as "worldwide exchange" returns my mom washes the dishes... ...before she puts them in

joining me from the white house, one of the president's top economic advisors, kevin hassett.ongratulations. >> thanks. it's a huge day. it's a huge day. charles: i want to let the audience know. this is one of the issues our senator from south carolina put into the tax bill at the last minute. he got a lot of brief, but i think it will be amaze fog are a lot of americans. >> honestly when we look back at the trump administration this will go down as one the great accomplishments and it's a bipartisan accomplishment. i think the fact is geographic inequality is a really big problem in america, if you look at distressed communities, they have a 25% higher mortality rate. they have a life expectancy that is six years less and poverty rate above 30%. really nobody is heading into those places and investing, and at same time to define the problem, americans are good-hearted people. they want to help distressed community but don't know how. the people watching now they can make a interest in distressed community. take it into a mutual fund to roll it a fund that invests in distress

kevin hassett wrote it. he will be with me next hour.5. fidelity. open an account today. the .. here. we perform over 50,000 operations a year in places like this. for the past 15 years, chubb has identified ways that we can strengthen our safety measures. and today, our hospitals have some of the best patient safety records in the country. now, we're constructing new buildings that will define the future of piedmont and chubb is here, insuring our expansion. two million patients a year depend on us. and we depend on chubb. stuart: good morning, everyone. here's a cabinet first-year money. tomorrow morning what kind of economic growth were enjoyed in the july through september period. we were told it's in the high 3% range. senator john kennedy on this program earlier said he remembers when the economy grew at a 120% rate and make him a three toga party. 3% i am told is a very big deal. more on that coming for you. a little noticed indicator, the firing rate from a layoff rate at a generational low. everybody wants to hire. nobody wants

joining us to dive into this and other economic headlines is kevin hassett.on't know if you have a monitor there but i have three pages of notes to discuss with you. >> great to be here. >> let's start with the markets. there have been head winds and tail winds we have had a strong economy, higher corporate revenues, tax cuts, reduced regulations. many of these things you have been involved in. but now we're hitting head winds. the traed war caterpillar talked about, rising interest rates and this global uncertainty, whether it's china or whatever happens with saudi arabia. what do you make of where we are? i know you don't spend a lot of time with the markets, but what do you make of it? >> oh, sure, the markets are very, very volatile. in the very short run it's clear from the economic literature it's basically a random walk and flip a coin if it goes up or down. but in the medium long term what matters is earnings and economic growth. if those continue up and the market doesn't keep up with them, the earnings yield gets too high. as long as economic growth

white house counsel economics sure kevin hassett.r vote on deregulation immediately. i get to that. you're still smiling. i've got to talk deficits. it's gone up $779 billion in the last 12 and yet we've got 4% growth. this isn't supposed to happen. you can't be happy about this. >> is definitely something we are looking at carefully as we formulate the budget. one of the things happening is there's been such a big capital spending boom that the expensing of equipment is reducing corporate income tax is more than was projected by the joint tax committee. in the long run it's good news because there's factories and machines that will produce output in the future. strange isn't the biggest problem with the deficit not so much government spending although it is clearly a problem. it is rising interest rates which makes servicing $20 trillion worth of debt much more expensive. and there's nothing you can do about it. >> rising interest rates are part of it, but a lot more we can do in spending could rethink the revenues will come back fr

after-tax, after inflation, after bonuses, after benefits according to my dear friend and colleague kevin hassett at the cea. that's wonderful thing for blue-collar workers, have been left behind. they're starting to come back. i noticed other of the reportsk about higher wages and salaries. our view, my view, cabins of you, if you lower corporate tax rates and related investment incentives, the biggest beneficiary will be the ordinary mint -- main street working folks. this is a controversial idea in the academic literature but it is gained a lot of support in the last 15 years. we are working to that. we are banking on that and it seems like it's already happening. so i give you fatter paychecks, better blue-collar jobs, i keep tremendous run of confidence. i think we're going to go on for quite some time. this is not a sugar high. this this is a change in marginx rates and regulations which will keep on giving incentives. as david was kind enough to point out in my first-quarter in the white house we got 4.2% growth. i take complete responsibility for that number. [laughing] actually the atlan

my view, our view, kevin hassett's view, if you lower corporate tax rates and relayed it in investment incentives, the biggest beneficiary will be the ordinary main street working folks. this is a controversial idea in the academic literature, but it has gained a lot of support in the last 15 years. we're working to that, we're banking on that, and it seems like it's already happened. so i give you fatter paychecks, better blue collar jobs, i give you a tremendous run of confidence. i think we're going to go on for quite some time. this is not a sugar high, this is a change in marginal tax rates and regulations which will keep on giving, incentives. as david was kind enough to point out in my first quarter of the white house, we got 14.2% growth. i take complete responsibility for that number. actually, the atlanta feds are up there at 4.1 in q3 to come out in a couple weeks. we're happy any time it beats 3% in the official forecast. president trump always says take a rip at the ball, i'm behind you. not to punish but to reward. i think it's working. so i'll be around a while to help i

i've sat here and spoken to kevin hassett at the white house who said the average american is going to$4,000 increase from these tax cuts. i could never get that math to work. i don't think you could either. >> that's not math. of course the math didn't work because it's not math. #where's my $4,000? >> right. >> of course wages didn't go up $4,000. of course the tax plan is unpopular because people are looking at it. what happened? they cut taxes by $2 trillion for high-income people and large corporations. and lo and behold, we lost $2 trillion. examine now to act as though, ah, well, who could have thought by cutting these taxes the deficit would grow, we have to go cut security. i'm telling you, if they attempt to cut social security, they're going to be run out of town in a land slide. >> in 2011, when president obama was attacking spending, this is what paul ryan and mitch mcconnell had to say about it then, bruce. listen to this. >> he doubles the debt after his term in office and triples it by the end of his budget. he sends our debt on an upward trajectory that is completely u

joining us now is kevin hassette. your reaction to that op ed by the editorial board this morning?ree with the wall street journal very often but this is a great deal, i think that we just sort of won the super bowl, that all three countries did. president trump delivered a modern 21st century trade deal. it's great for american workers, great for american farmers, it opens up markets to the north and the south. it provides protections for things like biopharmaceuticals. they made it so we understand how we'll deal with each other's patents. there's also things like ocean litter agreements. it's a much improved nafta. it's great for american workers. any time there's thousands of lines in a deal, there's going to be stuff you quibble with. this is a vast improvement. the president has a lot to crow about. maria: i like the idea of the patent improvement. that's important given the conversations we're talking with china about. let's go through the dairy farmers and what this new accord involves in terms of improved access to canada's dairy market. how do u.s. producers benefit? >> b

maria: joining me right now is the white house council of economic advisors chairman, kevin hassette.you for joining us. do you agree that the fed is out of control, he kevin? >> you know, i think that president trump is a very authentic individual. he says what he thinks. i think that's why americans like having him in the white house. i think all of us at the white house respect the independence of the fed. that's why we appointed such great people over there like jay powell. it wouldn't want to advice them what to do with interest rate policy. looking at the movement of markets, they're concerned about a number of things. one of them is the path of interest rates. the other is the election and what it means for economic policy. we made an enormous amount of ground up, getting the economy back on track with president trump's policies and of course the political reversal might threaten to reverse those policies. if write in markets i would be nervous about that as well. maria: i understand what you're saying. we do have a very good backdrop, kevin. you and your colleagues with the ta

council on economic advisors chair kevin hassett will join us from the white house.ey." we sta

there's the story from kevin hassett and i think the believers in the tax cut which is the tax cut engineerd up ultimately changing potential growth. so the number we slow down to is a higher number. whereas the fed and most -- a lot of economists i talk to on the street don't see it that way. they see us slowing back down to that 2% growth one top down way of looking at stocks is just how big is the pie? how much is the pie growing? >> to answer that question -- >> what's your take on that? >> the easiest thing to describe is that the 25% earnings growth in 2018 we expect for the s&p, a third is from the tax cut. then when we just think about what the tax cut has done to the dna of the economy, i believe it has raised the longer term growth rate from what it otherwise would have been. >> that's the wrong answer for steve. >> it's not. the right question is -- the follow-up is how much. >> probably a half a point, maybe one full point >> you think we could be at 2.5% underlying growth. and as i've said many times, joe, if the tax cut ends up doing that in a way that the debt created by it i

larry kudlow, kevin hassett, top economic guys, they will be with me and many more.e back with you in a moment. ♪ we started making wine in 1948... [sfx: bottle sounds on conveyor] one bottle at a time. today, we produce nearly 20 million cases a year. chubb has helped us grow for the past 30 years... they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers. that over delivers. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathin

kevin hassett. you have the best economics team in the white house that i've seen in generations.t's the type of advice the president needs to be getting and he is getting it. i think he is doing a great job with it. in my world, sandra, economics is everything. economics is the power, the source of everything in the economy and i think he looks really good. >> sandra: thanks for bringing up larry kudlow. he was just on fox a few moments ago and he was responding at one point during his discussion to some comments from president -- former president barack obama who seemed to be taking credit for the booming economy in las vegas yesterday. watch. >> but when you hear all this talk about economic miracles right now, remember who started it. i just hope people notice that every time there is a pattern where they kind of -- they run things into the ground and we have to come back and clean things up. >> sandra: here is larry kudlow, the president's chief economic advisor this morning responding to that. watch. >> i don't think he is right with all respect to former president obama. un

kevin hassett, yesterday on the fox business network you forecast 3 1/2%. you were spot on. >> at this advanced stage we got all the source data and can add it up as well as the next guys. there were not a few surprises really in this number. a very, very strong number. for me the headline is we have 12 months where growth is above 3% on average. that's something president trump promised. one of his main campaign promises. we were growing half that rate when he took office. having a whole year at 3% is the headline. >> sandra: larry kudlow suggested over 4% growth is sustainable for the u.s. economy. 3 1/2% in the latest quarter. are you going to get to an average of over 4%? >> i wish. i wish. but anything north of 3 is something that people said was impossible. i know when we say gdp for the listens it sounds like what is that? the typical family of four with an income of $75,000 got a $2,000 tax break because of the tax cuts and we saw in the third quarter data they're buying things for the kids, going back to school the kids had better supplies. there i