Bannon's War Room - WarRoom Battleground EP 662： Restring American Manufacturing; Crimes Of The Capitalists

00:00:00.000 the ways that trump has changed the country in three weeks he's not in control of anything

00:00:10.320 and all of what timothy snyder describes as obeying in advance the examples are so abundant

00:00:16.280 i prefer the phrase preemptive groveling it's probably better which is what we're seeing a lot

00:00:22.900 of i mean he has changed the country i think one of the things we've learned i mean how many times

00:00:28.960 have we sat at this table trying to ponder what he's trying to do um i actually don't think there's

00:00:34.040 a particular direction i think he prizes chaos i think what he wants to do with the justice

00:00:39.200 department he doesn't have a particular idea or a law that he wants to prosecute or a criminal that

00:00:43.860 he wants to prosecute he wants to cause chaos and then chaos will lead to destruction the destruction

00:00:50.320 of the administrative state yeah but i think steve bannon actually wants it i think trump wants to

00:00:54.900 be popular and you are not made popular by having a justice department that can't deal with crime

00:01:01.720 well i i think it's even deeper i think it includes that but look you know what donald trump has always

00:01:09.700 wanted is what's good for donald trump and that means many things i mean he used to talk about the

00:01:15.780 swamp and like many things the swamp is usually what he wanted as long as it was for him and anything

00:01:22.620 that benefited him i mean being able to interrupt the department of justices going after antitrust

00:01:29.720 being able to interrupt the department of justice going after anyone who is a friend of his anything

00:01:36.840 that curry's favor we as a fact-based people what what what was the annie mccade thing and what was

00:01:42.180 the jim coming and jim coming impacted the election and and to go into another trump presidency

00:01:47.620 where he is selecting people to run doj and the fbi who are adherents to a policy of political

00:01:57.040 retribution that is the policy of the department of justice and the fbi under the direction of the

00:02:01.780 president of the united states and i wonder what what you think and how you've internalized

00:02:07.280 an absence of any sort i mean after 9-11 the deep state is is the people who connected the dots and

00:02:14.340 made sure that the united states was never attacked again and bob muller was the head of the fbi george

00:02:18.580 tenent was the head of the cia and they testified before congress i think more than any two government

00:02:22.760 officials in our country's history before or since and so the country got to know the people and the

00:02:28.380 policies that were enacted across the national security agencies will be controversial to the end of

00:02:33.180 time but they told their story and they were out there and they and and the whole inability and

00:02:39.640 reflexive sort of refusal to defend what trump smeared as a deep state with any sort of explanation

00:02:45.780 because now you ask every pro-democracy republican or lifelong democrat who's going to stand up to trump

00:02:51.460 they say the career the career prosecutors oh really the much maligned deep state who literally no one

00:02:57.440 defended last time well i actually thought people on the left should have co-opted the phrase deep state i mean

00:03:03.660 when we were speaking to the senator-elect and he talked about the career professionals i mean

00:03:07.640 we've all worked with those career professionals those career prosecutors they're the most upstanding

00:03:12.440 people in the world these are the people who don't ever cheat on their taxes that don't ever cut the

00:03:17.840 margin that don't hire an undocumented immigrant to do their yard or sit for their babies i mean 0.99

00:03:22.580 this is these are the are people who are above reproach and yes we depended on them last time

00:03:30.140 i think we'll depend on them this time maya's point about about getting a concentration of lawyers 0.84

00:03:35.000 try firing a federal employee who's a lawyer which is not easy to do and if you can't institute a

00:03:41.160 schedule f they have due process guarantees you have to fire them for cause um they will band together

00:03:47.020 so i do think i do believe in this idea of career professionals who those on the other side call the

00:03:53.380 deep state deep say you see the resistance that's building right there

00:03:59.520 with elon musk and doj and vivek ramaswamy and of course working with the great russ vote

00:04:06.980 um you have many sides of the resistance you've got the sanctuary city mayors

00:04:14.540 and i'm in the washington post today saying president trump i don't think he he's got this

00:04:20.080 phrase no games he's not going to allow games to be played when he starts the process of these

00:04:25.920 mass deportations which he's going to do it in a humane way but he's not going to allow people 0.99

00:04:30.840 to game the system and i believe he's going to play smash mouth with the mayor of chicago and the mayor

00:04:37.340 of denver and other mayors so they want to be tough guys and say no we're going to nullify uh the law

00:04:44.420 to start these uh deportations i think they got another thing coming but you also see the resistance

00:04:50.800 inside the administrative state and they're already making big efforts to in the budget process and

00:04:55.680 the appropriations process to start going after programs and programmatically deconstruct this

00:05:02.080 but right there you say well i try to fire a a lawyer well they're going to fire a lot of lawyers

00:05:06.600 just are and they got starting doj they got hit that place with a blowtorch 0.51

00:05:12.140 and uh and they gotta they have to gut it because it's corrupt and it's destructive

00:05:18.840 and we just had a national referendum on that and guess what you lost the american people

00:05:24.240 had the back of donald trump and said yeah we've seen trump he's got 92 felony indictments

00:05:30.160 he's got 32 he's guilty of 32 felonies guilty of 32 felonies guilty i should put that in quotes guilty

00:05:37.180 on some kangaroo court in new york that's now dropped everything american people rendered their

00:05:43.820 verdict i want to go and if we i want to go back to one of the big things that's happening and that is

00:05:50.240 this issue of tariffs and for the positive note starting last night and even some today now their

00:05:56.940 hair's on fire and they're saying oh it's going to cause inflation these are people didn't care about

00:06:00.820 inflation at all now it's like you know holy writ but everything's inflation but at least

00:06:07.060 you're having a policy discussion about about tariffs it's one-sided they're lying to you but

00:06:12.880 hey at least we're at a pure trump hate in talking about trump's economic policies but i want to bring

00:06:18.620 in spencer morrison the author of reshore first off spencer you are a prolific writer on this topic

00:06:27.040 of globalization and economic nationalism just explain to our audience in your mind what that means

00:06:33.580 and why globalization has worked against the american worker sir well good evening first of all thanks

00:06:42.320 for having me on your show i really appreciate it um globalization has been um in utter disaster for

00:06:49.600 the american workers i've been writing on this topic since about 2015 uh what we've seen uh time and

00:06:56.900 time again uh is every time america signs a free trade deal uh or engages in uh looser trade restrictions

00:07:05.640 with a different country there's an asymmetrical trading relationship that develops america as the

00:07:11.720 developed nation with the technological advantage um runs large and chronic trade deficits with all of

00:07:20.900 these countries um and as a result what we see is a rebalancing of american industry uh once america was at

00:07:28.980 the uh at the core uh of the end of the later stages of the industrial revolution and of course the the

00:07:37.340 subsequent technological revolution um that's no longer the case a lot of uh the manufacturing um you know

00:07:45.200 in the in the old sort of iron belt steel regions uh has been moved to countries like china it's been

00:07:51.500 moved to mexico japan uh and as a result of uh so-called freer trade uh what we've seen is american

00:07:58.880 industry has been hollowed out the american worker um has been left um uh with significant unemployment

00:08:07.920 uh wages which were at one time uh rose in lockstep with worker productivity uh in about 1971 1972

00:08:16.920 um that decoupled and what we've seen is that although americans are working more productively

00:08:23.260 than ever uh wages simply haven't kept pace and a big portion uh of the reason for that uh is that

00:08:31.600 there's a lot of downward pressure on wages in this country because american workers are now subjected

00:08:36.740 to competing directly uh with workers in china um and there's many reasons for that um labor is

00:08:46.840 plentiful in these countries environmental regulations labor regulations are very lax

00:08:51.900 um so there's just no apples uh to oranges comparison uh between you know a foreign country like china

00:09:00.080 and then the sort of labor markets you have in america so what you have is a when they say it's

00:09:05.940 free trade and free competition uh what it is is it's unsymmetrical and unfair trade

00:09:11.580 let's talk about that because when we first came on the scene and started writing and had people

00:09:19.460 write about this a breitbart the the the classic republicans like went through full meltdown oh my

00:09:24.220 god it's gotta be free trade tell me about what free trade actually stands for and and and i think

00:09:29.520 we're in a mercantilist system where the chinese communist party is the the smartest and toughest 1.00

00:09:34.900 mercantilist around so describe the system and why all these people that talked about free trade all

00:09:41.600 the time and not fair trade really played into the hands of the mercantilist sir

00:09:46.100 well it's actually a very interesting point um what we have right now and i've i've done a bit of

00:09:54.440 research on this topic um what we have um i just want to take you back to the to the american revolution

00:10:03.460 one of the main undercurrents um of the american revolution was economic freedom leading to

00:10:12.480 political freedom um a lot of people don't know this but in the approximately 50 years leading up to

00:10:20.260 the american revolution uh the british government imposed um a number of industrial um limits on what the

00:10:27.940 american colonies uh were able to do uh for example they banned uh the export of um blueprints

00:10:37.220 for new industrial processes uh they banned the uh the opening of new steel mills um and this was all

00:10:44.740 employed by the british government to make sure that industry manufacturing uh you know the manufacturing

00:10:52.020 of arms of ships uh of of new machinery uh stayed in britain uh and what this did is it locked america

00:11:00.660 into a mercantil trade relationship with britain uh where great britain was exporting uh high value

00:11:08.100 manufactured products to the colonies and the colonies were in turn selling uh low value

00:11:14.500 uh agricultural output such as uh tobacco uh or cotton um this was certainly not in america's best

00:11:25.540 interests a lot of uh revolutionary material for example uh thomas paine in particular alexander

00:11:32.580 hamilton uh pushed very strongly for an industrialization program uh for america uh of course one of the first

00:11:40.340 um acts that were passed uh after america gained its independence uh was to uh institute tariffs on um

00:11:49.860 manufactured products from europe uh and this led uh you know directly to the industrialization

00:11:57.380 of america which of course turned america into the uh the richest country in the world uh what was

00:12:03.620 this this this this plan this plan this plan was hamilton's plan wasn't it he laid this out

00:12:10.020 this was hamilton's plan because he wanted to build the american system it was called right go ahead

00:12:15.780 that's exactly it it was called the american system uh the core element of the american system

00:12:20.900 were high trade tariffs on manufactured goods uh now since about uh 1973 and into the 1980s

00:12:29.540 uh these uh these tariffs have uh all but been abolished uh in particular uh in 2001 china joined the world trade

00:12:38.420 organization um and we've had um uh exceptionally liberal uh trade it's been one-sided with china

00:12:49.060 um and as a result uh the economic paradigm has actually been shifting uh into that mercantile relationship again

00:12:57.220 um um there's uh if you uh i'll give you one good example of this if you compare the sorts of products

00:13:06.340 that america was importing and exporting to china in 2001 when they joined the world trade organization

00:13:12.420 and you compare that to today uh what you'll find is that in 2001 america was exporting a lot of high

00:13:20.020 value manufactured products such as um electrical components uh aircraft uh components uh things like

00:13:28.340 that um in return america was buying uh what we'd say uh would be low value manufactured output for

00:13:36.100 example we bought a lot of clothing we bought a lot of shoes from china that's been flipped on its head

00:13:40.740 uh 20 years later uh at this point america's largest exports to china are uh largely unrefined agricultural

00:13:50.820 products you know we ship them a lot of soybeans they buy grain they buy some oil from us in exchange

00:13:57.940 the biggest category of goods that we purchase from china now are manufactured products electronic

00:14:04.820 components computers uh almost all of america's uh silicon chips that go in everything from our

00:14:12.020 phones to our laptops to our cars it all comes from china but hang on they essentially they essentially

00:14:17.460 look at us we we export our trade relationship with them we're like a developing nation we send them 1.00

00:14:24.180 raw materials and natural resources and lumber and and things like that and uh in agriculture products

00:14:31.060 but we we send them very little that's up the value added manufacturing chain economy we're we're

00:14:35.940 essentially in their mind the way they look at it a developing nation as far as at least trade goes

00:14:41.860 am i incorrect on that you are 100 correct and it's only got worse since 2001

00:14:51.860 is not is the fact that it when uh when tanneman square uh happened in in bush 41 since galcroft over

00:14:59.860 and they said you got to clean up your political act because we we can become partners the world

00:15:04.500 trade or the wto membership most favored nation membership the the clintons remember the chinese

00:15:10.820 generals are bringing bags full of money over to the white house but the key the linchpin to the world

00:15:16.100 global system the linchpin to the world manufacturing system and please understand this at your thanksgiving

00:15:23.620 table tomorrow is predicated upon the slave labor of lao baijing the system works because the chinese 1.00

00:15:32.020 common man and woman is essentially a slave and works for slave wages and that has a structural uh 0.96

00:15:39.780 element of the architectonics the architecture of the world economic system is based upon the slave labor 0.78

00:15:47.700 of china and since they have such huge excess capacity and they essentially export that excess

00:15:53.540 capacity right in in lower wages that you can no working men and women throughout the world can never

00:16:01.540 really get uh appropriate wages because the largest workforce in the world works for slave wages

00:16:09.300 is that not correct that the linchpin of this is the slave labor of the chinese people sir 1.00

00:16:15.300 uh yeah it's very important to understand uh when we're trading with china china is an authoritarian 0.64

00:16:26.260 uh regime uh the chinese uh workers certainly do not have the same labor protections that american

00:16:32.100 workers have uh it's not just the chinese labor though and uh and mr bannon you're correct on that point

00:16:38.180 uh it's also uh the desecration of the environment in china um yes yes costs that uh would be borne

00:16:48.340 by american producers you know costs to uh the the desecration of rivers or the oceans pollution in

00:16:55.780 general uh those are simply not priced into goods from china those costs are what we call uh externalized

00:17:02.580 right uh so what we're doing is we're trading uh trading for chinese goods that appear cheap on paper

00:17:10.500 but they're not actually any cheaper because the environment is being destroyed and there's an

00:17:14.180 enormous cost associated yeah they're actually more expensive what spencer's talking about is since

00:17:21.700 the 1960s that we took this theory of the commons the environment was the the effluent the the discharge

00:17:29.860 from your production process the the the reception of that was not taken into account in the cost of

00:17:36.180 production you just dumped it into a river you dumped it into a field you chemical plants in new 0.89

00:17:40.340 jersey you just dumped it out back you didn't have to take that to account eventually because of

00:17:45.780 environmental laws and other things you had to include that in the cost of production the the

00:17:50.500 the waste product of the industrial process obviously has to be included into the production costs and

00:17:56.100 that's why our goods cost a certain amount and and people may say we're certain of it's over

00:18:00.580 regulated some people may say it's not regulated enough it's whatever it is whether that's too far

00:18:05.860 or too little we've put a cost on it and that cost is now included in the cost of production in china

00:18:12.020 that ain't the way it rolls they just dump it and so there's no full value is no full accounting

00:18:19.940 of the full cost and that's why they can sell it cheaper but dispenser's point it's incredibly

00:18:25.140 destructive not just to the poisoning of china for the lao beijing which live in an essentially a 0.99

00:18:32.020 poison you know they work as slaves for slave slave labor wages oh they also have to live in a

00:18:37.940 poisoned environment because the chinese communist party and in the wealth they accrued themselves 1.00

00:18:42.740 they're not interested in the environment they just dump it in there and that's not included and

00:18:46.660 that's part but this is the way the world's economic system works and people have to understand that

00:18:52.500 wall street and silicon valley it's very easy for these progressives to sit there and look at you

00:18:57.380 and say no no no you're not dei and you're not perfect and you're too white or you're you're saying 0.87

00:19:02.500 bad things about trans people and you're not showing respect they are in business with the most corrupt 1.00

00:19:10.420 dictatorship in the history of the world that's killed hundreds of millions of chinese people and

00:19:15.860 they're in business with them and they're fine being in business with them they look the other way

00:19:19.940 they go to their parties they live in the hamptons they're out in silicon valley all these guys they're

00:19:24.260 thinking great thoughts and big thoughts about going to do this and go do that and they're in

00:19:28.580 business with them look at sequoia capital they're in business with them active business this is equivalent

00:19:33.780 to being in business with hitler and the nazis in the 1930s this is equivalent to being in business

00:19:40.260 with joseph stalin after what he did in the ukraine in the 1930s when he starved five million people to

00:19:45.140 death he starved five million people let me add in the middle of what is the equivalent of european 0.57

00:19:50.900 kansas in the 1930s these are the crimes of the capitalist these are the crimes of wall street and

00:20:00.180 silicon valley today and don't think the chinese people lao bai jing aren't keeping score

00:20:07.060 they know who's a partner with who's enslaving them and that's why spencer and others have argued for

00:20:14.340 years hey there's a practical thing that we have to do to get high value manufacturing jobs back for

00:20:19.940 your people and your citizens but there's also a moral component to this a huge moral component we

00:20:25.940 can't look away it's easy to look away wall street looks away hollywood looks away right hollywood

00:20:33.220 will only make movies that that are approved by the chinese communist party because they want access to

00:20:38.260 this massive marketplace silicon valley hollywood wall street and the puppets in the in the us

00:20:46.500 government are in business with them in business with them it's equivalent to being in business with

00:20:53.460 hitler and the nazis in the 30s 30s and it's equivalent knowing that the camps are being set up

00:21:00.580 right or being in business with stalin after 1933 34 35 after the moscow show trials and when we knew

00:21:08.420 although the new york times wouldn't report because guess what the reporters were in business with them

00:21:13.860 that they had starved five million people to death in the equivalent of kansas which was the bread 0.94

00:21:21.380 basket of the ukraine which was referred to at the time so spencer you you've done this great work

00:21:28.660 on globalization and everything that you've worked on now you're focused on reshoring and you've got

00:21:33.540 this book reassured that i want everybody to get into read walk me through what is reassure

00:21:39.700 what does it mean why is it important and why is it now that you've been one of these guys pointing out

00:21:44.900 the sins of globalization why have you focused now on this

00:21:51.460 well so in this book um what i've tried to do is two things so number one uh we're making complicated

00:21:58.100 complicated issues really simple so i'm answering the big question how do we grow the economy the

00:22:04.980 second uh reason that i wrote this book uh is i wanted to explain uh an effective foreign trade

00:22:12.660 policy what is it going to look like uh so you know the thesis of the book is uh tariffs are going to

00:22:19.780 be a key tool to making america rich again uh and uh and helping us grow the economy increase our

00:22:26.580 technology uh i think this book is really important right now uh this is uh this is trump's uh second kick

00:22:33.060 at the can uh and the globalists do not want trump to succeed uh on his uh in on his tariff agenda right

00:22:43.140 uh they were pushing back against that enormously and in his first term and it's going to be the same

00:22:48.660 deal in the second term and the reason for that is very simple uh political independence uh is predicated

00:22:55.460 upon economic independence right the founding fathers knew this um and and it you know it's very obvious

00:23:04.100 you can't be free uh unless you have the ability to manufacture uh the goods that you need to maintain

00:23:12.820 that freedom um so i if america wants to be free if we want to be prosperous we need to bring the

00:23:20.500 factories back in particular we need to look into into bringing semiconductor technology back to america

00:23:28.100 this is really really a big problem america imports all of its semiconductors right now

00:23:34.020 from abroad almost all of them the semiconductor factories are located in taiwan

00:23:39.780 and even worse the machinery the prints the silicone chips is actually created in the netherlands

00:23:47.780 uh america has essentially no role to play in the manufacturing uh of computers at this stage

00:23:56.900 and uh as everybody knows i mean we're talking on on computers right now there's computers in your

00:24:02.260 cars they're in your phones they're in your home appliances uh america cannot manufacture uh silicone chips

00:24:11.140 on a scale that we would need to even perpetuate our economy so right now america is entirely

00:24:16.740 imported dependent on china uh in particular but also on on other countries for various other goods

00:24:26.580 there's huge national security implications to that uh if there were for example to be a conflict that

00:24:32.100 broke out uh between america and china the fact of the matter is is that our economy would be completely

00:24:41.140 uh shut down um uh that puts us in a precarious national security situation but it also uh limits

00:24:49.860 our long-run economic growth um the point that i make in the book is a long-run economic growth

00:24:56.260 yeah go ahead no no you keep going hit your punchline well i was going to say the key to long-run economic

00:25:04.260 growth is developing new technology so right now what we've done by by exporting our manufacturing

00:25:11.380 especially our high-valued technologically advanced manufacturing is we've cut the rungs out from the

00:25:17.460 bottom of the ladder um and we're no longer at the cutting edge of technological development i mean so many

00:25:26.740 research dollars are now being spent in mumbai as opposed to boston it makes absolutely no sense we're

00:25:33.220 shooting ourselves in the foot in the long run here spencer hang on for one second we're going to

00:25:38.740 hold you over um we're going to go out with uh when the man comes around one of my favorite songs the

00:25:49.940 cover of the great johnny cash song mo bannon's also going to join us we're going to talk about the va are

00:25:55.140 vivek vivek and elon going to do away at the va that's what some folks are trying to spread i don't

00:26:02.740 don't think so captain bannon doesn't either we're going to get to the bottom of all of it we're

00:26:07.380 going to continue with spencer morrison the author of reshore when the war room continues in just a moment

00:26:15.860 hear the trumpets hear the piper

00:26:22.660 100 million angels singing

00:26:26.980 multitudes are marching to the big hell drum 0.99

00:26:32.820 voices calling voices crying

00:26:36.660 some are born and some are born and some are died

00:26:40.900 but salfa and omega's kingdom come

00:26:45.700 and the whirlwind is in the thorn tree

00:26:50.340 the virgins are trimming their wicks

00:26:54.500 the whirlwind is in the palm tree

00:26:58.900 big victory on five november now the work can finally start on the big issues facing

00:27:16.580 the country one of the biggest is the national debt and the deficits that drive it hey you think

00:27:22.900 the country's broke the country is broke we're just printing money to keep this house of cards

00:27:28.260 going the strategy remains the same for you you got to diversify diversify your savings that's why

00:27:34.020 buy gold from birch gold so many things are out of your control out of the president's control

00:27:40.340 it's important to have a safe haven for your savings birch gold group my gold company will help

00:27:46.420 you convert an ira or 401k into an ira into physical gold let me repeat that convert your ira or 401k

00:27:55.300 into an ira in physical gold and the best news it doesn't cost you a penny

00:28:02.420 text ban into 989898 get your free info kit plus right now through black friday you receive a free

00:28:09.860 one ounce silver eagle for every five thousand dollars you purchase let me repeat that a free

00:28:16.100 one ounce silver eagle for every five thousand dollars purchase protect your savings with birch gold

00:28:22.580 text bannon to 989898 and claim your eligibility for your free silver today when the doctors at

00:28:32.820 brick house nutrition announce a black friday sale it's a big event now is the time to save a bundle

00:28:39.860 while you reboot and optimize your health this is the biggest sale of the year on everything that

00:28:45.460 includes field of greens the life-changing super fruit and vegetable drink that promises your

00:28:50.980 doctor will notice your improved health or your money back the black friday sale also includes lean the

00:28:58.420 physician-formulated weight loss phenomenon that helps turn and burn excess fat into energy

00:29:04.740 even radiance the collagen accelerator with four times more health and anti-aging power

00:29:11.140 then that influencer collagen yay that's on sale too from weight loss to sleep aids from creatine to

00:29:18.980 whole food bars they're all on sale visit field of greens.com and use code sale that's promo code sale

00:29:27.460 at field of greens.com and do not forget that's promo code sale at field of greens.com do you ever think how

00:29:37.460 can i work this hard and still be in debt the piles of overdue bills the threatening phone calls and

00:29:43.860 never having money to do anything it's just won't stop you're trapped in debt done with debt is the way

00:29:51.140 out they've developed aggressive new strategies to end your debt permanently done with that stands

00:29:57.780 between you and harassing bill collectors they tirelessly negotiate with your creditors to lower

00:30:03.380 or even forgive or even forgive what you owe and they do it all without bankruptcy or new additional

00:30:09.460 loans as one client raved quote our phone call saved us a fortune i wish we did this long ago end quote

00:30:19.060 bottom line done with debt has unique strategies to get you out of debt faster and put more money in

00:30:25.300 your pocket every month but you need to hurry because some debt solutions are time sensitive and you

00:30:31.620 don't want to miss out visit done with debt.com talk with one of their debt relief strategists for

00:30:37.620 free let me repeat that go to done with debt.com and talk to one of their debt relief strategists for

00:30:43.460 free you have nothing to lose except your debt go to done with debt.com that is done with debt.com

00:30:51.860 do it today action action action we should expect should he do this day one 25 percent tariffs on

00:30:59.460 canada mexico 10 percent of china like what what that would do look the most important thing to

00:31:06.100 understand is that a tariff is a tax on americans when home depot wants to bring a washing machine

00:31:12.180 across the border um it's actually home depot who has to pay the tariff to get that washing machine

00:31:18.260 out of customs so even at a very literal level it's not china or korea that pays um and so uh then home

00:31:26.740 depot has a choice uh it can swallow the hit to its profit margins or do what in fact it did when

00:31:32.820 this all occurred uh in the in the last trump term which is like most businesses when its costs go up

00:31:38.820 it passes those costs along in the form of higher prices for americans and it's not just home depot

00:31:45.220 is not the only one that's going to do it in fact american washing machine companies raise their prices

00:31:50.180 too because competition from abroad is part of what forces american companies to offer us better deals

00:31:56.180 get rid of that competition we're all going to get worse deals well you know i think that countries

00:32:02.100 right now are trying to figure out what they want to do in terms of retaliatory tariffs and how they

00:32:07.140 want to respond um i think you know what i would say is like the whole thing is think about it as a human

00:32:13.540 story um you know we have humans are hurt by tariffs because it's not countries that trade it's people that

00:32:21.940 trade right so if i can do something more efficient than somebody in china and they can do something

00:32:29.300 else more efficient than me then we get huge gains from yeah uh right now and the great tony lee has sent

00:32:37.860 me through grace strong of a tweet out but this is from the last two nights i repeat blast individual

00:32:45.780 tariffs all you want but please stop falling into the tariffs are bad or thoughtless or tariffs is a sales tax

00:32:51.780 slogan slogan tariffs are an essential part of industrial policy labor policy and environmental

00:32:57.140 policy tariff absolutism is frankly bizarre this came after president trump last night about 25 percent

00:33:05.300 tariffs across the board on mexico canada and uh in china that was as uh jeff stein of the washington

00:33:12.100 post pointed out not targeted like on tariffs on avocados from mexico this was across the board

00:33:17.140 and they we trade i don't know a couple of trillion dollars a year those are our three biggest trading

00:33:21.060 partners but you see a complete and total meltdown what's the total meltdown about democrats used to

00:33:28.180 support uh tariffs to to make sure that you could you could protect jobs here in the united states

00:33:33.700 why is it now that trump mentions it it's tariffs are evil tariffs are tax tariffs are inflationary

00:33:39.780 or is is the progressive left so upside down they don't even know what side of the argument they're on

00:33:45.220 any more uh spencer morrison right so we've seen this uh back in 2015 2016 we're seeing the exact same

00:33:55.620 rhetoric again and the reality is is that these chicken littles were wrong uh in 2016 and they're wrong again

00:34:02.820 um anybody can go ahead and look at the historical data and see that prices were lower under trump than

00:34:08.580 they were uh under biden or obama everybody knows that it's not a secret um so this is just forward

00:34:17.940 looking rhetoric but if we look you know at the logic of how tariffs actually work uh what they're

00:34:24.500 saying doesn't make any sense so i'd like to just very briefly explain uh you know what a tariff is and

00:34:29.700 how it actually operates uh so first things first a tariff is a tax on imported goods

00:34:35.300 uh most political commentators uh just about everybody on the topic who discusses it actually

00:34:43.540 uh wrongly assume that uh tariffs are like a sales tax for exactly for example that gentleman he

00:34:49.860 mentioned that if uh there were tariffs on washing machines you would see higher washing machine

00:34:55.220 prices at home depot uh this is entirely untrue uh a sale uh unlike a sales tax a tariff is not applied

00:35:03.780 to a product's retail price so if there's a 10 percent uh tariff on uh toasters for example you're not

00:35:13.220 going to see a 10 percent increase on the sticker price at walmart uh this is because uh tariffs are

00:35:19.940 levied on what's called the first sale price that's the price that american corporations or their foreign

00:35:26.180 agents uh pay to the foreign vendor who originally built the product or the component of the product

00:35:32.420 uh i just want to walk through an example we're going to make sure that everybody understands

00:35:37.860 exactly how tariffs work and we're going to use an example uh of a toaster okay so let's say for

00:35:44.420 example america implies a 10 percent tax or a 10 percent tariff on all chinese toasters uh companies like

00:35:53.380 black and decker for example they manufacture toasters in china uh let's say for example the toaster

00:35:58.420 retails for 60 bucks at walmart the media says okay it's 10 tax toasters are going to be 66 a toaster

00:36:08.100 it's not true this is because the american distributors they buy their toasters uh from

00:36:16.420 a vendor usually located in hong kong for maybe 14 per toaster

00:36:21.540 that vendor in hong kong he originally purchased the toaster in china for say seven dollars per

00:36:29.540 toaster what this means is that that ten percent tariff is not applied on the sticker price of sixty

00:36:34.980 dollars it's not even applied on the the vendor price of fourteen dollars it's applied on the initial

00:36:42.180 sale price of seven dollars which means that on a sixty dollar toaster a ten percent tariff equates to

00:36:48.660 just a seventy cents uh increase in cost so that that's how a ten percent tariff uh actually would

00:36:55.540 only increase the value of a product by one point one five percent and that's going to change you know

00:37:01.140 depending on which good we're talking about um in reality uh we're likely uh not going to see any

00:37:08.180 increases in price um a tariff is like a surgical strike on a particular country right so if america were to

00:37:15.220 levy taxes on chinese toasters uh so the supplier uh or the american company could simply buy them

00:37:22.180 from a different country they could buy them from america and not pay any tax whatsoever so in reality

00:37:27.860 the american consumer is unlikely to see any increase as a result of a tariff and for good measure what

00:37:35.620 the government could simply do is reduce the sales tax by an equivalent amount and americans will pay

00:37:41.540 zero dollars extra for any price but it's going to do an an enormous amount of economic pressure

00:37:48.900 on whatever country is being targeted uh in our example that would be china um and i just want to go

00:37:56.340 back to one point you made earlier yeah yeah yeah go ahead keep keep going keep going well earlier you

00:38:03.780 mentioned uh that the difference in price between manufacturing and china and america is actually

00:38:08.580 not as big as you'd expect uh and i just wanted to put some numbers to that okay so there's been

00:38:13.780 research has been done uh to determine how much it costs to manufacture something in china versus america

00:38:20.660 not including those externalities so if we're just talking about the sticker price in china versus

00:38:25.620 the sticker price of a manufactured product in the states uh what they found is that on average

00:38:31.140 if it costs one dollar to manufacture something in america the cost savings are only four cents to

00:38:38.740 manufacture it in china so it costs 96 cents to manufacture it in china when you add in the price of

00:38:44.500 human suffering when you add in the price of the environmental degradation uh pollution it's actually

00:38:51.220 more expensive to manufacture in china so what i would imagine is that as we reshore factories to america

00:38:59.140 uh we're going to see uh not an increase in the cost of goods but actually a decrease in the cost of

00:39:07.620 goods in the long run well part of this also is the transportation cost i want to hang on for one

00:39:13.940 more minute mo's ready but uh cameron my crack producer do we have kevin o'leary i want okay uh

00:39:21.300 spencer morrison is with us the author of the book reshoring i want to thank gray delaney for making this

00:39:27.780 uh available i'm so busy right now but he got it in our nose he said steve this is perfect for the

00:39:31.940 war room posse you guys got to read it it's a fantastic book i want to play kevin o'leary

00:39:37.860 uh i think he was on cnn uh spencer let's play it i want to have your observations go ahead let it rip

00:39:43.620 i would like to go to defcon one with china tariffs 400 percent i brought it up yeah bring the supreme 0.52

00:39:49.460 leader to washington or crush his economy until he has riots in the streets again we've had strategies

00:39:56.740 to deal with china no we haven't oh absolutely one administration since 99 has dealt with i thought

00:40:01.860 trump was going to be tough on china he had four years he's going to get i was going to say that

00:40:06.260 this is time to really put 35 tariff enough for china then because he says it's going to be 10

00:40:11.460 higher than mexico and canada no it's not kevin o'leary dropped a bomb there last night he he has

00:40:19.860 said out loud what many of us have been talking about it and saying behind the scenes you need to

00:40:24.660 go to defcon one to go right at the chinese communist party they're teetering because they just had to

00:40:30.020 infuse their economy with a trillion dollars at the local and regional level because of all the

00:40:36.660 uh commercial and residential real estate that's just sitting there uh your thoughts uh spencer we

00:40:43.140 got a balance but i'd like your thoughts about the 400 percent tariff to go to defcon one to destroy

00:40:49.300 the opium war that the chinese communist party is is playing on the american people killing i don't

00:40:54.420 know 70 or 80 000 americans every year fentanyl sir we need to get the factories out of china and we've 0.98

00:41:01.380 got to bring them back to america so whether or not the the tariff is 400 percent or four thousand

00:41:06.260 percent uh it really doesn't matter what we need to do is we need to come up with a number that's

00:41:10.980 going to be big enough to bring the factories back if it's only four percent good enough um

00:41:18.980 but you know going forward there's no way out of this we need to bring the factories back home

00:41:23.780 it's going to make america rich it's going to make us uh powerful uh and it's going to guarantee

00:41:29.700 our our freedom economy and national security uh for generations to come

00:41:37.060 uh where did they go to get your writings where they go to get the book what's your website social

00:41:41.860 media i want people to get to know you sir because you're gonna be a big part of this conversation going

00:41:45.700 forward right i appreciate that so the book reshore is coming out on january 22nd it's available

00:41:54.020 from calamo press uh i'm also the editor-in-chief of the national economics editorial uh you can find

00:42:00.820 my work there uh i uh often have columns on that are picked up by other publications including real

00:42:08.260 clear politics uh i've been on the daily caller the foundation for economic education american greatness

00:42:14.260 um well spencer thank you so much very good the book comes out in january uh we wanted spencer to get

00:42:25.700 in here because the last 48 hours they've melted down on president trump throwing down on tariffs

00:42:32.580 it's a central part of his economic policy to bring high value-added manufacturing jobs back here to the

00:42:37.460 country spencer have a great uh thanksgiving and look forward to having you back on the show

00:42:45.860 you know we're losing besant uh you may lose ej and tony we're losing navarro

00:42:51.060 we're maybe losing jay jason trenert uh we got to restock all of our contributors on the economic

00:42:57.220 side are going in the white house so they'll be very limited in their media appearances and then

00:43:01.860 only in an official capacity so but we're very proud that scott has been uh designated as a nominee

00:43:08.340 for secretary of the treasury of course kevin hassett we know very well great guy the head of the national

00:43:13.540 economic council uh rumor has it that peter is going to be doing something in the white house

00:43:18.900 uh or maybe one of the agencies who knows but a senior economic uh job uh rumors about jason trener

00:43:25.060 who's on here all the time ej and tony we don't know where the team's going to fall out we hope

00:43:31.780 that president trump takes the entire gang over there because they're absolutely absolutely incredible

00:43:36.100 uh and uh very proud to have them as our commentators and analysts over the last couple of years

00:43:42.580 but we recommend everybody and we would hope that every commentator and contributor to the show

00:43:48.020 gets a shot to help president trump there's three thousand non-senate confirmed jobs of course

00:43:52.900 russ vote who's been a contributor since 2021 and uh and uh scott besant have to be senate confirmed

00:44:01.060 russ is head of omb um scott besant as secretary of treasury of course bill mcginley is over there

00:44:07.940 as white house counsel uh so good on you uh we whether you're taking a senate confirmation job or one of the

00:44:14.020 other jobs uh good on you uh patriot mobile glenn story on the team texas wouldn't be red was not for

00:44:21.220 glenn story on the great work remember and we're going to talk about this on friday the patriot

00:44:25.780 economy stop giving your money to people that hate you and your values uh patriot mobile is a christian

00:44:32.420 company run by christians that believe in the judeo-christian west and the values and tenets of

00:44:37.940 it and give back a portion of the profits uh to uh charities and to people doing the work for like

00:44:44.420 first responders and second amendment also tax network usa tn usa slash bannon don't let that

00:44:52.100 envelope from irs irs now has got to get as much revenue as possible if you've got a letter from

00:44:57.460 them don't think by putting a drawer it's going to go away it doesn't go away they're pretty good at

00:45:01.220 tracking people down it's not the end of the world it's just a process take a deep breath tnusa.com

00:45:08.900 slash bannon go talk to next before you call them it'll wait a little while you don't have

00:45:14.660 to call them right away get the envelope out look at look at what they're saying call tax

00:45:19.060 usa.com they'll take the anxiety away and show you that this is a process like every other thing in

00:45:24.340 life just a process you're gonna but you have to engage if you keep it in the drawer

00:45:28.580 it only kind of grows and we don't want you to fear it fear not you're part of the war room posse

00:45:33.460 you're resilient we're path coffee the navy seals tage gill and the team said hey i got the best

00:45:39.940 weapons we got the best diving equipment we got the best parachute equipment we're navy seals

00:45:45.860 with sea uh land uh commandos everywhere they're paratroopers they're frogmen they can go ashore

00:45:55.380 they got the best weapons they're you know the bravest of the brave and some of them go a little

00:45:59.220 hollywood a little a few couple of three progressives in there but generally overall great

00:46:03.620 guys and of course the navy's so proud of their frogmen so proud of their commandos but what tage

00:46:08.340 said is hey we drink standard navy brew you can get on some you know crappy destroyer bannon that you

00:46:14.980 served on i said back off don't talk about the uss paula foster but tage had a vision to make a coffee

00:46:21.140 as great as the equipment of the navy seals and he's done it warpath.coffee do not take my word for it

00:46:27.700 do not take captain bannon's word for it do not take grace chong's word for it go to the site

00:46:33.380 warpath.coffee slash war room and uh check out the five thousand five-star reviews from posse members

00:46:41.780 you will check it out and you will never go back the bitterness has been taken out you can drink it

00:46:45.780 all black which is the way coffee should be consumed captain bannon thank you for joining us mo on this

00:46:52.100 holiday weekend i got a question i saw and i knew you would have the answer they had a the story now when

00:46:57.460 i read it it wasn't a lot of details but the headline was to it's one of these things to stir

00:47:02.500 the pot it said that uh vivek and elon musk are going to do away with the va i think the headline

00:47:08.820 said going to do with the va then it turned out that hey they're looking at every government agency

00:47:13.620 and they're looking at discretionary spending and that's going to be thinking clearly they're

00:47:17.540 going to shut down the va is there any truth to that rumor that vivek and uh elon are looking to shut

00:47:23.380 down the uh the veterans administration ma'am there is no truth to that and like you said

00:47:29.940 that was a headline to stir the pot and that actually came from a employee of ron philipkowski's

00:47:37.540 and it is meant to strike fear and so many people especially so many veterans that are in

00:47:44.340 our communities and elon and vivek they want to get rid of the bloat that we have in government

00:47:52.820 agencies so it's going through each government agency and seeing what in their budget needs to be

00:48:01.060 actually there and what we need to spend the budget on and what we can get rid of within each department

00:48:07.860 in the va there are things that need to be removed from the budget the budget needs to be audited you

00:48:14.260 and i have had this discussion there are elective surgeries that are done that should not be done you

00:48:20.580 know that were not service connected issues should not be done we should not be paying for gender

00:48:26.820 reassignment surgery with our taxpayer money for the va that needs to be looked at in an audit of the

00:48:34.100 budget and if that part of the va needs to be gotten rid of then get rid of it but that's what

00:48:40.260 elon and vivek that's what their mission is is to get rid of the bloat and the unnecessary spending in

00:48:46.660 each of these departments across our government by the way i think they may actually take it a step further

00:48:53.780 than that i think they're besides the bloat look i know it's about waste fraud abuse i got that part i

00:48:58.180 know they're going to go for the bloat that's their first pass i do think with russ vote and this is why

00:49:03.220 russ is so important we're so proud he's over at omb and we're so proud the fact that uh was a molly

00:49:08.900 jong fast is in full meltdown uh because of this because she knows he's a gentleman and also knows

00:49:15.380 he's a brilliant hammer that they're going to start looking at the deconstruction administrative

00:49:19.220 state that's saying hey there's just certain things and maybe these things are efficient but

00:49:23.140 we just shouldn't be doing that that the government shouldn't be doing this that one and we are we can't

00:49:27.300 afford to do it so i think you're going to get some of that has what's come out as i know because

00:49:32.100 you're very close a lot of people at the va are people the va starting to get concerned now are

00:49:36.740 they starting to get worried not certain people within the va system but we also need to look at

00:49:44.740 the fact that a lot of vas are under actually underemployed we're not hiring employees at a rate

00:49:52.500 for the amount of veterans that are coming into the system and we also need to look at the fact that

00:49:59.220 we are treating veterans we have two age gaps 65 and over and under 65 we have an increase

00:50:06.820 in veterans under 65 coming into the system but we don't have enough providers for those veterans so

00:50:12.740 that's something else that needs to be looked at a lot of people within the va are not concerned

00:50:17.140 because we need those positions filled we actually need more positions within the va

00:50:21.620 30 seconds give me a sacred human health read ma'am so i have i know your favorite is the grass-fed

00:50:31.060 beef liver i am actually a fan of the other three products that sacred human has we have the sleep so if

00:50:39.300 you don't get a good night's sleep on your my pillow if you don't have your my pillow and you don't

00:50:45.060 get a good night's sleep like when you're traveling and you can't bring your my pillow with you you can

00:50:49.380 take your sleep from sacred human health we also have the magnesium and vitamin d3 that helps it's a

00:50:56.260 good help with wow and sacred human actually just came out with immunity so it's flu it's um cold and

00:51:03.380 flu season we're heading into especially when if you have young kids that are at daycare picking up all

00:51:09.300 kinds of germs make sure you have your immunity from sacred human health no flu shot take the immunity

00:51:16.820 from sacred human health dot com go check the information mo let's enjoy thanksgiving together

00:51:23.460 thank you check you after the show and happy birthday too

00:51:29.780 oh my gosh there you go i knew you'd do it okay thank you girl uh tomorrow i'm going to be around

00:51:36.420 for a special thanksgiving special that the producers and i worked out you're not going to want to miss

00:51:41.460 this this is one of the most eclectic shows we've done the thanksgiving special and then black friday

00:51:47.540 special on black friday we're here tomorrow friday and saturday in the war room see you tomorrow

00:51:53.860 morning we'll include things like preservatives artificial ingredients and other additives that

00:51:59.380 really aren't benefiting your health so that's why we created sacred human really trying to fill this

00:52:04.500 gap of quality supplements and of course the beef liver being our flagship products

00:52:09.700 for those who don't know beef liver is loaded with highly bioavailable ingredients such as vitamin a

00:52:15.700 b12 zinc coq10 etc and because it is 100 grass-fed and natural your body is able to absorb these

00:52:24.580 nutrients far better than taking any other synthetic multivitamin or any other synthetic vitamin in

00:52:30.740 general so we have some other amazing products but if you'd like to check us out you can go to

00:52:35.380 sacredhumanhealth.com and cheers to your health 700 000 americans every year yes heart disease is

00:52:42.820 the number one killer every year year in and year out heart disease builds over time hypertension high

00:52:48.740 blood pressure bad cholesterol diabetes all of it affects our heart a healthy heart is key to being

00:52:55.700 energetic as we get older it is never too early to take care of your heart you see heart disease

00:53:02.740 sneaks up on us you can start in your 30s and when this happens you're at serious risk by the time

00:53:06.820 you turn 60 if you want to take care of your heart and those you care about please go to war room 0.90

00:53:12.900 health.com that's war room health.com all one word war room health.com use the code war room at

00:53:20.580 checkout to save 67 of your first shipment that's code war room at checkout to save 67 and do it again

00:53:27.940 war room health all one word war room health.com go there today you need if you're going to be part

00:53:34.500 of the posse you need a strong heart you need a lion's heart how we're going to do that is with salty

00:53:40.580 go there do it today check it out

Bannon's War Room - November 28, 2024

WarRoom Battleground EP 662： Restring American Manufacturing; Crimes Of The Capitalists

Episode Stats

Summary

Transcript