Carl Icahn CNBC Interview Podcast
Icahn: Trump is right on about economy
Carl Icahn, Icahn Enterprises Chairman, discusses Donald Trump’s speech on his economic plan.
Trump Is Right On About Our Economy by Carl Icahn
Trump is right on about our economy. A capitalistic system cannot exist if government is at war with business. CEOs rightly so are afraid to invest in new equipment, etc. to make our manufacturing competitive. It is no surprise that today it was announced growth in productivity was down for the 3rd straight quarter and is at an all-time low. Our workers cannot be productive with “worn out tools”. I never thought I would say this but we cannot blame even mediocre CEOs for not investing when they have to face regulators that are scaring the hell out of them. Instead they borrow at near zero interest rates and buy back stock. This will increase the value of their options and vested stock and their workers’ productivity be dammed. Democratic pundits say it is OK not to manufacture because we are a “service economy”. But what does this mean? Taken to its logical conclusion all we will be producing in the near future are more text messages and more tweets to send to each other. But no problem that all the decent paying manufacturing jobs will disappear. The Fed will just keep lending money at zero interest rates until the bubble bursts and we go over the proverbial cliff.