Former Reagan Economic Advisor Art Laffer examines the current state of the US economy, saying that President Trump's statement that a trade deal with China could boost the Dow Jones Industrial Average by 10,000 points is more or less correct.
"I think he’s right about 10,000 on the Dow," Laffer told Fox Business Network's "Mornings With Maria" Bartiromo on Thursday. "I mean, that's a pull out of a hat, but frankly, it's a huge thing because it starts having a dynamic consequence with the rest of the world: Japan, South Korea, Europe, everywhere in the world will start doing deals. And it'll be like the Kennedy Round tariff negotiation was, and that was one of the most spectacular policy events ever, which rocketed the U.S. economy during the Kennedy era. This is the same type of thing with Trump."
Laffer noted again that the 10,000 point figure was "pulled out of a hat" but said a deal with China would be "really positive."
"It would be wonderful for the president, for the country, for politics. It will take a lot of the nastiness out," he continued. "People like working and they like being rich. We need China very much, Maria,and they need us very much. I mean, it’s a perfect match of comparative advantage between the two countries. And all we need to do is get the impediments out of the way -- the stealing of intellectual property and technology, all of this stuff. And I'm sure there are a couple of things we need to do to make it better for us and them, as well."