① Where do you fit in the Trump campaign?
(Bloomberg Businessweek) -- I made the decision to come out from behind my desk because, when we talk about the future, I think we have two very different choices. This election cycle is the last chance for the US to grow our way out of this mountain of debt without becoming a sort of European-style socialist democracy. We have historically tended to run fairly steady levels of government tax revenue as a percentage of gross domestic product and expenditures at around 20%. Now we’re bumping up around 23%. One of the reasons that I became an unofficial adviser and spokesman for the Trump campaign is because I think it’s now or never.
② What kinds of discussions have the two of you had on these topics?
One of the biggest misapprehensions about Donald Trump is that he’s going to be profligate. He said to me, “Scott, what are we going to do about the debt and deficits? How are we going to get those under control without causing a recession?” I said it’s not going to be easy. Cut the deficit to 3% by 2028; achieve 3% real economic growth, largely through deregulation; and then add 3 million new barrels of energy per day. If we increase production by 15%, we could bring prices down and become energy dominant.
③ Where do you think a second Trump administration could cut spending?
A Trump 2.0 shouldn’t try to deal with entitlements. We have to get the short term under control before the long term can be dealt with. In discretionary spending, you can freeze—not cut—everything except defense. For the first time in US history, interest on the debt is higher than the defense budget. It’s a national security issue.
④ Do you share the view that China represents a grave threat to the US?
Undeniably, China is a military risk. It can also be an economic risk. Who knew that many of the key ingredients for our pharmaceutical industry come from China? Essential items, like pharmaceuticals, we should immediately bring those onshore. There are plenty of rare earths in the US, Canada and Europe. So we should take care of that.
⑤ Trump has talked about a 10% minimum tariff and 60% on Chinese imports. Is that where we’re headed?
It’s a maximalist negotiating position. It may be that, 36 months from now, there’ll be a 60% tariff, and Xi Jinping can decide what he wants to do, or that may just be a starting point.
Interviews are edited for clarity and length.
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