'It's going to take a while for the reopening to have an (economic) impact': Kudlow

George Stephanopoulos interviews Larry Kudlow, director of the U.S. National Economic Council, on "This Week."
10:15 | 05/10/20

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Transcript for 'It's going to take a while for the reopening to have an (economic) impact': Kudlow
We could set some of the worst records ever for the American economy. It all became clear on Friday. We learned that morning the twenty point five million Americans lost their jobs in April. Ten times the record set in 1945. When the country demobilize World War II. The unemployment rate jumped to fourteen point 7% the highest since the Great Depression. We've never seen it rise so high so fast. Just three months ago unemployment was at a record low 3.5 percent. And as stunning as those numbers are they don't capture the depth of the damage. Added workers have been looking for full time jobs the furloughed and hope you get their old jobs back and more than one in four Americans is out of work. The lines of food banks are heartbreaking. We can all hope that the economy will bounce back once the virus is contained. Investors seem be betting on it. By the close of business Friday the stock market was building on some of its best weeks in decades. So what does Wall Street scene that Americans aren't yet feeling. How Long Will the recovery take what must we do to make sure it happens. And we start where the president's economic advisor Larry Kudlow Larry thank you for joining us. This morning and I do want to get the economy but first this news breaking overnight we know that two White House staffers have now tested positive for covad. And doctors fact she Redfield and Palmer also quarantined. Will you and other White House staffers be following their example. Well it will take the advice. Other White House medical unit which is the best in the business. There may be out of wanna rule anything in a rule anything out. At the moment. There's daily testing as you may know for people who are come into contact with president and vice president. Everybody wants to be safe right do the best we can. Will follow the our rules and guidelines that the White House medical unit. You said he had the best way to best medically in the country to let us medically you know no doubt. That is true you're getting test every single day at the White House anyone who's in contact. With the president and it does not really exposed the challenge for everyone else in the country right now. If the White House is not fully safe to us despite those conditions. How can an average Americans feel safe with the idea of going back to work. Well look I don't want to generalize from it because. Although I don't have all the numbers I haven't seen that yet terms of the White House complex. Which enormous place. At least 500 people probably much more than that George. The those who have tested positive as though. Small fraction. I guess I don't know the specific numbers by. We've had relatively very few and look I think the key point here you know we've established guidelines from our health task force. States establishing guidelines. I think that businesses. Large and small. Are probably gonna wind up leading this charge as we attempt to re open economy. Deal with these heartbreaking. Jobs numbers art should jobs numbers are awful so my point is. While we rely heavily. On what the businesses that free and a price it's produced. Companies are very innovative. They know the job that has to be done they know on the one hand folks have to be safe must be safe. They know on the other hand. We have to have some reopening is by its possible. VO at the economic gap problem the pandemic contraction as I call it. So I think between public and private health systems. We can do this. I guess about half the states are off to a phased in art that's a good sign. Safety is aptly crucial but it's not either or you know I think its safety and reopening for the economy I think that's a hand. Let's talk about those devastating job numbers the president set on Friday that all of these jobs will leap back. Is that a realistic promises that a promise the president can keep. Well look I'm several things number one. As bad as those job numbers were and I don't want mr. Carter 'cause I I think that numbers for May. Are going to be also very difficult numbers and take a while for the reopening have an impact. So there's that the second point is inside the numbers there's a glimmer of hope. I don't want to downplay the numbers odds are that the glimmer of hope we had. I 80% of that was furloughs and temporary layoffs. At by the way doesn't ensure that you go back to a job and it's strongly. At the cord between the worker in the business is still in tact. I think hopefully that has something to do. With three trillion dollars of assistance including the payroll protection plan. You know all in on this. Would probably including the Federal Reserve's operations and the budget and fiscal work the president trump is led with bipartisan congressional votes. We probably had George nine trillion dollars. Worth of assistance. Going to a 175. Million. Individuals. It's a remarkable planned to attempt to stabilize. And it very very very difficult situation. It has been an extraordinary response from the government and the Fed. Now house Democrats are saying that by speaker Pelosi that they need about another two trillion dollar plan. Eight is state and local governments much more testing more direct aid like unemployment insurance food stamps direct checks. Yet you the president said it now is not the time to be dealing with that why not. Well and that's saying now's not the time. And I don't think that's a presence either. I think that. Many people would like to just pause for a moment. And take a look at the economic impact of this massive assistance program which is the greatest United States history that's all that's being said now. I was reading in some papers this morning that there's no talks between. Let's say the White House. And the Democrats that's simply not true there's no formal negotiations. Yet I say yet. But in fact on Friday. Kevin has that my air colleague in the White House and die. Did a conference call at about fifty house members. Democrats and Republicans Georgian we are scheduled to have a similar conference call it tomorrow. Lie on the senate side Democrats and Republicans were collecting ideas. For next steps which who undoubtedly be. Data driven. I do think there are issues here and they're probably going to be sent agreements and disagreements. Each side has its own positions so it's not that we're not talking we are it's as informal at this stage it. Really after all this says assistance let's have a look at. What the impact is an at least the next couple of weeks for the economy. We've now heard from President Obama former President Obama for the first time on his take. And how the White House has responded to this crisis let's listen. There's been an absolute chaotic. Disaster when bet my aunts. What's good for me aaron's. Whatever else when their mindset is operational line is murder. Your response. I. When all due respect that for president I really don't get into political. Back and forth here I just a don't know what he's talking about. I mean we're all the assistance we've done. With all of the infrastructure. That we the drug administration. Working with governors and mayors. And with congress. With respect. Two testing. With respect to all matter of you know PP medical equipment. With respect to ventilator is. Yeah this president trap. One thing shouldn't be loss here he has. And it's unusual in these emergency situations he's made great use of the private sector tell you about that earlier in terms are reopening in a safe matter. What we have relied very heavily. On the smartest people in this country. Who won retail operations pharmaceutical companies Biotech companies you've got automobile companies producing violators at a rapid rate we've Rand up the testing. We have the world's largest attesting percentages by far so I just I don't understand what. Pres Obama is saying. It's a sad said Don political submit I just my say this look. What we'd done. May not be a 100% perfect you know these things happen out once every 100 years. But the overall pitches would trade at a massive. Health and safety infrastructure to deal with the pandemic here in the United States. And judging from the results. Where there has been a flattening in the in and the rate of growth of infection rates and mortality rates. It's working so are preparing to reopen the economy and when we did little. I think gap according to the Congressional Budget Office and a bunch of private surveys. We're gonna see very strong second half of the year. Probably trying percent economic growth. They are policies they'll written placed on lower taxes and lower regulations are still in place we may expand on those policies. With the congress next year try to flight line could be a tremendous snapped back in the US economy sucks. A medley president Bob Malone I just want to make the case that I think is the prevail on consensus case right now. Larry Kudlow thanks very much for time this morning. British.

This transcript has been automatically generated and may not be 100% accurate.

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