HOOVER: The deficit, which is something, as a Reagan Republican, is something that doesn’t pass you lightly, is already record breaking. So how will policy adjust in the coming months to walk back from those levels, of those deficit levels that are so record breaking?
KUDLOW: Well, I confess I’m not very worried about the deficit right now.
HOOVER: Why?
KUDLOW: It’s the least of our problems. Because the government is taking emergency measures, which is what governments have to do during situations like this. It will not last forever. It will probably end at the end of this year. Deficits, you know, there’s no evidence of any harm. Yes, we are borrowing. Yes, we are sensitive to the borrowing. But at very low rates, we’re borrowing to reinvest in the health and welfare of the American economy. And I think–
HOOVER: I’m sorry, I just want to make sure I understood you. Did you say, is it the White House position that deficits don’t matter?
KUDLOW: No. We’re sensitive to it. It’s not a question of deficits don’t matter. It’s a question that people matter. Health and safety matters. And an economic reopening and getting people back to work, helping them while they’re on unemployment and furloughed, and helping businesses. I think those priorities come first.
