Respect to regulation it was great uncertainty in the Business Community about where the government was going and what kind of an obstacle it would become. We try to tried to convey the message that the government would provide positive certainty so we could rise out of the recession. At that point we were still in the recession until june of 2009 2009. We were out of it technically but i dont think people for years felt that we were out of it in reality. If you want the dynamic Economic Growth you are expecting winding out of a recession yet to do positive things to give the vistas community some certainty that you are not going to hurt them. Host what are some of the measurements . Guest the ones we focused on the hook for tax reform, energy policy, Regulatory Reform and reduced government spending. This was the only trump agenda item we didnt hit was Health Care Reform but this was 2009 and 10. We didnt know what a negative impact it would have on economy that point. We covered spending tax reform Regulatory Reform and energy policy. Host utah about Regulatory Reform in the book. Can you give an example of what you would like to see is a former corporate ceo . Guest you can take it at the state local or federal level. I was in california at the time so we could spend the entire segment talking about the problems businesses have in californias regulation. On the federal cyto be a constant influx as in the department of labor. Putting in place new requirements and making it easier to unionize. They were trying to get card check through. They had regulations that were going to require attorneys to disclose the discussions they were having with their employer clients during the course of attempts to unionize. That was called blacklisting. You have the joint employer standard where they tried to make franchisors employs other franchisees which would have destroyed it. He wouldnt have existed anymore so there were efforts to increase the 48,000 salary level below which you had to pay overtime even if you have somebody managing restaurant and got a bonus which again would wt hurt you. Retail businesses in general economically. All of this was coming down the pike. You anticipated this with the progressive sector of labor and the secretary of the treasury and a progressive president that we were going to have real problems. We were going to stay those often get americans working again. Our job creation isnt what the government envisions it to be. It isnt something that inevitably occurs. There isnt a financial cycle that you can just walk into and it will go up which quite honestly is what a lot of the president s advisers thought at the time. They thought they would get a four gdp growth. They now claim thats impossible but the white house projected 4 gdp growth thinking they were coming out of the recession cycle. With good policies you can hit those numbers but without them he cant. Host in your book you write the unfortunate reality is federal spending initiatives are actually intended to expand the power and influence of government rather than create jobs. This is really the progressive philosophy starting with president wilson and probably the only president that was more progressive than barack obama but the idea has been to expand government power is the ability to control the economy in the hands of an elite group of people political appointees the bureaucracy and academics and top elected officials rather than having the direction of the economy driven by consumers and consumer purchasing. Rahm emanuel said you dont want a crisis to google waze. Every time there has been a crisis in the early 1900s for the Great Depression are the recession there is always this expansion of government as the solution to our problem. What it really does is prolonged those problems because the goal wasnt actually to create Economic Growth. The goal is to expand government and redistribute the benefits which takes more equally lower than higher but instead of raising everybody up it lowers everybody down. They view that is a more just society. If you have a more just society by generating growth as president kennedy said at high tide lifts all boats. We wanted to create a type that would lift everybodys economic vote and make it easy for workingclass kids get to the middle class and reducing income inequality by increasing everybodys income not decreasing the top and increasing the bottom. Host in your book job creation you focus on employment rather than unemployment. The focus should be how you get people back into jobs. What causes somebody to hire a person . If you take one of our restaurants, restaurants employ about 25 people and most people think about that way. The restaurant has 25 employees but if you go to the concentric circles around that we hire people to design the restaurant and the workers who put the restaurants together. You have the farmers and the cattlemen who attended the herds and grow the crops. The processes that take the cattle and the crops and turned into food. The guys who drive the trucks to deliver the food to the restaurant. You have the circles of restaurants in all of those people by clothing and they go to the movies and they send their kids to school. They do all the things that help generate Economic Growth. So you focus on these core businesses and find a way to cause them to grow you are going to see real Economic Growth and all of these concentric circles overlap which is how america went from 13 backwoods colonies in the late 1700s to the nation that was almost devastated and destroyed in war where hundreds of thousands of americans died. To the largest economy of in the world and by world war i the highest and are living in world. This is because uneconomic system that provides individuals and encourages individuals not only to create Economic Growth in benefits but to keep the benefits of that growth to themselves which automatically benefits everybody else. Inadvertently adam smith said he benefits everybody else. Its a system that works tremendously well. We saw somebody put a cork in the hourglass of Economic Growth and we want to take the cork out out. Host what is cke and what is your role . Guest carl started with a hotdog cart in 1941. The quintessential example of job creation. He started with a hotdog cart and an eighthgrade education in southcentral new york in 1941. By the time i met him and 1980 he had a half a Million Dollar business, carls jr. Pit in late 80s carls jr. Bought hardys. He got in financial trouble in the late 90s and in 2000 i was a general counsel for the company. They appointed me as ceo chief executive officer to take the Company Either sell it or take it into bankruptcy. It relies quickly that would have been a mistake. We had 75 thousand people working for the company. The franchise lost their investment. I had a great team. We did fix fix it fix it. I retired april 2 and we had 3800 restaurants in 44 states in 41 countries. 20 of our restaurants are now overseas. It was a lot of fun and im enjoying retirement after 16 years as ceo but it was a fun 16 years. Host what are you doing . Guest im actually writing a book. I do either deal with the publisher to write a book. It was going to be about how i thought Hillary Clinton and barack obama had worked together to not have destroyed to significantly demean the Free Enterprise system which build such a Wonderful Company and created such Good Opportunity for everyone. With trump having been elected i can write about how President Trump but the proper support in congress in particular but with the proper support can bring back that american spirit that lifted the vision so high and again make America Great again as he would say. I think we have a real potential potential. I dont think people know about Woodrow Wilson and what he did to the country, disrespect for the constitution. Franklin roosevelt didnt want the help of the business sector during the Great Depression. He said in the speech they should leave us alone. And then how government expanded or maybe expanded too much. Thats not to say the government doesnt have a role. It does have a role and its a constructive role and i think government can be very meaningful. Like anything it can be overdone and i think we have seen it be overdone particular of the last several years. Host andy puzder what did you withdraw . The only reason i withdrew was because i didnt have enough votes to get confirmed. If i would have had the votes to get confirmed i would have stuck it out until the end instead of having this conversation a Beautiful Hotel in the beating my brains out in washington d. C. D. C. There were such an adverse reaction to betsy devos being approved as secretary of education. Chuck schumer identified me as a target that they were going to go after. The press was merciless, dishonest. Some other interview we can talk about the fake news during his confirmation process but i got beat up. Badly. It made some liberal republicans a little nervous. You start off losing two. You have the tube it didnt vote for vets he wouldnt vote for me no matter what i did. The longer this one on the more the press could focus on me and distorted stories and the more nervous it made me. The press reported high hadnt filed my government ethics papers and there must be something wrong. I was the first data file. I filed january 30th. The problem was the government ethics wouldnt react to my papers. They sat on them for six or seven weeks. In the meantime the press keeps beating me up and schumer makes me the target. Some republicans got nervous and i didnt want the president to suffer something on the senate floor that had my name attached to it. Host you were or are portrayed as being antiunion. Is that a fair moniker . Guest im actually supportive of select the bargaining. If you look back in the early 1900s unions had great victory with respect to child labor, eight hour workday. Eventually Workers Compensation insurance and retirement. Unions have great victories. I think the units are currently struggling for revel in relevance. They are down to 6. 4 representation in the workforce for the public and the government combined its only 10. 7 and thats a 100 year low. It hasnt been that low since 1916. We were struggling to be relevant and again they are not focusing on what would create jobs and Economic Growth. They are trying to focus on things they think will attract members and to the union. They are trying to use government to bring members into the union impact on the overdone. For example the 15dollar minimum wage there was a. Reporter the San Francisco that said that kurtz the very workers that supposed to help. In San Francisco they are going to 15. The Harvard Business rules came out and said the cause restaurant closures to increase. In seattle when they went to 13 the university of washington are liberal base school came out and said the minimum wage increase in seattle had already taken down lowskilled workers hours 9 and 125 week. Lowskilled workers i started out of Baskin Robbins. Im glad i had that job. Taught me a lot. I learned about inventory and taking care of customers and showing up on time and working as a team. The things you learn but it gives them something to talk about. It draws members and makes it look like they are helping workers that but they are really now. In that sense the policies that the unions are pursuing to generate more growth. I think collective bargaining is something that workers should have the right to do. Host does carls or hardys have restaurants in seattle or San Francisco and how would that affect an individual restaurant . Guest we have franchise restaurants in seattle and San Francisco. The franchisees employ the employees. They have to pay them wages and to the extent it makes it harder to hire people so your labor costs go up. The tendency is to automate and reduce the number of employees or to reduce their hours which is exactly what the Harvard Business school and the university of washington study shows happens. I actually did it in a wall street journal oped send forms and got severely ridiculed for it. Ive been trying to convince the restaurant engine industry to increase the minimum wage. It is too low. It should go to 9. The level at which you could increase the minimum wage and entrylevel jobs. 15 an hour kills jobs and kills businesses and hurts lowskilled workers and lesser skilled workers. Its bad for the American Worker and apparently its good for union with membership. Host you in your book job creation one of the great mistakes is to judge policies and our programs their programs by their intentions rather than their results. That such a good quote. Thats absolute away effort Government Program should be judged. Look at the war on poverty. The intention was to reduce poverty. It hasnt reduce poverty. If we were losing a real war it would change our tactics to win the war. Not only do we go with the same tactics that have failed but we put more money into them. We have a president whos willing to change that and if we can get political commitment and energy going particularly in the senate i think we can solve a lot of these problems and make a lot of improvements. Host what would have been your first action as labor secretary . Guest number one i wanted to implement policies that would help create jobs in the inner cities. I think the policies that have been implemented over the past years have hurt job growth in the inner cities. I want to see those entrylevel jobs in the city. We would have apprenticeship and internship programs and coordinate with the private sector. The government spends about 300 million a year on job training or 300 billion, excuse me 30 billion and the private sector spends 300 billion. Lets coordinate with the private sector so running around doing crazy things with their money when the people that have the jobs and are willing to train people for those jobs and are looking for people to fill those jobs than there are many jobs like computer programmers and construction workers but they cant find people to build the jobs. We have 6 million job openings in the country. Its an historic high. Thereve never been 6 million job openings. We need to get people in the inner cities into the american dream. They need to get into the process. When i worked at Baskin Robbins the proudest day of my professional careers was when the franchisee owner handed me the keys and said you are the assistant general manager and you can open in the morning. Ill bet it was the cleanest restaurant in america within a half an hour. There was such pride and accomplishment. This is the kind of thing that keeps you out of the gang and keeps you in school. A surprise that leads you to a better life and a more profitable existence and keeps you out of gangs and away from drugs. It does things that are so meaningful that it is underestimated. Those jobs dont exist because people are afraid to go in. We are not creating the kinds of jobs and we are not seeing the growth we should see. I would have done everything i could to increase that. I also would the secretary perez created. I think you can get a good idea of what hes doing with the six years he was secretary of labor. A lot needed to be kept. We needed to take it down some. Also theres a womenswear womenswear and the department of labor and i would have worked. There are some very good policies with respect women particularly family leave. By the time i graduated from law school i worked my way through law school. I didnt have government or family assistance. My family couldnt help and it wasnt a Government Program that works. We had two kids and my wife is pregnant. I remember what it was like at the end of the month when the money didnt make it to the end of the month. There are things government can do to help. If we relieve the burden on business and better tax rates that are regulatory policies and get rid of this terrifically burdensome Health Care System or Health Insurance system we currently have we might deal to do some things that really could generally help people. And to help President Trump generate Economic Growth. Nick mulvaney out of management and budget make America Great again economics. Tax reform and Regulatory Reform and Health Care Reform to get smarter immigration policy and smarter trade policy and reduce spending. A great article in wall street journal on exactly that. I wish it were there helping. She keeps on me how much better time where having. Id still love to be in a fight and helping the president every way i can. You talk about Health Reform or Health Care Reform. How does the Affordable Care acts affect one of your franchisees . Gets good significantly increases health care and Health Insurance costs for everybody. It not only increases the cost of labor labor costs and growing up going up dramatically but it had the dramatic impact on the dollars the people have available to spend. Health care costs went up seven or 8 last year. They are projected to go up 10 this year or 25 this year and more next year. This is money that people would spend in retail. I had an uncle