Choice. Will be so good for detroit. We will also give our police and Law Enforcement the funds and support they need to restore law and order to this country. Law and order. [ cheers and applause ] thank you. Thank you. Without security, there can be no prosperity. Without security, there could be no prosperity. We must have law and order. We must have law and order. [ applause ] and by the way, our police in this country are really unrecognized for the incredible job they do. Thank you. [ applause ] in the coming days, we will be rolling out plans on all of these items. One of my first acts as president will be to repeal and replace disastrous obamacare, saving another 2 million american jobs. [ applause ] we will also rebuild our military and get our allies to pay their fair share for the protection we provide to them, saving us countless more, billions of dollars, to invest in our own country. [ applause ] we also have a plan on our web site for a complete reform of the veterans administration. This is something so desperately needed to make sure our vets are fully supported and get the care they deserve, which they have not been getting, not even close. Detroit, the motor city, will come roaring back roaring back. [ cheers and applause ] we will offer a new future, not the same old failed policies of the past. Our party has chosen to make new history by selecting a nominee from the outside and thats outside of the very, very already proven rigged system. The other party has reached backwards into the past to choose a nominee from yesterday, who offers only the rhetoric of yesterday and the policies of yesterday, just take a look at what happened to new York State Manufacturing and take a look at her promises before this happened. A disaster. There will be no change under Hillary Clinton, only four more years of weakness and president obama. But we are going to look boldly into the future. We will build the next generation of roads, bridges, railways, tunnels, seaports and airports. That, believe me, folks, is what our country deserves. American cars american cars, will travel the roads, american planes will connect our cities and american ships will patrol the seas. American steel steel, american steal, wiel will send skyscrapers across the country, well put new American Metal into the spine of this nation. It will be american hands that rebuild this country and it will be American Energy mined from american sources that powers this country. It will be American Workers who are hired to do the job. American workers. Americanism, not globalism, will be our new credo. Our country will reach amazing new heights. Maybe heights never attained before. All we have to do is stop relying on the tired voices of the past. We can fix a rigged system by relying on the people who and just remember this, so important we are reliant on people that rigged this system in the past. We cant fix it if were going to rely on those people again. We cant solve that problem. [ applause ] so we cant solve our problems if were going to just go back and rely on these politicians because thats what weve been doing. Only by changing to new leadership and new solutions will we get new and great results. We need thank you we need to stop believing in politicians and start believing in our great country. [ applause ] before everything great that has happened, the doubters have always said it couldnt be done, they said it right now, it couldnt be done. They actually said it when i ran for political office. Not going to happen. Heres never done it before. It happened. America is ready to prove the doubters wrong. They want you to think small. I am asking to you think big. We are ready to dream great things for our country once again. We are ready to show the world that america is back bigger and better and stronger than ever before. Thank you very much, god bless you, thank you. Thank you very much. [ applause ] thank you. Donald trump concluding what was roughly a onehour long speech laying out his economic plan in front of the detroit Economic Club. Lets get to john harwood, who is on the ground in detroit. John, the four themes were tax, trade, energy, and regulation. And this was a speech that was interrupted multiple times by apparently wellcoordinated demonstrator demonstrators. Reporter yes and donald trump showed good discipline in not letting him throw off his speech. He paused, the demonstrators were then moved aside or quieted in some fashion. I couldnt see exactly because were outside the hall of course. But yeah, he went on and the ov overarching themes was America First and not globalism. He talked about american hands building the cars and airplanes and roads and americans being hired to do those jobs, familiar prescriptio prescriptions, rewrite trade deals. He said we cant be isolated, im for trade, but we will pull out of nafta if it wasnt substantially brought up, and feels very strongly. The news we got in the speech were two things. One, he said there was going to be as we previewed early this morning, ductability for childcare expenses. He said it would be a families would be able to deduct the average cost of childcare. Didnt give details, didnt say its refundable of people who dont owe income tax. Thats a big spending item. On the other hand, he moderated the deficit tax plan by raising rates from the 25 excuse me 15 and 25 in his previous plan, and he raised those to the House Republican rates of 12, 25, and 33. So donald trump has revised upward, his top tax break to limit the deficit impact, estimated at 10 trillion over ten years. One of the things you point out thats very interesting on the ductability of what he described as average childcare expenses, that would affect only the minority of individuals who deduct expenses on their taxes to begin with, right, john . Reporter well, my we dont have details. I suspect he would make that a universal deduction thats available for people even who are not itemizers but we dont have the details on that. Yeah, okay. Reporter the biggest news was, as larry kudlow said, his new top rate is no longer 25 , its up to 33 , which matches the paul ryankevin brady plan. I expect to hear from larry later, maybe well ask him that question about how that deduction would work to the extent it has been figured out. John harwood in detroit, thanks. Lets bring in Steve Liesman on this. What is the deviation between what trump is saying and what the consensus economists believes the impact could be . Before he changed the tax number, it was about a 10 trillion gap in the expectations they expanded the deficit by 10 trillion over ten years. This moved from 25 to 33. My guess is all of these places are now costing it out, but they have to add in the cost of infrastructure, which donald trump has said he was going to double it. It looked like he backed off that a little bit, in terms of talking about building roads and bridges but also the expense or the cost of the childcare that hes talking about, that would be added to it. And i dont know that public is going to vote on deficits this time around. Certainly the democrats dont have a lot of leg to stand on. Obama would add a lot of the deficit was created by the downturn, but certainly they have a large exception and whether that matters to the public, what the economists are saying it adds 10 trillion. One group said it costs the recession, the other doesnt. I was struck by the imm acura listic vision. I did a search, the word internet is not in there, neither is the word technolo technolo technology, and he said Hillary Clinton is the candidate of yester year, theres the visiting past of the economy and people talking about, well, really this is a postindustrial economy in the u. S. And that cat is well out of the bag here. But hes speaking to the people there, in ohio, and in pennsylvania. Fair enough. Hes not you can sell them that vision. Yes, but thats what thats what you have to do. Hes not speaking to us. And i dont know that its powerful. What i if its politically powerful or going to work politically, i do know a lot of economists would roll their eyes at going back to that and if you want, you can put the tariffs on that put the Japanese Cars from coming in or the cars from mexico which guys like zandy would say that creates huge economic disskprecrepancy. Maybe something over time. Im speaking over somebody who has goes to the Upper Peninsula of michigan. I know a lot of people from michigan. I spend a lot of time in warren, ohio, and these types of places. Hes speaking more, i think, to Companies Moving the ford cars being made in mexico, the dodge dart being made in mexico now. Right. The foreign auto makers have created a tremendous number of jobs in the united states. Exactly. Alabama is almost a new but theyre nonunion. Thats a separate issue from what Donald Trumps talking about. Also, donald trump spoke to docthe talked about 160,000 jobs being lost in detroit since 1993, and over the time has created some 30 million jobs. But not in michigan. But not in michigan. Youre right and im right essentially. This speech was directed at michigan, and pennsylvania, and wisconsin. And ohio. And ohio, and those are the four states that are probably going to remember did the election. Right. Thats what this speech was all about. And he talked about coal, as weve done a lot of reporting in energy, the coal business is hurt by regulation, but its more hurt by lownatural exactly. Energy prices which is an offset of fracking. More Oil Production that hurts coal. That was a nail in the coffin for coal. One other point, which is were waiting for these details. I thought it was interesting. He had an awful lot of time and i thought maybe at least half the speech very detailed what he believes to be the shortcomings of the current economy, but really lacking in detail for his own policies and plans. Theres some stuff out on his web site. Its been scored. But in terms of the greater detail on closing the gap and other aspects of the plan we dont have it. Id like to know if there were more protesters or more uses of the word disaster. Disaster did come up a lot. It did. You are looking right now at right now youre looking at us. Hi. That is trumps economic team. One of his members of his team, Peter Navarro joins us now, a professor of economics at california irvine. You heard steves points this was in some ways, even though he criticized clinton as politics and ideas of the past some, of this seemed to be directed at the economic past of the united states, your response . I dont think Steve Liesman quite gets it. Lets talk about detroit and lets talk about mexico. Heres whats going on. The last couple years weve had gm and ford send about 5 billion worth of new investment down to mexico. Assembly plants, creating thousands of jobs in mexico. Should those jobs have stayed in michigan . Yes. Why didnt they . Well, for a couple reasons donald trump identified right in his speech today. Weve got a very high tax Corporate Tax rate, highest in the world, so that pushes these corporations offshore to china, or down south to mexico. Donald trump lowers the Corporate Tax rate, thats an incentive to bring them home. More subtly i get that. Steve, i didnt interrupt you. Youre correct. I just want to make sure that i get that. Youre living in a world where youre not seeing the big picture. This was a major speech. This was the reagan revolution in the 21st century, four points of the compass speech on energy, regulatory policies, taxes and trade. Lets do something subtle, cnbc style. That tax, export rebates. When the nafta and bill clinton and hillary lobbied, they created a vat tax, which allowed them to rebate their export their cars into this country. We cant do that because of the unequal treatment because we used Corporate Taxes. Now, why do you guys think we actually have an auto trade deficit with mexico of 52 billion . In other words, we ship 52 billion less cars to mexico than they ship to us. Those are jobs that could be here in michigan if we were sensible about tax policy, tariff policy, trade policies. Fair enough, peter. This is the vision here let me make one other point here. Im going to interrupt you because we cant filibuster the segment. Youve got a good chance to respond to steve. Sure. I think its fair to allow it. I thought it was steve. Ill be the bad guy. I dont really have much to disagree with peter. I think everybody thinks the Corporate Tax system in this country is needs to be vastly reformed and democrats and republicans both agree on that. It is a measure of the sclerosis in our system, one party saying 28, and one saying 25, and i know donald trump is much lower than that at 15. In any event, youre blaming the Corporate Tax system, not nast a not free trade. Its one part of the puzzle here. Whats the question . My question is how do you fix this in a way it doesnt fastva disrupt trade on the one hand and dont americans benefit from the products that benefit in ways that create other jobs and its part of the Creative Destruction and the process and we get a huge benefit even though it does obviously create some pain in having open borders. And i just want to add, peter, i lived in russia for six years that had closed borders and you could see what happens to a society that closes its borders from outside competition and if theres going to be a mistake, id rather see it made on open borders rather than closed ones. Lets start on principles, right . Donald trumps a free trader. He said no isolationism. Ronald reagan slapped 100 tariff on japanese semiconductors because they were cheating, okay . And what happened to that . Wait a minute, but lets talk about whats going on here. Let me answer the question, steve. Okay. What we have here, lets take the south korean free trade agreement. Hillary clinton lobbied ford in 2012, said it was going to create 70,000 jobs and it was going to be trade deficit neutral. Instead we lost close to 100,000 jobs and we doubled our trade deficit with south korea. Now a lot of the stuff that we doubled our trade deficit with was auto that hit michigan directly. You cant tell me thats beneficial to the American Workers, american domestic manufacturers, and it also depresses tax revenue when is we try to fund our government. What Donald Trumps trying to do, steve, its very simple, its trying to cut fair deals. And heres the rule, the trump trade doctrine is no trade deal unless it decreases the gdp and tax rate and if we go to the table with those principles, the threat of tariffs its not an end game; its a negotiating tool. And were gutted here. For the last 15 years weve been growing at half the way we should. If we double that rate with the trump plan, well have all the tax revenues we need to more than offset any tax cuts, wages will once again resume and life will be great again in america. This last 15 years, steve, it hasnt been pretty. Peter, we have to respectful respectfully, peter, i give you the last word. That you havnk you very much. We have to leave it there. Take care. Were joined by larry kudlow, cnbc senior contributor, and informal advisor to the campaign, and jared bernstein, cnbc contributor, and Economic Advisor to Vice President joe biden. Larry, tax, trade, energy, regulation, it was a fourpoint the the themeatic press that felt like it was out of the play book. Reporter right. Let me answer that. Right out of the reagan play book. Thats why its always mystifying to me where many of my dearest friends on the conservative movement somehow dont believe it. Hes following in reagans footsteps. By the way on taxes and so fourth, hes following in jfks footsteps, as well. One of the key points of this speech was to reaffirm his position on these key economic issues, particularly taxes and regulations and as Peter Navarro said, we saw it here, he favors open trade. He seeing the benefits but he wants to have write good deals that help america and he got a standing ovation. The two biggest standing os, the 15 of large and Small Businesses and number two, i favor free trade, i favor trade, but they have to be good deals for america. Those of his two biggest standing ovations. Larry, i heard your favorite word grow or growth multiple times in his speech. It was from your lips to his basically. The other word i heard multiple times was disaster, disaster, disaster. Is the American Economy a disaster . Reporter well, i think i dont know whether we call it disaster. The American Economy has done very, very poorly frankly for the last 15 years under republicans and democrats. This recovery is the worst since world war ii. So as a disaster, i dont know what that word means. Its done poorly. People have not done well particularly middle income people. So i think its quite fair for him to criticize whats been going on. The guy wants change in policies and want to the go back to the reagan model. That worked awfully well under reagan, bush, and bill clinton. When we abandoned it in the last 15 years, we have not done well, thats a key point trump is making. Let me turn to you, jared, i might. We just had a spirited discussion about the south korean trade deal, heavily backed by the g. O. P. , as i recall. Am i right on that, jared . You may not recall it was under bob king and the idea there was they would be able to sell more cars to south korea so Steve Liesman made some good points. I didnt like Peter Navarro saying 100 tariffs, that worked out terribly, and when you hear donald trump talk about 25 and 35 , thats still terrible. Can i say a couple words about the speech and larrys comments . Sure. I get to argue with larry kudlow. The bad news is were going to have the same argument weve been having for so long about the effectiveness of the reagan model or supply side trickledown economics. Its not anything like what bill clinton did. And the problem with what a lot of what i heard today is the numbers ju