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Oct.26
2:19 PM ET
Larry Kudlow Speaks with Vice President Dick Cheney, Today on "Kudlow & Company" (Transcript Incuded)

KUDLOW: You were talking before about the success of the tax cuts and so forth. On the campaign trail, many Democrats, Senator Clinton in particular, have said two things. Number one, middle class has not participated in this economic boom. She calls it a middle class trap door and says that wage inequality is the worst it's been since 1929. Do you have a response to those charges?

Mr. CHENEY: Yeah, I don't agree with it. I think that analysis is wrong. I think we've added well over 8 million jobs since the recovery took off some four years ago. We have seen a significant economic expansion underway now for 40 some months. It's been, I think, a very successful economic policy. And the suggestion that somehow there are hard times out there, I just--I just think is a misstatement. Now clearly, there are some pockets where people run in to difficulties. Where we have economic slow-down for one reason or another. Michigan still having troubles because of the auto industry and so forth. But I think overall, in terms of macroeconomic policy and what's worked for the economy for the last several years now, it's what the president put in place, not what the Senator Clinton suggested.

KUDLOW: But there is a middle class anxiety and it is going to be an issue in the upcoming presidential election. Do you think the White House and the Republican Party in general has had a sufficient response to that anxiety? Some of it's about trade, some of it's about globalization, some of it's about transforming our economy. What the eminent economist Schrumper@ had called gales of creative destruction. I mean, people are worried out there? Do you agree with that?

Mr. CHENEY: Yeah.

KUDLOW: Do you think there's been a sufficient response to it?

Mr. CHENEY: I think we need to do an aggressive job as a party, administration and our friends in congress at emphasizing what we have done, that has worked so well with respect to tax policy and economic growth and so forth and what will happen if the Democrats take over. It's not a mystery. You can look at what Senator Clinton believes in and how she voted. You can look at Charlie Rangel's proposals with respect to tax policy and the democrats basically want to spend more money, they want to raise taxes. It's basically an anti-growth policy. It's exactly the opposite of what the Republicans have been providing for the last several years. That's the fundamental difference. They're entitled to their beliefs. What we have to do, as you say, I think we need to work very hard to make our case so that the American people understand both the benefits of what's occurred, what we've done out there as well as the problems and the price that we pay if the Democrats take over.

KUDLOW: Speaking of another Democratic front-runner, you and Senator Obama are apparently related. This information comes from your wife, Lynn, she appeared on our program not too long ago. Marine and Susan Duvall@, immigrants from France. You spoke to Mr. Obama about this shared experience?

Mr. CHENEY: Cousin Barack? No. No we haven't. We haven't had the opportunity to talk about it.

CONTINUED
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