LAP.

WE HAD A GOOD BEHIND US, LOOKING

NEIL: DIRECTOR, SOMEBODY IS

YAPPING TO SOMEBODY, RIGHT?

>> I CAME FROM THE HOUSE WHERE

EVERYBODY YAPS TO EVERYBODY.

THAT IS THE NATURE OF

WASHINGTON, D.C.

ALL I CAN TELL YOU SOMEONE

THERE, I'M IN THIS BUILDING

EVERY SINGLE DAY, SOMETIMES MORE

PRESIDENT, CHIEF'S OFFICE,

MEETING WITH CHIEF OF STAFF,

OTHER SENIOR STAFF.

WHITE HOUSE STAFF.

THE PLACE IS FUNCTIONING JUST

FINE.

WE'RE VERY PROUD OF THE WORKS WE

DID OVER THE PAST WEEKEND.

COULD NEVER HAVE ACCOMPLISH WHAT

WE DID WITHOUT HAVING EVERYBODY

FUNCTIONING AS A TEAM.

NEIL: YOU KNOW THE MARKETS OF

COURSE, A LITTLE SOFT TODAY SIR,

BUT THE FACT OF THE MATTER THEY

HAVE BEEN ON FIRE EVER SINCE THE

PRESIDENT'S ELECTION CERTAINLY.

SINCE HIS INAUGURATION.

TAX CUTS LOOKING FORWARD TO THEM

WITH BIG REASON, LONG BEFORE

THAT EASING UP ON REGULATIONS.

A LOT OF FOLKS SEEM TO THINK A

LOT OF REVENUE IS COMING INTO

WASHINGTON TO MORE THAN PAY FOR.

OTHERS ARE SAYING IT WON'T PAN

OUT, PEOPLE START SEEING NET IN

PAYCHECK NEXT MONTH, THEY WILL

BE DISAPPOINTED.

IT WILL COME BACK TO BOOMERANG

ON YOU.

WHAT DO YOU SAY?

>> NOT AT ALL.

WE EXPECT THE EXACT OPPOSITE.

WE'RE SO EXCITED, NEIL, ABOUT

THE STRUCTURAL CHANGES WE MADE.

THIS IS NOT A ESTIMATE --

STIMULUS.

THIS IS FUNDAMENTAL CHANGES TO

THE AMERICAN ECONOMY.

START WITH DEREG.

OFFICE OF MANAGEMENT AND BUDGET.

WITH WE MADE DEREGULATION A

ECONOMIC PRIORITY.

GDP GROWTH BEFORE THE TAX BILL

PASSED.

I'M ABSOLUTELY CONVINCED THAT

HAVE.

YOU ADD TO THAT THIS STRUCTURAL

CHANGE TO THE TAX CODE, NOT JUST

STRUCTURAL REFORM THE WAY WE TAX

CREATION OF WEALTH THIS COUNTRY.

LONG TERM CHANGES.

THESE ARE FUNDAMENTAL PRINCIPLE

CHANGES TO THE WAY THAT THE

COUNTRY RUNS.

WE'RE EXCITED ABOUT THE

SO, YEAH, THE STOCK MARKET IS

GOING UP AND DOWN.

CLEARLY ONLY GONE UP SINCE WE'VE

BEEN HERE.

IT WILL COME DOWN EVENTUALLY.

BUT IN THE LONG TERM WE FEEL WE

MADE ABSOLUTELY CRITICAL

IMPROVEMENTS TO THE AMERICAN

ECONOMY, THAT WILL PROVE

ECONOMICALLY FOR THE

ADMINISTRATION BUT ALSO FOR THE

ADMINISTRATION.

NEIL: DIRECTOR MULVANEY, DO YOU

WORRY ABOUT THE PRESIDENT

MENTIONING STOCK MARKET AS SUCH,

GOOD REASON TO, THAT OLD SAW IT

CAN COME BACK BITE YOU.

RONALD REAGAN RARELY EVER EVER

TALKED ABOUT THE MARKETS EVEN

THOUGH THEY WERE RUNNING UP.

MARKETS FINISHED HIS EIGHT YEARS

A LOT HIGHER THAN THEY CAME IN.

DO YOU ADVISE THE PRESIDENT,

BOSS I WOULD GO SLOW ON THIS IT

IS SELF-EXPLANATORY, WE SEE

MARKET AVERAGES JUST BE CAREFUL?

>> WE SPOKE ABOUT IT.

COMPARISON TO THE REAGAN BREAKS

DOWN, THE MEDIA WAS DIFFERENT.

HE CAN GET A FAIR SHAKE FROM YOU

AND COUPLE OTHER OUTLETS.

ITCH BEEN ON OTHER COUPLE OTHER

NEIL: I CAUGHT ONE OF THOSE.

>> 90% OF THIS PRESIDENT, 90% OF

THE MEDIA COVERAGE OF THIS

PRESIDENT HAS BEEN NEGATIVE

SUCCESSES PRACTICALLY NO ONE

ELSE WILL.

NEIL: I DIDN'T WANT TO JUMP ON

YOU THERE -- WHAT IS APPARENT

WITH RONALD REAGAN, HIS TAX

CUTS, BOTH OF THEM, EARLY '80s

ONE AND '86 ONE WERE RIPPED BY

NET PAYCHECKS, THAT CHANGED

EVERYTHING, THE SENTIMENT

CHANGED.

DO YOU EXPECT THE SAME THING TO

HAPPEN WITH YOUR TAX CUTS?

THAT WENT OUT.

WE DIDN'T EXPECT THAT THE

MINIMUM WAGE INCREASES FROM

LARGE EMPLOYERS ACROSS THE

COUNTRY.

THAT IS MORE THAN WE EXPECTED.

HAVE WITH THE ECONOMY.

WE'RE CONFIDENT WHEN FOLKS SEE

THEIR CHECK, NOT ONLY TAKE HOME

CHECK WE THINK THEY WILL BE

PLEASED WITH, WHEN OPPORTUNITIES

COME IN.

THEY START TO REALIZE WHAT IT

MEANS TO BE PART OF A HEALTHY

AMERICAN ECONOMY.

WHEN THEY HAVE A CHANCE TO

CHANGE JOBS.

WHEN THEY HAVE A CHANCE TO START

THEIR OWN BUSINESS.

WHEN THEY HAVE A CHANCE TO GET A

RAISE, WHEN THOSE FILTER

THROUGH, THOSE WON'T BE

IMMEDIATE IN FEBRUARY LIKE THE

NEW WITH HOLDING WILL, WHEN

PEOPLE REMEMBER BEING PART OF A

THE FACE IF YOU'RE 30 YEARS OLD

AND WATCH THIS PROGRAM YOU HAVE

NEVER HAD A JOB THIS COUNTRY

WITH A REALLY HEALTHY AMERICAN

ECONOMY.

THERE ARE THINGS THAT HAPPEN IN

DYNAMIC AMERICAN ECONOMY THAT

CAN'T HAPPEN ANYWHERE ELSE IN

THE WORLD.

WE CREATE WEALTH NOT SEEN IN THE

HISTORY OF THE PLANET.

WE CREATE WEALTH FOR FOLKS LIKE

YOU AND ME ON TV AND FOLKS THAT

DON'T GET NEAR TELEVISION HOME

TAKING CARE OF THEIR FAMILIES.

WEALTH OPPORTUNITIES THAT EXIST

IN THIS NATION ARE FANTASTIC.

WE FEEL LIKE WE UNLEASHED THOSE.

THIS TYPE OF WEALTH CREATION.

THAT IS WHAT FOLKS SEE BETWEEN

NOW AND MIDTERM ELECTIONS AND

WELL BEYOND THAT WE'RE VERY

OPTIMISTIC ABOUT WHAT THE

LONG-TERM FUTURE HOLDS.

NEIL: DO YOU THINK PEOPLE WILL

APPRECIATE THAT BIT MIDTERM

ELECTIONS AND KEEP REPUBLICANS

IN POWER?

>> YEAH.

LOOK, PEOPLE MAY NOT LIKE THE

PRESIDENT'S METHODS, I GET THAT

YOU CAN'T ARGUE WITH THE

POLICIES.

YOU CAN'T ARGUE WITH THE

OUTCOMES.

PEOPLE ARE BETTER OFF, THE

AND ECONOMY, DIRECTOR, HIS

POLLING NUMBERS JUST AREN'T

GREAT.

>> I COME BACK TO THE FACT

THINGS ARE DIFFERENT WHEN IT

COMES TO THE MEDIA.

NEIL: YEAH.

>> NINE OUT OF 10 CHANCE HEARING

A NASTY STORY ABOUT THE

PRESIDENT WHEN YOU GO ON

TELEVISION, LISTEN TO THE RADIO,

GO ON THE INTERNET THAT CAN WEAR

ON YOU AFTER A WHILE.

WE CAN ASK THE QUESTION ARE YOU