EK: Just so I have this right: You're arguing that the boom in the mid-1990s wasn't because of the Internet or because we were snapping back from a recession, but because the election of a Republican Congress had a major confidence effect.
GN: Yes. You knew Republicans would cut the capital gains tax and wouldn't do the list of things Clinton had planned. Similarly, the economy is strengthening now because all the things Obama was going to do aren't going to happen. You know, there's an investment fund that goes into the S&P 500 when Congress is in session and into cash when Congress is out of session. They've got a study showing the market rises more rapidly when Congress is out of session. It's 17 times more rapid.
EK: As a market-oriented guy, don't you think that if it was that easy to beat the market, every investor in the country would be using that strategy?
GN: Well, they just started it and the fund is doing well. It has outperformed the market for the last three years.
The rest of the interview is pretty lively as well. Mr. Norquist:
The Republicans negotiating with the Democrats are negotiating with Dick Durbin. Durbin. Durbin! Does Durbin have an interest in cutting any government program in the history of the world at any time in his life? No. Never. He's there to sucker Republicans into putting their fingerprints on a tax increase so when you go into an election, people say, "Can't trust them. They'll raise taxes."
Link via Economic Policies for the 21st Century.