tv Cavuto Coast to Coast FOX Business August 8, 2022 12:00pm-2:00pm EDT
stuart: if you look, go all the way down the west coast, east coast and gulf coast, and those are the states that lack that direct access, okay? >> so i can't counting correctly. stuart: our time is up and look who is here now. the man himself, mr. david asman. neil: trust your instings. your first instinct was correct. 27 is the number. welcome to "cavuto: coast to coast." i'm david asman in for neil cavuto. all three indices in the green. the dow on pace to exit correction territory as we expect fresh inflation data come out on wednesday. speaking of inflation, democrats
passing the massive inflation reduction act so-called on capitol hill over the weekend. as the smoke is clearing we find a lot of hidden taxes and stuff that could hit the middle class very hard with this bill. we'll look how all of that will impact your wallet and if it will in fact reduce inflation. david: a new proposal from the department of transportation raising eyebrows if it would allow passengers to get a refund for delayed or canceled flights but can that be enforced and how? we have a busy two hours ahead. so let's get started. and, we begin on capitol hill with the top story of the day. democrat senators joe manchin and krysten sinema facing fallout for their support of the nearly 740 billion-dollar tax-and-spend plan with lawmakers on both sides of the aisle speaking out now. fox news congressional
correspondent aishah hasnie is on capitol hill with what they're saying. hi. reporter: hi, there, david, good to see you. yeah, you're right. look, right now democrats are headed home to tout this big package as a big win but senators manchin and sinema, they are facing some serious political fallout, really getting hit by all different sides. so as you know, senator sinema convinced her colleagues to ditch efforts to include private equity firms in a new 15% minimum tax rate on billion dollar companies and not close that carried interest tax loophole all in exchange for her crucial vote. progressives are calling that move an affront to those who pay their taxes by providing tax breaks for wealthy money managers, while critics took to the airwaves to blast her. >> find someone who loves you the way the krysten sinema loves the private equity, private equity and venture capital.
she fought really hard for that carried interest tax loophole. reporter: sinema is reportedly the 6th highest paid recipient of high private equity and industry. her office is claiming protecting arizona's economic growth and competitiveness. senator manchin's republican colleagues really feeling betrayed by his reversal. they will likely target him in 2024, david. former president trump threatening that at cpac over the weekend. >> joe manchin has totally sold west virginia out. what he has done to west virginia i don't believe, i don't believe they're going to stand for it. i will go down to campaign against him as hard as anybody can. [cheering] reporter: trump won west virginia by 68% in 2020 but manchin trying to downplay those comments, that the president tried this in 2018.
it helped him get elected. so maybe he will help me again. but i got to remind everyone out there, republicans really scooped up a lot of midterm ammo by forcing democrats to take these really uncomfortable no votes on topics that are really important to americans out there like gas, like crime, and border security. we're already seeing that play out in battleground nevada today where senate candidate adam lax at is hitting senator cortez masto pretty hard with the no votes yesterday. david. david: absolutely. i'm wondering what west virginians think of the coal tax snuck into this bill as well. they are likely not going to like that one. ashiah, thank you very much. central to the democrats spending agenda is tougher irs enforcement made possible by a whopping 80 billion-dollar increase for the taxman. that is a six fold increase of what it is now, all courtesy of
the spending bill. fox business gerri willis reports it could give treasury secretary janet yellen powers over corporate tax enforcement. this is very interesting stuff, gerri. reporter: this is brand new stuff and we're just learning about it now. tax experts telling fox business that the democratic, democrats inflation reduction act which passed senate this weekend will give the treasury secretary powers to determine whether the companies have to pay that 15% corporate minimum tax. garrett water son, a senior policy analyst attacks foundation saying this to us, the provisions in the ira employ the secretary to make covered corporations in the minute misdemeanor book tax. for example, the secretary is tasked with determined applicable corporation falls below the annual adjusted financial statement income tax and in a recent analysis of the bill casey mulligan is, who is a former council of economic advisors chief economist under
trump agreed. he wrote this in his blog supply and demand. he says that the bill gives the treasury secretary authority to determine an individual corporation's tax liability. now the new corporate alternative minimum tax would raise some $313 billion in revenue over a decade. according to the non-partisan joint committee on taxtation. to go do that companies would be charged 15% minimum tax on corporate book income, the income reported on corporate financial statements. some 150 companies could fall subject to this. they have annual revenue a billion bucks that would be subject to the tax initially. you know it could grow from there. according to new research from ubs those companies could initially include ford, amazon, nvidia, broadcom. the corporate amt is not the only corporate tax instituted by the ira, inflation reduction act, it would create a 1% excise
tax on stock buybacks. there is so much packed into this thing and the idea that yellen will get more powers is somewhat astonishing. david: talking about picking winners and losers, what amazes me is passed the parliamentarian's view of all of this. this seems like something that should be legislation on its own, not as a part of a reconciliation bill but apparently she didn't have problems with it. reporter: congress has the power to tax. david: yeah. and we shouldn't have the federal government picking winners and losers. we've learned that enough for the past. gerri, thank you very much. not every democrat is on board with the idea that the inflation reduction act will in fact reduce inflation. listen to what senator bernie sanders thinks of the bill, roll tape. >> so-called by the way because according to the cbo and other economic organizations, who studied this bill, it will in fact have a minimal impact on
inflation. david: university of maryland economist peter morici is here. peter, from conservatives to socialists they're saying in fact this bill got the wrong name on it because it is not going to reduce inflation. what do you think? >> the whole thing is a hoax. let's look at the automobile industry there is a shortage of electric vehicles. that is likely to continue to the end of the decade. if there is a shortage of something and you give people extra money to buy that product it simply will drive up the price. so for anyone who doesn't qualify for one of these subsidies, the price of electric vehicles will be even higher. the same thing goes for health insurance. the folks that are not getting the insulin benefit through medicare, they will pay higher prices for insulin. the cost is shifted around. this is silly to think that the president, that the government can lower inflation by subsidizing demand or in some way picking winners and losers. it is just a farce. also it will not reduce the deficit because it only finances
increased health benefits, subsidy for three years. do you think they're going to let it expire? david: nothing like that every expires in washington but there is also the tax situation. again, i was talking about this to ashiah, the fact that you know, joe manchin will have a price to pay for increasing the coal tax but there is also an extra tax on natural gas which is the cleanest fossil fuel we have, $6.5 billion natural gas tax increase. 12 billion-dollar increase in crude oil tax. so i mean, these taxes, when you tax something more you get less of it. we need more energy, not less of it, right? >> absolutely. president increased royalty rates on federal leases by about 50%. these taxes are all going to get passed on. we'll have more short supply, higher gas prices, which is exactly what they want. you know it is a riot. at least they should fess up what they want. they want higher gas prices to
drive us to electric vehicles. automakers can't make yet because there isn't enough lithium this reminds me of a bunn much of 11-year-olds playing monopoly where they change all the rules and the game goes on forever. david: supersizing of the irs -- >> oh, my god. david: the thing hardest to take politically, i don't know why they did this politically, i know why they're doing it, while americans are tightening their belts on all kinds of spending in order to deal with inflation they're increasing the size of the irs by a factor of six, more than six times what the current cost of the irs is going to go from 12.$6 billion a year to eventually, to $80 billion a year. i mean that is, that's huge. according to the joint committee on taxation, which is a bipartisan group by the way, it is going to hit 78 to 90% of the people affected by this will be
middle class and small businesses? >> well, an absolutely. they will go after schedule c, limited liability returns. basically two or three people, one professor giving speeches, so forth. it's a shakedown scheme because most of these small businesses don't earn huge amounts of money. they're 50,000 a year, 100,000 a year. they can't afford the legal fees to fight the irs when the letter comes in the mail. if they did the irs would lose. basically your local agent will pick and choose through the returns to decide to defend you a letter, ask you 10, 25, $30,000. you will have to pay up. this is borrowing money from the street corner banker. in china they have thugs to go out to break up demonstrations, people that are not supposed to be working for the government, look like the mob? you remember lois lerner who was -- david: of course. >> going after conservatives? david: yep. >> we're talking now about small businesses. david: talking about picking and
choosing. if you add i don't know how many tens of thousands of agents. democrats were saying handful of billionaires were getting away with this, you don't need 70,000 extra irs agents, 80,000 extra irs agents to go half a handful of people. >> no you don't. this is an effort to crack down on small business. its an effort to crack down on individual entrepreneurship. the thing to remember the most about progressives, those in washington, generally never succeeded in business and they're jealous of success. this is really jealousy. you see it in academic departments. david: peter, they're giving me, they're giving me a wrap, i have to ask the overall effectiveness on the economy, what do you think it will be? >> reduce growth, increase inflation. it is the national stagnation act. david: wow. thank you peter doocy.
good to see you. coming up, china blowing past the schedule end date for its biggest ever military drills around taiwan. what thehe whihehe i isgay ng. ... your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire i grew up an athlete, i rode horses... i really do take care of myself. i try to stay in shape.
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♪. david: china announcing more military drills around taiwan today, exercises that taipei says are simulating an attack on the island. fox news white house correspondent jacqui heinrich is live at the white house with more. reporter: hey there, david. china's largest ever military exercises around this region were supposed to end yesterday but a day later the chinese have dispatched 39 more aircraft, bringing the total to more than 260 over the course of the last week and taiwan's minister of defense says, there are also 13 chinese warships lurking in the region. president biden speaking on the topic first time since pelosi's visit says he is not concerned but not too much. president biden: i'm concerned that they are moving as much as they are but i don't think they will do anything more. reporter: experts worry china's military exercises could serve as a trial run for invasion of the self-governing island and china hawks are pushing the white house to take a hard-line
against beijing's efforts especially in the aftermath of russia's invasion of ukraine. china is reportedly teaming up with russia behind the scenes and china u.s. relations and dialogue have broken down considerably here. law make remembers considering a bill that would bolster taiwan defensive abilities and deepen the ties to the island but the white house is pushing back against those bipartisan efforts, and it could cause beijing to question the commitment to the one china policy, a position even congressional democrats say is too week. >> i respectfully disagree with the white house. we have to remember that to avoid what happened in ukraine happening with taiwan we're going to have to achieve peace through strength and basically that means helping the taiwanese in shoring up their own defends. reporter: china's foreign ministry spokesperson this morning described the military exercises in some very interesting language saying that they are meant to deter the u.s.
from containing taiwan and shatter taiwan's illusion of relying on the u.s. for independence. those are quotes, david. david: they turn off the machine as you finish your hit with us. always happens. jacqui, thank you very much. china continuing to sabre rattle. our next guest writes in the "the wall street journal," mr. xi's china is faced with weakness and profound demographicking strategic problems, 12 will be tempted to use the burgeoning military problems to transform the existing order while it still has the opportunity. let's hear more from american enterprise institute's michael beckley. michael, this was an extraordinaire article in "the wall street journal" i actually read it twice it was so good. deal with the first part, china's economically weak now, particularly after the pandemic. it is still having the economic
lockdowns hurting the economy. the world recession is going to affect it even more but military at its peak, and that is a very dangerous combination. >> absolutely. so china's coming off of about a 10-year period of churning out warships and ammunition at a rate we haven't seen from any country since world war ii. at the same time the united states and taiwan have been pretty slow about spreading out their forces, making them more resilient. so china has a window of opportunity could carry out a pearl harbor strike on american bases in okinawa and pulverize taiwanese forces before they get oaf the ground. on other hand, by 2030s, u.s. and taiwan as ambitious plans to strengthen military. taiwan will lose 70 million working age adults between now and early 2030s. gain 100 million senior citizens. its economy slowed to a crawl now will be undermined by severe debt, a lack of productivity,
and leadership transition because xi xinping will be in his 80s. david: a lot to chew on. one piece of it most frightening to americans. most people were not around in 1941, but at a time when we were pushing economically against imperial japan, that is when they decided to go after pearl harbor, another base in the pacific. is it conceivable, you think, that china would actually choose to pick on either guam or okinawa, one of our big bases where we have so many troops concentrated? >> well china literally has missiles that they call the guam killers that they want to use to hit the bases early and hard in a war because they know if it does come to war, their only chance of victory is to knock out as many u.s. forces early in a crisis as possible and i think you're right to bring up the imperial japan analogy. hopefully that is the most catastrophic scenario where a rising power reacts against a dominant power trying to choke out its economy by starting a
massive war but i think you can't rule it out in china's place. china believes there are lost chinese territoryies xi jinping wants to take back and there are no peaceful means that the taiwanese people don't want to reunify with the mainland. david: assuming china doesn't hit the military bases but focuses its attention on a invasion or blockade of taiwan that would lead to it taking over the island, how would that affect our world economy? >> well i think in, keep in mind taiwan is a major economy, you know. it is in the top 20. in terms of high technology, the semiconductors, powerful computer chips, for example, the computer i'm speaking to you right now many of those are manufactured in taiwan. so global supply chains for technology would collapse and let's be honest i really think if there is an invasion, certainly an invasion or even a blockade the united states is
almost surely going to get involved militarily, probably japan too. so the nightmare scenario we imagined for crisis in ukraine right now, direct clashes between two nuclear armed great powers would be reality basically from day one of this war. you can imagine how that would easily escalate. either side feel like it is losing may be attempted to escalate using low yield nuclear weapons or expanding the conflict horizontally in other theaters to prevent going down in defeat. david: michael, before you go, is it too late to do something, somehow fortify taiwan or the taiwan strait to make it too hard for china to invade? >> it's not too late. the pentagon, many defense experts all agreed on a basic strategy, essentially laying down a high-tech minefield around taiwan, using lots of simple shooters and censors to do what ukrainians have done to the russian military, but with
precision-guided missiles it is easy to destroy large massed forces of the kind china would need to blockade or invade taiwan. it is matter of urgency procuring weapon systems, deploying them before it is too late. david: it is sobering stuff that you're delivering but we need to hear it and we need to plan in some way for what might happen. michael beckley, great stuff. thank you for being here. appreciate it. well a quick market check as we head out to a break. it looked for a moment there like the dow was going negative but actually we're pretty close to getting out of correction territory. all we need is a gain of about 74 points on the dow. it is only up 31 right now t was going negative but, let's hope for the best. 74 points and we're out of correction, folks. more to come. ♪
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david: welcome back to cavuto "coast to coast." no sooner did we get the news of back-to-back quarters of economic contractions than we get a blowout positive jobs numbers. what the heck is going on? how does the fed react to all the seemingly conflicting news? we have the read from expert press ceo dave maney. thank you for being here. i have never seen anything like this. i don't think you have either. we're about the same age. two back-to-back negative quarters which used to be shorthand for recession and then blowout jobs numbers. how do you explain it? >> david, i genuinely believe this all goes back to the fact that we shut the economy down in covid. david: yes. >> we haven't seen anything like it before because nobody was ever stupid enough to shut the economy down and the way that we
are going to emerge from those shutdowns is entirely different than what would be a start issue recession, or a standard issue inflationary period. david: right. >> it isn't uniform because those, those bulges and tightness in the supply chain were not uniform because it was, it was chaos and when you go to fix your supply chain you fix your supply chain, you don't kind of magically fix the entire economy's supply chain. david: right. >> it is uneven. david: i think that is so smart. i really think you hit the nail on the head. the whole world, it wasn't just the united states, the whole world turned the economy off for several months and there are ripples continuing to do this day but my own feeling, just in this particular instance of why we had this blowout jobs number, that people now, they see all those 10 million unfilled jobs and they can cherry-pick and
their savings is running out because of inflation. they're getting nervous themselves because of recession. so they figure, gee, there is a terrific job out there, maybe i will go for it. do you think that is part of it? >> i think that is part of it. i also think that there was kind of a sigh of relief among, in business, that people like me entrepreneurs who run small and medium-sized enterprises, i think there was a sigh of relief that said, i have been shot at and missed. there was kind of a capital market frenzy. david: yes. >> here we are still standing. so you know what? those plans we had to expand and those technologically enabled advances we were working on, we don't want to stop. we want to keep pushing forward of the guess what? it's a good time, the new normal has sort of arrived if you're running a business. so i think people went out and said, time to step on the gas again on the hiring. david: boy, you make a lot of
great points but again the question is, how this new bill is going to affect things and if inflation doesn't come down, what the fed is going to do. there are a lot of unanswerables in the months coming. dave, thank you. thank you very much for being here. we want to look at markets. the dow is off of its highs, actually, and all we need is a 74-point gain today to get out of correction territory. could we do it? key advisor group co-owner eddie ghabour is here. eddie, what do you think, is this rally going to continue? >> unfortunately this in our opinion is a bear market rally and how violent it is just supporting that. when we look at the back stop of the economic data that is coming in and the fact now that the fed will have to tighten even more than what the market is pricing in, i'm looking at this as on opportunity to trim. i think we're going to hit new lows before we hit new highs in this market because i don't know
how we dodge recession. look this rally we're seeing in the market, it is probably the last thing the fed wanted to see happen after their meeting. david: exactly. >> to cool prices off. david: so we have a problem right now. there is not going to be a good ending to what the fed does here. david: we know interest rates are going up. even some of the doves who were reluctant to raise interest rates even half a point now saying definitely half a point, maybe 3/4, maybe full percentage point because of the jobs number gives them that leverage to do it. nasdaq is supposed to go down when interest rates go up because they're very sensitive to that but in the past couple of weeks it hasn't been that way. today they're down a little bit. do you think nasdaq women be the first that really corrects this, what you would call a bear market bounce? >> i would. i would look to tech to lead the next leg down when they start pricing in the fed because i think the fed is going to call
the markets bluff. another thing not enough people are talking about the quantitative tightening they have to do with reducing the balance sheet. so they will be selling bonds and raising rates at the fastest pace in history while the economy is decelerating from a growth perspective. that is an experiment we've never done before. david: right. >> i'm not willing to take a big risk when they're experimenting with the markets. i'm not in the soft landing camp like some are trying to sell. david: gotcha. very quickly, i have to ask the new bill that just passed i don't think it will cure inflation. even bernie sanders doesn't think it will reduce inflation. do you? >> no. spending money is what got us in this problem in the first place. david: precisely. >> the last thing you want to do is do rate hikes on taxes when we're in a economic slowdown on top of that. david: absolutely. eddie ghabour, thank you very much, eddie. good to see you. coming up new proposal from the department of transportation could send you some cash back if
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david: the transportation department taking a stand against the ongoing issue of flight delays, cancellations by proposing airline ticket refunds. ashley webster at orlando international airport with more on the story. hey, ash. reporter: david, simply put the summer travel season at least for the airports has been a real mess. if you don't have the patience for the long security lines, of course we've seen numerous delays throughout the summer and also numerous cancellations. we're looking at the board here. it improved a little bit as the day goes on in orlando. there are still delays.
according to flightaware the numbers we receives more than 2200 delays across the country and 500 cancellations. the question is as a passenger what rights do you have? the confusing thing the airlines have their own idea what they should do to refund you. should you get a cashing back? should you get a voucher for future travel. it is all very picklety. that is why the department of transportation is trying to get uniform rules. this is what they are proposing and we'll look at some of those rules. for significant delay, what does that mean? they say that is three hours or more on domestic travel, six hours on international. they say you should get a refund if the airline changes the arrival or departure air period of time. if the itinerary changes where it adds connections. if there is a downgrade to a lower class of service like first to economy, and if an airline changes the aircraft type. a downgrade comes along with it with available amenities.
these are highlights what the department of department of transportation would like the airlines to sign up to. we spoke to a travel consultant earlier today, she said whether the airlines go for it or not remains to be seen but the new rules she says are needed. take a listen. >> i think we'll probably see a little bit of back and forth and airlines push back a little bit. i'm not sure how successful that will be but this definitely does kind of tighten what airlines are able to get away with at this point. reporter: right now, david, there is a 90 day public comment period which will take it all the way to early november. in that time we'll find out if the airlines are on board with the new rule changes but some clarity would be very good for passengers who all too often are strapped trying to figure out what they're going to do next. back to you. david: i haven't taken an airplane since the pandemic began. i just, i haven't ventured in there. i will do it in the fall.
i will do it in september but not looking forward to it. ashley, thank you very much. reporter: okay. david: civil rights attorney brian claypool on all of this. brian, i know the europeans do it but i'm always wary of following a european model, aren't you? >> hey, david, great to be with you. not on that example for. i'm all for it. i just had a coup weeks ago, my first time fly since the pandemic. was taking my daughter on three-day trip. night before, flight canceled. next flight was end of day. the trip was ruined. should be refund. david, for example if have a hotel reservation you prepaid you can't get out of hotel reservation or flight canceled or delayed you should be reimbursed as well. i don't think this goes far enough. let's talk about the second issue, does the department of transportation have authority to promulgate this type of rule and i would argue that the d.o.t.
after this 90-day period they will have to submit this to congress for congress to allow some type of hearings and get feedback as well. congress has to approve -- david: brian, forgive me for interrupting particularly since the supreme court has been very recently been focusing on the fact that federal powers need to eminate from congress, not from the executive. the executive is not supposed to be the one that makes laws. that is supposed to be within congress because they pay the price for it? >> you're exactly right and just to be clear for your viewers, department of transport tearings is an executive branch. so i was a little surprised to see, oh we'll come up this new rule which is really a new law but, like you said, they can't do that until they submit this to congress because congress is the legislative branch. i think we're all tired of executive orders issued by
presidents and other branches of the government unilaterally setting rules. but let's even go one step further real quick, david. even if this law is somehow passed by the d.o.t., trust me, airlines might fight this they might file a lawsuit to challenge this rule. david: i'm sure they will. >> why? because we have a private remedy. we have a private remedy. we can sue the airlines ourselves for the lost cost of tickets, hotels, et cetera. david: absolutely. it is not going to be easily done and there have been all these power grabs. you look at the so-called anti-inflation bill they just passed. there is a lot of power grabs in that we're discovering right now, unfortunately after they already passed it. great to see you. thank you very much for being here. appreciate it. >> yeah. david: coming up los angeles is considering a plan that would force hotels to house the homeless. talk about a power grab by government but hotel owners are pushing back. the president of the northeast los angeles hotel owners association is here next.
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david: voters in los angeles will soon decide if hotels there will be force the to house homeless residents but hotel owners are pushing back. ray patel is the president of northeast los angeles hotel owners association. he join us now. ray, good to see you. thank you for being here. how do you think this woe would affect the hotels there? >> good morning. if this initiative passes in the ballot in march of 2024 we'll be required to accept vouchers by providing our room inventory to the city of los angeles by 2:00 p.m. every day. then the city of los angeles will issue out homeless vouchers where they check in afterwards. 2:00 p.m., 3:00 p.m., is when guests are starting to check into the hotels and now we're forced to send our inventory. it affects marketability of our product and longevity after thriving business which is to cater to tourism, corporate travelers and local markets.
david: yeah. >> we feel it is not fair and it's not right. david: ray, obviously we have sympathy for the homeless. everybody has had a moment where you passed by a homeless person, you want to give them something to help them out but a lot of them have serious issues and some of which are dangerous for the communities. drug issues, alcohol, sometimes mental issues, et cetera. the government has been really off in dealing with this issue, whether it is in los angeles, chicago, san francisco or new york, the government has not stepped up to do what they have to do to get these people who need help off the streets. so they're really passing it on to the hotels, aren't they? >> yes, they are. i do agree with you. we are very concerned about the safety and the liability of this hotel voucher program if we're forced to accept them. the safety for our staff, our paying guests and also our, the neighborhoods that are directly surrounding these hotels and we
have addressed that. we addressed that last friday to the city council and fortunately, they have didn't vote for this initiative that came before them outright and make them law. so therefore now it is on the ballot. questions need to be answers as far as if, if voters agree with initiative, vote this into law, who is going to compensate us for the liability issues? insurance carriers are already claiming that you know, our insurance will go up or they won't underwrite for us. and you know, paying guest, does not want to be next to somebody that might have mental or substance issues. david: no, no. >> hotels don't have those services available to them. david: of course, you know, it is going to hurt the hotel industry because a lot of people might think twice about staying in los angeles, staying in a hotel, if they think they will be on a floor filled with people that have these serious issues. and we actually had a piece of that issue here in new york where during the height of the pandemic they put a lot of
homeless people in hotels and, there was less of that coercion element that you may have to deal with in los angeles but even then, it turned out terribly. the neighborhoods were terribly affected. families moved out because they were worried about safety for their kids, et cetera. so, we have seen it tried and failed in the past. >> yes. we had a, during the pandemic they had a program in city of los angeles called project room key is similar to what they had in new york where some of the hotels that we represent volunteered their hotels for project room key where the city took over the entire hotel and provided housing for the homeless but theys also provided 24 hour security, substance abuse, mental health programs, for the homeless, food, those, those wraparound services are not something the hotel industry in los angeles provides. david: of course not. >> if we were to accept these vouchers, we're just at a
disadvantage here. david: finally, ray -- >> it is unacceptable. david: the idea of government, of politicians who don't know how to run a business micromanaging business to this degree in a way that could adversely affect a business, maybe even put hotels out of business, it just, it doesn't make a lot of sense, does it? >> no, it doesn't. that is the fear of the hotels that we represent because l.a. is designed in such a way easy for consumer to jump to the next neighboring city, still visit l.a. to conduct business, visit family or look at attractions in los angeles there was a twitter poll done by local news channel. almost80% would not vote to this initiative. they talked about the things you and i just talked about. david: thank you, ray, appreciate it. fallout from the border crisis
is coming from the big apple as a second bus of immigrants arrives in new york city. fox news's nate foy is live in new york with the latest on this. hi, nate. reporter: hey, david. thanks for having me. 14 of an expected 40 migrants arrived in new york city on that second bus just a few blocks away from where we are in midtown manhattan. mayor eric adams was there to greet them. he said there are rumors some migrants got off the bus at different stops along the way. a three-day journey from texas to new york city. look at this group here. mayor adams says each and every migrant will be cared for and given housing. he is requesting more help from the biden administration. white house press secretary karine jean-pierre says fema is providing funding to ngos dealing with migrants. either way mayor adams and new york governor kathy hochul are voicing displeasure with governor greg abbott today. listen to this. >> he is totally disregarding of
the human part of this, this humanitarian part of being an american and i think that there is nothing more anti-american that than what he is displaying right now. >> top line messages, it is unconscionable that a governor would treat human beings as pawn in his chess game to score political points. that is not who we are as new yorkers. reporter: david, here's the governor's response. he tweeted three minutes to midnight last night, quote, new york city mayor says this is who this horrific. did he say it was horrific when biden flew plane loads into new york in nope. horrific is biden letting in two million more illegal immigrants. the new york mayor has no idea how horrific it really isthis bus arrived in new york city on friday this group was bigger about 350 migrants, new york congressman, gubernatorial candidate lee zeldin says the
economic aspect of this will get worse for new york and time for the biden administration to leave. >> if these people refuse to go down to the border to solve this, all of sudden the border is making its way to washington, d.c. the border is making its way up to new york. we have to work together as americans to tackle this. reporter: you heard the congressman mention washington, d.c., where 6500 migrants have been bused since april. mayor muriel bowser plans to amend the request for initial support. that was turned down by the pentagon. that happened on friday. this is just the beginning, david, governor abbott said thousands more migrants are coming. david: those numbers, may sound like a lot, but it's a small percent what they're dealing with at the border that has to be kept in mind, nate, thank you. look at the markets, all three indices bouncing around today in positive and negative territory as you can see. 74 points on the dow is what we need to get out of a correction.
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new democrats tax and spend bill. welcome back to a second hour of cavuto "coast to coast" i'm david asman in for neil. got a lot t get to this hour. we will dig into just how this bill could tax the middle class, to spike claims that it only hits the wealthy. plus gas prices are continuing their decline but headwinds are ramping up. we'll be hearing from lip out oil associates president andy li pow, on what might halt the prices and apple caving to china over tensions with taiwan. what the tech giant is doing to avoid angering beijing. we have a lot to get to so let's get started right away. first, economists are fearing the stagflation as 739 billion inflation dollars are thrown into the inflation reduction act advances. joining me now is hillary vaughn , on capitol hill with more on this. hi, hillary. reporter: hi, david. the white house is taking a
victory lap for the senate passing a small chunk of president biden's build back better agenda, $700 billion in new government spending, spent on things like climate change and healthcare. >> reducing costs in medicare is one of the ways this bill actually reduces the federal deficit and when we reduce the deficit we are helping on the inflation front because that's complementary to what the fed is trying to get done. reporter: but not all democrats agree that the inflation reduction act, that the senate passed over the weekend, will actually address inflation. >> i want to take a moment to say a few words about the so-called inflation reduction act and by saying so-called by the way because according to the cbo and other economic organizations, the study will in fact have a minimal impact on inflation. reporter: some economists do predict that the package will bring down inflation in the long , long, long term paying
down about several hundred billion dollars of u.s. debt, but there is wide agreement. nothing in this package will bring down inflation before election dayment. republicans say more government spending is what caused this inflation and they don't think democrats learned their lesson. >> the democrats are banking their whole political future on the hope that america is financially illiterate. i don't think they are. i think most americans realize that if the government spends more money, and spends more money recklessly and unnecessarily, then that's going to lead to more inflation. reporter: republicans are also arguing that the tax hikes in this package targeted at corporations will ultimately trickle down to consumers, and they also make the point that the part of this bill that doubles the size of irs agents would actually impact the middle class and everyday americans too democrats argue that doubling the irs would actually help them target the such- super-rich
dodging paying their taxes but half of the people the irs audited were people making less than $75,000 a year, not the super, super rich. david? david: i just want to add something on to what you're saying is about doubling the size but over a 10 year period, it is increasing the size of the irs by a factor of six, from about 12.5 billion to 80 billion over a 10 year period so this is a huge increase in the size and power of the irs over people's lives. we're going to be debating that coming up. hillary thank you very much. well, meantime president biden is out of quarantine and hitting the road today looking for a mid-term boost from voters. here is fox news white house correspondent peter doocy are more. reporter: and david, this is the president's first official business since he was freed from that double, back to back covid uk. he is down in kentucky getting a briefing about the deadly flood
damage there that the governor sitting next to him saying that what they really need donation- wise right now, is dollars, and so because the president is doing that, trying to get a lay of the land down in kentucky right now, he's not talking a ton about the inflation reduction act passing this weekend, however, somebody asked him on the tarmac earlier today if he thinks it's going to help democrats ahead of the mid-terms, and he gave a very revealing answer. >> do i expect it to help? yes, i do. for example, those on medicare will not be billed more than $ 2,000 for drugs no matter what the costs are. that's a big deal. reporter: so, democrats put their heads together, and decided they can justify spending hundreds of billions of dollars by hiring those 87,000 new irs employees, because they think there's not enough, there are enough people out there, not
doing their taxes right that audits can bring in hundreds of billions of dollars more, every year. >> look, they call it the inflation reduction act. this is the most orwellian name i think that i've seen in the united states senate in the 12 years that i've been here look at what they're doing. they're increasing spending and raising taxes while we're in the middle of a recession. reporter: president biden has had a big week over the last seven days. he announced they killed the leader of al qaeda, they had a better-than-expected jobs report, they got this inflation reduction act passed, but there are new concerns that while some of those things might, for example, show that major recession can be staved off, that the thing the president says is his number one priority, fighting inflation, might not be happening. david? david: thank you very much, peter good to see you. well, meanwhile the joint committee on taxation, that's congress' official tax score
keepers bipartisan, it says 78-90% of the money that will be raised from underreported income and super-sizing the irs would likely come from those making less than 200,000 a year. in other words, the middle class let's bring in former investment banker carol roth, and capitalist pig hedge fund manager jonathan hoenig. both of whom i'm sure are in favor of this new bill. i'm joking i'm joking. >> [laughter] david: carol, the thing that worries me most is, it's a lot less money than the four or 5 trillion that bernie sanders wanted but it's actually, in many ways, a bigger power grab from the federal government, is it not? >> it is. we have to come out and keep rejecting the premise that the government and the irs has some sort of revenue collection problem. they are estimating to collect $4.4 trillion in revenue this year, david, if they just spent what they did in 2018, they'd be running a $300 billion surplus, or what they spent in
2019, we'd have a balanced budget. we have a spending problem, and unfortunately, i've been warning people about this since last year. this is, as you alluded to, going to affect the middle and the working class. it is a power grab. they aren't going to be coming for the cronies who have the fancy accountants. it's the mom selling on ebay. it's the small businesses, it's the independent contractors, that is where the federal government is getting its power. david: and jonathan, you don't hire 87,000 new agents, irs agents, if it's just a handful of billionaires that you're trying to get money from. obviously, it's going to boil down to increasing taxes on the middle class and small business. >> well yeah, david, inflation is already increased those taxes you don't spend hundreds of billions of dollars if you want to reduce inflation. honestly, they should call this the inflation creation act. you never settle in washington but that's exactly what this spending from the democrats is doing.
this is my estimation. take the non-for profit tax foundation estimate. not only will this increase inflation, david. it will reduce economic output, it will reduce jobs and it will reduce income over the long-haul for every class, so-called top class and middle class as well so as carol said look, spending money by the government does not create wealth. it destroys wets in the long term. it destroyed jobs in the long term and that's like the only product, the only plans the democrats have is more spending and more taxes. david: carol we have peter maur ici on in the first hour, he said they should call it the stagflation impact, but finally this thing that gerri willis found in this bill, that gives the treasury secretary the right to choose winners and losers, that is to focus, to put the finger on certain corporations that she thinks should be paying more, i mean, that, first of all i don't see how it passed the muster with our parliamentarian, but
that's not part of reconciliation. that's a whole new bill that has to be voted on, right? >> i mean, this is what government has been doing for years and years now, at every level whether it's the federal or the state or the local. they have been picking winners and losers. they did that in covid. they do that during their money give-away. that is all they are continuing to do because that's how they maintain and consolidate their power so i'm glad gerri was able to dig in and highlight that, but unfortunately, unless we get everybody to pushback and say that's not okay, we're just going to get more of this from the government. david: well people were pushing back but it didn't seem to change the vote. go ahead, jonathan. >> still quickly, david, obama tried this as well. corporate taxes, which the bill wants to raise, corporate taxes are not paid by those evil corporations. they are paid by consumers and paid by employees, so the taxes will be paid by fewer jobs in the future and that will hurt every american. david: you two are so good together we'll bring you back at the end of the show, so stay tuned for more of carol and jonathan. thank you, gang.
well, democrats are hoping that passing the massive spending bill will boost their odds of keeping a majority in the mid-terms this fall but a new poll shows negative views on the economy and crime are still hurting democrats, and not significantly improving the public's negative views on president biden's handling of his job. gop pollster lee carter is here with more on all this. so lee, this is an abc ipsis poll taken between august 5 and 6 that was after joe manchin sort of agreed to pass this , so people had a chance to digest the fact that this was going to go through, and it hasn't changed their minds. its done nothing to help the democrats in terms of the mid-terms, has it? >> it hasn't yet, and the bottom line here is the proof is going to be in the pudding. people are skeptical this is going to mean anything to them when you look at two-thirds of americans said they didn't think that build back better was going to impact them on the same sort
of applies here. a lot of people are saying i'm not sure how this is going to impact me in the short-term and i do think if things start to get worse and people start to feel worse about the economy, inflation continues to get worse after this plays out, then i think that it's going to harm the democrats, but the truth is this. republicans can tear down this plan, republicans can go at this and they are going to attack this and continue to which is exactly what they should be doing this moment is highlighting the deficiency but they are going to have to put forward a plan so that people see what are republicans going to do better so that when it comes time to vote in november, that they are going to say what i'm voting for is republicans plans to do xyz for me because right now even though the poll ing looks terrible for democrats, the general, the generic ballot is only one or two points apart. david: that's true. >> republicans should be running away with it. they have to come up with their own message, their own plans that makes people believe their life is going to be better if republicans are in office. david: that's a great point, and to that point, there are a number of conservatives like my
buddy larry kudlow whose saying look, republicans have to get clear on taxes. americans don't want to super- size the irs. they know it's going to affect the middle class more than or they are going to take more money from the middle class than from the very rich, so we need to change our tax system so that it's more fair so that maybe have a flat tax or something like that that would kick in at $20,000 and 20% on everybody. you could actually downsize the irs if you have a more simplified tax code. something like that, don't you think? >> yeah, there's no doubt about it. simplified taxes, spend less, show that people can do more with their own money, create opportunities for americans, there's so much that republicans stand for if they package that, put forward their own proposals. the americans are hungry for it. look 90% of americans are saying the last three months they feel worse financially. they are less optimistic.
it's not good. nine out of 10 americans are feeling worse. republicans have an opportunity to leave here and that's just what they need to do if they want to win in november. david: it's daily life. not only economics. it's the crime issues, it's the worries about the border that's completely uncontrolled allowing fentanyl in. it's our schools. i mean, it is, no matter how many so-called legislative victories the democrats have inside the beltway, it's not going to make people outside of the beltway feel better, is it? >> no. absolutely not. i mean, just passing a bill is not enough to make the american people feel better right now. there's a lot of controversy around this , skepticism, trust in government is at an all-time low so let's see how this plays out. it's going to be really important that the republicans deliver a counter message not one that just takes down the democrats and points out what they are doing wrong but showing what republicans are going to do right. david: the one final thing i want to mention is that after the pandemic, there was so much of a power grab during the pandemic by politicians who weren't following the rules,
that they themselves created. i think that americans are suspicious and cynical about government micro-managing our lives. they didn't like it to begin with but once they saw it in action during the pandemic that doesn't play well and there's a lot more of that in this bill. >> you're absolutely right about that. there's one thing people don't trust government. they don't want to involved in their decisions in their lives but want more freedom so i think you're absolutely right there. david: nothing wrong with freedom. in fact if you just want one word for the republicans to run on, it should be that word freedom if they want to make progress. lee carter great to see you thank you very much for being here. appreciate it. >> thank you. david: coming up next, china is staging renewed military drills around taiwan, and now at least one u.s. tech giant is capitulating.
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david: well, big business running into some big issues, amid the rising tensions between china and the u.s. over taiwan, with the made in taiwan label, becoming a flash point in the geopolitical stripe. madison alworth is here with the latest. reporter: hi, david. so as tensions rise between china and the u.s. , some american companies are working hard to keep china and its
consumers happy. apple has asked suppliers to insure that shipments from taiwan to china comply with chinese regulations that label them as being made in either taiwan, china, or chinese taipe y. another company, mars wrigley, the parent company of m &m and snickers apologized for a product launch which chinese social media users accused of suggesting that taiwan was a country. in a statement, published, the company said, "mars-wrigley respects china's national sovereignty and territorial integrity and conducts its businesses operations in strict compliance with local chinese laws and regulations." china's power of the purse is strong, with over 1.4 billion people, all of these companies have in recent years, apologized to china. and most use the same phrase, that they respect and uphold china's sovereignty and territorial integrity. china and its consumers regularly exercise their power, since 2016, there have been 78
boycotts of foreign companies. that's more than six times the number seen in the preceding eight years, according to the swedish national china center, so you see it on both ends. the businesses making this and also the consumers, when businesses don't, taking action. david? david: there's another phrase that comes to my mind. it's cowards that's the phrase that comes to my mind when i think of some of these corporations and what they are doing. madison thank you very much. well china's military announcing fresh drills in the seas and air space around taiwan with china's military restricting access to civilian and business ships, and aircrafts. so can china control taiwan without having to invade it. joining me now is retired u.s. army general keith kellogg. general great to see you. thank you for being here. now there's a word for a nation sort of isolating a country, and not allowing anything to come out or to go in and that's called a blockade. that is a definition of war, is
it not? >> yeah, david. thanks for having me today. absolutely. a blockade is an act of war. in fact remember during the cuban missile crisis we never called it a blockade of cuba. we called it an embargo. there are multiple crisis going on and clearly the china taiwan crisis is going to grow but let's make sure everybody understands a little bit. china really has never controlled taiwan until 1,945 year at the end of world war ii and from 1870 on as the result of a war between china and japan , japan won the war, japan controlled taiwan. the communist chinese have never had operational control territorial control of taiwan at all. it was after 1945, we won the war, china was on our side, as part of the peace negotiations, china got control of taiwan and the eventually the general went to taiwan so what we've got now something of
our own making because it wasn't until 1972 with the shanghai and nixon going to china that we agreed there was one china and taiwan was part of china, and it be solved diplomatically. well that's not going to happen, david. the way it's going right now is clearly, looks like it's a real friction point. clearly the chinese are pushing very very hard militarily and i'm afraid that within the next two years they are probably going to do something and what you said is very true. when you look what they've done the six zones they have setup after nancy pelosi's visit looks like a blockade. david: it sure does. >> and a blockade doesn't work, it heads into an invasion. david: well the problem that they have, not that i'm upset that they have any problems but there are some real gems in taiwan. particularly the chip industry that provides 90% of the chips for the whole world. they don't want to destroy it and have a war of attrition like russia is having in ukraine because they want a lot of those
gems that exist in taiwan. that's why in my mind what xi is thinking is a blockade be better better than an invasion. no? >> you know that's true. if he can get away with it but i'm not too sure a blockade will work because we've had blockades before we've penetrated remember the berkshire hathaway min airlift, that be much more significant helping taiwan, and we're going to have to pushback but what they are doing right now is really testing the limits by crossing the midline and the taiwan straites with massive aircraft firing missiles around taiwan but i think we have to be very very president light. what sq is looking at is the weakness of the presidency and saying well i don't know what's going to happen a couple years down the road. i may have to take some type of gamble in the next two years and do some type of invasion. david: let me ask you, forgive me for interrupting, but one of the biggest fears i think that people have, and it was expressed in a wonderful wall street journal article over the weekend, we had one of the
authors of it, that perhaps they could really go the distance, and do something like what japan did in 1949 with our base in the pacific which was called pearl harbor. is there a possibility of a preemptive strike against our base either in guam or in okina wa? >> well look that starts another war with china. it's very clear that they are very very provocative and one thing, china really has not fought a major war since the korean war. they really haven't fought a major war and they would have to be tested. one thing i can say about our military its been tested and improved if we have to go forward but we have to be president light in what we do. having only one battle group in the pacific is not too smart. in 2019 we actually put three battle groups, carrier battle groups into the region around taiwan in the south china sea but i think what we're doing is we're reaching a point with taiwan which by the way is our
ninth largest trading partner. here is a country and really it is a country, a democratic country, democratically-elected government of 23 million people and the world has to stand up and say what do we really want to have happen in the future. david: general we only have 15 seconds literally, but china's navy is very powerful. a lot of people are saying we have lost our engine terms of naval power to the chinese. is that true? >> in local areas the answer is yes, because they control those areas around it but it's not a lost cause, because we have combined arms capability, the chinese have not proven yet but we maybe smaller but we're pretty darn powerful. david: general kellogg, thank you very much very important subject i appreciate it. well, gas and oil prices have fallen in the last week but the relief at the pump could be short-lived we'll hear from a top oil expert when we return. baby you're a firework ♪
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david: we are bake with top business stories starting with one of the world's largest tech investment giants suffering a multi multi-billion dollar blow. that's a big blow. lauren: yeah, big company, japanese conglomerate, who make these big investments in tech names, dd global, doordash, and uber which it just sold off because, well, those investments didn't pay off. softbank just reported a $21.6 billion loss on vision fund. i am quite embarrassed and reflectivity morse full and says he'll be showing restraint going forward and warned about layoffs in the vision fund. he's not the only billionaire whose luck seems to have run out warren buffett berkshire hathaway reporting a $44 billion
net loss in the quarter. berkshire owns apple but also coca cola, back of america, american express and chevron as top five holdings. berkshire, however, did report an operating profit. there's a difference. it's also sitting on $105 billion cash, looking for the right company, and the right moment to pounce, or in the case of occidental, slowly build a stake. let's take a look at the airlines here, they are struggling to recover from yet another weekend of complete chaos. already today, 530 flights canceled within into or out of the u.s. , 2,542 delayed. it's only 1:30 on east coast. that follows 950 cancellations and more than 8,000 delays yesterday, so, the airlines blame the weather. that did actually cause the computer system outage at southwest, and then you have an airplane wing smash into a poll at o'hare in chicago, o'hare is leading in cancellation and delays right now.
you add in few staff, loss of passengers about 7 million since friday going through tsa check points and you see , david, how these problems metastasize so some people opt to drive. david: there's a reason i haven't flown in two years, and that's the reason. thank you very much, lauren, appreciate it. well the average price of gas approaching $4 a gallon, nationwide. part of a two-month decline but with hurricane season approaching, the possibility of another war in the east, and new energy taxes in the tax and spend bill, could prices go backup? joining me now to share his predictions of where gas prices could go, lipow oil associates president andy lipow. great to see you i've been looking forward to this because you're the man and seeing into the future of these prices. let's take the energy taxes that appeared in this billion. they were a shock to a lot of people but billions of dollars in new taxes on oil, on natural gas, which makes no sense to me, because that's a pretty clean fuel, and on coal, which makes
me wonder why joe manchin supported this thing. are they going to effect the price of gas at the pump? >> well, i think they are going to have very little impact on the price of gas at the pump. what we have is the administration that is moving away from fossil fuels to more alternative and renewable energy and that's what you're seeing happen in this package, where a lot of money is being funneled over to these new technologies. david: you also have apparently and we haven't seen the details but what brought joe manchin aboard were these promises of more drilling permits that were made to joe manchin, at least that's what he claims. we haven't seen them yet. do you believe they're coming? >> well, we're going to have to wait and see which areas of federal lands are reopened to the oil industry. we've seen from prior sales that the some small amount of federal acreage has been open but not nearly in the quantities that
the oil industry would like. david: and we're still, correct me if i'm wrong, but we're still about a million barrels a day short of where we were before the pandemic, right? >> yeah, that's about right. today, oil production is about 12.1 million-barrels a day. that's up a good 500,000-barrels a day since march, and we're seeing oil producers adding rigs to the extent they can. the rig count is about 60% higher than this time last year, but like everyone else, they're constrained with all the supply chain issues, starting from labor to trucking to pipe, to frac sand. david: but andy let's face it. they're also restrained by this administration, which announced that it's beginning, it wants to kill fossil fuels. >> well that's right. if you're in an environment from the oil industri' perspective, with an administration that really wants to discourage the use of fossil fuels, reduce the number of gasoline powered cars that are on the road, and you're worried about demand
going forward is very hard to invest in that environment, and as a result your seeing major oil companies and refiners buying back shares and increasing their dividends to account for the profits that we see them making. david: right it's also tough on financing. these oil companies need financing, one they're putting pressures on banks not to finance fossil fuels projects but they are also having difficulties because we're not sure about pipelines, we're not sure about drilling on certain areas of federal lands where we know there's oil, so all of these factors add up and saudi arabia, let's end with that. saudi arabia agreeing to add about 100,000-barrels a day. that really doesn't make it, does it. >> well it really was an insult to not only the united states but to the european union as well in order to temper the energy crisis that we've seen rise over the last couple of months, but now we're seeing that the consumer is responding
with demand disruption and oil prices are now falling. crude oil is below its pre- russia invasion of ukraine level. david: so it's falling because of the demand destruction, that as people can't afford the high prices so they are using less gasoline. i've heard, by the way, we're now down to a demand gasoline demand that we were at two years ago, during the lockdowns from the pandemic, right? >> well there's a lot of debate on the eia weekly stats but what i would say is it appeared gasoline demand is off 3% compared to this time last year and we're also seeing demand destruction in other parts of the world, where they simply can't afford the high price of energy and you see rolling power blackouts in pakistan, requests to reduce demand in bangladesh so a lot of places outside the united states are leading the way down in demand destruction. david: wow, andy lipow, thank you, andy, for all that appreciate you being here. well the nasdaq's new diversity
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boards, it's essentially written by bernie sanders and aoc and elizabeth warren. david: has nothing to do with the companies financial position charlie: very little and adena f riedman put this out there and said well it's not totally, it's somewhat voluntary but kind of mandatory. they talked around it. it was the most bizarre thing. long story short you got a new sec with gary gensler, very leftist sec, approves the rule. then, it was just a matter of time before someone sued on it, because again, this sort of supercedes the mandates of either an exchange, exchange is not supposed to set public policy. i mean, why is adena friedman setting public policy that affects the environment or diversity? why is gary gensler doing that? great question. obviously, there are, that's something that should be done by the executive branch and congress. as we do know, from the recent supreme court ruling, epa versus
west virginia that administrative overstepping your administrative role as an agency will cost you and what we hear now is yes, 17 states with something called the national center for public policy research, it's a conservative group, they sued. they are in courts right now, but there isn't a lawyer i speak to that doesn't say that advantage goes to the plaintiffs on this one. not the defendants, which is the sec essentially. that this thing is taylor made for the scotus precedents on epa versus west virginia which is saying you're the epa. you can't overstep your bounds. yes you can create standards but there are certain things that are distinct. certain things that go one step further. david: in other words it should be done by congress. charlie: and the will of the people, so that's what it's saying and by the way those things are very distinct. you can figure them out. we don't have enough time to go through all that but that should rain in this rule, everybody,
every lawyer i spoke to, thinks so. now, we'll see what the court, you never know you get before a liberal judge. this thing is -- david: if it goes to the supreme court based on west virginia versus the epa we think we know how they will decide. charlie: yes and i think there's a good chance this is going to the supreme court, because if you talk to people, it's such a precedent setting thing. when was the last time a woke exchange, the nasdaq, first off, the nasdaq should be in business to create capital formation of tech companies and expand employment. not tell us how many lgbtq people should be on a board of directors of one of those companies. that's not, that's something that's done through laws through other things, and not the nasdaq and the sec, but anyway, that's where we are right now. after this west virginia ruling, advantage plaintiffs. for now. david: executive overreach. in fact a lot of this in this new bill passed over the weekend but we got to run maybe tomorrow we can talk about
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david: well a lot of office spaces are still struggling to recover from the pandemic with many remaining empty leaving commercial real estate in a slowdown. fox news mark meredith is here with a look at what futures of the cities could look like. mark? reporter: david good afternoon to you, does 2020 ever end? it's no secret the pandemic has changed how many companies are doing business but for businesses which rely on heavy foot traffic, the post-pandemic world remains quite rocky. so you got some businesses which have mandated that workers get back to the office. others are still offering remote options, so several commercial buildings which were once busy remain fairly quiet. cbre, a commercial real estate and investment firm reports that inflationary pressures and uncertainty around office utility station caused hesitation among tenants which
slowed down leasing volume for a second consecutive quarter. the same group reports a handful of cities are seeing strong demand, commercial real estate talking about places in the sun belt like austin and atlanta, tech cities like san jose and boston seeing growth but with fewer workers and downtown office buildings, businesses nearby, talking about bars, restaurants, barber shops, you name it a lot of them are also seeing less foot traffic which of course impacts their bottom line. we caught up with one restaurant owner here in d.c. who says business is still nowhere near where it used to be. >> used to be everyday about 150 people on the line. used to have seven or eight people working here. no. the corona came. it's like day and night. reporter: later on this month, back in omaha, nebraska there's a commercial real estate summit with a major focus on working through what the industry calls a difficult period as so many businesses adapt to the hybrid schedules and david ursino show that sixth avenue live shot a
few minutes ago and look at it. it's 2:00 almost, place is empty david: i know and the irony is, a lot of the building projects are still continuing. projects that started up before the pandemic, and they are still going up. i don't know who they get to fill these new buildings so we'll see what happens. reporter: maybe it's time to buy a building. david: if i could put together the money. thank you, mark appreciate it. well despite all of what mark just laid out, and about a tight labor market the wall street journal pointing out today that hiring is actually getting easier for some employers. back with me now, is former investment banker carol roth and capital pig hedge fund manager jonathan hoenig. jonathan let me go to you first. i think the reason it's becoming a little easier, according to this wall street journal article , is because of cash. the cash that people have is not going as far as it used to, because of inflation. more people are going into debt, in order to pay off some of their debts, and folks are also getting worried about a
recession, so they're grabbing jobs right now. what do you think? >> yeah, they're looking for opportunity toss go back to work. part of what's changing is the gig economy. people are looking for the uber types of jobs, gig economy jobs and one of the things remarkable , david, is as was pointed out post-corona, the labor force participation rate still hasn't recovered to pre-pandemic so while there's more jobs available the number of americans working at the jobs has gone down quite considerably and people are saying you never seen a period like this in u.s. economic history. david whenever we've seen inflation above 4% and unemployment below 5%, it has always led to recession 100% of the time, so i'm a little worried just as in the early 1970s employment was at 5% by the end of 18970s it was double that point, that's my fear is the unemployment rate is getting ready to spike. david: but carol this is an exception, because of the fact that i've never seen two down quarters back to back
with this kind of a job growth that we just had last friday. that's very unusual and it is one point in which inflation is actually helping employers, at least in terms of hiring, because it scares the be-jesus out of folks looking for work. >> this is obviously unusual, because we never had a government in history that said let's just shutdown one-third of the economy. that was unprecedented, and all of the central planning, the monetary policy decisions, the fiscal policy decisions that disrupted the labor market and caused inflation, we are dealing with a very strange set of situations, because of central planners but i think that you are absolutely right. the inflation, the fact that people are dipping into their savings, their personal saving rate is down to great recession financial crisis levels. the up-tick in terms of debt, you know, that stimulus money has run out, people need a way to survive and to deal with this
inflationary environment and so that is bringing people, at least making them willing to accept jobs if it's not fully bringing everybody back to the labor force. david: john, we do have the kind of buffer of all of these unfilled jobs, the last count was about a little over 10 million. could that dry up very quickly if we go into a third quarter down? >> extraordinarily quickly, david. keep in mind, if some of the difficult times in the last 20 years you had the phenomenon of so-called mba's waiting tables. we haven't seen anything near like that at this point but inflation destroys wealth, inflation destroys jobs in the long term, so that's my fear is that we've seen an up take in some of the service-oriented jobs, long term the inflation that we're into, the government doesn't seem to be willing to counter any particular way, that drives up jobs and that's difficult for the economy in the immediate to long term. david: very quick to last point , carol, on real estate.
are we going to have another commercial real estate crisis right now? >> i mean, i heard that we have 87,000 new irs agents that need a place to go, so between them and the amazon warehouses maybe we'll just convert everything, david, and avoid it altogether. david: it's just amazing how many of these buildings in manhattan are at-best half filled. i don't know how much longer they can go on. carol, jonathan, good to see you both thank you very much. stocks by the way flip-flopping as the dow tries to hang on to the gains it needs to exit correction territory. could happen if it stays at the current level. more to come. ♪ . .
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david: so if the dow stays at current levels of above 75 we are out of correction territory, folks. so that's god news. charles payne can take the good news and do something with it, charles. charles: i will take it and run. david, appreciate. good afternoon, everyone, i'm charles payne this is "making money." breaking now, market resolve that is confusing everyone especially the experts but while you might dismiss the stock market it is the message from bonds are making a lot of folks second guess whether or not the fed could engoer a soft landing. nvidia is i can tanking after warning. beth kindig is coming up. she is a believer in the stock. she has been on a roll. how about this