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tv   The Kudlow Report  CNBC  July 2, 2012 7:00pm-8:00pm EDT

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for a recuperating, not vacationing larry kudlow. we are seconds away from "the kudlow report." who turned supreme court chief justice john roberts into a vampire -- sucking the red out of the red, white and blue? plus, bad manufacturing numbers equal bad signs for the global economy. the question is just how bad? plus it looks like the sanctions against iran are working. they're angry. oil prices are down but now iran is saying you wouldn't like them when they're angry. ooh! "the kudlow report" is moments away. >> i like to say there is always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim cramer and i'll see you next time. thank you, jimmy. good evening. i'm joe kernen here for a recuperating larry kudlow. he shouldn't have come back to work too soon. this is "the kudlow report" tonight. here for the entire hour dan senor, a romney foreign policy
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adviser. i'm a big fan. i have a whole chapter devoted to your book. >> i have to write another book that sources your book sourcing my book. >> i felt like putting your chapter in was retweeting because i do that now. >> long form. >> our top question when did supreme court chief justice john roberts turn? cbs says roberts changed his mind on obamacare in may despite lobbying by conservative justices. roberts reacted to polls in the new york times working as chief publicist, not chief jurist. trying to protect the court from having their credibility called into question. which branch of the government now remains to teach my kids that they should hold in high regard? you will hear what people tweeted to my question in a second. if the chief justice is playing into freudian issues what's better -- being loved or being right? the dow down eight as a poor manufacturing number showed we
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are contracting. the concern, we are headed into a global recession. cue the qe-3 tapes. where is the president's leadership on this? here's leadership. president obama sanctions his team to use the f word in a t-shirt for use in fund-raising another f word. how could the president of the united states, inspiration to children, lower himself to use such vulgarity? maybe from the vice president. to pa are a phrase the dnc, take a listen, bitches. >> this is a big [ bleep ] deal. >> thank you. >> but first it seems the country's highest court isn't so immune to outside political and media pressures after all. despite the normal secrecy of supreme court deliberations there are reports tonight that have been around for a while but getting more and more confirmed that chief justice john roberts was pressured to switch his opinion. roberts allegedly planned to
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strike down obamacare's individual mandate. while writing the decision switched his vote in an effort to save the court's reputation and he reportedly stuck with that opinion despite a month-long lobbying effort by the court's conservatives. we'll talk more. i'm going to tell you who led that effort which is even more astounding. here to react to the news is a partner with jones kay day who argued the case before the national federation of independent businesses and anthony kennedy, apparently the word they used was relentless. during that month trying to get roberts to switch back to calling it unconstitutional. the swing vote everyone was worried about that might not go the way of conservatives was trying to talk the chief justice into going his way. it doesn't get more bizarre than that, greg. >> it's very surprising. frankly, if that story is true it's very, very disappointing. >> because of the timeline. because it was after -- it was
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almost as if he came to the conclusion and his questions indicated he had a problem with the mandate, we all talked about it at the time, what he said, what scalia said, what kennedy said. then we saw the president talk about obviously he didn't read marbury versus madison closely. we heard what he had to say about a supreme court that would overturn this. we heard what the new york times had to say, what the legal establishment which is always left wing or at least left wing oriented. after all that it seems he came to a different conclusion. >> that's exactly right. the government's tax arguments seemed to get no traction at all. the argument was mocked even by -- >> the guy was coughing presenting it. he had a choking fit. he couldn't even say it. he was choking on it. >> the only thing that changed from the moment of the argument when every was focused on this until later was the all out political attack on the supreme court.
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it's discouraging to think that may have worked were you surprised by kennedy's role here. everyone thought he would be the swing. not only was he not the swing, stick with the conservatives but he actually, according to the reporting led the charge to. >> he's often the swing vote in close cases which is why people had that thought. >> when you go back and read what chief justice roberts said about the humility of the court and not wanting to do major things and not wanting to judge whether a law is the right law or the fair law, just whether to judge it, i see how he could have been sitting there thinking, wow, i've got a president up for re-election. this is a signature bill he passed. i don't want to be in a position to do this.
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then he seemed to go backwards to justify it. >> none of the calculations have a place in a proper role of judging where the judges are like umpires. they are just supposed to call the balls and strikes. >> we'll hear from the other side in a moment. we appreciate your time today. thank you. >> thanks. >> assuming that justice roberts was turned our question tonight -- and i tweeted this out. and i don't ever tweet. if the supreme court is susceptible to political pressures, is the court's reputation tarnished? is there any branch of government, i asked, that can still teach kids to hold in high esteem? i got the dmv. don't prompt them to do it. we'll show the tweets later. joining us now is constitutional scholar and george washington university law professor jonathan turley.
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check these out. this is a branch of government one person suggested. the new york times we can still hold in high regard because apparently they have so much influence now as a branch of government. perhaps more. that was one of my favorites. the dmv was another. please don't be tempted for them to start another one. i saw some of your comments. they are deep. i want to understand what you are trying to say. you think he made the right decision but it's a tortured analysis for how he got there. is that what you are saying? >> i agree with the president on many programs. i shared the federalism concerns that existed. i don't believe chief justice rehnquist protected federalism though the opinion starts out early on with a roaring endorsement of federalism. >> roberts, you mean.
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>> yes. it was negated when he then turned to the taxing authority. it left you scratching your head because robert during oral argument asked for a limiting principle and asked the prostate cancer -- broccoli question. he said, why can't you require everyone to have a cell phone? and they stumbled on that one. when you read the decision you're left with a massive taxing authority. you say, can they tax you for not having a cell phone? the point is one was missing the same limiting principles of the other. if you could do what's being done with health care i don't see the limitations. what happens is that federalism becomes a line. it's really impressive except if you go around it. >> you believe justice roberts believed that he was correct and he was not succumbing to political pressure.
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>> you know, i'm going to give him the benefit of the doubt. uh i think we too often do not give people the benefit of the doubt. >> he had a sitting president up for re-election where if he struck this down it would probably have influenced the election, right. >> first of all, what's being suggested even by friends of roberts and people who like them is offensive. to preserve the appearance of neutrality, greater collegiality and nonideological work he voted in a way he wouldn't have voted otherwise. >> he obviously thought the mandate was unconstitutional because that's the way he voted. he had to find a different way to preserve the bulk of the law so it didn't appear that the supreme court -- >> you know, during oral argument he asked about tax. it was very brief. but he didn't have the barbs like the cell phone question.
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i think he -- i mean, i'm willing to accept he believes it and he should get credit. >> a lot of conservatives would never have guessed he was to the left of kennedy. that's what happened. thanks to jonathan turley. we appreciate it. >> thank you. >> call it the obamacare tax hikes. according to the house ways & means committee president obama's signature achievement includes 21 tax increases costing more than $675 billion over the next ten years. get this. 7 # 75% of the costs could fall on the backs of those making less than $120,000 a year. joining us to break it down is steve moore of the editorial page of the wall street journal. i wonder if you would like to weigh in overall, just not on the implications of what we were talking about. have you found a way this explanation came about? do you have any idea? aren't these back flips and call
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stet nicks to make sure the law stood to make sure the mandate was constitutional? >> they appear that way. i won't say anything about justice roberts motives. but i disagree with this idea that somehow this upholds the principles of federalism. i find it to be unpersuasive because, as you were saying this says, look, if they tax you to excel you to do something the congress can do what it wants. i see this as a blow to liberty. if there was a long term strategy i don't see. i think they are reading it wrong. >> can you clear up the difference between -- see, we called it a penalty. we don't know -- there are those that just pay for this whole thing. then there are those that don't go into i. but this is a tax,
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too. can you distinguish between the two? >> nobody can. that's the problem. >> it has to be 2014 before we know what's in it. we have to pass it. >> this has gone through so many iterations where the obama administration said it wasn't a tax and then said before the supreme court it was a tax. you saw on the sunday talk shows a representative said it's not a tax. this has a lot of components of a tax. t let's call it the mandate tax. it will cost middle class families a lot of money. that's a problem politically for president obama. it goes back to his 2008 promise as you know, joe, when he said anybody who makes less than $200,000 will not pay a dime more of taxes under my program. the courts have declared it is a tax. i estimate $2,000 per family that doesn't have health insurance. >> this is dan. the tax on medical devices, on manufacturers of medical
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devices, what was the thinking behind that? i can think of a tax that's more perfectly designed to stifle innovation and entrepreneurship and risk innovation capital i would be hard pressed to find one not articulated in the exact way this was. >> i agree with that. it's one of the dumbest taxes in the bill. the other one i think is going to stifle business is the investment surtax. tax on capital gains and dividends at a time businesses aren't investing. that's a huge tax increase. this is supposed to pay for the program. but i think it will hurt the economy more than raise revenues. >> thank you, steve. hope to see you in the morning sometime. and jared bernstein is on all the time. i need somebody. >> you've got it. >> he need as wing man. this is why i'm here. you need a wing man. >> you can't have him on by himself. >> thank you, steve. coming up an economic shocker stops stocks, oh stomping on
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friday's monster rally u.s. manufacturing drops into contraction territory, another sign of a summer stall. our market pros are next. coming later, iran threatens to wipe israel off the face of the earth if attacked. this coming on the day europe begins enforcing an oil embargo and harsh sanctions. what's it mean for the price of oil? free market capitalism is the best path to prosperity and the most moral economic system. "the kudlow report" will be back. ttd#: 1-800-345-2550
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after stocks rallied big time an last week's euro summit markets took a hit in the day's session down eight points or so after a weak manufacturing data before recovering the ism index showed contraction, a slow down in manufacturing. also happening in europe and china. are these weak numbers a spill over from bad economies elsewhere? here is macro chief investment officer don luskin and macro strategy president david goldman. that's confusing.
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isn't it? don luskin, friday is really the day i want to talk about. was that justified? >> absolutely justified. you know, another day, another summit in europe. this was different. they were on the verge of making a bad systemic mistake. it gets into technicalities maybe a lot of viewers won't understand but they are important. when they did the spanish bank bailout promising $100 million to bail out troubled banks the hundred billion in bailout securities were supposed to become senior to all other spanish sovereign debt. that's like asking everyone who owns spanish debt already to take a haircut, to basically have holdings junked. let me show you how stupd this is. do you know who the biggest holders of spanish debt are? the same banks they are trying to bail out. if n the act of bailing them out they make them insl vent. they fixed it on friday.
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that's worth a rally. >> i hate to disagree with don -- >> you can't. >> move on. >> it was a scam and the entire european press is saying so. the germans agreed to supposedly recapitalize spanish banks who will need three times as much money as was offered. they have ten ways to weasel out of it. it was a p.r. stunt. short covering rally. fade the rally, take the chance to sell into it. you want to stick to very low risk stuff in the markets. utilities and tobacco issues. reduce portfolio risk. you don't want to own american banks common. you want to own preferred because this market is going south. >> david, it appeared -- and she got flak for it -- that merkel went 180 degrees in a matter of 48 hours. >> but she didn't. it was nonsense. it was all p.r. merkel agreed to, in principle maybe in the future to bail out the spanish banks a little.
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they will need 300 billion euros. >> wait a second. where do you get your information? do you read the statement -- >> of course. >> when they come out of the summits? >> the new york times of germany -- >> what do you think they are doing, lying? >> if you read the german language site of the new york times of germany they denounce it. >> the new york times of germany? >> what about the national enquirer of germany? read the statements the leaders make. >> they have ten weeks to weasel out of bailing out the spanish banks. >> they are not doing direct investments. period, paragraph. can't you read? >> i don't understand. don, your trend macro and david is macro strategy and you don't agree on anything. >> that's because i read the german newspapers in german. >> you're reading the new york times of germany.
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i can't stand reading the new york times of new york. you made good points, as did you, don. we'll see how long this lasts. >> do you do micro. >> it's like a judge driving by wayne state and someone said that's the harvard university of detroit. his response is who would want to be the harvard university of anything? >> exactly. up next, heat, severe storms causing death and destruction. do you believe our biggest argument was not between democrats and liberals. >> between macro and macro. >> market guys. at least 17 dead tragically. also power outages at historic levels seen only after hurricanes. we have a full report and other top headlines when we come back. whoa!
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the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. tweet that immediately. almost 2 million people in the midatlantic states are facing another night of no power which i experienced twice in the last year or so in new jersey. cnbc's seema mody joins us with that and the breaking headlines in the newsroom. >> that's right, joe. for those without power it's been too hot for too long. a late report now from steve handelsman. >> thanks. good evening. you can see the problem. see the continuing crisis in this neighborhood in northwest d.c. where a big tree hit that house. today, three days after the tree
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fell they've got the tree off, but nobody has come to deal with the wiring. the wires are down everywhere. in washington, from north carolina all the way to new jersey. about 2 million households without power. linesmen are rushing from as far as canada and florida to fix the problem. but pepco the main utility in the washington, d.c. area said it probably won't be until friday before they get the power on in most of the affected homes. >> it's been hot every. the noaa reported that more than 2,000 temperature records have been mashed or broken in the past week. in the west, fire crews are battling in several states. air and national guard c-130 crashed while supporting firefighters in south dakota. other aircrafts have been grounded as a precaution. near colorado springs fire crews are slowly getting control of the waldo canyon fire that
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destroyed so many homes. now up to 55% contained. microsoft is taking a 6.2 billion dollar noncash charge writing off the goodwill in a 2007 acquisition of aquantiv. thaf losses totaling nearly 9 billion dollars since they acquired it. >> i was trying to figure out. was that just another bad acquisition. >> just a bad deal all around. >> if you write off anything over 6 billion dollars that was probably ill fated. they seemed to try so many things to go beyond windows. >> completely. trying to diversify the portfolio. leave it to them to weather the storm. >> weather the storm. good segue. >> that was good. >> thank you, seema. up next, is the supreme court's oh-bummer-care decision. and that was on the
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teleprompter. >> that was awkward. >> you're a writer. this is tv. at least look pretty. a game changer for the upcoming presidential election. let me handle this. not according to the court of public opinion. we'll explain when we come back.
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the president from interview: i talk to folks on rope lines and in coffee shops. people who have been out of work. you can tell it wears on them. narrator: he's fought to pull us out of economic crisis for three years. and he still is. president obama's plan keeps taxes down for the middle class, invests in education and asks the wealthy to pay their fair share. mitt romney and his billionaire allies can spend milions to distort the president's words. but they're not interested in rebuilding the middle class. he is. i'm barack obama and i
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welcome back to "the kudlow report." i'm joe kernen in for larry kudlow. dan senor is my special guest co-host for the entire hour. >> lucky you. >> yeah. when i tweeted, i was going to put best selling author and free market thought leader. >> that's great. best selling author of start-up nation. the story of israel's economic miracle. >> if i say author. >> finish the sentence. >> this half hour something dan is an expert on as oil sanctions against iran take effect iran threatens to destroy israel. and two iranian agents arrested on terror charges in ten i can't. is iran on the warpath because their economy is in shambles? plus, how could the president of
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the united states denigrate himself and the office by allowing the f word to be used in selling t-shirts to raise campaign money? have we become so snooki'd that this is acceptable? we need a poll. first the supremes obama care verdict was a win-win for both presidential candidates. for the president it validated his chief legislative accomplishment. romney saw a surge of enthusiasm and support padding campaign coffers with over $5.5 million in the days since the decision. to what degree, if any, will health care play in the presidential race? here now scott rasmussen, founder and president. do you have anything concrete yet, scott, that you can tell us? actual data for how this will play? >> well, right now we know that 52% of voters nationwide would like to see the health care law repealed. that's numbers haven't changed since the bill was passed more than two years ago.
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we know enthusiasm among conservatives is way up. it was up before the ruling. it just went into the stratosphere with the rule. we don't know if that will be maintained or not. right now mitt romney up by two points in the daily presidential tracking poll. we can go on and on about the health care law and all the numbers with it. there is a simple truth to this election. the primary issue is still the economy. if the health care law is tied into the debate over the economy it's going to hurt the president. if it's treated as a diversion from it, well, i think the president would rather talk about just about anything other than the economic numbers. >> that's the one thing. it was a diversion. we have a jobs report this friday. >> scott, this is dan. if that's the case do you think -- if the president knew in january of 2009 that he wouldn't have a health care bill signed into law until march of 2010 and all the political capit capitol, energy and time expended in the process for the reasons you said that it's not a jobs bill, not a jobs law.
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do you think knowing what they know how, they would have gone another route? >> it's easy to say that. we hear democrats say if we sell it better it will be popular. we had the image of charlie brown trying to kick the football with lucy holding it. they said it when scott brown was there. we need to sell it better. there is a belief in that. in august of 2009 the president could have dropped back, passed a smaller version of health care. >> could have been bipartisan. we wouldn't be -- >> that's right. >> -- heading into an election with 51 votes from the senate it could be repealed. >> if romney happens to win. why is your poll -- i mean, the huffington post has gallup numbers. they are rubbing it all over themselves, widening the gap. how do you still have romney up? who do you talk to? >> you and me.
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>> there's a simple thing. >> stop calling me! >> gallup right now and most other firms are polling registered voters. a cnn poll was out of registered voters. showed obama up three. polls of likely voters are always showing a better result for mitt romney because the enthusiasm is higher. there won't be as many younger voters going to the polls as there are in the register voter polls. we are looking at a gap between registers and likely voter polls. we are the only ones tracking likely voters on a daily basis. >> thank you, scott. >> thank you. >> i wish you had more time. you're coming on in the morning with me. if you're going to push your book, i can push "squawk box," right? >> scott's to the right of sorkin. >> who isn't? >> andrew sorkin. >> don't get me in trouble here. here is jimmy wayans who i had
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on set last time. looks like a republican. looks can be deceiving. cnbc contributor jimmy p. do you know why i'm going to say it? i have been practicing greek names because of what's going on over there. i'm not afraid to say yours. they said jimmy p. but i'll do the whole deal. >> embrace the madness. >> of the american enterprise. >> yeah. >> institute. >> two jimmys. jimmy williams. we had two williams last time. now we have two jimmys. we were just talking. i heard the president now saying about obama care i didn't do it because it was popular. i don't think they knew then this would be the response. three years later. now he's doing what's right for the country at a cost to his political capital. that's the way it's framed now. that's a switch. >> the president is up for re-election. this is an election cycle. i would expect the president of
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the united states to spend any time he thinks will help him the best. after hillarycare you would think this white house would have learned the lesson that the theory of doing health care reform would be a double-edged sword. it should be a shock to no one on the panel or watching the show that health care is an unpopularity. at the same time the obama white house and the obama campaign have done a terrible job -- and i'm a democrat -- of saying what's good about the bill. if they don't start doing that -- >> why? they went into 2010 on a single congressional democrat ran a campaign ad for obama care. >> correct. >> why aren't any democrats or virtually none willing to actually talk about why this is a good thing if they believe it is. >> i think you're seeing a shift. you are going to see democrats do that. if i were advising jim matheson of utah i wouldn't advise him to
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embrace obama care. if i were advising other democrats up for re-election, especially in the house, i would do that. the reason is because there is a hell of a lot of good stuff in the bill. how do i know? i'll tell you. republicans, my friends on the right are now actually taking out pieces they like. the 26-year-old staying on. >> you could have done that with rahm. you didn't have to have the country at each other's throats. >> i agree. >> and jimmy p., it's one thing to say that healing the economy or creating jobs that there was an opportunity cost to focusing on health care. it's a whole other thing to say not only was there an opportunity cost but you hurt the attempt to add jobs because small businesses are afraid to add jobs. so it wasn't just -- >> right. >> it's bad enough to be criticized for not focusing on the economy. you hurt the efforts. >> it's the big jobs swap. we'll be losing small business jobs. but we'll be gaining more irs
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agents and more. all the politician who is want to sell obamacare. they have to tell people in november which if you look at the last group of economic reports it's a good chance in november the economy will be barely growing. one and a half to two percent. unemployment will be eight and a half plus. what we need is another $5 a 00 billion in tax increases, not counting the other tax increases the president wants. that's a very tough sell when the economy is not growing to tell them, do you know what need? more taxes. oh, we have a huge deficit? we need a plan to expand the deficit. when the congressional budget office comes out with the new score on this bill after the supreme court decision it will show this thing will be expanding the deficit significantly over the next decade. >> joe, i want to just address a
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couple of things jimmy said. jimmy is a smart person. >> exactly, yes. >> there is a problem. i don't understand why my friends on the right have a problem with 22 million private paying customers being delivered to the free market insurance industry. why is that a bad thing? >> why should we have people that walk into a hospital that you and i have to pay their health care costs? >> the issue you're talking about which is the uncompensated care cost has been widely overblown. >> it's like 1%. >> not because of that. >> jimmy and jimmy -- >> the adverse selection issue which i'm happy to talk about. but the e.r. issue is a red herring. >> all right, guys.
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thank you. jimmy pethakoukos. >> i'm a fan of his work. i read his stuff. >> you have to be relaxed to sneeze on live tv. >> gesundheid. >> thanks, guys. i have republican party superstar governor chris christie of new jersey. a lot going on through the countdown of jobs friday. also more on the american made series. did you see the ben & jerry interview. >> no. >> i won't eat the ice cream. >> why? >> they gave a million dollars to occupy wall street. they make hundreds of millions with the american dream and bite the hands that -- you see that happen. even a dog won't bite the hand that feeds it. they eschew capitalism and everything now. >> the revenues will crash because you won't buy their ice cream. >> what, am i fat? >> no, no. >> i am, i am. >> you ran today. >> up next, iran wants a win-win
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or else. these threats are after a new strict european sanctions were put in over iran's nuclear program. what does this mean for mideast stability and the price of oil? dan is handling this himself. he knows this stuff cold. [ male announcer ] this... is the at&t network.
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iran is irritated not taking kindly to oil sanctions. we are now in day two. the regime announced legislation to disrupt traffic in the strait of hormuz and tested missiles as a warning. today kenyan officials arrested iranian agents with explosives planning to attack american, saudi arabian targets inside kenya. joining dan who is the author -- we are going to show it this time. >> it's the least you could do. >> you brought it in. >> i didn't think i did. >> author of "start-up nation, request story of israel's economic miracle." it's got a whole chapter in the book about capitalism because it's a prime example of what you do. if you become more --
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>> the thriving entrepreneurial society. >> low regulation. all the stuff we hear that we put up as sort of a hypothesis that it might work. people argue with this when you can just look over and see it works. independent oil trader and cnbc contributor dan dicker is here. >> dan and dan. before we had jimmy and jimmy. >> two macro guys. >> the p-5 plus one talks are picking up this week. where do you think -- what will we say at the end of the week as it relates to progress with the technical talks? >> it's hard to say. as you know, the talks we have seen so far have been about creating more talks. they haven't given us anything substantial. i would be skeptical to see anything substantial come out of this round in istanbul. what's been interesting is that the pressure that's been exerted upon iran through economic sanctions and now through the
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european boycott which is in day two has been pretty stark. it's been a pretty incredible application of pressure on the iranians. twla come to the table with something substantive they will have to. their economy is cratering because of the very calculated planned kind of application of pressure over the course of the last seven or eight months. >> the defense minister talked about the zone of immunity saying the real clock that matters is not the clock that measures the speed at this the nuclear program is developing but the fortification meaning there will be a point at which they fortify the weapons program and the israelis won't be able to puncture that fortification and the weapons technology won't be able to be used to wipe out or delay the program. >> i would love your opinion on this. where do you think the wall falls where it becomes a point where the fortifications are too much where any kind of strike -- strategic or otherwise -- has
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zero -- >> well, the israelis, we are bumping up against the point at which the israelis can reach but the americans can reach it beyond that point. so do the israelis outsource to the americans the decision to protect israel. so the sanctions are in place. you say they are working. is it too late? imagine the sanctions were put in place four, five years ago in 2009, 2010 as opposed to when the administration was doing the outreach there were biting sanctions implemented? >> look, i think this has been a a difficult period for the obama administration in an election year to, in many ways, agree with the israelis that something needs to be done about iran. it's been difficult but they are doing it. it's tough on the europeans because obviously they are in recession. tough on the americans. they were in an election year and tough on the israelis because they have to hold their tongue and fist. >> all right. dan, thank you. >> both dans. >> i should have brought my
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book. >> you should have. we're not using yours. we'll do his again because he told me to. up next, the president use it is f word and it's not fund raising or firetruck. it's washington, lincoln and reagan all turning in their graves. recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards.
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let's do what's best for our students-by investing in our teachers. let's solve this. [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.
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welcome back to "the kudlow repor report". i'm joe kernen. joining me tonight on set is dan
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senor. we usually call this segment the f-block. tonight we are doing so more than ever. apparently using the f-bomb is okay in presidential politics. the obamacampaign is selling this t-shirt and the president tweeted that health reform was, in his words, still a bfd. we know who he's channelling, the vice president. now congressional republicans are pitching a t-shirt of their own calling obamacare a bftax. what the f? here now is the traveling secretary for the obama campaign and sean spicer, communications director with the republican national committee. jen, not for nothing. f-bombs here and there. i have been known to use the word. my daughter had a problem with it. she's 12 and said if she used it she'd get in trouble. is it right for the president to put the stavmp of approval on that? but you seem excited as democrats do about what happened
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last week. 18 months of divisive ps and a lot of political capital, a rout in the house for democrats. spawning the tea party. now it's not just 18 months. it's now three and a half years. you finally hear it's constitutional. you've got unemployment above 8% for this entire presidency. this is something to celebrate that we are still talking about health care reform and saying it's constitutional. >> joe, look. for decades, millions of people have gone without health insurance. the costs of health care have been rising for decades a as well. yes, it's been a long road. everybody's happy that now three branches of government have agreed it's constitutional. we can move forward with implementation and that's what we want to focus on. >> you know it's not over. now that it's attacks it opens reck sell united nations. live by the sword, die by the
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sword. you don't need 60 votes now. just 51. sean spicer, do you want to talk about using the f-word or whether it's something to celebrate or not? >> whether you talk about the language or the activity in terms of leader pelosi had a party that night. the tweets that came out from the democratic national committee and the president to some extent. i'm not sure what they are celebrating this has been one of the biggest inhibitors to job creation and drags on the economy as people say i don't know if i can afford to hire more people with obamacare. you have families concerned that this is going to limit their choices, put doctors or the government between doctors and patients. i don't know why they are celebrating. the big question is are they willing to campaign on it? i don't think many democrats are eager to campaign on it. it polls poorly for the reason i outlined. it's bad for the economy, bad for jobs and frankly bad for health care. it limits the choices that people will have.
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so i'm not sure what they are celebrating or why they are. >> this is dan. i'm obviously sympathetic to sean's perspective here. >> i hear you are. >> he raises a good question. democrats didn't campaign on the votes for obama care in the 2010 midterms. >> mm-hmm. >> do you expect president obama or congressional democrats to campaign on it this time around? if not, why not? >> well, dan, the president did this, as he said, last week because it was the right thing to do morally and as we know the costs of health care have been increasing for a long time. not because it was the right politics. the president has been talking in his campaign and we'll talk about the benefits that have come into play already. 3.1 million young people are now covered. in two years, 129 million people who have pre-existing conditions will be covered. there are a lot of benefits. >> the problem, jen, i apologize. but i think the problem is the young people need it because they can't find a job under this
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president's economy. seniors are concerned because it would cut $500 billion out of medicare. i think when you start -- the trillions of debt getting piled on because the costs will explode on this. families are concerned. small businesses are concerned. and so i think overall you look at the different demographics. there are a lot of people out there concerned about the implementation of that. >> first, we all know fact-wise in the first year it will low i are the deficit by $100 billion. the first decade. in the second decade by $1 trillion. those are the facts. >> if you buy that logic, i have a bridge i would like to sell you. >> well, look, i'm basing it on what independent analysts say, not on talking points. >> okay. >> look, this has been a tough day for mitt romney. as we all know and saw, eric
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fernstrom came out and said, it's not a tax. it was a penalty. >> it has to be a tax or it's unconstitutional. >> but with all due respect, jen, why don't you answer the question? you all campaigned and said it's not a tax, not a tax. the president sent the solicitor general to the supreme court and said, in order to get around the commerce clause it is a tax. the only reason it was deemed constitutional is because the argument was it was a tax. >> we're out of time. quick response, jen? >> look, i will say this. the penalty that's in the affordable care act. >> tax. >> was put in there because we know millions of people have been covering free loaders for decades based on mitt romney's own plan. >> you can't read it well. >> jen, thank you. sean, thank you. we appreciate it. we've always got somewhere to go and more to do. thank you, guys. >> thank you. >> that's it for tonight's show. special thanks to my guest for the evening dan senor's book is
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great. "start-up nation." chris christie is on "squawk box" tomorrow. >> he read the book. >> and larry is back on thursday. here's a picture of my book. >> you have plugged my book so much. your book deserves love. >> thank you. >> go to amazon. >> quid pro quo, clarice. thanks for watching. good-bye. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote.
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usaa. we know what it means to serve. welcome to summer road trip, huh? as the hotel experts, finding you the perfect place is all we do. this summer, save up to 30%, plus get up to $100 on us. welcome to this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thin coffee shops. people who i thave been out of work. you can tell it wears on them. narrator: he's fought to pull us out of
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economic crisis for three years. and he still is. president obama's plan keeps taxes down for the middle class, invests in education and asks the wealthy to pay their fair share. mitt romney and his billionaire allies can spend milions to distort the president's words. but they're not interested in rebuilding the middle class. he is. i'm barack obama and i i don't have to use gas. i am probably going to the gas station about once a month. drive around town all the time doing errands and never ever have to fill up gas in the city. i very rarely put gas in my chevy volt. last time i was at a gas station was about...i would say... two months ago. the last time i went to the gas station must have been about three months ago. i go to the gas station such a small amount that i forget how to put gas in my car. ♪


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