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tv   Key Capitol Hill Hearings  CSPAN  August 21, 2015 1:00pm-3:01pm EDT

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governance in brazil. i think those are the immense opportunities that we have and i think people are aware of that and there are people who do good work and all of those areas. including businessmen, research organizations, etc. >> think you very much, paulo. peter? anything to react to. peter: i would just like to say -- wow, we learned a lot. what you have in brazil is huge uncertainty. unpredictability. almost anything you hear today is in discussion. there is no sure path out of this crisis or the corruption. so i think that a prediction will be sort of shifted and he said this earlier, what is in the news this morning -- we
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don't know because we are sitting here. i just want -- there are so many things first the approval ratings of the president are between 8% and 10% which is extraordinarily low, as we know. there is no indication that will change anytime soon. we have a president at that low a level of approval so the foundations of government are very shaky. second, that is why there is some protect ability to say i think brazil and the president are breathing easier today than they were before the demonstrations and a lot has
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happened in the past couple weeks that does suggest a slightly easier path for her but things could change very quickly. the economy really does remain in terrible shape. every day the news are that the recession will last longer than had been protected yesterday. that the austerity program put in place by one of the most respected economists in brazil across the political spectrum is really not working very well. he called for a reduction in the fiscal deficit of a percent and a half and is likely to be about zero now. so the shaking of the economy, the uncertainty there creates enormous political uncertainty. and investors and business people are all waiting and watching and trying to figure
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out how you react to this. the scandals which i haven't mentioned yet, the corruption is going to keep spreading and spilling over into other countries of latin america. it is not only affecting petrobras but there are other huge government agencies involved and are member that petrobras was 10% of the brazilian economy. that is huge. that's like the state of california going into a scandalous situation. this is a huge company and there is nothing like it in the united states as a part of the economy and then you have electrobras, and half a dozen other "brases." it is a public-private partnership. there were other sectors that are probably involved and will be discovered. so all i am saying, not that it
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can't be solved and i don't want to sound pessimistic because there are reasons to see some glimmer of light but i think the emphasis at this point has to be on unpredictability. the other problem that i have with what we have heard and i will skip over a lot of the other stuff here is whether this is an institutional crisis or a governance and political crisis. you note you have three branches of governance and brazil very similar in some ways and to of those -- two of those branches are in a bit of chaos now. turmoil might be the better
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word. the executive branch honestly the president with low approval ratings other members of the executive branch and other senior officials have been involved in this scandal or previous scandals. member that petrobras is a state run oil company. it is not high officials running that so you have an institutional crisis in the presidency and secondly, the legislative branch which is seen and viewed by most -- these scandals work because it is corrupt. and there you can also see the divisions 29 parties in congress. the largest single party controls maybe 15% of the seats in the lower house so you need coalitions and these have to be
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crafted. there crafted by jobs and bribery and earmarks to the local constituencies. so you have two branches that really are in crisis. the judicial is working like no one expected it. five or six years ago if you talked about the judicial system being dysfunctional -- in part it is working. i think it is working because the other two branches are paralyzed.
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in most other cases in brazil where you have this kind of problem, the presidency, the executive branch can keep a lid on it or the legislature can keep a lid on it. now you don't have that. the street demonstrations have also made it harder to put a cap on that. if there is the positive note, let me end on a positive note. i think there is more of a consensus on what has to be done in brazil, regardless of who is in the position. once the fight more or less the economic
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program is wildly unpopular in brazil and one of the causes of ae marches, is in fact well-crafted, well thought through program supported by business leaders. and they are certainly putting their weight behind what is left. secondly, the judicial system showing its ability to move and the legislative and executive branch are not interfering. with herevery country hats the exception of chili. the prosecution of crimes is not being investigated.
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the judicial system is working. the legislative and executive are letting it work. finally everybody was screaming that doma had to reestablish relations with the united states. didn't accomplish a whole lot to did a establish more channels. also talking about opening the economy as you suggested, talking about the need for -- there is a lot of positive language that a lot of different politicians could support in all this. it could be a consensus output if it all comes together.
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i wish he would have been a little firmer in this last statement. in other words to say this is not the time for impeachment unless there is some criminal activity discovered. but he didn't say that. talked about her either resigning or apologizing. maybe this audience will think says i havethat made all these mistakes for the past four years. here's a list of the mistakes i have made. in i want you to support me the future. and think of one that survived any kind of apology like that. the party has been divided on this issue comes out stronger, that would be a very good sign to look for.
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>> i have a number of questions but i will forego that because and ie about 40 minutes see a lot of people who have been following brazil. feel free to make comments. you don't have to disguise the mess questions. start with larry. please tell us who you are. microphone and tried bs is synced as you can. >> during the recent trip to the united states, what you have alluded to, she met with president obama and the various ceos in new york and silicon valley. was ansensus was it successful trip to patch up the
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differences between the two governments. despite her extremely low approval ratings, what are the applications along bilateral specifically for brazil's efforts to attract u.s. investment? >> why don't we take some others? >> i'm a professor at georgetown right now. you've talked about the economic but you have in the mentioned that this economic crisis is generated because resulted not take advantage of the commodity income to diversify, to invest in people and so forth.
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what kind of discussions are going on in the business what the sitho structural changes need to be pursued in order not to go through this same thing all over again the? >> we will go back to the panel. >> kind of a follow-up to the first question. much has been said about the risks to our like to ask what are the risks of their staying power? to use an american expression, one of the risks of having a lame-duck president for three years, and specifically the way the government sees the world,
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specifically the american government sees the lame-duck , cannot hurt business ethics government? >> we will have one more final question. >> i am with the executive intelligence review. i will bring in reality. reality is actually very frightening right now. the daily telegraph from london had a headline that is useful and situating what we are discussing as a brazilian crisis. it is the doomsday clock for global crash strikes one minute to midnight as central banks lose control. i would add to that that we are one minute to midnight from a global confrontation with the united states, and russia and china.
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we are really discussing much more -- well, if that is the context that we are discussing brazil. i would like to know if anybody has given consideration to a backlash -- i know there are sectors nationally, if you want to call it in brazil. this would be more in the industrial military. the defense sector, who views the extent of this. i am probably mispronouncing. when the nuclear submarine project was gone after. as you said, this is every major brazilian private company as well. there are people very much who view this as a colored revolution. it is coming from foreign interests. that is something to be considered because that is a
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pretty strong thing, particularly given that brazil's allies, russia and china in particular, have identified cultural revolution as strategic methods of irregular warfare. >> can we get to the question? >> that is it. i am commenting on the backlash. >> is go back to the panel and then we will have other questions. you want to react to some of those? >> yeah. with respect to the economic debate, i think there are two main issues being discussed. i would not call it a consensus on what needs to be done. i think there is an understanding that the formula
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that worked in the past is not working anymore. we are reaching a crucial moment. two key issues are fiscal. we are facing a current in balance. when we talk about fiscal restructuring, it is more structural than anything. the 1988 constitution created mandatory spending. in fact, there is a study by a well-known economist in brazil that was published recently and got traction because it shows what is going on now is not just the mismanagement of the economy , it is a more structural
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facture. if nothing is done in terms of constitution reform, pensions, labor, etc., brazil means to create a new transaction tax every four years. that transaction tax retired in 2007 and generated $50 billion a year. need to create that every four years to get the finances in order. overall, there is a sense that the structure of entitlement and mandatory's ending needs to be addressed. -- mandatory spending needs to be addressed. there is no mandate to do that as of yet. that will be a challenge for this government, for who takes over, and the next couple governments. the second issue is actually improving relationships with the private sector. in brazil, we always prepare -- we always compare ourselves with italy. operation clean hands lasted two or three years. i have friends who are italians and say it has not ended. it escalated and was able to reach political sectors in
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italy. it created a political vacuum. in brazil, we don't think we face that risk. at the same time until he was going through joining the euro, it created macroeconomic stability. we don't have that and brazil. at the same time, we do have the same factors and features that make brazil's politics dysfunctional and the cost of doing business with brazil high. high tax and logistics, etc. these challenge policymaking. remember the washington consensus in the 1990's.
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when you look at argentina, the pendulum that swings, from the liberal 1990's to ten years later. brazil will follow that same path, but moderately in the middle. the features of brazil's political system, a lot of them make brazil look bad. it is part of the coalition. it is to the right of her. what i am -- i am drawing this big picture because in the bms intricately 1990's we follow credible the tenants of the washington consensus. 10 years they went to the left, a mild version of capitalism. i think now the pendulum is were not looking in artificial simulationi think now the pendulum is shifting back. we're not looking at artificial simulation either brazil is a around brazil is a slow mover. salute different kind of life the challenge for the next government, or even this one, is showing signs of going the direction of opening up more.
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without that, nothing can be done. historically, when you have finance ministers in place in the real thing right here brazil, other ministries and policies tend to follow suit. the top three priorities now are fiscal, fiscal, and fiscal. comments have been made on trade. on opening up. that is the direction. those are the two key issues on the fiscal and the relationship i will will with the private sector. you sector. i think it does create -- on the good side, as i said in my previous answer, it does born in increase the importance will of the united states for brazil's plans to restructure the economy and youto restructure the economy and
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will and you and you will will will join you attract more investments. brazil is part of the coalition, but it is not a zero sum game. brazil has always been reluctant to join the groups. i do think on the one hand, i creates incentives for talks with the u.s. on investments. on the other hand, it creates a near-term. there's not a lot you can do. historically, domestic problems tend to go outside because they face less restrictions. i don't see her doing that. this is an inflection point in the brazilian political landscape. as an inflection point, the question is how steep is the curve?
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the risk of becoming a lame duck is that she will under deliver. that is likely to be the case. there is not a major upside for brazil and the next three years. >> if she becomes a lame duck, and she might be one already, you ask about how people will see this, in terms of the relationship. it is nothing new. the dialogue continues. i think she made the effort to improve the relationship after the brazilian attempt to mediate.
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that was the lowest moment in brazilian diplomatic history. brazil lost a lot of credibility there. i think, among the european nations, there was the sentiment. she did attempt the first effort. finally, she came at a very sad moment in her presidency. the channels are open. there is a lot of corporations in many different areas, including the judiciary. this is important. this is corporation. you need people to people cooperation.
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a lot of the federal prosecutors are people that graduated from american law schools and did their masters degrees here. you know what i think about corporations in the united states and brazil. it is about cooperation between the two largest democracies in this hemisphere. think about that. i don't know what will come of this. there are efforts, although the sensation of crisis is overwhelming. there is cooperation. the climate change conference in
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paris will take place. people are talking about trying to formulate a position. this is not in the news, but it is happening. people are not completely paralyzed and lost in the middle of the crisis. the question -- let me say another thing about the question. the crisis, they change the regulatory framework in order to explore. now, we have legislation in congress. to be in. they are good companies. as i think, the senator who
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proposed this -- other companies are paying an attention. it does not need to be there. the national content in terms of exploration. it is changing as we speak. it is not that the system is done. they are finally on this idea of the international context of this crisis. president dilma said the other day that the crisis that is happening in brazil is really not dilma's fault. in 2009, after the crisis that was a creation of this country, that the global economy suffered for a well.
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we did not think it would affect brazil. we were the last country to go into recession and the first to get out of it will stop remember that? the arguments that say the national crisis -- the international crisis will cause the brazilian crisis is weird. it is back. at the center of the crisis there is the united states. we have a free leader in brazil. they are trying to sell in brazil the idea that there is this enormous conspiracy that the crisis in brazil was something generated somewhere else.
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and that the chinese and russians and americans are really after to take us down. i don't think that's the public in brazil is changing. i don't think you can sell that story. i can direct you to a few places in brazil for that story would be very well received. probably at the rallies there tomorrow. have some friends that truly believe the origin is outside of brazil. we are very good and don't do anything wrong there. it has been tried before.
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the inaugural speech actually said, we have to beware of the external enemies. did you see any repercussions from that? i mentioned to you before the 400 plus people are all brazilians. maybe, if there is something between china, russia, and the united states than our problems are solved. then we don't have to worry anymore. >> peter, do you have anything to say? >> get back to the crisis. in other words, brazil was becoming very important internationally, regionally, economically.
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on all three accounts for the united states it is far less important today. its international influence, regional influence, importance is down to what happens internally. not what it does externally. that includes opening to the external. >> it seems to me that brazil will take up less time and interest in the public and private spheres in the united states. second, the question regarding the economics. this is economic turmoil for brazil. brazil will lose 2% of its gdp this year. it will lose 5.5% in 2016. mexico lost 7% after the crisis in 2008-2009. argentina lost almost 15% of its
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income during the crises. this is not one of those deep, huge crises. this is a very difficult, sluggish. that has been compounded. it is not a cataclysmic crisis. brazil has recovered from much worse in the past. they will get the economy back in order. the question is the governance issue. at the risk of having dilma in power is just one of those big uncertainties. it will be hard for her to regain power, i think for both the transition to another government, or keeping the seat will be the extent to which the
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political leadership, what ever we mean by that, begins to come to some sort of consensus. there begins to be more of a sense that now is the time for all good men and women to come to the aid of the country. some of these conflicts, over ambition -- begin to see what is better for the future. >> dilma said that to the country? >> no. i said this is what has to happen. the leadership or the parties have to find some consensus to move out of this. that would be the best, whether it is a transition. so far, we have not really see that. >> give time for a few more
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questions. thomas? and a couple in the back. >> i am from george washington university. i would like to challenge the notion that there is all this uncertainty. there is a problem with liquidity. we don't know what is the menu for governmant's decisions for the issue of the economy. i agree with peter. brazil has recovered very well. the problem brazil has right now is that the economy, in the past 10-15 years is based on commodity. what do we have to expect first for the world economy to recover, particularly china? now that oil is down and the world demand for commodities is not there, what is the government doing in terms of
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changing the commodities model? that is part of the puzzle because otherwise, expectations carry uncertainty. we do not have a political solution for that. there is a mixing of problems there that really is not very clear. we know what the fiscal problem is, but what is the economic problem. is the commodity dependence going to continue. or is there a political way to change the elements? >> behind you. you have been very patient. >> i am with the american health world organization. on the very important point of cooperation over like to say there is a sector, and executive branch that has a veritable program in place.
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it is working. it is ackley designed -- it is exactly designed to follow. it will be published in 2013, where the biggest challenge was sustaining basic health care. this has been accomplished with more and more national support. there is a proportion of doctors. they create sustainability. my point here is, how do we protect something that is working, that has expanding access? we have learned from the ebola crisis, there is no escaping from building brazilian health systems. it has been built for 27 years and has continued to develop
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with a very good program. >> thank you for that contribution. yes, sir. >> jeff from the times. what are his plans and prospects? >> josé? >> this economic recession, how will it affect other latin american countries. the size of many latin american countries, one has to wonder? >> in the back. wait for the microphone please. >> i first became a brazil
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expert when i was writing telegrams. i have worked on brazil ever since. going back to what was said about the constitutional structure fiscal imbalance, the same constitution also created a public prosecutors office on steroids, creating the autonomy which is the fourth autonomous branch of the government. it has revealed all of these scandals now. there's nothing the executive branch could do to stop it if they wanted to under the constitution. so my question is a structural one.
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you who are all experts on brazil, what do you think jessica is an argument that can be made that the strength of the republic of brazil is good for brazil and the long-term. actually is a strengthening factor for the consolidation and continuation of a good democracy, but it has created the current prices. if the executive branch were in charge like the united states, none of this would've been revealed, because the executive branch would've shut it down. i would like to know what if you made the comparison with other latin american countries? i would like to discuss whether or not this prosecutors office is in fact a very important
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positive in brazil? or is it a factor that is harmful to the economy because of its effect on the private sector? likes michael? >> -- >> michael? >> i will let one protester being interviewed does not speak for 100 billion plus people, but this protester did tell the journalist it is time to bring back the military. how secure is brazilian -- >> 100% secure. >> you had a question? [speaking spanish]
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>> thank you very much. why don't we go back. peter, why don't you start? and then we'll go to paolo. mr. hakim: he's asking us to get
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organized. on the commodities issue, what i am beginning to hear is a commodity cycle is not important in brazil as it is made out to be. the question is whether this was going to be a consumer-led economy. they were driving this. the estimates -- the world bank and the imf -- commodities did not play as huge a role in brazil as they have in other countries. if there is going to be a change, i suspect it is not going to come from the government. it is going to come from investors. the government has to let them invest, so to make the environment more friendly.
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i'm not sure the commodity is the central feature. regarding whether prosecutors are a plus or minus, there is no doubt they would be a plus if the rest of the system were working, that's for sure. one has to say better to have one break in place that is there, while the others are being reconfigured, then it is to have all of them working badly together. i would give it a plus, that it is good to have this certainly at this point.
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the judge that is at the center of this, that is a hero for the people on the streets. what probably be elected a president if there was an open election at this point. a lot of brazilians think it is a good thing. on the health, that's beyond -- i agree, health is important. paraguay, small countries get treated differently than bigger countries. you must know that by now. [laughter] if they impeach the president of brazil, i think paolo is probably right, the military is not coming back in latin america as i can see. even in the honduras, the military was not able to take charge, far less than brazil.
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>> peter, can you comment on the question of the regional applications of this? mr. hakim: i'm so uncertain what is going to happen in brazil, it is hard to. heavily invested throughout latin america, including building. so if they were to go bankrupt which is not impossible, if they were to run into an impossibility of operating and unable to get any more government contracts, which is probable, this is going to affect projects in many countries. they are only one of many construction companies. this is one of the many investments brazil has in many other countries.
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this is why they were able to fund autobrecht. building infrastructure, ports, etc. >> especially now that the united states with a delay comes to normalize relations with cuba. other countries will remain there. they feel someone will buy those things. you know, -- about a good program, very positive of the cuban, to which i say if brazilian doctors are not going to go and serve the people of brazil where we need service, i want to cuban, russian, chinese, nepalese, i want all the doctors as long as they cure the people.
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the problem is now the money has started to roll down. there have been reports about some, including a cuban doctor, that became the poster boy of the whole ram -- poster boy of the program. do not think lowly of the military. they are sensible people. they are not interested in doing any other thing than serving the country. they do the job which is guarding the country. he will not participate in a coup. they should put that question to rest. there is not going to be a coup d'état in brazil. on the prosecutors, i agree with peter. democracies change slowly. i have been hearing because of the unpopular president in the united states -- they say big changes are made of small changes. when small changes happen, brazil didn't start recently, it happened before. -- i think the dangers that
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politicians run into brazil, they try to do these proverbial pizza, to take authority away from the federal prosecutors's office. to undermine judges that are doing the similar work. that, i think, is could lead to explosion. don't touch that. that is achieving a level of sacredness in brazil. that's the part that people feel proud about. it is going to continue to reform. on the other thing, the question, i like this, to take -- to think about the problem of the brazil economy. low innovation. the largest coffee producer in the world.
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d no one valadez? -- do you know one valadez? do you know espresso? that is swiss. because we are a commodity country. we cannot sell that we love so much. this is one example. when we put our minds to do those things, [indiscernible] we have the solutions. the solutions are all in brazil. the result of a lot of cooperation. as a result of a program operation between the air force in brazil. we know what the problems are.
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. i don't think brazil has an alternative. when i look to young people in brazil i don't think they will accept solutions that will be the business as usual. the other day i read something, brian winter about brazil going back to the old ways. i disagree with that. brazil is not going back to the old ways. i think the president from the news, he continues to be an excellent politician. he is under federal investigations. do you know he was thinking about the president nominating
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him for the cabinet. because that would give him full of privilege. in case he would be protected from the prosecutor of the regular folk in brazil. i think the president thinks about that. i feel very saddened that the president as popular as him, now you see him in prison -- it is very sad. now he is in the situation. i think this is he going to come back? i think there is no chance of that happening.
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i would not go as far, but i think the chances of that happening are slim right now. there is also something that happens in brazilian politics, biology. biology happens. it continues to happen. the region -- the reason a new generation politicians are coming, five years ago we didn't know who surgeon moto was. there are new politicians. people who are looking at the situation and analyzing if they want to jump into the system. brazil is unraveling and completely dysfunctional. there's a lot of uncertainty. stay tuned. don't bet against brazil.
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>> we will get a final word. >> quickly on the economy, i think peter made an interesting point. i think that commodities were important driver that lead to complacency from the government's point of view. now we are not talking about commodities -- commodity prices are still relatively high compared to where they were 15 years ago. we're not going back.
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it is not a repeat of the 80's. i think a key driver for growth would be the middle class. hopefully it continues to be middle-class. middle-class once better -- middle-class wants better expenses. that is driving politics more and more. that is going to drive the economy more. there is a lag affect there. it is a matter where it comes from, but they need better
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services. i've said this before, it is not a matter of having access to goods. there are 250 million -- it is a matter of having access to phones that actually work. the debate shifts from the good to the services that make those goods useful. that is going to be a key driver for economic growth going forward. that leads to unaccompanied desperately still in opening up. i don't think constitution is a bad thing of course. there were some excesses in some sense. in hindsight, the country came out after 20 years of dictatorship. i don't think this is another corruption scandal. i think there are lessons learned.
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there is institutional progress in brazil. this time around you have plea bargain deals. there is an anticorruption law. there is an evolution there. the corrupt become more creative once oversight becomes stronger. i think there is room for you to rebound, brazil's institutional structure. at least with these entitlements. to finalize, looking at brazil in the next 20 years, the server lining -- the silver lining, the reactions when crisis deepens, the reactions -- it is to be slow, but it tends to happen. we've seen that with the rialto land. we are starting to see that
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again. we might complain that it is not a very linear process. but it is in that direction. that is the silver lining. major political forces in brazil have made -- none of them are calling for more radical policies. depending on what kind of angle you have is the one we have right now. >> brazilian auditions are practical people. the second thing, you mentioned i made a note of it. you said that then you corrected later and said things that they revealed.
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what caused the crisis in brazil were crimes committed against public interest. that was the cause. what they did was to reveal that to the public. that's what should date -- that's what they should have done. i think it is very good they did it. it is very sad to see all of this happened. i think this is all positive. we are going to learn the lessons and come out all right. >> brazil may be hard to predict, but it is easy to predict the quality of analysis from peter, paolo. i want to take all of them and i want to think you for coming up this morning. it is not always upbeat, but there are encouraging positive things as well. stay tuned. we will have more coming on brazil and other issues. thank you, enjoy the rest of your august.
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thanks for coming. [applause] [captions copyright national cable satellite corp. 2015] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >> tour across the nation to people and places. today we had to close, georgia to hear about the history of the city from the first prehistoric at the as well as a look civil war. let us today at six here on c-span. later, more road to the white house coverage with ferocity bernie sanders who is running for the democratic nomination t.r president i
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we will follow that with your calls, questions. senator king cruise community that are scheduled. this weekend, on the c-span networks, politics, books, and american history. on c-span, saturday, live coverage of the ohio state fair continues t. we hear from chris christie and bobby jindal. scott walker holds a town meeting in new hampshire. then we're alive the mississippi book festival, beginning at 11:30 a.m. the literary lives of harper lee
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and eudora welty, and sunday criticalt 10:00 a.m., thoughts on the administration's relationship with the land -- with millennials, . the preservation or your cultural, political, and architectural landmarks in the city. administrative provisions administration to help improve relations between the police of the community in washington dc after the 1968 martin luther king assassination at some riot -- and subsequent riots. this week on first ladies, enfluence individual wh learn about: and edith wilson.
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a half servingd as first lady, she felt gravely ill and passed away. president woodrow wilson married, and he suffers from a stroke when making her primary role as his companion, and guardian. she became the first first lady to travel to europe. firstnd edith wilson, ladies, influence and image. privateg the public and lives of the women who fill the position of first lady and their influence on the presidency. from more washington to michelle obama, sundays at 8 p.m. eastern. more road to the white house coverage and i will order republican senator marco rubio who laid down his view on economic policy yesterday at an appearance before the detroit economic club. this is 40 minutes.
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[applause] where's my water here? thank you very much. i am on it to be here. it is great to be here at the detroit economic club. i cannot think of a better place to discuss the challenges and opportunities for our nation. i cannot think of a better place than to try to do it. i don't think any city understands the vision better than detroit. no city understands the height of attainable through the american dream better than detroit. no city understands the pain of losing the dream and the importance of restoring it better than detroit. that's why this city, truly the heart of the old economy, is the perfect place to discuss how we
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can embrace a new american economy, one even grander and richer in opportunity and chances than ever before. so let's begin by looking back to the year 1896, when in a small workshop on the mac avenue which is less than 10 miles from here. a man constructed "pile of scrap iron." seven years later, this man henry ford founded the ford motor company and the pile of scrap iron became the first affordable automobile which would put the world on wheels and alter the nature of work and life. what ended up making the story remarkable was not one outstanding genius or one
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company. it was how the entire economy took an invention and turned it into an engine for prosperity. the affordable automobile do not just do not create a business. it created thousands of businesses. it brought opportunity that was able to reach more people than ever before. entire generations would pass without seeing -- the pace of human progress changed during the industrial revolution. it has accelerated ever since. the ford motor company was not the clear winner for the most transformative development for the year. it was two brothers from kitty hawk, not kill and a, who also -- kitty hawk, north carolina, who also had a break through that year. here we stand more than a century later. the economic changes still accelerating. when my first child was born
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after the turn of this new century, there was no such thing as facebook or youtube or an iphone. in fact, only 40% of the entire country was on the internet. just 15 years later, my children can access the world's knowledge from the supercomputers in their pocket. they can also access the game minecraft which i have not figured out. [laughter] they live in a -- they live in an economy where amazon does not own a single store. the largest trepidation company, uber, it does not own a vehicle's. the largest accommodation providers, airbnb, does not own a siegel hotel. -- does not own a single hotel. it is not built on a single change, but on change itself. on the fact that transit --
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numerous innovations -- more will be on the way in the next five years. these advances in technology is replacing jobs with new ones. and it has turned our economy from a national one to an international one. detroit needs a lesson in this. globalization has upended the auto industry. cars are now basically computers on wheels. this city must compete with many others to design the best products at the best prices. this transition has not been easy here at for many years, the power of these impacting detroit has made it harder. regulations were crippling. crony capitalism was rancid. the result were inefficiency and a lag in timing. opportunity for the people of detroit vomited. -- detroit plummeted. washington is leading the nation -- while america's economy is built on change, it is
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controlled by the federal government which is resistant to change. others are adapting to the economy, while washington is holding onto the old economy. as a result, america is no longer the best place for the henry ford's of today to create the businesses of tomorrow. while innovations keep trans forming our world, our economy is struggling to translate them into opportunity for our people. so that makes this election a generational choice about what we do next. hillary clinton believes the way to win the race is to drive in reverse. to revert back to more regulations, higher taxes, bigger government. i believe the way forward is to embrace the future. modernize our government. i believe we will once again make america the best place to create jobs.
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if we empower americans to fill those jobs, then our generation will embrace the american economy. that will lay the foundation for a new american century. today, detroit is an example of what can happen under probe business leadership. other governor snyder, corporate drive -- orbit taxes have dropped significantly. thanks to numerous progrowth reforms, michigan now has one of the best entrepreneurial environments in the country. as a result, innovation is surging. jobs are returning. lights are back on and buildings that were once vacant. while it is true, the city received help from check -- received help from taxpayers, -- a reformed economy. not a bailout. many of the business leaders in this room can attest, one of the
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biggest obstacles between detroit and its future continues to be washington, dc. until washington learns what the city has already learned, our entire nation will be held back from a new economy. that is why if i am fortunate enough to be president, my agenda will be -- our reforms will be based on addressing the modern challenges our people face in their lives. today, i thank you for this opportunity, because i would like to describe to you my agenda. how it would play out in the lives of two hypothetical people from detroit. a small business owner operating a auto bill -- operating an automobile shop, and a young woman working at the front desk. as we see, the challenges we face is a result of washington's
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failings. let's call our business owner david. he owns a franchise of a national automotive repair company. he has 10 employees. in the past, david never considered himself a political person. he never thought his life was impacted much by what was happening in washington. lately, his costs have been soaring. when he looked at his books, it was clear why. first, the cost of equipment. outdated trade restrictions are preventing his franchise from finding products that are at a competitive price. washington continues to tax what he invests in modernizing his equipment, despite the fact that our economy needs businesses like david's to integrate new technology. next comes labor costs. it is getting harder -- is
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getting harder for david -- one is the rising cost of health care under obamacare. it cost the average business $15,000 a year. in addition, the president has mandated overtime pay to millions of salaried workers, including several of david's employees. a top of that, david is struggling behind his mechanic who understands how cars are changing. he needs them to have certification and the ability to work with new technology. then there is his receptionist, david has been her boss for five years. he cares about her. he is proud that he pays her $9.50 an hour which is more than minimum wage. he knows that is not enough for her to provide financial security. it bothers him to hear hillary clinton on about how cruel business leaders can be with their low wages. he knows the minimum wage or to jump to $15 an hour, he would have to cut danielle's job. he is talking about shifting her to a part-time position which would save him a significant
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amount under obamacare. he knows his customers prefers the personalized service danielle brings. the next expense yes to consider is complying. there are strict rules on anything from how he disposes of rags to how he applies touchup paint to cars. some of these regulations he understands. some of them seem unnecessary. he has had to hire a lawyer to make sure he does not violate these regulations. washington agencies are threatening him in other ways. they are on the verge of declaring he cannot even own his own business. he is a joint employer. the likely impact is that fewer franchises will open. costs will increase for existing ones like his. all of these calls palin comparison to what comes next. if there is one thing threatening to force them out of business is his taxes. washington takes one out of every three dollars that he earns. by the time he factors in state
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and local taxes, he pays about 40% of everything he makes to taxes. this makes it unlikely that he will be able to grow his business or give anyone raises. if he did, the government would reward him by taking half of what he earns. by the time he counts for all these calls, david is lucky if he has anything to spend on advertising or facility improvement. it seems inevitable that he will have to hike prices or lay off workers. with all of this, is it any wonder that so many americans feel like giving up on the dream of owning a business? is it any surprise that for the first time in 35 years, we have more businesses dying than starting? a progrowth agenda will not just helped david, it will also help his employees, including danielle. danielle like so many young women was abandoned by the father of her children. left to raise her two kids alone did she moved into a small
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apartment that's a small apartment in detroit. she works 40 hours a week at $9.50 an hour. after rent, her biggest expense is childcare. it costs about $350 a month. that is on the low end for cities like detroit. next comes or gas analyst bill which are usually about 100 dollars combined. the interpretation cause. detroit has a sprawling job market. meaning danielle has to drive 25 minutes to get to work and 25 minutes to get back. gas is $100 a month. her car payment is $200 a month. insurance could cost several hundred dollars in detroit. it is easy to see where this is going. at the time she factors in food and clothing and all the other costs of raising children,
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danielle's wage at the auto repair shop is not enough to keep her out of that or off of government assistance. to find yourself on the is of poverty and slipping over. -- she finds herself on the edge of poverty and slipping over. she dreams of advancing to a better paying position. she has david what it would take to get hired as a mechanic? which would more than double her pay. for that to happen, she would have to go to school on nights and weekends and it will cost thousands of dollars and time away from work and family shared she can't afford that. like all parents, she dreams that her children's lives will be better than her own. she tells them that they can be anything they want. she understands what they are up against. she knows she will have no choice but to send them to a struggling public school. she knows she will not be of to save for their college education. all of his leaves danielle feeling hopeless. she like millions feel as if the american dream, the idea that a person can go as far as their work can take them, they feel like it doesn't exist anymore or it doesn't apply to people like her. the challenges facing david and danielle r, across this country. while their names might be
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fiction, their stories are too real. you know these people. so do i. people like david and daniel have no lobbyist and washington. both parties have let them down. history is going to judge us by what we do next. if we continue to cling to an outdated tax codes, a failing -- numerous policies that make it harder for businesses to grow and opportunities to flourish. we will be the first generation in our history to pass a weaker america on to our children.
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if we embrace the american economy, we will put david and danielle in control of their own destiny. we will put them within reach of their american dream. as president, i will begin by overhauling our tax codes. overhauling it to make it progrowth and profamily, because it is neither. america will never be the global leader in the century if we continue to have -- to have the
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highest corporate tax rate. michigan will lose $11.7 billion in gdp over the long term if nothing changes. my tax plan will begin by cutting the corporate rate to be competitive with the average of 25% for developed nations. it will cut the top tax rate for small businesses like david's. this would save him around 50%. he can use that increase -- save him around 15%. he can use that increase. next, my tax plan would help business owners like david at that his this is to the new economy -- david adapt his business to the new economy. this will lower his tax burden
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and encourage all this is owners to invest in new technology that will keep our economy on the cutting-edge. the nonpartisan tax foundation found my plan would grow the economy by 15%. it would grow wages by 12.5%. it would create 2.7 million new full-time jobs. this helps everyone. an increase in daniel's wages would amount to $205,000 a year. the profamily side would help danielle even more. right now she gets a $1000 tax credit for each of her two kids. this doesn't come close to meeting the cost she faces as a parent. it fails to recognize the investment she is making in america's teacher as a mother. my tax plan would raise her per child tax credit to as much as $2500, allowing danielle to keep more of our money.
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i would change the way she receives assistance. instead of getting the earned income tax credit at the end of year, she would receive a wage enhancement credit. this would reward and encourage hard work and amount to about $500 more per year to danielle may choose to get married. the current taxco would punish her for making that decision. my tax plan would remove this penalty. nothing has the ability to prove her children's future more than the chance to be raised in a loving two-parent home. to help them to grow his business, we need to limit regulations. complying with regulations have cost our economy. washington as more rules every week. last week, regulators published $205 million of regulatory costs.
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i would stop it by instituting a regulatory budget that limits the costs of each agency's rules and what they can impose. wherever to stop unelected bureaucrats from organizing the economy with a stroke of the pen. like the national labor board has threatened. it is a risk to every single one of the 216 michigan jobs. we will lower the cost for businesses by embracing the global economy. trade is vital for the automotive industry. increasingly, every industry and our economy as well. in michigan, trade accounts for 1.2 million jobs. it could account for even more. as a president, i will look for new opportunities to expand free trade.
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for new opportunities for us to open up our products in more markets than ever. it is more important than ever that we finalize the transpacific partnership. our growing economy and a profamily tax codes would ease danielle's burdens. to transform her life, just to be able to get a higher paying job. higher education is no longer an option. not in this new america. it is a crucial pathway to the american dream. for most of our people. for danielle to become a mechanic, she will need to to five years of formal training under the existing system.
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to bring this within her reach, i will overhaul our outdated education system. i will change how she received her training. how much it costs. and how her payments are determined. hillary clinton came up with a plan. here is what it is. to raise taxes and throw $350 billion at a current broken education system without doing a single thing to fix its underlying problems. this is lazy leadership. i will do the hard work to modernize our system. i will expose higher education
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to competition which will prompt a revolution driven by the needs of students like danielle. i will do so by establishing a new accreditation process that welcomes low-cost, innovative providers. i will also help danielle find more affordable routes. for example, we will expand a apprenticeship programs. empowering danielle will change your life. we also need to empower her to empower her own children. if danielle had four children -- had more money, she would be up to send her kids to any school she wanted. she should have that right regardless of her income. when i am president, she will. i have proposed a tax credit that encourages private contributions to scholarship granting organizations which in turn distributes scholarships to children in need like hers. these reforms and many more would lay the foundation of a new american century. it would only be the beginning. i would lead congress to save social security and medicare for seniors.
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without changing them for current seniors like my mother. i would modernize our immigration system to make it a skill and merit-based one rather than a family-based one. i will protect the global economy through a foreign policy that reestablishes american strength around the world. none of these changes are going to be easy, but meaningful change never is. detroit knows better than most. this city was not built by managers. it was not built by bureaucrats. this city was built by visionaries, by people who refused to accept the old way of doing things. refuse to be bound by the restraints of the past. henry ford once said "if i had asked people what they want, they would've said faster horses." our government is led by people who would rather tweak the current system then revolutionize how we do things. they pump more money into the education system of the 1900s. thinking it will prepare our people for success. they rely on the programs of the 1930's without saving them. they expand the safety net programs of the 1950's, hoping they will help the struggling
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escape their circumstances. they want to raise taxes like they did in the 1990's, thinking it will increase opportunity. the result of this outdated approach is all around us. the insecurity of our people's lives, the challenges raising americans like david and danielle. the concerns about the future we are leaving for our own children. a decade from now, all four of my children will be adults. i for one do not want to have to explain why the america our parents loved was the greatest nation on earth, but the one where leaving them is not. let me close by saying something i say everywhere. america does not go me anything. i have a debt to america i will never repaired. -- i will never repay. this is not just a nature -- this is not just a nation i was born in. when my father was nine years old, my -- nine years old, his mother died. he would work for the next seven years of his life. when he was young, my father had
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dreams. those dreams became impossible. here in america, his children's future became the purpose of his life. for years, my father worked as a bartender in a room just like this. on nights, weekends, holidays. on days i'm sure he didn't want to, he worked. he worked, because he wanted all the things that were not possible for him to be possible for us. my father stood behind a portable bar in a room like this. so one day i could stand in front of the room like this. that room from -- the journey from behind that bar to behind this microphone for me is the essence of the american dream. that's not just my story, this is our story. we are all just a generation removed from someone who made
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our purpose decimate our future the purpose of their life. now it is our turn. now it is our turn to leave for our children what our parents left for us. it drives it for the better. we have to rise to the task of our time. if we adapt to the future, we can expand the american dream to reach more people and change more lives than ever before. you and i and this generation can write the greatest chapter, in the most amazing story of america. you and i are blessed. we live in the most exciting era of human history. if we look yesterday, we are going to be left behind by tomorrow. if we elect a leader from yesterday, the best we can hope for our faster horses.
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if we embrace the new american economy,, smits that our people will make -- if we embrace the new american economy, the advancements that our people will astonish the people of the world. thank you. i appreciate it much. [applause] >> senator, your remarks have generated a lot of questions. some via the internet. some on our blue card. we're going to try to mix those. the question that has received the most interest via the internet is how do you feel about the highlight the political aggression on minority specifically black and african americans. mr. rubio: this is a legitimate
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issue. i believe they are pursuing a counterproductive way. we have a percentage of our population who feel they are being left behind by opportunity, by the american dream, by our country as a whole. we cannot ignore it. many communities, the relationship between minority communities and the law-enforcement agencies are terrible. i've said this before. this is a legitimate issue. i know someone, a young afghan american male who happens to be a police officer -- a young african-american male who happens to be a police officer, who was stopped several times last year. you sent me eight times for no reason i would be upset and so would you. this doesn't happen everywhere. we cannot ignore that. we cannot ignore that this country has a legacy of racial dissemination. 50 years ago it was still legal to discriminate against someone because of the color of their skin. this does not go away overnight. you can change loss, but the
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impact still remains. this is an issue. we need to confront it as a nation. i don't know what law i can pass. our society better adjust this issue, because we cannot succeed as a country if a significant portion of our country feel locked out from the promise. we have to address. a lot of that involves government action. i hope we take that seriously. i am proud that in the florida legislation we did adjust it. we instituted that program in the inner city of miami. it has spread to orlando and jacksonville. it is not a solution for everyone. it creates a geographic zone that says in this area, nobody will fail. from this point forward all of our children will succeed. we expect from them what we expect from children everywhere.
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it works. we created a commission to study black men and boys. we concerned and south florida desk in the chances of them going to jail was higher than them going to college. among those young men could be the person who cures pancreatic cancer, or the first man or woman to walk on mars. these are important issues for us to prioritize. we cannot be a great nation when a significant percentage of our nation feels locked out. >> another question is what lessons do you take from the strong support of nonestablishment and it's like -- candidates like donald trump?
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or ben carson? mr. rubio: people are upset and angry. we can use this anger to motivate us, but we cannot let this anger to find us. this is not an angry nation. this is always been a hopeful nation. how can we be greater. this is a nation of perpetual improvement. we have challenges. we have to confront them. we should have a sense of urgency about it. we can't let anger to find us as a people. we are not an angry people. we are a hopeful people. we are a great country. some say we are going to make -- america great again. america is great. this is a great country. the issue is we could be greater. this nation could be greater than it has ever been. as i said, given the
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opportunity, we will astonish the world. i know this is going to happen. i want to get started. the longer we wait, the more people we are going to leave behind. >> coming from the cards, how do you view what edward snowden has done and what should be the punishment? mr. rubio: edward snowden is a traitor. if he believes there was abuses, there was a system in place. if the desk the system did not involve going to russia and china -- the system did not involve going to russia and china and giving up our secrets. there are many women all over the world who are in danger because of what he has done. i believe if we catch a single member of our government violating our program, we should indict him, convict them and put
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them in jail. we must know more about our adversaries than what we know -- them what they know about us. some of the things he says is flat out lies. he should subject himself to american justice and service time in jail for being a traitor. [applause] >> how do you plan to take on isis? with their organizational the -- organization very much on the mr. rubio: isis is not just -- and iraq. they have a presence in libya. they will conduct attacks on europe. they have a growing presence in afghanistan. given the upheaval in the taliban cost leadership, isis is
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looking to knock them off. they are a radical sunni movement. they must be defeated by sunni themselves. it is the sunnis themselves the -- who must reject that radicalism. in the short term, i think it would take more american action. i think we need to cut off their funding and all of the propaganda they're getting by subjecting them to humiliating defeats. captured their leadership, videotaped them and put them online for the world to see that these guys are not invisible. -- invincible. ultimately, they are going to have to be defeated on the ground by local forces. it may involve egyptians, jordanians. there are christian communities in iraq that have been driven from their homeland. they have to be up to defend themselves and their family. they are at the mercy of others defending them.
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that is not very there. we should allow local forces to defeat them. we must support them with air support, logistical support sharing intelligence with them. , only america can convene this sort of collective action. no other nation on earth can. isis can be defeated but not without american leadership. we will if i am president. >> where you stand on the iran deal? mr. rubio: it is a very good deal for iran but bad for the rest of the world. understand what we are dealing with. iran is not belgium, the netherlands. iran is led by a shia cleric who has an approximate -- who has an apocalyptic vision of the future. it ends up with the whole world ending up under their version of islam. when someone likes that -- was someone like that ends up with a nuclear weapon, we should be concerned.
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here's the only way we can keep that from happening, economic sections that say to them we will devastate your economy. the credible threat of military force that says if you try to build a weapon, we will attack you. this is the only link which they -- language which they understand. it is the only thing that will work. what we have said is we will be nice you in hopes that you will be nice back. we will allow you to have billions of dollars of section relief. -- sanctioned relief. from -- going to get rid of centrifuges and replace from 2015centrifuges and 2016. they will have an industrial rate system and they promise not to cheat they will do their own
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inspections, thank you and will have to listen to them and see if they are following the law. this deal goes in, nothing in the, iran will have clear within in less than 10 years. north korea has in the their weapons program. why can't we attack the nuclear program in north korea? if we attack their program, they will attack seoul, tokyo and hawaii. they can do that now. if iran reaches that capability we are in a dangerous world. the world will know that if you try to build a weapon you will face military force. i don't support it as a first option given the choice between a nuclear iran and a military force i will take military force every time. [applause]
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>> we have had a number of questions on cuba and president obama's recent changes there. this question says as future president would you reverse all of president obama's cuban changes or would you be selective? sen. rubio: i would change them all and less cuba changes, too. i am not her one-sided deals and that is what this is. let's understand that cuba is not some cold war harmless relic. they are anti-american communist dictatorship. today it houses dozens of fugitives of american justice including the murderer of a police officer in the 1970's who they have harbored for 30 years. it also harbors dozens of people who stole your money. medicare fraudsters who stole money from you and our living high on the hog.
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they also seized 7 billion dollars of american private property including the hotel that john kerry toward the other day. a hotel stolen from the intercontinental hotel company. second today they host intelligence facilities. they host a chinese listening station which the chinese used to spy on central command, southern command, special operations command and russia. -- and nasa. the cuban sponsored terrorism even though we remove them from the list of sponsors of terrorism. 1.5 years ago they were caught shipping weapons to north korea in violation of human sanctions. -- you and sanctions. despite all of this, the united states under this president has opened up a deal of more trade travel and remittances and -- and in exchange what are they giving? they have changed nothing.
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since the deal was signed in december they have arrested 3000 additional people. last weekend and the weekend before they rather up and beat -- rounded up and beat and arrested over 90 dissidents. they haven't been shy about this at all. if you ever have the unique opportunity to listen to anything official from the cuban government here is their characterization of this deal -- we won and you lost. we've taken all of the concessions we asked for and are giving nothing in return. nothing is changing. in fact they are now demanding that we pay them reparations for the embargo and that we turn over guantanamo. i guess other than all of that it is a good deal but i think it is one-sided. i am in favor of changes in policy toward cuba but they must be met with reciprocal changes. if you want more telecommunications you have to open the internet. if you want more trade you have to have more democracy. i don't have a problem with changing policies, but they have to change, too. otherwise, what are we doing? we are legitimizing a dictatorship of tyranny 90 miles from the shore.
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>> lots of questions for you on the politics of the race. one question we have is, how difficult is it for you to be in the race with your friend and former governor jeb bush. sen. rubio: it is not difficult because i am not running against jeb bush, i running for president. we are so many good people and the democrats are struggling to find one. [laughter] [applause] i am not running against, i am running for. i want this to be a country where people can do for their children what my parents did for me. i recognize there are other quality people running who have lived longer than i have, but none of them understand what life is like today for americans better than i do, personally and politically.
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wha i understand there are peope running who have more experience on the issues we faced 15 years ago, but nobody running understands the issues we face today better than i do or has done more work on them. i am running proudly on what i stand for and on the promise that if we do a few important things america will be greater than it has ever been. it has been a lot of fun to be places like here and around the country but i am running for president not against any of my fellow republicans. >> this will have to be our last question as we are just about out of time. we went to thank you again for being here today and sharing your thoughts with us. there have been more questions on paper and the internet about how you as president can help small businesses. your remarks clearly outlined a number of ways but how would you help the small business person
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in america? sen. rubio: small businesses have been deeply impacted by the bigger the government gets. if you're a big corporation you may not like big government but you can hire lawyers and accountants and compliance officers. if you're not your struggling. big government incentivizes big business. only the politically connected can deal with it. the more power the government has the more power the people that influence the government have and that is what has happened in our economy. what are the impediments? their multifaceted. let's start with the individual. if you of $50,000 you cannot start a small business, you need a steady paycheck. that is why we need to deal with student loan debt in america. you deserve to know how much people make when they graduate
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from that school with that degree. you should know that the market for greek philosophers has tightened over the last 2000 years. [laughter] they get into the personal realm of starting a business. the more regulated, the harder to do it because you cannot hire an army of compliance officers. you also need access to capital. the problem is the banks -- a lot of them are gone. the consolidation in the banking sector has really taken a hammer. the ones that used to lend money to the small businessmen and women are gone. we to confront that as well. the tax code is a big impediment. c-corporations. most business activity in america is happening through
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s-corporations or businesses. they pay on a personal rate. that is why i call and giving them equality of no more than 25%. these are all multifaceted but we need to be more pro-innovation and allow more competition in the banking sector. we need to free people from the burden of student loans that is hurting entrepreneurship area the more power we give government the more power you have even the people can afford to influence government. the american people will take care of the rest. we have not run out of great ideas. even as i'm speaking to you now, in detroit, someone in a spare bedroom is drawing on a piece of paper the next great idea and we need to give them a chance to put it into practice. i want this to still be in place we can start a business outside a small bedroom and your home even if it isn't within the zoning code. [laughter]
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thank you very much. [applause] [captions copyright national cable satellite corp. 2014] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] after the town hall meeting he will take your phone calls live on c-span. coverage gets underway at 7 p.m. eastern. next there is a lot to watch on c-span this weekend. coming up, we will be live on c-span at iowa.
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this will be the iowa state fair soapbox. that continues, you can see some guess is there. that includes bobby jindal and governor christie. they will both be there. on c-span2 we will be live at the mississippi book festival. on c-span3 which is american history tv on the weekends, railamerica is on at 4 p.m. eastern. you will see a 1971 short film about a pilot program to a group police-community relations in washington, d.c.. all that is weekend on c-span networks. >> washington journal talked to a two time corporate -- former presidential candidate. steve orbs. -- forbes. joining us from our new york studio is steve forbes.
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we are going to be talking about politics. give us an assessment, your assessment of the race so far. what you have seen is an interest in the race. it is absolutely intense and unprecedented. donald trump stirred things up and that has a lot of interest in the first debate. there is a lot of deep dissatisfaction in this country about where the country is that, where the economy is at. the democratic side with bernie sanders. it has not gotten as much play is the donald trump phenomenon, but you have this senator, socialist out of vermont who is ahead of secretary clinton in new hampshire, moving up fast in the national polls.
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people want big change and they are very unhappy with where we are today. host: mr. forbes, this is a rather indelicate question. what are the drawbacks for a wealthy man running for president? --st: donald trump's mind zero. [laughter] no mattern you run, what your background, when you go in that arena, you are going to expect brickbats. it is like the nfl. it is a contact sport. if you are rich, they are going to say you are out of touch. if you are not, they are going to say you have no achievement. field you arethe getting into. you are doing it voluntarily. if you don't like getting bruises, don't get in the ring. host: you ran for president twice. did you suffer those brickbats? guest: of course. i called it the hazing process of american politics.
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in 1996, when i started to gain traction, there was what you might call the honeymoon period, where the national press was all aw's and then overnight, it turned. nothing you did was right. every day, they found something wrong. with the american people look at in that process, even though they don't do it consciously is can you handle the pressure? the presidency, you are going to get stuff thrown at you you don't anticipate. it comes almost every day. people want to see how you handle the unexpected things when you are in that arena. y discussing the issues that you think are important so far? -- i: in the first debate think it is going to change with the second debate -- i thought that was inadequate discussion of the economy, hardly any mention of the tax code, no
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mention of the federal reserve and our credit markets, and very little discussion of health care . i think that is going to change in the second debate and you will find the participants are much more active and less passive than the first debate. if they don't show well in this debate, they are going to be thrown off the island, in effect. you will see the candidates put forth a lot more specific proposals, get to issues that are very much on people's minds. host: let's put the phone numbers up in case you want to (202) 784-8001, republicans. (202) 748-8000, democrats. (202) 748-8002 independents. get through on the phone lines and still want to make a comment, try twitter. the chairman and editor-in-chief of forbes media
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and ran for president in 1996 and 2000. he has written several books, as well. what if donald trump gets the nomination for your party, mr. forbes? guest: to get the nomination, it is very different from having an early lead in the polls. to get it, you are going to have to show you can unite the party, you are going to have to win a number of primaries. we are still a long way from that. it is still several months before we have the first contest in iowa. to win a nomination in a political party, you have to show you can bring the different parts of the party together. the parties in america are unlike in europe and elsewhere. you have groups of people together who have very different interest from one another. one quick example. in a normal economy, you go to iowa. iowa republicans have much more interest, as a whole, in social issues than economic issues.
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in new hampshire, you find just the opposite. much more interest in economic issues and hardly any interest in social issues as a generality. disparate groups that you have to bring together and show skills in doing that. to get the nomination, it is not enough to have a rise in the polls. you have to demonstrate in the primaries and the caucuses that you can bring the disparate elements of the party together to get the majority of the delegates. host: what is your assessment of carly fiorina? demonstrated, and what they called the kiddie she demonstrated and put in a very impressive performance. as a ceo, you are accustomed to getting brickbats and you are accustomed to a lot of pressure in dealing with different constituencies. nothing like politics.
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i attended a dinner with carly fiorina several's ago -- months ago and people were very impressed with how she comported herself and how she answered the tough questions. it did not surprise me that she did very well in that secondary debate. it is clear that she will be at the adult table so to speak in mid-september. host: have you endorsed and are you going to? guest: no. i'm with a couple of several other people, like art laffer and steve moore, we have been putting together meetings with various people with the particular candidates to discuss specifically changing our horrific tax code, making changes at the federal reserve, economic issues. we agreed when we started to do these events that we would not endorse until after we had an opportunity and people had an opportunity to talk to all of the candidates.
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that process is still unfolding. i don't expect to do anything until at least around christmas time. host: are many of them friends of yours? guest: i've known many of them over the years. some better than others. so, yes, most of them are not strangers. [laughter] host: didi fredericks tweet san, dr. carson is very popular and places second in many polls. what are your thoughts? guest: i think dr. carson's rise and he did well among the republican base in that first debate, i think dr. carson exemplifies the deep dissatisfaction with politics as it is today, with the present people in politics, and that people want a big change. think his great knowledge and quiet demeanor has impressed people. he is someone who has done substantive things in his life -- not just made beaches
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speeches. one of the things that came out of the first debate though the whole focus was on donald trump is that the republican bench, so to speak, is very deep and very strong. you had a lot of impressive people up there. you will get even more an impression on the september 16 debate. that is why the situation in the republican party in particular is so fluid. you have a lot of people who are very plausible. that is why carly fiorina is going up and dr. carson is going up and governor kasich has had a rise. host: let's take some calls. steve forbes is our guest. matt is calling in from new york on our republican line. caller: good morning. good morning, mr. forbes. guest: good morning, matt. caller: what you were saying about the brickbats, the newest brickbats is the term "anchor baby." hillary clinton was first lady years.lary --eight
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the term anchor baby has been used for decades and now it is an offensive term to hillary clinton. position to in the actually say something about it, she didn't. everybody knows what anchor babies are. there are no two ways about it. jeb bush and donald trump are being condemned for saying what the truth is. you know what? it is time for the republicans to start coming to the gunfight with a gun instead of a knife. they started to back in the days of newt gingrich, but now it seems like they are backpedaling and apologizing for telling the truth. what you said is true. i would like to see somebody stand up. i'm not saying i'm a trump fan, but i tell you what, i love his attitude. host: i'm sorry, matt. i thought you were

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