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tv   Cavuto  FOX Business  February 5, 2013 11:00pm-12:00am EST

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making the big romantic gesture. that's powerful. verizon. get a droid razr m by motorola in pink for $49.99. >> so much for a balanced approach, why hunt for a balanced budget and the economy could be about to lose its balance once again. welcome, everybody, i am liz macdonald for neil cavuto. as the president talks up, how to reduce the deficit and avoid spending cuts. we're learning the budget
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deficit will top $845 billion this fiscal year even with massive tax hikes and assuming the spending cuts do kick in. congressman tom price pushing the president to balance the budget and says this new report is proof we can't do that by hiking taxes. what about that? we're still going to be deep into the red. >> good to be with you. the president has put forward for different budgets, none of which have ever come to balance. the house republicans have acted responsibly, our budget is yet to balance, so what we will do is put together a budget that balances in a ten-year time. all it does tomorrow it says to the president tell us when you'ryourbudget balances. it is important to do that
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because we have our principled solutions with the program. liz: used a dozen state when the budget would be balanced, is that it? >> we have had to end dollars deficit of the past four years in the past for budgets by this president have never come into balance ever in the 75 year time frame we talk about budgets. the american people need to know that. it is important the president gets mad because then we could talk about the positive solutions and the programs the president believes don't need to be strengthened or saved or reformed or restructured in order to make it so they are able to apply to the american people. liz: under this white house would not be surprised if viewers felt they are stuck in the rerun of a bad movie but they can't get out of and the issue is the president is now about his legacy, positioning
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himself to be a ronald reagan type performer. he is big hubris, big government spender and the high cost of affordable health care coming in, how does this square with what the president would say. >> tax increase after-tax increase after-taxncrease. the solution is by raising taxes on somebody and you and i both know, your viewers know we increase taxes on the american people in the way it has been done, get decrease economic activity. the economy cannot be vibrant, cannot create jobs and dreams are destroyed when you increase taxes. liz: what you also point out is taxes corrode the sense of self-reliance. the new cbo report that says we will be $845 billion in debt talks about the window. this is what i'm getting at, the st. louis federal reserve said
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it is so unreliable back in 2000 said we would be in surplus, we would wipe out $3.5 trillion deficit. they were utterly wrong at that in the st. louis fed says what is more reliable is the model used on wall street to fix stocks. i am upset about this, it is underpinned regulatory policy, so why rely on the same report year after year that is so off the mark? >> you are spot on. we have tried to make certainly put in place positive reforms for the congressional budget office so we are not hamstrung by the rules they currently operate under. it is not their fault they cannot provide appropriate predictions because we have given them poor rules they must follow. we must get to something dynamic that they can determine whether
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or not if the government does this, how does that affect the economy dynamically? those are the kind of things have tthat have to be able to lt and right now they're proclivity by law. liz: is that it? speaker that is exactly it. it is so crazy they predict the federal government will spend $700 or thereabouts in iraq and afghanistan over the next 10 years and required by law to be able to say that an include that in the budget when in fact all of us that i but it will not bee case. garbage in, garbage out. liz: representative tom price, always good to hear honest, straight talk from a congressman. next up, ceos of the white house again, president obama and business
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leaders discussing the deficit and immigration reform but critics claim the white house will not listen anyway so why all the meetings? the top econic aid and one of my favorite guys, another straight shooter. i want you to react to a sound bite we have. goldman sachs ceo lloyd playing find spoke about the economy, spoke about what we are about to get into. i want reaction to this sound bite. >> a lot of the economic numbers are surprisingly on the high side. some in front of us, i think it is undeniable we are entering a growth phase at this point. liz: do you agree with that? >> my feeling is that is probably true past the next six months, still feels like it has some bumpy patches we have to get through but i do think as we
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arslowly coming out of this downturn there probably are a lot of things to the upside we can start looking to benefit from not the least of which bein crawling out from under the rock of the collapse of the housing market. liz: we are getting out from under. a number of other ceos and chairmen of motorola, paul jacobson who runs will come, the president was meeting with these ceos, immigration reform. does the president in your experience listen to these ceos or more about getting behind him, the president uses them as leverage to push forward his own agenda like he did with tax hikes on the upper bracket. go ahead. >> i think he listens to them particularly on immigration looking at what the president said over the last two or three
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years, he had a number of councils advise him business people and for tourists coming to the u.s. were important for economic growth and immigration was important for a lot of high tech industry and you saw the president position move on some of those and they have done important work in those areas. in this case i am not sure given the collection of high-tech people you'd probably hear a lot about high skilled immigration. broader immigration is defined by more than just what they make. liz: number of people who want immigration, they want a vibrant economy with skilled immigrants and smart immigrants coming in, but that is separate from sealing the border. there is the need to seal the border because you have criminality at the border,
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aren't those two different issues? speaker they are related, but yes, i think they're separate issues and they start to blend together as you get into these issues about how would it work to verify if employees are or are not legal or should that be a burden put on employers and stuff like that, so do think the issues fo the business people he on immigration and the border or related but i do think there are distinct, yes. liz: i hear what you're talking about, he listens to their ideas. listen, the u.s. economy is way more complex than a ge or intel, is it morebout the name of the game you have to be at the table because if you're not, you will be on the menu. >> you have to ask those ceos.
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when they said that it was scheduled for two years, and expired and some people said why did they get rid of it? it was scheduled to go for two years. to your other point, the president was only using these meetings as a way to get business ceos to get up and defend his program, he didn't really get a whole lot of that over the last four years so i don't think you can really say that was the main thing he was doing. the gathering of information and ideas from the jobs council before that from the economic recovery advisory board from a lot of these meetings i think forms policies but not as if the outside groups of people who have important day jobs ought to be replacing the national economic council or the operations of the government. liz: what does the president get done, what is the big-ticket
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item the president has done in second term? what is it? speaker i think you would count immigration as that, and i feel we will get it done. but there's there is a chance n addition to immigration that we actually have some tax reform and we address the longer run budget issues separate from the short run issue is that have to do with the complex. liz: always a pleasure to be with you, thank you for stopping by. really appreciate it. there are one set of cuts on the table. defense, just as in a north korean video shows big american city could be new york city in ruins from the ballistic missile strike. the guy who says this is downright dangerous. gas prices have never been higher. the white house missing a golden opportunity to tap into someing that would bring them lower. it is all around us. find out what that
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liz: gas prices this time of year have never been higher, but instead of more drilling, washington stalling. members are faulty. energy research firm saying washington is lowballing the amount of cash and jobs more drilling here would generate. daniel, can you give us ballpark numbers you're talking about what drilling would add to the u.s. economy in terms of tax revenues and revenues overall? >> you bet. most people are familiar with what is going on in north dakota, down in texas and louisiana and around the country where we are producing private land. government land 96% are basically untouched and what it could mean is in excess of $450 billion per year in gdp growth, and 20 times as much as
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the government is talking the ministrations talking about in terms of increased energy taxes. we have been putting people to work, building infrastructure, it is a win-win-win deal. alalbany does the government to step out of the way and let people go to work. liz: instead of drill, baby, drill, demonstrators are talking about draw, baby, draw. we have the boxer shell, reservoir two times the size of a country of oil. what is that in compass? is it just drilling were all sorts of jobs and gdp growth? tell me what is in there. >> the beauty of this study done by one of t macroeconomic projectors shows the best jobs
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created are not just those in the oilfield, but also high-tech jobs, jobs in medical fields and high specialization and higher education type jobs because it spreads the wealth throughout the country. buying their fuel, we have the largest resource base in the world in north america, all we have to do is be able to get at it. the reason it is happening is because it is happening on nonfederal government land on the government land next door, nothing is happening. liz: california was basical dealt off of a goldrush. do you agree reduction could double every 18 months, does that sound right to you? >> the increase could double.
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it would be tough to push that to doubling but i will tell you this, last year on a private land, distinction between what the governments doing and the private land, increased oil in the united states with the highest it has been since the first oil well was drilled in 1859 in pennsylvania. same thing for natural gas. we are loaded with energy now, we don't have to worry about the scarcity argument anymore. will we let our people go to work, produce the jobs and produce the wealth and all the great things that would make this country great and maybe ev get back to manufacture things as a result of low priced energy, and it would help. liz: you just hit the nail on the head. yes, saudi america is the joke being talked about that america could be surpassing russia for natural gas producer by 2015. what do we have to do to get there?
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>> we need less washington and more states. to get a permit, drilling on federal land. to drill the same well, 10 days. now something is wrong something has to change and that is all washington bureaucracy. part of it is the anti-washington agenda. buwhat people have to do is ask their government to start letting them get after the resources. after all, they belong to them. that would reduce the gas prices at the same time. liz: it is always great to be with you, sir. you're the senior vice president, a pleasure to be with you, thank you for a terrific interview. next up, governor chris christie talking about birthday cakes. it mimight be the president's bt gift this year.
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>> celebrity birthday today, chris christie turns 50. he blew out the candles on his cake and she wished for another cake. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day afr day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] e pill eachmorning. 24 hours. zero heartbur
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>> a billion dollars will be spent on potato chips for super bowl sunday and that is just as governor christie's house. i am getting nervous now. >> no. [laughter] [applauding] liz: he is such a great sport. new jersey governor chris christie poking fun at his own weight last night. on the very same day. howard rosenkranz, delighted to
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have elizabeth with us and if the governor is going to become the president's new poster boy for what's not to do, meaning eating. what use a? >> we all know we have a big obesity problem in the u.s. of a. and chris christie lends himself to that but it is all about the messaging to me. he is coming out ahead here because people want to get at least as far as republicans go. republicans are like everybody else and i think it is one problem that romney had in the past election. he didn't connect with. chris christie brings it back to ground level, very simple it will get the message through that he is actually more like a lot of everybody in america is. liz: is chris christie setting himself up for a likable republican guy you can talk to hanging out at the bar. >> i agree with the fact he came across as very likable.
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i'm glad he did this interview. he plays comedy very well and that is kind of a market the liberal left his cornered over the last couple of years. great to show he can be funny and laugh themselves. liz:.the food police, we know the first lady has been very intent on the issue of obesity especially with kids. mcdonald, the new lifestyle, cannot get over that. saying if i'm the healthiest i have ever seen, his cholesterol is really low and blood sugar is normal. do you believe it? >> absolutely not. he is totally playing to the audience. just before the election he was endorsing obama's handling of sandy. he is all about playing the fat guy. i hope they were krispy kreme
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is. he is there, he wants to bring in the rest of america, playing the tune and doing us all. liz: chris christie got criticized by many in the republican party for settling up next to president obama during hurrane sandy. the white house could basically say you would be a great person out front on the obesity issue. >> he definitely could be, whether he accepts that or not is anybody's guess. it is a total setup, but who doesn't like the fact i he makes fun of himself. you come out with the punchline anyway. you put it out before somebody else does. chris christie, while he did the alignment, he has done amazing things in jersey, taking a tax reform, immigration reform, pounding the table on those types of isss a lot of governors and we won't do across
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the united states to enhance his popularity. >liz: there was talk about he my run, the junk food debate came into the forefront. personally i am struggling with the tictac diets. when chris christie does this, does this bring up all the issues of the problems withunk food in this country and obesity in the country? >> i think he honestly has a great attitude towards a lot of this. he said on letterman last night i laughed at the jokes because i think they're funny. the most successful bipartisan relationship this administration has been able to form is governor christie so i doubt they will do anything to put that into too much jeopardy. >> he is playing it perfectly. whether or not he will be the fat man or the picture down the road or he will have energized a diet, he is positioning himself so beautifully.
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the most important thing at the end of the day is what he is doing. liz: does this get old after a while? seriously there are health issues. he is a great sport, hysterically funny. amazingly funny but after a while people say it ain't so funny. >> it probably gets old when you run out of jokes which happens in a few months, but it just comes down to the way he governs and what is his plan in 2016. i think he is making some real differences and that will go a long way and could get around the whole issue he has. liz: god bless you, governor chris christie is a funny guy. north korea going ballistic putting videos about destroying possibly new york city taking the question can the white house really afford to play war games with defense spending?
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liz: welcome back, it is half-time and no time to cut defense spending because north korea is gearing up for another nuclear test and state run media releasing this youtube video showing missiles hitting new york city set to the tune of michael jackson's "we are the world." we have former cia korea chief
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and retired lieutenant colonel ralph peters who says with dangerous countries like north korea and china acting up on cyber attacks, cutting defense spending could be deadly. first to you, what di do you mae of the video? >> the north koreans read a very rich life. north koreans are belligerent, noisy, they're insecure, they're feeling left behind, not members of the club, in other words they're really bad 13-year-olds yelling "mommy, i hate you." we need to be the adult, responded soberly and deliberately do not fall for that stuff. that doesn't mean they're not a danger, but despite on paper, it is an antiquated if not huge military. the greatest danger to me his miscalculation especially on the
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north korean side, they live on another planet. liz: how could the north koreans miscalculate the u.s.? go ahead. >> they did so because they got away with so many publications in 2010 that once again any provocation to do with it is another nuclear test or an actual attack, washington an wil feel so intimidated we will not have any kind of response out of fear it will escalate to an all-out war in the peninsula. liz: you can almost time for the month when north korea does the rattling like this. we had two big price hikes in the last four years, and north korea making these moves and rattling and the first time
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we had serious disarmament talks, they sat down with big grain importing countries. what do you make of that maybe they're doing this because it has a serious and famine talks for a long time, what do you think? go ahead. >> they have been crumbling for a long time. they have a badly malnourished population. they are very worried, but ultimately i agree exactly with what bruce said. they are beggars who insist on being choosers and we fall for it because we have a humanitarian speak and we're willing to help keep them under the right conditions but unfortunately it just doesn't work because the 13-year-old troubled teenager model, whatever you give them, they want more. liz: how afraid shouldhe.s. be of north korea?
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this is basically one of the worst if not the worst genocidal countries in the world. it has a history of killing its own and by the millions and such a corrupt dictatorship, should we be taking on the offensive and telling the world look at north korea, look at what it is, look at what it is really doing. >> we have to be concerned not only for our own safety, but that of our allies. the military threats, the huge conventional forces threatening south korea, the u.s. bases, and with this successful launch in december, they are now bringing the united states within range if they have a successful nuclear test within days, they're continuing their quest for the ability to threaten the united states with a nuclear warhead so clearly we have to be concerned. liz: china's cyber attack,
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should the united states stand up and say you know what, china, knock it off, enough already, we are day trading partner with y you, we understand our picture with you, but enough with the cyber attacks. should the u.s. get more aggressive on cyber attacks? now our media outlets. go ahead. >> certainly we should get much tougher. money changes everything. even a decade ago when they took down one of our spy planes with the chinese air force force it down, american businesses invested in china making money in china ran to capitol hill and said calm down, calm down, and i am not saying we will have a coherent, firm, unified response to chinese attacks which are much more expensive.
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we won't have a unified response until the businessommunity discovers a grain of patriotism. liz: should the u.s. be getting tougher on china's cyber attacks? go ahead. >> we have to be firm on cyber attacks and really part of a pattern, china has become much more belligerent, much more assertive throughout the region. we now have clash with japan, china is pushing unreasonable sovereignty. the u.s. has to stand up not only for its own interest but those of others. liz: thank you to you both for your time. everything is bigger in texas except your tax bill. how the lone star state is proving how taxing less really works because you get more.
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>> building a business is tough, but i hear building a business in california is near impossible. this is texas governor rick perry and i have a message for california businesses. come check out texas. liz: texas is wide open for business. tempting business away from the highest taxed state in the country to his very low tax state. dominick says his own clients are very worried and worried sick looking for solutions and it looks like the lone star state might have some. religion may have clients who say we are frightened here in new york? >> we deal with a very unique client base. they have a fixed budget, certain amount of income in an annual basis. it is pa how to handle those
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dollars. the question is, is that the wisest use of my money? nine times out of 10, where do you move to? texas, nevada, florida. liz: governor jerry brown is saying i don't like what governor perry is doing, using some tricks here. he has it all wrong. california, we have great weather, venture capital, an educated workforce. don't go to texas, come to california. >> they also have a state income tax, highest in the country, they have a corporate income tax, the highest gas taxes in the country, our clients are going desert looking to move. california is a great place and if you can afford to be there, it is a wonderful place to live but that is becoming less and less true for the average citizen. they need to find a lower-cost
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place to go and unfortunately texas ranks as number one business state in the country year after year. liz: nols texas has? aggressive laws that stop frivolous lawsuits and doctors love it. >> consistently ranked number one or number two in the country for tort reform. the ability to sue, corporations money have to put aside for litigation, lawsuits. liz: the governor has put through laws to stop frivolous lawsuits. >> they want to be their own country. they can protect themselves because the state laws are very strict regarding lawsuits. the state creates an environment where they have some of the best job growth of any state in the country. liz: this is about how texas runs its biness as a state.
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texas meets every other year. >> the fewest amount of days they work of a legislatur any ln the country. i think it would be a blueprint for washington here. lower taxes, lower legal costs for corporations, lower tax rates, create a friendly environment and job growth is amazing. liz: we have all sorts of reform movement, estate tax reform working out, leopard experiments, at the same time governor jerry brown saying the capital of his state, called essentially the pretzel palace of complexity. is is sacramento passing measures. >> they passed one lie after another. very difficult. the wealthy, people who can afford to do it, corporations can say i will go to business somewhere else.
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you saw what happened with bowlinbowlingboeing looking to o california. the ones who can least afford it to stay behind, more burden on their shoulders. liz: i understand what you're saying about state capital here in new york and california from throwing banana peels in front of businesses to trip them up. state income taxes are falling by the wayside in many of the reform states and using sales tax but dominick that may not be a good move because the taxpayer can say we will not shop in your state, we will go on the internet, isn't that a danger? >> we have seen it in new york and new jersey. there is the tax holiday, but if i lived in florida, it is hard to go to mississippi.
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they're trying to switch how taxes are getting paid, where the wealthy normally pay the bulk of the taxes and end up leaving the state. they can spread across from a larger base, smaller amount helps out. liz: good to see you, dominick. if you are what you eat, you will be in for a big shock because food companies are lying to you about what you're buying. this story scares me. do officemax is celebrating our new collaboration with go daddy! with an online package including: domain name, website builder with five pages and basic email just $49.99! that's up to 76 percent below online providers and only at officemax stores! th your mouth is under attack, from food particles and bacteria. try fixodent. it helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. ♪ fixodent, and forget it. gives you 1% cash back on all purchases,
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liz: well, you think what you're having for dinner tonight? a new study shows the amount of mislabeled and big foods, sometimes a key ingredients in our food is climbing. marcus, when i read this story,
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that holy cow, wants to read more, i want to know more. tell us what you found in your story. >> i'm happy to do that. a food database on the internet available to everyone summarizing the findings about food fraud, food that is not what it purports to be, ingredients that are not what they report to be. liz: so let's go through the list. pomegranate juice diluted with grape or pear juice. olive oil diluted with cheaper oil, lemon juice with water and sugar, tea that has grass from front lawns in it. spaces adulterated with dangerous food coloring that mimic the color. what else did you find? >> that is part of it, but let me back up a little bit, liz.
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i think i it is important to knw in the united states and all developed countries we actually enjoy a high level of food safety, good, healthy and safe food is. this doesn't come from nowhere. there's a whole lot of work behind that. looking out for authentic products. liz: palace of food products most adulterated on the shelves. >> it is actually not a good predictor for what adulterated foods. liz: i read milk, honey, coffee and sugar, syrup are listed as being highly adulterated food products read go ahead. >> maple syrup is a good example as we all know maple syrup for breakfast or wherever else we want for our pancakes.
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so maple syrup can be adulterated. liz:hat about seafood? >> seafood has gotten a lot of media interest in terms of selling the wrong fish. it might be some other fish. and a few fish are they really white tuna can be unhealthy for the consumer. liz: you know what really scares me, food coming in, i will be honest with you, food products coming in from china. i read tofu preserved with formaldehyde. i bought a vegetable sticky bun made out of dough, i told my friend this vegetable bun is really chilly. guess what, it had paper and cardboard in it for god's sake. that is scary.
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and so the lesson here, you have to check for the food is coming from and you don't want to buy ultracheap because older cheap products you may not know what is in the food product. >> absolutely you're right. certainl not all countries enjoy the same food safety we do here in the united states. and that is a concern for a lot of consumers there. a benefit here is to have high vigilance in the street and consumers, and we do have more globalized supply chain service can spread. at least have informed discussions. liz: marcus, the senior director with usd, did a terrific study on food on the grocery shelves. i urge viewers to read up on it. good to be with you, thank you so much for your time. next up, if you want a baby and a job, the most powerful female
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executives at facebook not make a lot of friends after dropping a bomb about having babies. a bomb about having babies. that is all stations come over to mission a for a final go.
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dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. liz: a facebook bigwig sparking a backlash. coo sarah sandberg saying employers should be able to ask female workers or even job candidates if they're planning to get pregnant. the mercedes call went in whether this is flat out discrimination or good business. first to you. >> this is unbelievable. every state and every agency, what they do is send employers a list and say these are unlawful inquiries. asking somebody they will get pregnant or if they have children and if they have plans for their babies if they come along is not lawful. there are laws against it, i'm surprised she did this. there is no justification for it
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because the fact a woman is pregnant or a woman has children, nothing to do with it she can do the job or not. liz: cheryl sandberg could be breaking the law. >> her point was in her opinion and shouldn'that shouldn't be te law is and if we take a step back, it is a sensitive issue, we can see both sides because at the end of the day this is a business decision about who to hire an initial cost when a woman is bearing child visiting the doctor. liz: how is that a business decision, how can you say to a candidate you are pregnant, you're going to have children, you will not be able to do the job. the fact he may have a baby can he will not be as committed or do overtime or really do everything i ask of you, how is that possible an employer in good faith with all the antidiscrimination laws say that. it doesn't pass muster and those who do it beware. a lot of plaintiff lawyers want their monethe money and will coe cash that is how you do business. liz: go ahead. >> a business decision deciding
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should i hire a woman, a man, all those people present different marketable skills, different levels of education at different plans for the future. when we look at this from 30,000-foot view, women are gaining economic power. entering the workforce in remarkable numbers, more than 50% of college graduates and they have a lot of value to employers in the take away from this is smart employers will find way to accommodate those women. liz: i want to make it clear for the viewer what you're saying, are you saying already companies are weighing in the balance whether or not the person they want to hear could be getting pregnant but they are not verbalizing it? that it is already going on in the workplace? >> yahoo hired a new ceo issue is clearly pregnant about five or six months or event, this is an instance that the initial
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cost will be worth it given the value she will bring. >> by the way, i think employers should be asking these questions. that is not lawful to me cannot ask these inquiries and make a decision based on that particular question because what is that to do with if they can do the job or if they have the experience or can accomplish whatever the goals are of that. nothing. if you're pregnant, having a child, you can't work here. >> if he believes a woman who is pregnant is the best woman for the job, he will hire her regardless. another employer thinks he doesn't want to deal with the complications of having a woman on staff who will be having a baby soon. >> it is not lawful. liz: is this a state law or federal law? >> both.
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there are gender laws, could be state, and some of the state lost if you have children, you are protected. so many laws can be implicated to ask those questions. liz: do you think she comes out maybe tomorrow and retracts that? >> i am sure they were retracting saying what are you saying? at least put a disclaimer, explain it. >> remember when we are competing for jobs, we are not doing so as women against men. some women are making the choice to dedicate 100% of their energy and their resources toward their career, other women want a better worklife balance. as individuals we ought to be free to negotiate those terms with our employer. the employer's not be mang


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