tv Cavuto Coast to Coast FOX Business May 25, 2016 12:00pm-2:01pm EDT
stuart: yet again i'm in the enviable position of handing over to my friend and colleague, neil cavuto. what am i handing him? a shell and 155-point rally for the dow industrials. i've got five seconds left. wait for it. it is a 12 noon. it is yours to neil: two words, thank you. let's look at what is causing the market, folks who are getting mad about long lines at the airport. lawmakers are dealing with it tsa fury if you will and the administrators on a hot spot here. he's come up with a lot of ideas. let's go through just a few of them. you can get real-time wait a gaetz if that will change anything. i'm going to be waiting a long time. another one that could be controversial because it sounds like it could cost a lot of money. i don't know how that will work.
i looks like it could be pricey versus the manual system. moving a lot of workers to full-time. the administrator was also talking about taking those later for layoffs about 1600 stopping the layoffs, maybe hiring 700 to 800. of a lot of ideas out there that could cost a lot of money. hard to say. carter in on not hearing. a few minutes to chat with us. among those ideas, anything you like? >> certainly we want to look at all the idea can consider them. just recently, i think this week in atlanta and the jacksonville airport, they started with the new bins. we'll see how that works. supposedly that's one of the ideas that will help save time as far as letting people know how much the way it is. you know, back can have a double
in fact. at the same time you have an idea how long it's going to be before you get through the line. neil: you know, just make for you guys to you. i'm always here to help americans. why can't they stagger schedules with either peak level ticket pricing or the like so that we can spread this out. it seems i can talk to airport officials, late morning seems to be a popular time from a crowded time. then early evening. i don't know if that's consistent. but if you spread it out, in fact if you went on a time that wasn't peak, in fact, way far from peak time you get a discounted ticket or whatever it was certainly spread the crowds out, wouldn't it? >> absolutely. you make a valid point and coming up with some kind of idea like this. that's one of the things i'm so frustrated with tsa. there seems to be a gap he trained the communication that
is just not there between the airport and airline in the tsa senior management. they don't seem to be given the same message coming up with innovative ideas that you just mentioned. neil: you know what i don't don't understand is informational and helpful, the subject of minute wait time with a readout of how longer be waiting. i can get a pretty good idea. i know you don't see it from where you are. i can assess the crowd and say that is between two hours and forever. what value is there in having up-to-the-minute wait times? >> well, i am not certain the value in it at all. the point again is tsa, this is a management problem. that is what happens when you have a big iraq was a period that is why i am one who is proposing we privatize as much as we can.
neil: i am all for letting private companies do about. it would be about barroom potentially for bad guys to slip in, wouldn't it? >> it would be. with proper oversight and convinced we could do it. that is the route that we ought to be heading. not for everything, but certainly it can help in a lot of ways. neil: on that same point, more flexibility with these government workers, so far as re-signing them, i don't know how true that is the fact that they are unionized. would he think of that? >> a lot of the hearings we've had in the oversight committee were tsa has been abusing not process and actually disciplining and punishing employees bad guy. i'm not a big fan of that at all. neil: congressman, thank you or the time. we appreciate you. in the meantime, these long lines might be fear.
let me explain what's going on in europe, certainly what we've seen with the zika virus spread and has a lot of travelers hanging we will just stay home. they might still fly domestic flights home, but a lot of them will drive. that's not the way you want to do it. the feeling here, whether people are legitimately canceling plans or at least their own probable plant as a result. lenore hawkins but the official scott brenner and lieutenant colonel tony schaeffer. you know, there is nothing like attacks abroad or threat of attacks abroad to give people pause here. we still don't know what happened with the egypt air flight, but we do know bookies within minutes of the announcement were starting to rise. so that's not surprising. but maybe that is dealing with this crowd there could. what do you make of the fear that seems to be among a number
of americans who are holding off these destinations? >> two things. this is not simply a management problem. it's a perspective problem. 99.5% are innocent. one of the first things we have to do, which was learned from europe to start looking for the thread. your grandmother with nail clippers is not a threat. don rumsfeld is not a threat. >> maybe i spoke too soon. we've got to look at the threat for what it is. the american public for the most part right now recognizes so far so good here. on your program and other programs i got a note from tsa on this. you are offering up these people to be a huge target for tsa. why try to get on an airplane which can take out 300 people in an open area in one of these areas? we have to look at the most practical approach for an isis right to come at us. frankly, tsa is not equipped to
do that. maybe they want to look at doing that, but they've got to get done miscues and focus on threat. neil: a lot of the ideas they come up with are those prescreened, a process to allow you to avoid these lines. what you make of that? some people can take advantage of it. what do you think? >> i don't know why anybody is surprised by the long lines. the secretary of transportation warned folks that after tsa was tested and failed miserably to use top a bunch of test cases were tsa personnel knocks out through today said we have to slow things down and be more careful look enough folks going through the line. they said we cannot be efficient and we cannot be security conscious. a shift in compatible. things will sort out. lo and behold we've got big long lines now. neil: it could be a sign of the economy and the wherewithal in
order to take these trips that i am wondering whether there is a way and i know i keep going back to this to establish more at peak and low pricing and scheduling. part of the airline's first to stagger flight so that it spread out. that's like rush hour. >> i never took you to be a big government guy. the airline 30 do that. if you take a flight at 8:00 a.m. come is more expensive than at 11:00 a.m. they are looking at the market and trying to go where the consumer wants good they've got a business to run. they are going to make more money if they use those flights. i understand now the airlines have gotten so good they can look at individuals to see what their prices are. neil: skip bad idea. what do you get from this? it would be a heck of a thing to ease up on this congestion as a result of fears.
>> i think it would be a real shame given that the economy is already still struggling we put further harm making it so difficult for people to rob. is just ridiculous. there is a way to do this. like you were saying before coming to tsa's own test got through 67 out of 70 times. so much for all the security. why do we do? we grandma. i forget i get through the line with my very first as tweezers begun to put a sanity and it and i has to do a better job of clearing people before you get to the airport. i've got the tsa pre-check. i travel constantly. but still, i get all kinds of ridiculous extra checks. i am not the threat. if they are spending time on me, no wonder the line takes forever. they spend a ton of time and people like me not focusing where there really is danger.
>> i worry about when the agent has the young man on in the background. i know it's going to be a long check-in procedure. what do you do? a lot of people say it's the airlines fault again for this new ticketing policy and charging a lot more to check bags and that's why people take in them. i don't know what the answer is. >> i disagree. the fact that tsa approaches this proposition as everybody as a threat. we have a small percentage in simply put if those items got through, and i travel with a knife hidden in a piece of metal that does not meet requirements. i've sent it through dozens of times. i'm not a threat. you have to focus on threat issues. this is the point. to the other >> guest: she's not a threat. i'm not a threat. the tsa is wasting time making the traveling public miserable for no reason.
security theater makes nobody safer. you are looking at everybody. the likelihood of getting through is greater. you've got to focus on what the real threat is rather than pretending everybody is a threat. >> why would the tsa -- neil: to be fair, is there any easy way out of this? the ideas advanced today sound like they will cost a lot of money. i don't know if money is the answer here. >> money is always the answer in washington. more screeners, more time spent. everybody who is spoken today is absolutely right. there's an infinite number of ways to harm america, but there's a finite number of individuals who will do that. we need to focus on the finite number of individuals rather than looking at everybody. neil: minoru. >> this is a perfect example of why you need competition. there's no downside to do a bad job because the worse they do, the more money they can get.
the joy of competition, the way of the free-market get a better solution than a government but not least because there is a downside. if you don't do a good job come you don't get more money. >> tsa has never caught a single bad guy after all the billions spent on it. not one. neil: unbelievable. you're going to have a pleasant trip to the airport next time. let me know how that goes. thank you very much. as the fine folks are chatting, we are getting word that the hacker known as gucifer, this is the guy breaking into hillary clinton's account and the bush family account. right now this 44-year-old fellow pleading guilty at a hearing in federal court, virginia with identity theft. he's going to be spending some years in the slammer.
we don't know how long, but of course this sort of hacking, the ability to get through so easily raises concerns if he could do it, could anybody do that? we are on ted cruz. he might be out of the race, but his people are very much involved in this upcoming republican convention. just in case you think this is going to be smooth sailing for donald trump, i don't know about that. after this.
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the guy is going to use the protest moving ahead to the republican convention. we will do a lot of that as well just to make their presence known. who says republicans avoid this? the irony will be this table used donald trump to remind them are maybe deflect attention from the democrat and they're fighting back and forth to say that any were trump goes count on protest. maybe attention of both conventions. what are you thinking? >> well, i think we need to point out that protests at republican conventions is nothing new. 2008 the fbi had to get involved because anarchists were threatening to shut down the convention at any cost to republican conventions in general tend to attract the anarchist type of protest. >> they stop a lot of that to be fair. rats are always there. this is something you can almost count on.
the protesters, many of whom follow from event to event are ready to just mess things up. i think deflect attention away from what democrats will be doing the following week. >> well, sure. we have to understand that they're organized protest. they are organized by people who are far less progressive organizers and have been for a very long time, really going back decades. it is their job to organize protests to distract away from not only what democrats are doing, but to cause a scene against republicans. neil: i was hearing this stuff with the ted cruz votes. they are very hot to try to make sure the platform is to their liking. some conservative causes are spelled out. there might be some disruption there, many of whom have not really swallow tablet the prospect of donald trump in their nominee. how bad does that guy?
>> you're absolutely right. ted cruz and marco rubio holding on to delegate to influence. paul ryan who of course is the convention chairman whose opening up the convention with reince priebus. however, there still is a huge rift in the republican party despite something like 80% of republicans now following in mind time donald trump. there will be some back-and-forth. this is also happening on the democrat side. it is figure where there are each party people are trying to break up the status quo and the establishment of those side. i quite frankly think that's a good thing. neil: healthy debate. depends which media covers. i was a pleasure. thank you very much. i think it is safe to say that new mexico governor susanna martinez is off of the short list if she was ever on it to be donald trump's running mate. don't take my word for it. take donald trumps.
>> since 2000, the number of people on food stamps in new mexico has tripled. we have to get your governor to get going. she has to do a better job. she's not doing the job. maybe i'll run for governor of new mexico. i'll get this place going. trend do you know that's not a democrat donald trump was talking about. one of the stars of the republican party and a woman who is often mentioned as an ideal vice presidential candidate against him and mr. trump's remarks that is kind of not happening right now. hell hath no fury like a candidate waited and donald trump has resistance to being ordained on the short list.
not the stuff that really engenders warrants. charlie gasparino with us now. what you think about? >> there were disgusting riot that one of his rallies last night in new mexico. you can see the high ground to bring republicans and conservatives together, telling us that we face both an amoral candidate and clinton. people that are going to stop free speech. instead he goes out and beats up on a republican governor, who by the way, the clip has probably been used when she runs for reelection by her democratic component. trade issues wildly popular in the state. leaving aside, what message is this sending at a time you should be building bridges did maybe he doesn't care.
anyone who has something slightly negative to say that it comes back. >> what he is doing is feeding the doubts that a lot of republicans have about 10. i read something -- there is some speculation that is now going to endorse donald trump fully. you've got to be thinking twice that trump is going out and attack a very popular sitting republican governor is not like some bombthrower. she had some criticisms. everybody does. people have criticisms aired that doesn't mean you go out. it lends itself to the notion that he's just not a team player and never will be a so why should -- can we trust them on policy and other issues? that's the biggest hurdle right now. >> we expect those --
neil: i think the fact that she was not supporting that it triggered this. >> i see his point. you don't have to add fuel to the fire. neil: we are not vindictive people. what is going on with the stock nearly one year high after essentially saying they are you could do better. what he think happened? >> we reported it pretty much on the money yesterday that it was a soft rejection. it wasn't an outright screw you. it was like okay, we so want to talk to you. we understand the deal when you put monsanto and bair together, but we won a few more bucks and sweeteners. the stock is reacting to that. i'm getting this from inside month the answer. they expect a counter bid. they also are not ruling out for someone to come in. they understand in this field that they have out they are in a
business, consolidation is going on, particularly commodity prices eating into their bottom line. they are kind of in a rock and hard place to iran this by somebody working on the mont into deal and they gave me at rate quote. he basically said listen, charlie. when two people are in bed together like these two, they've done some. guess what? they are going to have sex. you get -- this is somewhat involved in the deal. the likelihood they come back and something happens here, at least according to the people inside and on the monsanto site is very good good when bankers start using words like sex. neil: i beg you to stop. i really do. >> that's the best quote of the day. thank you, my friend. charlie gasparino, just the image along. i'm done. by the way, he told us here when
we were talking to him. texas governor greg abbott always threw on a promise he made to suit the obama administration over the transgender day of. the public institutions, schools, et cetera have to make their buildings accommodated for trans-genders. very small part of the population unaware of any and everything to accommodate them. not going to happen in the lone star state. the governor of texas same effect as late to the obama administration we are going to sue you. after this. so why would you invest without checking brokercheck? check your broker with brokercheck. there's no one no one surface...e. no one speed... no one way of driving on each and every road. but there is one car that can conquer them all.
neil: i think this is the equivalent i get with my two teenage boys when i cite a problem with one or punish one. well he did it too! i kid you not. the clinton campaign is responding to this state department ig report that was sharply critical of her personal email use and using outside server, you know the drill. quoting from the campaign. the inspector general documents just how consistent her email practices were those of secretaries and senior officials of the state department, used personal email. ie, they did it too! i love it when you get stuff like that. everything comes back to that. you can read it for yourself. let's talk about regional banking stocks before i get to
one of my favorite guests i ever had on this show. they're up, in the face of what seems to look like increasingly likelihood federal reserve will raise interest rates next month. that is far from sure thing. markets is up 200 points yesterday. 140 on the idea if they're raising rates, presumably a sign economy is good and can with stand it. get reaction to all of that, with david stockman, ronald reagan's budget director. he has been warning and banging the drum trying to shout out anyone that listen, republicans, democrats, if we don't do something about all the debt piling up everyone is going to pay. david stockman, good to see you. >> very good to be here. neil: you said something interest the other day about donald trump. not that you were going to be whole-hearted supporter but that washington could use someone that will shake things up? >> yeah. i think we need a disruptor. we've been going down the same path now for 25 years, what has it led to?
19 trillion of debt. a federal reserve that is out of control. they have had interest rate at zero practically for 890 straight months. neil: the fact it might have the first hike since september, you welcome that. >> i welcome that but it's a pinprick. you have to recognize that the interest rate is the mother's milk of speculation. when it is at zero. wall street fund itself in the money market. and the fed had its foot on that interest rate at zero for 90 months. it generated the most spectacular run of speculation and bubble finance and overvaluation of everything, bonds and stocks that we've seen in history. neil: we have leveraged off of that mightily. >> mightily. neil: all right. so i have a feeling that they're not going to raise it. they will find any excuse not to. they might but i don't see them doing it and they will seize on any excuse not to but obviously
markets change their mind at the ready and they're okay with that. you feel rates are too low but how do you feel the markets will respond to a hike? >> well there's been a brave front in the last couple days, if the fed is going to raise rates, that must mean everything is swell. neil: right. >> when has the fed ever gotten it right about the economy? neil: true. >> didn't see the crash coming in 2,000. didn't see the housing bubble. didn't see the wall street meltdown in 2008. neil: or bubble it is creating now. >> or the bubble it is creating now. did it project the gdp growth rate even remotely accurately for the last six years running? the answer is no, no, and no. it is always wrong. it is lost. it has no clear view of the future. therefore for the markets to conclude that everything is all better, that, we're moving upward, ever higher, i think is a huge error and when we actually get to where i think we're going, which is a recession, there will be massive
panic and selling on wall street. neil: we have recession coming? >> i would say by end of this year or next year. after all we're 84 months into this so-called recovery, as tepid as it's been. longist one in history is little over 100 months. neil: you mentioned donald trump a welcome figure in washington and he would be a great disruptor and he said nothing to rein in entitlements or restraining government growth. he wants to spend more on defense. when i heard the disruptor comments of yours, david stockman has no idea what this guy is like? >> i think i'm not very happy what he said about entitlements. you need to at least -- neil: how will he disrupt if he is not going to disrupt them. >> what i like he is not schooled in all the rationalizations and all the theories that washington has been running on both in foreign policy and domestically. neil: he hasn't said we don't need to do anything there?
>> i think maybe he will discover the facts of life and at least he recognizes that 19 trillion in debt is more than we can live with. if we continue down this path, it will be 30 billion within a decade. we'll have a debt-to-gdp ratio y'all to practically greece. i think he at least that debt can be dangerous. he has had a lot of experience with it. neil: he could always in the past claim bankruptcy, right? file for bankruptcy. the u.s. doesn't have that option. >> i don't think we have that option but essentially that is what fed policy today leads to. they're determined to have 2% inflation. what does that mean? after 30 years, a, 30-year government bond is worth 55 cents on the dollar. if that is not default. if that is not huge haircut, i don't know what is. my point is one way or another with outright default some day
down the road if we keep going this way or de-- inflationary default, we can't live with this debt. neil: we always kick that proverbial can down the road. you say it seems like donald trump is closer to getting it than hillary clinton by your definition but either way, by the end of the year, whoever comes in will be coming into a recession? >> i think whoever is elected will inherit a recession. after all, if you expect four years of no recession, that is 140 months from when the last one was. neil: the argument is could last long, it has been so weak to begin with you can stretch it out? >> you know you can't sigh that in light of what's going on in the world. we've got a deflationary recession emerging everywhere in the world. japan, you know, is an old age colony sinking into the sea. china is a massive speculative mania that is going to collapse any day. neil: how do you think donald trump responds to china? he says they're eating our lunch
and taking advantage of us. we're on defense with them. earlier in the campaign he talked about tariffs for chinese goods. he dialed that back, but he would ignite a trade war. if you read the chinese press, they're not fans of is. he comes in, are we looking at global trade friction? >> i think there will be enormous friction. neil: with him? >> with, either trump or clinton. neil: so there is hell to pay no matter who gets in. >> doesn't matter. we've been living beyond our means for 30 years. neil: what makes it pop now. >> it is only a matter of time. people said that in 2007. don't worry, they will muddle through. remember goldilocks and then all of sudden wham, the bottom fell out. the meltdown happened, panic was on. neil: do you think something like that could happen again? >> of course. neil: what would trigger? >> it is hard to say what the black swan is, but right now, if we look at this economy, inventories are building up. if we look at transportation, for instance, rail traffic is down 10%.
trucking traffic is down. manufacturing has been negative for months. neil: we should say, those who espouse the dow theory and all, that tells you transportation goes, so goes rest of the economy. that has been hitting us. >> yeah. neil: let me get your sense, david, what we're in for here. the feeling seems to be financial institutions won't suffer like they did in '08 and '09 because they have more money. more capital set aside for that. you say what? >> wilt big banks do have more capital cushion but risk has just been off-loaded elsewhere. right now you have trillions of new high-yield bond funds. trillions of, actually, credit funds that are taking on far more risk than is embedded in the yields that people are receiving. so, i think you've just moved the risk to outside of the banking system, to the nonbank
financial system. it is out there. we have more junk bonds than ever before. neil: let me ask you, if you were president of the united states, and you have chicago on the ropes, we'll get into this in the next segment, just like puerto rico, commonwealth on the ropes, would you rescue them? >> would i rescue chicago? absolutely not. i mean bailing out cities, bailing out states, bailing out puerto rico, bailing out wall street, auto companies, the whole thing is wrong because it creates moral hazard. it creates -- neil: what you do for one others expect you to do for them? >> yeah. as a result people take excess risk. they don't face reality. they live beyond their means. they use accounting trickery, in all of the things that we know have happened in the past, will continue to happen. you have to have financial discipline. and the way to destroy financial discipline is with bailouts when people get themselves in big trouble. so, you know, i think history is
pretty clear and i think the philosophy is pretty clear. but we've strayed from it entirely. so we -- neil: blast both parties for that. >> sure. we have 63 trillion of total debt in this economy. public sector, county, state, and local is nearly 25 trillion. we're getting old. baby boom is retiring. 10,000 a day. another five or 10 years we're going to have a massive increase in the retired population. how do you fund all that? who will pay the taxes? none of this is being focused on and we're just drifting as we have in the past and sooner or later you hit the wall. neil: kind of bumming me out, david. >> well, those are the facts. neil: you are good at them. you have been warning republicans and democrats alike. david stockman who won't be frequenting chicago anytime soon where there are protests going on. these are going outside of mcdonald's. this is just part of a problem,
a city on the brink and, by almost any other normal measure, would already be bankrupt. we're there. after this. [shouting] i'm mary ellen, and i quit smoking with chantix. i always came back to smoking. i was absolutely frustrated, absolutely. i did not think chantix would work as well as it did. along with support, chantix (varenicline) is proven to help people quit smoking.
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the dow is up 146 points. a triple-digit gain tacking on to yesterday's 200 point gain. we haven't seen back-to-back triple-digit gains for the dow since april. oil is $49 and change, getting close to $50. we're keeping eye on gasoline prices. a month ago it was $2.14 regular gallon. it is up today to 2.30. we got memorial day pop. shell announcing it has major layoffs, another 2200. which brings its target by year-end to 12,500. alibaba that's down today. it is coming under pressure, being investigated by the sec over the company's possibility of a accounting practices and also its information from its singles' day. more cavuto after this.
neil: all right. you just heard david stockman say recession is coming. no matter who is president come next january, he or she will have to deal with a world of financial hurt. now, we have a guy who run as big lending company banking concern who has quite a different view. fair and balanced you will hear that meantime whether you buy the fact we're heading for a slowdown or not, one thing undeniable is regulations, which can be the bane of existence for a lot of businesses, well, they keep running rampant. fox news's shannon bream is here to spell it all out. hi, shannon. >> hi, neil.
once a year the white house is supposed to publish a list of regulations from the administration, the one shows a mountain of executive action as president prepares to wrap up his time in office. it shows more than 3300 federal rules and regulations at various stages in the process. since president obama took office the number amounts to 20,642. single most expensive regulation last year was the epa's clean power plant which came in with price tag of $7.2 billion a year. by executive order president obama cautioned agencies that federal regulation, quote, must protect public health, welfare, safety and our environment while promoting economic growth innovation, competitiveness and job creation. well critics say that balance hasn't been achieved, pointing real-world cost of federal regulations of $2 trillion a year. most of that comes from folks who never ran for election. here is genevieve wood of the heritage foundation.
>> a lot of these regulations, people should understand being put on the books by bureaucrats, not by their lawmakers. they are not going through congress to have lawmakers vote on them. we have 27,000 employees at federal -- 277,000 employees at federal agencies coming up with new rules, costing taxpayer a lot of money and deciding how they're implemented. we spend a lot of money on that loan. >> critics blame both republicans and democrats, abdicated to much their power to federal agencies of the as for candidate, gop front-runner donald trump talked about it at length. he pointed finger at president obama about hidden tax ever regulations that former secretary of state hillary clinton and bernie sanders, about new ones they would enact as president. neil: thank you, shannon bream. for those of you might have
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enter home depot ceo and chairman anthony shea. he doesn't take that quite dim of a view. he joins us out of phoenix. anthony what do you think of mr. stockman has to say, there is financial hell to pay and we're on verge of it. what do you think? >> i think there is disexpect between what is monetary policy of the government and what americans are truly getting. americans are not borrowing money at 0%. interest rates are still fairly high to american consumers because not the cost of money that is the problem. it is availability of money today. you can see credit cards are still going up. student loans are going up. these interest rates are not at zero. so american consumers are still paying a high level of interest rates. neil: historically though it is pretty low at least from when i was younger, which was a long time ago, but it doesn't take much to disrupt them. quarter of a point, half a point
would be still historically low levels. that adjustment would be a lot and that is part of what stockman is addressing here. you don't agree with that? >> i agree with it direction alley, but in real think i will give you an example. our company offers home loans and personal loans. the home loans are in the 4% range or below 4% range. personal loans is 13 1/2% is average coupon we give out to consumers. neil: wow. >> our customers that take out personal loans are 80% homeowners. they're electing to pay 13 1/2% instead of getting cash out or home equity loan which is harder to get because capital hasn't returned post the recession of '07 and '08. so the availability of credit is still a challenge today in our nation. it is not cost of credit that the monetary policymakers are driving. there is terrific disconnect between 0% and amount of money that american consumers really have accessible.
neil: it is still very tough despite guys like you that try to make it easier for them to get loans, real estate loans in particular. a lot of them complain about appraisals. some complain about short supply, limited supply of holes available yet we come off a report in april that shows 16.6% surge in home sales, the strongest advance in nearly a quarter of a century so what is going on? >> we're starting to see that return. household formation in this country obviously continues on. and since the crisis of '07 and '08 we've been slowly recovering. april is historically a very strong month. neil: right. >> i think it is hard to tell a trend with just one month but it is a healthy sign. interest rates are low and certainly we hope that, you know, the inventory becomes healthy. we're still at fairly low inventory levels. so it's a strong sign. neil: anthony, thank you very much for joining us. appreciate it.
♪ neil: i don't know if chicago is the best place to be pitching for a higher minimum wage or doubling whatever the national wage is to 15 bucks but they are doing it in a city in world of financial hurt. you heard david stockman told us a few minutes ago, might be on the verge of bankruptcy itself. nevertheless jeff flock in middle of all of that, with protests and demands that will not go away. jeff? reporter: in fact intensifying, neil, as i can tell. this is the middle of clark street, adjacent to the rock and roll mcdonald's. that is shut down as we speak.
many are on strike today for $15 minimum wage. i have angel with me, a striker, mcdonald's employee. why are you taking a chance on losing your job? >> i'm not worried about losing my job at all. i'm here because i have nothing to lose. if i have something to lose i probably would not be here. but since i don't, i'm here with the rest of my coworkers and other people from other work and labor forces to strike. reporter: i want you to listen to something. this is former ceo of mcdonald's, who talked to us earlier who said, if you ask for too much money, they're going to come up with robots. listen to what he had to say. >> it is cheaper to buy a $35,000 robotic arm than to hire an employee who is inefficient, making $15 an hour bagging french fries. it is nonsense and very destructive, it is inflationary. it will cause a job loss across this country like you're not going to believe. reporter: big job losses he says.
what do you say? >> i'm not afraid of that. him saying that means nothing to me because the fact is, robots can not say good morning to customers. i make my customers day. when they come to get their routine cup of coffee or coffee, they're happy to see me. i can be friendly with them. customer service is everything. robots can not do that. if mcdonald's chooses to go that route they were going to do it anyway. we do not influence those decisions. their bottom line does. reporter: show you this group, this has shut down clark street here in chicago. they have a big protest planned later. out of a mcdonald's shareholders meeting at headquarters in oakbrook. i don't know, i just got to ask angel before we get away, what happens if you lose your job at mcdonald's, what do you do then? >> if i lose my job at mcdonald's, the labor force, labor market is oversaturated with over paying low wage jobs. i will find another one. reporter: there you go, neil. the protest continues here in chicago.
neil: jeff, you don't mind staying there if you can. i want to go to scott martin and dagen mcdowell all of this as well. dagen, you heard that, she is happy to lose her job to fight for the cause, robot can't do her job or say good morning while serving a cup of coffee. if you just want a cup of coffee and you will dismiss the need to have someone say good morning to you, maybe you will be okay as a customer with that? >> and that's the risk that mcdonald's would take, if you had the minimum wage, particularly nationwide go to $15 an hour. neil, we kind of joked about this. more than a year ago when you first started seeing that $15 minimum wage it was in san francisco and then more recently los angeles. and now new york. and this is the standard. at least in eyes of unions. these protesters need to be honest with themselves. this is a union movement. it is funded by the scuiu, the fight for 15.
they only want fast-food chains and walmart and like to be unionized so they can collect dues from these people. it is not making awe better wage. it is about filling union coffers. that is what is driving this. neil: scott, what did you make of this young woman's argument if i lose this job i will find another minimum wage job? in other words seems like a lateral move to her? >> it seemed counter intuitive didn't it? at one point she didn't want the job and at some point she said she would go find another one. the scary thing, jeff, she had nothing to lose. you have to be worried about people that don't have anything to lose. how do you not have anything to lose with a job in america and job at great american company like mcdonald's you have a chance to move up in the world and come to your job and be reliable. ed renzi talked about it. the problem with low-wage workers they're not reliable. unlike the nice woman maybe they
aren't very pleasant to these customers, using a person when you go to mcdonald's or wendy's whatever it is it is not a good experience and therefore as customer you don't want it. neil: jeff flock, if you're still with us, the environment which this is happening. these protests are going on around the country. but chicago which is in world of hurt right now, unable to pay its bills, it is pretty intriguing metaphor. what do you think? reporter: well that's true, but at same time you have the story breaking today on ceo pay where you find that ceo's make, what was it, 4 raise while average worker make as 2% raise? the stocks don't do anything. i mean, regardless of the specific issue here, there is a lot of sentiment in this country that pay is not fair. it is just not fair out there. this is what drives the sanders and the trump and, so regardless whether you think 15 -- even these guys will tell you, $15 in
the middle of iowa is very different than $15 in chicago in terms of chaos of living. donald trump says it ought to be indexed to where you live, local authorities ought to take care of it. that is probably what ought to happen. neil: dagen, you were going to say? >> neil, i want to ask the question, where is the outrage over the way that this city is being run and the downward spiral that chicago is in? chicago last year saw the greatest population loss of any city or region. this is for the entire united states in 2015. so you have a declining tax base. where is the outrage over the sales tax there was raised to the highest in the nation? property taxes are going up. as teachers strike, demanding more money, when $8 billion for the municipalities in illinois just left the state just last year? so they might be, they might be protesting now but people, if they can move, they're leaving, and tax base is drying up. >> dagen, they are.
i have friends, guys, in the business that are leaving in droves. they're leaving every day. i think that is the other thing that a lot of the protesters and debaters don't understand, is that the moveability of a lot of these businesses because of these protests, because of these regulations, this is forced by local government actually dr out business and making the budgetary problems all the problems with the police, city hall, everything so much worse, it is stuff like this is allowed to go on and drive away the economy and any economic growth we want to add here. neil: all right. rage is palpable. so we'll see what happens. guys, want to thank you you all. by the way as they were talking here, we're hearing from u.s. house speaker paul ryan, in case you thought he is moving closer to donald trump. he says he is still not yet ready to formally endorse donald trump for republican presidential nomination. interesting in off itself, since as his role as speaker of the house, highest elected republican official in the country, and would be chair of the rnc, of the convention, i
should say, still not willing to commit to the nominee, there could be problems brewing here. reaction from chris bedford of "the daily caller." what do you make of that? i don't mean to drop this on you, chris, that is pretty significant. he has still not moved to move to donald. >> especially donald trump made overtures to him. at beginning of this process, we saw reince priebus come to new york city to go to trump tower to make him sign a agreement. we've seen donald trump come down to washington, d.c. to meet with paul ryan. unlike with candidates in the past paul ryan doesn't necessarily owe a lot of loyalty to donald trump. he has not been a lifelong republican. not like barry goldwater always out there on the trail fighting for moderates he disagreed with. he is new to the party. paul ryan has to take the part's interest and platform trying to build to preserve that he is probably sees as impending defeat in november. neil: you could be wrong on that
as you and i chatted. donald trump improved in the polls. paul ryan, and especially those who love donald trump don't trust paul ryan. ryan is big backer of smaller government or at least reining in the size of government. remember all the heat he took for just trying to slow the growth of medicare. he was all but in fact some ads throwing granny off a cliff. it is important to get a handle on entitlement growth, get a handle on entitlement growth. he is talked about the fact that government grew under party patriarch ronald reagan. he is consistent on that. he feels donald trump has been inconsistent on that. and it worries him. what do you make of that it wakes up a quiet nerve in the party, donald trump popular as he is, isn't addressing issues that wing of the party, which is significant hold near and dear? >> paul ryan has been chastised on this himself. he has always been a loyal republican who very strongly conservative leans. not just throwing firebombs like some guys on the right.
he is always trying to get things done. when he followed party leadership to support tarp and bailouts and some things george w. bush pushed, he took a lot of flak from that from the tea party. he remembered that. he could be out there pushing the most conservative small government budget and around some tea party people would still be ating him we remember what you did when bush was in charge. keep that in mind. neil: what kind of relationship would it be then? say donald trump elected president. only example i can think of days of tip o'neill as speakwer jimmy carter, those two did not get along, both democrats. ironically tip o'neill had far better cruxtive relationship with republican ronald reagan. play it out. what would it be like? >> tip o'neill shut down the government more times than ted cruz ever did. democrats versus democrats. i don't think speaker ryan will that be confrontational. he typically hasn't been that con ton phrase al. -- confrontational. people paint donald trump as
someone who goes where the wind goes. partially that is true. donald trump is only campaign called up heritage foundation, what do you think about this? they are open up to ideas because they don't have a lot of policy wonks. they will listen to people what will get done. like you see with the supreme court list which was outsourced from the federalist society. paul ryan could have a lot of impact on this. maybe he won't have the impact by taking a knee and kissing the ring right now. neil: something else is going on. chris bedford, the daily call ir. to update you folks, paul ryan still not smitten by one donald trump. not ready to support him right yet. the endorsement is in the offing here but put off with the convention a little more than six weeks away. all right. we'll keep an eye on that. we're also keeping an eye on the va secretary who is doubling down on his comments comparing wait times for vets to wait times at disney for rides. what's the big deal he says?
well, senator roy blunt a very big deal. in fact the senator has gone so far to say you make comments like that, you're not fit to be va secretary. why senator roy blunt is calling for the secretary to just resign, after this. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash.
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switch to liberty mutual and you could save up to $509. call that's see car insurance in a whole new light. liberty mutual insurance. neil: all right. these protests in chicago really just unions putting up the crowds to make them think all these people demanding hike in minimum wage? a comment was made and national seiu president with jeff flock right now. jeff? reporter: indeed. dagen said pretty harsh things. he said you're just here to organize these people so you can get their union dues. what do you say? >> i say we've been standing with the courageous fast-food workers for three years. they raised wages for 18 million
people in the united states. they have gone global. people from late inch america and u.k. and places all over the world. mcdonald's, wendy's and burger king set a national table in other countries. they can do it here and raise wage. reporter: what about the notion of lost jobs? you raise wages that much, a lot of people say the jobs go away? >> we reject that notion. people have more money in their pockets. they spend in the local community. it can create jobs. that is happening in seattle and san francisco. it will happen in washington, in california and new york, who just passed their $15. we're not stopping until ever fast-food worker has 15 and a union. reporter: $15 in the different in new york and middle iowa. >> they make same profits in their stores. companies are earning record profits. ceos are paid 2,000 times more
than front line workers. we ask them to pay a decent wage so people are not on food stamps to feed their kids. reporter: mary henry, president of seiu. thank you very much. they answered. whether or not or not i don't know. neil: thank you very much, my friend. meantime heard about the va secretary had to say about vets and wait time, no big deal. akin to folks in disney world and wait time for a ride. that stuck in the craw of a lot of people including yours truly and including u.s. senator roy blount from the fine state of missouri. he said that is enough to have the guy pack up and leave as the senator joins me right now. senator, you're probably aware today at least he tried to dial that back a little bit. but you argued a too little too late? >> i'm surprised it took him that long to realize how just out of touch that comment is. for too long we've had too many people running the va who wanted to run the va based on what was better for the veterans
administration rather than what was better for veterans. this guy coming from the private sector would be willing to compete. they have taken the bill that i cosponsored, that we passed, a year ago and made it almost impossible to be one of the competitors to the veterans administration. let the veterans administration compete for veterans health care and see if they can do a better job. they're not doing it right now. if he had a private sector job, he would have already be gone. neil: you know the argument that he raised afterwards, i'm a vet myself. i served this country -- last thing i would like to do is do anything harmful to veterans but what really bothered a lot of folks his service to the country notwithstanding that the fact he came in to address wait times and lines of vets who were waiting for care and then he dismissed the very rationale for his coming to the va in the first place. so it confused folks in the first place, didn't it? >> it is very confusing. frankly i'm usually of the view
it is the guy at the top that needs to be replaced, not people that work for him. whether it was, almost anybody else i have said look, we ought to be looking at top, not at this particular ad minute straight tore. because of that i didn't vote for ash carter when he was confirmed. i didn't vote for loretta lynch they will continue to do what they have been doing at defense department or justice department. i voted for this person because he came in and said i'm going to change things. i'm willing to compete. i'm going to solve these problems. and he hasn't. neil, we have a big va facility in st. louis, missouri, the cochran facility. they have 46,000 veterans a year come to that facility. they have had a part-time, eight part-time directors, temporary directors for three years. things have not gotten better under mr. macdonald's watch. they have gotten worse. i think i'm tired of it and more importantly a lost veterans are
tired of it and i want -- neil: he mentioned disney comparison. do what disney does and find a way to deal with lines and disney came up with things like fast passes and ways to get people through lines a little bit faster. but that is a gimme. but we don't have a fast pass. we don't have something special set up for those vets who might be in more dire health to move to the front of the line and get care they need right away. >> they have done everything they could to slow the line down. we gave the veterans administration plenty of capacity to let veterans go somewhere else. they made it hard for doctors to sign up. okay, anybody already signed up for medicare i can be a va provider. no, you have to go through a whole set of other circumstances. by the way we'll be really slow in paying you. we, passed a law that said if you're more than 40 miles from a facility you can go to alternative facility. we're changing the law right now to make it clear.
we mean a facility that provides the service the veteran needs, not somewhere that takes your blood pressure and you need open-heart surgery. they have resisted every possible thing that would eliminate those lines, give veterans more choice, and more options for care than they have now. neil: ridiculous. senator, thank you very, very much. >> ridiculous, exactly. neil: disney by the way is in the news constantly, right? forget about comparing lines there. did bernie sanders actually blast the mouse house over pay? yeah, he did. after this.
years back. the bottom line phone sales have not been strong. the company acknowledged as much in memo sent out to employees, saying it needs to be more focused in the unit, the unit that makes phones. their stock up a little bit today. a company with ties to senator bob corker is reportedly under federal investigation for alleged accounting fraud. "wall street journal" says the feds are looking at cbl and associates. corker said to be close to executives there and apparently made money trading the stock in the market. corker getting a lot more attention lately as there has been speculation he is being considered as possible running mate for donald trump. finally, there is this. victoria secret will not be mailing out its catalog anymore. >> what? >> should have had everybody sit down in the studio. didn't know there would be so much interest in the story. apparently it wasn't driving sales. in fact they recently dialed back, let me handled this, recently dialed back catalog they were putting out and sales
did not take a hit. company is discontinuing it all together. neil: thank you for keeping abreast of that. how childish is this? we have lot more than this going on here. did any of you sigh the disney dust-up? i'm not talking about, what the va secretary was saying about lines at disney and comparing them to lines of our veterans waiting for health care but bernie sanders going one step further and slamming how disney takes care of its workers. take a look. >> i'm probably the only politician to come on and say this, i use disney, not just to pick on disney but as an example of what we are talking about when we talk about a rigged economy. neil: all right. we got reaction from mick my mouse who said -- mickey mouse who said something to the effect, is he out of his mind? [laughter]. i did.
i planned that all day. lizzie macdonald, charles payne. aren't they paid above the minimum wage though, lizzie? at disney. >> yes, they are, paid based on skillset. bernie sanders opening up to blast disney. he said bob iger, ceo of disney his pay is proof we've got an economy built on greed. bob iger gets 46 million. he is also saying that abc won't report what he is saying because why? disney owns abc. but then disney coming back saying you know what? you're wrong, bernie sanders. you have your facts wrong. they are saying they have added $6 billion to the local economy over the last, you know, year or so. that they create 11,000 jobs over the last decade. they're also saying that they are going to expand even further, billion dollar expansion, thousands more jobs, "star wars" theme park will add to the local economy. you're right, neil, disney is essentially saying worker pay is
based on what the skills are. neil: i was just thinking, i think charles, a lot are planning some of these characters you he see on site, that they will be robots now, which, might be fine. i'm just saying that be careful what you wish for because the company will find a way to replace you and not necessarily with human beings, right? >> there absolutely no doubt about that, neil. two major robot stories i will cover on my show. more to the point -- neil: you're on my show right now. >> i thought i would get a quick plug though. you know what? bernie sanders as social it is all about capitalism. let me tell you about anaheim, california. it was a town founded by germans. they were wineries. all of sudden wiped out by viruses. they started growing oranges. all of sudden this company disney said let's build a theme park there. population exploded 10-year period 600%. i went through all the records. no other town in california experienced that type of growth.
people with very limited job skillsets being paid for the skillset to liz's point appropriate wage. moral of the story here is two things. capitalism provides jobs for people with low skills and high skills. if want more you have a chance to get more but the shakedowns have fon too far. neil: how to link this with the mcdonald's protests going on and one worker who was telling our own jeff flock earlier, look, ceos and they're getting these huge pay packages and we're getting squat even when the stock isn't doing much. didn't make sense to her. disney executives, they get you know, eye-popping pay but does that hurt the cause and issues of management when it is enriching itself at the degree far times the multiples or the compensation of those who work at the company? >> you know, that is a good point. mcdonald's franchise model means all moms and pop shops. it is not mcdonald's parent. little guys get hurt with the minimum wage hike.
back to your point. what sanders is also saying the workers get paid so little in disney they live in motels. he didn't provide proof of that. we've seen that argument, you're not supposed to be raising a family on cashier's job. that is proof how bad the recovery has been. that is the way that should be understood. but what they're saying is, mcdonald's workers, walmart workers, using earned income tax credit. they're getting a lot of welfare. instead these companies should pay more and not taxpayers covering those bills. >> one thing i want to throw in, neil, last quarter disney profit margins for the parks were 15.9%. that is not, not a lot of profit, for the movies, it was 26%. and for things like espn, 37%. they're not making a lot of money net-net on this thing. there is not a lot of room to give more. so the whole economic aspect of the argument falls short. i hope for america's sake, the other social justice part of the
argument falls short too. >> i'm sorry, disney, to charles's point, disney is saying statement back on story they create a lot of economic growth with other businesses popping up around it. so those arguments you never see from bernie sanders side of the aisle, right? neil: guys, thank you both. good job. >> sure. neil: meantime we're learning that hillary clinton wants to do something on infrastructure and fairly dramatic in the first 100 days of her presidency should she become president of the united states. only issue is how much and where are you going to get the money after this. i don'or wonder whether i theshould seek treatment.c.
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>> when he was talking about the possibility of a housing market crash before the great recession, he said, i sort of hope that happens. he was hoping for the crash that caused hard-working families in california and across america to lose their homes. all because he thought he could take advantage of it to make some money for himself. neil: all right. well if donald trump was indeed hoping for a crash he would not be the first investor to hope things turn south to profit off of it. warren buffett made a lot of money that way. peter lynch made a lot of money
that way. donald trump made a lot of money that way. it is what it is and remarks strike a lot of people and maybe our next guest agrees or not. former fannie mae executive tim rone. doesn't sound likes he give as rat's patut but for his bottom line. >> i have a hard time donald trump rooting for recession and lose their houses. this guy is rile estate developer. he has 80% of his net worth in real estate. neil: you want to buy cheap, that is the bottom line. you want to buy cheap. >> donald trump does not have monopoly of concept, buy low, sell high, right? there is no evidence that he actually profited from the housing crisis. let's not forget, in 2007, 2008, this was a businessman. what he said was, as i went through his statements was, look, i don't see, i don't see the recession coming. he was in good company. paulson, bernanke all said same thing but all good things must come to an end.
and i, like you, could make a profit from this. what i do think that was legitimate, if you do, if you are successful making the argument that he said those things and had those venal thoughts and sinister kind of desires, at least he was transparent what his position was, right? neil: they always say don't speak your thoughts i guess. but it happened before. there was the mitt romney famous 41%, talking about those who don't pay taxes -- 47%. could that be donald trump's and comes back to bite him? nothing else stuck. i doubt this would, but what do you think? >> i don't think it will. i don't think it's a legitimate issue. i mean now you've got senator, shoot, i forgot her name, out of massachusetts. neil: elizabeth warren. >> elizabeth warren. makes bernie sanders look like mark cuban. she is weighing in an issue. this will burn hot for a few days and certainly will go away. i don't think that, talking about transparency, there will
be some ambitious trump volunteer thinking to himself right now, hey, i wonder if the wall street donors and people who were paying for hillary's speeches if they could hold up to the same scrutiny what trades were they making, did they profit from the housing crisis. that takes up a lot more heat than what trump said nine years ago. neil: one candidate did pretty well with cattle futures, didn't she. that is whole another story. >> this is big so what. sorry to interrupt you, neil. when will we talk about things at that really matter which is you have a 4 trillion-dollars market that fannie mae and freddie mac own in this purgatory. you have $5 trillion real estate market owned by, 98% handled by government. when will we hear policies and things how to manage those things and how to get more people qualified that are into sustainable housing? how the heck will you lower rental prices? how will you help builders, underwrite and build starter homes? there are million things they
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from the floor of new york stock exchange. i'm lori rothman from the floor of the new york stock exchange. ford shares up 4% year-to-date, despite reporting a pretty significant recall. here are the details, 271,000, f-150 pickups in north america manufactured from the 2013 through 2014 model year. apparently it is a brake fluid leak. 3.5-liter v 6 engine models. you have the problem with the brake fluid leak. retail express cut guidance after reporting disappointing retail growth. shares hitting a new low for shares of express. shares not much better for tiffany, posting the deepest sales drop since the financial crisis. the company blaming strong dollar keeping tourists from spending more at u.s. stores. "cavuto: coast to coast" continues after this.
>> i'm adam shapiro in the fox business newsroom. the committee on natural resources has voted to send a bill to save puerto rico for a full vote.o is drowning under $70 billion in debt, more than every state in the union except california and new york. puerto rico is expected to default on $2 billion of the debt on july 1st even if congress intervenes.
the bill create as control board to direct the island's budget and finances and provides no taxpayer money in the enforcement of a bailout. that board would have power to cut deals to potentially negotiate pensions and restructure puerto rico's debt. millions of u.s. retirees and other investors could wind up taking losses because they own puerto rico's debt in form of municipal bonds. critics say the legislation could be used as blueprint to eventually help states swamped by debt like illinois and new jersey to avoid making good on their bonds and their debt payments. labor unionses object to the bill because it allows puerto rico to have a lower minimum wage and exempt from overtime rules. neil, as been pointed out, paul ryan, speaker of the house has crafted bill and won support from both democrats and republicans. whether he deliver as yes vote on that is yet to be seen. neil: he has thread the need
dell on that one of the adam, thank you very much. in europe, when it comes to the syrian refugees they all but stopped them. we meanwhile are entertaining record number of them. jessica vaughn, center for immigration studies. we're calling for 10,000 by the end of the year but could push it into next year. that is a lot and comes at a time when these protests and refugee, you know angry protests at that are getting more commonplace. what are we in for? >> well, there is a lot of uneasiness about the resettlement program that the president is trying to commish commish -- accomplish here, accepting 10,000 by end. year. he has gotten frustrated that the officials who are responsible for processing them, making sure we're not admitting people bent on attacking us. that they're taking too long. he told the agency to pull out the symptoms and increase the
pace of reef settlement. even though, a lot of communities are starting to resist. and you know, expressed great concern about how many are coming and whether or not, who they are, whether or not they're going to be a problem. even his top homeland security officials have said, that we simply don't have the ability, no information, no intelligence, no contacts, to know that the people who are coming in from syria are going to be okay, not to pose a threat. so, but the president is, you know, kind of brushed away those concerns and said it doesn't matter. i want us to admit as many as possible. it seems like he is trying to get as manies of them admitted as he can before the buzzer sounds on the end of his administration but this is the environment when mistakes are made and it only -- obviously not all of the syrians who are coming here will be a problem but it only take as few to cause
a disaster as we found in san bernanadino and other places so. neil: they're just playing the odds right, jessica? the administration said, overwhelming, saying 99% i think was figure, they're fine. so why should we penalize the 99% for the 1% we fear? just one of the 1% get in you've got problems, right? >> right. and of course everyone wants to be helpful. this is not our only option. there are other ways to be helpful besides bringing them here and imposing a challenge on american communities. we could help five times as many people if we help them in the region through international efforts ongoing there. we're, by plucking out just a few lucky people to come here and not really knowing who they are, but isis is certainly trying to exploit the refugee resettlement process. it told us that and others as well. that's risky.
it is this environment where the officers who are screening are being told to do it fast, hurry up, full throttle, full speed ahead. that is when mistakes are made. neil: absolutely. >> that is why we should be concerned about this. neil: i should give you credit, you were warning people about this before people were aware of that. i want to thank you. jessica vaughn, director of center for immigration policy. we're watching hearing to help fix tsa lines, not enough to help you if you're traveling this weekend but they have some interesting ideas.
airport lines ahead of this weekend's memorial day vacation and summer travel season. peter neffenger told congress in the short run the tsa will add 800 more screeners to help reduce wait times. keep 1600 it planned to cut. begin offering a real-time wait notice through its, at the tsa app, my tsa app and will test an automated bin-moving system. tsa has to address longer term reforms. here is what he said. >> i direct ad fundamental review of the staffing structure of our screening operations. we must match operational capacity to demands and projections of real screening volume. we're continuing to work closely with the department and congress to adjust our appropriations to allow to us match resources with mission demands. reporter: tsa blames long lines on more travelers, fewer tsa workers, tighter security after terror attacks in europe but critics blame them on tsa mismanagement and bureaucracy. neil, back to you.
neil: they are still protesting in chicago for doubling the minimum wage. how far and how long does this go on. kennedy, what do you think about what's going on there? >> i think you are seeing the children that bernie sanders has birth throughout this campaign and it's easy to understand why people would want to make more money. you understand people who are working in places like mcdonalds. they want to make more money. it's really tough, specially to raise kids in a bad economy where you are making 7-$8 an hour. understandable, however from the business point of view if you give everyone that wage, a lot of businesses a are going to go
out of businesses, not places like mcdonalds but it's ultimately going to affect prices and people are going to turn in robots in short order. neil: a lot of them have. we have one worker who was telling jeff flock, kennedy, that people value people, they still like the good morning with their cup of coffee. i'm not so sure depending on people in the morning, they just want their coffee? >> fast food, they want their food quickly. it's in the name. i don't necessarily go to old mcdonalds to have a ho-down with some of the people that are helping with customer service. neil: very rude to people. >> very rude. neil: in all seriousness, i wonder where it all goes, it happens at the same time bernie sanders were making similar remarks about disney on that it's a rigged system that workers there are similarly
screwed and even though many of them are paid well, north of the minimum wage. where is this going? what's the trend? i can kind of see it. >> bernie sanders thinks he's creating a feeling, if you pay everyone $15 an hour that's what anyone will ever make. you will see younger minority employees really shoved elbow out of the marketplace and it ends occupy hurting the people. it's supposed to help. so you're going to see great e unemployment and lack of participation in the labor force because of regulations like this. neil: i know you are younger, you saw the study that came out that shows a record number of millennials living with mom and dad, a little too close home for me so i won't preach here, this is the type of stuff that keeps him at home with mom and dad and will keep your darling daughters at home with you and your
husband for decades to come. >> yes, i love them right now, i love having them at home, they're quite young. they're still in elementary school. believe you me, by the time they get to high school, my husband and i are going to move to the most uncomfortable place to sleep and inhas been it. so hopefully that won't happen to us. neil: i don't believe that. underneath the libretarian exterior is a -- >> yeah, baby. neil: love that woman. love that woman. another 166 points. even it is inclined, these guys seem to like it and it's a trend of light. trends can change. you know the drill. it's a snapshot, it's a moment, one snapped it's shot. you know the drill. we step back and look at the
overall picture which is looking -- no one seems to know but today they are optimistic for today. trish regan back to you. trish: i hope you love me too. donald trump said to speak at a rally in california. this is the state department inspector unveils a bomb shell report. hillary clinton is on -- did not follow the rules for record-keeping during her tenure as secretary of state. flagrant disregard for the rule. sanders supporters call for the head of dnc to resign. i'm trish regan, the independent watchdog critical of hillary's aid that didn't get approval, and if tried, she would