MARIA-02
Earnings Today; Transition Begins; Big Win, Bigger Business; Global Markets
Rally; Trump's Economic Plan - Part 2>
Duffy, Cheryl Casone >
Rebelez, David Kim >
Hillary Clinton; Donald Trump; Economy; Technology>
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT-ELECT OF UNITED STATES: We have a great economic plan. We will double our growth and have the strongest economy anywhere in the world. I've spent my entire life and business looking at the untapped potential in projects and in people all over the world. That is now what I want to do for our country.
(END VIDEO CLIP)
BARTIROMO: Mr. Trump's economic plan includes the following. Eliminating carried interest in the estate tax. Making childcare fully tax deductible. Renegotiating NAFTA and rejecting the Trans-Pacific Partnership. He also wants to create three tax brackets at 12 percent, 25 percent, and 33 percent. I want to bring in Raegan economic advisor, Art Laffer and Steve Moore, Trump economic advisor. Two of the architects of Trump's initial economic plan.
Gentlemen, good to see you both. And congratulations to you both. Your team won.
ART LAFFER, RAEGAN ECONOMIC ADVISOR: Steve Moore deserves enormous credit. He was out there campaigning everywhere for Trump. He's just phenomenal.
BARTIROMO: And, Steve, not just campaigning but also communicating a message of his plan. Now, Donald Trump yesterday said that he is expecting to double growth. Can you really turn two percent growth into four percent growth in a short period of time?
STEVE MOORE, TRUMP ECONOMIC ADVISOR: They probably (inaudible) who's the expert on this. But, you know, I would just correct something you said earlier, you said we would -- I think you said we raised growth by 1.1 percent?
UNIDENTIFIED MALE: On top of our current growth.
MOORE: Yes. I think we could do better than that.
BARTIROMO: So you think you could do it double. How do you get there?
MOORE: Yes. I think we can get -- two percent is point more growth. I think we get -- one percent is point more growth from the tax plan just as Reagan did, Arthur. And I think we can get another percentage point growth out of energy production.
We can produce about $150 billion more coal, oil, and gas. It's been, you know, virtually shut down by a lot of Obama's regulations and we can get rid of those. So, Arthur, I think we can do what you guys do in the Reagan administration. I think we can get that growth rate almost double to what it is today.
BARTIROMO: Especially, Art, when you talk about rolling back regulations, right?
LAFFER: Yes. You know, if you want to do what Reagan did, we had six, seven, eight percent, nine percent real growth rates on a quarterly basis. Once the tax cuts through the factors. I don't see why you shouldn't do just as well as we did. Obama is a lot worse than Jimmy Carter. And you guys can really make it fly.
MOORE: Well, you know, there's an attitude out there among a lot of them more liberal economist and this has been the line for the last few years. You've heard this (inaudible) what do they call secular stagnation. This is the best --
(CROSSTALK)
MOORE: Yes, right. And I totally reject that, Arthur. I think we can get that. You're right. You know, I'm very -- I'm barely in these scenes as bullish enough. But you're right. You know, Raegan, I think there were quarters when you had eight percent growth under Reagan. Why can't we do that again? Just burst out of the gate with this economic growth agenda and see quarters of maybe six or seven percent and have a four percent growth path for the next four or five years.
DAGEN MCDOWELL, FOX BUSINESS ANCHOR: Reassure ideological conservatives that Donald Trump as president with the republican controlled house and senate that you're not going to spend money, recklessly. That you're not going to spend money to the point that you drive up our national debt even more than where it is. Because I think that's legitimate concern. Politicians. Now, Donald Trump isn't a politician or wasn't until the middle of last year. But they loved to spend money. And he loves to spend money on stuff like infrastructure.
MOORE: You want to take that, Arthur?
LAFFER: Yes, let me take that, Dagen. We have a real problem when we came in with Reagan. You know, if you have a welfare program when the economy is in bad shape, it's really essential for the families to have that. Once you get the economic growth going, once your two, three, four years into a huge boom, then you can cut it back. Because school lunch programs or a luxury not a necessity. So I would wait before we made a big attack and bring in spending down for at least two years during that growth. And then you can bring it down like that without hurting people.
MOORE: Yes. Arthur, I think that's exactly what, you know, we're talking about right now is really concentrating in getting the tax cut down for (inaudible) now, by the way, we are going to get rid of one of the worst entitlements of all which is ObamaCare. And this is a point that he made in the debate. And, you know, you protrude cost. We think we can reduce healthcare costs of ObamaCare by about 30 percent and cover everyone.
BARTIROMO: And who wants to replace it? What's the replacement?
UNIDENTIFIED MALE: Well, competition. Let people -- let's open the marketplace, right? So legalize all forms of insurance, so people can go out there and buy insurance and that's the way. You don't need to completely replace it. But gentlemen, I think the message is great. I loved his two economic speeches that he gave, especially in the Detroit, really turned around his campaign.
But investors are looking at this market and they're so much bullish sentiment. But can you manage investor's expectations? Because this just -- we're not just going to walk in.
BARTIROMO: Now, there is after all the hysteria.
UNIDENTIFIED MALE: Right. So, how long will this take? Help us manage expectations. Can we expect this within a year, two years?
BARTIROMO: Can you do it tomorrow?
UNIDENTIFIED MALE: Yes, exactly.
LAFFER: I'm going to quote Steve (inaudible) on this. He wrote about it with the Reagan stock market recovery. It was the greatest story never told. We had an increase in real values in the stock market from the beginning of Reagan to over 700 percent increase. That's the type of asset appreciation you really want in this world. And, Steve, you've been promoting that perfectly in this.
MOORE: I just have a problem with that because you look at what happened with the central bank here in the United States. They've inflated that significantly. That was Obama's only policies to create the wealth effect and that's why he did it.
(CROSSTALK)
MOORE: I'd say it hasn't worked. I mean, you know, how many times we've talked about this on your show, Maria? We've had, what? Seven almost eight years of zero interest rate policies from the fed. That's flooding the economy would cheat money. And that was their economic agenda and look what it got us. It's not growth, right?
MCDOWELL: When I say entitlements, so I mean social security and Medicare. OK. So I'm going to sit around four years and (inaudible) about doing something about it because Reagan had the attention and the guts and the power to do something about it.
MOORE: OK. Let me ask you. How many democrats do you think there are in congress, in the entire house and senate that will work with us to cut social security and Medicare?
(CROSSTAALK)
MOORE: Exactly. So until they get serious about (inaudible) we have some reform plans. And, you know, when you talk about social security with them, they only had one policy and you know what that is.
MCDOWELL: Expand it.
MOORE: Expand it and raise the payroll tax. We're not -- Arthur, we're not going to raise that payroll tax.
BARTIROMO: So you're going to be -- yes, go ahead, Arthur.
LAFFER: Let me speak, if I can. I've got a number of calls from democrats over the last two days saying they really do want to work with us on some of these policies. They understand -- they understand what you were saying, Steve, and that you're right. They really do.
MOORE: Sorry. I think you're especially right on the tax cut. I mean, remember, how many democrats did you get in the house with that Reagan tax cut?
LAFFER: Huge. We got -- we did the big one in 1986. We got 97 senators on our side. Only three against us.
BARTIROMO: Yes. Well, you're going to want to take advantage of the fact that you have both congress now to actually get as much (inaudible) as possible.
MOORE: I mean, look, you do need 60 votes in the senate. What are republicans at? 52 or something like that (inaudible) but, you know, so you -- but I -- look, I think we do the business tax cut. I'm going to make this prediction. I think we can get, Arthur, 10 or 15 democrats in the senate to go for business tax cut that brings (inaudible)
LAFFER: Easy.
MOORE: And then we use some of that money for infrastructure. That's a bipartisan --
MCDOWELL: People talk about that Chuck Schumer. Donald Trump knows Chuck Schumer very well from him being the head of senator here from New York for so many years? And I think Chuck Schumer specifically said ObamaCare, they should have focused on reviving the economy before they shoved through ObamaCare. So I think that there is at least some reality in his world in terms of how -- I know he is a left wing democrat, but you might disagree with me.
UNIDENTIFIED FEMALE: It's so easy to do that (inaudible) look at Donald Trump doesn't care about poor people and for some reason people don't push back on that.
LAFFER: Can I make a point to Dagen?
BARTIROMO: Go ahead.
LAFEER: Chuck Schumer voted for the `86 tax act which cut the highest rate from 50 percent to 28 percent. And it cut the corporate rate from 46 to 34 -- voted for it.
BARTIROMO: He gets it. He understands the impact of lower taxes.
MOORE: The democrats because they thought Hillary was going to win. So their line for the last six weeks has been republicans have to cooperate, we have to get things done. Let's see if now that Donald Trump is the president, whether democrats will work with it. But I think they will. Look, I think out of the gate some of these things like the tax cut and reforming ObamaCare and American --
UNIDENTIFIED MALE: Democrats are going to come along because they're going to want to ride the coattails of this booming economy and take credit for it.
MOORE: Not only that. Not only that, like, there are -- how many -- I think we're looking at these numbers, Arthur, there are a lot of democratic senators up for reelection in two years.
LAFFER: Twenty-four.
MOORE: Twenty-four.
MCDOWELL: Be careful because you say infrastructure spending and democrats love spending another people's money.
MOORE: Well, republicans do too.
BARTIROMO: (inaudible) are you going to be the chairman of the economic team?
MOORE: I really actually don't know. Whatever Donald Trump wants me to do, I will do.
BARTIROMO: But you're expecting to get a role?
MOORE: What I want to do is help him get this tax cut past. The way you did, Arthur, in 1981.
BARTIROMO: Art, what about you? Are you going to go back to Washington?
LAFFER: Maria, come on, I'm 76 years old, for God's sake. I've got three great grandchildren. I am having so much fun Steve Moore, Larry (inaudible) make the world a much better place. I couldn't be happier than that.
UNIDENTIFIED MALE: I don't know (inaudible) we want you to help this economy.
BARTIROMO: But we love it. We'll be watching. Art Laffer, always a pleasure, sir. Thank you. Steve Moore, you know, always a pleasure. Good to see you, gentlemen. Thank you.
Coming up, GoPro going down this morning. Why its drone recall is not thrilling investors of the action camera maker. That's next. And then could have lost your chance to get your hands on great news. Trump's iconic red "Make America Great" again, hands -- the hats are sold out. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: We have tragic and breaking news report. A police officer shot dead, another is wounded outside of Pittsburgh right now. Cheryl Casone with the story. Cheryl.
CHERYL CASONE, FOX BUSINESS ANCHOR: Right, Maria. We are monitoring this news conference out of the area. Those officers were responding to a domestic violence call around 4:00 A.M. this morning in Canonsburg. That's about 20 miles southwest of Pittsburgh.
Well, we've got some new details from that news conference. The suspect had fled the scene. Investigators are now telling residents to stay in their homes. Schools are delayed as the search for that shooter is spreading out right now across the area up and again, yes. One of the two officers that was shot has now just died. We're going to continue to update the story as we get more information.
Well, another headlines this morning. Wildfires are burning across the south and prompting health warnings. There is a smoky haze hanging over Metro Atlanta. Gusty winds from the north are bringing smoke from fires ranging in the north Georgia Mountain into the capital and to the suburbs leaving some reduced visibility.
Over in Kentucky, official's issues a smoke inhalation advisory as those forests are expected to continue burning for several days. High winds also creating dangerous conditions in Tennessee and North Carolina.
Well, another setback for GoPro. To tell you about. The company is recalling its first drone after a several lost power while in flight. The GoPro isn't saying what the problem is. What the Karma drone -- there it is. The issue refund for 2,500 drones that had been sold since the launch just two weeks ago.
Now, this recall coming after GoPro said last week that production issues with delayed shipments of the Hero 5 camera. The stock down more than one percent of the free market down 42 percent, we should say for the year.
And Donald Trump didn't just win the White House. His books are winning new fans. According to Amazon, "The Art of the Deal," jumped to number 15 at one point and it's been sitting around 1,107. And then its campaign were great again soared to number 84.
And also, Maria, we should point out, and you just said it before I went to commercial break, folks could have lost their chance to get their hands on greatness. The red "Make America Great Again" hats sold out. They've been flying off the shelves. Americans are snatching them up. They just -- they want the hat, so.
If anybody has one hold onto it, because it's going to be worth something on eBay.
BARTIROMO: It's a cool looking hat, I sure is. Thank you. Kevin, what do you think about this rush to get people's hands on Trump merchandise?
UNIDENTIFIED MALE: I mean, this just goes back to the excitement about what he's doing. And think about the voter turnout for him and everything he overcame, whether it was the media that is the political clan. I mean, this just goes back to it's really resonating with people. And so, you know, I don't blame them on these hats getting up.
UNIDENTIFIED FEMALE: Yes, remember when he announced he was running? Everyone was wearing one of those hats. It's been all over the place.
UNIDENTIFIED MALE: It's a badge of honor too now. People are glad they've won. They can wear it with pride. So I think it's a great thing showing that this country is excited about the next four years.
BARTIROMO: It's become iconic.
UNIDENTIFIED MALE: Yes, it has become iconic. It's true. And I will admit, I have one. I won it at a bowling tournament, so it's kind of funny.
BARTIROMO: I have one too.
UNIDENTIFIED FEMALE: I wonder if you wear one at inauguration.
UNIDENTIFIED MALE: I look so goofy in it.
BARTIROMO: No, come on. Bring it in.
UNIDENTIFIED MALE: I'll bring it in.
BARTIROMO: Coming up, a sweet tribute to America's heroes. How IHOP is honoring and helping our veterans. And they brought those pancakes with them today. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. The international house of pancakes, better known as IHOP is honoring America's heroes tomorrow, Veterans Day in partnership with the foundation Children of Fallen Patriots. Select IHOP restaurants across the country will help raise funds to provide college scholarships for more than 20,000 military children who have lost their parents in the line of duty.
Joining me right now is the President of IHOP Darren Rebelez. Darren Rebelez along with the CEO and cofounder of the Children of Fallen Patriots Foundation, David Kim. Good to see you both. Thank you so much for joining us.
Darren, what a great idea to you both. Thank you for being here to tell us about it. What can you tell us about this program?
DARREN REBELEZ, PRESIDENT OF IHOP: Well, this is our first year working with Fallen Patriots to really help support our veterans and IHOP for years has really been taking care of our veterans on Veterans Day. This year as in many years past, we're offering all veterans who come into any of our 1,700 restaurants around the country. Free stack of our red, white, and blue pancakes. So it's our world famous buttermilk pancakes with strawberries, glazed strawberries, whip cream and blueberry compote.
And this year, we're taking the step further partnering with David and Children of Fallen Patriots to try to help raise money to take care of those children who lost a parent in the line of duty.
BARTIROMO: It's so important, David, and I know that your foundation and its mission is to provide college scholarships. It has a lot of success story. In fact, you currently have served 680 students to date. Tell us about some of those success stories.
DAVID KIM, CEO AND COFOUNDER OF THE CHILDREN OF FALLEN PATRIOTS FOUNDATION: Sure. Well, there`s a whole bunch of kids that we've just done wonderful things. Elizabeth O'Hare is one of our students and her sister Katie O'Hare, they lost their dad in a navy training accident. He was a pilot. They're going to College of Charleston. Elizabeth wants to be a social worker. She's bio chem major now.
So they're just really awesome kids. There's another one Danny Irizarry who lost his dad in Iraq. Prior to that, he lost his mother with cancer and now he's an NYPD police officer, nice shift in the Bronx. So really wonderful people.
BARTIROMO: That is a hard story. Do you feel like you have been able to get the messaging out effectively enough to raise awareness and make sure people understand what you're doing and where this money is going?
KIM: We sure do. Yes. I mean, we found everyone across the military, across the country really supports the military wants to find a way to help us worthy families who really given the most of all of us for our country.
BARTIROMO: And, Darren, I feel like IHOP has this huge sort of opportunity to partner with lots of charities, because IHOP is an American staple. And depending on who you partner with can really do a lot of good.
REBELEZ: Well, that's right, Maria.
BARTIROMO: You've done other charities, right?
REBELEZ: We do a number of them. And our national pancake day is really our biggest fundraising event of the year. Where we're partnered with the Children's Miracle Network, the Leukemia and Lymphoma Society and the Shriners. And over -- since 2005, we raised over $25 million for those causes. Last year, we partnered with No Kid Hungry to raise money for Children to stop childhood hungriness and of course this year with The Fallen Patriots.
BARTIROMO: Let me ask you about the election and sort of how this changes things. David, do you get a sense that the new administration, for example, will be more focused on veteran? Donald Trump has spoken a lot about the veterans.
KIM: Well, he genuinely seems to be supportive of military which is a good thing for military families in general, I suppose. But we find that we really take our cue from the military at Fallen Patriots and since we try to stay completely political. We find that our support is really bipartisan. People all across the political spectrum. We just want to help these military families.
BARTIROMO: I wonder if it'll increase even more so right now given that -- it feel like it has been one of Donald Trump's pet peeves the way veterans had been treated. What about you, Darren, any change that you're expecting from a business level with a Trump administration?
REBELEZ: Well, it's a little bit harder to predict at this point obviously. But certainly having a business person as the president of the United States, we're hopeful that he has a little more of a pro business view of the world. And there's issues that are really important to our franchises like the minimum wage, Affordable Care Act. And just the overall regulations that are impacting our small businessman that -- our franchisees and represent the IHOP.
BARTIROMO: That's what we talk about all the time. So something like ObamaCare. If it were repealed or replaced, if it wasn't as expensive as it is, would that move the needle in terms of your business?
REBELEZ: Well, certainly help our franchisees. They're really struggling to be able to absorb all of these additional expenses on the business. And, you know, with an average IHOP franchisee has about five restaurants. So these are really large corporations. They're small entrepreneurs and they're trying to make ends to me. Then so anything towards that would be a set for the right turn.
BARTIROMO: It's a great point. I know we're talking about fallen heroes really, David. But in terms of veterans in general, when they come back from war, when they come back from their service, how easy is it for them to get a job?
KIM: Well, I think it's -- there's been a lot of support that's come out of the wars and the folks across the civilian world that want to help them, so I think that's been helpful. I think there's been an increasing recognition in the business community of the skill set that military people can bring, even though it's not directly applicable, the leadership, the ability makes --
BARTIROMO: Just the plan, just the point skill set.
KIM: The team ethic, all of that is very transferrable.
BARTIROMO: Great to see you both. Thank you so much for joining. Darren, David, thank you. We also had to give a shout out to the U.S. Marine Corps celebrating its 241st birthday today. Thank you. Marines, once a marine always a marine. Shout out to you and thank you for your service.
Coming up, Donald Trump's victory reminding the world of Britain's exit from the European Union. The parallel is next.
(COMMERCIAL BREAK)
BARTIROMO: Good Thursday morning everybody. Welcome back. I'm Maria Bartiromo and it is Thursday, November 10th. Your top stories 8:00 A.M. on the East Coast.
END
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