tv Maria Bartiromos Wall Street FOX Business April 11, 2021 7:30am-8:00am EDT
taxes, you still have to make that deadline. jack: great news for procrastinators like me. check out this week's edition at barrons.com. don't forget to follow us on da >> from the fox studios in new york city, this is maria bartiromo's "wall street." maria: happy weekend, everyone. welcome to the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. a big, jam-packed program beginning with the robert kaplan on the pace of america's economic recovery. then the ranking member of the house ways and means committee, kevin brady, responding to president biden's invitation for republicans to help with tax and spending plans. and then georgia governor brian kemp is fighting back against
corporate hi hypocrisy. but first, take a look at markets, the federal reserve minutes from march showing plans to keep rates at low levels. they are expected to remain near zero through 2023 to help boost the economic recovery. joining me now is the ceo of the dallas federal reserve, robert kaplan. thanks very much for being here. your assess assessment of where we are in this economy. a what's your standpoint in terms of how this recovery is performing in. >> as we get better grip on the virus, accelerated vaccinations, we're seeing mobility and engamement improve. we haven't turned the corner yet in that we've still got extensive spread in parts of the country, but we can see the light at the end of the tunnel.
our forecast for the year is gdp growth in the neighborhood of 6.5%. we're aware that some private forecasters are forecasting more aggressive that that, but we think unemployment will continue to drift town as we continue to reopen. it'll drift down approaching 4 president this year. maria: yeah, we've seen those great jobs numbers in the last month and continued signs that things are moving and progressing well. robert, where do you see the growth coming from specifically? if you look out at the industries, i know you speak with a lot of business people, managers, employees and businesses, so you have a real firsthand assessment of what they're seeing on the ground. where do you expect growth to come from in this economy in the next couple years? >> so the big rebound this year will be the person-to-person service industries that have
been depressed, we're seeing glimmers of that now, but we think you'll see that more extensively through the year. and there's a pent-up desire to spend, but particularly on services and experiences. people have been spending on goods, and it's not to say there can't be more goods spending, but what there's a pent-up desire to do is spent on services the other thing is an explosion because of the pandemic of data usage and acceleration of consumption of semiconductors. and this is one of the reasons why you're seeing these price pressures and supply/demand imbalances. maria: how significant are those price pressures? are you worried about inflation and those hints of inflation perhaps moving the fed soon or than many expect in terms of changing policy? >> so if you look at 2021 --
that's right -- i'm expecting we're already seeing a surge in prices. i mentioned semiconductors, wood products, packaging products, food items across a number of industries x. so when we look in this summer year-over-year price increases, they're going to look very elevated. the issue is, and in my conversation with businesses, my question is will we have more than a surge this year, will it carry through the year-over-year price increases? and on that, businesses are more kept call, and i'd say the jury is out on that question. maria: president kaplan, we're talking about an economy that is, hopefully, coming back to normal. there are still areas that are completely closed. look at our schools. many of our schools remain closed. parents watching this program are, you know, frustrated that they had to leave the work force, the wife had to leave the work force, more women than
34e7b leaving the work force during this pandemic. i know skill sets and skills training has been very important to you over the years. we've talked about this before. what can we do to insure that our students are best positioned? how significant will it be for those kids that lost a year during virtual learning which many people feel just wasn't up to snuff? >> yeah. so you've touched on a number of things i'm watching and worried about. one, high school-educated workers who don't have a skill have suffered worse in the pandemic. skills training is critical for them to get back into productive jobs. and many of those workers will be able to get employment, but it may be a part-time job or two part-time jobs, and then ideally they'd go for skills training while they're in those jobs and then get a more high paying job. we're noticing a
disproportionate drop in enrollment in junior colleges and skills training this year. so this is going to have to be rectified. you mentioned women, this is why reopening schools in person certainly by the fall and access tocare childcare is going to be getting women, working women, mothers back into work force. maria: what are the headwinds from earnings? we heard from jpmorgan ceo jamie dimon this week, and he was predicting a very strong backdrop going into 2023. are there areas that you're worried about that could represent a head headwind for what appears to be a very strong recovery? >> yeah. i'm hearing from businesses and seeing pretty much across the board you're going to see a strong recovery. the only question how much of it goes to more goods spending, which has already been strong,
how much of it instead is a consumer shift to much more increases in services, how fast can we reopen person-to-person contact industries. that's more of the question. but i'm getting more and more confident we'll have strong across the board growth as we weather this pandemic and see greater reopenings. maria: robert kaplan, it's always a pleasure to talk with you. please come back soon. thank you, sir. >> good to talk to you maria. maria: robert kaplan. fighting back against corporate hi hypocrisy and false statements from the president, georgia governor brian kemp is responding to the woke mob. but first, president biden says he is open to negotiating a lower corporate tax hike to pay for his more than $2 trillion spending plan. is anybody buying it? i'll b cell phone repair. did you know liberty mutual customizes your car insurance so you only pay for what you need?
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♪ maria: welcome back. president biden now says he's willing to negotiate with republicans on a tax plan to pay for his massive $2 trillion spending plan. watch. >> i'm going to bring republicans to the white house. i invite them to come. we'll have good faith negotiations, and any republican that wants to get this done, i invite them. >> mr. president, are you willing to go lower than the 28% corporate tax rate? >> i'm wide open to, but we've got to pay for this. there's many other ways we can do this. but i'm willing to negotiate that. maria: house ways and means committee ranking member, one of the architects of the 2017 tax cuts, kevin brailledty is with us this morning -- brady is with us this weekend. thanks very much for being here. you just heard president biden. what do do you make of this?
are you buying this? he wants to negotiate, he's ready to listen. wide open. >> well, i am a little surprised because it's been very clear from the white house, certainly democrats in congress, they have no interest in working together with us. i will always sit down with this president, but i have to tell you, what he's failed to explain is what's wrong with the 21% rate? that rate jump-started our economy, leapfrogged america to the most competitive economy in the world. we saw higher, more jobs, record level paycheck growth. we saw a giant sucking sound of new r&d investment in jobs coming back to the united states, and we ended the signature failure of the obama/biden administration which was so many american companies either moving overseas or being acquired by foreign companies. what is wrong with having the most competitive economy on the
planet? if. maria: i'm really glad you said it that way, because i really enjoyed the op-ed in the journal by phil graham. biden aims at profit, hits workers. and he went through every impact of the 2017 tax cuts, and here's what really stands out. the poverty level was the lowest in more than 50 years for children at 14.4%, the lowest ever for individuals, 10.5 percent. for families, 8.5%. and unmarried women, 22.25%. for the first time in 50 years we actually saw the poverty rate go down as a result of that legislation, congressman. does all of this reverse now that we see taxes go higher in. >> absolutely does. maria: why doesn't our sitting treasury secretary, janet yellen, agree with that? she's out with an op-ed in the
journal, she's arguing that the proponents of the tax cut legislation of 2017 have lots of promises, but she writes that it actually hasn't happen, congressman. >> yeah. i fundamentally disagree with that op-ed. every key point, i think, was misguided. she claimed the tax cuts put american companies at a disadvantage. just the opposite. we became more competitive both here in the broad as well. she says it moved companies offshore. just the opposite. we stopped dead the inverses that were occurring in america and companies moving overseas. we saw just the opposite, as i noted, with jobs, manufacturing returning to america for the first time in a long time, record levels of investment in research here in america. we ended businesses exporting their profits and and importing
their deductions. and their, in my view, their tax proposals coupled with what we've seen out of the senate will trigger a second wave of u.s. companies moving overseas their jobs and research. and the way they have designed it, it actually makes it better for a foreign company to operate in america than an american company to operate here at home. is so i think the whole op-ed was inaccurate and certainly this policy is very dangerous to the blue collar workers. maria: is there anything you can do about it? you and your colleagues are in the minority. you've seen president biden push through things reconciliation, the $3.9 trillion mass i -- 1.9 trillion massive spending package, that got through reconciliation. now he's talking about a package, he's calling it infrastructure, a lot of people are calling it the green new
deal. are they going to push that through reconciliation, or will you be able to debate these things? >> so that's a great question. maria, i think they're going to try to jam this through. and as you said, it's more green new deal than infrastructure. it's all taxes which will me gate any economic growth -- negate any economic growth from infrastructure. all republicans will be opposed to these economic taxes on workers and on families, no question about it. question is, what about those 23 or so so-called moderate democrats that the u.s. chamber of commerce endorsed as pro-business democrats. maria: now there are expectations for growth in 2021, but as these tax increases hit, you wonder how much dampening effect that could have on an economy that could grow between 6-9% in 2021. >> there's ono question it's
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to smarten up. maria: wow. president biden making those incredible false claims against georgia's new voting law. i asked georgia governor brian kemp about this and the growing number of companies speaking out against that law. >> well, number one, president biden's lying to the american people and to our own citizens here in georgia. i just laugh to myself, maria, when he's talking about we need to smarten up. look at his own state of delaware. they actually call your name out before you go vote in the precincts so people can challenge you. could you imagine if we had that in our law? i mean, the world would be falling apart by now. he needs to focus on his own state and not worry about georgia. we're doing away with the signature match process and implementing voter id on absentee ballot, we're securing
ballot drop boxes that were never in the law before this year. we're making elections officials count continuously until every vote is counted so you don't have disruptions that brings doubt. and, you know, it's just good common sense. election security, making it easy to vote but hard to cheat. maria: yeah. and they're talking about making it tougher for african-americans to vote. the corporate ceos are. and there's a lot of conversation about that. leave it to corporate america to move an event from a state which is 60% white the a state which is 80% white. atlanta is 52% black, denver is 10% black. colorado requires voter id. how is it possible that these titans of industry didn't even read your new law and just came out and rolled over for the progressive mobs? >> yeah, that's exactly finish they folded like a wet dish rag
are to the cancel culture. i mean, it is woke in real life, and americans and georgians should be scared. what are they going to come after next in -- next? what value do you have that they're coming after next? are they going to come after your small business next? because that's who's getting screwed here, maria. it's the small business people that have have profited from the all-star game. and and now moving to colorado, they have a voter idea. president biden's been talking about how bad voter id is. he did the pregame for the ncaa championship the other night that was all held in indiana. that's the birthplace of photo id. that's where the first lawsuit that was upheld that says it's okay to have a voter id. most americans and most georgians support this. this is so hypocritical x. to
your question, it is, it's amazing that ceos that have government affairs teams that knew what was in this bill, that were fine with it, they didn't even bother to check with them because they got pressured from the woke. maria: i mean, what's wrong with having a voter id? it's just ridiculous to push back against that. and you just mentioned, i think there's a study out that 70 plus percent of the african-american community believes that voter ids should be used. governor, i want to go back. tell us why you felt the need to change any law in georgia. why did you feel the need to come up with this new law in the first place? talk to us about that. >> i mean, we had a 351% increase in absentee ballots by mail, and the signature match process just did not work very well. you can't take the time to really scrutinize that. it's antiquated, it takes a long time to process, long time to
count, and that's the reason we put the voter id on there, to make it more secure and also to speed the process up. maria: yeah. i mean, the more president biden talks about it, the more falsities the public is getting. and that's triggering behavior. do you think president biden should apologize to the people of georgia and the american people for, you said lying. >> yeah. well, what president biden, stacey abrams, all these other, you know, ceos of these companies that are in new york and new jersey and former ceos that are pressuring people like delta and like major league baseball, coca-cola and others, they should be truthful with people. they should look at their own damn laws in their own states. they are more restrictive than ours are. this is so condescending. and, look, this is all a power play, maria. look at the long game of the democrats and joe biden. this is all about h.r. 1 and
s.r.1. they want a federal takeover of election ares in our company. that is an unconstitutional power grab. our founders set it up for the states to run elections to prevent foreign interference. that's the way the constitution says, and that's the way it should be. maria: yep. >> make no mistake, these corporations will say, hey, we'll give you a pass on this if you come out and support this federal legislation, and we have got to continue to spread the word to the american people. we need to unite and fight back against this. maria: my thanks to georgia governor brian kemp. all right that's a fifth-floor problem... ok. not in my house! ha ha ha! ha ha ha! no no no! not today! ha ha ha! ha ha ha! jimmy how happy are folks who save hundreds of dollars switching to geico? happier than dikembe mutumbo blocking a shot.
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arizona attorney general mark brnovich. join us sunday on fox news 10 a.m. eastern live. plus every day, weekdays 6-9 a.m. eastern fox business, join me for "mornings with maria." ♪♪ >> hi there, everyone. welcome back to kudlow. i am larry kudlow. thanks for being here. the threat rapid overspending and higher taxes from joe biden's large in the background. the biden white house proposed increasing corporate tax rate from 21% -- 28% as a key source of revenue for his so-called infrastructure plan. i'm glad you call it revenue. the president himself yesterday opened the door slightly to lowering the 28% tax hike to 25%. >> i'm willi