tv WSJ at Large With Gerry Baker FOX Business August 14, 2021 11:00am-11:30am EDT
fox news channel 10:00 a.m. eastern live for "sunday morning features" join us with exclusive interviews with jim jordan, senator marsha blackburn, ken paxton and the president and head of r&d for my dear another vaccine maker stephen, my special guest start smart on fox business every week day six to 9:00 a.m. eastern with "mornings with maria" we hope you'll start your day with us every weekday on fox business. that will do it for us right now, thank you for joining us have a great rest of the weekend everybody. i'll see you next time. ♪. gerry: hello and welcome to the wall street journal at large i am james freeman filling in for gerry baker. a much bigger government and who's going to pay for, president joe biden and congressional democrats are working to enact a $3.5 trillion spending increase financed in part by higher taxes despite vice president kamala harris
assuring us that the unfettered spending of the left will not impact middle americans. >> and suggest that we are clear, we are not going to raise middle-class taxes to pay for. because that's what the president promised and that's what we must deliver. james: we'll see about that the $3.5 trillion spending surge will land on top of another pending $1 trillion spending increase described as infrastructure and finance mainly by accounting gimmicks and all of this is on top of the nearly $2 trillion spending increase described as covid related but enacted in march. mitch mcconnell reacting to these proposals i accusing democrats of being reckless to government spending. >> the policies they want to put behind the budget resolution is like 70 walked across the rotunda to the house and handed it to the squad a pin and piece of paper. james: were asking who needs all
this government because we said a unique moment in u.s. history usually when politicians propose massive expansions of government is to address a faltering economy which the politicians rightly or wrongly blame on a market failure. but the u.s. economy has been rebounding strongly for an entire year, for as long as the government has been keeping records, there has never been as many job openings in the united states is there are right now, even more than the pre-covid trump years. yet washington is constructing an massive federal invention. no surprise given the principal architect of the spending surge is senate budget committee bernie sanders a devout socialist. whether americans are working well or not he does not like them and replaces them with government. why are so many democrats in congress going along with this experiment. the threat of washington printing and spending dollars is white americans are expressing great concern about the economy
and a new fox pole. despite a roaring job market and a roaring stock market, the impact of washington's money printing is not a threat with annual inflation running about 5%. joining us not to talk about a fox news contributor liz peek and former senior advisor under then vice president joe biden, thank you for joining us. >> thank you for having us. >> the question of why do we need all of this federal intervention, it's a good economy, good job number last month, more open jobs of people who are unemployed and you go to the bernie sanders agenda, every industry he say needs a big federal six, agriculture, technology, transportation, manufacturing, energy, obviously healthcare, education, it's all the american economy broken?
>> not all the democrats, i know this is been a really disappointed. but i actually do not agree with bernie sanders and all of the spending. it needs to be done wisely and it needs to be done strategically and i think it infusion of capital and yes, there are many areas where we need to improve but i don't agree with mr. sanders, i never have and i don't believe you bring people down in order to raise people up. james: i'm sorry before we get to liz do you think the three and half trillion aspiration for bernie sanders and debbie much smaller? >> i do believe it'll be much smaller, obviously both know very well this is the very, very beginning of and argue his process and the legislative development process. committees will be submitting their data and their details for what they want in this and that just begins a debate of negotiation and compromise and
we just found infrastructure bill. james: liz, this is bound to concern people. >> i think it is really a mystery why we have turned over economic programs to bernie sanders, remember it wasn't that long ago when democrat leaders fell that he was way too far left and way too progressive to appeal to the average american voter, or even the average democratic voter, only 15% of democrats are very liberal that really suggested a tiny fraction of the overall electric but was curious to me senator durbin tweeted out about the 300, 3.5 trigon dollar package that it's necessary to rescue america's economy, rescue from what we have over 10 million jobs available but the growth in the second quarter rose about 13% of the economy gets back to normal
and might take an assessment that joe biden deserves credit for that but whatever, give them credit for, that's fine. the answer is were in pretty good shape and the only thing causing heartache right now is that we had artificially created labor shortage because of the unappointed benefits because of the child tax credit because of the eviction moratorium, all of these things that are basically disincentives of putting america back to work and we still have worker participation, a shorter's of workers going up over 4% which is feeding into now what the leading economists on wall street are beginning to assess as a wage price spiral this is not a time right on top of a red-hot economy, $3.5 trillion the talking about raising taxes in order to pay for it that will further dumb dumb growth and make the average worker because some of those tax
increases will be on corporations, workers no and polling shows workers know that those taxes will feed to lower wage growth in the future, there is nothing good about this. i'm honestly shocked that so many mainstream democrats have taken this up and decided this is what this country needs right now. >> we want to hear more from low and you liz in a moment. were gonna talk about how we can pay for all of this. please stay with us. >> were happy the democrats passed the bernie budget at the 5.5 trillion not 3.5 it's 5.5 to get a raise everybody's taxes. i'm morgan, and there's more to me than hiv. more love, more adventure, more community.
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james: back with liz peek and mobile look, how to figure out how we would pay for the bernie sanders to bring private expansion, obviously it's gonna be debt or taxes and it looks like this is going to be financed with about half of each on the tax side, i know the promises that the democrats are only going to hit rich people $400,000 a year and out. a big part of this is going to be taxes on business and we just talked about how bernie think so many markets are broken and they need government intervention the idea that we will fix businesses by taxing them and how you tax companies without that affecting their employees. >> to be honest with you i
expect that we will have many republicans in the united states senate sitting at the table just like they did with infrastructure, i anticipate there will be a lot of compromise so i don't think i want to get in to scare everybody tactics of the past, the one thing that i do know for sure i know joe biden i worked for joe biden and he's a man of his word and he promises nobody after $400,000 in income would be taxed, i believe he will stand by that, that's all i feel confident about at this point only because it's too early in the process. james: window rub republican support of the resolution i don't know where those boats are going to come from. i think this package would have to change a lot, but talk about what the anticipated with the current proposal to pass the senate with a lot of revenue coming out of u.s. businesses probably an increase in the corporate tax, what does that do
to workers when businesses are paying a higher income tax rate. >> that's such a layup, what we know when you hike corporate taxes wage growth slows down. just generally speaking when you give more and more of the economy to the public sector to government with state and local taxes and with our current budget expectations that this thing passes were equivalent to the more socialist companies in europe in terms of government occupying so much of the gdp, what does that mean it means less productivity, productivity is key to wage growth, give me two recent and up with less wage growth which is not good for american workers. i think the other thing obviously when you are shoving this much more money is not called stimulus because her gonna tax the heck out of everybody, nonetheless it's a lot of money going into the economy on top of trillions
already dedicated to stimulating the economy, you have inflation which is running considerably above wage growth, everyone in the country is suffering higher prices and with the most recent report on the producer prices, wholesale prices, it looks like that is not going to abate anytime soon. this bill in my view will only make worse what you already underway which are most definitely hurting american workers. >> that spending is going to be financed in large part by the federal reserve printing money to buy treasury debt. that means inflation. >> i'm not suggesting anybody that neither of you, nobody. there's two types of people that annoy me liars and hypocrites, all of the people worried about the debt when for four years donald trump increase our national debt by $7 trillion, i say let's move on to the next
subject. james: i was raising complaints. >> my response to that, i think you're totally right to bring that up but the economy under trump when he took over had been limping along at a very low rate of growth for a long time. what he did was stimulate the economy, attempt to stimulate the economy by giving more money back to the private sector, that's what we thought we saw businesses begin to hire at a more rapid rate in rages go up at a rapid rate and basically the economy began to grow more quickly because of tax cuts. it's a really different thing now and in the second quarter yet 13% nominal growth rate of gdp. we don't needed a stimulus. >> i will condemn president biden for leading that over. james: that failed to restrain spending and speaking of
hypocrisy were to get into that and the next segment. president biden's climate and boy not exactly following his own advice. with you what john kerry did despite the un calling climate change a code red emergency. >> it's only twice for somebody like me who is traveling the world to win this (struggling vehicle sounds) think premium can't be capable? think again. ♪ (energetic music) ♪ ♪ ♪ ♪ ♪ introducing the first ever at4 lineup. premium and capable. that's professional grade from gmc. my name is douglas.
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james: do as i say not as i do seems to be the mantra of democrats emphasizing the need for climate action given a united nations report john kerry the climate avoid tweeting out that we cannot afford for the delay in addressing these issues but according to records obtained by fox carries private family jet tubs admitted 30 times more carbon in 2021 than
the average vehicle does entire year, that doesn't seem very green and at a global scale president biden is asking american taxpayers, consumers and producers to make and norma sacrifices to reduce oil use but at the same time as encouraging the opec cartel in countries like russia to pump more oil liz peek and mo are back with the climate hypocrisy. break this down we have a policy in washington, the white house congress saying we need to reduce oil use in oil consumption in the white house also saying to saudi arabia, russia, et cetera please put more oil the prices are too high. >> this is pretty simple in my eyes i believe the white house is doing the correct thing and asking opec to increase reduction. during the pandemic production was decreased by 10% so now that we are in recovery and very
strong economic recovery not just the united states other parts of the world as well i think the white house is correct and asking opec to increase reduction to get back to prepend him a reduction level so the consumers of the united states and other places around the world are not having to pay and like los angeles $5.5 per gallon unprofitable. james: if you think this is an urgent need isn't that what you want higher oil prices to drive people to alternative energy? >> i think there's other ways to get to alternative energy. and i think that were headed in that direction. but until were there were going to have to have this continued reliance, that's our reality and while were there we need to do these kinds of efforts in the white house is doing and asking
for production let's bring the prices out of the pump. james: lizza looks like the president wants to settle americans with a lot of cost for this green energy transition, but he does not want them to be evident immediately because it threatens democrats at the polls next year, he doesn't want inflation right now, not yet and you're saying you have a new piece in the hill and you're saying saudi arabia and the other oil producers may not bailout the president they may not want to pump more even though he's asking them to. >> i think the worst thing that biden has done since he took office just to repudiate everything the donald trump did in one of the things that he did was extraordinary and put in place the abraham according which brought several of the goals nations into some diplomatic alliance with israel. it's an extraordinary
breakthrough that biden basically undermine from his first day in office by pulling away the arms sales that were promised to the uae for being in the alignment but also gratuitously insulting the crown prince of saudi arabia, he did that with no forward thinking at all just approved that he was not donald trump so he can get really tough with saudi arabia crown prince. two weeks later the crown prince decided no opec would not increase oil production and everyone expected an increase at that time in march and he vetoed it. now were going hat in hand to crown prince mohammed bin taunted insane my poll rating is declining because inflation is bad and gasoline prices are up 41% year-over-year, please increase oil output you're the guy that can make that happen what would you do if you were
him i don't think that's going to happen i think this is a humiliating posture on joe biden but in addition to that obviously the most ridiculous thing you try to clamp down on u.s. oil and gas production was as environmentally probably the best in the world in terms of our regulation that control omissions and turning to all these other countries who don't have those regulations to increase their output. what an incredibly abolished policy i can imagine worse. james: will see maybe bladder mere prudent the one who rescued joe biden from inflation, thank you so much for joining us today, we appreciated. coming up american express the next woke corporation
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james: this has been the year of woken week corporate ceos trying to signal virtue by endorsing leftist politics and attacking republicans. now we have a bizarre case of a business attacking itself manhattan institute christopher writes in the new york post hosted by american express. at the amex corporate event the speaker argued capitalism was founded on racism and racist logics of domination have saved western society of the industrial revolution to the
president. they suffered an election telling amex employees and given privileges in one community get the other on the pretext that we live in americredit system where the market judges everyone the same. it's true that the companies advertisement have touted the privileges by consumers of the ubiquitous greeting cards but the history of american express was a story of a company that's tried by offering its many services to broader clientele. now more than 100 million cards in use, how does one see systemic racism at a company for 16 years had a black ceo who presided over a period when capitalist bid american express shares up faster than the s&p 500 financial stock index. looks more like systemic meritocracy. american express employees had no reason to hate themselves and rather than hosting self-loathing manager should focus on bringing more services to their customers were some of those customers might start
asking why is the green card in my wallet. that is it for us this week, jerry will be back next week with in-depth interviews on the wall street journal at large. thank you for joining us. ♪ >> "barron's roundtable" sponsored by invesco cute cute cute. >> welcome to "barron's roundtable" where we get behind the headlines and prepare you for the week ahead i am jack hout and for jack otter who is on vacation, dry those tears to be back next week. coming up used car prices are up 42%, honk if you're hoping is transitory carbonic