seconds away on the kudlow report, a misser able april jobs report spells defeat for president obama. investors are worried slumping jobs will lead to slumping profits and obama's blfld of broken dreams we're walking along the debate turns tonight and the kudlow report is moments away. stay connected to cramer on mad money. >> there is always a bull market, i promise to find it for you. i'm jim cra plfrner i will see see you tomorrow. larry, what do you have for us tonight? to phony stimulus isn't working. i'm mad as hell i'm not taking it any more. good evening everyone i'm larry kudlow, this is the kudlow report. after putting out trillions of stimulus and federal reserve, we still got a miserable jobs

report today. it is a crippling blow to the president's reelection, forget the spin, the idea that after three years of all this phony stimulus producing a meager 115,000 jobs on top of the pathetic 2.2% gdp is insulting to the average taxpayers intelligence and wallets. it's just awful and to recoin a phrase from governor mitt romney iets still the economy and people aren't stupid. we'll take up the topic with our free market panel and look at the market, we'll look at politics, we'll look at the economic fall-out of the jobs report, i'll tell you folks, something has to change, and that change had better be a return to free market capitalism to save this country's future. we're going do have a rice-moore debate tonight, will my pal robert rice admit that big government spending has been an

be abject failure. the obama administration, crew crucify the fracking boom? i will talk the wyoming governor about the pipeline. the miserable jobs numbers slammed down stocks. the dow off 168. investors know the truth behind the numbers. they are worried the next few months of stats and profits will be as bad as the recent numbers and today's jobs report. first tonight, the headline, a much weaker than expected jobs report, my hunch is that obama is not too thrilled about it, either. cnbc's john harwood joins us with the details, good evening, john. >> reporter: good evening, larry. i don't think the white house is thrilled but won't surprise you they don't have the same spin on the numbers that you do but we have to get used to that because this is the kind of jobs report that is weak enough it can be spun any way you please.

let's start with the top line numbers. first of all the overall unemployment rate went down from 8.1 -- 8.2 to 8.1%. so far, so good. 115 non-farm payroll jobs added. the household survey, household survey shows 169,000 fewer people with jobs, and 342,000 people leaving the labor force in part because of retirements in part because of the expiration of unemployment benefits which require you to search for a job. so president obama was out on the campaign trail and he had to take ownership of both sides of that to take credit for progress that has been made but also acknowledge that more has to be done. here is the president. >> 4.2 million new jobs over the last 26 months. more than one million jobs in the last six months alone. so that's the good news.

but there is still a lot of folks out of work, which means we have to do more. >> reporter: larry, if you're mitt romney you're only focused on the weakness and shortcomings in the report. here is mitt romney on the trail today. >> this is a sad time in america. when people who want work can't find jobs, college kids, kids coming out of college, surveys said half the kids coming out of college can't find work, or can't find work that is consistent with their skills. this is a time when america wants to have someone who knows what it takes to create jobs and get people working again. >> reporter: so, larry, this is the underline analytical issue, whether the favorable weather pushed down the numbers now, question is what is the run rate going dob toward election day and will that unemployment rate

go down further? talk to mark zandy he said around 7.90 e on election day. another person thinks it shows weakness in the job market that will persist. >> john, i think you laid it out beautifully. thanks to john harwood in washington, d.c. mitt romney jumped at the chance to say he can do better than the president. take a listen to romney. >> the reason the rate came down because 340,000 people dropped out of the workforce. so many became discouraged they stopped looking for work. this is a time when america wants to have someone that knows what it takes to create jobs and get people working again. i think it helps to have had a job to create a job and i have and i will. >> all right, me? i don't see how obama can get reelected 186 days from now. 2% growth in gdp, 115,000 jobs,

a shrinking workforce, six trillion dollars of debt? somebody has to explain to me how exactly he will do this. so, we have democratic pollster and trat at the gist bernard whitman, terry jeffreys and jimmy from the american enterprise institute. lousy job numbers last month, lousy number, people dropping out of the workforce left and right, and on top of all that, you have five or six trillion dollars of new debt for programs of spending that are done the american economy absolutely no good. bernard, i do not see how president obama with polls in the mid-40s, can possibly win. >> larry, no surprise you're wrong once again, let me explain why. the fact is the numbers aren't where they need to be yet but the economy is sound and growing and let me explain the reasons for that. we had 26 straight months of job growth, compared to

four-and-a-half million jobs lost under president bush. for an economy to grow and prosper and jobs to be created you need three things, confidence in the financial markets and today's sell off not withstanding, the dow and s&p had best quart near 14 years last quarter, nasdaq best in 20 years. consumers, eight months ago, two-thirds of thought the economy was in the downturn, two-thirds think it has stablized or is on the way to recovery. third information point that is key, small businesses. small businesses have not been this confident and this optimistic about future expectations. >> those are amazing static particulars, larry. >> no phil i bfilibuster, berna. factually the small business household employment fell 169,000. last month it fell 31,000. jimmy p., one of many indicators

going the wrong way and i want to bring in something that mitt romney said on the campaign trail today and that is after three-and-a-half years are you really better off? it is still the economy romney says, and aren't stupid. what is your take on this? >> they are not stupid. ask people -- if all you knew was looking at those consumer confidence numbers, those numbers are at the levels you see during a recession. no wonder why. not only are we still in the longest streak of 8% plus unemployment since the great depression, incomes have gone no where for two years, and i know the unemployment rate has fallen, that is because the government is disappearing workers faster than an old fashioned south american dictatorship. they are not counting them anymore. you have very little job growth, no income growth, if the rest of the year is going to be like april and march, you're right, mitt romney will win. >> that is the point. jimmy p., real quickly, what

does it mean that the workforce is disappearing? the participation rate is way down, the employment worker population is way down, as john harwood accurately reported, even in today's report, civilian labor force dropped 342,000. last week it dropped 164,000, and the so-called broader unemployment rate, which is the under employment rate is still 14.5%. are those facts related? people withdrawing so the real unemployment rate is around 15%, is that what is going on here? >> listen, once you have been out of work for a long enough time, they -- it's more like 10, if you do a little -- if you smooth out the labor force rates and the real number, you make out under employment is 14.5%. if this president wants to go on

reelection 14r.5 unemployment im working on it, we'll see. >> terry, i acknowledge the democratic national committee talking points that nearly four million new jobs have been created by team obama. i mean at least under their aegis. but terry, at a similar point in the ronald reagan recovery, there were over nine million jobs that had been created. and per month, terry jeffrey, reagan was experiencing 400,000 increases, not 115,000. now terry, i want to know do you think that mitt romney can make this case stick, that's the key point, can he persuade people that he's the guy with specific items to make this case stick? >> absolutely, i think he can make it stick, larry, people see it in the real everyday lives. you made the point that the economy was growing strongly when ronald reagan was running for reelection in 1984. this afternoon i looked at

historical statistics for unemployment when presidents running for reelection we have not had a president seek reelection with unemployment above 8% since world war ii, in 1984 when ronald reagan sought reelection, unemployment at 7.7%, in april of '84 that is pretty high. the gdp grew at 8% in the first quarter of 1984. as you said we have 2.2% economic growth, not going to drive unemployment down, unless we have a serious spurt in economic growth between now and the election, this guy will have trouble getting reelected. >> bernard, the big point here is whether obama's policies have failed dismally, the big spending policy, the obama policy, the threats to tax the rich policy, epa policy, to crucify oil and gas, in other words, he will have to be accountable, not only for the slumping numbers, he had a couple of good months, that's it. the numbers are going the wrong way but the policies behind the

numbers, and in particular all this debt than americans have been saddled with from all that spending got us what, bernard? one of the worst economic recoveries in post-war history. >> larry, you want to shake your finger at someone, i'll tell how to shake it at. you complain government doesn't create jobs, private enterprise does. look at private enterprise. record profits, hoarding cash, why aren't private corporations in the united states investing in america, creating jobs with the cash they are sitting on their balance sheet? >> because terrified of the tax increases. they're terrified of obamacare, terrified of the spending and the debt. thank you for asking the right question. they are terrified of where economic policies is going under the president. >> no, because they are hoarding cash and they failed to invest in america. if you want to be accurate -- >> they are terrified of the policy. don't you sthat answer, economis

happens between your ears. your perception of risk by private sector, worried to death. >> terry go ahead. >> there is a very good, very clear measure of the effectiveness of president obama's pollities. january, 2009, his top economic advisor, christina roemer published a report she said if congress enacted the $787 billion stimulus obama wanted, unemployment would never exceed 8%. next month ticked up to 8.3. congress passed the bill we haven't had a single month in obama's presidency when unemployment has been below 8%. the stimulus was a disaster, every penny borrowed from the chinese and japanese, great grandkids will be paying interest. >> gentlemen, i have to leave it there, bernard whitman, terry jeffrey, jimmy, all i'll say

today's numbers, another lousy month of job creation opens the door wider for mitt romney to become the next president. up next on kudlow, new federal rules on fraking this could be overrunning the state. wyoming p's star governor will join us to give us his view. also ahead on kudlow report, investors unnerved by the bad jobs report. will our spring stall turn in the summer doldrums? later on in the show, when will robert rice admit big government obama nomics has been an abject failure. the bob rice-steve moore debate whether we return and don't forget, folks, my theme, we must turn back to free market capitalism. because it's the best path to prosperity. the other team has lost badly. they are discredited, it's time for a change. i'm larry kudlow, we will be right back.

right back. (female announcer) most life insurance companies look at you and just see a policy. at aviva, we do things differently. we're bringing humanity back to life insurance. that's why only aviva rewards you with savings for getting a check-up. it's our wellness for life program, with online access to mayo clinic. see the difference at avivausa.com.

the obama administration released the new rules for fracking on federal land. in a moment you'll hear from wyoming's governor about it. he says the states are being overrun by the feds. but first up our own brian

shactman sets up the story. good evening, brian. >> reporter: the energy sector has been waiting for this. the key take aways from the white house new rules on fracking. companies need pre approval to fr frack. no company can least land and do it. companies will need to disclose what chemicals are in fracking water, but after the job is done. originally it was before a job but the industry lobbied to change it and they succeeded. lastly this only pertains to federal and native american land. that is a big deal, because only about 3,000 wells out of the 13,000 drilled and fracked are on public land. some companies welcome some of this. they want to weed out the bad operators. by the way, some companies like halliburton disclosed the chemicals used in the fracking process. the other piece of energy news has to do with keystone

pipeline. trans canada resubmitted plans for the xcel poip line. they might the project in two. look at the bloo and red lines. the gulf coast project which is in red, is almost fully approved. they separated that off. the upper part in blue will settle the route and circled right here, that is the piece in nebraska where they need to work out how it will be routed. they think it's a done deal. a lot of insiders have said for a while that this will go through, just a matter of when. larry, back to you. many thanks to brian shackman. governor mead, i want to talk about fracking guidelines, can i pick your mind the top issue of the day, was a surprisingly poor, almost miserable set of jobs numbers in the middle of this campaign and i would like to get your take on it. you're from a state with 5.3%

unemployment rate. what do you make of the national story? >> well, it's very disappointing. of course we would like to see much better numbers for the country and i think what i would say is the country should look at states that are doing it well like wyoming, we have 5.3% unemployment rate, we have good jobs growth, and so, while we're disappointed for the country, we recognize energy played a big part in wyoming's good economic outlook, and we hope we can see more of that around the country. >> governor, has this opened the door wider for a mitt romney victory, the second lousy jobs report in two months, a lot of other statistics, 2% gdp, does this open the door for mitt romney? >> i think so. i mean what are you looking for? i'll borrow a phrase, it's time for a change. mitt romney with his private sector experience, experience as governor, knowing how to balance the budget, i think this should

help him. nobody likes bad news for the country in any sense, but i think in terms of the election it should be a help to mitt romney. >> governor, let me go to the fracking department of interior put out fracking rules and regulations, you're heavily in the oil and gas business, what is your take on these new interior department regs? >> we're a little baffled, frankly, they are a little late coming for one, because as we see what wyoming has done in the last year-and-a-half, we already have fracking regulations and our rules are frankly, a little bit more robust than what the federal government put out there. so the question is how is this all going to work in terms of the conflict, if a company comes in do they say we follow the federal rules or follow the state rules? it will be a challenge i think for those companies. on top of that, you want the state to take the initiative and be proactive on these type of thing, wyoming did just exactly that, and so it's a disincentive

for states to be proactive on these type of things. those states that haven't done it i think they will say well the feds are taking it over, why be proactive and in doing that, they will limit states like wyoming that wanted to have more rules on this. >> here is the thing if the feds involved through the interior department i think mr. salazar ought to know better, but can he stopped, can he shut down fracking operations in your great state of wyoming while they piddle pattle and have reviews? >> we certainly hope there is not a lot of piddle pattling around. wyoming require disclosure before and after the job. the federal government will have after. but it's a legitimate question, if you're a company sitting there to invest millions of dollars, what does it mean? will you shut fracking down? you and i both know what fracking means to the oil and gas industry. we know what it means to the country. it's a concern. and again it draws a question,

those states like wyoming that have done it, what is the point? it's redundant or in conflict. >> so what about epa will come out with their rules, now you have the department of interior rules, they are probably other rules, i hate to be blunt but is this part of the administration crucifying the oil and gas business? >> it's a kefrnconcern. it's good for america when oil and gas does well, homes, cars, our roads, what we have seen the administration i don't think is a great appreciation for what energy means. energy is one of the things that can help drive this economy and we have an opportunity for affordable american energy in this country with the advance of these technologies. it's not a bad news story. the technologies are good for the states and country. it's a disappointment that states like wyoming have stepped up and addressed this and the

federal government feels like they need to come over and put a cookie cutter approach over all states. i'm baa bit baffled. >> are you bulletproof for private lands exploration for fracking shale or just federal lands or will they go after your private lands, too? >> well, we hope they are not going after private lands. as we understand it now it's on federal lands. the hope ised to federal lands. we will see how they try to apply it. why do it particularly in those states that have taken the occasion to address it on their own? it's an important states rights issue, tra that is why we're disappointed. >> governor matt mead of wyoming, thank you for your time, have a great weekend. i hope you continue the great fracking revolution. >> thank you, larry, thanks for having me on.

>> you bet. very important at the end when he said this is a state's rights issue. the federal government has no business coming in when they have sufficient state regulation. any way, coming up weekend with warren, the annual buffett palooza is underway, we'll get an update on the agenda when we check headlines coming up right after the break. tdd# 1-800-345-2550 there are atm fees. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees. tdd# 1-800-345-2550 no monthly account service fees. tdd# 1-800-345-2550 no hidden fees. tdd# 1-800-345-2550 and we rebate every atm fee. tdd# 1-800-345-2550 so talk to chuck tdd# 1-800-345-2550 because when it comes to talking, there is no fee.

and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. uh, nope. just, uh, checking out my ad. nice. but, y'know, with every door direct mail from the postal service, you'll find the customers that matter most: the ones in your neighborhood. print it yourself or find a local partner. and postage is under 15 cents. i wish i would have known that cause i really don't think i chose the best location. it's not so bad... i mean you got a deal... right? [ bird cries ] go online to reach every home, every address, every time with every door direct mail.

a living, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and securely acted on across the company. around the world. turning a new trend, into a global phenomenon. it's the at&t network -- securing a world of new opportunities. ♪

the annual weekend with warren, warren buffett kicks off with earnings. the man himself our special guest monday morning. brian shactman has the headlines coming out of the cnbc newsroom. >> reporter: brookshire up, there wasn't anything about my blizzard consumption but that helped the bottom line. yahoo! is working on selling part of the stake in ali baba owns 40% and could gain as much as $8 billion. >> after share how older complaints, dan hess giving himself a 2012 pay cut of 3.25 million. i wouldn't cry for him he will take home $8 million. sprint's sha'slders meet in the middle of the month.

we're two weeks away from potential private space launch at cape canaveral. spacex will go to space. >> two main reasons, will insure the continued exist tense of life as we know it in the event of a calamity on earth and the greatest adventure in history. and we need to have things in life that are exciting and inspiring. >> a coop on mars. very interesting stuff. cnbc will air the launch live when it happens. u.s. treasury selling some of the aig holdings and aig will take up top two billion dollars of the stock at the ipo price. west texas crude talk about prices closing below, $99 the lowest since mid-february. that pulled energy stocks to the s&p 500, nasdaq ended the worst

week of the year. larry, back to you. that is brian shactman. investors aren't buying the white house spin, the job numbers were miserable and slammed the stock market. are we heading in a serious spring stall that will engulf disappointing profits? later, speaking of spin does robert rice plan on spinning the abject failure of big government spending and all the debt creation with it and all these lousy job reports. i want to hear him he will debate steve moore, robert reisch, we'll be right back. and somebody asks me a question about the volt.

what really blows them away is when i tell them i almost never go to the gas station, despite the fact that they see me driving to work every day. i fill the volt up once every -- maybe once every couple of months. and that feels absolutely wonderful. i'm hardly using gas, but it's there when i need it. anybody that thinks that this car doesn't have solid performance, hasn't driven it. there's no other car like this on the road. ♪ departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz.

. welcome back to the kudlow report i'm larry kudlow. in this half hour, investors slamming cyclical growth stocks over fears the job slumps will be the rest of the economy and profits. get your popcorn ready the robert reich-steve moore debate is back. how will robert reich explain

the abject failure of trillions of dollars of government spending. steve moore will help him along. jobs report jolts wall street to the worst week of the year, major losses across the board on weaker than expected jobs data. here is a run down, dow down 168 points, nasdaq off 68. s&p 500 shaved 23 points. crude oil went along with it lost more than 6% to close at $98 a barrel, retail gasoline also falling substantially. let's turn to our ace investors, done, chief investment officer at trent mack he could, jim at tgm institutional services, jim lecamp at ups. jim, what caught my eye was for the day and week, the downdraft in the pro growth cyclical economic sectors, seemingly taking their cue, two months of

lousy jobs, is it going to translate in more lousy data, and is that in turn going to translate into poor profits? >> well, it certainly -- yes, i think is the answer. certainly seems like it. as you said has been six weeks, in that time, one good number and claims number yesterday that was decent. overall, it has been bad, we're heading in the wrong direction. in the next week or so we'll start to get some decent numbers, some bone to chew on are or start hearing more about qe 3. that will be decent for asset prices have been in the past, stocks could do okay. i still think the correction we have to work through. for profits, they have been so at odd how well we did during earnings, i can't imagine that will continue long. we have more serious problems that swamp those. >> don ruskin do you believe the

fed will bail out the jobs numbers? ben bernanke had the fine sense to bash paul krugman, your left wing friend. he said it's time to reinflate in order to bring down unemployment, bernanke said that was reckless. you don't expect bernanke to react just because we have a couple of misserable jobs numbers, do you? >> well, first of all, ben bernanke may bash paul krugman now, but he hired him to the faculty of the princeton economics don't when he was running it. let's not -- let's curb our enthusiasm. ben bernanke is politically weaker today than any time during the tenure at fed chairman. he is not in charge of the show. other people in the arise to be extra see controlling policy. bernanke is the least dovish of them. ultra doves are in control, janet yellin and william dudley.

if it weren't for bernanke holding the bank we would have six months ago had a trillion dollars in unstare rilized qe. janet yellin is a big government girl, you know what big government is about fit doesn't work the first time, try it again bigger. she has two lousy job reports in a row, i guarantee you that janet yellin and ben bernanke are on the phone now and she is doing all the talking. >> jim lecamp, the jobs numbers going down that may cause worry about retail sales, the whole sh slew, do you think you should be selling stocks now on those slumping economic worries, or some how ben bernanke is once again in the short term going to bail out wall street? where do you come out? are you a buyer or seller? >> i don't think he will be fast enough and look, i think we have a correction here i don't think

it's the end of the world. it's a regular correction, there are a lot of things to worry about. seasonal trends, highlighted in uncertain election years, fiscal cliff, they are worried it will go fiscal cliff diving at the end of the year if they worry about capital gains tax. european elections and economy that is slowing. in the mind st. of all this you have bernanke saying we're not going to bring the qe in any time soon. i think they will bring it. the fed bought 61% of all treasuries offered last year. if they don't bring it at some point, who will buy the paper? i don't think they will come along fast enough to stop this correction. >> we are doing a disservice by glossing over that election in europe. we're at a pivotal time, the french people will vote, they don't want to be under control of berlin much longer. this is an enormous thing.

we have to worry about europe sounds trite. >> it's worse than that, jim. the numbers over there are not coming in as advertised. >> amen. i agree. >> rising rapidly at the same time that revenues are plummeting. look, spain is in a depression. we have very serious economic problem brewing over there, if you combine all those economies, it's the largest economy of the world. even the german pmi numbers were god awful. >> jim you're running ideas and numbers together that make no sense. germany is not having a problem. >> what doesn't make sense? the pmi -- >> spain is restructuring the labor markets. things have to get worse before better. >> look at the numbers. look at their trading partners. >> you're looking for the wrong thing to worry about. >> don, what is your point? are you a buyer or seller and why, don luskin. >> i agree with jim la camp,

it's clear we are just in a correction. we went through whole corridor in u.s. stocks without a 3% decline. we are due. in this correction we haven't had a 5% decline. we had a couple of oh, horrible bad jobs numbers which are like the jobs numbers for the last three years and so we're having a are correction, give me a break. that is the issue. europe is not the issue. the issue is just stocks have had a fantastic bull run they need a rest. >> i just want to go back do my pal, jim iurio, jim, a lot of the wall street smart guys said at the beginning of the trading day, that the sloppy jobs numbers didn't really matter, and yet they wound up mattering a lot for stocks, down almost 170 points. jim iurio, why was that? that answer may hold the clue what is going to happen on monday and next week. >> because they absolutely did matter and the fact that we're trying to tease every bit of

positives out of the numbers we get, we did it yesterday, did it with the ism, there aren't that many positives to tease out. we're heading in the wrong direction and they matter enormously today. what it means to me and i agree with don 100% i think this is a correction i want to buy the s&p at 1330 but i'm buying for the wrong reasons, i believe the fed will step in and provide a back stop like they always do, and at that point -- >> can i tell you what the big positive in today's news is? about the jobs report was the way the media handled it. we didn't get the white house lie supported by the media automatically that oh, yoohoo the unemployment rate came down. all the headlines labor force shrin shrinks. the media get it. no place for obama to hide. >> i agree with don luskin 100%. >> that will hurt the market. if you look at the history of

election years, when you go in the summer of election years historically uncertain outcome, the markets struggle. in the short term could it hurt the market in the longer run it helps. >> you want to be certain about obama reelected you think that will be good? >> in the short term it may hurt the market. don, jim, jim appreciate your points of view. will the fed provide a back stop? an exclusive monday interview right here on the kudlow report, dallas federal reserve president richard fisher, right here, maybe he will give us some clues. coming up on kudlow tonight, the spin doctors at work. there is no way to sugar coat a terrible jobs number today, no way. the question is how are we going to fix this mess? i want to be constructive, i would like to be optimistic, you know what, folks, time to kill, we need a strong dose of free market capitalism to revive us. robert reich and steve moore, the friday night fights, let's see what they have to say.

hey h. (female announcer) most life insurance companies look at you and just see a policy. at aviva, we do things differently. we're bringing humanity back to life insurance. that's why only aviva rewards you with savings for getting a check-up. it's our wellness for life program, with online access to mayo clinic. see the difference at avivausa.com.

it's very important to understand

how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies. >> welcome back. today's jobs report confirmed we are indeed walking down president obama's boulevard of

broken dreams jobs. a boulevard scattered with trillions of dollars in debt. stimulus spending, a boulevard littered in the rhetoric of tax the rich, punish successful, anti-business, a boulevard fraught with the potholes of massive tax hikes and hidden obamacare costs. the boulevard has no room for the keystone pipeline, but has abandoned government loans that wasted taxpayer dollars like solyndra, extended jobless benefits may have done nothing to improve the infrastructure of the boulevard and forced people in the tenements known as social security disability benefits. it's all a mess. how do we fix this big government disaster? let me bring in our in-house favorite, robert reich, former labor second and author of "after shock" and steve moore, author of "return to prosperity" my favorite free market supply,

you get a bunch of numbers like today, that includes the numbers last month and that basically includes the numbers through the whole three, three-and-a-half year so-called recovery, isn't it time for you to say that the government-driven spending model has completely utterly failed and time to look elsewhere for help? >> knno,1000 times no. let me confess, one thing here, these are bad job numbers. i think the economy is in a stall, i don't think heading toward a double dip, the recovery has called. the first quarter numbers down to 2.2%, march and april number on jobs, bad news. what is the essential problem, in the first quarter of the year we know was government cutting back on spending.

we know that because we have seen all the data that is the only thing that basically changed. not only is the stimulus over but government is withdrawing from the market, that means less and less demand, and then what happened? consumers continued to spend in the first quarter but by the end of march the beginning of april, consumer got to the end of their rope. they don't have any more savings, they can't go deeper in debt, their median wage is dropping, that is adjusted for inflation, that means consumers cannot keep the economy going. so you don't -- >> what you're saying -- >> you do not have to be an ort oh dox -- >> you're just saying it's all you gone wrong. that is what i hear you saying. and what you're saying. >> it has gone wrong on the demand side. it has not gone wrong. >> steve moore you have to way in gone wrong. >> the bottom line before steve

moore weighs in, the bottom line is we have to have more on the demand side. i would say a larger and larger supply side. tax cut. >> i listened what you said the last couple minutes, you should be the chief economist for mitt romney he's saying what you're saying, the stimulus didn't work. here is the problem with your keynesian analysis, this is the way it was supposed to work by design. you inject the kbeconomy with higher government spending and borrowed, the idea at some point you can't borrow, what you're saying they couldn't borrow a trillion dollars a year after year, there is no evidence this has worked and it goes back to the point i think larry made at the outset, what do we have to do, robert reich, to convince you that the free market is the way to go? >> what are you talking about? i want to know what you think is going to stimulate adequate demand to create jobs. you tell me.

what is the answer, where do you get adequate demand? >> let me answer that question. the one thing if i was the economic advisor for barack obama, i would say get rid of that tax cliff in 2013 it's hurting the economy, and by the way you're wrong about one thing you said, bob, not just government spending that is down, one of the things plummeted larry, as you know, has been private business investment. businesses are not investing in the economy. >> businesses will not invest until they have consumers, until they know there is adequate demand. larry, you had people on the show and i listened to business leaders on your show, who actually take my point of view, it is a demand side issue, consumers are at the end of their roams. steve moore, if you think for a moment that the big problem is the cliff that is coming because suddenly taxes will increase on the rich, you are wrong. >> okay. >> the big problem coming is substantial -- >> bob will you endorse on this

show the keystone pipeline, let's build that pipeline. >> hold that thought. >> you want more infrastructure, is that right? we'll come back, believe it or not i'm giving you a second segment, we miss you so much. >> i want an answer to that question. >> we'll return right after the break. we'll talk keystone, corporate tax cuts and talk about not spending another dime and stopping this debt barrage, reich and moore coming back after the break. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history.

so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us. i'm making my money do more. i'm consolidating my assets. i'm not paying hidden fees or high commissions. i'm making the most of my money. and seven-dollar trades are just the start. i'm with scottrade. i'm with scottrade.

i'm with scottrade. and i'm loving every minute of it. [ rodger riney ] at scottrade, we give you commission-free etfs, no-fee iras and more. come see why more investors are saying... iith scottrade.

we're back with the dynamic duo, robert reich, former labor secretary, steve moore of the wall street journal editorial board. we promised to talk about the keystone pipeline. >> oh, please. oh, please. >> that is infrastructure. that is all you talk about. >> red herrings. >> 20,000 jobs. >> if i were advising obama right now, no more government spending cuts until the economy gets going until unemployment is down, exempt the first 25,000 dollars of income from payroll, the payroll tax, that is in large the payroll tax cut. i would provide more housing

relief, let the fha take a share of people's debt burdens with regard to mortgages, and come up with a bold plan. >> come on, bob. >> >> don't listen to supply siders. >> especially these two guys. >> you talked about infrastructure and the need to build these projects, we have a project, the private sector will build, it will not increase the national debt by one penny, will be 18 to 20,000 union jobs for robert reich, larry, that should be a deem come true. how can liberals oppose that? >> i am not prepared to sell off the environment for the sake of infrastructure. if you think that pipeline is not going to have negative environmental consequences you're out of your gourd. if you want to build infrastructure with the private sector, how about more and better -- >> let me ask you another question. >> highways and roads and public transportation. >> let me ask you this question you are a demand sider,

keynesians don't believe when we have a bad economy we should have the biggest tax increase. are you going to call barack obama and call off the tax increase? >> i don't think you should have a tax increase on the middle dell class at all. the very wealthy, do you think the spending of the wealthy will be crimped because of a tax increase you're out of your mind. steve that is ridiculous. >> i talked to art on the radio today, one of the great things we can do, absolutely contrary to keynesian spending doctrine, lower the share from 25% to 20% would be one of the biggest tax cuts and would rejuvenate business confidence. >> that is theology. >> that is the opposite what you prescribed bob reich for three years. >> i have been prescribing the opposite for 25 years. >> you have to acknowledge it when you see lousy gdp and lousy

jobs, your model has failed. steve moore, 20 seconds, give you the last word. >> don't give him the last word. >> i was hoping we would convert robert reich -- >> i was hoping you guys would eventually -- >> more work to be done. our fabulous dynamic duo robert reich and steve moore, conversions forthcoming. tune in monday night i'll be joined by richard fisher, thanks for watching this evening i'm larry kudlow. the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years.

what's it going to do to the planet? natural gas is the cleanest conventional fuel there is. we've got to be smart about this. it's a smart way to go. ♪ in every way, shape, and form. it's my dream vehicle. on a day to day basis, i am not using gas. my round trip is approximately 40 miles to work. head on home, stop at the grocery store, whatever else that i need to do -- still don't have to use gas. i'm never at the gas station unless i want some coffee. it's the best thing ever. as a matter of fact, i'm taking my savings so that i can go to hawaii. ♪

ttd# 1-800-345-2550 let's talk about the typical financial consultation ttd# 1-800-345-2550 when companies try to sell you something off their menu ttd# 1-800-345-2550 instead of trying to understand what you really need. ttd# 1-800-345-2550 ttd# 1-800-345-2550 at charles schwab, we provide ttd# 1-800-345-2550 a full range of financial products, ttd# 1-800-345-2550 even if they're not ours. ttd# 1-800-345-2550 and we listen before making our recommendations, ttd# 1-800-345-2550 so we can offer practical ideas that make sense for you. ttd# 1-800-345-2550 ttd# 1-800-345-2550 so talk to chuck, and see how we can help you, not sell you. ttd# 1-800-345-2550 (female announcer) most life insurance companies look at you and just see a policy. at aviva, we do things differently. we're bringing humanity back to life insurance.