markets soaring? what if a bunch of spain's banks go into lick by indication? and is obama such an amateur economist he doesn't know the difference between outsourcing and offshoring? "the kudlow report" is moments away. >> the city of brotherly love and my hometown of philadelphia was the victim of a massive insurance fraud scam. a tow truck driver was running a wild scam. why? because some people will do anything for money. don't miss "american greed" tonight at 10:00 p.m. on cnbc. this one's close to home. listen, the rotation into the oils, i think it can last a couple of days. remember we said nat gas is going high snr it will. i always like to say there is a bull market somewhere. i promise to find it for you. see you tomorrow. larry, what do you have for us? >> jimmy, thank you. if obamacare is stricken down it will not be an economic miracle. we have to explore what it means and what's going to happen next.

good evening, i'm larry kudlow. this is "the kudlow report." our top story tonight, the next 15 hours will be crucial. call it obamageddon. the support will hand down the decision on the signature obamacare legislation which many believe is an unconstitutional violation of federal power. you cannot find a man or woman in business, large or small, who hasn't complained that the tax, regulate and mandatory provisions of obamacare haven't held up their hiring and investment. they have. it's been a big drag on the economy. it's an unaffordable bankrupting federal overreaching entitlement. we'll look t it from every angle. the impact on business, markets and the election.ç mitt romney, by the way, just moments ago said this. take a listen. >> my guess is they are not sleeping well at the white house tonight. that's the way it ought to be.

>> best selling author ed cline with the impact on the obama legacy and the impact on the market plus the world outlook investor extraordinaire bob doll. he'll help us interpret everything. first as the clock counts down to tomorrow the white house and team romney all gearing up to declare victory. john harwood will help us out with the decision. good evening, john. >> good evening, larry. a tremendous sense of anticipation across washington for what the court is going to tell us at 10:00 or shortly thereafter tomorrow. nowhere more so than in the building right behind me. the democratic parties sought national health care for decades. the democrats wanted it upheld. so does president obama for his legacy and a senior obama aide told me they believe the law will be upheld by the court. what will the justice effect be politically on campaign 2012?

political strategists tell me the best outcome for mitt romney politically is if the law is upheld. he can go around the country and continue hammering obamacare which is unhpopular. the best outcome for president obama is if it's struck down by relican-appointed justices on the court. the president will say this is partisan judicial activism. it makes sense when you look at who likes the law. we can see in your poll almost two to one, white voters think the law is a bad idea. african-americans favor it 15 to 1. his panics more than two to 1. that sets the table for what comes next if the law is struck down. democrats have double digit advantage in terms of health care and medicare. republicans have double digit advantages on the issues of controlling the deficit and a reducing government spending. so we've got a real potential

donnybrook in which the politics and policy are moving on different tracks. >> donnybrook is a great way to describe it. thank you, john harwood. now while the fate of obama care resides in the hands of the supreme court obama's legacy hanks in the balance. will his mark on america fill a presidential library or will it be relegated to a smattering of books on a near empty shelf like the ones behind me. obamacare, stimulus, i got bin laden and bush did it. ed klein is the author of the number one new york times "bebe seller "the amateur." it's not the politics here. let's look at the legacy. both obamacare itself and a (c does that mean to the president's legacy, in your view. >> if the supreme court rules against obamacare it's a

grievous blow to his presidency. equivalent to the supreme court knocking down the new deal 75 years ago. obama bet all the marbles on this thing. it defined his first term in office. if it goes down to defeat, i think he will be seen as a failed first president. >> this will in effect be his largest mistake. i think it was in your book. may have been others. geithner told him to focus on the economy and obama said, no, that's not enough. i want to ask you as obama barrels through what became known as obamacare, was this an attempt to transform america into something more like europe with an entitlement and a welfare state? was this part of his transformational objective? >> absolutely. he was told by his three top political advisers, david axelrod, rahm emanuel, joe biden, don't go for broke. do it in increments.

do coverage for young adults, children, pre-existing conditions. but don't do the whole kahuna. he did not listen to these advisers. he dned to the little person on his shoulder, valerie jared and michelle obama and decided he was going for his historicç legacy. this was a huge, huge mistake on his part. >> okay. another big issue. when he hatches and launches this thing in a speech, the legislation and the details were given over to then democratic congress, senator harry reid and speaker nancy pelosi. you have written about this. what does it say about obama's leadership style? was he even in control of this gigantic transformative thing he came up with? >> i called the book "the amateur" for the reason you're mentioning. he outsourced this whole thing to the democratic congress

because he doesn't really take any joy, thrill or even interest in the it nitty-gritty of polit. he likes to give speeches, look good in a necktie, but in fact when it comes to governance, executive leadership that's not what interests him. >> the irony is instead of sticking with the economy he shifts into a transformational, health care, nationalized, whatever you call it. the u.s. government will be running health care the way they do it europe. yet businessmen and women have told me for three years this is a drag on the economy. >> absolutely. >> because of obamacare they have held back hiring, held back investment. they have held back risk taking. almost like a capital strikeout of the 1930s. obamacare turns out to be a deterrent to the very economy we thought he was going to fix. >> exactly. he didn't care about that. he was thinking moreç about himself and how he would look in

the history books than he was about the economy. he spent the first two years of his term on

it's good to see you back, healthy and happy. secondç of all, i think a lot us here in the political talking heads world are really putting way too much political emphasis on what the supreme court does tomorrow. i agree with the cooke report which says people's feelings about health care and health reform general ly are already baked into their views of mitt romney and barack obama. cook is telling us we are all so

focused on what the support will do but when it comes to the re-election of barack obama, the effect on changing is very limited. >> mike, do you think the effect will be limited? i mean, do you think romney wins either way or does romney lose on this? >> i think clearly president obama loses if the key elements of obamacare are over ruled. if they are found to be unconstitutional. i will tell you why. he looks weak. he already has that problem. he doesn't see he can control events. he's buffetted by winds and forces beyond his control. same thing that happened to carter and what happened to barack obama in a serious way. i do not agree. i know a lot of my colleagues on the right think it might be a good thing for mitt romney if the law is upheld. i don't agree with that. i think if the law is upheld by the supreme court and particularly if it's upheld by a

6-3 vote with roberts voting with the majorityç then i thin you've got a problem. americans are tired of arguing about this. they don't want to refight the battles of health care. they will then listen to barack obama's line which is let's move forward, not back. >> david goodfriend, comment on that. if the law is upheld, obama will declare victory. i agree with michael. i think romney has trouble. or if the law is upheld does it just go away as a political issue and everybody goes back to the subpar weak economic recovery which many believe, including myself, ultimately is the real issue. >> i agree with you, larry. it is the top issue on everybody's mind -- the economy. like charlie cook who i cited earlier, i believe the health care, health reform issue subside into the background either way. i will say this. no one mentioned this. i will try it out on you, larry, to see how this sits with you.

i think when voter go into the voting booth they ask a primal question. all the policy debates and everything take a back seat to this question. is he one of us? does he understand us? is he somebody who gets me? that actually is an albatross around mitt romney's neck. he doesn't come across as one of us. even if barack obama loses and says, i fought for you, i feel for you, i am one of you, that will resonate. >> i would disagree with that. i think there is an even more primal question people are asking which is, are we headed inç the right direction. when barack obama says we need to go forward not backward, we don't need to go forward if we are headed off a cliff. when you have two-thirds of americans according to some measures saying we are headed in the wrong direction then the fact that the supreme court finds this unconstitutional, that only confirms the idea that we have been headed not forward but off a cliff and heading to

the left, not straight ahead. >> too far to the left. i have to leave it there. thank you. it's a pleasure. coming up, stocks give a thumbs up to the positive economic data. will markets get another booster shot after tomorrow's obamacare decision? we're going to ask veteran investor bob doll, chief equity strategist at blackrock. later from holder to health care. obama's presidency under scrutiny. senior republican president john veraso of wyoming joins us. don't forget, free market capitalism is the best path to prosperity. i believe you can apply free market to health care reform. it has not yet been done. my hope springs eternal. down here, folks measure commitment

by what's getting done. the twenty billion dollars bp committed has helped fund economic and environmental recovery. long-term, bp's made a five hundred million dollar commitment to support scientists studying the environment. and the gulf is open for business - the beaches are beautiful, the seafood is delicious. last year, many areas even reported record tourism seasons. the progress continues... but that doesn't mean our job is done. we're still committed to seeing this through. thin coffee shops. people who i thave been out of work. you can tell it wears on them. narrator: he's fought to pull us out of economic crisis for three years. and he still is. president obama's plan keeps taxes down for the middle class, invests in education and asks the wealthy to pay their fair share. mitt romney and his billionaire allies can spend milions to distort the president's words. but they're not interested in rebuilding the middle class. he is. i'm barack obama and i

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welcome back to "the kudlow report." i'm brian shactman. congressional leaders reached a deal on a highway bill. the key part, a two-year overhaul of federal highway programs. that could mean a lot of jobs and a lot of steel. look at u.s. steel. you can see the pop right there when the news came out. in fact, all the steel names

have strong data. especially ak steel. we'll see if this follows through. we'll get more information, but 10% ak steel. 1.5 for nucorç and 5.5 for u.s steel. >> let's do some stock market work. we have a savvy and veteran investor, smart guy, successful guy and an old friend of mine. i'm joined by bob doll from blackrock. let me start with the obvious question. you're an investor looking at the obamacare decision from the supreme court. if the supremes knock down and reverse the mandate which takes the guts out of obama care, what if any effect does it have on the stock market? what's your instinct? >> i think you said this.

we go from one uncertainty to another. no one knows what's going to replace obama care if it goes away. we have to start all over again. so the problem of businesses saying "i don't want to move forward with whatever their projects are because i don't know unfortunately continues. the politics may be more interesting. i'm not sure the market has a big reaction. >> there are a lot of people saying you will have a boom in job hiring and stocks. i think you're right. there is so much uncertainty about what comes next after the election in health care. you know something will come. we just don't know how much it will cost and how we'll pay for it. the second issue is if you don't know what it will cost to hire the worker from a health care standpoint, why hire them. doesn't that, in effect, the stock market reaction may be very muted. >> that's the case. we have an uncertainty about what the reaction -- what the ruling is going to be and if the

ruling is to another i don't know, we add that to the list of what's tax policy, trade policy, regulatory policy and the excuse is that businesses are using not to move forward unfortunately are perpetuated. >> let's look at europe. big obstacle to an american stock market rally. what if spain's banks liquidate and go bankrupt? all the savings banks, china bail them out. spain seems to be the biggest problem. is that something we should worry about now? >> i think we have to worry about europe. i think that's the biggest wild card. we can handicap a slow down of the economy. we can handicap better or worse growth in china. we can't handicap what it means if the euro doesn't hold together in some way, shape or form. look, i think the expectation out of the e.u. summit are less than usual. they have to say we are creating a framework to do a few things. hopefully that's followed not far down the line by more

actions by the ecb and around the banks. >> let's come back to the u.s. the banks did well and so forth and so on. can that last? is there enough growth in our economy, bob doll, are there enough profits that will be generated by the economy to sustain a stock market rally? >> i think only ifç we get som sort of advancement out of the european issue. look, u.s. growth is mediocre. it has been for quite some time. an advantage we have going forward is lower gas prices and some signs that housing is doing a bit better. those two things tell me the nay sayers that say we are headed back into recession land, i don't they're going to be right. >> we'll leave it there. bob doll, thank you very much. up next, epic wildfire rages out west ripping across colorado springs devouring homes. more on the catastrophic disaster plus other late-breaking headlines.

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recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards. let's do what's best for our students-by investing in our teachers. let's solve this. fires are still raging out of control in colorado. cnbc's own brian shactman has more on that and the latest breaking headlines in the cnbc newsroom. >> it's unbelievable the story going on in colorado now. state and fire officials expanding the evacuation area around colorado springs. 12 fires are raging.

winds from thunderstorms are making it worse. officials told 35,000 residents to flee. 24 square miles are currently burning and the fires are only 7% contained. president obama has scheduled a tour of the area on friday. airbus, alabama bound. the european aircraft maker plans to build its first u.s. assembly line in mobile. the company has had the land for several years. no start dates for construction. american airlines pilots will vote on the latest cost savings proposal. amr is in bankruptcy and the judge said he'll hold off on a labor ruling until the pilots vote. arena pharmaceuticals said they will have the newly approved weight loss drug on the market next year. seema mody has more. >> that's right. arena pharmaceuticals anti-obesity drug was approved today. the first diet drug to hit the market in 13 years.

of adults and 17% of adolescents are obese we are facing an epidemic and a tremendous opportunity. it works on brain chemistry to create a feeling of fullness. the pill is named belviq and should hit the market in the first quarter of 2013. sales are expected to reach $1.5 billion by 2020. back to you. >> thanks, seema. peter madoff, bernie's younger brother will plead guilty to falsifying records friday. at one time he was chief compliance officer of madoff's company. the u.s. attorney said peter has agreed to criminal forfeiture of his real and personal property. there are other cases to come. this is three and a half years after the ponzi. almost like we don't think of it until it is in front of us.

incredible how many people won't get their money back. >> not an ounce of sympathy from me for any of the madoff clowns. i'm sorry. bryan, thank you very much. up next, the verdict on the supreme trial of the century comes tomorrow. what happens after the obamacare decision? we'll ask senior republican senator john barasso of wyoming. up next, what trade should you have lined up when the decision comes down tomorrow morning? our ace traders will be with us. it will be interesting. how big of a deal willç it be r stocks? stay with us.

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welcome back to "the kudlow report." i'm larry kudlow. in this half hour, go toç the dictionary -- or for the kids, look it up. find me the difference between outsourcing and offshoring. the president doesn't seem to know the difference between the two of those. but he's been killing romney for days for creating jobs in foreign countries. the question is -- does mitt romney have a response to this attack? i will press vice presidential

contender virginia governor bob mcdonald on this question. what trades should you get ready for when the supreme court hands down the obamacare decision tomorrow? our market mavens will tell you. still the fight over obamacare may not be over. take a listen. >> this isn't the end of health care. there is much more work to be done. we'll be looking to expand medicare so that there is medicare for all. we'll be looking to have a universal program where every american can look towards quality health care and we'll push people to get elected to agree with us on that. >> all right. that was union boss richard trumpka, head of the aflcio. he's vowing to continue the fight for universal health care regardless of the supreme court's decision tomorrow. with the democrats prepared to fight on if the court strikes obamacare down is the gop prepared to step forward with a plan of its own?

here to tell us, welcome back republican from wyoming senator john barasso. i know you willç say a lot abo what the republicans plan to do. do we really have a health care crisis in this country because poll after poll suggests 70% of the people like the insurance they have and yet there is a gap of 15 million people that want it but can't afford it. is that a crisis? do we need universal health care? >> no. what we need to do is address the cost of care. larry, as you know, what we are looking for is health care for people that they need from a doctor they choose at lower costs. that was supposed to be the initial intent of the president's health care law. he promised people that they would see health care premiums drop $2,500 per family across the united states. instead, since this health care law was passed, premiums have gone up by over $2,000 a family.

that's not what the american public has asked for. >> what are republicans going to do? you have a couple of popular things here. everybody tells me that. pre-existing conditions. popular thing. take care of the insurance costs for kids who stay home until they are 25, 26 years old. i don't like that, but people say it's a popular thing. that costs money. how do we pay for it? >> first of all, if any of the health care law still is standing after the supreme court rules tomorrow republicans are committed to repealing everything else that is out there and starting over, not making the mistakes the democrats have made, not coming up with a ç2700-page bill whic is so voluminous it can't be read, so incoherent it cannot be understood. but then work in a common sense step by step way with democrats, with others to actually address the issues of getting patients the care they need from the doctor they choose. not that the government chooses,

not that the insurance company chooses, but that they choose at lower costs. you can do those things. you will not see a 2700-page law. >> what do you say to businessmen and women who have complained bitterly in the last year or two that obamacare with its mandates and regulations and tax costs have stopped them from hiring, stopped them from investing. now, money will still be spent on health care. that's what i hear you saying. what do you say to them? they will ask you, senator, what's my tax burden going to be? what's my regulatory burden going to be? will we have pools of risk? can we come together for small business, things of that sort? will individual consumers get tax credits to make their own choices? what can you tell us about those issues that are not so far away? >> number one i can tell the small business owner that you're right. the amount of uncertainty, increased costs and burden of regulations coming out of washington make it harder and

more expensive for you to hire more people. i'm looking for ways to make it easier and cheaper for these folks to put other people to work. we have 8.2% unemployment in this country. we have been over 8%tju the last 40 months. that's unacceptable for us as a nation. people need certainty. until that he they get a sense of certainty they are not going to hire people which is why i'm concerned a about the future under this president. >> can you actually say make a pledge to individual taxpayers or all the small businesses that republican thinking on this, there will be no tax increase regarding health care? can you make a blanket statement that whatever comes up there will be no tax hike? >> that's why i want to repeal the law to eliminate the taxes. some are hidden, some are put in through budget gimmicks and accounting tricks. this health care law is loaded with taxes. of course those will get passed on through business to the consumers. that's another reason we need to

repeal the whole health care law because it's bad for patients, bad for providers, the nurses and doctors taking care of them and terrible for taxpayers. >> let me ask one final one that's bugging me a lot. medicare is going bankrupt. you know that, senator. you know that medicare is going bankrupt. medicaid is out of control. wouldn't we be better off solving medicare or medicaid before we go off into the wild blue yonder for a health care crisis that doesn't exist? >> we need to strengthen care for the seniors. the way we do it is not what the democrats have done which is taken $500 million from seniors on medicare to start a uh newç government program for other people to put this additional 17 million more americans on medicaid, a program that's terribly broken. half of the doctors in the country won't see those

patients. that's another reason that 26 states have filed suit in the supreme court to say, no, don't make us take these additional 17 million people. it will bankrupt our states. >> senator john barrasso, also an m.d. doctor, thank you for coming to the show. >> thanks for having me. >> let me say here the overturning of obamacare, which i greatly favor is probably not going to be an economic miracle. no miracle. there is too much future uncertainty over too many new plans yet to be decided. that's the tricky part of this. i want to overturn the thing, but it's not clear to me what will follow it and how much it will cost. let's turn to investors, experts for reaction. the president afar b miller and washington and the president of seefold, nicholas and company. michael, what's your initial reaction to this? say the mandate is overturned.

>> the mandate is overturned. i think you see some stocks actually do well. i think you're going to see some of the insurance stocks maybe do a little bit better. some of the hospital stocks not doç so well. they were going to benefit from 30 million patients. >> how can they do better if pre-existing conditions are maintained but they are not going to have the mandated population? >> i thought you said if it was overturned. >> i did. but i think the most popular thing in here is the pre-existing conditions. i don't know if republicans will be honest or not. they are going to keep that. i think insurance companies will have to pay for it. >> there is no money to cover it, larry. how do you do it. >> who do you think will pay?

insurance companies. >> ultimately. of course that will go to the policy holders. sooner or later, these things get passed down the line. this gets to be kind of a dicey problem for an investor. where do you put your money tomorrow? >> i don't know if i'm right. i think the pre-existing conditions will hold the test of time. i think that's going to hurt some of the health care stocks. on the other hand, today was a good old-fashioned risk on day. we had nice action across the board. i want to ask if it can continue. >> it can continue, larry. you saw housing. good news coming out of the housing market. you've seen the rhetoric from europe which is rhetoric. they have laid out a plan.ç i think it can continue. when it comes to health care, two outcomes. either upheld or repealed will be good for the market.

organizations, insurance companies. that's uncertainty. i think that's what's going to happen. >> i think repeal is not good for the market. it's hard to disagree with ron. he's smart and nice as hell. if it is struck down it goes back to the draws board. these guys will try to do something politically with health care with a budget they can't afford to pay for. so we are in trouble again. >> michael, the mandate, if it gets struck down, that's the heart of the law. the law doesn't stand without the mandate. >> absolutely. either one is bad. >> but the mandate is uncertain. repeal will be viewed as a rejection of policy. i think the market will like that. >> it should mean a lower tax burden and a lower regulatory burden if the mandate is repealed. i'm worried that businesses

aren't going to jump for joy and hire thousands of people until they see what's going to replace the mandate. see what i'm saying? >> there is uncertainty. >> there is no replacement to the mandate done in this election cycle. >> if that's true it's a bullish event. >> thank you very much. up next, outsourcing versus offshoring. listen closely to obama's attacks againstç romney. you will wonder does president obama even know what outsourcing means? the key question is obama saying romney is sending jobs overseas. where is romney's response. with the spark cash card from capital one, olaf's pizza palace gets the most rewards of any small business credit card!

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however the president has some selective memory. listen to what he said in 2009. >> a lot of the outsourcing referred to in the question really has to do with the fact that our economy, if it's dependent on low wage, low skill labor it's hard to hang on to those jobs because there is always a country out there paying lower wages than the u.s. not all of the jobs are going to come back. it probably wouldn't be good for our economy for a bunch of the jobs to come back. >> singing a different tune. now fast forward to the present. our next guest says president obama doesn't know what outsourcing means. is the president such an amateur economist that he did you want know the difference between outsourcing and offshoring? all right. let's talk. we have kevin williamson, national review deputy managing

editor. okay. first, outsourcing. >> outsourcing means contracting k an encore business process. if you're a hotel you don't want maids on the payroll. you hire a cleaning service. not the same thing as hiring people in china to clean your hotel. >> if i'm gm, gm outsources. different components of the car are produced in different countries. is this outsourcing? >> of course it is. it's a question of how far do you want to take it? gm doesn't manufacture tires. they don't manufacture steel, rubber, the stuff in the car. there is also a lot of components. by one study the average american car contains about 40% value added from the u.s., 50% from the rest of the world. >> now, offshoring. >> that's where you set up operations in the foreign countries. there are good reasons to do that. one thing annoying about the washington post story that set off obama's tirade is it was talking about the places where

bain opened new facilities like singapore, japan, france, germany. these are not poor, backward, third world low wage countries. one reason you might open an office in france is because you want to do business in france. it's helpful to have operations around the world if you want to provide goods and services to people who don't live next door. >> the next question, a political question an unemployed worker doesn't know the difference between offshoring and outsourcing. obama, i think, is scoring on this because the unemployed hear, jobs are going to foreign countries and mitt romney is blamed and i don't get a response from romney yet. is obama winning the political game? >> probably. it's ironic that the guy who campaigned in berlin as a citizen of the world is the guy running under the xenophobia ticket, these dirty chinese people stealing our jobs. this is pat buchanan stuff.

he ought to know better. >> protectionism. he's blaming romney for sending jobs overseas. >> blaming romney for being good at business. he doesn't even distinguish. it doesn't necessarily closing down u.s. factories and opening overseas. it's having businesses doing business all over the world. there was a bad thing in the washington post story that didn't distinguish. >> romney is a good china basher himself. >> he is. he's going to designate them a currency manipulator. every time i hear that i want to say, have you met ben bernanke? >> kevin williamson, national review. romney needs to get a response going or he'll be hurt politically. coming up we'll talk about this. we have virginia governor bob mcdonnell. he spent the day campaigning with mitt romney. i'm going to press the governor about the obama attack on

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all right. let's get right to another special guest. we welcome back virginia governor bob mcdonnell. chairman of the republican governors association. he spent the day campaigning

with mitt romney. governor, as always, welcome back. let me ask you something. >> thanks. >> you have been with romney for about a day. is he talking about the economy? is he connecting with high anxiety voters about the economy? >> absolutely. that's the top issue and the top priority for the country and for the campaign. he's focusing on jobs and economic recovery and the development of our energy resources, getting us out of debt. this is the heart and soul of what the campaign is about because of what america needs. the issue and the focus today was on why for the last couple of years president obama spent so much time on obamacare and crediting this huge unfunded mandate for space and individuals when he should have been looking at economic development. as a result of the failure in leadership we have an 8% unemployment rate now for 40 months. we need a new president. >> i get the message. we spent the better part of the show on that. i just want to ask you,

governor. uh think of you as a good message guy. you say it quickly, crisply and people understand what you're talking about. one of the criticisms of mitt romney is he has a 59-point plan but doesn't have a three or four-point plan that connects with high anxiety voters. besides obamacare, what did he talk about today on the campaign trail? >> sure. you've got to get rid of the unbelievable bureaucrat tick mandates from the epa and obamacare. and some of the other things stifling entrepreneurship. he says you have to be positive and confident about business crediting the attitude for business development. secondly, you've got to have the right tax and regulatory policies. thirdly, you've got to be able to have the kind of workforce training and education system that encourages people to want to come to america and invest here in america.

fourth, you've got to have people that understand how to create jobs. we don't have that in the white house. this is a president -- a candidate, mitt romney, that's created over a hundred thousand jobs in the private sector. went from 50th to 30th of governor of massachusetts. he gets the american dream. he can talk about it and will inspire people to grow. >> let me go to the romney, job creation story. as you know from the washington post and of course the new york times today, team obama is calling him the outsourcer in chief. they are saying while he was running bain capital they were invested in the companies that shifted jobs overseas and therefore hurt american jobs and created unemployment. whatever the details of the discussion, i'm interested in what mr. romney said in response to being called the outsourcer in chief. >> well, if i had an abysmal record like barack obama when it came to job creation i wouldn't be criticizing anybody about their jobs record.

we have lost so much in certainty and predictability in the regulatory climate in america. that's why we are recovering so slowly. it's unacceptable at 8%. look, they are picking on everything they can because they have a horrible record on job creation. it's the blameç game we see ou of washington and this administration on a host of issues. >> i appreciate that. it's a distraction, but it's an important distraction. actually, team obama is polling well on this business. does mr. romney have a response to the outsourcer in chief charge? there are a lot of responses i can see. today, did you hear him respond at all to that charge? >> no, because he's not going to respond to every lame excuse barack obama gives for why the economy is not doing well. he is talking about turning around the salt lake city olympics, creating jobs when he was in the private sector, going from 50th to 30th as governor of

massachusetts and talking about specific policies. reducing the tax burden and the regulatory burden on entrepreneurs. getting the e.p.a. and other regulators off the back of the energy industries which is killing us in virginia. the attack on natural gas and coal and nuclear. he's talking about the positive vision and won't respond to every little attack the obama people come up with because they can't run on their failed record of leadership. >> talk about the epa. they are in the news. federal court has given the epa the go ahead to regulate greenhouse gases. they can regulate carbon. that means they will regulate the heck out of your coal industry in virginia. what are you going to do about that? that seems like a problem. you mentioned the epa. let's go there. all of the sudden the epa is in the driver's seat. >> well, this is the mostç outf control federal agency that we have right now. listen, we need a good balance between protecting the environment and getting people back to work.

these policies are so unbalanced we are calling it the employment prevention agency in virginia. so many policies on coal, nuclear, natural gas, on the use of one's private property and on and on are so stacked against the job creator and the entrepreneur at a time we have 8% it's no wonder we are not recovering faster. that case isn't over, by the way. that was a d.c. circuit court opinion. hopefully people will look at whether or not there is another step to take. this is another example of an overburdensome federal government that now has at least a favorable opinion from the courts stifling the recovery in this country. >> we'll leave it there. we appreciate it, sir. all the best on the campaign trail. >> okay, larry. thanks for having me on. >> all right. we have a program note. tomorrow night, special edition of "the kudlow report" on the obamacare case as well as the congressional vote of contempt

against attorney general eric holder. that's a two-fer tomorrow. special edition. "the kudlow report" right here on cnbc. that's it for tonight's show. i want to tell you, i hope the mandate is turned back tomorrow. i sincerely hope so and i want to see real free market health care reform. consumer choice and patient choice. that's the way to do it. we'll talk tomorrow about we'll talk tomorrow about obamacare. r(t&háhp &hc [ male announcer ] introducing a powerful weapon in your fight against bugs. ortho home defense max. with a new continuous spray wand. and a fast acting formula. so you can kill bugs inside, and keep bugs out. guaranteed. ortho home defense max.

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distort the president's words. but they're not interested in rebuilding the middle class. he is. i'm barack obama and i ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ high schools in six states enrolled in the national math and science initiative... ...which helped students and teachers get better results in ap courses. together, they raised ap test scores 138%. just imagine our potential... ...if the other states joined them. let's raise our scores. let's invest in our teachers and inspire our students.