paul ryan as veep. 40% and climbing. believe it or not it's a big blow to obama. and breaking news. there is no inflation. manufacturing is going up and the july economy, better than you think. all that in "the kudlow report" just moments away. pop quiz. can uh you spot a white collar fugitive? the fbi is looking for a smooth operator accused of taking $65 million from investors in an alleged fake mutual fund scheme. don't let it happen to you. watch tonight. sisco, good quarter. there's always a bull market somewhere and i promise to find it for you right here at "mad money." i'm jim cramer. see you tomorrow. hey, larry, what do you have for us? all right, jimmy. the july numbers show no double dip recession, at least not yet. good evening, folks. i'm larry kudlow. this is "the kudlow report." our top story this evening, after a racially vicious smear tactic, increasing calls to replace vice president biden coming from nervous democrats and even some republicans.

the weekly standard magazine counting down how much time president obama has yet to make the change. 22 days. there it is. this follows another biden blunder today. take a listen to this. >> folks, where is it written we cannot lead the world in the 20th century in making automobiles? i have not seen it written anywhere! >> last i checked, sir, we have been in the 21st century for more than a decade. but that's okay. last night's interview with mayor rudy giuliani on "the kudlow report" has america talking. he called biden's mental capacity questionable. but i say president obama, i don't want you to make the change because paul ryan is going to take your man to the cleaners. also this evening, paul ryan, the first gen-x' er on a presidential ticket is resonating with the youth. more than 18% of the youth vote

now supporting romney. and learn this new term. cenga, college educated not going anywhere americans. it's the obama generation. famed pollster john zogby joins me. finally, zero inflation for the second straight month. economic stats for july suggest no recession. i'm going to the board to show you how. we begin tonight on the road with paul ryan, the vice presidential candidate is visiting his alma matter. cnbc's eamon javrs joins us from oxford, ohio, with the details. good evening. >> good evening. paul ryan a few seconds ago finished up a speech to a large crowd at the miami university of ohio. he's class of 1992 from this university. he got a fabulous recession from a partisan crowd that cranked up the music.

i'm sure you can hear it. one of the points he made in the piece that wrapped a few seconds ago is he told this crowd the debate will be about medicare. he heard what the president had to say today about medicare. he told this republican crowd, we want this debate on medicare, we need this debate on medicare, and we are going to win this debate on medicare. that was a big applause line. the second biggest applause line is one he's been getting all week on the road in which he talked about whether or not small business owners actually built their companies. he said, if you have a small business you did build that. that got a cheer from the crowd as well. a very energetic crowd here in ohio as paul ryan barnstorms the state for the next day and a half. >> now from hope and change to attack and blame. apparently this is the obama campaign's definition of forward. the latest from team obama's smear campaign came from the

vice president himself, just unbelievable. take a listen. >> romney wants to let -- he said in the first hundred days he's going to let the big banks write their own rules. unchain wall street. >> boo! >> they're going to put y'all back in chains. >> wow. now compare that to the classy smart bright young man running on the republican side. everyone from america's mayor rudy giuliani down to mitt romney are outraged about that. but maybe not surprised. here's what rudy giuliani told me last night here on the show. >> i have never seen a vice president that has made as many mistakes, said as many stupid things. i mean, there is a real fear if god forbid he had to be entrusted with the presidency whether he has the mental capacity to handle it. this guy has never been bright. people think he talks too much. actually, he's just not very

smart. >> and mitt romney, well, he delivered this message for the president on a stop in ohio. >> mr. president, take your campaign of division and anger and hate back to chicago and let us get about rebuilding and reuniting america. >> let's get back to growth and prosperity. now that is moving forward. let's bring in our guest to discuss the story. here now is howard dean, former dnc chair, former presidential candidate. and michael steele, former republican, national committee chair. michael, uh i go to you first. our friend archer davis, former congressman called biden's remarks, you know, they're going to put y'all back in chains. he called it racially vicious. i want to know your response to the episode and what if, michael, mitt romney or paul ryan had said such a thing? wouldn't today the main stream

media just be going nuts and calling for their resignation? >> absolutely. this would be the height of hysteria around the question of racism and whether or not ryan is fit to serve on the ticket, et cetera, and that mitt romney should replace him. that's exactly what would have happened. and certainly, i even talked to a democratic reporter today who said, well, you know, biden is biden. yeah, biden is biden. but stupid is stupid, too. you don't want to make those stupid comments. african-american audience, you say something like that. when i heard it i went, ooh, really? you went there? the reality is there is no place in the game now. we need to talk about real issues. we don't need this distraction just to make a point. uh think it will be a real concern for the campaign to think about going forward. >> howard dean, jurudy giuliani may be right that mr. biden

isn't very bright. i'm not the junl of that. but there is a double standard. the main stream media is operating with a double standard. they give biden everything. oh, it was just a funny gaffe he made. no, it wasn't. they are trying to smear the romney/ryan ticket. it's a smear tactic, howard dean. is out not? >> larry, this is ridiculous. this is what a campaign does -- the republican campaign does when they can't win on the merits. they have a radical right guy who wants to turn medicare into a voucher program, cut trillions in taxes for wealthy people whether raising taxes for middle class people and they go on to something like this. it's ridiculous. also, rudy giuliani was silly to say joe biden was dumb. if you look at the foreign policy experience joe biden alone has it's greater than both mitt romney and paul ryan together. >> he was always wrong. >> wrong. >> he was always wrong. his latest, greatest idea was to

try apartheid division of iraq. >> i think that's probably going to happen. he'll be right in the long run on this one. >> this is part dumb what he said and part smear. i'm sorry. >> this is a silly thing to spend our time about. >> they don't want to -- >> this is what the republicans want to talk about. >> about the economy. they don't want to talk about entitlements, tax cuts. >> don't be silly. you are being silly and partisan. come on. >> i want to ask my buddy governor dean. okay, just for a moment, let's go to lala land. if paul ryan standing before an audience that was at least 50% african-american had made that comment, would you tonight on this program be saying, that's very silly. let's move on? >> i don't know what i would be saying. first of all joe biden -- >> no, no. same circumstance. everything is the same but --

>> i was actually about to answer the question. you can call me howard. we know each other well. >> i know. >> so it is different for a republican. it's not a double standard though. 98% of african-americans vote with a democratic party for good reason. joe biden has a rapport with the black community paul ryan could never have. >> oh! >> that's a fact. >> really? >> yes, really. >> really? so paul ryan could never have a rapport with the black community? >> i didn't say he could never. >> no. i said he doesn't have right now. the republicans don't have and they are not likely to have for a long time. >> so because -- >> given the platform of taking votes away particularly from african-americans and latinos with the voter suppression stuff they are doing. >> yeah, okay. >> and the policies that hurt members of minority groups it's unlikely. there is a reason the demographics of the republican party look the way they do.

>> black unemployment, howard, is 14.9%. hispanic unemployment is over 11%. i wouldn't exactly say obamanomics has been a boom to minority groups. >> the key is good skools and education which the republicans are cutting to give people like me tax breaks. >> oh, howard. >> that's what we should be debati debating. >> howard, the democrats ran the congress. had the house and senate for the first two years of the administration. all the cuts you're talking about, that's just not the reality, number one. >> that's what he proposed. >> proposed. not enacted into law. >> we don't want to give them the chance. >> but you guys have run this congress. since 2006 and you lost it in 2010. let's set it aside for a moment. i want to get back to the question with 14% unemployment in the black community, with democrats controlling the levers, particularly in the

senate. so propose how we are going to fix it coming out of the senate. this rapport you have with the black community allows that to happen? so we should excuse it because you have a good rapport with the black community that this administration has done nothing to address that? >> what we need to not excuse is a disgraceful economic policies of the republicans that favor the people at the top and hurt the people in the middle class. that's what this election is about. not about joe biden making a remark at some event. it's about real economic policy. that's what we would like to be debating. >> black and hispanic unemployment, by the way, under george bush was substantially below where it was today. i want to finish this. michael, my friend bill crystal in the weekly standard there calling for biden to resign. i think sarah palin is calling for biden to resign. >> i'm sure he's quaking in his boots. >> i don't want biden to resign. i want joe biden where he is because paul ryan will take him to the cleaners. michael? >> i don't want joe biden to resign either.

i have been in the room with the gaffes and i understand what it is like. one man's gaffe is another man's truth. all of that stuff. the reality is this campaign, we are in the silly stretch of it. it gets serious once we get to the convention. the debate between biden and ryan will be an excellent example of the differences philosophically between the parties. it will be fun. >> i'll agree with that. >> keep talking, brother. >> howard dean for vice president. that's all i can say. >> i like it. >> thank you, howard dean and michael steele. >> see you. >> we always run out of time. you guys are terrific. more evidence today. the double dip is really off the table. i'll break it down and ask citi's tobias leftkovic if he agrees. we have the numbers to show obama's hope and change has turned to disillusionment and unemployment. we'll talk to youth leaders from both sides of the aisle.

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more evidence is out that suggests no july recession. i would say for the sake of the country that's a good thing. surely we can do better than 2% growth. the july numbers are coming in better. let's start with industrial production. this is manufacturing. you've got 0.5% increase in today's july number. that's pretty good. it's not fabulous, but it's good. basically, you're running about 3%, 3.5% over the last three months. that tells me no recession. doesn't tell me booming growth. it says the manufacturing sector is still alive. importantly it's a lot better than the drop we had a few months ago. there's a positive surprise for july. if i do it right we'll put up the consumer price incoming up next. look at that. whoopee. there is no inflation. uh know this is important. there are inflation hawks out there. uh i'm generally an inflation hawk. uh- i want a strong dollar tied to gold. the reality is, ooh, nothing,

deflation. the cpi is flat the last couple of months. there may be issues with food. that's a possibility but it's manageable. oil prices are coming down. you have a good combination today. rising manufacturing and falling inflation or flat inflation. that's a darn good story. if you couple this with the retail sales number we got yesterday which was up 0.8%, sales up, manufacturing up, inflation down. july is turning out to be april as well. i don't want a recession. i was worried a month or two back. maybe we can hold this. on the other hand, let me bring in tobias lefkovich, citi's chief u.s. equities strategist. what i get out of this is not a booming economy. what i get is a 2% economy.

i want to ask you, the absence of recession signals so far in july, why isn't the stock market happier? >> the market has been worrying about europe, iran, china, brazil. we are seeing data that's not particularly wonderful. even this data, while encouraging, is certainly not showing a robust economy. what's interesting to me about that data was we are seeing that, if you want to call it aftershocks of september, october last year when we saw problems in europe, particularly greece and italy with governmental change causing a pullback in senior officer survey. that's an indicator for industrial production. like clock work, nine months later we had weakening data. the good news is the last three data points showed an upward trend. >> very important. the other thing is the fiscal cliff. everyone is worried about the tax hikes that might be coming.

i know you are worried, too. >> sure. >> i get reports from various executives. i hear it on the radio. the fiscal cliff is calling it to come back already. this doesn't show businesses or consumers are pulling back significantly. are we over estimating the cliff? >> we asked investors what do you think will happen? 80% of them told us there will be some sort of extension and they will address fiscal reform next year. corporates looked at nearly 700 nonfinancial companies in the u.s. they are looking at a 13% increase in capital spending. in may they told us 11%. >> that's a terrific number. i don't see it in the capital goods orders. >> it's not across the board. some of the spending may be going on overseas. they don't seem to be saying, we are worried about europe, asia, the u.s. they have accelerated some capital spending intentions. not hugely. but encouraging data.

we'd love to see it get better. it's not there yet. >> okay. let's look at sisco today. there is a reason for this. sisco raised the dividend by 70%. stock went up a lot in moonlight trading after the close. good for sisco. would you buy it -- is it a tech play? a dividend play? you know, if you're buying for dividends there is a risk. the tax rate on dividends may be 45% if they don't fix the fiscal cliff. >> to be fair on the dividends story the obama administration's proposal is actually 23%, not the 39% plus. >> well, if it expires we won't be voting on that. if you add on the obamacare investment tax you are going to triple the dividend tax. i'm glad. for years i said sisco should raise it significantly. i worry about investors.

>> if you're guying the ten-year treasury, are you going to buy s&p 100 companies. you're still paying the taxes. i think the other story is we like tech hardware. i can't specifically argue about sisco because i don't know the dislow temperatures. in the groups we have liked, continue to like. >> favorite tech in tech hardware? >> i can't give you specific tech hardware. we like it. >> we'll leave it there. thank you very much, we appreciate it. up next on kudlow, the drought of 2012. there are companies that will profit from it. we'll tell you which ones next up. there are always winners and losers, folks. that's called capitalism. ♪

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opportunity in the drought. cnbc's brian shactman on drought watch. >> this is a major business story from farmers to food prices to water management. jackie deangelis has kentucky perspective. >> we're at american water's newest facility in owen county, kentucky, where increased water demand because of the drought is impacting the bottom line. of course at times like these it's important to monitor and keep track of reservoir levels, especially should the drought continue. we spoke to the ceo and he told us not only are they closely monitoring the situation but for now, things are on track. back to you. >> let's talk about investment opportunity. so many discussions about chemicals, but it appears there is money to be made in water. american water which recently raised the guidance. most of it is water related. awk throws off a 2.7% dividend.

irrigation companies, another way to play water in the drought. lindsay is up 30% in 2012. valmont has done better. tetra is more technical services. it's fascinating for me to go into the stories. there are so many companies doing interesting things you have to look deeper sometimes. >> there are always winners and always losers. that's part of market capitalism. >> fancy that. we haven't seen it in a while. >> nice. cnbc's brian shactman, great report. coming up, big trouble for obama. young voters who put him in office are disillusioned. hope and change didn't work out. they are now flocking to mitt romney and paul ryan. we're going to have the numbers and the young democrats of america go up against the college republican national committee. fancy that. we'll be right back. [ engine idling ]

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welcome back to "the kudlow report." i'm larry kudlow. in this half hour, 400 economists sign on to mitt romney's economic plan. but are there supply siders in

the group? free marketeers? progrowth guys? critics call paul ryan a hopelessly impractical idealogue. is he reagan reincarnated or jack kemp come back to live? first, a new poll from jz analytics that shows a romney first. support from more than 40% of the youth vote for rom new. gen-x'er paul ryan may have something to do with it. john, pleasure to see you again. what's up with this poll? this poll got my attention. 40% of the young people. obama had 66% last time around. what's going on here? >> got my attention, too. larry, we are not calling one poll a trend but it made me look. all year now obama's numbers

have been going up and down. nowhere near the 66% he got. the problem for republicans is they were polling in the 20s and low 30s. this is the first poll conducted entirely after ryan was selected on the ticket. it was done all last weekend. essentially when i saw that 41% number, i started to wonder. is there some special appeal he has number one generationally? number two, you have a growing element of libertarianism, lack of trust in government among young people. >> let's stop for a second on paul riyan. it can't be a coincidence that he's appointed to the ticket and the numbers go up. you think, a, ryan is key to the romney surge by the youth vote? >> out could be. i don't know whether it is an

anomaly or not. but the numbers are 12 to 14 points higher for romney-ryan than they were just rom uh any going just a couple of weeks ago. >> how about a fresh new face, a bright guy with a lot of good ideas. as you say, he's got libertarian strains. he loves free market economics. maybe just the freshness. maybe having a 42-year-old on a major ticket. that's something new and different. >> we have to see how it plays out. romney got a bump. last poll out had obama leading romney by 5, 6 points. the poll last weekend brought it up to a tie. 46-46. if that holds, even at 40, 41%,

young people voting for the republican ticket this is real trouble for the president's re-election. >> is there disillusionment also? you have a term, cenga, college educated, not going anywhere. you know, one hears half the college graduates can't get a job. hard to substantiate that number but it's a rough time. the whole jobs and economy thing has not turned out wl. is that part of this? ryan notwithstanding, is that a problem for obama? >> it is. it's not only a temporary phenomenon. we are getting into three and a half, four years now that young people aring e having a rough t. what's settling in isn't just disillusionment and disenchantment, confidence levels among all voters are at a low. but confidence levels among young voters are particularly low.

so is there an alternative for them to vote for? prior to the last poll we were hearing young voters talk about libertarianism, consider voting for the libertarian candidate gary johnson -- i'm sorry. you know, in double digits. but now maybe this is something that will help the republicans. otherwise there is a lot about the gop that young voters don't like. particularly on the social conservative side. >> we have seen the polls. let's hear what prominent young voters have to say for themselves. here is the vice president of democrats for america coleman el drij and alex shriver of the college republican national committee. welcome to the show. uh alex, is paul ryan going to

drive the youth vote into mitt romney's hands? how powerful is the paul ryan effect going to be? >> this is incredibly powerful. you saw it in the numbers john showed you. the youth vote was lost in 2004 but the republican nominee still overall. if the numbers stick this is an awful trend for this president. young people are not better off and they are voting on issues like jobs and can economy. half of young people don't have jobs. 3 in 10 moving back in with their parents. as we put up somebody like paul ryan, this is somebody closer in age to me than vice president biden. that brings him to the table. as we get them there, they have to keep hearing that. comparing ryan to biden. that's unusual. vice president to vice president. but maybe something's going on

there. 70 years old, joe biden, saying awful things on the campaign trail. looking at least 70 years old. now you have paul ryan, young, good-looking, fit guy, great ideas, free market economics. whoa! you're in trouble, coleman. >> well, with all due respect to alex, it's wishful thinking. joe biden may not be closer to us in age but is closer to us in terms of actually caring about this generation and the things that it will take to empower this generation to enjoy the american dream he has and that they are willing to take away from this generation. it's interesting to hear alex's take on the polls and the state of the economy. you know, this didn't take four years to get into. it was eight years under the

previous administration under the mismanagement. the same failed policies that this republican ticket would have us go back to. you know -- >> i understand. >> when you try to empower or get power as governor romney and congressman ryan are doing by alienating young voters e i think we are smarter than that and we'll show it in november. >> uh i appreciate that. i have heard that before. but i want to go back to alex. you have things here. the paul ryan factor. ryan is a different kind of politician. that's what's interesting to me. he knows the numbers. he has a clear idea of a vision, if you will, of where to go and how to fix stuff. also, it's true. the economy has not produced. no matter who you blame there is disillusionment. the job situation is not produced. how much of an advantage is that going to give young republicans? give me numbers here. just give me a sense of the advantages. >> colman, your man is running

for re-election. he has a record he has to run on. democrats can no longer blame failures on eight years. they need a new talking point. the last four years have been detrimental. >> we can use the talking point of your guy. >> 17% unemployment. >> been in congress for 12 years. >> one at a time. >> two bills passed and has continuously -- we can use that metric and it's not a secret, thank you, alex. i have been at this a while as well. your guy has bipartisan in congress for 12 years, passed two bills, none of which helped young people. he has a record to run on, too. so does the guy at the top of your ticket. he wants to run for president but doesn't want to talk about his record. we're in a good position to not only defend this president's record but to put you all on it. >> -- president four years ago. >> gentlemen, e i appreciate you coming on. we'll see if this poll is

corroborated. if the youth vote is swinging up to romney and ryan, i have to think something's up in this election. >> that's wishful thinking. >> thank you very much. coming up, 400 -- count them -- 400 prominent economists endorsed the romney-ryan ticket. at least four of them are nobel prize winners. just imagine packing 400 economists in a room. there's a scary thought. we'll take it up on the next way out. now we return to where we begin. the gift that keeps on giving. yes, vice president joe biden. here's biden in his own words. we'll be right back. >> i promise you the president has a big stick. i promise you. >> when the stock market crashed franklin roosevelt got on television and didn't just talk about the princes of greed. he said, look, here's what happened. >> barack obama.

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mitt romney made twenty million dollars in two thousand ten but paid only fourteen percent in taxes... probably less than you now he has a plan that would give millionaires another tax break... and raises taxes on middle class families by up to two thousand dollars a year. mitt romney's middle class tax increase. he pays less. you pay more. welcome back to "the kudlow report." so not one, not two, but 400 --

you heard me right -- 400 prominent economists are endorsing mitt romney's economic revival and jobs plan and criticizing president obama's own efforts. imagine 400 economists marching on the white house. calculators and all. 400 economists in the same room. imagine the advice. let's talk to the wall street journal's steve moore for a sneak peek of the statement from this elite list of signatories which is apparently still growing. here is steve moore from the wall street journal editorial board. let me ask you, steve, first of all, are there democrats on this list? any democratic economists? >> there is no party affiliation there, larry. out's an impressive group of people. there are four nobel prize economists. your buddy and mine, art laffer, marty feldstein. there is a lot of gravitasse in the movement. certainly barack obama is going

to have his list of economists who support his plan. i think this gives a good housekeeping seal of approval for the romney-ryan plan of tax reductions to get the economy moving, trim in government spending. the economists made a big deal out of the romney energy plan saying this is the way to develop our energy and increase growth and employment in the energy race. >> uh they also apparently signed on a lot of them. i don't know everybody. but according to the article they like the lower tax rates for individuals and corporations and tax reform. >> in all seriousness, the lists come out. and this is a great list. >> yes. >> but you have a core inner group that's been taken from marty feldstein who was with reagan through all the republican presidents of the last 25 years. how does that work? somebody -- is glen hubbard running this thing? you can't have all these people

advising mitt romney. i want your take on the inner group, who's in charge and is it supply side, free market, pro growth, what? >> one of the things that hurt me about the letter is so many supply side pro growth people signed it on. some of us had reservations about mitt romney. a lot of them go back to the reagan years. feldstein was the founder of the national bureau of economic rereceive. these are people who have real credentials. i hate the idea of getting 400 economists together. a lot of time the economists don't make a lot of sense. >> but these are great names. can i just say, look, i have great respect for marty feldstein. i served in the reagan administration. mart uhhy was against reagan's tax cuts. >> that's right. uh but he's a supply sider again. >> he's written better stuff. i agree. michael boskin was there when papa bush raised taxes. all these guys, this is part of

the inner circle. i'm reading from a fortune magazine. i have heard it before. not all of them really seem to sign on to the low tax growth agenda. >> you know, larry, that's all fine and good. uh agree with you. isn't it heartening to know there are at least 400 economists in this country who don't believe in the keynesian claptrap we have had for nofour years? if you go to college campuses and listen to the economics faculty you will find supportr from bankrupt ideas. i was heartened to find there are 400 professors who still believe in the free market system, larry. that's good news. >> that is good news. i agree. thanks to steve moore. we appreciate the report. up next, paul ryan, is he hopelessly impractical right wing idealogue or is he modernizing policies thof reaga

and kemp. facing off with former reagan adviser art laffer. we'll see if we can resuscitate reagan and kemp on this show. ♪ ♪ three, six, nine ♪ the goose drank wine ♪ the monkey chew tobacco on the streetcar line ♪ ♪ ♪ clap, pat, clap your hand ♪ pat it on your partner's hand ♪ ♪ right hand ♪ clap, pat, clap your hand ♪ cross it with your left arm ♪ pat your partner's left palm

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as democrats and the obama campaign try to demon yiez paul ryan, my question tonight -- could ryan actually be not just a hopelessly impractical right wing idealogue but a jack kemp-like keeper of the supply side torch. here now is washington post columnist e.j. dion and former reagan economic adviser, art laffer. e.j., i took that from your column.

i loved it. the only problem is i love uh idealogues but not left wing ones. you hang out with that crowd. right wing free market supply side idealogues are among my fav rut people. >> i'm shocked by that. by the way, your story on the economists for romney made me want to pa are a phrase bill buckley. rather be governed by the first 400 names in the boston phone book than by 400 conservative economists. uh just want to get that on the table. >> can you imagine? >> buckley said it about the harvard faculty. i think this is closer to dole-kemp or goldwater-miller than reagan-bush. i love jack kemp. he wrote me warm notes saying how wrong i was about taxes. he was a lovely guy. but ryan has taken positions on certain issues that many republican candidates are running away from. mitt romney is running away from some of the positions. in two or three weeks, there

will be bumper stickers saying let ryan be ryan. if you saw him on fox news last night he was under wraps. he couldn't talk about his budget. a lot of republicans are afraid of him. >> art laffer, in general broad terms, i don't want to get in every detail. the point is paul ryan has said he's a second generation supply sider. you and i and jack kemp and others were supposedly the first generation. lower marginal tax rates to have growth incentives. nowadays, arthur, we have to get the spending and deficits down because it's a huge problem. >> of course. >> why is that impractical? pro growth tax cuts and spending restraint. what's wrong with that? >> nothing, larry. it's perfect. what paul ryan does is far from being the idealogue people say he is. he completes mitt romney. together they make a hole that's far better than either one by himself.

to me it's a perfect ticket for a time of change. when things are going well, when the economy is prospering you probably don't want a paul ryan who really is a change agent and really gets new policies in to change the direction of the country. right now, we need a change agent drastically. dramatically. we need a change to create prosperity, growth and economic well-being in the country. paul ryan is exactly the guy who can initiate that type of policy. it reminds me of winston churchill, a war-time prime minister. when peacetime came they threw him out of office. we are in a bad situation, larry. paul ryan is the one to really complete mitt romney and get good prosperity back to the u.s. >> e.j., i want to ask you about the impractical idealogue business. free market economics is spreading like wildfire. ryan is a guy who's offering -- and it's true with romney, too. ryan wants to put consumer choice, patient choice into his

health care reforms. we have done that. we deregulated many industries steszfully. what's wrong with free market competition. uh why shouldn't ryan at least attempt to put into place that kind of vision? it may not be perfectly done. that's the vision. the free market. statism and the big government stuff and solyndra and obamacare is clearly not working. we've got to go back to the old free market model. >> how many sentences do you speak before you say solyndra in any given night? first of all, if you look at the obama health plan, it allows lots of people who can't enter the free market in health care now to enter the market with subsidies for their policies. obama care is based on a republican idea. the reason people are skeptical of shifting medicare to this new model is because the way -- and i wush uh i had the study in front of me. but it would cost seniors who

get on it about $6200 a year more for health care than the current medicare system is. if this is such a good idea why isn't ryan willing to ask current seniors who tend to be republican voters to live in this marvelous new world you guys think is so great? >> e.j., you know why, because of the politics. >> well, no, if it's so good they should want it. >> art -- >> i can't believe it. >> i don't want to get down to the details. >> it's reality. >> regarding my free market point which paul ryan supports, do you know what's popular? health saving iings accounts an medicare advantage. those things give you choice and the chance to save and invest. out's simple. >> it is. >> that's what ryan wants. what's hard about that? >> nothing. the mistalk of obamacare is they give the product way below cost. it's like putting me on a smor

gas board. i will over eat and i'm going to the caviar until i throw up. it's an awful way to allocate resources. the thing about paul ryan, larry, which we are all missing is he goes back to jack kemp. he goes to the growth economics. he is a prosperity creator. you know, you can't just look at this program or that program. you need a low rate flat tax. he's been in favor of that forever. spending restraint, paul ryan is the champion. sound money? when has jack kemp and paul ryan not been for free trade? both free traders and minimal. that will bring us back to prosperity. paul is the champion. >> e.j., your guy is a gnnatterg nabob of negativism. >> three questions about the ryan budget. why should mitt romney pay less than 1% of his income in taxes?

why does the ryan budget not balance until well after 2030? and why does he throw somewhere between 14 and 19 million people off medicare? >> i have to go. >> practical questions. >> the budget will balance with 4% growth much faster. >> i agree with that. >> thank you very much. thanks for watching. free market capitalism will prevail with optimism as well. [ male announcer ] how do you trade?

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