red hat, disappointing, got to do more work. pvh, not what i wanted to see. there's always a bull market somewhere, i promise to try to find it for you. i'm jim cramer and i'll see you tomorrow. good good evening, everyone. i'm larry kudlow. this is "the kudlow report." a new study on obama care shows soaring insurance costs and premiums for consumers all across the nation. you know what? this puts a dagger through the heart of the obama care argument that it would bend the cost curve down. instead that curve is now rising sharply. you know what? government control will do that. free market competition would have brought costs lower, and they're already lining up in cyprus for the re-opening of the banks in just a couple of hours. the question now is whether it will be a bank-run blow up or some temporary or contained cash controls. will it spread to greece, to italy or spain? i think it's doubtful, but nobody really knows.

we will have a report on the ground from cyprus. and hiring our heroes. a wonderful corporate program to hire 500,000 military veterans who not only served our country patriotically, but also have the discipline and maturity to make great additions to the workforce. perhaps this hiring help will solve the tragic 30% unemployment rate among young veterans. i'm larry kudlow and "the kudlow report" begins right now. first up this evening, a new survey by the nonpartisan group of@actuary, they're likely to skyrocket under obama care. in fact, average claim costs increase 32%. this puts a dagger into the heart of the cost control theory. the costs are going up, not down. that's what happens when government control is substituted for free market competition. all right.

let's talk calmly. here now is democratic strategist jimmy williams. we have republican pollster john mclachlan and we welcome back betsy mccoy. betsy, this thing hasn't hardly started and they are talking 62%, and how can the cost control arguments still be made? >> well, it can't, because it's obvious now for three reasons they'll skyrocket. $100 billion imposed on insurance plans and those will be passed along to consumers and it will mean $200,000 per consumer per year. when you force consumers to cover more you force consumers to pay more. imagine if your auto policy had to include wiper blades and changes. for the first time most states are going to be putting the seriously old people with

pre-existing conditions into the same pool with everybody else. they used to be in high-risk pools. 5% of people consume 49% of health care. that's how skewed the --? they broke up state pool to do this. as i tell you, plus 62% costs in california. plus 80% in ohio. plus 20% in florida, plus 67% in maryland. there's 35 to 30 million people that will wind up paying for this and out of their pocket. this will create a national revolt against obama care and against the white house. against health care, against everything. >> i am shocked and bewildered that you all are complaining and decrying obama care which has not kicked in yet and saying that that is the reason why everyone's health insurance premium is going up. here's what i do know. >> just one point. i'm not just making this up. this is a decent actuarial survey. >> it's slightly flawed, but

yes. and the secretary of health and human services, kathleen sebelius said yes. she said yes, they're basically right. the only offset is they'll put a lot of subsidies and tax credits into which will cauost us more money. secretary sebelius signed on to this. i'm not making it up. >> i'm not disagreeing with you. i want to go back pre-obama care and preeveryone's hair being on fire including mine. find me a time when a health insurance company has not increased premiums in the last 30 years. regulated by the states, and every single time what happens? they go to the state insurance commissioner and they say i want to increase premiums and they always rubber-stamp and say yes. someone explain to me since obama care has not kicked in why everyone is blaming obama for health insurance premiums going up. actuaries are nothing, but doomsday sayers. >> hold it, my dad's a -- >> let me point out -- let me

point out, kathleen sebelius says that the subsidies will mean it's affordable. subsidized isn't the same as affordable. if food costs doubled food stamps would not be the answer. >> right. actuaries are the experts, but public opinion is ahead of this. we did a survey for the yg network and people expect obama care to make the health care worse, 44%. >> that's the obama administration's fault. >> and i'm not arguing. >> i blame them for that. >> they think their premiums and their co-pays and deductibles will become more expensive and 45% to 5% less expensive. >> they're getting that right now. >> do another poll and ask them, has your health insurance company decreased your premium? >> here's what sebelius said. this goes -- >> does anyone deny what i'm saying? >> yeah, i do, because at times my business hasn't gone up and at times it's gone down. >> if you have a free market. health care costs in general, by

the way, have until this day have been slowing substantially this year. >> very slowly. i want to add to this point, this is what sebelius said. >> i'm listening. >> the problem is the present insurance plans are, quote, too skwichl skimpy. so when betsy talks about layering on mandates, what you've got here is everyone will have to pay for a cadillac plan when in fact, everyone want a compact plan. we didn't have to do it this way. that's yet insurance companies, somebody's got to pay for this, jimmy williams. you know how capitalism works. if you mandate a cadillac plan for everybody, no competition, nothing, then this is what happens, costs spiral out of control. >> larry's right because this law says the only car you're allowed to buy is a fully loaded cadillac. some people want a honda. >> however, i've never -- i worked in the senate and ever bill that was passed was that bill or bigger including when i

worked for trent lott. >> i disagree with you 1,000%. every bill is big. every bill is big. >> let me be as simple minded as i can. we could have done this differently. we meaning the government. all you had to do was give the individual or the family the tax credit. >> right. >> let them -- not the employer. let them have it and if they're low-income people then they get a refundable tax credit, okay? give them the tax credit. let them shop around all over the country. make the insurance companies go interstate competition. >> let the tax cut go to the individual, gi to georgia or mississippi or wherever i want and i buy the insurance package. if there's ten options and i take the cheapest option that's my business and none of this would have had to happen and obama would have gotten credit just like bill clinton got credit for welfare reform. >> they're taking away your choices and i've heard the president say go shop in an

exchange and you'll have all these dhoises. go into a health insurance exchange will be like going to a supermarket that only sells cereal. the only thing they'll sell is the one size fits all government-designed essential benefit package. no choice. >> i'm trying to understand something, if the federal government is now telling the american people and the supreme court, that 22 million people have to buy private health insurance, and not government health insurance because it doesn't exist, someone explain to me how that is not a free market. >> it turned them into a public utility. >> it turned them into a public utility. there are only four freakin' insurance companies in the whole country. >> not true. there are plenty of insurance companies and you buy half a dozen plans in the executive branch. >> i take it back. there are six. six is better than zero. you see what she's saying? there's only one plan and the government is not competing and --? i don't want the government in

the game, i want to give the tax credit to the individual person. >> i am totally fine with that. let me go to the supermarket and decide which of the six cereals i want to buy. they won't let us do that. >> maybe they want more pancakes. >> this is going to tie the whole country up in knots. this is just the beginning and it's a cost killer for the consumers and it will damage the economy. >> jimmy, stay where you are. we'll see you in a little bit. i have to go to cyprus and we'll have low-key discussions coming up. the depositors are lining up in cyprus as banks will re-open in just a few hours. no one knows exactly what will happen or if the cash controls will work or if the financial turmoil will spread. we know we have michelle caruso-cabrera on the ground to report for us. don't forget, folks, free market capitalism is the best path to

prosperity for health care! that's my point, jimmy williams. i'm larry kudlow. williams is still with me. we'll be right back. all right that's a fifth-floor problem... house! ha ha ha!.

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>> >> with the whole world watching, cyprus banks are going to open up in just a few hours from now. cnbc's chief international correspondent michelle caruso-cabrera joins us from cyprus again this evening with the very latest. good evening, michelle. >> larry, the banks of cyprus finally set to re-open tomorrow after being closed for nearly two weeks. however the authorities are expecting runs on the banks so they're putting place new restrictions to try to stem the outflow of depos its. first, cypriots will not be allowed to withdrawal more than $300 euros a day. they won't be allowed to cash checks and they won't be allo d allowed -- there are preparations under way for the mass distribution of cash. tonight, a huge amount of cash arriving at the central bank under heavy guard and the private security team was in place in the country with 35 armored vehicles to begin distribution of that cash from the central bank to the

branches. the employees are getting in early in order to receive training and what the new measures are and then the banks will finally re-open at noon and it's a big step for the country that's been through such a tough crisis, though, larry, they still have a lot ahead of them. back to you. >> many thanks to cnbc's michelle caruso-cabrera. >> now for thoughts on how it could play out here is the heritage foundation's nile gardner and chief market strategist and lpl financial and jack bouroudjian, ceo of bull and bear partners. is this going to be peaceful or will it be disastrous? >> it's a train wreck that we see unfolding in cyprus. basically, what you're seeing here is a dictate from brussels and the european union directed by the germans. they no popular mandate for this move which in effect is highway robbery, really. a large number of cypriots are

going to lose a huge amount of money as a result of this deal. it can only lead to potentially civil unrest. >> let me challenge you on this, highway robbery. >> this new plan is the most market-based plan i've seen coming out of the european union. what they're doing is they're basically holding wealthy depositors and other investors, shareholders, bondholders. this is a bail in among those people, not a taxpayer bailout. now i agree there are transition issues here and we're seeing one of these transition issues whether it's banks run in cyprus, but dan nile, this is what we should have done in the usa. we shouldn't have had taxpayer bailouts. we should have had bail ins and not the guaranteed depositors and it's the uninsured depositors. why not? >> i see it, really as evidence of the growing centralization of political power in europe which is unhealthy.

this is bad for national sovereignty. the cypriot parliament hasn't had a chance to vote on this measure. these terms are being dictated by brussels at the direction of the germans. i think it is very, very unhealthy for the future of europe. it is going to prompt a bank run in many other parts of the eurozone. you will see the same thing happening no doubt in spain, portugal, greece, ireland. there will be no confidence, i think, in the euro. this in my view, is the beginning of the end of the eurozone. >> so you think this new template which i believe is one year, europe is bailout weary. so is the rest of the world. so is the united states. you're telling me that this can't work? you're telling me that we should bail out, we, all these governments and all of these taxpayers around the country. i thought the heritage foundation was against bailouts? you are telling me that taxpayer bail outs are good and bails in by responsible investors and the insureds are bad?

this is the most market-is bahhed reserve i'm doing. i'm firmly against bailouts and i believe cyprus will be better off outside of the european single currency and therefore, you wouldn't need some massive bailout. i'm firmly against bailouts. >> it's all about the uninsured russian depositors anyway, by the way and let them pay for it, but i understand that point. all i'm asking is this. what evidence do we have? i want to get to my two other experts in a minute. do we have any evidence yet that greek banks are going to be run on spanish banks? bond rates have gone up in a little bit in southern europe, but not much, nile. i don't see the panic yet. >> i think it's very disturbing when you have the dutch finance minister head of the eurozone group of finance ministers saying this is the role model. that is the clear signal and shape of things to come especially for an economy like spain where already a lot of

people are moving their money outside of spain, even outside of the eurozone altogether. so i do think this sets a very, very dangerous precedent for the entire eurozone. >> know the transition will be difficult, but i don't know. jeff kleintop i want to go to you. this whole story, we don't know what will happen tonight and tomorrow morning in cyprus. i hope it will be peaceful. nobody knows. michelle caruso-cabrera laid it out and they have stipulations for cash you can take and cash you can't take, but to me, the broader policy makes a lot of sense and why shouldn't the uninsured depositors have to pay for the bank's prophecy, that's a problem. to me that's a good reform and not a bad reform. it's a market-based reform and it's a different way of thinking of a deposit in a bank. just as a depoz tor in a bank, you are now investing in that bank? certainly, we know if you put money into a bank you're

beholden to its future in some way, but the idea that you're investing is a different story. in europe, businesses are -- particularly small businesses are entirely tied to banks for their credit. you don't have the bond market that we've had for many decades in the u.s. most businesses get their hiring to do spending for their banks. if the banks are unable to lend that money and they're now looking that the deposit as a risk of making payroll, they move that money elsewhere. >> 100,000 euros was the limit. in this country it was $250,000. you know, jack bouroudjian, i was there in the 19th century when banks weren't guaranteed and there was no deposit insurance, and i saw bank runs. when a depositor puts his or her money in the bank they have to inspect the credit of the bank. the smaller depositor in europe doesn't have to worry about that, but the big, corporate depositors are not guaranteed

and why shouldn't they have to be examining the credit of the bank? that's the way the market system works? >> larry, you are absolutely right. i want to say something here and nobody wants to say it and that is that the cypriots have been living on borrowed time. their banking system has been broken now for a while. if we were in a hospital they would be in an isolation ward for the last couple of years and the fact is that they are now strong pay the price. the reality is this is an isolated case. if we were to see a run on other banks in spain and italy we would have begun to see that. the only real victim aside from the cypriot people is what is happening to the euro currency and i think that more than likely we'll see that dip and don't be too surprised if we start to see countries like germ will me do wonders with the lower euro because of the exporting problems. >> i want to show you the difference between what european banks have done. >> now gardiner, i don't agree with you, my friend, but thank

for coming on. come back. we'll talk u.s. stocks including bank stocks. i think there are a bunch of reasons to be optimistic about the american economy. home prices, business investments and tax refund, heck, the railroading boom. the likes of which we have not seen in decades. it all looks pretty fair to me. we'll be right back. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online

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you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. >> just to >> just to complete the thought from the last segment. alll of this european depoz tor

bail ins rather than taxpayer bailouts has hurt the bank, okay? let me just read this off. the italian banks this month up nearly 20%. elsewhere this southern europe, the spanish banks off 15%. the greek bank his the worst, they're off 31% and i'm averaging in a general way. here's the point i want to make, though. there's no world crisis here. u.s. bank stocks, okay? the kbw bank index is actually up 4% this month even while the european banks have gone through the difficulty of the transition from a taxpayer bailout to an investor bail-in. it's a good policy and europe ought to stick with it and their banks can recover, too. let me switch gears back to the usa. a massive revival of the american railroad industry, right? terrific stuff. it's related to our energy boom as well as other sectors. these guys have built in rail

yards and they're refueling stations, tracks, tunnels and terminals and page one story in today's "wall street journal" and you have a good rise in business investment and home prices seeing their biggest yearly gains and tax refund checks coming in and i think our economy is stronger than folks think. that's my two cents and let's see if my guests remotely agree with me. we welcome back jeff kleintop. i see optimism out there. >> i don't think this bull market's over, but i think it is overdue for a pause. none of the things you mentioned are new. they've been going for a while. one of the risks in the near-term is that we get downward earnings revisions because the expectations for the second half of this year are very high. you are looking at 10% to 13% earnings growth in q3 and q4 and housing not a big, direct contributor to profits and for that matter neither is -- neither is some of the other

business spending is, but tax refunds, that's not a huge part and you look at retail spending and it's not that huge a portion if you're looking at it on a percentagis bahhis, and i think a lot of those are priced in and we might have gotten ahead of ourselves, larry. >> jack bouroudjian, just on news today, charlie evans and they all said that easy money is going to continue and i am arguing that the economy is in pretty good shape. i was very impressed with that "wall street journjournal" arti this morning on railroading and that creates jobs that creates incomes which will help the consumer. so what's your take, jack? >> firstful all, you're right. just to take that one step further, they want to see a target of 5.5% or 6% on the unemployment rate before they stop with that easy mono pep guess what? we'll have easy money for quite a while. having said that, we are in the midst of a repricing of

equities. look, you know, at times in history you look back in hindsight and you say how did i miss that? we are in the middle of it right now. over the course of the last few months i've been talking about this reversion to the means of the multiple. well, we've gone beyond that now. it's a little of what you were talking about. now it's real confidence that's working its way into the market. i would not be surprised to see this market continue to do what it's doing throughout the year with very few pullbacks. everyone is looking for the 3%, 5%, 7% pullback, what if it's those years where the market continues to do it and it maybe gets up to an 18 multiple. if it does that, we will do that with a lot of people left in the sidelines. >> jeff kleintop, i am sensitive and i agree, profits are the mother's milk of stocks and profits disappointments can cause a correction. so i think you make a very good point. but i also am interested in how well the u.s. has held up with this cyprus, european business that changing the policy over there from taxpayer bailouts to

investor bail-ins and it's big and those banks in europe have done badly, but our banks are holding up. i think that's a pretty good sign, jeff. in fact, our market really hasn't had the panic seizure that it had, let's say in 2012 and 2011 when europe went sour for whatever reason. and i kind of think that's a shoaf strength. interested in your view on it. >> it is, but remember, it wasn't until august -- i'm sorry, until april that it really took effect. we saw arab spring if you look back. i remember we had the big earthquake and sun am ney japan in 2010 that kind of weakened the backdrop, as well. so we've had shocks to the system that then revealed what were a more fragile economic backdrop than we thought. jobless claims were falling pretty sharply. the ism was looking pretty good in january, february march in each of the last three years only to suddenly weaken as we started to see a shot come in from outside the u.s. you're right. this may not be as big a shot

this time because of the backing of the ecb. in europe we're not seeing sovereign yield spreads get out of whack and back to the banks, people are playing the banks as a play on housing and i'm not sure if it's as tight a play on housing as they think it is. >> jack bouroudjian, where are you investing? >> i think the s&p 500 is still a good buy. i would stay out of bonds and that is very, very tricky. look at those homebuilders. i still think they've got a ways to go and the financials will not lead their way into technology. this rally is a little different. it's happening with king dollar. remember, you've got a euro under 128. you have a yen that has been breaking and a pound that has been breaking and you have now seen the inverse relationship between the dollar going down and equities going up and broken. we're seeing them go up together and that is very, very bullish and that's a quality rally. i want to get your investment today. i think because of europe and

some people say because of italy, italian bond rates went up 15 basis points to 470. i don't know how important that is, but our ten-year dropped to all of the way to 184. i think that's nutty as a fruit cake. 184 on the ten-year and it keeps moving lower and it's the signal of a recession and we are nowhere near a recession. we might have sloppier profits and maybe you're going to be right on that. i'm not smart enough to know, but we're nowhere near a recession and these bonds are so overvalued, and i want to ask you, why won't the bond crowd go into stocks where they belong and why won't the european stock owners go into usa stocks which are holding up so well. >> you're right. it's unbelievable that the money continues to flow into the high-quality bond market. there's really no value there and we used to call a riskless rufsh. it's returnless risk at this point. there's yield in defensive stocks. there are yields in mlps and

money should be moving into stocks and they're not. what i worry about is investors buying in right now ahead of what might be a 5% to 7% pullback for the first time in five years and then they get their fingers burned and they don't come back. i would like them to buy on the pullback. jack talked about buying the homebuilders and i think that's a great idea and buy the manufacturing sector. in the meantime, put your money in the dollar. it's going up. >> great stuff, both of you. jeff kleintop and jack bouroudjian. thank you so much. up next, discouraged republicans may have some hope. a group of red-state governors may be changing the political landscape. they're leaving the losers like california and illinois and new york. will the red-state model revive the gop and the country? that's next up on kudlow.

>> welcome back to >> welcome back to "the kudlow report," in this half hour it's a national tragedy. nearly 30% of vet rabs under age 25 are unemployed. our parent company comcast and hundreds of others are now hoping to help change that,

hiring our heros that marks a new effort to honor our veterans' patriotic service and provide much-needed jobs. plus senator ron johnson will unveil his victims of government project. it's a series of films and articles showing how overregulation undermines our economy on a daily basis. all right. speaking of the economy. question, are the red states the answer not only to the republicans' messaging problem, but to the national economy itself? there are eight states where most americans are choosing to relocate. get this, florida, texas, arizona, north and south carolina, georgia, nevada and tennessee. and, interestingly, they all have republican governors. and that's because these governors are pushing a message of low taxes, pro-business and pro-energy, pro-fossil fuel production. it is, by the way, the complete opposite of losers like new york, illinois, california that are losing people. so let's welcome back jimmy

willia williams, betsy mccoy who broke the story in brief. this is the republican strategy, but it's a good economic growth strategy for the whole country. >> absolutely. it shows that the americans are smarter than the politicians in washington, they are voting with their feet literally moving their families to states that have low taxes, business-friendly policies and as you pointed out, fossil fuel production which provides enormous job opportunities. >> now, john. i just want to go to one of your polls before i let jimmy come in and rebutt this because you poll for the republican house members. >> right. one of your poll, we talked about this last night with reince priebus, spending cuts alone and certainly the austere message of deficits and debt is not going do it for the gop. the kind of growth policies that betsy is describing in the states will do it. right. they're looking for the economy and jobs and that's the yg network.org. you can go look at it and the

whole poll is up there, and you can see there that that's across the board like republicans, the numbers go up for deficit reduction and it stays strong. democrats, republicans, independents. they want the jobs and the economy to grow and the top two answers it's six out of ten voters and the states that betsy's talking about, some of those states don't even have an income tax. there are only eight states left without an income tax. you have people from new york moving to texas and florida, and there i'm getting a lot of congressional candidates because in the last census the districts are splitting like amoebas. the sad part is like new york, we're losing two seats every year. >> why doesn't the republican party -- in other words, spending cuts are very popular. spending cuts are very popular. there was a poll out today saying people wanted a deeper sequester spending. >> that's yet market has gone up. >> spending cuts are popular, but that's not the whole story. so she's talking about the

energy revolution, tax reform, pro-business regulatory policy. >> larry, reince priebus should step down as head of the rnc. he failed to make the 2012 a referendum on obama care even though it was highly unpopular. he failed to make it a referendum on the failed economic policies of obama, but most importantly, he fails to see the future and the red states rising. he should be delivering this message every day. >> i'm going to come to jimmy. >> red states rising. a lot of these are southern states. a lot of these are toss-up states and you can't deny that people are moving there because it's pro-business and pro-growth. >> will not deny. i think betsy is exactly right. i think people are moving to those states and retiring in those states and it's going back to the south from the midwest and the new england states because they're retiring and full pension and full healthcare. >> that is not the reason why -- >> can i finish? >> yes. >> all of those people are

moving to those states and is it making blue states less blue. is it making southern states less red. look what's happening in virginia. obama care did it twice. he carried north carolina once and he almost carried it a second time. south carolina mitt romney won with 53%, that's pathetic in south carolina. mccain, 52%. mitt romney won georgia with 53%. the south is changing. you're right. low taxes, less regulatory -- i agree 1,000% with that. >> larry, there are 30 republican governors. 30. >> and there will be less than that. >> he's trying to tell me that these red states with tax cuts and fossil fuel production and the pro-business regulations, a lot of them are right to work states, you're telling me or he's telling you that the red states are turning blue? do you buy that? >> they're battleground. i'll tell you what they are. in one regard we're victims of our own success because virginia was a very red state and then you had governors like george allen and gilmore brought in businesses and they're not older

people retiring. these are young people -- barely, he followed up on their stuff, but let me tell you. we brought people out of maryland into virginia and sure, they brought their voting habits with them. the same thing with north carolina. i worked with govern ordeal upon. he's done a great job and he passed a charter school amendment and. >> and all of those are public states and he's attracting people for jobs and bad part is we may not get our message across like betsy is saying. i think what you do is you run candidates who believe in those things. >> this chairman disavowed reagan economics even though it's working in the states. he never mentioned the constitution and he called for hiring quotas for committees in all of the states. what we need is a chairman of the republican party who sees the red states rising and will capture the electoral college. >> are you denying that the southern states, virginia, are you telling me that those states are not actually turning purple?

>> i see the people leaving new york which is one of the coolest states of all and those people are going -- >> i'll tell you, in 2016 they're going to get redder and stronger. >> your party's the titanic. >> we have to bet on that one. >> figure out the party. >> hang on. up next, very important story. the national unemployment rate for post-9/11 veterans remains above 10%, and nearly 30% for veterans under age 25. that is an outrage, but now hundreds of companies gathered in new york today to help change it. we go inside hiring our heroes. next up, it's a great story. [ male announcer ] you are a business pro.

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comcast, the parent of cnbc wants to hire military veterans. we have already hired 1,000 veterans company wide and they're planning to hire another 1,000. as a result, comcast is supporting the u.s. chamber of commerce as it hosted a major hiring fair in new york city today. our own brian shactman was there

and joins us with the details. >> and also bringing a lot of good attention to it. thank you very much. it's called hiring our heroes to get half a million vets and their spouses by the end of 2014. today at the home of the fighting 69th national guard uniity in new york city, 100 companies and nearly 1,000 veterans got together to kick off the second year of this effort. they announced this morning 100,000 jobs already placed and 100,000 more already pledged. wall street heavily invested here. citigroup hired 800 last year. wells fargo,more than 1,000 and j.p. morgan since 2011 larry, more than 5,000 hires. this is huge because the nation's unemployment, 7.7% as larry mentioned in the previous segment is about 10% for veterans of the post-nerve era and almost triple that for vets under the age of 25. how will that change? education, training and trust. the vets need to take advantage

of the g.i. bill and other services to help them understand how well their skills translate and employers can't continue with cookie cutter ways to evaluate people, larry. they need to trust that these people who defended our safety can get the job done. we see the service industry and you tell me these guys cannot work and so many of the people we see. >> first of all, it's a great cause. i'm glad you covered it and it's a phenomenal cause. i'm horrified at these unemployment numbers. i wasn't aware, particularly of the under 25. >> but let me just say it's a dual-sided thing and not just the employers. it's these veterans getting organized and know what's at their disposal. >> i would think and this is the point i was going to make. these vets have, first of all, a lot of discipline. they have leadership qualities that they learn. they know team skills and they can think on their feet. if you tried to make a composite

of what a good soldier is like, this would be it. how does that not translate into someone that doesn't work well in business? how is that possible? >> it absolutely does. >> and they're teachable, and i think the leadership factor alone, american business needs leadership. you have a whole infusion of war veterans would probably do the business community and the political community and the whole country a lot of good. that's the only way i look at that. >> i am so glad that the business community is stepping in here. they're stepping in in the breach because one of the reasons that the unemployment rate is so high is that the veterans administration has been so dysfunctional. you hear accounts every day of vets waiting two or three years to get the health care they need and it is a shame that the veterans administration is so asleep on the job, but thank goodness the business community is stepping up. >> was there any one individual

that started this off? >> yeah, kevin schpeaingel who is a 20-year veteran of the marines is founder of it and he was there all day talking to everybody. >> good. >> and he believes in all of the same messages that you said. honestly, it was one of those things where we often separate our relationship to our employer when we do our job, but this you really can't. he said, nbc, cnbc, comcast, just getting the word out and getting it on your platforms is a huge deal because i think there are a lot of people out there who don't even know that this is a problem. >> it's a fabulous story. thank you, brian shactman. we appreciate it. >> up next, our next gefrt will unveil his new victims of government project. he has examples of government regulations that undermine our economy on a daily basis and that being wisconsin senator ron johnson and he will join "the kudlow report" up next. this is america.

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in in 1990 steve bought the dump at the end of his street. he saw some major flooding in his neighborhood. he then invested more than $100,000 and converted the dump into a lake, but the court decided the dump was a wetland and threatened jail time and fines if he did not convert the lake back to its original state. 23 years later after buying the dump at the end of his street, steve is on the verge of bankruptcy. what difference does government intrusion make? for steve and his family --

everything. >> all right. big government hurts average american, that's the simple, but direct message from the new victims of government project that was launched this week by wisconsin republican senator ron johnson. the goal? put a human face on the cost and impact of unnecessary, ineffective and excessive federal regs. joining us now is the aforementioned senator ron johnson. how many of those kinds of films do you expect to make and where will you show them? >> well, larry, well, you know, i'm not quite sure how many we will, but what we want to do is have it be a very regular series. whether we do it once a month, once a quarter. my guess is this first series or this first video will spark an avalanche of similar stories and will probably be inundated with with different types of stories that we can convey to the american public. >> this guy is trying to shift this lake into whatever, some kind of business, i take it, and you're saying that the wetlands

clean water act, that the epa was on him ankle biting him every step of the way until he went bankrupt. is this basically an epa story? >> they all said he should convert that dump into a lake. when he did so somebody else in the army corps said no, that was a wetland. you have to turn it back into a dump. this is an unbelievable example of the type of bureaucratic insanity that goes on day after day and affects millions of americans. >> so i was wrong. it's the army corps of engineers. i am quite sorry to hear that. >> but as you go through this, and you're a deregulator. so far from what you've compiled, where are the big regulatory obstacles? >> well, obviously, the epa is a big problem, but larry, if you just take a look at current government policy in terms of low interest rates, you have seenior s that are victims and

people on picked incomes turning over a 6% cd, what can they invest in terms of a risk-free type of government, risk-free type of debt investment? another thing would be sos socialized medicine. we're heading right down that track, so i think there will be so many examples of this and this is the very first in a very long series. >> betsy has a question. >> i heard from another victim of overregulation last weekend. i got an email from a california man named tom killian who works from a county sheriff in california. he was just told that he was going to be pushed down from 40 hours a week to 24 hours a week so the county sheriff doesn't have to buy him health care. he said, look, i need a full-time job, i'm sending my kids to college. you know what they told him? go on unemployment and that's government telling him to do that. >> senator johnson, i am so interested in this. are people writing into you?

how are you compiling these stories of excessive regulation? >> we just released this on video yesterday. i think initially we had 11,000 views of this. i think this will really explode and so we'll just use the social media. we'll utilize the internet and hopefully this spreads far and wide and we'll get, you know, thousands of these types of stories and we'll compile those things down and we'll find the most powerful examples and put a face on the harm that government does real people and real individuals. by the way, economic harm. you were talking about economic growth. what steve wanted to do is he wanted to build homes around the lake and 23 years later after he's invested $300,000 he's on the verge of bankruptcy and those developments never happened. >> senator, i have a question. do you think the fda would regulate baby food? >> listen, we do need regulation. there's no doubt about it. i'm not saying that we don't need -- the federal government to regulate some of our economy,

but we are so overregulated in this country. layer upon layer upon layer and it does real economic harm and it harms real people and that's what we're trying to point out here. >> it may be a good idea for your segment which is you're doing. i think it's great and i think it's good to expose overregulation and perhaps you should couple that with what the regulators do well. >> you know what the difference is, jimmy. what the senator is doing is brilliant. these people are helpless. >> what the senator is doing is one-sided. it's the government against the people and what you've got -- the poll you talked about -- 61%, no they're not. 61% of the people in the survey said they're hurting because of government regulations and 32% said hurting a lot. >> seat belts hurt people. >> who can help them? >> one other point, senator. i would personally add to jimmy williams who is a pro-business democrat, basically, there is a big difference between health and safety regulations and economic regulations, and i think in the area of economic

regulations, that's where we get into all kinds of trouble and go where the government should go. i have to get out, mr. johnson. as always, we love having you on. >> have a great night? and we want to see more vignettes of this. >> kudos to him. >> thank you. jimmy williams, betsy mccaughey, thanks, everybody. i'm larry cuddkudlow. we will be back tomorrow night. vision goggles. and where beauty meets brains. it's big ideas with smaller footprints. and knowing there's always more in the world to see. it's the all-new lincoln mkz. (announcer) at scottrade, our clto make their money do more.re (ann) to help me plan my next move, i take scottrade's free, in-branch seminars...

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