starbucks is starting to rival. but warren buffet has got going. i cannot wait to get out there. that stock has been on a tier of late. starbucks, seattle, nordstroms. i and i will see you tomorrow!see i wouldn't have if i were invest in russian equities right now. i think -- unless you're going short. >> that was white house spokesman jay carney sending an ominous warning for vladimir putin and for the stock market, while waiting for sanctions on moscow. the question is, when and how will president obama lower the economic sanctions boom? for now, stocks rally today. can investors and politicians possibly push him. plus, families of the passengers on the missing malaysian airline jet are

starting to protest. they say the malaysian government is stonewalling and even lying to them. that's coming up in "the kudlow report" beginning right now. good evening, everyone. i'm larry kudlow. we're live here at 7:00 p.m. eastern and 4:00 p.m. pacific t seems that president obama and vladimir putin's relationship is at the breaking point. we haven't seen anything like this since world war ii. today russia, a defiant putin as accused the west of, quote, crossing the line. now we await president obama's response which must be tough, clear, and properly targeted. this evening we have an all-star

political panel set to go. first, michael mcfaul who recently stepped down as u.s. ambassador to russia joins us. michael, thank you for joining us. why do you think jay carney said that stock market remark? did he do that deliberately to badg badger stock markets? what was he trying to do there? >> well, i can't say for sure but reading the tea leaves of what he said today and president obama said yesterday, i suspect they are planning the new sanctions on individuals. individuals related to the russian government, in the russian government but also probably individuals in the economy. they made very clear that if putin took this step of annexation there would be costs so i suspect there's going to be new sanctions. >> all right. let me just read a couple of names to you. you probably know these guys. this is from "the wall street

journal" editorial. alexi miller, he can squeeze ukraine on gas supplies and prices. egor, another croni and canadian became a billionaire after putin took over the kremlin. they've got a lot of assets in london and the united states and travel back and forth. is tht kind of thing that you want to see the president do? >> well, all three of those gentlemen you just mentioned are very close to president putin and unlike the list from yesterday, they do have assets abroad, like you said. he lives in europe. igor and the company have a major joint venture under way with exxonmobil. so if the administration and europeans -- it has to be together -- decided to sanctions those individuals, that would be

costl costly. >> one of the issues here is london. let me just briefly read some numbers. 70 russian stocks have been listed on the london stock exchange as depository receipts. combined in the last ten years, russia has raised $400 billion in stocks and bonds in london. last year was $47 billion alone. so the stakes are very high. will london play ball, do you think? i have not heard mr. cameron, prime minister cameron say anything. >> i think you're quite right about that. i think the feeling in the uk is different than it is in washington precisely because of what you just described. more over, politically it's important to recall that great britain and russia have been undergoing their own renaissance, you know, reset over the last several months. and so they are at a different place.

however, i want to point out a really important point. it's one thing to say you're going to sanctions individuals that are tied to the state in some way economically but that's not the entire russian economy. there are russian companies listed in london, listed around the world that have very little to do with the state and i think it's very important, as sanctions go forward, that those thinking about them distinguish between those tied to the state and in some way indirectly helping president putin doing what is he doing in the ukraine and those that have nothing to do with the state are just good -- >> but they are going to suffer. it's a pretty hard thing, ambassador, to put a wedge between the two. i think ideally you are correct. it's a great point. i don't know how you do that. you either have banking sanctions or you don't. you either have financial sanctions in the city of lon dor or wall street or you don't. let me ask you one final question. p putin said a couple times today,

no more military action. he said he's going to defend the interests of the russian speakers by diplomatic and legal means, not military means. he said he didn't want to partition the ukraine. and he said he didn't want to take any additional military action s that credible, ambassador? >> well, i'm glad he said it. it would have been worse had he not said it. let's be clear about that. but let's just be clear, a month ago he wasn't saying he was going to go into crimea either. in fact, he's never given a speech about crimea and why it's necessary to go defend russians there. i actually think today that's what vladimir putin is thinking. but if there's violence in eastern ukraine, people shooting each other, ethnic ukrainians killing ethnic russians, there will be action by president putin and kremlin to get involved. it's a precarious situation

right now. >> michael mccaul, appreciate your input here. joining me is former counsel to president clinton, lanny davis and bill crystal. let me begin with you, bill crystal. i think you just heard the discussion that we had, the importance of -- bill, what do you want president obama to do and when do you want him to do it? >> i would have liked him to have done different things five years ago when he pursued this reset. putin took the lesson that he can use a pretext to invade another country, defending the russian speaking people when he lost control in ukraine a month ago. that's why he did this. it wasn't just like crimea's

been on his mind. this was a retaliatory blow. we need to work with the rest of ukraine to bring them closer to the u.s. including military aid and guarantees. the idea that this can be done by sanctionsing a few individuals, that that's an effective response, that's silly. no boots on the ground, we're just interested in economic sanctions, putin doesn't think that way. >> but we think that way, bill. >> well, we shouldn't. we didn't always think that way and we shouldn't think this way and we have a military treaty with nato nations right next to russia. and then nato will crumble and what will the world look like then? >> lanny, let's go to you. boots on the ground, lanny? that's a big step for me.

what say you? >> it's more than the american people right, left, and center would tolerate. i think bill is a great man and with a great mind but he got his history wrong. president bush was president. my old buddy president bush, by the way, when georgia was being invaded by the then russia forces that took over the two outlier provinces. i think president obama has done it just right and the sanctions worked, i believe, in bringing iran to the table. they certainly suffered from the sanctions regime that both barack obama and hillary clinton administered. so i think right now barack obama has got it right. >> what's he waiting for, hugh hu hewitt? i thought the announcement that the president made yesterday was so inadequate and he didn't say

anything today. i mean, where are the olagards and the sanctions on banking in where is the military assistance? where is the discuss about exporting natural gas? where is the 25 or 35 permits to create liquid gas terminals? where is the comprehensive package to say we mean business to putin? >> it's not there, larry. the contempt oozing out of the kremlin against the u.s. is palpable. we have a treaty with poland. i wonder if americans -- maybe lanny will tell me this. if he decided to liberate the russian enclave, do lanny davis and democrats think we will defend our russian ally? iran's not at the table, lanny. iran owns the table. we're inviting recklessness on

the part of we might not be here today and nothing has been wrong and i worry about the next crisis, not the one that we're seeing come to a conclusion today. >> lanny, what is your response to what hugh is saying? >> i'm very worried. this may not be munich all over again but i do think that nato is the place that we have to rally and take a stand. i just would like to ask you and my friend bill, is this the united states' unique role? where is europe? where is england, as larry pointed out, and where is nato? we'd like to have a lot more sound and anger out of the european union than i'm now hearing. why is it only barack obama's responsibility to do what you just said? >> bill, i want you to answer that. nato -- i'm all for the nato

military exercises. i think any financial sanctions have to have london involved and really anything has to have germany involved. what do you think, bill? >> look, it's not easy to bring the europeans along but that's what leadership is about. larry, i was on sunday thinking there are serious sanctions. many, many individuals, actually sectors of russia and industry and banking, not just a few individuals, most of whom worked the assets of the country, he announced the seven individuals yesterday. what kind of signal could that send? could he make up for it by announcing military aid and exercises with allies? it's not just poland. it's small borders right and nato. i hope they ramp it up, the u.s. response here otherwise i think

we're inviting very dangerous things all around the world. >> what do you think, on the way out, bill -- i want it to ramp up, too. i don't know why he didn't say something today. putin is all over the tape. where's our president? but putting that aside, why do you think a guy like jay carney who is not acting on his own made those comments, you better not invest right now unless you want to go short stocks? what do you think motivates that statement? >> i think these guys tend to think they can save some words that will affect reality. obamacare is great. let's put up cute ads and they will decide it's a cute program. jay carney can affect reality. it's childish. look at what the russian stock market has done. you know more about this than i do. as the president put on his minimal sanctions. isn't the russian stock market up 8%? >> yes, the russian stock market

had been down 20% and it's up 8% after the last few days. the r ucuble is up. just how much money is in russia and could come out? i mean, you are right. people are reinvesting in russia. i don't know what that means. it's probably not exactly what we want. we have much more to discuss. lanny davis, bill kristol, hugh hewitt, great panel. thank you. later, families of the missing malaysian flight start to protest against the malaysian government. don't forget, free market capitalism, the best path to prosperity. boy, we are a long way from this russian crimea crisis. i'm kudlow. we'll be right back. we'll be ri.

ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer.

[ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ (music) defiance is in our bones. defiance never grows old. citracal maximum. calcium citrate plus d.

welcome back to "the kudlow report." we're talking putin, ukraine, and president obama. lanny, bill, and hugh. hugh, does this whole brew ha-ha become a political campaign issue, in your opinion in. >> absolutely. i think the president is lawless

in many respects domestically changing obamacare on the whim, choosing not to inform the overtime pay and lack of strategic vision abroad, we saw it in the '40 and '70s and american power gets to a low point and independents and strong democrats begin to wonder what is the party doing, what is the president doing? i think this is a huge part of the 2014 as it's developing. >> the unpopularity of president bush and the iraq war, do you think these midterm elections will be about putin and the ukraine? >> look, as you've heard, i'm very mixed on this whole subject and i do want to remind my colleagues that the american people are in a nonintervention maybe even isolationist cycle and hugh may be right.

we're tired of being always the ones called upon to police the world, always the ones to take the lead on anything that happens anywhere in the world, including the ukraine and there are a lot of americans and i'm certainly not an isolationist and believe we have to stay engage and where are the rest of the nations of europe and why does america always have to, quote, do something? why is it our president's obligation rather than nato and the people on the front line starting with germany, as you asked before? >> bill kristol, though, maybe because i'm a reagan guy, i respect lanny davis all the time. but when america goes wrong, the rest of the world go wrong. when we don't lead, the rest of the world goes off the track. i'm not for boots on the ground but i think we have to be tough and strong and targeted here. otherwise, the rest of the world is going off to the i'd. >> let me just say that i agree with that and then i'll rest and

listen to my colleagues. i agree that we have to be tougher with the sanctions as occurred in iran. we're very tough and i give president obama and secretary of state clinton credit for strengthening the sanctions regime in iran. i'd like to see that more here with mr. putin. >> bill? >> we'll see if we hang tough in iran. we've had sanctions mostly insisted on by congress. we've now let up on those sanctions in return for no real let-up on the ir iranians. i think they are going to be looking to restore american strength. some will be more interventionist and that's a good debate to have. i believe -- i'm not sure in 2014 it's an off-year election. i think it will be enough for the republicans to pick up house

seats and i think for -- if i were advising a republican presidential candidate, i would say study up on foreign policy and defense policy. you can talk all you want about having a strong foreign policy if the defense capabilities are being guided, it books moot. i think it comes back in a big way. >> hugh hewett, this was going to be my original thought but we got on to put ten ain and polit. i don't think trashing obamacare is going to be good for the gop. even in florida it was an issue. lousy jobs, poor wages, i think the gop has got to have some kind of economic growth message to clinch the deal in the senate races. i'll give you the last word. >> absolutely right. bill was talking to me earlier about tony abbott and prime minister harper in the west that is viable on all fronts.

the freedom at home, everything needs, layer wee, we're going to miss you a lot because you're not going to be pounding this desk in a couple of weeks but hopefully republicans will remember, that's what wins, economic growth and a freedom abroad. >> i'll still be around. we'll get all of you guys on the radio show. lanny davis, good to see you. >> thank you. >> as always, bill kristol, appreciate it. >> folks, sadness and shock has turned to outright anger. the family of the passengers aboard flight 370 are protesting about the lack of information that they are getting from the malaysian government. we'll have a live report on that and the search for the plane next up on "the kudlow report." " announcer: where can an investor

be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

more than a new interior lighting system. ♪ it is more than a hot stone massage.

and more than your favorite scent infused into the cabin. it is a completely new era of innovation. and the highest expression of mercedes-benz. introducing the 2014 s-class. the best or nothing. welcome back to "the kudlow report." new information is coming in from the thai military. >> reporter: good evening. we have two developments. even with the new pieces of information, investigators cannot say where the jet is or what happened. first, the plane took a gentle 20-degree turn after the pilot said "all right, good night."

the turn was programmed into the jet's flight management system. here's the most significant development reported first by tom costello on "nbc nightly news." the information to make that turn was preprogrammed. let me repeat that. the coordinates to turn the plane were put into the auto pile low computer at least 12 minutes before they radioed "all right good night" shortly after takeoff. why would someone who put a turn back to kuala lumpur into the auto pilot? it may be the pilot who has extensive experience was being prudent and knows the old school rules of flying, always have a plan in place before an emergency arises or it could also reveal that this was all planned for yet an inexplicable reason.

the other big news is that authorities in thailand say they may have radar data from the morning of march 8th that shows the flight 370's flight route. now, when thai officials were asked why 11 days later they are only now releasing the information, a spokesman said because thailand was never asked. the families are now -- the families of the passengers are none too happy about the flow of information in the case some have threatened to go on a hunger strike to demonstrate their hunger and are hoping to reveal officials to do more and do that quickly. larry? >> kerry, thank you for that. second of all, the thai government, that's the most ridiculous b.s. i've ever heard. the preplanned turn in. computer system, you were saying that the pilot is an old-school guy who might have set this up? i'm not sure i understand that. >> okay.

if you've been flying for a long time, you know the old-school rules. when you're taking off in your plane, you need to always be planning for an emergency. you don't have an emergency but you say, if i have an emergency, what do i do? it's common for an experienced pilot to say, if i run into an emergency, i can put on auto pilot and go back to a landing location. so that is the theory that perhaps this is just somebody who put it in or was it somebody who put it in for nefarious reasons and that they don't know. >> if you put it in, doesn't that dictate the plane's turn, or am i wrong there? >> no, you have to push the button and say execute. >> very interesting, kerry sanders. i don't know if i understand all of this, to be perfectly honest. we appreciate your help. when vladimir promised no military action, that is if you believe it, investors also liked the strong housing permit data.

tomorrow is fed day and janet yellen's big day in the spotlight. i'm going to ask whether she's going to confuse everyone. we're talking about your money and we're going to talk to our money experts next up on "kudlow." "kudlow." [ male announcer ] how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. with investment information, risks, fees and expenses i just ah woke up today and i said i need something sportier. annnd done. ok maxwell, just need to ah contact your insurance company with the vin number. oh, i just did it. with my geico app.

vin # is up to the loaded. ok well then jerry here will take you through all of the features then. why don't weeeeeeeeeeee go out to the car. ok, i'll just be outside... ok, yeah. his dad is my boss. yeah. vin scanning to add a car. just a tap away on the geico app.

all right.

the markets ended a little higher. is wall street going to be right, they put their faith in putin? i don't know. here now, forbes magazine executive editor. michael farr and phil orlando, chief market equity manager. phil, let met begin with you. i don't want to speculate but from a very good piece in "the new york times" by an old friend landon thomas who is in london, investors have put a lot of money, american investors, pimpco and blackrock have put a lot of money into russian stocks, into the russian stock market. investors bought 325 billion in russian stocks and bonds.

235 billion was in gas alone. the question is, what if they pull out? what if blackrock pulls out? what if a lot of people pull out? i don't think this story is over yet. >> >> you look at the bricks over the last few years and china and india were considered to be the investable countries because in part, political instability. so you've got very bold investors that will put some money in. we've been nibbling over the last couple of days but i wouldn't consider what we've done to be significant in any way. >> i mean, the question, mike to you on this, is putin more or less in control with respect to these financial flows? still, jay carney, the white

house spokesman, made an odd statement. he said, don't invest in russia unless you're short. i have no idea what it means. maybe that will keep putin on a short leash. >> i think it will and i think it will to the extent that the economy has already gotten bad. markets have gotten bad over the course of the last year. if those investments start to leave and the dollars start to leave, people start to suffer and his support base erodes. >> the money they are raising in lond london, the money through the big stock markets and funds, this is a big thing. russia doesn't have a balanced economy. outside the energy sector, what have they got? >> i have doubts about how much putin really cares. i get what you're saying, michael, but he was in georgia a couple of years ago.

i think the way he's weighing it, larry, if i do something like this every couple of careers, the solidarity and support that i get from the nationalism with russia will outweigh but i don't think he cares that much about economics. >> i think you're right. okay, he doesn't really care. he's an ultra nationalists and that's his goal here. but if the ruble collapses as it did in 1998, putin's got himself a real economic problem. he's got a real problem. >> he's very clever and he's outmarted president obama every step of the way. he was able to do this without military action. >> right. >> i don't see him stopping here, unfortunately. >> unfortunately. phil orlando, tomorrow is janet

yellen day. what i gather, get your take on this, they are going to get rid of the unemployment rate as the target for the fed funds' policy rate so there will be no forward guidance on unemployment. but they are going to substitute it for a bunk of market labor indicators. i don't know what it's going to be. i have no idea. but they are going to have three or four indicators which, in my judgment, is inexplicable. she will not be able to explain that at the news conference tomorrow and she's going to substantially and totally confuse investors' minds. >> we've been hearing variations on this last year, larry. and members of the federal reserve have been unhappy with the unemployment rate. they didn't feel it accurately

reflected economic growth and employment growth in the u.s. economy. what the fed's been looking at has been the participation and the u-6, the labor impairment rate. the fed thinks those are better metrics. >> why don't they say, let's take a look at hours worked? some say that's a very important indicator. so you have four or five things. it's utterly confusing. there's no rule or rhyme or reason. that may be to the fed's advantage. i grew up in the vulcar days when they didn't give you any guidance at all. >> folks like me and you, once we see what they are putting in the basket, we'll be able to analyze it and track it once we know what the gruound rules are. but i think it's better measurement of improvements in the labor economy. >> much too complicated for me. i'm not going to be able to

reason this through. >> but basically they are confusing the rules. they are changing the rules in the middle of the game. they said, we're trying to get to 6.5%. as soon as they get to 6.5%, they say we don't like that number. charlie says that the unemployment mandate is an inappropriate mandate to start out with. maybe if they start gerrymandering the data they don't have to do anything. >> maybe they should use a tailored rule. >> i think they are backing into it, is what i think. i think they want to mine it and find the statistics that keep interest rates at zero. >> for the rest of our lives? are you a buyer or seller? >> i'm a buyer. i think the biggest push is lower labor unit costs and that's the untold story. >> that's exactly right. all right.

i've got to get out of here, thanks, michael, phil, good luck tomorrow janet yellen. the deadline tomorrow for obamacare enrollment is 13 days away. you should be prepared for a mad flurry of last-minute rule changes and exemptions. but there is talk about appointing a watchdog to keep the spending under control. that is next up on "the kudlow report." report."

you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ [ male announcer ] this man has an accomplished research and analytical group at his disposal. ♪ but even more impressive is how he puts it to work for his clients. ♪

morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones makes sense of investing. ♪ makes sense of investing. so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close! new at&t mobile share value plans our best value plans ever for business. is really what makes it slike two deals in one.he $1,000 fuel reward card salesperson #2: actually, getting a great car with 42 highway miles per gallon makes it like two deals in one. salesperson #1: point is there's never been a better time to buy a jetta tdi clean diesel. avo: during the first ever volkswagen tdi clean diesel event get a great deal on a jetta tdi. it gets 42 highway miles per gallon. and get a $1,000 fuel reward card.

it's like two deals in one. volkswagen has the most tdi clean diesel models of any brand. hurry in and get a $1,000 fuel reward card and 0.9% apr for 60 months on tdi models. the white house has now claimed a sign-upsurge ahead of the march 31st deadline. what they neglect to say is how they have paid their premiums. the white house has repeatedly changed the obamacare rules to serve political needs and that's why one gop leader is calling for an independent care watchdog. house republican chief deputy whip peter from illinois. peter, wonderful stuff. let me get this right. years ago they had a special

t.a.r.p. i.d. it's calling for something like that? >> exactly. it's like the afghanistan i.g., the iraq reconstruction i.g. and the concept is a very simple one. follow the money and give an independent oversight agent that is a special inspector general, the capacity to go across all of these jurisdictional lines. here's the limitations right now. treasury can only ask treasury questions and there is dozens of agencies involved in obamacare and no one single entity has the capacity to ask all of the questions. this will be a money saver. >> i think it will be a process helper because, as i remember, in the t.a.r.p. sense, the inspector general took look at who was helping whom and who showed up in meetings and that was extremely helpful.

this obamacare is even more complex. just in recent months there's so many changes. i dare say very few people can keep track of this. >> look, you don't know if you're a book or if you look at t.a.r.p., a very, very big spending problem of $800 billion, obamacare is a trillion eight in terms of spending over the ten-year budget window. it all begs the question, which is who watching this whole scene and the answer is nobody is watching the whole scene in totality. the reality is that the whole situation has wetted itself that they don't have the dispassionate interest in trying to get to the bottom of things. they are really interested in covering up and patching through and coming up with a whole hodge

podge report and it's individual citizens that are really suffering. >> i think what president obama has ee sently done has doomed the individual mandate. i think now he has got a three-year moratorium. he's going to extend the deadline. we know that. it may be that anybody that suffers any quote/unquote hardship and the man at the center of this thing, that was the supreme court decision, i think it's dead. and therefore i think obamacare is dead. >> i think obamacare is a house of cards that is collapsing as it is being built. the trouble is that as it is being built and as it is collapsing at the same time, it's injuring people and it's having an adverse impact on the economy and you cannot get straight answers from this administration which is why you need a special inspector general

that has the breadth and capacity to go from one department to the other department to put all of the pieces together to find out what is what. >> all right. election year stuff, politico is out tonight. g.o.p. health plan could be rchl ode to nowhere and they are saying that the republicans can't get it together. they are not even going to have a vote in the house. yes, mr. mccarthy is trying to develop something. eric cantor is responsible but it's not happening and therefore, it won't be a force in this election. what say you? >> i think that there's going to be an alternative health care element debated during the debate on obamacare dave camp offered the substitute that got shun away. so, look, we have an embarrassment of riches right

now on the republican side and on the conservative side on alternatives that go after things to lower cost and fund high-risk pools and deal with pre-existing conditions and when you look at the opportunity that president obama has had, there was national consensus on cost and national consensus on pre-existing conditions and rather than focusing on those, he went for a big, massive plan which they have overpromised and under delivered and that's the worst place to be. >> last one, peter. in your judgment, a political question, politically, is it better to have a unified republican plan or is it just better to wait until 2016, just hammer away in the next six months on obamacare? which do you think is better? >> they are not mutually exclusive. i would say hammer away and the contrast is very, very clear but i think there's a big political advantage in terms of offering

the alternative. this is the vision and this is how you move forward. they are not mutually exclusive. i think you can do both and i think we will do both. >> all right. many thanks. thank you, sir. >> thank you, larry. they have been two of the best sparring partners in the history of the kudlow report. they are going to join one more time to debate economic growth. why don't we have more of it? stay with us. next up. next up.

over the years on "the kudlow report," we've had great debates on the economy. we've always tried to have both sides of the aisle represented. joining me is jared bernstein and jim of the american enterprise institute. as always, welcome back, gentlemen. jim, at the fed meeting tomorrow, there's a lot of talk about unemployment. there's a lot of talk about long-term unemployment. jimmy, i don't really think the fed has much to do with long-term unemployment. i would cut the minimum wage for long-term unemployment or i would get rid of the minimum wage or create keystone or i would stop double taxing, saving investment or do a hundred things that are blocking capi l capitalism or the long-term unemployment. >> i would like to see what the long-term unemployment rate would be.

instead of growing at 2%, we're growing at 4%. listen, unemployment still might have a faster gdp growth. i think overall free market capitalism is the best path to prosperity. we need more free market capital. subsidies, regulation that incumbent businesses. >> i love that. jared, i just made a little list here. obamacare is a job killer, the minimum wage is a job killer. the overtime regulation is a tax killer. double taxation of dividends, capital gains, double taxation of corporate profits and then there's stuff that we are not doing like building the keystone pipeline, we're going to destroy the coal industry. we have terrible welfare incentives for people. >> you're really bringing me down over here.

let me say, first of all, some of my favorite minutes on television has been talking to the two of you. despite that list of which i totally disagree with. >> really? >> yes. you'd be surprised. none of that has anything to do with the federal reserve. if you want to talk about the fed, what they are interested in doing right now i believe and we'll hear more of tomorrow is to continue to apply monetary stimulus in the interest of faster growth. if you want to bring down the unemployment rate, it's conventional wisdom that monetary stimulus is one of the ways to do so. now, unfortunately, you asked the question, why have we had so little growth? your list has nothing to do with it. here's why we have so little growth. in 2013, widely agreed upon, numbers by any group you want to cite, fiscal drag sucked 1.5 points of gdp off of growth in

2013. fiscal drag is what the answer to your question is. >> gas prices are part of that fiscal drag, right? >> part of it. >> almost all of it. >> letting the payroll tax -- >> if the economy kwas dragging it was dragging before the great recession. i think the reason is the lack of dynamism. you're not getting as many startups or the very high-technology companies under five years, the gazelles. but that's a problem from back in the 2000s. >> i'm not blaming obama. >> the bubble was some of the things that you guys have been advocated for over the years. >> housing?

am i advocating for that? >> all i want to do is remove many of the obstacles. i do believe in free market capitalism and we need more of it. simple things. the incentive structure for welfare is all wrong. double taxing dividends and corporate taxes, that stuff detracts from the economy and the seed capital that jim was talking about for entrepreneurs. the long-term unemployment rate, you can't say that's going to solve long-term unemployment. >> i happen to think you have a point there because i think what is happenings there, economists have this thing, it's an ugly word. history-ethesis. that means when something cyclical morphes into something stru structural. i don't think tax cuts are going

to do it. i think we actually need targeted programs and direct job creation targeted at the unemployed. >> i saw something interesting about this, the value of work from the national review online. very good article. but one of the things that they said that caught my eye, if you want to deal with long-term unemployment, why don't you reduce or eliminate for the unemployed? that's a sensible idea. >> i would lower that minimum wage and then maybe put a direct wage subsidy to help make up the income and combine that with things like relocation systems that people want to move to where else and get some of the good fracking jobs and make it easier for them to do so. >> gentlemen, i appreciate it very much. i really want to talk capitalism, not the fed. >> and we did. >> i thank you very much. >> jared bernstein, jim, you're boater riff specific.

that's it for this evening's show. i don't think the federal reserve should pump up anymore. i think we need free park markets, fewer obstacles to growth. ♪

[ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

with investment information, risks, fees and expenses (man) the sharks are back. they're looking for the best products and businesses america has to offer. the only thing that really matters-- what is it? money. if the sharks hear a great idea, they're ready to invest using their own money... how did this idiot make his way into the shark tank? this is absurd. and fight each other for a piece of the action. you about taught all of america one of the biggest mistakes salespeople make. you blew it. but first, the entrepreneurs must convince a shark to invest the full amount they're asking for or they'll walk away with nothing. i'm not interested because you don't want to do what it takes. who are the sharks? they're five self-made, filthy rich investors kevin o'leary is a venture capitalist who started a software business in his basement