>> the headline, new jobs. 162,000. the rate, down to 7.4% unemployment, but we are digging deeper than the headlines and frankly, it's not pretty. good morning, everyone. the proportion of people in the work force already low. down again. a number of jobs created in may and june, revised down. part-time workers way up to a record 28 million? a quarter million drop-outs. that's why the unemployment rate went down. can we say ben is bound to keep printing? jobs do dominate the news and there's also this. the top guy at the irs wants to opt out of obama care and the irs targeting scandal touches the federal election commission. harry reid, the senator, he

insists, we must raise tax revenue. the obama phone scandal, a new story, you don't know whether to laugh or cry and all of that stock market, the 29th all time high. "varney & company" we can't wait to begin. f music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why the internet needs a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to gw. ...is going toe big. it's time to build a better enterprise. together. join us at projectluna.com

much. stuart: i'm going to call it how i see it, this is a dismal jobs report. that's my opinion. look at this, the numberab force up 240,000. that's drop-outs. that explains the decline in the unemployment rate to 7.4%. the number of part-time workers increased by 174,000, does that have something to do with the impending obama care? the total number is now a record high part-timers. former advisor to president obama austan goolsbee is

standing by in chicago. you can't be pleased by this? >> i'm not pleased, but i think you overstate in the report. it's disappointing. look, it's good the unemployment rate came down some, but the jobs numbers are what make the biggest difference and at 160 or so thousand, that's not enough to really make a dent. i think that this reflects the fact that the economy in the first half of the year has not been growing fast enough. >> please stay there, austan, i want moreecoverage in a couple of minutes. let's get to the markets because real drama on wall street. remember yesterday the 29th all-time high for the dow jones industrial average. the question today, this friday morning, how is the stock market going to react to what i'm calling a dismal jobs report? does it mean that ben's going it keep printing money and therefore, the market goes up? not sure, because right now we're seeing a flat to slightly lower open for the dow. we're going to take you there.

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take it private, 10 cents a share to 13.75. is that enough to fight off carl icahn, we'll see, we will have the opening quote in a minute. and scott shelldy in chicago. i call it a dismal jobs reportment i want to know how you guys are going to trade it as far as stock prices are concerned. >> i think the stock prices are going to lay there a little bit, stuart and see the most reaction in the bonds. we got another big bowl of cold oatmeal. this is not good for anybody. exaspiration index is high. for every job we've reated we put people on food stamps. the fed is not going to taper in front of october quest and obama care in january. mark my words, this is more of the same. >> more of the same. let's see how it works out in the stock market. it could go either way.

it's a weak report on the economy and an indication that maybe ben will keep on printing. right now we expect the dow to open flat, flat to slightly lower, looking at the futures, down, 10, 20 points and let's see the opening trend. my bet is that it's going to be ever so slightly lower. it is, but this is the kind of 6 of one and half a dozen of the other market situations at the moment and not sure how it's going to work out the rest of the day. we shall see. keep it here. and let's get into the jobs report. i want to bring back former obama economic advisor, austan goolsbee. i want you to tell me, is this laying the groundwork for real robust economic expansion in the future. by robust, can you see 4% growth anywhere on the horizon? >> i don't think this is the markers of the beginning of any kind of a -- in the short run,

robust recovery like you're describing, no. and i think the u.s. growth rate has been higher than the rest of the advanced world and it hasn't been very high, hasn't been near high enough to get the kind of significant improvements that we need on the job market. >> i'm looking at 240,000, the number of people who dropped out of the work force and another number, 28.2 million people are getting part-time work. and that's just not a strong earnings income market, is it? >> well, i think you've got to be a little careful with that. it's true that we have seen a drop in the labor participation rate and that's the weakest part of the jobs market and now with the aging population, a lot of that drop is expected. the big drops that were unexhibit iffed were in the depths of the recession. the hiring of part-time people, that's a natural process.

the only question is, how do we make the transition from temp hiring, part-time hiring and things like that to giving business more confidence that the recovery is substantial and it's going to continue and that's when you see the convergence. and look what you've got from harry reid this morning. warning fellow suspects that tax reform cannot be neutral. this friday morning as we get the jobs report. he's talking about higher tax revenue coming into the government. surely, austan, you can't think that's good for the economy now, can you? >> well, he's talking about long runs. the tax reforms would be over the next decade, so, i think -- as we have talked about on this show, i've always been in favor of some kind of a grand bargain that would have more spending cuts and more revenue and is oriented around long-term. so i don't think that his statement had anything to do with the short run business

cycle. >> look out for the rest of the year. can you see us getting to 3% growth this year, calendar year. >> for the whole year, no. i don't see that, and i've been saying, and especially given the first half that we had was as weak as it was, i think it'd be pretty tough. and i'm hopeful. though, i'm still not convinced that even for the second half of the year we'd get the 3%. i'd be pretty happy if we did that, but i don't see that. >> you had a lot to do with organizing president obama's economic policy in his first term. any regrets about what you did? >> well, you know, the context most of the time i was there. we're fighting off the depression, another great depression and you can quibble about this or that policy and should some have been geared more longer run than short run, but fundamentally, there's no

depression and i think we're going to look back and that's a pretty big accomplishment. >> you don't think we could have gotten, 4, 5, 6% growth if we would have taken private stimulus. >> no, i do not. a, we were coming back from a public and we couldn't back to growing the way we were before and b, a massive deleveraging as people tried to get out from under debt. so i think that was not realistic, however, i think we should put some more focus, given how long this painful process has been, more focus on this transition to what we need to do not just trying to go back to the bubble-driven expansion of the 2000's i definitely think is in order. >> austan, i know the economic spokesman is on the white house lawn and he's saying that it was a solid jobs report. and i think both you and i would quibble with that. you would, wouldn't you?

>> i've got to go, but tell me in ten seconds. >> i think if there's the unemployment rate is good and that the payroll number continues to be well below. >> the unemployment rate came down because people dropped out of the work force, that's it. >> only partly. there was a bigger increase in jobs in that survey, as you know, the unemployment rate comes from a different survey and the job creation in that survey was over 200,000. >> we always enjoy having you on the show. >> thanks. >> strong results from linked in. let's get to a few stocks, individuals and says the profits are going. nicole. nicole: it's moving nicely and hitting new record highs on linkedin. it was up 9% and this was a ipo in 2011 and it dropped to 55.

and here it is, 232 and unlike facebook folks who bought that ipo and are crying, linked in has had an unbelievable run. >> reporter: what a day, all right. and then we have toyota, raised its global forecast to more than 10 million vehicles for this calendar year, that would be a record for any car company. the stock is up 35% this year and another 2 1/2% right now. here is the question, which color would you like your new google phone to come in? rave reviews for the new google phone. the stock is back above 900 a share and barely budging. back to dell. michael dell financial advisors indiesing to take it-- >> look at the stock, up 5% now. so michael dell and silver lake are trying to sweeten the bid and move it forward and closer and closer to an agreement and that's boosted this. >> it's a day trader's stock,

nicole, that's my personal opinion. the dow is down 60 points on this jobs friday. >> previous to today, we've had a solid rally. one of our stock watchers has not been totally gung-ho for this rally. and you see shah galani. and i had been in this and charles payne-- and i had been reluctant and we have to be in it. and the market is like the lottery you have to be in it to win it, you can't be on the sidelines. stuart: if i'm on the sidelines so to speak in a bank cd pays me nothing or a bond, pays little. commodities, extremely risky, gold, you're right you've got to be in stocks to some degree. you're worried about it? >> i'm worried about it because the shoe hasn't dropped. i think calling these numbers good.

the white house calling these numbers good like calling the grand canyon a ditch. stuart: the white house says it's a solid. >> i think a lot of analysts were looking 200. this is way below expectations, we need 250,000 jobs per month for about three years to get to the numbers we were prior to 2008. stuart: i take your point. you're saying, look, unless we have a robust economic recovery, this shows some real life. you can't get much higher for the dow jones industrial average than what ben bernanke does. are you saying that? >> no, i'm saying it makes me nervous that it keeps going higher, but you have to be in this because, again, you look at we are the cleanest dirty shirt in the laundry. the united states is growing, albeit moderately, however, we're still growing and see in the second and third quarter what we do. still, we are the place to be in terms of growth, in terms of

the safe haven for money and also the place to be because our stock market is the most liquid in the world and a lot of money coming out of elsewhere come in here. this is driving the market forward. stuart: we also say we're the most attractive horse in the glue factory. a and-- >> i liked this stock on monday and came out on tuesday. stuart: it was 14 or 15. >> about 14. stuart: and given our viewers if they took your advice 25%. >> is it up that much. stuart: it's 18 flat. >> he will with-- well, the earnings came out and better than concensus. stuart: you're reluctant to take a bow. >> no, i'm happy with that. stuart: i'm giving it to you, lad. thank you very much. today is all about, again, i'm calling it a dismal jobs report, but there are other big stories out there. all about obama care. congress makes a deal, an

exception, and the congressmen and their aides to the new health law and their staffers, too, great for them, maybe not for you. >> the chief guy at the irs says if i had the choice i wouldn't take obama carried' rather stay with my federal plan, yes indeed. we've got the angles covered for you, the full new hour. this jobs friday we're down 58 points as we speak. we j us heard from obama's former economic advisor. after the break we'll get the other side of the story. (announcer) scottrade knows our clients trade and invest their own way.

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. stuart: now, this is how the stock market reacted to the report. mainly down because people dropped out the work force and we're down nearly 60 points on the dow for that. time for the gold report and here is real movement. wait a second, we did have real movement earlier. we were down over 20 bucks an ounce and now we've come back because the market thinks that ben is going to keep on printing and so gold has gone back above 1300. and i want to call the former u.s. department of labor chief under george w. bush. welcome back to the program. now, i've read through this report and i've got a couple of problems with the nature of the report and i want to bring them to you. number one, the number of part-time workers went up, and it's now at a record 28 million people and part-time work. i think that's dismal. i think that's bad. and you say what?

>> i fully agree with you. we started to see the trend last month and we identified it. what we need to do, take a look at this thing for several months, but this report is extremely troubling when you look at part-time work and that you used to have a white house saying it's solid only because a quarter nearly people have dropped out of the work force. >> 63.4%, that's the participation rate. that's right around generational lows. that seems to me-- >> that's correct. >> america is not working. >> yeah, no, i mean, what we saw several years ago is for young americans, 18 to 29, this type of thing happening where you saw people dropping out of the work force and their unemployment levels over 16%. the labor force participation number is a key number because it's those americans who are going back to work or who have been on the sidelines who want to go back and participate in the work force. when you have a number that far down at 1979 levels, it's not a

sign of success and there's nothing to cheer about less americans going to work. it's not a solid report when you have a number like that. >> i've got two bright spots here, number one, the unemployment rate for women went down significantly, and the unemployment rate for african-americans down significantly. those i think you'll agree are bright spots, yeah? >> absolutely. anytime an american goes to work, that's a good thing. and to see lowering numbers, especially in the categories with women and african-americans that have been high for those to go down, that's a good thing, but again, this issue is, if you have an economic growth rate that's so miserable. 1.4 to 1.7, just a year ago, that number was trucking along at 2.4%. and whether or not the economic growth can sustain the number that we're growing now. >> just a moment ago we had austan goolsbee on the program and talking about the jobs

report. his characterization of this report was that it was disappointing and not that good is what he said. i say, it's dismal. where do you stand? >> oh, i think it's honorable for austan to be that candid and i think the real issue here is that it is dismal. it's not a great outlook for the country right now when you're trying to get people to go back to work, you're trying to refresh all of those skills and to make sure we remain competitive and you have the younger people only having part-time jobs and huge debt and living with their parents. austan is in a tough place because he was an architect for this. but when it's encumbered, whatever happened to the notion america leads the world and we out to lead the world in economic policy, jack kennedy understood it, bill clinton

understood it and ronald reagan understood it. it's a question of entrepreneurialism and let small businesses be free to do what they do best. stuart: paul conway, thank you for joining us on a very important day, jobs friday. thanks, paul. we're down 66 points now, we were down 50 or 60 right after the opening bell, we're staying right at that level. but that level is still pretty high. 15,562. get this. a reporter gets three free obama phones. she was not eligible. doesn't matter. the government hands them out anyway. my take on that is next. ♪

>> moments from now in the 10:00 hour we bring you obama care. congress and their staff get an exemption. no luck for you. you're in it whether you like it or not and we have the chief, the top guy, the irs says no thank you to the president's health care law. and we've got a new study covering a very large group of people who used to be wildly

optimistic about america's future, america's economy. they've reversed course. charles payne bringing us that report. and yes, i promise so i shall deliver. i will eat a cricket bar. cricket as in insects, on live tv. do not miss that all in the next hour. you have probably seen or heard about this before, but i find it such a blatant example of politically motivated waste and fraud, i'm going to repeat the story. here is my take on jillian and the obama phone. she's a reporter and wants to find out if she can get an obama phone. she is not eligible. she's not poor. she has a job and she receives no other government benefits, but she tries anyway. she ends up with three free phones, which you paid for. and she stands outside food stamp application offices in new york city and at every

office there are obama phone vendors. they're eager to sign her up. she tells no lies, she doesn't conceal anything, but even though she is absolutely not qualified, she's signed up seven times. on one occasion, she walks up to the vendor while she's talking on her own smart phone. on only one occasion does the system catch up with her. she gets a letter full of grammatical error asking why there's more than one application from her address. that's it. and her free phones arrive. cut through the outrage and look what's really going on here. i think it's an example of keynesian economics, just spend money, push it out there and the economy will grow. wrong. we've thrown trillions at this economy and it's growing at a 1% rate. second, the obama phone is an example of vote buying. give away free stuff and the people who get it will vote for you. whether you like it or not,

that worked. and the here is the worst part of it you're paying for it through a special charge at that appears on your phone bill and you're going to keep on paying because no government program ever goes away. remember what when the people who brought you obama phone roll out obama care, less than two months to go. [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪

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ibly1 i called the dismal jobs report. people leaving the work force and that is the real reason the unemployment rate went down. part-time workers increasing to record number under president obama. one large chunk of america shockingly pessimistic about the financial future. charles dean is here with that report. charles: after the jobs report is a robust economy anywhere in the future? a democrat is here to defend the obama phone program. super mario brothers in trouble, nintendo is a life support, not quite on just watch. and this. brrakfast bar made from ground up insects. it will be taste tested on this program today. ♪

stuart: here is where we are after a dismal july jobs report. frankly it is hard to see how ben will stop printing money with the jobs report like this. will get the details. un number of people not in the labour force, dropouts, 240,000. that is why the unemployment rate came down. the number of part-time workers up by 174,000. maybe that has to do with the approach of obamacare at a record high of twenty-eight million people. overall, i call this dismal. charles: is more dismal -- really -- we had a little bit of a trend that may be hopefully 200,000 may be adp earlier this week, may be a glimmer of hope here and there, it is shocking,

the further you delve into of the more disappointing it becomes because you look at composition or quality of jobs, retail jobs, leisured jobs, hospitality. low-paid jobs. it is the harbinger of hiring in law future, free fall dramatically, even strongholds like health care, that is beginning to fall apart. if you look at the twins' they don't bode well for the near term. stuart: characterize it for monica crowley. >> 4.8 million people out of work for six months or longer, a staggering number. you mentioned labor participation rate at record lows for couple years under president obama. what is striking is if you use the same number of people in january of 2009 when this recession was in full blast when obama came into office you would have an unemployment rate today of 10.7%. if the labour participation rate

-- charles: the mainstream media saying this is a good report rated 7.4% enabling for policiis and lying to the american public. stuart: the president issued a statement calling it a solid job -- >> would they usually do is take the same statement they have been using 4 previous months and pop in a new month. stuart: more work remains to be done today's employment report provides confirmation the economy is continuing to recover from the worst downturn since the great depression. >> the same routine we get every month every time you get a new jobs report. this recovery is technically the worst recovery since world war ii, but worse recovery in american history ended is because of government policies, obamacare is a wet blanket on hiring. stuart: i am looking at the markets. hard to say if this is a direct reaction to the jobs report which is flat. 50 point loss is not a big deal

in an index that measures 15,500. a couple standout stocks around today, i will start with weight watchers, down big. you got an explanation? nicole: i do. i am walking out here to tell you that. mobile apps, something that has been problematic for weight watchers, people are using mobile apps that are free to try to gauge their weight rather is an using weight watchers and going to wait watchers the stock is down 20%, getting sick heart. stuart: another example of the internet into an established business. >> i heard these guys talking about technology and that is what has happened at the stock exchange, the record industry, listen to things on youtube. stuart: we have had another industry. stay right there, back to you shortly. i will break away to d.c..

lawmakers asking the irs to turn over e-mail exchanges they had with the federal election commission in 2009. ira s -- irs official los lerner shared confidential tax information with the federal elections commission. monica has thoughts on that. >> last week we learned targeting of the conservative and tea party religious groups to come out of cincinnati, it came from washington, then we learned it goes to the doorstep of this white house because the irs chief counsel william wilkins, longtime democratic activist and partisan and obama appointee reviewing these files, tea party files were kicked up to his office. now we find out perhaps another government agency has been colluding with the irs to target these groups and the reason this is so important is the federal elections commission, the objective of holding these tea party groups down was to have a

material effect on election cycles. it suppressed the tea party's ability to raise money, to go out and advocate on behalf of conservative candidates, in the 2010 election cycle, the 2012 election cycle and evidence this is continuing, in the 2014. stuart: one more, the chief down there does not want health insurance through obamacare. listen to this. >> for a federal employee more likely, i can speak for myself i prefer to stay with the current policies i am pleased with rather than go through a change if i don't need to go through that change. stuart: i presume republicans will use that little bite. >> yes. you have something serious happening apart from the irony of the irs commissioner done not wanting obamacare. the irs which is up to its

eyeballs in this abuse of power against the tea party and conservative groups is the chief enforcement agent for obamacare. starting january 1st unless congress changes this you have to prove to the irs you have government sanctioned andd approved health insurance and now you have the commissioner of the irs saying i don't even want it. stuart: if i were a republican operative i would use that sound bite and leslie. i don't want it. i am checking up on your numbers. you heard this before. you heard it on this program. aaybody can get a free phone from the government, even a well-to-do journalist from the "national review". check this out. >> were you able to get a free country >> i was able to get three and i am not eligible for any of them. >> how you able to get them so easily? >> pretty much anywhere you can get food stamps, they have the news on the street, approaching

you and saying do you have a free phone yet? i say no or when i did have one i said yes and they would ask if you were on welfare of any kind and i said no but i would like to be and that got me signed up, the electronic tablet taken the home address and send it off like that i was able to get the applications. stuart: the young lady told her own story, she eventually got three free obamaphone that you pay for it by a little edition on everybody's phone bill. camera holder who is a democrat joins us right now. a you going to defend this? >> that is why i am here. stuart: a gun to defend it? >> in a way. first of all this is clearly a criminal act these people are engaging in. it is a crime to sign before a phone that they are not eligible for. stuart: it is not a crime. >> it is a crime and it should

be investigated. i spoke to people at the fcc months ago and they said and they are investigating whether there is an abuse of power or duties but that being said, she said she was not expected out of five of those. got three of eight applications. maybe there was oversight. i am not defending the process but this was one person who was able to get three phones. stuart: give us the big picture. clearly this is riddled with fraud and abuse. >> it may be the fact we have too many hand out. stuart: it is abuse. >> he is abusing the system as much. stuart: the program is open to abuse. we can agree on that. > are open to abuse. stuart: you are on the side of spend that money, get these programs, help people, spend it, get it out there and you are

presented with this obvious abuse, surely don't you want to see all these programs reformed and some of those cut stone cold dead? >> i think a lot of programs should be reformed and there should be more oversight. the problem is overseeing a federal program. stuart: cut the obamaphone program and collect? >> is not the obamaphone program. what president created it? stuart: in 2008 it was president obama who expanded the rules so you could have free cellphones. >> the technology has changed. people don't have phone lines anymore. stuart: we give poor people everything. we give them food, give them tax, a check in the mail every january, give the housing, give the rent, give them support for their utility bills, give them a phone. would you not withdraw the offer of a free phone? >> i would withdraw offers of

many things, they're too many abuses and a liberal is saying this, we are riddled with abuses and overspending and too many people are reliant on government. that being said how do we change the system? we don't >> it by journalists going out and their project is to get an extra phone. do something. show how we can change. so many -- stuart: when you can kill its own debt. we should not be in the business of having the government give cellphones to anybody. >> no cellphones, no communication, something created under george bush although it wasn't cellphones because it wasn't the cellphone era. we cut food stamps, cut everything but the republicans spend all their money and jobs overseas, where are your answers? you bash obama, every social plan to help people but you have

no solution. stuart: the president's policy of handout is fundamentally flawed. the policy of expanding government spending -- >> how do you solve -- stuart: a massive degree fundamentally flawed. it is the wrong policy. if this president were expanding the private sector you would not have this problem but he won't do that. he will not change course that his policy of spending more money, giving more stuff to people buys votes and does not create growth. the alternative policy, expanding the private sector, liberty, freedom, private enterprise, that will give you real growth and prosperity. >> like apple, like ibm, all these companies that is the sending of their jobs overseas, doing well before obama, well before 2008. the news was earlier this week obama wanted to help reform the tax cut for corporations to create this, to create jobs. charles: you know that is a

farce. there is misinformation. if china has 1 billion people by apple computers, you need to build apple computer's you are not sending american jobs there, jobs are being created because of local demand around the world. what the president can do is generate demand in america. that is how you create american jobs instead he is browbeaten, intimidated and turn american business. that is why i will open a plan because you have seven hundred billion people who wants to buy my product but that is not the same as in the job outside the country. stuart: i am out of time. >> there is too much reliance on the government. i agree with that but at the same time i don't think we should just cut all social spending. there are people who need it and there should be oversight and people who are engaging in these activities should be prosecuted. stuart: those that reporter

needed those three phones. that is bad of me. thank you very much, appreciate it. i have austan goolsbee, at 4% growth, a flat no. next i will ask a harvard professor the same question. what does liberal academia think about this? we will be joined by the professor after this. [ male announcer ] the mercedes-benz m-class.

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what's in ur wallet? [ crows ] now whers the snooze button? stuart: charles will followup on three stock the like in the past, magnate cit, linked in an hospitality. charles: beat by $0.11 but i would take profits share, you get a 5% profit, didn't like the guy, slowing down with samsung. stuart: they have got a run up. before you make 5%. not bad. stuart: next one was linkedin. charles: of grand slam, 35% from june 7th. i am staying in this, a high be name they be by 23% and will continue to go up, there revolutionizing that space big time. stuart: the last one is -- charles: rooster tail beat by 18%, up0% from the reiterati

in man. stuart: i would take it. ecb charles: even though is named after my mother. i love the story, graduated 15. stuart: did not meet your mom. charles: they shared a first name. stuart: that is your connection and you wouldn't sell it now. charles: from the first or second time i talked about it you get 60% and take it. stuart: on the market this is jobs friday. i am not seeing much reaction to what i am calling a dismal jobs report. down 34 points is not a direct big-time reaction to the jobs report in my opinion. here is the question. think the achieve a 4% growth rate any time soon? that is a robust and dynamic recovery. come on in, professor jeffrey frankel from harvard university and frequent guest of this program and honored guest. appreciate it. let's look beyond the jobs

report. i was expecting something better than what we got. i will look to the future. do you see 4% growth anywhere on the whole rise and for america's economy? >> you know the answer to that. we will not get 4% growth under current conditions and this morning's jobs numbers and gdp numbers for the second quarter we got two days ago are both positive but you and i agree they are well below what one would like to see and what we could have been the recovery. let's see some perspective and look at the longer-term. this was the 30 third consecutive month of employment gains and was the sixteenth consecutive quarter of positive increase in gdp and most industrialized countries don't have anything like that. stuart: i am digging deeper into this jobs report and here is what i see. until july the first six months

of the year america created 753,000 jobs but of that total, 550,000 were part time. that is not the kind of employment growth we need to create real economic growth down the road. maybe i am picking this to pieces but i don't see this as a robust job market. >> someone like yourself might take pleasure in the fact that job growth we have seen the last two or three years which is not bad has all been in the private sector. government job growth has been negative, a federal, state and local governments laying people off. stuart: so much more. this is a lot -- four years after the end of a recession and we got 1% growth? >> you and i agree about that. it was 2% growth the preceding year, the last three quarters

have been dismal as you say. i think we agree on that. we don't agree on what the cure is. stuart: we are interviewing you. what is your cure? >> something i think most economists, republican and democrat agree on, that we need to put our concerns about fiscal sustainability in the long term where they belong, the 30-year horizon addressing entitlements and for the short term we should not be cutting spending and raising taxes this year which is what we have been doing. bernard: 1 to spend more? >> this year yes. if you look at the composition of the gdp numbers and the composition of employment numbers, government jobs and gdp output are declining and the private sector increasing. of bloom is the time to worry about the budget. we should have worried about it. stuart: last one, last one. if the president got his way and

we spent $66 billion on preschool education, spend $50 billion on infrastructure and $9 billion on an infrastructure bank would that give us 4% growth? >> it moves in that direction. just like the original -- can't get through what he really wants but we could get 4% growth if we had fiscal stimulus instead of fiscal contraction in the short term, paired with addressing longer-term entitlements problem at the same time. stuart: we have to agree to defer but we like when you are on the show. we want to be the other side and harvard gives it to us. appreciate it. the birth of a new gadget, the death of another. we are talking google's new phone and nintendo after this. [ male anuncer ] how do you get your bounce?

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stuart: if you want to see a go nowhere stock market take a look at this. we are going nowhere. i also want to consider this. in the washington post which is left of center they got a new headline just appeared, quote,

the economy adds a disappointing 162,000 jobs in july. they used that word in their headline. >> mainstream media incredibly disappointing, no other way to put it that this is another month of disappointing economic numbers from -- stuart: the white house says solid. >> this is the new normal under president obama. the white house says it is solid, washington post is deeply disappointing. stuart: not deeply disappointing. you got to put your $0.02 in. charles: anything that solid isn't good. i will leave it at that. stuart: value click, internet advertising, the profits are down. i want to know about the stock. nicole: the current quarter and forecasts are weak for values like 16.5% to the downside. obviously not impressive and disappointing. and a

half. 16% just like that. you have done your duty, thank you very much. i will stay on technology. google debuted its smart phone yesterday getting rave reviews so far. people say it will be an iphone killer, i don't think so. i will ask the question from polygon.com. you have seen all these reviews. most are pretty positive, rave reviews. how good is this phone, you make a judgment. >> i don't think it is an iphone coin. it is a good phone but they are coming into a marketplace where samsung, already dominating on android devices and they are continuing to dominate. they have more powerful funds. this is the solid phone, a good phone, google was smart to get into this bind motorola but it is not quite. stuart: is it truly does intuitive thinking for you? leads you? >> it does to a certain extent. you can talk to, ask questions,

every phone does that. stuart: doesn't it pick up your conversation and fraud you with ideas having listened to what you are saying? >> i haven't used the boys dragging myself but based on what i understand you will guide -- nothing that subversive. stuart: nintendo, got to talk about that. they sold 160,000 of these we you video game consoles in the last three months. that is a huge drop from the previous quarter and you are telling me and nintendo, a name i know from 30 years ago with my young kids, nintendo is on itt sick bed or death that or what? >> especially in the consul business they are in trouble. they are planning on hitting 9.5 million sales in march of 2014, there is no way they are going to hit that, nowhere near it. on the bright side they have hand-held business picking up

12% increase so that is positive but nintendo has a lot of work to do. stuart: when you are saying sony play station and x box are killing the nintendo device? >> they will come out this holiday season and obliterate whatever chance on the consoles side so it is worrying for nintendo. they need to pick of software and fight back. stuart: your too young, you are too, i remember in the 1980s buy a gun nintendo's super mario game for my young children at the time. they were glued to it five, six, seven hours a day and now it has run its course. >> maybe. they might come back. stuart: make a definitive forecast. >> the wheat can out of nowhere and they were in deep trouble and was a huge hit. they might pull a rabbit out of there had not looking good right now. stuart: when you don't think so but you are not put it on deathwatch. >> not quite yet. stuart: last time it went straight to.

not deathwatch, sickbed. we will take that. thanks very much. senator harry reid demands congress grab more tax revenue. more of the same from the democrats? what does monica think of that? she will be here to deal with it next.

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stuart: senate majority leader harry reid warning democrats don't bother going forward with a tax overhaul unless there is significant tax revenue, an increase in tax revenue. he says i don't want anyone going into these negotiations with the illusion they can come back with a small revenue increase number. >> any revenue increased number. stuart: revenue neutral. tax reform to him must not be neutral, must be a tax increase. >> must have tax hikes. not a surprise from harry reid but what is interesting is there was a senate bipartisan group, max baucus on the democratic side, the senate finance committee chairman who has been working with republicans to do with tax reform package and this is a shot across the bout from democratic leadership saying don't even bring me anything that does not have a trillion dollars in new taxess stuart: to the senate budget resolution, they want $1 trillion in new taxes over a ten year period.

>> never about restraining government or cutting spending additional taxes. stuart: and interesting story about money and larry summers who is one of the candidates to succeed ben bernanke at the federal reserve and the others janet yellen. larry summers, in 2001 after he left office in the clinton years listed his assets as $900,000 and got the debt at $500,000. that was then. now larry summers has a net worth of $39 million. charles, how do you get it? charles: up to $39 million according to bloomberg and all from paid consulting work to the financial industry. stuart: you can make that kind of money. stuart: charles: $39 million, 2001-2009 when he went back to government. in that small window thirty nine million, i want people saying no way this guy can oversee the same people who paid him that much money and be honest about it and other people saying he is part of a group of people always feeding the private sector but when they get a chance to use

their clout to suck the private-sector dry and he is a capitalist in that sense. he went for all the money. stuart: i would say that news item you and i have just repeated, i think that makes janet yellen his competitor for the fed chair, a shoe in. you can't be the fed chairman after laying $39 million from companies you intend to regulate in the future. how can you do that? >> i totally agree. stuart: we spoke about the obamacare exemption deal for members of congress and their staff. congressman from indiana with us now, are want to start with that. you have things under way to the fund obamacare but a lot of viewers are hot under for collar about congresspeople and their staffs getting an exemption from obamacare. what is with that?

>> release so they should be furious. that is the problem with washington and what the problem is with obamacare. because they ran the bill through quickly there was an amendment that dealt with this and now we are finding out how it does deal with that and they're trying to come back in the exempt staff and members from the so-called benefits that americans have to have, but they would be exempt from those in washington. stuart: i wanted to relay the danger of our viewers that is being proposed but i want to deal with your attempt to defund obamacare. a lot of yours are cheering you on but i put it to you is not going anywhere. you can pass all the resolutions you like but obamacare is not going to be defunded at the end of the day, is it? >> i won't go down without a fight. that is what we have to do at this time. this is coming to a head when we

start to fund the government for the rest of 2013-2014. october first a new budget starts and we have to be as aggressive as possible to protect the american people from this horrendous loss. an example with how we are going to all of staff and members to be exempt is a great reason we should delay this. stuart: would you shut the government down? would you defund -- when push comes to shove what would you do? would you shut the government down in order to defund obamacare? >> we have plenty of time. this is august 2nd and we have two months to deal with this and there is plenty of time if congress wants to, we can go back and fix these problems. in that is why i think it is too ready to have that shutdown. the president wants to do that, one of his strong men to engage members of congress and two false choices, shut the government down or defund

obamacare. people in indiana are fearful of what obamacare will do to them for the rest of their life. stuart: what do you make of this political judgment? if the government is shut down, i know that is hypothetical, republicans get the blame, voters don't like it. what do you say? >> voters are not going to like it. we don't like it. let's say hypothetical i think what we have to do is focus on obamacare because people's premiums are going up, jobs are being cut, small businesses aren't growing, businesses aren't growing. we have to weigh those ramifications compared to a shutdown. i am willing to go up to the wall to do that to protect the american people from a bill that is directly hurting them today. we have the medical device in indiana hurting jobs in northeast indiana. stuart: we hear you, republican indiana, thank you for joining us. at the end of the day i say it

will take place and -- i think obamacare will happen. >> you don't think the republicans are going to try to move to defend this in any way? stuart: they will. >> the government gets funded and whether it gets funded with obamacare or without, if the republicans cannot take a stand on this a highly unpopular law where most of the american people are with them which is wrecking the economy, causing higher unemployment already, we see the fallout in the jobs picture and bankrupting the nation if they can't drive the stake into the ground on this than so many of them are dead to me. this is the duty for them. this is an easy one. of the can't take a stand on this -- before close to the clock, 48 hours and no agreement the stock market starts to plunge, the headlines read it is all in disarray and the dow is down a thousand points at the same people get pressure from their own constituents like what is going on, do anything.

my 401(k) doesn't go bust again. >> republicans have a choice to make and the burden should be starting this now the public relations thing, the burden should be put on the president who clearly wants the shutdown to do what you are saying and blame the republicans for it, the burden should be put on the democrats. this will be there shutdown because republicans are saying -- perfidy willing to extend everything else in the government except obamacare. stuart: don't assume voters see it your way. >> good point. the media is all on the democrats's side. stuart: we have the new study about a large group of people who used to be optimistic about the economy and their future. not any more. that is reversed. charles has the story next. join us at projectluna.com you are gonna need a wingman.

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stuart: del has agreed to a new offer from michael dell, the founder and the silver lake group of investors agreed to purchase $13.75 a share, a special dividend of $0.13 a share scheduled for thursday as well, dell's stock is up $13.63. according to a new analysis, 1-third of millennials since 1931 still live with their parents. our record 21.6 million millennials at home with mom and dad in 2012 but worth noting millennial males were more likely than millennial females

to live at home. i can't believe that. dismal report on jobs. i am calling it that. 262,000, the rate down 744% but only came down because a quarter million people left the work force. 90 seconds, the dow, go nowhere. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. o bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪ sthat is why i'm through theds. moon to present our latest innovation, tempur choice. it features an adjustable support system that can be personalized with a touch of a button. so both of you can get the best sleep possible...together.

goodnight love chickens. ...excuse my english, love birds.. stuart: making money with charles, he is following up on a couple stocks, first is this the print. before is the print disappointed last night. phenomenal number be the street

24% stocks pulling back because ceo says he saw a modest revenue growth. little off the company. printing options for medium, small and medium-sized businesses, 8% from the june recommendation. i would take the profits at half cash and the market pulls back to buy something better on a dip. stuart: used to be the supercomputer. charles: you should see the rates between america and china, fastest computer in the world below their mind. would be needed for? how do you collect every phone call everybody in america makes every single day? how do we do it? how does russia do it? you need supercomputers. i talked about this in february and may. stock is up 56%. i would take profits but this is one i would be looking to buy back again. stuart: a name for the distant -- charles: it is hanging in and we should see what these computers can do. stuart: that is an offer. now down one.

who is more optimistic about their economic future? a new a people shows black and hispanic americans are more optimistic about improving their living standards in the future. as for white americans, white americans, 46% say their family has a chance of improving its status. black and hispanics were more optimistic. 71%, 73%. charles, that is a reversal of the optimism rating for white people and you're going to explain. charles: when this report came out on monday i thought we should have looked into a deeper because a lot of talk about race in this country nothing about the economics of what is going on and this is a crisis in white america, a serious crisis. the number of white single mother households living in poverty surpass blacks in the past decade, investor job rate losses and more out of wedlock, 17% of whites in poverty neighborhoods and of those to 13% in 2000, 62% of white

americans read the economy poor, nineteen million white people living in poverty, two times the rate of black people. not only are the economics circumstances of white people coming down but what they feel about the future, that is amazing because i don't care what your economic policy is people have to buy into it. large part of economic success is self-fulfilling. we have to believe it is going to happen so the idea when the president gave the speech not long ago affer the trayvon martin thing that opportunities weren't out there for black people he should say a lot of people, a large portion of the population white people feel there's no opportunities for them. 46% see only a good future that is a low number. stuart: that is an astonishingly negative view, astonishingly negative footprint of the united states of america because that is a reversal. charles: the jobs report number white male participation, i think the lowest ever. i was able to go to 1970, white male participation was 80%, 73%

now. this is the lowest it has been in 50 years. maybe ever. stuart: thank you for handing it to us. this is i guess you could say at the moment many of you have been waiting for. after the break i am going to eat crickets. insects. for breakfast. i have eaten my fair share of insects in asia. i have done this kind of stuff. can we rely upon you to send us some and i will do a taste test on television? will you do that? >> you bet, absolutely. to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with dole miles you can actuay use, you never miss the fun. beard growing contest ando! ♪ win! what's in your wallet?

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lou: president obama says republicans have created phony white house scandals. senator roger wicker does not consider benghazi the irs targeting scandal or department of justice newburyport is funny. he is our guest at 7:00 eastern. stuart: i promised so i shall now deliver. this, i am fully get right here, this is a cricket bar. it is made of minced up insects, primarily crickets. it is supposed to be environmentally friendly and is in the marketplace right now. charles, and i know you will do this with me. three flavors, dark chocolate

coffee, peanut butter and chocolate conlan and the high bar with coconut, ginger and lime. what is your? charles: peanut butter and chocolate. stuart: when your joy? >> i will pass on this. i really don't want to bark on national tv. thank you. i am going to pass on this one. stuart: when you're ready? charles: i am nervous i got to tell you. stuart: i'm not nervous in the slightest. i have been all kinds of stuff, no problem whatsoever. i am taking it out. i am breaking it. have a big piece, not a tiny packet. it is julie. can you hear the cricket? charles: every time i hear this from now on you will be mad at me for eating a relative. stuart: they will never let you -- it tastes -- i don't taste insect whatsoever. it doesn't taste like chicken,

tastes like a regular chocolate bar. >> ringing endorsement. i know you are trying to sell this to me but there's no way on god's green earth. stuart: a little chilly. charles: still trying to find the peanut butter and chocolate. also maybe a couple easy backpacks if your going hiking or something. stuart: this is on the back of the label. if you have a shell fish crustacean allergy you may be allergic to this product. where did shellfish come in to crickets? charles: this is pretty good if you are on a diet. not a lot of calories or protein and you will never eat a thing after this. stuart: that is it, show is over. "varney and company" is never over. we will have more of heaven knows what. [ male announcer] surprise -- you're having triplets. [ babiesrying ] surprise -- your house was built on an ancient buburial groun.

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earlier i gave you my take. now your take. brooke says nobody deserves a cell phone, it is a luxury, they can have a landline for emergencies. karen has this remark, obama is achieving his goal. fewer people working means more dependency, it is a sad day for america. you are nodding. >> social welfare programming, it never goes away, it only grows and open to waste, fraud and abuse. by the way, all these things are levers to get as many people dependent on government as possible. >> could i get a cricket bar on food stamps? >> i would toss my cookies. >> gets me out of this.

connell: would that be part of the weekend cuisine or no? >> yeah, i liked it. connell: thank you very much for that and everything else. blaming the obamacare. there is a reason more people are working part-time instead of full-time, talking with the jobs report. we have brand-new developments just ahead. how about a move back for jay leno to "american idol." concerns also about alex rodriguez. we will see the real battle against drugs is actually a money war being waged in the baseball dugout. coming up. and a whole lot more