the key for joining us. have a good night, and a great weekend. ♪ neil: the country may not be a whole lot better off, but watching washington dc sure is. welcome, i am neil cavuto. the ancient capital is where our incomes are up. that's not a bailout phenomenon, but a constant phenomenon. according to the census bureau, the 66,000-dollar figure is the greater washington dc metro area. surrounding suburbs in maryland

and west virginia. you're looking at a median household income of $88,000. the 25 most popular metro areas. i bring these statistics to like tonight. to put all of these bailouts in perspective. when all is said and done, it is a constant that is that. washington always does okay. but how about you? sabrina schaeffer says none of this should be a big surprise. >> none at all is right. all of the support systems of pr and lobbyists and etc. neil: do you have a lot of restaurants in the area? >> no, we don't. but the thing that bothers me the most about it is that it contributes nothing to the gdp. it contributes nothing to the economy. it is all over her head. it's a bookkeeping department. neil: you make the argument on

that justification. in government will spend money as well. >> i say that there's a bigger country than washington dc out there. again, it contributes nothing to our economy. it is just overhead. neil: sabrina, in your neck of the woods next week, one of the things i have always discovered is all of the construction going on, and i think, this place is always hopping. every time i go. why is that? >> it's not just construction or bank accounts. the traffic here is horrific. think about it before you come down here. the government is investing more in the government rather than in the economy. this is a big problem. so we are investing in federal contractors and lobbyists and lawyers and consulting costs. we know that these people are making more than they would be if they were compensated in the private economy. we are not doing what really needs to be done is to sort of

get this economy moving again. neil: the one argument, they can say that they aggravate federal workers and it's gotten lower. i've never check that out. but the one argument against the bigger government is things that the government does obviously loose a lot of ancillary businesses. so this is interesting and that is the place to be. >> that is true. but in one respect, and oversight, and regulation. neil: on the wrong areas. >> they just keep building silos. they are not connected in any way. >> i think the american people understand why this is bad. because back during the election, the polling company surveyed iowans and they said who are you more afraid of. the 1% of wealthy americans or

the 1% of this political government ruling class. by a 45-point margin, iowans wee more frightened by their governor ruling class. they realize that the bureaucrats who are working in these big buildings here in washington, there is no accountability and they were not elected. people realize that this is taking money out of the private economy, and i think that that is an important point. neil: not only were they not like the, but a lot of them don't care. when asked about them up and running in a matter of days, no two people can agree what is coming down the pipeline because i haven't gotten any information. they haven't gotten anything from uncle sam to say what is going on. >> i think the bigger problem is that all of these guys, the focus is getting elected and not one that would do after i get elected. neil: what do you think? all of these bailouts and rescues and stimulus.

if we didn't get any of it, we would be in a worse position. but the argument before it has been the foundation by which we would never have to go through as we did five years ago. >> you don't know and it has nothing to do with continuing to hire with oversight. the support system around him, secretaries and pr people. all the folks that support his election that goes into the 20 people per elected official. they will continue to go because of this. neil: fighters out from the bailouts, from going back, the stabilizing of the financial system. they were critical of it then. it just continued and was on

steroids. we think, five years later, where we are. >> in a sort of a ballooning regulatory state. things are not looking good. the median income has been rising. but outside of washington, things are looking pretty bleak. i saw some numbers that said that for 25 years old and under, the unemployment rate is 16.6%. those are very grim numbers. 50% of americans said to be in poverty today. the median household income is down this year. there's a lot of very bad economic news. despite the bailouts and despite the reinvestment act, despite quantitative easing, americans are hurting. neil: i find it a metaphor or a sign of the times on friday five years after all of this, the president speaks at a ford motor plant, talking about progress. one company that was arrested.

what do you think that? >> the president is an idealist and an activist and not anyone that's in touch with the reality of what is going on. if we took some of the money that was focused on -- i don't want to get caught up in obamacare, but some of that money, 600 million, circulating how you sign up for things. take that, let's talk about this. >> the end is not the end. you know, here is what we have learned. i don't think we learned that there was a time when we didn't have these rescues. but what started continued with college kids with their loans, cash for congress, you name it, it is set up in indebtedness.

and that continues to this day with the federal reserve continuing to provide $85 billion a month to keep the market afloat. >> this sort of generation of people who'll be words of the state. this is what the democrats want. the more that you need that government, the more people vote to keep democrats in power and we will see that regulatory stapler and get even bigger. we will see the private economy and innovation squashed. that's a terrible future. we have to call the president out for what he's doing at the ford plant. which is running back to his default position, which is campaigning. he says, i am big government and i can come here and help you. but that is not the direction that we want to take. we have to explain how to rollback this progressive state. neil: thank you both very much. speaking of all things washington. please tell me how tom delay gets his name back.

and now that all the charges had been dropped, tom on justice delayed. business news that you would never see before. because you do not have to wait years like tom for justice. come on monday, you can have it all. >> if you thought you knew neil cavuto, you have another thing coming. this monday something new is coming. it's better, a lot better.

neil: back when they were chasing him, and a hammer was hot. now that he has been completely exonerated, let's just say the hammer, former powerhouse tom delay, who just won a huge victory. a texas court throwing out a money laundering conviction, saying prosecutors failed to prosecute him for breaking any law.

tom, it's good to have you. congratulations. >> thank you. it has been a great couple of days here. >> i know what he you went through. i know that he tried to keep arguing. neil: maybe you remember raid on. the former labor secretary facing two dozen counts thrown out at the steps of the courthouse. how do you get your name back? how do you do or i don't need you because the law knows who i am and i don't care who else knows. and i don't care who else knows. i'm just very happy that people will see that this is nothing but politics and not abusing our judicial system for political

gain. neil: i always worry about my stellar image and i would worry about how i look. not that you are so parochial about those things. but don't you feel like by besmirching you, tha not one comes out and says, loops, not one says, all right, we are going to put this on the same page one would put it when they were chasing him down. because that gives a lot of people, a a lot of shows like this that don't cover this or talk to you. free reign to malign new and malign the movement. >> texture. but i am only 66 years old. >> that mean you are reentering politics? >> no, but it hasn't slowed me down a bit.

the strategy was to destroy me, bankrupt me, ruin my family, put me in the grave and dance on my grave. but i have been out there and working to create organizations and i have been involved in political campaigns. you know, i did not stop working. people that i care about know me and know what is going on. i am working on constitutional revival. the title of it is shut her down. so i will be out there waving around. neil: shut it down or shut her down? >> shut it down. it was okay, because democrats are saying, here you go again, they are going to talk about defining health care, getting their way on budget issues or a combination of both.

they will indeed force the government shutdown. what do you think? >> they are hoping that the case and that's how it happened in 1995. i was there when bill clinton shut down the government. neil: you are right about that. you know how to be played o in theainstream media now. i know that you put your confidence in this one. but the party puts confidence in the american people as well. does this hurt them more than the president? >> no, it did not. it did not hurt us in 1995. see jua bill clinton got reelected. >> let me finish, i have to tell you what happened. so did we. we didn't lose the majority. we elected two or three more senators in the next election. we only lost two seats and we held onto the majority for the longest period of time that the republicans ever had. so not only that, the best part about it was we sent a message

to bill clinton that we were crazy and we would take it over the cliff if you don't work with us. so for the next six years that bill clinton had a term, he did not get to sign one bill that he initiated. the welfare reform, balanced budget act, all the things that we did in six years were ours while he took credit for its. neil: what do you think mainstream republicans are going to get, the chris christie's other parties, that jeb bushes of the parties. >> today the republicans in the house are going to pass a must pass bill with defunding obamacare. neil: where is it go where is i? >> is going to go over to the senate. the senate is hopefully going to do what they should be doing. to pass their bill. >> let me finish.

they will pass bill. they don't have to pass that, the responsibility of the house passes what they want to pass and then you go to the committee and that is where you fight. neil: would you make the health care the holy grail and defunding a? >> absolutely. this is the only chance. i would hold it and never even flinched. the one you seem to be more into the rand paul and ted cruz camp. >> no, i am in the tom delay camp. we did in 1995 and we won. we were fighting for 21 days. we were locked up fighting tooth and nail and we won. bob dole went down on the floor on sunday afternoon and reopen the government. later on clinton said in his book that we would've just held on one day, he would havecaved.

but we got all of those aencies and we got to cut spending and we got welfare reform and balancing the budget and everything else because we stood on principle and we stood there and fought and won. neil: so you think that will be the strategy that will get you back in the white house and not just sort of middle of the road mainstream type? >> i have been out in the country. our base is totally dispirited because they don't see the republicans in the house or senate fighting. just the mention of changing the strategy and putting defunding obamacare on the continuing resolution. i cannot tell you the energy to just swept across this nation

when they saw the republicans who are filly fighting. neil: john boehner seemed to go into it kicking and screaming. >> let me also tell you that it doesn't matter what the national media says. with all due respect. because we did in 1995, we completely ignore them. all they want to do is pin it on the republicans, make republicans look bad. we had a whole communications plan and we went back to our district and we told the district out the local media, and it didn't matter what "the new york times" said in midland, texas. neil: you want to run for something again, don't you? >> no, i want to do with the lord leads me to do. i want to write a book. [laughter] neil: tom delay, thank you so much. it's great to see you again. >> it's great to see you. god bless you. neil: well, if the president is all-in-one on energy, why does

he have it out for a certain form of thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

neil: catch this. >> if we are going to it and can control our energy, we have to have an all of the above strategies. >> the all of the above strategy. neil: you know, i think the president leading merriam webster dictionary for the exact webster. it seems that the president likes to clash with traditional energy producers about hangups over the keystone pipeline. the epa's broadside in the name of clean energy. the epa setting standards on

coproducers coal producers across the country. they say that it will cost them a bundle. the white house should start thinking. we have two guests with respective positions. so let the clash began. >> i mean, i have a lot to disagree with you on. but not back, that was just fine. i think that to say to the coal industry that we will regulate you that you pollute the environment as little as possible, put differently we will do everything we can control how much you pollute the environment, it is not taking them out of all of the above. you'll still have coal power in this country no matter what for the foreseeable future. but we'll try to make it as clean as possible. i think that that is a prudent strategy. >> that is ridiculous.

>> this is about raising prices for coal. president obama said in his speech that he was going to increase this to use coal for energy. neil: he didn't say that like i'm going to raise the price. but he is he's talking about but they have to clean up their actions. >> yes. one in five people in this country depend on coal for their energy and i think it's very hypocritical that the epa is making this standard when the government turns right around and gives robert kennedy junior $1.4 billion for green energy supplies. where is the money looking into how this technology can be benefited. because there is not a single coal-fired plant that is using this technology respectively. >> the funny part is that raising the price is actually a fairly effective market mechanism for achieving a policy

objective. the other part of this -- if the market. neil: unless you're talking about natural. but for the government to say that is just dramatic. >> you are right. i'm analogizing mess for a cause for higher gasoline tax, which i also support. because that is an effective public policy for achieving what you're trying to achieve. the funny thing is -- the interesting thing is that the market is voting on coal and natural gas is surging for usage and coal-fired electricity is declining. that is good in a bunch of ways, including for the environment. neil: here's what i want to know and maybe you can help me with this. i liken it to parents with a couple of kids. one kid they like him and the other they don't like so much. >> i was never the favorite. neil: but it's all-in-one.

actually kind was the favorite. i'm kidding. one of the things that i noticed is that we love you but when push comes to shove, you're the one that we speak to about this. so what i am hearing is that we kind of like you more but we are going to go through the usual drill as saying, oh, we love everyone, but we are doing everything we can to mke it as difficult as we can for those annoying kids, coal and oil. >> democrats love natural gas because if the enemy of coal that they hate tracking. so they don't like energy. they really don't. they want americans to move backwards. neil: the are the ones of president likes. do you feel slighted? >> no, i don't feel slighted. [laughter] >> i think that green energy, if you want to become green, then let's go forward and see what

the voters say. instead of having high unemployment rates and they also support green energy. you can't necessarily make a cause-and-effect out of this. neil: clearly it is green. >> public policy is all about this. >> his favorite children are not oil and coal. and we will make sure that obviously this is a great therapy. >> you are absolutely correct. neil: but seriously, i liken it to the fact that it gets worse and worse. thank you both very much. in the meantime, a republican that wants to take all of congress is republican edge. we will have that next.

>> our message to the state and transcendent is simple. we don't want the government shutdown, and we don't want obamacare jericho. [applause] neil: republicans expecting a government resolution to keep the government going through the fall. but without funding for health

care. kerry reid reed says it's not going anywhere in the senate and even karl rove says that republicans are wasting their time thinking that this kind of walking will go anywhere at all. former reagan economic adviser martin feldstein says that there's a better way to handle this traditional budget brinksmanship. >> this type of approach isn't the way to do it? >> it's not going to happen. so we have an economy that is not moving. and washington isn't doing anything about it. the president isn't doing anything about it. maybe we can get the democratsalong that. neil: but health care, it's like it's going nowhere fast, tom delay and others like it,

republicans don't want to lose their verve on us. what you say? >> i think obamacare is a mistake. i think the american public thinks that. it's interesting that the polls are running something like 6040 against obamacare. but that doesn't mean that the democrats in the senate are going to go alongith a resolution to postpone or not is really what the republicans are calling for now. they are saying that it's not ready to go. many of them would say it's never ready to go, let's postpone it for a year. so i can understand that point of view. but i don't think that they are going to b able to persuade the senate to drop obamacare. neil: the middle ground on this issue is delayed, as a candidate said. we have a debt extension, we

raise the debt limit, and a year delay on health health care. what do you make of that? >> as they if they could do it, that would be good. i think democrats are going to say, october 1, these exchanges are supposed to begin. what are we supposed to do? not do that on that data? many would say, okay we won't do that on that day. but i think that it would be a nice idea, but i don't think it's an idea that would have been. >> imagine that the numbers are about right. but the argument that might kill some republicans is that if they were, for perfectly honorable reasons, forced a government shutdown on this, and you know how the mainstream media works, probably than shutting the government down, that would boomerang on them. do you agree with that? >> it certainly could.

i am not smart enough to know how the chips will fall. >> what would be your ideal sort of let sit down and talk about this budget discussion. >> i wrote a piece in wall street journal, which you probably have read. and i have a lot of positive feedback on it. so it says that the economy has not really grown. we are going in at less than 2%, given that the population is growing, that means that the average income isn't going up at all. real earnings are no different now than they were a year ago for the average worker. so that is not the way to go. so we need something more. what we need? we need to have some tax cuts and we need to have some of the structure activity that will put construction workers and others back to work and the jobs that follow from now. but of course we cannot do that with these very large fiscal deficits unless we tackle the

deficit. so how'd he do that? you do it by combination of slowing the growth of the entitlement program and by going after some of the government spending that is built into the tax code. neil: democrats are going to wait and see what the revenues are. >> that is what going after the spending that is in the tax code is about. so if i go in and buy a fuel-efficient car, the government rewards me. they don't send me a check, it gives me a tax break. if i buy a solar panel, the same thing happens. neil: would you raise any rates? >> i would not, i would lower rates. part of the idea is that we can lower rates and corporate rates and we could do a better job for entrepreneurs if we could close some of these deficits. neil: what about other tax rates and mortgage rates.

>> i would say take all of the deductions except the charitable deductions. i think the charitable deduction is a special case. that is the only one that stays for me. because i don't benefit when i write a check to a hospital or to the united way. they benefit. unlike my mortgage deduction or the exclusion. neil: would you take away? >> i wouldn't take away but i would put a cap on it. i would not do it on home mortgages versus local taxes. i would save you can have all of those deductions in the exclusion of employer payments for health care, you can have all of those things, but the tax break that you get from it would be limited. neil: but you tell the republicans are nervous about that and that you are lowering rates. >> lowering the rates is better. but those things are really

ending. if the government was writing checks to people to subsidize their health care or to buy a car, we would say it's spending and that ought to be cut back. we are doing it now through the back door, lifting it up over the years, you could raise really substantial money and use it to fix the corporate tax. we want to make so much sense but it will never happen. >> i wouldn't count on it. [laughter] >> i wouldn't count on it. we had the break and 86 tax cuts. with tip o'neill, who would've thought. neil: on the credit cards and all of that. >> they got rid of a lot of stuff and made it it like that. >> item like that one at the time. it brought the tax rate down from 50% to 20%. now it has crept back and it still hasn't gotten back we could push it on someone.

neil: watch it closely. when we come back, the navy yard shooter. they are connected, but you will not believe how. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

neil: edwards noted had a security pass and so did edouard alexis. keep in mind that there are more than three and a half million americans that had have the security clearances that these guys dead. he was the same company that did a background check. so what is the answer? >> outsourcing is downright

maniac. it does not always provide good value or services. back in those days, either you had a clean record and investigations were top-secret, i believe alexis has had a secret clearance. in the old days it was tough. you can could have it suspended on a minor infraction. with the intelligence world and technology in our military and security over all, what we saw was this absolute boom for one bodies of clearances along with

fbi help, within the government. and it's tough. the government incentive was to keep bad actors out. but when you move these investigations largely to the private sector, essentially it is a process and this is how it works. the incentive is to get as many people cleared as possible. once they are in, it is confounded by political correctness if you are a minority, for instance bradley manning. no one wants to take on the problem of getting this guy out even though he was clearly dysfunctional. no one wanted to risk their own career to get rid of him. so you have this wave of new bodies and nobody is checking the checkers and unfortunately in this one case, it was

destructive and not constructive. >> we have essential security clearance look at a lot of stuff. and that seems like a lot of people. >> so i don't want to hold you to a number. but it seems like it should be under a million. >> in theory, yes. but it's just not practical. one technology, the military e-mail internally are the people that work on weapons systems that need clearances. it is really far more than just

intelligence. neil: what if we delineate the two because it seems that they are part of this category or whatever. >> if you make even more categories, it's going to be tougher. i would tighten standards across the board. i have come to believe that even though i was doubtful 25 years ago, really i think polygraphs, regular polygraphs, surprise polygraphs are part of the problem we are asking how many will use the what do we actually need? my big complaint with intelligence for business.

give me a handful of really good people and i will whip the people of the hundreds of employees that don't know what they are doing. at the end of the day, we are dealing with a grave new world. neil: i don't think i would survive a day. >> i take care of my people and i work hard. neil: we have been telling you all this week about the bailouts. what we ha

neil: five years after the bust, where is the boom? >> we are nowhere near historically sensitive. not where economist would have been predicted to be today. >> there is a lot of bad incentives that get created. it and incentivizes borrowing more money. they have been pushed over the edge and the long-term unemployment. >> after all of those things, it

can happen again. steve lee agrees. the same risky foundation as mayor. >> we really haven't gotten out of bed. yes, the stock market is booming. the stock market since 2009 as of well over 100%. i did a quick check and certainly that has never happened in modern times in post-world war ii history. real incomes are still declining. neil: what is that set up for.

neil: doesn't have more bombs to go? >> i think it does. sooner or later they are going to continue to pump money into the economy. once that happens, it's 2008 all over again. it gets passed germany and europe you will see stimulation are. then you will see commodity prices rise oil prices were around 70 or $80 per barrel. since 2007, we have read about

it, cracking, oil production in the u.s. is up. energy consumption isn't down. when oil consumption goes down cumin oil production goes up. yet i am still paying over $4 because we are using so much oil to get the oil that we need. we don't have a cohesive infrastructure policy. and for the first time in all times we have a lame-duck federal reserve. i mean, we have to get our act together and we have to stop the gridlock and start talking about real problems at. neil: if you don't have a razor blade at home, they will tell you how to get it. when we come back, can you hear it?

we will have

neil: these people are the first in line to get the first apple iphone seven. $800 million worth of sales in the first 24 hours of itsdebut. liz macdonald, gary smith, what you guys have to say the consumer wants great products. >> that is apple and that is grand theft auto v. >> it's all about electronics. and it is all apple right now.

in apple's case, it is more of an evolution. not necessarily a revolution. >> one product that is hot i looked on amazon, they have a list of their hot products, it's called the google growing cast hdm eyes streaming. anyway, they say they can watch anything on their tv. >> people want smart devices. the same budgets were avatar or the harry potter movie. neil: by the way, it's the committal countdown. the world has arctic sea in our ads. people everywhere jazzed out. here is some of the reaction we

are getting. >> i guess it has the sensation of how we'll really be operating. >> it's a great experience more than anything. >> it's interesting, i think. it's getting a lot bigger. >> i am a 54-year-old woman. >> look forward to it because they keep improving at. >> stand in line, young lady. with an advertiser like this, who can blame you? >> this monday, u.n. neil cavuto. u.n. neil cavuto. monday. neil: i think that explains it all. >> he saw that and i just thought, wow.

neil: so if i had a great run, what would i do now? >> i thin you have to buy in the cavuto stock. this is going to be right up there with the who shot jr episode . >> this is google and microsoft and twitter all rolled into one. i'm not even sure what the initial price would be like but you have to get on board. neil: again, monday, 8:00 p.m., the new neil cavuto.

♪ lou: good evening, everybody. thank you for being with us. house speaker and the house republican caucus voting to keep government open and to shut down obamacare. the house passed a continuing resolution today that funds the government and the funds obamacare. and that puts senate democrats in a difficult political position. majority leader reid and senate democrats are now staring at two choices. go along with either ted defund obamacare and the government or reject the house gop legislation and risk being at fault for a