housing prices and the whole complex moves higher here. he is talking about real estate investment trust. that will do in a. we will see you tomorrow. lou: good evening, everybody. ukraine's acting government today issued an arrest warrant for the president they deposed. the pro-russian viktor yanukovych, the opposition government accusing yanukovych of mass crimes against the demonstrators including multiple murders of protesters committed at his order before he was forced to flee kiev. there are reports tonight that yanukovych has fled east into a pro-russia part of the ukraine on the crimean peninsula. russia's foreign minister calling the ouster of yanukovych, an armed mutiny. prime minister dmitry medvedev,

that russia will not work with the interim government. quote, if you consider people that prowl kiev with black masks and kalashnikovs, a government, we will have difficulty working with such a government. the ukraine finance ministry says it needs $35 billion in foreign assistance over the next two years. they call for a donors' conference involving the european union, the united states and imf. the white house says the united states is ready to provide support. the white house also announced major cuts to the u.s. military. defense secretary chuck hagel from the pentagon, outlining a downsizing that will see our army shrink to pre-1940 levels along with across-the-board cuts to every single branch of the military rick active and reserves and cuts to military pay and entitlements. hagel including the elimination of the air force's fleet of a-10 attack aircraft, and it is u-2 spyplanes. here is secretary hagel pointing

to politics. >> reality of reduced resources and a challenging and changing strategic environment requires us to prioritize and make difficult choices. some of those choices we must make now. for other choices particularly those involving the ultimate size of our armed forces, we have built decision points into our budget plan. we will make these decisions when we have more clarity regarding future spending levels. our budget will give us the flexibility to make different decisions based on different physical outcomes. lou: and, the state department today raised serious concerns as it put it over reported arms deal between iraq and iran. iraqi lawmakers telling reuters that president malaki, struck a $220 million secret arms deal with iran because he didn't want to wait on u.s. deliveries. all as devastating new poll show

majority of americans souring on the president's image abroad. the new "gallup poll" find 53% of the americans believe president obama is not respected by other world leaders. a 10% increase from a year ago. our first guest tonight says putin will not let ukraine to move to the influence of the west and if necessary he will use force. former arm vice chief of staff, general jack keane, also fox news military analyst. jack, first of all, good to have you here. and this is an administration that has already said to the russians, be careful. my first question to you is, do we have any leverage, any strategic advantage in which the, on which the president might rely for such a threat? >> well, not much, frankly. but what we do have is leverage with this new interim government. and the fact of the matter is, if the e.u. moves quickly to

provide them with some economic assistance, the united states gets involved in this, we recognize this interim government, makes all those things tougher for putin to deal with it. the fact of the matter is, we should publicly dispute the charge this government is the result of people with guns. the fact of the matter is, a parliament voted the other government out and voted this interim government in. but we have to move rapidly. we can't be bureaucratic about this we can't do half-measures. we have to take strong measures to support them. lou: medvedev, coming out today, making very strong statements. how much time do we have? because he is making it clear, each statement seems to be more bellicose than the one that preceded it. >> that sets them up for doing something later down the road. fact of matter is, everybody knows russia and relationship with ukraine is simply this. they think ukraine is part of russia. that is in putin's mind and the mind of his leaders.

it is hard to imagine that they would let this entire country move toward the west without them doing something to seize a portion of this country, much as they did with georgia when it was moving in the wrong direction. we have to keep that, our eye on the ball that putin will use force, if necessary to have his way. lou: is it safe, is it safe, is it reasonable to assume that, if putin would move as he did on georgia, which is, not nearly so significant or important to russia's strategic interests that there is any reason he would not do whatever necessary to retain influence over the ukraine? >> yeah. and he suffered a significant blow here too psychologically. he and yanukovych both miscalculated when they went into the streets with guns to kill the demonstrators and killed 80 to 100 of them they thought that would break the demonstration. the fact of the matter is, they got steadfast and resolved. they had more people demonstrated and broke the backs of the government.

they suffered a significant loss as a result of that. he will want to regain geopolitically that from that loss. lou: the ukraine, europe, dependent upon the natural gas in particular that goes to the ukraine and then is also transported by pipeline into, into europe, this is a major weapon for putin to exact the outcome that he wants. give us your judgment as to what the likely result will be here? >> i just think there's a chance for this to come out favorable, if the e.u. and the united states and other countries clearly start to back this country and give it the economic stability that it needs to maintain itself and also be able to take care of its people. it makes it much more difficult for putin to make a move on a country that wants to stay united and is moving in the right direction. if that doesn't happen, and the country starts to, starts to

implode because of serious economic problems. then see him do something. lou: and turning to the middle east, reports are tonight as we haveejust done, that iran and iraq now have a $200 million arms deal. maliki, apparently not satisfied with the delivery type from the united states. again, this is a violation of united nations sanctions, is it not. >> it absolutely is and is outrageous. the united states military defeated insure againsy in -- inurgency in iraq in 2009. we made the decision to pull the troops out. i refer to it bush won the war and this president lost the peace. the great beneficiary of that decision of pulling our troops out and losing influence with the iraqis are who? iranians. they benefited from that. they are now the closest ally to iraqis and it is outoutrageous they're providing arms to them.

the second part of the problem, lou, is, our arms process, the whole bureaucracy that surrounds in providing arms and equipment to other nations, every nation involved in that complains about the u.s. bureaucracy and how slow it is. when you hear maliki talk about, there is some truth to that. lou: that bureaucracy for good or not, is apparently what the administration and secretary hagel are willing to put up with. are they willing to put up with an arms deal with iran and iraq government? >> we should not. is a u.n. violation and should impact our sales what we're going to do with iraq in the future. listen, they have our tanks. they have f-16s. our fighter aircraft, one of our best aircraft in the world. they're getting apache helicopters and get lots of ammunition and other smaller arms. lou: general jack keane, as always, good to have you with us. >> good to talk with you, lou. lou: at bale in the supreme court over how much power the

environmental protection agency actually has to regulate so-called greenhouse gas emissions and it could have a huge impact on the president's global warming policies and his rule by fiat. fox news supreme court corresondent shannon bream tells us what's at stake. >> reporter: the supreme court heard arguments today that could determine just how far federal agencies can or can not go when it comes to using regulatory power to accomplish their goals. though today's case centered on epa permitting rules concerning regulating greenhouse gases the broader issues are whether the agency had the write to literally rewrite a federal statute to meet the epa's regulatory aim without ever going to congress. >> executive branch does not have the right to legislate, does not have the right to amend legislation. their job is to enforce. they have exceeded that enforcement authority in this case. >> epa officials argue compliance with the law as written would have led to quote absurd results leaving it no

choice to essentially engage in legislation functions, an argument that didn't seem to sit well to justice antonin scalia who asked quote, are you compelled where there is ambiguity to work with the statute that does not be aproduce absurdity and adopt the legislation that produces absurdity and alter the decisions of statutes? supreme court precedent weighs heavily referring to federal agencies when statutory language is ambiguous. justice kagan why this dispute is not classic case to deference to the agency. the agency gets to choose how to make the thing work as best it can? when the change makes it not work entirely as congress foretold. >> the epa chose to try timely meant the broad protective goals of the statute by bending a little bit on the implementation side. i think that's a choice that agencies have to be able to make. >> scores ever businesses, states, led by texas and several

gop lawmakers are characterizing what happened as an unprecedented power grab and calling on the justices to restore what they argue is the rightful balance between the branches. >> from a constitutional perspective this is a wholly troubling practice that needs to be rectified by the high court. >> as is so often the case here at the court the swing vote could be justice anthony kennedy the last time there was a major challenge to epa regulatory here at the court he sided with the agency. but today at the federal government came to the close of its arguments, he said i read all your briefing and i see no case anywhere that strongly supports asking knee what to do to back what the epa is done. doesn't tell us for sure how he will vote but seems to suggest he has doubt this is time around. lou? lou: shannon bream. "the washington post" fact checker today hitting president obama with four pinnochios, the maximum, for his claim that almost 7 million americans enrolled in medicaid because of obamacare.

the administration it seems persistently, routinely misrepresenting facts without change. whether it be the president or his national security advisor susan rice, who returned to the sunday talk circuit, at least one show, to defend her involvement in informing the american people about benghazi. here is rice's response when asked if she has any regrets. >> no. because, what i said to you that morning and what i did in, every day since was to share the best information that we had at the time. the information i provided which i explained to you was what when he had at the moment. it could change. i commented that this was based on what we knew on that morning. lou: we're coming right back. stay with us. standing up for the first amendment. fcc commissioner ajit pay. stopped fcc effort to police

newsrooms. he stopped the effort cold. he is our special guest tonight. peace of mind is important when you're running a biness. century link provides reliable it services like multi-layered security solution to keep your information safe & secure. century link. your link with what's next. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generatin to generation. because it offers a superior level of protecon. and because usaa'commitment to serve current andormemilitary members andheir families isithout equal. begin your legacy. get auto insurance quote. usaa. we know what it means to serve.

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lou: a triple-digit rally on wall street. the dow up 104 points, the s&p up 11, the nasdaq gained 29 points. crude oil up 62 cents, just under $103 a bill. gold rose $14 to 1338 an ounce. the yield on the 10-year up to 2.75%. the 10-year remaining stable. netflix agreeing to pay comcast for faster internet streaming speeds. mark zuckerberg announcing facebook will partners with wireless carriers on freebase i can mobile phone access for developing nations, with the goal of eventually reaching the entire world. and ford switching to

blackberry software for its in-car mobile systems. the automaker which dropped microsoft joins acura, audi and portia using blackberry. -- porsche. listen to my financial reports three times a day on the salem radio network coast to coast for all the day's market and business news. >> federal communications commission suspended its controversial, so-called, study of newsrooms and in an effort to develop quote, an understanding of quote, perceived station bias. my next guest is one of the staunchest critics of that proposal who says the suspension is an important victory for the first amendment and he is the man largely responsible for bringing this to the public's tanks. he is fcc commissioner ajit pai. good to have you with us, commissioner. >> good to be with you, lou. lou: i want to compliment you, congratulate you and thank you for bringing this to the public's attention because this

is such an outrageous intrusion on the first, you know, in newsrooms and on the first amendment. imagine, it is just incredible to me that the fcc would even think to under steak -- undertake a so-called study the way the news is both developed and covered and the decision-making process therein. >> and that is part of the concern i had when i looked into how this study was being designed. that the notion that the government could figure out for the american public what their critical information needs were, then go to newsrooms across the country and ask basic intrusive questions how do you gather the news what is your news philosophy and does your station have a bias? those are not questions that belong in any newsroom certainly imposed by a government researcher. lou: the idea of those questions being posed, it is not of course, unfammliar to journalists to be asked those questions by scholars studying

journalism, studying the news business and trying to understand it better but to have a government agency, in particular the fcc, just simply trample the first amendment by becoming involved in a newsroom is, it's stunning, even by this administration's standards, if i may put it that way. >> and i think it is troubling to a lot of people, not only because the government would be intruding into the newsroom but also because as you know, a lot of stations across the country hold license that is are granted by the fcc they may not view a lot of these questions as entirely voluntary. they might feel compelled to respond and that is not something i think we want to have in a country that cherishes the first amendment. lou: what has been the reaction since you wrote your op-ed in the journal? >> one of the most heartening things about the dialogue by the february 10th op-ed in "the wall street journal" people from across the country and frankly across the idealogical spectrum have come together and said, we don't think this is

good idea. everyone from lanny davis, former counsel to president clinton on the left and people on the right said we don't want the government in the newsroom. that is something i find heartening that people can unite in the principle that newsrooms should be able to decide for themselves what information the american people want and the american people in turn can decide to change the channel if they want to, if they're not getting news they like. lou: the, so-called, study, of newsrooms, and, the news decision-making process, would be led by two, two organizations, university of, southern california, and the university of wisconsin at madison. working in league with the agency. your reaction to that combination? >> and i think that is one of the concerns that people have expressed he process by which the study was created and the study implementation would be done. unfortunately under the agency's rules the commissioners don't

get to vote on these proposals or structure of those proposals. for example, i didn't have any input how the study was designed and who would be doing it. that is one of the questions people have moving forward. lou: one of the questions would be, who runs the commission, if not the commissioners? >> so traditionally the chairman's office decides on proposals like this, entering into contracts and deciding studies. as a general matter it would be good for all the commissioners to have a say on these issues in part because it makes all of us accountable. all of us were appointed by president after all. secondly could help forestall some of these controversies rising in the future. lou: it certainly is a controversy and it is not going to go away because the study has been suspended, that very much sound like an effort on the part of the fcc and the chairman's office, to simply wait until the temperature outside goes down a bit before going ahead and carrying out exactly what they intended. >> so ooe of the things the fcc announced on friday neither this

study nor any future study would involve or require media owners, news direct oars or journalists to answer some of these intrusive questions. again one of the things i pointed out the study has been suspend. just as a baseball game is suspended isn't canceled, we need to make sure the study, if there is going to be one, doesn't intrude upon the core constitutional freedoms. i can tell you i and other americans will remain vigilant to make sure that is the case. lou: we appreciate it, commissioner, your time and vigilance. thank you so much. >> thanks again for having me. lou: "the lego movie" ruling the box office a third straight weekend. the warner brothers animated movie earned 31 1/2 million. bringing the domestic total to more than 108 million. not bad, relativity media, three days to kill, debuted at little over 12 million. sony's "pompeii" took over $10 million. russia shows it has sense of

humor during the closing ceremony. performers created that dubious opening ceremony gaffe which one of the olympic rings failed to open and leaving four rings and a snowflake. the united states, by the way we came in fourth in the gold medal count. second overall. we would have been second in gold if snowboarder vic wwld, two-time gold medalist switched allegiances to russia back in 2011. he blamed the switch on lack of financial support for snowboarding in the united states. one think that is might be fixed in the, for the next games. you know, i guess we're the ones who need a sense of humor, not the russians. good for them and congratulations. up next, hhs secretary kathleen sebelius claims obamacare won't kill jobs despite a new report that shows she is killing them herself. jim ingle with the report next. those litt things still get you.

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lou: the obama administration caught in another obamacare lie, misrepresentation, inadvertent, well, whatever. this time it involves health and

human services secretary kathleen sebelius herself and her claims that the notion that obamacare will cost jobs is nothing but a, popular myth. fox news chief national correspondent jim angle find that is far from the case and sebelius herself responsible. >> reporter: hhs secretary kathleen sebelius may have her own moment similar to president's obama's promise that everyone can keep their plan and "dr. no" matter what, after making this statement. >> there is absolutely no evidence and every economist will tell you this, there is a any job loss related to the affordable care act. >> reporter: nevertheless secretary sebelius using digs correction granted by affordable care act, cut the maximum allowed by law from home health care fund, cuts officials said will be negative impact. we estimate, quote, 40% of the providers will have negative margins and company that is have negative margins don't last long or have to cut workers.

>> anyone who has a brain in their skull knows that they're going to have to cut jobs and reduce services in order to make up the money. >> reporter: in fact those cuts put in jeopardy 498,000 jobs of home health care workers, who work just for that 40% of firms that will go under into the red because of federal cuts, the kind of home health care workers who allah white mann, 98 to avoid hospital or nursing home stays by getting care at home. janet connor is her daughter. >> if she fell like she has a few times, typically you go to the e.r. but because we can call a nurse to come, then they can do the wound care here. >> reporter: her mother also got pneumonia was treated at home but janet couldn't care for her alone. >> i couldn't have done without help but it was over in a week but she was well. >> reporter: dr. david fisher, does what he did decades ago he makes house calls on elderly

patients who get sick. he relies on home health care workers when someone needs to be seen acting as his first line of defense. >> often they alert me to a problem happening with the patient. they really help me carry out the plan of care that i have for the patient to help them stay at home. >> reporter: the technology association today says that the medical device tax has eliminated 14,000 workers and prompted employers not to hire another 19,000, throw in suppliers they argue the total jobs lost or foregone are 165,000. lou? lou: wow. jim thanks. jim angle. if you're burning with curiosity about the 2016 race for the white house, we have unupdate for you on the candidate luminaries, potential candidates themselves. >> honest answer, i don't know. >> i'm looking at that. >> what the other candidates may or may not do is their choice. >> i haven't spent one second think about any job other than one i was hired to do.

people running for president isg an option for me in the future. lou: stay with us. we're coming right back. confidence lost. first time majority of americans say the president has lost the respect of his foreign counterparts. our a-team tonight, kennedy, joe trippi, jedediah bila. s next. ok, here's the way the system works. let's say you pay your guy around 2 percent to manage your money. that's not much, you think except it's 2 rcent every year. es that make a difference? search "cost offinancial " ouch! over time it really adds up. then go to e*trade and find out how mu our advice cocosts. over tispoiler alert.dds up. it's lo really? yes, really. e*trade offers investmen advice and guidance from dedicated professional financial consultants. it's guidance on your terms not ours that's how our system works. e*trade. less for us, morfor you.

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she's kind of special. she makes the whole team better. he's the kind of player that puts the puck, horsehide, bullet. right ere it needs to be. coach calls it logistics. he's a great passer. dependable. a winning team has to have one. somebody you can count on. somebody like my dad. this is my dad. somebody like my mom. my grandfather. i'm very pround of him. her. them. lou: a scandal in the marine corps. newly obtained emails, tying the top marine commandant, jim amos, threatening to publish the independent newspaper, marine corps times, publishing stories he found unflattering. senior public affairs said moving away the paper from checkout lines to the back of stores. the marine corps is

investigating. at least one member of congress is calling for a hearing on the matter. joining me the a-team. host of the independents, airing at 9:00 eastern here on fox business network. kennedy. good to have you with us. >> hi, lou. lou: fox news contributor jedediah bila. good to see you too. >> good to see. >> veteran campaign strategist and fox news contributor, joe trippi. joe, how are you? >> lou, good to be with you. lou: let's start with, if i may, the president, 53% of those surveyed by gallup say, joe he is not very popular and they don't think he has same respect as or the world leaders what do you think? >> the numbers are going down for a while but nowhere near the record george bush set in 2007. in 2007, 21% of the americans thought he had respect of world leaders. president obama is doing almost

twice as good. although those numbers have been falling. >> could ask i if you bring up bush, could i ask you maybe about bill clinton? could you ask you about ronald reagan some other folks? let's get a larger metric in comparison. >> no, those are fair points and by the way, bush. lou: thank you. >> bush and republicans didn't do very well in 2008. and, the president's low approval numbers and these kind of, these kind of sour numbers from about the president world leaders will affect democrats in 2014 clearly. it is not a good sign. but it is nowhere near as bad as people make it out to be sometimes. lou: i haven't characterized it at all, jedediah? have you? >> i will now. lou: all right. >> barack obama started out really strong in 2009 which is interesting on thess issues. he was in the high 60s. i think that is really what is important. people are waking up starting to see this is all rhetoric. he made all sorts of promises.

rhetoric and intellectual talk and sitting down willing to negotiate doesn't necessarily lend itself to strong leadership and doesn't necessarily people bring people to the table that will bend on issues. tough gain respect from people and that usually comes from strength. lou: kennedy. >> hi, lou. lou: your thoughts? >> i think that combined with the gates 'book and domestic failures i don't really care how other people see the president in other parts of the world. that is not what concerns me. what concerns me that he leads effectively. that to me as minimally as possible and he is not doing that. too much government. people are sick of it, not just in the united states but a virus obviously spread, this guy in 2008 ran on the idea that he was going to change the perception of united states single-handedly and lift us up out of the ghetto of, mall content throughout the world. >> i think he changedded perception. the perception is we're a lot weaker than people thought we were and more of a pushover an

theme what he thought we would be. lou: that may be fair indeed. even though bush may not have been liked he was very clearly a man to be reckoned with. that worked for him and against him as well. >> by the way saying he is not horrible isn't saying the same thing he is doing well. lou: yeah. >> in iraq and afghanistan keeping his word with the american people getting us out of those two wars 78 americans now believe were mistakes from the get-go. we can debate that at later time. the president is doing very effective job. >> that is 2014. he was talking about getting out there have in 2008. lou: playing under critical those critical of the president and those supportive of the president and play hail not chief when i'm speaking at all times. four pinnochiis, joe. >> i would vote for you by the way because you're independent. lou: very kind of you. i think that is kind.

>> high praise. i said i would vote for lou. lou: you what. >> i said i would vote for you. we can't get to you run. >> that make as conservative, liberal, independent. i think you need to run. that is the verdict here. you brought the country together in this room, lou. lou: and it is free. great beginning if i say so myself but you have to say things like that a lot if you're running. i am impressed. the idea that "the washington post," joe, gave the president four pinnochios again for his claim, he moved away from the 10 million claim. now he is down to seven million with access to medicaid because of obamacare. at some point is there any level of embarassment about getting four pinnochios from "the washington post"? do they need to change the pinnochio thing? do they need to get a little more dramatic and powerful in their imagery? >> i think so because this is the same "washington post" that fav the republicans three pinnochios for claiming that the cbo report, when they claimed

that the cbo report that obamacare would cost 2.5 million jobs. they have, give it four to the president, three to the gop. all on obamacare numbers. so who is telling, what numbers are real and i think you're right. four pinnochios, three, four, pinnochios they have to figure something else out. lou: i mean "the washington post" brings down richard milhous nixon and gives obama four pinnochios. doesn't have the same -- >> goes to show they're all liars. lou: all of them? >> yeah, pretty much. lou: everyone of them? >> sebelius in particular i would stress. lou: is that in particular thing that we go to. ukraine, i want to turn if i may quickly to the ukraine. >> i say ukraine, people always give me a hard time, you're supposed to say ukraine. you drop the. grandfathered in. i will say the ukraine out of respect. >> rolls off the tongue for some reason. it does.

>> sound regal. >> the fact of the matter that the ukraine tonight as an interim government and as gin jack keane earlier on this broadcast pointed out and previous parliament voted itself out and voted in a new parliament that voted in the president yanukovych out. where do we go from here, jedediah? >> i don't know. i'm curious to v. what barack obama does next. if he will take a leadership position f putin is the one to take i leadership position. whether we'll be sending eight. i don't really know. i expect barack obama take a back seat as he usually does and wait see what everyone else does and make a statement that sound really wonderful he wants a call for peace which we all do. i don't know that he wants to play a key role in he region in terms of how things unfold next month or so. >> i think it is scary. putin is in very precarious position. he placed himself there. he has false confidence coming off the olympics.

that is a real element in thiss3 game. he is not going to recognize this government and who knows if he will try to get the band back together. and by the way the united states doesn't have to separate in here. believe it or not, we can actually let them resolve this on their own regionally. >> amen. amen. it is not, look, the fact of the matter is, that putin can overplay his hand. a lot of this started because the you klainian government started moving away from the eu and towards russia and the people of the ukraine rose up and there are other issues obviously. but i think. lou: tremendous issues. >> it's a big mistake for putin to overplay his hand and i think, this will be, they're going to be elections held and till will be the people of the ukraine from the bottom up that decide the future of that country. they're the only one that is can do that. lou: you talk about putin overplaying his hand. yet, he has all of the advantages. he has a military at the

boarder. he has control of the eastern ukraine including the cry me yawn peninsula. he also has all of the natural gas that is so, so lusted after by not only the ukraine by europe. it is going to be more difficult for him to overplay his hand certainly than president obama who has already, well, he has done everything but saying he is are has drown another red line. >> we would like to think that putin is drunk on international diplomacy because of the olympics but, i don't think that is the case. i think that he can be dangerous and slippery. i thinn you're right. i think natural resources are even greater threat, a greater quiver, arrow in his quiver than geography. >> i think consistency is key. whatever barack obama decides to do. i think he needs to be consistent from day one throughout. don't give mixed messaging on this issue. that is enormous problem in other areas, and stick to whatever it is you want to

follow through with and stand for what we stand for in the process and that is freedom. lou: jedediah, thanks very much. kennedy, have a great joe. joe, thanks for being with us. you have a great show tonight, lou. >> thanks, lou. lou: joe trippi. "new york times" idea of political humor. what backlash against this cartoon. they published this cartoon yesterday in which they suggest new yorkers deal with this icicle surplus by using them to stab global warming deniers. cute huh? al gore, taking things to new extremes, imagine that. warning that if we don't act to fight global warming, the dust bowl will be coming right back to kansas. up next, president obama pushing a minimum wage increase despite the cbo report saying that it could eliminate up to half a million jobs. economist arthur laffer is our best here next. ♪

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lou: chairman of the house ways and means committee, congressman dave cam threatened to subpoena the internal revenue service for emails from low which is learner, the official ahead of the agency's conservative group targeting scandal. he has requested learner's e-mails from 2009 onward. louisiana governor bobby jindal slamming the presidenn's plan to raise the minimum wage after the president met with the national governor's association earlier today. >> what i worry about is that this president, the white house seems to be waving the white flag of surrender after five, more than five years under this administration, the obama economy is now the minimum wage economy. i think we can do better than that i think america can do better than that. lou: joining us now, arthur laffer, former member of president are ron ron's advisory board -- ronald reagan. great to have you here. is the president waving the

white flag of surrender on the economy, job creation? >> oh, i think so but first have to tell you i love that name jedediah. just a great name. just tripis off the tongue. i'm sorry. lou: -- deal at least. >> of course i could have. never enough time. but bobby jindal is correct. i mean the minimum wage is a loser from the very beginning. the president says there is no tax impact on it. of course there is a tax impact. what everyone fails to realize is that all those minimum wage earners who get higher wages, someone has o pay for those higher wages and these are marginal companies that are struggling to survive, are going to pay above the minimum wage. they will substitute capital for these people. and it will drive them out, as i said, this bills the minimum wage bill is deadly on inner-city youth. deadly on the poor, the

minorities, disenfranchised, people that need these jobs. lou: inner city, minority youth. we're talking about just 25% unemployment rate for young males. >> worse. lou: by the way that is just about what it was in 1965. we've got to get serious about solving problems. i mean there is this attitude on the part of the liberals, art, that it is, you know, it's a patronizing nonsense. terrible. lou: these folks are collateral damage to liberal policies and so we have the right intentions so we can say, the hello wwth them. >> yeah. lou: that is such a, to me, somebody has to call them on that. >> but the unemployment rate is not the key here, lou. lou: it is one of the keys. >> yes it is but the other key is the participation rate is so low that employment as a share of the population in the inner-cities is as low as it has ever been. these kids are lost forever. once being unemployed couple years they become unemployable. after being unemployed couple

years, they become hostile and you will have to spend a fortune to protect selfs from them. we have created underclass here. it is tragic what is going on. it is pure hypocrisy. lou: when we be clear here, when he we say, here, everybody. >> obama administration economy. >> businesses worked likeethe dickens since 1965 to incorporate hardcore, what we then referred to hardcore unemployed youth into a training system. we have, we have seen this government and so many of these liberal programs just blowing up. we've got to do better, have new thinking and frankly -- >> of course we do. lou: fresh blood in congress and in the white house who will have an original idea from time to time. >> wait a second. you're talking to a 73-year-old who used to work with reagan. fresh blood. maybe good old timing blood would do? my god, if i know you were that old, what are we doing here. >> you could have been my kid

brother, lou. seriously there is no alternative for economic growth. this minimum wage is another surreptitious way of -- lou: denned did i, for crying out loud was rising tides lifting all boats. would you think that would get through to the left! >> no, it doesn't. these guys are really deaf to those sound. you know they will go out like the dinosaurs. and once they're gone in 2014, lou, i think then we can really get some big changes. i know lots of democrats in the house and senate who would love to do pro-growth agendas. they would like to get the corporate tax rate way, way down and broaden the tax base and -- lou: we've just received word that john boehner and president are meeting tomorrow at 11:00 a.m. do you suppose they are going to talk about pro-growth agendas? are you exciteed? >> i am excited. i think boehner has done a pretty good job. frankly we've given the democrats no weaponses to come after us in 2014. they can't yell about the debt ceiling. can't yell about this, that or the other. they have to take obamacare and

own it. and that is a loser. lou: arthur laffer. a winner. we thank you for being with us. >> thank you, lou. you're great by the way. i enjoy your show very much. lou: well, thank you, sir. you're invited back whenever you want. >> i will take it up. lou: up next, president obama's i've got a pen and a phone deal sparking a lot of outrage among our viewers. we'll share some of the best reactions to that. oh, man. all of that brought to you by this presideet. stay with us. we're coming right back. dentures are very different to real teeth. they're about 10 times softer and may have surface pores where bacteria can multiply. polident kills 99.99% of odor causing bacteria nd helps dissolve stains. that's why i recommend polident. [ male announcer ] cleaner, fresher, brighter every day. [ male announcer ] cleaner, iwe don't back down. we only know one direcon: up so we're up early. up late. thinki up game-changing ideas,

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>> a few of your thoughts. from ed oic infidel that is the handle.

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stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. have a great night neil: this just in, obamacare down not out. that is not democrats saying that. that is republicans saying that is republicans saying that. welcome, everybody. i am neil cavuto. rep something did not smell right when mainstream atrize wasm republicans said senate and maybe, settings up taki the white house two years later. so avoid any distractions like shutting down the government and listen up. keep the focus on the well-tested issue of obamacare, how bad it is how unpopular it is and howmportantillingt