tongue-in-cheek but we are going up, 17940, we need 59 points, 59, 60.numb one but my time is up so i leave it to you to hit 18,000. neil: i will do my best. on coast to coast, one for the minimum wage, another demanding their college bills be paid and the second, verizon strike going on and many more across the country. i'll is orderly but that is so far. connell mcshane with the latest on the fast food protests. connell: coast-to-coast story in new york and many other cities around the country. the fight for 15 campaign is out

again, far $15 an hour as minimum wage around the country and states around the country with news we had in recent months in new york and california moving in that direction over time. the protesters are making their own argument and some lined up out of mcdonald's restaurants, the economist and business owners are making a separate one. an interesting conversation with ashley morris, in california, economic issues involved here, watch this. >> teachers and sanitation workers, the list goes on of all these other jobs that you can get $100,000 debt and then get the same amount of money is the 16-year-old who just got a job at capriotti sandwich shop is making so what happens is you have a disparity of people who want to get that hundred thousand dollars loan and go out and get a career.

connell: that is one of the things, they will tell you the other problem, not only do they have to decide whether they can go to $15 an hour or some other number but how quickly will the move be made? that is another debate happening in many states as new york and california have and they do it over time by 2022. at mcdonald's these workers are not just targeting mcdonald's, they say mcdonald's has such an influence on pay practices of the industry, that is why they set up many mcdonald's across the country, the company has a response. i will read a statement from the spokesman for mcdonald's, we probably invest in the future of those who work in mcdonald's restaurant in addition to raising the minimum wage in a restaurant we also offer employees access to archways to opportunity, programs mcdonald's pays for which help them earn a high school diploma, get tuition systems to work toward college

degrees. the company hears this and does respond to it and we expect more throughout this city and others. neil: protest strike 2, those organizing, someone helping with their college loans, someone help them out of their tuition, lauren simonetti with the latest on that. lauren: they are organizing student marches like they did in november when 10,000 across college campuses, the second march continues in california, not many showed up, organizers teaming up with black liberation collective demanding an end to racism and tuition free public college, cancellation of student debt and a $15 minimum wage for campus workers. who is going to pay for their demands? the 1%. remember this interview on your show last year? >> people earning over $1 million a year should be

contributing. neil: around 50%, the top rate at 90% you think we should get back to that? >> eventually we will get back to that. neil: are you okay with that? some of them want to be successful themselves and happy when they get to that level of 250,000 they pay 90% taxes on that? are you happy with that? >> absolutely. $.90 out of every dollar you make taken, no question student debt is a problem, 40 million graduates, $1.2 trillion, millions of those borrowers in default, not paying at all but to cancel their debt entirely? giving grads a job and asking them if and when they earn enough money how they feel at a 90% tax rate and with that i

look forward to their interview in the next hour, another organizer of the march precollege. neil: an incredible organizer, talking a little bit on the points you mentioned, she is dissatisfied what she is hearing even out of hillary clinton. she likened hillary clinton to another donald trump, she is coming up in the next hour. the third big revolt today, 40,000 striking verizon workers, jo ling kent with the latest. jo ling: their main concern in maintaining service, no disruptions as they try to move ahead in a very long strike. here are some things that came out in a major wall street journal editorial, on the verizon strike the union has not agreed to mediation. there is a 10-month negotiation in the contract that was rejected. the walkoff with verizon is

verifying to get an average of $130 a year annually and verizon is offering a 6.5% cash wage increase. the two union say verizon once to make things easier and rely on outside contracts workers while forcing them to stay on the job. as these demands and arguments continue senator bernie sanders and senator clinton going to the site yesterday sanders saying verizon is not paying its taxes and is being unfair by not allowing a union. linkedin post, very aggressively, the verizon ceo responding as our financial statements clearly show, we paid $15.6 billion in taxes the last two years, 35% tax rate for 2015 for anyone counting. also adding sanders is oversimplifying the situation at

hand and not realizing what technology does to the broader more competitive economy that we are facing. day 2 of the strike underway and verizon keeping things on the rails. neil: so many protests so little time, whether democrats are trying to capitalize on this and the washington examiner's jason russell on what republicans have to do, first to you, the criticism bernie sanders is getting his he misrepresented what verizon is doing, not so much where they pay these workers but on the issue that pays no taxes and in fact it does. video to do it. >> i think he did, he is going to ride it as hard as he can ahead of the new york primary where he has been scrambling for the majority of unions behind

her, and for $12. i was shocked to see them pay that much in taxes based on that rhetoric but there are further points to be made, verizon outsourcing jobs in the philippines and that is an issue. hillary was right when she said let's get back to the table and work that out, middle-of-the-road approach is the one that will win out. neil: republicans are saying this is a mistake, this approach, these demands are an unrealistic set of demands. do they comport themselves well, i know they are not but they look like they are against the little guy. what are you saying? >> i think certainly secretary clinton needs to remember this is a complicated issue and she is taking money from verizon. neil: let's talk about responses

and the -- i understand -- do they risk not offering an alternative looking cavalier? >> they do offer that this is a complex issue and there is a lot going on and verizon does a lot for its customers and they need to show they have an alternative poverty agenda for low-wage workers, these verizon workers are not exactly low-wage workers, they average $130,000 a year. neil: the details on this, hillary clinton will try to sort the fine line but does she risk losing a passionate base to bernie sanders? >> we have seen more unions go for bernie sanders. not as many as came out in support of her but there is always a risk when you are running a one issue candidacy where he is talking about being there for the little guy, it

will be appealing and to the point about republicans donald trump is shining because he is speaking out for the little guy even though he said wages are too high which is a complete absurdity but he is talking about the same issues as bernie sanders, the outsourcing and the threat of being undercut. neil: she raises a valid point. this is in place for donald trump's angst he sees on the part of americans that they are not getting there fair share which is a cross appeal. >> the workers can try to make that claim but they are making the one $30,000 a year on average. i don't think that will garner a lot of sympathy from the rest of the country when on average the rest of the country is making $50,000 a year. it is hard for the workers to make this claim they are not getting enough wages, they are

not being served right by verizon when it is clear verizon is paying the much more than the rest of the country is getting. >> the number of stories we have seen in the segment show this is just about verizon, this is mcdonald's, stuart varney was talking to the owner of a chain, this is happening all over the country. the right doesn't start addressing what is going on with low-wage workers. neil: describe where the money comes from. >> we need good information and solutions. neil: for the next two hours we will get those. 1 million student march organizer on why she doesn't like the way the democratic front runner responded to this, she like the guy named bernie. >> we can build a new political party of the 99% that fights for real issues like a $15 minimum

wage. and mass deportation. we can fight back and win. neil: she is leading this movement will join me later in the program. whatever your views on this subject, watch this woman. at age 24 she is rattling some sacred issues of the democratic party as well. microsoft is suing the justice department over the issue of data search on customers. jo ling kent has more. jo ling: microsoft is suing the government in a new technology privacy fight. what is happening is suing for the right to tell customers a federal agency is looking into your email. lodged in a federal court, western district of washington state and arguing this. the government action violates

the fourth amendment on search and seizure and this is all about emails stored on the crowd, a recent phenomenon, microsoft is arguing it is a new opening in which the government can conduct surveillance without people knowing. the electronic indications privacy act, allowing the opening, and microsoft is exploiting the transition to the crowd and if you look past 18 months microsoft says there have been 1600 requests to search and they have only been able to prevent about half of those due to the fact the government has warrants, subpoenas and things of that nature. this is a moving microsoft stock. it affects your email on any

microsoft cloud server and you'd is yet another chapter in the very, located fight between silicon valley, tech giant and the us government on this very hot privacy debate. of the 20 this is going to the supreme court. i don't know when, how or the means by which it gets there but it is going to the supreme court. how do you think it will go down? in the meantime we are keeping a close eye on the battle for delegates. a lot of you are focusing on ted cruz after the colorado delegates, suddenly became a ted cruz committee, only got 34 of them. what if i told you it was like finding a loose change on the couch and you can dig up another 200 delegates doing that. is that roughly the margin by which he trails donald trump?

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neil: don't know if this will unnerve investors but we are getting news out of atlanta federal reserve bank president dennis lockhart who is seeing recent signs, encouraging signs of growth that inflation is firming and it might warrant some action at the june fed meeting. he is not a voting member of the committee but his comments, his colleagues feel the same way. a june hike is not expected but if it were to happen it would be a surprise. ted cruz is told there is no chance of stopping donald trump but he has succeeded in picking up some delegates, 34 in colorado, what if i told you the strategy of finding loose change

and cash cushion could pay 130 to hundred 70 delegates or more. whether that is doable, i am thinking that could be a race changer. >> it could be on the second ballot. he will not get those delegates on the first ballot. neil: he does that going at the first ballot, denies trump, and all bets are off. >> all bets are off if trump doesn't get 1237 on the first ballot, he will not be the republican nominee. there is only one place for him to go and that is down. neil: that typically happens, not historically, whoever leads is favored and mrs. it for whatever reason, doesn't get a chance to do it again. >> usually that happens but there is nothing unusual about trump.

look at this particular case, he is radioactive. it is a good form of radiation for his supporters, his backers but lethal for those who don't like him. there is no way they will gravitate to him. he is giving what he is going to get on ballot one. he either reaches 1237 or someone is is going to be the nominee. probably ted cruz but not definitely ted cruz. neil: how likely is it, ted cruz -- go to the third, fourth, then difficult for the existing candidates, surviving once to coddled together a victory. then it does behoove despite what paul ryan is saying, and outside guy. >> it is possible. the crystal ball only works for two ballots. i told you this and you keep pressing me about ballot 3 and ballot 4. i charge extra for that.

neil: my prediction the convention is up freebie, free cable for viewers. i am a giver, not a taker. this idea of getting that many delegates committed to the ted cruz campaign by the time they get to cleveland, that is a lot of delegates. can he pull that off? >> i think he can. it is already happening. whether you like or dislike ted cruz give credit to his campaign. they saw this coming. a long time before others did. they got to work on it earlier than anybody did and there have been for weeks it the individual delegate level, the other campaigns were trying to figure out whether it was going to happen. they knew it was going to happen. neil: always a pleasure, thank you. in the meantime remember this so-called war on call? robert murray was saying it is just a matter of time if deals are done, companies fold, and

they start laying off lots of people beginning with him. he is proving very pressey and. he is loaded for bear and with a soon.

neil: mcdonald's is pulling a wrap on its wraps. exactly as planned. mcdonald's is pulling its wraps from its menu with only the rand snack wrap remaining in markets this from a friend at marketwatch, phasing out a lot of these mc wraps and a number of more, this comes on the heels of when they were going to all day breakfast which i suggested was that cfa follow up on my queens tough full burger big back. in the meantime the video that has come out on a simulated

attack, russian planes flying within 100 feet of the u.s. navy destroyer. we will talk more about this. that is not only too close for comfort but maybe an international incident. retired u.s. army master sergeant, i look at this saying that is pretty scary stuff. what happened? >> thanks for having me on. we are operating us ships in these areas that are strategically interesting for russians so when the us is getting in they are using our own dramatic procedures to get in close to these espionage ships. it is almost like a brush back pitch from vladimir putin. he is looking at the us saying back off my territory, making a bold statement, overt statement of gunboat diplomacy so we can expect more of this but it is a common cold war tactic. u.s. navy is operating professionally and right on

target right now. neil: apparently the exercise among others, the polish military, they have to delay a polish helicopter taking off from the ship because the strafing was so close, that is a little weird. >> absolutely right. they do this very strategically and joint exercises, the russians loitered in the area, 12 or 20 passes, very deliberate action to say we are watching you, you are in our backyard and here is what happens. when these guys -- they are very smart about what they are doing. we saw last november the turks shot down a russian aircraft. you saw what the reaction was. this is letter written on the front of the brussels/nato meeting saying to the us i am in control here and it is a brush back pitch, we need to stay in

close. we understand these tactics well, it is nothing to get overly concerned about yet but we have to play it smart. neil: the chinese in the south china sea setting up these islands and runways happily showing fighter jets with -- the iranians do almost routinely in the balls are of hormuz. >> excellent point and you bring up the global strategic vision and we are seeing this over and over with leadership of miranda in china and russia, pushing in hard on america and what is required for us to stabilize this is to give some healthy pushback. the united states has got to war a little bit and we have to lead a little more aggressively in these areas. we don't want to be on the losing side of this. neil: thank you, good having you again. there is a big primary coming up

in new york. taking off to the vatican, a social equality summit that will not involve the pope which is the whole purpose i thought originally of the trip. adam schapiro in new york city with the latest on that, speaking right now. adam: senator sanders starting to address the national action network and he has been hitting on issues for some time. wall street, income inequality, he used the phrase that billionaires buying collections, oligarchy, not a democracy and got a rousing applause from this crowd. yesterday senator clinton did not get that kind of reaction when she spoke, was treated kindly but he is getting more of an energetic response from the crowd. sanders after this will be going to the debate against senator clinton this evening in brooklyn and he is attending an education conference at the vatican. no word if he will have a

meeting with the pope and a photograph of the pope that he is going and coming saturday for campaigning. secretary clinton for her party spending the entire day preparing for the debate that will take place tonight in brooklyn. when i say she is preparing for the debate during the introduction out sharpton said they offered bernie sanders a chance to bypass the speech and prepare for the debate and he did not bypass the speech. he is prepared for the debate and still speaking and that got a rousing round of applause. back to you. the 20 i don't need no stinking practice. thank you, adam schapiro. a lot more coming up, this thing at the vatican should stress the media was not involved in the pope. bernie sanders could get a meeting with pope francis but as far as the meeting on social equality, global push, pope francis won't be there.

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>> is business alert time here on "cavuto:coast-to-coast." some added stand up you used today. 67% as you can see behind me.

quite a story. an internal investigation found no fraud. that's what the stocks of so much today. the longer stories not so hot. down 90% for the year with all of this considered good day internal investigation i reference, they did find some overly optimistic prognosis at the financials of the company. clearly everything is not solved as we were backwards. big solar company. it came out some time ago to delay its annual report that was supposed to come out because there were questions about misreporting certain aspects. the internal investigation, no fraud, still finishes and still should be a justice justice department investigation the company is facing. this is what we may have to revisit at some point. for today this is the stock up huge. neil: thank you, connell.

in the meantime, do not say robert mayer didn't warn you. if a player in the energy industry now bankrupt, island officially for bankruptcy. peabody energy. the ceo is right, others will follow as he is called a untraditional fossil fuel, traditional fuel sources continues. rather, good to have you. i hate to say you're right about this because you always hope to be wrong. what do you think? the bankruptcy, peabody energy that 70% of the coal industry and the financial default. five years ago, our industry was worth $69 billion. as of today it is 4.8 billion. we've lost 94% of our market capitalization of five years. drain to whose is that?

a lot of people who say you are bronx a you are wrong save peabody an all-time acquisition of macarthur coal of australia do nothing the administration. >> i say that the largest reason for the decline of the united states coal industry is the obama administration and the democrat party and the democrats in washington d.c. there is no question however, neil ,-com,-com ma that the increased use of natural gas through tracking and the use of gas from shale has taken away much of our market. so it's a combination of both the over regulation from the obama administration and the increased use of natural gas. but neil, this is a bigger issue than just the coal industry. coal accounts and generate 4 cents per kilowatt hour of electricity.

the linden dollar that we talk about or obama talks about her hillary clinton talks about his 22 cents per kilowatt hour syndicates 4 cents a kilowatt hour and the taxpayer. what is happening that should be of alarm to all americans is that reliable low cost electricity in america is being destroyed. i've been on your show now for years come this year. i've been saying the same thing and it's not over yet. people on fixed incomes are not going to be a lot of pay their electric pills. >> a lot of tesla owners of cars a lot of utilities are coal-fired plants. what are your thoughts on the republican issues. donald trump, for example, would you make make of his stance? by far --

>> the outcome of the strongest presidential candidate who has shown concern about low cost electricity for people on fixed incomes are people who manufacture products for the global marketplace is ted cruz. neil: not donald trump? >> now. donald trump may be favorable to our problem. but so far said cruz has articulated his position better on december 9th. he even had a hearing and the subcommittee on the subject. he gets it. he understand that. and so far he has done the best job in my opinion of showing concern for people on fixed incomes and for people who manufacture a product for the global marketplace. not to say that donald trump by not either, but is not articulated nearly as well as ted cruz. neil: you've been really impressing on us.

good having you again. let's start to the parents out there. do your kids like mine craft? a lot of kids play. now there's a push about my craft and schools. i'm thinking to myself, kids you're not going to win this one.

>> i am nicole petallides. the s&p abbas at their highest level in 2016. the dow about 50 points away from 18,000. this moment we see the dow 30 and 17,938. s&p at 2.5 and the nasdaq up five. we are seeing financials and telecom leading the way. take a look at delta. the profit did well with low energy prices this stock is up 1.7% and they also noted the following revenue. corporate travel demands. looking now at airlines including american and united continental olive 2%, 3% roughly. looking good across the board. then there is the enemy. priceline and expedia. stock says of pairs as well. all the news you need on

"cavuto:coast-to-coast" right after this.

neil: not much stock market reaction does fire. the justice department over uncle sam being allowed to service new primary a mouse in such. microsoft says it isn't going to play ball and not one. we haven't seen much of the response. only the other. meanwhile, microsoft is doing something that shouldn't surprise you. a widely popular mine craft program, software. it could become into schools in

june. it wants to teach kids how you can collaborate on this and didn't a smart things. the problem with that is everyone then gives square has. it shapes geometric. it's weird. the whole thing is weird. i don't understand. but it's popular. get ready. get ready for the industry because most stocks are up today. there is one that is down. a couple others did as well. wells fargo is taking on the chin for the most part. not so wells fargo. the wells fargo ceo richard kovacevich. very good to have you. >> pleasure to be with you, neil. neil: what you make to the reaction for us to wells fargo, wells fargo, but more

collectively to banking interest rate that is due for a combat this quarter because it has such a lousy first quarter. >> let's put it in it. there's been practically no revenue growth in the banking industry the last few years. it's been about 2% far below what usually occurs after recovery. we have zero interest rates which we never had historically for seven years. also there's been an incredible increase of regulatory compliance costs, security, cybersecurity investments, et cetera. but despite those headlines come in the last couple of years have been record earnings for the industry. balance sheets of the best they've ever been. more capital than ever. but from this record earnings, the only way they are going to grow from the record earnings as if revenue increases and feel that way the revenue will

increase in the banking industry is that the economy does better, does much better than 2% and we should be able to be growing at 3% or more but we are not because of monetary fiscal policy. and the economy grows faster than we will have normalization of the federal reserve interest rate. neil: which we are getting signs up already. many think they could be more likely to be ready sooner rather than later. maybe the days are gone, but the flipside is maybe a booster loan business. what do you think? >> there's no question. ag increase for interest rates is that the economy is strong and they feel it's going to continue to be strong. a strong economy helps banks in terms of morland said more financial transactions and a higher interest rate helps banks because they are earning basically zero on their deposit.

neil: do you find the economy is strong? >> well, i think the economy -- my economy will continue to grow at 2% because their policies haven't changed. even not a 2% growth, that causes employment to increase. so i think the fed will increase interest rates, probably in june. i think there will be another one for the year if not two more again assuming the economy continues to levels of the past and that will cause employment employment -- the unemployment rate to decrease. neil: at the banking guy, former ceo coming to you worry about bernie sanders, to an extent hillary clinton that the big banks are getting away with murder, that there's going to be to pay if either one of them become president? is that like a pitchfork campaign? >> i do worry. it is critical rhetoric.

we have to have banks of all sizes. there's no way we can serve our domestic -- big corporations in the united states of international operations about large banks. we also have to have small banks doing well. because at the unbelievable increase in regulations, which i think both of the people you mentioned were going to increase more from the small banks can even survive in this environment. hopefully they see a light after an election, whoever is the president and that we can indeed improve our economic growth by a strong banking industry and we can't without one. neil: very good having you on. former wells fargo ceo. we've got some interesting poll news coming out of pennsylvania of course which is that the week after we get the primary on tuesday. donald trump in a comfortable lead. look at john kasich. that performance alone divide the alternative vote to trump,

which no matter how you look at it, could slow donald trump to get to 1237 delegates. more after this. ♪

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>> we need more than a vigorous debate. we may change. we can build a new political party at the 99% have refuses corporate money and fights for rail issues like a $15 minimum wage. neil: do might not agree or maybe you do. 24 years old, but she could teach established political candidates a few things about galvanizing crowd. make this 24-year-old.

she's not. she's not ugly and the site for a fair wage with $50 an hour peer she sympathizes with the plight of the common man in a way and i don't think the candidates are addressing. whether you're for that or not, you must then you will hear from this lady. right now with blake irving to let a chance to sit down at the dnc chair, debbie wasserman schultz. i keep thinking what debbie would think of this woman. what you find out? >> we sat down yesterday in her office and of course a lot of the attention gets paid to hillary and sanders on one side to trump, cruise, kasich on the other. she was talking about how they are doing down ballot and how comfortable they feel. she was in the opposition research already underway as it pertains to donald trump and ted cruz. she thinks at this point -- at least as talking to them, as much as 60 congressional seats could be in play.

only in play, not necessarily. neil: there's lots of very good odds that democrats -- >> larry sabado has just started to miss started to move some or airstrike last as political reports were saying yesterday. it only takes 30 to get the house. congressman debbie wasserman schultz wouldn't give a number rest to how they feel or what they might think. she was very honed in on donald trump. she called him, end quote, misogynistic, richard alex and that was just some of it. take a look at her while she compared it to. >> donald trump is the least popular, most divisive, most defense did candidate to run for president certainly in modern time and probably if he went back in history and nearly all of her. i would compare him to the church wallace.

>> we asked this editorial committee about this old down ballot they. the republicans. this is the republican side. democrats are living in a fantasy that they think the houses went to be flipped and they think they will keep them both on their side. neil: the boat chance of doing not, debbie wasserman schultz said at the republican component. >> she wouldn't commit to one or the other, but she said they feel good with either one of them. not that they feel good because it would be awful for the country, but right now they came in on those two. neil: blake irving, thank you very much. the battle is on for our feel they are being wronged. we see a $15 minimum wage protest and others who are arguing that uncle sam was somebody pick up their college educion. a woman who embodies the rage and she's only 24 years old.

meet her next.

neil: another protester in the country. the biggest or at least the most widely based process is the fight for the minimum wage in new york city earlier outside donald. being played in 300 cities across the country. a push right now to raise the minimum wage to $15. we are ready in california, cities elsewhere and they want to see this follow. along with the millions student march pushing for a college. >> and equality -- [inaudible] and equality in our lives.

we will win. neil: it might've been hard to hear her. there's no difficult hearing her at these rallies. whether do you accept the point of view or not. i think other candidates, particularly those on the left might want to pay attention because it resonates and goes way beyond bernie sanders. scrubs is her name. good to have you. >> hi, thanks for having me on. neil: you are into this because you say conventional politicians have forgotten that there gotten these causes and you include hillary clinton in that route. why? >> i mean, i think hillary clinton is the perfect representation of what corporate politicians stand for. she is a candidate of wal-mart, wall street and war. politicians like hillary don't prioritize things like education, quality education,

affordable education, which is why i participated in this millions student march. what we are seen as a crisis where millions of students are being space to the question of dad and how they pay for education. i myself being one of those young people that don't know what to do around the question of going to college, receiving a degree. i am told is a young person that is a requirement in order to get a good job, in order to have the quality of life, but yet it has become so inaccessible for a large majority of young students. neil: so you think the government should pay for it. >> i think the government needs to reassess his priorities. we prioritize a lot of things, but education doesn't seem to be one of them. for example, we just found out the u.s. is launching a new initiative to upgrade its nuclear arsenal. that's going to cost $1 trillion over the next three decades. there is $1 trillion to invest

in nuclear weapons are there certainly is money to invest in education. why do we prioritize ward in nuclear weapons of her education and justified millions of students go into debt seeking a quality education. neil: you raise a good point. we could prioritize our wanton think we want to do but we don't have the money. we are one in the $19 trillion plus debt. what he said about? >> well, that's always the excuse. we don't have the money for anything. i say that our country really? creativity and well. what is being sold to me as a young person is the history of that if i go to college, if i speak in education, if i work hard and i have the opportunities to advance in life. what the system has shown us and particularly the system of capitalism that it cannot produce any substantial quality of life no matter how hard you work.

one third of u.s. households cannot afford necessities like rent, food and transportation. this is a problem. we see 1 million students last euro loan default on their student loans. $176 million for congress from working people wages and to pay back student loans debt. if the system doesn't have the money to provide for housing, food and shelter and education, maybe we need a new system because it isn't working. >> let's say you do get a new system. the idea to pay for college for everybody, wouldn't those colleges, knowing that uncle sam or whomever is picking up the tab, wouldn't they just keep right price? >> yeah. we send the price of college already been ratcheted up over 1000%. was in college tuition. and already goes back to priorities because in the u.s. you have 11 states that and more

money on prisons than they do public education. so where are our priorities and whether the demands that have been added as a divestment for private prisons. it has been a boom. a large investment because it's more profitable to funnel people to prison and black young people then it is to provide quality and accessible education. we need to question the society that would rather have most of its population in prison and jail cells than in classes receive a quality education. >> one of the solutions bernie sanders has come up with in a note you're a fan of this to tax the rich more, tax wall street, but to what end because even he has acknowledged taxing won't pay for all of this. so he's extended out to the middle class, at least he's honest he says, yeah, you are going to pay more

but you're going to get more. do you buy that? do you think there's a limit to how much you could tax the rich, how much you can tax companies. how much you can tax anyone else. >> there is a limit. that is why talk about creativity. we also have to look at not just taxing, but investment. when you look at the private prison industry, the two largest investors are actually 401(k) plan providers, vanguard being one. that means people that pay into their 401(k), people do pay into pension, public sector workers, looking to retire in the future, their money is being invested into geo group, the two largest private prison corporations. so why don't they -- a lot of people don't. neil: i understand. you are talking those that might mark, but otherwise is a

valuable role. some of these companies look after money for folks. stepping back, i wonder where you draw the line. you really are a marvel to watch. what is your idea about a higher tax rate? would he think it should be? >> when we talk about tax in the one and i did see the previous interview where you said the 1% is anyone making about $250,000 more. i completely disagree with you what you think the 1% as. but with a 1% to more talk about those making billions of dollars particularly off of industries by private prisons. we are talking about wall street banks. neil: you want to go into the millionaires and billionaires. >> we are talking billionaires, not millionaires. we are talking in the waltons.

neil: if you raise the taxes on all those guys, do you think it would pay for all of this? >> statistics show a higher you go up the economic food chain, the less they are paying anyone. so there is plenty of room to actually raise taxes that the 0.01% are not paying the same amount of taxes that the working class person. we need to acknowledge it. neil: you're absolutely right. you are right about that and articulate it well. what i see is a great deal of creativity on some on the left to find great ways to get more money. as you did and acknowledge the debt, we had our priorities screwed up. back to i agree with you. why can't we show as much creativity looking how we are spending their money and rather than go knee-jerk towards trying to get our money. find out first how we are spending it. >> we are spending our money on wars. we are spending on tax rates for wealthy corporations.

neil: how do you feel about spending money on medicare, social security. >> our military budget by 600 -- [inaudible conversations] -- the issues as we are prioritizing -- neil: you don't like the six plus we're spending on the military. there's a lot of conservatives who agree the numbers too big and accounted. the money that speaks on these entitlements, which you rein them in as well? they are growing at a far fast pace. >> i would also rein in the $1 trillion speed is to upgrade or nuclear weapons. that should not be a priority. neil: i understand. i do want -- i know you want bigger military. it's all included. i do want to ask you.

>> meal, there is creativity when it comes to war. this shouldn't be a question of cutting things. there is money they are. if we can pull a trillion dollars to say we need more nuclear weapons, obviously there's money laying around that could be used to pay for education. it's asinine. neil: we didn't spend a penny. let's say we wipe that out. it shows you how big it is. even if you were to wipe out -- >> it's not that big of a task to have free public community college. it would cost $62 billion. the u.s. government spent 69 billions of dollars in 2014 on financial aid programs. neil: you want to cut defense. there is probably room --

>> we need to readjust our priorities. neil: fine. i agree with that. let's say now we are trading -- >> who is making that argument? [inaudible conversations] -- that's the worst example. neil: please listen to me. i will let you talk. i promise. if we wipe that out. you don't want to do that. i do want to do that. the government is still the position of running in the red. what do we prioritize on to get back to the things you think are important? >> i shouldn't have to answer the question of how to handle the deficit that the government created. i'm not a government official. i was elected into office to solve these problems. i'm a taxpaying dissent, a young person seeking opportunities and a system that is unable to provide regardless of what the argument is. i say the system of capitalism has proven itself illegitimate and it cannot provide basic

things like education, shelter, health care. we need to readjust how we view our society that someone has to defend the right to education. neil: i know you are raising a 4-year-old boy. it is tough and i grant you that. i am wondering that other countries around the world that is try to afford protections like the ones you've outlined they don't spend nearly what we do on our military are in a world of hurt right now. greece, italy, portugal, spain, france. they have provided a lot of entitlement to talk about, including free college and many of those countries. >> they are hurt because their governments are assisting in storing offshore money and safe havens that are being taxed. $22 trillion in banks that are on tax. we are talking about corrupt government officials and you are comparing that to have an affordable college. those aren't the same thing.

neil: i understand. all i am saying, just hear me out. you make great points. all i am saying is that followed these countries that have promised, you know, free health care, and free college, early retirement as young as 42 in some countries. they are coming back realizing they can afford anymore. >> that is true. that's not true, neil. i'm in germany. what is happening in greece and the 07-08 economic crisis. who caused that? whilst you, banks, predatory lending. corruption, laws that would break it. did any bank or go to jail for that? why don't we put some of these bankers and there. neil: i got your comments in germany. you were really impressed about there. that country, that country doesn't do nearly the amount of

stuff these other countries do. it is the country -- >> i totally disagree. they have plenty of countries that offer free college education. neil: precisely because it did not come down the path for all this stuff. i'm not saying some of your priorities are good. >> germany has free college education and health health car. we're only talking about the topic of college education. now you are trying to blow up other problems. greece can do it. can the u.s. not provide education. is that what you're telling me? the united states cannot provide education to its citizens. that is what you are telling me. neil: germany is the strongest -- >> help me understand.

we are talking about the u.s. let's talk about the u.s. the u.s. cannot provide education to its citizens. neil: you make a very good -- >> we are talking about the united states. >> a trillion dollars on nuclear weapons. neil: do you think bernie sanders is right? >> you are refusing to answer my question. you are saying the united states cannot provide quality education to citizens. that is the reality. neil: we can't afford a things are not to pay for college education without taxing a lot of people. >> i just gave you multiple, multiple ways that it could be paid for. and you agree with that. all i am saying -- neil: all i am saying is can we reprioritize to address spending. >> we are talking about

investment in prisons. that is one place where we can easily reprioritize. we don't need to be building more prisons. we have more than degree granting college universities. that is a problem. that's the money being invested into universities that can educate young people. do you not agree, neil? neil: i agree on one thing i think we are past each other. we can reprioritize et cetera focus. before we talk about raising tax is, let's focus on where it's going. >> no one said anything about raising taxes but you come and kneel. very creative. neil: i'm using your words. talk about raising taxes. >> you want your viewers who are crunched financially to fill it taxes are raised on them. when i say raising taxes on talking about bankers, the

0.01%, the rothschild, the walton, hedge fund billionaires. we talk about two different people here. neil: you raise that and you are quite right. even taxes are going to address everything you want. the bottom line we agree on, i'll am asking as let's reprioritize first before we decide i'm trying to get the government more money. >> we know what it's doing with the money. it's giving tax breaks to the rich end up paying for war. i'm not confused. maybe you should do some more research about where your tax dollars are going. i understand exactly where it's going and it's not going anywhere in education because it's not profitable. we live in a system of capitalism where the idea is to make money. if it doesn't make money, it's not a priority. we need to restructure our society and how it set up and reprioritize what we value is important and one in profit should not be more important

than education and human rights that the fact it is is a problem. neil: thank you very much, darla describes. a movement that is a very big cause. hillary clinton might want to pay attention. we might have more. immaculatimmaculat e that single women in danger you shouldn't have to go far

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hillary clinton are pathetic and bernie sanders, you get it. would you make of it? >> well, she didn't want to talk about taxes better candidate sure does. we have a report on monday that shows where he will hit you in your wallet. if you're in the 50th percentile of americans, taxes go up by 8% more gone out of your paycheck. she didn't want to talk about tender on. talk about your a prisons. the bottom line is america spends more money and education than than any other country on the planet. we get terrible results because they don't hold anyone accountable an entire class of victims but are we spending more on this or that. you can't really pleased us. her problem was with capitalism. neil: the one thing candidates are missing because this is a palpable raid expressed in strikes and protests around the country as we speak. we do have to reprioritize

spending. my only big issue is why is the automatic nature push on the left to raise taxes or to willy-nilly raise minimum wages without addressing may be underlying issues. two separate issues, but the minimum wage trying to talk about the government and the government spending that goes on. let's address that spending before we talk about giving the government more money. what do you think? >> you're absolutely right. it's easier to talk about raising taxes. it found by people understand. let's get this 1% nurse. you are absolutely right. you have to know what the money is going and start to cut expenditures to take a look at some of its programs and see if they are needed any longer. when she started talking about war and we didn't need nuclear weapons, i'm sorry, but we have an enemy called isis. they don't like americans. they will do all they can to do

with many -- kill as many americans. neil: lets take away the whole 600 plus billion dollars. that's not pay a that would still leave you with the money going out versus money coming in. even allowing that. entitlements are large part. the fastest growing part of our budget. people are very leery on the left to address that. by the way, republicans just as larry to specify that. what you think? >> at the time of selfishness. this is a robin hood jury of economics that if we take from the rich and give to the poor, everybody's going to be fine. you can take away all the wealth than it would make a dent in the obligations we have today. $19 trillion in debt. match that plus the entitlement we are already on the hook for. social security, medicare, medicaid. what they don't want to realize is the democrats are seeking dependents.

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neil: you know the government is still in the position of running in the red. so then what, what do we prioritize on to get back to the things you think are important? >> i shouldn't have to answer the question of how to handle the deficit that the government created. i'm not a government official. i wasn't elected into office to solve these problems. i'm a tax-paying citizen, a young person that is seeking opportunities and in a system that is unable to provide it roaredless of what the argument is. i say this system of capitalism has proven itself illegitimate and can not provide basic things, like education, shelter, health care. neil: all right. she is saying parties abandoned these basic causes.

bernie sanders who she supports. how do republicans respond to this? congressman steve scalise joins us right now. he is pretty bigwig in the party and majority whip here. congressman, i want to get to that with her, part of her argument, it is a sound argument, let's look how we're prioritizing spending we're doing now. i agree on that point but obviously readily differed on what to cut or prioritize on. republicans response, that is beney, a gimme, a entitlement s that a good enough for a lot of americans like her who are frustrated? how would you sin someone like that over. >> neil, i point to things that actually worked. in my home state of louisiana, i was on board for teach for america, when we return ad corrupt system of schools in new orleans to a system of charter schools where parents have options. you use money there in much

smarter way that was being stolen and wasted with things already being done. we created a system of charter schools where you have kids that are learning that weren't learning for that. liberals fight that. neil: how is in many in the party have not been, when it comes to the candidates. they all don't care about people like her or don't care about rabid base looks like oh, they're just bernie sanders kooks? how do you try to win them over. >> we need to get back to what ronald reagan did is inspiring people. both sides, republican and democrat, presidential race, mostly personal insults back and forth. we very to get to inspire people getting somebody out of poverty. you don't do it by creates more welfare programs. that has been proven to fail. it is getting people back to work, welfare to work, where you can't just sit on the dole. if you're able-bodied person go get a job. there is a lot of opportunities

out there. we have to do better job encouraging people to break free from the system. a kid right now they're complaining about student loans because they can't get a job because the obama economy failed them and living in their mom's basement on obamacare. they don't want to live in their mom's basement. create opportunities and stopping tax the rich. the rich basically means the middle class. that is what obama has done. crushed middle class. neil: leader for your presidential nomination, thus far, that the super-rich pay more, they get away with a lot. even donald trump if he becomes president. i'm sure she is not a fan of his, maybe he agrees maybe that group which routinely finds clever ways to avoid paying taxes needs to pay taxes. >> i would love to hear here ideal rate. pfizer left the country. other companies, leave because we have the highest tax rate in the world. 35% is the highest rate in the world. neil: even donald trump wants to go after that crowd through

carried interest and the rest. maybe limit writeoffs, deductions to pay more. do you disagree with that. >> we'll not solve problem by raising people's taxes. people know washington has enough money. in president obama's budget he proposes another two billion in taxes that never gets to balance. inn in our budget, through economic growth we get to balanced budget by rebuilding economy and middle class this president crushed with regulations and laws like obamacare that took over the student loan program. remember barack obama is the one that took the student loan program out of our local community banks where it was run a lot better and took it so that he could use that money to pay for obamacare. neil: congressman, thank you. for indulging on this breaking news and reaction to this young woman. i think it bears discussion and i'm very happy that you were happy to discuss. we appreciate it. >> sure. neil: all right. meantime the fallout when liberals and conservatives talk

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neil: before we talk about raising taxes, let's focus where tax money already has gone. >> no one said anything but raising taxes but you, neil. you pointed to raising taxes. i think we can be very creative with the money. there is money. neil: your words, i heard you on youtube talking about raising taxes and rich -- >> when you say raising taxes you want your viewers who are

crunched financially to feel like taxes are going to be raised on them. when i say raising taxes i'm talking about bankers. i'm talking about 0.01%. neil: all right. still raising taxes. so my point is this, and i thought it was good fair give-and-take i could give someone in limited time around which my producers we went way beyond limited time allowed and good reason i want to devote rest of the show to this subject. it cuts what we want to do and our government to be. this young lady raising a son on her own. all of 24. she has legitimate beefs and concerns about a government who has failed her in her eye, politicians that failed her more. it's a frustration among many young people particularly, young minorities even more particularly, how do you reach out to that group? how do you respond to that cynicism that the government has failed them and at the same time

say the government has to do more to help them? to charles payne, who has written extensively talked about these issues as well. charles, what do you make of her point that it's a rigged system? >> you know, i got to tell you something, neil, last year my wife and i started a fund, or a foundation if you will, called certain tithe for success. we gave away 1700 shirts and ties to high school graduates in new jersey. and a lot of them were black and hispanic, majority of them. i have to tell you something, the thing that was heartfelt, broke my heart than anything else, a, they all wanted to be productive members of society, b, none of them knew what the next step would be. once they handed them that diploma next week they had zero clue where they were going from there. so in that regard i do believe we are letting down young people in this country. we're not preparing them now. some of this is the fault i think of teachers unions. some is the fault of parents who don't mind their kids getting

watered downgrades so they can say little johnny got an a. the other side is personal accountability, you feel for a woman 24 years old. but she had this child on her own. it would not abyss's responsibility to adjust their pay to her or anyone else because of the kids they have, particularly when they don't have them in a marriage. we were going to talk about chicago earlier. so i did a lot of research. it is reflective of the whole country, but poverty in chicago is most part 59% of the people in poverty for instance in chicago, are households headed only by women. there is a lot of things by both sides, need to be fixed and need to be adjusted because we're in real trouble as a nation. neil: one thing i get to, i don't know what conditions she had the child, i don't want to go there -- >> i'm just saying. raising a kid on her own which says a lot. neil: first knee-jerk response you hear among many dissatisfaction with the government is this odd push to, at the government spend more. so, you know normally, if you're

screwing up something, doing it, again, isn't going to unscrew it up. i guess what i'm asking here, if we're addressing all of the priorities that the government doesn't get right, i guess that is what she is sighing, gist of what you've been saying, what i i've been saying, well all have our different priorities i argue in 3 1/2 trillion dollar budget we could find a way to address the waste and over the top spending first, then, then if we reshape the priorities and still is enough, then, talk about revenue, talk about tax. >> yeah. neil: i don't think we need to get to that point. i think what we'll find, we could certainly slow the growth of government, to address some of the things that she might want to see, that you might want to see, that i might want to see, invariably feeding the beast only makes the government more beastly. >> that is all we do is feed the beast. we talk about raising taxes, we know the u.s. government took in

2 trillion. they spent 2.5 trillion. if they took in three, it would be 4 trillion. conservatives get upset with shrimp on treadmill. liberals get upset when they look at the military defense budget. you're absolutely right. it is real tough world. meantime politicians they're going to d.c. with one thing in mind, how to get back. that means who brings home the most porks and bridges to nowhere. deeply embedded problem perhaps this, on both sides of the aisle now we see these grassroots movements that echo each other in many ways although the solutions are always different. maybe this might be that moment in time when we -- neil: you know what i worry about? the cynicism it breeds. i understand she is 24, many young people a lot older than her have a cynicism about corporate america. we've seen abuses ourselves. big money center banks are rescued and nerve to question the government position of rescuing others. i wonder if capitalism itself, and some of the biggest

proponent have hurt their cause because they look like hypocrites? >> a, i would say bailouts of these banks does not represent capitalism, failure is a part of capitalism. just like a part of our everyday lives. once they bastardized whole system and started bailing out banks where i could see anyone would be cynical, upset and offended. it is only natural.d i both agrs should not have been bailed out, even if it meant harder landing for this country, so be it. that would have meant great things for companies to run their businesses, smart, wisely and other 1000 banks did not go out of their way to be so reckless. so having said that neil, a lot of these younger people also need to understand where we stand with respect to their peers around the world. a lot of time the grass is not greener. in fact it is not greener anywhere else around the world but we keep hearing this, right? neil: all right. >> fed official this week side denmark was better place to

climb ladder of success than america. absolutely incorrect. neil: thank you, charles payne, thank you very much. one thing you point out to, you hear from bernie sanders our military gets disproportionally too much money. does it? a former hero says be careful what you wish for after this.

>> very good afternoon. live from flashing of new york stock exchange, i'm lori rothman with your fox business brief. we're in rally mode.

gains have seated site. couple hours to go to the closing bell. it is all about the banks today. key earn, this week giving a nice lift to the sector. bank of america leading the way. shares up 2.25%. bank of america reports adjusted earnings per share meets expectations. revenue fell short because of trading declines and low interest rate environment. wells fargo, as you can see, is down about .4 of a percent. this is holding further gains in the financial sector, down here today. down in profit. they had to set aside like a billion dollars, wells fargo to cover bad loans. show you tech stocks. tech is doing all right. amazon rallying for 5th consecutive day. amazon down. "coast to coast" continues.

neil: find out first how we're spending. >> neil, where are we spending our money? we're spending our money on wars. we're spending on big tax breaks for wealthy corporations. neil: how do you feel about spending money on medicare and social security? >> that is our budget, our military budget was 60billion dollars. come on. so we're not going to pin one being more important than the other. issue is we're priority war and prisons morn than education and health care. neil: we're spending on

military -- >> not when we have students millions in debt. neil: all right. that got this guy's attention. former army intelligence officer, lieutenant colonel tony shaffer. what do you think, colonel. >> well, it is pretty much insane. look i belong to a transpartisan organization called the pentagon budget campaign, right, left, center. we work the issue. there is no doubt there is waste. pentagon should be audited. we talked about that before. if not us who? i debated congressman ron paul on this issue on john stossel's show when he was running for president. issue who, we protect the sea lanes, one of the topics we'll talk about today, is south china sea. the reason the world has the economy it does, the reason people do well, for better or worse, the united states has been arbiter of peace. we have been one thing that keeps things going. if, and absence of us, neil, do you want russians doing it? do you want the chinese doing it? frankly we are the indispensable partner. we are the indispensable friend that costs money.

i'm not here to defend everything pentagon does. trust me, i'm critical of them. we've had this discussion. but for the most part it is our national security policy that affects the world globally and makes it possible for every other nation on the face of the either to have the level of security necessary to have commerce to, have order and for goodness sake to have level of peace. we do not use our military forces to build empires. it is to sustain the western civilization as we know it. neil: but a lot of people say look, 600 plus billion dollar budget. you yourself probably like any budget room for reexamination. >> right. neil: but gutting it completely, i don't know. >> well, no, you can't. ash carter came out with forces of future concept which is totally insane. it does not tie the budget to what we're doing militarily. so i think there is some flaws there. with that said, neil, we have to essentially establish a grand strategy. one thing she doesn't recognize we study all the time we have to figure out what we're going to do.

reagan white house did this brilliantly. establish ad strategy to defeat russians. before '88 they started budget cuts because they were able to fund the strategy. that is what i fault the pentagon on. they are not sitting down to do a grand strategy. the white house won't let them. we have to figure out what is in our american interests what we have to fund, we continue to do that otherwise there is chaos. i will tell you this, she is not understanding this. the american people will hate if we lose our ability to maintain our economy, maintain dominance we have of keeping sea lanes open and things like that. we will suffer of the as long as the american people understand that they will be on the side of the defense department and try to do the right thing. frankly the rest of the world really does welcome it, even though they don't want to say it. neil: colonel, always a pleasure. thank you very much. >> thank you, neil. neil: we'll try to turn the heat down a little because i don't think there is much heat to this story as feel-good story. you think golden state warrior players are happy right now, you should listen to their co-owner.

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>> a lot of -- curry does it. 400 three-pointers in a season. [cheering] neil: amazing. you think players were happy and people going nuts about it, imagine being the team's co-owner. we have co-owner peter guber, of course ceo mandalay entertainment, much, much more. peter joining us on the phone. congratulations. >> thanks. it is really great pleasure to talk to you, neil. not congratulations to me. organizations build culture but teams win records and combination with little luck and

god's work you get magic once in a while. this is one of those moments. neil: i know you're a modest guy but people say approach to the team, not decimating but helping to build it was integral. pressure is on when you come off of a season like that. they say you have to win everything now, right? >> you know, that's true. you can't host, lift the banner at 73. you have to do what the promises inherent in having that good fortune happen with 73 wins which breaks all the records but at the end of the day one counts so hoisting banner that you're a champion. that 73 will mean a hell of a lot more if you can get to the championship and proclaim yourself the best that year. so i think there is a lot of road ahead of april, may, june, before the real celebration. these players and coach steve kerr have worked tirelessly as a team. they have been a joy amongst

them playing all together. they like each other. it is inherent in the very fabric of their play and the way they interact off the court, on the court. i think that magic is effervescent. it works throughout the organization and throughout the city. this was a moribund franchise five years ago. neil: i remember well. it raises issue how you keep them in the zone so to speak and still psyched. i always think basketball for some reason has the longest playoff season ever. first off, everyone seems to make the playoffs and it goes on forever. i joke, i make the point can they sustain that for a while now? >> that is really true. this is momentum sport. the playoff series is completely different, completely different season than the regular season. game after game with the same team. about making adjustments but skief kerr and coaching staff

and organization are up for this i'm sure. there is a lot of luck. fortune smiles on prepared and people really well-intentioned and organized and talented. still you have to get lucky. this is long, long grueling season. i wouldn't opine on the fact that their journey is by definition uncertain but we're hopeful. neil: you know, peter if you don't mind, indulge, now that i have you on the phone congratulationses with the team's success. not successful, at least trend of late, batman superman movie, boffo opening weekend, despite iffy reviews, fallen dramatically since. some worry about the franchise itself could be could be in trouble. as a former mark key player in the early "batman" and michael keaton days are you worried about the franchise? >> i was in a nba bored of

governorrers and we were over at marvel working on a project for warriors. they were talking about these things. when you put two major assets in a playoff, superman and batman, you double your risk, you double your opportunity and double your risk. you can injure our franchise. i think they skin out, the economics will skin out because of the global marketplace. it will perform well internationally and has performed well. i think economically they will skin out but there is always a risk when you double down with those two assets. they have promised to move forward with ben affleck directing mano, just batman. they were aiming at larger viewers. they were aiming when they brought wonder woman in the third act as you recall, hoping to have a league of legends kind of group. i don't know whether they put that on hold now or not.

they have to be careful not going after individual assets and not making them as strong as they should be. neil: you're the expert. i would go slow on aquaman. i may be taking a leap. i don't know if the audience is ready for "aquaman," could be. the season, summer, a lot of superhero, action flicks, how do you think it is going to go? >> the world is so changed. in beginning it was domestic response of the audience. that is the ground rules and most of the money came there. today most of the money comes from international. usually three times domestic, three times domestic. which means all of these financial groups that model their pictures before they make them, they ask a very important question how is it going to do in china, india, brazil, europe, japan. that is what make as decision what films to make and how much to make them for. so we're aiming for a different kind of audience than we were a decade, decade 1/2 ago. i think these films are a

business propositions as much as they are creative propositions. you will see when some of these films perform modestly in the u.s. and do blockbuster business overseas, it drives the business. neil: all right. peter, always a pleasure. congratulations again. >> thanks, sir. neil: peter . trish: thanks so much. a lot going on, breaking any minute, the palm beach county prosecutor is going to be speaking in a news conference where he will announce all charges against corey lewandowski the trump campaign manager charged with battery of a reporter will be i'm trish re. welcome to "the intelligence report." any moment we are expected to hear from prosecutors that donald trump's campaign manager will not be prosecuted for man handling a female reporter. there is the scene live from palm beach, florida. corey lewandowski was charged with simple battery where former