tv Cavuto on Business FOX Business April 30, 2017 6:30am-7:01am EDT
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that's not going to work and it's sadly going to lead to real consequences for people driving under the influence and unfortunately dying from this decision. john: it's not like these don't exist. there are all these new businesses ride off's's and instaride get me ride get me aunt they have facebook ridesharing group with 8000 people. >> i was just down in austin and i had to take a taxi because i could not find a single ridesharing app that would work. it's a nonprofit. take away the profit motive and try do a charity in the customer service starts to suffer. we need uber and lyft to be operating or other private companies that care about making a profit. more portable rides more transportation more dynamic for higher vehicle market.
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it's insane that the politicians get in the way. the uber can beat them because uber was successful immediately. they didn't have a big infrastructure. all they had was an app to put on the phone and they had a billion dollars and a million customers so they could fight maher de blasio but i feel sorry for audio the businesses. what if you're trying to start a chemical plant or a nuclear power plant or bring a new drug to market? you can't do anything anything unless to get permission first. >> it's great to see companies likebe outsmarting regulators innovating arod their own regulations but i do just like you feel for the other entrepreneurs who work in a more regulated sector that they don't have a luxury that uber was able to have. john: we don't know what innovations we have missed. thanks to the internet people can share more than car services. they share apartments like an air bnb.
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dianne feinstein said those companies are operating illegally. protesters had invaded every be claiming an air bnb deprives them of cheap apartments. [chanting] they are arguing that the landlords are renting to people through a b&b and therefore housing prices are higher and it shouldn't be allowed? >> that's the argument that the different story and before we start or want point out that senator feinstein doesn't have a multi-million dollar hotel chain so everything she says should be taken with a grain of salt. john: that's the swamp. >> that's part of the swamp but one thing or look at what they are b&b -- john: i have to believe it's not just about the money for her comments about the hotel unions the issues of them at that and the unions on the democrats. >> you see hotel chains going to
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conferences tied about how they care about affordability and affordable housing. if anything you could make the same argument for hotels. rental properties or affordable housing off the market yet you don't hear people making those connections. there's an alliance between the hotels, their union and the affordable housing advocates. john: thank you jared meyer of the manhattan institute. next, the incredible awesomeness of elon musk. if he is so awesome why does he need so much taxpayer money? >> $500 million from the government if you have afib not caused by a heart valve problem, and you're taking warfarin, you have the choice of a different kind of blood thinner. pradaxa helps stop blood cells from pooling in the heart, forming a clot which canause a stro in the brain. in a clinical study, pradaxa was better than warfarin at reducing stroke risk. and in the rare case of an emergency situation,
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the green technology handouts. >> by better value for tesla. snake it provides collector hookups at the tennessee truck stop. john: washington doles the money up if they want to save the environment by supporting green energy. but how do they know which energy company will do something good? the obama administration had a billion dollars to these companies which later filed for bank c.. with taxpayers paying for them. even my colleagues on the left are distressed by that. >> clearly it looks like the in the deal as a taxpayer. john: as usual. of course not every loan recipit failed tough tesla motors got a loan d tesla is booming. tesla was founded by elon musk and the media loved musk. rock star savior, the incredible awesomeness of elon musk.
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why elon musk is my hero. but he is not my hero because lots of his money came from us taxpayers. i think he is a crony capitalist but an economics professor i respect says i'm wrong. he is a freeloader. >> john i love you but i think you are wrong on this. there are certain things that they get tax waivers on that other companies don't get that we have too differentiated tax waiver with a subsidy. when people say oh they got $5 million if you look into it a lot of it is nevada promising not to tax certain things for a few years or in other cases the customers can wave, lower their income taxes. these are not subsidies. they are not a direct subsidy for tesla got a $4.9 billion loan from the government. >> it's all wrong. they did get a half a billion
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dollar loan but they paid it back so here we have a small amount of subsidy in terms of -- john: why should they get any? why shouldn't government treat everybody the same? >> i totally agree with you on this but given their taxes in the world i don't see why it's wrong for a company like tesla to pursue jurisdiction and to sell products that have lower tax rates than other people. john: i don't blame them for doing it. i wish they put their energy into improving the car rather than money out of washington but tesla's are expensive to in california they get a 7000-dollar tax credit from the fed and another 2500 from california. the cheapest tesla is $66,000. this is welfare for the rich. >> is like a mortgage interest induction. you get to lower your taxes. john: richer people have more. >> banksre giving out mortgages helping people ler
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their total tax burden. just because they're helping people lower their tax burden i don't think we should be calling them a crony. they are not drawing money from projects of the government. they are simply letting people lower the taxes. that's not cronyism. john: in fairness to musk i should point out spacex the rocket ship company charges five times less for satellite for competitors in the government. >> my understanding is they rely more on government contracts than tesla does that still you see private enterprise doing something that we assume has to be done by nasa. 94% qualifies as great. i will give them an a may be an a. john: the left will never give up on subsidies for their favorite causes. here is juan williams on special report. >> there has to be a role for government in alternative energy. you look at germany and look at
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china and brazil, they are all investing in the alternative energy. >> i'm totally on board. there should not be government picking winners and losers especially in industry but even without government picking winners and losers we would still see this company being successful. the amount of value-added of tesla is phenomenal and they are not doing it on taxpayer's dime. john: i will keep an open mind about tesla but juan says these open subsidies germany and many these companies have now figured out oh my goodness electricity cost so much and they are cutting back on the subsidies while we keep them going. >> i think subsidies in general are a disaster. their take money out of the productive or of the economy subsidizing things that wouldn't be produced in the marketplace but if you see a company that is successful that most of its money is coming from the private sector, that's good.
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we also see them facing -- if you are a restaurant and you sell some of your meals to a government official who all of a sudden we consider you a bad guy? i think we need to look at what they survive on the free market and if the answer is yes we should be giving them a big pat on the back. john: okay, that is edward stringham's opinion. next this woman just $125,000 which you will use to fight cronyism that hurts poor people. >> we go to use the money to with this level of engineering... it's a performance machine. with this degree of intelligence... it's a supercomputer. with this grade of protection... it's a fortress. and with this standard of luxury...
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john: that woman is trying to win $25,000 by a six minute pitch convincing these judges that she is a project worth funding. her project aims to get rid of rules in her country in indonesia rose that raise the cost of food. >> i buy rise for $30 in chicken or fish for $35. when i come home all i have left is $30. john: she works in the libertarian think tank in indonesia.
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>> she came to america because it was a non-profit that promotes freedom around the world held a shark tank like contest for international think tanks. alice gets $25,000 every year to the best idea. when one think tanks entered the contest. a panel of illiterate judges chose the winner and this year they chose her. >> this is amazing. why is it so expensive and indignation at? indonesia is even more for crony invested swamp in america. >> you would have a special license. to get that license you would have to be a ste-owned enterprise and once you do get that license you would have to wait for the president literally to tell you how much quality can import. john: glad that doesn't happen in america, accepted does. >> i give to everybody.
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when a i call i get then you know what when i need something from them two years later, three years later i called them and they are there for me. it's a broken system. >> would you get from hillary get from hillary clinton and nancy pelosi? >> with hillary clinton i said get my wedding and she came to my wedding. she had no choice because i gave to a foundation. john: so sleazy. still cronyism is worth in other countries and that's why the atlas hosted the competition. it's important to spread these ideas around the world. >> definitely. these are universal values. they are not american values. we believe everyone deserves liberty and it's fantastic that so many organizations that embrace this mission. john: why did she win? >> she represents our partner in indonesia and pinpointed its an amazing opportunity to lift 25 million families out of poverty.
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$6 billion annually for the sector. our judges ate it up saying it's an amazing investment. john: she won because she had an idea tt would bring a return on investment. >> there's a lot of work to be done to make sure all goes according to plan and the opportunity to make this happen in indonesia. john: is the fifth time you posted this competition. whether ideas worked? >> the first that was really memorable is won by a group called the taxpayers alliance and they had this idea of fighting against what's called the beer tax which was scheduled for a regular increase. they use the prize money to produce thousands upon thousands of what they called coasters to you and i. john: we have a picture up there. buying around? don't forget one for the tax
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man. sin when they did the math they realize every time you were in a pub fined two pints attacks on it and you could have had a third that in fact that has gone to some bureaucrat so that was able to create a public moment to to make it's a scheduled increase in the beer tax and it went down a little bit after the big campaign where they got some of the british tabloids to come on board an amplified the message. a little project on a shoestring budget means more beer for british taxpayers in the less money for bureaucrats. it's a big win. john: and these think tanks in how many countries? >> 96 now. john: and you get a sense that liberty is winning? >> there are some places where we have seen some exciting come to fruition a lot of energy among young libertarians in brazil. they have toppled the government so there is some good signs that
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things are moving in a positive direction. this nice feel like the berlin wall is coming down but a lot of partners are getting rid of little regulations that prevent entrepreneurs from creating well and that's how you create prosperity. john: let's do it here. thank you brad lips. next, politicians and lobbyists get so cozy. candidates always promised they will change the culture but they don't. i promise it's not going to happen to me. when heartburn hits, fight back fast with tums smoothies. it starts dissolving the instant it touches your tongue. and neutralizes stomach acid at the source. ♪ tum -tum -tum -tum smoothies! only from tums at angie's list, we believe there are certain things you can count on, like what goes down doesn't always come back up. [ toilet flushes ]
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din the swamp. [applause] john: president-elect trump says he is uniquely qualified to drain the swamp and washington's cronyism because he understands how it works. other politicians promise to change the culture that once they get to d.c. they decide they like it. >> they got to washington and something happened. i promise it's not going to happen to me. john: i want to believe it but even if he's an utterly principled man do you believe that? but assuming he is, it's tough for anyone to constantly say no to people. if you are politician people ask you for money all day. i need a grant for my charity.
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we do so much good. my business needs a subsidy. we employ lots of people. we don't want to fire them. almost no one bothers to go to washington to answer spending cuts. the congressional hearings, 99% of the testimonies from people who want more stuff. these insurance company lobbies want more government guaranteed flood insurance. her career may depend on lobbyists. our care roe wasn't allowed into here that talk. maybe that congressman made a mistake by meeting with lobbyists because this election she lost her seat to another republican in the primary candidate who promises on his web site elected officials need to have courage to say no to special interests and to lobby for subsidies. really? people will vote for that?
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may be the crony culture is changing and maybe donald trump will change things. but i doubt it is even the worst parts of the swamp like dodd-frank and the consumer financial protection board have a constituency scads of lobbyists who make money off of those laws. they will fight tooth and nail to keep them. solyndra got half a billion dollars from president obama. with government handing out subsidies like that is well worth it for companies to invest in lobbyists and fixers who dive into the swamp but for taxpayers it only cost each of us a couple of bucks. to then go to washington to bonk your congressman a few bucks? probably not. >> i guess this is just another lost cause. john: draining the swamp may be a lost cause. thomas jefferson said as the natural progress of things for liberty to yield and government
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to grow. i want to believe donald trump rally says this. >> drain the swamp. john: draining that swamp means killing things like the abrams tank. there are more than 500 subcontractors based in lots of states who are helping to build the tanks and dozens of senators and congressmen who will fight for their constituents. likewise draining the swamp means killing dodd-frank and obamacare. will they kill these? every word in here has a special friend, a lobbyist for 20 of them who will defend it, who will fight hard to make sure everything in here stays the same. good luck getting rid of this mr. president. i hope you will succeed. but i won't bet on it. that's our show.
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