gregg: gordon chang, always great to talk to you. happy new year. hat in the most ofeaceful and facetious way. kennedy: will the economy keep craning in 2018? gallup has its most admired men and women of the year. we have the craziest moments on campus. grab your backpack because class is in session. from improved retail economic numbers and dropping unemployment. iunemployment. with rising wages, that means more people with more money.

wall street has had a stellar year. while skeptics warn there could be a series of bubbles, analysts say investing in the market is a solid strategy. although the hype may not be quite as bright for 2018, the big worry is creating personal bubbles and getting caught up in a wave of optimism. 50% of americans have less than $1,000 in their savings account. it's wise to save in case that rainy day turns into a monsoon. if we go to war with north korea it could create the uncertainty that wise away speculative and theoretical wealth. so maybe cool it on the yacht full of hookers until you have a 6-month cushion. there is nothing sexier than

financial security. so hopefully 2018 grows your nuts and your net worth and the on bubbles in the new year are the ones in your champagne. let's get this party started. i'm kennedy. there is no question the u.s. economy has momentum. and what can we do to keep the economy chug. joining me former reagan economic advisor and founder, art laffer. welcome back to the show. >> i love that hot rock massage. it sound wonderful. kennedy: it's very luxurious. let's talk about some of these

wall street numbers. and whether you expect the market to keep ticking upward. >> i think the market will keep ticking up. we have the tax cut coming and the corporate tax cut which is one of the most of powerful stimulants to the real economy. kennedy: i agree with you completely and i think it's the most of important part of the tax cut package. but explain from an economist's perspective to civilians like myself. how does that work and how do corporate thanks cuts translate to economic growth? >> at 35% you get to keep 65% of your revenues as profits. at 21%, you get to keep 79%. and companies always respond to that by investing more, by bringing companies back to the u.s. and for sheltering tax income

less. they won't hire all those lawyers and accountants. and for a few people out there it means less tax evasion as well. all of these things work very, very well. we'll get the revenues. believe me when i tell you the expansion in the economy as well as lack of evasion will get the tax revenues and we'll have economic growth. you can't get it better than that. kennedy: we'll get it better if the government cuts spending. that would be fantastic for americans. so what can the president do? i know every president likes to take credit when wall street is going in the bullish direction. but in what other ways can the president directly affect the economy? >> he can do it with executive orders and changing regulations. we still have a ways to go on obamacare.

there are lots of things he can do. i appointed a new fed chairman. he has a vice chairman he's going to appoint. isis is defeated. there are lots of additional things to be done. but don't underestimate how much he has already common this economy. kennedy: what talk about regulations. i was saying to a family member when you cut regulations, you allow small businesses to grow. there have been so many regulations piled on. how does deregulating help? >> it's like a tax except the government doesn't collect any money from regulations. you allow people to keep more of their after-tax income. don't for a moment think that a lot of these regulations aren't good. there are a lot of them. however, there are a lot of

regulations just put in there just to get in the way of the private sector not allowing them to do their jobs which is to make money and provide goods and services for the rest of us. >> make money with lower taxes. kennedy: my heart is a racing with joy. let's move on to joy boy roy, roy moore, the political gift that keeps on giving. if the failed alabama senate candidate and accused child predator filed a lawsuit to prevent the state from certifying the election results. but today the state certified the election results. he lost by 22,000 votes. but moore claims there was widespread voter fraud, despite any evidence to support it. and he's demanding a new election.

and i think hillary is as well. nine women accused roy moore of sexually harassing them when they were teenagers and he was in his 30s. why is he refusing to concede? let me ask my party panel. katie pavlich is here. and one of my favorites, reason "reason" magazine editor matt welch. welcome, everyone. so much fun. so, lisa, why did roy moore refuse to con creadt? is there some legitimacy to his gripe or is he just nuts? >> i don't think this is helping his case that he knows when no means no. so many people who did support

him on a national level are saying i supported burke first. kennedy: he said there is so much fraud in alabama. people who study fraud, looked at it. >> it's amazing to watch the quality of the legal analysis in his brief. part of it was i passed lie detector test. we know that has a lot to do with voting integrity. whether you passed a lie detector test. kennedy: did they ask about voting integrity? he said out of state voters were voting. matt: roy moore is like the voting troll.

this election fraud fantasy. donald trump still says and it's not re:fewed. that 3 to 5 million people -- kennedy: i worked in polling places in los angeles county. and you have to go in and get a provisional ballot without a driver's license. but the county still has to vet the provisional ballots. matt: the vice chair of trump's lousy electoral reform commission chris kovak from kansas. he found 9 cases of fraud. >> it's 9 more than none. >> i disagree. there have been studies done by the university of maryland and harvard showing there are legitimate concerns in maryland and illegal aliens voting it, a

different story than the alabama race. kennedy: wownlts be disappointed if he conceded? katie: i would. it's time to concede. he lost the race. 23,000 write-in votes. maybe they should study those and figure out why he couldn't get those votes. kennedy: because they weren't for him? it's so sad. lucky for us, gallup is out with the annual poll of the most of admired men southern women. this year's wish. former president obama. most of admired man. followed by donald trump, and the pope. how mad is donald trump trite now. talk about voter fraud. that thing was rigged.

as for women. hillary clinton topped the list for the 16th straight list followed by michelle obama and oprah winfrey. they are good friends. who should have penalty the top of this list. >> it gave me hope to see tied with hillary and obama was a person i know or i'm related to that it also like, like a non-famous person. but i think there is all this pressure, hillary always smart woman and obama is a smart man and historic. people just think this is the person i'm supposed to admire. kennedy: my question is who is answering if the phone? matt: i think it's more the person you know. if they ask house the least admired person, hillary will make number one on that list. kennedy: he tops the list.

matt require's pathetic. there are too many politicians. the people more truly heroic in this world are not the ones who figure out how to best spend our confiscated tax dollars. kennedy: it's been a crazy year. for might hasn't bean threatdown. there has been so much forward and insanity. when you are able to sit back and poke fun at and analyze what's going on, it's a gift that keeps giving. do you think president obama wins by default? katie: he was given the nobel peace prize before he was in office. i don't understand the discrepancy between hillary clinton's approval ratings being 33-35% but she is the most of admired woman?

what is the definition of admired? my choice would have been someone maybe not the most of admired. but someone i admire is chief staff john kelly because his son gave his life for the country and he spend his life dedicated for the country. i think he's able to present himself and the military in a positive way. kennedy: who is at the top 6r of your list? mats * conrad lewis. he's an engineer from canada. his sister is blinds. he created a thing called e-sight. he is giving people the ability to see. kennedy: you can put anyone in. >> i would put terry stafford on

here. and he has practical advice for saving your life. and he's very funny and he helps many veterans charities, being a man of action himself. kennedy: i would put john mccain. though i disagree with him politically sometimes. his grace and dmowrnlg this battle he's fighting is brave and heroic. and it's inspiring. i pad mire you, senator mccain. first up, republicans are the grand old party. the democratic leaders are just plain old. one former democratic presidential candidate admits it's time for new blood on the left. i'll ask richard fowler whose blood he would like to d

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kennedy: democrats say they are optimistic about 2018 with hopes of retaking the house and senate. take a look at their leaders, joe biden, nancy pelosi, bernie sanders, hillary clinton. they are all quite geriatric. elizabeth warren is only 68. today on msnbc howard dean said his party should not be hanging its future hopes on that group of geezers. >> i think my generation has to get the hell out of politics and start coaching and moving up this next generation. kennedy: that's howard dean who will be forever ridiculed for his insane iowan scream in 2004

is finally making sense. let me bring in richard fowler. howard dean wants to scrap the lot of septembe sept gerks neri. >> i think he's right the party has to become younger and focus on the issues of the day. kennedy: i think that's more important than age. if you want to replace some ripened experienced prune with fresh blood. >> the issue of the day is important. the first transgender woman to be elected to the statehouse.

she ran on the traffic is awful. the republican who had that seat didn't do anything about that seat the 30 years he was there. and she won overwhelmingly. kennedy: if you say traffic long of any you want to change your gender and your name and pull your hair out. that's what democrats are going to have to do. you saw that inv and the alabama race when you ran a candidate who understood the state of alabama. kennedy: dent talk about how virtuous doug jones is. they voted for him because it's not an alleged child molester. doug jones is weird. that's not a well weather for anything. -- that's not a bellwether for anything. >> african-americans turned out in record number in that race. more so than they did for barack

obama. kennedy: maybe it's because roy moore said ridiculous things about slavery and the constitution. >> but the larger point i'm making is this. kennedy: i think it has more to do with charles barkley. >> he spoke to the problems of the democratic party. we need to run candidates that understand the districts they are from and can work for their districts. we have got to understand the district, we want people to understand the district. >> and run on local issues. >> that's republicans and democrats. i think howard dean talks about how elizabeth warren and joe biden and bernie sanders, how they are all old.

but they have run out of ideas. there is nothing nancy pelosi is going to say to move the democratic agenda forward. all she do is hold out her hand and ask for more money. >> in that group of names there is one name. that name is joe biden. i any joe biden understands. he understands the plight of the working man. he's from scranton, pennsylvania. kennedy: more than populist bernie sanders? >> i think joe biden is the working man. i think it was how he treated our former colleague on "the view." that exchange speaks to why he would be. >> good candidate. kennedy: she said the first

person they called to talk about his son. you can't have it both ways. >> i think what you are starting to see is candidates like danica rome. and justin fairfax. but you are starting to see young candidates come out of nowhere and win these races because they understand the issues. they work hard and they are having real conversation with the voters and not depending on the democratic establishment. kennedy: you know why i think howard dean is so scared of old people in because young people who will be voting in the future hate the two-party system.

they don't care who you say they should vote for because they are a democrat. >> i think one of the biggest problems the democratic party has, we have to change how we do business. we have to make sure the old folks with all the consulting contracts not get the consulting contracts. we have to try new ideas. we have the have a new way of thinking. and if we really -- >> you want susan collins? richard fowler, thanks so much. i will see richard on new year's eve. >> it will be a good show. you should tune in. kennedy: will donald trump put an end to the nuclear deal in 2018. next.

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ah, you know what i mean. kennedy: north korea ramping up chemical weapons in addition to its nuclear arsenal? the north korean soldier who defected had antibodies in his system consistent with anthrax expose our. >> isn't this a great way toned the year. just you and me and the four horsemen of the apocalypse. kennedy: i hate to talk about positive, uplifting news. so why are anthrax antibodies particularly troubling when we have known north korea has had

biological weapons for some time. >> they are probably profiting from the collapse of the soviet union. there are a lot of scientists probably look for work. he was either inoculated against them because he was guarding a germ warfare facility or he was work on it and built up anti-bodies. anthrax is not as dramatic as smallpox or playing. anthrax bacteria can go dormant and come back to life later. kennedy: that sucks. >> it does. how do you weaponnize it? you can create germs and various diseases. but to put them on a missile war head and have them last on

reentry, that's tough. kennedy: you are saying the former soviet union had a robust biological warfare program. do you think there could be a relation between russian scientists and what the north koreans are doing? >> i not on think it, i can virtually guarantee it. there was an island that was lethal, it was dangerous, and we worried about it have much. germ warfare has a long history from catapulting playing victims over the walls of cities in the middle ages. the british army had smallpox, they were throwing blankets and gear on the side of the road,

hoping americans would pick it up. it has gone on literally as long as warfare. but in the modern age there has been a generally accepted taboo. you don't use this stuff. famine, pes, pes perk and warfa. kennedy: and you call me the duchess of doom. >> you are queen of the night. how is that? let me ask you about the iran nuclear deal. the president may scrap it in 2018. it's a bad deal, but we are not the only signatory. >> this is the worst time share agreement in history. kerry and obama cut a terrible deal. they wanted a deal at any cost

and they got a bad bad deal. when we are take on iran, we need allies. the europeans don't want this deal and bro gate. america's word has to be valued. if we just walk away from this deal coldly, the europeans will be very, very miffed at us. put sanctions on iran because of their violations of the missile development program. go after iran in yemen and iraq and syria, in the persian gulf. but let this faulty treaty stand. cripple them in other ways. >> that report this week that president trump helped out hezbollah when they were funneling drugs into this country. it's pretty gross. and we don't have time to get into it which is sad. we'll have to stop for bourbon.

thank you so much. thanks again. happy new year. california is about to go green with bugs and bucks. as of january 1 you will be able to buy recreational marijuana. experts predicting sales will explode. the state's black market for pot, the legal market expected to make $5.1 billion. the consumer price will be determined by the free market. investors and entrepreneurs look to get a piece of the profits. will my fellow californians ends up profiting from this or will they screw it up and sends it up in smoke. you know california policy so well having grown up in the golden state. is it about to turn green with

cash and weed? >> the bad news is the california regulators wants to tax the hell out of this. kennedy: they have been using that phrase for decades. tax the hell out of it. if you make it legal it's okay for the government to take more than their fair share. matt: california has had 20 years of medical marijuana. how many times has l.a. said no more dispensaries. they don't know how to do it. this flourishing market has taken place the last 20 years. there will be a sizable black market for sure. but this is a huge, huge state. and a big, big, victory of freedom from cops. kennedy: is there money to be made or is the market oversaturated? >> they can still drive to

arizona where it didn't pass last year. kennedy: why would you do that. >> for the people who can't afford it in california or didn't get a medical license that seems to be given to everyone. kennedy: so katie, this could be a big boost. there are a lot of people trying to make it legitimate. marijuana transactions have to be done in cash because banks will not accept deposits from dispensaries, growerries. katie: i thought it was already legal in california based on my experience from going there and seeing what's going on. but obviously this is a reaction

to the black market that there is. but on a federal level it will be interesting to see how the federal government reacts to this. these california laws are not the same as the federal government jeff sessions, the attorney general made it clear's not interested in laws like this passing at the say the level. kennedy: if it is a financial success in california the attorney general will have a much harder time. i think you could points out that it's been quite successful in colorado. and ask the governor how he felt about marijuana when it first came to his state. he was have much against it. katieit.kate. katie: republicans and democrats are saying they don't like the results. matt: if you are within 100 miles of the u.s.-mexico bored don't have weed in your car

because the federal authorities can stop you at checkpoints and they aren't going respect california law. kennedy: that's a buffer zone. kennedy: madness on college campuses used to be reserved for the ncaa basketball tournament. look at most of insane college stories in 2017 next. ♪

(news anchor) downtown traffic is still bad. expect massive delays. (news anchor 2) all lanes on highway 50 remain closed at this hour. (news anchor 3) the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts, over the course of the week, to about 10 pounds of carbon dioxide. growth is good, but when it starts impacting our quality of air and quality of life, that's a problem.

so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. or to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic. then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. and sacramento is just the beginning. with advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. what excites me about this technology is that we're using some of the most cutting-edge machine-learning, and ai, to help solve the most fundamental challenges that cities face around the world. who knew asphalt could help save the environment?

(lani) and the possibilities are endless. kennedy: the year is almost over. that doesn't mean in the ridiculousness of college campuses will ends soon. the university of wisconsin madison badgers reintroducing the title county problem of whiteness." the class description says it

will teach students how whiteness is socially constructed and experienced in order of society. cabot phillips. hit's start with the number of five most of ridiculous campus story. >> university of georgia. kids are stressed stop college campuses. a professor is offering a stress reduction policy where students can choose their own grades if they feel their the grade they got it not representative of their hard work and effort. it didn't work in real world. i twrietd my boss and said here is the salary i deserve and he show it down quickly. kennedy: let's talk about unlv

and what a professor there did. >> after the las vegas shooting she came into class and said this was a direct result of president trump and his policies. she said i was warning everyone tall year that violence would take place because of trump. this is another example of something we saw all year. kennedy: we have video of this professor. take a look. he got elected. i told you other people will die. so far all he has done is encourage violence. kennedy: that's something special. >> there is no policies she was referencing. it's trump's fault.

kennedy: amazing people notice academic bubble. the evergreen state college, students held administrators hostage. >> they wanted to get a professor fired because they have save he wasn't supportive enough of racial inclusion. they stormed the hall of the administration. the president of the school said can i go to the bathroom? they said we'll go with you to the bathroom. kennedy: at millbury college they shot down charles murray and hurt a liberal professor for defending his right to speak. >> i said this events happened. you had one speaker come. what changes were made? what punishment was given to students. the students banders together and said defend these students. they institute a new policy

where every speak more comes top campus has to gets approval. kennedy: milo yiannopoulos caused riots at berkeley. >> nothing said we are going to have a progressive protest like burn your own campus down. this is a perfect case study of antifa. they label everyone as nazi if they don't agree with them. if violence is acceptable it's there will hands tory now if you get everyone agree. kennedy: cabot, thank you so much. coming up, a wiseman once said it's not whether you fall down in life or whether you catch the drone

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kennedy: this year's "topical storm" contained 30 sexual innuendos and 60 references to hillary clinton it's like we tapped bill clinton's phone. we begin tonight in houston, texas. where the cops told a suspect to get down. and he listened. the 20-minute police chase ended like this. there he goes. he tried claiming he wasn't

drunk just like nancy pelosi did after break dancing at the capitol hill christmas party. over 2 million people have watched the drunken dance-off. topic number two. as a responsible parents of two young girls, i have been telling them for years to never bet big money on arm wrestling, foos ball or cycling. beer pong i get. but cycling is too unpredictable because you never know when a drone will fly on the course and up-end your guy. he crashed and burned.

following the incidents police released this video of the drone pilot. yeah. it's the unmanned flight shuffle. he dances just like our cameraman clark. apparently he drives like him, too. clark is a little rickless. topic number three. cat yoga. that became a thing this year. a bunch of single women in their 40s doing yoga. each class features dozen of cats. hi, kitty. sneak into my burlap sack. i'm going to take you for a right. cat walk on students. apparently there is nothing like sweaty not yoga with cat fur.

why do downward dog for 10 minutes when you can do downward lint brush for two hours. but it serves a purpose in these women's lives. it's showing them how to die alone which is wrong to say because for all i know these women could be in fabulous relationships. i better quit making up facts, they will send me to cnn. oh, well, i would make the most of of it, when life gives you lemons, make le moan aid, unless life gives you don lemon, in which case you change the channel. when he's drunk web's don lemon cello. uber executives weren't the only ones robbing drivers. a bicycle bandit hit four cab

drivers his summer and rode off with their cash. police released this video which shows this driver sitting in cross-town gridlock questioning all of his life choices when the bike bandit rides off with the loot. if the driver is sitting there bloody and beaten. some woman with the shopping bag runs over and says, hi, are you open? i just need a ride somewhere. that's my impression of me. the driver lost $108. shortly after the incidents thief ran into bad luck on his get away bike. there he is. there he goes. he asked the question we heard a

lot in 2017. what happened? there you have it. our final hillary reference of the year. i will admit we probably went a little hard on the people's pant suit. but sales of your book went through the roof. so at least you broke one ceiling, huh? topic number five. as the year draws to a close i decided to make some resolutions. i'm willing to quit begging bob new hart for a date. and i'll probably stop reading your dumb mail. and this. barbie ann writes, i turned this woman off for sounding confused and nasty. barbie ann, you are always a

turn-off. have you flooctd mirror. you are probably watching nancy pelosi. trevor notes. libertarians rule, but anarchists have more fun. kennedy: that may be true except for the libertarians ruling part. michael thinks, sometimes i like kennedy, sometimes she can be a bit of a butthead. then there is tyler. you are such a moron. we ended on a high note. we better high with your dumb name that rhymes with higher. the 0 -- the 2018 countdown is on. i'll tell you how i'm welcoming

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kennedy: i love spending new year's eve in times square. i came here when i was in junior high school on a choir trip. this week jesse watters and i will be hosting it's supposed to

dip into the low teens. we'll have mufflers, beanies, and bun warmers so we can withstand the cold. almost half you will be at home sunday night. 40% of americans day home new year's eve. snuggle up with me and jesse so we can ease you into another great year. i always joke about this being the best hour of your day. but you make it mine. from suggestions for "topical storm" to suggestions on stories, i can't thank you enough for your support and humor. and thank you to the very best staff in cable news who make eight joy to come to work even when they make fun of my outfits. thank you so much for watching the show tonight. follow me on twitter and instagram.

email kennedyfbn@foxbusiness.com. i'll see you on the "outnumbered" couch tomorrow noon eastern, 9:00 in the west, and new year' >> an 8-year-old gets a very strange inheritance. >> when my dad died, everyone was heartbroken. >> but what does a boy do with a winery? >> the funniest thing is when i would tell my friends' parents, and they would totally freak out. >> talk about getting your feet wet in a new business. >> drink it. it's grape juice. >> that is really good. >> but how does the family keep it from dying on the vine? >> i didn't know anything about wine except that i like to drink it. >> so what's the heir going to do when he grows up? >> i'm trying to prove that i'm not the owner's kid who just gets handed these things. [ cork pops ] [ door creaks ] [ wind howls ] [ thunder rumbles ] [ bird caws ] ♪