too expensive and they moving to the suburbs. more space, less expense. a big hit to the all-american suburb. hot dogs, cheeseburgers and all the rest. >> thank you dan. that is it for this week. thank you to my panel and all of you for watching. i am paul gigot. we hope to see you here next week. >> bid great numbers this morning thing was 224,000 jobs. those are really unexpectedly good. we had a feather with lower interest rates would be like a rocketship. but we are paying a lot of interest and it is unnecessary. we don't have a fed that knows what they are doing. lou: president trump praising the solid jobs report which easily beat expectations but blasting the fed and raising new questions about whether he could see rate cuts. this is "bulls and bears" think of joining us on david asman page on today -- but first,

let's go one-on-one n-with a white house ecdirector of trade and manufacturing policy and assistant to the president, peter navarro. peter, congratulations first of all. you're the president said the fed really does not know what it's doing. what should the fed be doing? >> us talk about the numbers first. the beautiful numbers. david: they are very nice numbers. >> guess what? construction and manufacturing added up to almost 40,000 of those. and as director of the office of trade manufacturing i just love it when we get more manufacturing jobs.we are up to over half a million new manufacturing jobs since president donald j trump took office and it compares with a loss of almost 100,000 manufacturing jobs in the obama and biden administration. love any factory jobs. the other thing i love, david, [laughter] david: i'm laughing at a

reference to the obama administration. >> back in the campaign when hitler is talking about the deplorable, these are the prime age workers that were sitting at home, out of the workforce, no hope in despair because of the failed policies of obiden. and we have over a million of those folks back into the workforce, just amazing! i take a lot of heart from the numbers but having said that, i do think it is really important for the sfed to lower interest rates. let me explain why.there is three things that go on when the fed hiked the rates. first of all, higher cost on the debt surface. by the way, the fed managed to raise rates just before they were issuing new bonds. which was just a -iself-inflict wound. you know, the second thing that we got is, we got of course, houses, big ticket items like

cars. physically interest rates go up, that discourages that kind of consumption. so that is growth harming but there's also this other thing, david, as you know when we get higher interest rates, our dollar goes up, the value of the dollar goes up and it hurts our exporters. we import more, exasperates a trade deficit shaves point off growth. basically what the fed did was take away from the american people about one half to one full point of vegrowth with precipitous rate hike and the quantitative tightening. they should have lowered interest rates the last time they had a chance. we hope they will do it this time. the biggest reason of course they can do because is zero inflation to worry about. david: thus the point. when you have 335,000 more people coming back -- the point is, we have all these workers coming back into the workforce. for me, that was a very

encouraging sign of jobs numbers today.and that puts more downward pressure on inflation. how much do you think the fed should be lowering interest rates? go for half a point, it is time to do that, there's nothing to worry about here in terms of inflation. skate to where the puck will be. we have to anticipate the higher interest rates hurts us, because of its impact on the housing market, the auto sales market, and exporters, and as part of the trade eamission her we hate to see the fed undo all the good work that folks like bob lighthizer and the president are doing on trade. we negotiate these great trade deals, we get people coming and responded to that with tariffs and then we get ngthe fed basically push up the value of dollar and suppressing the

exports. so we can't fight the fed, okay? we do not want to be fighting the fed, help us out here, do the right thing.david: let me bring up trade because we have these new demands by china and all tariffs have to be removed before you reach a trade deal, your response? >> okay, negotiations 101 with china. this is probably the most important thing that you can have as a take away today. we started negotiations immediately after bilateral -- this week we are negotiating, robert lighthizer, the best tr in the world ever is personally engaged with the top levels of the chinese. here's my recommendation, do not believe nanything you read in either the united states and the chinese press until after the negotiation is concluded. >> even when they quote - chinese officials. >> absolutely. my experience coming out of buenos aires argentina december

1, 2018 will restart negotiations, i swatched five months of spend coming not just in the chinese but american side where multinational people eswere putting spinach and mitigating all kinds of bad stories, and the fake news, my recommendation is as investors, here's what you got to know. we are engaged in good faith, deep negotiations with the chinese, just be patient in the meantime if you are looking for the next leg up, on this market, we will hit 30,000 if we get to things. fed rate cut and passage this summer united states mexico canada agreement which will get us over a point in gdp growth over half a million jobs 75,000 of those jobs in the auto sector and really in north

america which will be manufacturing powerhouse. david: let me be clear on this you say even without the china deal just the us mexico canada deal and the rate cut will be enough to bring us up to 30,000. >> absolutely. as you know david, or maybe don't. i have some credibility on this. the day after donald j trump was erected, i get on television on another network, forgive me for that. and predicted dow 25,000 based on tax cuts, deregulation, cheap energy and a level trade playing field. president trump delivered on all four of those things. we got down 25,000, the next leg up we got to get this usmca passage. let's get it done e is tape focused on that. david: before we leave china, are there any, he put the knicks on the idea that this you have to take off all the

tires before we negotiate. is any precondition from u thei side for a trade deal? >> no, not that i'm aware of. very frank discussions, you can see the warm personal chemistry between president and our president, we have frank discussions and coming out of that meeting, negotiations started immediately. the chief negotiator on the chinese side was sitting next to president xi jinping. robert lighthizer a couple of chairs with. as soon as that was over they engaged. >> is no doubt particularly because the economy is going down and their problems, i have to ask you one question and i promise some soybean farmers and people that work with them i would ask you, if i had a chance, farmers in the other states have $21 billion in exports around the world, the soybean farmers. a letter that goes to china. they worried about losing the market share to the brazilians

because of the tariffs, that the chinese are putting on our soybeans. what do you tell the farmers who want that market share back that they have lost? >> the president has their back as you know, sonny perdue is providing some assistance at osaka and president trump stood up for the farmers, the president xi jinping made a comment that the president was on the side of the former. they made a promise we will see if they keep the promise. in dothe meantime soybeans are important. let's see what happens but john j trump had the back of american farmers. david: brazil now has 52 percent of the chinese market. we have 31 percent. do you think we can reverse those numbers if we get a deal? >> of course, let's see what happens. i think that what's important now is to let the discussions happen behind closed doors, was there done it will be full transparency but in the

meantime let's stay focused on the prize. remember david, what we are fighting for. you would agree with me i think every single panel would agree with the statement, where to stop china from doing the following cyber intrusion into our networks, forced technology transfer, intellectual property theft, dumping unfairly subsidized products into our markets. state owned enterprises conducting unfair trade, currency rlmanipulation and dumping opioids particularly fentanyl into united states. hope everybody on the panel will embrace that we need to stop the chinese -- david: the question peter is whether you can verify that they will do those things. it's a verification that is the tricky part.isn't it? >> part of my task and mission in his whole effort is to ensure both monitoring and enforcement of whatever deal that heis made. and we have strong enforcement mechanisms on the table but is

thjust as important to be able monitor whether the chinese are in fact stealing our intellectual property or forcing technology transfer. we are on the case, president donald j trump is on the case, this is high-stakes poker but it is gratifying to know that capitol hill, both sides of the aisle are totally behind us. a recent poll came out showed that eight out of 10 republican support the china tariffs and 53 percent of americans support the tariffs because those tariffs right now our insurance policy to keep the negotiations going in good faith. and there defensive measure against economic aggression, china has been engaged in some 15 years since they joined the wto and both george w. bush and barack obama and joe biden let all that happen. donald trump is standing up for america. david: let me just ask.

i believe what caused the chinese to pull away from talks last time was this question a verification, is there a way that we can specifically nail them down and verifying they're not doing harm they have been doing in terms of intellectual property? >> is not clear to me why they backed away. the history of this is clear. we had more than 150 page detailed document that had been a shoe word by word by word. seven chapters that correspond roughly to those structural issues i referenced earlier such as intellectual property theft and forced technology transfer. at one point they came back to us with a microsoft word document that was heavily redlined and effectively wiped out the entire agreement. not clear why but what's good now is we are back on track and were using it as a starting point for moving forward. so again, david, was important for investors is in the short

run, let's see what the fed does. let's see what we get with us-mexico canada agreement, that is next. trust robert lighthizer, as the chief negotiator working closely with president trump on this. and let's see what happens. in the meantime, things, we are in a good place now and a lot of ways and today's job numbers i think speak to that. this is an amazing economy. and incredible stock market. let's keep writing the goldilocks market. david: is been a great week celebrating the the 4th of july, happy independence to you peter. thank you very much. >> take care, david. david: after a quick break, there were panel here something that peter navarro said that gives themhope for the markets on monday? details of that coming up . hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job.

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♪all around the world, we are one♪ we are one♪ ♪so where did we all go wrong?♪ ♪woo ♪where did we all, where did we all go wrong?♪ ♪love, love, love, love ♪love, love, love >> do not believe anything you

read in the united states and chinese press until after negotiations concluded. >> even when they quote - chinese officials. >> absolutely. as investors, here is what you got to know we are engaged in good faith, deep negotiations with the chinese, just be patient. david: that is peter navarro moments ago. did he just tell us something, anything that would give investors hope on monday? carol? >> no. [laughter] i think he gave us a lot of optimism and obviously there is still very engaged in a deal but the keyword, patience. this is going to take a long time and things worthwhile. the closer you get to the 2020 election given that china has sort of an infinite timeframe and we have a presidential election coming up in 2020 i think it will be harder to strike a deal. remain patient but i wouldn't

get my patients up for monday. >> i heard, let's bounce a little doublespeak. on one hand, peter navarro criticizes china for manipulating the currency. then dhe says we should lower interest rates why? to drive the value of the dow lower and help our exporters. he will stimulate our currency there.peter navarro and the president look, they are central planners, they want to decide what the registry should be, who expert to, what kind of tariffs you should pay. and though he kept saying people should be patient with the tariffs, farmers should be patient, to having impact 22+ billion dollars in americans they paid as much of farmers have been completely decimated and i'm sorry but prices have gone up, people who got a grill this fourth of july paid about 10 percent more s.because of th steel tariffs, it is everyday americans, not china as they often say, paying the cost. >> i completely agree. we've seen record job numbers,

we've seen a rise in wages. everything is going well, tax cuts, deregulation, president trump did not need lower interest rates to get the market to record territory. he does not need it to get to 30,000. the last thing the president needs is someone to say you know, if years from now that the president needed help from the fed to boost and sustain the economy. that is not going to work well for president trump. david: we so what happened when the fed was raising rates a little too much in december. i mean we came very close to a downward spin in the economy. >> yes, all the crisis in the markets late last year was because rates were going up. i mean they were initially going up for pretty good reasons. i want to say as much because i'm a logistic person, i think rates should be low, lower than now. they did not raise to five percent like they were past recessions and avoid a serious

recession. as more just in the part with peter navarro where the government is so in debt we need rates to be lower. we should actually err on the side of low rates. because we should not afford this at five percent for we are not going to do e'what germany does which is keep a balanced budget, raise taxes, cut spending. that will not happen. there is no political will for a -- we need a strong economy. [multiple speakers] >> these are question will things were getting into right now but the reality of it is, the non-central planned we get out of the deficit, debt situation, the economy strong we also have a war. >> i'm saying, there's no such thing as a free lunch. look at japan, 20+ years of these ultra low interest rates and economy. we do not learn from history, even peter neuro has not learn.

they cost jobs, because gdp the cost economy. once again were making the same lessons on government intervention -- david: have to step in carol and throat to you. do you really think the president is more of a central planner than the last president was?i mean this is the president who has pulled the government out of so many areas in which the economy was overregulated. he is doing the opposite of central planning with regard to deregulation. no? >> i certainly agree with you on that particular standpoint but if you think about the point he's trying thto dictate what the fed should do and what he's doing tariffs, then we do need to do something with china, obviously the spending issue, i would have loved to see donald trump cut spending and balance a budget. those are the kind of things i think people are wanting to see him do. i don't think he is the same level of central planner that obama is but he is not doing enough things that i think people would like to see. david: we have to wrap that.

2020 candidate joe biden making his case for illegals getting free healthcare. does he have a point? will ask republican congressman, andy biggs, next. thanks for the ride-along, captain! i've never been in one of these before, even though geico has been- ohhh. ooh ohh here we go, here we go. you got cut off there, what were you saying? oooo. oh no no. maybe that geico has been proudly serving the military for over 75 years? is that what you wanted to say? mhmmm. i have to say, you seemed a lot chattier on tv. geico. proudly serving the military for over 75 years. you ok back there, buddy?

we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. >> i think undocumented people

need to have a means by which they can be covered when they are sick. and so the idea is that's what i think we should be doing by building more clinics in the country. not just undocumented for people. when they are ill, sick, people need -- this is just common

decency. in an emergency they should have healthcare, everyone should. everyone in the country. how do you say that you are undocumented i'm going to let you die man? david: 2020 presidential candidate joe biden talking about healthcare. and remember on the debate stage member all the candidates raise their hand and supported as per the spring republican councilman andy biggs. we heard from the vice president saying that you know, in an emergency, everybody needs emergency care whether they are legal or illegal. but on emergency rooms already required by law to treat the very sick? >> absolutely peered under rules, and when it works under emergency room will be treated whether they can pay or not pay. the problem that you have with that of course, is there really record only to stabilize you if you go to the er but the er and hospital systems now are eating all of the costs and their passing on to everyone else which is why you see insurance cost got medical care costs go

up because they do not just treat them and stabilize, they are now doing test because a concern about liability. so yes, we already do that. so it is kind of you know -- is a political statement by mr. biden, that's for sure. >> ,,this is carol, seems to be completely outrageous. i may not have a problem with paying for other citizens healthcare out of my own pocket. let alone someone in the orcountry illegally, has broken law, is in the exact bad behavior rewarding this kind of behavior that is causing more and more people to try and come into the country and wouldn't putting a stem on his help reduce the crisis were currently facing? >> you are exactly right. what's happening is, incentives drive people. this is an economic show so you will get this. incentives drive people. when you have free healthcare, you see more and more people come across, there's no deterrent and you will just perpetuate the problem. but the other issue, you really

don't know how many people in the country could be 12 many here illegally, they could be 20 million. they would all come on to our healthcare and health insurance rules, think about the cost that would be and expense to medical care system which is already taxed right now even though we are still operating under the cobama care system. it is an incentive etto come across we should be deterring people from entering illegally. >> and the 20th century, immigrants came you know let their families -- left their families knowing that they would never see them again, no healthcare no benefits no entitlement. they came for freedom, that is all they need. ultimately joe biden said he believes the undocumented immigrants have a right healthcare you said you do not but let me ask you, sir, does anyone have a right healthcare in america? was it sounds like a hamburger lthat everyone should every economy purchase by themselves?

>> my own opinion is that we all have the right healthcare if we pay for it. that's why thing happens, like your hamburger. i can buy the hamburger or sushi if i want. we get choices and i think we get to make those choices and it comes with some responsibility. this notion that every person needs to have free healthcare is something that is truly un-american in my opinion. i get to provide healthcare and you know what? america is so great and is so full of charitable people that if we have folks that cannot afford to pay for traumatic illnesses, you will see people respond and take up the need to pay for the cost. >> congressman, i would like to pivot if i can. alexandria ocasio-cortez blasting border patrol over an offensive facebook group. the congressman tweeting out a report from political -- she said when they know about secret facebook groups with up to 10,000 cbp officers the

hills they just learned about appeal looks like cbp lied, report shows the new about it for years. what you make of this? >> well, if she is indicating that 10,000 people are on those facebook sites ranting with racist and hateful comments, she is just wrong. she is just flat out wrong. this is the same lady that wants and supports open borders the same congressman who supports eliminating i.c.e. and she is totally biased. my guess is that if you have 17,000 agents and personnel, you will have several dozen, maybe a few hundred even, that are bad eggs that need to be disciplined and reprimanded. the city of 10,000 people, that is just flat out wrong. >> in essence aoc is the de facto speaker. we can all agree and i could

hardly hold her accountable? she's making claims about the facebook group page that is private, she is also saying the border patrol is having you know, they were making them drink of toilets and all these claims, how do we hold her accountable? >> well, we have to keep proving her wrong. it was some point her credibility will just be shot. but i am afraid that she is the de facto speaker. so nancy pelosi is beholden to her, rashida tlaib and ilhan omar because they give her the votes over the top so close to being speak appear to hold her accountable for this normally, you would see the speaker publicly, were not the say shaming but t pointing out that there are some flaws you would see as is a split there be some potential repercussions from the speaker but you will not

see that. >> congressman, we have to leave it at that. thank you for being with us. we appreciate it. >> thanks for having me. david: the trump administration considering a new way to get the citizenship question on the census. but will it work? we will debate that coming up. r, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually. >> was full of chaos over the

census, the justice department still exploring options to add a recitizenship question to the 2020 census. this is president trump using the executive order to get things done, edward lawrence

has the very latest. >> the administration will use new legal language and new legal tact to go forward to try and get the citizenship question on the census. the justice department lawyers did not lay out exactly their entire strategy but made it clear that this legal battle is not over. the u.s. supreme court basically saying the government is not adequately have a good explanation for why the question needs to be on the census. present donald trump feel so strongly that there should be there that he may take matters into his own hands. >> we'll see what happens, we can also add an addition suka start that now and maybe doing an addendum after get a positive decision. we are working on a lot of things including an executive order. s>> executive order to basicall restart the legal process. some on the campaign trusted they believe it's hard to directly immigration at the united states should be welcoming come in a place that

divides a space noncitizen or noncitizen. the present saying this is a basic question, he says the census gathers all because of personal information, why not ask if you are an actual citizen? the president says at the end of the legal process, if he wins the challenges, congress department ocould add an addendum to the census form. those forms are already in the process of being printed out here according to the commerce department. but without the citizenship question on the census. back to you. david: thank you. jonas, how important is this kerfuffle over a question? >> look at the last segment we did, president obiden almost said. [laughter] -- we will not know how many illegal immigrants are, how would you know what the cost -- not to mention other countries do not even do that.

canada, germany, you have to be citizen there's emergency cages go see doctors and get blood pressure test and that is just ridiculous. back to this question, i cannot speak to legal path and the supreme court. i know our government needs and is an embarrassment that this is still how oit's done. this my main problem. it won't work doing this or let's pretend is legal to ask because i think the government needs to know. 10 years, facebook knows if i am buying ladies underwear every five seconds. [laughter] >> how often are you buying ladies underwear? >> other countries, they do this, can we just buy the data from facebook and instagram? it's ridiculous! >> you know what, i really do not know what the intent is to find out what the intent of the federal government to ask a question that is legitimate. i edo not really understand. the democrats will push back, why? because they don't want the question to be asked because you know what? they want to continue to siphon off tax dollars from the

federal government to subsidize. a lot of things that, services a lot of the illegal migrants are utilizing while at the same time, saying that they contribute to the society. you know it's -- >> there is a real purpose! i'm sorry please. >> i just want to know how often jonas is buying ladies underwear. >> move on. w[multiple speakers] >> putting aside, i'm a recovering investment banker. there is something we do data analysis called garbage in and garbage out. if you don't have the right data going and you cannot do data analysis. ask every other question that quote - unquote divides us up by race, income, by everything else.eo we absently have to have this data to know who is in our country. i cannot fundamentally understand why anybody would not want to have that data. >> no answer question so it's stupid to put it anyway, right? >> by the way, there is

something -- >> briefly, david, there's a very real concern people will not teither answer. we need to know how we people in the country. it is the purpose of the census but there is a very real risk that when asked if someone is a citizen or not they will not answer the question because they are think rightfully fearful that i.c.e. agents will show up with batons and put them on a train. david: dean who said that this was -- chief justice roberts. he said and i'm courting, the decision was reasonable and reasonably explained, particularly in light of the long history of the citizenship question on the census. but then, he got into motivation what was the motivation of wilbur ross asking for it? that's where the question came in it will be a big mess. we have to leave it at that, folks. i'm sure we will talk about again. meanwhile facebook taking aim at fake news but wait until you hear who is actually getting hurt by the new rules. we will break it down next. hey, that baker lady's on tv again.

she's not a baker. she wears that apron to sell insurance. nobody knows why. she's the progressive insurance lady. they cover pets if your owner gets into a car accident. covers us with what? you got me. [ scoffs ] she's an insurance lady. and i suppose this baker sells insurance, too? progressive protects your pets like you do. you can see "the secret life of pets 2" only in theaters. david: facebook new algorithm

used to crackdown on fake political ads is having an unintended side effect, small businesses are saying some of the pinonpolitical ads are getting sucked into these o algorithms and spit back out. the new system blocks ads that focus on social issues, elections or politics unless the original posters have a long process and her u.s. resident. however issue for companies that facebook is blocking ads that may reference political topics l,without endorsing them carol, are you laughing because you were sucked into this vortex, right? this exact same thing happened to me. i have a podcast, i was interviewing an author, new york times best-selling author and political thriller i wanted to run an ad, have a verified page and they said we cannot do this because i'm not authorized but it is political content or some sort of social issue content. it was about his book.so i

appealed it and they would not do anything and it just goes to show you that slippery slope that we are on when you okrandomly apply standards to people instead of going with free speech. >> but look, these companies are really public enemy number one, the esocial media companies, it's a nuclear was in the 80s, farm in the 90s, oil in the 2000. this is big tech right now, social media. everyone is out to get them. not only the truly malevolent actors like foreign governments or i don't know, the alex jones of the world but particularly the regulators, they are the ones that are the biggest threats to the companies. i'm sorry this happened to you or any legitimate business but with the private companies work it out, let the competitors come out and offer similar services. it>> you might not be so -- whe you hear my story. it is worth noting that this is not just political stuff. they use ai to go through the ads of all small businesses. if you are nike doing $100,000 a week and under they will talk and it will be great.

but if you're doing laundry ads, that is your business they have morality from ai. [laughter] they will not let you run ads. in the old days you can run ad like that in the new york times, it is not adult entertainment. they stop a small business from growing and you do not speak to real people you get the ai kick you out. that's where the jobs report was good but not great for small businesses. it's getting hard to compete with these large businesses. >> just i think there's nothing worse than government regulation, it is big tech regulation. look, i'm already worn out from fighting the good fight, the fight against progressive humans.now i have to fight against progressive artificial intelligence? i cannot take it anymore! [laughter]

>> jonathan and nate are simply for carol but on the other hand, they're trying to get talgorithms, machines to make judgment calls.ex and when you least admit that there is a big problem when you do that? >> david, they have a billion standards. they have to set just like for example, a restaurant does not want potentially disorderly people to come into the restaurant. but look, there are some people to get in effect, loss only but is not carol was private from being on the site or even posting. >> i have to wrap it. >> listen, i do not want this to be regulated but as users and shareholders, they need to be held accountable and look to see them have a better standard closer to free speech. >> if a small business cannot compete in free speech with large companies it will be a monopoly.>> the with a major announcement on drug prices. everything you need to know. ♪

all right brad, once again i have revolutionized the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know? studying my playbook? yeah, actually.

hey! i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. david: the trump administration

preparing an executive order for drug prices called the quote - favored nations clause. had the president talking about which aims to have u.s. patients pay no more than other countries. listen.>> talk about drug pricing we will be announcing something very shortly. a clause as you know for years and years, other nations paid less for drugs than we do. sometimes by 60 or 70 percent. we are going to be and we are working on it right now. we are working on a clause where we pay whatever the lowest nations price is. why should other nations like canada or wash other nations paid much less than us?

they are taking advantage of the system for a long time. david: john, will this work? >> you know, i applaud the president for taking a strong stance on lowering drug cost and really trying to reduce the huge burden that a lot of the drug companies put on you know those that are sick but you know, i don't know if this will work. you look at the global landscape a lot of the companies don't have the wealth that we have and i'm really concerned that the odrug companies will begin to scale back. possibly an alternative is really to streamline the drug approval process. that's where a lot of bureaucracy and a lot of capitol of the pharmaceutical companies go to make sure they are complying with the over burdensome %regulations. >> the thing is a great point. and it costs what, $1.2 billion to ring a drug to market only 12 percent of the drugs proposed actually get to market. but david had to say i think

this is essentially beating around the bush. it is missing the real issue of why drug prices are so much -- because government is who pays for them. the government pays 50 percent of healthcare, it pays for 40 percent of all pharmaceuticals, from basically nothing before the 1960s and that is what continues to raise the cost of pharmaceuticals, the healthcare while something like an iphone continues to go down in price. if you want to see drugs and you want to see healthcare become reformed, more accessible, or available, three words, get government out. >> okay, physical government grants them a 20 monopoly to charge whatever they want for a drug, that is a big proponent of it. drugs are not like cars you have to make them, they're basically free once you go through the process. then you want to price it would every market will bear and some countries will pay a 10 day what will pay and that's with the right prices it cannot be our price, where a rich ass

country. the other problem is another country the government decrees what the price will be. like in part b we are not allowed to put the price because it will be less innovation but i must wait to see how democrats will say it's a bad thing how republicans will say it's a good thing because they are so much more left than even medicare negotiated drug prices, i cannot believe that. >> part of the issue, jonathan start to touch upon it, we just don't have a free market in healthcare, it is so convoluted is not transparent at all. we talked about the government side, on the private side part of the reason why everything so expensive, we have these middlemen, pharmacy benefit managers that are in the middle of a transaction decide who gets coverage in which drugs get covered and we wouldn't need that if we had a truly free and transparent market.i think we need to move more in that direction because the whole discussion about insurance comes down to the fact the healthcare and drugs are expensive. if it was not expensive because the market brings competition to bear, we wouldn't be having

this discussion. >> you cannot ignore the government aspect to all this is john vincent. meanwhile stay strong brutal lovers. why some foodies are freaking out over regional shortages of an item many say they actually cannot live without. could your area be affected? details you don't want to miss, coming up. th accident forgivenes they guarantee your rates won't go up just because of an accident. smart kid. indeed. are you in good hands? david: okay everybody you may

want to sit down for this folks. taco tuesdays could be in jeopardy! [laughter] taco bell which has about 7000 locations in the united states, says it is facing a tortilla shortage at some locations across the country.the mexican fast food chains is a shortages due to a supplier issue but it has not said exactly how many restaurants are being impacted. carol, can you survive the week without a taco tuesday? >> i'm not sure leg is a big

crisis, we talk about a lot of them this is epic proportions because i absolutely love taco bell but i guess the burrito is half full versus happy and because it could be worse. it is perhaps a supplier issue, something like salmonella that has affected other mexican chains i will not name. ali think if you're going to ha a crisis that this is the best crisis possible. >> there's a wonderful libertarian story called i-pencil about all the factors that come together to make a pencil. this her mother that put all the elements that come from the farmers, the truckers, the salespeople and servers that come together to make that burrito were whatever the heck it is. this is a supply chain issue. i will briefly say i think goes backto what we were talking about with peter navarro . >> you are too serious on this one! >> i will say first of all, you will be sitting down anyway to eat a taco at taco bell. >> john? >> i thought the higher prices of avocados and all the other

produce would get to them first you know what? but at least there is something worse than climate change that we can talk about. david: owby the way, good news think the company that carol did not want to mention, chipotle, it has all tortillas that you need. you can always go there. that does it for bulls and bears. we will see you next time. number of arrowheads. >> do you think it's worth $1 million? >> or does that miss the point? >> he said, "i think you'll do the right thing, and share it with the people." >> can the heir fulfill that final request... >> i didn't have the money. >> oh, that's an issue. >> but i had a plan. >> ...with one wacky angle? [ door creaks ] [ wind howls ] [ thunder rumbles ] [ bird caws ] ♪