lauren: purple, blue or black. it is dark. >> give us a selection, why don't you. >> dark color. stuart: fair enough. ashley to what heights can giraffes grow? ashley not there. lauren: 18 feet. stuart: 30 seconds left. >> ashley says 13 feet. only 20 seconds. stuart: i lived in east africa. i saw blots lots of giraffe. 18 feet. >> what sound? stuart: that is good one. they make no sound. they grow to 18 feet. time's up for stu. "coast to coast" starts now. ♪. david: ain't that america.

well this america ain't so good. growth is slowing to a snail's pace. majority of voters think the economy is in bad shape, and getting worse. this hour on cavuto "coast to coast" we'll break down what the latest gdp numbers tell us about the year ahead and about your wallet. plus we're going to look for the silver lining with the great larry kudlow, always optimistic. he is later this hour. he always find as silver lining. tell us about the battle between disney and ron desantis and president biden's cheat sheet. you hear about that? you will. north carol senator ted budd worries with about a.i. david: i'm david asman in for neil cavuto today. stocks hitting session highs. meta is driving up the markets with upbeat earnings. meanwhile the gdp in the first quarter coming in very tepid,

some say anemic 1.1%. a sign consumers may be wearing down as well as manufacturers. a brand new "fox news poll" showing most voters think the economy is in bad shape. this on the same week that president officially launched his bid for more years in the white house. former congressional budget office director douglas holes holtz eakin is here to join us. >> thanks, david u. david: go back to basics. the economy was really coming back in gangbusters when he took office unlike what he says by the way. when biden came into office in january 2021 it was growing over 6% with 1.4% inflation. then we had all of these trillion dollar spending plans which kicked in after about a year. you can see what happened.

we immediately saw a drag on the economy. we saw it going two quarters it went into the negative sphere and we sunk into stagflation. isn't it that simple? i mean, again it is not rocket science here? >> no it is not rocket science and indeed one of the great misperceptions about the biden record is somehow he inherited a struggling economy. we were growing 6 1/2%, and all of those massive stimulus bills did was engender inflation we haven't seen in 40 years. if you look at today's report, good news, household sector is pretty strong. you had some troubling news. business investment, cap-ex essentially flat in this report. it has been relatively weak for three straight quarters now. i think people putting too much emphasis on the household "sector watching" when consumers quit spending. most recessions start with the downturn in business spending. i'm concerned about the outlook on that front.

finally embedded in here is the fed's measure of inflation, so-called pce price index using market-based measures. that shows inflation at 4.9%, bouncing up from 4.1 last quarter, so, we're not making great progress on inflation. the fed has done a lot and accomplished little and not getting much in the way of growth. not particularly appealing report. david: dug doug, you mentioned a phrase business spending. when you invest you invest in the future and they see a future that is bogged down by more regulations and god forbid more taxes. now we have a split congress. republicans control one house, the house of representatives and a new tax bill will not pass in that house but the regulations are a kind of taxation, are they not? >> no question, and as you know we track this pretty carefully, the obama administration got

reputation as a massive regulator. it imposed $100 billion of regulatory costs every year for eight straight years. that is disguised tax increases but the biden administration went over $200 billion in regulatory costs in its first year. we never seen a number that big. it continues apace. and so that's a real headwind for businesses. especially hard for small businesses to handle those regulatory burdens. that ask where you see the growth slow down. i'm one of the ones getting through this year without a recession. i see the second half as rough. david: we have to come back to spending. there was tremendous amount of spending during the trump administration because of the pandemic that was phased out. it began to be phased out when biden came into office. he claims credit for the deficit going down. all the deficit spending coming down was phasing out of the

trump spending but his spending is new legacy spending. spending for programs that go on and on for years and decades. that is why it is so dangerous the spending. that is how you differentiate spending with trump which was temporary from the spending with biden which is permanent. >> the reality we did enormous amounts of spending during the pandemic. it is transitory stuff. it is gone but we still have a budget fundamentally unsustainable. spending grows faster than revenues as far as the eye can see. president says putting off limits to programs, social security, medicare which are financially troubled. the beneficiaries have to be concerned about future of those programs, growing% each. that is not sustainable. it is disservice to the seniors, taxpayers, we're not doing any real work. that is the place where they ought to get serious that would

require real leadership and we're just not seeing it. david: biden claims all the spending will lead to more jobs. we heard that before. we heard it in obama, when he was in vice president, something in 2010 recovery summer claimed 500 new 500,000 new jobs for the summer. we ended with a deficit. those promises unfilled. doug thank you very much. first republic shares dropped another 30% on wednesday now looking for a rescue kelly o'grady has the latest on this. doesn't look good for them, does it? >> reporter: not if you look at the whole picture. i will say first republic is up 14% today, suggesting we might have a little bit of a reprieve, despite the morning bounce, the stock is still down 50% this week. the share price losing 95% of

its value since the beginning of the year. to put that into cone tex the company was worth $40 billion in november. now plunging to 1.2 billion today. i spoke with my finance sources. first republic is now seeking help in earnest. remember it already received 30 billion to shore up deposits from big banks, wells fargo, bank of america, but the appetite to help yet again is weak. so is the government's desire to step in reportedly. it took over svb and sick signature, back in march, repaying deposits to customers even those uninsured but they didn't say they will back deposits across the board. some are questioning whether first republic's current finances make it it word savings. it lost 40% of deposits or $100 billion since the collapse of svb. part of what you're seeing in the share price is pure panic. management highlighted the deposits stabilized multiple weeks prior to monday which they

hoped would calm fears. unfortunately it has done nothing to rebuild investor confidence with most focusing on the headline of 100 billion. how bad is this, david? first republic needs to find a way out and fast. the remaining deposit holdings can't with stand much more customer and investor panic. it is a lifeline of small businesses putting the heart of america at risk if a domino effect ensues. big banks, the government, david, they're backed against the wall. if another bank falls it could reignite fears. remember the federal reserve has a key rate hike decision coming. david: yeah. actually the weak gdp is one reason why investors are suspecting now, why the markets are up, in fact the rate hikes won't be coming as fast if they come at all in the next meeting. thank you very much for that, kelly. appreciate it. get reaction from constellation research ceo ray wang, ray good to see you. how are are you? you helped people impacted by

silicon valley bank collapse i hear. what are the similarities if any between what first republic is going through now and what svb when through? >> as kelly was saying it is really important, these are the life hines to small businesses and in the region where i live this is talking about biotech, hardware, telecom, any kind of software companies and they all depends on these loans and operational funds that are coming from banks like silicon valley bank in the past and first republic in this case and that flight of cash going out there, means we'll not have the same level of startup innovation, tech innovation we've seen in the past. this could impact levels of tech innovation for next 24, 36 months. what it is doing creating scarcity of capital, especially for companies that require, startups require level of funding, operational level of funding and continual level of investment. that means less innovation in the economy. that is what we're worried about. david: you see the market going

up today based on some of these legacy tech companies, microsofts, et cetera, which are doing quite well. i suspect a lot of money otherwise might be going towards the startup companies are now going back to these legacy tech companies. that partly explain what is is happening in the markets, no? >> it. >> right? big companies are getting bigger. people are flying to safety. great example what happened with digital advertising, right? riley going down to three companies right now. basically google, facebook, amazon, where digital ad revenues are going. go ahead, sorry. david: that's all right. i want to ask finally about this battle between microsoft and google in terms of a.i. that is one reason why microsoft did extremely well yesterday, it is doing well today, as also, not to say that google alphabet is doing badly. they're doing fine but not to the extent that microsoft. who do you think will win that

battle? >> this is a battle that will go on for quite sometime. microsoft pretty much declared war on google at the beginning of the year quietly. now publicly going after google really on a.i. microsoft kind of jumped the gun on a.i., hey, available, chatgpt is great to use. we'll do everything in a.i. but the challenge behind that you have to have enough data and compute power which is your cloud capability. what we've seen over the last five or six weeks, there has been a degradation service on teams and email. it is very hard. uses a lot of compute power. you have to worry about exponential amount of disinformation, misinformation you have to combat. google is criticized getting stuff out there, having some of the best engineers in a.i. and some of the best talent that is the balance. i think both will do fine going forward. company will talk about they have a a.i. story. these two are ones to watch pushing a.i. across the board. david: we still don't know how

congress is going to react. a lot of people reacting to elon musk and other people afraid what is coming with a.i. we'll have to watch that. we'll talk about that later in the program. great to see you. thanks so much for being here. ray. >> thanks a lot. david: coming up disney taking action against governor desantis with a lawsuit. larry kudlow has some thoughts on this back and forth. these thoughts are very surprising coming from a man like larry kudlow. he is optimistic, but looking at current gdp figures, what does that mean for future? larry joins us next. ♪.

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not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't. the weight just fell off. i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will release you. ♪. david: well it's a story we broke right here yesterday on "coast to coast." disney filing a lawsuit against ron desantis claiming he is weaponizing the state government to retaliate against the company. ashley webster live in orlando where everything is disney with details. hey, ash. >> reporter: hey there, david. you're absolutely right. neither side in this dispute is backing down. the disney lawsuit basically goes after florida governor ron desantis. also the five member board that

he chose to replace the reedy creek improvement district, also other state lawmakers. disney claims they are the victim, quote of a targeted campaign of government retaliation orchestrated at every step, the suit says by governor desantis as punishment for disney's protected speech. well all of this happening as governor desantis is on an international trip right now but earlier today in jerusalem he blasted disney, calling the lawsuit purely political and saying that it holds no merit. he also says disney should be treated like every other business. listen. >> treated much different than universal, seaworld, and all these other places and so they're upset because they're actually having to live by the same rules as everybody else. they don't want to have to pay the same taxes as everybody else >> reporter: well the dispute goes back to last year of course when disney oppose ad new state

law critics called the don't say gay bill. the suit, accusing desantis of political retaliation. also infringing on disney's constitutional rights but florida lawmaker fred hawkins, we caught up with him, he is the republican sponsored the bill that put disney's tax district under state control. he said look, disney sammy cannot run its own government listen. >> we're putting an to that. if it takes a lawsuit and court to make that happen we're in for a fight. i hope the governor does not back down and stands with us to see it all the way through. i think disney will lose in the end. >> reporter: in the lawsuit disney wants the court to grant an injunction to stop the state from taking over that special tax district, david. basically every legal analyst we have spoken to say it will be fascinated in court. david: it already has been fascinated. it will be interesting in court. thanks, ash. >> reporter: yes. david: our next guest says

desantis is close to making a fool of himself with his obsession with disney. joining me now is "kudlow" host, larry kudlow. larry, i couldn't believe, you're the kindest man i know on the planet, you really are. you hesitate to point fingers and make on comments like that but you said that my own feeling is that desantis is a guy who is from a military background. god bless him. i love the military. my son is in the military but in the military you order something to be done and it gets done. a private sector guy like trump, for example, you make a deal, you negotiate. there is not much negotiation. what do you think of my theory? >> look, that is basically what i'm thinking about. look, you got to look at this politically right now. donald trump is running against desantis and desantis is running against disney. so i think that is a big mistake. i mean look, desantis was right

about the woke opposition from disney. he was right. the desantis bill had nothing to do about don't say gay. it said up to five years old you can't be taught sex and gender kinds of things in school, okay? five years old. so i agree with desantis on that. but, but, but, what's happened since then he has gotten into this argument, a legalistic argument about the governance of this walt disney district, whatever it is called, reedy district, and now the argument is getting deeper and deeper. desantis is having to spend more and more time on this. i think that is a huge mistake. desantis should be running against trump on the issues. desantis should be running against biden on the issues. desantis, who is a good governor, don't get me wrong, he is a strong guy, okay? he has got a lot to give. he has big contributions in the republican party.

he has done a good job in florida. he should be talking about new york city has a 14.8% tax rate, miami has a zero tax rate, okay? florida has a higher population than new york but florida's budget is half the size of new york. that those are the kinds of things that, florida growth rate is three times new york and california. that is where he should be. david: makes a lot of sense. >> not obsessing about walt disney. that is the point i'm making. it's political point. david: all right. >> too much woke and now too much legalism and walt disney, he should have settled with bob eiger, who is a very smart guy. he should have gone down, sat with iger and just kind of made a deal that iger, disney is going to pull back from all these woke pronouncements which they have already done. that is what donald trump would have done. david: makes a lot of sense.

>> would have taken two hours to have a deal. that is the problem. it is not helping desantis. david: let me move over to the democrat side. somebody who needs help, joe biden a lot of it. look at most recent poll came out. robert kennedy now has 19%. he started out at 14. kennedy is growing as biden is weakening. even marianne williamson by the way has 9%. that is total of 28% is being pulled away to joe biden. while this is happening he has got these very anemic gdp growth rates that came out, 1.1%. we were expecting 2% or greater. was only half of that. i don't see a bright future for biden. >> well, my topic sentence here is, save america, retire biden-harris, okay? that is my topic sentence, save america, retire biden-harris.

what you're seeing in these polls with bob kennedy, jr. and williamson and so forth, is a protest. they're being used as a protest against president biden. his own party is in full revolt. i think you will find that protest will continue to increase. by the by, yes, the gdp report was quite weak. business investment has basically collapsed. inventories have collapsed and housing remains in recession. so i think the threat of recession is much greater. incidentally, inside of this report underneath the hood, core pce deflator was almost 5% which is 2 1/2 times the fed's 2% target. so the fed is going to have to raise interest rates even while the economy is going into recession. david: right. >> it is a very nasty witch's brew. meanwhile you have a president biden who spews forth unbelievable rhetoric against

business, against fossil fuels. he wants to tax everybody and this doesn't help. david: no. >> if you're a company much any decent size you, what's your strategy? you're not going to spend money. you're not going to put in capital investments because you see this guy is running a socialist economic policy. david: yeah. >> the economy is going into recession. inflation rate is high. david: business generally doesn't want to invest in socialist future. >> they're not going to invest. david: i want to touch finally on something that's near and dear to your heart because the gop budget passed in the house although there were some dissenters, part of it, primarily on spending, part of it was to change incentives by this workfare program, this terrific idea of turning welfare into workfare. >> yes. david: if you're an able-bodied person getting a lot of welfare you have to work for it. we've been there. we did it under a democratic president in 1996 after five years, we had a test of trying this before.

it succeeded enormously. the welfare, the welfare caseloads came down in, virtually all of the states that had a lot of welfare. new york it was down 55%. california down 42%. wisconsin, look at this, it was, the welfare caseload was down 90%. by the way, child poverty in wisconsin, also plummeted in wisconsin. it came down 40%. so it is not only good for people getting back to work, it is good for reducing poverty. why don't we do it again is the republican plan now suggests? >> the republican plan is a very good plan. i've been an ardent backer of a return to workfare. by the way that wisconsin number was former governor tommy thompson who was a great welfare reformer. newt gingrich with bill clinton. this is, this is very good. kevin mccarthy, speaker

mccarthy will be on our show this afternoon has done a terrific job marshaling his forces. he has done a terrific job and now he has put president biden in a pickle because, biden said show me a plan. so now the republicans have a plan. it is going to cut almost five trillion dollars over the next 10 years, about 500 billion over next few years. it has workfare, it would reopen the fossil fuel spigots and would cap spending at 1% growth. it is a very good plan. david: it is not going to pass in the senate. it is not going to be -- you know what it is like when they scream in your ear. go ahead, very quickly. >> all i want to say is historically in the last 20 years debt ceiling debates have always been resolved with spending restraint. this is not new. and in fact it was joe biden who made a deal with then speaker

jon boehner in 2011. biden acting on behalf of obama. this is not unusual. >> i remember. >> debt ceiling debates always produce budgetary savings. david: we do. >> we have too much spending, too many deficits, too much borrowing and debt. everybody knows how inflationary that is. five stars for kevin mccarthy and he will be on our show this afternoon. david: we will be watching, 4:00 p.m. eastern time. you got to watch larry and speaker mccarthy that will be a great interview. thank you very much, larry, you gave us a lot of time. i appreciate it. >> thanks, david. david: elon musk taking a trip to our nation's capitol to talk about a.i. risk with lawmakers. coming up republican north carolina senator ted budd joins me with his take on the joins me with his take on the a.i. revolution, and the dangers within.

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david: "fox business alert," elon musk revealing details of his meeting with senate majority leader chuck schumer and other members of congress about the dangers of a.i. fox business's grady trimble in d.c. with the very latest. >> reporter: david, a lot we don't know about the closed-door meeting between elon musk and senate majority leader chuck schumer. i will cover what we do know. it lasted about an hour yesterday afternoon, before musk was whisked away in tesla of course. he said they discussed the future. reporters asked him to elaborate. he said they talked about the economy and artificial intelligence. schumer says the tesla plant in buffalo, new york, came up in the discussion. musk later posted about the meeting on the social media platform he owns. he tweeted, met with senator schumer, many members of congress about artificial intelligence regulation today. that which affects safety of the

public overtime has become regulated to insure companies do not cut corners. a.i. has great power to do good and evil, better the former. leader schumer is leading democrats push to regulate artificial intelligence. we don't know exactly what that regulation might look like. elon musk is famously one of those tech leaders who a month or two ago signed on to that letter call forge a pause of some a.i. development to give time for essentially lawmakers, the rest of us to figure out how it works and how it could be used for as musk put it, good and evil. david? david: we would rather have good than evil. that's clear. >> reporter: yes. david: grady, thank you very much. north carolina senator ted budd says congress has a role to play in a.i. he sits on a subcommittee on artificial intelligence. thanks for being here. first of all, were you in the meeting with musk? >> i was not at that meeting. i not hearing much about the

pause anymore which we just heard a few months ago. we need to sprint and chew gum in this instance. we have to do legislation and regulation while a.i. is being developed. there are some things to gain, there are things to lose, it can be dangerous we have to do more good than evil. we have to be out in front of this. david: what makes me nervous, a lot of people nervous in addition to concerns elon hands my concern about regulators now. regulators have made a lot of mistakes over the past two years i think. i think some pans out the way the economy is going. we saw anemic gdp growth rates, et cetera. do you feel comfortable with the regulators administration put in place with them regulating something as sensitive as a.i.? >> absolutely not. that is why we need the senate, we need the house. a lot of smart folks there with experience with this with technology. we need to get out in front of this. we need to be putting it forth, not letting the white house which has shown incompetence on so many levels to be on the lead

on this. we need to be in front of this on the senate. david: right. it is not, i have to say, show the white house i'm critical of. every time i see one of these tech giants whether it is elon or microsoft or the google guy in front of the congressional committee, they usually make mincemeat of the senators and the congressman that are asking them questions because they know so much more about it than anyone of you guys. >> well some understand it. some don't. we need to get the ones that are smartest on this, best on this, to put together a probably bipartisan group. that is how it will probably get passed but to be pro-innovation. we need to innovate rapidly and think wisely on this. i think we can do both if we put the right people at the table. david: there has been an initiative. it is called protecting kids on social media act t would essentially bar kids 13 below from creating accounts of their own, interacting with other

users. do you favor that act? >> you got to look at the details of this. it is still a little bit of wet cement. i'm for the idea of this act. we're for protecting our kids. a lot of this starts at the dinner table, how we train our kids to ininteract with media, social media. i think that is where the first responsibility is. anything we can do to encourage families to take responsibility for their children and their engagement online is the best thing that we can do. but again the concept is right. let's make sure the details are right. david: all right. very quickly, i want to switch to the budget proposal that was passed in the house yesterday. obviously the senate is not going to pass it but, the president wouldn't sign it. it is not veto-proof. so the key question here is it dead in the water? what effect might it have? at the very least i think what wall street likes about it, the fact we have this gridlock. while that is dead in the water, any move to preet new create new

taxes by the biden administration would be dead because of republican house, right? >> kevin mccarthy and republicans took a great lead winning with 217 votes. they did a great job. five as far as for kevin mccarthy and his leadership. he took the first biden should have taken the first step but he did not. up to the white house. they can't stay in a locked down position. they have to come out there, offer something, let's thee what kevin mccarthy and president can put together. so far we're seeing no movement from the white house and we need to see them engaged on this issue before it's real problem in june. david: finally here is a what if question. what if democrats say we'll cut the budget if you will allow us to throw in some tax increases or perhaps even new taxes? you know you have seen buyer's remorse from people like senator manchin on so-called anti-inflation act. he is saying he was snookered in that deal. would he go along with another deal that might not follow

through on budget cuts in order to get tax increases? >> let's get to the root of this. the problem is not a tax problem. the problem is a spending problem. so we've got to do this $4.8 trillion retuck shun that kevin mccarthy was able to pass last night in order to solve the problem. i don't think taxation or taxing issues are going to fix this. we have to get to the root which is spending. let's focus on that. let's see what we negotiate with the white house. david: again, final point, i want to press you on this if there is some kind of a proposal, democrats we're for cutting spending you have to allows to increase taxes? is there any republican or senator manchin that would go along with that idea? >> i can't speak for other republicans. i'm against tax increases because the root of the issue is spending. david: senator, thanks so much for being here. we appreciate you coming in. >> thanks. david: california fleeing the state losing hundreds of thousands of residents, power

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david: if you have the money there is a fire-sale for 300 million-dollar office tower in the heart of san francisco financial district. the 22 story glass and stone building has remained largely vacant since the pandemic. real estate experts say it could sell at 80% loss, 300 million-dollar building down to $60 million. meanwhile california power companies are proposing a new rule that would charge higher earners more for their electric bills. our next guest says, that this proves the state cares more about control than climate. joining me now is texas public policy foundation vice president, former

california legislator, legislative member chuck devore. chuck, you're one of those many people who my great, we'll talk about the migration in a second. is this the beginning of a much larger crisis for commercial real estate in california? >> well, david, it certainly doesn't help. what california is doing per a law that was passed last year, the public utility commission in california has been directed to shift from a process where, you had to pay more for additional electricity you use. you got a certain baseline. anything above that you paid a lot more for that additional electricity t was designed to encourage using so much, conservation. they ditched that. now what they're going to is an income based system. everyone will pay a flat fee for electricity a little less they say for residential electricity but everyone now has to pay more

if you're higher income, probably $750 more for about 15% of california households, $90 a year more for middle class households. those on the lower end of the economic spectrum, david, will save $300 a year. what they're using, david, using the electrical companies as a means of income redistribution in california. david: yes. it is right out ofss today capital. this is marxism, each according to their needs, et cetera. it comes on top of such a mountain of new rules and regulations, new taxes, by the way other kinds of reparations. not only reparations for income inequality, but for race. that's why i think it is all these new rules and regulations make it impossible to do business, why you have this huge exodus, people like you moving to texas or to florida. you have 871,000 people who

moved out of california between april 2020 and july 2022. a lot of that of course had to do with the pandemic. that was also because of those new rules and regs. >> right. david, this is unprecedented for california. we have seen certainly over the last two decades net migration domestically. americans moving from within state to state. california always benefited from international in migration, legal and illegal, natural birth rate over death. they were growing albeit more slowly over the last three years. david, over the last three years they have lost population. it is remarkable how beautiful california is. probably has among the most mild of climates of all 50 states. so much amazing scenery, amazing industry in california. yet somehow, somehow, under the leadership of governor gavin newsom, they have managed to drive people out of the state now for three years in a row.

david: yeah. it is, i think, one of the most beautiful states in the country but when you get down on the ground, when you try to walk through the streets of los angeles or, even san diego, of course san francisco, i mean it is anything but beautiful. it is disgusting in many cases. a lot of people, it is also so dangerous, that really is forced a lot of people out. chuck devore, i hope you're happy in texas. we appreciate you coming in. >> i am. david: thank you very much. let's check in with brian brenberg and "the big money show" to see what they have coming up today. hey, brian. brian: david, americans are giving the biden administration a reality check on the economy. we'll speak with senator mike braun. a professor catching students cheating using a.i. that and more at the top of the hour. more "coast to coast" after this ♪.

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