tv Stephanie Ruhle Reports MSNBC May 19, 2021 6:00am-7:00am PDT
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have ton of news to get to this morning. evernight we learned former president donald trump's business organization is now facing a criminal investigation on top of the civil investigation. that word coming officially from the new york attorney general. at the very same time dozens of house republicans may be on the verge for voting for a bipartisan commission to look into the january 6th attack on the capitol. that is despite opposition from their leader kevin mckarthy and guess who? donald trump. over in the middle east there's talk of a possible cease-fire between israel and hamas perhaps as early as tomorrow, but there is nothing official and for now the violence and the bloodshed continue. we are covering all of it with our correspondents spread out across the world. i want to talk about the escalation of the attorney general into the trump organization. going from civil to criminal. i want to bring in katie lenner,
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and he served as assistant deputy attorney general in the clinton administration. what's your take? people hear criminal investigation and they think criminal chs, but let's be honest. i feel like we've been talking about this for a very long time. why is this different? >> we have been talking about it, and the different developments, and when you hear criminal investigation, you do think criminal charges. the new york ag covers a panoply of criminal fraud. two, it's the interrelationship between the a.g. and the d.a. which itself has a serious kr imcriminal investigation going. she has certain evidence and that makes this sensible though it's very unusual. so it is serious as a heart
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attack. the question may be of timing and she obviously contemplates the real prospect of criminal charges, otherwise she'll be found with real egg on her face. >> peter alexander at the white house, how big of a deal is this? >> this is a significant deal and sort of a dramatic escalation in this investigation. in the past there was a civil investigation by the new york attorney general and joining forces with the manhattan d.a. to harry's point about the timing on this. we know from the manhattan d.a. he said that the statute of limitations on this he thought was effectively the course for a short period of time. he said it would expire soon and he's going to be leaving his post at the end of this year. so in term it is of when next moves may take place here, if either or both of the prosecutors in this case find something that they believe is worthy of charging the former president, his family members and his associates and of the
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company itself and it is likely that that will happen before the end of this year and we already know that the d.a. had had access to his taxes, that they've been looking into potential tax or bank-related fraud here. so the fact that they are partnering up and that the a.g. may have found something to go from civil to criminal is a significant change. >> he most likely wants to get something done on his watch. katie, we just laid it out. we know what the manhattan d.a. were looking into fraud. do we know what exactly the new york attorney general is looking into? for the plain, old american sitting right here, we don't know the difference between the two. >> civil versus criminal. civil the penalty will be financial and if it's criminal, you would do jail time. they're looking into whether or not the trump organization, excuse me, was lying about the value of its properties saying that the properties were worth more in order to get more loans and saying that the properties
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were worth less to pay less in taxes and you can't do both and those are crimes. so if they can prove that that has happened there could not be jail time. the person they're looking at is the head of the financial piece of the organization, weisselberg, to see if he can get more information, to see if he would be a target of the investigation and to see if he would flip and incriminate or implicate other people as part of the trump organization, it could be donald trump or any member of his family. it's a big deal once jail time comes into play. nobody wants to pay a fine, but few people want to go to prison. >> they've been talking to weisselberg for the last few years. is it different now because trump is no longer in office? >> well, yes, there's no prospect of a pardon and he is made to order for this. to peter's point, i think that's right that vance would want to make the final charging decision and now we have a large and coordinated investigation and that means they will work their
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way up to the top and that puts immediate pressure on him in particular. he's 75 years old. he started out with trump's father so he doesn't have that inbred loyalty and really, he has to know where all of the bodies are buried in terms of both the crime, potential crimes that katie just laid out and other kinds of fraud which now could be covered by the martin act. so he is tailor made for maximum pressure to turn and cooperate and provide evidence against the family members and potentially the former president. >> i don't know what the martin act is. >> the martin act is a special act in new york passed in the '20s that gives very wide ranging jurisdiction over companies for any kind of fraud. so it's just as the federal fraud statute is broad, it's extremely broad and the new york ag is the one who has the criminal jurisdiction over it. that's a major thing that she
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now brings to the table. >> katie, how does this impact what eric and don jr. are bringing, what happens today when they head into the office? >> it's very difficult to say what they are going to do, but we've seen from all of the trump family members is that they have been impervious to bad press and they've bee impervio to investigations. they might probably take them seriously and their public policy is always we are under siege and we are victims. i suspect very little will change for them in the public eye and they're scrambling whether or not they'll comply with subpoenas, whether or not they'll have adequate legal representation and in terms of the public-facing posture they will triple down on the idea that they are victims. >> people, we talk day in and day out about donald trump and the republican party and he's the de facto leader and he could
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be running again, would this impact that? if he's convicted it would, but even in this investigation? >> we knew they were already ongoing and the president has only grown, fortified his strength, i guess, his power over the republican party and consider what we saw happen over the course of the last couple of weeks and liz cheney and stefanik who was a moderate and her credential at this point is how fiercely supportive she's been of president trump has been moved to the number three post. as for the news out of washington, you'll be talking about this commission into the january 6th attack that took place and the president last night called on republicans to reject this saying it was a democrat trap. the bottom line is it would likely pass it and it has several republicans, as well, but even with republicans being involved in the process of creating that commission, it was
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not enough for the former president donald trump and he keeps it on large members of his base. >> we are going to talk about that later in the show, to your point, but has donald trump or any of his associates had anything to say since we got this announcement? >> we have not yet heard from the trump organization, i'm not sure if anybody else on the panel has. either i have reached out to the president referred to these investigations as politically motivated and he used the famous term that they were a witch hunt both with the a.g. in new york and the manhattan district attorney, but nothing yet from the president as soon as we have details from him and it's familiar to things they have said in the past. harry, yes? >> it can be admitted in court. so these hockey breaking
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statements can affect them and they know it during the trial. >> how is rudy giuliani these days? >> there is an ongoing investigation into rudy giuliani as to whether or not he is using his position, his access to the president and his access to other members in the administration on behalf of lobbying to foreign powers and foreign interests without registering with the justice department as a foreign lobbyist. basically in the united states you can be a foreign lobbyist and you have to make that intent known to the administration and you are doing so on behalf of the foreign power and their interest and not in the interest of the american people. that's investigation into rudy giuliani. one of the reasons why this is important is because it continues to bring scrutiny to bear on the broader trump organization and every person who is part of that piece of the administration, whether it was working on behalf of foreign powers in order to influence the president allegedly or whether it was later in the
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administration and working on voting issues which is not true. we know that joe biden won the election and these are all things that are happening together almost like a knot that is really hard to untie, the foreign influence related to this idea finding research on joe biden and later on who stole the election. that was my dog knocking over my camera. i am so sorry. when we see this investigation, it's a reminder that this is such an entangled web between a few key players who are involved in almost every part of the trump administration. >> there are a lot more threads to pull so all three of you stay close. stay with us this morning. we have to move on. peter mentioned it the showdown over the january 6th commission, the house is set to vote later today and for once, we are expecting to see democrats and republicans voting, yes. i might have to get my bipartisan horn out, and the co-founder of punch bowl news joins us, as well.
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garrett, we know kevin mccarthy and steve scalise are in the commission and they're saying not so fast. >> we'll see what amounts to a whole lot when it comes to other republicans. yes, over the last 24 hours we have seen republican leadership change their stance and working against a january 6th commission vote about 24 hours ago. all we have is a statement against kevin mccarthy and the republican is working against it and steve scalise now leaning on members and whipping against that bill and you have the statement from the former president that peter alluded to, calling it all a trap and this commission isn't about getting to the truth and it's all about politics and nancy pelosi and by which republican leadership has to speak to their members and to try to push them against voting for this bill. how is this about politics and
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nancy pelosi, on january 6th. those insurrectionists, it should be with mike pence and anyone else in between. what is mccarthy's explanation for opposing this and are there any other republicans buying it? >> he's got support from his allies and i had a house republican email me angrily and said that house republicans were a mess because this and the liz cheney debacle and you know, his whole argument is the scope with this is too narrow and you should look at other acts which includes the black lives matter protests, as far as he and mitch mcconnell are concerned and they've been argued all along that the scope of this is not broad enough and what they see this as pelosi and the democrats trying to hang trump's actions on january 6th around them.
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this report would come out late last year in 2022 and their fear is that this would become a political weapon democrats can use against them. >> that makes no sense. mccarthy himself put his colleague out there to negotiate this and the republicans basically got everything they wanted and then mccarthy through katko under the bus. a week ago you talked to congressman katko and he laughed it off when you said this could happen. >> he was not happy with me and it was not a friendly encounter. >> well, that's happened. >> the other thing is they actually, katko and the top republican in the commity have introduced this bill. the republicans voted for a bill largely like this months ago.
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so now they've changed their position entirely on it, and this was the issue all along. they fear this is pelosi just trying to, you know, to keep trump as a millstone, trump in january 6th this is what they're concerned about. they can't move beyond this trump or january 6th. they clearly can't move beyond trump and trying desperately to move beyond january 6th and this doesn't help them. >> garrett, where is mitch mcconnell on this? >> he gave an interesting response with reporters, basically a wait and see and they're not the same as mccarthy's concerns and they want to make sure that the staff appoint side truly bipartisan, for example and wants to make sure they don't overrun the deadline here. it speaks to what john was saying that house republicans was saying this could stretch for on and on and on, and this commission is supposed to wrap up the work for this year and
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mcconnell wants to see language that forces them to do so. he's keeping his powder dry and senate republicans, quite honestly are waiting to see what the house does today and there is a difference between a dozen or so house republicans and that will tell senate republicans of where they think their party is on this. ? all right. garrett, john, thank you all so much. we have a busy morning ahead. >> we are following the breaking news in the middle east about new developments in a possible cease-fire as early as tomorrow. the latest conflict overshadowing president biden's push on his infrastructure plan. katie porter joins us live as we dig into what it will take to get a deal done. from new york city to nashville, tennessee, how businesses in three states are turning the page on this pandemic. i don't know. i think they look good, man.
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history says: fine jewelry for occasions. we say: forget occasions. (snap) fine jewelry for every day, minus the traditional markups. ♪♪ this morning fighting in the middle east has entered its tenth day. overnight hamas fired dozens of rockets at israel striking at least one community on the border, while the idf continued to target hamas' underground network of tunnels with dozens and dozens of air strikes and while president biden tried to spend the day selling his infrastructure plan in michigan, the violence in the middle east overshadowed his pitch. the district he visited is home to one of the largest arab-american communities in the country and rashida tlaib has
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been speaking out strongly against israel. i am joined by martin in tel aviv. we've heard reports that the fighting could end in the last couple of days, why and is there any chance that could happen? >> there is some chance, yeah. there are serious negotiations going on led by egypt, led by the united states and the european union. negotiations are taking place and at the same time, the israeli military have thousands of targets still to hit and they say they want to continue until they've guaranteed safety for their country, which, by the way, is pretty much the same words they've used every time there's been an outbreak like this, this is the fifth one in 15 years. rockets are continuing to come in from the south from hamas in gaza, so there's still a lot of activity going on, but the emphasis of the analysis, if you like, at the moment is there are serious cease-fire negotiations going on. later today the israeli security cabinet is supposed to meet
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probably to discuss the negotiations and there is some thought given that there could be a cease-fire as early as 6:00 local time tomorrow morning and there's also another aspect to it which is if the two sides cannot reach agreement. one israeli cabinet minister had the unilateral cease-fire and israel stops firing and hopes that hamas does the same. >> negotiations led by israel and backed by the u.s. talk to us about joe biden's position right now. i know you have new reporting on what went down on that call between president biden and net net netanyahu on monday. >> you'll remember the moment when i asked the president if it was time to insist on a cease-fire and he said he would be speaking with the prime minister in the next hour. we now know from the readout that the white house released on that call, that in that conversation the president was more blunt with a greater sense of urgency to the conversation.
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"the new york times" also reporting that while there wasn't a deadline given in which the white house would take a stronger line publicly, as well the president made clear that the politics of this issue changing even within his own party and that netanyahu needed to be aware of that, as well. as we hear martin talk about the diplomatic negotiations continuing to go on behind the scene, the white house has otherwise been reluctant to talk much further, as white house press secretary jen psaki put it yesterday, sometimes the diplomatic efforts have to be quiet and they have to remain behind the scenes and what the u.s. leverage is in this situation. the president has just left the white house and he's headed to connecticut to deliver the commencement address with the graduation. other than that, no additional calls. >> the white house might not want to talk about it, but you can't avoid it. he was with the president in
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michigan and he wanted to talk about infrastructure, electric cars and the ford f-150 and he couldn't escape the violence in the middle east and that's what he's being asked about. >> you know deerborne with the ford electric vehicle plant seemed the ideal setting for the president to cell his $2 trillion infrastructure package and 174 billion of that devoted to trying to boost the electric vehicle market and the president trying to make the strong case with china. that was the discussion he wanted to do yesterday. you mentioned deerborne to the largest arab-american population in this country. there were demonstrations around the president's visit yesterday and we saw that fascinating moment on the tarmac when rashida tlaib greeted the president and had a long conversation about what we've seen there and the president later breaking from his prepared remarks to praise her and to vow that he was doing everything he can to ensure that some of her
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family who is in the region remained safe. the congresswoman later, an aide released a readout of that conversation, she was just as clear privately with the president as she has been publicly about the need for the u.s. to do more. as she put it, cannot continue to give this right-wing netanyahu government unfettered assistance in taking action against palestinians. >> israel, infrastructure, a pandemic, a whole lot more. michael, martin, thank you much. i want to bring in congresswoman from california, katie porter. i'm glad you are in d.c. i know when you join us from california it is very, very early. i want to start with infrastructure because right now republicans are working with the white house. if they agree to a smaller bill focused on infrastructure, roads, bridges, sportation, can you get behind that for the time being? >> no. because what we are doing is not
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an infrastructure bill and hard infrastructure is a part of our economic recovery, but our economy is not going to fully bounce back from covid-19 and it will not be on a path to be globally competitive going forward unless we address some of the other issues that workers face, and so we have to be making investments in the people who do the work and we talk so much about jobs and they are so important and we have to have people who are able to take those jobs and trained to do it and earning a living wage, who are safe in the workplace and this is an economic package. it's not an infrastructure package. infrastructure is part of our economy and that's how i think about it and that's how most of americans think about it. it's not just about roads and bridges and it's about roads, bridges and child care and the ability to make ends meet and it's all about the parts of our economy coming together to put us on a path to rapid economic
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growth and economic stability for years to come. >> even though that's how the majority of americans feel about it, president biden doesn't have all democrats onboard. some of your colleagues from high-tax states like yours have said if this bill does not include getting rid of the cap on the state and local taxes deducked, they're not going to support it. i know this impacts you and your district in a big way. where do you stand on that? >> it's really important that no american, regardless of what state they live in be penalized, punished or asked to pay more federal tax simply because of the state that they live in. our federal resources, the federal investments that we make from our tax dollars are collective, they benefit the whole country and what the tax bill did is single out certain states that make investments in infrastructure and ask them to pay more federal tax than their
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counterparts in other states. that's unfair. so i support repealing that deduction, and repealing that cap on that deduction and making changes so that all corporations are paying their fair share toward this economic recovery package. we are still early in the negotiations. as you know, there's no bipartisan agreement yet and not necessarily, as you point out, not all democrats and republicans are in the same place yet. this is the time that we are elevating the concerns in our community and working with what the right balance of things is going forward. >> is removing the assault cap a deal breaker for you in some of your colleagues say they won't talk unless it's out. >> stephanie, i'm always going to want to talk. i think you know that about me. so there will definitely be continued conversations. we have a duty to listen to those. you can't say nah, nah, nah, what are my concerns?
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what are the competing concerns? what are the economic harms of continuing to allow the trump tax plan to go forward in the way that it has. what is that doing to our communities in new york, new jersey, illinois, massachusetts and other states? and what's it doing to the american people's confidence in our tax system? it is fair and neutral and not use being used as a political football because that's how trump used it. i haven't made up my mind because we don't have that final package before us yet, but you can bet i'm going to advocate for my constituents and the ability and the rights of every american to pay a fair share and get a fair return from the federal government. >> how about the kids in your district? come july it's going to start going out monthly. that's very good news, almost like a kid allowance, but there are a certain group of families that it's harder for them to get this money and those are families with single parents. talk us through this. >> so the extended child tax credit is a wonderful policy.
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it is designed to help make sure that our kids are being well positioned to become our future workforce, that they have adequate nutrition, high-quality schools and they have the things they need flourish, but the way this policy was designed was to essentially set a threshold and then take a chunk off, split it in half and say this is the income eligibility threshold for single parents and that fails to focus the child tax credit which is to help children, no child in this country, whether they're living in a married household with a single parent and with the grandparent who is raising them. no chilled should have less help from the federal government in getting nutritious food, quality housing and good, high-quality preschool simply because of the marital status or family status in which they live. that's what i call the single parent penalty and it's a kid
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penalty and we shouldn't stand for that. >> you know i wasn't going to let you leave without asking and savage katie and queen katie all over the place, why? you brought out the white board to take on a big pharma ceo yesterday, the ceo of abvi pharmaceuticals. i want to play a little bit of that. >> how much did abvi spend in stock buybacks and dividends to enrich your shareholders from 2013 to 2018? >> the stock buybacks, if you actually look at your stock buyback would be $50 billion. >> $50 billion. mr. gonzalez, you are spending all of this money to make sure you make money rather than spending money to invest in, develop drugs and help patients with affordable, life-saving drugs. >> safe to say that was a bad tuesday for him. embarrassing, humiliating and tail between his legs.
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however those stock buybacks happened. they're actually happening again because companies made so much money last year these viral moments are amazing, but is congress going to do anything about it? >> with regard with the pricing of prescription drugs congress is dead serious about putting this on the table. last congress we passed hr-3 and the lower drug price act and there are discussions about reducing the price of prescription drugs following covid and so i absolutely think we'll get the drug pricing done. i think there is a larger question which is about pharmaceutical companies are companies. they exist in part to make money for their shareholders, but they also exist in part to power our economy, and to engage in sustainable practices. so giving out dividends and coming back to congress and asking for bailout. you and i have lived through cycle after cycle of that. >> they just got one. >> and what did they do with that bailout?
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that's the big question. did they use it to retain workers? we're seeing with oil and gas companies and i have a hearing about this today that in many cases, they took cares money and laid off workers. >> because they were allowed to. >> stephanie, you know how i feel about the cares oversight commission. you know that i think congress needs to step up its accountability game. i think we need more transparency about where money goes. i think we need to set clearer objectives for it and we need to hold ourselves accountable when the money is not spent in the ways that we intended and i think she's going to be a very, very good leader on this front, if god forbid, we need to do bailouts, in the meantime, companies have a responsibility. nobody is making them use that money on buybacks instead of plowing it back in with research and development. bank of america announced $25
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for the workers and recognize that your workers are what makes these profits in the first place. >> that cares oversight committee from last year still doesn't have a chairperson. new york, the center of the pandemic, is dropping all remaining restrictions today. we'll take you to times square as businesses there are navigating these big and positive changes. communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change. you're clearly someone who takes care of yourself. so why wait to screen for colon cancer? because when caught in early stages, it's more treatable.
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more cities, states and businesses are dropping mask mandates following the cdc's latest guidance. we have reporters across the country. for the latest on how it's going, first to chris jansing in connecticut, chris, when are the restrictions being lifted? connecticut is doing an awesome job getting people vaccinated. >> they have and now they'll follow the cdc guidelines. for places like the brewery here, good news. no more social distancing and size restrictions and they'll continue to be nimble. when covid started you couldn't just sell beer and make it work so they also opened a cafe, and you can have breakfast here and your coffee, as well. as for those face masks, you don't have to wear them if you're fully vaccinated in connecticut, but the owner here and a lot of business owners are waiting to gauge exactly how customers feel and that means that maybe within three or four weeks they may drop them altogether. what this does allow them to do is plan ahead. so this whole space is going to
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open up in a big way behind me. a co-working space, much more seating and potentially a concert venue. you can be going to live music here in early june. that's what's happening in connecticut. for what's happening in tennessee, let's go to cal perry who is in nashville. >> good morning. for a full 16 months there was no live music here in the music city. that has all changed and last friday there was a mask mandate lifted in the city as well as a capacity limit and now the bars and the restaurants have been packed all since this weekend. this is still the number one destination for all parties in america. the city is alive and they want tourists to come here. in addition to that, of course, they're keeping an eye on the coronavirus numbers. 45% of folks in this county have been vehiclesated at least one shot and they're trying to get that number up by running insentives. get a free drink if you show
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your vaccination card. it is to get the economy back up and running and get them spending money and get the city back on its feet. that's the latest from here from new york city and times square, my colleague, gabe gutierrez. >> hey, there, cal. good morning. this is the one-time epicenter of the coronavirus in the u.s. and it's hard to believe it's been more than a year since we were standing here and at the time it was eerie and desolate and now life seems to be springing back to times square. we've been seeing people wearing masks throughout the morning and some not wearing masks and putting it around their chin. of course, many new yorkers still feel the need to wear masks and still required on public transportation and for the first time officially the mask mandate and the social distancing requirements have been ditched here in new york city and new york state for fully vaccinated people, but there are still many unanswered questions, stephanie about where this goes from here.
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the big question how can restaurants and businesses actually know that the people going inside are fully vaccinated. that's an unanswered question and also, what about a lot of parents are asking that new york with the nation's largest school district will fully re-open come this fall, but for right now, again, 14 or so months since the worst of the pandemic here in new york, today is a huge day in new york city with the mask mandate being lifted for fully vaccinated people. >> and we are thrilled. >> you want to know how you can help restaurants and bars get vaccinated. >> thank you all so much. the republican with receipts in the so-called arizona audit. his warning to his own party that he's calling unhinged.
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said the so-called audit of the 2020 election results will go on. her decision coming a day after the republican-led maricopa county board of supervisors blasted this recount calling it a sham and demanding that it be stopped. my next guest is a republican elections official who beat a democrat there last year and now he is speaking out against this audit and the lies about election fraud. maricopa countyecorder stephen richard joins us now. so this audit is going to go on despite all of this. what do you think about that? >> it seems right -- good morning, stephanie. thank you for having me. you know, just like the segment you just did on the coronavirus and the mask mandate, we just wish we could get back to normal. it's been six months since the november election and here we are still going through this, and most recently they accused us of unlawfully deleting files and then they retracted us and meanwhile, that sent us into a tailspin and we just don't know
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what to think anymore and each day it's something new. >> here's what i don't get. republicans lost the top of the ticket. donald trump didn't win. however, you still won down ballot races all over the country, and now you and other republicans are facing threats, death threats. your other employees are facing threats. what has all of this been like? i don't even understand how it makes sense. >> it's bizarre and there are a few logical things that are hard to wrap your head around. i unseated the incumbent democrat who is the chief elections official in the county. you'd think if he was going to rig the election he would have started with his and i don't know what the endgame is because these politicians who are having these not factual statements and this is the system in which his authority is predicated, as well. they're throwing out the system by which they were elected. >> this is your own party. i want to play part of
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yesterday's hearings with the auditors. watch this. >> they have done a great job of adjusting and setting up. when the next forensic audit is done it will be a completely smooth process from start to finish. >> they are taking months to get this current audit done by the cyber ninjas spent, i want to say 150 grand of taxpayer money and they're already talking about the next one. plus two qanon followers are reportedly behind all of this. what kind of precedent does it set? >> it sets a disturbing one and $150,000 is being raised by donors. this could bleed into 2022 and who is to say this won't be done after every election. so will we be in perpetual election mode?
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i don't think that's healthy and americans have election fatigue and this is just being dragged out without a necessarily good reason and it's sad because, you know, now it's getting to the point where we're accusing each other of doing unlawful things. that's when i drew the line in the land is when they accused of hardworking people of maricopa county, the rank and file employees of spoiling evidence and unlawfully removing files and it's just -- that's the state we've gotten to. >> how do you go to work today? >> i go to work because i love what i do. i love the people i work with and that's really what's driving all of this is i want to defend them. these are knowledgeable people. they're hardworking people and they go home and watch the netflix at night or watch the nba at night. they don't deserve this, but your question's a good one because i don't know, what will our election system look like if, you know, everyone's
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throwing it out? and then the real irony will be when some of these same people start running in 2022. why would you run if you thought it was completely fraudulent. do you think fraud doesn't only exist in the presidential race? is that what you're trying to allege? that is confusing or do you think the machines will rig it in your favor this time and to be clear, there is nothing to the dom inonallegations and i still get those because this is a genie that you can't put back in the bottle fully. >> the only thing you can do is keep doing your job and keep telling the truth because light will always beat out the dark. >> thank you for joining me. >> i appreciate it. thanks for the opportunity. >> right now mcdonald's workers in 15 different cities are striking over the minimum wage. i'll be speaking to the owner of a pittsburgh ice cream shop whose business was saved, guess how? raising wages.
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never settle for 25%. always go for 100. bring out the bold™ >> tech: every customer has their own safelite story. this couple was on a camping trip... ...when their windshield got a chip. they drove to safelite for a same-day repair. and with their insurance, it was no cost to them. >> woman: really? >> tech: that's service you can trust. >> singers: ♪ safelite repair, safelite replace. ♪ turn up the volume for this. mcdonald's workers in 15 cities are walking off of the job today. mcdonald's corporate recently said they would raise hourly wages. 95% of mcdonald's employees work at franchises. that means more than 750,000 of them won't see a pay bump. this is happening as businesses
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across the country are debating raising wages. bank of america announced they would boost their minimum wage to $25 per hour. one ice cream shop in pittsburgh could not fill open positions so they raised their starting wage from $7.25 to $15 hour and now they're challenging other businesses to do the same thing. we have the co-owner of the ice cream shop. when i talk about raising minimum wage i hear yeah, but your local ice cream shop can't pay people more than $7 an hour. you can, you did, and it's working. >> yes, first of all i want to say thank you for supporting small businesses and having small businesses on your show. i would say that there is a loop going on here that we are closing. if we have been loyal to our
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employees that pays back in terms of improving business. >> what happened when you raised your starting business to $15 an hour what happened? >> we received over 1,000 application. i think 250 applications off of facebook. we stopped counting once we reached 1,000. we raised the 15 positions. >> has turn overchanged since then? there is tons and tons of turn over and people don't stay long. retraining employees, finding new employees? >> yes, especially in the restaurant business trnover is a big deal and the other issue is burnout. a lot of people work two and three jobs and people are reporting to work in a better
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move. things like that that you don't always account for. >> that makes the quality of work better, you basically doubled your payroll. >> yes and no. from a top line perspective we have more people coming into our shop as a result of raise og our wage because people want to support a business that is taking care of their employees. also our costs are going down as a result of less turnover and we have not raised prices. i have not noticed a difference on our bottom line. >> is it a fair argument to say that you don't have a business model that works if you can't run a business profitably and at the same time pay people a living wage? >> i agree. you're challenge others to change their business, why have
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they. >> i had to study this in depth and really think through how i was going to manage this. and also facing the challenge of right now in the market, better employers are paying higher wages. so i was losing some of my best employees to better employees. so when i figured okay having better people back, bet ere customer retention, churn is lower and things like that you have to calculate and think about all of the items for a forecast. it's not just strict double book accounting. you think v to think all about comprehensive parts of the business and take it all into account. >> i have to ask you what's your favorite flavor? >> i think we have the best chocolate chip cookie dough in the world. >> that's my favorite, i'll have to try it next time i'm in
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