lou: joining us real clear markets editor john tandy. he's written a new book called popular economics. what the rolling stones, down downton abby recommends to you. let's get to it. this is a deal, we don't know the details congress wants to gift president their constitutional authority, and get an up-an-down vote on anything. what in the world? this is free trade? >> well you have to wonder about when government gets involved in the exchange between people but generally, i like this. i like the idea because all we are in the economy are a bunch of individuals. i like the idea of everyone around the world vying for my business i'm a bargain-hunter. i want the world competing for my business. lou: do you want them going online and becoming the editor of real clear politics? do you like competition that much that we turn it over to someone in romania or india or do your job for a third of what you make? do you really like that idea? i want you to be real honest now! >> let's remember, despite all the low wages around the world, the vast m

steve forbes rich carlguard, carey sheffield, john tandy and bruce jackson. rich what do you make of these lotto comments of the president? >> if he had said everything he said but left out the word lottery, it would have sounded like pope francis. i mean it would have been a good liberal pitch for successful people to pitch in. the use of the word lottery is really revealing of his mind-set that success in this country and maybe even the success of the united states is some artifact of luck. it's one of the most poisonous things i've ever heard a president of the united states say. >> what makes this country great, bruce, is people aspiring to greatness. people achieving greatness. that wasn't a lottery win, that was their aspirations. >> no i would agree with part of that. i would say who he is -- we need him to elaborate a little bit. i think who he was talking about is hedge fund manager whos pay an outrageously low tax rate. in the broader context, on the whole poverty issue, if you think about it a lottery prize after taxes is $600,000. if you're born i

john tandy the great economist put out a great story. when the government spends money that is added to gdp. when the government doesn't spend money gdp is going to go down. you can see the vicious circle that is in there. we have severe crony capitalism. the inspector general who oversees medicare said wait a second, medicare is not negotiating drug recents with manufacturers while medicaid is. why? the slaw written there, you know what? you can't interfere with the negotiation between drug companies and the federal government. what is that about? i'm not sure. neil: what's more alarming to me when you talk to kids of all political strifes political affiliation, blaming it on the parents or generation they have inherent distrust of washington and institutions and inherent distrust of any one authority to get anything done? >> they do that's unfortunate. im a person that doesn't necessarily believe government is the answer to all of our problems, but there is a sort of minimum they think government sets. >> gone beyond the minimum? >> i

let's bring in our panel, jeff reeves and john tandy, "forbes" columnist. jeff, what about this?you think we are on the road to a better economy where the market and the economy go parallel? >> yeah, actually, i really do. and i think it's important to note too not just do we see a good rally for stocks today, over the last month or so we've seen ten-year treasury rates move up pretty significantly in anticipation of a rate hike, about a month ago the ten-year was 1.8, now it's about 2.2. so i think the market is anticipating a rate hike. and while we see some volatility, i think a lot of that can be attributed to earnings, twitter and yelp, of course they got slammed because they had bad earnings reports. i think we are seeing an upwards market, you know, in rates, and the market can move higher. david: so, john, are we getting back to normal with our economy and the markets? >> well, i think we've always been normal at this point. i'm generally optimistic mainly because washington is gridlock. you never have market crashes or corrections. what you have is new information reachi