one of the biggest regrets is not to call it the laffer curve. [laughter] >> the laffer curve doesn't work so that is just as well. >> i am a physician so i learned epidemiology and it doesn't quite work that way. if something a physical thing causes an illness and the first epidemiological study. >> yes i know the story. >> but i was wonder with economics to make a scientific thing that it is not as easy to identify as a virus or bacteria. for example always meeting our expectations with the idea was to break the back of inflation and then get out of people's minds would be more expensive economics can't be based just on math there is a human component. a lot of economics is based on the rational man theory. [laughter] but people are irrational it's hard to make a mathematical formula for that. >> people are often rational. our society works well because there are rational parameters around it breakable you're also irrational. that's why a want to be more inclusive of different approaches. we cannot use a narrow model. >> thank you. >> i guess t

joining us now to respond is the man himself, art laffer, laffer, art, whatever of laffer associat associatesrt it a different way. challenge you on all of the notions that we've had for, you know, 300 years. i still want to challenge you on it what's the problem with moving some of the wealth that rich people have that they don't use for anything productive, let's say, and just solving a lot of the problems that we have here is it, a, that that goes against property rights and western culture in terms of being con physician ka t fiscatory or do you believe people will work less if they are going to be taxed at a higher rate. >> i don't know if they'll work less i'm not worried about it. >> why don't we do it? art, we've got problems, huge deficits people need education. we've got a lot of -- these guys don't need billions of dollars let's go >> we've done it before. we did it in the 1920s we lowered the tax rate to 73% in 1920 to 25% in 1929 and tax revenues from the rich went from about 30% of total tax revenues to 66% huge increase in tax revenues from the top 1%. the same thing happened u

here now is art laffer, former reagan advisor, chairman of laffer associates. what do you make first of all of this number and what does it tell you about the big government jobs number coming later? >> hi, melissa. i don't take this number very seriously at all. looks like right in line and in reason. what i really wanted to say last month's jobs number looked at the establishment number. i think it was up 130,000 or something like that. if you look at the household number it was up 590,000. i would expect the establishment number, the official number to be up quite substantially on friday there is no money back guarranty in my comment, please but i would expect the establishment number to look very good tomorrow. melissa: what would that tell you? you heard all the headlines today that this is showing that the economy is slowing down. what do you think? >> well, what i think the rest of the world is slowing down dramatically. japan added two cent sales tax increase which is devastating to an economy that has not seen prosperity for 40, 50 years. i mean it is

my buddy art laffer who you had on probably is good. long term demographics there. there is not a lot of flexibility. there is reason for your concern stuart: i know you ran for governor in connecticut. there is a slew of new taxes that take effect into connecticut. for example, new taxes on digital purposes, prepared meals. short-term rentals. alcohol, not beer. they're taxing just about anything and everything. i want to know why. >> i wish i could tell you, connecticut even before these taxes is the second highest taxed state in the country. our tax independence day is may 21st. you have to work from january 21st to may 21st just to pay off the tax bill. we had 40 years staffingnant economic growth. what is the solution of this new governor? tax them again. it is beyond prescription here. stuart: itisn't the story state of connecticut desperately needs money to pay retired government workers? they have lavish pensions that the state can't afford to pay, that is the at the heart of the problem here, isn't it? >> it is. tens of billion

neil: art laffer thank you very very much always good to have you.nk you very much. >> oh, that's okay i've been short all my life, neil. neil: [laughter] you haven't aged a day. all right, art laffer thank you very much, from ronald regan, to now this president, all right well the drip drip drip of the ukraine sending joe biden's cash going south. i mean, real south, after this. ♪ things you can do with schwab: you can earn more when you invest your cash. ♪ you can get a satisfaction guarantee. ♪ you can also wonder why our competitors don't offer that. schwab, a modern approach to wealth management. ♪ ♪ neil: it is a drip, drip, drip that could become a drain. the 2020 presidential hopeful named joe biden is not only slipping in the polls, he's also slipping in fundraising. a lot of that could be tied to the you crane mess, but a lot of this was happening before that came to light. hillary vaughn break it all down. >> reporter: hey, neil. joe biden's lead is chipping away in the polls, and donors are not chipping in as much to his campaign. accordi

art laffer, laffer associates chairman and former reagan economist of course.rofits on the market. we're close to record highs across the board. you once made a forecast that we would get 30,000 on the dow. you still feel that way? >> i still think there is a lot to go in this market, stuart. with these policies that the president put into place and, the economy that has been performing, i mean the rest of the world is so far down, that held us down. i'm still very optimistic about the u.s. economy. assuming trump stays in office and continues these policies. i don't see there is any limit how high we can go really. stuart: let me ask you the same question. if voters were allowed a straightforward yes-no vote, you want cheap natural gas, yes or no, i think they would overwhelmingly vote yes. where am i going wrong here? >> yes. you're going wrong on one little one. you're completely correct that the pennsylvania voters would vote for cheap gas but would the ohio voters vote for cheap gas in pennsylvania? that's the question. i don't think that is a big play. bu

former reagan economist art laffer with us now. art, i didn't quite get where she is coming from.t she is not doing, what bernie sanders already has, to say to pay for all of this, you will have to widen the tax pool for the middle class. he argues they will end up getting more than they're paying taxes back, net-net. they're better off. she is not doing that. why do you think that is? >> the jobs this person says will be lost are inefficiencies will be made up for by universal medicare. they won't need those jobs, because those jobs built into the higher costs. i think the economist is incorrect on the total thing. there may be some efficiencies and cost savings because of accounting, everyone has the same insurance plan. but the real cost of the economy, this is a huge transfer payment in the system. and you know, government spending is taxation, neil. and when they do this "medicare for all," it will mean that taxes have to go up in one way or another on the producers and workers. the benefits will be paid to people who didn't earn them. didn't pay for them. so you will find a

art laffer, thank you very much. >> so i'm not so optimistic anyway. stuart: we heard you.>>> want to update the general motors strike in its fourth week. hundreds of suppliers of gm have laid off a total of 12,000 workers because of the strike. the stock is back to $34 a share. anything more on the strike, susan? susan: much bigger overall impact than just the 46,000 uaw members of gm that impacted 150,000 jobs, if you include suppliers as well, parts suppliers. they will probably have the least amount of supply on hand. gm was stockpiling knowing there was going to be this walkout. if you go to take your car in for fixes and repairs, you don't have the parts to do that. that is probably the main concern right now. stuart: when the engine light goes on, you go back to the dealership, you might not get spare parts which he or she will sell you? >> impact is 660 million lost profits. but, michigan has foregone about $9 million in tax revenue, on brink of recession. i which get back to more serious stuff. how about that? stuart: excuse me comment, when the engine light goes o

joining me now former reagan economist art laffer.ack in the day, about six months ago, the definition of businesses were was make money for the shareholders. that is all changing. >> i don't think so. i mean i think when they put out their 10-qs and 10-ks they're looking at bottom line all the way. it will move the markets and discipline the ceos and the administration of companies precisely. you know, they talk about global warming. i don't think that will have impact on share price or retaining of a ceo. charles: this morning when the hearings began with zuckerberg, the first question out of the gate under maxine waters was diversification. he said he agreed they had been weak there. he made a pledge, five years, 50% of that company would be women or people of color. you know, so, i understand that these businesses often give lip service. we've seen corporate virtue signaling, like getting rid of plastic straws. you think there is so much pressure shun on these folks, art, but could the social scoring on the companies matter more t

because larry and steve moore and laffer and all them, who i like all, but let's be clear, they said the tax cut, that we would have actually fiscal responsibility and fiscal deficit has ballooned to north of a trillion. liz: where's the credibility there. >> i like those guys, you know, but i don't think his economics work. liz: larry and i go way back, too, but when i heard him say that, i thought oh, really, larry? et tu, brute? here's the thing. as you look at what's happening, we are bumping up against a federal reserve meeting coming up on the 29th or 30th of this month, october 30th, the announcement will be made on whether we see a rate cut once again. i believe fed funds futures indicate we are at about 89% chance we will see a quarter of a point. however, today, you had some fed heads coming out and talking specifically about that. richard clarida, vice chair, said the economy is in a good place. the baseline outlook is favorable. why then would you cut rates? if that's the case? >> so i'm not in favor of a 25 basis point cut. i don't really think they should do anything. i

. >> i guess art laffer said get ready for dow 30,000 if a china deal. >> i don't see deregulation inles in california we will talk about that wreaking when we come back big tech apple geezer up to report earnings after the bell thrive cupertino, california a preview of items analysts are warming, pain is temporary but home run, it is forever how bud light change one fan sacrificed bones to save his beers, that is next. delivery drones, or the latest phones. no commission. no matter what you trade, at fidelity you'll pay no commission for online u.s. equity trades. at fidelity you'll pay no commission ♪ ♪ i've been a caregiver for 20 years. no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home. epstein investigation. >> dr. michael baden former new york city medical examiner on "fox & friends" cast doubt on official cause of death of jeffrey eps