it has not gone wrong. >> steve moore you have to way in gone wrong. >> the bottom line before steve e weighs in, the bottom line is we have to have more on the demand side. i would say a larger and larger supply side. tax cut. >> i listened what you said the last couple minutes, you should be the chief economist for mitt romney he's saying what you're saying, the stimulus didn't work. here is the problem with your keynesian analysis, this is the way it was supposed to work by design. you inject the kbeconomy with higher government spending and borrowed, the idea at some point you can't borrow, what you're saying they couldn't borrow a trillion dollars a year after year, there is no evidence this has worked and it goes back to the point i think larry made at the outset, what do we have to do, robert reich, to convince you that the free market is the way to go? >> what are you talking about? i want to know what you think is going to stimulate adequate demand to create jobs. you tell me. what is the answer, where do you get adequate demand? >> let me answer that question. the one thing

steve moore is a member of the "wall street journal" editorial board.ittle tennis himself. >> i'll take both of you on. >> you've got it. >> now, jared, you know darned well, administrations are going to embrace this. they figure the road to have a balanced budget is tax fat cats and fat people. and i'm here to tell you it will never work. >> okay, it's not about revenue, it's about spending. look, the reason why this tax makes sense is because of the expense to the rest of us, because of obesity in health care costs. three quick facts for you and steve to digest here. and they're good for you, so you can digest these without putting on any calories. first of all, if you look at 16 to 19-year-old kids, 16 to 19-year-olds, three times more likely to be obese now than they were in the 1970s. fact two, something like between 20 and 30% of the increase in health care spending, directly linked to obesity. fact three, there's a big -- there's a big -- wait, let me finish. almost done. there's a big elasticity on these drinks. raise the price by 10% -- let me

we've got former clinton white house aide keith boykin, steve moore of the wall street editorial board and you a thofr "return to prosperity," and we welcome arthur brooks, american enterprise institute president, author of "the road to freedom." arthur, you taught a lot of school before you came to run aei. >> i think if i were his academic advisor i would suggest he take the "f" and change his major. >> indeed. >> what's his major? economics. >> being president of the united states. obviously it is not going well. very least change programs dramatically. start doing some things that are thinking outside the bach in a different way than he has in the past. obviously policies aren't going well and evidence of that is the fact that he's changed his tune entirely. instead of saying that this is the -- set of policies that are most practical that are going to help the country get back on track he's torqued the whole argument to start trying to make this moral case against the free enterprise system talking about nothing more than fairness and inequality -- >> what is it he said that's aga

. >> reporte >> reporter: steve moore is a retired fbi agent. he advocated for the release of amanda knox. and he's investigated jacob's case for free. >> here we are in front of the palace of justice. >> reporter: this is a place of hope for jacob? >> no. no. the palace of justice is a misnomer. there should be an atm in the lobby. >> reporter: what's really happening, according to moore and others on jacob's defense team is an old-fashioned shakedown. bo live yan officials are demanding money. >> here's a guy they see coming in from new york who's got probably a lot of liquid cash and they saw an opportunity. >> reporter: back in brooklyn, jacob's wife myriam packs for bolivia to visit her husband. it's passover and they are orthodox jewish and keeping kosher in prison is not easy. she's packing a lot of food and worrying. >> the way things are there, the justice system, the corruption -- i don't think i should talk about it. >> reporter: they have five children and 11 grandchildren. and the little ones don't understand. >> hello, how are you?

steve moore's on the editorial board of "the wall street journal." items related? >> yeah, jenna. i think the really big news, the one that i get so excited about is that 3.8% mortgage interest rate. jenna, i'm going to tell you something, when you're talking to your kids and grandkids 40 years from now, you're going to tell them there was a time we had a 3.8% mortgage interest in this country because i don't think we're ever going to see that again. those rates are one of the few positive signs we're seeing in the economy. think how bad the mortgage crisis would be right now if we had 10, 15, 20% interest rates like we had under jimmy carter. so that makes me feel really good. jenna: are there enough people out there that can take advantage of them, do you think? >> oh, yeah. yeah, look, the mortgage interest rate is an important impetus to getting new home buyers so, yeah, i think it is helpful. obviously, jenna, you're right, we have all these negative things going on with housing; the high foreclosure rate, the fact that people's incomes aren't r

harris: all right, steve moore, senior economics operator -- >> i am an optimist!nal," silver lining! thank you. >> great to see you. jon: right now, president obama is back in washington, after a secret and surprise quik trip to afghanistan, where he signed an agreement on aur future relationship with that country. the ten-year deal includes training and support for afghanistan's military. what does that mean? lieutenant colonel bill caoan is a fox news military analyst. can you explain it for us bill? everybody wants to know. we're pulling combat troops out. what is support we're giving the afghan government mean? >> well, jon, that's a key word, support itself, what does it mean? i think in the context of us making sure that the afghans are capable, besides the training, it means we have to do more than just give them equipment, and uniforms, and weapons, and textbooks, to continue studying what they're supposed to be learning. we've got to go further in order for them to be effective. i think this also means we've got to work closely with them on the intelligen

. >> steve moore, talk about chortling. what's going on there? >> i think the truest thing that you said, erin, is when you quoted him saying you don't want to be on that pedestal because he has fallen off the pedestal. he has had a great run as you know. he's been a great banker. but this was -- some of the trades were unforgivable and as you said the losses could reach $2 billion to $3 billion. here's where i think the disagree with the two of you. i think this rush to more regulation of the banks and u.s. financial services is kind of the wrong remedy. u.s. financial services are the most overregulated industry, not just in the united states, but in the world. when you talk about a bank like jp morgan it is regulated as you know by the s.e.c., by the federal reserve, by the treasury department and by the fcc -- >> i'm not sure either one of us was calling for more regulation. you have lloyd blankfein asking for better regulation. i think that's what dimon is saying, better regulation would make more sense. i think better internal risk manageme

. >> erin, i was going to say steve moore and i might not be that far apart here. do more government cutting on the spending side, what we ought to do is set a target for unemployment. maybe we want -- you know, maybe we don't cut more spending until unemployment gets down to 6%. when unemployment hits that level and then we hit the austerity button and we have major cuts. before that, the danger is that we create too much -- >> wait a minute. hold on, bob. there's a big problem. a 6% unemployment rate under the pace we're at, we won't have a 6% unemployment rate for four or five more years. when are we going to get the enormous debt down? i guess the point that a lot of conservatives are making, we can't continue to prosper as a nation if we're borrowing $1 trillion year after year as bob reich is suggesting. >> no, wait a minute. i'm not suggesting that. >> respond to that. go ahead. >> everybody understands that if consumers are holding back, if businesses are holding back, if exports are declining because we've got a recession brewing in europe and china is slo

steve moore joins me now, a senior economic writer for the "wall street journal" and he is here. martha i think europe could use some of those super heroes. martha: and we might be right behind them as you point out. >> that's right. this was an incredible election day both in france and in greece. obviously in france they elected a socialist for the first time in about 20 years and greece was interesting too, mart that. i mean you got a big increase in the vote by the communist party the socialist party even the neonatzi party. there is political disarray right now all over europe. and the problem i think, martha is those countries simply can't shed those big, obese welfare entitlement states that are driving those countries over a fiscal cliff. martha: you know, but here is the issue when i look at this. nicolas sarkozy had about a 10% unemployment rate, they had a downgrade by s&p, all of this sounds early familiar to our own situation. he tried very hard to crackdown on it. he evil lee raised the retirement age to 62, where it's 6 a in this country, and that sparked outrage.

martha: is the white house putting green energy ahead of defense in steve moore is with me now.u here. $68 billion spent on these green energy efforts. the big question i think every taxpayer needs to know is what have they gotten for that money? >> when i saw that story this morning my jaw dropped. i couldn't believe $68 billion. that's billion with a "b." not million with an "m." a massive amount of spending on climate change and research. a lot of people are getting rich off of global warming. the big issue is not just how much we spent. as you know, a lot of the programs we spent money on have been things like solyndra, the solar energy company that got $500 million of federal money and went bankrupt. there have been a lot of examples that went bust like that. whether we want money that should be spent to keep us safe and keep us secure going for green programs. >> it does raise that question. there is panetta who has talked about having a green military has also said he's very concerned about the cuts in our military is experiencing. >> that's exactly right. the military is

megyn: steve moore of "the wall street journal" was on fox earlier saying what we have right now is aquote, jobs recession. it's not an overall recession, and if you look at the adp numbers over the past six, seven months or so, you can see it. i don't know if we have this graphic, but in october they created 142,000 in the private sector. november/december it was up around 226. then 182 for january, 228, 201 and now down 100,000 to 119. so it does seem like since early this year we're going in the wrong direction. is that attributable to just a blip? is it, you know, do we expect it's gone down a couple months, it's going to go back up a couple months? >> well, you know, the fed when they came out the last couple of weeks, they expect a slowdown, we had a very warm winter, so a lot of hiring was at the beginning of the year, and they expect it to pick up the second half of the year. to me, i follow trends. very easy to trend this, obviously, going in the wrong direction, and when you have the economic numbers behind this, megyn, showing things are not getting any better, where does t

steve moore is on the editorial board of "the wall street journal," wrote about this over the weekend seeing this pattern repeat itself, steve. texas is a very big state -- not that the other states aren't important -- [laughter] but there's something about texas in this race that really caught your attention. >> by the way, jenna, before we even talk about that, we should note that mitt romney probably will be brought over the top tonight. he'll have all the delegates you need to be the official republican nominee for the president, so that'll be one of the headlines out of texas. but the other big race is the senate race where you have an establishment republican, lieutenant governor, a very powerful figure over the last ten years in austin, ran the state senate, has a lot of money, has the whole gop team behind him. and yet he can't seem to get over the 50% hump because he's got two or three challengers, the main one being a very popular conservative tea party-backed candidate named ted cruz, was -- worked for rehnquist on the supreme court, was the solicitor general, was on the co

martha: thank you very much, steve moore joining us from washing tonight.ury deliberations underway right now. the former senator is about to hear from the jurors in north carolina. martha: it will take them nearly four hours, four hours to float up into the stratosphere and then a couple of minutes to plummet back to the earth. we are talking to felix baumgartner ahead of his fall from space. unbelievable. ♪ i'm free, free-falling. ♪ ♪ you know, we're a little early for this thing... want to hop in the back and get weird? no. family vacation... vegas. ♪ no. no. give it a big yank! really? yeah! [ knock on window ] no! no. ♪ ugh, no! [ sighs ] we can have hotdogs for dinner?! yes. [ male announcer ] in a world filled with "no," it's nice to finally say "yes." new oscar mayer selects hotdogs. made with 100% beef and no artificial preservatives. it's yes food. martha: 41 minutes past the hour right tphoeufplt a now. at least 70 people were killed at a bombing at a rehearsal in yemen. they believe the attacker was a soldier taking part in that drill. the u.s.

here again, steve doocy and cheryl casone filling in for quiz kid martha maccallum. >> question number one, mary tyler moorey, you have to be there. one, you're my friend. two, you will be neutral. three, if you're not there, i will rip her face off. >> i will go with you. >> thank you, mary. >> hi, mary. >> hi ted. >> hello, phyllis. >> bill: now, mary tyler moore showed won precedented 29 records. record was broken by what other sitcom? >> bill: the answer is d, frazier. >> we're off to a good start, aren't we? question number two, the episode of i love lucy where lucy goes to the hospital to have they're baby. one of the most watched programs of all time for a series. >> lucy, you are really serious about this. >> well, i am but ricky isn't. we argued about it all the way home on the train. you know how pig-headed he can be. >> hooray for pig-headed ricky. >> bill: okay. now, 72% of the tv's in america were tuned into the episode where lucy has her baby. that percentage has only been surpassed about one other time by what other broadcast? >> the answer is a, elvis. >> that's not a sitcom. >> the king. th

steve, we'll pick that up next time. stephen moore, wall street journal.o to foxnews.com/"america's newsroom". if you're home or on the job, click on the bya box, shoot me an e-mail, follow me on twitter, because you asked, bya and we'll weed through the health care questions throughout the week. martha: so a change in the skies over major u.s. cities. why unmanned spy drones could soon be watching you. bill: also a live look inside the so-called spray tan trial, why defense attorneys now argue that was not what killed this man's wife. >> there's something happened? did she fall, or -- >> no. >> where is she? >> she's -- >> is she bleed something. >> i can't tell. there's blood, there's stuff coming on the of her mouth. she looks pail. i don't know what happened. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. bill: here is some proof on a monday the american dream is alive and well, a janito

if you are driving caster moore has a nice drive and it is not a big problem as we focus on hayward city and fremont. and nice and quiet gist the way we like it, let's go to steve. and now it is a point raised north which is mostly clear. south of that is sold out on the santa cruz coast line and too shallow to go inland but a sea breeze is starting to show itself. sea breeze is still warm and coming down a little bit cooler busy and up this way it starts to cool down a little bit. already starting the affair feel, that is a big i. they are not a screaming mess and and and still if you are out towards the big valley, as you can see 50s and it is making its impact felt. >> little pattern pattern and i think tonight that fog lifts and fog sun cooler pie the coast mid-70s and vallejo goes 70s an then you find 80s but northbound looks like it will cool down. 60 and 70s and many in locations. wednesday and thursday it looks to be the same be structure. >>> and they listed a column degree he didn't earn but it doesn't mean he should resign. one of the company's gave him the option of firing him. he will threaten to sue if he is not removed. >>> they are laying off wo

steve chenevey. >> i am cynne simpson. we are following breaking news from arlington. authorities on the scene of a water main break near fort meyer drive. parts of that road, 19th street, and north moort affected. the rosslyn metro station is not affected at this time. we will get to lisa baden for the latest in this situation and another in bowie. >> 197, and looked outside and 50 is open. southbound 197 after 50 is closed as they are wrapping up an investigation from a fatal crash overnight. virginia, 66 eastbound delays briefs in manassas, in fair oaks, 95 in woodbrige. look at the 14th street bridge. nice and easy, quiet and over to the third street tunnel is good. now to adam caskey. >> its bike to work day on this friday perfect weather for that. i remember we had a little rain for that in years past, did not work out so well. perfect day with low humidity. you will not overheated when riding your bicycle. there is the crescent moon waning. sunrise at 5:53. bright sunshine not just now but for the rest of the day. it's 41 in the inwood west virginia, 46 in la plata, 50 in arlington, 48 in clarksburg. well into the 70's today sunday, low humidity, pleasant and perfect. slight ch