fox business's own tom sullivan, "barron's" senior editor jack hough and "wall street journal" simon constable. tom, do you agree with this? >> yes, because the consumer spending has been going on has not been done by most people. it has been done by top 5%. they have the money. they're out buying things. things wear out. they go on vacations. everybody else, we all know that the middle class income is down and continues to go down. melissa: yeah. >> no, it is not the middle class and that's walmart's customers. melissa: zoom mon, why do we want people going out spending all they have? -- simon? >> 66% and 70% -- melissa: maybe that is not healthy. maybe that is how we got in the mess first place? maybe that is why we houses as piggy banks. >> highest standard of living by far than anywhere else. it will get worse. if the fed has its way, higher inflation and not wage growth, people will be strapped for cash and spend even less. >> too many of walmart's customers look like walmart workers. they are in jobs paying 8, 9 bucks an hour. amazon getting a free pass from wall street to opera

fox business's tom sullivan and dan schaefer of schaefer asset management. tom, what do you think? >> i like pepsi. one of my all-time favorite stocks. revenues are up. profit margins are up. the income is up. melissa: yeah. >> there's -- melissa: but they're telling us that the economy is not up. >> i know. but they sell things and dan follows this better than i do, i mean you know you get into the consumer staple sort of thing, i think in some cases frito-lay may be a consumer staple. people buy that in good times or bad. they are just a well-managed company. melissa: dan what do you think? what does it tell us about the economy. >> i think she is giving as you warning shot across the bow. because they're international, so we have international and european markets are a lot slower than ours right now. there is this underlying concern about the quality of food, that people are beginning to wake up what the chemicals are in our foods. that could eventually cut -- the profits were not that great. melissa: ready to give up fritos? what do you think? you don't eat any fritos. >> i do

tom sullivan is back with us. we have jack hough from "barron's" and simon constable here from the "wall street journal" we're a business show. let's talk for a second about malaysian airlines. it is amazing to me that we are talking about them again. >> state-owned. melissa: we're saying here they are flying over an area that is a war zone, when the faa had said back in april not to fly in this area. >> it, it is a state-owned airline so there is, for the country to worry about. melissa: right. >> as far as their aircraft and everything else. but, i looked at radar map right after i heard the reports about this and there were planes from all over the world flying over ukraine. if you're an airline, the most expensive thing you've got is fuel and so that is, if that is the most direct route, there were planes all over the place from every country hither and yon, not u.s. aeroflot was over there. swissair was over there. there were a number of them flying over ukraine right after this happened, which says they're t

tom sullivan hosted president obama. would you do it again now? >> yes. i would do it again.publican and democrat. it is not obama. you guys always go crazy on obama. stuart: it is a president of the united states at a time of international crisis. a crisis on the border. the president is raising money. would you do it now? the president of the united states. are you making the judgment? should it be in your house raising money at a time when the border is doing this? i am asking a very simple question. you would feel comfortable with the president of the united states in your own home raising money? >> yes, i would. i am 100% against that. the income inequality, everyone in this country, if they have the ambition to work hard, they can be a millionaire. they can do very well. stuart: the president of the united states is out there pushing for a much higher minimum wage. he is pushing for much higher taxes on successful people. you are raising money to help him do it. i just do not get it. >> i am not for everything that the president does. stuart: i will ask you this one. i

tom sullivan here with me in new york. good to have you both. let's focus on one thing., why isn't the president enforcing laws, securing the border, why is there such a gap between what he says and what happens? >> why isn't anybody? i am more than happy to put the president in the front of the line. it is his job. their responsibility, and i was wondering when rick perry was going to do something. i know it will cost a lot of money command and know what is a federal issue, but at the same time, if you're going to protect your state is in the national guard worked for governor -- missed it up and cheered when he finally said find bluebead we will send the national guard down to the border. lou: of this cost governor perry ? >> i think it raises his stock. and i believe that the governor now is looking far more presidential that he did last time. texas we understand, we have got to protect the border. this is our responsibility. i was down there a couple of weeks ago. i saw what they see. you're absolutely right. this president refuses to enforce federal law. in texas, w

melissa: fox business's tom sullivan joins me on this one. that is pretty ominous. just dumping people in the state and not even telling local officials that they're coming in. makes it seem like they're trying to keep something secret. the white house says, you know, they are protect the children. they're protecting their identities. do you buy that? >> i don't. we're getting mixed reports because this congressman, bridenstein from oklahoma, who went to fort sill and they said, mr. congressman, you can't come in and see anything. it's a big secret in there. and yet we've also heard from congressman cuellar who in texas went to a facility and debt get n we're getting photos from someplaces where you see the children. we're putting them up every so often. other places it is a big secret. the problem with this, and ties in with the whole comment from the white house, they're the most transparent administration ever, why anytime, just seems like, hello, bureaucrats, get it through your head. anytime somebody starts being evasive with you you will want to dig further. m

. >> real quickly, i see you have just engaged tom sullivan to assist. i think that's a good move. i want to make sure we're adequately representing the insurance industry. especially with international capital standards. >> well, i said that if international standards are agreed to, nothing becomes -- >> we're not compelled to do it. >> nothing happens in the united states until we go through a full regulatory -- we're sitting at the table, and state commissioners are there with us. >> good. >> we consult with the federal insurance office. >> i've got one little quick question. the president said, if you're one of the big banks, you can make big bets. that's going to require some further reforms. take an additional step. have you talked to the president about further reforms? >> no. >> do you think that dodd frank is appropriate in terms of what the market has changed so far? >> now, mr. royce. >> chair yellen, how are you? >> i'm good. >> glad you're with us. i want to go back to the question of the unsustainable path, as you mentioned, of entitlement spending. we've known about

a federal judge apparently agrees with tom fitten of judicial watch filing suit against the irs for their targeting of conservative groups. judge emit g. sullivan an irs official. he did not specify who, must swear in writing under oath in the next 30 days about lois lerner's lost emails and computer crash. he also ordered irs officials to explain how lerner's files may be recovered through, quote, other sources a big development. elise? >> that's right. i hope that i think that many americans hope this will take it out of the discussion. steve stockman a conservative in the house filed a resolution with speaker john boehner putting pressure on him to in fact arrest through house sergeant. exerting its wing. putting pressure on john boehner in order to take action against lois learner. >> john sullivan means business. he wants an answer under oath. he wants it in writing within 30 days. no ifs, ands and butts. >> apparently the irs commissioner is glad to come talk to the judge as he did the hill, so he will get that what's interesting here though i think it's exactly what elise said. you are going to get a judge refereeing this issue because i

that's dan sullivan who is one of four gop primary rivals committed to more energy production and booting begich. in colorado mark udall opposes keystone. in michigan liberal billionaire tom styer super p.a.c. is making the environment an issue. the democrats senate candidate is congressman gary peters. >> this is about our nation's independence. >> reporter: michigan republican secretary of state argues democratic opposition possible energy development makes u.s. independence from foreign oil more difficult and undercuts the economy. in maine green politics by the opposition could help re-elect republican incumbent governor. his democratic rival backs climate change legislation and so does a third candidate an independent who helped draft the clean air and water acts back in the 1970s. he could take democrat and green votes. democrats are trying to energize liberal voters but opposing energy development under cuts democrats in energy producing states and could end up helping republicans. >> we'll have to see, carl. thank you. >>> tea party republican who lost last week's senate primary in mississippi will challenge the results. chris mcdaniel says in an interview his cam

-- guest: it was in mississippi, but we're involved with dan sullivan in alaska, who's got a primary coming up, and we've got congressman tomcotton in arkansas, who didn't have a primary and is going against a democrat. host: back to your call, mayor friday ohio, democrats line. good morning. aller: good morning. caller: the last time it was increased was 1993. that did not go into the highway trust fund. that was part of the omnibus budget reduction act toward deficit reduction. then in 2000, they put that money back into the highway trust fund. there was seven years of gas tax collected that did not go in to the trust fund, and that's the reason we've got this mess today. guest: what can you expect from politicians in washington? let's not let them get their hands on it in the first place. the idea that we just need to tax more or grab money from some different account here in washington that doesn't exist anymore, you're just going to increase the debt even further. i think voters dislike a higher gas tax, especially now that the economy is still struggling, and two, more debt that congress -- i mean, they don't have the