Cavuto on Business: 8/11/12

This transcript is automatically generated

Call -- the war over welfare hi everybody I'm Dagen McDowell and for Neil Cavuto.

On a week when the Romney campaign slamming President Obama for changing the work requirements for welfare recipients.

A new report says more than 100 million Americans are now receiving some form of means tested federal welfare.

Forget financial freedom is America growing into a culture of dependency.

To -- shots.

Called -- Adam Lashinsky and Charlie Gasparino.

Fellows good to see you -- okay what do you say about this dependency.

Well we're not creating it were already there 70% of today's federal spending is aid.

Whether it's housing students.

You name it it it it's already at this point and the unfortunate thing is.

-- advertising -- we're seeing advertisements for food stamps these days.

We've got to change the direction there is not enough people working to cover all these payments then.

-- irreversible at this point well I think it is irreversible I don't see our got -- -- people who -- on welfare.

To stop eating animals you're gonna be -- -- -- are getting women infants children aid.

To stop feeding their children it's unfortunate because welfare dependency.

Is a debilitating disease -- people's lives.

Really really -- with their heads and make -- -- week.

And that it's very sad this happened but I don't know how to reverse them.

But Charlie did but to this report that don't even include Medicare and -- security and are we at the point.

Of where so many people are dependent you have almost half of Americans -- get some form of.

A federal government aid in this one as I'm losing my voice here -- I will say this sound all that I'll make it through.

Welfare.

Includes corporations and bankers remember that when we start attacking.

Poor people for taking welfare this is a culture where -- fear permeates from the highest levels.

The lowest level so just remember this is a just war you know you poor poor people doing this we've given welfare to rich people to in this country and it's it's it's a shape.

As someone is -- my mom was on welfare as a kid.

My dad was disabled so we we received government checks at certain times in my life my mom grew -- in -- and housing project.

I will say this -- this is necessary and we should we should watch where we draw the line on this stuff.

I was and -- -- dyed in -- capitalist you know that.

But just remember that you know poor people that's been sitting need to eat there's a way to reform the system which I think the president is going in the opposite direction doing.

And we have to realize that it's not just poor people that again this money it's a lot of rich people.

But -- an atom would just focusing on food stamp sit food stamp program in terms of its size -- run by 70%.

Since 2007.

And we have a program growing at such a rapid clip and people are good.

Fired up angry anytime you try and reverse that kind of growth.

This is what we're facing -- -- not continue.

For amber are without bankrupting this nation.

Well I don't know if I don't know about -- dating and first thought wanna say it's nice to see you in the chair I didn't let united.

Charlie -- not a guilty guilty it's not a threat a crap I agree like Charlie a 100% and the if we wanted -- locals segment on food stamps and whether or not a good program whether that's good thing it's growing the way it is we could.

But I think.

The more appropriately we're looking at the whole -- Charlie name that bankers and corporations.

Bennett wasn't that funny I mean it is my -- and -- It automatically -- -- Everybody's I won't let.

Let farmers get subsidies we all drive on beautiful interstate freeways I mean that the list of things that our government helps us win.

It goes on and on and on number one.

This isn't this isn't news from number 20 yeah if we if we think these areas where there's abuse or where it's grown too much -- we should fix it but we shouldn't say.

Well fear is bad government assistance is bad.

Nobody said but don't want -- -- nobody nobody saying of government assistance is bad nobody saying well but exactly what you're -- -- what what exit -- absolutely not what I am saying is the culture.

Of getting bigger and play or is bad and by the way there -- -- -- And it's not a good thing to protect OK I.

You know I mean I I eat your -- at all as you heard what I said I don't think we should be we should be having this debate on the backs of poor people.

But welfare is not a good thing and what differentiates.

What what out of the -- welfare -- would individuals and what goes on now.

Is that you know it's a lot easier now and in the past so much you are Charlie it was it was -- -- it was much more it was much more pressure to get off the quicker.

And because we -- the and I think that's the problem is society.

Almost suggests that it's a good thing and it's not a good thing and that that's I think that's what a debate -- to go Adam.

But it's assistance you know is a good thing they've language here is what's important right like and and I used ones one very simple example I mean.

Having the government play a role in having smooth high quality freeways.

Is a good thing and that if you wanna call that welfare while then that would that would well let's let's -- should get out of those wrote -- -- What -- -- to pay for with taxpayer money so it's not a great.

But -- let's but -- but let's focus on a bed world payments to individuals the that are totally different than that well but I would never again.

Tax in this country's gas and let's not talk back at.

Exactly right exactly right.

Highways are now welfare of the people driving them pay for them if the welfare -- paid for their welfare would do well there so it's a totally different thing and it is.

The very unfortunate that people need and and it's very got to be very very bad loans they don't get all that and be self supporting of their own contribution you'll be very badly their heads.

But then -- -- that ever it's been lowering the bore for well they are for many years now that itself is another problem.

But we gotta get back to the point there was too much talk about how -- -- a for all this -- -- not how to get people awful well absolutely and it's education and into jobs and when I watched -- that the president on the stump.

All he's talking about is.

Raising taxes the paper this I don't hear much care -- -- was Gary the problem Gary.

There was a debate about that about 1015 years ago it was led by people like Rudy Giuliani.

And mayor Rendell and Philadelphia.

And you know god you know.

-- good Bill Clinton and you know that was right -- fifteen years ago where you did have.

Legitimate welfare reform where people -- talk about how to get people off welfare or -- work for it.

That is the problem at the Obama administration -- it takes it takes so it takes -- of the it basically doesn't address these issues in granular way it has -- yes people need welfare but how do we get a Moffitt and this is not the president that will ever have that debate -- bit.

And -- Paula -- any politician ever be able to fix this because all of these programs and I'm talking about -- security.

Talking about Medicare I'm talking about all of it at what point did these security blanket because -- it when they first start their very warm and Fuzzy.

At what point -- they turn into straight jackets for this country where we can't extract ourselves from them and we do wind up broke.

Love my father used to say of -- thing cannot go on forever you'll stop.

And so this this cannot go on forever and we'll stop but as as my fellow -- environment respectfully blow them -- like -- when our parents.

If we only do what we can do forever we won't do very much so we've got to make sure people are not going hungry in this country.

But there has to -- some got to Bruntlett and Bill Clinton led the -- -- as as.

As light on -- don't need to show Regina Taylor guitar case from the language it came from the states well avoiding Rudy Giuliani.

People like majority of people like Rendell he took up the charged with the Republicans whether is that congress and I was say there is what's scary about what's -- EA did a good job I -- older -- what's scary about this debate.

Is that were actually having it.

After the fact of the 1990s when the whole country both political parties was moving towards welfare reform.

Now under President Obama it's like -- -- we've gone back to 191970s.

It's really scary.

-- -- seventies radical.

And -- well I guarantee you say you're gonna get scarier as more Americans retire and more Americans stopped working gentlemen don't know -- -- -- And you see this guy right here the Forbes -- says he just did something for schools in his day.

They could change classrooms across America they've got the lesson plan at the top of the hour but up next -- more jobs now.

Let's start cutting taxes now another big time job creator the all important thing is the White House listening to -- we report.

We decided.

The happiness place on earth not too happy about high corporate tax rates Disney CEO telling Fox Business this week.

Which if you don't get by the way you better.

Demanded.

That America's high corporate tax rate has to change for job creators to start adding jobs again.

Gary K if you cut it.

Will the jobs come.

Absolutely look even the president's jobs council back in January said we need to cut rates I have -- -- when somebody.

And an icon of business like Bob Iger says so.

You should be definitely looking into and it might see Ireland -- 12%.

And Japan which is up at 40%.

And look how bad Japan is doing it tells you things need to get done.

Lower.

Income rates for the corporations definitely -- the jobs I'm Bob -- sets out.

And is that does Bob biker.

Gasparino it is everybody under the -- and Irene residents honestly -- crap this aspirin is talking about getting their income tax twice overseas.

I didn't wanna know why nobody's doing anything well if -- they -- as a calling for well first of CEOs are not the best spokesman right -- for it.

Continued its age.

You don't be mean you know we built an entire segment around -- so -- has -- -- -- that nobody is -- You're if you're asking why there's not political momentum when Bob Iger says -- -- because it's Bob -- OK that's the that's the problem to CEO.

And it's not gonna come from him I will say this.

If you just -- -- corporate tax rate I don't believe that in of itself will create jobs you need.

A bigger broader environment you need something along -- up to that event that reforms the tax code you need something along the lines of the president's own commission.

Two to deal with the state Erskine Bowles Simpson commission some along -- lines with Paul Ryan proposed.

And that stuff is really difficult I don't think he could just change it by lowering corporate tax rate of course it's out of whack with the most of the world it's higher than most places.

Except for maybe what Japan and the wonderful Conley they have in Japan but you need to do this in concert with a lot of other stuff.

I would Japan lord there's two we now actually as a nation have among all the developed nations have the highest higher than Jack Hanna is higher than Japan now highest corporate tax rate.

In the entire country.

-- -- and Adam are you raising your hand.

You have -- guy on there you know that that the thing is and most reasonable people would agree that it would be a good idea to lower the corporate tax rate the question -- is what to do next so.

These same CEOs who want -- corporate tax rate -- you say to them all right well how would you feel about the raid then raising your earned income tax credit your R&D tax credits.

The other subsidies that you get that are offsets to the federal treasury and they -- All -- all we don't want to go to.

-- and 3M said if you lowered our corporate tax rate to 25% I would be willing.

To give up say your research and development credit and some of the other handout -- companies dad he's in.

Even when he's in the minority on that there is no consensus on that all I'm saying is I certainly would be in favor of lowering the corporate tax for -- but that wouldn't be the only move.

You -- -- make again I don't like going after -- because I and I'm agreeing with most of what he's saying today -- erode -- Scary then minus -- Well Bob Iger is a fine fellow drivers -- government -- laid eyes on his mind woman.

But they're not economists are not experts in this field I don't know there's any data that clearly show.

That there's a correlation a causal correlation a lower garbage actually into the higher employment but also.

Where is the money -- number on the treasury is running a deficit of close to four and a half billion a day roughly that's not that exactly roughly that.

Where's the money gonna come from we've we've we've got to raise taxes in this country not lower them and by the way we -- in an environment -- it -- very -- -- In all seriously at all -- you would would you raise taxes in an environment on cooperation.

When unemployment rate is -- -- 8%.

No I would not -- certainly -- is on high income individuals lemon.

Saying that on this dozens of first I was on and I'll keep saying it.

-- -- -- -- -- -- -- -- Bob -- runs a far flung business and travel in all kinds of things.

TV movies you name it.

He doesn't have an agenda he has not gonna come out and see if so they can to save money he says this is an agreement jobs I'm -- I agree with Gary this -- How -- the easy enough that you have to do other than that most of -- -- -- look.

Most logical thing to do -- forget about raising taxes on wealthy individuals always turn out to be people.

A family of four that that makes 200000 dollars in -- I would think about this the most logical thing to do here this tax reform.

And Bob Iger and all the CEOs won't even talk about it they won't talk about it it won't talk about plugging loopholes while -- -- sit out.

That aren't talking about -- hey I got in Washington just a much a relative context purple I don't know they -- and -- it -- -- -- symbols that any of them support.

Corporate tax on -- we're talking about when you need to get this -- -- country.

Going it just cutting the corporate tax rate -- -- what -- -- -- right where's the quarreling we're really gonna notice the -- The reason that that we're talking about tiger is that he's he's he's been a donor to the Obama campaign is a well known Democrat so for him to say I couldn't hear what -- even.

Then in a Democrat we see yellow somebody's not going -- now and you know why -- unit this week could that happen this week.

That's why we're doing -- and a -- About it right -- -- -- day against.

I will point out that it's not feel we have problems with the US economy but it's not the people aren't putting jobs Jeremy look at what all the European and Asian.

Auto manufactures are doing in the United States has the complex issue.

Thank you.

Adam.

If that's the unfortunate thing Yale in the other -- -- will be back next block them from -- that he's out there all over again when it comes to spending your cash under the green energy.

Millions of -- already blown on green lines now billions more could be.

Just in the win.

What is enough.

Enough apparently it's never enough when it comes to spending your green on green energy plants.

US giving -- two billion dollar line for renewable energy projects but get this the loans are going to projects.

In South Africa.

Then -- -- Sliding as part of a giant plan the administration has to pay people embargo and to change their output of and -- gases.

Because they're afraid of global warming is over that incident -- -- judgment is more and more scientists are coming out reserve secretly.

Not going to have a -- really saying we don't believe in this global warming stuff.

And yet they're not labs and probably is not allowed revolver guys -- agenda and we just keep pouring tax money.

In no final which may be based on -- -- and Greg scientific data -- interpretation.

Adam visit this -- that's being given to South Africa why actually go to buy our exports so again if you can't solemn.

Can sell these -- energy.

Products there why not make alone so somebody will buy him.

Right I'll I'll I'll attempt to talk about the actual subject at -- -- in which is an ex im bank program together -- and -- similar -- -- the south African -- To buy stuff from US manufactures this is exactly what the Chinese do and Africa and everybody says all good for the Chinese there helping Chinese industry.

This is trying to help US industry not help.

The south African but it it -- it doesn't failing industry and Ali to that point it what you have to be so specific about it -- to be green projects.

I mean think about it this kind of absurd and we were trying to support an industry that that doesn't really work up.

We should point out that the reason why everybody from people who couldn't bad.

-- he -- like Bob -- are so worried about this administration be reelected is stuff like this.

We have massive spending problems here we -- people talk about higher taxes in this administration here.

And we're subsidizing this this is what scares business to -- about the Obama administration.

And -- -- Gary -- two million dollars that's almost the cost of this though this Mars expedition and -- at least we got cool pictures out of that.

Looks like a party you would have been looking at.

I don't think they even care I don't think there's any accountability.

Two billion dollars is less than what they doing deficits on a daily basis.

They'll be no accountability on this who knows if they'll even buy anything it just -- as you he says nobody -- no accountability on it compare because it doesn't mean I haven't okay and here's why we know it's not yeah.

It's a trillion finally here's the good guys here's -- -- -- summed up in one word.

-- -- -- -- now I -- not something up in one -- anyway.

-- work.

I'm so belligerent and Charlie thank you start Charlie Gasparino will have your -- gets better but you sound -- -- -- Solyndra I didn't say that yet again.

Up next -- stocks are soaring now.

Think again the name set to leave this market.

To new -- Stocks -- to -- the market higher for the rest of that you.

-- Adam what's gotten.

Electronic art stake in this this -- giant has been having her off time but there arts competitors social media Zynga is having a rougher time -- -- be good for EA which isn't that expensive.

Well this is a dog -- what does -- think.

It's a big dog just -- relative strength and totally inconsistent earnings up completely off my radar screen what do you like -- Ought it to -- -- court they really are dominating the Internet what with all they are all web sites and then who really good 2530%.

Growth rate in great relative strength I like it here I think it's got a -- next six months to a year ban your comment.

I'm not a fan of Internet stocks by and large are jealous of -- so and I'm not a big fan of Barry Diller although he's a neighbor but.

God bless them liable works welcome -- -- what's your pet.

Well I had dinner last Friday it was Warren Buffett he's the smartest person in the world.

-- -- -- is really good -- -- Berkshire Hathaway.

And Adam when he -- with the.

-- -- -- disagree with Ben or Warren -- but it's unlikely is -- -- right yes I remember a very long time.

Well I love all three of you gentlemen for more than at Warren Buffett and another man I love David -- he is up next nailed back.

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Cavuto on Business: 8/11/12

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Clips

Cavuto on Business

Lone Star lesson for President Obama?

Job market shrugs off dire sequestration predictions?

Did Boston bombers derail 'Gang of 8'?

President's budget hits 'under $250G' crowd

Uncle Sam to make house calls?

IMF pushing gas tax to help save environment

Congress forcing cash-strapped Postal Service to spend money

Obama doesn't view debt as immediate crisis

Unions win major fight with Walmart

Sequestration scare tactics overblown?

New middle class tax hike warning from key Democrat

New DC spending push ignites worries about price tag

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