Transcripts For CNBC The Kudlow Report 20131011

Good evening, everyone. Im larry kudlow. This is the kudlow report. And we are live with you, everything you need to know heading into what will be a very important weekend. Lets get an update right away on the negotiations to get a deal done to raise the debt ceiling and end the shutdown. We go to nbc newss luke russert. He is live on capitol hill for us this evening. Good evening, luke. Reporter good evening, larry. A lot of optimism today when it started and came to the knowledge that there had been ongoing negotiations throughout the night between staffers for the House Republican leadership and the white house. But there is still no deal to report. Weve seen some different frameworks. First, the House Republican framework. They would have a thing with two tracts, an extension of the debt limit till november 22nd and a separate funding of the government. The extension of the debt limit would be done in exchange for large scale negotiations, figure out a way to address the large scale deficit drivers of debt. Then you have another tract which is from the government dill december 15th. Its unclear what the white house would give. Then youre starting to see some action on the senate side where Susan Collins of maine proposed repealing the medical advice tax, having it paid for and a sixmonth government funding bill as well as a sixmonth extension of the debt limit. Youre seeing two divergent trains here. Its unclear which one will eventually get the votes. We know that harry reid is opposed to the sixweek strategy brought forward by john boehner. Its unclear if john boehner could get that strategy out of the house with only republican votes. From where we stand right now, there is still optimism. But the prospects of having a deal as early as tonight or tomorrow, they dont look too good. It could be monday before we see some sort of vehicle in order to extend the nations debt limit. And how the markets react to that i think will really make or break whether or not to get a deal done by monday night. I think the polling data has shaken up the republicans. Were going to talk a little bit about that in a moment. But let me just ask you, i just interviewed senator collins, going to be on in just a few moments. I know shes contributing very important ideas on verification and ending the medical advice tax. Whos she negotiating with . Is she talking to democrats . Is there any process thats been put together, conferees inside the senate . Reporter its not gotten to that former level. The negotiations have been between more of the staff levels. Its still very much a fluid process. But what i can tell you is that i suspect that from where the president sits with this recent polling data showing the republicans branding a huge hit and hes backed them into a corner, i dont see why he would except a sixweek deal from the House Republicans. I could see him trying to work out a deal with the senate, six months, longer. They repeal the medical device tax. Have them change the Health Care Law in terms of verification for those who enroll, whether or not they should be able to have a work requirement. But while they might target the law and reneges on the idea of he wouldnt negotiate gives them a better play and puts the House Republicans in a difficult position. If john boehner is given a bill thats bipartisan and its take it or leave it and he leaves it, the republican brand could be as good as dead going into next year. I agree with you. I think thats exactly right. Thats one of the drivers for this whole process. As always, many thanks to luke russert. Before we get on with our show, i want to tell you how relieved i am to see that the house and Senate Republicans are finally going to climb out of the ditch they made for themselves with the Government Shutdown and the threat not to raise the treasury borrowing limit. May i say, these tactics never work. In fact, they are temper tantrums, not tactics. I assume every republican in washington can see the catastrophic polls where republican approval at 28 , the lowest in the history of the gallup poll. And the gop registered the lowest marks across the board from the history of the wall street journal poll. 70 of americans blame republicans for this budget battle. 70 . And you know what else . Not only were the gop geniuses wrong, that the public would be behind them to defund obama care, they were wrong to assume that millions of people were going to flock to washington and protest and that the president would even sign a bill that, by the way, would never pass anyway. Many gop strategists ought to be ashamed of themselves for their misjudgment and potential damage that they may have done for the 2014 elections. Meanwhile, all of this unnecessary interference with Government Operations in debt has obscured the catastrophic opening of obama care, which should have been the front page headline. But it has not been because the story is the gop is fiddling around with the debt ceiling. Republicans have not been able to tell the disastrous obama care story. They got hung up on other stuff and now its time for them to get out of this mess, lock, stock and barrel. Get out of the debt ceiling mess and get out of the shutdown mess. Final thought from me, republicans should be pushing for Economic Growth policies. Take this paltry recovery from 2 to 4 with some supplyside tax reform and disciplined spending and entitlement reform. This should be their message. Hopefully now the party is going to come to its senses and figure all this out. I say hopefully. Joining us now is house member scott riddle, republican from virginia. You put together your own plan. But before we get into the details, in your plan, you have, reopen the government. That was almost a revolutionary thought when you put this thing out a couple of days ago. For the life of me, i dont understand how shutting down the government would be on a separate track with the debt ceiling. I never understood that. Will the gop now stay on both tracks . Reporter im a businessman. I said we ought to open the government on october the 1st. I sent out a tweet at 9 30 a. M. Because i assessed where this was going to take us. This strategy weve been following. I told my staff and everyone who would listen, this thing gets worse, not better. Its going to put us in a putrid environment. Thats where we found ourselves. Your assessment of where we are and how we got here is accurate. What we really need to do, to swing that radar out farther, do whats right for the next generation of americans and deal with mandatory spending. Thats what my America First plan does. I appreciate the opportunity to talk about it. First of all, you also want to extend the debt, which i think is important. Everybodys on board with that. Let me ask you about some more controversial things. You want to repeal the medical device tax. I think thats great. You do, however, put in a plug of 100 billion in new revenues. Absolutely. Im curious, what are you referring to on that . Principally its limiting deductions for highincome wage earners, those that are making 1 million or more. Heres the reality. Republicans we voted for some spending that were not yet willing to basically get the tax revenue to pay for it. Thats the fact. And our democratic friends are no better. In fact, i think theyre really driving this business not responsibly addressing the spending side. Anytime we try to touch mandatory spending, they go apoplectic on it. What ive said here reflects two realities. It reflects a Financial Reality and it reflects political reality. But i would say this i would suggest this. Im a ronald reagan, jack kemp, paul ryan suppliycider. Why not go for fullfledged tax reform. The problem i see is you want to raise revenues by putting the deductions in on the upperend people. Thats what the democrats want to do to the 5th power and weve already had two major tax hikes this year alone. Larry, let me respond to that. This is my first elected office. I went right from running my own business, entrepreneur, to coming here. Ive been here 34 months. And this idea of comprehensive tax reform, i fully support it. But its elusive. Its all the way around the corner. Every time we try to deal with it. What ive presented here with the America First plan is a practical incremental step. Not saying it will fix america. But im saying i want to show that this institution, the Republican Party, the Democratic Party can come together and deal with at least some level of mandatory spending, start to get ahold of this, larry, because if we dont, you talk about it all the time on your show, it truly does threaten the foundation of our recovery. Im with you on that. Im also with you, by the way, in getting rid of the deductions. But where we disagree is i want to lower the marginal tax rates on the other side. This is for individuals and corporations. I think thats a matter of progrowth way to go. One of the things i want the gop to do, scott, i appreciate you coming on the show, i want growth. I want growth policies. I want people to talk growth, not austerity, not debt ceilings, not shutting down the government. I want growth. Absolutely. Look, energy is the principal way to do that. We can create 18,000 jobs right there off the coast of virginia for local residents in hampton roads, virginia, norfolk, virginia beach, if the administration would get out of the way and let us leverage those resources that are there. The governor wants it. The General Assembly wants it. Two u. S. Senators, both democrats want it. I ran on it. The administration is holding us up. I love the energy story totally. Many thanks, congressman. Now lets begin our expert free market panel for this evening. Here now we welcome former congressman martin frost. He was a democrat from texas. John fund is here, columnist for the national review. And kellyann conway. I may be too hard on him, but i think this whole bloody shutdown debt ceiling thing was one very big mistake. Youre entitled to your opinion. It certainly got the president s attention. Your points are correct in that theyve got to find a solution. Ive never heard Speaker Boehner say the october 17th deadline is not real. Ive never heard him once intimate to anyone publicly or privately that he would allow this country to go into default. I take note that the president s polling numbers have also fallen. Hes lost a ton of credibility over this. And hes now locking arms with john boehner. I havent heard harry reids name all day. I think thats very purposeful. Obama and boehner seem much more reasonable. Harry reid is like, hes the only mormon ive ever met with a potty mouth. He insults john boehner, insults ted cruz, insults the tea party. And theres no way to negotiate like a grownup. I think they will come to some kind of deal and well put the focus back on obama care. You cant perfume that pig. Its a disaster. The majority of the country is against it. 16 of the people in this country are going to benefit. Ive never seen a time when shutdowns or messing around with the treasury debt has ever helped that party do it. But i want to ask you, marty, democrat that you are, youre a very powerful and influential democrat when you served. Is kellyanne right about the harry reid problem . This guy could be his own worst enemy. The democrats have made a lot of mistakes not negotiating, for example, the military benefits, for example, not signing these shortterm spending bills. They really have done all they can to help staunch the republican bleeding. Look, harry is a tough, tough guy. People tend to underestimate him because he looks kind of meek. Hes not meek at all. I understand why hes doing what he is. Well see how this plays out. I was chairman of the Democratic Congressional Campaign Committee in 1996, the last time there was a big Government Shutdown in 95. You would think the republicans would have learned some lessons from that. They lost nine seats in 1996. They could lose even more than that this time. I mentioned on your show about a week ago that they may be working hard to make nancy pelosi speaker. You poopooed that at the time. But the polls show the republicans have made a mistake. Maybe they can get well. The election is not for another year. But this thing has to be brought to a conclusion. Youre right on the merits. They need to get this off the table. John, i dont want to obsess about polls. Polls are polls. Real votes are more important than polls. But ive heard for weeks now that the republicans were doing well, that everybody hated obama care. Turns out, they hate republicans more than they hate obama care. Thats why ive emphasized this. Ive never seen an opportunity, a moment when messing around with the government and messing around with our federal debt has been good. And i want to ask you, have they obscured their real message, their real message, which should be a progrowth message across the board, including rolling back and ultimately getting rid of obama care . Well, i dont think their message before the shutdown was that clear either. Right. The timing of this is bad for the country. Ill tell you why. The president and harry reid and nancy pelosi now smell blood. And theyre going to be very few changes or reforms around the edges in order to get out of this mess. Rather than have grand tax reform or a grand bargain, the odds have gone up dramatically that its going to be trench warfare heading into the political season. That means bad news for any immigration bill, whether small or big. It means believe me, there were a lot of nervous democrats on obama care. Privately, a lot of nervous democrats know obama care is, shall we say, problematic. But the chances of convincing the president to go along with any of that are gone. The republicans stepped on their best line. Right. What is the enemy of growth right now . Its uncertainty, high tax rates, policy obama care regulations. Epa regulations. All of those are now more likely to be static, not changing for the next 14 months. Thats bad news for the country at least ryan i give ryan credit. Ryan wants to make the good fight on the progrowth issues. Its the first time ive heard that from a republican in i dont know how long. Its been such a terrible summer. I have to give ryan credit for that. I know its not going to get done. I understand the democrats dont agree on entitlements or tax reform or obama care. I get that. But at least you have to make the best fight you can make on the issues rather than getting diverted with all this other nonsense of global defaults and the rest. Larry, what happened in 1996, congressman frost should have put a semicolon where he put an exclamation point. Bill clinton after vetoing welfare reform signed it into law. They got entitlement reform by pushing it. Nobodys suggesting that shutting down the government is the way to do that. But the republicans held onto the house because they held their ground. The last time we got major entitlement reform was in 1996. Lets not rewrite history. Youre all going to come back. I have to take a quick break. We have to get your money. How do you manage your investments over the next couple of days when the slightest little political move could really shock the markets . Well look at the Market Reaction today which was pretty good, including the steep drop of gold. And later, the Obama Care Health Care Exchange signups are still a disaster. The exchanges still a disaster. Its been 11 days and were still seeing massive screwups and very few people successfully signing up. We have to ask when is somebody going to lose their job over this disastrous obama care . And that person should be, i think, kathleen sebelius. But well see. As always, free market capitalism is the best path to prosperity. Ill say it again. As a reagan supplysider, thats where the Republican Party should go. Free market capitalism, dont mess with global debt and all the rest of it. Well be right back on the kudlow report. Americans take care of business. They always have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial does. Thats what they can do with you. Ameriprise financial. More within reach. Thats what they can do with you. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit card. Whered you get that sweater vest . Your ford dealer. Welcome back to the kudlow report. Im Courtney Reagan with this market flash. Another good day for stocks. The dow adding another 111 points today. The nasdaq up 91 points. The s p 500 up ten, closing back above 1,700. We also want to show you gold. Today down nearly 30 an ounce. Part of it certainly a reaction to hopes for a deal in washington. But there was also a weird situation this morning. A huge order to sell gold futures went through. Gold fell so far so fast it had to be halted for ten seconds to replenish the liquidity. Many thanks, Courtney Reagan. Appreciate it. Lets go to don luskin. Youre an optimistic guy these days. I am. I said buy stocks and sell binds. This crisis was going to be another opportunity. I think were in a very special situation here. Over 2013, investors are learning bad things can happen, these risks can happen, Government Shutdown, debt limit threat, sabres will be rattled, but were learning these things do not have to be systemic. They do not have to lead automatically to global contagion. Not everything is the next lehman. Were going to be through this crisis in the next couple of weeks. Its going to be sfin. When we have faken that punch and the world Banking System is just fine, thank you very much, this isnt greece, this isnt lehman or aig. Then we are going to be get back to the business of real growth. And we have not seen that in six years. Investors have forgotten what it looks like, larry. I can remember what it looks like. Phil youre too old. I know. But i saw it for a while. Phil orlando, i want to know if you agree with dons optimism. I love his enthusiasm. Hes a friend. Were there longer term. Shorter term, three weeks ago, the market looked overbought at 1,730. We took the opportunity to tactically take a few chips off the table. The stock market looked pretty oversold two days ago. We got some good news out of washington late wednesday, early thursday. We put some money back to work. Longer term, we absolutely agree with don. We believe the shift from fiscal drag into wealth effect is going to get us back to trend line growth or better starting next year. We think that stocks are still attractively valued for the long term. Don, back to you, u. S. Economy, lets talk about that for a minute. Lets put washington aside. What kind of shape is the u. S. Economy were not having great employment, were not having great income gains. We have had great car sales and so forth. Businesses are not investing. Why do you think were going to have this growth spurt in the usa . Lets say why havent we had a growth spurt . The reason why is weve been through six years of constant, imminent, systemic risk. Productivity comes from risk taking. Who can take any risk at all . Who can hire somebody . Who can build a factory . Who can do anything when youre afraid that because greece defaults eat going to cause the whole house of cards of the world to fall down. Weve learned in 2013 that were fine, were robust, were immune from contagion. Dont worry about greece or cyprus or syria or indonesia. Dont worry about washington. Thats where growth comes from. You think those threats are behind us, particularly the european threats . Thats just one of many. But with threats behind you when youre not up against this constant wall of risk that robs you of your opportunity to take personal risks because the world is imposing all its risks on you, no growth can happen. The risk is gone. Growth can come back. It will come back from the bottom up. Thats the miracle of growth. Its not about policies but its about given the level of stocks and given the level of Interest Rates, whats your take on the markets valuation and how are you investing . Stocks are still cheap, larry. Sitting between 14 and 15 times earnings next year. Core inflation, 1. 2 . Treasury yields sitting down here, 2. 5 . Even if those levels double over the next three or four years, which we believe they should, were in the sweet spot in the cycle whereas inflation goes up as Interest Rates go up, price earnings ratios will still expand. We expect to see multiples at 18 times earnings looking out over the next, say, three or four years. Wow. All right. Two optimists, very good, gentlemen. Friday night, thank you very much. Cattle ranchers in south dakota, dont talk to them about global warming. A freak snowstorm has left 100,000 cattle dead. Thats next up on the kudlow report. Jackie there are plenty of things i prefer to do on my own. But when it comes to investing, i just think its better to work with someone. Someone you feel you can really partner with. Unfortunately, ive found that some Brokerage Firms dont always encourage that kind of relationship. Thats why i stopped working at the old brokerage, and started working for charles schwab. Avo what kind of Financial Consultant are you looking for . Talk to us today. Ido more with less with buless energy. Hp is helping ups do just that. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Welcome back to the kudlow report. Im Courtney Reagan with this news alert. A freak early snowstorm has devastated the cattle industry in south dakota as the snow melts cattle ranchers are surveying the damage. And estimates are that as many as 100,000 head of cattle were killed in the storm. Thats more than half of the states herds. As much as four feet of snow fell in some parts of the state last week. That is quite a storm, not just some flurries. Many thanks, Courtney Reagan. Lets get back to washington and all the negotiation drama on capitol hill and in the white house as well. Were going to talk with one of the Senate Republicans who was in the white house today with the president , utah republican orrin hatch. He will be with us in just a moment. Welcome back to the kudlow report. Were here live before what will be a very important weekend of negotiations in washington. Now, our next guest was part of the 90minute meeting at the white house today, Senate Republicans met with president obama and we welcome back to the show senator orrin hatch of utah, who i might add if i still have this right, you are the ranking republican on the very important finance committee. Is that still the case . Thats still the case, sure is. I want to ask you because i was reading some of the news wires after your meeting. You expressed a concern that president obama wants a sizable tax hike or revenue hike to go along with any deal. Can you tell us about that . Well, that goes without saying. Weve already given him 1 trillion in obama care. That was a total democrat vote. And given him 600 million on the fiscal cliff. And now they want another 1 trillion. Lets face it, theyve had enough tax revenue. The question is, are we going to get spending under control. The president in our meeting today indicated that hes opening to trying to do something in that area. But i dont see it, personally. Seems like theres a big disagreement. Republicans are looking at tax reform. Youve been a longtime tax reformer. Paul ryan wrote about it the other day. Democrats have a different view of it. Where they want to tax rich people and close loopholes and be revenue positive. How do those differences get bridged . Im not sure that they can get bridged very easily. Im impressed with Susan Collins and the work that she and the women in this caucus have done. The women in this caucus make a real difference. I think her ideas are going to be accepted and help in brokering a final deal. It includes my medical device tax removal that ive been fighting for. We got 79 votes for that on the senate floor here just this year. And the verification also which i think a important, income verification. Yeah. Let me ask you about another tough nut to crack as we go through the negotiations. Entitlement reform. Republicans are asking for a period of discussion of future budgets including entitlement reform and tax reform. Youre going to see most of those entitlement run through your committee, the finance committee. What is the outlook for things like lower the cpi, the index cpi, the lower cost of living adjustment, upper income people paying for higher medicare, federal workers having higher copays . Is there any democratic interest in those kinds of entitlement reforms . Not any, as far as i can say, or Social Security reform. We could fix Social Security tomorrow. It would be a relatively simple thing to do. But the democrats wont do it. In the case of medicaid and medicare, medicare is over 40 trillion in unfunded liability. Medicaid is almost that bad. Weve got to do something about these entitlements. I gave the president five bipartisan approaches, each one of which would help us get the entitlement reform, supported by both democrats and republicans. I gave it to him at the beginning of the year. Havent heard back. And i raised them again just today with Denis Mcdonough down at the white house. Havent heard back on that. But we have to have entitlement reform. I imagine theyll be insisting on increasing taxes no matter what. Does the president still hold to the costofliving adjustment for Social Security, the socalled cpi indexing, hes had it in his budgets, does he still hold to it . He put things in his budget, he knew that budget wasnt going to be acceptable to even democrats let alone republicans. Thats kind of the game thats being played. But i believe hes sincere, that he would go for change cpi, which would be a more accurate way of determining the Consumer Price index that sets the price on a lot of these things. I believe hes sincere but i dont think the democrats will ever let him do that. Notwithstanding the difficulty about these reforms, may i ask you, are you optimistic that in the next 24, 48 hours or so we can reopen the government and raise the treasurys debt ceiling . Well, we have to reopen the government and we have to basically we have to do it in the debt ceiling and raise it. But ive got to say, i dont think well do it in the next 24 to 48 hours. Hopefully it will be done this next week. But we have a lot of people who have caused a lot of problems on this issue. And, of course, weve gotten ourselves in a bind where some who thought they could get rid of obama care and found out that the democrats are never going to let that happen, that put us in kind of a bind here. But hopefully we can get this taken care of next week. Thank you very much, senator orrin hatch of utah. Thank you for your time, sir. Nice to be with you, larry. Lets bring our expert free market panel back, martin frost, john fund and kellyanne conway. How long is it going to take if they all agree on reopening the government i guess the House Republicans are now on board with that. How long is that going to take . Middle of next week. Its going to be one package and its not going to be done on monday. Hopefully it will be done wednesday. Hopefully they dont take it up to thursday. Do you think thats right . Going to go right down to the deadline . Sure. But i think this time they wont go to the 11th hour. I think theyll hand in that final exam a day early. Lets hope at least one day. We had a woman on the show last night, congresswoman jenkins who was in the white house meeting. She said monday, going to get it reopened monday. Nice lady from kansas. Shes on the ways and means committee. They can vote all weekend. Why cant they just do that . Because thats not the way the place works. Has congress ever done anything early . Its very rare. They have on occasion. Whats going to happen were going to debate benefits, entitlements, were going to debate taxes. Is this bait ever going to bear any fruit . This current debate will have marginal changes. I think the medical device tax might be one of the sack official lambs because democrats hate it. I think republicans are going to have to see the sequester tweaked a little bit. Oh. Thats bad. Tweaked in the sense of higher defense spending. That is the worst thing that can happen, that we trim the sequester, which is working, trim the sequester and all we get in return is, quote, lip service to entitlement reform. Jay carney, the white house and the friends in the Mainstream Media will call it medicare cuts. I dont know what we get out of it. Id love to have these conversations about growth and flat tax and tax reform and entitlement reform. We werent going to have that conversation before the last three weeks and were not going to have it in the next four months or three years probably. Spending cuts is the last time it happened except for the republicans in defenseoriented districts could we go back to one thing about obama care . I want to make one point. About 35 states, mostly with republican governors, opted out of having their own state exchange and put all their people into this new federal exchange. Some of the states that established their own exchanges were able to get this right, their software worked. They didnt have as many people in the system. One of the problems has been all these states that opted out. You put millions of people into the federal exchange, that was a mistake. It should have been corrected. The thing is still falling apart. Its wrong. It should have been corrected. One of the contributing factors was that governors forced so many people into the federal exchanges. I have to do breaking news. Well try to get back to that. We have breaking news. We have just learned that the grand canyon, statue of liberty and mt. Rushmore will all reopen this weekend. Road trip. Lets talk with senator Susan Collins, making a push for repealing the obama care medical device tax. She may be making some real progress. Next up, senator Susan Collins. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit card. Whered you get that sweater vest . Your ford dealer. Top republican senators meeting with the president at the white house today. For more on what went on during that meeting, we bring in senator Susan Collins from the great state of maine. Ms. Collins, as always, its terrific to see you. Thank you very much for doing this. Can i just ask you, how is the mood in that room . Was there cooperation with president obama . What did you take away from it . Well, first of all, im glad that the president finally sat down for a long overdue meeting with Senate Republicans. I really felt that he should have done this long ago before we got into this terrible situation. And reached this impasse. The mood of the meeting was somber but respectful. I think it was a constructive meeting. But there certainly wasnt any breakthrough. Nevertheless, i think its really important that finally the president was willing to negotiate since previously he had said that he would not do so. Can i ask, it sounds to me its very important. Sounds to me like the Republican Party in both the house and the senate are now coming around to the view that the debt ceiling must be increased and that the government must be reopened. Now, when we started this negotiation, so to speak, 24, 48 hours in the house, they were talking about the borrowing limit. But they werent talking about reopening the government. Is now both on track . Thats exactly right. Im really glad that the republicans, my party, has come around to that conclusion. This shutdown of government was really starting to have consequences that went far beyond furloughed federal workers and were affecting the private sector and our economy as a whole. And the prospect of a default by the United States, for us not to pay our bills, is really not responsible. But neither is it responsible to continue to ignore an unsustainable 17 trillion national debt. Ive never seen a time like yourself, ive been around for a while. Ive never seen a time where these shutdown tactics ever work. But let me ask you a couple of things. I know youre now involved in some possible dealmaking or contributing. 9 how long would you like to see the debt extension go . Ive suggested in the plan that ive put out with senators murkowski and ayotte that the debt limit be extended through january 31st of next year. That would give us three months to work on a longerterm fiscal plan to address the very serious fiscal imbalance in our country. But it would also help to soothe the markets and assure Social Security recipients that their checks wouldnt be delayed. And what would you like in return when the bargaining occurs and negotiating youve got a couple of requests. Can you tell us . I do. One would be to either repeal or at least delay for two years the tax on medical devices, such as pacemakers, artificial knees, defibrillators that was included in the Affordable Care act known as obama care. That tax, industry estimates tell us, would cost us some 43,000 jobs, stifle innovation, drive some of the industry overseas and be passed on to consumers. So it would actually increase the cost of health care. Second, i want to see real verification of the income of individuals who apply for insurance on the exchanges to prevent fraud. Yeah, thats right. Thats like an openended entitlement. Can i ask an ending question here . What do you think the chances are everybodys going to be working over the weekend, as i gather it that the government could be reopened on monday . Im very hopeful that that will be the outcome of these discussions. This has gone on far too long and its time for us to govern responsibly and for this impasse to come to an end. Senator Susan Collins of maine, thank you very much for coming on. Thanks for your contributions. Appreciate it. Thousand, all the shutdown drama has kept the massive obama care signup process disaster off the front pages. Thats not all. A leading ceo is now saying obama care is definitely a jobs killer and he can prove it. That ceo joins us live next up on the kudlow report. The American Dream is of a better future, a confident retirement. Those dreams, theres just no way were going to let them die. Like they helped millions of others. By listening. Planning. Working one on one. Thats what Ameriprise Financial does. Thats what they can do with you. Thats how ameriprise puts more within reach. The Obama Administration denies that obama care is creating a parttime economy. But a new piece in the wall street journal outlines just how many fulltime jobs have actually been sacrificed as a result of the health care overhaul. Here now is the author of that piece in the wall street journal, ceo of cke restaurants. Still with me are martin frost, john fund and kellyanne conway. Andrew, before i get to your parttime fulltime, theres a big piece out today, they finally got a count on the signups for health care. Its coming in vastly below estimates. Also apparently they were going to throw out the Computer System and try to put something new in. In fact, 51,000 people signed up in the first week. They were expecting a huge multiple of that. And now the Congressional Budget Office says theyll be lucky to get 7 Million People at the end of six months. Its going to come in around 2 Million People. So the whole things gone down. Whos to blame . Doesnt sebelius have to be blamed for this . What happens . I think a lot of the problem is what youre trying to get young people to do is act against their own economic interest because many of them feel they dont need health insurance. Our employees, i went and asked how many of them signed up for the insurance policies we had. We had about a 6 signup rate. Most of them said they didnt sign up because they were young and healthy and could get care at the emergency room. Now the numbers for obama care are coming in which are way beyond what anybody thought they would be. Young people arent signing up. If young people dont sign up, this system doesnt work. Its the premiums they pay that pay for the elderly or the people that are sick. The problem is t with the law. Again, i dont think the Obama Administration or those in Congress Took a look at this like a business would look at it. They didnt look at it to see how it would work. They had some dream or utopian concept of how it would work and it wouldnt work. Theyre expecting 6 million after six months. And now their estimates are down to 2 million. So basically youre not blaming sebeli sebelius . No, i blame the law. Im not attacking anybodys intentions. I think they had good intentions, what they wanted to do. But the problem is the way they went about it is a way that doesnt work. It doesnt function. If you were in business and you tried this approach, youd be out of business in a hurry. To your op ed piece, the Obama Administration denies that parttime workers are rising rapidly. You say theyre wrong. Whats your point . The bureau of labor statistics actually issues numbers that say how many jobs created are parttime and how many are fulltime. And the period when the employer mandate really would have been relevant under obama care was from january 1 of this year through july 2nd when they said they were going to extend it. While it doesnt take effect until january 1st of next year, there was a oneyear lookback to see if people were parttime. From january of this year through july when they announced they were going to delay it, you really could see how businesses were reacting. If you look at the bureau of labor statistics numbers, this is the survey they used to calculate the unemployment rate, there were 883,000 parttime jobs created and we lost 97,000 fulltime jobs. I dont think theres any question that there was a huge impact, even the individual that ran the bureau of labor statistics for the Obama Administration from 2008 to 2012 said hed never seen anything like it. He doesnt think there had ever been a sixmonth period where that many parttime jobs were created. The unions are furious at this because theyre going to lose their highly subsidized Cadillac Health insurance. But employers are cutting back on hours worked. The United States used to have a 40hour workweek. Now its gone down to a 30hour workweek. And because of obama care, may go down to a 29 or 28hour workweek. Do you think that obama care is the cause . Im assuming it is the cause, not everybody agrees with me. It absolutely is the cause. It sets a 30hour limit. Above 30 hours, you have to offer People Health insurance. 30 hours and below, you dont. When you make something more expensive, businesses use less of it. When you make something less expensive, they use more of it. When you make the labor more expensive, when you make parttime or 30 hours less expensive, people use more of it. If ground beef goes up and chicken goes down, people buy more chicken. Its just common sense. Im running out of time. Kellyanne, why doesnt the republicans tell these stories . Theyre worried about the debt shutdown. Why not tell these stories . Since the Republican Party is waiting for the young to get old and the single to get married to find new voters, they should find that single mom who has to have two jobs, 20 hours each and no benefits to do it. Andy, thank you very much. Martin frost, john fund, kellyanne conway, guys are great. Thats it for this evenings show. Thanks for watching, everybody. Please join us again on monday night. Maybe well have an open government on monday night. Wouldnt that be something . Maybe we can have some free market capitalism. Maybe well get tax reform. I know, im dreaming. Im kudlow. See you next week. De to work. Make my mark with pride. Create moments of value. Build character through quality. And earn the right to be called a classic. The lands end no iron dress shirt. Starting at 49 dollars. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . 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[ Phillips Lady ] live the regular life. Narrator in this episode of american greed the fugitives, john ruffo appears to be a business owner, a good husband, and a loving son. He was very generous, and he was like the rock everyone leaned on. Narrator yet hes secretly pulling off one of the most Outrageous Bank frauds in american history. And when he gets busted, he thinks of no one but himself. And then [snaps fingers] boom, hes. Hes gone. He is on the lam. Totally shocking. He left very little trace. He just has to make one mistake. We can make many. He just has to make one, and well catch him. Narrator and later, in florida, fbi agents are on the f