president saying wednesday at the ports of los angeles and long beach which ship to 247 operations to clear cargo backlog. the president saying the private sector needs to do more. >> this is a across-the-board commitment to going to 247. a big first step of speeding up the movement of cereals and go through our supply chain. now we need the rest of the private sector chain to step up as well. this is not called a supply chain for nothing. paul: let's bring in kevin. serving as chairman of the council of white house economic advisors under president trump. thank you for coming in. are you in the inflation is transitory or persistent cap and why? >> it is a 70s show again, paul. we will live in an inflation spiral unlike we have seen since you and i were in elementary school, i would say. [laughter] >> i think i may have been in college or high school. >> real wages are declining after having significant growth in the trump administration. that is going to have to reseed a little bit and so what is going o you have a wage price spiral. workers get their wages adjusted in january. right now there's 5% inflation so people are 5% worse off that have not had their salary adjustment this year. then they will go to their boss and say they need 5% so i am as well off as january. another price increase to their customers. the workers will find they are worse off again and that is where the spiral comes from. the only thing that could stop it is a positive supplied shock. a lot of people say paul booker killed inflation. a big increase in supply and there is more supply chasing demand and prices don't have to go up so much. instead what we have is president biden throwing demand at the economy unlike anything we have seen since 1943 as a last time we had this much government spending. he is also attacking supply at the same time. it is the rest recipe for runaway inflation. i would not be surprised if we had double inflation. paul: that is an outlier prediction. saying, okay, 5% may be a while, but it will go back down. the fed even says that its target, over 2% here in the next months and years. you are saying it could really spiral up. is your explanation for this that this is merely pandemic related supply chain issues or is it policy mistakes both in monetary at the fed and you mention the demand-side stimulus for spending. is this a policy error? >> there are three policy errors. it is kind of like a perfect storm. the fed is throwing all this cash into the economy. you and i've been talking about that one for a few years. the second one is there are all these policies that push labor off on the sidelines. and that got people out of the labor force and we know that once people are out of the labor force, getting the backend can be very difficult. also something else, a new study that we have been talking about, showing 2% of the workforce has pinnacle depression or extreme anxiety disorder from the covert shutdown. covert cases, deaths and shutdowns, people are not necessarily able to go back to work because they are disabled by the mental stresses that they just went through. the third policy error is that president biden and his administration are doing everything that they can to attack capital. shutdown pipelines, giving leases for oil, increasing the price of energy. the biggest corporate tax hike in history. an under covered story. the tax cut jobs act under trump, the corporate side was almost revenue neutral. we brought into the base we extended the stuff internationally and cut the rate what biden is proposing is taking a corporate rate back up about halfway but he is keeping the base broadening. relative to the obama tax code, it is a massive tax hike. when obama went after it -- biden is taking us where no man has ever gone before. shatner going into outer space. paul: that will have a dampening effect on investment in supply. one of the untold stories that came out this week, corporate tax revenues soared 75% year-over-year in this fiscal year that closed in september despite the cut in the rate to 21%. if they raise it to 26.5 as the house bill does, what effect that will have on revenues. >> i remember that you have been writing about work i've been doing in this space for a long time. maybe 15-20 years ago estimated the curve and found that the peak was around 25% and you could cut from 35 to 20 or 15 and actually not lose a lot of revenue. it is happening exactly the way we said. this is a curve at work. what we projected what happened. everybody was saying that is ridiculous, it is impossible and so on. we have learned a lot. we created a lot more tax revenue. this is not even counted by higher wage growth. all of that is positive. one of the reason why the static score is so wrong. paul: okay. just briefly, kevin, is there anything that you expect, much to come from the president initiative this week saying we will reopen the ports 247 and lecturing the private sector to get with it. >> nothing will come from that at all. the ports are working as hard as they can. a container ship cost about four times that i did a year ago. there are trucks and so on that it is just not cost effective to ship them to the u.s. from china because the containers are too expensive. the problem is globally there are supply chain problems. paul: this will be persistent. thanks, kevin. a little scary, but appreciate your point of view. good to see you. when we come back, as prices keep on rising, democrats want to keep on spending. the higher costs push the multitrillion dollar package through congress? 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( abbot sonic ) ♪♪ paul: american consumers already reeling from high gas prices at the pump are now bracing for another shock with the u.s. energy information administration morning wednesday that households could see their heating bills jump as much as 54% this winter. a worldwide surge in prices for oil, natural gas and other fuels. let's bring in our panel, kimberley strassel and bill and kyle peterson. kim, how much of a political problem are rising energy prices for joe biden? >> it is a massive problem. these are the things that hit people's pocketbooks the most. i think one of the bigger problems for the administration is they are not actually addressing this. they are suggesting it is not happening, something that affects wealthier americans only. this is something that average people see around them not just when they're driving, but at the grocery store and with supply shortages. this administration seems to have no plan with dealing with it. paul: bill, the one thing they tried a little bit ago was to beg opec and opec plus including russia and a couple other nations to pump oil. they said no, we will do a little, but not too much. now they call in the oil and gas companies, the biden administration does, and says please, rescue us. gas companies they are trying to put out of business. >> that is a problem. you cannot turn that around on the dime. the first day in office he shutdown the keystone pipeline. the emphasis, what is it really white, countries like saudi arabia to do it so they can close things down here and achieve their green goal and all the dirty stuff would be done overseas. we are more dependent on fossil fuel than they thought. it has a real effect on prices. as you sort of alluded to in your intro, this is something that ordinary people feel. they see it up the gas pump, they see it in the government announcement, half of american homes use natural gas, right, and they expect the cost to be about $750 this winter to heat their homes. that is a 30% increase. people see that and feel that in their everyday lives. you cannot just turn on a switch and increase supply, which that is a problem, there's a supply problem. paul: file, you looked this week at the member hundred measures the administration has taken since i got into office and moving through congress to stifle oil and gas production and distribution are they doing anything to ease up on those? >> first days in office, president biden revoked the permit for the keystone pipeline. he also put a moratorium on drilling permits on federal lands. there've been some court challenges to that. the administration has taken moves to take alaskan and water, the national petroleum areas out of production. the problem is they have not taken any substantive moves. what biden is failing to reckon with his 80% of american energy consumption is still fossil fuels. demand has rebounded as the economy is revving out of the pandemic. supply is still about 10% behind where it was before covid hit. paul: kyle, permits have slowed to a crawl. is that fair? i have read that. >> yes. i think the figure is they have fallen 75% from august to april, the approvals. even if they are court challenges to the moratorium, it seems like the bureaucracy has gotten the message. paul: kim, let's turn to the debate among democrats over what will stay and what will go in their huge trillion dollars spending bill. big debate over whether to go full bore on a few programs that there are some others over the side or keep them all in and just use you mix like phase outs, phase ends and means testing and so on just to fit them all in. who will win that fight? >> what i'm hearing from members is we need to do fewer things well. which suggested they would cut entire programs. you listen to these backroom negotiations and they would be more on board with that because they are very concerned about creating entirely new welfare programs when the one that we have don't work very well. we need to keep everything in the bill if we time limit it or jigger with the numbers to make sure it all stays in. their focus is getting every one of these things on the book so they will be harder to take away and live on in perpetuity. we don't know which side will win their. paul: is that at all realistic, kim, i mean, keeping everything in? >> there is no way. especially if it is true they want to admit on how many taxes are hiked or a number of 1.5 trillion. at a certain point not even in liberal fantasy magic number world you can call those programs in any realistic form. paul: the progressive form is if you keep them all in that even if they are phased out, in their legislation, republicans will lack the will to eliminate them down the road. when we come back, the debate over the biden vaccine mandate heats up as a new rule comes one close to reality. some states and workers are pushing back. >> vaccination requirement should not be another issue that divides us. ♪♪ through chase with chase freedom unlimited. that means that i earn 5% on our rental car, i earn 5% on our cabin. i mean, c'mon! hello cashback! hello, kevin hart! i'm scared. in a good way. i'm lying. let's get inside. earn big time with chase freedom unlimited with no annual fee. how do you cashback? chase. make more of what's yours. liz, you nerd, cough if you're in here! shh! i took mucinex dm for my phlegmy cough. what about rob's dry cough? works on that too, and lasts 12 hours. 12 hours?! who studies that long? mucinex dm relieves wet and dry coughs. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. only comcast business' secure network solutions give you the power of sd-wan and advanced security integrated on our activecore platform so you can control your network from anywhere, anytime. it's network management redefined. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. vaccine requirements that we started rolling out in the summer are working. the labor department will issue an emergency rule for companies with 100 or more employees implement oxidation requirements among their workforce. every day we see more businesses implementing vaccination requirements and the mounting data shows that they work. paul: resident biden thursday touting progress in the fight against covid-19 claiming that his policies are working as cases continue to fall. the president thanked the vaccine mandate would take effect soon with the labor department submitting a draft regulation this week that would compel private companies with 100 or more employees to require vaccination or weekly testing. this as texas governor issued an executive order banning vaccine requirements in his state and florida governor vowed to challenge the biden mandate in court. so, bill, i guess the first question is, is president biden right, his vaccine mandates are working? >> no. they may be working politically. i think you cannot explain this vaccine mandate in terms of health. the cases from the delta variant, the new cases were peeking ease it hundred even as the president announced his mandate. he has at afghanistan, he has had the border, a little surprised by the delta area and covid, he does not have many successes he can point to. a lot of the polls show that mandates are broadly popular. nurses getting fired from hospitals in new york, the requirements that show vaccination before you can go to a restaurant. a large percentage of the african-american community is not vaccinated so you become a class citizen. i think those things are starting to play out. that may dent the political appeal of the mandate. i think that they are heading on it. the way gavin newsom bet on his election before. the two themes are covid and trop. paul: kyle, do you have any objection to mandates either by government or businesses here? the private sector is kind of taking at least some guidance from the federal government here you are seeing corporations all across america issuing deadlines for vaccinations and so on. that affects people who work. if you don't get vaccinated, there could be consequences up to termination. >> right. my approach would be pushing these down to the lowest level which would be the business owners who know their workplaces and what their customers require. the biden mandate in the greg abbott mandate in texas have the same flow. treating everyone the same. you have surgeons doing organ transplantation and you can understand the reasonable argument that those people ought to be activated. on the other hand, that same hospital chain may have people working in billing, taking customer service calls from home. the problem is these mandates are very broad and unable to make the kind of distinctions >> his order saying no companies can impose vaccine mandates by companies based in texas are saying sorry, governor, we are following the federal regulation and i guess they are concerned about osha. i mean, if you are a business ceo, who do you follow, governor, president or do you just do what you want anyway? >> a really on enviable situation. one of the upsides is it will get litigated quickly. my own view is this federal mandate is on really shaky ground in a courtroom. this is being done under emergency temporary provision from a 50-year-old osha law. used about 10 times, challenged in court six of those times, only managed to be upheld once. that is because it is short-circuiting a normal rulemaking procedure. courts don't like this. there are other constitutional issues about this. public safety and health is a remix of states. the actual language of the wall they are trying to do this which is meant to protect people against agents and toxic substances is a real stretch here. this will get litigated. the vaccine mandate will have a lot of real trouble out there. maybe companies will have a save in the end. paul: i agree with you that the democrats are banking on this. you look at what terry mcauliffe is doing in virginia. he is running on two things, mandates for vaccination and donald trump. is this a whenever democrats? we have about 30 seconds. >> we will find out again. we will find out again. mandates are popular and donald trump is not popular in these states. i can see why he is doing this. people are seeing the consequences. a really winning message that osha will deliver us from covid. apart from the constitutional questions, do we really want to bet the farm on osha, that osha will handle this. i'm not sure it will work out for the. paul: all right. really fascinating. still ahead, president biden's polling slump. he claims he is popular. why has his job plummeted? ♪♪ a sunny day. nah, a stormy day. classical music plays. um uh, brass band, new orleans. ♪ ♪ she drives hands free... along the coast. make it palm springs. ♪ cadillac is going electric. if you want to be bold, you have to go off-script. experience the all-electric cadillac lyriq. do you take aspirin? plain aspirin could be hurting your stomach. new vazalore is the first liquid-filled aspirin capsule clinically shown to cause fewer ulcers than plain aspirin. vazalore is designed to help protect... releasing aspirin after it leaves your stomach... where it is absorbed to give you the benefits of life saving aspirin... to help prevent another heart attack or stroke. heart protection with your stomach in mind. try new liquid-filled vazalore. aspirin made amazing! to run a growing business, is to be on a journey. and along the ride, you'll have many questions. challenges. and a few surprises. but wherever you are on your journey. your dell technologies advisor is here for you - with the right tech solutions. so you can stop at nothing for your customers. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ overwhelmed by the ups and downs visit tdameritrade.com/learn of frequent mood swings of bipolar i? 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let's ask mark penn. chairman of the harris poll in chairman and ceo of the group. thanks for coming in. we know republicans are unhappy with the president and this polarized age of hours no surprise. that makes independents and even more important swing group. what are independents unhappy about? >> they are fundamentally unhappy they were expecting a presidency that would be in the center. they were expecting a return to normalcy, they were expecting a return to government efficiency, they were expecting confidence in terms of the economy and the virus and independence have soured on virtually every one of these aspects, including the economy, including the virus, including immigration, including crime. i don't think i have ever seen such a precipitous drop. paul: is a matter of moral confidence or policy or a combination of both? >> i think it is a combination of confidence, confidence in the president and generally opposition to the policies of the president. i don't see that the president has a kind of support he says that he has for these programs. if you pull someone, would you like a check push mark the answer to that is always yes. if you pull them and say would you like a check while we increase taxes and increase the deficit, the answer to that is a solid no. >> one of the fascinating things in a gallup survey is the traditional question they ask, do you want more government services even at the cost of higher taxes versus fewer government programs and lower taxes. that switched now. a year ago it was, sure, we will accept more government. now we prefer less. how significant is that for democrats as they confront their decisions on the reconciliation bill? >> it is very significant. possibly the infrastructure which is and was popular was not passed right away. the social spending is not popular because of the expansion of government here at a time in which 78% of the voters now have become more concerned about inflation. you cannot under estimate the extent to which the change in attitudes towards the economy and towards inflation affect change in attitudes towards how much money should be spent on social programs. paul: so people link rising prices with rising spending, is that what you are saying? i think democrats would say there is no link and by the way that is just a republican talking point. >> whether it is republican or democratic talking point, i think you clearly see in the polls that they talked for a while, the economy was right in the direction, most people see the economy in the wrong direction. they thought the economy was under control. most people see inflation out of control. given the change in economy, okay, how much can we afford on new government programs, the answer was a lot less than we thought we could a few months ago. >> breaking down the inflation issue, i particularly want to focus on energy prices which lead into i guess most important for most people gasoline prices. you know what a president looks at numbers, is the cost of gasoline just a big red light when you see that going up? >> in my weekly meetings with the president, back in those days, yes, we focus very much on the price of gasoline because it is something virtually every american outside of urban areas really sees every days. suburban and rural voters. our program does not really impact americans, but then gas prices go up. they just see that as an indirect tax on working-class americans. >> okay. you are advising president biden, what do you say in the democrats on capitol hill to get out of this spiral down in the polls? what do you do? >> it is interesting. i'm surprised given this incredible fallout after afghanistan, a, the president did not make fundamental changes in who was running things, whether it was in the military or the civilian departments since no changes were made and everyone thinks it was a bad job, i think now there are real concerns about the treasury of janet yellen who seems to pair administration policy can really give an independent confidence about the economy and i would get the infrastructure bill and i think i would take mansion up on a pause on the other bill and tell the progressives you have to wait until we've got the economy and the virus more in control and that would send the president ratings soaring. paul: yes, that is an interesting point although it would cause heads to explode on capitol hill and the progressive caucus. thank you. appreciate it. still ahead, the race for virginia governor heats up as they put education front and center in the final weeks of the campaign. ♪♪ their only friend? 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's . ♪♪ just over two weeks to go the rates for virginia governor remains tight with a brand-new fox toll showing terry mcauliffe leading the republican 51-46% among likely voters. democrats calling in the big guns to poll mcauliffe over the finish line with former president rock obama to hit the campaign trail next week and. republicans look to capitalize on the recent comment that parents should not tell schools what to teach. holding parents matter rallies among the commonwealth. putting it on and center in the final weeks of the campaign. we are back with kimberley strassel, bill and kyle peterson just a governors race. new jersey likely to stay democratic. why should people that do not live in virginia look, care about this result in virginia? >> one reason is that it looks like it is a bellwether for the 2022 midterms. terry mcauliffe stance here is to tie his republican opponent essentially to trump. that is a democrats plan to do in 2022. there is a general report this year that says early voter turnout is down by two thirds compared to 2020. who knows if that will hold up? hearing about former president trump now. paul: kim, do you agree with that? this will be a bellwether signal for 2022? >> virginia certainly has been in the past. you look back, or instance, in 2009 after barack obama was elected come up very much precursor for the enormous republican victory in 2010. will it be this time? we don't know. washington democrats are very concerned about it which is why they are sending in those big guns. they worry of mcauliffe defeat will send a tone that will cause more voters to disapprove of what is in washington and make it harder for them to pass their agenda get reelected next year. paul: bill, just to elaborate on kyle's point about the bellwether nature of this and trump, i think this is a test of post trump presidency of whether or not republicans can regain ground in the suburbs, particularly the northern suburbs around washington which are trending democratic particularly in the trump presidency and around richmond. this is a test. running a very good campaign overall. whether you carve back enough votes to prevail in that democratic trending state. what do you think? >> yeah, i agree with that. the primary issue is trump. are democrats going to be able to stave off these challenges just by presenting any republican in the second coming of donald trump? they sort of did that in california with larry elder. virginia is blue, but not quite as blue as california. you mentioned the suburban voters. i think that is why the education issue is so important. a lot of these people showing up at school boards protesting their policy, they are not republican. they are mostly democrats and very affluent areas. the trump support in the southern part of the state. we have places like one of the wealthiest counties in america. it is interesting, one young can certainly think this is an issue because he is stressing the education part. it may be an opportunity, especially thereto went back some of these voters or when new voters upset at the way schools are being run. paul: kyle, on that education point, what specifically is being stressed on education? is it closures during the pandemic, political race theory, what is he racing against? >> i think it is all of the above. parental input into school curricula and school choice. virginia is a very bad state for school choice. twenty-seven charter schools in the whole state. talking about opening up 20 opportunity schools and changing the whole opportunity there. i think it is a good issue with the suburban voters. paul: kim, how big of a shock will it be for democrats in washington if mcauliffe wins? , loses, rather. mcauliffe loses. could this scare them into the trillion dollar package? >> the reason it will really scale them, virginia has been turning blue. from a structural perspective, it is a democratic state now. to lose, you would send a shockwave through washington. you have a lot of moderates anxious about this bill. one thing that could push it over the edge. that is why they are in a rush to get it to end. paul: before the election, is that what you are saying? >> yeah. nancy pelosi's goal october 31. i don't think that is a coincidence. paul: when we come back, escalating tensions between china and taiwan. a stark new warning from beijing about u.s. intervention. we have that next. ♪♪ paul: tensions between china and taiwan continue to rise with the chinese president with xi jinping saying it must be fulfilled. it comes after china said a record number of jets into the defense so last week and amid reports that they have been secretly training military forces there. state media warning that america military intervention and taiwan would be an "deathblow to u.s. soldiers". let's bring in chad, a fox news senior strategic analyst. general, thanks for coming in. put yourself in the mind of xi jinping. on the one hand, sending all of these jets into taiwan airspace come up more than we have seen in a long time. on the other hand, they say we are for the peaceful reunification of taiwan. what is he thinking? >> well, he actually subscribes pretty faithful, i think, to a highly respected chinese strategists. always postulates that the first with any adversary is to try to defeat that adversary without having to fight. so, this is much about intimidation and coercion from the time on ease to reunified with mainland china. also a message sent to japan, to australia, to our allies in the region and to the united states that the prc are dead serious about this reunification and there is nothing that will stop it. wanting to create a sense of inevitability that this will really take place. therefore, we can people's resolve and nations resolve to resist to it. it is a serious campaign for that reason. militarily speaking, they are practicing here. for an actual invasion itself. a lot of it was done at night which is when they would actually conduct much of this bombing campaign and air and missile attacks. so, yes, those things are real that have taken place. i don't think it is imminent because we have the limbic pics next year and national party congress in the fall and those are serious events and innate conflict would deter from them quite dramatically. this is the opportunity where they are getting closer. the risk profile will be very high around 24 and 25. he has most everything he needs in place at that time. go ahead, paul. paul: the national people's congress is when they hope to get appointed to another term and consolidate his power for the future. after that, more running room. >> yeah. there is no doubt about that. he also has some economic headwind. he knows full well that the united states, he has a very good grasp that the united states erosion of military capability in the region is there. much more so than what the government officials are willing to share with the american people. largely because they do not want to undercut the people's confidence. i totally disagree with that premise. people should know. we have a ways to go in terms of the overall strategy and in terms of dealing with the military challenge in the indo pacific region with occupying largely world war ii basis and they are very vulnerable to china's attack. we should be more expeditionary distribute those forces so we have more flexibility and operational capability to deal with the chinese threat. my fear is we do not want xi jinping to make the calculation that one it is obvious that taiwan will not capitulate and to come out that probably is a case, and, two, i will use force and i can use that force and get a surrender out of taiwan before the united states and actually act and bring meaningful capability. we do not want him to come to that capability. that is why we have to up gun and do it urgently. not just ourselves, but continue what is going on with japan but i want to shore up their defenses and australia itself. paul: you look at the biden administration so far. what kind of marks do you give given the recent reports that u.s. military officers are training. you have a recent deal with australia, uk, to build nuclear weapons and australia. what kind of marks do give the administration? >> i get them better marks in any other region in the world. failing in russia, middle east, afghanistan. they have strengthened our alliance. the training alliances. they are continuing to shore up taiwan's defenses. the rhetoric is about right. the biggest challenge i think we have is our military capability. we are not moving fast enough to get that capability into the region. what am i talking about? all offensive missiles, defenses to protect the bases we have. we need more submarines, or mines. all that capability we should be moving in doing it with urgency and with obvious resolve. it sends a strong message to our allies and a strong message to taiwan. most importantly it sends a clear and unequivocal message to president xi jinping that we really are determined to make certain that taiwan is protected. military generals working, just like guys like me are looking at our capabilities and they are not looking at the rhetoric. that is what they are focused on. that is where we need to make the most significant increases, as far as i'm concerned. paul: thank you, general. we have to take one more break. when we come back, the missus of the week. ♪♪ new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. do you take aspirin? 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