economic growth power with senator ron johnson, bob lutz, and my great old pal jim cramer, all those stories and much more coming up on "the kudlow report", beginning right now. welcome to "the kudlow report." it's 7:00 p.m. on the east coast, 4:00 p.m. out west. enrollment numbers and a possible senate revolt. john harwood joins us from washington. good evening, john. >> larry, the president at the end of husband european trip got good news and announced it, which was that 6 million people so far have enrolled in private plans on the state and federal exchanges. now, that meets what the congressional budget office had predicted after the disastrous roll-out. they had ratcheted their initial estimate of 7 million down to 6 million. it is still possible with four days left that the administration could hit that original 7 million target. that does not however resolve the questions about the financial viability of the exchanges. that will be determined by the mix of people older and sicker people balanced by younger, healthier, who are cheaper to insure. and also it also doesn't solve the political problems that think they have with obama care, which is why you saw a senate democratic moderate proposal that came out today to fix obama care rather than repeal it, which is what republicans want. three policy elements to this proposal chiefly, one is the offering of a new cheaper plan, a so-called copper plan. secondly providing the permission for insurers to sell across state lines, rpg have called for that. also cutting reporting requirements on employers. now, is this policy or is it politics? well, i think it's likely the latter. if you look at the roster many democrats supporting this, including mark warner, mary landrieu of louisiana, all of whom face reelection campaigns. we know, larry, it is not likely that many dids and republicans are actually going to be able to agree on a legislative fix to obamacare. >> let's go back to the 6 million estimate. i hate to say it, i don't have a lot of confidence that comes out of the hhs or any of the related agencies. where did they get these new numbers? >> these come from aggregating the enrollments at the state exchanges and the federal. it doesn't answer the question of how many of those people have paid their premiums. some could drop off. 20% has been the estimate so far. but they've still got time to go. it does indicate, larry, the unconventional means that the president used, like going on with zach galifianakis on the comedic website between two ferns may have had something to do with that. how many democrats do you reckon will go at the mark warner/mary landrieu bill? >> not very many. most importantly not harry reid. i don't think he's going to try to move a bill that would open up that can of worms. this is something i think is principally used as a talking point for democrats to be able to stand up and say i voted for it, i understand your concerns and i want to fix it, and this allows them to point to a proposal like that. >> john harwood, thanks ever so much. ♪ so will democrats be able to fix obamacare and save themselves from defeat in november? joining us two veteran white house political pros, president obama adviser david axelrod and veteran gop adviser, mary matlin, and with me on set for the full hour this evening, my good friend, wisconsin republican senator ron johnson. thank you mr. axelrod. thank you for coming on. it's the fist time. i appreciate it very much. senator johnson, let me go to you first. you saw the number 6 million? do you buy it? >> the mckenzie study showed up those people buying the policies, only 25% were previously uninsured. if you start doing the math, larry, you're talking about 1 to 2 million people that, you know, from the uninsured, the 48 -- wasn't that the whole concept of obamacare. this has been a disaster across the board. >> disaster across the board, david axelrod, give you a chance to react to that. let me add to that. to me, sir, and i may be dead wrong on this, i think the individual mandate is basically gone. there will be no -- there will be no end to the exemptions, whether you're renewing canceled policies, whether you have a hardship for the rest of the people, or whether you're late to enroll because of the loopholes. to me the president is ending his own individual mandate. am i wrong about that? >> yeah, i think you are wrong about that, larry, first of all, let me say congratulations on a great run. i'm honored to be with you on your show here tonight. >> thank you. thank you. >> i think you are wrong about that, however, i think that there are adjustments and transitional decisions that have been made, but ultimately i think the mandate will be in place. i think most people will choose the insurance, because it's a good deal. as for what the senator said, you know, everybody has tunneled into the exchanges as the whole of obama care, the whole of the affordable care act, but 105 million americans no longer have to live with caps, so if they get seriously ill, they won't be thrown off the insurance. some got rebates. people with preexisting conditions can no longer be excluded from insurance. that includes 17 million children. there are a range of things that are already in place that are protecting americans, not just people who didn't have insurance, but people who did. so i don't think this law is going to be repealed because there's so much in it that people like, and that help people in their lives. >> mary, welcome back. great to see you. you heard what david axelrod said. do you think this is a winning issue for the democrats in the fall or a losing issue? >> let me echo what my friend david set. we're going to miss your depth and decency and common sense and your humor. we've been friends for a long time. great run. >> thank you. thank you. >> it's what democrats are saying, not what republicans are saying. obama is dismantling itself. two of the five senators that came up with reforms are from two of my home states. what they are proposing -- more choice, more competition, free market incentives -- those are philosophies and policies that we had been working on for two decades in a bipartisan way to reform and modernize health care, and sure, it's an antiquated system. this is done obamacare -- the affordable care act has done nothing to work towards those goals. those items that mr. axelrod listed. we had preexisting fblgt we had caps, well proposes and policies in play, and wesht cutting and curbing the cost. what this is doing is not just shifting the cost but increasing the cost and diminishing the care. the proof is in the pudding not just of the polls, but at the polling place. statistic president has managed to stay one step of ahead of the sheriff then. the intensity of the position has increased, so we see in mid terms and see again in this midterm the objection to the affordable care act and the kinds of political philosophy that undergird all of the president's policies. >> senator johnson, i do think these are political changes. even though i may disagree with david, i do think the president is unraveling his own individual mandate, but having said that, in terms of the politics, higher premiums, narrower networks for doctors and hospitals, you've got less hiring by businesses and fewer hours worked. the congressional budget office has priced out obamacare as a big job loser, 2.5 million, minimum. i don't see how this plays in november. >> it didn't play very well down in florida. you didn't have to remake the entire insurance market, the entire health care market in order to fix some of the problems. it just was not necessary. so across the board, obamacare is an absolute disaster. what the democrats are proposing here, a new copper plan? much higher deductible, just in terms of trying to get the costs down to a reasonable left. larry, we are getting letters, e-mails from real people, contrary to what harry reid said that are being harmed. the premiums are doubling, tripling, and that's what the democrats are trying to propose here. by the way, just allows insurance to be -- that isn't what makes it competitive. it's all man daylighted coverages. that's driving up the costs. that's allowing people to buy across state lines, that's what creates the competition. >> larry, can we just have a reality check for a second? i want to gut check and let me go back to mary and catch up with the senator. we just experienced the three lowest rates of growth in the health care system in the history of these numbers. >> nothing to do with obamacare. >> that is not true, senator. >> nothing to do with it. >> premiums were going up close to double digits every year -- >> that's because of the rotten economy. >> wait a second, senator. i listened to you. give me a second here. mary said we had a program in place to protect people with preexisting conditions. we were doing away with the caps. that's simply not true. that's simply not true. the reason why there needed to be a comprehensive plan is because there was no other way to make the system cohere and still cover people with preexisting conditions. >> david, can i ask. look, what has always really bothered free market types like myself is the mandates. the mandates. the mandates are very costly, and i accept your disinflation of health care costs. that's what the numbers show, but in the future, with premiums rising, that disinflation is going to go away, the mandates are very expensive for individuals, they're very expensive for businesses. i think the employer side is going to come into trouble. why do i need a lot of additional services for lactation, for dix shun and so forth? why do i need these surfaces? why does a young person have to have all these mandates? that to me was the biggest single flaw, the mandate. >> the way you get the costs down, larry is to get everybody in the system. that was the philosophy that mitt romney had in massachusetts when he implemented the mandate. it was actually the republican party and the heritage foundation that suggested this system and the exchanges back in the '90s, because the idea is you create a large pool where everybody is in, and you can reduce costs and provide more services form the reason you need these more services is that it helps keep people healthy. 105 million americans get preventive care without co-pays now. that's going to hold down the cost of health care in the long run. i mean, you have to have comprehensive reform to make this thing work. the proof of it is for all of what the senator and mary said, nobody on the republican side that is introduced an alternative in the last five years that would do the things that this bill does in terms of covering the uninsured, and holding down costs. >> mary, i don't think dave is right on this. you've got a whole bunch of reformers out there -- ryan and rubio and mccarthy. there's a whole gang of them. they all want to cover preexisting conditions. hell, you could give the sick people the money, it would be so much cheaper. they all want more choice and freedom to choose and go across state lines and get rid of many, if not all, of the mandates. aren't republicans coming up with alternatives that we will see? >> this is my favorite political straw man that the democrats like to put out that, that republicans have had no plans, have not done any thinking on this. i will say again, being as old as i am for decades in a bipartisan way, we had been woring on reforms. the greatest reform that ushered in, came in 40% under budget, unheard of in a federal policy was medicare part d. paul ryan, whose policies were based on premium support, that was that clinton idea. that was an alice riblin idea. for us free market types, i don't think the mandate is the worst thing. the worst thing is rolling back of federalism, the centralization of health care. 2% of the uninsured, the intended beneficiaries are now covered. the bulk of the people who say they have signed up come back they were dropped with the inception of the affordable care act, or they were taking advantages of subsidies, which are not free. they're taxpayer funded, so this is not the answer, if you look at ron johnson's home state or any of the other states that republican governors have implemented common-sense reform, now austerity reform policies, they have reduced their deficits, reduced their tax, and increased jobs while maintaining good health care. we need to go back to the states. >> we had governor walker on last night. that was his message in fact. the only thing i would add is i would give the individuals and families the tax credit, let them show around. we're going to come back. stick around, we have a lot more work to do. we're going to look at this unexpected rather shocking condie rice blast at president obama's foreign policy. my view, it's an unusually harsh critique by a former secretary of state. that's up next. don't forget, as always, free capitalism the best path to prosperity. i think we can have a plan. that's my view. please stay with us. ease stay w. . larry i'm going to miss coming on the show. your enthusiasm for politics and your mixing of the economy and politics always fun to watch. so, i'm going to miss the show, but, you know, we're going to be -- i'm going to be dragging you around, because we need your point of view, we need your take out there. it's always interesting and fascinating. good luck, my friend. >> about 20 years ago you referred to me as a great american. that stuck with me. for the son of re gees, larry, it was probably the most proudest moment of my life. thank you. all the best. all the best. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today. for what reality teaches you firsthand. in the face of danger, and under the most demanding circumstances. experience builds character. experience builds confidence. and experience... has built this. introducing the 2014 glk. the engineering and the experience of mercedes-benz. see your authorized dealer for exceptional offers through mercedes-benz financial services. through mercedes-benz so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close! new at&t mobile share value plans our best value plans ever for business. this is unusual, almost shocking criticism. is the american public might agree. there's a late a.p. poll that shows americans do disapprove of the president's handling of the ukraine situation. and they also apparently disapprove of the way he deals with foreign countries by 58-40. so will this be a surprise election year issue? back with us now, david axelrod, mary matlin and senator ron johnson. i just want to correct the record. the dinner was last evening, but we didn't get wind of this story until we got steve hays' story from "the weekly standard" which was posted up on drudge. if you click through, you'll see the story. let me read part of the remarks. quote -- right now there is a vacuum, she told a crowd of more than 2,000 attending the national republican congressional committee's annual dinner. we've decided to step back and others will lead other things will fill that vacuum, and i quote again, when america steps back and there is a vacuum, trouble will fill that vacuum. now, i have another clause to read, but i want to wait on that, i want to go to you first, david axelrod, i've tried to stay with president obama on this whole issue, because i think politics stops at the water's edge. i know condie rice very well, as does mary and probably senator johnson. i was surprised at the harshness of her criticism. what's your take? >> she was at a fund-raising event, so she was speaking to the sentiments of the crowd potential, and i have great respect for her. i/say this, when this president took office, the united states was held in very low esteem around the world. there was a great deal of chagrin about some of the policies of the last administration. i remember when president bush said he looked into putin's eyes and saw his soul and thought he found a partner. that didn't stop putin from invading georgia under the last administration. i saw this president and painstakingly put in place the moth withering sanctions against iran, which is the reason why we have the possibility, not the guarantee but the possibility of a peaceful settlement there. >> but are you surprised? >> i was with him when he went after al qaeda, and i watched as he made the decision to go after osama bin laden. these are not the decisions of someone who is leaving a leadership void. >> i just want to ask you -- are you surprised at this a.p. poll, 57-40, 58-40, his handling of foreign policy? not all polls show this, but this poll did. >> no, my basic view, larry, anytime the president is dealing with foreign policy, it's a bad day for him, i don't think american people are focused on -- i think they're focused on the economy. he's doing his job, but it doesn't necessarily help him political. the ukraine situation is unsatisfying, just as georgia was an unsatisfied situation. i think the president is rallying europe and doing what he needs to do to tighten the economy. >> is this going to be an election year issue? and do you think condie rice will go out on the compare trail and continue to make these criticisms? >> let me say to david, i do know dr. rice well of what she says privately is the same thing she says publicly, no matter who the audience is. it's a reflection of reality and history. the american people understand that the middle east has long been -- will likely continue to be a troublesome, unstable region, but they get russia, and they've seen decades of policies and presidents that have been able to contain encroachment of russia. what this ukrainian land grab is is not a grab-and-go. it's a systematic dismantling of the resettlement after the 1989 wall fell, so to speak. that's -- people get that, and they connect it. it's not just foreign policy, it is economic policy. 40% of their economy and about 60% of their exports in russia are energy. here we're sitting on our own domestic energy supply. that would be the greatest sanction if the president would just unencumber the private sector to produce more hydrocarbons, which is also a security issue at this point. europe is not really to fill the vacuum. there's been a dig ra dales of the european capabilities. this president has degrated or missile defense, our credible and our reassurance with theal l allies. >> let me go to senator johnson. this last one, miss rice again -- what are we doing? what are we doing when our defense budget is so small that our military tells us we may not be able to carry out all the requirements put upon us? she says -- what we are signaling is when we say american is no longer ready to stand in the defense of freedom. now, that's tough stuff. the defense budget is going down as a function of policy, a function of the economy. last night art laugher told us, the trong growth in the domestic economy. what what is your take? do you think she will carry this language? >> i hope shall does. it's got to be pretty frustrateling for you. i don't care what you think about iraq, there was it was somewhat stabilized. a huge blunder was not negotiating a force of agreement. mitt romney was right what country in the world respects america more? what country in the world thinks we are stronger today five years into the obama administration? that's just a sad fact, and vladimir putin is strong because we are weak. that's just a fact. >> i've got to leave it there. we are flat out of time. david axelrod, you're a great sport. i appreciate you coming on the show very very much form mary madeline as always. senator johnson will be around for a while, but now it's time for a very special moment for me. many of you know the "the kudlow report" actually started years ago as "kudlow & cramer" before we were both spun off to maximize profits, my great pal is going to here to join me. we're going to talk about how to make america great again. jimmy cramer will be here in a moment. moment. huh, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that. well, did you know bad news doesn't always travel fast? (clears throat) hi mister tompkins. todd? you're fired. well, gotta run. geico. fifteen minutes could save you fifteen percent or more. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. good evening, i'm jim cramer. >> and i'm larry kudlow. all right. there you have it. we couldn't say good-bye to this show without bringing on my great friend and former co-host jim cramer. i'm honored once again to be joined by jimmy, who wrote one of the nicest e-mails to me when news of my retirement came out. >> i don't want to be sad. okay? i don't want to be sad. >> we're not. i'm going to ask you a question. you're a democrat, i'm a republican, but we agreed on a hell of a lot of things about america. both our fathers served in world war ii if i'm not mistaken. >> yes, and making the country great. here's the question, jimmy. a subpar recovery in the 2000s, the stock market is strong a lot of people say it's just a -- other people like myself are hoping the market is signaling better times ahead. that's what i'm hoping. i want to get your take on it. >> what did you teach me? you taught me that profits -- profits drive the stock market. you sat there next to me and explained it to me over and over and over again. you always liked my individual take on stocks, but you as one of the great economists explained profits. this moment right now we have to see revenues go up to keep the profits going higher, but the strength of the market isn't the fed, and the strength of the market isn't necessarily we'll have better times yet, but it's what you taught me, it's profits. if we have revenue growth, we'll have big profits. >> i totally agree. the bubble crowd -- anytime something good happens in america it's a bubble. i don't believe that. we werel the numbers came out today on gdp, i don't want to bore everything, but they had good profit numbers in there, which is encouraging. so the question is, jimmy, how do we make business better? how do we make this country better? it's like a psychological malaise, and i hate it. i don't like that. i want to go full speed ahead, and i think you do, too. >> i think we have to have a government that's lest hostile to business. now, i think somehow business has been caught up with rich people. i think that they are not the same. people who want to go into business might want to get rich. there's nothing wrong with that. we have to -- we have to, let's say make it so that business and government are more partners. i was thinking about the condie rice she blood in the german ceos, look, i kind of want to do this. i want to do this. do i have you on board. that would be -- do you ever think that president obama would do that here? >> i don't know. i don't know. >> i mean, i want him to. i moderated a lot of these roundtable panels, and they may not say it precisely and explicitly, but those ceos are not happy with the president's attitude towards business. i hear this a lot, maybe you do, too. business might take a bigger rip at the ball. they just are worried about the future, there's so much uncertainty about regulation, obamacare, taxes, a million things, that they're not confident this big profit cycle will stay. >> there was a company that went public today, trident. they help when you the government calls. it's like ronald reagan. they do consulting work for you trying to do your payroll. okay it's too hard to do the most basic things in industry -- paying your employees. it's too difficult to figure out. you know, i opened a restaurant, larry. >> i remember. >> and i've got to tell you something, i live in fear every day. am i doing it right? my advisers make more than me, because i'm so afraid, and you have to be afraid, because there is a reason, because the knock on the door can wipe you out. >> take the red tape boot off of business, especially the smaller business, which is always the heart of the business. >> i had the ceo of paychec dpa. why is his business so great? because everyone is so great. you're right about my political party. you know, sometimes because of the vietnam war, you get in trouble when you say there, but i am a lyndon johnson democrat, because he believed in growth. he had a lot of right ideas. the vietnam war obvious lip is not what we're talking about but that's where i am in the party. >> that's pretty cool. i'm in the midst of writing a book about john f. kennedy. had he had the first supply-side tax cuts, which reagan borrowed, democrats have done it in the past. they could do it in the future. >> democrats would work closely to create jobs, because that's what their constituents demanded. >> you're dead right. >> i've got to tell you, when i look back, i actually did i my nephew writes my show with me, he's saying listen, when are we going to talk about nixon was more pro-job? inch i said, no, that's a president too far [ laughter ] >> larry, i miss you. >> that's great. >> you are the place for a civil during course. we do it now. >> you're the best. jim cramer my expartner, and i miss him. let get more details on how to make america great abroad. we have senator johnson, and we bring in bob lutz. they'll talk about tax reform, exactly the topics that jim cramer was discussing, let business breathe. let business breathe. let the market work, and please stay with us this evening. we'll be right back. hi, larry. i have absolutely loved our amazing bull/bear conversations over the last year. you're one of the great. a true privilege and honor to work with you. wish you all the best. i know we'll have great conversations in the future, and honestly it just means the world to me to have been part of the show with you for the last year. thank you. larry kudlow, my dear friend, my sources are telling me that these last ten years of our conversation are just the beginni beginning. i've enjoyed every moment, especially coming to your television show. and i hope and continue our conversations on air, on radio, and everywhere. again, larry, my sources promise me you'll be with me for a long, long time, and i with you. e, an. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. my former boss ronald reagan said a stronger economy at home makes is stronger abroad. of course i want some supply-side -- i want to break out of this substandard malaise. i'm honored to be joined by bob lutz, former general motors vice chairman, still with me here on set wisconsin senator, ron johnson. mr. lutz, it is a great pleasure to see you. thank you, sir. i want to raise a point my former partner, jim cramer, raised. i think business is just too entangled in red tape and regulations. i think it's getting worse. i think it's having a psychological impact, what's your thinking? >> regulation is almost stifling. wow the reg la story burden, all of the things we have to do completely takes your mind off of the basic task, which is developing and delivering a product for the customer, and we have just loads and loads of disincentives to investment, disincentives to success built into our system, and of course as you mentioned it, the tax code is one of them, too, where we are increasingly disincentivizing the people who create wealth through investing and recycled profits. >> senator johnson wow the regulatory front, my pal steve moore wrote about the danger species acts, a couple birds are being used to cut off tens of thousands of acring being used, and make exporting it to europe to get out from under putin. what did we seed yesterday? the national labor relations board wants college students to unionize. that could be a good thing. the question is, how do you stop that? they administrativadministrativ. we should stop sending politicians to washington, d.c. dedicated to growing the federal government. $1.75 trillion is what it costs to comply with regulations. put that in perspective, larry that's a measure that's larger than what we are burdening job creators with. it shouldn't be so hard. we need to make america an attractive place for global business investment, business expansion, job creation. how do you do that? a competitive regulatory environment. how about utilizing our god-given natural energy resources. >> you ran a company. i want people to know that, you ran a company, in wisconsin. >> so you understand those investment decisions. you actually want to incentivize that behavior, you want to celebrate success, you don't what demagogue against business. you know one of the best things that scott walker did when he came to wisconsin? wisconsin, we're open for business again. it would be nice for a president to say that about america. >> bob lutz, i don't want to make too much of this, but i think a lot of people in business, men and women, have come to believe that the current administration is against business and against success. i'm just going to say that. whether that's absolutely correct or not, so many people i talk to believe that. >> well, they can be forgiven for believing it, because so many of the statements made by the administration and members of the administration create the impression of a hostile environment to business. let alone all of this talk about income inequality. income inequality basically says we don't like those who are more successful than others, but a lot of times a person who creates a business will go from, say $30,000 a year for him to 120 or $150,000, but the people who work for him will go from 30,000 to 50,000. they've made out, but the income inequality gap has grown larger. some people just don't understand that you have to have that incentive to make everything grow, and by trying to level everybody down, nothing is going to work. we'll have olaf's sweden of the 1970s where nothing got done and the system finally collapsed. >> the millionaire landowners in the fracking fields in north dakota and elsewhere have created jobs for the roustabouts and fieldhands, $100,000 a year jobs they didn't have, so maybe that's unequal, but it gives people great jobs. >> senator johnson, tax reform. i read senator ron wyden of oregon, a friend of mine, he wants to extend all 50 billion of the tax extenders. there's so many special-interest carvous, i'm a simple tack guy. i thought the senate financial committee was moving in a different direction, so i asked you, is tax reform dead? >> well, i hope -- hopefully senator wyden will take a look at some of these things in smaller chunks. if some of these tax extenders are such good policy, why didn't you make it permanent law? of course you don't, because companies keep having to run to congress. from my standpoint, if you could treat every corporation, tax corporate income at the shoulder level, treat them all like llcs and subchapter -- imagine incentivizing that. that's how you strengthen the mid sell class. >> especially the corporate tax. >> absolutely. >> i think wyden is pretty good. i was surprised to see him go down this road. >> we'll work on him. all right. >> he understands economic growth. >> all right. i like that. bob lutz, thank you very much, sir. as always we appreciate it. >> i'll miss you, larry. >> thanks, i'll still be around. we're looking at a lackluster stock market this morning, hasn't done anything all quarter. we're going to talk about that in just a moment, and senator johnson, who knows a thing or two about the markets. please stay with us. i'm kudlow. i'm kudlow. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ [ male announcer ] this man has an accomplished research and analytical group at his disposal. ♪ but even more impressive is how he puts it to work for his clients. ♪ morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones makes sense of investing. ♪ but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still gonna give me a heart attack. that's health in numbers. unitedhealthcare. out to the taxpayers and free markets, and we are going to miss you on television, although we know you're going to continue to be very active in the public debate. thank you, friend. larry, you've always had some of the most thoughtful discussions in business news, you don't skim an issue, you dig deep. that's something i will miss personally. best of all, you are the king dollar. i love what you stand for, and i'm always going to take it with me. >> larry, for nine years you've elevated the debate, you've made the discussion in this country more intelligent. thank you so much for having me on for so long, and thank you so much for everything you've done for the media and for our country. >> larry, you are my hero. you have spent more than a decade here at cnbc reminding everyone how important the free markets are, how they provide so much prosperity to americans and how they should spread throughout the world. ere's a pr. [ male announcer ] inside every box of cheerios are those great-tasting little o's made from carefully selected oats that can help lower cholesterol. is it a superhero? kinda. ♪ kinda. ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry, but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need. start building your confident retirement today. so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close! new at&t mobile share value plans our best value plans ever for business. female announcer: what will you man:with your new i'm getting a camera!? - i'm getting an espresso maker! - i'm getting a new smart phone! female announcer: through sunday at sleep train's big gift event get a $200 best buy gift card with purchase of selected beautyrest, posturepedic or tempur-pedic mattresses. or, get 24-months interest-free financing. - a new tv... - a laptop... - a game console! female announcer: sleep train's big gift event ends sunday. ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪ stocks finished today almost dead flat on the heels of mixed economic reports. let's get straight to it. we have ace investor and a great old friend of this show and great dear friend of mine, jason trender. chief strategy and investment officer. still with me on set, senator ron johnson. jase, you did a study almost a month ago. we showed a couple of the important things. number one, profits and margin expansion as a driving force behind this stock market rally, not the fed, not buy-backs, and that some extent, whether we like it or not, behind the profits and the margins is very low wages. that has made it profitable for business. please talk to me about this, because i -- nobody, nobody likes to go down this road. >> this is one of the i would argue, one of the great tensions we have in society right now, part of the reason we're seeing a lot of discussion about income equality. corporate profits are at all-time highs. wages as a percentage of corporate profits are at all-time lows, so companies are doing a great job of wringing out all the costs, that's very good from an investment point of view. i would argue, though, that a lot of our policies are exacerbating, not narrowing the differences between rich and poor. this is one of these strange periods where capital is benefiting at the expense of labor, but not because companies are afraid, they're hoarding cash, they're not expanding, they're fork cussing more on things like financial engineering, perhaps acquisitions. >> but it's not all the rally. the five-year rally is not all buy-backs, but not all a fed bubble. >> that's absolutely correct. we are really going through a second industrial revolution right now. whether it's big data, whether it's robotics, whether -- there's fracking, you could look at all of these things that puts more and more pressure on labor. very good for profit margins, very good for the stock market, but we have to embrace these technologies and own them so that the spoils can be more adequately distributed. >> senator johnson, before we were talking about corporate tax reform. corporate tax reform, i want to abolish the corporate talks all together. studies have been done, actually helps the wage earner the most. >> 70% of the incidence of the tax falls on the wage earners, 30% on consumers. corporations is a piece of paper. real people feel the pain of corporate tax, and of course if we could have an incentivizing tax structure, you know, really get our economy moving, a robust economy, that's where businesses have to compete for labor. that drives wages up, not minimum wages in, not dictates from the government. >> taxes are a price, a cost. so if you get higher prices, you get less. >> before everyone leaves, bullish or bearing right now? >> i'm bullish. >> you are? >> very bullish. i think inflation will stay low. i think the stock market is the asset class, there's no alternative. you have to be involved in large-cap equities. >> we had corporate, good record corporate profits come out of the gdp report in the fourth quarter, so you're a bull. >> i'm a bull. can i give this to you? >> yes. >> you've got me on since the beginning since i started my company, my career. i was thinking of getting you a gift. i was racking my brain. i saw this in the office. these are the two most optimistic guys that i know. dwight eisenhower and ronald reagan. you should be right there in the middle. thank you, my friend for all the that you've done and all the support that you've given me. it means a tremendous amount. >> and more to come. my pleasure. jason, thanks senator ron johnson coming up for the whole show. it doesn't get any better than that. thank you very much. please, folks, tomorrow night, we have the very last "the kudlow report." we'll have steve forbes and senate minority leader mitch mcconnell. a bunch of other frequent reporters. i'm told there are even surprises i don't know about. we'll see you tomorrow night on larry kudlow. larry kudlow. we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. [ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. with investment information, risks, fees and expenses >> narrator: in this episode of "american greed"... at age 54, real-estate investor ed okun appears to be having a classic mid-life crisis. he's burning through cash and declaring his love at first sight for a woman half his age. >> and i can't believe she married me. >> narrator: but the money okun spends is not his. it belongs to people who just wanted to keep it safe. >> it never occurred to me that the money could be taken out of an escrow account. >> narrator: but ed okun, deeply in love, just can't stop. >> he bought three jets, a helicopter, a salon, luxury condos, luxury homes. there was no end to his greed.

Related Keywords

Vietnam , Republic Of , Louisiana , United States , Germany , Iran , China , Florida , Wisconsin , Georgia , New Zealand , Oregon , Russia , Washington , District Of Columbia , Ukraine , Iraq , Massachusetts , Hong Kong , North Dakota , Spain , Americans , America , Ukrainian , American , Ron Wyden , Larry Kudlow , Steve Moore , Scott Walker , Kudlow Cramer , Dwight Eisenhower , Ronald Reagan , Jim Cramer , Zach Galifianakis , Vladimir Putin , John Harwood , Edward Jones , Ron Johnson , Harry Reid , David Axelrod , Al Qaeda , Steve Forbes , Mister Tompkins , Warner Mary Landrieu , Jimmy Cramer , Mitch Mcconnell , Bob Lutz , John F Kennedy , D Paul Ryan ,