Spending was five or six years ago and the air force is run down, the average aircraft 27 years, navy the smallest, army is run down and equipment around the world. You look around the world, the world is falling apart. We have to do the rebuild and do it fast. David john, it sounds like an upgrade. No, we dont, the 54 billion is way too much. That would render the u. S. The 7th Largest Military end inspector in the world. We dont have a problem of spending too much on a military. Were spending too much on a military that has too much globally that is nothing to do with our national defense. Cut defense spending and defend the u. S. David rich, its true as a percent of gdp our military spending is nowhere near where it used to be and nowhere near other countries. Russia spends on the military and we spend half that, 3. 3 , what do you think . Yeah, and we dont even know what chinas is. Look, i agree with steve, that the threats in the world are changing and theyre becoming increasingly technologically driven. We won the race to the atom oba obama bomb, and we won the cold war for the same reason and investing in military r and d and we cant afford to lose that race to china or russia. David bruce, look at raw numbers, we can put up a graph or a chart, in 2011, that wasnt that long ago during the obama administration, we were spending 669 and now over 500 billion. Thats less than two years ago. Part of me thinks this is merely tough talk by donald to blunt the criticism hes facing over his ties to russia, but more broadly on some of this stuff, it appears hes banging the drums for war and same time theyre proposing a 30 cut in the budget of the state department, unless were going to get the trump and Kushner Family to well, arent we going to talk to anybody or spend money on defense. David we can talk. As i said before, emack, just cut the wine expenses for the state department, that would cut the budget in half right there. Thats funny and 125 billion in waste at the pentagon a recent finding. David right. I think the president is not talking about banging the drums through war, but peace through strength and the gdp is a third of what the spending was in the 50s. And the chart you saw, fastest drawdown in decades. What happened in the obama administration, the obama reset that didnt work, the flawed assumptions about containing isis, north korea flawed assumptions. Flawed assumptions about iran. Im with rich and steve, the technological capability of our enemies is increasing, we need to increase spending. David sabrina, i understand what john is saying about wasting money here and there, and like bureaucracy in many ways, not in all ways. But President Trump has focused on a couple of wasteful programs and cut them. So hes addressing that issue, no . Well, right, thats a good thing and its important to keep in mind that this is actually only about 3 higher than the obama administrations last proposed budget for military spending. David a good point. Its not that out of whack from where we were. The important thing, making sure were not just having more spending, but smarter spending. I think there is a need for more readiness within our military to be able to have the training and the equipment and the mechanics sort of taking care of more quickly, but i think the big piece missing and this is what i want to make sure that were hearing more about is that technological peace, making sure were investing smartly and not just the big shiny objects that sort of make us feel important. Its behind the scenes. To bruces point, i think that we want to be careful if were paying for this by cutting the first line of defense, which is our diplomacy, we should just be careful be that. David but, steve, theres one thing about the r and d that concerns me. Very often we start a program and it takes years, sometimes decades to complete it. By the time its completed, the technology is obsolete. Unfortunately, the defense department, like the food and Drug Administration practices moores lawyer spelled backwards. The Weapons Systems go on and on and on and thats where real we form, general mattis, now secretary of defense, one of his Top Priorities has got to be reform this whole acquisition process. Theres no reason it should take 20 years, we should get a new system in four or five years. If you have to pull it out what they call it skunk works, pull out of the normal bureaucracy and give it to a group and say go to it, go do it. David for those who dont know, moores law, Technology Every year gets cheaper and doing more and steve says its the opposite in the military, to which you say . Steve is right. Look at the f35 fighter, you know, everybody had to have a say and now it looks like a, you know, it was created by a committee and took too long and cost too much and nobody really likes it. We need these skunk works and we need to invite the in the likes of elon musk, if he wants to participate, to blow some fresh air into our military r d. David bruce, isnt it good that donald trump is it looking at some programs that apparently president obama didnt as intently as to whether theyre wasteful or not . Well, sure, i mean, i think that thats what we need to know here. Where does he want to spend the money, if hes going to take out an inefficient Aircraft Carrier that costs us a lot to maintain and replace it with. David fighter jets. With cyber technology, whatever it is and also is the master deal maker, going to ask our friends at n. A. T. O. Kick in more. I dont see it makes sense to increase the budget. David but, emack, hes getting certain concessions from certain contractors with the fog. Thats right, hes right to look there. Because, talk about bloated bureaucracy, theres a circus hall of mirrors of consultants there. And the president is right to look at the bureaucratic bloat there. David john, go ahead. I think that conservatives cant have it both ways. You cant be for small government and then support the increase of the military thats charged with defending the free world and with doing nation building, all sorts of things that have nothing to do with our national defense. This goes against everything republicans claim to believe. David but sabrina, hasnt trump made it clear, President Trump, hes going to take a different stance at least than gw bush did on nation building . Hes not for pushing it out that far particularly in the middle east . Weve heard that from other republicans in the past and things change. Well see how it plays out. I think that we face some very difficult threats today that require different kinds of alliances and were in a very different world than we were 20, 30 years ago, and so, i think its important that we Pay Attention to the military, but i think we just really need to make sure that were figuring out if its smarter. David well, and spending our money wisely, thats what this gang, thank you very much. Coming up, the white houses plan to give americans a tax credit to help pay for health care. Some republicans stood up and cheered when they heard that, others worry it could turn into a whole new subsidy. Well explain next. This is the silverado special edition. This is one gorgeous truck. Oh, did i say theres only one special edition . Because, actually theres five. Ooohh aaaahh uh hooooly mackerel. Wow. Nice. Strength and style. Its truck month. Get 0 financing for 60 months plus find your tag and get 5500 on select Chevy Silverado pickups when you finance with gm financial. Find new roads at your local chevy dealer. Obamacare. I am leland vittert. Now back to forbes on fox. David President Trump giving americans a clims glimpse of what he wants to replace obamacare with this week take a listen. We should help americans purchase their insurance through tax credits and expanded savings accounts. Now some members of his parties say those tax credits could turn into entitlements for those who dont pay taxes. When i first heard the president i was happy i could deduct my own Health Expenses from my own paycheck, that made me happy, didnt it make you happy . Absolutely, david. I think that the key to remember here, we want to keep moving the ball down the field in the right direction and going towards tax credits is doing that. Its giving people more ownership over their health care dollars. Theyre a little too ideological. All of the replacement plans out there, most of them, at least, include a universal tax credit for people making 3 to 400 below the poverty lines. If were going to get hung up on that as a new entitlement, i think were losing sight of the real goals of the game. Neil i interviewed rand paul, he warned about tax credits turning into entitlements, but said theres an exception for taxpayers. Your bill would have a provider, the tax credits are fine as long as youre a taxpayer, you dont want it to be another welfare program. We have an expanded Health Savings account. In my replacement bill we let every individual join a group plan through an association. David john, in the context of what rand paul is saying, a tax credit sounds like a good idea, didnt it . No, i dont. I think he misses the point. For my daytoday, its more crucial to are me top a laptop ap wifi, we dont need a tax credit, we go into the market and buy it. Why do we act as health care is some sort of different good . Its a market good like anybody else, President Trump should free people to buy what they need. David its a market good, thats through, but with obamacare, deductibles, a family has to pay in a bronze plan, 12,000 before they reach the point where insurance kicks in. You might as well not have any insurance. Better to deduct the first dollar you pay for health care from your paycheck. The democrats confused Insurance Coverage to access to health care and Affordable Health care, we need to more more in a free market direction. I dont know why in terms of Health Insurance we dont do with the or what we do with food. Food stamps and the government doesnt run agriculture as they used to in russia and china and starve millions to death. Theyll have free markets in health care, and safety nets for people with i think so this like having insurance funds for people who truly cant get insurance, but let the free market work. David emack, you know taxes better than anybody i know. What do you think about this tax credit idea . You know, i kind of like it, i hear sabrina says. And when you looked at the bronze plan, you looked at catastrophic, chaos insurance. The tax credits, i think sabrina is right, dont let the purpose be the enemy of the food. Earned income tax credit is improper and somewhat fraudulent. A lot of money goes out the door. I hear what conservatives are saying, tax credits immediate money out the door and abused tax credits, a lot of fraud there. I think what rand paul is saying, under so like the way to go. David tax credits for people who pay taxes is a good thing, right, for health care . The problem with all of this, theyve had seven years to monkey around with this and still dont have a plan. The tax credit the conservatives arent wild about, it would act like a gift car and go back to that bronze statistic. Most the people who buy bronze get a subsidy so theyre not paying that. David thats part of the problem, rich, is that the subsidies, cant go on much longer, can they . I mean, its bankrupting the nation. Yes, it is, but i agree with sabrina and liz that we cant let perfect be the enemy of good. Were not going to get a peerfree market system the first time around. Lets remember who elected trump, it wasnt just free market conservatives. You know, it was people who want to put Americans First and they came from many of the poorer states and the devastated communities. So weve got to get something through that moves health care in the right direction and its not going to be perfect this time. David and john, what about steves point, theres a difference between coverage, which democrats think everybody should be covered, thats fine if you get good health care, but it doesnt matter if you have insurance if you cant afford to go to the doctor, right . Well, steve is exactly right, what hes saying is were not talking about insurance here. If we were talking about insurance, as in catastrophic coverage for when you really need it, everyone would have insurance because it would be so cheap. What were talking about is giving people access to something that is not insurance, so, of course, its expensive. David steve . The bottom line, in terms of the republicans, the proposal they have in terms of these tax credits, theyre going to cut off the people with the least, and theyre not going to be able to take the political heat for it. So do something, if you want to do Something Like food stamps, get good free markets and the government out of the rest of it. David capitalism with safety nets. The cashin in gang ready to roll the bottom of the hour. Eric President Trump laying out an aggressive agenda. The question, how do pay for it. The president as budget director Dick Mulvaney is here. And the unions mandated could hurt those they were supposed to help. A fast food chain is proving us right. David it could be a travel war. E uch eu temporarily halting u. S. Citizens in europe over immigration policies. Could that cost us job right what if technology gave us the power to turn this enemy into an ally . Microsoft and its partners are using smart traps to capture mosquitoes and sequence their dna to fight disease. There are over 100 million pieces of dna in every sample. With the microsoft cloud, we can analyze the data faster than ever before. If we can detect new viruses before they spread, we may someday prevent outbreaks before they begin. We asked people to write down the things they love to do most on these balloons. Travel with my daughter. Roller derby. Now give up half of em. Do i have to . This is a tough financial choice we could face when we retire. But, if we start saving even just 1 more of our annual income. We could keep doing all the things we love. Prudential. Bring your challenges. The European Parliament apparently trying to send a message to our president over his new immigration policies just voted to temporarily end visafree travel for americans who visit europe. So, steve, whose economy suffers, ours or theirs . We may particular a little hit, david. Theirs suffer the most. We dont allow for visafree for five countries out of those in europe. Its legitimate to know who youre coming from, what country, if you have proper programs there, to make sure bad guys arent travelling through to us. Inge theyll back off, they need the tourism from the u. S. David doesnt this back fire on this . Of course, when you block people into the u. S. , theyre going to retaliate. It hurts us both and i dont think it makes us safer. David and an increase of americans traveled last year partly because the europe went down in value so its cheaper for americans to go there. Yeah, and you have an improving american economy. Western europe has become kind of a disneyland for adults and americans like to travel there and see the way life once was and europe would be shooting itself in the foot if they tried to stop it or halt it. David on the other hand, bruce, it wont go completely without cost for us, this could affect commerce as well on our side, right . Well, yeah, i mean, here is the thing. This whole thing, the travel ban, it wasnt thought through and youre going to get more of this unless they stop, and less until they stop making these decisions in a vacuum. Its bad, we dont want this, theyre our allies. David its a kind of blackmail, isnt it . Not exactly blackmail. I think the eu is going to back down as well. I think we have to keep in mind every action that we have has an equal and opposite reaction and we have to keep in mind this requires some diplomacy. At the same time, i think Everybody Needs to come abandon. Every country has the right to determine who comes in and out of the country and we dont have the same views. Thats okay, we in america have a different set of views than in japan or germany and thats the way it is. David emack, what about the money . Because im a radical moderate union, and the european union, like watching crabgrass grow. I dont would they do this. David the european economy is stagnant. Its like shooting themselves in the foot. Theyve been doing it when raising regulations and the like grow half the rate of the u. S. Even in this environment. And this part and parcel of their own destruction. David on, were becoming more free market and taxing businesses and so forth. Dont you think the same thing is going to happen over there eventually . I certainly hope so, i dont think that what were doing here indicates free market when were treeing to block the free flow of people. You wouldnt do it with goods, dont do it with people. David the last word. The dow hitting another record this week, topping 21,000 for the First Time Ever and our and we hope to see you there on monday. Meantime, back with stocks informers say are headed higher despite the fact, emack, were at record numbers. Target resources by the way. They do nat gas, liquid gas, a player in pipelines, looking good. John, do you like the gas company. In a deregulated company, yes, i do. David you like green hill and company, what do they do. Same idea in deregulated idea there will be a lot more m a. David mergers and acquisitions, a lot of that going on. It was an ice age for that under obama and i think john is right. David we had snap this week, a very big ipo. Thank you, gang, appreciate it. Have a wonderful week on fox. The number one business block continues with eric bolling and cashin in. President trump outlining his aggressive todo list this week to the nation from a massive tax overhaul to repealing and replacing obamacare, to building a border wall and a trillion dollar infrastructure plan to name a few. Now, democrats have some in his own party how hell pay for it all. Im eric bolling, well get to the cashin in panel in a moment. But first, director mulvaney. Ironically democrats are all of a sudden worried about our debt when it comes to this president s agenda. Do you see a little hypocrisy there