This is a rush transcript of “Your World” on October 28, 2021. This copy may not be in its final form and may be updated.
NEIL CAVUTO, FOX NEWS ANCHOR: Well, just call it a framework in progress. But, man oh, man, is it ever an expensive framework, we’re told probably about $1.75 trillion, probably closer to $1.85 trillion. But who’s counting?
What we do know right now is that really they’re not in total agreement on all of this. Now, among some of the goodies packed into this for, $400 billion for child care and preschool, $150 billion for home care for the older population, $200 billion in a child tax, an earned income tax credit. Some of those could be phased out.
The plan also includes about a half-trillion dollars for clean energy- related spending, $130 billion to help shore up the Affordable Care Act, $150 billion separately on housing, and then other investments that total close to $90 billion.
Now, when it comes to paying for all of this, a 15 percent minimum tax on companies, about $350 billion coming from companies that move their jobs overseas, no details on how they will police that. Another $400 billion to help the IRS close the so-called tax gap and make sure those who are dodging taxes do not.
Various other loopholes that could call for $250 billion worth of trying to close them. Now, we have been that way before. Is this the measure to finally get it done now?
Welcome, everybody. I’m Neil Cavuto, and this is “Your World.”
And this is a divided world among moderates, who think that about $1.75 trillion is about right and progressives who say that’s about half what they think would be remotely right. No indications as yet as to whether Bernie Sanders is going along with any of this. And all of this as the president’s on his way to Rome with a message before he left, get this done.
Will it get done?
The latest right now from Chad Pergram on Capitol Hill — Chad.
CHAD PERGRAM, FOX NEWS CONGRESSIONAL CORRESPONDENT: Good afternoon, Neil.
The text of the social spending bill is out. It is several 1,000 pages. It will take days for members to process. We know family leave is out. We know the bill includes $550 billion to cut carbon emissions by 2030. But this is not the final text. It will be updated.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D-CA): People have said: I want to see text. The text is up. The text is up for review, for consideration, for review.
People will then say, well, this should be this way or clarification or addition, subtraction, whatever it is. This is the legislative process.
(END VIDEO CLIP)
PERGRAM: House Speaker Nancy Pelosi was noncommittal on when the House would vote on the social spending plan. But she was even more cryptic when pressed if the House could vote on the infrastructure bill tonight.
(BEGIN VIDEO CLIP)
QUESTION: Are you holding an infrastructure vote today? Have you made that decision?
So, are you holding an infrastructure vote today? Are you holding an infrastructure…
PELOSI: No, I’m just getting my mask.
QUESTION: But that’s very important.
QUESTION: Will there be an infrastructure vote today, Madam Speaker?
QUESTION: That sounds like it’s a no, if you’re not going to say yes.
(END VIDEO CLIP)
PERGRAM: Progressives said they’d hold the infrastructure bill hostage unless they got bill text. Liberals are leery.
(BEGIN VIDEO CLIP)
REP. ALEXANDRIA OCASIO-CORTEZ (D-NY): There’s been so many changes in this process, so many people yes, no, doing the hokeypokey, one foot in, one foot out.
PERGRAM: So, certainly, to be clear, doesn’t have to be legislative text? It could be enough of a framework, enough handshakes, enough — those types of assurances?
OCASIO-CORTEZ: I think we need something a little bit more than just something on the back of an envelope.
(END VIDEO CLIP)
PERGRAM: Democrats can only lose three of their members and still pass the infrastructure bill without GOP help.
House Minority Leader Kevin McCarthy doubted that many of his members would vote yes — Neil.
CAVUTO: All right, thank you very much for that. We will be waiting for updates on whether they can get anything done there.
But the president, of course, is heading out to Rome, which is where you will find our Peter Doocy.
Before he left, Peter, he made it very clear, sort of like do it for the Gipper, let’s get this thing done. So he put out all the stops. Now the question is whether they will deliver the goods, right?
PETER DOOCY, FOX NEWS WHITE HOUSE CORRESPONDENT: Yes.
And a really interesting thing to add on to why President Biden was in such a hurry to get things done before he left for Rome. He’s been claiming for weeks that fellow world leaders reach out to him asking him if the United States can get anything done in Congress, and he left without Congress getting anything done to advance his agenda, at least firmly.
And that’s even though he started today with a spring in his step.
(BEGIN VIDEO CLIP)
QUESTION: What’s your message progressives who don’t trust Manchin and Sinema?
JOE BIDEN, PRESIDENT OF THE UNITED STATES: It’s a good day.
QUESTION: Is Bernie Sanders on board, sir?
BIDEN: Everybody’s on — you’re on board, aren’t you?
(END VIDEO CLIP)
DOOCY: The president said what happens with votes in Congress in the next week could define his legacy, a legacy that today he’s tried to shape the most as a statesman.
He often brags about knowing many world leaders for many years, including some on a first-name basis. The things he plans to push in Rome at the G20 this week, a new global minimum tax for corporations, a plan to resume nuclear talks with Iran, and addressing the broken supply chains.
But the country Biden calls America’s top adversary, Russia, isn’t coming. Neither is the country that Biden calls America’s top competitor, China.
(BEGIN VIDEO CLIP)
JAKE SULLIVAN, U.S. NATIONAL SECURITY ADVISER: And I think you will see the U.S. and Europe front and center at this G20, as we deal with the fact that neither the leaders of Russia nor China will be present in the room in Rome. And so that dynamic will be interesting to watch unfold.
(END VIDEO CLIP)
DOOCY: President Biden isn’t set to be here for another couple hours, but the heads of a group representing Vatican reporters and a group representing White House reporters, White House Correspondents Association, are already saying they are disappointed that he’s not going to bring press in with him to a meeting tomorrow with Pope Francis.
That is a break with tradition — Neil.
CAVUTO: All right, that’s very interesting. Peter Doocy, thank you very, very much.
So, what is the status of this, and particularly among moderate members right now, who did get the price tag of this thing down, if you consider $1.75 trillion a lean, mean package? It is what it is.
But there’s still significant division among the so-called moderates and the progressives, who want a lot more.
Representative Raja Krishnamoorthi, the Illinois congressman, Democrat, with us right now.
Congressman, very good to have you.
We don’t know a lot about the ever-changing details. We know enough that it is closer to what moderates wanted. Is it closer to what you wanted?
REP. RAJA KRISHNAMOORTHI (D-IL): Yes, I think it’s a very good bill.
I absolutely need that physical infrastructure bill to get signed into law. We have a lot of roads, bridges, airports, and other similar needs that need to be addressed in Illinois. But this additional bill, what we’re calling the Build Back Better Act, has some key provisions that are going to help employers, employees and families.
So, for instance, I helped to craft a measure to invest in work force development. As you know, I have worked with Republicans over the years to put money into skills-based education and vocational education, which have been ignored for many, many years.
And now this puts additional resources in there. And that helps to address a severe labor shortage which our employers have. Similarly, a lot of moms have dropped out of the work force because they can’t get access to child care. And so this invests in helping to make sure that those moms, those working moms, can go back to work and their children are cared for, even as we are trying to get more goods and services produced, and we’re trying to deal with a shortage of those too.
CAVUTO: So, the way it’s paid for includes, among other things, ultimately raising the top rate to about 45 percent, if you include all surtaxes.
If you include just extending the 3.8 percent Medicare tax, we’re really looking at a top rate of close to 50 percent. Do you think at that point, Congressman, the rich are then paying their fair share at 50 percent?
KRISHNAMOORTHI: Well, as I understand that, there’s a surtax for people who are earning more than $10 million.
But where the bulk of the money in this package will come from is, for instance, corporations that are paying nothing currently. My Republican and my Democratic constituents, as well as…
CAVUTO: You’re referring to the 15 percent minimum tax…
KRISHNAMOORTHI: Yes. Yes, sir. Yes, sir. Yes, sir.
CAVUTO: … that that is not gone.
Do you think, though, that that is disproportionately held with companies and high net worth individuals who are now responsible for paying for virtually all of this?
KRISHNAMOORTHI: Well, I think that there’s a lot of folks who are not paying anything right now.
And, as I was going to say, my constituents, whether they’re Republicans, Democrats, or independents, believe that everybody should pay something under the federal tax code if they are enjoying…
CAVUTO: But, Congressman, about more than half the American people are not paying any taxes at all.
Now, there might be very justifiable reasons for some of them, but this goes disproportionately on the well-to-do to get this bill. So when your party talks about fair share for the upper income, I get that, but there’s a whole swathe of Americans who aren’t paying anything in federal income taxes.
KRISHNAMOORTHI: Well, remember, I think you might be referring to some people who are earning so little that it’s very challenging for them to pay.
And so they get tax credits or, under the tax code, they don’t pay.
CAVUTO: No, no, no, I understand that. I’m actually not — I’m not talking about that at all. I mean, I understand payroll taxes and all that.
I guess what I’m saying, going forward, especially when the president indicated and tried to ease progressives’ concern that not enough is being addressed to look at other provisions that they have since dumped, if there’s going to be more spending following this, will it be along the same lines and paid for the same way?
KRISHNAMOORTHI: The short answer is, I don’t know.
Right now, what we have before us is this bill. And I think that everybody’s trying to get their arms around it. I’m very hopeful. And I think that, again, when I talk to my constituents — and, again, I represent a very diverse set of people…
KRISHNAMOORTHI: … whether it’s small businesses or otherwise — they’re supportive of these types of tax provisions.
CAVUTO: So, very quickly, Congressman, if I can, you’re for two separate votes. You’re not for combining these measures. You want the infrastructure vote, the original one, that had 19 Republicans voted for it to the Senate, you want that, and then separately address this.
There are progressives who want the two merged. Where are you on that?
KRISHNAMOORTHI: I don’t think they will be merged.
I think that there’s going to be two separate votes. I don’t know how and when those — that second vote will happen with regards to the Building Back Better Act. But I think that the physical infrastructure vote, I’m hoping is going to happen today. And I plan to vote for it. And I think a lot of people are going to vote for it.
I could use some Republicans — we could use some Republicans supporting that as well. And I hope that Minority Leader McCarthy does not whip against that physical infrastructure bill. It is so crucial for our businesses and for our families and others that we have as many people voting for it today as possible.
CAVUTO: All right, we will look at the timeline, see if it’s all doable.
Congressman Krishnamoorthi, Democrat of Illinois, very good seeing you, sir. Thanks for taking the time.
KRISHNAMOORTHI: Same here, Neil. Thank you, sir.
CAVUTO: Well, Republican Senator Tim Scott was telling me on FOX Business, which, if you don’t get, you should demand, because you missed an intriguing point he made about the trust factor involved in this whole spending process and whether the president has been level with the American people. This is from Senator Scott.
(BEGIN VIDEO CLIP)
SEN. TIM SCOTT (R-SC): I do think there’s some — a loss of trust between the Biden administration and the bipartisan coalition that supported the infrastructure package.
Early on, you heard that these were two separate votes, and then they were fused together. Then they were not, and now they are again.
So, that confusion and that lack of trust and transparency…
CAVUTO: Can you explain to me, Senator?
I was talking to a producer. And had they indeed been put back together? Because that would negate the need to even vote on an infrastructure-only package today. I would imagine Democrats would have a problem with that as well, wouldn’t they?
T. SCOTT: Well, the progressives have said that they they’re not willing to move forward unless it’s all in one.
T. SCOTT: And so they’re discussing over the last several days is whether or not having a vote now with a promise in the future is fusing those two together.
Some in the Democrat Party say that you have to have both of those votes together, which means that the consensus for one is a prerequisite for the first vote. So, in my opinion, and, frankly, those shared by most people on both sides of the aisle, that’s bringing those two back together.
But the lack of confidence and transparency in this process should be concerning to every single American. An infrastructure package that spends less than 10 percent of the overall resources on roads and bridges over the next five years should be concerning.
We’re back to the days where you have to pass the legislation to know what’s in it. That’s bad news for every single American. And it feels like the great American shakedown, especially as we move into the larger, more problematic package.
CAVUTO: You know what’s interesting on it, Senator — you know these details for better than I — is that the president has been saying that economists say this is all paid for, don’t have to worry, but how would he know that because this is very different than what was originally talked about?
A, it’s half the price, but a lot more revenues than thought, raisers, than was the case, so it’s very different than anything before. And we don’t even know what this final package is. So where is he getting that information?
T. SCOTT: Exactly.
Well, out of thin air, to be honest with you. There’s no way in the world you can call this package paid for. Now only has he said it’s paid for, but he also says it costs nothing. So costing nothing and being paid for means taking more money out of pockets of working Americans, on top of the already negative impact of inflation for many Americans well below $400,000.
Their gas prices have gone from a $1.99 in December to $3.23 when I filled up in Charleston just this past Monday. So, on top of that, we’re going to see a $1.75 trillion package that’s paid for by higher taxes.
(END VIDEO CLIP)
CAVUTO: All right, not surprisingly, not a fan of this Democrat-only package has being cooked up.
By the way, before we go to break here, I want to let that we are in the middle of corporate earnings time for the third quarter. Amazon just out with numbers, and I got to tell you, unless I’m missing something, wildly missed on both the revenue and the earnings front.
Furthermore, Amazon stock is dropping close to 5 percent right now on some very dismal fourth-quarter guidance and, in fact, telegraphing maybe a tough Christmas in terms of activity at the online retailer.
Again, Amazon surprising analysts on the downside. This flies in the face of other earnings we have been getting that have largely been better than expected and further not warning or telegraphing problems.
All the major market averages were up today ahead of this, including the Nasdaq, where Amazon resides. Nasdaq, in fact, finished at a record.
Stay with us. You’re watching “Your World.”
(BEGIN VIDEO CLIP)
REP. RASHIDA TLAIB (D-MI): I have a message for you as Chevron CEO. I mean, you made what, $29 million, last year in poisoning the planet?
REP. JODY HICE (R-GA): One of our colleagues said we only have 11 years left to save the planet. Are you kidding me?
REP. RO KHANNA (D-CA): Are you committed to lowering the production, as Paris accords say, or no? It’s…
UNIDENTIFIED MALE: The issue, Mr. Chairman…
KHANNA: It’s a yes or no.
REP. JIM JORDAN (R-OH): Reduce production at the same time the president of the United States is begging OPEC to increase production. That may be the dumbest thing I have ever heard.
(END VIDEO CLIP)
CAVUTO: Maybe just me, but in that panel discussion about climate change, not a lot of discussion about, well, gas prices’ change, because that has been stark, and most Americans see it every day when they go to fill up their tank if they can afford that.
So, Hillary Vaughn on Capitol Hill, what came of this meeting today?
HILLARY VAUGHN, FOX NEWS CORRESPONDENT: Well, Neil, there wasn’t a lot of talk about what average Americans are worried about, which is rising gas prices.
That is not the reason why Democrats in Congress dragged these oil CEOs and company presidents virtually to the Hill. They also didn’t bring them here to talk about rising energy prices, which is something Americans are keeping their eye on. Heating oil, natural gas, propane, electric are all going to be more expensive this winter.
But instead of addressing the cold winter ahead for many Americans and what Congress could do about it, Democrats instead turned their focus to global warming.
Congresswoman AOC grilled CEOs about how involved they have been in lobbying efforts to try to stop the clean climate green energy reconciliation package that progressives have been working on, saying that she thinks that what gets lost in these conversations is that they have to live in the future and that, essentially, these oil companies are — quote — “setting the world on fire.”
But they also did hear today from an ex-Keystone Pipeline worker that lost his job days after the president took office and made his first order of business to cancel the Keystone XL.
Neil Crabtree says he is a casualty of Biden’s Build Back Better agenda.
(BEGIN VIDEO CLIP)
NEIL CRABTREE, FORMER KEYSTONE XL PIPELINE WORKER: Three hours after President Biden’s inauguration, I lost my job on the construction of the Keystone Pipeline.
My crisis right now isn’t the climate. My crisis is the mortgage payments I have due every month. It’s the food I need to put on my table. And it’s the health care I need to provide to my family. And instead of demonizing the CEOs and presidents that are here today, I would like to thank them for the opportunities they provided me.
(END VIDEO CLIP)
VAUGHN: And, Neil, the big message we heard not just from Crabtree, but in everyday Americans that we talked to around the country, is, they are concerned about what’s happening to them today, right now.
And it is those rising energy prices and those rising gas prices. But, again, when the committee had an opportunity to talk about this issue, and really try to come up with some solutions, not really any solutions came out of that — Neil.
CAVUTO: No, a lot more talking about the climate than the nasty price climate here.
Thank you very, very much. Just amazing. Hillary Vaughn in Washington on that.
There’s an old line that, when life gives you the lemons, make lemonade. It appears to me that there’s a new view being championed on inflation right now, that maybe it isn’t so bad. This kind of proves it. Take a look.
(BEGIN VIDEO CLIP)
JEN PSAKI, WHITE HOUSE PRESS SECRETARY: We also anticipated that there could be increases as the economy was turning back on.
BIDEN: I have 17 Nobel laureates in economics sent me a letter recently saying that my proposals would actually reduce inflation.
PSAKI: We’re at this point because the unemployment rate has come down and been cut in half, because — because people are buying more goods, because people are traveling, and because demand is up.
(END VIDEO CLIP)
CAVUTO: All right, so this inflation thing not altogether bad news.
Now, there is something to what the White House is saying on this, that we came from an economy in park a year ago and all of a sudden any pickup in activity, the difference can be startling. And that did lead to an uptick in prices as well.
But that is now exceeding the wage gains Americans are experiencing, because wages are indeed going up. But, unfortunately, they’re being dwarfed by the cost of things that are going up a lot faster.
To Gary Kaltbaum on this argument that inflation isn’t that big of a deal.
I think that’s what they’re saying, Gary. What do you think?
GARY KALTBAUM, FOX BUSINESS CONTRIBUTOR: Well tell that to aunt Mary and uncle Bob.
And, look, I will give them the fact that we’re coming out of the pandemic. But I’m not going to go all Howard Berg on you and speed-read.
KALTBAUM: I have got a little thing here of 6,000 products from — that use petroleum products, petroleum to make them, including solar panels.
And when I see Chipotle and General Mills and ConAgra and all these companies just coming out straight out and say, we can’t afford to not raise prices, that is higher prices to the consumer. And I can tell you, the more it persists, if this persists, consumer spending is going to come down because they’re going to have less to buy.
And we’re going to get a lot — we’re already seeing a lot of shrinkflation. And I will be very upset if Yodels, instead of coming into a 10-pack, would be a nine-pack. So…
CAVUTO: They better — no, no, they better not do that.
CAVUTO: But it is interesting, because inflation stops when people start paying those higher prices.
And all of these companies that you mentioned, McDonald’s and Chipotle and Kraft, they’re actually liking what they’re seeing, because they’re so far easily passing along these increases because people, maybe with improved balance sheets and better financial picture, are paying it. But that can be a short-lived phenomenon. Right?
There’s a point they do say no mas. We’re not there yet. When will we be?
KALTBAUM: And that is where the word persists comes in. The longer it stays this way, and if it worsens, the tougher it’s going to be.
And, Neil, look, when you see things like gas prices up 110 percent from a year ago, we’re talking about $100 billion out of consumers’ pockets. That’s just on filling up the gas tank. But you’re also seeing it in copper and aluminum and coffee and cotton. And everything that moves, everything that goes into production of anything is going up, and it gets passed through.
And if it gets into the system, you end up with hoarding. And if you end up with hoarding, you end up with a vicious cycle of shortages, which you are seeing right now. And that feeds on itself. And I don’t know if we’re there yet where automatically prices go up, where people and businesses worry, if I don’t buy the heck out of something today, I’m going to pay higher tomorrow.
If we get to that point, that’s when you get into a spiraling effect. I don’t think we’re there. But if they think this is much ado about nothing and they do nothing about it or just think everything’s just A-OK, oh, we will get there and it will not be fun.
CAVUTO: All right, my ceiling on the Ring Ding thing is 50 bucks. You got over that, game over.
CAVUTO: All right, thank you very much, my friend.
KALTBAUM: How dare they?
CAVUTO: Gary Kaltbaum following all these developments.
Well, we told you about all the big spending plans in Washington, but not a penny put toward what’s happening on the border, and particularly the caravans coming our way at the border — after this.
CAVUTO: All right, no sooner did an FDA panel said it’s OK for kids to get Pfizer’s vaccine shots than we’re getting word that California is ready to start administering 1.2 million of them soon — after this.
CAVUTO: All right, we’re getting word right now that that migrant caravan that has been making its way up through Central America and Mexico now has apparently doubled in size to close to 4,000, all trying to make their way to the border.
Rodney Scott is the former Border Patrol chief, served in both the Trump and the Biden administrations.
Very good to have you, Chief. And thank you for taking the time.
Do we know what Mexico is doing as, let’s say, a caravan like this or a large group — and there are various sized groups all the time that coalesce. But what does Mexico do it when such groups gather and keep moving north?
RODNEY SCOTT, FORMER BORDER PATROL CHIEF: Thank you for having me on, Neil.
The answer to that question varies. And what the government of Mexico does is directly proportionate to what the U.S. asks Mexico to do and then the pressure that we put on them to help us out, if you will.
As we saw in the last administration, Mexico is clearly capable of stepping up, enforcing their own immigration laws, and then helping create what we call then a regional safety. But without pressure, there’s really not a reason for them to do that.
So what we’re seeing today, in my opinion, is just some semantics. They have a show of force, but they’re clearly not trying to slow this down in any meaningful way.
CAVUTO: Yes, some of the video that I have seen — and I don’t want to take it too much out of context, Chief, but it seems like they just are like keep walking, keep walking. There’s no effort, to your point, to slow it or stop it, and which explains why we have been seeing a doubling in the size of it.
Do you know whether we have made an effort to Mexico get a handle on this or control this?
R. SCOTT: So I retired in August. So I have been — I have not been part of the direct conversations currently.
R. SCOTT: But I can tell you, from my experience, I don’t believe we are.
When we have been serious about border security in my — during my time in, Mexico was willing to step up and help us. But if we weren’t willing to hold up our end, and we were just going to release people and not have any consequence, the question from my counterparts in Mexico was, why should we do all the work if you’re not willing to do the endgame?
And right now, this administration is clearly not willing to do the end game and enforce the laws of the United States.
CAVUTO: You know, if you look at this latest package, they’re currently it a special spending and climate change package, there’s very little devoted to this, what’s happening at the border.
And I’m wondering, is it a money problem? Is it a commitment problem? Obviously, it’s a resource issue when you’re dealing with these types of crowds. Where are we going with this?
R. SCOTT: So it’s a commitment problem, Neil. And this is what it comes down to.
I heard you say earlier we’re not spending any money on the border. We’re spending millions and millions of tax dollars on the border right now. But instead of building a wall and a barrier and providing the technology to the agents that has already been paid for by the American taxpayers, we’re paying contractors to sit there, stare at it and then excess it.
We’re not finishing those projects. Instead of paying for overtime and instead of paying for enforcement efforts, we’re paying nongovernmental organizations to fly illegal aliens around the country after they have been processed and allowed in.
We’re also encouraging people to grab any kid they can, because they know that that’s a free ticket into the U.S. under the current process, if you just answer a couple simple questions and get past the first step of the asylum claim. This is a commitment problem.
CAVUTO: Yes, I might have been confused here. I meant to say there was no new moneys involved in this latest spending package for the border. That’s what I meant.
But you raise a number of very good points. Thank you for taking the time, Chief.
But it is worrisome. And, again, this latest crowd has doubled in size. Some do not really look at these grounds as any big deal. But when you go from something that started at 250 people, then 500 people, then 1,000, now 2,000, and 4,000, it begins to get attention.
All right, some other things getting attention right now, earnings season. I told you about how Amazon disappointed a little while ago, especially telegraphing how things are going to go this holiday season. Two words, not well.
But now Apple also missing some sales expectations here. No comment as yet into what they’re looking forward to the Christmas season, but it too a disappointment in its initial read.
Stay with us. We will have more after this.
CAVUTO: All right, hard as this may seem to believe, some Democrats are hoping they can get everything all worked up, the infrastructure, the human infrastructure thing, whatever you want to call it, by next Tuesday.
Chad Pergram, that sounds a tad aggressive. What are you hearing?
PERGRAM: It is.
We have bill text, but this is not the final bill text. Members will inevitably find things they don’t like. So far, progressives are unimpressed. And they first want buy-in from Democrats Kyrsten Sinema and Joe Manchin.
Democrat Chris Coons says everyone is on board.
(BEGIN VIDEO CLIP)
SEN. CHRIS COONS (D-DE): But you, you’re the reporters. You interview them. You get what comment you can out of them.
I think this is trying to find some reason for not believing that the president has accomplished a framework that I think moves us forward in a significant way.
(END VIDEO CLIP)
PERGRAM: Liberals are skeptical of Manchin and Sinema.
Leaders could change the bill to court the votes of reluctant Democrats with what’s called a manager’s amendment. That’s likely several 100 pages itself. A manager’s amendment is kind of like an updated wish list for Santa. You didn’t get everything you wanted from Santa under the tree, but you could with a manager’s amendment.
So the bill text will likely evolve. And that’s why, even though we have bill text, this is still just a framework — Neil.
CAVUTO: All right, Chad Pergram, thank you very much for that.
Well, add Apple to the mix of companies with some disappointing sales and earnings numbers, its stock also falling about 4 percent after-hours.
Susan Li has more on what happened — Susan.
SUSAN LI, FOX NEWS CORRESPONDENT: Hey, Neil.
So, I just got off the phone with Apple CEO Tim Cook on earnings. And despite the fact that you saw a record September quarter, the world’s biggest company is not immune to the global supply chain crisis and also the global chip shortage.
So Tim Cook was that, in reference to that a very strong performance in that quarter, it was despite larger, he says, than expected supply constraints, which we estimate to be around $6 billion, the supply constraints that were driven by industry-wide chip shortages and COVID- related manufacturing disruptions in Southeast Asia.
Now, we also got some rare guidance here from Apple, something that they haven’t been doing during the entire COVID era. And they’re saying, Tim Cook is saying that the December quarter will be an all-time high.
If we can bring up this quote for you: “Best quarter ever,” but — here’s the big but — “we expect supply constraints to be greater than the September quarter. And there are longer wait times for the iPhone 13 than we would like right now. And that’s part of the supply constraints that we have been talking about.”
Now, when I asked him also about the outlook for the U.S. economy, I think this is very telling, and tell me what you think, Neil, but Tim Cook says that: “I don’t know right now is the real answer to that. I want to be optimistic, but it’s a little unclear to me where it’s going.”
So, if the world’s biggest company, which you can argue probably has the most pricing control over its suppliers, makes its own chips, and, of course, is well-known for its innovative zero inventory supply chain, if they’re being impacted, and it’ll get worse in December, that means pretty much every company around the world is probably feeling the same pain right now.
CAVUTO: You know what’s odd about it, though, Susan? Up until we heard from Amazon and Apple, I mean, it’s been steady as she goes through most of these earnings we have gotten for the third quarter with very few companies reporting or telegraphing nightmarish possibilities.
CAVUTO: Now, you have these two guys, and they’re huge, saying, yes, some big problems. It’s interesting.
But wouldn’t you also say, Neil, when you’re $2 trillion in value, you also have the pretty high, lofty expectations placed on you by Wall Street and the markets.
LI: If you dive deeper into those Apple numbers, I mean, $84 billion in sales in three months, $20 billion in record profit in three months. And also they’re still selling a lot of iPhone 13s. And they have a lot of cash on the balance sheet of close to $200 billion.
CAVUTO: All right.
Yes, someone was telling me they make more for their app business than most Fortune 500 companies make on everything in a year.
LI: Ah, yes.
CAVUTO: Susan, go ahead. Finish it.
LI: Sorry, just one more point.
All segments of their business are now a Fortune 100 company on their own. Isn’t that incredible?
CAVUTO: Is that right?
LI: That’s means the AirPods, Macs, the iPhones.
CAVUTO: Keep those pods in your ear, though. They always fall out of mine.
CAVUTO: I don’t know. That’s a separate issue.
Susan, thank you very much that, Susan Li on all of those developments here.
In the meantime, keeping you up to date on getting your kids vaccinated. No sooner, no sooner did we get word that an FDA panel says it’s OK to go with Pfizer that we’re already getting California going ahead with Pfizer and getting kids vaccinated.
What about you? What about your kid?
CAVUTO: Well, man, oh, man, that didn’t take long.
California is already setting up as we speak 4,000 sites to administer about 1.2 million COVID shots to kids after an FDA panel gave Pfizer the go-ahead for its treatment for kids as young, I think, 5 years old to 11 years old.
Some thoughts now for Dr. Kevin Campbell, the K Roc Consulting president and CEO, cardiologist, a real smarty-pants.
Always good to have you, Doctor.
DR. KEVIN CAMPBELL, CARDIOLOGIST: Thanks for having me.
CAVUTO: What do you make of this?
CAMPBELL: I think it’s great that the FDA panel did clear this vaccine for kids.
The things to know about this is, there was more research done on this vaccine than a lot of the other vaccines we routinely administer to children over decades now. So I feel very good about the safety and efficacy of this vaccine.
CAVUTO: So, I know Moderna has one that is waiting for emergency approval as well, I think there for kids as young as 6.
But there are a lot of parents who are leery of vaccinating their kids. What would you tell them?
CAMPBELL: You know, I certainly understand that. Our children are precious and we want to make sure that we give them every advantage.
What I would say is, talk to your health care provider. Talk to that pediatrician that you trust with your child. And get their advice.
I say get the shot. I would certainly give it to my child, based on the preponderance of the evidence. It certainly saves lives. And its risk is minimal.
CAVUTO: You know, a lot has been made, Doctor, of mandates. In New York, firefighters are complaining about a mandate they have to be vaccinated.
As it turns out, about seven out of 10 of them are, but this is no loopholes for anyone. The others will have to go if they don’t. What do you think of those types of policies?
CAMPBELL: You know, I think mandates when they’re used properly can be very helpful in motivating people to get vaccinated.
However, we must remember, we’re a free country, and we have the right to choose. So I certainly support choice. However, there has to be an alternative. De Blasio, in one week, has said, everybody has to be vaccinated in the police and fire department, and he has no option for maybe weekly or daily testing.
I think we have to balance these mandates with protecting our right to choose.
CAVUTO: Yes, I mean, even at FOX, we have a policy, I’m sure you’re familiar, where either show us your vaccination status or get regularly tested.
But there doesn’t seem to be much flexibility in some of these other positions. And I’m wondering if they’re actually hurting more than helping. People see that and say, hell, no, I won’t get vaccinated.
CAMPBELL: You know, I think it does create a lot of pushback.
There may be people on the fence that sit there and say, I don’t want my individual rights being tread on, so I’m not going to do it. Also, I think, from a patient and someone living in New York City standpoint, I think it’s very difficult, because I think you’re going to see shortages of police and firefighters and ambulances.
So, ultimately, it’s all of us who suffer at the hands of a mandate provided by the mayor.
CAVUTO: I am a breakthrough case person. I tested positive for COVID. But I have extenuating circumstances, and deal with multiple sclerosis.
So I’m told that immunocompromised individuals are the ones who make up half of these breakthrough cases. And yet I have heard from a lot of people who say, well, this is proof the vaccine is a joke, it’s failing people. How do you answer that?
Because I said, no, it isn’t. I just gave you that data. But, no, people just will not hear it.
CAMPBELL: I think that’s a fallacy.
I think that that’s absolutely not true. The reason that there’s a predominance of elderly and immunocompromised folks that are getting breakthrough cases is because their immune system isn’t as robust as younger, healthier folks. That is why.
It has nothing to do with the vaccine not working. I think you have probably heard the buzz there may be a fourth COVID shot down the line for those that are immunocompromised.
CAMPBELL: I think it’s an evolving science.
However, the vaccine absolutely works. There’s tons of data to suggest it.
CAVUTO: OK. By the way, thank you for reminding me, Doctor, I’m not young.
So always good seeing you, my friend.
CAVUTO: Thank you.
CAMPBELL: Good to see you.
CAVUTO: I always take things the wrong way, don’t I?
Dr. Kevin Campbell, thank you very, very much.
In the meantime, the latest on those two important contests. Everyone focuses on Virginia. Do you see what’s going on in New Jersey?
CAVUTO: All right, now, I know everyone is focused on the race in Virginia. And so you should be. It’s tight as a tick.
But this is a reading among independent voters in the Garden State, who overwhelmingly had been giving a double-digit lead to the incumbent governor, Phil Murphy. Now it’s about dead even, with slightly more going to the Republican candidate.
What to make of that in this bluest of blue states? Could it be a harbinger of things to come?
To John Bussey, FOX News correspondent, but, more importantly, Wall Street Journal associate editor, and he knows his numbers, his politics, the whole shooting works.
John. It would be a Herculean leap for a Republican to win in New Jersey. But it has been done, obviously, a number of times. In fact, Republicans who have made it to the governor’s office have always been reelected in this last quarter-century, so not so Democrats.
JOHN BUSSEY, FOX NEWS CONTRIBUTOR: Yes.
CAVUTO: So what are we to make of this situation right now?
BUSSEY: Yes, well, you just described neck and neck for independent voters.
But it is the bluest of blue states. And Murphy is still leading by 11 points, which is a pretty healthy lead. It’s come down a bit. It’s tightened some in the last few months. There has been a few debates, other issues. I think that there’s a kind of knock-on effect of Biden’s approval ratings dropping after the Afghanistan withdrawal and after kind of — during this logjam in Washington.
But Murphy is still ahead. And I think that there’s a really a big question about New Jersey.
I think attention really is on Virginia, and for good reason, swing state, neck-and-neck race, lots of issues that voters are going to be thinking about in the next year as — in the run-up to the midterms. This is really kind of a sort of a test for the Democrats and Republicans of issues that are going to resonate in the midterm elections in 2022.
CAVUTO: It’s interesting.
When you talk to both states’ voters — and you’re right, I mean, that there’s another poll about a week ago that showed a five- or six-point gap between Murphy and his Republican challenger, but you’re quite right, all over the map, but nothing like the nearly 30-point lead that he had back in the summer.
But the issue that keeps coming up that has changed is this — the economy and inflation and taxes, particularly in New Jersey. And I’m just wondering, regardless of what happens Tuesday, if this spending package Democrats are working on now could help them or hurt them.
What do you think?
BUSSEY: So, the possibility of additional spending cuts both ways, doesn’t it?
It would be a victory for Biden and if the Democrats who want to get this done before November 2, before these elections take place, to show that, yes, they really can make things happen in Washington. They view that as a potential boost in both the Virginia and the New Jersey races.
On the other hand, we have had a fair amount of spending. Some of that spending has contributed to the disjuncture between demand and supply, which has led to inflation, lots of demand, logistically logjam supply.
But a lot of that spending is going to be out over years. And you have a lot of people coming off extended unemployment benefits as well who are going to be bolstering the employment base. And that will bring down labor costs.
CAVUTO: All right. Like you say, it’s too soon to tell. We will have to see what happens.
All right, John Bussey, thank you very, very much.
That will do it here. We will keep you updated on those.
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