Return to Transcripts main page
New Day
Interview with Sen. John Barrasso; Trump, Ryan Aides To Meet On Platform This Week; The "Financialization" Of America; President Awards Medal Of Valor To 13 Officers. Aired 7:30-8a ET
Aired May 17, 2016 - 07:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[07:30:00] ALISYN CAMEROTA, CNN ANCHOR: This just into CNN. Two flight attendants are hurt after strong turbulence on a Southwest Airlines flight out of Logan Airport in Boston. The flight, with 133 passengers, was heading to Chicago but it had to return to Boston after the incident.
The crew was taken to the hospital as a precaution. No passengers were injured, we're told. That flight did later continue on to Chicago with a new crew, but scary stuff, Chris.
CHRIS CUOMO, CNN ANCHOR: All right, another chapter in the Minnesota saga of Prince. A judge ruling anyone claiming to be an heir to the fortune left behind by Prince may have to prove it through DNA testing. This is an effort to keep people from capitalizing on the music icon's death.
As you see on your screen right now, just last week a Colorado federal prison inmate said he is Prince's son. No word yet whether that is a legitimate claim. Prince died last month at his Paisley Park estate and there is a lot of legalities yet to come, Alisyn.
CAMEROTA: Well, Senate Democrats promising some political theater today -- tomorrow, I should say. They're holding a mock hearing for the man who cannot get a real one, Supreme Court nominee Merrick Garland. Republicans are blocking Garland's confirmation, arguing the next president should make the appointment. A top Republican calls these mock hearings a desperate act.
CUOMO: An openly gay Texas pastor is dropping a lawsuit against Whole Foods. Jordan Brown had accused the grocery store of selling him a cake decorated with an anti-gay phrase. But the pastor is now apologizing to Whole Foods and the LGBT community, admitting the company did not actually decorate the cake that way. Whole Foods also agreeing to drop a $100,000 countersuit.
CAMEROTA: All right, senior aides for Donald Trump and House Speaker Paul Ryan will meet this week trying to craft a unified policy for the Republican Party. Will jittery GOP lawmakers come around to reconcile with their presumptive nominee? Senator John Barrasso is a Republican from Wyoming. He's also the Republican Policy Committee chair and he joins us now. Good morning, Senator.
SEN. JOHN BARRASSO (R) WYOMING: Thanks for having me, Alisyn. CAMEROTA: So, you're part of this group of senators who is trying to find common ground. I know that you also were a part of the group that met with Donald Trump this past Thursday. And I'm just curious how you tackled these many issues on which he seems to have a divide from traditional, conservative positions, such as foreign policy, taxes, the economy, some social issues, trade policies. Where exactly did you find common ground?
BARRASSO: You know, the one issue, Alisyn, that really has united Republicans for the last seven years and through the last several elections has been the healthcare law that not a single Republican voted for.
I'm a doctor and this health care law has been devastating to the health care of so many Americans which is why one out of four Americans say they have personally been hurt by the president's health care law and so many of the president's promises have been broken.
And that's why since the law was passed Republicans have picked up 13 Senate seats, 11 governorships, 69 House seats, and over 900 Legislative seats around the country. And with the prices continuing to go up, premiums going up -- with the new time to sign up starting November 1st, right before the election day in November, I think this is going to be the November surprise of the election, as so many Americans are shocked by just how much the costs continue to go up.
CAMEROTA: So is that one sort of unifying issue, of getting rid of Obamacare, enough to overlook the divide on some other issues, such as -- and let's just tick through them. Let's start with taxes. Donald Trump has said various things on taxes, including being open to and supporting raising taxes on the wealthy. That's not a conservative standpoint.
BARRASSO: No, the conservative position, of course, is raising tax revenue by having more people working by growing the economy. And you do that -- and one of the areas that we talk about that unites us again is energy. Energy is called the master resource for a reason. We have so much energy in this country.
CAMEROTA: Right.
BARRASSO: Alisyn, there's a story on the front page of "The New York Times" today about the huge rift in the Democratic Party between labor and the environmental extremists --
CAMEROTA: I saw that.
BARRASSO: -- who are cutting into the jobs, which is why right now two-thirds of Americans believe the country is heading in the wrong direction.
CAMEROTA: So Senator, were you able to impress upon Donald Trump that there should be no tax raise and that his tax -- what his tax rate should be since he was a little iffy on exactly what it would be?
[07:35:00] BARRASSO: Well, we're going to work through the details of all of this. He understands the conservative position is that you raise revenue overall by having more people working and growing the economy. But, we're a conservative party, limited government, lower taxes, reasonable regulations.
And the agreement that we also came to, of course, is the fact that government regulations have been an anchor dragging down our economy. And so many of these things aren't new laws, Alisyn. They are things that the president has done. And even the president's chief of staff said they're going to do audacious executive actions through the end of this term.
CAMEROTA: Yes.
BARRASSO: Certainly, Donald Trump realizes that government can either create or crush opportunity through a series of -- through taxes, through regulations, and through mandates --
CAMEROTA: Yes.
BARRASSO: -- and President Obama is regulating to death a private sector --
CAMEROTA: OK.
BARRASSO: -- that he does not like and does not understand.
CAMEROTA: So, you agree with that, that there should be fewer regulations, fewer presidential directives, it sounds like. What about something that is your specialty, foreign relations? Are you comfortable with where Donald Trump is on foreign policy, particularly as it relates to NATO and our allies, and whether or not they should have to pitch in more money? And whether or not we would withdraw support? Whether or not they can have access to nuclear weapons? All those things?
BARRASSO: Well, we specifically discussed NATO. I agree that NATO has not, and the other countries have not been paying their full share. I also agree that we need to be involved with NATO. It plays a very vital role and I think it's needed more now than ever because of the mess that President Obama has made of our foreign policy --
CAMEROTA: And --
BARRASSO: -- with the reset with Russia. Putin is very opportunistic and has moved aggressively. The red line in Syria that has, essentially, invited Russia into Syria to pump up and to protect Assad. I think that the president has been terrible with his Iran deal, which continues to give lots of money to terrorists.
CAMEROTA: So Senator, were you able to impress your feelings about that, about Putin, who Donald Trump has spoken somewhat favorably about? And about NATO, which is different than what Donald Trump said? Did you get him to come around to your position?
BARRASSO: Well, we had a very good discussion on that. He understands, as people all across the country do. This is why he's won so many primaries, and America wants to be and needs to be the most powerful and respected nation on the face of the earth. That's what he wants, that's what all of us want.
So I have great confidence -- much more confidence in Donald Trump than in Barack Obama, who I think has made a mess of foreign policy. And as even Jimmy Carter has said, that he can't think of one place in the world where the United States has a better relationship now than we did when Barack Obama came into office.
CAMEROTA: Senator, do you think that Donald Trump should release his tax returns to the public?
BARRASSO: Well, I'm always one that supports transparency, but he's going to have to make that decision. But I would support that.
CAMEROTA: Did you talk to him about whether or not that would be a good idea?
BARRASSO: No, we were mostly talking policy issues. Issues related to uniting American voters behind him in the election against Hillary Clinton because we, as a nation, cannot afford four more years like the last eight years under Barack Obama.
This economy with such tepid growth -- that cannot be the new normal of a one percent or two percent growth for our country. We can't have a third Obama term, which is what electing Hillary Clinton would do.
CAMEROTA: Senator John Barrasso, thanks so much for being on NEW DAY.
BARRASSO: Thank you very much, Alisyn.
CAMEROTA: Let's get over to Chris.
CUOMO: So, Alisyn, Barrasso and many others on both sides of the aisle criticize slow growth, criticize the economy. But what is the reality of why the economy is growing or not growing the way it is? Who has done well, and why? A hint are the pictures on your screen right now. We're going to take you deep into the world of Wall Street and give you some answers you probably haven't heard before, next.
[07:39:15]
(COMMERCIAL BREAK)
[07:42:40] CUOMO: Donald Trump, Bernie Sanders, Hillary Clinton all have one thing in common. They have a message of curbing Wall Street, of talking about the economy, talking about slow growth, talking about reining it in, seeing a problem, knowing the fix.
Well, where are they, really, on all of this because when you talk about Wall Street isn't that just the tip of the iceberg? Isn't this part of thinking that's infected the entire economy? What is the cure? These are real questions that you don't get real answers to very often, but you're about to get them right now.
Rana Foroohar is the author of a book that is perfectly timed, "Makers and Takers", The Rise of Finance and the Fall of American Business" which comes out today. She's CNN's global economic analyst and an assistant managing editor at "Time". Also, a friend. But this is just the truth. This is the right thing at the right time.
RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST, AUTHOR, "MAKERS AND TAKERS": Thank you so much.
CUOMO: Let me read you an excerpt --
FOROOHAR: Please.
CUOMO: -- that really sets the table for the audience. "Our system of market capitalism is sick and the big-picture symptoms are being felt throughout our entire economy, and indeed, our society. Our economic illness has a name, financialization." What does that mean, financialization?
FOROOHAR: So, financialization, it's kind of a wonky word that academics came up with but it has a deep meaning right now. It's basically the fact that Wall Street has grown so much in size and in power that basically it has set the agenda for the entire economy.
And let me step back and give you a real killer stat from the book. So, if you think about what the financial markets were set up to do originally. You know, what Adam Smith, the founder of modern capitalism, said they were supposed to.
They were supposed to take our money, our savings, and put it into new business investments. Businesses grow, they create jobs, they create growth. I mean, that's how the economy works. That's how prosperity is created.
But today, only about 15 percent of the money in financial institutions is actually going into those new business investments. The rest of it is in this closed loop of trading in stocks and bonds and existing homes.
CUOMO: It's a casino.
FOROOHAR: It's a casino. Warren Buffett says that. People want to play at the casino.
CUOMO: It's a casino. That's why he invests in companies. He tells people to stay away --
FOROOHAR: Yes.
CUOMO: -- from these commoditized investments of these different toys.
FOROOHAR: Right.
CUOMO: Here's one of the great questions that you'll get into in the book. They know this --
FOROOHAR: Yes. CUOMO: -- these people who want to be your president. They know that. You want to talk about rigged? This is the definition of rigged. It's a closed system to create wealth in a way that rarely trickles down --
FOROOHAR: That's right.
CUOMO: -- to borrow that phrase. This has been my lament that was a bonding principle for the two of us --
FOROOHAR: Yes.
[07:45:00] CUOMO: -- when I came to CNN. Nothing's different than it was in 2008. Dodd-Frank all day long, whatever you want to say about that bill -- that law. But, they still did the same things.
FOROOHAR: Well, that's right. And actually, Chris, you're making a great point because this is a bipartisan problem, you know. Sometimes we think about the rise of Wall Street and we associate it with Reaganomics or the 1980's, and that's true.
CUOMO: Sure.
FOROOHAR: Some things happened during that period, but things happened across both administrations. I mean, basically, from the 70's onward each administration, Republican or Democrat, were making small policy shifts, deregulation, changing corporate compensation rules, changing the tax system to reward debt, not equity.
CUOMO: For the same reasons, with Reagan and with Clinton --
FOROOHAR: Yes.
CUOMO: -- same impetus. The bigshots came to them and said --
FOROOHAR: That's right.
CUOMO: -- you know, if you just tweak this a little bit the economy's going to take off --
FOROOHAR: That's right.
CUOMO: -- because in the case with Reagan, you know, the banks are held back --
FOROOHAR: Yes.
CUOMO: -- and if you allow us to diversify our portfolios with our deposits, forget it, we'll go gangbusters. Clinton, if you allow us --
FOROOHAR: Right.
CUOMO: -- to figure out what leverage is to the system, which is something that you and I don't get in the consumer market.
FOROOHAR: That's right.
CUOMO: You know, when you get your house they give you that loan to value ratio, which is how much your house is worth, how much you can borrow against it. On Wall Street, its 20, 30, 50 times --
FOROOHAR: That's right.
CUOMO: -- what the cash is that they have involved in an investment. Those two changes led us to the same place. Great for them for a short time, and then the rest of us had to bail it out.
FOROOHAR: Absolutely, and you're making a great point. Debt is at the root of all financial crises. And during this period, where Wall Street has been growing -- and by the way, Wall Street creates only four percent of all jobs. It takes 25 percent of corporate profits. I mean, think about that. That is sucking a lot of air out of the room.
And more and more debt has fueled that and consumer debt has boomed over the last 40 years, so we now have this economy where people have to go into debt to keep spending to grow the economy. The underlying model is really broken.
CUOMO: So, what can we do? What do you propose in the book?
FOROOHAR: So, a couple of things. For starters, I'm very interested in the current political discussion about this. You know, every candidate has their proposal. Bernie wants to break up the big banks. Hillary wants to strengthen Dodd-Frank, take on shadow banking. Trump talks about carry gains taxes on the wealthy. Each of those things are just a tiny part of this overall system.
One thing we could do is start by looking at the tax code. I mean, that's something that everybody wants to do, Democrats, Republicans, and start incentivizing the right things. Stock incentivizing debt, be it for corporations that are taking on huge amounts of leverage and causing financial crises. Or, potentially, people that are buying too much house, you know, for the kind of income that they have.
We really need to look at that and we need to incentivize savings and investment. We really need to fix the capital markets so they do what they're supposed to do, which is take our money and put it into new businesses that can grow.
CUOMO: Rana Foroohar, the book "Makers and Takers". It's a great title. Even I can get it. This is a great book at the right time. People should read it because it will help inform them on what they should be looking for in these candidates. Rana Foroohar, appreciate it -- Alisyn.
FOROOHAR: Thank you so much.
CAMEROTA: President Obama honoring 13 police officers for their actions in the line of duty. Two of those brave officers, those heroes, are going to join us live with their story, next.
[07:48:25]
(COMMERCIAL BREAK)
[07:52:10] CAMEROTA: The heroism on display by law enforcement officers never ceases to amaze. For 13 of them, their efforts earned them special recognition from the White House.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The medals and ceremonies like today are important, but these aren't enough to convey the true depth of our gratitude. Our words will be hollow if they're not matched by deeds. So our nation has a responsibility to support those who serve and protect us, and keep our streets safe. We can show our respect by listening to you, learning from you.
(END VIDEO CLIP)
CAMEROTA: Joining us now are two recipients of the Medal of Valor, deputy Joe Tortorella from the Niagara County Sheriff's Office, and officer Mario Gutierrez from the Miami-Dade Police Department. Gentlemen, thanks so much for being here. Congratulations.
DEPUTY JOE TORTORELLA, NIAGARA COUNTRY SHERIFF'S OFFICE: Thank you.
OFFICER MARIO GUTIERREZ, MIAMI-DADE POLICE DEPARTMENT: Thank you.
CAMEROTA: Deputy Tortorella, what was it like yesterday to be at the White House and to be honored for your heroism?
TORTORELLA: For me, it was very surreal. It was extra special just because my family was here and I brought my wife and kids here, which we weren't sure we were going to be able to do. But, it was just a really honor for me, regardless of your political affiliation or what you think of what's going on in the country now. It's an honor be presented a medal by the president.
CAMEROTA: Absolutely.
TORTORELLA: The commander in chief.
CAMEROTA: I mean, as for your children to see you be presented with that. Officer Gutierrez, what was the moment like for you?
GUTIERREZ: It was pretty awesome. It was hard to get my head wrapped around it and it was overwhelming.
CAMEROTA: Officer Gutierrez, I want to stick with you for a second because I want to tell the viewers what you were honored for. In October of 2013, you were driving by a gas station, and we have video of this moment.
(Video playing) You saw something suspicious and when you went out to investigate, a suspect attacked you, as we can see here. He was trying to light two 8,000-gallon trucks of gasoline on fire. You sprung into action, as we see here, and you didn't stop, though you were stabbed 12 times by a screwdriver and a knife that that crazed suspect had in his hands. How did you have the strength to keep fighting through this?
GUTIERREZ: I thought of my family, and the incident, basically -- I thought if I'm not going to see them, I can't. I have to fight, so I fought as hard as I could and Ipersevered.
CAMEROTA: Yes, you did. I read in the notes that you said police work is boring until a life or death situation. I mean, that's what you live with every day.
GUTIERREZ: Yes. There's a -- like they said, hours of sheer boredom with minutes of terror, so yes, that's police work.
[07:55:00] CAMEROTA: And we can see that, obviously, in stark relief there. Deputy Tortorella, I want to talk about what made you a hero. There was a suspect on the loose. He was wanted for shooting his parents and you confronted him. You were shot in the line of duty and you also stopped the suspect from somehow making it to a nearby elementary school. You got that school to be on lockdown. Tell us about that moment.
TORTORELLA: (Video playing) Well, the incident actually took place probably about 50 feet from the elementary school where my wife was teaching and my son and my daughter were in the classrooms. My son actually heard all the shots and was praying under his desk that it wasn't me outside, but deep inside he knew it was me.
And it was a domestic incident where this individual shot his parents, both through the top of their head. And then he confronted me outside and we had a lengthy gun battle. I was able to shoot him three times, however, he circled back around behind my car and we exchanged gunfire.
And then he ran back in his backyard, which actually the backyard of his residence is where the playground for the school is so I didn't know if he was going back there to do more damage or not.
CAMEROTA: Oh my gosh.
TORTORELLA: Thankfully, he went in the house and took his own life.
CAMEROTA: Deputy, I didn't know that your kids were in that school right there and that they were hearing the gunshots that you were involved in. That lends a whole nother element to this and it explains why you say that you still have nightmares about this incident.
I want to ask both of you because we've been reporting this week about a spike in the murder rate in more than two dozen major cities around the country. And, you know, some have speculated that there's this so-called "Ferguson effect" that they see going on, whereby police are pulling back. Acting less aggressively because they're afraid, somehow, of being caught on videotape doing something wrong.
Officer Gutierrez, do you see evidence of that in your daily work life?
GUTIERREZ: No. I mean, for me, it's police work. I get a call, I see something, I deal with it. It's just my routine day. I don't see any difference.
CAMEROTA: Deputy Tortorella?
TORTORELLA: I can see where there'd be some hesitation there. You know, you just have to count on your instincts and your training. In my situation, you know, I didn't see a gun until I had to fire. But in that situation if this individual doesn't have a gun and there's two guns in his pockets and ends up shooting at me and I shoot him, then you've got think about the consequences that you had for yourself and your family.
CAMEROTA: Yes.
TORTORELLA: So, I can see where there could be some hesitation, but you've got to hope that your training and instincts kick in. That's where I give all the credit to -- is the guys that trained me.
CAMEROTA: Well, you two did not hesitate, obviously, in just the line of fire, and we appreciate you. We're so happy that you were honored as heroes. Thank you so much for your service.
GUTIERREZ: Thank you.
TORTORELLA: Thanks for your time.
CAMEROTA: All right, we're following a lot of news this morning, including the GOP in crisis mode. Let's get to it.
(BEGIN VIDEO CLIP)
COOPER: Are you considering running?
KASICH: No, I'm not going to do that.
MARK CUBAN, BUSINESSMAN: It's impossible to get on ballots. The hurdles are just too great.
BEN CARSON (R), FORMER PRESIDENTIAL CANDIDATE: This is something that is extremely undesirable to me.
DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: I want to bring jobs back to our country. I want to make our country go again.
CLINTON: His answer is I'm going to create them but I'm not telling you what it is I'm going to do.
SEN. BERNIE SANDERS (I-VT), DEMOCRATIC PRESIDENTIAL CANDIDATE: We have now won 19 state primaries and caucuses.
CLINTON: I will stand up for you. Let's go make the future we deserve to have.
OBAMA: Kids who are transgender are vulnerable.
UNIDENTIFIED FEMALE: The HB2 law has just put them in the spotlight and that's unfair.
JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: There is a strong desire on the part of some politicians to try and score some cheap political points.
(END VIDEO CLIP)
ANNOUNCER: This is NEW DAY with Chris Cuomo and Alisyn Camerota.
CAMEROTA: Good morning, everyone, and welcome to your NEW DAY. It is Tuesday, May 17th, 8:00 in the east. And we begin with the ongoing battle within the Republican Party over their presumptive nominee. Some in Congress still in crisis over Donald Trump as their standard bearer. And some conservatives still pushing for a third party run, but having a hard time finding anyone willing to take on the task.
Trump, meanwhile, pushing back against "The New York Time" for its story on his behavior towards women and is now said to be considering a lawsuit. His attorney joins us in a moment.
CUOMO: On the Democratic side, you have Sanders and Clinton still duking it out. Today is a pivotal primary day. You've got Kentucky and Oregon. Hillary Clinton is hoping to make some gains, hoping to hold off the momentum of Sanders.
