Return to Transcripts main page

New Day

Trump To Deliver Major Economic Speech In Detroit Today; Mexican Town Largely Built By U.S. Dollars; Katie Ledecky Wins Gold In Women's 400M Freestyle; Simone Biles Shines In Gymnastics Preliminaries; Emotional A-Rod Announces End Of Yankees Career. Aired 7:30-8a ET

Aired August 08, 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] CHRIS CUOMO, CNN ANCHOR: Who has the advantage here? We debate, next.

(COMMERCIAL BREAK)

[07:34:00] CUOMO: All right, in just hours, Donald Trump is going to unveil what he says is a major economic plan in a speech in Detroit. Hillary Clinton says she's going to counter Trump's plan later this week, also in Detroit. We just got a copy of Donald Trump's highlights -- what points he's going to make today, so let's discuss them.

We have global affairs and economic analyst Ali Velshi, and former lieutenant governor of New York and columnist for the "New York Post", Betsy McCaughey. She supports Donald Trump. So, this is very interesting that he put this out. One, smart -- gets him into the news cycle early on. He's nothing, if not savvy.

What's interesting in this is -- let's start with the points of contrast, OK? He states in here the differences between him and Hillary Clinton. And the first one is interesting, that Hillary Clinton accepts projections that we're only going to grow at two percent a year. She's an extension of the status quo. This is his big issue. Why?

BETSY MCCAUGHEY (R), FORMER LT. GOV. OF NEW YORK: That's right because right now our economy is limping along at 1.2 percent growth, way below what some other countries are achieving. Ireland, for example, is growing at eight percent.

[07:35:00] And a major reason for our very poor economy is high corporate tax rates. That is the most important part of Donald Trump's economic proposal, to slash corporate tax rates. Right now --

CUOMO: He says the top will be 15 percent for all businesses, large or small.

MCCAUGHEY: That's right, large or small. Right now, American companies' nominal rate, 35 percent. They, in fact, pay about 27 percent but that's compared with 20 percent in England, 15 percent in Canada, 12.5 percent in Ireland. CUOMO: All right.

MCCAUGHEY: And so companies are rushing to those countries to do business and our workers are losing jobs.

CUOMO: Ali Velshi, how do you see it?

ALI VELSHI, GLOBAL AFFAIRS & ECONOMIC ANALYST: Yes, this is interesting what Betsy said because this where Trump is onto something. He's got a very pro-growth message. He also has a lot of tax cuts and the math doesn't actually work on them. But as Betsy said, I'm in Toronto where the tax rate has been reduced -- the corporate tax rate -- to 15 percent and it's actually been net positive, so this is something America has to do.

It's got a higher tax rate than a lot of places but a lot of companies don't pay those taxes. So if you want to lower the tax rate to 15 percent you've got to apply it across the board, and that is something that requires tax code changes that are hard to achieve.

Problem number two, Donald Trump's giving this speech in Detroit. It's got to be a populist message, including one about fighting TPP and other trade agreements. It's very hard to convince people that you're going to cut corporate tax rates unless, as he proposes, you're also cutting personal tax rates.

Now, his proposals there are very interesting but they're very expensive and they're very hard to get done. That said, if he could do the things he proposes today it actually could be pro-growth, which does make this an important speech for Trump.

MCCAUGHEY: And let me point out that Hillary Clinton's economic plan, which will be unveiled Thursday, includes business tax increases to pay for her infrastructure plans. And those business --

VELSHI: Right.

MCCAUGHEY: -- tax increases are projected to cost the economy growth and to cost jobs. For example, the Independent Tax Foundation predicts that Hillary Clinton's business tax hikes will cost 311,000 jobs and slice another one percent off her already very low growth in GDP. Moody's Analytics, another neutral source, has warned that Hillary Clinton's proposals will produce absolutely no increase in private sector investment and that is the biggest problem we're battling right now.

CUOMO: But you have analysts, Betsy, who beat up both plans, right?

VELSHI: That's just not --

CUOMO: I mean, Ali, we just had somebody who --

VELSHI: Yes, yes.

CUOMO: -- Trump just brought on as a senior economic adviser say well, his plan to reduce the deficit in eight years -- probably won't be able to do that.

VELSHI: Yes. You know, the --

CUOMO: So a part of this is this is something that might be too good to be true.

MCCAUGHEY: That's obviously true but look at what's wrong with our economy right now. We have three consecutive quarters of declining business investment, and when that happens it costs us jobs. When businesses don't buy another truck, they can't hire another worker. When they don't but another computer, they can't hire another office worker, and that is exactly what's happening. Despite the jobs numbers that came up Friday --

VELSHI: That -- that's --

MCCAUGHEY: -- it appears as if our economy is heading into a recession.

CUOMO: Ali, make a counterpoint.

VELSHI: That's just absolutely not true. It's just absolutely not true. It is not appearing that the U.S. economy is heading into a recession. That kind of old logic doesn't apply. We've had greater jobs growth in the last few years than we have seen for decades. In fact, 255,000 net new jobs, so that's the problem with the argument. It's just not true that current policies are actually bad for the U.S. economy.

MCCAUGHEY: I'm dealing with the facts.

VELSHI: Absolutely fantastic.

MCCAUGHEY: I'm dealing with the facts.

VELSHI: I'm only dealing with facts, too. Did you see the jobs -- did you see --

MCCAUGHEY: Labor participation rate, 62.9 percent, the lowest in history.

VELSHI: The labor -- the labor participation rate has been going down for years, much of which has to do with a population that is actively retiring. I don't disagree with you that that is the single biggest challenge, but Donald Trump has taken one of three economic indicators. There's the unemployment rate, there's the jobs lost and created, and there's the labor force participation rate.

This one is the problem. It's the only one that he talks about. The other ones are actually quite positive. So, you can't just pick and choose which parts of the economy you say are bad. There's an income and equality problem in America, there's not actually an overall economic growth issue in America.

MCCAUGHEY: Oh my gosh, we are growing at 1.2 percent. If only we were growing at eight percent, like Ireland, then people would have a promising future.

VELSHI: We've never grown at eight percent. Ireland and America are not even remotely similar economies. It's like when Greece was --

MCCAUGHEY: Oh yes, they are. Ireland was in our situation --

VELSHI: No, they're really not.

MCCAUGHEY: -- until they slashed their corporate tax rate.

VELSHI: They're really not.

MCCAUGHEY: Canada, our next door neighbor --

VELSHI: I love Ireland.

MCCAUGHEY: -- is experiencing growth double the U.S. rate. Double the U.S. rate because left and right got together and realized one thing we can't afford is a high corporate tax rate. And that's what we have to do in America to realize that when we raise a corporate tax --

[07:40:00] VELSHI: It's just --

MCCAUGHEY: -- like Hillary wants to do, and make corporations pay their fair share, those who suffer are --

VELSHI: Betsy, you got -- you got our agreement on the --

MCCAUGHEY: -- the workers who lose their jobs.

VELSHI: Betsy --

CUOMO: Final point, Ali.

VELSHI: Betsy, you have my agreement on the corporate tax rates, I already told you that. I'm in Toronto right now. Absolutely it works. The difference is Hillary Clinton, while her plan is not nearly as exciting and she has a lot of explaining to do about her flipping on trade deals, the bottom line is she's worked a little harder to get the math. She says if I want to offer all these great things I've got to increase taxes.

Donald Trump has said I'm going to lower taxes and I'm going to offer all these great things. It's a mathematics problems, it's not a policy problem.

CUOMO: All right, let's see how they get built out. This was good and helpful. It is good to have a debate --

MCCAUGHEY: Thank you.

CUOMO: -- from two minds who understand their position's side. And, Ali, always great to have your analysis, appreciate it.

MCCAUGHEY: Ali, good to see you. CUOMO: Especially from Canada -- Brianna.

BRIANNA KEILAR, CNN ANCHOR: Well, Chris, Donald Trump, as you've heard and seen many times, wants to build a wall on the U.S.-Mexico border, but that is just the beginning. How could his proposals affect families on both sides of the border and the 2016 race? We'll have a closer look, next.

(COMMERCIAL BREAK)

KEILAR: It was Donald Trump's first big promise when he announced his candidacy last year. Build a wall to keep undocumented immigrants out and make Mexico pay for it, but how? According to Trump's campaign website, he'd cut the flow of money transfers into Mexico in order to force the country to pay up. What if it becomes reality?

[07:45:00] CNN's Rosa Flores looks at how it might impact one Mexican town.

(BEGIN VIDEOTAPE)

ROSA FLORES, CNN CORRESPONDENT: The Mexican village of Francisco Villa might as well be in the United States. Home, roads, businesses, all mostly paid for with American dollars. People here don't speak English but they understand two words, Donald Trump.

DONALD TRUMP (R), PRESIDENTIAL NOMINEE: Who is going to pay for the wall?

RALLYGOERS: Mexico.

TRUMP: One hundred percent.

FLORES: Trump says that if Mexico doesn't pitch in $5 billion to $10 billion to pay for the border wall he will cut off money transfers sent from the U.S. to Mexico by undocumented immigrants. Martha and Artemo receive up to $200 monthly from their son, Juan, an undocumented immigrant living in Chicago.

MARTHA (Speaking Spanish, no translation)

FLORES: With those $200 a month, she says, she has to pay for everything. Food, electricity, water. Getting that money comes at a high price. She doesn't get to see her son.

MARTHA (via translator): It's very hard.

FLORES: Donald Trump maintains it's de facto welfare for poor families in Mexico. In Chicago, Martha's son, Juan, says his parents would starve or die if Trump's threat materializes. It's a very deep pain.

JUAN: Yes.

FLORES: He and his wife crossed the border illegally 21 years ago. Is being deported your biggest fear? JUAN: Yes, because my family would be left without me.

FLORES: He has a legal Illinois driver's license, a bank account, and a mortgage on a Chicago-style bungalow. This is what homes in Francisco Villa looked like two decades ago when Juan left, with outdoor laundry rooms and kitchens. Where did the money to construct these homes come from?

JAMIE LEON, VILLAGE LEADER (via translator): This house on the left, the money came from Chicago. This house to the right, the owners are also in Chicago.

FLORES: A village leader tells us that the money is not just coming from Illinois, but also Oregon, California, and Arkansas, and it doesn't stop at homes. The church, community college, and park also paid for by money transfers.

The clues of just how many dollars are invested here are peppered all over town on signs like these showing how the Mexican government encourages migrants to send money back by matching every dollar on public projects, like the greenhouses that you see behind me, three to one.

Alfredo Gamez owns a lawn care business in Chicago and sends money to family in Francisco Villa, but he's in the U.S. legally.

ALFREDO GAMEZ, LEGAL MEXICAN IMMIGRANT (via translator): I send my parents money for their medicine.

FLORES: What would happen if Trump stopped money transfers to Mexico?

GAMEZ (via translator): It's going to lead to illegal immigration.

FLORES: It's going to lead to illegal immigration, you're saying? Gamez says desperate people in Mexico will head to the U.S. for opportunity. A recent GAO report found that some law enforcement officials believe restricting the legal amount of money transfers could drive transactions into an underground black market.

And while the situation in Francisco Villa might seem precarious this village has a reach that might actually count this November. Rosa Flores, CNN, Mexico Southwest State of Michoacan.

(END VIDEOTAPE)

KEILAR: CNN reached out to Trump's campaign for comments, specifically regarding the potential impact of ending money transfers and the effect on illegal immigration. His campaign did not address the money transfers but maintained its position that building a wall is the right solution.

CUOMO: Olympics, I know you're watching it. Look at the bags under my eyes. You know I'm watching it, too. it was a big night for the U.S. of A. An athlete shattering her own world record in the pool. Amazing performances from women's gymnasts. Wow, we're going to show it all to you. And guess what's coming tonight in Rio? We'll tell you.

(COMMERCIAL BREAK)

[07:53:25] KEILAR: United States swimming star Katie Ledecky making history last night, smashing her own world record in the 400-meter freestyle, winning the first American gold medal in swimming. And the U.S. is currently leading the pack, you can see that, 12 total medals. This includes three gold.

And joining us now from Rio to walk us through all of the Olympic highlights, CNN sports correspondent Coy Wire and CNN sports analyst Christine Brennan. And Christine, I know you watched Katie Ledecky win. Tell us about what that was like.

CHRISTINE BRENNAN, CNN SPORTS ANALYST: Brianna, you know, it was fantastic. It was really the culmination, for Katie Ledecky, of two years of trying to chase her own world record and she kept saying I want to get that number, I want to get that number, and finally she did. And oh, by the way, she also, of course, got the Olympic gold medal.

Katie Ledecky got faster as the race went on. It's 400 meters, eight ways back -- eight laps back and forth. This is not a short race and to see her dominate by, what, two-three body lengths, extraordinary at this level of competition. And there's more for Katie Ledecky. She's got the 800 meters, she's got the 200 meters, and a relay yet to come. Already, I think we can see why she is the rock star of the pool for U.S. women.

CUOMO: I'm waiting to see whether it is the word Mercury or Evinrude that is on her body somewhere because she's like an outboard motor in the pool, that woman. I've never seen anything like it which takes us to the Phelps factor. Let's get a take from each of you guys, Christine, starting with you. Phelps won a relay gold last night. He's already in the books. Do you think he can win an individual?

BRENNAN: Oh, I do, Chris, absolutely. He's got the 100 fly, 200 fly, 200 IM, and maybe one more relay. That's just the beginning for Michael Phelps. And to think about this, at age 31 -- these young kids are what, 10, 12 years younger than he is.

[07:55:00] CUOMO: Yes.

BRENNAN: For him to be doing this in his fifth Olympics is extraordinary and he really powered that relay team to victory with that incredible second leg of the relay last night.

CUOMO: And Coy, you know, we saw those bruises on Phelps. It's probably from cupping, right, which is one of those little remedies you get going there to help with performance. What do you -- do you agree with Christine? You think he's got it in the tank?

COY WIRE, CNN SPORTS CORRESPONDENT: There's no question about it. I think he has a clear heart, a clear mind. He said when he was on those blocks he could feel his heart getting ready to jump out of his chest. You'd think after winning 23 medals that this guy -- this would just be another mundane, routine, ordinary thing, but he is excited. He swam the fastest split he had ever swam in a relay. Guys, he's at 31 years old, as Christine mentioned, and he's still slaying it like this.

He talked about how the importance of his son, Boomer, 3-months-old, here at the Olympic Games with his fiancee is a big part of why he's really feeling inspired about this. He said keep an eye on young Boomer's outfits, by the way, in these games. He's going to be fresh and clean. But also, you know, he has a clear mind. He's been through a lot. He's not drinking anymore. He's here, he's focused, and you're seeing what happens when rare talent and athleticism combines with a fresh focus -- look out.

KEILAR: And I want to talk, Christine, about the expectations that we have for Simone. I mean, this is -- I think we always go into a Summer Olympics Games and there is so much pressure on a very young female gymnast, and Simone Biles is the one here. What are we expecting and do you think that the outcome could be different than sort of this expectation that's being put on her?

BRENNAN: There is -- right, Brianna, there is a ton of expectations. The weight of the world on her shoulders. And when you see these gymnasts you think oh, they're little girls, they're young women. Oh, these are tough athletes. You'd want them in the foxhole with you for World War III. You want them -- you know, they're as tough as any offensive lineman in a Super Bowl, and that's what we're going to see from Simon Biles.

She could be the most decorated gymnast ever by the time these games are over, Bri, and that's exactly why everyone is so focused on her. She is just steely, but this is pressure and your point is a really good one. Is she going to be able to handle that pressure? She's never felt pressure like this in all the world championships she's won and, of course, all of the U.S. national championships -- this is different.

And we'll see her with the team event tomorrow night and then onward with the individual events, and I think she's going to do very, very well here.

KEILAR: When you watch her, compared to other female gymnasts, is there something that she brings that we haven't seen before? Is there somethingreally special about her?

BRENNAN: Well, there is. She's building on Mary Lou Retton, that kind of -- that body that's just such an athletic body.

CUOMO: Powerful.

BRENNAN: And then she's got these moves -- yes, Chris. She's got these moves that you just don't see anyone else do, and then the ultimate confidence. I mean, this is the total package. We've seen great American gymnasts, great Romanian gymnasts, going back to Olga Korbut with Russia, then Nadia Comaneci. This is -- if you put them all together and say I'm going to make the prefect gymnast, this is the one. And now we'll see how she pulls it off, but there is something

absolutely extraordinary. She's like what Michael Phelps or what Katie Ledecky does in the pool, that once in a lifetime. Simone Biles could definitely be that person here.

CUOMO: Coy Wire, how big is it that A-Rod is announcing that he's leaving the game?

WIRE: You know, he has what, over $400 million some in his lifetime earnings from contracts. Hey, I don't blame him one bit. Why go out there and play all these games in a year when he could be sitting at home watching them. It was definitely big news.

I wanted to touch up on Simone Biles, what Christine was talking about. This girl -- the thing that I see that makes her so great is she has no concept of fear. She is doing things -- the coaches and other gymnasts are saying that she's doing things that other athletes don't even think about trying because they're fearful of a devastating injury. She doesn't care. She's going for it and she's nailing it. Man, I'm getting the goosebumps just thinking about her, what she's able to do, and what she could continue to do here in the Olympic Games.

KEILAR: Coy, Christine, thank you so much. We'll be checking back in with you in the days to come.

CUOMO: A lot of big news. We have some breaking news happening right here, so let's get to it.

(BEGIN VIDEO CLIP)

CUOMO: It's a system-wide computer outage grounding departing Delta flights all over the world.

KEILAR: A small computer glitch leads to big, big problems for travelers.

TRUMP: Folks, we're playing games with Hillary.

HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: I may have short-circuited and, for that, I will try to clarify.

TRUMP: She took a literally short circuit in the brain.

SEN. TIM KAINE (D-VA), VICE PRESIDENTIAL NOMINEE: She's said over and over again I made a mistake and I'm going to fix it.

KEILAR: Donald Trump trailing Hillary Clinton by 10 points. How does he close that gap?

NEWT GINGRICH (R), FORMER SPEAKER OF THE HOUSE: If you look at the last few days I think he's gotten the messages.

UNIDENTIFIED MALE: It is day three of the Olympic Games.

UNIDENTIFIED FEMALE: Katie Ledecky took her first gold of the games, breaking her own world record.

UNIDENTIFIED MALE: The women's U.S. gymnastics team dominating the competition.