In washington you have the house and the senate that want to go different directions. People will talk about the good old days of bipartisan compromise, by telling you how old they are. Because it is true that 30 or 40 years ago the republicans would get together with the democrats and they would argue about todays topics. All fights in washington dc work bipartisan. Going up to nixon. Lifetimeagans nice the twoparty sorted themselves out. Lon wants a more constrained view of the government, one wants a expanded view, and they are heading different directions. One wants to go east and one was to go west. What would compromise look like . Government, bigger and we have revised between bigger and much bigger credit each guy would go back to his corner and say you know, i got is a really good to have more than they wanted or less than they wanted. We were always compromising for bigger government. Which was not the direction that we want to go. Now we have one party that wants to go to less government, once that wants to go to bigger government, and theyre not going to agree. Each one can say no to the other. To give you some idea of you could quantify this. Funds that invest when congress is out of session and goes into cash when they are in session. Is thaton they do this for 30 years, when congress was in session, the stock market was up about 1. 6 . When they are out of session it goes up 17 . 17 bytes better when congress is not sitting because you could wake up in the morning and something bad had happened. Longer has the advantage because for the last couple of years at, at least since 2000 little when the republicans actually held against the push for a tax increase, and the markets were convinced that nothing bad was going to pass legislatively, there is no discernible difference between when congress is in session and out of session on how the stock market moves. That give you some sense of the advantage of gridlock. The markets are not paralyzed whenever Congress Goes into meet level, we havete the opposite of gridlock. 24 states have republican governors and Republican House and Senate Things to the redistricting. Republicans have held those legislatures for a decade. The democrats were asked, would like one land letter to one landslide or two, and they said two. They reduced to did for 10 years, and so they got to landslides that lasted for four years, and one landslide that asked for 10 years. We just in washington where tend to focus on congressional redistricting, but for state legislatures is probably even more true. The democrats redistricting did make illinois at bill california and bulletproof are democrats, and the 13 days that have both legislature and governor. The republicans have 24 states. Republicans have half the population live in another state. The democrats have a quarter of the population living in their states, at a quarter of a places like becky and i over the legislature is divided. 13 states, democratcontrolled state going as quickly as they want. 24 states becoming texas or hong kong. They are moving in very different, some more rapidly than others. Statesingle democrat raises taxes, and all the republican states top cut taxes unless several years. You see several differences on how they treat publicsector unionism. Spending,taxes and markets for tax reform, by 2050, to get all 50 state to abolish the state income taxes. Nine have no income tax now. North carolina and kansas, republican governors, both houses, have announced that we are going to zero. They got about a quarter of the way there so far. Watch aerosonic of what oklahoma got weird word to see more movement more quickly. And then we can judge. If you think that more Government Spending and higher wages make people healthier, wealthier, and were successful, and the economy will be better cover than he can do it all loads loads of good enough to will behington better. They can do that. You do not have to wait to washington. Filibuster proof majority have they want to reform the Corporate Tax code they want to fix obamacare. They seem to be troubled by the same gridlock that troubles the administration. To worrying about the changes that you want me to the way that the National Government treats the National Economy . We have a senate and house race in november. It looks very good for the republicans, with the number of senate the that are held why democrats that are engaging. Are indeed your. Danger. 2016, there are a number of seats that you worry but in illinois, perhaps, which is one intent but it which is not only republican territory. 51 is not what youre looking for, 54, 55 is what youre looking for. The house will strengthen Going Forward. The replica guns have repetitive it is for the republicans have better candidates than the 10,012ts, much more than 2012 and we were sloppy about running for senate. Not being disrespectful to anybodys arsenal personal to go withuld refer the scaling or something. [laughter] you said greater than 50 . What percentage would you give . What fact are what factors do you think are behind the republican wave that is coming in november . The democrats who are sitting in republican states. West virginia is technically a blue state, democrat of hundred, Democratic House, democrat excitement. Democratic governor, Democratic House, Democratic Senate. 5050, the West Virginia senate, we will take that senate the force or for sure. In montana, the cumbersome and has been running for that seat, and that will be a republican pickup. Arkansas will go republican. So will espn a, so well North Carolina so will louisiana, so well North Carolina. I just left one of the seven out alaska. The republicans just to make sure that they take one and not have a thirdparty, and then they get to win. Those of the 70 need to get across the finish line. But now the republicans are pulling ahead in michigan, so that in that race, you have a serious candidate in new hampshire, in colorado, both in play. One out of three shot in those. You add those together and you start to worry. You worry about georgia, if they a warlock. Could you define this for the audience . One of the candidates had decided she was a which witch, and she was good enough to defeat the sitting republican. But she was not good enough to get across the finish line in the general election in delaware. Woman, probably not a witch, she was probably making that up. [laughter] optimistic as republicans are but 2014, changes a little bit because especially on the left there is a lot of days in the clinton machine if she does announce the extremely formidable race. Take us through the top candidates for the Republican Party party for 2016 and the strengths are . This field is so much superior to 2008 and 2012. You really had one of two people who are running for president of the others were running to be a radio talkshow host or marriage counseling. Or to sell books. But they were not actually running for president with a but they were buying a Lottery Ticket because maybe they would primary, and then the press would come and they would get attention. Money,n they would raise and then they would get a campaign together, and they would get a Campaign Manager and all the things that should have happened two years earlier for a grownup campaign. This time away arent we have six people who are either standing on the stage already, or good step up on the stage and no one would laugh them off of it and ask what you are doing. Five governors, one senator. Start with chris christie, he has had some challenges, and maybe he does not make it, but he writes himself, he will be a serious person and a good raise the money, he has the capacity and the name to both raise money and run, and a narrative of successes in terms of reforming a deep blue state. A constantr was attorney blue state red. Reformed the pension rules there, they report that union rules. Every year they have to have an election if the unit was to keep going. If the union wants to keep going. Your money oute of your paycheck, they have to come and ask you for it. Teachers are making 50,000 in cap and that was taken out of your paycheck by the city or the school board, and given to the union, and he never sought. Not since you and your pocket until the union guys come and say can i have 1000, and youre allowed to say no. Oddly enough, several do. He has dramatically changed the saint the state. Every republican has made a contribution to him when the unions tried to recall him. He is the only governor that defeated a recall and got reelected. Down to rick perry, he faltered last time because he should not have taken Pain Medicine before debates. That said, he spoke with the conservative legal action conference, and the establishment press for saying he is agreeably articulate. He is when he is not taking Pain Medicine. He is a very successful governor for 14 years. There is a real narrative there, good ra it could raise a bunch of money. The governor of louisiana got an ethics law that minnesota would have been pleased with past and louisiana. School toys for 380,000 kids School Choice for those kids. Schools are available for a buddy who wants to take him up on that. He may well run. Jeff bush was governor for eight years, perfectly competent regular republican governor. He would be a candidate who could step up to someone would have to fall over for him to step up, but he could do that. And then rand paul, who starts with 15 or 20 based both and all 57 states. There you have a real opportunity as a senator. It other senator, it is very different very difficult to pass this bill. It is increasingly that they dont pass bills. [laughter] speeches, but if you can compete with the guy who could wake up tomorrow morning who could do something edges on the front page of a major newspaper and the sugar is awfully difficult to compete with that. You said christine, walkabout. , bush, paul. Is there a top three . No, i think the good news is that all of those guys are being tested on whether they have glass jaws or not, and most of them have done quite well. Kristi is being run through the ringer again. And he makes you will be tough as nails, if he does not make it, that will be fine. I think he has covered well in a difficult state. Unfunded liabilities, and done that with a Democratic House and a Democratic Senate in new jersey. Real progress there. Brownback ofked kansas. He could have an exciting legislative term just as scott walker did. Back in 2011. That could put him up front. Other than that, i do not see a governor that would work within that would do the kind of a mage and back you say i know the six guys a really just think of a but look at the new kit and new kid. There was a poll that came out at the end of last week that looked at some trends among millennials. It found a couple of things that i think pertains to this conversation. Not, like tohey do identify with labels over the independent, most of them voted for obama. The ba percent of nonwhite millennial said of the itsnment that it is responsibility to provide health care. 71 said they want a bigger government with more services. These are slight majorities, filibuster proof majorities. Does the Republican Party have a serious demographic disadvantage moving forward in the next 20 years . What is the best way to think about this . You need to look at demographics in two different ways. Democrats look at graphics like race, ethnicity, and gender because that is what they think of. There are ways to look at it, selfemployed people, the number of covered workers versus rented Sector Workers to people who ow n 15 of stock. Health savings accounts, individual retirement accounts, eating more people into the stock market. Answer everything with cops, teachers, and underment those government employment. It makes you lower likely to be a democrat or republican. You can add into that the other things you can change. States 45t the united years ago, 25 years ago homeschooling was a legal in just about every state, maybe to had it legal. Today is pretty much legal in all 50 states. 2 Million People homeschool, and they know perfectly well that the modern Democratic Party wants to take that away from them. Add to that the 380,000 parents 500,000 voucher and louisiana, 2000 voucher in louisiana in arizona. We are building out schools and structures that allow the letter, but they can go to a different public school, or the one that they go to might be nicer to them when they walk in and say i have 5,000, and i want to know how youre going to treat my kid this year versus last year. They will treat you with respect, which they will not do w, think about how youre cheated when you go into law go in to buy a car versus the department of motor vehicles. I do not think they will ever come back in the state for School Choice has been one. Just as labor did not come back in Great Britain until they fundamentally changed their view about allowed people to buy the console housing over the public owns. And people did. The bolsheviks ran against them, and they said they will steal everybodys houses, and this will be great, and they got wiped out. People who where were labor voters wiped them out when they threaten their kids and education. 30 years ago there was very little concealed carry issue. Able tollowed being carry a gun on them in their purse. Have concealed carry permits. Who has made that decision is a different human being than the one who says that we have a government, and if something goes wrong they will draw a circle around me and this will be helpful. In person says i will be charge of myself. Try to take that away from people, try to take that away from people. Thats what the democrats always get in trouble when they talk about gun control because they do not understand their threatening something that you will consider important. We can, by expanding liberty, and that is where half the country that lives in red states are doing all of these expansions of freedom, and the immigrants are voting against that, and we would not want you to have that, and if we ever get active power wisconsin and we will take your dues out and you will never see it, and you do not produce a no, and we will go back to the way it was. Tot is not a real self but sales pitch to go to people. Once you give people more liturgy, the dates of major who they are liberty you changed the nature of who they are. I am not sure that the challenges that you mentioned continue out. At 40 not the same person as we were at 20. That said, i think a lot of needs to bearty much more aggressive in being proimmigration and we need to be taking all the smart people from around the world and when they come here to get a phd, im not in favor of not letting them leave, but im in favor of encouraging them to stay, and stealing their airplane ticket home. We want all this talent. Theres a lot of people in a lot of jobs that we need more people. The reason that we are the future and china is not because we are allowed to have kids and a lot of immigration. We have one more question. Make it great. Chairman cummings. You just promoted liberty and individual responsibility. How do you feel about Corporate Responsibility . Companies, who through negligence or error do not dump chemicals into a westward bend to river and declare bankruptcy . How can our economy deal with situations like that that does not just fall on the government to bail them out . Reasonable to have loss so that people who pollute the neighbors property paid for damage they do, just as they were in a vehicle. Real damage can be done. I think it is very important that we ask individuals and businesses to be responsible for real things they do. Reform, whereort the trial lawyers have been getting rich going after people force the that the guy who owned the house before them did the some of the stop where you the guy with the deep rockets, again texas has passed a great number of reforms in terms of that reform that have dropped the cost of notable care in the state, more doctors are moving into texas as a result. Louisiana is about to pass the same collection of rules. Sohink getting those reforms that the billionaire tile reforms trial lawyers who save been abusing the system is the thing we need to tap down. It is killing the sector, being very and helpful. Very unhelpful. Lets reform those so that we realocus on cases of criminal activity. By individuals, or people can collectively in some company. We have one time one more question. The guy with the beard . Guys with beards get to go first. [laughter] you have taken it to an extreme. [applause] [laughter] sunshine press. Im wondering if he could set would make anrics economy better that is what is the purpose of all of these policies . How would you measure that the economy is better here than there . States whereo some the democrats are predominant. Do you look at Life Expectancy . Education levels . How can you tell if the economy or Economic Policy is better or worse . Want to have metrics, if you do not have metrics, you end up with all sorts of problems. I talked to the budget guy when bush came into office. I asked what metrics are you going to use . Percentage of gdp . Total number of fulltime employees of the federal government . What is the metric youre going to have to maintain the cost of government. And he said we should do Something Like that, and they never did. It wasnt on the list of things to do to measure the size of government. What are you trying to get to . Is one capita gdp measure. People decide to be monks or warlocks or something, and they do not care about that. Some people will be rather them to have more than last some people would rather have more than less. Few people are quitting jobs and few people are moving. In a vibrant, dynamic economy, where people are leaving their jobs because theyre someplace else to go to, they move because there is something to move towards. When you look at all the bad numbers not the employment levers, the number of pe