>> COMING UP NEXT ON ARIZONA HORIZON.

KRIS MAYES JOINS US TO TALK ABOUT YESTERDAY'S U.S.

SUPREME COURT HEARING ON TRUMP ADMINISTRATION TARIFFS AND ARIZONANS ARE CUTTING BACK ON SPENDING.

WHAT COULD THAT MEAN TO THE FUNDING OF STATE PROGRAMS?

THOSE STORIES AND MORE NEXT ON ARIZONA HORIZON.

♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ GOOD EVENING AND WELCOME TO ARIZONA HORIZON.

I AM TED SIMONS.

KRIS MAYES ATTENDED U.S.

SUPREME COURT HEARING ON A LAWSUIT THAT CHALLENGES THE CONSTITUTIONALITY OF TRUMP ADMINISTRATION'S TARIFFS AND INVOLVED IN A LAWSUIT CHALLENGING THE SNAP BENEFITS AND A CASE INVOLVING THE SWEARING IN ARIZONA CONGRESSWOMAN ELECT.

WE WELCOME STATE ATTORNEY GENERAL KRIS MAYES TO ARIZONA HORIZON.

DID I GET THAT RIGHT?

YOU AND THE GUY FROM OREGON?

>> YEAH.

DAN, OREGON AG.

WE CO-LEAD THE LAWSUIT AGAINST THE TARIFFS.

TED: OK.

IT IS THAT WHY YOU WERE THERE?

>> YEAH.

YEAH.

WE ARE THE LEAD STATES.

ARIZONA AND/OR GONE.

AND WE SORT OF CARRIED THE BALL THROUGH THE FIRST TWO PHASES WHICH WAS, HE WON IN THE COURT OF INTERNATIONAL TRADE.

AND THEN, WE WON IN THE FEDERAL APPELLATE COURT, THE FEDERAL CIRCUIT, WHICH IS WHERE APPEALS COME FROM THE COURT OF INTERNATIONAL TRADE.

TED: HOW MUCH IN-- HOW DOES THIS WORK?

I MEAN, THINK THE ATTORNEY GENERAL FROM OREGON ACTUALLY MADE THE PRESENTATION, MADE THE ORAL ARGUMENTS.

HOW MUCH DID YOU HELP?

HOW MUCH DID YOU PREPARE?

HOW INVOLVED WERE YOU?

>> SO WE HAD, ACTUALLY, TWO PLAINTIFFS IN THIS CASE, SO THE ONE, ONE GROUP OF BUSINESSES THAT ARE BEING IMPACTED BY THE TARIFFS.

THERE WERE PLAINTIFFS.

THEY, THEIR LAWYER WAS NER.

THEN OUR LAWYER FOR THE STATE, 12 STATES, INCLUDING ARIZONA AND ME, WERE LED BY THE SOLICITOR TO GENERAL FOR THE STATE OF OREGON WHO WORKS FOR THE ATTORNEY GENERAL OF OREGON.

ANYWAY, WE WORKED ON THE DRAFTS TOGETHER OF THE, YOU KNOW, THE COMPLAINT OF THE LAWSUIT.

THEN HELPED THEM DO SOME PREPPING FOR THE ARGUMENT.

>> YEAH.

IT MUST BE FASCINATING TO DO THAT KIND OF THING THEN SEE YOUR WORK BEING PRESENTED TO THE U.S.

SUPREME COURT.

>> COMPLETELY FASCINATING.

YOU KNOW, I REALLY, OBVIOUSLY, WE WANT TO WIN THIS CASE.

I THINK THIS MAY END UP BEING THE MOST IMPORTANT ECONOMIC DAYS THE SUPREME COURT EVER TAKES UP OR HAS TAKEN UP.

AND IT IS SO IMPORTANT FOR THE PEOPLE OF ARIZONA, ONE OF THE REASONS I CHOSE TO CO-LEAD THIS LAWSUIT WAS BECAUSE I BELIEVE THAT I KNOW, THAT OUR SMALL BUSINESSES ESPECIALLY, BUT BUSINESSES ACROSS THE STATE ARE BEING, YOU KNOW, HAMMERED BY THE TARIFFS, CONSUMERS ARE SEEING PRICES INCREASE.

YOU KNOW, THIS IS EVENTUALLY THESE TARIFFS ARE A TAX ON THE PEOPLE OF ARIZONA, IT IS A 17.5% NATIONAL SALES TAX, TED.

THAT IS WHAT IT COMES DOWN TO.

IT WAS FACED BY ONE MAN.

HIS NAME IS DONALD TRUMP, WITHOUT CONGRESSIONAL AUTHORIZATION.

AND OUR CONSTITUTION-- ALL OF THESE LAWSUITS, TED, YOU HEARD ME SAY THIS BEFORE, COME DOWN TON THE CONSTITUTION, AND WHAT THE FOUNDING FATHER SAID, AND THE LAW, AND IN THIS CASE, THE LAW, THAT TRUMP USED, DOESN'T EVEN USE THE WORD TARIFFS IN IT.

>> SO TAKING YOUR COMPLAINT, BOILING IT DOWN, MAKE IT EASY TO UNDERSTAND, FROM WHAT I UNDERSTAND, IS IT TAXATION WITHOUT REPRESENTATION.

IT IS IT THE GUY IS NOT CONSTITUTIONALLY ALIGNED TO DO THING.

IT IS BOTH OF THOSE THINGS.

AND SO, YOU KNOW, IT WAS INTERESTING TO WATCH THE JUSTICES GO THROUGH THE CASE AND MANY OF THEM INCLUDING AND ESPECIALLY THE CONSERVATIVE JUSTICES WERE FOCUSED ON THE TEXT OF THE LAW, SO IEPA WHICH IS THE INTERNATIONAL EMERGENCY ECONOMIC POWER'S ACT, AND AS I SAID, DOES NOT MENTION THE WORD TARIFFS THAT ALLOWS THE PRESIDENT TO DEAL WITH TRADE IN TOMORROWS OF, IN DOING BOY, YOU KNOW, EMBARGOES THEN, SANCTIONS THOSE KIND OF THINGS, UM, AND BUT, IT DOES NOT SAY TARIFFS.

IT DOESN'T SAY THE PRESIDENT HAS THE RATING TO DO TARIFFS.

THERE ARE SOME PROVISIONS IN LAW UNDER WHICH A PRESIDENT HAS BEEN DELEGATED SOME VERY NARROW POWER OVER TARIFFS BUT THOSE ARE TIME LIMIT.

THOSE ARE LIMITED BY, YOU KNOW, GOT TO GO BACK AND CHECK IN WITH CONGRESS, SO THERE IS A REASON HE PICKED IEPA, IT IS BECAUSE, YOU KNOW, IT IS TOTALLY OPEN ENDED.

HE THOUGHT HE COULD GET AWAY WITH IT.

>> WHEN YOU HEARD THE QUESTIONING AND AGAIN, THE REPORTS ARE, AND WE HEARD SOME OF THE AUDIO FROM THE JUSTICES.

SEEMED A LITTLE SKEPTICAL HERE.

BUT ALSO SKEPTICAL ON THE OTHER SIDE WHICH I WILL GET TO IN A SECOND BUT THEY SEEMED SKEPTICAL ON THE IDEA THAT ONE MAN CAN DO ALL OF THIS.

>> RIGHT.

I MEAN, YOU HAD PEOPLE LIKE NEAL SAYING, AT THE END OF THE HEARING, YOU KNOW, I AM PRETTY SURE THAT OUR FOUNDING FATHERS DESIGNATED CONGRESS AS THE BODY, THAT DEALS WITH TRADE, THAT DEALS WITH TARIFFS, AND TAXATION.

AND HE MADE THE POINT THAT, YOU KNOW, IF A PRESIDENT WERE TO ASSUME THIS POWER WITHOUT APPROVAL FROM CONGRESS, HOW DOES CONGRESS GET THE POWER BACK?

IT WAS GREAT QUESTION.

>> WHAT POWER DOES CONGRESS HAVE?

>> WELL, IT HAS THE POWER TO TARIFF TO ENGAGE IN TARIFFS WHICH ARE TAXES.

IT HAS THE POWER TO TAX.

THE PRESIDENT DOESN'T HAVE THAT POWER BUT THIS ONE, DONALD TRUMP, ASSUMED IT ON TO HIMSELF, THAT IS ILLEGAL.

THAT IS WHERE WE BROUGHT THIS CASE, YOU KNOW, IT IS REALLY IMPORTANT TO THE STATE OF ARIZONA, TED, IT REALLY IS.

ONE OUT OF EVERY FIVE JOBS IN THE STATE OF ARIZONA IS DEPENDENT IN SOME WAY ON INTERNATIONAL TRADE.

TED: BUT AS FAR AS THE CONSTITUTIONALITY.

AGAIN, WHAT POWER DOES CONGRESS HAVE IF YOU DON'T HAVE THIS?

IT WITH AS A VERY GOOD QUESTION.

>> RIGHT.

TED: BUT THERE WERE ALSO QUESTIONS ON HER TO SIDE, THE SUPREME COURT, THIS COURT ESPECIALLY TENDS TO DEFER TO EXECUTIVE AUTHORITY.

SO THEY ALSO ASKED THINGS LIKE, OK, IF THIS IS REVERSED?

HOW DO YOU REIMBURSE EVERYONE?

WHAT IS THE PROCESS FOR THAT?

THAT WAS GOOD QUESTION.

>> THAT WAS GREAT QUESTION.

AND I THINK, AND PRETTY MUCH EVERYBODY ACKNOWLEDGED AND DOES ACKNOWLEDGE, IT IS A MESS.

YOU KNOW, THE PRESIDENT HAS CREATED A MESS.

BUT THERE IS A PROCESS BY WHICH THAT, YOU KNOW, WE ARE GOING TO HAVE TO COME UP WITH TO IF WE WIN CASE, THEN A, AGAIN, I HOPE WE DO WIN THIS CASE.

WE ARE GOING TO HAVE TO COME UP TO REIMBURSE BUSINESSES EVENTUALLY, WHO HAVE PAID ALREADY, TED, BILLIONS OF DOP LARS.

$90BILLION AND COUNTING.

WHO ARE GOING TO BE DUE REFUNDS THEN THE OTHER REASON THAT I WANT THE COURT TO RULE QUICKLY IS THAT LOOK, WE ARE HEADED TO THE HOLIDAY SEASON.

WE HAVE, YOU KNOW, WE HAVE FOLKS WHO ARE PAYING HIGHER PRICES IN GROCERY STORES IN THE DEPARTMENT STORES ON-LINE BECAUSE OF THESE TARIFFS, WHICH ARE HIGHER TAXES AND THEY NEED THE RELIEF NOW.

TED: WERE THE JUSTICES AS INTERESTED IN THAT ASPECT OF THE ARGUMENT AS MUCH AS SEPARATION TO BAUERS?

>> NO, I THINK, THEY WERE HYPER FOCUSED ON THE LAW, SO I THINK THEY WERE FOCUSED ON SEPARATION OF OW POWERS AND THEY WERE FOCUSED ON THE READING, THE TEXT URIAL READING THE LAW THAT TRUMP USED TO IMPOSE THE WORLDWIDE TARIFFS AND THE OTHER TARIFFS.

THEY WERE FOCUSED ON THOSE TWO AREAS THEN THERE WAS THIRD INTERESTING AREA WHICH WAS SOMETHING THAT IS, HAS BEEN TO BE KNOWN AS THE MAJOR QUESTIONS DOCTRINE.

IT HAS BEEN USED BY CONSERVATIVES KIND OF TOOK A TAX FOR MORE LIBERAL CAUSES AND POLICIES BUT IT BASICALLY SAYS THAT IF CONGRESS HAD, YOU KNOW, THE PRESIDENT CANNOT DO SOMETHING OR AGENCIES CANNOT DO SOMETHING THAT ARE SO MAYOR, SO EXTRAORDINARY, THAT, THAT REALLY CONGRESS WOULD HAVE DONE THEM IF THEY HAD MEANT FOR THEM TO BE DONE.

WHEN YOU THINK ABOUT IT, TRUMP, WHAT TRUMP HAS DONE WITH THE TARIFFS IS A MAJOR QUESTION.

THAT CONGRESS WOULD HAVE DONE IF IT HAD WANTED TO.

WOULD SO IN OTHER WORDS IF CONGRESS WANTED THIS, THEY WOULD HAVE MENTIONED IT IN THE STATUTE.

>> CORRECT.

TED: THEY DIDN'T SO THEY PROBABLY DON'T.

>> EXACTLY.

TED: OK THE PRIVATE CONFERENCE FOR THE JUSTICE TOMORROW.

THEY COULD VOTE IN THE NEXT WEEKS OR MONTHS.

WE'LL KNOW DOWN THE LINE.

YOUR IMPRESSION WAS, THERE WAS ENOUGH SKEPTICISM THERE FOR MAYBE THAT IS A BIG DECISION IF THEY OVERTURNED THOSE TARIFFS.

>> IT WILL BE ONE OF THE BIGGEST DECISIONS IN THE HISTORY OF THE UNITED STATES SUPREME COURT.

I SAW, OF COURSE, I DON'T WANT TO PREDICT ANYTHING.

I SAW MAJORITY OF JUSTICE WHO ARE DEEPLY SKEPTICAL OF WHAT DONALD TRUMP HAS DONE WITH TARIFFS.

TED: JUST TODAY, A FEDERAL JUDGE IN RHODE ISLAND, WHEN IT COMES TO SNAP BENEFITS WHERES, OK, WE'LL DO A PARTIAL SEND OUT OF FUNDS HERE FOR THE MONTH OF NOVEMBER.

JUDGE SAYS NO PARTIAL.

LET'S MAKE IT FULL.

TALK ABOUT LAWSUIT, SNAP, YOUR POSITION.

>> YEAH.

SO OUR POSITION IS THAT THE PRESIDENT VIOLATED THE LAW.

AGAIN.

BY NOT USING THE$5BILLION IN CONTINGENCY FUNDS THAT THEY HAVE, THE PRESIDENTS HAVE ALWAYS USED AND, UM, MUST BE USED TO FILL IN THE GAP WHEN YOU HAVE A GOVERNMENT SHUTDOWN.

WHAT IS HAPPENED, INSTEAD, IS THAT THE PRESIDENT HAD SAID NO, WE ARE NOT GOING TO PAY THOSE SNAP BEN FITS FOR THE MONTH OF NOVEMBER.

BASICALLY, THEY WERE GOING TO LET AMERICANS AND ARIZONANS GO HUNGRY RIGHT BEFORE THANKSGIVING DURING THE MONTH OF THANKSGIVING WHICH IS OUTRAGEOUS.

THEN WE FILED A LAWSUIT TO STOP THAT.

WE WON, UM AND AT LEAST, NOW, WE BELIEVE, 50% WILL BE PAID OUT PURSUANT TO THAT JUDGE'S ORDER.

>> THAT JUDGE'S ORDER, NOW WE GOT THE LATEST JUDGE'S ORDER TODAY.

NONE OF THIS 50-65 FULL.

>> FULL.

YEAH.

LOOKS LIKE THE TRUMP ADMINISTRATION WE JUST LEARNED IS GOING TO APPEAL THAT FULL PORTION OF THE DECISION, BUT HOPING AT LEAST 50%, LIKE WE ARE TALKING, TED, WE ARE TALKING ABOUT THE AVERAGE SNAP BENEFIT FOR THE FAMILIES THAT GET THEM, YOU KNOW, IS ABOUT$336 OR$350 HALF OF THAT YOU DO THE MATH, IT IS NOT VERY MUCH MONEY, THE DIFFERENCE BETWEEN HUNGER AND NOT BEING HUNGRY.

>> BUT SO MUCH OF THIS RIGHT NOW IS IN LIMBO.

WHEN DO THE CARDS GET RELOCATED.

WHAT HAPPENS HERE.

WHETHER IT IS PARTIAL OR FULL.

SOMETHING SHOULD BE HAPPENING WHEN IT IS GOING TO HAPPEN.

WE ARE WORKING WITH DEF TO TRY TO GET READY FOR AS SOON AS THE MONEY HITS THE BANK ACCOUNT.

SO, YOU KNOW, WE BELIEVE THAT TRUMP, HOPEFULLY, THE TRUMP ADMINISTRATION WILL SEND THE MONEY, YOU KNOW, ALONG, BUT WE WANT TO BE READY.

WE THINK DES WILL BE READY TO QUICKLY ISSUE THOSE EBT CARDS.

TED: IF THE GOVERNMENT SHUTDOWN CONTINUES.

WHAT HAPPENS ON DECEMBER FIRST.

>> YEAH.

I MEAN, THAT IS THE BIG QUESTION RIGHT.

YOU KNOW.

WE ARE, THIS IS, THIS IS, THIS IS A CALAMITY IN THE MAKING.

AND WHAT, WHAT NEEDS TO HAPPEN, OBVIOUSLY, I SUPPORT MARK KELLY AND REUBEN, WHO ARE SAYING, LOOK, WE NEED THE REPUBLICANS TO NEGOTIATE WITH US, BECAUSE THAT IS WHAT NEGOTIATORS DO.

THAT IS WHAT YOU DO IN CONGRESS.

YOU TALK TO ONE ANOTHER.

THEY ARE FIGHTING FOR THE ACA PREMIUMS TO NOT BE SLASHED.

I MEAN, KEEP IN MIND.

WE ARE DEALING WITH, ARIZONANS ARE DEALING WITH A TRIPLE WHAMMY.

THE LOSS OF SNAP BENEFITS.

THE INCREASE OF HEALTH INSURANCE PREMIUMS AND THE ACA BY TRUMP AND THE REPUBLICANS IN CONGRESS AND THESE, THESE TARIFFS PRICE INCREASES AND TAXES.

AND SO, SO WE NEED THEM TO COME TOGETHER.

BUT THE REPUBLICANS HAVE TO DO THAT.

TED: GOVERNMENT SHUTDOWN, THOUGH, IS THAT THE BEST WAY TO GET THAT DONE?

>> BOY, I DON'T KNOW.

HOW ELSE ARE YOU GOING TO GET IT DONE?

YOU KNOW?

I MEAN, YOU GOT TO REMEMBER, THIS IS AN ADMINISTRATION, THE TRUMP ADMINISTRATION, THAT CONTINUES TO DO THINGS LIKE POCKET DECISION AFTER CONGRESS HAS NEGOTIATED A BUDGET DEAL.

HOW DO YOU-- IF YOU ARE A MEMBER OF CONGRESS, HOW DO YOU TRUST THIS ADMINISTRATION TO NOT COME BEHIND YOU AFTER YOU DO A DEAL AND, AND ERASE WHAT WAS DONE?

AND SO THEY ARE TRYING TO HOLD FIRM BECAUSE THIS IS THEIR OPPORTUNITY TO GET THESE ACA PREMIUMS FIXED, SO THAT PEOPLE DON'T LOSE THEIR HEALTH INSURANCE.

TED: ALL RIGHT.

WELL, WE COULD GO ON WITH THAT.

>> I KNOW.

TED: BEFORE YOU GO.

AGAIN, YOU FILED A LAWSUIT, SHE FILED A LAWSUIT HERE.

BASICALLY, THE SPEAKER OF THE HOUSE COMPLETELY DISMISSED YOUR LA YOU SUIT, COMPLETELY DISMISSED YOU, HOW DO YOU RESPOND TO THAT.

IF YOU SAID HE HAD NOTHING TO DO WITH THIS.

YOU LOOK FOR NATIONAL ATTENTION.

GET OUT OF HERE.

>> I THINK HE SAID SOMETHING LIKE BRING IT SISTER, SO I DON'T KNOW.

OK.

I BROUGHT IT BROTHER.

I BROUGHT IT BROTHER.

YOU KNOW,WAY.

IT IS KIND OF-- SO HE, THEY HAVE NOT RESPONDED.

SO I UNDERSTAND IT, TO OUR LAWSUIT.

I WILL SAY THIS ON HERE, TED, WE ARE LOOKING AT ALL THE OPTIONS RIGHT NOW.

THERE ARE ADDITIONAL LEGAL OPTIONS AVAILABLE TO US, AND SO WATCH THE SPACE NEXT WEEK.

IT IS UNACCEPTABLE.

THAT THE STATE OF ARIZONA AND ESPECIALLY THE CONGRESSIONAL DISTRICT, 813,000 PEOPLE ARE BEING TAXED WITHOUT REPRESENTATION.

AND THEY DESERVE A MEMBER OF CONGRESS.

WE VOTED FOR HER.

THE STATE VOTED FOR HER.

SHE HAS BEEN CERTIFIED.

IT IS TIME.

IT IS TIME FOR MIKE JOHNSON TO SWEAR HER IN.

TED, THERE IS ALSO A NEW MEMBER OF CONGRESS, THAT WAS JUST ELECTED, I THINK, ON TUESDAY, IN TEXAS.

WHO NOW HAS TO BE SWORN IN.

WHAT IS HE GOING TO DO?

DEPRIVE TEXAS OF THEIR CONGRESSIONAL REPRESENTATION.

>> I AM GLAD.

I THINK I PUT THAT IN THE TARIFF THING.

>> IT IS BOTH.

TED: YEAH.

BEFORE YOU GO, THOUGH, I GOT TO ASK A LEGAL QUESTION HERE, BECAUSE SOME PEOPLE ARE SAYING, YOU KNOW, A FILING, SHE SUFFERED HARM FROM THIS.

YOU DIDN'T, YOU DON'T NECESSARILY, THEY SAY, HAVE STANDING.

>> SO WE BOTH FILED.

YEAH.

YEAH.

HOW DO YOU HAVE SAYING?

WHERES THE PERSONAL HARM NOW?

THE HARM TO THE STATE.

I AM A TOP LEGAL OFFICER FOR THE TATE STATED OF ARIZONA FOR THIS DISTRICT.

AND SO, NOT ONLY SO ADELITA IS A PLAINTIFF.

THE STATE OF ARIZONA THROUGH ME, BOTH PLAINTIFFS IN THE LAWSUIT THAT WE FILED.

AND WE WORK TOGETHER ON THAT LAWSUIT.

SO OBVIOUSLY, COVERING OUR BASES THERE, BUT CERTAINLY, THE HARM TO THE STATE IS THAT WE ARE DOWN ONE MEMBER OF CONGRESS.

WE ARE SUPPOSED TO HAVE NINE.

WE HAVE EIGHT AT THE POINT.

TED: AND LAST QUESTION ON THIS, WE HAVE HEARD REASONS WHY PEOPLE THINK SPEAKER JOHNSON IS WITHHOLDING ADELITA THE SWEARING IN, WHY DO YOU THINK HE IS DOING IT?

>> I MEAN, I THINK THAT YOU-- YOUR MINE HAS TO GO TO THE EPSTEIN FILES, AND YOU KNOW, WHAT OTHER REASON IS THERE, CERTAINLY NOT LEGITIMATE, BUT IT IS A REASON, UM, FOR HIM TO NOT ONLY BE NOT SWEARING HER IN, BELL'S SEE WHAT HE DOES WITH THIS TEXAS REPRESENTATIVE.

BUT ALSO, I DON'T KNOW.

IT IS IT PLAYING INTO THE SHUTDOWN AS WELL.

BECAUSE YOU COME BACK IN THE SESSION TO DEAL WITH THE SHUTDOWN, THEN YOU GOT TO SWEAR THEM IN.

SO, I MEAN, YOU HAVE TO ASK THE QUESTION.

ARE THE EPSTEIN FILES ALSO INFLUENCING THIS SHUTDOWN?

WHO KNOWS?

BUT, WHATEVER THE REASON, IT IS UNCONSTITUTIONAL, AND WE ARE GOING CONTINUE TO FIGHT FOR OUR REPRESENTATION IN CONGRESS.

>> ATTORNEY GENERAL KRIS MAYES ALWAYS A PLEASURE.

FOOD YOU HAVE HERE.

THANKS FOR BEING HERE.

THANK YOU, TED.

TED: ECONOMISTS ARE SEEING A CUT ABACK IN ARIZONA.

THAT IS KNOWN FOR A VARIETY OF REASONS NOT THE LEAST OF WHICH IS LOWER SALES TAX REVENUES COULD IMPACT THE STATE BUDGET.

DALE RODGERS FROM THE SCHOOL OF BUSINESS.

ARE HERE TO TALK ABOUT THIS.

GOOD TO SEE YOU.

>> GREAT TO BE WITH YOU.

I LOVE THAT TIE.

THE GREENEST BOW TIE I HAVE SEEN.

>> IT IS VERY GREEN.

TED: YES, IT IS.

WE HAVE A REPORT FROM THE ADVISORY COMMITTEE.

90% OF ARIZONANS ARE SPENDING LESS RIGHT NOW.

THE TOP 10% OF INCOME LEARN EARNS THEY ARE SPENDING.

THEY SPENDING QUITE A BIT.

BUZZ THE REST OF US, I SHOULD SAY, ARE NOT.

WHAT IS GOING ON HERE?

>> WELL, IT IS INTERESTING BECAUSE I HAVE BEEN ON A LOT OF PLANES LATELY.

THE FRONT OF THE PLANE IS TOTALLY FULL.

AND THE BACK OF THE PLANE IS WAY LESS PEOPLE IN IT THAN NORMALLY.

SO, UM, THAT, THAT KIND OF ECONOMIC GRIEF IS HURTING THE LOWER PART OF THE ECONOMY THE MOST.

IT IS ALSO HURTING THE AIRLINES AND GROCERY STORES AND THERE IS A LOT OF THINGS WORKING AGAINST THE LOWER END OF THE ECONOMY.

IT IS REALLY CLEAR THIS YEAR THAT THE NEW ADMINISTRATION IS REALLY ON THE SIDE OF THE RICH GAS.

YOU CAN REALLY TELL A DIFFERENCE.

>> ALSO IT LOOKS AS THOUGH WAGE GROWTH DOING PRETTY WELL FOR HIGHER INCOME EARNERS NOT SO WELL FOR LOWER WAGE EARNERS.

IT IS THAT WHAT YOU ARE SEEING AS WELL?

ABSOLUTELY.

>> TRUE.

THERE IS OTHER THINGS HAPPENING AT THE SAME TIME.

WE YOU KNOW, WE ARE SEEING SOME NEW COLLEGE GRADUATES EVEN HAVE DIFFICULTY GETTING A JOB BECAUSE THE UNCERTAINTY IN THE ECONOMY RIGHT NOW.

WHAT ARE WE DOING WITH TARIFFS.

YOU HAD ATTORNEY GENERAL, ARE THEY LEGAL.

ARE THEY NOT.

I THINK THEY ARE ILLEGAL.

THEN ALSO THE INVESTMENT IN AI WHICH IS REALLY DRIVING THE STOCK MARKET.

AND PEOPLE THINK THEY NEED LESS PEOPLE BECAUSE THE INVESTMENT IN AI.

I SO THINK EARLIER IN THE WEEK ABOUT HOW BUSINESSES ARE SAYING I MAY NOT NEED PEOPLE.

AI IS GOING TO FILL IN.

THAT AI, SOME PEOPLE ARE CALLING IT A BULB IN THE STOCK MARKET.

DO YOU THINK IT IS A BULB.

WELL, I DON'T IN THE LONG RUN.

THE NUMBERS ARE INFLATED.

LIKE I REMEMBER IN 20 1 WHEN IN VIDEO WHICH IS DRIVEN BY AI INVESTMENT NOW.

THEY MAKE GPU'S YOU NEED THOSE FOR AI.

I REMEMBER 2021 TO HIT VALLEY COMPANY.

SO THIS PAST WEEK THEY HIT$5TRILLION.

YEAH.

YOU KNOW, IT WOULD BE GREAT IF THEY WERE.

BUT GOSH, THAT SEEMS LIKE A LOT.

SO I DON'T KNOW.

SO STOCK MARKETS, PLAYING A FACTOR, TARIFFS, PLAYING A FACTOR.

RISING PLACES.

YOU TALK TO THE ATTORNEY GENERAL ABOUT SNAP.

THEN YOU KNOW, IT ITS INTERESTING IF YOU LOOK AT THE NUMBERS ARIZONA, SO THERE IS$923,000 PEOPLE.

THAT IS 12.2% IF YOU DO, YOU KNOW, THE FRACTION, THAT IS ONE OUT OF EIGHT.

THAT IS ONE OUT OF EIGHT PEOPLE.

AND SO, AND SO, REDUCTION OF BENEFITS, CERTAINLY IN THE SHORT TERM IS OF COURSE GOING TO DO LESS SPENDING, AND, AND, IF YOU LOOK AT THE SUPPLY CHAIN, WHERE STUFF IS COMING IN FOR CHRISTMAS, BEFORE, BUT YOU KNOW, EARLIER THIS YEAR, I MEAN, JULY WAS THE ALL-TIME RECORD AT THE PORT OF LOS ANGELES IN TERMS OF CONTAINERS ARRIVING.

IN THE HISTORY OF 117 YEARS OF THE PORT OF L.A., AND SO, SOME OF THAT DEMAND GOT ACTUALLY PULLED FORWARD AND SO THERE IS GOING TO BE LESS SPENDING WHICH THAT IS CLEARLY GOING TO IMPACT TAX REVENUES.

>> AND THAT IS FOR WHAT I WANT TO TALK NEXT.

TAX REVENUE WHEN IT COMES TO ARIZONA AND THE GENERAL FUND, THE IMPACT ON PROGRAMS, THAT YOU ARE GOING TO HAVE TO FIND THE MONEY SOMEWHERE?

>> YEAH.

YEAH.

AND YOU KNOW, WE HAD A PRETTY GOOD RAINY DAY FUND SOMETIMES RECENTLY IN THE STATE OF ARIZONA, BUT, BUT THIS YEAR, ALL OF THAT MONEY, I BET, DISAPPEARS.

>> DO YOU THINK THEY USE A RAINY DAY FUND.

THEY GOT LIKE$1BILLION.

WELL, YEAH, I THINK THEY ARE GOING TO, I THINK IT IS REALLY DIFFICULT DECISIONS THAT THE STATE LEVEL.

I AM SURE YOU ARE GOING TO TALK ABOUT THAT.

>> YEAH.

YEAH.

ON THE ROUNDTABLE TOMORROW.

BUZZ THERE IS GOING TO BE SOME REALLY, REALLY TOUGH DECISIONS, AND, AND, YOU KNOW, WE DO THE LOGIC IS K MANAGERS INDEX WHICH I TALKED TO YOU ABOUT MOST MONTHS AND WE ARE CLEARLY SEEING, UM, UM, SOME SIGNS THAT COULD SIGNAL, THAT COULD SIGNAL A SLOWDOWN IN THE ECONOMY.

WE DON'T KNOW FOR SURE IT IS A SLOWDOWN IN THE ECONOMY.

BUZZ IN A NEGATIVE INVERSION WHERE TRANSPORTATION CAPACITIES ARE OUTPACING TRANSPORTATION PRICES, AND THAT OFTEN HAPPENS BEFORE WE SEE A SLOWDOWN.

YOU KNOW, BECAUSE BEFORE IT GP IT GOES ON A TRUCK, A TRAIN, A WAREHOUSE, SO, SO IT IS AN INTERESTING TIME, AND, AND AT THE SAME TIME, WE ARE PUTTING TARIFFS ON, MAKING THINGS MORE EXPENSIVE, WE ARE ALSO SCREWING UP THE LABOR MARKET, THE TRUMP ADMINISTRATION HAS BEEN INCREDIBLY AFFECTIVE AT CLOSING THE BORDER, BUT ALL THOSE FARMWORKERS.

ALL THOSE FOLKS THAT WERE SORT OF MAKING THE ECONOMY GO AT A LOWER LABOR COST PER HOUR, MANY OF THEM HAVE EITHER BEEN ARRESTED AND DEPORTED OR THEY ARE AFRAID AND SO, AT THE SAME TIME, YOU ARE SEEING A HIT ON THE TARIFF SIDE AND INCREASE IN TAXATION AND YOU ARE ALSO SEEING REDUCED LABOR.

IT IS THIS THE KIND OF THING, AND KIND OF RUNNING OUT OF TIME HERE.

I WANT TO MAKE SURE WE GET THIS IN.

IT IS THE KIND OF THING THOUGH THE PRESIDENT, THE ADMINISTRATION AND SUPPORTERS WOULD SAY, IT CORRECTS.

WE NEED TO GET THROUGH THIS.

SO WE CAN GET BACK ON THE RIGHT TRACK BECAUSE WE HAVE BEEN ON THE WRONG TRACK FOR SO LONG.

>> WELL, YOU KNOW, ONE OF THE CRAZE WHERE I THINGS, TED, IS THAT WHEN YOU THINK, BY PUTTING TARIFFS ON, PARTICULARLY UP STREAM STEEL, ALUMINUM, WHICH IS FAR UPSTREAM, THAT YOU PUT TARIFFS ON, YOU ARE GOING TO BRING MANUFACTURING BACK AND CERTAINLY FOR THE CERTAINLY FOR THE NEXT COUPLE OF YEARS, IF THE TARIFF STAYED ON, WE DON'T KNOW IF THEY WILL OR THEY WON'T, WHAT IS GOING TO HAPPEN.

YOU ARE GOING TO SEE THE TRUMP ADMINISTRATION PROBABLY SHIFT FROM TARIFFS ON A COUNTRY TO TARIFFS ON PARTICULAR COMMODITIES IF YOU SEE THAT, WE ARE GOING TO SEE LESS MANUFACTURING.

THIS WEEK, SHOWS A REDUCTION IN MANUFACTURER.

>> ALL RIGHT.

WE GOT TO STOP THERE YOU.

GOOD STUFF.

DALE RODGERS.

THANKS FOR JOINING US.

WE APPRECIATE IT >> GOOD TO BE WITH YOU.

>> YOU BET.

THAT IS IT FOR NOW.

I AM AM TED SIMONS THANKS SO MUCH FOR JOINING US.