FOX News Channel "Your World"
MR. CAVUTO: Today, gas at a record again. Regular unleaded now at $3.65 a gallon. And while the Street's taking it in stride, the Dow was up a little bit more than 50 points today, my next guest says Main Street definitely is not. And Newt Gingrich says it won't be Democrats but Republicans to pay the price if those prices don't come down. Former speaker and author of "Days of Infamy," among so many other bestsellers here to explain.
Democrats are in charge of Congress, though.
MR. GINGRICH: Sure they are.
MR. CAVUTO: So why would Republicans --
MR. GINGRICH: The country thinks a Republican president was in charge. And the country thinks that a lot of the things that we're currently having problems with were the Republican's fault. And if you look at all the polls, you look at the loss of the seat last Saturday in Louisiana in a special election, the loss of a seat six weeks ago in Illinois, Speaker Hastert's seat, the country right now is saying they want to try the Democrats.
Now, the fact is that Democrats have had no answers. In fact, you could make a pretty good argument most of the current energy problem is created by politicians. I mean, it's politicians who set the tax law. It's politicians who made it illegal to go look for gas and oil in the U.S. And so I think that if gasoline prices keep going up, at some point you're going to see a dramatic change in the whole debate over energy in the United States, I think. But the Republicans ought to be leading that debate.
Now, Congressman Paul Ryan today is introducing a bill which provides for a gas-tax holiday this summer and pays for it by setting a one-year moratorium on set-asides and earmarks in the appropriations bills. So he actually takes the money away from the politicians in order to cut gasoline prices.
MR. CAVUTO: But that's sort of like intangible stuff to most voters, is it not?
MR. GINGRICH: Well, I --
MR. CAVUTO: I mean, they want to see immediate relief at the pump. And if you're right -- by the way, Minority Leader Boehner disagreed with your view of things today -- then it doesn't matter unless it's an immediate relief.
MR. GINGRICH: Well, I think, first of all, something which brought down the price of gasoline 10, 15, 20 cents is a step in the right direction.
MR. CAVUTO: So a federal gas-tax holiday is that.
MR. GINGRICH: A gas-tax holiday, if it's paid for with spending cuts, is a good idea.
MR. CAVUTO: So not Hillary's route, paying for it with taxes on the profits of the oil companies.
MR. GINGRICH: The last time we had a windfall profits tax on oil companies, we reduced gasoline production in the U.S. by 13 percent. Now, if you think the smart way is to make America more dependent on foreign dictators and have to import more oil, then Senator Clinton's tax increase makes perfect sense. But we've got to be honest about what it's going to do. It's going to drive production offshore. It's going to weaken the American production of energy. And it's going to make us more dependent on foreign dictators.
MR. CAVUTO: You are for reducing the federal gas tax for --
MR. GINGRICH: I am for reducing it for the summer and paying for it with spending cuts. I'm also for stopping the purchase or putting oil in the Strategic Petroleum Reserve.
MR. CAVUTO: But it's almost full now, right?
MR. GINGRICH: Well, that's right. And the 76,000 barrels a day, probably at the margin, would bring down prices about 5 cents a gallon.
MR. CAVUTO: In other words, oil we're putting in that, if on the market --
MR. GINGRICH: You put it back in the market, it helps, okay.
MR. CAVUTO: Yeah.
MR. GINGRICH: So you take the price --
MR. CAVUTO: What if it doesn't, Newt? You know, I see your point about this. I agree with you, by the way, it would hurt the party who controls the White House just like energy crises in the past have hurt whoever occupies the White House. But what could turn it around?
MR. GINGRICH: Look, there's one big fact that nobody in American politics wants to get into. Brazil in the last 18 months has found three giant oil fields in the Atlantic Ocean. And that makes Brazil independent of the Middle East. Now, it is illegal today to drill in the Atlantic Ocean. It is illegal today to drill in the eastern Gulf of Mexico. It is illegal today to drill in the Pacific. And it's illegal to drill in northern Alaska. And then we say, gosh, why do we have an energy problem? My guess is if you made it legal, and if you allowed the states to have the same percent of offshore revenue that Wyoming gets for mineral rights onshore, you would have a dramatic rush to produce new American oil and gas, and you would see a dramatic decline in the cost of energy.
MR. CAVUTO: You mentioned Brazil. There's a country that's found another alternative.
MR. GINGRICH: They're also using cane sugar. But they weren't satisfied just to use cane sugar to make ethanol. They literally have, in the last 18 months, found three of the largest oil fields in the world.
MR. CAVUTO: Some news is coming in right now as you're with me, Newt. And I always love when that happens because I get you on the spot. Hillary Clinton has written Barack Obama today to do something about the Michigan and Florida delegations. What do you think of that? How do you think that's going to play out?
MR. GINGRICH: I don't know what she has proposed. I think it's interesting that Michigan has a primary on August 5th that they've already got scheduled for the state offices. They could actually add the presidential primary to the Michigan primary on August 5th, and they would pick delegates three weeks before the convention. And that would be a straight-up vote. She and Senator Obama could campaign, and the people of Michigan could make their mind up.
MR. CAVUTO: What are the people in Florida going to say to that?
MR. GINGRICH: Well, I think the people of Florida have got to be seated in one form or another. I mean, I don't see how you go to a very narrowly fought contest and have the fourth-largest state in the United States not there. I can't imagine --
MR. CAVUTO: But the Obama folks say, these were the rules, we knew that, we knew the ramifications for people not following the rules, end of story.
MR. GINGRICH: So real change you can count on includes wiping out Florida as a state? I think you just -- Obama can't go to Florida and look people in the eye and say the Democratic Party of Florida messed up; therefore, all these millions of Floridians --
MR. CAVUTO: So let me turn it around to you. Let's say Florida and Michigan, the delegations seat and all that. Then do you buy the Clinton folk's arguments that you need 2,200-some-odd delegates to win the thing?
MR. GINGRICH: Yes. I mean, that's the number. If you --
MR. CAVUTO: So then this behooves the Hillary Clinton -- you were the one who said Hillary Clinton was going to get this thing.
MR. GINGRICH: I've never seen either Senator Clinton or President Clinton back down. I don't care how hard you hit them, they bounce back.
MR. CAVUTO: Do you think after Tuesday this week that it's looking less likely for her?
MR. GINGRICH: I think the results in Indiana hurt her substantially. The way I described it -- if the mountain used to look like this, it now looks kinda like this. But she's still climbing the mountain. I think --
MR. CAVUTO: Here's what should give you pause, Newt. I predict she's going to get the nomination. So you should run from your original prediction.
MR. GINGRICH: I have to now deeply rethink things. (Laughs.)
MR. CAVUTO: Everything, everything. On this race, real quickly, do you believe that -- now, here she advocated this gas-tax relief, and Barack Obama said it was a gimmick, saying nothing of the fact that when he was in the Illinois legislature he was pushing for such things.
MR. GINGRICH: Right.
MR. CAVUTO: Nevertheless, that was cause celebre, I'm not going to pander, she pandered. He does better on Tuesday. Message there?
MR. GINGRICH: I don't know. I mean, I think part of the message is of his base in the Chicago TV market helped him dramatically in Indiana. Everybody always thought he'd win in North Carolina. I think we'll see what happens in West Virginia next on Tuesday and then see what happens in Kentucky. And remember, the last primary is going to be Puerto Rico, so she'll win West Virginia and Kentucky and Puerto Rico by pretty big margins. I mean, she won't feel like a loser. She will feel like she has a substantial amount of momentum by the end of the primaries.
MR. CAVUTO: All right. "Days of Infamy" is the book. How many books have you -- you're like Stephen King.
MR. GINGRICH: Sixteen.
MR. CAVUTO: Get out of here!
MR. GINGRICH: Oh, plug away.
MR. CAVUTO: You are a machine. All right, Newt, thank you very much.