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This is a rush transcript from "The Story," November 1, 2019. This copy may not be in its final form and may be updated.

MARTHA MACCALLUM, ANCHOR: Thank you very much, Bret. Good to see you. And we'll welcome you back and see you on Sunday on the panel with Chris Wallace. As well, as we look ahead one year to the presidential election.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT: We have to find out why did the whistleblower give a false account? We have to find out what happened with Adam Schiff and the whistleblower?

(END VIDEO CLIP)

MACCALLUM: So, that was a short time ago. President Trump weighing in on this growing battle over the whistleblower. Does this person and his or her motivations at this point really matter?

Democrats say no. That they don't need him anymore. His work is done, the phone call speaks for itself.

But Nancy Pelosi went on late night last night and said that without the whistleblower this whole thing never would have happened.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI, D-CALIF., HOUSE SPEAKER: It was a whistleblower we would never have known about this absent the whistleblower coming forward. And then, they put some of the notes forward, of what was -- what some of what was on the call.

(END VIDEO CLIP)

MACCALLUM: So, on the other side of the equation, the president's supporters say that is exactly why they want to know more about this person's motivations, background, and political aims.

If the whistleblower is who it's believed to be largely that person was an Obama holdover worked in the White House, and apparently, had been seething over policy there that he did not agree with for quite some time.

(BEGIN VIDEO CLIP)

REP. LOUIE GOHMERT, R-TX: It could make sense if you're a co-conspirator and trying to bring down a duly elected president, that you might want that whistleblower status.

(END VIDEO CLIP)

MACCALLUM: So, tonight, on “The Story,” Byron York and Victor Davis Hanson on the effort that is now underway to remove the president from office. Also, joining me tonight, Joel Stein, author of the new book, In Defense of Elitism. He will talk about his eye-opening adventures in real America and what he learned.

Also, it is ladies' night for a Friday. Of course, we'll look forward to them. But first tonight, Washington Examiner chief political correspondent and Fox News contributor Byron York. Byron, good to have you here tonight.

BYRON YORK, CONTRIBUTOR: Hi, Martha. Thanks for having me.

MACCALLUM: Hello there. So, I just want to play another little part of Nancy Pelosi's late-night interview last night, which was also very dramatic. Watch this.

(BEGIN VIDEO CLIP)

PELOSI: If you want to go into the arena, you'll have to be prepared to take a punch. She also had to be prepared to throw a punch for the children, for the children.

(END VIDEO CLIP)

MACCALLUM: Throw a punch for the children, Byron. What do you think about that?

YORK: Just doing it all for the children. She explained that the Democratic effort to impeach the president has been prayerful and is sad and that it has nothing to do with politics or partisanship -- nothing to do. Now, what's interesting is even as she said that we had the results of a new Washington Post poll that asked among other things, do you believe that Democrats are mainly concerned with upholding the Constitution in this or mainly concerned with hurting President Trump politically? And a majority, 51 percent said Democrats are mainly concerned with hurting the president.

By the way, they also believe that Republicans are mainly concerned with helping the president. So, they see this thing in a much more political sense.

MACCALLUM: Yes.

YORK: Than Nancy Pelosi says.

MACCALLUM: Yes, you know, I mean, I remember a time when people fought in this country that things were based on -- sometimes on things other than politics. That there were moments that sort of required the stepping aside for both parties. And in those moments, we saw a bipartisan decision to impeach president. And what we saw yesterday was that this is very much up and down party lines, Byron.

YORK: It was absolutely on party lines and there's another interesting thing in this poll. The big number, do you support impeachment removal or do you oppose it, was 49 percent support, 47 percent oppose. That is almost exactly -- and I'm talking about within of a few tenths of a percentage point, the margin of the 2016 election between Hillary Clinton and Donald Trump.

MACCALLUM: Yes.

YORK: Hillary Clinton having won the popular vote in that race. The sides seem to be really hardening here. We get the impression from Democrats on the Hill that they don't believe there's a lot more to learn from their witness interviews. And so now, they want to sort of craft some hearings that will be able to tell the story in a way that Americans will understand on television.

Remember that's exactly what they said after the release of the Mueller report. So, it appears that both sides have just hardened into position right now.

MACCALLUM: Yes. And it's definitely going to command the narrative as we head into the Iowa caucuses and all of that which is completely unprecedented to go through this process for the first term president heading into an election year.

But I want to ask you about this issue with the whistleblower, because it seems like there again you've got both sides kind of very you know firm in their corners. Democrats now say it doesn't really matter anymore, we've got the transcript. Republicans say this person is they believe bias and tainted and has motivations that are not pure.

YORK: Well, the keyword you just said as Democrats now say for a while there -- they were saying they wanted to call the whistleblower. In fact, they were making arrangements to have the whistleblower be able to testify anonymously.

(CROSSTALK)

MACCALLUM: Yes, that's right.

YORK: And maybe behind a screen or he'd have his voice you know altered or something like that so we could remain silent. Look, Republicans do believe that they need to talk to the whistleblower, and there are few reasons.

They -- one, they just believe the public has a right to know who helped start this whole big thing and how it got started the other thing is the whistleblower in his complaint really set the narrative that we've all been operating within for the last several weeks.

Basically, setting up this accusation that President Trump was seeking political help in his domestic political race from a foreign source and a quid pro quo set that up. Last reason they think is this is not a deep throat situation like the famous Watergate source. It's not that is if the whistleblower had an agreement with the press, whereby, he would remain anonymous. The press is not committed to that.

And also, if you look at the law involved which is called the Intelligence Community Whistleblower Protection Act. It only says the only person who can't reveal the name is the intelligence community inspector general. And even he can do it if he feels that it would be impractical to conceal the name in the course of events.

MACCALLUM: Yes. All right, you know, on this -- on the front of -- you know, sort of the developments in this story, a POLITICO report today that Lieutenant-Colonel Vindman, who we heard some of the testimony from that -- you know, sort of slipped out.

He apparently said that the lawyers told him not to discuss the call that they were upset that he was upset about it. And that, that was what prompted the move of putting that phone call and its contents into that more secure server. Your thoughts on that report.

YORKER: Well, certainly Democrats are trying to get the White House lawyers involved with that decision and ask them why it was put into this separate server now. It could have been put into the separate server to hide it from other people or maybe to protect it. What we do know is that when it became a public controversy, the president released this rough transcript of that, which is really unprecedented.

Usually, these head of state phone calls are confidential and they're not just released as transcripts. So, when it became a big deal, the president just released it. He wasn't under subpoena to release it, he wasn't facing a court order to release it, he just made it public.

MACCALLUM: Byron, thank you very much. Byron York, great reporting -- Washington Examiner.

(CROSSTALK)

YORKER: Thank you, Martha.

MACCALLUM: Always good to see you. Thanks, Byron.

YORKER: Thanks.

MACCALLUM: Also here joining me this evening is Victor Davis Hanson, senior fellow at the Hoover Institution. Victor, great to have you back as well. Thank you for being here this evening.

One of the things that Nancy Pelosi says pretty much every time she speaks about this issue is she quotes Benjamin Franklin as he came out of Constitution Hall. And she talks about the beginnings of our country -- of the constitution of our country, and that the people requested, you know, what kind of government do we have? Is it -- is it a monarchy or is it a republic? And he says it's a republic if we can keep it.

And I would like to ask you, you know, sort of both sides I think have different perspectives about what we're watching unfold here. And whether or not the republic and the democracy and the electoral process and all of that is, is at stake here in different ways for different sides of this whole big issue.

VICTOR DAVIS HANSON, SENIOR FELLOW, HOOVER INSTITUTION: Yes, I think what we have to do is look at past protocol and traditions. So, we've had in my lifetime two impeachment proceedings. One that did not impeach Richard Nixon, but would have had he not resigned. And one that did impeach Bill Clinton.

MACCALLUM: Yes.

HANSON: They were very different, Martha because in both cases, those were second term presidents and the argument was being made in each case that we have no alternative because the people can't weigh in again. But in the case of Donald Trump, in a -- in just about a year, the people can weigh in. They can get him out of office if they feel he's guilty of high crimes and misdemeanors.

The second disconnect is that in both those cases, we have a special counsel's report. Leon Jaworski wrote a damning report. Independent counsel Richard Nixon and Ken Starr wrote a damning report of Bill Clinton.

We have the Robert Mueller investigation, 22 months and $35 million worth of investment and he did not write a damning report. He essentially exonerated him on the charge of collusion with Russia, and he said there was no indictable material or evidence that he could bring him up on obstruction. It would be very hard to obstruct a crime that didn't exist.

And so -- and then, there were also as you pointed out, there were people who crossed party lines in both those cases, we're not seeing that now.

MACCALLUM: Yes.

HANSON: So, we're on new territory. And we also have the question of the quality of the application of the law, because, in each one of these accusations, it looks like it's been pretty commonplace in a lot of past administrations. So, if there is a quid pro quo of Donald Trump -- people think he did that, then, we know that Joe Biden as vice-president bragged that he sort of had a quid pro quo. He put pressure in exchange for giving aid if they would draw up an investigation. They know that Barack --

(CROSSTALK)

MACCALLUM: But the difference -- you know, the president's detractors -- I'm sorry. I'm sorry to interrupt. They would say, yes, but that wasn't for personal gain. That would be their argument that the president they say clearly requested this, you know, political advantage based on information that they could give him.

HANSON: Yes, but --

MACCALLUM: Which -- in the end, it didn't get anyway.

HANSON: Yes, well, there's two points that -- yes, I think there's two points there that just because Joe Biden has chosen in the year 2019 to run for president, doesn't give him a special exemption over his behavior when he was vice president. Because that behavior when he was vice president may have affected the 2016 election, which he may have had an interest in.

So, just because you're running for a candidate, you can't say, well, this is personal directed against me because I'm a candidate now for behavior that took place two years passed. And then, we're also dealing with a thought crime. Again, it's analogous to the Mueller.

Donald Trump may or may not have delayed Ukrainian aid, but he didn't cancel it. So, we're basically saying he thought about doing something that was wrong but he didn't do it.

MACCALLUM: Yes.

HANSON: In fact, he gave aid that was used to purchase weapons for Ukrainians in a way that Barack Obama did suspend approved aid that would have gone to weapons.

(CROSSTALK)

MACCALLUM: Yes, that's absolutely true.

HANSON: And no one said a word. And when you talk about quid pro quo, Barack Obama essentially said in the hot mic and to quote Nancy Pelosi, we did -- we would have never found out about that if the mic had not picked it up.

He said, if Vladimir Putin will give me some space, I'll be flexible about missile defense. Vladimir Putin did give him space in the 2012 re-election bid, he was quiet. And Barack Obama canceled missile defense in Eastern Europe and that was to the detriment of places like the Ukraine.

MACCALLUM: Absolutely.

HANSON: So, we need -- I think the American people are going to say, what is the standard that we apply to presidents and personal calls, quid pro quo accusations exception, when we haven't seen it established?

MACCALLUM: Yes.

HANSON: And we haven't seen anything in this iteration of impeachment that's consistent with either the Nixon or Clinton proceedings.

MACCALLUM: Always interesting. Victor Davis Hanson, thank you very much. Good to see you tonight, sir.

HANSON: Thank you.

MACCALLUM: So, coming up next, the countdown is on in Iowa. More than a dozen Democratic candidates are in that state tonight to pitch their plan to the heartland. Including Joe Biden, who is hoping that history does not repeat itself for him there?

But do any of these contenders have what it will take to beat the incumbent president?

(BEGIN VIDEO CLIP)

MIKA BRZEZINSKI, MSNBC HOST, "MORNING JOE": Now, when I talk to people who are high up in the Democratic Party, this conversation is real. There is a void. There is a problem about who can beat Trump.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

MACCALLUM: Beto O'Rourke noticeably absent from Iowa tonight where more than a dozen Democratic candidates are campaigning announcing tonight that he is out of the 2020 race. Meanwhile, with 93 days to go until the Iowa caucus, Joe Biden hoping that he will have the third time there in Iowa be a charm.

Right now, he sits in the fourth place in a new poll in the Hawkeye State. If history has any lessons, Biden may have a tough road there in his first White House but in 1988. He dropped out nearly four months before the Iowa caucus and a disappointing fifth-place finish in 2008 with less than one percent of the vote forced him to drop out that very night.

So Matt Finn is in Des Moines where all the action is tonight there. Hi, Matt.

MATT FINN, CORRESPONDENT: Hi, Martha. Well, tonight's Liberty and Justice celebration is considered one of the most important political events up into this point of the presidential election cycle. This rowdy fundraiser is credited to be supercharging the campaigns of such candidates such as President Barack Obama.

So tonight, all the Democratic Front runners are going to be here given ten minutes to speak on stage with no notecard. And with just 93 days until the Iowa caucus, it's events like tonight that candidates are looking to make their breakout moment. That includes Vice President Joe Biden, who remains the party's front runner but as of late is perhaps showing signs of weakness here in Iowa, the nation's first caucus.

Biden just unveiled a new $4 million ad by here in Iowa, the Scranton values campaign. It highlights Biden's blue-collar family values he claimed or instilled in him growing up in Scranton, Pennsylvania. The new ads are a clear attempt to appeal to the working class, especially here in crucial Iowa.

Of course, a big story tonight. Beto O'Rourke dropping out of the race. In a tweet a short while ago from his account, "Our campaign has always been about see clearly, speaking honestly, and acting decisively. And in that spirit, I am announcing that my service to the country will not be as a candidate or as the nominee."

Also worth keeping an eye on tonight, Elizabeth Warren. Biden and Warren attack each other throughout the day over Warren's do $52 trillion Medicare for all plans she revealed. In a statement, Biden's campaign said Warren's plan "hinges on a giant middle-class tax height and the elimination of all private health insurance." Warren swung back saying the majority of her Medicare plan was approved by Obama's experts.

Tulsi Gabbard did not qualify for tonight's event because she did not have the required two campaign offices here in Iowa. And Kamala Harris' campaign has indicated that they are now putting all of their efforts into the state of Iowa even closing offices in New Hampshire. Martha?

MACCALLUM: Matt, thank you very much. Joining me now on Iowa and on America and what's going on out there is Joel Stein, author of the new book In Defense of Elitism: Why I'm Better than You and You're Better than Someone Who Didn't Buy This Book. It's got a lot of humor and it starting right with the book flap, way to open it up. So Joel, thanks very much for being here. Good to have you here tonight.

JOEL STEIN, AUTHOR, IN DEFENSE OF ELITISM: Thank you for having me.

MACCALLUM: So, you know, listening to Matt Finn's report, obviously, all these Democrat candidates are trying to connect with people in Iowa, trying to, you know, sort of bridge that gap and get them interested in their candidacy. You write in your book about how you say you went to the Trumpiest town in America, and that you learn something. In fact, you say that experience changed you as an elitist in which you are self-described. How do you mean -- how did that happen?

STEIN: Yes, let me first define what I mean by elite. I'm talking about the intellectual elite. I'm really talking about experts. People who believe ideas, people who believe in not operating from the gut. And so I live in a very, very blue part of California, a part of Los Angeles where there are no Republicans as far as the eye can see.

And so I went to the county with the highest percentage of Trump voters in the country, which is in the panhandle of Texas. And I figured I would teach them a lot and they would teach me something that I could probably stitch on a doily and put in my kitchen. But instead, the people, they were very different than I imagined and you know, all white, all Christian.

And when I talked to them about whether they felt discriminated against more than black people in our country, they all said yes. And it took me almost a full week to understand what they meant, which is that there's been a lot of change that's happened that I haven't really noticed this change. Whether it's gay marriage, or transsexual rights, or the MeToo Movement, or just the knowledge economy, like there's been massive, massive changes in this country, demographically and otherwise. And they feel like they have less power than they used to, because they do.

And it's all changing very quickly and no one is addressing that. And instead, the people who live where I am, me specifically, are being kind of smug about it as you can tell both my face and the title of my book.

MACCALLUM: Yes, I watched a couple of the interviews that you did, and I thought it was interesting. You know, you were asked, well, you know, did people out there in America, did they talk about God and faith a lot? They probably did. It's sort of the assumption.

And I think that, you know, for most of America, that feels really normal. You know, and I know that you were -- you had some interesting interactions in a Baptist Church, right?

STEIN: Yes. I went to the First Baptist Church of (INAUDIBLE) which is kind of it's a very small town. There's like 500 people there. And so I thought calling it the First Baptist Church was a little cocky. But I went there and I did Bible study, and I went to church, and I went to this amazing dinner with these friends I made after church there. And I realized they had this sort of amazing community where they all hang out all the time.

And to my shock, there's this mimeograph copy that they give all the people in church. And on the back page is people to pray for. Number one is the president, number two is the troops, and then it's a rotating group of people who are sick or having troubles. And what I found out is for the last two years, I'm on that list every day. The people in this town pray for me every week that I will -- I will -- because I'm Jewish. They helped me able to find the Lord. And it just kind of like melts my heart every week.

MACCALLUM: Yes, they're praying for you.

STEIN: So I did wind up learning a lot from them. Yes, they're praying for me.

MACCALLUM: What was your sense of whether or not you know -- because obviously, that's an area that supported the president? What was your sense of whether or not they still do, you know, and how that may have evolved over the course of the first couple of years of his presidency?

STEIN: They wish he'd stopped tweeting. And I don't think they're eager to have him at their house for the most part. And they don't -- they don't love the way he talks and they don't love how much complex he causes. But I think they do worry that the country is changing in a way that they don't like too quickly. And the way they spoke about it was if you had a cockroach infestation, and the exterminator came over and was crude, and he was showing his butt crack, but he got the job done, you'd put up with him.

So they see this as an existential crisis and it took me a week to kind of understand that. And part of the existential crisis is that people like me won't listen to them and won't acknowledge that. And they -- and their world is physically shrinking in their towns. And people in D.C. aren't listening.

MACCALLUM: Yes, I think their experience is probably, you know, accurate in that regard. But you listened a lot and you wrote this book In Defense of Elitism: Why I'm Better than You Are and You Are Better than Someone Who Didn't Buy This Book. Joel, come back and talk to us again. Really interesting insights into what's going on out there. Thank you very much.

STEIN: All right, I'll be here tomorrow. I will see you back.

MACCALLUM: I will see you then. A live look tonight at the Arena in Tupelo, Mississippi where any minute now President Trump essential arrive for a Friday night Keep America Great Again Rally. This is the first since the House voted to head into the next phase of impeachment. So we'll see what he has to say about that. We'll take you there live next.

(COMMERCIAL BREAK)

MACCALLUM: We're just minutes away now from President Trump taking the stage in Tupelo, Mississippi tonight. This is his first rally since the House voted to formalize its Impeachment Inquiry against him. He is also expected to give a boost to Tate Reeves, the Republican nominee for governor of that state who recently said that he wants to run Mississippi like Donald Trump runs the country.

Correspondent Mark Meredith is reporting for us tonight on the ground there in Tupelo with the story. Hi Mark.

MARK MEREDITH, CORRESPONDENT: Good evening to you, Martha. We do expect the President Trump to take the stage right here behind me some time in the next hour. We are here, as you mentioned in Tupelo, the birth place of Elvis Presley. But also, one of many spots here in Mississippi. Next week, they'll be holding a close gubernatorial race.

And Mississippi is not a state that you often think of would have these tight races for the governor's mansion. That appears to be the case going into next Tuesday. That's because we'll be watching this race very closely between the Democratic attorney general who has been serving in the state for several years now going up against the Republican lieutenant governor.

Now we expect the president will be here to give the lieutenant governor that boost he needs going into the final days before the election. The president had a lot to say, though, as he left Washington earlier today. He was previewing his trip out to Mississippi as he left the White House this afternoon.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT: I'm going right now to a great place. We're going to a wonderful, totally sold out big deal. We're going to have a wonderful governor elected in a fabulous state. You know what the state is? Mississippi.

(END VIDEO CLIP)

MEREDITH: The crowd is very eager to hear from the president in a little while from now. Vice President Mike Pence he is set to visit the state on Monday, Martha, ahead of the election. Martha?

MACCALLUM: A lot of focus in Mississippi. Mark Meredith, thank you very much, Mark. Good to see you tonight.

So, coming up next, President Trump's love hate relationship with the city of his birth, New York City and why his move to Florida is about much more than just money. Corey Lewandowski and Robert Zimmerman up next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TRUMP: -- taxes millions and millions of dollars in New York. And they've never treated me -- you know, since I became president, they just haven't treated I think the office with the kind of respect and -- I don't mind paying the taxes. New York is a very expensive place to live. But many bad things are happening in New York.

(END VIDEO CLIP)

MACCALLUM: So, it is the city that seems to love to hate President Trump. He announced that New York will no longer be his permanent residence, opting instead for Florida.

And while the state's financial incentives of zero tax, state income tax or inheritance tax are clearly a factor here, is it really any wonder that the president would want to part ways with a city that has become, let's just call it what it is, very hostile towards his presidency. Its leaders applauding, jumping all over themselves to say good riddance. Watch this.

(BEGIN VIDEO CLIP)

GOV. ANDREW CUOMO, D-N.Y.: He's leaving New York. I don't believe he was ever a New Yorker anyway. Because living in New York does not make you a New Yorker. And New Yorkers do not discriminate. And they're not anti-LGBTQ and they're not divisive. But he never represented the New York spirit. So, I say -- so I say -- so I say good riddance -- good riddance to Mr. Trump.

(END VIDEO CLIP)

MACCALLUM: Wow. Here now, Corey Lewandowski, former Trump campaign manager and author of "Let Trump Be Trump: The Inside Story of His Presidency." And Robert Zimmerman, Democratic strategist and Democratic National Committee member. Good to have both of you with us tonight.

(CROSSTALK)

ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: Good to be with you.

MACCALLUM: You know, I mean, it's -- I mean, I guess to ask anyone to be cordial about this decision would just be I guess a bit too much. Robert, you know, it's really quite stunning to me to see the relationship between the president and the city.

I understand there's a lot of investigations into the taxes and all of that. But what do you make of those responses? And you know, put up Bill de Blasio, too. This is his tweet. "Don't let the door hit you on the way out or whatever." I mean, this is like eighth grade.

ZIMMERMAN: Well, there is good news here, Martha. With Donald Trump leaving, the crime rate is going to go down.

(CROSSTALK)

MACCALLUM: How is that?

ZIMMERMAN: Let's not --

MACCALLUM: How is that? What do you mean?

ZIMMERMAN: Let's not forget, the Trump -- allegations and charges about fraud about the Trump foundation --

MACCALLUM: Allegations.

ZIMMERMAN: -- which is being closed down. And not -- and also Trump University where Donald Trump had to pay out $25 million as a settlement because he and his university defrauded so many students including veterans and elderly people who went there to learn and trusted him. So, he does not represent New York values.

MACCALLUM: All right. I got you.

ZIMMERMAN: And in fact, you've got residents throughout the city living in condos of Trump buildings now petitioning to take the Trump name off the building.

MACCALLUM: All right. So, Corey, I want to fill a whole lot --

(CROSSTALK)

ZIMMERMAN: Is that simple enough?

MACCALLUM: -- scene from when I walk outside tonight. Just knowing that, you know, President Trump is going to be safely in Florida and we can all, you know, just feel a little bit safer.

COREY LEWANDOWSKI, FORMER TRUMP CAMPAIGN MANAGER: You know, Martha, the truth is, Donald Trump isn't the only person leaving the State of New York.

MACCALLUM: That is for sure.

LEWANDOWSKI: More people are leaving the State of New York and going to Florida than any other state in the country. The taxes are out of control. Mayor de Blasio has done a terrible job of taking care of the homeless, the same problem that we see in San Francisco.

You know, Governor Cuomo has all but begged President Trump for more funding from the federal government to help the tri state area. But when it comes to Donald Trump, the man who actually signs paychecks to put people employed in the State of New York, no, Governor Cuomo hasn't done that. Mayor de Blasio hasn't done that.

Look at the people that Donald Trump has employed around the city. The people that -- the engineers, the electricians, the plumbers, the carpenters, the electricians. All the people who help build the city are there mostly in large part because Donald Trump developed a significant portion of that city and created those jobs. What does Governor de Blasio done -- or Mayor de Blasio or Governor Cuomo done to actually employ real people?

MACCALLUM: You know, I mean, you touched on something that I think is very relevant in terms of the big picture here, Robert. There is a large exodus of wealthy people from all of these -- you know, the big cities in the country to other places. In California people are moving to Texas, in New York people moving to Florida.

And it is based on the tax policy that, you know, people find very detrimental to them.

(CROSSTALK)

ZIMMERMAN: By the way, if they --

MACCALLUM: If you move to Florida, you've got, you know, there's a 13 percent state and city income tax combined in New York City. Sixteen percent inheritance tax. I mean, these policies are driving a lot of wealthy New Yorkers out of the city.

ZIMMERMAN: But Martha, let's be clear. One of the reasons New York State is losing residents as are other blue states in our country --

MACCALLUM: Yes.

ZIMMERMAN: -- is that Donald Trump tax plan and the Donald Trump tax program took away state and local tax deductions from New Yorkers, not just for wealthy --

MACCALLUM: That is true.

ZIMMERMAN: -- but middle-class.

MACCALLUM: That is true.

ZIMMERMAN: That is producing -- let's see (Ph) this. No individual -- Corey, you talk about a man who built the city. Quite to the contrary no man has done more to dismantle the city and dismantle many important cities --

(CROSSTALK)

MACCALLUM: Do you really believe that, Robert?

ZIMMERMAN: I have to --

MACCALLUM: Yes. I mean, I know you say that. But, you know, when you look at it, you know look at Rudy Giuliani. Right?

ZIMMERMAN: I say that, Martha --

MACCALLUM: So, you know, when he was mayor. I mean, I've -- I've worked in this city for 25 years.

ZIMMERMAN: Right.

MACCALLUM: I've seen the differences growing up in this area. It was a disaster under some of the Democratic --

ZIMMERMAN: No question.

MACCALLUM: -- leadership just to be perfectly honest. I mean, just looking at the changes over time. When Giuliani was in charge, it was a better-run city I think by most people's estimations.

(CROSSTALK)

ZIMMERMAN: And when Mike Bloomberg took over.

MACCALLUM: If everybody just being honest. Mike Bloomberg did an excellent job as well.

ZIMMERMAN: Good job. That's right.

MACCALLUM: Good governance, good financial leadership of the city.

ZIMMERMAN: But, Martha --

MACCALLUM: It's a mess now. And you've got a lot of people who are making the same decision the president is making based on the fact that it isn't run well by the leadership who happens to be in charge right now.

ZIMMERMAN: Martha, one of the reasons our cities are having trouble and one of the reasons New York City and other -- first of all, let's be clear. Our economy in this city is booming. It is still the safest big city in America, and in fact, tourism is at --

(CROSSTALK)

LEWANDOWSKI: Thank you, Donald Trump.

ZIMMERMAN: -- tourism is at a record high level. But let's understand --

(CROSSTALK)

LEWANDOWSKI: Thank you, Donald Trump.

ZIMMERMAN: Donald Trump's economic policies have been designed to antagonize and undermine and hurt cities like this. The divisiveness that he's created --

(CROSSTALK)

MACCALLUM: All right. you said that.

ZIMMERMAN: -- the programs he has cut --

MACCALLUM: You know, I want to --

ZIMMERMAN: Let me finish my point, please, Martha.

MACCALLUM: I thought you made the point, the same point again. So, go ahead. Is there something to add?

ZIMMERMAN: OK. My point -- my point simply is Donald Trump has had the most anti-urban policy of any modern American president. We're living with that.

(CROSSTALK)

MACCALLUM: You said that. OK. I'll let you say that, for sure.

LEWANDOWSKI: Martha?

MACCALLUM: You know, but, Corey, I want to --

(CROSSTALK)

LEWANDOWSKI: Martha, the true --

MACCALLUM: I want to ask you a question, Corey, about the personal side of this, you know. Because Donald Trump was, you know, created in New York City. He built his business in New York City. There was a time when everybody thought that when he went to the White House, he was not actually going to work there.

I mean, I remember asking Kellyanne Conway, is he really going to leave New York City and live in Washington, D.C.? There was all this talk about how Melania Trump was not actually going to move to Washington, D.C. It seems like the divisiveness in this presidency has made it so that, you know, you kind of, can't go home again in the position that he's in right now.

LEWANDOWSKI: Well, I think the president is very public. He's going back to New York this weekend; he's going to back and watch an MMA fight. Everybody knows that already. So, he's going to be back in New York City.

But look, when he's in the city, the hostility towards him is almost unbearable. This is a man whose employed thousands of people, residents of New York and given them great jobs to build construction projects that helped redevelop that city.

(CROSSTALK)

ZIMMERMAN: You know what, Corey --

MACCALLUM: I think it's --

LEWANDOWSKI: Excuse me. Excuse me. I didn't cut you off. I didn't cut you off. You just be respectful for a second.

MACCALLUM: Quickly.

LEWANDOWSKI: OK. Number two -- number two, don't forget, under this president, real wage growth in the middle class, $5,000 more, which is a 7 percent increase than the previous administration. More people are working under this administration than ever before.

MACCALLUM: All right. Understood. You're both making your economic points and I get that.

(CROSSTALK)

ZIMMERMAN: We know the talking points, Corey.

MACCALLUM: But I think that --

ZIMMERMAN: But let me make one important policy point, Martha, if I can.

MACCALLUM: Quickly.

ZIMMERMAN: The New Yorkers cannot be bought. So, no matter how many jobs - - and let's not forget, the vendors Donald Trump didn't play.

MACCALLUM: You know what --

ZIMMERMAN: His policies of hate and decisiveness do not --

(CROSSTALK)

LEWANDOWSKI: More people are working today than any other administration.

MACCALLUM: This is a tit for tat discussion. But I think -- I think -- all right, guys, guys, I think that it's reflective of the divisiveness that you see all across the country where you've got sort of Democratic towns and Republican towns in suburbs all across the country.

And I think that's really sad. And I think that's a part of what is behind this. And I just think that's something that people need to reflect on. We got to be able to live in towns together.

ZIMMERMAN: We sure do.

MACCALLUM: Thank you, guys. Good to see you both tonight.

ZIMMERMAN: Good point.

(CROSSTALK)

MACCALLUM: Coming up next, President Trump's economy booms on a Friday night.

(BEGIN VIDEO CLIP)

TRUMP: We just hit another record. And it's a big record. The market is up I guess over 300 points today. The economy is doing well.

(END VIDEO CLIP)

MACCALLUM: A lot of good stuff in our panel tonight with the ladies. And we're going to start there when they come up next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TRUMP: We have a new record. The stock market we just hit another record today. That's about 119 days out of the administration. That means not only 401Ks and everybody making a lot of money but it means a lot of jobs.

And I know that doesn't mean much to you people but it used to be important. If you remember, it's all about the economy, stupid. But you don't think about that too much. But I do.

(END VIDEO CLIP)

MACCALLUM: What a week, right? You can just hear it in the president's voice as he heads off on this Friday evening. He may be facing an uphill impeachment battle, perhaps in Congress, but the economy, as he says continues to do very well ahead of the presidential election that is now just one year from Sunday.

The Labor Department reporting 128,000 jobs were added in October, that's a big number. Bigger than expectations. That put the unemployment rate at a near 50-year low. That also contributing to the stock market rally that you saw today, up about 300 points for the Dow.

Joining me now for our ladies night, Liz Peek, Jessica Tarlov and Jackie DeAngelis. Welcome to all of you. Great to have you here.

JACKIE DEANGELIS, FOX BUSINESS CORRESPONDENT: Hi, Martha.

MACCALLUM: Obviously, Jackie, let me start with you. First time joining us for this panel. Thanks for being here. You know, the president sounded a little deflate -- deflated for him going out today. But he's trying to get people interested in the economy and the substance of, you know, what's going on in the country.

DEANGELIS: Absolutely. And it was a big jobs number. The expectation was for 89,000. Blew it away. And even the way they were looking at it, him and Larry Kudlow, you could add certain things back in, you could readjust the numbers and it would have even potentially been higher.

I was talking to some folks about that to some folks about that today.

But the bottom line is, you look at the stock market right now with the Dow over 27,000, the S&P over 3,000. And we are hitting new records every day. You had a Fed that just cut interest rates. This economy is booming. And that's basically the platform he's running on. He wants people to care about it. People I talk to care about it. They open up their 401K app and they say I feel really good about this.

MACCALLUM: Especially when you look at the Democrat candidates and what they are running on, Jessica, does it concern you in terms of that part of this -- you know, how this measures up when people look at the Democratic candidate whoever turns out to be?

JESSICA TARLOV, CONTRIBUTOR: Well, I think it comes down to what is going to be the number one issue at the election. In 2016, it was immigration. In 2018, when the Democrats took back the House it was healthcare.

LIZ PEEK, CONTRIBUTOR: Yes.

TARLOV: And they're focusing on healthcare first and foremost. You saw Elizabeth Warren today roll out her how I'm going to pay for Medicare for all plan.

MACCALLUM: But thanks to what happened this week, we all know what this is going to be about. It's about impeachment. Every single day that is all you're going to hear.

TARLOV: We hope that there will be a little healthcare sprinkled in there as well.

MACCALLUM: Really? I mean, I can't imagine. This is going to suck up all the oxygen in the room, Liz, isn't it?

PEEK: I don't think it will be. Because we've got -- we'll do the impeachment process in the House and then you'll have a trial in the Senate and then it will be over. And then we're going to have a serious campaign. At this point --

(CROSSTALK)

MACCALLUM: So, this is going to be the one thing that the United States government does efficiently --

PEEK: Well.

MACCALLUM: -- and it's all going to happen on time and on schedule?

PEEK: No, I don't think will. And by the way, all those senators running for president, all those Democrats, they are going to be sitting in a trial wondering what happened to their campaigns because Joe Biden is not involved.

MACCALLUM: Yes.

PEEK: So, he is going to be out campaigning. But look, I think the economy is going to be the number one issue, always is. Yes, healthcare was briefly in 2018 because the Republicans made such a total mess of it that the Democrats had a real open lane.

MACCALLUM: Yes.

PEEK: I think the Democrats are going to make a mess of it in 2020 by insisting on Medicare for all. And this thing Elizabeth Warren came out with today it's total fiction. So, I think we're going to get back to jobs, people feeling better. Wages up, et cetera.

What's fascinating to me is over the last six months, expectations have been so gloomy that one of the reasons the markets are up today is that the third quarter number was better, the jobs number was better, earnings in the third quarter were better.

DEANGELIS: Yes.

PEEK: Because all the expectations had been set so low by all the people looking for recession. Have you found the recession yet? I haven't.

MACCALLUM: No. People keeps telling me, it's coming.

(CROSSTALK)

PEEK: Exactly.

MACCALLUM: And I think every time these numbers come out, I think, you know, well, it looks like that number is headed in the right direction.

DEANGELIS: Exactly.

TARLOV: I think that there are -- it's important to not fall into the trap obviously as a Democrat of poo-pooing the economy every time. You don't want to walk into a room constantly and be the Debbie Downer. Right?

But there are things that you can talk about. Sherrod Brown, the senator from Ohio I think is king of this, of being able to talk about the gains that we've seen. But that we wish wages were a bit more. There was a report released today that showed that 40 percent of income for farmers next year is going to be off, quote, "socialism," right? The bail-out. That came because of President Trump's --

(CROSSTALK)

PEEK: Not necessarily, though, Jessica.

TARLOV: Well, that's what the report said today.

PEEK: If you get the $40 to $50 billion to $50 billion --

(CROSSTALK)

TARLOV: If you do. I mean, there is --

PEEK: -- in increase purchases --

(CROSSTALK)

TARLOV: -- no doubt that there has been damage done to the American economy to be able the manufacturing and farming --

(CROSSTALK)

MACCALLUM: So, don't you think impeachment is a stronger argument for Democrats then the economy? I mean, it feels like that's the way they're playing their hand right now.

TARLOV: Healthcare. Healthcare, please.

DEANGELIS: Healthcare --

TARLOV: Healthcare is an economic issue as well.

(CROSSTALK)

DEANGELIS: It's the way that they're playing it. But I think when people go into the voting booth, they are going to think about, am I employed? Is my 401K going up? Is my family living a better life?

MACCALLUM: They're thinking about themselves how things are going.

DEANGELIS: If he's not removed from office, they're going to say, all right, give him --

(CROSSTALK)

MACCALLUM: All right. Let's talk about Carly Simon for a moment. Because we just like to make into segues, this is segue Friday. Carly Simon has a book out now about her relationship with, her friendship with Jackie Kennedy.

And she's talking about the Me Too movement and she's saying something that gets, you know, backlash these days. She is basically saying, she says, "Not that I want everybody to shut up about it or to tell -- not to tell it like it is but it also feels a bit unnatural for me that men can't say flattering thing to a woman without there being a possible reckoning. But I think at this point it's just dangerous for men to act like men, not that the men who go overboard and disrespect the woman are acting like man. You know what I mean." She says to the publication.

And here's an example. This is Jimmy Garoppolo, quarterback of the 49ers talking and doing a quick interview with Erin Andrews on the sideline. And this got a lot of attention because of what he says. Watch.

(BEGIN VIDEO CLIP)

ERIN ANDREWS, SPORTSCASTER: Eight-O. How does that feel?

JIMMY GAROPPOLO, QUARTERBACK, SAN FRANCISCO 49ERS: Feels great, baby.

ANDREWS: Happy Halloween. Back at you. Thanks so much.

GAROPPOLO: No problem.

(END VIDEO CLIP)

MACCALLUM: Did you watch it? I wish he played the whole thing. You need the whole because he keeps looking back at her and he keeps looking back at her as he's walking away. What do you think about what Carly Simon had to say in moments like that?

PEEK: I totally agree with her. I think we kind of neutered American men. And look, how are you going to flirt, how are you going to attract a woman if you're scared to death that you say hey, baby and you're going to get called out for that?

I mean, I think, look, this started in a good place. The Me Too movement had serious origins.

MACCALLUM: Yes.

PEEK: And I think it's just gone too far --

MACCALLUM: Absolutely.

PEEK: -- to the point where men can't be men anymore and women are so -- you know, by the way, it's really hurting a lot of professional women.

MACCALLUM: It is.

PEEK: Because their male colleagues basically exclude them --

MACCALLUM: Yes.

PEEK: -- from afterhours gathering.

(CROSSTALK)

MACCALLUM: This is the way we tend to handle things. We go, you know, way too far.

PEEK: Totally. Always.

MACCALLUM: I mean, let the pendulum swings so hard the other way.

TARLOV: I think that's a really extreme position. I mean, the data bears out that women don't invent these claims. Right? And there's a big danger of conflating a conversation, what Carly Simon is talking about with the very real claims of abuse and sexual assault.

We saw it last week, the very brave comic who confronted Harvey Weinstein to his face. Right?

(CROSSTALK)

MACCALLUM: But is it OK -- but, you know, the point here is just like the light stuff, the flirtatious stuff. Is it OK that Jimmy Garoppolo said baby?

TARLOV: I personally wasn't offended by it. I think it's fine. It's a --

(CROSSTALK)

MACCALLUM: Show me the woman who is offended if Jimmy Garoppolo turns up hey, baby. We'll have you on the show to talk about it and you can talk openly how about why you find that offensive. But anyway, we got to leave it there, ladies. Thanks very much.

PEEK: Thank you.

MACCALLUM: Have a great weekend. The Story continues coming up next.

(COMMERCIAL BREAK)

MACCALLUM: That is The Story of this Friday, November 1st, 2019. But as always, The Story continues. I will see you on Sunday. Brett Baier and I will join Chris Wallace on Fox News Sunday as we look ahead one year away to the presidential elections, folks. Then we'll see you back here on Monday night.

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