Are Dems using class warfare rhetoric?

This is a rush transcript from "Your World," April 24, 2014. This copy may not be in its final form and may be updated.

STUART VARNEY, GUEST HOST: Nancy Pelosi not agreeing with the House GOP budget. No shock there.

But take a look at these tweets. Quote, "Under the GOP budget, millionaires get a $200,000 tax cut, and communities of color are stuck with the bill."

Next one, "Over 50 percent of food stamp recipients are people of color. The GOP budget takes food out of their mouths."

To former presidential candidate Herman Cain.

Two tweets, two mentions of people of color. What does that imply to you, Herman?

HERMAN CAIN, CEO, THE NEW VOICE: It implies to me that, as expected, Stuart, the Democrats are desperate.

They can't talk about the recovery, and many of the Democratic strategists have already admitted that in writing. Secondly, they can't talk about ObamaCare because it is a disaster. And, thirdly, they can't talk about budget or the national debt because, as my brother from another mother Dean Cain explained, they are way off on the budget.

Their desperation is to play the class warfare card and the race card. That's all Nancy Pelosi and the Democrats have to talk about.

VARNEY: Is that, do you think, a winning political strategy for the forthcoming midterm elections?

CAIN: Absolutely not.

When they try to demagogue the people who might get a $200,000 tax reduction, she fails to tell the people that those people take that $200,000 and grow their business or they invest it, which creates jobs. They can't say create jobs because they don't know how.

And I don't believe it's going to be a winning strategy in terms of trying to play the race card, because what I have experienced, Stuart, on my radio show and as I travel and I talk to thousands of college students, they are not stupid. So they are not buying the class warfare rhetoric.

VARNEY: All right, so what should be the GOP's response to that kind of tweet from Ms. Pelosi and that kind of political strategy? What do you think the GOP and its candidates should be saying right now?

CAIN: If I were writing the GOP response, I would be saying, the American people have a choice. You have a choice between facts or fantasy.

The GOP is presenting you the facts. And they're presenting realistic solutions to problems. The Democrats are presenting you fantasy and rhetoric. And the difference is very clear. The main thing that the Republicans have to do is to make sure that they get the facts and the truth to as many people as they can and as many outlets as they can. That's all they have to do.

Tell the truth. Give the facts, and I believe that would be a winning strategy.

VARNEY: Why hasn't America been listening to that kind of message over the past five or six years?

CAIN: Well, Stuart, the answer is, the mainstream media -- and I'm going to call names -- ABC, CBS, NBC, CNN, MSNBC, they have not been telling the American people the truth or the whole story.

They have been only sharing with the American people part of the story. And it turns out that the mainstream media, defined that way, they influence 25 million people a night on the nightly news. So, for some people, because they're busy with their lives, that is their only source of information. And it is truly slanted.

All you have to do is ask -- ask Brent Bozell or anybody who follows this on a normal basis. So, unfortunately, about 50 percent of the American people, they don't know the truth, they don't know the facts.

So the challenge for the Republicans and the challenge for conservatives is to do a better job of getting the facts and the truth out, and that becomes our winning strategy in November 2014.

VARNEY: At this moment, ObamaCare is perhaps the Democrats' biggest problem.

CAIN: Yes.

VARNEY: But the election is six months away. Do you think the ObamaCare problem has legs six months from now, in electoral terms?

CAIN: Absolutely, and here is why, because, just like taxes, ObamaCare problems hit every individual family.

They are talking about it at the kitchen table. See, the Democrats have been allowed to get away with issues that didn't hit the kitchen table or didn't hit each individual family. But the problems with ObamaCare, more people have lost their insurance coverage than they have signed up on the ObamaCare exchanges.

The people who have been hit by losing their insurance, or their premiums going up, or their deductibles going up, they're not going to forget that come November 2014.

VARNEY: Herman Cain, thanks very much for being with us. I'm sure we will see you again soon. Thank you, sir.

CAIN: Stuart, I'm counting on it.


VARNEY: Be careful.


VARNEY: Thanks.

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