tv Bulls and Bears FOX Business March 23, 2014 1:00am-1:31am EDT
america great, not all this stuff. that is our show, enjoy spring. see you next week. "fox & friends." >> join us for the after the show show. breaking records by breaking you, uncle sam rakeing in a record amount of your cash, tax revenues toping $1.1 trillion over the past five months. don't forget that other record in d.c. our debt, now passing $17.5 trillion. so as washington keeps spending. is this prove the problem isn't the amount of money coming if, it's all that money going out. hi, everyone, i'm brenda butner, this is "bull itself & bears." here they have. welcome to everybody. john, do we have a taxing
problem or a spending problem? >> wove got a spending problem. we address the revenue side. they say if we go to clinton era race, everything would be hunky dory, we'd have for the problem with deficits. we went back, here's what happened. we have record revenue in the first five months of fiscal year 2014. but we've spent $1.5 trillion. short of that deficit. that means at the end of the year, if you exstrap late that, we're at a $900 billion deficit despite record revenue coming in. we have tripled our deficit since the year 2000. $money 2r68. we more than tripled. we are a completely run away train. you give these guys $11 billion. they will spend 15 trillion. this is not a revenue problem, it's a spending problem with the worst congress in the history of the globe right now in d.c.
>> ouch. okay. gary b, some people arc you we can spend as much as we want because we can print as much money as we want. it comes down to, we have to pay the debt the interest on that debt. >> union pointed out the size of the debt, it's the highest since world war ii. it's doubled since 2007. you are right. we got a debt that's 100% of the gdp. that itself the not the biggest problem. the interest payments are increasing. we spend 2.5% of gdp on interest payments. if interest rates incress, that could take off. that could be 5, 6, 10%. that's a waste of money. think of when have you your master card bill and you don't pay it each month, you pay some of it and you see the interest payment itself on the bottom that you pay out. it probably galls everyone that has to do that. because that's money that could be going elsewhere. think of how much money that is. >> that is almost half a billion
we spend each year just on interest payments. boy, that can go a long way to solving a lot of problems we have. it's just wasteful. >> chuck, is it a spending problem or are we having a tax problem, a revenue problem? >> i think still it's the combination of both. i think the problem overall is people don't understand billions and trillions. i do politics for a living. i give people electives for a living. i think the biggest thing, if you are where i am right now rnlth ask them what a trillion dollars is, they will wonder if that's how much they should be putting on their basketball right now. congress thinks they can do whatever they want, spend all the money kay they can, there is no accountability. people can't relate with those kind of numbers, in polling we do every single day, debt is not on the top of transitional voters who make the difference in these elections. i'm not saying it's right or wrong, people have to be focused on this for the long term because our children will be paying for these debts. >> tracy, it comes down to it
takes politicacourage basically to take on the major part of the spending, which is medicare and social security. we don't see many politicians willing to do that. >> that's why i think we need term limit itself here, let these guys take a stand like you are seeing. no one has to take a political spine like chuck just said. one-third of our revenues goes out the door. we are already like down just for ob ligtory payment, let alone the other stuff swri to do to run this country. get these guys accountable. chuck is dead oneonta one, let the people know the voters know, they're wasting our money, probably like five star lunch for all we know as opposed to trying to control our debt and bring it down. >> we are all kind of to blame, jonas, do these numbers prove we don't need more tax hikes, we need to just spend less? >> no it proves we need more tax hikes around more spending cuts. let's go back to we had a surplus last.
what happened, they cut taxes him we did a halfway reversed the tax increase only on the wealthy primarily. it's helped. we also singled out increased spending through things like if medicare affordable caring a and defense spending since 9-11 and homeland security. we have to get rid of that spending and go back to the balanced budget. you increase spending, cut tax revenue, we got to do the exact opposite and tickets it. that's the only way. >> okay. john, what do you think of that? >> i disagree, jonas, you are judging by the fact these are rational people that box in d.c. they're number if they get a dollar, they're going to spends doctor 1.40. what chuck is saying is effect c. people don't spend billions and trillions. the government certainly does it. you get $1.so, you get a $1.50. it has basically doubled under problem and doubled again under
president obama. look at what gary b. is talking about, if interest rates doubles up, if it doubles in the nrkt next twen ten years, we are talking $35 trillion. that's the trajectory we are on. you put a percent interest rate on that the real interest rate by the way, now, all of a sudden we are spending $1.2r68 per 84 on interest alone. >> i think what we are seeing, brenda, especially with tax hikes, is people are getting smarter about it. the rich are figuring out ways around them. we see it on the state level. rachlt is raising taxes, you start to see people moving out. jersey certainly tried it time and time again with the million nair's tax. people are starting to leave. they're going to work with tear feet here. they're going to figure it out on the federal level, too. trust me. there is a lot of smart people out there. they will figure out ways to shelter money. they will not pay these tax, you keep raising them. the middle class will continue to get screwed here. you will not solve the revenue
problems. >> gary b., how many of this is waste by the government? they spent $5 million on this get groove video to help us get healthy. >> you look across the board, there is fraud in medicare, there is fraud in social security. we talked a number of times in the fraud in food stamps, you add that up across the board, there is trillions of dollars in waste there that we can lop. but i think you hit on an important point. we paid it on the panel a few minutes ago. unless the congress is willing to step up and step on that third rail of social security, medicare and medicaid spending. forget it. they can cut discretionary spending as much as they want. it's not going to make a dent. unless we tackle those items there. you can't do it through tax increases because as tracy points out, the tax amount of emergency gdp safe level regardless of the tax rates at about 18% of gdp, you request raise it as much as you can. people are going to stop working.
they're going to look to hide their money. they're going to mover to switzerland or something like that. we can't fix it like that. we have to fix it by stepping into those entitlement programs and stopping or slowing the rate of growth down. >> chuck, it looks like you are a gambling man in las vegas. you think that will happen? >> absolutely. politicians have courage, absolutely not, it's not going to happen. i run campaigns for a link. do something on social security and ped care. i'm running an adjei begins you. that's not what it's about. it's about having the courage to stand on your predictions. >> that credit card we used for a war that got us a lot, didn't it? the other is for the working middle class who pay their taxes every single do i who don't have a shelter to put their stuff into. >> that social security piece is taken out, a medicare peet's is taken out. they hear of politicians or people on tv like us speaking the truth about having social security and medicare out of krochl i'm paying my money in every week, why can't i get mine
back? it's my money. >> look, you will not be able to squeeze money out. they raised it. their taxes are over 50% with state and federal and local, but middle class people, they're being taxed at lower rates, the people with children and families, than they have in what decades? they're not overtaxed. they can't go towitzerland with their income. so they can takes a tax debt. >> all right. we got to go. blot to him line, though, is you can't raise taxes by $17 trillion. you got to cut spending. okay. tanks, guys. notice your grocery bill growing? the government saying don't worry about it. inflation isn't a problem. but you're saying something else. i. >> i spend like $400 a week on groceries, a lot of produce. that's really expensive. i would say it's gone up 10 to 15%. >> milk &
bears." keep it right here on the fox fuse channel for the latest on the missing jet. >> everything is going up. it's not only food. it's everything. >> the price of living is getting expensive. >> i will have to shop a little smarter. >> i notice a difference in my bill. >> sometimes pinch fntss, $10, you never know. >> my family, they don't leak the cheap stuff. so i have to buy what they like. but you know, i'll probably buy in bulk to save money. >> well, you are sure noticing it. the numbers proffer it. why does the government deny we have an inflation problem? tracy, what do you say?
>> we have an inflation problem. call it what you want. the economic equation the old guys if d.c. work don't seem to say so. they apparently don't food shop. go buy yourself a burger for your kids, prices are up 4% over the last month. that woman was right. cereal and milk in the morning is going berserk. it is crazy how much cheerios has become. the stuff you use on a day-to-day basis, morocco, eggs, pork, vietnam, all up. i know it doesn't translate into the mathematical equation they use down in d.c., but we are all certainly feeling it in our wallet. >> gary b., is this temporary, though? is this a function of the drought, for example? >> i will go, i will argue with your premise. i'm sorry, tracy, i don't think there is inflation. i think there is food inflation, yes. food went up 1.4% overall. but the bulk of the encress was dining out, which was up 2.23rs.
i'm not saying people should dine out more or less, if i see the prices, gasoline is down about 8% year-to-year. >> we're not talking food inflation, though. >> i understand food inflation. we can make the argument the bureau of labor statistics has put together the cpi is lying somehow or they have like one guy that only goes to the public to look at the prices. but i read through the me oddology, it actually is pretty expensive. i'm not a big fan of government or government bureaucrats, but they go through. they try to do their most accurate gage of what the prices are out there. so you can say, look, they're all lying. they're all crooks out there. i will give them the benefit of the doubt and say they do a fair example. >> that food inflation month over month is 130i7b 4%. by the way, i do the grocery shopping in our family. >> i know you do. john, you are a texan. i know you are me. there is nothing better than a
steak. tracy pointed out these prices up 4% in a month? >> look, i said i won say ang. think gary b. spilling that drink on himself in the commercial break affected his thinking somehow. >>t was non-alcohol. >> no, but look, meat prices are at an all time high. corn prices have tripled, down off their high. >> that affects the average person. the africa person is feeling this inflation. a lot has to do with a corn-based ethanol program. once you add to that 0% interest rate, the average person is feeling this and feeling it actually very strongly. >> okay. chuck, what do you think about food prices? are you paying more for the buffets out there? >> i found few gamble enough, they'll give you the food for free. that's a. b, i have my own kind of thought on the process and that is, you know, growing up in rural east texas like john, we ate a lot of
biscuits and gravy, you made it out of grease and flour, it was cheap to do. these days within i go to the fancy supermarket in washington, d.c., everything has to the to be whole grain, organic and these bells and whistles. it gets really expensive. i think a lot of this stuff is moving up because of the drought. also, you have a whole new plane of food that you should be eating that is very expensive. >> jonas, inflation or no? >> it's painful, the orange prices are going up, there is nothing like food inflation, it's all inflation or nothing. you can't target one part, because that price is going up. that's supply and demand and balances. people are getting richer, some people want to eat more beef, that's not inflation, that's supply and demand. we have asset inflation, the government is created to boost up security prices. they have not done it to the orange market. >> bottom line, tracy, you boy food every single day, you don't buy a tv every day, right?
>> it's expensive, calm it what you want, you don't want to call it inflation, call it expensive. jonas pointed out, your paycheck is not going to compensate it. >> from price hikes to wage hikes, unions organizing another round of protests to demand a massive hike in the minimum wage. if they get their way, will all workers pay? neil and the gang is on it. up here first. the generation of me saying no to being parents in the name of their careers. so are
call it the baby bust, in the name of a career boom. more millennials opting for careers over kids. a survey of warton college grads only 42% plan to have or adapt children, that's way down from 1992. gary b., smart financial move or flat out selfish? >> i don't think it's selfish at all. look as a father of two kids, i know that being a parent is incredibly difficult and it's very, very expensive. if you don't think as a potential parent you are up for the task, i think the responsible thing to do is not have children. because if you do and you can't handle those burdens, you will really screw him up. so pass, good, good for you. >> okay. chuck. what do you think? >> i think that the next bubble we will see is this debt from college affordability. i think this weighs in a lot on what they're doing.
allison, my long-term girlfriend, we talk about this a lot. getting a master's degree, doing all the things your parents tell you the right thing to do, coming out of that $150,000 of debt, makes you look at when and if i can provide for children. . >> you can make a list, put dollar signs on all the pros and cons. in the end, how do you value this? >> that warm certificate is not going to give you a warm squishy hug when you are 80-years-old and you need someone to change your bed pan. it is useless for you, at the end of the day, it is about the people around you. >> that is why we have children, we have a gift. the fact that people are not chooseing it. it's not selfish. it's stupid. >> ramone, you spoil it more than my kids. >> part of the problem is every week it seems the economy is creating new millennial billionaire. let me tell you, you can't
create a company sitting on an air mattress. you have to get a job job in a cubical. this is taking a career risk. the job market is lousy. they have double digit unemployment at that age. there is a huge incentive with the student loans and the career path to defer traditional -- let me tell you, the government supports, gives you to have lower children. they're fluc their nose at that. >> the only way people should be leaning in is into a crib. that's where they should be leaning in. >> john, let's hear from you. >> i'm going to hug jonas' dog. >> that will solve the whole problem right there. the one thing we are missing in america, same problem as they're having in china is we are seeing a declining population. you need 2 poiven 1 bursts per women for a sustainable population. we are at 1.88. we are at a problem in the future, politically, we feed something to happen in
washington, d.c. to get an immigration policy, because we do have a declining birth here if america. >> okay. thanks, guys. >> that will be the last word and thanks to chuck for joining us. we appreciate it. talk about an early retiemplt. how the e-trade baby calling it quits should have you retiring early, too. [ music playing ] it's an option ♪ you know what, i'm sick.
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. >> predictions, gary b., you are up. >> brenda, facebook recognition they tell you is as good as human. maybe this human right here. i still like the stock. it's up 20% at the end of the year. >> john, do you like it? >> no one is better than you. >> jonas, your prediction. >> new york city's bike sharing program, city bike, just like the benefactor citigroup before them is in financial problems, good for the tire makers over at goodyear because tourists don't want to ride on the snow. >> gary b., bull or bear? >> it's already had its 20% run, wait for a pullback there. >> john, your prediction. >> the signing of jackson. not broadway joe, msg up 20% on the year. >> our resident sports katter, jonas, what do you think? >> msg gives me a headache. >> enough said. technology has killed yet another job the e-trade baby is
being put out to pastier, their going digital. how can they do this? doesn't that want to make you have a baby? >> it makes me want to have this is hysterical, the best ads on tv right now. >> neil's next. what do we want? >> jobs. >> what do we want? >> here we go again, more cash now, more job losses later. be careful what you wish for, then, hi, everyone, i'm neil cavuto, unions getting 23569 food workers out again chanting for a hike in the minimum wage. one tiny problem. a few survey of employers shows those jobs will be taking a big hike, if they get what they wish. to charles payne, what do you make of this? the boss says we have to hike the wage that much, a lot of you have to go? >> first of all, i