Skip to main content

tv   Stossel  FOX Business  June 27, 2015 4:00am-5:01am EDT

4:00 am
>> he was one of my students years ago. >> i will tell you what i will do. it has been great to listen to you. thanks for being with us. good night from new york. >> show me the money. >> hedge fund managers making all of america's kindergarten teachers combined? >> some have much more money than others. >> and this ted dollar bill hamilton's face is not on it and will be replaced by a woman. >> you know, who she is? no. no. >> bad government is printing money like crazy then doing what? squandering broke but the
4:01 am
president says the deficits are already shrinking. >> he is right so what is the truest? that is our show. tonight. john: money confuses people with compound interest taxes and comparative advantage so it is fun to see a new book out called "popular economics" that sounds like more fun but what can they teach us? abroad james specializes is something else. >> what can he teach about
4:02 am
economics? let's ask the author. >> he is a great example of comparative advantage he is the best free trade between the countries and all individuals trade but countries never trade he is the best basketball player in the world but it is well known he could be high indeed paid nfl tight end but he is blowball dependentclothes he wears he gets his hair cut by someone else and specializes when he is best at with a basketball. john: than he pays for the football to sell his basketball. >> we produce to consume there you can import as much as possible.
4:03 am
trade is the reason we produce the more you specialize thee you can trade. john: it is hard for people to get their brains around and even with economics courses they don't explain this. >> they try to put into percentages what is real life. nothing is easier than and economics with famous businesses and economics everyone understands it intimately. john: what about the rolling stones? >> if you start me up but i will never stop. ♪ john: they started off in england but then something
4:04 am
happens that would stop them >> the top income-tax was 83% so keith richards points out that is equivalent to be told to leave the country altogether and that is what they did. it is a reminder if you raise the penalty to a high-level the rich are fairly mobile and can avoid it in hollywood they always vote for higher taxes but look where the movie surveyed today. best keflex he has -- the best tax precis go to georgia for six months and they suffer the high tax rates but they cannot move. john: martin o'malley governor of maryland created a special tax for the rich the legislature said 106 million instead it lost 250 million because so many
4:05 am
left. >> their rich are highly mobile to get away from the penalties and facebook co-founder renounced his u.s. citizenship and moved to singapore and taxes are lower there. chuck schumer was so upset he is proposing a of a special expatriate act to bar them from ever returning to the united states. >> tissue repair a proper understanding of the economy works he would see him as an american hero so liquid he did to shield his wealth from the al stretched hands of politicians. those dollars go into a bank and immediately go out to people who need to we should or small business loan or the stock market when we legally shield our wealth
4:06 am
and the federal government is the media be redistributed to those who need it is a good thing. >> if you are in singapore the money is in the bank. john: he invested in technology and airport rental starts up. >> kick creates wealth always just like a u.s. bank does not stair lovingly but there are no jobs so when the shield the wealth make gets into the hands of those that are not wait -- rich. john: but if it goes to singapore is lost to america spirit that is a misunderstanding i want to find of bank that pays for
4:07 am
deposits and then puts it under a mattress they immediately as a rule must reinvest that into future companies. it comes right back here the dollars have to come back to the united states because that is where they have value. a countries founded on skepticism where we have to move out of the country to hold onto wealth we have created? something is wrong with this picture and a government has expanded well beyond what the founders and tendered. john: now let's move on to the biggest political issue to the presidential front runner. >> the top 25 hedge fund managers making more like -- making more than all kindergarten teachers combined. john: is such a huge difference doesn't sound fair teach us' -- teachers
4:08 am
and nurses hedge fund managers? they don't even make a product no wonder hillary speaks up but this teacher teaches at the king's college ; above to be paid as much but i am not saying three at them and i don't want to arrive of what i do to a. john: they do quantitative analysis with very long hours with the risks and the investors give them the money voluntarily. john: is sent hard work like cleaning sewers or labor that people to for much less spent i bet those people to live for all lot more the crab fishermen makes three
4:09 am
times as much it is send physical but all different sorts of supply and demand and what people value. that is the plain truth. john: people value education i hate to read and edit but there are many people who can do what i can do like taylor's with door of the bride james. >> teachers make on average more than the average worker 53,000 the average salary is 42,000 hedge fund makes much more but you get the summer of. >> as a leap choose a profession based on what we like some are attracted to the fast pace of the hedge fund world or a classroom
4:10 am
with a more deliberate approach and you can pursue other projects in the summer but ceo is paid 300 times what the worker get. >> let's talk about lebron james making money but they are not that concerned because they see the product of their work they see him go down the court or they hear a swift song they know they're talented but the knows what the ceo does there is no camera in the office we cannot see the work so we don't understand and we think it is not right but they are paid what it takes for the sacrifice is necessary and real have the opportunity to pursue that. and presumably it is better.
4:11 am
>> if they do good work. john: ben nor agreed with hillary. >> alibaba that some people are much richer than others? >> yes. >> yes. >> this does not bother make everybody should be treated as equal. john: a right to be stable and comfortable proximity of the right to have that opportunity. >> because they have the right to retry you cannot equalize the outcome may whether 300 million but james is below the soccer player if you compare that to the entertainer's with
4:12 am
oprah at 82. nobody wants a law about that. >> receive their work if you don't see the hedge fund manager you assume it is ill-gotten gains but it is not i certainly cannot any more. john: coming up will you be dealing with this woman? is a problem that most americans are now in debt? >> they said a bottle was just a bottle.
4:13 am
4:14 am
4:15 am
that no one would ever notice me. but i knew i could be more. that one day, i would make people smile. [woman speaking indistinctly]
4:16 am
neck americans racking up debt with the recession in the of our memories directory had a five americans have no savings. john: 94 emergencies? that would terrify me and i am scared about being broke even when i made just $7,000 i saved something every month. but three by five have no
4:17 am
savings and dave ramsey council's people and you started to do this after you went they crept? werke almost 30 years ago is seems like yesterday because the pain leaves a mark when you're so far in debt you cannot breed or pay your bills i can relate to the people who were stupid. john: were you just young or nobody taught you? >> to be young and immature and nobody taught me and i have a finance degree which is hilarious. [laughter] i borrowed myself up to my eyebrows and with a broken lost everything and it puts you right on the edge and scared to death. >> and that now makes it worse with entitlements? director is the strange combination everybody gets
4:18 am
saddled the mentality but that hopelessness set to get ahead there are structural problems with the economy to have an outside force to save me because i am incapable to save myself. >> and the results the fed says 31 percent has no retirement savings or pension even 20% to around 60 years old. they will live off of social security? [laughter] how is that for a great plan? it is not a of a good plan at all. but to show them that they can get on a plan and get
4:19 am
rid of their debt to have the cash flow of an emergency fund and retirement you could retire with $100 a month through age 30 and age 70 but you have to get control it is the person in the mirror the problem with my buddy is the guy that i shave with. john: i am amazed right after the housing bubble the fed is giving out loans to only put down 3%. >>. [laughter] just because they give you money does not mean you should buy it just because there is of a credit card i have to use it. >> but have restraint. john: "saturday night live" disproof years ago. >> millions of americans live with that they cannot control. it is called don't buy stuff you cannot afford.
4:20 am
>> i buy something i want that hope that i can pay for it? period no. you make sure you have money then you pay for it. >> then you buy it? >> not far from the truth. >> is grandma common sense if you don't have the money, don't buy it just save the car payment average car payment is $492 over 80 months then he would have five points $6 million. john: but then you would not have a car. >> rewired save up to pay cash. >> but now there are ads that helped people mitt is one that lays it all out in one program you can carry it with you on your cellphone. there is a similar one
4:21 am
called every dollar. >> based on a proven player that has helped millions. >> it gives me visibility stemming i don't have to log into my bank account. john: do you charge people? >> is completely free is on line by edging tool because when you tell your money what to do it behaves. no one purposely goes deeply into debt to have to be intentional to get out. that is the budget to give your money a name but then it feels like you got a raise. john: stake you gave ramsey help you keep helping people. of a woman named man killer what about taking alexander
4:22 am
hamilton of the $10 bill? people say good riddance do you know anything about alexander hamilton in? america another man on
4:23 am
4:24 am
4:25 am
4:26 am
john: even harder than solving their rubrics cube is to get people to do something with $18 trillion debt. the responsible people said it keeps increasing and politicians have to spend less but they say no. >> but the deficits are shrinking and that is the fact. john: recently it shrank to about $500 billion but while that sounds and good it is
4:27 am
not impressive for several reasons but the $500 billion deficit still means we add that much to america's debt we add more year after year and a growing debt is a huge problem going for broke obsesses about that in the book for a wide you worry? >>. >> we have a the graph about the deficit? the mostly salt deficit problem. >> has come down but it is the temporary respite. >> coming down from a high when the housing bubble burst. >> with a t.a.r.p. rand stimulus spending and it has come down but the cbo says it starts back up we will be
4:28 am
that close to $1 trillion deficits. >> so the payments that cannot be paid are entitlements plus the interest and we have promised to pay old people more money than we have and my a economic theory is that people anticipates that. with massive inflation. >> because we are the best horse in the glue factory ribeiro is not dead good bet nobody is buying the of approval so they're willing to lend money at a lower interest rate. john: the rest of though world is worse we are okay. >> that will not last forever but everyone% increase adds $1 trillion to the devil to the we will pay interest at a rate that
4:29 am
squeezes out all other investment. john: in 70 years entitlements and interest will eat all our taxes there is nothing left for defense or social programs. >> a government sends checks to all people with little or may we cannot do anything else. john: but older people vote and politicians are terrified. >> and they're easy to scare face up to the fact for the yen on behalf whole ashley young people we have lied to them we can solve it by taxing the rich with there is not enough rich people to pay off the bills that we have if you confiscated. john: we have a chart of that. >> take get all wanna% by
4:30 am
every millionaire and billionaire you would not even pay off the national debt alone unfunded liabilities of the medicare and social security. it cannot go on forever it will stop but will we have a soft landing now or look a lot like greece and 20 years john: thank you for being paul revere. the fight's over putting a woman on the $10 bill stem back room are the woman that are being suggested stack up
4:31 am
4:32 am
4:33 am
4:34 am
john: do you notice something unfair about your currency? looked at the bill the founder of ever country.
4:35 am
that seems appropriate. abraham lincoln and. alexander hamilton and rejection grit -- grant and franklin they are all white men and that is wrong says the petition called women on the 20 that the so woman's place is on the money. that's clever they wanted the $20 bill instead evander jackson but as you have heard the treasury has agreed but they said not the 20 because it was already done so we will kick off alexander hamilton of the $10 bill were moved into the side and it is long overdue says the lady through lead the movement.
4:36 am
sabrina schaefer is less enthusiastic. >> remember you only memorialize people through monday or on a monument it is much more than their gender or political party but their value the way they influenced our culture over hundreds of years. john: women have not? >> let alexander hamilton in what he did you transform this country from agrarian to err ben and stable and he prevented what would have been a more civil war between the colonies and there is so much to say he contributed to the country. john: we are for gender equality but they are called the founding fathers. >> we are women on 20 is because one of the founding fathers andrew jackson and
4:37 am
his legacy is one that we call into question. john: you do not want to kick off hamilton? >> now or we would have said women on 10. john: because he was a slaveholder and president and the supreme court said he could not kick them indians off their land but he did that anyway and many died. we want to punish him but the treasury said readjusted the bill we are slow and we are government side they had already started work on the $10 bill they took their cue from a committee that said this currency needs to be redesigned for security reasons. john: id - - i feel bad
4:38 am
about hamilton he was a courageous soldier with the constitution to be passed it in his spare time he founded the the york post and was also a remarkable human being to stop the mob when it threatened to harm and a large british loyalist he was an orphan import immigrant and the american success story. we would ask viewers what you thought. >> what took so long? >> as sole woman i disagree why fix something that isn't broken? political correctness? >> probably. >> why? his face is there for a reason did he do something to make jam on were the? my producer would ask people about hamilton most people did not know anything about
4:39 am
him. >> wasn't he a president? train wreck no. most were but not hamilton. >> i don't know period he is just another face another man on another bill. john: most people said put a woman on the currency. >> we will dog him for a woman. >> great idea. >> why? >> we have equal rights. >> especially with hillary i think it is cool. it is about time. john: but then she asked rich woman? >> are there any accomplished women that come into my that have changed the course of american history? john: long silence and they cannot think of anybody.
4:40 am
>> women's history has ben absent. as a long process over a your pre-had over 100 people who read to historians and authors and women's studies from 100 down at 60 down at 30 the women's impact on society and also how difficult it was to accomplish those then became up with the top 15. john: harriet tubman is the lead. >> to listen to these people on the street there is a sense society is openly hostile accord women even though is much the heart is in the right place that the campaign suggest. >> listen to these people they think because there is
4:41 am
not a woman on our currency somehow we don't have equal "opportunity in america" and that is a sad state of affairs they have it all opportunity to learn to these people are. john: our producer brought pitchers of the women on your web site that got more than 1,000 votes. >> rachel carson what about that? >> i don't know spanish u.s. and environmentalist. >> i don't know her. >> wilma mankiller. john: she was fourth and most people don't know who she is. >> chief of the cherokee nation elected three times. john: because her last name is man killer?
4:42 am
>> but if we name shame this woman had an incredible accomplishments so we want to honor that. john: thank you. later i will solve the conflict of food to put on the currency and i will give both of you my solution first one more comment women are paid less shouldn't they be of the $7.57 bill? [laughter] the battle between cash and credit they told me a bottle couldn't
4:43 am
dream. that i would never become a superhero. [singing indistinctly] but i learned how to fly. just to come back, in a new disguise. and be the hero that i've always wanted to be.
4:44 am
4:45 am
4:46 am
john: companies keep sending us credit cards in the mail. you are qualified with low interest rates to make it sound great but if you don't pay your bill right away the interest can suck all your money away and people get in trouble and that is why crystal paine all the uses cash with the personal finance blogging money-saving never
4:47 am
used a credit card? >> never in my entire life. people cannot believe that is possible. you use cashier and a debit card but i really like to use cash. john: if you via car you bring of a big pile of cash? >> repay for a car with a cashier's check the at the grocery store i use cash. john: you decided at age seven? >> my parents paid off their house and started to save heart and we've moved to the country we were in a little trailer and they built a house dash free so i saw the making sacrifices using their money and impacted me. they don't have stressed because they don't have that. john: you cannot recover a
4:48 am
stolen. >> a lot of people use that argument but we don't bring $500 worth of cash with us i have cash envelopes for a brush trees and eating out i just bring that with me when i go to the restore. john: the financial system is biased against cash show they? >> when i went to buy the iphone i went to the apple store they said you don't have credit is a you have to put a $500 down as a deposit for we cannot give you the plan. >> people that use cash get discounts so that helps if you buy gas they offer savings. >> because the stores have to pay extra if you swipe a card. >> about 2% for mastercard and visa or 3 percent for american express so they should be offering a
4:49 am
discount. >> sanders than the system why we have checks and balances we owned two houses that we rent out but that made me feel bad when they say like i have not been responsible with my money. john: what if you don't check their credit rating? river that's right i have nine. i understand that is the system we have created but i feel that punishes people who use money responsibly and don't use credit cards. >> this mach's people that use cash it claims everything is wonderful but people use their credit card it moves quickly. ♪
4:50 am
the chat card because money should not slow you down. john: en but cash can be quicker and. >> i watched that and i feel like they make me out to be the idiot with no annual fee or o% interest for a while until march of 2016 than 20 4.9%. 1.five cash back on every purchase are they lying? >> i think there is that instant gratification culture it is easy to swipe to get it now did you the news that the filament that comes from grandparents that would save up to pay with their own money.
4:51 am
john: i will solve the currency controversy next. ♪cause
4:52 am
nothin ever gonna make this world better♪ ♪if we don't start believin♪ ♪love really really really is the answer♪ ♪everybody join hands cuz it's time now, you know♪ ♪spread the love, spread the love♪ ♪all over the world♪ ♪spread it all over the world♪
4:53 am
4:54 am
john: earlier tonight we've showed by producers of adventures in times square so what woman should push hamilton the side on the $10 bill? there's some predictable suggestions. >> eleanor roosevelt.
4:55 am
>> michele obama. john: first lady's? she is not eligible that the woman has to be dead but why do presidents, to people's mind what did she accomplish what about those that created something on their own? we could debate to roosevelt but at least other women that are considered clear the dead like this system classified to use stars the issues today or who's started the girl scouts or who invented the term birth control and founded planned parenthood for who started the environmental movement. although serious achievers are pushed by various people with various agendas but when they're asked to show them the name and her
4:56 am
picture they had no picture her they were. >> rachel carson is a suggestion. >> i don't know. >> i don't know who that is so american environmentalist >> i don't know her. >> wilma mankiller. john: i am kind of glad they didn't know rachel carson because environmentalist for shipper i think she is a mass murderer curve eating best seller got ddt band and now there is government to finally remove the bay and but before they did millions of people died from malaria who should have lived because of her bad science and herblock the back to the
4:57 am
$10 bill is no surprise they did not know women most of not know about hamilton either but some did. >> alexander hamilton. >> the first treasury secretary and his accomplishments in of finance market. >> on path for a woman? >> no. it is built on tradition. >> our forefathers were meant? i cannot say things like that. this is my way to the dow up to my final point we don't have that controversy we would not have any argument if the currency were not all created and printed by the federal government. private currency comes in
4:58 am
many forms if you prefer dogs you could use digital currency called dogecoin. banks used to print competing currencies and that helps prevent inflation and deep depression economist rights america once had 1600 private corporations issue with 1,000 variety of banknotes and when they did the economy grew 4% freer with little inflation but then congress banned private currency to create the central bank at the fed was supposed to provide stability but it hasn't 16 years later the great depression began and since then the dollar has lost 96% of its value. government cannot run an
4:59 am
economy wisely why is it in charge of the money printing they love to take the bills to stimulate the greater activity is not real wealth creation but more pieces of paper representing the same amount of wealth to create housing bubbles and eventually inflation and that politicians think there would just keep spending. i say let private currency compete not only will we be on firmer ground financially but people will be "free to choose" harriet tubman or dog currency to pay their bills somebody wants caitlin jenner. go for it if we have private currency all those options could coexist. choice is always better than
5:00 am
the government one-size-fits-all solution the matter which side government picks. that is our show. see you next week. kennedy: is an exciting thursday watching the supreme court if they would rule against the administration on obamacare and that subsidy tax but the court was not feeling very little -- liberal with a creative interpretation the status quo stays. justice bill yet -- salia was skating and said he plays favorites that will create confusion in the future. is ongoing frustration with th


info Stream Only

Uploaded by TV Archive on