tv Cavuto on Business FOX Business July 28, 2013 8:30am-9:01am EDT
reach. >> jonas? >> i say this is it a champagne food economy with the beer. >> we like that. >> okay and the freedom, the number one business bloc on tv tips, cavuto on business. the are latest money message from the predent? >> this growing inequality, inequality of opportunity, reducing inequality, little more incattle, inequality is both inevitable and just. inequality will continue to increase >> during his major speech on the economy, president obama using the word "inequality" more than "growth." is that any way to get america growing? hello, everyone. i'm charles paynein for neil cavuto. charles gas perino with his no shirt or tie, because clarlly's new book "circle of friends" in stores, online, everywhere. >> want to see the gold chains,
too? >> we'll start with gary so everybody will have a chance on the show. >> look, my president knows inequality because he's been president houlshold median income is down about 5%. the problem with this inequality is that he believes to fix it, to get people wealthy, is to take from the wealthy and give it to others. and it just doesn't work. you need to incentivize people to getet to work, work harder, d instd of putting down the successful and the wealalthy, h about putting them on a pedestal and showing people how they got there? he's just doing the opposite. >> dagen, feels like a condemnation really of capitalism in a certain way. i mean, people who work hard, succeed, if you don't necessarily work hard, you fall behind. d the person who worked hard doesn't owe you anything. >> if you look into the speech, here's the essential message, that the rich are tooblame for businesses having fewer customers, the rich are to blame for the housing bubble and ultimate burst, and the rich are to blame for basically undermining the fabric of this
tion. and to gary k.'s point, this has been his message about taking from the rich and redistributing it to the mdle income. he's had 4 1/2 years. the economy is actually growing slower than the average over that 4 1/2 years, and median incomes are falling when adjusted for inflation. so not working! >> charlie, can the government actually control the outcom -- the ouome of something, the quality of outcome. how can anyone -- if you and i get in a race, if you're faster than me, simply you're faster than me. >> right. i should point out i didn't see the entire speech because when i got into it a while, it th was among the most least substantive economic speeches i've seen in a long time. if george bush was giving this speech, there would be front page stories about the moron he was. >> i thought it was inflammatory. >> i'm saying substantive. i'm not saying it wasn't -- >> it depends on your goal. >> substantive in terms of how to fix the economy. >> oh, sure. >> it was not a serious speech. >> oh, sure. >> the government can help.
it can hurt. it gets to gary's point, which i'll put even a finer point on. under this president, the rich have gotten richer, the poor have gotten poorer, the inequality gap has grown tremendously. when that happened on the ronald reagan and george bush watch, front page stories in the "n york times." where are the front page stories about the inequality gap with this president? >> so, adam, the income and inequality gap, could that be the president's fault? i mean, the president is suggesting it'severyone's fault but his. he took this major victory lap before starting this speech, but doesn't the buck stop at his door? >> i don't think he's saying it's everybody's fault but his. by the way, he's not necessarily saying it's anybody's fault. >> he's not saying anything. >> the president has a bully pulpit and stands up -- >> you didn't listen to his speech. >> -- here's what i care about. do you care about the same things or not? the answer with everybody on the panel is, no, i don't care about the same things. don't care about inequality.
and the president is saying that's a major concern of his and the americ people and i think that's an appropriate subject for a bully pulpit. >> what did he say to improve the economy? >> since when do we judge presidents by the substance of their policy speeches? >> he do. and we attack them when they're not. what did he say southbouubstant about the economy? nothing. it's actually scary. >> the question, charlie -- charles likes to frame things as, well, this isn't capitalism. and charles what i'd like you to think about is, if you want to use an inflammatory language, we've had a socialist state in this country for decades, since franklin roosevelt. we all know that. the question ihow to make the government work best, not just how to eliminate it. >> no. >> hold on. >> gary, gary -- >> the idea is to get the government out of the way and let the economy flourish without their it encumbrances. i have news for my president. he's out there talking inequality and people are too wealthy. the bottom line is, he raised
taxes. at doesn't affect the wealthy. it prevents other people fro beming wealthy. >> let's take -- >>t mandates relations, tamps wn the economy,revents the middle class from moving farther up. so everything he's done has stopped things from improving. >> here's what's really scary and what adam won't address. let him be a socialist. but give us the socialist solutions. that was -- there was nothing there. >> oh, please. >> that was way -- >> hold on a second dagen, i think the president was trying to s to the masses, let'sise up against this inequality. >> based on what? >> let's rise up agait this inequality which is morally wrong, his word. to me it was like, we've got to have some sort of a revolution in this country to officially, adam, become socialist. >> it would be a -- it would have to be a government revolution, but i think it's a way of him saying, i want to do more of what we've been doing in the last 4 1/2 years even though it's not working, and that is raising taxes on the highest earning amerans and creatg
mandates and regulations that get in the way and more taxes that get in the way of job creation. i agree with you, though. i don't think that -- >> what was it? >> that you talk about income and inequaty. nobody wants the haves have more and the have nots have less. nobody wants that. wait. the answer is, how do you fix that? he didn't come up with a viable way that was even socialist to do that. >> here's what's scary. the liberal media will not hold him accountable for being not substantive on the economy. if he wants more infrastructure spending, say it. give us a number. >> why don't we be substantive right now, charlie. >> you made a statement about no one on the panel caring about income and inequal. those are the bombs that the president throws out there. that's the incendiary thing. iidn't think was economic speech. i don't think many of his speeches with economic. i think it's ideologil but he's trying to stir it up.
that's why he does it at colleges with young people. i think he's trying to stir up a hornet's nest. by the way, the irony is, wherever you have liberals in charge is where you have the greatest amount of income inequality. >> i don't mind th hornet's nest at all. i am not saying that you, for exple, charles, don't car about income inequality. i'm saying what we coose to emphasize is important. you'd rather emphasize growth. i understand that. >> right. because -- >> you think growth will be the solution to everything. well, it hasn't worked so well for a lot of americans, including people watching this program. not just for 4 1/2 years but for 30 or 40 years. i mean, it's what the economy -- >> we've been in a recession for 30 or 40 years? >> no, no, no. >> gary k., so adam is essentially sayinghat capitalism has failed. i don't think it has. >> i didn't say that. i said it's not enough. >> i think it's the graistest country in the world. >> so do i. >> our poor people are richer than many of the countries. >> cuba is doing really well
right now. look, people who move from the middle class more toward the wealthy it does not happen by accident and it does not happen by handouts. it happens by hard work, sweat, toil, smarts, tenacity, persistence, all the great qualities that have made people successful. that's what the president should be tking about, not the fact -- hold on a second. not the fact that if you're rich you're bad and you make too much and you have to give it to somebody else. >> dagen? >> i'm sorry that i'm bothered by the skyrocketing number of people on welfare and disability in this country because you know what? when y're relying on the government to support yoself, there is no sense of self-worth there. and i'm bhered by that. but that's what's been happening in the last 4 1/2 years. >> i think this is even worse xs i think this is a guy who doesn't have a clue about the economy. when he gives econic speeches he's incredibly superficial cause he really doesn't know enough. he has some broad plans about how to redistribute stuff but he really doesn't -- >> good thing the economy is growing under his watch.
>> of course it's growing. >> it's grown at an average of a little more than 2%, and it grew less thathat in the first quarter. >> one second. listen, we don't have a lot of time left in this segment. i'll give the last word to adam. but i want to say, howome the president never applauds the greatness of america, the greatness of upward mobility and how wonderful we are? because the things he talks about, when i close my eyes, i think it's 1920. hurry up, just quick if you can. >> i don't agree that he does it and i certainly do applaud america, charles. >> let's leave it there. the white house continuing to call the irs mess phony and fake. but when the tax agency is targeting groups for their political beliefs, the forbes gang debating it at the top of the hour. up next, how is this for hypocrisy, a government who can't save a dime is now going to force you to do it. >> but i can pay for it myself. i've been saving up from all my part-time jobs. >> that's smart of it. sometimes i do part-time jobs
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took control of the country earlier this month. i'm kelly wright. now back to "cavuto on business." let's talk about forced savings. lawmakers in california moving forward with a plan that would force work hes into a retirement savings program. now, the money would go into a guaranteed state-run fund with the golden state often a trendsetter for the united
states, other states could see this down the road. doesn't seem like anything could go wrong, huh, dagen? >> because the federal government has been so great in managing social security -- >> in california special. >> social security is going to run out of money in 2033 and then you get 75 cents on the dollar thereafter. according to the trustees' report, then you look at california, they are awesome at managing a budget and having a sound pension system. what could go wrong, right? >> charlie, you'll have a lot of money coming in from another best seller. how about letting the state run it for you? >> listen, they're obviously responding to a real problem. people retire broke. i mean, that is an issue. here is e problem with this plan. they're essentially forcing them to save as part of a system that is essentially a ponzi scheme. it's legal, but the state pension fund systems are under water, too much money goes out, not enough goes in. they're forcing people to be part of a ponzi scheme that probably can't repay them when
they retire. >> gary k., here's theart that really scared me. not only do they say you'll get your money back but with interest. they're guanteeing us a profit. >> how do they know that? >> that's what i'm asking gary k., the money man. >> yeah, gary k. last time i looked i heard california is in debt to the tune of $800 billion so let's trust these people. if you notice anything the last few months on a broader scale, there's been trial balloons about taking all of our retirement money, giving it to the gornment, letting them dole it out to us. i think california is trying to be thesetter here but it comes to a word trust and another called lockbox. what hpened to the social security lockbox if you think your money is going to be around, go give it to them. i wouldn't. >> adam, charlie kind of alluded to the fact that there is a crisis, a savings crisis, particularly amongst lower earners. so california a nanny state or doing the right thing here? >> well, we need to remind everybody sort of dagen implied we already have a mandatory
retirement savings plan, it's called social security. which by the way is not going to run out of money, dagen, because we'lsave it. l there are relative live easy fixes. >> nancy pelosi is going to fix it? there's no problem according to her. >> i don't think that a state-run mandatory plan is probablyhe best way to go, nor will it succeed politically. a voluntary one probably is a pretty good idea. >> i know what you're going to say. >> just that, that a voluntary one would be a good idea. >> we should point out it's passed the -- >> the preliminary s passed. this is also california. >> jerry brown? >> adam, you guys are t the self-infliblgted economic wounds yogo through boggles the mind. >> we should be bating the pension system, the state public pensn systems in this country, jpmorgan put out a report last year. the major ones are underwater. there is a real problem with unfunded liebltds. guess what you're doing. you're forcing people to put money in what's essentially a
ponzi scheme, money comes in, more goes out. >> that will be one of the topics later. but i think right now dagen the idea is the government actually say, we'll step in, tell you what to eat, tell you what to drive, we'll save you money for u. where are we crossing the lines where we don't do anything for ourselves? >> i think to the point of obesity and savings in this country, unless broadly speaking american people step up and do the right thing for themselves, the government will step in and take over because they're going to say people eat too much, they're overweight and health care costs -- it's going to happen because it will fall the federal government to pay for them it's your choice now. they'll take over. >> gary k., go ahead. >> the bottom li, you'd be entrusting more money to people that couldn't freaking balance their own checkbook. >> of course. >> and to me this is kind of nefarious. they're going to use the money for other things, then they're going to end up giving an iou
with social security. >> let me poi out, corporations have ran pensions wellconservatively for decades. there's no reason we couldn't do well, especial hang learned from our mistakes. >> adam, adam. >> i don't think mandatory is the right way. >> adam -- >> there's no reason we can't do it well, why have they failed for the last 50 years? it's not like they're learning. they are ponzi schemes. they promise too mh. public union workers force them to pay them too much because they vote them out of office if they don't. it's designed to fail. >> and companies -- by the way, companies have stopped offering pensions, adam, because they couldn't runhem well. >> by the way, is there any -- no one believes that there will be the -- the money will be there anyway, right? the money will be plundered. they'll have to o raise taxes t replace the money. it will be a nightmare. everybody knows that. speaking of nightmares, there's a woman, she falls ther death on a roller coaster in texas, that's it right there. ♪
safety. sense the last big study, the 400 parks in the country, the odds of being injured one in 24 million. the state's cover this and the them parks and those cooperations cover it and the a wonderful job for safety. no need for the federal coming ? >> why is ed mar gtting involved. he is a u.s. senator from massachusetts and think he had bigger ambition, global warming, i don't know. >> he is proposing this regularly since 1999. >> this shows his litt mind. i continuing is a state's ise and number 2, 6 flags has no incentive for pem to do i the amusement park. >> no matter what it s. whether the bp oil spill. ther no one wants a fine to lose their ctomers.
>> it is in the best interest of the parks and they know that and cope the people who visit the parks safe. and 33 of the states have agenes that oversee park safety and the federal government does over see the trelin carnivals. >> and those need to overso those. and if marky proposes legislation on that, i would join him. adam, is this a federal government over roach? >> it is tremendously informative especially about th traveling circus. >> you didn't know that? >> thank you, dagen. i know it is a fetta foreand too much regoulgz. we need good regulation. but federal regoulgz for a municipalment parks probably not as long as the states are doing a good job. >> just say no, we don't need it. look, i know the people. >> gary, i am tying here.
>> i know people and that work in the companies, the number one thought on a daily basis is safety. throw hundred million people go through the gates every year throughout the country and if there is trouble and a lot of injuries, that is bad press and rts their business. they want to stay on top. >> please no carnies or relatives of carnies send me nasty twitter messages. i love them. >> and businesses do lockout for their best interest. up next, it is time to put up and stock up. [ male announcer ] if you suffer from a dry mouth then you'll know how uncomfortable it can be.
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>> adam >> charles, the van guard emerging market etf. i am a fan of diversifying your assets. and everybody has to have investments. >> gark, it so manies like they are a popular play. they are down so much, do you like them? >> no, when the u.s. is so much strongerou don't have to go away from here. >> what do you like t? >> facebook, ias a bear but they proved themselves and big, big earnings and gas up on a huge vol oum and big money crowd will jump all over this. >> adam, you had a big week, is
this an exception. >> it is a very good company. i wouldn't make a simple company stock pk. no. >> tel you what. chase us. the cost of freedom continues on the place for business fox. >> an endless parade of distractions and political posturing and phony scandals. >> the phony debates and nonsense. >> the phony scandalsthat consumed so much attention here. nphony scandals and fake scandals. >> phony and fake. conservative groups say is very real and so does the irs inspector general and house speaker john boehner. it is clear that the president never tock the irs scandal as seriously as he claimed. the house will continue the investigation in this mter because the americans deserve to know the truth. welcome to