tv Forbes on FOX FOX Business September 7, 2014 2:00am-2:31am EDT
mexican people are an incdibly grt, productive people. let's bet on them. >> anyone worried about the mere term big old correction? what do you think? >> yes. yes. >> inlt woied. >> you worry about it, but you don't trade and invest on it. >> thank you very much. we continue now. by almost every measure the american economy and american workers are better off than when i took office. >> better off than before? this week we found out the job market is stalling again, and median household income is down nearly $3,000. are you better off or not? hi, everybody. i'm david. welcome to forbes on fox. let's go in focus and find out with ci forbes, elizabeth mcdonald, mike, rick unger. on monday the president id by almost any measure the economy was better. on friday we get these lousy job
numbers. >> they're headed for the world series. aning incomes are down. job creation still remains. economics does not work. the top 10% of income earners, yes, knee done well under president obama, but the other 90%, they're stalled and feel they're falling behind. >> 55% say the nation's economy overall is not turning the corner. it is going to g worse before it gets better. who is right? the president or the american people? >>ell, look, i think the president had a right when said that by any measure the economy has improved since he got there. i'm afraid it's a swing and a miss, though, when he says that the worker is doing better. >> look at the median income. people have almost $3,000 less in their pocket. that's why they feel worse off.
>> yeah, but finishing the first thought that he isn't right. we see by the numbers that workers are not doing betterer. we have less people seeking jobs than we had before. you see the corporations are doing pretty well. we see that the top 10% is doing better than ever. it possible that we unfairly place the blame on the president when it belongs on business. >> after six years people tend to blame the guy in charge. the -- this has been a terrible recovery, by the way, and when u compare it to the reagan recovery, look at this. we had 27.3% growth after recession. 4.8%. it's just pathetic in comparison. why i would say it's pretty simple. under reagan, you incentivize the economy. look at the top margin rate.
it went down to 28% from 70%. under obama it went up. >> right. the thing is, david, if you go back to the 1930 the more severe the recession, the faster economic growth is in the subsequent recovery, and the key driverf th is capital formation, spending in plants and equipment. if you go back to the reagan recovery, spending on plant and equipment was 22% of gdp. it's ben only 17% in the obama recovery. why? high regulations, higher tacks have hwarted business investment. >> i'm glad i brought up regulation. not just the taxes that have gone up under president obama. it's also regulation. >> yeah. we've had dodd frank. wee had obama care. we've had the e.p.a. listen, only the crank outposts of the liberal left would say this is great recovery. i mean this is very slow change we cannot believe in, and i can't believe wh's going on. you know, this president will see time and again, well, i inherited a terrible ression. guess what, three of the last six presidents inherited bad recessioions. you mentioned ronald reagan.
he inherited a double dip recession, citigroup collapsed for the first time, and also double digit inflation. this is the only president since herbert hoor who responded to an economic collapse by raising aggress ofly taxes. >> right. richyou're increasing the costs of doing business, so surprise, surprise, there's less business. therefore, less jobs. have i got it right? >> you absolutely do. that's why labor participation, you know, went to another n lowf 62% plus. that's just a biz mal. people on food stamps, now 15% of the population. it was 11% when obama took office. sability insurance is now climbing 40% under obama. you know, obama taking credit for this rovery off of a really low bar in january 2009 by purcoincidence is like fwor gore taking credit for the invention of the internet because he came to office and was vice president in 1993. >> john, i would love to hear what you think about all this.
>> well, you know, i think despite the unemployment number, the job - the economy is actually growing, but what's got to be stressed is that it has no nothing to do or little to do with president obama's economic policies, and a great deal to do with the fact that his presidency essentiallyended at thend of 2012. economies are just individuals. when gridlock takes shape in washington, that means politicians aren't able put up barriers to our natural desi to achieve. there is a slight recovery going on, but it has nothing todo with policy and everythingo do with a lack of policy. >> that's a very interesting idea. steve, is it st the anti-matter? the only benefits to the economy is the fact they can't do anything in d.c.? >> that's very nice, b the's positive things that have to be done. especially in the corporate tax side. we have the highest rates in the western world. on the personal income tax side, that's a huge disincentive. obama care is hurting small businesses. the fed continues to muck up the credit markets. there are positive things that
have to be done if we're really going to get out of second gear. >> rick, what i don't understand is that both republicans and democrats agree to that at least the corporate rate tax rate is too high. we went from one of the lowest in the world to now the highest corpate tax rate. why when both sides agree it's too high can't it be lower? >> well, you know, i'm not sure it can't be lowered. i think one of the problems we have with that is that you have toook at the effective tax rate and the tax rate as it's listed. i think we all would agree that very few companies are actually paying that 30%. if it were, i would be with you all the way. >> the point is that the reason they're not paying is because all these special interests have their special deals, and 's the big companies that don't pay anything. >> you know what else i agree with, john tammany. presidents have less to do with these things than people want to give them credit. >> guess who the president didn't credit at all. the federal reserve. 21 trillion plus in liquidity. also, government borrowing at teaser rates. itit not such a hard thing t
flip the switch on $7 trillion in spending down in slap-happy c. listen, i warned back in 2010 about trickle down government. what do we have now? people protesting not getting enough mik jobs, low-paying jobs. the rhetoric o of the presidency is really bad too. >> mike, go ahe >> you know what, i love john, and i get what h is saying about the government. here's the problem. reagan was a leader, and he acted, and it helped us. the problem right now is -- both big government status. john, i share your distrust of government, but sometimes you do need a leader like ronald reagan t knock heads together and say we have to change our tax structure. it's killing jobs. >> i couldn't agree more. policy, as steve points out and mike points out, matter if we had the right person in office rightow doing the right thing with taxes and monetary policy, we would be much tt off, but i'll take gridlock if i
can't get better policy. i will giv president obama one bit of credit. he did not reappoint ben bernanke. that was huge to our economic recovery. janet yellin believes the same pois, but she does not have the power that bernanke has been out has been a major factor in the revival, at least slightly, of the economy. >> what about leadership? you were right there in the -- you worked for the reagan administration for a short time. i mean, is there anybody out there who has t umpf, who has the vision to change this thing? >> oh, i think a republican candidate running in 2016 will try to demonstrate that. know of three who are thinking of running that will come up with a flat tax proposal. >> well, hold on a second. you can't tease us like that. who are the three? >> they oke to min confidence. >> oh, steve. come on. you are awe journalist. you are a journalist, steve. >> i'll be ke a washington politician and break my word. no. not yet. so i think positive change is ing to come outof 2016.
as for janet yellin saying these better than ben bernanke, she may be a different person, but in terms of policy, the fed is still in a mode of getting more power. they still won't allow credit markets to recover. she's bloating the balance sheet still. maybe she's better, but that's, again, like comparing the mets with the astros. they're not going to make the world series. >> probably goingo end on an up note. unfortunately, we have to look leave it at that. with the new terr threats against americans, mixed messages from the white house. the gaining asking if d.c. is dog enough to prott our lives and our livelihood? first, right here, get rdy to flip out.
now back to forbes on fox. for all your headlines, log on to fox news.com. well, next time you dine out, take a closer look at your dinner bill because more restaurants are adding an obama care surcharge. a group of california eateries now slapping customers with an tra 3% to pay for mandated health coverage for their employees. will more of our viewers start seeing thesurcharges. what do you think, john >> i think what's happening in lifornia is beautiful and i hope it leads to proposition -- it's beautiful what's happenin here. >> why? >> the american people need to be reminded that government compassion comes with a cost. when politicians give out goodies, we pay f them. everyone should see the cost of
obama care, and if so, that means in the future when politicians prise things that they can't pay for, the voters will say we are not going to low you to do this. let's have this go snawide. >> rick, are we going to see it nationwide? are we going to see it everywhere? >> are you so missing this. i have been to manufacture these california restaurants. they are all expensive restaurants that cater to what? california liberals, by and large. they put the 3% separate. they could put it right into the menu. they put it separate. wh becae they are using it as p.r. their customers love it. they love that they're doing this to benefit their workers. guys, you won't see it. >> wait a minute. steve, i don't know any customer anywhere who loves paying more money for anything. >> no, and if ey put it in the prices, people would accuse them of price goung, because it's a way to get the restaurants off the hook. by the way, in san francisco a lot of that money is not going for health care benefits. they devise formulas in a way where a lot of that money goes
in the hands of the restaurant owners. so it's another way with the politicis getting it or others get it. customer gets the shaft. >> bill baldwin, it is not just happening in california, by the way. we are seeing ilsewhere in thcountry. are we going to see it more? i wonder whether businesses really win the hearts of their customers by providing a laundry list of excuses with every bill. you know, a fuel surcharge, a univsal connectivity fee, inflatation surcharge. all these surcharges. airlines like to use these things, and cell phone carriers like to use these things, but reputable businesses don't. >> there is a cost, and the restaurants want to be clear with customers as to why their costs are going up. >> i with john. i think it's -- that's exactly right, david. that is what's goi on. it's also happening in florida and minnesota, and it's not because people are cheerleading it. it's because they want to be transparent about why costs are going up it's not food d inflation. the other thing too is, david, i'm wondering if this will happen with fast food chains. maybe fast food workers will
wake up and see what iseally happening to the overhead costs for their companies and how that could really hurt their jobs as we see protests rolling out. >> john, there is another cost, and this one is even harder in many cases than the surcharge, which is that a fed survey showed 21% of businesses are reducing their numr of emoyees because of obama care. 've talked about this before. jobs as well as money. >> yeah. jobs, whether it's that or surcharg, what they're doing is tey're exposing the oxymoron that is political coassion. weant to see more of this. people need to know that obama care comes with a cost in terms of hher unemployment. it comes with a cost in terms of higher restaurant bills. even if they're doing it to pmae ate their liberal customers, it's going t become fire on them. >> e-mailedon friedmansays there's no such thing as a free lunch. in this case both a lunch and a health care have a cost. >> yeah. john, that's right in that sense. we should see more of it. years o when con-ed in new
york, the utility, tried to break out all the taxes they paid, thlegislature banned them from doing it. break out these embedded costs and e wh is the real thing you're getting and how much you are paying for government. >> i see rick unger shaking his he. >> all due respect to my good friends on the pal. youing $40 r a steak at these restaurants. are you going to tell me -- >> we're talking about denny's in florida. you don' pay $40. is happening -- it is happening in florida with dey's. they don't pay $40 for a steak at denny's. >> the rtaurants in california are all high-priced, $40 a steak restauran restaurants. guess what. if i'm willing to pay the $40, i'm m going to pay $41.50. >> bill. >> i think this could get a little too riculous. what's going to happen? you go into a toyota dealership, and they say the car is free, buit's $35,000 for shipping and haling. this gets ridiculous. you ouldn't have to do that when y are a customer. give me the final bill. don't itemize. >> let's not lose sight of the overall here, which is th the president said this is not going
to cost anything. >> you stee in the people losing their health care, see them having fewereretworks in which they can go to. >> you are seeing it on your bills now, folks. coming up next, celebrities are still ticked over their nud pics getting hacked, but should pics getting hacked, but should they be kicking themselves
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well, even for hollywood this was over poexzure. the fbi's busy investigating how nude photos of stars like jennifer lawrence, kate upton, and rihanna were leaked by hackers. some blaming apple's icloud for not being secure enough, but who really deserves the blame? rich, are you pinning this on apple? >> i think this is the biggest fake scandal in the history of mankind. you have these narcissistic celebrities who are complaining that their naked pictures have been released? i mean, come on. you know, i've got a bridge to sell you if you believe that one. >> mike, who is to blame? >> to me, david, it's the hackers, right? they stole private property. >> that seems pretty clear, but bill, everybody wants to blame apple. at least the people in hollywood do. >> i think i will, and let me ask -- >> are you going to blame apple for this? >> let me ask you a question. what do paris hilton, scarlett johannson, and sarah palin all have in common? >> beauty.
>> something else. they were all hacked by easy to guess, security questions. i think it's high time that apple figured out -- apple and everybody el, that these dopey security questions like your mother's maiden name, which i can find on geniologcom, those should be thrown out and we should start over with another system. >> all right. well, the fact is, steve, i frankly think hackers are always going to be in some areas one step aheadf the creators of things. don't you have to go back to the hackers themselves? they are t ones who did this, right? >> mike is right. it is stolen property, and i think that to blame apple, i mean, they act -- the pentagon, the iranians hack our banks. this is a real problem, and while this gets publicity because these are celebties, the fact of the matter is this stolen property, and the hackers should be hunted down if we can. >> well, rick, the argument could be made that we are all in show business. all people herare performers in a way, even though we're journalists, we like to think of ourselves as journalists. you were in hollywood. you spent a lot of time there. who is to blame? is it the starlets themselves? >> well, there's two things i
learned being in hollywood. one is nobody wants the naked pictures ofany of us. maybe lizzie. not the rest of us. okay? that's number one number two, having been in hollywood, i can tellou that rich is on the right track. >> really? >> there's no such thing as over exposure. >> reay? rich, there does come a point where the rson responsible for taking the pictures, i know it's private roperty, et cetera, but these days you got to expect that some of the stf is going to be floating out somehow. right? >> yeah. exactly. as for the fbi's involvement, i mean, give me a break. they should be concentrating on people who have the potential to do real mischief, such as hacking into our 401ks. >> forgive me, but wake up, rich most f agents are male. you don't think the males are going to be all over this sto? the fbi guys? i mean, it's no wonder that they're all over this, right? mike, the other thing is somebody came up with a peect fix for all this. store your naked pictures on lois lerner's computer.
they'll disappear forever, right? >> you know what, the best advice i think is if -- unlike rich, if this is not a scandal, you know, and this wasn't done deliberately, in this day and age, i think you just got to assume that any photo you take, anything you write, anything it's part of lois lerner and the irs, it's going to be out there forever. >> steve, that is the point. i understand that your computer information is like your own house, but nowadays you just have to acce the fact that the world is more open than it used to be. right? >> sure. but that doesn't make it right. >> doesn't make it right, but it makes it easier for these hackers to fwet in, no matter what am tries to do to circumvent it. >> don't blame the victim. if they want to get over exposed, they have other ways to do it. >> i think you are on to something there. thank you, folks. how can you protect your private information and boost your profits? the informers expo
we are back. while protecting your private information. symantec. >> it's a software security provider, and it's working reportedly with companies like home depot to stop cyber hacking where are. >> you like it? >> it's a dead stock that's lying right where it was a decadego. >> oh, boy. two very different opinions. >> emc? why do you like emc? >> it controls rsa encryption, which is behind internet security. >> but is that a good encryption? >> i don't like it because it's on an acquisition-based strategy
to increase revenues by acquiring companies. at's how it's boosting revenues. >> we have two opinions on both stocks. thank you very much, gang. that's it for forbes on x. have a wonderful weeken here. the number one business block continues with my buddy eric bowling and "cashin in." isis spreading like a deadly disease and president obama sounding like he wants to put a band-aid on the cancer. first he said this. >> we don't have a strategy yet. >> and now this. >> it is a manageable problem. as the 9/11 anniversary nears the president wants to make t isis crisis a manageable problem. well, maybe you dn't get the memo this new memo, thousands of foreigners are here on student visas. they vanished into tn air. it's our government asleep at the wheel and putting our lives and livelihood in danger. plus. >> they're grabbing us by the hair and pulling us back. >> the dnc chairwoman accusing