>> what do you make of that? >> i like it. i know you like i charles. but what thering is over the last year or so it hasn't been a consistent stock. >> what are you doing, adam? >> well, i wish ben were here to defend knee. the s&p 500 index etf, i do this

all the time when have i extra money to invest i put more in this. it's a consistent way to invest. >> you're mirroring the performance of the s&p. >> exactly. which is better than most professionals most of the time. >> what do you think? >> he's right. you look around and there are so make money.at the average the average person ain't going to get rich with the s&p. >> as taxpayers shell out billions on airport securities the agencies are under fire. critics are slamming the tsa over claims the agents humiliated this wounded marine making him remove his prosthetic legs. he lost his legs in an attack in afghanistan and now we have word the homeland security department is giving trust it traveler status to saudi arabia so citizens can skip normal custom lines we have to go through. the same nation where 15 of the

hijackers came from. is this proof we need to privatize airport security? hi everybody. let's go in focus with mr. steve forbes. steve, the evidence is mounting that maybe we should privatize. >> absolutely, david. we see real experiments in this country. 16 airports have privatized security. including san francisco and a study was done comparing san francisco to los angeles and san francisco even though it's a private contractor, the agents are trained like they are for regular tsa. 65% more productive than in los angeles. they have more flexibility though the pay and the benefits are the same. it works. >> rick, let me put it to you this way. is it possible that privatization could be worse than what have now? >> probably not. to steve's point he is right. the statistics between san francisco and l.a., san francisco did great.

however, so you understand the full story, there are other airports that tried where it didn't come out any worse but not so good. look, if you look into at a lot of the aviation experts have to say, basically what they tell us is it's a nicer wrapper around the same pduct. you still have government supervisors, identical technology, identical procedures, they don't seem to think it's going to save us that much money. so, just a question of whose pocket the paycheck is coming out of. >> it's not only saving, it's improving efficiency. privatization bet center >> hand it to the airlines. if american airlines doesn't protect its passengers it goes out of business. if t tsa doesn't protect the passengers it gets more funding. we have an incentive problem. in the private sector you are forced to do better. in the government you are rewarded. >> bill, do incentives matter here as they do most places? >> maybe but i say no, don't give privatization a bad name by

assigning it an activity which is an expensive mess no matter who undertakes it. i would rather have john and steve use their powers of persuasion and libertarian instincts to apply to another need. privatize elementary schools. >> a subject for another conversation. we'll have that conversation. mike, by the way to clarify to, the tsa denied wrong doing with this marine. i wouldn't take their word or anybody's right now. >> my personal experience is all i can go by. when i have flown i've seen tsa be extremely inefficient. i remember going through check points and the magnetic scanners and en waiting at the boarding area after we all have gone through everything, three workers there one of them randomly would pick someone to check. the other two were standing there. >> sounds like one of these government work projects. >> i agree with mike it's inefficient. we have the tsa acting like

bouncers at a bar, basically treating that mariner 95-year-old ladies like terrorists. the thing is when you privatize the people know that they have to treat customers with respect, not like they are people who are funding their wallets and they can abuse them. so we already have more than a dozen airports still privatized, i agree with rick, you have to have the government overseeing it. for boots on the ground the airlines don't want the responsibility. the government unions don't want that responsibility of screening so they end up abusing the passengers. don't treat them like customers. >> steve, government programs are always twice as expensive and half as efficient as stu done in the private sector. this is another example of that? >> it is indeed. and san francisco is a large airport, again they get the same salary, same benefits, same kind of training, but they know how to use part-time workers better, if flow is better so if you have to do it, do it in a way people pride innovation to get the same

result. >> rick, this week we learned about a guy -- i thought this was in movies like catch me if you can. but there was a guy who got into a plane in philadelphia. would you give a seat 18 cockpit to this guy? somebody did. he claimed to be an air france pilot or worker, actually got into the jump seat in one of the cockpits, finally he was thrown out before the plane took off but he did get in. how efficient? >> i thought of the same movery as you. remind me of catch me if you can. they caught the guy before the plane took off, nobody was in danger, there was no problem. >> th were in danger because he got in the cockpit. >> to be fair the tsa in that circumstance may not have been at fault. he showed badge material. he wasn't an ordinary customer. he had a lot of identification that showed that he was an air france employee. it was false identification but i don't know that would be a normal tsa function. >> you have the government

running it they are so quick to say we're not at fault because with your union it's easy to say we're not the ones to take the blame. you have saudi arabia now involved in this story, you have now our airport security now being politicized. we're always fighting the left battle and not looking forward to make oursels more secure. >> but the is a conflict of interest here. and people like robert pointed this out for years now, that tsa polices itself and other countries you have one agency doing the security, another overseeing it to make sure the job is done. they don't have a vested interest in established procedures. so have tsa maybe oversee it but privatize the security. >> john, i was wondering if el al airline, i think they had one terrorist incident and got tighter and haven't had any since, whether they would have allowed a guy to get in the cockpit of a plane, who shouldn't have been there. >> i think not.

and i think we know why. they have a much better private security system. and the problem with government is it's one size fits all. you want competition amid this, you want the different airlines to try to do the be way to get people through security onto the planes and with that you're going to get a more pleasant airport existence or experience. >> bill. >> listen, if you privatize why start with something that looks like a police force and acts like a police force. we privatize people are trying to make us secure they are going to try to be popular with their client base and that means letting people through. that's not where you start. >> no. >> i think they are going to be more mindful to the points that john brought out which that their own existence is how effective they are. that's the way to get the best result. >> steve. >> absolutely. fleece customer and you got to do a good job. in this case the customer is the airline and the american government. >> in our case we're certainly not satisfied with what's happening. gang, thank you.

up next t young and the restless now cashless. the number of workers who don't think they will have enough money to retire. >> it's concerning because i feel as though i'm going to have to retire later than i would have preferred to. >> we put money away, but then we find that we have to tap into it more often than not.

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eastern. back to forbes on fox. >> too little too late for too many workers. a new report revealing 30% of young americans say they have no confidence they will have enough cash to retire comfortably. that is a record high. before we hear the forbes flip side on why we need to ditch soci security listen to what they have to say. >> i save on my own. i don't trust social secury would be there. >> i would rather put the money away. >> i would rather be in control of my money. i don't trust our government to do anything for me. >> now to the flip side. scrap social security? how would that help? >> it would help. put the money right back into their hands and not congress's hands because right now since the 60s congress has been spending that money, there is a mountain of paper iou's. president clinton warned in 1999

not just baby-boomers. we have 60%, 70% of boomers over age 65 by 2029 meaning you start to have to cash out the u.s. bonds meaning the bonds are going to start flooding back in the market causing rates to spike. i don't want that problem to get any worse. i want us to own the money and the viewer to own the oney. >> scrap social security now for young workers zbxt good heavens, no. that money is going in the hands ever wall street where they are going to invest it in phon baloney securities, they are going to invest it in investments that they are betting against, they are going to do exactly -- >> the government never invests in anything phony. >> as they did the past 10 years that got a lot of people broke. you cannot turn this over to wall street until wall street shows us that they are prepared to do the right thing. >> has the government ever showed us that it's ready to invest wisely? >> no. in fact, ben bernanke and his

counterpart, counterfitter in chief, obama and bernanke, they are robbing us of our savings. i like what e-mack is saying. my 401(k) has outperformed social security during my career and i think all americans should enjoy that. >> morgan, you're on the younger side. what do you think? you think the money is going to there be when you're ready to retire? >> not necessarily which is why i'm all for reforming social security but i don't think we should scrap it. i think there is a larger issue that people aren't saving because they don't have money to save. we have 12 million americans unemployed, 10 million homeowners who are still under water on mortgages, cost of gas, cost of everything has essentially gone up while our salaries have gone down. if you don't have money you can't save it. if we want to fix -- fix people's ability to save and actually ironically people's ability to contribute to social security we need to focus on job

creation. >> job creation, not social security elimination. >> social security is an abomination on its very best day but i will point out that we did make promises to people nearing retirement so i think the idea should be to make them whole, then give those who are younger the opportunity to opt out of the system. rick says that wall street invests money poorly. ho can wall street do it worse than what the government's done, give people the freedom to plan for their own retirement. >> the government doesn't bet against your investment. >> a lot of people would argue with that. you have an alternative that could keep social security in the mix. what is it? >> allow people, younger people to have the bulk of their payroll taxes go in their own personal accounts so sensible rules and diversification, as you get older more in short-term so you don't have to worry about stock market crashes. three counties in texas pulled out of social security, in the early 1980s. they didn't put a penny in the

stock market. those folks today retiring with 50% to 200% more benefits than they would have had with social security. when it comes to investing mutual funds, sound insurers and the trust i'll trust that over what washington does. >> and morgan, that gives people a choice. shouldn't we have a choice. it's our money, right? >> i love that idea and i'm all for the concept of a choice which is why i do think we should be reforming social security but i don'ts think we should be scrapping it. >> what about the choice issue? shouldn't we have a choice? it's our money, supposed to be a trust fund sort of like a savings account. obviously it's not. >> in a perfect world i completely agree there should be a choice. but i'm serious what i've been saying, david. we've got to see that the people who handle these investments, who take this money in and we know who they are going to make a lot of money are going to treat people fairly. then i'm with you all the way. >> i'll tell you the the congress and the government is not treated the taxpayer fairly with social security with spending all of that money and sinking it in u.s. bonds and god

knows where -- that's right. the thing i like about just maybe just 2 percentage points of the payroll tax you own it and you can basically also leave to the your heirs. you can't do that now with social security. >> the younger people instead of 2%, 8%, i'm talking wall street, mutual funds where you put the money in when you're younger, go to fixed instruments as you grow older. >> whoa. wait a minute. quickly rick, then back. >> what steve is saying is not giving people a choice, he is saying avoid social security if you want to put it 18 mutual fund. that's not a choice. >> that is a choice. you owthe money. you own your social security money and you put it into an s&p 500 index fund or -- >> a choice, rick. >> what is it about choice you don't understand? sounds like choice to me. we got to leave it at that, gang. there is a difference of opinion clearly. happy third birthday health care law. is there really a cause for

celebration? eric's crew getting ready to unwrap a new reason why it's not when they crash the party. first here on forbes, one college giving new meaning to higher learning. it's saying sayonara to student loans putting students to work instead. should more follow suit. we'll debate that next. my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams.

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you want to lrn, you better earn. the college of the ozarks in missouri is no longer accepting students who take out loans. instead kids who need money for school have to work it off on campus. the college says it will help solve our student loan debt program. and john thinks it's a good idea. why so, john? >> i think it's a nice idea. if kids are working through school they take it more seriously and also have a greater incentive to get out early to get in the real world. education is one of those common goods that oddly keeps rising in price. a big factor is the federal government hands out cheap money to kid who is bome -- they don't need care about cost so i think this is a nice change and hopefully it's copied. >> rick, don't you like it when colleges do step up with a new idea to try to solve this. >> yeah. i think this would be a wonderful idea. i would if it were practical in any way. college of the ozarks has 1200 kids, everyone of them is given the opportunity to work on campus in exchange for tuition.

you take that to my alma mater of the ohio state university you can't find 50,000 plus jobs to give kids. it's a great thing for that small school, it couldn't possibly work everywhere. i wish it could. >> but steve, the point is that all these one size fits all solutions don't work. that's what we've seen with obama care and a lot of things. this is for one college and should be emulated if possible because it's working there. >> yes. and other schools can come up with other ways to do the same thing. one of the things as john touched on with the government subsidies it's bloated administrative costs which is why the sticker price for tuition is going up at four times the rate of inflation. that's got to be stopped. this is one way. bless them. you'll see more of this in the future, three years instead of four years and more on line. the bloat is going one way or the other. >> isn't this better than another taxpayer bailout? >> i say no, don't cut off tuition lending, there isn't enough money in the system to

make every dollar of financial aid take the form of a grant. it can't work that way. die like steve's idea that incentives should be realigned. i would like to see every college co-sign any dollar of any loan from the federal taxpayer. >> good luck on that. morgan, is this a good idea? >> i do. i think it's innovative. more colleges should be playing around with programs. there is another spring arbesh university playing aund with loan retainment. it should be looked at across the board. i think it's unrealistic to think every college can adopt this. and cost of living as high as it is on the coast. >> but david, these things have to beone because college is supposed to give you a leg up instead of servitude and leaving school with mastiff debt. >> and one size does not fit all. this works for them so god bless them. college of the ozarks. pump up your tax refunds with

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