tv Cavuto FOX Business May 1, 2013 11:00pm-12:01am EDT
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jack keen will join us as well, good night from new york. neil: it's may day, do you know where the jobs are? they are not popping up here, a lot less than thought that got us thinking, if job growth is slowing, what else do you think starts slowing? but we have a recovery that housing come back or no, is hardly one to bet the house on right now. welcome i am neil cavuto, we all their saw this coming, maye when ibm announced it was buying back billions of its own stock and not hiring more folks, and american express did the same thing. about the same time apple chose to go into debt to the
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opportunity of $16 billion with a big bond offering rather than a single new job offering, a lot of companies chooses to did a lot of stuff with ample stuff, even alternatives. that confirmed in the adpnumbers today, companies are batonning down the hatches, they are not fires folks right now, but they are sure slowing down the hiring of folks, if this keeps up it feeds on itself, soon you on, this is serious. to art who is not laughing. >> i think it has been going on for a long time we have the single worst recovery in employment in history of united states it is continuing, why should the companies hire more people when they face higher tax rates and huge before kit government spending rewarding people for not working. this is a tragic sit of
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policies, and consequences are coming home to roost. lou: the neil: they do the best for their shareholders. they are not doing the type of things you saw with reagan boom or clinton boom. where they are nene enough it is a real boom, we're seeing little of that p -- of that to the poit there is none of that. >> there is no boom, they are antigrowth, and antiemployment, they keep doing it over, and over, and keep wondering why they don't get a different result, they will not, people do not work to pay taxes, people
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work to get what they can after taxes, there is no incentive. that is why they find best use of their money to give it to shareholders and shrink the companies that is what they are doing, reverse capital offering. they are selling their companies and shrinking it down. neil: then, you year-over-year comparison with that, you get just about as much blood as you can from the stone, you have to wonder with the growth comes from, many argue it comes from abroad, we're getting an indication, it is not going down nicely. >> it is not. >> reporter: neil: what is happening? >> in europe, it is worse. they are worse than obama and this congress it is tragic what is going to work but until someone gets a pro growth agenda it is not going to change,
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people do not work to pay taxes, if you pay people not to work, and tax them if they do work, don't be surprised to find a lot of people not working, the participation rates in u.s. have been faaling like a stop, especially key employment area 20-year-old to 55-year-old. neil: is this the best we got going. plane steady as she goes. meager vitra vivat sector job. >> this is the next few years until we get a political change, we have 2014 to look to, my view is iis in 2014, i think you wile a new senate, and i am hopeful we will get a pro growth
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president with a pro growth congress you will see a boom like never before. after jimmy carter who reagan took office that is what you need, it lasted from reagan then clinton, these 8 years of each president were terrific. terrific. >> were you drinking before you came here? >> i was not -- water, his water. neil: thank you, art lapper in tennessee. well, you know there is a flip side to it, weird as it sounds a good side to job slowing dawn, down, fed keeps punch bowl out just in case, that does not necessarily help stocks longer term, if you just provide artificial medication, the fact is that the federal reserve questionings economy, as bad as it was received today, could be deemed positive news longer
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term, company ber he said -- kimberly said that investors are hanging their hat on fed because the fed is the only adult in town, steven lee joins me as well, kimberly. >> you know, as long as the feds cease to really address the issues at hand we need main street and feds need to address issues of debt, until we do, that we don't have a road to recovery. and reality is as long as feds keep pumping money into the system, markets will go up, people will be happy, but it will be on false pretense, but, reality, as long as it happens, the feds are acting as a security blanket for stock market and everyone is happy short-term. neil: a lot of your colleagues say i want numbers to be like goldilocks, not too strong, not too weak just enough to keep the fed doing what it is doing. >> it.
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that like a pe perverted wish it it? >> totally perverted. median incomes in this country have fallen 10% in this decade, we have never had a decade where that happened. and where is the growth, there is so many wh areas where we can grow, apple, borrowing money to buy stock, making its company smaller, that was supposed to be the biggest product company, yes bernanke is doing what he character boosting the price of homes and boosting price of stocks, and that gives people some you know -- >> it is artificial. >> totally artificial. neil: what does this fall on itself..3 >> we've seen this before, 2002-2007. you had you know very low interests, and how did that end? in a total catta cattal ofta avt
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be a good ending, i mean, you know you have to incentivize the corporation to do something, you have to wake up and recognize that the infrastructure in this country stinks, it stinks, the grid on the east coast is like 50 years old, only reason it is not attacked it is so darn oil, one person does -- darn old, one person does not talk to the other, you could not do much damage. damage. >> there is this other worry, that is, that when you are looking at growth that is slowing to degree it is, and job gains to degree they are, leave aside the fact they mask a more serious joblessness situation,
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then that bridges yo -- brings u know another recession to mind. >> i think in long run, it is almost incandescent -- inevitable, i am not an economist, what feds are doing is focussing on short-term gain, and really creating a lot more long-term pain, and devastating pain for this country and growth of jobs and small businesses, until we start growing, and infrastructure, just like you know about the jobs and bridges, we don't have really real growth, this is like the government right now is putting -- pumping money into the economy. they think that it will be a
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goldilocks ending as you say, some day we have to wake up and music will be over, everyone is not going to have a chair to sit in, then it will be really uncomfortable. neil: what do you think that is? >> neil, it could be any time, it could happen tomorrow, if something goes wrong in europe, i mean in germany for example, let's sayeuro breaks up, all of a sudden strongest economy in euro is in a depression. the mark. is most undervalued currency in history of capitalism, if something happens in europe, germany collapses. now put that on top of low car sales, and 12% unemployment in europe, you could have a liquidity crisis, easily am i'm not predicting it but it could
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happen any time. neil: all right. thank you, i think. more arrests in boston, two on the left are in jail accused of rob strucking justice -- be be on truckinobstructing justice from kazakhstan on student visas, why were they here, a game changer we know a place where tossing and turning have given way to sleeping. where sleepless nights yield to restful sleep, and lunesta eszopiclone can help you get there, like it has for so many people before. do not take lunesta if you are allergic to anything in it. when taking lunesta, don't drive or operate machinery until you feel fully awake.
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is government takes a dim view of people who lie to them in an official investigation, i think they are trying to figure out, do they know anything about what the guys did a month or two months before, did they provide anything in way of material support. @% you look at 1,001, title 18, maximum penalty is 5 years, if you look at obstructtion of justice 5 years, they are looking to squeeze somebody to get them to talk. neil: for now. it has een to stuff they did after the fact, they hid evidence, i am no lawyer, one lawyer said my client you know threw away a backpack and a laptop so what of it. >> that is what a good defense lawyer would do, but facts remain, these are serious
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issues. the government realizes what they have in the kids, let me point some these people, these men made a decision. after knowing and recognizing photographs of their friend. they made a decision, well beyond age of the reason, 3 people killed, 260 wounded, a number of people lost limbs, they made a decision, a bad decision, they look their friendship over their public responsibility. guess what, they are going to pay for it. neil: there is a third suspect in jail, he is charged with lying to investigators. visiting dzhokhar tsarnaev's dorm room, they are all in jail right now, they have been for the better part of a week. you know, i think we chatted about this past, the countries
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that come up on the list, you should worry about, would you put kakhstan on that list. >> i would put every country on that list, you have hundred of thousand of nationalize british subjects, chuck chumer is busy talking about mexican border there is no integrity to process we're giving out visas not monitoring foreign students. neil: you can't look at all of the country, is that a region that would draw your attention. >> i will till you it would draw special attention but we cannot be negligent in the way we give out visas, what credible fear do they have, they are back in russia o voluntarily. this just follows a pattern where immigration once again failed. neil: someone failed.
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jack, com communication with oue agents, clearly fbi, had been looking at tamerlan tsarnaev, they had been alerted by russia, checked him out. really could not hold him on anything, end of story. that was not communicates to local officials, a suspect. having their student visa revoked. he still gets into country weeks after the fact. why the delays? >> i think the questions you raise are legitimate questions that need to be answers. director clapper, will look at it with his inspector general, to mike's point and your point, i can get you probably on two hands you can count number of
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leadinges that come from russia. there is an audit trail. a number of people have fingerprint on this communication, not only in wash -- russia, and washington and here, i do not want to criticize the fbi, i am from the fbi i am proud of what they did, at some point you have to take ownership of the case, we have to look what we had in our possession, if we did not do it right, accept it. neil: that was -- like before 9/11 something fell through. >> what fell through, i'll go back to immigration agile, if you apply for political asylum, if you go back to same country after you get legal status, you have committed fraud, we have had prior terrorists that did the same thing, ramsey youssef. a month before that attack,
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applied for asylum, lead on the application, kills two cia officers, and wound lead others and leaves the country,hat fraud is part of what an alien does it needs to be pursued there are no resources to pursue it, no en arrest to do it. -- no interest to do it. neil: i was thinking of case of friends of tsarnaev, meeting in his dorm room had they alerted authorities to their suspicion and clear knowledge that night, a m.i.t. police officer would have been alive. >> you know, end of story. but, you know, regardless of what the immigration situation. is and i agree with mike to a large erier extend. warning from russians of interesting, saying we know that person is coming here on join
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underground groups, and we believe he is radicalized. think about the consequence, i pause at this question, would it have made a difference if the lead had come from brits or french or saudis, this is because it came from the fsb that people are a little bit suspect, because they will question the motives of thesb, you can see how this thing gets complicated. >> if they looked at case once that information was there go back to director of fbi mueller said, more congressional hearings about sleeper agents, if they look add pattern of fraud committed it should have been enough. neil: somebody was not communicating. something fell through the cracks. >> from man who said, if yo want your privacy, get over it why the latest revelations of other involved in -- attack signal well maybe really get over it. before copd...
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neil: i'm fascinated by this, i see it on days like this. we got word of the 3 new arrests, market that was already headed down, hiccupped and went down more, trying to recover, it went down a lot more. never the less. it was a selling point. others have been added to this investigation. this is a routine reaction we see on this dow. but all former sun microsystem
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founder scott mcnealy knows, privacy is less of a concern when our safety teams to be in focus, what do you think how privacy ateast for now, appears to b be a nonissue? >> well, i don't think it is a nonissue. i think is it is a tough balancing act. i was quoted as saying you don't have privacy get over it, that does not eliminate the fact their two ends to the spectrum. other side and i believe that an imty greeds irresponsibility. you will have a hard time maintaining a civil society woo have to find the right balance of privacy and pr protect of liberty and privacy rights.
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a long with protecting the safety of the country, always a tough balanne to figure out where to draw that line, on the -- you see it both, on the private sector side, and you see google with their challenges with the e.u. and their new privacy laws then have you -- >> e.u. is dumping on google. do you think google has an out? or is it more worrisome for google? >> i think there is two issues, there is law enforcement. and you have to decide whether it is right for government to be able to access what would be considered normally unattainable data. to third parties. when do they have right as a wiretap. and they should be checks and balances to make it happen. neil: but there are not, a lot of times, there are not a lot of companies give this information
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to government, because, they don't want hassles. >> we have not caught up in virtual world where woo where we were in physical world, if go i into a mailbox, unlocked mailbox on a publicly available street, grab a self addressed addressed envelope, paper thin, sealed with spit, opened up and find a nonincrypted letter that is a felony, right. but you know what is the -- if google looks at your google mails and searches on key words and shares that with a company trying to sell something to you. >> what if it more sinister, i know, i just learned with this drop we had in market last week with the false tweet that president had been injured in a terrorist attack. there are alga rythms that
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search out words like terrorist, white house, president, injured, and whatever, then they, i don't know how they do it, the bottom line, was, it -- led to immediate selling, everyone got caught in the downdraft, who is to say that similar terror alga rythms can't and are not being set up to do just that, we have no control. >> yeah, again, that is where you know we have the ability to be fairly anonymous, there is anonymous remailers, and those things it getting harder, can go stealth, this is equivlatin to yelling fire, we have laws in real world you cannot walk into a movie theater and yell fire. that will get you a few extra nights for free somewhere, do we have t same laws on internet? neil: how do we know we don't. i know i sound crazy, but how do we know someone keeping track,
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boy neil cavuto, his e-mail, uses terror, key word, capture people's attention, and i am algorithm alerter, you know, you know what i mean, that is what i worry about this in push to go after terrorring and police keeping us safe, for good intention we widen the net to the wrong people. >> again that is -- do you want three-letter agents tapping into the fire hose twitter streams into the facebook, and google mail. looking for hints, you know computers can look through a lot of stuff, and hints, and you know you can -- the atlanta bomber or the original ricin poison mail ir, we get it wrong -- you know they are a big issue, this is a really, i don't envy, you know, fbi gets in real
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deep trouble for not figures it out ahead of time, yet they are under some -- there is a lot of data out there, you have no privacy get over it, even most stealth sleeper cell, is leaving digital footprints everywhere, whether it be on a 52 video camera or whatever, how much do you allow them to pap that ahead. time that get box to you know. give' your right to privacy for safety have you neither, that is by biggest issue. bigger government gets the more they can control not only commerce but your private life. neil: and the bigger the terror threat gets the bigger the government gets just by definition, you know. >> well, law enforcement has to step it up. >> right. neil: scott thank you are much. if this does not scare you, latest healthcare news will make you sick.
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well-known health care law. or when you buy not so pricey stuff, but herman cain said there is a birch more coming soon -- there is a bunch more coming soon, they are enough to make you sick. welcome back we don't know the half of it do we. >> we do not here is a t word to go with your terror discussion, train wreck, there are two, train wreck and sneak of taxes. the significant of that is that most people are not going to react until it hits them. you talked about medical device tax, that is one. medical device companies have been on alert about that one, how about the one that will hit
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all of the businesses that provide health insurance for their employees one called the cadillac tax. if you provide more than $8200 worth of healthcare coverage for an individual, you have to pay a tax a surtax on that because you were sogen o generous or employr noncompliance tax ta their is going to create a type of speak -- sneaker tax train wreck. they will feel impact like the beginning of this year, people did not react to increase of payroll tax until they looked at that paycheck. neil: it gets back to my. longer term that is government's goal.
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and president and those who push health care get their way. that is the government handling everything. >> that is where this is headed. neil, i have a audio in president obama's own words, that says nars where he wants to to is a sine pair system on his way, what i would like to encourage business people to do, is don't just figure out, how it going to impact you, do something about it. job create or network, give employers a way to communicate to employees, because. yes don't realize yet, that the impact of obamacare could cost them their job. neil: good for you. >> go to job creators network and figure out how you can help communicate to your employees.
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neil: i thought of you, because you had nothing else to do, you are doing some good. thank you very much. >> thank you, neil. neil: herman cain, has been right every step of the way. >> all this time, tablets are gadgets on borrowed time, in less than 5 years, maybe out of time, you buying it, we're blitzing it. mowing your lawn isn't always easy.
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too soon. those folks saying that just bleeding users away, not the case. what do you think? >> i am not a buyer, ipo at 30. it got as high as 45 to 27, i said this at ipo, i am not satisfied they have a way to make money and grow their earnings, overtime. added to which comre their advertising to conventional advertising like -- or traditional like tv and radio to me just not a cost effective. not a buyer of facebook. neil: they brag their 9 you know00 million members worldwide. gary does that make a differen difference. >> numbers are impressive, but key number is that people logging on, they are adding users, are have doe minished here in u.s. and in canada about
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6 or 7%, so it is easy to sign up on facebook but you want people to stay on, and have the site be sticky people are not doing that, i think it is like. neil: what is the daily user mean, that has gone up 26%, you talk about users going away. what there i is a disconnect. >> people are signing up, they are active for a while then these numbers decline. i think, i agree, like a hot retail stock, for you know teenagers, a lot of other things like myspace, and aol, hot and a fad then they get tired and move on. i would not be a buyer. neil: issue two, are tablets about the to go the way of sony
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walk man, a blackberry ceo said that in 5 years tablets will be obsolete, what do you think? >> i think this sounds crazy on the surface, below and above the surface, this is like architect of titanic saying it is unthinkable, blackberry had their shot, it does not work out, now sounds like sow are grapes. -- sour grapes, i think tablets will be smaller, foldable, you put them in your pocket. what is going do see the decline is the desktop computer. neil: if you listen to this guy, he almost sounds sinister, he is not, but ty he said, people would love our devices, i am thinking he says we go smaller to phone-like devices, that sort of thing and still small we don't need anything more than
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our phone. >> you have to consider the source. with blackberry, they took almost a 500 million write down because they could not sell tablets. i was at my child's presentation there were so many ipads filming it i could not see the stage, i watched on somebody else's ipad. neil: they did not know who you were? you do not have a say the up front that is shocking. >> it is amazing. realty, is. th i don't see the trend going away, i see sales continuing to go up. neil: issue 3, auto sales, we have double digit increase across the globe, makes me wonder, whatever is scaring us on job front not so much on the car front. gary, if we believe the numbers for now, we're buying cars. >> we're buying cars. >> you know cars are in a good
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pot right now, people have to replace their older cars, they break down, they you know, you need to replace it, and i think that big advantage, both lease rates and car lone rates are very low right now, i had a lease on a car that expires 10 months from now, my dealer called my up, said i can put you in something better, and cheaper right now, because they made the you know still making good money off of the lease, of it good for me, and so, i think, autos are a good place to be right now. neil: my guy did that too but it it was a wire deal ty, what is going on with autos. in slow job environment, that growth is slowing. this should not be happening or should it? >> we have three basic need in modern world, food, shelter and transportation, cars are a big part of that some big lenders
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are gm and citibank. they took government -- and the average car on road to gars point is more than 10 years old, 15,000-miles a year, that makes average car with 150,000 miles and cars wear out. neil: you left out cable business news is the fourth basic need. >> absolutely. thank you. very were. al gore is warning that earth is melting a few hundred miles away from denver where it was -- snowing! snowing! snowing in april, you hurt my feelings, todd. i did? when visa signature asked everybody what upgraded experiences really mattered... you suggested luxury car service instd of "strength training with patrick willis." come on todd! flap them chicken wings. [ grunts ] well, i travel a lot and umm...
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>> the generation of people alive today will be held accountable, our children and grandchildren will have an occasion to ask one of two questions, what in the hell were you thinking, and what in the hell were you doing? neil: al let its rip. telling a swooning crown in california if we don't fix the climate mess we're in a fix, maybe gore did not realize it was snowing in denver, and south dakota, this string is starting to -- spring started to be the second coldest on record. so, they were confused, so is meteorologist joe, who is not buying it, joe, what do you make of this. >> well, my wife wants me to
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remind everybody. it's global warming, they keep shifting what they are saying, it was global warming, that was causing this, then to climate changing, and climate disruption. neil: you can always win with clate change. it changes of day, like finding a nicer word for fat,. but my point is you could put any word you want ont but it is still wrong. >> right. you hit on the head, i feel bad for add gore, he should call me to plan his evens better so he does not show up when record breaking cold comes in this is coldest late season air mass, people say joe you are cherry picking, the orchard on so ripe. we could go on for hours, co2
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continues to rise, but global temperature has leveled off, we see how bad computer models have been we were living in a world of virtual reality, they bought models, and assign warming that was occurring naturally from warming of oceans to co2 is it leveling enough, and dr. ryan maui has designed a chart that shows you where temperature has been going last 5 years, and global ace index has been coming down, that is the tropical index. as you these things that are being said are wrong. i would like to ask, why didn't you tell us this before? if you tell me it is -- if not for co2 we would go into an ice age, make your darn forecast, 4 years ago i came on network said we would turn it around with a trend else crowtriple crown of 0
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it will be back to where it was in 197 they talk about grandchildren a hundred years from now water here and there, no one is verifying the forecast, they are not responsible for what they said years ago, they ignore it. >> all right joe i am putting you down as maybe on al gore. but always good to see you. >> i don't want to demean it. but we're going to debunk their argument. neil: well he is nuts by the way, but that is me, joe, thank you very much. >> may day, jobs day, seen any one of those today, keep looking. because they will keep
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to help out pretty much everywhere, but aren't we in the pins we are in because, well, lot of us are already too dependent on government, and no government is saying we can't keep paying for this. what do you think? >> i think it is lazy uniting. neil: that's nice. >> welcome i'm just saying. there were not a classic debate. i walked out of grand central station. it was lady liberty. in effigy. you could tell they were mad. they were cursing americans. i'm thinking, you know what, then a few good jobs. my first job, made was crummy, terrible. no one wanted to, but i took it because that's all there was. know what this is. and from indiana. you have to reach up. you have to pull the tassels out.
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all these people could work. neil: labor, worldwide, the working man and woman, celebrate with and contribute to the world. a lot of them feel that their contributions are not being rewarded and render it governments are now cutting back. and they like it. that's perfectly human to but they don't see the reality. >> i have to disagree. some of those folks in indonesia are making $50 a month, yet they are working eight, ten, 12 hours a day and not even allowed to talk about anything other than work. working really hard. neil: the was going on in europe >> i think workers around the world have spent the last 30 and 40 years watching corporations and the wealthy get wealthier while their own wages are stagnant. i think it's government's fault. i am actually against government here because they have not been doing their part in making sure
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that benefits and wages keep up with inflation. neil: something is happening because there is that which you alluded to and a lot of workers are taking it on those who are doing well. and they think that governments have to do more to make up for that or at least go after, tax the rich more to even things out. what do you make of that? >> i think the last guest was right. in one weight was government's fault, but the problem is government is doing too much. what these protesters should not be asking for is for government to do less. it is pretty good at making it harder for employers to hire new workers. we're seen in the united states. benefit programs that make it easier to the unemployed. neil: shaking his head. not buying it. >> easier. >> the trillion dollars bank
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that they are not doing anything with. the welfare of shoring. neil: wire they doing it? it does the environment for which there will be rewarded. >> want to hold on to the money and not give a share of it neil: would you spend your money in an environment like this? >> the folks that are actually making that money, the laborers, the folks that are actually spending the time making sure that those corporations can make that money, they're not getting a share. neil: people who invest. >> nothing. and up there's anything wrong. we can give a really good return on investment of folks and not treat workers this way. there is tons of money out there. twen to $30 trillion in production. neil: just want to redistribute the loan. >> folks that have earned that money by working. >> exactly. >> to have bn working eight, ten, 12 hours a day.
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>> the company that we are telling you about the does not allow people to take breaks and talk about anything other than work are making ipads. i love apple. neil: do you rectified the gap between the rich and poor about punishing the rich? in other words, taxing the rich more because obviously it is disproportionate. getting more gains. >> bucket what is going on with france. the rich and everyone, 70 percent. being redistributed. neil: not getting any more money >> not getting any more money, and people can only work 30 hours. that sort of system does not work. neil: and really could, i guess the fear seems to be that we -- the adjustment, even minor adjustments are not welcome. >> what governments are doing is king it harder in europe. made it very difficult for employers to fire people. so that raises the cost of employing people. here in the united states if you look at the service of small-business owners, small
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business is tually creating most of the new jobs. neil: achieved much more. >> economics. neil: all right, melissa: i'm melissa francis, and here is you made "money" today. investors with safe haven assets. big news. it could extend its bond buying program rather than winding down, but that economic data one the day with the yield on the u.s. 10-year treasury falling three basis points to its lowest level since last december. also making "money," a humanity investors with profits nearly doubling in the first quarter. less medical treatment than expected. stock was one of the few bright spots in the market with shares jumping more than four & on the news. good for shareholders. and maybe making some money. fe
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