tv Cavuto on Business FOX Business January 5, 2014 1:30am-2:01am EST
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>> never going to get her a southwest flight. coming up next, kateoss cavuto on business. thinking about calling a doctor on obamacare, how about calling a ceo? hi, everyone. from the oval office to the corner office, according to reports, some of the esident's closest allies are urging him to hire a ceo to run obamacare. in a center for american progress founded by the president's own adviser, john podesta, so far the white house isn't biting, but is this proof to private market and not uncle sam should be in charge of health care in america. we have charlie gasparino here along with dana. >> it would be amazing if
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someone could manage the complicated process and hold someone accountable when they screw up and never make mistakes. it wouldn't happen because it would tip the hat of the white house and admit failure, but would it help fix this problem? ablutely. >> charlie, what do you think? >> it may help fix the problem. one of the things about fixing the problem that this gets put into wk and doesn't work. that is one of the problems that i think even if you -- >> but a similar -- the ceo -- the lousy system works better. the problem is, obamacare doesn't pay for itself. it's this rude gold brick sort of thing that makes no sense, and if you get someone to put it in place, get people to sign up, i think that's when it starts falling apart. >> ben stein, there's a whole lot of nonsense, company that is don't do well, they announce a new ceo, and if wall street likes the ceo, the stocks go up. could that help obamacare?
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>> well, if you could find a great ceo, yes, i don't think warren buffett wants a job. i don't know what other great ceos are out there. i think it's, at this point, such a complicated project. and what's the point of having a ceo. a ceo in a huge corporation gets a lot of money. a ceo for obamacare just gets yelled at. i think it's a political try to put in one more level of bureaucracy ani don't think it will help, but good luc at this point they need to try anything. >> that's if they want to try. adam, maybe even trying today would be a admission that you need some element of the privat sector involved in this. >> i don't think that, first of all, that the priva sector has a monopoly on the concept of chief executive officer or a top leader. our coury has a commander in chief, for example, and has had for the entire history of the republic. i also think, ben, your comment is a sad one, that no good executive would want this job
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because they coun't make enough money. because me people, by the way, as you know, like the idea of serving their country. because you worked in the government before, you can appreciate that. so i think the idea of having somebody run the whole thing is a very good idea, it's definitely worth trying. >> warren buffett is not an operational ceo, he's a great investor that runs a company. but we should point out that if was investing in this, he would short it because it's one of the biggest disasters we have seen come out of government. if this was anything like a private company, no, warren buffett would be shorting obamacare right now. >> but charlie, you're making -- >> you know that. >> i know that you are purposely making an unfair comparison, because, well, first of all, i disagree with you. >> it's a good program, the rollout was great. >> let me finish. i disagree that this will be a disaster the medium to long-term, number one. >> what is your timer? >> let me finish.
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to suggest that this is something to quote/unquote needs to make a profit ismisleading. you're changing the subject. >> what is your time verizon? five years? ten years? >> five years, yes. >> hold on one second, hold on one sukd. >> if this is not successful for five years, it is over. >> before that it might be over, but forgetting about profits, just making it work. whether you believe in the law or not, the way it's been administered so far, every single day, every single week, there's a hiccup and problem. this week if you have a baby, too bad. >> part of the problem is breaking even essentially and how is it going to get paid for. and so far what we know is that the people who signed up for this government health insurance or these exchanges, it's more older people and more people who are ill and not enough young people. and that is one of the instrumental parts of how this will get paid for, it will get paid for through taxes and the young subsidizing the oldnd sick. that is where this falls apart. we are already seeing that. so to say, to basically call t,
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adam, and say, hey, it's going to be successful, i don't think you can say that. >> okay. look, i get that. you're right abt that. but there are always -- hold on, there were always subsidies built into this. we always knew there was going to be a subsidy element for people who couldt afford to pay for their own insurance. this was never intendedo -- >> i will answer that. that is right, but part of the way it gets paid for is by younger people paying more. if those youngeople don't sign up, then it falls apart. >> they don't pay the check. >> adam, with the greatest possible respect, gm and ford gives me a car but when i turn the key, it doesn't start. without a subsidy, this thing doesn't start. a person would only do tis for money. >> look how this is set up. it loo like it doesn't work. it looks like it is internally flawed.
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and i tell you, if you're talking about five years that this thing might happen and you're giving us a rosy estimate, it's over in five years. >> jump back in, adam. >> i cover silicon valley, technology companies, i have written about plen of companies that make mistake after mistake after mistake after mistak >> this is not a product launch. you're comparing this to the iphone? >> that's exactly what it is. >> you're taking millions of americans health care and turning it upside down. that's not a productlaunch. >> how about the notion, ben, if the president were able to put aside his egg go for a while and put aside the need to have a bunch of fans in his fingers and so on, if he said, please help us fix this. would it be givenny kind of zmans. >> no. >> i would say they have the greatest genius that ever lived, and i don't know who that would be. toix it, maybe it could be fixed, but as charlie gasparino
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said, it is internally flawed. it just doesn't work. they are going to have to take it apart and put it back together again. and the best would be to abolish it and go back to the old system. >> b the way -- >> take it,degan. >> a good ceo wouldn't take the job because he or she wouldn't have the ability to make the hard core changes. a ceo wants to do one thing. if somebody's not performing up to his or her standards, they get fired. and if you work within the government, these are lifers, you can't get rid of tm because they are going to be somebody's crony and you couldn't show them the door. >> warren buffett would be shorting this. >> adam, listen, we've covered this for a long time, and you sort of have gone back from this is something that will help to save money to that it doesn't matter if we save money because it's the right thing to do as human beings. where are we now on this whole scheme of things? >> i'm sure you can -- mybe you
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can find the tape to prove you right and to prove me wrong. my view of what my position has always been and still is that this is a way to get tens o millions more americans health insurance coverage that we're on our way to, that's exactly what the goal has been. i, unlike you charlie, ben and degan, i'm optimistic. i'm an optimist. >> ben made a good point before, warren buffett doesn't short stocks. >> last word to you, be. >> they should not have taken a sledgehammer to the previously existing plan and smash it up. they should have just done changes around the edges. >> absolutely. i think that's what we should have done. >> you may call me a pessimist, but i'm not going to hold my nose to my shoe -- >> what happens when you hold your nose for five years?
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ready, set, hike! 13 states raising a minimum wage to sta the new year. this coming with several others already considering increases. charlie, this is not necessarily a good thing for the job market. >> i would say this, i'm a union guy, i believe in collective bargaining and believe unions should bargain with companies to get more money, but this is -- there is really good economic research that particularly when you raise the minimum wage from where it is now, it does cost jobs. i mean, in washington state, apparently they are raising it to something like $15 a hour. >> from $9 to $15 an hour. >> they are talking to people who are saying small businesses and large businesses are saying we are going to cut jobs because of this. that's insane. >> but you have two dynamics, den, you have the economic stud den and proof and certainly small businesses are saying, please, no, and this is a popular thing that's working. bill de blasio was elected on
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it. >> this is already going on as if the people are being squeezed and not being paid enough. this is happening at the state level and happening naturally. and the irony is people on the left want these unemployment benefits e tended to 1.3 milli americans in the newyear, but at the same time they want the minimum wage raised. so what do you want? because you should encourage job creation or raise the minimum wage, because again, it's going on the margin, it going to hurt creation of those kind of entry-level jobs. >> ben, here's the thing, a lot of people e saying it is just not right, it is just not fair, the minimum wage is too low to sustain a family. and in this country it's the right thing to do to start hiking it. >> well, it is the right thing to do, because the minimum wage is comically low. you can't support even a single person on minimum wage, but there's a minimum wage for a reason because the low skilled people, young people, people who can't do anything else, go into
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those jobs. that being said, look, i will say, i'm a huge consumer of fast food. i would generally pay more for my big macs and taco supremes in order for the people to make more. will it cost jobs? unequivocally without question, but should older, fat people like me pay more so young, thinner people can make money? absolutely, without question. >> it's the people that do keep the jobs and they are making more, but most of the small businesses, a large percentage are saying it's going to hurt hiring to degan's point, but you have fewer people working and the onesho work make slightly more money. is that the ideal scenario? >> it's not necessarily an accurate scenario. you know, you mentioned a moment ago that there's two dynamics at work. there's more than two dynamics at work. the studies show what the studies show, but the fact is is is a political system. you can pay for these people one way, charles, or pay for them another way. we get to decide as a society
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what we think minimum levels of, you know, comfort are. >> the free markets get to decide or do the people, do we get to start voting how private industry spends their money? >> is there a difference? i mean, the free markets exist a political democracy, at least in our country they do. yeah, that's right. these are expenses of the free market, of running the government of providing for the people in society. i know you think that i'm talking crazy, but these are real expenses. they are real expenses. and by the way -- >> we don't think you're talking crazy at all, but this is a way for theovernment to bribe w-income people to vote democratic. it's a perfectly legitimate way. the government also bribes high-income people to donate to the republican party. bribes are a familiar part of politics, but let's remember, it's a necessary thing, but it's also a bribe. >> degan, go a second.
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>> ben, you are not fat or old but willing to pay more for your fast food to pay for the younger people. but if you look at a large discount retailer, it's a different story. that a higher minimum wage could potentially hurt the prices that people pay, lower-income pay at these very reilers, or they are not creating more jobs to help that very person in the country. >> maybe i'm missing some of the economic data, but it's not good. it shows in almost every poll, every economic survey, every study shows when you raise the minimum wage -- particularly at the levels -- >> crlie, they're saying that it is just simply in the rich country like america, the right thing to do. >> right. and then more people $more people are out of work because of that. let me tell you something, especiallyow wage jobs, do you think you're going to get rich working at walmart? let's be honest. i am all for organizing, you know, basically going toe-to-toe with management and saying this
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is the way it works, but when the government gets involved it does have an impact. >> adam. >> do you think there should be no minimum wage, charlie? >> of course not. >> do you think it should be $15 an hour, adam? >> i don't know what the right number is. >> $15 an hour! i want you to know, i mde $3.50 an hour washing dishes at the silver moon restaurant in new york. that was a long time ago. >> in none of these states the minimum wage is index to inflation. if you're going to have one, that's how it goes. >> let's leave it there. was your new year's resolution to save money? let the forbes gang do it with its triple play. we'll explain that at the top of the hour. plus, what's happening in w york is not staying in new york. this was a big shock for his city and the entire cotry.
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wealthy to punish success. we do to create more success stories. >> yeah, that's some story. the new mayor of new york city calling to spread the wealth but charlie, i wonder ifs this redistribution actually does more harm than good for everyone. >> comrade bill de blasio put on an interesting display. that wasn't the worst of it. one speaker that called new york city a plantation. i mean a plantation? >> that was a reverend by the way. >> i mean, just -- this was a despicable affair. >> talk about, though, the policies of bill de blasio, the comrade as you call him, why it's so bad and everyone wants to -- >> well, the thing about new york over the last 20 years where we had progressive right of center but the progressive mayors. rudy giuliani and mike bloomberg who did great things. this city was heading to detroit and then came rudy and then came mayor bloomberg and this guy is looking to take us, his
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policies, are essentially what got us in trouble the first time. i will say this, here's why you have to worry about comrade bill de blasio. his campaign was built on a lie. new york city is not a -- how do you say the word? >> dekeynesian. >> dekeynesian hell hole. >> you can't make this argument if you can't say it. >> some people are saying maybe charlie's wrong, maybe it is the best of times and the worst of times. the best oftimes for rich guys like charlie but still so many pockets of poor in this country, let's try a differensystem because this capitalism thing isn't fair. >> but the capitalism is the best system there is. there's in perfectly fair system. god did not make life to be perfectly fair. i would like to recommend an author named charles payne whos has a website who wrote about this subject about a class envy and about the envy and how bad it is and dangerous in america. >> quickly. >> i remember that column by
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charl payne. >> quickly the mayor's impact will be felt in the biggest way how he handles the union contracts. about 150 bargaining units, about 300 employees. they're demanding retroactive wage as they don't have -- >> hold on. >> i know, but i'm saying if they have them over the barrel it will be felt. >> adam, what do you think about all of this? >> i think that bill de blasio is not abandoning capitalism, number one, despite what all of you say, and number two, tacks, ben, are part of capitalism, always have been, always will be, except maybe in charles payne's world. >> believe me, i've paid enough over the last it ten years. >> de blasio is so left, he's going to make san fran look like houston, texas. >> we have a lot of things to watch in the next five years between obama care a new york city. my thanks to charlie and dagen. up next forget about these fireworks. the fireworks on wall street last year had investors
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>> ben, what do you like? >> spiders discover the index you'll do great. >> ben, thank for the shout out and watching the cost of freedom continues on the place for business, you know what it is, fox. sit back and enjoy a new year show full of resolutions to save you money. first up, be it resolved, no more bailouts. as the individual obama care mandate kicks in new worries popping up that insurance companies will need a government rescue from obama care. here's a big reason why. so far nearly three times as many health plans getting canceled as the number of folks actually signing up and evidence those who are signing upre not the ones that insurance companies need to break even. this news comings we discovered our great american auto bailout was more about bailing out foreign car companies than saving the u.s. auto industry. fiat took a
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