s well. >> stay with us for continuing coverage. the market roaring and the economy growing. so, is this really the time for more spending? hi everyone, i'm brenda buttner. this is bulls and bears. the dow closing above 18000 for the first time ever this week. the economy posts the strongest growth in more than a decade. what is the white house reported plan of action for the new year? more spending on everything from universal prepaid to housing, to energy to job training. it's throwing more tax collars at this kind of stuff necessary? we'll ask the bulls and bears, gary b. smith tracy, jonas,

john and david mercer. john, keep the spending going to keep the economy booming? >> absolutely not. the answer to all politicians is spend more money. the debt doubled under president bush and it's going to double under president obama. when you talk about things to spur the economy look at the track record of this administration. cash for clunkers, hoe refis. you have the stimulus for shovel ready jobs that never materialized. if you were in the top 10%, you love this president. if you are a corporation, you love this president. corporate profits are high because of interest rates. look at the other side. 50 million americans are now in poverty. 47 million americans are getting food stamps, up 13 million since the president started. black unemployment youth unemployment went up. spending more money is not going

to get done what needs to be done. we need to create jobs. >> david, you say to do that, you know why put on the breaks to rev the engine of the economy. why? >> i wouldn't go as far as rev the engine. you don't want inflation. why take your foot off the break. the budget has been passed $1.4 trillion budget. that was a bipartisan budget that passed. >> they are all terrible. >> if i might add, the deficit has gone from 1.4 or $2 trillion to now $500 million. >> why -- >> excuse me, billion dollars. that's good because it's not the federal government that is totally and wholly attributed for the games in the economy. and we have had private sector employment with 200,000 plus

jobs a month. that compares to the bush administration where they were averaging 20,000 jobs a month. we want to keep things going and keep the course as it is to see this kind of growth, which is comparable to europe, japan china and elsewhere is behind us. america is great keep it that way. >> gary b. is keeping america great mean more government spending. >> god, i hope not, brenda. seems like the past few administrations, whether it's the obama administration or george bush administration, going back to fdr, every government solution is to take money from our pocket and spend it themselves. listen, i might be fine with that if there was positive benefit. it's been shown in study after stud brenda -- >> you have seen benefit. >> hold on, please.

if you take a dollar from me and the government spends it you get back less than a dollar. two, where in the constitution did the founders lay out it's the government's responsibility, whether they do a good job or not, to stimulate the economy? where is that? it's the private sector. it's not the government's job to reign in inflation or tap on the gas or any of that. protect our shores, protect us from ebola, enforce the laws, then go away. >> gary b. -- hold on david. tracy, $18 trillion in debt. what is a few billion between friends? >> that's the way they think. why is it always we have to spend? why isn't it that we talk about tax reform? pull back the regulations. gary b. is dead on. corporate america, small businesses, that's where you get

jobs and growth in the economy. you want to help them create jobs, tax reform. cut back on the regulations. they are being strangled by new rules and regulars they don't know how to handle. get the economy going. get rid of the staples. step away. >> you have more jobs and spending. you have the market going to 18,000 points. that's the government being a player. >> the government made a mess of this. >> we are far beyond the bush years, that's for sure. >> you are not back to square one. >> bush basically doubled the debt. >> that is not true. these -- this fed has lowered interest rates to benefit the top 1%. look at the 50 million americans in poverty. don't talk to me about income e equality equality. this one has done the same thing and made it worse.

>> hold on david. david hold on. i want to get everybody in. jonas? >> we are digging for negative stuff. the income and equality. both sides here. david is right the president should come out. he can do the you're welcome america. do the victory lap. everything is great. you have to dig to find worse things than five to six years ago. health care and, you know unemployment rate is down to a level. unless you hit a bubble in the economy, you are not going to go lower. save the spending plan for the next recession. we'll have one in a few years, we always do. that's when you want to put the foot on the gas. if you expect the economy better than it is now, it's a fault. now is the time to shore up the books, balance the budget let it go. it is going well. we have done well. we are out of the whole more

than any other country that didn't do what we did. >> exactly. >> but, david, he's saying stop the spending. this is not the time for more stimulus. >> right. >> look, with a republican house and a republican senate coming in and with the election, you have a budget that just passed with republicans and democrats. so, no one is looking to go beyond what was the 1.4 trillion in the budget this time. as i mentioned earlier, the deficit has been coming down since 2009. so we are on the right course on the right track. let's keep it there. that means don't let your foot off the gas but you don't need to speed away. >> john, interest rates are so low, it's been fueling this. what happens when they start rising? >> when it starts rising, they said they are on pause right now. david is under the impression we are blaming one side or the

other. we are not. we are blaming them all. giving the politicians credit for theat is like giving fred flynnstone credit for the cartoon. the economy now is starting to do better. it has to do more with the energy going on in this country with low energy prices. better manufacturing low electricity. it has nothing to do with anybody in washington, d.c. >> you can't say that -- >> we have to pay for our bill, so we have to go to commercial. thanks, guys. did the government just serve these union backed protesters a super sized victory for the new year? and the job market fry. the cavuto on business at the bottom of the hour. up here first, the price tag on the president's executive action for illegals growing starting

with 48 million bucks, just to get those applications going. what?

as the president's executive action for illegals is pushing forward, the price tag is running up. they are spending nearly $50 million to hire and house 1,000 new federal workers to process the expected 5 million immigration cases.

gary b. you say this is just the beginning? >> brenda, it's happened quicker than we forecast. we talked about this on the show just a few weeks ago. in fact to a person on the panel, we said oh my gosh this is going to be another government sinkhole where more and more money, if they estimate 50 billion, it will be 500 billion. you watch, this is going to grow to the size of the state department department, the department of commerce, any other idiotic agency. we don't need it. in washington, the only way to achieve power, brenda, is to grow your agency. no agency head is ever come and said you know what? this year, we need less money. we can do with less. no, they need more and more. obama opened the fence for more and more illegal immigrants, this department is going to grow. guess what the money is going to come from? you and i. >> you say the administration

says the fees collected will pay for this. do you agree with that? >> this is basic math. i agree with what gary is saying but there's a revenue model. give 5 million people work visas and they have to pay taxes are you going to get $10 in taxes from them? that's the budget. doesn't that pay for itself rather than them not paying taxes? you are increasing the size of the government and increasing staff. if they can generate revenue, that's paying more. >> do you buy that? >> we have heard this story before. we heard it with obamacare. all the savings, everything was going o offset itself. the savings were going to offset it. that is so far gone. saying do the math is like a joke in washington. they can't. they don't know how.

they can't balance a checkbook. gary is right, you are going to spend three, four times the estimated budget. >> they know how to add. they keep adding. >> david, are you with jonas on this? >> i am with jonas. with regard to what was said by gary b., this is not the administration spending x amount of dollars. it's the person with their hands on the pursestring. that's congress. they are appropriating the money. better as jonas mentioned better to have them working and paying taxes which will offset the cost, as he mentioned earlier. >> the president put this through. >> this was in the budget. it could have been rejected as we saw in negotiations. it could have been rejected by republicans or those opposed to the spending and they weren't. this is not just the president alone that saw the merits of this program and is going for

it. >> see what happens when the republicans take over congress. john, is this money well spent or a waste? >> another waste. an executive action means the president does act alone. the president did act alone on this. we are talking taxes earned income tax credit you are not going to see tax decrease from this. this is what happened in '86 and '87. same thing. not doing a full immigration reform and dealing with employers who hire illegals this is another band aid that is going to cost the government a lot of money. >> we have to tax workers more. they got a tax break that hasn't gone away. there's a way to capture revenue from people that work but not at a high scale. some of them are going to make enough to pay taxes. we'll know when they start collecting taxes from them. it's a give away. they are already here anyway. all those costs are here. >> correct.

>> it's just the beginning. it is just the beginning. if you think it's going to end here, you are crazy. this is going to get bigger and more costly and more bloeted. the obama administration itself said they are going to recoup fees, they are bananas. it's not going to happen. >> it's going to pay for itself like social security is paying for itself. how is that working out? >> we'll make that the last word. thanks, guys. cashing in. just over an hour from now, eric, what do you have for us? >> antipolice sentiment in america. the worst since the 1970s. remember what happened to the crime rate and the economy then? should we worry now? plus president obama calling the sony hack attack vandalism. is that putting companies in danger? >> thanks we'll be watching for sure. parents listen up. if your kid gets caught cyber

bullying, the kids school got the green light to play your role, overreach or long overdue?e?e?e?e?

the crackdown that should have all parents listening up. starting next week schools in illinois have the authority to punish kids for cyber bullying even if it takes place outside of school. some states already do this. others looking into it. tracy, all for it. >> as a parent i will take all the help i can get.

everyone says you should be on top of your kids and reading texts and knowing what's going on. it is so hard in this world. they are moving so fast and in all different places. texts from people come in all the time. cyber bullying is rampant. it's mean and no kid should be subjected to it. >> is this the school playing parent? >> brenda, let's stipulate that bullying in any form is bad. we can get that. it's not the school's responsibility, though. what tracy said sounds good. kids do a lot of bad things. they watch too much video, don't exercise enough. does the school then encroach on that saying, you know, at home you should be eating more vegetables. we are turning this into a bad episode. remember "minority report" where he could look into the future. oh, you are going to do that bad thing, i'm going step in.

if it's not schools it's the government. >> but overeating doesn't lead to suicide. a kid eating at burger king instead of vegetables doesn't lead to kids killing themselves because they are being bullied. this is dangerous. >> it is a serious problem. david, what do you think? >> look, you have to have standards of acceptable behavior, be it at home or school. cyber bullying or any bullying, whatever the form of it should not be acceptable either at school or at home. i don't think one has to be to the exclusion or the other. the parents with the exclusion of school and we should have uniform standards. if i had somebody at my office bullying another on site or off site, they are fired, they are gone. they are creating a bad environment for the productivity of the firm just as they would be creating a bad environment

for everybody to get the proper education they are there to get. >> john, what do you think about this? >> just this week on twitter somebody suggested that somebody should kill me. i don't think there was intent behind it. twitter said it did not violate the abuse policy. if somebody saying i should be murdered doesn't violate the policy, i don't think cyber bullying violates it as well. this is serious cyber bullying not the death threat i got. this is different. i don't think the school should monitor it it should be done somewhere else. >> john i bet on you against anybody who would give you any kind of threat. jonas, this is a huge problem. many parents don't know when their kids are bullying or getting bullied? >> i don't know why we are asking john about getting bullies anyway. think about what we are talking about. i like what david said. if it happens in the private

sector, it's probably the right way to do it. the schools spend so much money on education, they should send nutritionists to our homes. if you post nasty things about another employee after hours, your boss is not going to be it's half 5:00 i don't care what you do. i think the logic could apply like public schools. they should be run like companies anyway. >> when did the school become an expert on cyber bullying. joe is my classmate, i don't like you. who decides? are the schools trained to be an expert on cyber bullying? i don't think so. >> the schools run badly. it doesn't mean they shouldn't attempt to deal with the issue. >> become experts it's to be aware of what could arise to suicide or other harmful things to the students there at school. >> thanks, guys. gotta leave it there.

thanks to david mercer for joining us. the hottest gift that is sparking worries for the faa but could spark a profit for you.

predictions gary what do you say? >> four words, go prodrones.

they are taking off, get it? it's the hottest christmas gift. i love go pro. i think it's up 30% in a year. >> jonas bull or bear? >> bear. >> john your predictions? >> stores like cvs. it catches up. up 10% by march. >> gary, what do you think about that? >> i shop at rite aid but i prefer wall greens in that industry. >> jonas, your predictions. >> we have been making political movies for years and all of a sudden this bromance comedy. this can't hurt sony up 15% in a year. >> producers dream of this kind of buzz. john, what do you say about that? >> i'm not getting hacked by north career ya. bear on sony. >> tracy. >> there's a study out that says kids eating fast food have lower

test scores. stop blaming the fast food industry. we have problems in our education system. >> if i order a whopper, i'm smart enough to fries. already, cavuto on business is up next. >> what do i want? when do i want it? what do i want? >> did the government serve these union backed protesters a super size zed victory? >> i'm in for neil cavuto. government news that could send jobs way down. the labor board filing charges against mcdonald's saying they violated their rights. could it violate all workers? gary k. >> this is the government picking