tv Bulls and Bears FOX Business April 5, 2015 2:00am-2:31am EDT
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do you have a "strange inheritance" story you'd like to share with us? we'd love to hear it. send me an email or go to our website. "strange of your busy schedule. >> bye. they're loving that new deal in iran but some of our allies look like they want to run. france saying it wanted stiffer conditions. yes, france. and israel? >> such a deal does not lock you on the path to the bomb. such a deal paves you on the path to the bomb. the deal would lift sanctions almost immediately. and this is the very time iran is setting up its aggression. >> the reason why some here say forget lifting sanctions on iran. it's time for congress to levy more sanctions on them. hi, everyone, i'm brenda buttner. this is "bulls and bears."
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here we are with the bulls and bears this week. welcome to everybody. hadley, instead of planning to lift sanctions, do we need tougher ones for iran? >> yes. we certainly don't need to be fiddling around with lifting sanctions on iran at this moment. we need to see proof from iran they are willing to stop entirely with their nuclear program. we need to go back to our original negotiations goal. this is not a gift for iran. this is something we need to think about globally. the global economy is better off with we have geopolitical stability. we will be better served in the long run that united states can ensure iran is not on the path to nuclear weaponry. >> a lot of our friends are saying this enemy iran needs more sanctions, not lifting them. what do you think? >> if you took lee ray 12 fish he would complain because you didn't bring him 15.
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he is mean and angry. that's happening in the world. we need to let this thing see itself through. there are three more months before we see the conclusion of this overwhelmingly across the board, you've seen people say we have a process. we are getting things done. we don't want to send our sons and daughters into harm's way in this. if it falls through anything's on the table. let's see this through to the end before we start casting stones. >> you are right. it is still in development. gary b., the om reason iran came to the table was because sanctions worked. why lift them now? >> exactly. once a scorpion, always a scorpion. iran, north korea they can't help themselves. we cannot trust this country. what happened was when we had economic sanctions, you had a country with basically the economy in ruin. oil revenues consistently dropped off. they can't even clear economic
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transactions to the global financial system. you have inflation rate of 40%. these are crippling things that came about only because the economic sanctions. that's the only reason they are at the table. i agree with hadley. forget about any negotiation. you have two choices. either bomb them totally, which we are not going to do obviously. or you keep the screws on until they get rid of all their nuclear capabilities. >> jonas gary b. mentioned north career and iran. you say we can learn something from looking at what happened. >> how does this sanction policy work? north korea and cuba we've been sanctioning them to death. they don't have a pile of oil and gas to live on off to support the regime. once you got that scenario, the sanctions are never in the long run going to change anything over there. i would suggest getting rid of all the sanctions and replace it with tariffs.
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tariffs make money for america unlike sanctions which stop economic anything. they let an industry develop if a country. that industry puts pressure on their government to get the tariffs removed. you can move tariffs around like we do in china. there is no industry in iran. if you had companies exporting rugs to america all of a sud sen, we don't like what you are doing. we had 100% tariff and the rug companies are calling up the crazy people saying chill out. we want to sell rugs. it would be better for everybody to go more in a free market with tariff penalties in place when necessary. >> that is not on the table. john, what do you think? they sponsor terrorism. they support our enemies. they call for death to america, the elimination of israel. do we want to lift the sanctions or put the screws tougher? >> the sanctions are working. i don't understand who negotiated this deal. this makes neville chamberlain
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look like aces. we are sitting across from somebody with a pair of deuces. they tell us the negotiation terms? we can't touch their nuclear infrastructure? looks like we won't be able to inspect the military bases, as well. they hid one nuclear facility. they say they are going to turn that into a peacetime plutonium nuclear facility? we trust them with that? gary b. is right. they are 40% inflation. double digit employment. they are priming for a revolt. we made them one of the richest countries in the world. the reason they are celebrating is because this government, we just made sure that they are going to stay in power for a very long time. they have money to sponsor terrorism. they will have a lot of money now to sponsor terrorism. >> you can tell how good this deal is by watching what happened in the country this
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morning. the right wing newspapers in 2 that country the conservatives came out and said this is a horrible deal for iran. it's horrible for us. we don't need all these inspectors in here. when you can see the side that is not our friend over there upset with it, makes me feel like we made progress. we can stick our head in the sand. if you are not going to blow them off the face of the earth, we have to have a conversation how we live on the same earth as them. >> they were partying in the streets. >> that's right. the role of the united states government when we come to the table in these negotiations is not to hope everyone walks away with a fair or good deal. the goal of the united states government should be to look out for our nation's interest. the interest of our allies and global security. when we talk about this, it's not really our role to be the umpire or the referee or to make sure iran is getting a fair deal. they have their own negotiators for that. we have to look out for america's interests. >> maybe chuck has never encountered a bully in his life.
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the best way to deal with a bully, you don't negotiate with bullies. you punch them in the face immediately. then you go from there. with iran jonas brought up, what do sanctions do? i tell what you sanctions did in this case. it prevents them from developing their nuclear arsenal. they can't trade with countries like france and germany. they can't develop their weapons systems. they can't acquire electronics or enrich plutonium. no wonder they were celebrating there. they got all the good stuff and we got nothing in return. >> north koreans got nuclear sanctions. we could have played the sanction game in china and vietnam because they are communist. their governments are not perfect. yet we have a relationship a business relationship. we do tariffs if necessary. we got issues of currency. at the end of the day, that is a better scenario than if everyone walled off china and they were a totally nutty communist regime
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not doing business with everybody. that happens when everyone walls them off. >> last word to john. >> sanctions were working because they get moist of their money from oil. that is different from north korea and different from cuba. we absolutely let them off the hook. we don't have to have -- it's not a binary option. these sanctions were working. we have agreed to help iran fight isis. we have agreed now to make them one of the richest countries in the world lifting these sanctions and keeping those guys in power. it's opposite of what we did in the early 80s when we sponsored iraq which didn't work out against iran. we are sponsoring the other side. this is a disaster. >> sorry, guys. we've got to go. thank you. cavuto on business in 20 minutes. >> forget about terrorists over there. why do these women's arrests have us wondering who is here? >> remember taking the pilot down after the mid-air meltdown? now he wants the airline to pay up.
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mcdonald's the latest, lifting pay for 90,000 workers. that's not enough for these union-backed protesters. they wanted $15 an hour. what is that going to do to jobs? s. >> it's going to kill jobs. we just went through this in seattle where effective april 1st you had to raise the wages to $15 an hour. already you had numerous restaurants closing. just a few of them you had grub in the queen ann neighborhood little uncle the boat street cafe. that's just a tip of the iceberg. wages raise just went into effect. 33% of a restaurant's expenses are on wages. they only have about 1.5% to 3% profit margin. do the math. if you raise wages 50% from $10 to $15 guess what happens to your profit margin? it goes to zero.
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there is no reason to be in business. >> it's the first wave in seattle right now. >> exactly. >> chuck, why are the unions upset we are raising wages? >> let's stay on the math and do the back woods country math. i'll take the unemployment rate of 10% five years ago. now unemployment rate is 5%. profits are skyrocketing author these big corporations and big restaurants. i would throw walmart in there. there's been social pressure. they started to raise the wages. these are for the m mcdonald's-owned stores. when we were an economy we had a collective action against england to say we are not going to take this any more. if you pump more money into the back pockets of workers? they are going to spend that money and it will help the economy and help all of us. i don't know why we would be against people making more money. >> john, you have businesses deciding whether to raise wages
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or the government telling businesses whether to raise their wages. which one is better and what do they do to jobs? >> i think the business knows their own business. a lot of these are franchisees the not mcdonald's-owned stores. they can't afford to pay this. if you are talking about $15 minimum wage in seattle that doesn't play well in biloxi mississippi. it's hard to have a federal minimum wage. i agree with indexing to a basket of wages and to inflation but this fallacy if you look back to 1968, minimum wage would be $10 now. they cherry picked their numbers. if you go to 1988 or 1948, that is significantly below where it is right now. these companies need to know their own business well enough to be able to pay the wages. if it makes so much sense to pay them $10 and help the economy, pay them $1,000 if it really helps the economy that much. >> jonas walmart, target,
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mcdonald's all raising wages. it looks like we don't need a minimum wage. the companies are responding to supply and demand. >> and consumer behavior. unemployment rate has gone down because wages haven't gone up a lot. that is probably the main reason unemployment has gone down. if wages were artificially higher, we would have a higher unemployment rate. companies are feeling the pressure maybe they need to pay more than the market-clearing rate. maybe consumers don't want a $1 hamburger any more if they think it is being made in a borderline sweat shop environment. that is the natural way for it to occur not a federal decree. who is to know what the rate would be. and would it be appropriate in all markets? we had local markets go with higher rates. it's okay. they can handle it in seattle or whatever. most workers would be better if companies felt the pressure to not pay the least possible they can to get people to show up for
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the job. it has to come from consumers who have to pay more for their products. >> let's keep in mind the real minimum wage is always zero dollars. that's what you make when you lose your job, when people make when businesses go out of business. they are no longer able to create jobs to offer opportunity to get into the work force. businesses who have been raising wages are not doing so because of social pressure. they are doing so for business reasons. low mart did it to lower their quit-and-replace rate. they want to attract and retain the best workers. >> i want chuck to get in on this now. >> we can't have a race to the bottom. i agree. i run a small business myself. we should set the wages. i'm saying in these big corporations when you're giving 1-10 workers a raise if you don't make things happen, they are not going to give it. target, i give walmart credit. what hadley said is right. they are coming off a demand. we don't need a race to the bottom. >> quickly, gary b. last word.
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>> chuck makes the correlation between unemployment rate in the minimum wage. unfortunately it's incorrect. if you look at who was most affected by minimum wage, it's teenagers, particularly black teenagers. what happens when the minimum wage was raised? unemployment amongst that group skyrocketed. >> thanks guys. cashin' in just over an hour from now. what do you guys have coming up? >> the push to guarantee religious freedom for business owners coming under fire. should americans decide who to do business with and spark a holy war? >> not only are we letting illegals in, we may be teaching them how to join a union when they get here. >> we'll see you. thanks. we'll be watching. up here first, forget sneaking in. what if i told you your tax dollars are now being used to fly illegals in?
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>> from sneaking across the border to boarding a plane to cross it instead? a new report revealing the state department is flying children of illegals from central america into the u.s. if they qualify for the president's immigration executive action. john, good use of your tax dollars? >> goodness, no. i am blown away by this. i grew up in texas with hard-working illegals. if i could across the border and break the law to give my family a better life, i would do the
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exact same thing. there is a difference between that and going out and finding people and flying them here. rounding them up? this is one of the dumbest things i ever heard our government do. that's saying a lot. >> this is for the children in large part of the illegals here already. >> first these people are getting their work permits. let's clarify the people getting flown here are their children in only three central american countries where these children are in dire straits for their lives. they are flying families to be reunited together. they are only do that for people going through the process to get a legitimate work document. on the benefit factor i found out this morning at the social security administration, last year $13 billion was put into our social security program for people undocumented to pay for everybody's social security on this program. use my tax dollars here and don't give them to exxon. >> this is for illegal
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immigrants. >> can't they use a bus? this government has to waste money on everything. that is like $1,000. let's forget the morality of the whole thing. we need more people in america. we have a problem europe has, japan has where the population is not growing fast enough to keep up with the elderly people and cost of medicare and social security. is this the best way to bring more kids into america? probably not. it is something to consider to get our population growing to support our high tax and cost and benefit infrastructure. >> i agree, but we can't keep them out. they are climbing the walls to get in here. i think we are doing enough. these kids chuck has the violin out for they are getting free medical care. brenda, did our kids get all that stuff? no. they didn't get a flight to do it. if you feel so badly, you should give your private money to charity to help. >> i have to get hadley in here.
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>> don't you worry about what i do with mine. i do just fine. >> i think reuniting families is extremely important. i do not think this is the proper role of the u.s. government this would be a wonderful project for an international charity to take on to bring these families together. i'm pro immigration and reuniting families is a great idea but not on the taxpayers' dime. >> thanks, guys. thank you had land chuckley and chuck. self-driving car just completing its first cross country trip. now it could drive your profits higher.@?
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>>. >> predictions. >> let me translate the jobs number from friday. the economy stinks. but the 20-year treasury etf/tlt is up 10% by labor day. >> you like that one? >> no. i want to be in equities. >> and your predictions? >> kentucky finishes the college basketball season undefeated since 1966. led by the world's greatest military lead other colonel harlan sanders. >> what do you think about that? >> yuck. >> have you ever eaten kentucky fried chicken? >> i used to. >> with the cheap gas and everybody buying these
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self-driving cars, it's going to be great for businesses. michelen up 20%. >> neil is next. remember him? that face of evil might be dead, but has this become the new face of evil? alive and well and oh, man, not necessarily a man. welcome, everybody. i'm neil cavuto. so much for being the softer sex. two women arrested in new york now looking at the possibility of serving hard time. authorities say for something they were cooking up for a very long time. trying to build homemade bombs and set them off right here at home. they are just the latest. don't expect them to be the last. we saw this play out the same week we had similar arrests in philadelphia. charles payne says the bad guys
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