tv Cavuto on Business FOX News January 7, 2012 10:30am-11:00am EST
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i like it 25%. >> brenda: whew, 12 million bucks, what do you think, bull or bears. >> going to the dogs. >> brenda: is she building a driving range or what. >> time for a random drug test. >> brenda: and neil cavuto, take it away. >> well, forget victory or die. for these six guys looking to stay alive in new hampshire, it's pretty much about the economy. when i went out in the rear view mirror, it's a nonstop drive to new hampshire, but what did the hawk eye and granite state have in come on. both with rates below the national average. if jobs are so good there, why is the economy still the main issue for voters there and pretty much everywhere? >> well, here could be a hint. have you visited a grocery store lately? . to dagen mcdowell and charles payne and thanks to charl payne for filling in, not once
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cursing you, but i digress. >> i'm embarrassed for you. [laughter] >> and all right. here is what we said. on this issue, is it the economy? is it, a word for the president that it is? >> absolutely, it's a worry for the president and i've been to a store lately as you may be able to tell. you can say anything you want to say in the grocery store. no bleep machine. the job thing is-- >> and grocery stores might not have standards, but we do. charles. >> everyone watching the show, the dollar goes a lot less than it did a year ago. and the future three or four years ago, so that's why the economy is front and center and americans are still, very, very, very afraid. >> i'm proud of you, you made that that little soliloquy, by
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the way if you've got fox business you'll know what we're talking about. >> neil: i'm going to leave it at that. >> hallelujah and praise the lord. it's about charles pointing out deflation and home prices and weighs on america's idea about the economy and two, it's gas prices and last year, the average household paid a record amount for motor fuels, $4100-- 4150. 4,150 dollars, that's weighing on it not just the unemployment rate which is slapped on the front page of every newspaper. >> neil: adam, if you're the president and hearing that it's states that are doing relatively well by comparison, iowa and new hampshire and even a conservative state like iowa. abortion has been the top issue and prayer has been the top issue and right now, the economy is the top issue, wouldn't you worry about that? if you're the white house thinking, hey, these guys are firing on all cylinders and firing mad at us?
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>> well, i think to say that because they're below the norm in the united states for unemployment, is to say they're firing on all cylinders is two different things. >> if you're the president-- >> and i think they're firing on all cylinders. >> these people live in the world and they ever neighbors in massachusetts and friends and relatives elsewhere and they know that these are tough times, relatively speaking, having said that, we all know that politics is about momentum. i mean, just look at the number. if rick santorum had peaked three weeks ago then he wouldn't have tied or virtually tied mitt romney in the caucus and if he did, the momentum is clearly in the president's favor right now. as you have pointed out recently, neil. the unemployment rate is dropping and we did get a healthy jobs report last week and that's extremely good news for the president and i'm sure that the republicans, all of the republicans are, are very concerned about that, as they should be. >> but, you know, ben stein, to charles payne's earlier
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point going to the grocery store and doesn't jive with official government numbers and a person at a grocery stores, wait a minute, they say there's no inflation, but i have seen everything from milk and cheese, to cereals and all have double digit increases, what world is the government living in that it doesn't see my world paying a lot more? >> well, you're exactly right. i do the grocery shopping in my family and my wife does not like to shop and i'm stunned when i see the price at the grocery store and see the official numbers out of the government about inflation, as you say, they're living in some other universe, the prices are staggering at the grocery store and that's a price that almost every housewife or man finds himself confronting every day, it's breath taking, and to see that, and also to see, that there's still high unemployment. still a lot of yours friends and neighbors who can't go et job and china is supposedly slowing down and china i guess is getting at the price of
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foods, but maybe not as much as they were. but the prices are just astronomical. >> and okay, two things, one, if china in fact slows down, that will be the best possible news for this conversation. commodity prices will fall dramatically if china slows down. that wouldn't be good for the global economy, but charles, i would challenge you, i don't think a presidential election has ever been decided on the price of bread or eggs in the grocery store. >> jimmy carter. >> hello, 1976. 1976. >> with massive inflation, that wasn't a question of eggs and milk. >> are you kidding me, two back it back presidents, gerald ford in 1976 and the guy who beat him, running for reelection, is done in by inflation. >> inflation, i would agree, and unemployment only hits a few people, but inflation hits everyone. >> and adam, adam. >> i'm saying that is far more important than--
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and by the way, gas prices are nothing relatively speaking. >> you're wrong. as a nation, we paid a record amount of money last year for motor fuel. almost half a trillion dollars per household. >> you're citing an absolute number. >> and we paid a lot of money for motor fuel. out of american's policies and we didn't get back to the record i.t. in '08, as a nation we're paying more money than ever for motor fuel. >> and so, here is the thing, as the president's been taking his victory laps on the payroll tax cuts. he says something interesting more than once. and almost fell off my chair he said the payroll tax cut extension was make or break for this country. we're talking $20 extra a month, right, or a week for a household. $20 bucks. if we didn't get that 20 bucks according to the president it would have broken our economy, that doesn't sound like a strong economy to me. >> so, ben stein. you look at this and where we stand and the economic numbers that worry you and the events
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that happen and you mentioned china. what if all of this happens after the election and then it implodes on the president assuming he's reelected in that kind of a scenario, but it doesn't happen beforehand. then what? >> well, i don't think that the country will fall apart. i think there's a lot of ruin in the nation as adam smith said and the country will somehow get by, but i think the government is ignoring an at its peril the fact that the consumers are just furious about the grocery prices, especially when they see their home prices collapsing or they can't sell the house at all. i think this grocery price thing is it a big, big issue, and i think whichever republican gloms onto it is going to make a lot of progress with it. >> like a shopping court. >> right, or right around it in a bus with the price of gasoline on the side. >> it could be. thanks, a quick break here, forget about mitt being it in new hampshire and it is kim who is in. kim kardasian is more popular than mitt romney in new
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hampshire, we did not make this up in order to show the video. that would be cheap, sleazy. >> we're not above that. >> neil: we're not above that. >> but guess what, she's not outpolling me because everyone, including kim, will be-- and our nonstop coverage of the presidential race, kicking it off on fox business, a complete coverage of the new hampshire results and we'll have among others, herman cain and saturday, january 21st we're back at it for the south carolina primary, first on fox business ten to noon and back on fox business, 7 p.m. eastern time and you go go to another business channel and they'll probably be in reruns or inno merg -- infomercials you can buy a wok, but if you're looking to know what the hell is going on in your country-- for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be
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a sneak peek at one candidate's new plan of attack days ahead of the new hampshire primary and it's newt gingrich and taking on front runner mitt romney with a new way. the title is not romney. gingrich blasting romney's credentials, the ad claiming opposed former president ronald reagan's policies. and 11 policemen walk through the syrian capital. more than two dozen people were killed in bomb blasts, regime blaming the bombs on terrorists, the claims not yet confirmed and assad government vowing to crackdown on a ten month uprising. i'm jamie colby. back to cavuto on business. >> welcome to the electric car of the future. sponsored by the gasoline producers of america. >> hello, i'm an electric car.
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i can't go very fast, or very f far. [laughter] >> the chevy volt, unplugged. gm not calling it a recall, but here is a news flash. it's a recall. they're telling owners of nearly 8,000 plug in electric cars it sold to bring them in for enhancement to prevent batteries were bursting into flames and that would be like calling me calorie challenged. ben stein, you're about this, why? >> americans as a country are obsessed with cars and we have incredibly great cars and consumers are great at picking out great cars and we have the designers at all the car companies, every single one of them. why do we need to have the government telling us what kind of car to drive when we have the government, a bureaucrat in the government or a group of them telling
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them what kind of cars to drive in consultation with gm. we come out with a car that's very far from perfect. if the market wants electric cars, they'll figure out electric cars that work and so let's let the market handle this. my gosh, if we can't have a free market in cars, we're not a free market country anymore. >> adam? >> you, mr. cavuto, are obsessed with the volt. this is-- what, because it explodes and kills people? go ahead. >> and this is a relatively small and experimental product. it's very good that general motors is doing because one day. >> neil: we subsidized this with the gdp of most nations in latin america, what are you talking about. >> one day it could be very big for general motors and that's okay. >> neil: one day i could be fabio, let's get real. and it's ridiculous. if the market wanted cars, adam, they will in fact, buy this car. even with $7500 credits and
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even with heavy federal subsidies that reduced that price around 40 grand. they still don't want it. >> so, fair enough and i would just point out. we should be separating the fact that gm had a fairly good 2011, a good december sales report. >> no, you know what? and all their gas-- guzzlers sold well. >> and the volt still missed the annual sales target by 2300 and if they wanted to sell 10,000 last year and even with-- >> and the people who bought it are now on fire. >> and even though-- >> by the way, people do like electric cars and you do get this, the kickback from the tax break, but the leaf, the nissan leaf all electric and the volt arguably is better car sold 9,674 last year, it's not-- >> i don't care whether it's the leaf, charles or any of the other incarnations, if there were an appetite and a strong one at that for these
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type of plug in cars when the hybrid market is doing quite well. the market and the free market would have spoken and it hasn't. >> it has not spoken. again to your point. if gm wants to do with their own money, but we're so deep into gm and this is coming from the white house, period. no cost consulting with general motors management. this is strictly the white house's idea utopia. >> the task force said that the volt wasn't financially viable. >> that would be plug prince and-- but, all right. go ahead, adam, defend this, go ahead. [laughter] >> two things, one, the volt was on the drawing boards for years, nothing to do with the obama administration. >> it should have stayed on the drawing board. >> and furthermore, i covered the technology industry where companies release whacky products all the time, that are different from the competition, and some succeed,
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most fail. and that should be-- >> and you are astutely so like for apple. i can't believe that, by the way. >> thanks, neil. but did you know better than anyone here, that this on paper was a disaster, debuted as a disaster and continues to be funded as a disaster, something that would have never done. in fact, apple can charge a premium for its products because people want them so much. this thing could be cut to $100 and i guarantee you, americans would say, no, no. >> but i have seen apple introduce swaps, neil, i'm looking forward to talking to that when the book comes out. >> neil: but never subsidized by a u.s. taxpayers. >> an unusual situation with general motors. >> i'm sorry, i love it. i pine for a chevy vega in my dreams, so, i like go carts and i like it all. >> you'd have a mullet to drive that, right?
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>> by the way, you're to sit in this car. >> it is small. >> neil: i would be like crisco and away we did. and anyway, gas prices spiking as the threatening from iran. and has the forbes gang warning that no recovery is coming anytime soon at the top of the hour. next, if the white house wants to put america's kids to work this summer, why are we giving their jobs to foreigners? ooh. whee wheeeeeeeeeeeee! wheeeeeeeeeeee! whee whee wheeeeeeeeeeee-he-he-heeeeee! whee whee wheeeeeeeeeeee! pure adrenaline. whee whee wheeeeeeeeeeee! everything you love about geico, now mobile.
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launching a new summer jobs program for american kids. what if it really wants to put them to work. should it scrap a taxpayer funded program. and come get jobs here in the us of a? charles payne, what do you make it? >> this is outrageous, we spend so much money overseas and i don't get it, don't understand why this would be a major investment in american kids and don't have any idea about the pros of capitalism and need to get out there. california pass add law that they're going to be taxpayer money to spend on illegal immigrants to go to college and get their school books paid for and at some point when do we care more about the kids born in america? i just don't get it. i don't. >> neil: what was the understanding for this? the idea was to show, i know a lot of foreign countries, india is ticked off the policy that would restrict them and is this a bone thrown to them saying, look, we're encouraging your kids to come here?
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>> it's part of that. part of it encouraging kids come here and go to university and gets back to president obama wanted to spend what, a billion and a half dollars on the summer jobs program which was not approved and sometimes it comes down to just getting rid of regulations in place, or things that policies that are in place, rather than focusing on spending money and frankly, i think children in this country and the parents, too, need to focus on the kids working for free. how many volunteer jobs did we do when we were young? a lot of us did. >> i always insist that i get paid. >> really? >> no, but i'm not here to-- >> and ben stein? >> well, i just would like to make sure that parents know some basic thing here, which is the most valuable thing that you can have your child do starting when he or she is in middle teen works is to work. i don't think that the president's program of helping foreign kids work here is going to make much i am fact on the overall employment
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pictures for teenagers, but learning how to work is more important. more important than the history of rome, more important than learning the constitution-- >>. >> why do you cite rome? >> you might have chosen something different there. >> and learning, learning the history of singapore. but, work, work is crucial. learning to work. >> neil: adam? >> i'll just follow on the multi-cultural point. it's a good thing to show the rest of the world what the united states is, and this little program to bring people here is not a bad thing. we do plenty for our kids. >> we don't do plenty-- >> keep your reaction civil. >> we do plenty for our kids? ben hit it on the nose. we have a generation of kids learning about capitalism through movies and songs and bad tv. they need to go out there and get work ethics and understand what it is and get the money in their hands that they've earned and start to love it, what america is all about. >> you'd agree. >> government programs. >> many childrens are so
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spoiled in this country they're very picky about the types of jobs. >> oh, i know. >> neil: and the plan that gets to those kids from abroad to fill the wendy's jobs or burger king's jobs and probably more responsive to drive through orders. >> no doubt. >> neil: what's wrong with that. >> i know kids who dropped out of 7th grade and refused to work in mcdonald's and a wholing bunch of kids in this country who need to understand what it's about and let's give them a shot. >> and i had my head buried in ice cream. >> i almost got fired at mcdonald's, i made a burger this big one time. >> and the customer was neil cavuto. >> that was for me. >> up next, we've got companies starting to add jobs, add jobs that our gang says you should hire those companies. if you like that i came up with is the hot dog ez bun steamer. steam is the key to a great hot dog. i knew it was gng to be a success. the invention was so simple that i knew i needed to prott it.
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that? >> i like it because charles is choosing a company where union workers machinery on the united states. congratulations on that one. >> even a blind squirrel. >> what do you have adam? >> i know charles will love general motors are going to have a good 2012. stock is down and economy is getting better and sell more cars here and abroad. >> just no voltwhere. >> i love gm and gm cars but they are in a super competitive market. this year will be a good year for them. but down the road i wonder if they are up to task for asian competition. they are a fine company. >> ben, what do you like? >> i like an index, diamonds. and i don't think as they say
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