Cashin' In: February 18 edition
Calls to privatize jobless benefits grow as costs mount
- Duration 18:54
- Date Feb 17, 2012
Calls to privatize jobless benefits grow as costs mount
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Nearly one and a half trillion bucks that is how much the federal government -- shelled out and jobless benefits over the last fifty years.
Now congress is planning and up thirty billion more this year and someone -- says it is time.
To get the government out of it completely and make Americans by their own private unemployment insurance hi everybody.
I'm Cheryl Casone and walk in the passionate.
Our -- and -- this week Wayne Rogers Jonathan Hoenig Tracy Byrnes and John -- also joining us.
-- got Fox News contributor.
-- -- up and all of you all right Tracy do you think it's time to get the government out.
The unemployment insurance business that -- would say taxpayer money in your assessment cracked well look I mean it would save one point five trillion dollars and that's.
We paid since 1962.
Scheck I think they spent over three billion dollars alone just -- administrative costs each year.
And think about it you look at consumer and charge of their insurance thing really Smart choices they don't think -- -- -- debit.
And stay on these so called government dole for 99 weeks that some states allow them to do right now.
So maybe if you pay more to come out of your pocket you think we're -- -- home watching TV all that Jonathan this is actually happening at an all places Chile.
That is what they're doing and show and it's actually saving -- got.
-- that money so -- Arkansas where.
-- a private at unemployment insurance market happened right here in this country before 1935.
With the creation of unemployment insurance and Social Security.
I mean you keep calling it we keep calling it unemployment insurance it's not insurance insurance is a voluntary choice to Trace -- -- -- individual corporation would ever decides to buy insurance.
This is attacks yet another tax rather break dropped a government bureaucracy entitlement state it needs to be done away with we need to go back to.
Pre 1935 when companies like Procter & Gamble General Electric and others offered up private insurance to their -- You know -- -- -- imposed an investigation and and the DC area I have a lot of fraud that was city employees there.
And that happens across the country that's another way that the taxpayers having to pay for this program what it did it -- the.
Look -- it I'm open to any solution.
Us and get working people of who have been kicked out of their jobs back on their feet and working again I think that's what we all -- -- say.
You know the concern here I think that everyone would have us.
Before we had things saying like Medicare and Social Security we left those on on people's individual shoulders we -- widespread poverty among seniors.
And and also their venues -- -- -- -- independent study last year that said when government -- -- benefits like this.
It actually ends up paying more -- that the because you're factoring in private profit because you're sort of it ends up costing people more.
And we're not saving money if we're then say well you're gonna lower your taxes -- to pay at your own pocket.
Not to mention the fact that look nobody ever thinks they're gonna lose their job.
So nobody -- -- people -- the option they don't -- insurance.
And then sort of like when you don't -- on health insurance and you end up you know offsetting those costs because demand free care at the hospitals we.
The state ends up paying anyway public certainly -- the government can do what they're gonna probably do it health care that's just force everybody to buy it -- they could do that they are congress they are that the city.
Well the government can do and -- that's -- biggest problem we have today is protecting ourselves from our own government.
You know you mentioned -- of the Chilean.
Solution and that's a very good solution where it's a mixture of of both private and and a government insurance of that seems to work in Chile.
In spite of what you may thinks.
It did it take it's a working system.
Secondly the other thing that's -- biggest problem we have is the fraud that's involved in the and the federal system right now seventeen and.
Billion dollars in -- That's outrageous and the administrative -- -- they spit in 2010.
According to the head to the Labor Department.
Five point nine billion dollars just to administer this thing that's insane that means that the cost to this and you're telling me that the private sector can't do about a job that let this not a not one federal program that the private sector cannot improve on John.
How do you think that it's a good idea at -- it leave it to employees say that there -- -- choice.
What -- be a good idea to leave it to employees to to opt in or not and unemployment insurance.
Yes I think in theory -- is correct I agree with my friend Jonathan -- before 1935.
This was done privately the problem -- -- 1935 we have very much more -- world.
This has been -- they have run test balloons on this to see if -- insurance company.
Was willing to do this and nobody was a taker -- this we're very litigious society.
This will be a nightmare for a private insurance I am for reportedly says the problem.
The probably have -- the connection structurally high long term unemployment.
This country is not built for that.
We're built for -- -- -- the greatest this is not well for this is actually what they look radiant the problem is we have makes it and it past that now and that's our dealing with now.
Not weeks is -- point.
Look simply not true that private companies wouldn't offer health insurance in fact back before 1935.
The unions if you can believe it -- amongst the biggest proponents of offering private health insurance to -- members were against the government program because -- They thought it infringed on -- private liberties.
And lot of companies want to offer and fortunately the government's.
Metropolitan life in New York for example.
Didn't allow them to offer we've insurance companies companies -- all types of coverage why could they offer of employment -- And I know that that's a good point -- -- and make money off of big and it may be dangerous companies won't do you find some fat as a capitalist out there was in only his -- wanting to be an honest mathematically I'm just work.
Americans don't let them but that's the thing you -- think you'll have to change that and allow that to get up the government -- get the people -- the governmental.
That is the problem right now because there's no consented to go back to work.
-- right about the broad nothing is helping and structurally it is hurting the economy you know.
I just say first of all -- fraud and every sector and incidentally whenever there's from the private sector doesn't whenever so we're gonna -- capitalism out the window either but they are lucky -- but -- -- -- -- look like he's got more broadly look first of all.
You know the suggestion that well there's administrative costs in the public sector and there wouldn't be administrative costs in the private sector and that somehow you know you're you're maybe cutting -- government -- putting in private profit interest.
You know people only gonna do this -- they can make a -- -- there's gonna be administrative costs and the private mark but it.
-- -- it would be paying kids yeah always wants to get it here but but but the -- that -- that they it would be paid into though.
Because if you think about if you don't lose your job and you by the insurance that covers the it.
Ministry of cost -- that's how it's paid for an 8888 excuse me but then I go back to the Chilean example you all seem to ignore that it is working and it is a combination of both public and private and as far as -- it is it's public and version of -- go.
There many instances the United States where private for example a -- this city of Scottsdale Arizona.
Privately contracts flood they are fired up protection -- and it works it's cheaper then the then -- they would doing with the public so you can't just automatically site.
All well the public -- the federal government can do about job they can't.
It almost -- -- texts and Yousef the taste is on the record showing that.
Jonathan must -- I think it's a false comparison I think it's a false comparison to compare government.
Unemployment insurance with private insurance more.
More more than anything because government insurance isn't voluntary.
You're forced to participate.
That's -- government is its force people wanna buy private insurance that's their decision that's their right that's the foundation of what's the country was built.
It's an interesting that the and other countries in eight minutes all right -- great discussion thank you very much while.
How taxpayers bailed GM out now GM is handing out 7000 dollar -- but not to tax payers.
Plus airline's top -- -- they're losing you are bad but the reason why is actually terrible news for fliers.
Bailed out and now shelling out General Motors making a record seven point six billion dollar profit last year but instead of sharing it with taxpayers it.
Still own a quarter of the company.
GM's doling out 7000 dollar bonuses to more than 47000.
Blue collar workers Jonathan do you think this is.
-- -- to the taxpayer it was there for GM two years ago.
Yeah I mean a tax Payer is being screwed Cheryl by the president and GM is touting these wonderful profits success they've had.
The taxpayer is down literally.
Billions and billions of dollars on its so called investment in GM -- bypassed -- rise a 100% plus for us even to break even.
I don't think the problem however is with the bonuses for say but the very fact that we are and continue to be.
Unwilling investors in this company the government should sell the stock get the heck out of private enterprise and promise no more bailouts for -- Interesting phrasing -- that he is saying unwilling investors in this company the company though profits were up 62%.
Last year so -- actually doing fairly well but yet the taxpayer still a major stake -- us.
That's the Mets last yes this past year it's done well look -- -- that those.
Fat lady hasn't sung is at war.
-- GM is not out of the woods you've got -- understand some General Motors went through bankruptcy it didn't go through the bankruptcy did was because the feds came in at bailed it out because.
That guy who's in the White House what's to get some votes that's how that happened.
Ford Motor Co.
did not take any money.
Ford Motor Co.
did not take any money did not go into bankruptcy and they are very successful even more successful but General Motors so we're still paying -- general mode as we know -- -- this -- But they've given the money -- the workers instead of paying back that the -- -- -- -- as we might as well have just written a check ourselves that the work.
And that upset me less clear about these numbers we -- and 49 point five billion pounds into that's not -- -- -- You got problems.
And it's not you've got twenty seconds it's got good at 53 John at this point before we see them last have a aren't that may come back that's and we have right.
They're losing sales overseas sales here in the US are slowing down.
So this is not going to continue like it -- -- shut the lights up everywhere and cup plus everywhere they could.
To get -- bottom line up but my line we are not seeing that kind of -- and Sally Beauty.
There's 7000 dollar checks that are going out to blue collar white collar workers are having their pensions -- -- -- get bonuses but there today is being frozen for them so there's a little bit of a disconnect between.
What got -- -- -- general my.
But also look at -- in exchange for those sort of whole rescue package GM the you know blue collar workers also took huge cuts in terms of their benefits -- their -- so I you know everybody.
And also -- -- seven does not -- obviously it's not an either or they wouldn't make up for the money that the government isn't just -- be.
-- I -- -- on this want first of all two points number one nobody complained when the banks that we're not I'm.
I complaint but I'm not -- any of you complain when the banks that the American taxpayers bailed out.
Went paid their big bonuses millions in that yeah -- yeah yeah.
-- Untraceable cell that was not necessarily the -- -- AIG -- and a few friends then paid its own event before it paid about the taxpayer and I wanna -- But let's second point is you know gee what what -- blame the president for wanting to invest in American jobs and bring back American manufacturing it's working the company is profitable.
And I don't think a single American is gonna begrudge.
Those hardworking folks are helping bring that company back for getting a small bonus in the back on the already -- John -- this again this of the company that is now making billions of dollars in profits but still the government is back it back stopping the company financially taxpayers would like to be out that we're out of -- game now.
Can we get out of -- auto game job.
No we can't a job and tracer rise Gotti fifty some dollars stock before the -- gets their money back we -- about thirty billion dollars left in this company.
What Sally brings up as far as the bank bailout that is complete non sequitur but that's the great talking point politically.
We had two separate issues here we have the -- -- and we have General Motors.
This amount that they're giving these employees is about 300 million dollars debate over seven billion dollars last year if every company was run as a meritocracy.
And I agree with the way it's unfair of sport it's not very UPS and FedEx that the government -- that you yes -- also.
But against -- may run as a meritocracy I 100% for giving these guys.
Bonuses -- instead of increase in salary.
All right cellular business has now.
Please look at it -- -- that I had a quick.
It it comes down once again to force now is talking about the president making investments in a capitalist economy we make investments as individuals the government doesn't make him on -- back -- And the fact that the government is actually lost tremendous amounts of taxpayers' money.
-- -- -- -- -- I just don't know how one can defend -- I don't get the last word because to -- -- -- on the stock.
We -- far away at this point from a business perspective though the taxpayer -- -- on GM that's that's pretty hasn't -- and we don't know how this is good and but the larger point is we know our government makes decisions every single day that none of us would like to backstop all kinds of businesses from big oil to the banking industry.
Here they made an investment in American manufacturing American jobs.
I celebrated my -- that that it didn't.
They get out and it.
And attacks for -- I know it guys thank you very much wealth -- -- oil anyway let's let the number of bags that airlines losing -- down but don't put the celebrate because something else.
-- -- -- Have another airline setting a record low for bumping passengers losing luggage but this good news could bump up -- even more plus.
How -- billboard -- my rescue homeowners.
From seeing more of these -- -- driving with your bags in -- report finding that last year airlines -- -- and fewer passengers of closing fewer bad.
It -- because.
There -- fewer flights and John -- -- you say that also means that Johnson an airfare sales now.
It's got to be looked a bit over a 110 billion dollars in bankruptcy and airlines over fifteen airlines over the past decade.
This sector has not made money since Orville and Wilbur first flew -- -- up.
Over a hundred years ago it is -- poorly poorly run sector the problem is they've got to price this correctly this is not mass transit -- you've got to give our basic you've got to make money.
And to Wayne's point for years -- here competition is what will fuel this -- make this better companies before created Southwest Airlines and jetBlue.
That's what we need now higher fares are going to rise.
Know -- I mean they actually have one of the best on -- on time records in December ever but.
They have your flight.
Well you know it's a free market.
If the airlines can't make money did you get them and -- do you think all -- you've got to pay more for the F Reagan debit card go bullet train you know that well there are all kinds of other means of transportation.
It isn't mandated that you have to fly and that you have to pay a higher price are all priced its competition like John says the competition obeying the price down that's what works in a free economy that's what should be done.
But I just think that the consumer I have a breaking point -- -- -- I mean you can only hike up fare so much and not always successful airlines are in -- -- Well they're not -- although air travel still is -- I mean we all like to complain about it the fact of the matter is is that.
In 1979 average cost of flight was about 560 dollars.
Since that partial deregulation it's actually come down to about 300 when he dollar's sell air travel historically speaking.
It is cheap and -- your point you keep saying it's a free market a free market.
That's the problem it's not a free market every element of the air travel industry from the FAA to the TSA.
Even consolidation among airlines you know years -- member US air United Airlines tried to emerge they were blocked by federal antitrust regulators.
That's what we need to do get the government out and let.
Jeffrey Donovan re drinking its Disney Jonathan you don't have to pay that price you know you don't you you have an option so you don't have to fly trade union take an -- you could take a train OK you know my -- my son had about an hour.
-- -- There's have to go up fuels going up the taxes and fees that are all associated with flying these days are gone up by the second -- actual ticket price is not nearly as bad.
But the other half a bit unfortunately goes back to the government that's part of your problem -- -- they're gonna set to start paying for the oxygen on the plane -- I think she right.
Get the -- your bags I think -- some -- -- -- -- just checking myself through to my final destiny but I let ideas -- college be careful out there but thank you for joining us.
It's great to have you -- -- All right well coming up everybody -- which would you rather live next door to a neighbor's house in for -- -- For best.
It is time for a what do I need to know floor next week Tracy burns okay sadness for capitalism and instead -- we're closing on your house eating it company's now -- ounces -- billboard they pay your mortgage very year in return.
Look it's ugly but it became viewing your kids in your home -- here.
But he didn't do your neighbors are gonna hate you or -- and you get warm inside here.
-- -- -- Tiger would have -- -- what are your average I guess.
But look at all I ran probably -- something done in the next few months the perception that they wheelers driving oil prices higher got to go for all of sudden three point 7% -- or spinning off the refinery it's a great -- -- -- for the case that are -- does some -- which probably will.
-- on board and of the partly right all right wait -- Well if you are looking for an entry into the e-commerce -- and a tech stock look at ValueClick.
It's had very good earnings and its.
A company that's fairly solid in that area BC LK's -- -- data and we'll show I was.
Wrong last year on interest rates stay low but this year -- despite Bernanke's claimed to keep them below they're actually starting to creep up.
-- US is an ET and in exchange traded notes actually rises with short term interest rates specifically the two year yield its at a yearly high right now.
I think it's -- look after our -- Guys thank you very much and that's it for the cost of freedom -- thank you for being -- have a good weekend.