Where's the beef? Heading higher
D.C. focuses on budget cuts as sticker shock hits shoppers
- Duration 7:05
- Date Feb 23, 2013
D.C. focuses on budget cuts as sticker shock hits shoppers
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Hi everyone I'm Gerri Willis in for Eric -- welcome to cash and then.
Our captioning -- this week Wayne Rogers Jonathan Hoenig Gary called mom.
Democratic strategist Margie Romero and it's a pleasure to have with us this week former Massachusetts Republican senator and now Fox News contributor Scott Brown.
And lawyers should be.
Well it's heading higher that's where 10% higher and at a time when people's paychecks are shrinking that's not good news.
So instead of lawmakers serving up these scare tactic so we're spending cuts should they be focusing on cutting shoppers a break.
Scott let's start with you.
Well when you take the high costs of energy the high cost of unemployment insurance and everything that goes along whether to think that the the supermarkets on the actual business owners that are not going to pass set off to the consumers as a mistake.
And then you throw in the scare tactics as -- talking about and it's obviously gonna lead to higher costs aren't they need to stop what they need to stop but the scare attacked as they need to get down to business.
Jonathan do you take a look at these numbers ground beef -- rear up thirteen point 4% chicken is up twelve point 2%.
Really can't take this can -- Now -- at an issue we've got -- and acts and Jerry is inflation inflation is caused by government by the artificial expansion of the money supply to support all that spending on a deficit spending.
As -- pointing -- prices go up the value of people's savings goes down that hurts the economy it's devastating especially took to poor folks folks on a fixed income.
And you know both parties historically are guilty of this -- these prices gone up.
But even the last ten years goods that cost a thousand bucks ten years ago cost almost thirteen hundred dollars -- I -- that we need this is just spending time when -- company today.
I I -- do a great witty my -- is absolutely right you know with a treasury.
An enormous amount a debt I mean.
Some like 7080% of them the treasury bills and bonds that are being sold a big bought by the Federal Reserve.
I mean -- and that's the same thing is printing money people the public doesn't understand that but that's exactly what's happening so that's a late in inflation it's gonna kill us all at some point -- -- The problem with a food prices is one of seed they'll feed grain.
Has its isn't going up in price -- particularly so that means both chicken and beef are gonna suffer as a result so when a farmer's price is their biggest cost go up he's just got to pass it onto the consumer -- -- -- -- -- gonna have to pay more does not.
I see that happening Gary what do you say.
Is this critically important these rising prices well -- simple rule for family for every dime counts and when they're sitting at the table.
Even everything that matters and -- looking at their checkbook everything matters and the big problem is -- -- in Jonathan's right the Fed keeps printing money.
We're seeing a little bit of inflation now -- you see what's coming down the road.
In the future I'm worried about the hyperinflation.
It was not out of the question when -- -- trillions of dollars Margie do you what do you -- Well I've got all around the country and I talked to moms in focus groups Wal-Mart moms and the -- express a lot of concern about making their dollar stretch.
And that's true and times where prices are going up or whether or not going up that as actually being quite stable for the last few years they're thinking about.
How much they're in gases gonna cost and to go to the cheaper grocery store or what they can do without that week or.
What the where they're gonna have to cut back in and what they buy for their kids and so that's a real concern that a lot of Americans feel and they want me.
Sure that in Washington that we're hearing those concerns and that we're speaking the language that that that demonstrates that we understand this concern RA.
Acted Jonathan here is this going to be a major drag on the economy since I cut you walk by back to you now.
-- the -- eight and if government allowed it to be I mean energy is just not obvious example Jerry is government has -- in energy prices for energy have gone up.
And you're the -- -- -- -- -- -- This despite we saw in the late seventies and early eighties that was born in the policies of -- of four of Nixon's of administrations prior so we need.
You know more get tough congress people we're -- tough politicians were actually -- stop spending and put that though the gov.
Went back on our and a sound footing otherwise -- ever feel you on the food prices -- -- this trickle through to the broader economy are you worried that at the end of the day.
This kind of price increase could have ramifications for GDP.
Well listen first of all getting back to what was just said to think that politicians in Washington and a stop spending -- like pigs in a truck no pun intended.
And I got to keep spending number one number.
Number -- number two the chaos the families of four they're getting smarter -- going on that because online coupon sites if they're shopping.
For the daily flyers -- joining those clubs -- they get discounts within the stores -- there adjusting and adapting but their margin is also getting slower.
Bottom line is it's a real problem when you throw and as I said energy high cost of health care and all these factors that are -- a real drain on businesses that just gonna pass it over they're gonna go out of business so it's a problem.
It is a problem Wayne what do you say brighter economic problems.
Well I just think they should issue more full of food stamps that's what they've been doing I'm and so what that plane I mean I like began -- -- that also -- enough.
I had no surprise front again -- will help -- in a lake that.
Yeah you can say that we can get Lleyton installation is they are so it's gonna come and it's just a question that time we've had in seeing this experience before it's gonna -- People are gonna have to tighten their belts -- -- but I got a -- is that you walk into a restaurant in Los Angeles and New York they are pat.
So people are still spending money I don't know where the hell are they getting it but they're spending it with.
Margie Marky -- -- -- tighten my belt I don't wanna see inflation is this could be a big economic problem.
Honest I think it's it it may be a day that got a -- we seeing sequester cuts -- BC cuts gonna affect.
They're gonna cut food stamps and food that goes hungry kids -- the day I think you might really have a real problem Mark Zandi is a Republican.
He was -- McCain economic advisors -- that -- the biggest bang for your buck in terms of helping the economy and helping the middle classes so we have those kinds of cuts.
Plus about Gary Gary Gary yeah it is not about the -- this is about what's going on in the real economy with food prices this is about putting food on the table at the end of the day what do you say well.
By itself it's not gonna kill the economy but getting gas and and everything else going up the price and the same kind of payroll tax -- up but somebody makes up -- make sixty grand that this is now paying 12100 -- taxes.
And it together that is an economy -- I agree are right last -- -- do you weighing.
Yet one more word here big.
That's the only they daily word is -- wanted I've said before it's very it's just a question of placing it you've seen it didn't -- -- you're gonna see it beef prices and in chicken prices you gonna see -- there you go see it everywhere and it's just a question of timing it's going to be right on us in -- I don't know how people deal -- it.
I can't -- it quickly and -- account -- Margie it's not caused by government not spending it is caused by government spending I -- a free market competition.
That brings prices down government intervention printing money that pushes prices up for for Joseph six pack and the billionaires -- all right guys great job -- really appreciate your comments --