Why . Well, the reason the u. S. Is not growing is because government has grown too large. Its become too intrusive in our lives. Americans arent lazy. They havent run out of ideas and initiatives. They suffer government barriers to Economic Growth by definition. If you want to reverse this. If you want to restore the middle class, theres basic things to do. Abollishing the Capital Gains tax which penalizing investment in new jobs and companies would be a good idea. Id also love to see the dollar stabilize but this is simple to reverse. What gets me and by the way the middle class has been shrinking more since the end of this study. But the Obama Administration spent six years pulling the country to the left and then blames the right for the middle class shrinking, i dont get it. Well, look, im going to try a different approach to this. One thing we can all agree on is we have this problem with income inequality. We had it for a very long time which is why i wonder if we should be approaching this from left and right. You can go back from the 70s. Thats when this started to kick in. Weve had conservative administrations and liberal administrations and no matter what kind of administration we have, were not fixing this problem. Lets look at different explanation. For instance, the ability to send jobs overseas in the modern era. How much is that impacting on this . The fact that we have so many Public Companies today that have an obligation to shareholders over workers and the fact that because we have open foreign markets, perhaps we dont care enough. A lot of those factors are effecting countries like canada. Thats growing but we should note by the way since 2006 canada has been run by the conservatives. Were running to the left. Our middle class is shrinking. The middle class is under pressure everywhere around the world. Canada and sweden were two countries in that article. Their Corporate Tax rate is down to 15 and sweden has been cutting taxes in recent years so. The solution is obvious. When you look at those other countries in terms of minimum wage and things like that, germany has no minimum wage. Their unemployment is 8 . France has a big minimum wage and their youth unemployment is 20 . We have an experiment here in the United States because each state tries a different pattern. We see illinois and california raising taxes and we see wisconsin and texas lowering regulations and taxes. Its the latter two that are doing better than the former two. Thats right. The example i think your citing is texas. A lot of the net new job versus been created in texas. Lets spell it out. One third of all new created over the past ten years have been created in texas and they have been dramatically lowering regulations in texas. Plus the legislature in the state meets every other year. Thats a great idea. And also add to the list that steve rightfully put forgot. He cut taxes in half. He cut Government Spending in half and the economy, boom, grew 7 a year under calvin coolidge. Tell me which hike creates a middle class job and the interesting statistic. Easy for you to say. Exactly. Im speechless by this. You have rarely seen median Household Incomes decline through a recovery as has happened under this president. Median Household Income in 2012 by the way, according to the latest census, it was about 51,000. Mow, guess how much money you get if youre in hawaii on welfare . You get so much money youd have to make 61,000 in salary, which is more than the Median Income to equal the amount of money you get on welfare if you happen to live in the state of hawaii. Something is askew here. Well, when you have a size of government as we do that is about 23 of gdp, it should be about 18 of gdp. Study after study proves the economy grows best when its smaller at about that range but were subsidizing all kinds of things. I dont want to beat up on welfare recipients. Why are we subsidizing houses. It has a higher rate without those subsidies. Those people opt out of Social Security we should let young people opt out of Social Security and save for their future. Thats a great point but sabrina, theres nothing wrong with using the word welfare. I would include corporate welfare. I would include the welfare, for example, we just expanded the Welfare Program with regard to health care enormously in this country. Everybody that is empowered by the government, whether theyre on a corporate level or an individual level has expanded. The rich people are getting richer. The government empowered are getting bigger. The middle class is getting squeezed. Thats how i see it. No, i think youre right david and one of the problems is that we have democrats and progressives that look back to the golden area of the mid sen ri, post war where you had strong unions and manufacturing jobs that dont exist in the numbers they do today. But now we live in an information age. With very to change our tactics and one of the big things left out of the conversation and what made that mid century middle class so strong was the strong civic society. Everything was solved by more legislation or more policy. You know, pelosi and others should go back and read and remember how important it was to have a strong community. So much of what we look to government to do today from child care to education was taken care of by our communities. And theres another point in terms of getting back to growing the middle class, where ever we take the individual away from responsibility for his own self and family whether its in education, unions, minimum wage, health care, whatever happens, thats when we get in trouble. When we try to plant the individual responsibility for government responsibility, right . Absolutely. We have to remember, individuals comprise the economy. The economy isnt some blob. So when you increase incentive for individuals to thrive they will do so. A good example i think is china. I was just there thanks to forbes. 30 years ago the chinese were starving. Today they were becoming millionaires and billionaires by the day. Whats the difference . Not the water theyre drinking. The difference is government got out of the way. Freed them up to grow economically. Free up individuals. You reverse these problems. Approximate the communist chinese can do it, why cant we . I have to take exceptions to some of the things ive heard. Texas, its great theyre growing jobs. Good for them. Good for their governor but what theyre really doing is moving people from poor toward middle class. Thats gate. I love it. But it doesnt speak to income inequality among the middle class if they arent paying those people enough money and they arent. Also how do you know theyre not . Steve, you said its obvious how do you know that. Guys, let me finish. You said its obvious all we have to do is lower taxes. Raising taxes hasnt addressed this problem. Ill give you that but we have had tax cuts over these 50 years. But hold on there, steve forbes there is, better than any poll is what people do with their feet. They vote with their feet very often and theyre not moving out of texas, theyre moving into texas. Theyre moving out of the places raising their taxes like california and like new york. Businesses are. And david, one of the things that hurts people is an unstable weak dollar. We trashed gold and made the dollar weak and thats when the inequality gap started to grow and you have a huge payroll tax, huge estate taxes now. So thats why it takes two incomes to have a middle class existence. Now radicals have cut the Government Cut taxes. We have a government bubble going on. 2 trillion in cash parked over seas. Thats the cheapest stimulus. Got to be the last word. Thanks gang. Coming up next in the dog house, a government watchdog caught altering his investigations at the request of Senior Administration officials. Is this proof the administration is trying to bypass the checks and balances on Big Government . We pound out that this Inspector GeneralCharles Edwards had very close relationship with senior relationship with senior officials in the department you, my friend are a master of diversification. Who would have thought three cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. Clearly you are type e. You made it phil. Welcome home. Now whats our strategy with the fondue . Diversifying your portfolio . E trade gives you the tools and resources to get it right. Are you type e . [ male announcer ] its one of the most Amazing Things we build and it doesnt even fly. We build it in classrooms and exhibit halls, mentoring tomorrows innovators. We build it raising roofs, preserving habitats and serving americas veterans. Every day, thousands of boeing volunteers help make their communities the best they can be. Building Something Better for all of us. Headquaters. Now back to forbes on fox. One of the things this country has to keep power in check are the inspectors general. These are independent watchdogs meant to keep Government Agencies honest. But a Bipartisan Senate panel says the former ig for the department of Homeland Security altered and delayed investigations at the request of Senior Administration officials. Steve, is this administration trying to avoid the checks and balances on power . Absolutely. Every chance they get. Its like having a Supreme Court justice to get instructions on the next decision. You see it with epa. You see it with the National LaborRelations Board. Health care almost every day. You see it in finance and everywhere. Laws arent for them. They just do what they want to do. Executive orders. In other countries theyre called decrees. This administration has a policy trying to go around the checks and balances. Every administration has that policy. Look, let me say that right from the outset. Absolutely wrong. This guy was kissing up to get a bigger job. They went along, wrong. We should mention, he has been put on administrative leave. Go ahead and talk while we put up the statement of the sector of Homeland Security. What the guy was doing was wrong. What he was asked to do is wrong. But it does grate a little bit when this all of a sudden becomes this big Obama Administration thing. When everybody sitting here knows this goes on in every single administration. I dont care what party theyre from. But sabrina look at the examples. This is more than administrative action, executive action that we have seen more of in some other administrations. The changes in obamacare, for example. Right. 38 changes and delays in obamacare. 38. This is not executive action. These are ways of going around congress. And its not insignificant either. James madison had it right. If men were angel there is would be no need for government but government needs to control itself. You have corruption and you have problems. I think the real reason, to ricks point that people are look at the administration and criticizing it is this is a president that ran on transparency and change and making washington better. Yet every week theres another lie or corruption and another misleading stat and another change to existing laws. And despite all of those promises we had a good friend, he came out with this report in 2010, by the way, suggesting ways you can go around congress to accomplish what you want. He said the ability of president obama to accomplish important change through these powers should not be underestimated. Nody underestimates them now. Well, its definitely bothersome but i tend to agree with rick here oddly must have that this isnt an Obama Administration thing. President ial administrations tend to look out for themselves. They dont like this kind of oversight and thats where i agree with sabrina. This is a problem with Big Government. If government is doing too many things theres going to be scandals and attempts to avoid oversight. Shrink government and youll shrink the number of these scandals. But we do have, we have specific measures in our system designed, despite the growth of government, designed to stop administrations from abusing their powers and i inspectors generals are one. We saw the abuse from this guy. We also saw the administration trying to really smear the reputation of the ig for the irs who spotted a lot of misdoings there. So there is a pattern here, no . Well, theres a pattern and i think sabrina put her finger on it in a strange way by quoting James Madison and the problem is that obamas people do think he was an angel. He was elected in 2008 to save us from waters rising and all of these kinds of things. Now he has a poll rating in the low 40s. Hes going to lose the senate in the fall and theyre circling the wagons and i will disagree on this, i think theres a least transparent, sneakiest Administration Since nixon. Wow. Do you agree . Since nixon. Where is the hhs ig . Tuz that person even exist. Right. We have a fraud waste and Abuse Commission ichl. Its supposed to be congress. We have a Record Number of czars and executive orders. A record amount of time spent circumventing the constitution. Who is watching the watchdog . Nobody it seems. And steve, the thing is even when theyre doing stuff that a lot of people in congress agree with, instead of going through congress, theyll do it by executive action or some other means. Yes, they have to be called to account. Theres a case coming up in the way they abused the law in terms of health care exchanges. Ultimately the Supreme Court is going to rule on that. Theyre going to rule on the National LaborRelations Board abuse. Theyre going to get into action and start to pay this back but congress has been on this. Thats the last word. Coming up, the epa chiefs first week tour as environmental and the cashing in gang agree on one thing. That at the bottom of the hour. Parents pull out your wallet. Moms and dads getting slapped with a fee when junior gets slapped th detention. [ female announcer ] who are we . We are thinkers. The job jugglers. The up allnhts. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can s, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. But i didnt always watch out for myself. With so much noise about health care, i tuned it all out. With unitedhealthcare, i get information that matters. My individual health profile, not random statistics. They even reward me for addressing my health risks. So im doing fine. But shes still gonna give me a heart attack. Innovations that work for you. Thats health in numbers. Unitedhealthcare. For what reality teaches you. Firsthand. E. In the face of danger, and under the most demanding circumstances. Experience builds character. Experience builds confidence. And experience. Has built this. The 2014 glk. The engineering, and the experience, of mercedesbenz. See your authorized dealer for exceptional offers through mercedesbenz financial services. Maybe this will bring a little bit of disciplines back to our schools. A Charter School group in new orleans charging parents a 25 fee every time their kid is punished with a saturday detention. Sabri sabrina, you think is a good idea. I can go along with this. If your child is disruptive enough that they have to be sent to a saturday detention, parents should know that. I suspect these are Charter School kids. Theyre a selfselective population of parents that want to know whats going on. I think this might be a good policy for this school. By the way, the reason this Charter School says they have to impose the fines is because it costs money for the detention centers. They say it includes counseling for students and parents to address the root causes of the behavior. Theyre spending money. The parents should pay for it. I dont know when money gets involved when you have these local bureaucrats then maybe doing a lot of detention just to make the money. Theres another way too. Some Charter Schools that im aware of, my god daughter teaches at one, they force a parent to atnd detention with the student. Thats an interesting idea. What about that . Substituted the fine for forcing the parents to go into detention with the kids. I think both are great ideas and i would add a third. You know, make the kids earn minimum wage by sweeping the floors. Look, Charter Schools exist because there is a lot of disorder and too many public schools. So they have to take disruptive students very seriously and get the message to parents. Well, john, by the way, if you use richs example that the kids would probably go union. You know, now that they are unionizing College Football players. If you sweep the hallways, you could probably join the union. But go ahead. No, i like this. Education should be lol and i say the biggest problem with schools today are unruly students and parents that dont care. So anything that makes parents want to be more involved and get more out of their kids. Make them take it more seriously leads to better educational outcomes. Well, thats the point. I was a teacher in chicago and the kids that parents werent involved never did as well. I think thats indisputle. Of course thats true. I do have to say to rich, when i was in high school, the job i went to after detention, when i got done with detention, i would have liked sweeping the floors for minimum wage a whole lot better. Unfortunately, steve, we went back to the old days. We had the teachers that would grab you by the lapel and throw you up against the locker. I dont think were ready to go back there yet. Maybe we should but were not ready. Why pay the kids to sweep the halls. If they have done something wrong. No money. How about pulling weeds. Thats a good punishment . How about taking the graffiti off the wall. Scrubbing. So no money. Just have the punishment. But steve, youre a good capitalist. You know the importance of money as an incentive. If parents are forced to dig into their pocket and pay out every time their kid is in detention im beginning to think maybe that would have an effect. It would have an effect and if they want to try it go ahead but in terms of a punishment, pulling weeds, scrubbing the walls, sweep the halls, no kid likes that. By the way, sabrina, the school is offering an alternative to paying the fee or going to detention which is suspension. So if the kid wants to be suspended. In my eyes, theyre offering enough alternatives to make this a pretty legitimate thing. Do you know what also works is social pressure. Sometimes at the younger ages, they say if one kid does something wrong the whole class suffers. Sometimes that actually works and it may work at the older age too better than pulling them out on a saturday. Good last word from sabrina. 73 of americans say theyre still fearful of investing in the stock market. Fear not. Our informers have the stocks ready to calm your nerves. This allergy season, will you be a sound sleeper, or. Mouth breather . Well, put on a breathe right strip and instantly open your nose up to 38 more than allergy medicines alone. So you can breathe and sleep. Shut your mouth and sleep right. Breathe right. A collection of aerospace stocks. Yeah, its a cheap way to play great stocks analysts sy. Do you like it . I like it. People are traveling more and more. Youre picking a stock amazon that was killed this week once they came out with earnings down about 9 but buy low, right . Absolutely. Amazon transformed how we shopped and now its going to transform how we watch tv. Hes brilliant. Watch out for a slippery ride though. Could be a slippery ride. Buy low folks. Thats it for forbes on fox. Have a great weekend. The number one business block continues with cashin in. Obamacare is going to get a whole lot worse and thats not conservatives saying it. Thats a massachusetts democrat saying it. Its going to hit the fan. Smelling trouble with the president S Health Care law. Time to start swimming. But you guys inside. Remember my battle with bill oreilly over Green Companies getting taxpayers green. Now onof those companies is spending our green in china. Does that prove i am smarter than the king of cable . I share the priority in dealing with the issue of climate change. No, really, if the epa chief really cared about the climate, why did she take a jet fu