Welcome back to fox friends. Our thanks to bass pro shop. Are you offended by a fly fishing purist. I cant say that. Ive done quite a bit. I bet youre excellent. And joining us in our after the show show and well try to learn how to fish on the plaza. Our thanks to anna. Six days and counting. And the fear mounting. A tremor will hit the american academy. For thousands of parents who have to scramble to find child care for their kids. Sequestration would be destructive to our nations security. And says air traffic contollers. And cost us 750,000 jobs. Educators laid off. Houses burning, seniors starving, criminals fleeing and dont any about eating. What . 85 billion dollars is a drop in the massive budget bucket and chump change compared to our 16 1 2 trillion dollar debt. So, if washington cant cut that measley amount, is the real scare not cutting at all . Hi, everyone, im brenda buttner, this is bulls and bears, lets get right to it. The bulls and bears this week, gary b smith, tobin smith. Jonas max ferris along with john and jehmu green. John, lawmakers using scare tactics for 85 billion in cuts, but you say the real scare is not cutting at all . Yeah, you Better Believe it. Look, when you have no facts and you use emotions and fear. Oh, my god, children are going to starve to death in our streets and air traffic shut down. Thats when you dont have facts. And both sides are doing this, both sides refusing to cut. Look, according to president obamas own budget, were going to run trillion dollar deficits ten years from now. And ten years and about 48 trillion dollars over the next ten years, were trying to cut 1 trillion. Instead of 40 cents of every dollar were asking our government to borrow 38 cents a dollar. If a company cant cut 2 , not much less the entire 40 that were borrowing, somethings wrong. This is fear mongering at its worst. Well, jehmu, do we have reason to be afraid . Are you scared . Yes. And we absolutely have reason to be afraid, brenda. How do you spell bad news for the company . Se sequ. You get the point, sequester. And at the new year when we were looking at the fiscal cliff, but is there really a difference between the exorcist and the shining . The fear is there. Of course we need cuts, you need it in stages. You dont do it when the economy is fragile. You do it when the recovery is stronger. And these across the board cuts, bad news. And tobin, i wouldnt call them cuts, theyre trims, and to hear the white house, im afraid to go out of the house, should we be scared of this . Obviously, the economy is scared of Something Else and scared of it turning to 26 trillion dollars in a 15 trillion dollars economy, in other words, we would in fact be great. The 85 billion, of course, doesnt account for the 50 or 60 billion, and if you add that back in. This is literally what the government spends, remember, the government spends 4 billion a day and this is actually, to carry this, this is about, you know, maybe ten days of total spending all in. No, its not a big deal, its total semantics. Weve got selling on this show, gary b. Shouldnt we be hitting the panic button . Absolutely not. We should be hitting the panic button if we d because theres a few head scratchers here, i know that jehmu is worried about this. Look around. Is there any agency out there in the government that cant say, you know what . Were working to the bone, were working, 100 , no one has any free time. No one takes a walk out to have a cigarette. Theyre never on the internet for anything else. My gosh, 2 , waste, fraud. My gosh, probably ten times out in every agency from the f. D. A. To the department of congress to some useless agencies like the department of education. And the other thing we saw in the clip that president obama had the first responders, the firefighters and oh, my gosh, theyre all going to vanish. Well, i have a question, why is firefighters, why is that a federal function . Were paying for firefighters for our tax money in arizona and pennsylvania. Thats all local unless you think thats small dollars. Thats 310 Million Dollars we file to the government to spend on localities. Jonas, im going to get to you in just a minute, but i want to let jehmu respond. Go ahead. Well, the facts are, with the sequester, the gdp goes down, and if unemployment goes up. Thats not good for anyone. 10,000 teachers are going to be at risk of losing their jobs, what about the 400,000 people and lose the health services. Jehmu, we have the its a responsibility, not a and education will be a factor. 1. 5 million children, their education will be affected with the sequester, im concerned about the 400,000 people that are going to Lose Mental Health services and air Traffic Control e, are you getting on a plane after the sequester. And 400,000 is amazingly wrong number. Brenda i want to let jonas weigh in here. Look, theres two problems here, first of all, i dont see what the urgency is to pay off the debt for the next couple of years while the economy is slow, right now the government borrows at a negative Interest Rates and gets cheaper to pay off because of inflation, that wont be forever, but thats the case. And a longer spending problem that needs to be addressed and by doing the sequester, we think weve solved the spending problem which were not in the ballpark solving and major ones theyre going to kick in the next 20 years to really balance the budget with the retirees and thats the big problem were not going to address. We might be bet her off, but i want to get to john lay field. We might be better off. Look it, washington could do this in an easier way, in a more professional way, but were not likely to see that. So, maybe the sequester is the only way were getting any cuts. Were fot going not going to nobodys going to cut. Nobody. According to his budget were running a trillion dollar deficit ten years from now. The cbo backs that up. What toby talked about, if Interest Rates spike were not going to have money to pay anything, jehmu, its not a matter of were cutting teachers out of 8 million. Its a matter we have to do something, were doing absolutely nothing. If you cant cut 2 , somethings wrong. Go ahead, gary b. John brings up a good point, and the cuts the 10,000 teachers, this is an obama strawman, oh, my gosh, all of these teachers are going to vanish. As i get back to the point the teachers, the firefighters are all local and state responsibilities, and unless im wrong, there is no u. S. Government high school out there, where teachers are employed. So, thats false. Laying off those tsa workers, oh, my gosh, were talking again, about 2 , were not talking about dismantling the entire department of Homeland Security youve got to put this stuff in perspective. But they dont. You know, john makes the point. If any of the math, maybe gets boring, horrible for 5,000 teachers, but for the 8 million teachers we have to put it in context how long a 15 trillion dollar economy is. If you keep it in context, if you dont cut now, we dont cut ever, this is the best idea of a bad situation, let it happen. Brenda well, theres lots of things to cut though jonas, you dont have to cut the important people. Its a red herring, if the federal government cuts all of the employees we have and still sent out the Social Security checks and medicare, were still going to have a deficit problem in 25 years. And its not cutting the problems that need to be addressed that were going to take payments in 10, 20, 30 years. The next month, thats not the real problem. Brenda toby, last word. Entitlement is a big issue and people doesnt have the guts to do it. 85 billion, great, thats a start. Brenda thanks, guys. From scare tactics to a real scare, find out what seven in ten consumers are doing right now thats causing a growing list of companies to sound the alarm. Is our economy in trouble and are tax hikes to blame . [ truck beeping ] morning, boys. So, im working on a cistern intake valve and the guy hands me a locknut wrench. No way im like, what is this, a drainpipe slipknot . Wherever your business takes you, nobody keeps you on the road like progressive commercial auto. [ flo speaking japanese ] [ shouting in japanese ] we work wherever you work. Now, thats progressive. Call or click today. We all work remotely so this is a big deal, our first full Team Gathering i wanted to call on a few people. Ashley, ashley marshall. Here. Since were often all on the move, ashley suggested we use fedex office to hold packages for us. Great job. [ applause ] thank you. And on a protocol note, id like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh im sorry guys. Ah sometimes the caps lock gets stuck on my keyboard. Hey do you wanna get a drink later . [ male announcer ] hold packages at any fedex office location. We are live from americas news headquarters, hi, everybody, im jamie colby. Got to tell, but a massive leak that happened this morning at the nations most contaminated nuclear site in South Central washington state. That hold a brew of radioactive and toxic waste are leaking at the hand for nuclear reservation. And theres no health risk to the public or environment, but keep a close eye on it and lawmakers are calling for an investigation into the the sites monitoring program. Well keep you posted and also in the northeast, another major snowstorm coming just two weeks after a record breaking blizzard that buried much of the region. The winter storm blamed for four deaths in the midwest. Treacherous Road Conditions leaving drivers stranded and 18 inches of snow in some areas, im jamie colby, im going to send you back right now to bulls and bears. There you go. Keep it on fox. Well, this didnt take long, that payroll tax hike kicking in last month, kicking consumers where it hurts. Just ask the owner of olive garden, its the latest company to warn the hikes are taking a deep toll, as nearly three quarters of americans say theyre cutting back to make ends meet. Is the economy in danger or is this just a temporary blip . Gary b, what do you say . Well, you know, i think that everyone watching out there is concerned unless their last name is it maybe buffet or gates. This is not a temporary blip. We just saw the warning from walmart. Weve seen concerns from burger king, from kraft. Everyones trying to adjust to this smaller consumer spending. Why . Because the consumers worried about three things that have not changed one iota under this current administration, and do they have money in their pocket, do they have a job and is the value of of their house going up or down. Money in their pocket. Disposable income has flat lined since 2008. Unemployment, when you talk about the u6 number, the number that includes people that have given up has doubled since 2008 and the value of their home hasnt budged one iota since the year 2000. So, theres a lot of people underwater that bought at the height of that market. Its not good out there. I think its getting worse. Well, toby, actually, they might be feeling richer because wall street has certainly been on a tear and housing is starting to lay had a foundation, isnt it . A pertinent pun. Yes, were up 12 year over year and i believe that gary was playing tennis when that came out. The other issue, there is no question that this cash out of the system, its got out of the system and so, by the systems work, we have a little reaction what weve had and then we will figure stuff out. Consumers are a lot smarter than i think people give credit for and yes, there may be 2 less there, but theres other pieces of that economics puzzle theyll solve. And remember, the economy didnt die because we didnt have the 2 and you know, didnt go into a boom because weve got the 2 and the temporary withholding, so therefore, you know, were going to find a marginal place. Okay, walmart is the biggest private employer in the united states, john lay field, and it says its really hurting. Sales of hurting because of this. Yeah, people are scared to buy. We have the lowest Participation Rate over three decades ago and we have the most dysfunctional congress, d. C. Administration in the history of this country, probably the history of the empires and america sees that and youve raise the taxes on the rich and the only other place and ive been to greece. The only place that raise taxes further because everybody says we need more revenue, is going be to be the middle and lower class and thats what americans are scared of. Afraid of spending because anything coming out of d. C. Is going to be bad. Brenda jehmu, what do you think of the economy. Is this really going to keep hurting . Well, the payroll tax holiday was a holiday. It was never going to be permanent. Im sure there are many children out there who want santa claus to come year round, but that doesnt happen. So these companies, they should be grateful that the federal government gave them this student for the last two years, but look, they havent fallen off a cliff and havent dried up. Look back to where we were in december where they said theyre going to spend and were at 4 higher than the year before. And if you look at the Bloomberg Consumer comfort index, half the of americans are saying their personal finance theyre looking at it highly positive which is a year high. And this is not something to be freaking out about right now. And from china, he loans us 40 cents on every single dollar largest stimulus in history. Santa claus is real apparently. If youre concerned about it, can you imagine when the sequester hits . Thats, thats the tragedy. Oh, give me a break. Thats fear mongering, thats nothing else, please. And to jehmus point further. Brenda go ahead. We should be grateful were not raising the payroll tax to make up for the lost tens of billions to the Treasuries Fund and going back to the level it was a few years ago, were lucky in that sense, that system is the big ehole theyve got and had enough. Look, it helped retailers the lowest a lot and hurt them this year. This is not in a recession, weve lived through this payroll tax clip and for cycles going back for many, many years, to think that we need it lower or were going into depression is absurd. Were not there now. And we can handle paying off our debt. Gary b. We may not be in recession officially right now, but we need one more quarter of negative, of contraction of gdp and we will be. John sums it up. Were the worst of all empires, worse than the aztecs, worse than the mayans, for crying out loud. I tell you what now. The most important point we both did, its that unemployment number. Were not going anywhere unless that labor Participation Rate ramps up and its terrible right now. Brenda okay. Were an empire, you guys are gladiators. All right, thanks, guys. Whats got the hulk sulking . Harry potter wishing and spiderman spinning . A universal problem with the health care law. Neils gang is all over the super fallout. Thats at the bottom of the hour, but up here next, teacher unions protesting, the very test by which theyre judged. They want them thrown out of the classroom and get this, theyre blaming corporate america. Someone here says, thats a big pile of number two. Pencil. Aw this is tragic man, investors just like you could lose tens of thousands of dollars on their 401 k to hidden fees. Thankfully etrade has low cost investments and no hidden fees. But, you know, if youre still bent on blowing this fat stack of cash, theres a couple of ways you could do it. Or just go to etrade and save it. Boom. Is bigger than we think. Sometimelike the flu. 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Putting down the pencils and putting down the protest signs. Why teachers are refusing this is my school and im throwing out the test. Yea thats what teachers unions nationwide are pushing to do. Theyre saying standardized testing is pushing a corporate agenda in the classroom and they dont want to be judged by test scores. Is that exactly what our failing schools need more of . It is, brenda. We have Companies Like microsoft, like ups, like amazon that are envy of the world and yet, our education system, despite the fact that we pour trillions into it in the last 40 or 50 years hasnt budged one iota. We need to start measuring the teachers. In corporate america, jonas, i dont think they take out pencils and i dont know what i bet you cant find it in a google headquarters. We should have is more like carpet america, and they dont do standard advertisiized testi google or amazon either, a ridiculous way it promote somebody and they also dont have unions to the companies and upside were going to heron from th learn from this. Its not done in corporate america, whos taken a test in a company. And okay. John, you dont think this is oldfashioned, do you, to take a test and judged by it . Good lord, no. Gary b is 100 right. What he talked about at the p and l, that is your test. A manager is measured on merit and companies are becoming more proficient overseas and we have a shortfall of up to 50,000 tech engineers according to bill gates and our system is failing, because of the unions. Brenda okay. Jehmu, does this make teachers teach to the test and is there something wrong it that . There is something wrong with that. Standardized tests make teachers teach to the test and in the long run, its bad for the economy. Standardized tests do not find to be innovators, i can guarantee you that steve jobs doesnt do well on standardized tests and we know that because he went to a crummy college, thats how we know that. You cannot put students all in the same bag, it doesnt students have different ways of learning. The violin here going. Brenda toby. The bigger issue, this is about tenure, teachers being scared, somehow if theres no way to measure them, then theres no way for them not to get tenure. If you look at the failed system and we know its failed and we continue it as a failed system then were the insane ones. Thanks, guys, and thank you to jehmu for joining us, we appreciate it. Well, danica, may be tomorrows favorite on the track, but someone here is going to help you get in on the fast track to profits. Od. Yup, ive got. [ voice of dennis ]. Allstate. Really . I was afraid youd have some cutrate policy. Nope, ive got. [ voice of dennis ] the allstate value plan. 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