Eye unanimous in furchtgottroth and jared meyer argue that government policy are robbin diana furchtgottroth and jared meyer argued government redistribution policy regulation and Economic Data robbing millennial set their future. That is next on booktv. [inaudible conversations] good evening. Good evening akamai Vice President for policy research at the manhattan student is my pleasure to welcome you to discussion by her senior fellow, diana furchtgottroth and her colleague jared meyer, coauthors of the new book disinherited how washington is betraying americas young. The persistent deficits and debt of the federal government driven to a large extent by the promises of entitlement programs such as Social Security and medicare have from bid longtime head of the National Bureau of Economic Research to observe that fiscal deficits impose a burden on teachers generation borrowing only postpones the time when taxes will have to be paid. Even more pointedly, former u. S. Comptroller general david walker has spoken of the problem a generational fast present consumption and even indulge in their bribes the young of opportunity. And theyre important new book disinherited how washington is betraying americas young the Manhattan Institute diana furchtgottroth and jared meyer will elaborate on this theme. We should not be surprised by persistently high levels of unemployment among the young nor by their delay in establishing them elves as independent adult. The young today face an array of obstacles that we are creating for them. Not just been in a longestablished entitlement programs but workforce regulations, licensing requirements in a new and expanded health care and title meant that increases the cost to the government. So many young adults are as paul ryan observed in the last campaign. As taxpayers we have to be concerned about the situation. As parents we cant help but be concerned. Both jared and diana are multigenerational here to discuss the finding argument of disinherited. Train to will speak first followed by jared meyer. Diane is the former chief economist of the department of labor and chief of staff economic advisers were president george h. W. Bush. The Manhattan Institute directed the Institute Economics 21 the author of the most recent one regulating to disaster. Jerry meyer is the fellow went to 2 00 p. M. Hes a graduate of st. Johns university where he received a bachelors degree in science in finance. To discuss the new book disinherited, please welcome diana furchtgottroth and then jared meyer. [applause] ladies and gentlemen thank you so much for coming to hear us today. So much going on in new york you could have been going out to dinner and that you are coming to hear it. We are really grateful. It seems as though our policies against young people in favor of vote people in a broad variety of ways with a lot of discussion about how the have to pay off the National Debt of 18 trillion, not so much discussion about the state that which is another 5 trillion. But the disadvantages we give to young people ahead of the time before the time they are in the workforce and pay off those debts. Government policy in the field of education and when they get in the workforce and then children are asked to have Higher Health care premiums so they cannot low premiums. And we find the owner doing so well. The Unemployment Rate is about twice the amount of 25 and older with the rate declined substantially. When it comes to education we find all the teachers are given day of her over younger teachers. New york city has unqualified teachers who are being paid rather than being fired. Even though it is impossible to find unqualified teachers in elementary or secondary school. Economic studies have shown with just an average teacher at the lifetime earnings rose by 250,000. So theres a lot we have to gain by letting children have the best future they have. Then when it comes to college 70 of students have some college debt and the average debt is 27000. So thats a lot of debt and it didnt used to be like that 10 years ago, 20 years ago. The federal government subsidizing more and more college loan colleges by raising their tuition and this is just a loselose issue ration. Plus High School Guidance counselors and a fouryear college, even some of them graduating with degrees that make it difficult to find jobs. Some of them dont even graduate at all without a college education. When it comes to entering into the workforce to find a number of policies we have our bias against younger people. Its difficult to get a job when the minimum wage is 15 an hour. Today weve just heard los angeles is following and this means its practically impossible to get one of the jobs that were so common when i was growing up. Also kids who dont do that well in school cannot start at the bottom and work up. That is one reason the Unemployment Rate is close to 21st time. The minimum wage isnt the only barrier. Used to be impossible to get paid at the new yorker. [inaudible] the Labor Department decided no unpaid internships. Imagine you can get a an unpaid internship at the white house. You can get when the congress. You can get one at new york communities or an act to this group but you cant get one in your local order shut. You can get one in a Recording Studio. We told the story and we have many stories in our book as young people disadvantaged by the system. He was 20 years old and he was offered in an airship and Recording Studio and a philosophy major. A condition of the internship went to have to get College Credit because if you dont get College Credit cant have an internship. Well, he happens to go to an Ivy League School and they dont give credit. So he spent his summer on the street and working on recording his own and theres many stories like that. Theres no reason for Profit Company should give people the advantage. Then they go on to occupational license and and many stories in our book will have to get a certificate in order to do african hair braids. She wanted to open her own salon you can get plenty of chemicals. While the law changed in mississippi and she was able to do that unqualified. There isnt any reason you shouldnt feel to start your own tree trimming business or computer to knowledge he does this. All of those are forbidden in some states. After the kids have gone through school and they cant get a job in the workforce, we then expect them to pay Higher Health insurance premiums. The Affordable Care at rules the premiums are three to one. You can have more than three times the premium of the young person. We told the story of tommy rhodes and the d. C. Health Care Exchange and he just about doubled and spent months trying to get enrolled. It is just not fair to people that they should pay Higher Health care for people like me can pay lower premiums because the difference between the wealth of the young person and an older person is 50 to one because thanks to the Federal Reserve it is gone. People with pensions has seen the value in trees. They have assets will tie up. So it doesnt any sense at all. But we are calling for and im not going to say it because jarrett is a real millennial and he knows what the solution is. [applause] theres a lot of talk. Both sides of the aisle talk about how young people need some sort of change. Dynamic use of numbers. The year and a half ago in a Rolling Stone article Jesse Myerson laid out his vision which is kind of been embraced by people on the left. But heres what he wanted to do. He wanted to make everything free everything publicly owned have a guaranteed job if you want one. He said thats the way to help. Diana and i wanted to write a book to provide another way that shows young people mistreated and what they have right now is because of government policy. They still have the general theme of protecting older interest in keeping young people out. We all know young people dont vote or care about politics but unfortunately politicians dont ignore it and they constantly pass the bills come at things like increased pensions for government workers come and spend their money on Social Security and medicare and push other regulations that would immediate benefit on interest but then say will pump the cost of people who can vote yes or arent even born. These are major changes for millennial once they start paying taxes. Im just talking about the 18 trillion that would increase our taxes by 57 or cut all Government Services by 37 excluding the interest on our debt. That means young people are getting less service is for paying a lot more to bring the unfunded cost to reality itself. One thing we do see his young peoples attitudes have changed. The last six years have left a bitter taste in young peoples mouths. Work enthusiastically towards president obama by two thirds of millennial see it as an efficient and wasteful. If we look at regulations, only 16 and regulation benefits the public. They see the ridesharing and regulations are protecting established businesses and they see no reason that they run out their apartments by they shouldnt be allowed to do that. That is why we have a specific chapter and occupational licensing. This isnt just hotels. All across the economy we see concentrated interest putting together. In the 1950s one 20 American Workers needed a government permissions but to start working. Now one in three has expanded drastically. People talk about minimum wage and we see nothing as much as occupational licenses. Moving onto the way to get out of the problem is not doing more government programs. Rather tear back to regulatory statement. The numbers are daunting on what we do to wreck the federal budget if we take into account Social Security and medicare. America is now 220 in debt. I can picture what 200 trillion would look like. He told us my generation has grown up and never known anything else. We need to grow the economy and go to federal regulations. This isnt just pages and pages of legal jargon. They put real burdens on businesses. I dont know how i could possibly read a million regulations much less remember all of that. When we look at pension. Which is now 5,000,000,000001st day, we need to take away governments ability to put pressure so they think twice before promising benefit. Everyone wants to get a higher return on pension. Eventually the bill will come to people who never wanted these programs come and never voted for them. So weve seen a lot of pushback against the Affordable Care act. The idea of extending insurance is something we all want. Access to Quality Health care. They set up the law in ways that makes young people pay for it. If we look at the advertising to sell the law was almost embarrassing talking about insurance and people doing keg stands. If it was that great of a deal, why do you need a push. As weve seen a lot of young people are signing up and they realize its been placed which i should point out people under 30 spent 600 a year on average health care. If the average premium pushing 3000 now with a 90 increase for 27yearold males. We could see reforms in the health care side. We need to grow our way out of the current budget situation. But what can we do about education . When we look at primary education this is where i am most told well. Everything from Charter Schools and vouchers to personalize learning that we realize not every american student is the same so we start to move to an individual or systemic is paired students greater control. That is something where we can write our education system. With Hillary Clinton with her staffers talking about making college debt and Bernie Sanders making college completely free. How can we respond to this . The way i see it if they put a bandaid on the problem. The real issue is College Tuition has been increasing drastically since the late 1970s and this is driven by the current loan program. The government writes a blank check to colleges. We will increase and have more money coming to you. When you select it away with the same month applies to everyone. Its going to college the best decision for me . High School Guidance counselors think its the right decision for everyone. But when you come out with this diet is not going to better education. This is something we need to think long and hard about and create a system that theyve to investment in education. We just sent everyone to college and we would have a huge and vast and. That would be one thing if it were true but its not. Over 80 of College Graduates are unemployed and thats double the rate at the end of the clinton administration. A staggering 44 in the unemployment statistics. They didnt need to go to school and go 27,000 in debt to get them. We have some ideas for how we can help the economy and move it forward, but the main thing we need to do is evaluate to affect the youngest americans. How does make in this without paying for it for future generations. We hope writing the book that we could bring this into the space in young people are extremely energetic. People say they are apathetic but look at the current push for fossil fuels in college. We can get young people that have the same passion they have for how theyre treated by washington. We would start to see real change. Thank you. [applause] [inaudible] let me start with the couple. Lets talk about government appropriations. [inaudible] you have to look at the role of government visavis the private sector and very few investment governor can make that the private sector would not be vast. The National Defense and perhaps in basic Scientific Research the individual companies dont have the resources or the incentives to do that because they get used by other companies. I would say that is the role of the government in terms of investment. Another investment the government could make is rolling back some of the regulation. Politicians can make an investment in Social Security by gradually raising the retirement age and changing the indexing to Social Security benefits and the economy to price indexing and security benefits and the economy. Paying for programs that wont even be there when they retire. May balance out the American Association [inaudible] [applause] let me follow up with you. How to process a program for a younger person like Social Security. Having this government acts as would be relieved of the burden of caring for elderly parents. You wont have to worry about their pensions because of Social Security. One thing im not being relieved of his pay in higher taxes. If they continue in 2050 young people will be paying 30 of their paychecks on Social Security and medicare. That is not possible. Theres no way the government can take 30 for entitlement ignoring other federal taxes. Its not really working out too well for them. Youth unemployment pushing 50 in places like spain and youth unemployment in portugal, italy. We are taking a third of young peoples hardearned money just to support the system theyre never going to get a cent. Young woman in the purple bear. [inaudible] [laughter] thank you. Thank you for your talk. Thank you especially the Higher Education and ethics. Along those lines specifically a good balance between having a lower minimum wage and also going to college because first i won wonder we talk about the minimum wage to what extent you address a lot of the literature assessed by the unemployment. It is significant in that direction. You talked about the methods or anything like that. Also the argument about minimum wage in the direction and competitive markets. Most of all the workers tend to have more market power. I just wonder if its not minimum wage and we are talking about everyone not going to college, how do you assure when young people grow to be middleaged that they are able to through the market sector provide the minimum wage. Well 97 of working americans about minimum wage have their employers pay in order to retain. If you are offered the gnome wage job he was a thanks but no thanks. That is why the minimum wage the effects on the minimum wage have found its not that significant to that many people. Another reason is ive written about them and share that with you afterwards. The important and if you suggest the average wage economy which right now is 25 an hour. Thats ridiculous. A lot of people wont have jobs. Some people wont have jobs in los angeles when his 15 an hour. It is really unamerican to say you have skills under 16 an hour for under 10 an hour. We will not allow you to work in the united state. The minimum wage goes up in employers have to pay more. They will hire 15 an hour and the 725 an hour will move up the career ladder. And i would add to that when we look at the minimum wage in particular i dont see how it makes any sense to apply a onesizefitsall rate. Sure maybe wealthy suburbs in seattle. But if you bring this to rural alabama are somewhere in oklahoma and look at the statistics, and they look and calculate the average rates. You can see a lot of state are earning under the proposed 10. 10 minimum wage. So billy does not make sense in young people are going to be across the board especially in lowwage and low cost areas. Garrett has an article coming out tomorrow with the los angeles minimum wage. I believe you named [inaudible] and another few occupations. Maybe the employees will decide they can make do with one in two or one and five. If you have the initial job you could rise up and say living wage job. If you dont that is a problem. Although the average income according to the senses have a family with a minimumwage worker is 52,000 a year. A great crashing to summarize the debate. I appreciate the question. Yes. [inaudible] when you go through these different policies, some might argue from the other side it is hunting towards people in an environment that would be conducive to them having access in whatever field agriculture, energy, what have you. How do you respond to concerns for the Government Environmental conservation was unpolished these were of that effect. Okay all right. The conversations you mean more regulations to reduce the different kinds of emissions . We were originally going to include a chapter on this in the book about keeping the programs that drive away jobs and Energy Intensive industries. But my very agent said that this topic really emanates young people and it is difficult to explain the things being done for the environment actually hurt young people. Ive also written another entire book on the subject on regulating disaster about Green Energy Policies in the United States. I think young people are being hurt by these policies. Im not sure its really helping Global Warming because we are driving offshore and then it goes to some place like china or india or via tom at the regulations will be more emissions and more pollution. I dont think it helps the globe. It doesnt help the United States economy and it definitely doesnt help young people. At the company is poisoning the river or poisoning the air we have regulations to take care of that. [inaudible] but the department of energy and the epa are the perfect example to get into this Regulatory Reform. If we look at something proposed in congress right now when theres over a certain Cost Congress would have to approve it rather than the regulatory agencies functioning in an range of government even though they are not elected. This is something we can do to rein in the executive branch and push regulations over and over. The general agencies to overstate the benefits of what theyre doing and the cost because they want to keep adding. We need somebody to push back on this and they are more accountable than its executive agencies either. Young woman right there in the way back. I think you are far more armed with statistics and eyes. But i have issues with you paid in the generations against each other. The young poor people suffering because they dont have money but theres a tremendous number of very wealthy young people who are being paid sums of money i never got when i was that young without a degree. Focusing on people who are very young making no money and certainly something to be addressed. That coupled with suggesting older people or people in need which is also problematic. I think to say the Guidance Counselors are also problematic. The Guidance Counselors are also initiating now. It has become a cultural mandate coming from a peer group. I also think its a problem. Maybe i can answer this. Let her go to her question. No, i need you to get to the question. I think it is important if we look at a broader range of issues prior to moving because there are some major issues but in order to look at it with a keen eye when its a look in this timeframe. So i wasnt really a question. It was more of a response. We emphasized in the book that we dont pay generations against each other. Grandparents are concerned when their grandchildren dont have jobs. Parents are concerned and their children still live at home when they should be moving now. So this is some rain that bothers all three generations. Being economists we look at average as and of course theres some young people doing very well. Theres some old people that on average government policy is taken from a group that has less income and giving it to a group with more income and we see that in some name that should be in dead and this is something that all Generations Care about. They are all being put in to a program that wont be there when they retire. I would like to add we actually featured my grandfather in the book. I had a conversation with him the Social Security conversation do you feel like youve earned your Social Security benefits. As i guess i worked my whole career, paid into the system. But the reason we blame washington and is they took Social Security in the fourth investment program. Because of management promises they couldnt keep now what young people paying go right to people such as my grandfather. I dont think he was even they are not sitting in a smokefilled room. Itd just accumulated over time because there is a general tend the two savior of the well organized groups over the politically weak. Ill see your point on Guidance Counselors is well taken as a cultural problem. It is something you have to do check in the box in the Associates Degree going into a work force or Technical School could all be better. Thank you. Jerry, first idea reclaim his powers . [inaudible] [inaudible] why dont you two have any confidence this will happen in the future . Well, weve wrote 1 million restrictions. Were also Getting Better at measuring. We had the pages in the federal register but we didnt know what real world politics. But now we have organizations such as the Manhattan Institutes work in the Small Business and giving a facetoface and shoving the regulations have realworld effects. We are able to also measure it out or. They can see exactly what industry and agencies are promulgating. Maybe now we have enough tools to start pushing back. [inaudible] he also mentioned deregulating. President clinton managed to put in place welfare reform. And the Republican Congress favored based and changed incentives and really a number of on welfare. So change in washington is difficult. It is possible that the right leadership in very possible we will get a new interest in pushing his programs through. Paul ruby from emory university. [inaudible] i am wondering 20 30 50 tax rates. Youre not going to have enough money. What you see happening . Im wondering what could have been with the tax rates that the real money to support these programs. Well it is easy to forecast the past. The future i have more trouble with. America unlike many European Countries has the ability to have the pendulum swing back the other way. If you look at canada for example, which lowered its tax rate and now found itself with low deficit and low unemployment, the immigration system permit debt to gdp growth. I dont think we will ever get in the situation of the 30 payroll tax. People are going to vote the government now and put in place a new group with a different kind i dont think well get to them. A couple more. Chief executive magazine. It would seem switching Social Security to a trillion option paying their deduction to the government goes into some preapproved accounts that you can actually see a crew. I know the workers in chile had their blue pass books than you can actually be their pension deductions growing. That was a powerful mechanism for the country to keep that system away. Its very impressed unfortunate george w. Bush put in the statement three Percentage Points for security contribution to put the full amount into individual accounts. They died prematurely [inaudible] i dont hold out much that we would get the trillion system yet, but it may be possible with the individual account. Social security could be brought in bound by gradually raising the retirement age and changing wages. [inaudible] i look at the actual numbers here. Social security now is paying 58 Million People in knots over 1000 times more than we are being paid to program began. The people put in place Social Security not only are People Living longer and working longer, that is great as well. When it are programmed to adapt with the new reality. It costs nearly 40,000 times and that is adjusted for inflation. To help the truly needy elderly americans who have no saving are now ubiquitous and taken out 40 of federalist bending. Its really nothing like it was when it was put into place. These incremental adjustments adjustments would be great to have dramatic reform. So far the political system allowed us to make out acts over the past 10 years. Washington has been portrayed americas young. Gentleman on the far right. [inaudible] so my question has to do with the government run program in Higher Education. I know there are some economists say for example that said not Everyone Needs to go to college and some professions dont require a degree. Had you guys feel about the whole idea that not everyone should go to school and in the free market system is supposed much less people would be going to school because if i want to get a loan from a private firm. So how do you guys feel about this . I know there is this stigma about saying not everyone should go to school but it somehow antieducation or antiprogress, something along those lines. How do you feel about that . That is one of the problems i was referring to the guidance counselor. It is difficult for a guidance counselor to say you are not college material. It upsets the parents. It upsets students. But ive done research on this. To get him one of the Health Care Profession such as Occupational Therapy therapy physical therapy nursing, that costs about 6000 3000 a year. 45,000 when they get out. Its a really inexpensive path for wellpaying jobs. More people are doing it. [inaudible] theres something you just have to check off in the box. I think the employer either shifts their view but right now they dont have college degrees. More of this going aspect and any finish up way. So there is a big shift between the Public Perception of need to go to college come employers view that we wont hire anyone that didnt go to school. This is a large issue. Couple more questions. Hate on for the microphone please. So far you have predominately this the baby boomer generation as the millennial generation. To what extent particularly in Social Security and health care as a small generation visit the problems of scale to discuss . Well, anytime they bring up ideas to change Social Security, you see as drastic change is millennial. A lot of people are kind of in the same boat as millennial. Its hard to find any exact age where we see the winners versus losers. But i think people who are younger members of the generation are fitting more in with with millennials but thankfully for them they didnt come out of College Writing to the recession. They had a little bit of a better economic advantage. We dont really want more than a number generation. One of the problems at the current economy is the rates have gone down to replacement rates. We need to move up to 4 growth in order to see the rebuilding and more work supporting more people as they age. One last question. We will defer to our altars. This young man. I have two questions. One is on the minimum wage. I remember when the New York Times actually said they were against the minimum wage and they supported the earned Income Credit and basically said any of them dont need [inaudible] so a few let the markets have more people working and then those who are not making enough you basically make up the difference. So that is one question. We are responding to a young lady of how do you guys to a living wage. So lets come to the question. The second question i have is the more import question. I understand political realities make it difficult. I mean reagan came the closest in 1986 when he basically changed the capital gains. If you got rid of all their regressive taxes, like for example the sole cracked dish and are struggling to make a living whatever, lets say maybe 25 income taxes. Its very regressive. If you got rid of every single tax subsidy and congress alluded to this simply by writing a bill that says no government or subdivision can subsidize anyone other then Small Businesses with less than 50 employees on by millions. The reality is the young kid [inaudible] would you support such a total revamp of that could be accomplished. The senate not just the tax reform to younger people. It also would increase Economic Growth. The dramatic Economic Growth gained no reason that our Corporate Tax rate could be the highest in the industrialized world. An American Company wanted to bring back 100 million in the United States, the company would have to give 35 million of debt to uncle sam. The Foreign Company could use every dollar. That is why we have so Many American companies been owed by a foreign corporation. It shouldnt be like that. The individual tax rate is about 43 when you add everything onto it. That discourages work. If you had the estate tax rate would be around 50. That means fewer jobs. So the tax reform is the question. [inaudible] i would argue the same problems we see in regulation or overtime it keeps accumulating and they are writing these codes do have new competition are good in a sweet deal for itself. They have the Regulatory Reform and thats pretty much any thing we can do that is going to help young people who havent had a chance to try and work a deal. Diana furchtgottroth and jared meyer. The name of their book history and six. [applause]