Fails to raise their test scores. More inclined to stay in governments hip pocket. Convinced that the government isnt the problem how much we are giving it is. So a collective media calls a double down on the spending that is yet to work. A were trust in repeating the same mistake only this time with pricier mistakes and desperately hoping for different results. You neednt be einstein to figure it on the right or the left. This is stupid. Just average american taxpayer whose gut says this has got to stop. We stop and step way back. Were going to get to the bottom of why america keeps coming up short, and it keeps coming back to trust. Weve decided to give this issue a whole show. Its not about a spending deficit or real estate deficit or market deficit or faith deficit. This my friends is about americas trust deficit. We begin with washingtons deficit. Taxpayers see a the love the money spent but what are they getting . More than half of americans mean more government means more problems. Steve moore says taxpayers are tired of washington spending good money after bad. Lizzie mcdonald says the coverage isnt getting the proper coverage, and right now the taxpayer trust is something both parties need to address. Steve first to you, how bad is this . Its really bad. I was thinking neil when you asked me to do the show how much washington has changed in the last 25 or 30 years ive been here, when i came to wshths the federal government was spending about a trillion dollars. Now next year it will be spending 4 trillion, and adjusted for inflation more than doubling of the cost of government. And you ask people do you think government is better today than 30 or 40 years ago, and people say hell no one other example if i may, neil, you mentioned schools. If you look at whats happened to per capita spending, per pupil spending in the schools versus the 1950s and 60s, were spending three times as much as we used to. The people were saying, wait a minute, throwing more money at the problems as a lot of liberals said, if we spent more money, people say youre crazy thats the source of the problem, its not going to solve the crisis. Neil what do you think liz . Steve is exactly right. Why the media doesnt cover it correctly. John tandy the great economist put out a great story. When the government spends money that is added to gdp. When the government doesnt spend money gdp is going to go down. You can see the vicious circle that is in there. We have severe crony capitalism. The Inspector General who oversees medicare said wait a second, medicare is not negotiating drug recents with manufacturers while medicaid is. Why . The slaw written there, you know what . You cant interfere with the negotiation between Drug Companies and the federal government. What is that about . Im not sure. Neil whats more alarming to me when you talk to kids of all political strifes political affiliation, blaming it on the parents or generation they have inherent distrust of washington and institutions and inherent distrust of any one authority to get anything done . They do thats unfortunate. Im a person that doesnt necessarily believe government is the answer to all of our problems, but there is a sort of minimum they think government sets. Gone beyond the minimum . I dont think so. There may be a dearth of ideas. Neil dont you think the dearth of ideas is go back to the same old idea. Neil i go back to a point when david was mayor of new york city and asked the state to increase taxes to put more cops on the street. It was during his administration you started to see a decline in crime here in new york city, and a lot of had is pegged to increase in taxation. And legislators neil the administrator is david dinkins, now he looks like winston churchill. Giuliani takes credit for it. Neil okay. If you point directly to the expenditure and the outcome i think you will succeed. Neil my big fear is were going to say more money or get a better idea how to spend that money better but its always going to be more, more, more thats what worries me. Yeah, i think the problem with the analysis if we only have more government. The problem is this neil. The problem has gone the away from the Core Functions its supposed to do. Supposed to educate our kids supposed to build good roads and highways. Supposed to defend us not to be what happened in benghazi. The reason the government is failing and the fundamental things its supposed to be doing is because its doing too much. A good example of this with young people because these polls show young people are the ones who lost more confidence in government. When i talk to my kids who are completely nonideological they dont get how the federal government cant run a website for the health care system. Heres the thing why raise taxes when the government is wasting so much money. More than a trillion dollars of Office Buildings littering the landscape. 200 billion in overlap and duplication in the federal government. And you have an incompetent Health Reform website sucking up money right and left that is not working and its all loaded on medicaid whose budget is getting blown out right there. Talking about we dont need to be talking about a website here. We need to be talking about how our government can help, help solve problems but not be the solution. Neil why do you think after baltimore the immediate inclination is we need more money, more money. Baltimore per capita on a per student basis gets almost as much as new york city students do. Neither are breaking the walls down. Why is there a feeling that if in doubt throw more money at it . Not the fact youre throwing more money at it. The fact is how it gets spent. Neil they havent neither. I think its important to track where the money goes. And they dont. No i think thats happening. That happened in new york, and many other cities where can you actually see gee spent trillions on a war on poverty and yet to move the poverty needle. I think its moved the needle significantly. Neil 3 , 3 . That is significant. It is . 3 is a significant . Listen, but we all want to help the poor. You know what helps the poor is a job they become emotionally and literally invested in their area, they dont want to destroy their job or destroy the area around them. Neil we dont trust them . No we dont trust them. Weve thrown so much money at it already and it hasnt worked. I also dont think whether anyone, democrat or republican side, known any democrat is saying throw money at them. Neil no no no you are right to say both parties failed in this regard. They think republicans with defense throw more money at them. Where we stand on the trust issue, when it comes to government, we dont stand too well here . We dont ill give you one example what you are talking about. Ill give you a piece in the wall street journal this week we have a d. C. Voucher Program Educating Kids in inner cities by allowing them to go to other schools. Heres the amazing thing, it is educating kids, giving them a quality education for one half of what it costs in the Public Schools and cant get the liberals to support the program. Neil a lot of players not measuring up. Guys thank you. Businesses shouldnt trust washington either. Republicans offering help or democrats. Tax bills red tape pile up and uncle sam keeps piling on. Andy how do you get businesses to believe that washington has their back . You argued for many years now, they have a sense that it does not. It did help in 2010 when the republicans took over the house, and then again in 12, 14 when they took over the senate. Businesses knew nothing disastrous like doddfrank or obamacare was going to come down the pike. We have the nlrb trying to inflict the joint employer standard on franchise businesses, ambush election. An administration that refuses to implement fixes to obamacare like the 40 hour work week. President obama telling the department of labor to expand the class of employees entitled to overtime so people are compensated for time spent instead of well spent. You have a minimum wage increase at some point. It is about the 10 12 point. Have you employees paid more than they contributed to the profitability of the business. Neil what do you do . In that environment, andy, what do you do getting businesses to have washington help them rather than stab them in the back. The larger ones have a lot of money abroad. 2 trillion sitting offshore, and its not coming back because its going to be double taxed or taxed at a high rate so businesses keep it. Including very politically names like apple. How do you win that money back . Well theres really the only way is to elect politicians who are committed to seeing the economy grow who are not committed to seeing the government grow. Weve elected a president now, hes been president six years, president obama whos committed to Big Government. And if youre committed to Big Government, youre going to scare businesses. Until you get that commitment to Economic Growth to getting people jobs, to creating opportunity and reducing poverty by creating jobs and Economic Growth. Until the government gets that focused, businesses arent going to trust the government. You are looking forward to additional and added expenses. The higher the expenses are the lower profits are, the lower the projected profits. The less likely you are to expand or build or open a new business and the less likely you are to create jobs. Until this Big Government attitude begins to decline. Look we spent last year, the National Association of manufacturers and the Small Business administration estimated that were spending about 2 trillion. American businesses are spending 2 trillion in Compliance Costs with the current regulatory environment. My buddy steve moore was mentioning that the government spends 4 trillion. You can take half of that amount, youd increase the amount that businesses are on tap for by 2 trillion, which is what they have to pay in regulatory Compliance Costs. Neil the money offshore, it is an interesting fact. Andy, good seeing. You nobody is going to bring the money back if youre going to have to pay more taxes on it. The bad thing is when Foreign Companies bring the money back they dont have to pay tax on it. Neil i love you to death, andy i dont trust you in this sense. You are a fast food executive and youre thin. That doesnt jive. It takes away all your credibility. I kid you. As always a pleasure i love the piece you wrote about scott walker, keeping in mind the numbers are not what the media says. Andy thank you. Weve heard of young the restless, but young and investless . When it comes to stock, most young folks want nothing to do with them. Why Charles Payne says trust him. Youll regret sitting this one out, guys. Neil well heres why they often call this market a stealth rally. So many arent participating in it in fact, more than half of americans dont own any stock at all after this incredible runup, because they dont trust this. They dont trust stocks. When things go south investors run scared. Look what happened on october 19th, 1987. I was there for the scare. Suddenly it was a freefall a better than 22 pummel in the dow and nervous traders were looking over their shoulders. What they dont know and readily worry about is how far down the correction has to go. How long it will take and how many more people will be hurt in the process before the market decides if it decides to turn around. Neil well, you know youll be happy to know that markets did come back and puberty did kick in. [ laughter ] now you know the rest of the story. I hate when they staff does this to remind me. Same lego hair then, same lego hair now. After the 2008 meltdown when people thought stocks couldnt get lower, they bounced back to record highs. Charles payne says lots of investors are kicking themselves for missing both opportunities, but it happens a lot. You can understand in the moment its frantic. Sure. Neil heres where i think its different with this one charles once twice burned a lot of people in particular i dont want anything to do with this t . Theres a lot of people who watch from afar as they were growing up. And you see your parent, golly. We lost it all. And a few years later we lost it all. Were Real Estate Investors now golly, we lost it all. You hear they would rather have experiences on making a lot of money and missing the fun things in life. You put it all off, family formation investing, put it off because you might as well live in the moment, have fun while youre young you dont know whats around the corner. Neil is it parents experience singed them . I think it has. Were seeing this Group Starting to emerge as entrepreneurs family formation, theres still renters above buyers, and you will see them invest in things. Theyre in the midst of the excitement thats whatsapp the perscopes they are the ones making it happen. Neil and gravitating, they are still interested in getting money they dont want to get it by means of the market or whatever . They love spending it, right . Its like yolo you only live once, seems like i scratched the room but you say to what to kids in general millennials, for want of a better definition the 18 to 30yearolds saying i dont trust that guy. They have too much money in cash, cash goes nowhere. Deteriorates every single day in worth. Neil what the george soros says and all the guys say hey, this is getting long in the tooth. It is long in the tooth. But i dont know that they should play the market timing thing. You started this thing off the right way. When we are in the midst of a crash everyone is running, very few have the wherewithal to buy. If you cant buy now, you think you can buy in the middle of a crash . At 23, you will go through another 10 crashes. I hope i live through another five major crashes. That means ill be 90 years old. Market is at a new alltime high. Dont trust wall street trust the things you like. You like under armour go with under armour. You are right, theres a lot of knuckleheads and thievery ill be the first to admit that. You will do well. Neil a lot of people feel young we are close to the fifth anniversary of the flash right . Sure, sure. Neil see thats what happens. Just when you get in an idiot does it. No doubt about it highfrequency trading isnt illegal but makes the market volatile. Government and wall street, there will always be theft too much money sloshing around. Neil people like nike or apple and say charles, i agree, buy what you like like what you buy, know what you like, like what you are buying. They could be rich temporarily. In other words, the valuation can get head of the fundamentals, but the fundamentals are also improving. Neil saying that about apple at 50 and 60 a share. Trying to pick the top is a tough game. Neil and you say hold tight. Youre not going to pick the bottom. If you are going to be in it 25, start to nibble you know its great. These young people know more than anybody on wall street. They know the greatest things going on right now. If they could put their money with what they know, connect the dots theyll have an amazing life. Theyll have a fun youth fun middle age and amazing golden age. Neil i find they wine a lot. The whining gets them what they want. Neil a quick quiz, if Americans Trust government the least who do you think is next to least . The president . The media . Big business . Or Charles Payne . The answer right after this. You do all this research on the perfect car. Gas mileage , horse power. Torque ratios. Three spreadsheets later you finally bring home the one. Then smash it into a tree. Your insurance companys all too happy to raise your rates. Maybe you shouldve done a little more research on them. For drivers with accident forgiveness Liberty Mutual wont raise your rates due to your first accident. See Car Insurance in a whole new light. Liberty mutual insurance. 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Now everyone can get highly rated service even without a membership. You can shop special offers or just tell us what you need and well help you find a local company to take care of it. Angies list is there for all your projects, big and small. Pretty. Come see what the new angies list can do for you. Neil the government does this, the government can do that. Is the media simply too busy kissing up to the government to objectively cover the government. The media is one of the least trusted institutions, second only to congress. Thats according to one recent poll. Media watchers say that the Fourth Estate stopped being the governments watchdog decades ago. Brent interesting to me that despite all of that its like the media wants to double down on the faith in government and question those who would dare question government. Yeah, it is incredible that theyre response to be marginalized is to be more marginalized. Theyve become so radicalized. Weve seen something in the last two years i hadnt seen before. Since 2008 i should say. This commitment this deliberate commitment not to report news, if it harms the narrative of the left. This is not one example this is not two examples i can give you 20 examples. As a matter of fact you and i talked about this many times on the show, they are deliberately not reporting news. Neil lauren, to what end . They must know they hurt their own brand weve seen it happen in print, one newspaper or another, whether