Transportation, justice, education, pentagon. What they did is cut. Even the government Biggest Union found ways to cut the fat. When the pentagon is doing war exercises because they warn the debt is so big and a threat to tional security, if a president added 5 from on his watch and the bond market says the Interest Rates will go up if we continue to add to the debt, we have to do it now. David rick, we understand that the sequester was arbitrary. A lot of cuts were done in a sloppy manner. If you leave it up to spineless politician in beltway, you wont get anything done. I dont disagree with that. But the results of the sequester arent as bad as we thought. Theres great. One area im concerned about. Headlines out all this week pointing out what sequester is doing to the national science. Its calling that it we are entering the dark ages of the science. David by the way, you think were entering the dark ages . I know we are. I am aware, i keep up on this. I am aware of the important medical Research Going on, driven toward pharmacology. They have come to a screeching halt in the middle of the program. David it might be because of obamacare. Its not. So dont say that. David it may be. The bottom line is were not sure exactly h dangerous one thing we are sure about is that the sequester itself was not as bad as we were told it was. Right . It wasnt as bad. That is great news. I say proceed with caution here. s been a drag on the economic growth. Its likely we will see another round of sequester with the senate going over the legal spending limit later this year. That being said, we need to be smart. The area that needs it most is entitlements and david do you believe the congress is up to it . President and congress can work tether for smart, targeted cuts . We havent seen evidence of the smartness inside the beltway, have we . Not accept the sequester, but if you look at the numbers, the cbo projects social security, medicaid and medicare, spending is up 73 billion over last year. Those are areas to target. Baby steps. Move in that direction for longterm cut and spending. David is it canning spending drag on the economy . Opposite. I stimulates the economy. Thats why well get a little bit of growth this year. Where does money get none where does the government get money to spend . Taxation. So if you leave it in hands of people to use it productively, its something we all benefit from. David sabrina, you have specific places to cut more, right . Absolutely. I couldnt agree more with where we need to cut, the entitlalment program. But there is plenty of other places to start. We know that obesity rates are down. Nick that antiobesity program. Get rid of the obama phone, given to people who amount demonstrate they need a phone. What about the 20 billion in farm subsidiaries, that are going to large, wealthy farmers. Everybody has a pet project to ax. David everybody is screaming bloody murder. But think ofDiscretionary Spending. I hate that term, but that is what they use for what went up tremendously in president obamas first term in office. In 2011, Discretionary Spending increased 1. 3 trillion. We had 1. 3 trillion increase there. That is a huge amount of money. I had to go down. This is basic economics. If government is releasing less, its released in private sec for to go in production. Maybe we want to talk about the raging forest fire, size of government. Thats microsoft that will never be created. Cancer curs youll never see. Transportation innovation that wont happen. Cut Government Spending because we want the economy to grow. Better things and liberty, too. John says if you have more Government Spending it will crowd out the research you are concerned about in the private sector. You cant even argue this. We know its not true. You can laugh. I dont know how you dispute that. Most of the cancer discovers, most of the cures you talk about are the direct result of the government Participation Participation and they wouldnt have occurr without Government Spending . I cant tell you what would have or wouldnt have happened. Let me finish. Im going to finish. We know that spending led to the cures. To suggest cutting it out i hear what youre saying. Public private partnership. Nih Research Grants went out but they were the in there private sector was in there to give cures we need today. John is talking about the u. S. Dollar. When you have a stronger u. S. Dollar you have the manufacturers coming here to build plants and that creates jobs in the united states. They can report the profits back home. I hear ricks argument all the time for people who like Big Government involvement in things like medicine and research. Without Big Government involvement, we wouldnt have. Look at england for example, which has full government involvement in healthcare. How Much Research are they creating . How many new discovers are they creating compared to our economy, which is more private sector . When you get socialized medicine what you do is kill research for the future, which is why for the pharmaceutical industry in europe with it away. In this country, in terms of what nih does, its teeny part of the budget. If you want to wall it off, i can find 2 billion for the rest of the got easily to cut. Freeman said hed rather have 1 trillion balance thatx 1 trillion budget that is unbalanced than 2 trillion that is balanced. Because it takes money from the economy. David there may be things to spend money on, but if you take it out of the private economy, does it help, one, the economy . And two, innovation . I agree with everybody on this panel. But we can have arguments about little areas to cut and debt ceilings and sequester. At the end of the day it comes to entitlement. If you want to balance the economy for the next generation, look at that. David i know you are not terribly concerned about the deficit in general. You dont like big Government Spending but the deficit doesnt scare you. But the taxpayers pay for the interesten the deficit. Rather than pay interest on the government discovering new programs. Being back to ricks point, would yo prefer genentech and pfizer or merck discover cure for cancer or the government . Go ahead, rick. What i prefer is whatever gets the job done. Ask genentech let me finish. You asked me the question. Ask genentech how much of whatsn with the assistance of the government funds. David emac. In social economies you dont see the major American Brands like we have there, the soft economic power. You dont see it in china or socialist countries. There is a reason for that, because of the private sector. David that is the last word. Coming up, kistone pipeline project like this going to become endangered suspicious . What a new report says about the pipeline that could shut the protesters down and stop the president from saying things like this. They keep talking about an oil pipeline coming down from canada that is estimated to create 50 permanent jobs. With the spark miles card from capital one, bjorn earns unlimited rewas for his Small Business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. Produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less . Ahh, oh [ garth ] great businesses deserve limited reward heres your wake up call. [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose double miles or 2 cash back on every purchase every day. Whats in your wallet . [ crows ] now wheres the Snooze Button . Bounce is great because the freshness lasts for weeks in the drawer. Why cant everything stay fresh that long . [ male announcer ] how do you get your bounce . [ man ] lasting freshness. Headquarters. Have a great day, everybody. Allowing the Keystone Pipeline to built requires a finding thatoing so would be in our nations interest. Our National Interest will be served only if the project does not significantly exacerbate carbon solution. David did we find out that the Keystone Pipeline is not a solution problem. There is a new record revealing that the proposal to expand it will not impact Greenhouse Gas emissions. Steve york you say it makes it impossible for the president to justify delaying the project any longer. This president will try to come one a way to delay the thing. I would rather have oil going through pipelines than on trains and if investors are willing to finance it, go for it. Good for us. Less oil from venezuela. Good all around. David rick, the bottom line of the report, says if we dont do the pipeline we have to substitute the oil from venezuela, which is dirty oil. Be careful here. That is absolutely true. What the report was talking about is Carbon Pollution. What they said is correct. If we dont have the pipeline we have the same Carbon Pollution as venezuela. Hower, there is other, much more important pollution in my mind. That is what it does to the ground waters. I will say what i have been saying all along. We shouldnt debate this. David now the people of nebraska agree they are in favor of the project. If theyre for it, im for it. David john, what do you think . I want to go to a great steve forbes comment from years ago. He talked about the environmentalists worry about Global Warming calling it a massive human delusion. Its an arrogant solution also. In this case, if you want to fix the environment the best way is grow to economy. If the private sector wants this, it will lead to a healthier economy, healthy economies are the ones that have the best environments. David all right. Morg, hasnt the president already set out the parameters by which he would approve or disapprove of it . Now from this report we find out by his own parameters it should be improved . I would agree. It should be. But he has been putting out a lot of mixed messages here. If the president wanted to pick a bone with a Keystone Pipeline, the argument is it will drive up prices as the infrastructure makes the price of wti go through the roof, which is something were starting to see. That said, this oil is going to leave those one way or another. It will create jobs. We have seen it create 4,000 construction jobs. The construction jobs in the industry not seeing rk, unlike Residential Construction side. David emac, the president says it only creates 50 permanent jobs. Totally wrong. Talk about Noise Pollution. The president. There is a lot of Noise Pollution from the white house. It wont raise or lower prices. Even the president s own Energy Department said 167,000 jo have been created in oil and nat gas since 2007. Not the 50 he is talking about. Why is it that its always Government Spending that has the Multiplier Effect and flight sector growth has a Multiplier Effect and tax cut. Listen to. This the Multiplier Effect are restaurants, health service, oil and nat gas services to prop up around this david she is fired up. Wow dont hold back. David i didnt want to hold her back. Are you as fired up . I am david sabrina. I am pretty fired up. Look, we all know the only reason we havent seen the pipeline come to fruition is this is a president trying to, you know, appease the far left of his democratic base. This is nothing the to do with if its environmentally safe or creating jobs. I will create thousand of jobs let alone the trick this is time to turn around. I like the massive human delusion. I like the Noise Pollution, too. We have to move on. Poverty is now growing at a faster pace in american suburbs despite government handouts. Someone on cashin in says its because of the handouts across the america. That is at the bottom of the hour. But first on forbes grounded. Justice department trying to slam breaks on the american. S. Air merger. Is that good or bad news for flyers . My mother made the best toffee in the world. Its delicious. So now weve turned her toffee into a business. My goal was to take an idea and make it happen. Im janet long and i formed my Toffee Company through legalzoom. Never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. Go to legalzoom. Com today and make your business dream a reality. At legalzoom. Com we put the law on your side. And make your business dream a reality. This man is about to be the millionth customer. Would u mind if i go ahead of you . Instead had someone go ahead of him and win fiy thousand dollars. Congratulations you are our one millionth customer. Nobody likes to miss out. Thats why ally treats all their customers the same. Whether youre the first or the millionth. If your bank doesnt think youre special anymore, you need an ally. Ally bank. Your money needs an ally. David there is not a love for airlines these day as they squeeze you to smaller seats and charge you for extra bags. The justice Department Said its trying to block mergeer between American Airlines and u. S. Airway, few came to the airline defense. Could the government plan end up backfiring on travelers and the worker for the companies . Absolutely. The reason for merger is make sure they survive. Miles per hour airlines is in bankruptcy to emerge from it. They have a combined share of 25 . The real reason that the government is opposing this. The reagan airport, it would be a huge domination by t. Two thats where the people from the Justice Department go. They allowed the unitedcontinental mergeer. They earned the delta northwest mergeer. This is politics. David this is a nimby things. Not in my backyard. I see steves point. But we are seeing negative result of the merger. The prices are going up. The convenience goes down. Schedules are getting worse. I actually agree with the Justice Department on this one. This is too big. Not a good idea. David i suspect john neither agrees with you nor the Justice Department. We reentered ricks parallel uniform. Massive human delusion. 196 airlines have gone through bankruptcy in ten years. U. S. Air and american have. Which would we prefer . Companies that are profitable and successful or companies constantly going out of business or bankruptcy . Let them merge. David emac, the point is we may not like crowded seats but at least were going where we want to go. If the airlines didnt exist or these in particular, we wouldnt go anywhere. I tell you something. This is a tough debate. You are right. There is a reason why the cabin pressure on the stocks not so much in the upright position, they have lost 58 billion. David lets put up the stock figures. Because this week, when the Justice Department announced they werent going to allow the merger, guess what . American airlines and the u. S. Air stock went down. All the Airline Stocks went down. You are right. It had an effect. I am worried about the lack of catchtition. 47 p. C. Of the time, air fares went up. When you have consolidation, i hate to say this. There is a tendency that prices go up. You have seen it in telecom and other industries. David sabrina is the Justice Department right or wrong about the merger . Im with liz. The airlines have been unprofitable for a decade. I dont think they have a choice. Between a rock and a hard place here. If we want to see it get better, i have been one to scream at the ticket counter we need to see first and foremost healthy companies. David steve, again, recently, critics say they have been making money. Which may be true. That is only to make up for past losses. Is it is not david, for 100 years this industry has been losing money. David crandall the chairman of American Airlines said on the 100th anniversary of Wright Brothers he wished somebody had shut the Wright Brothers down. The only people everyone makes money in the industry except for carriers. The manufacturers make it, financiers make it, engic makers make it, the food servicers make it and carriers lose it. This is a rare period they are in the black. David Richard Branson said if you want to make 1 million, start with 1 billion and then start an airline. The bottom line, to johs point without any airline at all, we wouldnt be flying. Im much more interested in knowing why when liz and i say virtually the same thing, sabrina only agreed with liz. Well let it go. Branson did say. That its a tou business. This merger would just be too big there. Wouldnt be enough left. There wouldnt competition. David steve . Its capital intensive industry it gets new entrants all the time because of the financiers and the plane manufacturers finance you. David who is smarter, the government or free market . Or steve forbes. David u. S. Airways stock is groued over this news. A whole group of stocks are set for takeoff. Find out which ones will put you in first class . Thats coming next. David we are back. Informers are here to give you stocks ready to take off for the rest of the year. Emac . Its up 30 over the last year. Up a decent 10 over the last five years. Solid blue chip names in there. Cheap expenses. I like this on