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WHITE HOUSE TASK FORCE TO PROBE WHY GAS ISN'T FALLING WITH OIL
Eric Bolling: Prices move up very, very quickly as the price of oil goes up. Prices at the pump soar all the way up. Again, people are making more and more money on the way up. On the way down, this is when gouging really takes place, on the way down. Not on the way up. Here is why, people are so happy prices are going down, when the price comes down, I don't know, a penny, two cents, 5 cents, looks great. Prices are coming down. Meanwhile with the massive drop in the oil price, the gasoline price should be dropping with it. Maybe not overnight. Maybe a week or two, but as soon as that inventory that's under the ground is worked through, their own system, not the refining system, just the retailer system, they should be dropping prices, I will tell you I spent the better part of two years, every single day in the gas stations working for Mobil oil at the beginning of my career, these dealers, love, love lower prices not higher prices they can make fat margins.
Jonas Max Ferris: They've been doing a lot of talking related to oil because gas prices have been going a lot higher, there's nothing they can do it about it and they want to look like they're on top of it and talking about this, but the reality is the White House has a very little role in the phenomenon. Gouging is overblown, it's really not something that goes on hugely and in fact we'll see gas prices drops in a few weeks given the recent crash we saw.
Tobin Smith: I finally understand, Eric spent two years, sniffing gasoline and I think that he forgot a few things about economics. Number one, the oil that is purchased, he's making the assumption there's one-to-one correlation between the oil that's purchased and the gasoline at the other end and that's not correct. Fact is in most cases you look at this thing called the crack spreads and profits they make, oil they turn into gasoline. If you look at the crack spread the refiners have been losing money and margins are going.
Gary B. Smith: Exactly. Eric, and Toby lost me at the crack price, the rack price, whatever. I think the issue is simple in this case. One, the Congress has investigated this and never been remotely as Jonas points out. The bigger issue is why the administration is even, are these public utilities? They can charge what they want. Look, hold on a second. I don't like filling my car more than anyone else and pay $100 to fill it. I hate it. It drives me crazy. But that's not my point. I don't like paying a lot of money, $5 for a cup of coffee at Starbucks or are we going to investigate Starbucks, they haven't lowered prices when coffee price goes down. This is ridiculous; this is not the government's business to be in. And they should step aside and let the market operate.
Sarah Flowers: This is the government doing what it's supposed to be doing, looking out for the average consumer when you got BP with 7 billion dollars worth of profit. Which is their job, they're a company out there to make money, but we need somebody looking out for the consumer because it's the other end of the equation.
STIMULUS CRITICS: JOBS REPORT PROVES WE WASTED NEARLY $1 TRILLION
Tobin Smith: Maybe businesses have deserved that government spending is finally going down to hiring and maybe they're now they're confident to do hiring and there's got to be a correlation there. We know of the 80 percent of the money that got on this idea of stimulus, most of it went to transfer payments, and went to states to not hire anybody to keep employees they couldn't afford. When that money ran out, guess what, the music ended and states are laying off and now finally small businesses are getting the confidence to hire people. It's not that complicated.
Sarah Flowers: Well, one of the primary goals of this bill was to create private sector jobs and that's exactly what we see. The transportation dollars, for instance, went to states who had road projects, bridge projects and other projects they went out and hired people to do the jobs and bought goods and services from companies that supply cement, that supply paint and other things that go into completing those projects, that creates jobs in the private sector as the person who gets the purchase order at the cement company says, I need more people. I need to go buy more goods to fulfill this order. It's basic trickle down.
Gary B. Smith: Yeah, a couple of facts. One is that the unemployment rate is still higher than it was before all this one trillion dollars in stimulus was spent. And number two is, I think the value of each of the green jobs that was created, is well over a million dollars. I think if you go to recovery.gov, the cost per job created in total is well over $100,000, and finally the reason you're seeing the private sector created, is maybe they feel a little optimistic. Those jobs that Sarah talked about, the road jobs are temporary jobs; the government can create a lot of temporary jobs. That doesn't help the economy. What helps the economy are companies and industries that are going to be there for a while and that kind of thinking only comes from the private sector, not the government sector. So maybe Sarah and i agree on the same thing I don't want the Government to create more jobs.
Jonas Max Ferris: It was a bridge to somewhere. Okay, here is the situation; we never really got a new government hiring program out of either administration. All these programs we've got were to prevent job destruction, there were no jobs, don't even call it jobs. There were no jobs it was give States money so they don't fire people and give the auto companies money so they don't fire people and give banks money so they don't fire people. There wasn't any plan to hire a lot of government workers that was not on anyone's agenda anywhere.
Eric Bolling: Real quick, it has nothing to do with the recovery we're seeing in the job market. It has nothing to do with the stimulus plan. It has everything to do with the the Bush tax cuts being extended, that's why, if you look it lines up perfectly. When the economy stopped reducing jobs and creating jobs, it lines up when small businesses realized they knew what the taxes were going to be.
REPORT: TEACHERS UNION PLAN TO SAVE JOBS MIGHT COST PARENTS $3,000/YEAR
Gary B. Smith: Let's just say that this went through and you only have the four school days. The parents then have to provide either day care, baby-sitting, whatever, that could come to roughly $3,000-$4,000 a year on the parents. Why? Because the school districts, public education will not tighten their belts. You have this bloated monopoly that says we need to protect our pensions, need to protect our jobs and need to protect our salaries. Let's put it on the parents' backs. Can you imagine if McDonald's said we have to pay our executives and everyone a lot of money and we're going to close on Saturdays. The competition would eat their lunch. However, in public education, no competition, beautiful.
Jonas Max Ferris: First of all, companies like McDonalds do make decisions to cut corners to save money. The school is not profitable. It closes a day, it doesn't lose money, it stops spending money, in fact, yeah, a lot of this is because the school buses don't run on peels, they have to pay gas and costs are going up.
Eric Bolling: Janitors and cafeteria workers are not part of the teacher's unions and don't have bloated wage and benefit packages and it doesn't matter if they work five days a week or one they get paid the same. The janitors, cafeteria workers are paid by the hour, so when you cut their hours, they're screwed and our taxes are going to stay high. It gives the teachers, another day off, aside from the three months off in the summer they already have.
Sarah Flowers: How we ought to be approaching this question is to say how can we provide the best education to our kids for the money we have available. Study after study tells you the way do that is through one-on-one attention, smaller class sizes, and parental involvement. I think we should find other ways to put money into the public school system. That said, is that the only option? If this is the only option then I would definitely go for increasing the school day, and keeping that one-on-one teacher ratio lower.
Tobin Smith: The United States is the only country in the world that doesn't have all year round school. If we had all year round school, we would cut 20 percent of the costs and kids would get better grades, too.
Tobin Smith: (ADM)
Gary B. Smith: (UUP)
Jonas Max Ferris: (DZZ)
Eric Bolling: (LMT)