• With: Tracy Byrnes, Christian Dorsey, Jonathan Hoenig, John Layfield, Wayne Rogers

    DISCLAIMER: THE FOLLOWING "Cost of Freedom Recap" CONTAINS STRONG OPINIONS WHICH ARE NOT A REFLECTION OF THE OPINIONS OF FOX NEWS AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE WHEN MAKING PERSONAL INVESTMENT DECISIONS. IT IS FOX NEWS' POLICY THAT CONTRIBUTORS DISCLOSE POSITIONS THEY HOLD IN STOCKS THEY DISCUSS, THOUGH POSITIONS MAY CHANGE. READERS OF "Cost of Freedom Recap" MUST TAKE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS.

     

    BATTLE OVER LONG-TERM BUDGET DEAL ERUPTS AS SHUTDOWN LOOMS

    TRACY BYRNES: Yeah, well right now they're saving $2 billion a week for the rest of the budget year, that's $48 billion versus the long term deals, where you're looking at 33 billion. So, we're saving money by doing these short term deals. Now, look I'm the first one who says we have to plan for the future but one it's more money and two it's like throwing a toy to your kid. You keep them busy, they're all busy trying to beat these budget constraints, they're not spending money down in Congress. So, by keeping the kids busy with short term deals we're saving our country money.

    CHRISTIAN DORSEY: Saves money on one hand but it wastes money on another. The three reasons why this is bad: first of all you can't plan beyond the short continuing resolution period so it's grossly inefficient and unproductive and secondly, it's costly because you can't make long term deals with vendors or contractors so it's wasteful and Tracy like you said they're preoccupied in Congress with negotiating these deals from month to month. The agencies themselves are preoccupied with making contingencies for government shutdowns or they're not taking care of the people's business.

    JONATHAN HOENIG: They're not actually making any real cuts though, Cheryl either. I mean that's to me the most amazing theater, that's what this is. I mean Tracy you're applauding these cuts, what cuts? Six billion dollars out of a 2.3 trillion dollar budget. So they took out 2 billion dollars out of the census bureau, that's great but at that rate we'll reduce the deficit, I don't know, some time in thousands of years from now. If we're going to make cuts, we need to make actual cuts not just in the dollar amount, Cheryl, but in the actual nature of government. Right now we spend money on the government for healthcare, a researcher, an educator. Make some substantial cuts in the scope of government, cut the size significantly, not this stuff around the edges.

    JOHN LAYFIELD: Let's look at simple numbers. Let's take away nine zeros, let's say the government owes 14,000 and not 14 trillion. Now, it makes sense to the average person out there, what you're talking about cutting are the deficits here- 1650 dollars is our deficit here if you take 9 digits out. We're talking about Democrats want to cut four dollars, Republicans want to cut 60 dollars. We're trying to negotiate can we cut 30 dollars total, that's less than 1 percent of the total budget, what we're adding in deficit 1.6 trillion dollars, the interest alone is going to be around 60 billion dollars. We're losing ground completely. These guys neither one is doing anything for the long term good. Keep the kids busy, I'm for it.

    WAYNE ROGERS: Well, the reality is that they can't. The politicians don't have the political fortitude to deal with it so they are going to do these interim cuts. They knocked off 4 billion for the March thing, now they're into April, another 6 billion. Every bit helps, I grant you that everything Jonathan says is true that ultimately this isn't a big deal but they're not going to get to the big deal because they don't have the political convictions to do so or the coverage to do so. The only way you're ever going to get that is if the people rise up and do something about it themselves. You can't trust them to do it because they've never done it in the past, they're not going to do it in the future.

    NEW CALLS TO FORCE ALL WELFARE RECIPIENTS TO WORK FOR CHECKS

    WAYNE ROGERS: That's what the law says, they are supposed to work to get their welfare payments. If they don't work because once again it's another government program that fails because Congress doesn't know what they're doing, regulators don't know what they're doing, it shouldn't be regulated in the first place. It's very simple, you've got to work or you won't get the check. One arm of the government doesn't know what the other arm is doing, they have no idea. So the people who are supposed to work by law in order to get the payments don't do so. How can you blame them?

    JOHN LAYFIELD: That's the problem we have with generational poverty, we've thrown money at welfare recipients and say just stay out of the political spectrum while we run for office and we just forget about these guys. I think we're doing them a disservice and communities a disservice. Remember the jobs numbers yesterday, the one weakness was government layoffs. State and local governments are massively underfunded. They are laying off people continuously, and they will continue. When the new year starts on July 1 they are going to lay off even more people because their budgets are so underfunded with no more stimulus money. You can supplement that by using people we are already paying on these welfare rolls to do some of the work we're losing in government employees. And also teach these guys a trade they can perhaps go into the workforce themselves and do something. Let's break generational poverty.

    CHRISTIAN DORSEY: Look, I'm all for making sure that people who have been left out of the workforce and who are on welfare receiving public assistance that they get the skills to be self-sufficient, but remember welfare is now administered by the states, it's not an overall federal program. And what is happening in New York is cause for alarm, not praise. They are laying off transit workers and replacing them with lower cost workers. This is in essence getting rid of jobs for people, adding to unemployment, and then saving money by putting welfare recipients in those jobs that used to be held by non-welfare recipients. It's not improving the overall job situation in New York or in the country. This is bad policy.

    TRACY BYRNES: John's point is the right one. It's generational poverty that we have to stop. And if you continue to hand out welfare checks that's what you're continuing to do. Much like offering people over 90 weeks of unemployment, it promotes apathy. We need to give people a reason to get up every day. And you know what, if cutting transit worker jobs because there are just too many and offering small tasks to welfare recipients is the answer, I think communities will think agree it will benefit all of us at the end of the day.

    JONATHAN HOENIG: Well, what about just getting rid of welfare? Let me just throw that one out there as a real alternative idea. I mean, point to me where in the Constitution it says anything about charity. It does not. Where the founders just jerks that they didn't want to put that? No, of course because charity is something that should be privately motivated. And I'm sorry, but working for money - that's called a job, not another government assistance program. And Tracy is right, it creates dependence, it discourages actual charity, and it wastes capitol.

    NEW HEALTH CARE LAW REGULATIONS RENEW FEARS THE LAW WILL DRIVE UP COSTS

    JOHN LAYFIELD: This is what we've warned on this show would happen for over a year. Look, we've had no health care reform, we've had insurance reform. We've added 30-50 million people to a broken system and then put regulations on the insurance companies - you can't deny preexisting conditions, they can stay on the rolls until they are 26 years old on their parents' insurance. We've done nothing to reform health care and now every time a politician wakes up and has an idea they create a new regulation on top of a stupid regulation, which adds to the bureaucratic system. We've got to reform health care, we have not done that.

    CHRISTIAN DORSEY: Actually this is not going to add to the cost of health care. These are the regulations that are going to drive down the costs. Medical providers can actually create and participate in saving money through Medicare and then share in those savings once they are realized. It's actually the best part of the health care bill, that's why they were so eagerly anticipated.

    JONATHAN HOENIG: We've talked about this for over a year. The whole point wasn't to pass a smart piece of legislation, but simply to pass a piece of legislation that established health care as a right. And not even a year later we've got hundreds of pages of exemptions, regulations, stipulations, and Christian I'm sorry, I happen to believe the health care professionals are pretty smart, they don't need the government to tell them how to do it.

    TRACY BYRNES: Christian, look, even Nancy Pelosi said "let's pass the bill so you can go home and read it." No one knows what is in this thing and as we learn more and more about it, there's a reason why companies like McDonalds are asking for waivers. The CEO of Starbucks says it is costing them way too much money. There's a reason for that, it's because no one knows what is in it.

    WAYNE ROGERS: Of course this will cost us more money. The original bill is 1,990 pages long and now you're going to add another 400 plus pages of regulation and you're going to ask the regulatory authorities to get involved in this. It's going to be a nightmare, it's another government debacle that we're going to have to pay for, it's stupid. The whole thing should be cancelled and we should start all over.

    WHAT DO I NEED TO KNOW

    TRACY BYRNES: $5 ATM fees are good news; the backlash will repeal new regulations

    JOHN LAYFIELD: Unions, retirement plans get $2 billion bailout from health care law -- report

    WAYNE ROGERS: Take advantage of rising foreign markets, buy (EWY)

    JONATHAN HOENIG: Profits won't sink if you buy shipping stocks and (SFL)