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ARE WE GETTING PROOF THAT GOVERNMENT REGULATIONS KILL JOBS IN AMERICA?
TRACY BYRNES: Cheryl, you said it. One hundred and sixty one thousand dollars a year it costs businesses. Those are multiple employee salaries. Right now small businesses are paying an average of 11 thousand dollars per employee just to follow all of these dumb rules, and the administration plans on instituting another two hundred and nineteen regulations this year. Lord, all these businesses do is spend time complying with regulation. What about innovation and expanding the business? There's no time for that and there's certainly no money left for that.
WAYNE ROGERS: Well obviously some regulation is necessary in some cases, but of course when it's overregulated, the biggest problem with that, the underlying problem with that is big government. When you've got big government, large corporations, big unions all competing with each other, then they have to be regulated. If you had a lot of competition - competition, a lot of people in the market in the free market is its own regulator. In other words, if I had 15 people making a product, and I'm going to get the best product at the lowest possible price; I don't need regulation. When I've got one or two companies doing this, dominating this in a monopolistic way, then I need regulation.
CHRIS HAHN: You know listen, some regulations are good; some are much needed. Some provide clean air, clean water and make sure that people are safe in their workplace. What I think needs to happen with regulations is there needs to be a time limit and a one bite at the apple for regulators. Once a company puts in their applications, the regulators have one bite at the apple for people to say this is what needs to be changed; this is what doesn't need to be changed. What I hear from companies that I work with all the time is, that listen, we make the changes that the regulators tell us to make and then they come back and say here there are seven other changes that you didn't make. There should be a one-bit rule and if that happened then you could have regulations; you could protect our energy; you could protect our clean air; you could protect our workers, without having businesses suffer from the delays. It's the delays that kill them, not the cost.
JONATHAN HOENIG: That's a false assumption Chris. If not for the regulations, then business people would be screwing you; they'd be cheating you; they'd be running rampant. I mean, I know that's what many want to believe, but it's simply not true. I mean, well free market doesn't mean as you know doesn't mean you're free to cheat, free to defraud, free to poison water. The market and the courts take care of that. The point is, is that all regulators do, Chris as you said is destroy. They destroy; it comes at a cost. Tracy mentioned one hundred and sixty one grand; often times it's an unforeseen cost. They essentially destruct the free market that does the job of regulators, and it ends for destruction and loss for everyone involved.
TODD SCHOENBERGER: Heavy-handed and you can't test this. Look, for what we're seeing in Texas right now, they're talking about worrying about down-state winds, worrying about other states in the east that are going to be impacted, but realistically though, you're talking about regulations that are not fully implemented, that can be implemented and then tested again. Tracy said it best; lack of innovation. One hundred and sixty grand can go back into businesses. They really can encourage new investment as well as new products and services, which will then encourage more hires down the road. It's not just looking at it one-dimensional, one hundred and sixty k; it's what you get out of it in years to come.
SPENDING $25 BILLION TO REBUILD SCHOOLS: SHOULD WE BE REBUILDING OUR EDUCATION SYSTEM FIRST?
WAYNE ROGERS: You've got to fix the teachers and fix the students before you start fixing buildings. I mean education is not about buildings. There's no correlation between a new building and these scores. Listen, I went to school in a shack practically with a potbelly stove in the middle of the room. That's how it was heated. I'm serious and by the way by the time I finished in that school I was making all A's. Now, that has nothing to do with that building whatsoever. That building was an awful building; ugly building; everything else, but the teachers were great and the students there were interested in what they were doing. That's what makes education.
TRACY BYRNES: No, I mean wifi doesn't make a kid smarter, Cheryl. Great teachers make great students. My kids are fortunate enough to have great teachers, but not everybody does. Let's change the curriculum; let's change the way we pay these people that work so hard. Pay for performance. Get rid of tenure. Let these people earn what they deserve. We don't treat them properly in this country, that's our problem.
CHRIS HAHN: Listen, you can't learn when the roof is leaking. You can't learn if there's no heat in your classroom. Okay, this is America. We should have the best schools in the country, both with teachers and I agree there should be some reform in education, but we should also have the best facilities for our kids. This speaks to infrastructure; schools and modern day infrastructure. You know what? Rome crumbled because their roads fall; their public institutions crumbled, and that empire fell. We will do the same thing here if we won't invest in our infrastructure. That includes school buildings.
TODD SCHOENBERGER: Let me tell you, it's all about accountability and Tracy actually hit on a number of fine points there, but the teachers have zero accountability now. What's the line right now for the failure percentage when you're finally going to eliminate a teacher? You just can't because they're in this teachers' union; have tenure. They're there for life. You know what Chris, I know you ran power plants and I know you ran governments and all of this other stuff. Philadelphia's a great example. You have the head of the teachers' union there; three hundred and ten grand a year she's making. You have 25 percent of the city's in poverty. It's the most violent school district out there.
JONATHAN HOENIG: Twenty five billion dollars. So it's kind of like shovel-ready with an academic twist. It's a little bit bizarre to think we're going to save the failing public schools with a government monopoly, with more government spending, but of course you get the same appeal that was sold with the healthcare bill right? Don't you care about the children? What about the children? Yes I care about the children. Let's get rid of the public schools, that's the best thing for the children. The President missed an opportunity here to talk about privatizing the schools.
DIRE JOBS NUMBERS SPARK RENEWED PUSH FOR REPEAL OF EMPLOYER MANDATE
JONATHAN HOENIG: I mean the healthcare bill was immoral and impractical. It hasn't fixed healthcare as the stats point out, it really made it significantly worse; impractical because it does impose a major cost and further destroys what used to be somewhat of a quasi-free market, and healthcare, that's gone thanks to the healthcare bill. It's immoral because it's based on force; forces you to buy a product; forces you to pay for your neighbor's healthcare. It was designed to fail, and I hope it gets struck down in the next couple of sessions of Congress.
TODD SCHOENBERGER: Yes, I do think that we need to repeal it; however, I'm not sure that it's going to do very much for the unemployment situation in this country right now. Look, you have employers that want to invest in new hires. They can't do that thinking that they're going to have to spend x amount more dollars in years to come only because of these forced healthcare rules, but realistically the economy is still on a trajectory that's just going lower. We all have to be prepared for higher unemployment rates
CHRIS HAHN: The whole immoral thing...I don't think there's anything immoral about making health insurance companies pay 85 percent of your premiums towards healthcare. Right now they do about 40 percent so; I would have gone for a single-payer system. It would have erased the fear in the market that you guys claim is out there. It's not. They're not denying people jobs because of a potential mandate that will come in three years. So you know, it's still three years away.
TRACY BYRNES: They're not hiring because there's unknowns out there. I talk to small business owners every day and none of them are confident that they understand what the heck is in this thing to begin with, so they don't know, so therefore it prevents stagnation, and you know what? Companies should not be forced to supply you health insurance. I'm sorry. That should be an option; part of your benefits package.
WAYNE ROGERS: Jonathan's right in the fact that this is a coercive act in the first place. You're being coerced to do something that isn't anybody's business. We talked about this in the first section when we were talking about regulation. This is another one; massive overregulation. The bill again is so many pages long that nobody has read it yet; you don't know what's in it. The small business guy can't figure it out. You have no chance with this, it's got to be rewritten. If you want health insurance, there's nothing the matter with that, but you've got to rewrite this bill. This particular bill is just awful.
WHAT DO I NEED TO KNOW?
TRACY BYRNES: Even the man who created the TSA now thinks it's a complete waste of taxpayer dollars and they're not doing what they're supposed to do. He even says privatize it. Let private companies keep us safe.
JONATHAN HOENIG: Well, I'm have some success these days Cheryl with shipping stocks like GNK, Balt, Eagle Shipping, and SEA, which we talked about a couple of weeks ago. KEX, Kirby is one I'm also looking at, in fact they have a position now. They're doing quite well. The Baltic dry index is at a yearly high, so I'm parking my ship with shipping and so far having some success.
WAYNE ROGERS: Well I don't think it's going to be a double dip, you know I'm betting against that. I like one of the Russell Index funds, IWM. I think that six months from now you'll be a happy investor.
TODD SCHOENBERGER: It's a big week for housing coming up Cheryl. We're talking about existing home sales, housing index, everything's coming out and it's going to be horrific for the housing sector. Think about all the other things you have. You want to store them away? Go look at public storage right now because you're not selling the dining room set on Craigslist, you've got to put it somewhere.