Sign in to comment!

Cost Of Freedom

Hard times for CEO who gave workers a $70K minimum wage?

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.

GOVERNOR SCOTT WALKER ON CASHIN' IN


GOV SCOTT WALKER: Well, I think you want someone with a proven track record. It’s not just being in office that matters, but in our case getting things done. We fought, and we won, and we actually accomplished things in a blue state like Wisconsin without compromising our principles. That’s what people want. We had an unemployment rate of over 8 percent, and now it’s down to 4.6 percent. We made up all the jobs we lost during the recession, and our labor participation rate is almost five points higher than it is nationally. I think those are the kind of proven results, even in a blue state like Wisconsin that are applicable to the rest of the country.


GOVERNOR CHRISTIE & MIKE HUCKABEE FACE OFF OVER HOW TO SAVE SOCIAL SECURITY

WAYNE ROGERS: I don’t know why you can’t do both programs, their two different things. A flat tax is a separate thing. You can do a flat tax that’s fine; you can also adjust social security for age, that should have been done a long time ago. At the time Social Security was passed, the average lifetime then was 47-years-old. Now it’s 77. So it should be adjusted, of course.  


JONATHAN HOENIG: Well Eric in my opinion, the GOP needs radicals, it needs capitalists and conservatives, so what are these GOP hopefuls arguing about? How to save and preserve entitlement programs. I mean aren’t they the people who are supposed to be against entitlement programs? They’ve given in on their own principles to Michele’s point, and yes, we have to preserve social security, we just need to tweak it, you know a better excel spreadsheet, you know fair tax and mean tax. And you know this is the basis for the expansion of all these Medicare and Medicaid in the town programs. Just look at Obamacare. What is the call from the GOP these days? Repeal and replace with another big government program. This is why the GOP continues to lose.


MICHELLE FIELDS: I usually don’t agree with Chris Christie, but I’m with Christie on this one. However, I don’t think that this doesn’t go far enough. I don’t think this is going to be popular with Juan and many of our Fox viewers, but I think that we should permanently eliminate Social Security. I think it’s unfair to young people, they’re taking money from young people who are poor, who can use that money to invest and buy a home, and give it to people who don’t actually need social security. It’s a bad investment; the rate of return is terrible. I think that we should give money to people who need it and are in need, but we shouldn’t money to people simply because they’re old.


JUAN WILLIAMS: Look, I feel like I’m speaking for the Fox audience here, you can’t take away something that is not a welfare plan; this is something that people have paid into over a lifetime with the expectation that it will protect them against the extremes of poverty in old age. Remember, initially this was for widows and women in old age who are exposed to the worst kind of poverty and need.


JESSICA TARLOV: I wouldn’t agree with him full stop. I think we need to test the numbers. He put out there people who have $200,000 and I think $5 million in savings, are the ones who could opt out of taking Social Security benefits. He’s speaking to a really important issue that both Democrats and Republicans are talking about. In the Simpson-Bowles plan they said they wanted to eliminate the retirement age as well. Everyone completely ignored that plan and I’m not sure why. So I think that he’s making a lot of really smart points. I’m not sure the exact numbers but like Juan said, this isn’t a giveaway it’s something people have been paying into their whole lives. But that doesn’t mean that Americans, for the sake of our fiscal security going forward, might not opt out of social security if they don’t need it. I think we should give them that option.


REPORT: CEO GIVING WORKERS A $70K MINIMUM WAGE NOW FALLING ON HARD TIMES

JONATHAN HOENIG: It doesn't work, Eric. This is altruism, this idea that self-sacrifice is good, but it's dangerous. The results of this CEO’s actions have demonstrated that. He cut his own salary. Now he is renting out his own room and struggling with money, and his business, which is providing all this prosperity, has been hurt, as a result. His best employees resent him because everyone else is making money that they haven't actually earned, and he is overrun with applications for new employees that he will never be able to hire anyway. Self-sacrifice always ends up as a loser.

WAYNE ROGERS: There’s a free market for labor, just like there’s a free market for product. A job requires a certain amount of skill. To wash dishes is not the same as a guy running a numerically-controlled machine. That guy running a numerically-controlled machine is going to get a higher-level of pay because his training is higher, and he should get a higher-level of pay. So when it comes to jobs, jobs are just like products in the sense that the free market operates, and sees that somebody gets paid what they’re worth.


JUAN WILLIAMS: We don’t know exactly why his business is struggling. It’s not because employees are leaving. Unless it’s the very highest-level employees, who think they can make more elsewhere, in which case they’re free to go. The question is “is this a bad idea?” to try to reward the employees instead of the big CEOs taking all the money, and that’s a good idea.


MICHELLE FIELDS: Look, Mr. Price learned a valuable economic lesson. Unfortunately, he spent a lot of money to test his backwards economic theory when really he could have just gotten to an Econ 101 book to figure out that imposing artificially high wages is going to be a disaster.  

JESSICA TARLOV: He’s drawing attention to an income inequality problem in this country that is a very big deal.