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HEALTH CARE COSTS TO JUMP BIG TIME DESPITE NEW HEALTH CARE LAW
JONATHAN HOENIG: We've predicted this on the show for well over a year Cheryl. I mean the goal of Obama-care was to destroy the private market for health and health care in this country and it's essentially succeeded. Before Obama-care, government already accounted for 50 percent of health care spending. That's going up, as are other costs you mentioned. You know, we're looking at $500 billion in new taxes associated with Obama-care and tremendous loss of value. Loss of coverage; thirty-five million people, and according to Forbes, loss of jobs as well. In the health care scientific devices category alone, fifty thousand people will lose their jobs, but there's two ways to deal with folks; reason and force. When you deal with force, exactly as Obama-care does, wealth destruction always follows.
GARY KALTBAUM: Look, it was a gimme that this was going to cost more. The amazing part about it; anybody believing it couldn't cost more. You add millions of people to health care. Costs are going up and also businesses. When you tell them you're going to fine them a small amount if you get rid of people off of health care. That forces businesses to give it to the government so this is a lie from the get-go. It was a sham and you know this seven percent number? It's a lot more than that. We're talking trillions of dollars. They sold it as this 800 billion. Name a government program that ever came out that did not cost trillions more and just another sad story to watch.
CHRISTIAN DORSEY: Those are the projections and this report actually basically confirms what we've known all along; that health care spending is going to continue to increase. It can't do anything otherwise, but let's focus in on the Affordable Care Act. If you actually read the report, what it says is that over time, it's not going to contribute any more to health care spending than if we didn't have the law, but at the same time we're going to be insuring 20 million more people and providing better coverage for everybody. So if you could insure more people and get better coverage for everybody at the same cost, that to me seems like a no-brainer that you would do it.
WAYNE ROGERS: Well to my good friend Christian's point, he says if you read the health care law, let me tell you something. You see this? This pile of paper right here is about one fifth of the act. Twenty-five hundred pages long you can dump it in the garbage can. It's not worth anything. You can't read it. The people who passed it, the Congress, the people we elect who are supposed to represent us didn't read it. You don't know what's in it. Nobody knows what's in it. I'll tell you health care already is costing 22 percent of the budget. It's going to rise. You talk to anybody who has a small business, a small business being defined as someone who hires under 50 people, they're health care went up last year 15 percent. It's going to go up next year. It goes up every year and you've got to stop it.
TRACY BYRNES: The unintended consequences here Cheryl, are that large employers are going to drop coverage on low wage employees. That's not a good thing. I don't care where they end up. That's not a good thing that corporations are making this decision to basically say it's too expensive to take care of our people and secondly; Medicare and Medicaid is still not being addressed. You're going to see enrollment in both of those by potentially 30 percent by 2013 so let's just pile on the costs here of the things that we cannot afford.
CITY OFFERING TO PAY STUDENT LOAN DEBT TO ATTRACT YOUNG RESIDENTS?
WAYNE ROGERS: Why should you take taxpayer money to attract people to come to a town? By the way, you know in the 1700 and 1800s we had towns that went broke. We have ghost towns throughout the United States that once had a big flourish in their economy and now they no longer do. Who says they have to work? Niagara Falls has gone from 100 percent of their population down to 50 percent of their population. They're worried about that. They ought to change the name of the place to Viagra Falls and bottle the water. Maybe that will help.
JONATHAN HOENIG: What about a circus? Why don't we incentivize falafel stands? Cheryl, think about it. It's essentially Cash for Clunkers for a city right? I mean, to Wayne's point it's more intervention; it's more evasion of reality that maybe Niagara Falls or the middle of Kansas isn't a huge productivity center anymore. I mean this is a short-term stimulus that amounts to taking money from people who've earned it; taxpayers. Remember them? And giving it to favored groups and it always results in tremendous wastes of money. By the way, the fact that these kids have so much student debt to begin with, that's a result of government intervention to begin with, with the student debt bubble that they've created.
CHRISTIAN DORSEY: You know look, it's four bucks per taxpayer in Niagara Falls so let's not make this the end of the world and municipalities always try to lure in business. This is another approach. That said, I don't think it's going to work because young people are attracted to cities and towns that have economic development and jobs. Good jobs that also have community development and if Niagara Falls is not going to invest in those areas, this is really not going to work. So, this has got to be a part of a comprehensive, community revitalization if it's going to have any impact.
TRACY BYRNES: I'm moving my kids up there if they're going to pay off their loans some day. We're going! We're out of here. Look, let's think about this. First of all, the whole notion of the student loan is the problem. Jonathan mentioned it before. The government was giving out free money. Tuition keeps going up because of it. Universities know all these kids need is a pulse to get more student loans and as a result, they're laden with all this debt because again, the government created this mess. To lure these kids to these towns is ludicrous. I can't believe anyone from the town would agree to this because my guess is they all paid off their student loans at some point. These kids made an investment in themselves, albeit a bad one maybe if they're still carrying all that debt, but they made an investment nevertheless. No one's going to pay you back if you invest in a stock that takes a big loss Cheryl and that's essentially what this is. No town is going to pay for your investment portfolio losses and no town should pay for your student loan losses.
GARY KALTBAUM: Look, I understand that cities try to attract businesses and they give incentives, but this is paying off loans and it's paying off on an individual basis and it's not going to help towns get better if they bring in a few people. As everybody's been saying, Niagara Falls and some of these other places that may be have some blight; they've got to change their structure. They've got to change what they're doing from the top down and given a few bucks to pay off loans is not going to do the trick and by the way, my bigger point is, all this government giving to this person and giving to that person and paying off this and paying off that, that's not what government was made to do and it's getting tiresome to watch.
'WHAT THE percent^&*?': GOVERNMENT FINING PEOPLE FOR USING PROFANITY
TRACY BYRNES: Cheryl, I don't know what the fudge these municipal lawmakers are thinking. Look, they screwed up their municipalities. Municipalities are broke. So, instead of fixing the problem, they're going to fine us six ways till Tuesday for all these little asinine things. This is not the way to do this by the way and you know what? My money stays with me. I spend my money properly. They don't know how to spend my money anyway.
WAYNE ROGERS: Listen, the people make the law in their community. When you bring people together and they make decisions about how behavior should be amongst each other, they're entitled to do that. They vote for that. If they vote for that, that's what should be. If they don't like it, then vote against it. You get a traffic ticket they vote for that. They vote for certain things that are against the community as a whole. If you don't like that, move out of the community.
CHRISTIAN DORSEY: Eighty percent of the residents of that town voted to support this decriminalization of cursing and instead make it a fine and you know, if $20 is going to be the penalty for cursing, I think people are probably not going to curse and I think if $1,000 could be the result of letting your property get blighted, you're probably not going to do it. So this is really not about the cash, but providing enough of a financial disincentive to get people to do what they should be doing anyway.
JONATHAN HOENIG: It's unfair Cheryl. I mean every infringement on human rights starts by targeting the least attractive people and I strongly disagree with Wayne and Christian that the majority can vote for whatever we want. We don't live in a majority-rule democracy. We live in a system of constitutional republic where individual rights, mainly the right to speech more than any of them, are protected by the constitution. So the notion that 80 percent of the folks don't like this word or this article or this TV show or this political idea; I mean that's not congruent with American ideals. It's more congruent with Socialists, Nazi Germany or Socialist North Korea.
GARY KALTBAUM: Look, first off this is proposed by government not by the voters, but look, government doesn't give a hoot about whether your grass is too low or too high. It doesn't care about whether you're cursing or not. They care about bringing in the bucks. It's why slot machines are going all over the country right now to bring in dollars. It's why you have cameras for traffic to bring in dollars. That's what this is all about and anybody thinking differently, no.
WHAT DO I NEED TO KNOW?
TRACY BYRNES: Foreign investors buying up U.S. homes is good news.
GARY KALTBAUM: Bargain hunters helping discount retailers like (FDO).
WAYNE ROGERS: Cirrus Logic (CRUS) is a logical pick to make serious cash.
JONATHAN HOENIG: Improve health care and your profits with (LLY).