Also in this playlist...
This transcript is automatically generated
Kids struggling to find work -- returning to Ron Paul for answers now that it's clear the current administration's policies are creating massive unemployment.
For sixteen to nineteen year old to look at that chart the White House is so worried it's ready to try and out now Brian.
Can't make this stuff up tonight President Obama himself is announcing that the federal government will throw one point five billion dollars.
Towards -- summer jobs push for young people.
And hopes of getting.
Their votes this November here now to discuss -- my freedom fighters Fox Business anchor and my colleague Liz Claman.
Richard Harris at Montclair state university law professor and Benjamin Powell Independent Institute senior fellow and it's -- -- Is it any of the government's business to provide jobs for young people on the summer before presidential election didn't.
Judge if you had your way the government wouldn't fill potholes okay.
Yeah federal government not the federal government in this case don't mind that the government is doing something to try and get the youth employed.
A few more details on exactly what they're going to be doing but this is one thing I think that you can't be cynical about look at say the youth is gonna vote anyway trust me -- What they'll put the politics out of this Ben Powell if you could just economically.
-- is that one point five trillion better spent.
In -- federal government jobs program or in the bank accounts or wallets of the taxpayers from -- -- what's extracted.
It leave leave the money in the private sector the government's not going to create value with these jobs.
But if the government wants to do something to promote youth employment -- throwing money at the problem that could tighten regulations out of the way.
And actually promotes employment so it's no accident that youth unemployment is really high they're the ones that are hardest hit by minimum wage laws.
But take them off the bargaining table where they can't find employment.
So 98% of hourly workers aren't affected by the minimum wage the productivity is much higher but for young people who have less skills.
They are affected by about half of people affected by minimum wage 125 and a quarter and were teenagers it's no accident than in a recession.
These are where you see the unemployment score about a quarter a 25% -- 14%.
Got it progressing Harrison on on the politics is this very obvious or is this meaningless -- president is throwing cash at young people who seem to be going to run pool in droves for a variety of of reasons.
I don't know that the people who the young people who are going Iran halt work are the people being target -- this mean.
What we're looking at here is mentoring programs targeting particularly.
Economically deprived young.
We're saying yes those were the hardest hit by this recession we also see significant drop since summer employment and so politically this is a very -- By the president.
Nonetheless he will wind up getting a significant chunk of the support.
And I disagree what we've seen is increases in the turnout of 1930 year old isn't -- I that he has this kind of disposable cash -- -- -- at his discretion.
It's a big question I think a lot of -- a lot of money -- -- -- what people are looking at that -- -- -- coming up from but you have to look that it didn't just materialize.
This was built -- part of other program got it.
It plants got it tonight we're learning that Bank of America anxious this is and -- only in America tried to foreclose on a Florida homeowner over a tight vote that amounted to an error and eighty cents.
Tom -- was approved for a mortgage modification program but nearly thrown out of his house.
-- accidentally hit a zero instead of an eight while trying to make a payment over the telephone.
Public outrage -- mr.
Moody's case to light and Bank of America restored him to was modified status.
Isn't this more evidence that bailouts reward incompetence.
And hurt the little guy is this -- big business operates.
I think it is you know -- I'll tell you a story I've paid my mortgage about two months ago I put in the wrong -- on automatic billing.
The mortgage company held my mortgage payment for a month.
Didn't credit my account it was taken out of the bank this kind of computer glitch is I think something endemic to how this modern economy is working.
Our -- pelvis is not too -- indict her crucified Bank of America this is one of several of these horror stories he sent him a check for the eighty cents and they wouldn't accept it.
Is this place is -- a role for government in this or is what -- should this -- penalized by customers and consumers going elsewhere.
It is so no there's not a role for government and and we shouldn't blow this case too far out of proportion right after all they -- and foreclose on and they backed off a -- listen we live in a -- country with 300 million people is going to be weird stories like this about everything all the time.
So let's not like jump off the deep end here.
But no I mean -- Bank of America -- systematically bad at customer service we want the market to -- when people to take their business elsewhere.
I go to the friendliest bank in America that's how are you punishing you don't -- to regulate.
And what does Wall Street think when something like this happened something to me to me the worst thing as their rejection of the eighty cents and they're beginning the process of the foreclosure.
This is a disaster for PR purposes rate of America and then nobody knows better than JPMorgan they foreclosed on veterans and soldiers -- who were serving in Iraq.
Because they weren't getting their mail in their bills on time.
JPMorgan turned around and made good by starting an entire division Ford giving foreclosed homes to soldiers.
They will have to make this right but the fact is he's correct mr.
Powell is correct.
This is best dealt with in the free market and the media and what we're doing is we're holding their feet to the -- saying how could -- do this improve your customers are.
See in the days if it's a wonderful life.
Mister potter and the on the local pot to fill us savings and loan or god we will deal with these huge banks -- -- that we're gonna have to deal with for ever -- is -- gonna be some humanity some understanding of an -- some reasonable opportunity to make a correction even when you're dealing with the second or third largest bank in the country.
Well I think with consolidation they the idea that you can actually.
Penalize these banks by moving your money there -- so few alternatives particularly when it comes to mortgages.
And I think in some ways it -- bad PR does make banks change the behavior.
But that isn't the only.
Solution -- little less time Bank of America had PR like that spend Powell was when they wanted to charge everybody five dollars a swipe.
For the debit card swipe the the -- -- was so overwhelming.
They withdrew that proposed regulation.
Is there going to be any response to this or should people just be very very careful when they type in numbers.
That you know the eight camping -- a good example that's the market process working correcting it.
Through consumer reaction and you've got to remember go back -- it's a wonderful life with your small community banks that type of competition was a product of regulation that limited interstate branch banking so that wasn't actually consumer choice that we had before what we're seeing now.
Is the result of the market crosses and apparently those economies of scale and banking that justify this in personal -- asserted if that's what the consumers want they're gonna get it.
Maybe -- change in the future.
But that's not OK now got it Ben Powell Liz Claman Bridget Harrison guys it's a pleasure thank you very much for joining us.
Who it is the true.
Filter by section