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tv   MONEY With Melissa Francis  FOX Business  January 31, 2013 5:00pm-6:00pm EST

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tdd# 1-800-345-2550 plus webinars, tdd# 1-800-345-2550 live workshops, tdd# 1-800-345-2550 research. tdd# 1-800-345-2550 whatever i need. tdd# 1-800-345-2550 so when that double bottom showed up, tdd# 1-800-345-2550 i was ready to make my move. tdd# 1-800-345-2550 all for $8.95 a trade. tdd# 1-800-345-2550 can you believe it? tdd# 1-800-345-2550 i love it when you talk chart patterns. tdd# 1-800-345-2550 trade up to 6 months commission-free tdd# 1-800-345-2550 with a $50,000 deposit. tdd# 1-800-345-2550 call 1-800-284-9850 tdd# 1-800-345-2550 and open an account, tdd# 1-800-345-2550 now with no trade minimums. melissa: i'm melissa francis and here's what's "money" tonight. nearly half of all americans are one emergency away from financial ruin. that is a scary statistic. could hit closer to home than you might think. today's power panel takes us through it. plus, how far would you go in the name of marketing? one super bowl ad contest will send 22 winners into space. but would make you buy the brand? i don't know. the man behind the out of this world campaign joins us
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exclusively with the details. ever wanted to know what your coworkers make? one company makes finding that info as easy as a click of the mouse of the does actually seeing everyone's salaries boost morale or breed resentment? the ceo is here with this game-changing strategy. even when they say it's not, it is always about "money". melissa: so forget the debt ceiling for a moment. we're just one month away from march 1st. that is the budget sequestration deadline. if congress fails to agree on specifically where to cut $85 billion, we're looking at automatic across-the-board cuts. house republicans made it clear they're ready to let the sequester happen. joining me now for more on this is democratic congressman curt schrader. thanks so much for joining us. what's going to happen? that's what we're all wondering? feels like we're
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cruising toward this deadline. what is going to happen? >> well, i'm worried, melissa, to be very honest with you. you're right if we don't get our act together do something on tax reform and the social safety net americans count on. we'll have across-the-board cuts. why do it with congress. we could have a bunch of chimpanzees to do this. melissa: don't tempt me. you sort of stopped me dead in my trackses with that one. is something going behind the scenes that we don't know about? doesn't seem like we're not getting closer. at the debt ceiling with hemming and hawing but at last minute people got together. is it the same thing? >> i hope so. i'm working with a bunch the folks, part of the no labels group. republicans and democrats get together, talk about solutions. trying to figure out is there a different way to go. i don't think tax reform should be dead on the table. corporate america is really trying to get behind this. the committee for responsible federal budget
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is all over trying to get us to address the real meaningful issues of revenue reform in our country. same thing on entitlement side. a lot of americans want to pretend there is no problems with social security and med tear -- medicare but they're in danger not being there for our kids and grandkids. in the bowles-simpson report we should be talking about in constructive manner. melissa: nobody really wants to do. >> they don't want to do it. melissa: paul ryan comes out and makes it sounds like republicans are really willing to go ahead with the sequestration. i think that might be the truth. i mean i don't think that's a bluff especially when you look what happened debt ceiling debate. you look how they feel like they have lost all power and all sway, it makes just plowing head first into the sequestration look not that bad. because maybe it is only way to get the cuts done? >> yeah but the question are the right types reform. we cut the discretionary budget, paul knows this by 1.7 droll trillion.
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which is as much we estimated doing with the bowls simpson report. what we need to do is put the revenue piece on the table and make sure medicare and our health care system doesn't bankrupt america going forward. melissa: we put the revenue piece on the table. everybody's taxes went up. at beginning of the year 77% of the pop saw their taxes go up when you say now we need to put the revenue piece on the table i think that is what bates republicans. hey, they feel like we did that and president came back and said guess what, that is just the beginning. we took your lunch. now we'll steal your backpack. >> the question is, increase the rates on top 1% of the population. we didn't do anything about reforming the system. small businesses can get started. you can figure out our own taxes at home. we could lower rates, get rid of ap lot of loopholes out there. make legitimate money off this and put america in a much better competitive position globally. melissa: hey, i love that idea but is anyone talking about that anymore? i haven't heard real tax reform lowering the rate,
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broading the base, closing loop roles -- loopholes. you're the first one mention that in a little while. >> speaker boehner, talked about that and even the president talked about that for a little while. it is not all about the revenue. it is about making more changes in some of these programs we can't on going forward but people are afraid because of politics to address. i think that is doing a disservice. i had two town halls in the last two days. i talk about this to folks. folks are not excited about these issues. but they understand we need to talk about them and get our social safety net in order. melissa: you're so reasonable and you make so much sense. what is your bet what will happen here? what kind of deal will get done? >> i don't know, i don't know melissa. melissa: who will win the super bowl is, is that easier? you want to do that? what is the point spread? >> every time i guess i guess wrong. sequester would be bad public policy. one thing congress does very well is nothing unfortunately. melissa: you taking ravens
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or niners? >> i'm a west coast guy. i'm niners,. melissa: we appreciate you coming on. you're a good sport. >> thanks melissa. melissa: he was a good sport, right? it is far from the only problem we're facing right now. here is the list? are you ready? if you're standing sit down. a new study says 44% of all americans are one emergency away from financial ruin. the same study find one-third of americans don't have any savings at all, none, nothing, a third of you have nothing saved. today the president disbanded his jobs council after getting just about nothing done. they met four times in two years. of course, there are still 24 million people out of work or underemployed. i have no idea what that group did. i would love to know. and for the kicker, january jobs numbers come out tomorrow but the predictions are already in. economists forecasting unemployment rate of 7.8%. completely unchanged from that month. no progress. clearly we've got a lot of problems to fix and quick. our money power panel is
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here to sort through a slew of bad news. scott martin live and in person! chief market strategist at united vicetores. you will see him in a second. he is sitting next to me. so is noell nikpour. sorry about that. i was excited about scott being here. forgive me. >> my fault. melissa: noell nikpour, she is a republican strategist and dan mitchell from the cato institute. can you fix any of those problems? what do you think? >> here is the scary about that study. give me one study that tells you one thing. there is study that tells you something else. that is what studies are for. this is the scary part that is not minutesed. >> don't have insurance, disability, long-term care going absolutely nuts with regard to cost. that is scary, if those people get sick, hurt, they're really hurt. melissa: you were supposed to solve a problem, not pile another one on top of the sundae. >> one of the problems i see are the kibuki numbers of
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the jobs. you have to realize a lot of these things i don't really believe the numbers. i don't think a lot of people, they have fallen off the job market. they're not looking anymore. a lot of people have taken a job that is below their level or part-time job and they counted that as a job. i don't think these numbers are true to form at all and represent what is really going on in america. melissa: dan, do you want to weigh in? because they sort of added to the pile. we were going to try to sort through and solve something but i guess that is pretty hopeless. what do you think? >> first on the jobs issue the fact that the president had a phoney jobs council, that doesn't bother me at all. all white houses put together councils and political --. melissa: i find it really irritating. some of the ideas they came in and came up with were not terrible but like nothing you could really act on. i have to find my list what that was. another thing that looks, it is insincere to me. like we're here trying to solve this problem but they're not. >> that's precisely the point of the it is not the fact that the president had
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a jobs council he ignored. the problem he pursued policies, higher tax rates, heavier burden of government spending, more regulation, obamacare. he is pursued all the policies given us according to the minneapolis fed interactive website, the worst job performance of any recovery since the end of world war ii. on the savings issue i think that is actually related. if you are in a very tough job market and you're lucky to be hanging onto a job and there are no opportunities for advancement, you're probably not getting a good salary. if you're not getting a good salary, all your income is going to cover your basic expenses. how are you going to save? i think the problems are related. it is the weak obama economy. melissa: scott, the only solution as always is to grow the economy. i mean with have too many problems to kind of solve them individually. only thing we could possibly do is make things better. how could we do that right now? you have to change the climate. it starts with businesses. you've got to make sure they're comfortable in today's climate with
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taxation, with health care and they're not, melissa. saw all that with money that went to romney's camp november of last year. look it. like noelle mentioned a job market full of slack. 7.8% unemployment that is doggie poo. that is technical term. because it is way higher than that. wage growth is nonexistent. gdp is negative. if this isn't a economy need of deer antler spray, i don't know what is. i'm telling you we're, big trouble. melissa: deer antler spray of course is the, everyone getting in shape. vijay singh using it to improve his swing. i think we could use deer apt letter. >> i think that would answer your question. that is the short answer. melissa: he has idea. may not be a great idea. it's something. what do you think? >> if we throw something we might throw money to get people skills and teach them something to further their employment or assist that waiver sus giving them
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bandaids and more and more handouts. melissa: how do we do that? we have a reporter talking about that today, going down to west virgina talking about how you get people into the fracking industry because that's where all the jobs are. if you go to college and study engineering for the jobs that are available you come out and actually have a job. how do we direct them in that direction? >> give them more assistance and have be issy disthat way. melissa: will that cost me money or is that about -- >> melissa, you could have subsidies that create and push you more into that direction and pay. and those people, if they're going to get the jobs like that are paying back into the tax system. it revamps itself when subsy is about -- subsidies is being given. comes back in taxes and start their job and contributing back into the income sector. melissa: dan, and this is a tough one and given where he are right now and politicians we're stuck with in washington, you heard the could congressman before you
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tempt me to call them a bunch mon kits and i almost pound pounced on that. how can we grow the economy right now? >> the only good news i can give you we'll have gridlock probably next two and probably four years. that sound bad --. melissa: no, no, sound great. >> our founding fathers wanted gridlock. what was called factionalism in the federalist papers because they figured if politicians were fighting each other it meant they wouldn't be passing new burdens on the economy. if you think, like i do, that nine out of 10 times legislation means bigger government, then it's good that we're not going to get anything. now in the long run we have this giant problem with entitlements. we have problems. we need to fix and if we don't and if we don't we'll wind up like greece. i'm not in favor of gridlock forever, but i'm favored in gridlock than obama's first two years when we got fake stimulus and obamacare. melissa: that sums it up. you guys were fantastic. thank you. get some deer antler spray
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and we'll be all set. time for the market moment. mixed economic data brought modest losses for stocks today. january was a huge month for stocks anyway. the dow saw biggest gains since 1994, rising 5.8%. the s&p 500 capped off its biggest january since 1997, climbing 5%. month wasn't quite as strong for the nasdaq but it rose 4% and posed its third straight month of gain. if in your opinion stocks you're happy. everything else is all over. you got no savings. to add onto the myriad of crises we've already gone through you may need to brace yourself at the pump! wholesale gas prices in southern california surged 17 cents yesterday, yesterday! that was wednesday. so you wish you filled up on tuesday. they could reach $4 a gallon for drivers. patrick dehaan is the senior petroleum analyst with welcome to the show. >> thank you. melissa: what was so special about wednesday that the price of gas shot up 17
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cents? >> well it is everything been finally realized at pump. we saw wholesale prices have been going up and up. they started to jump more significantly starting this week. monday, tuesday, wednesday, especially wednesday, we saw the eia come out with some lousy data. west coast prices really had started to take off. you have multiple issues going on there. the switchover in southern california to cleaner burning gasoline. extensive refinery maintenance this year for whatever reason. that is really helping prices be supported out there. the rising price of oil in the background. you just pointed out s&p at records and having its best january in, since '97. oil prices follow everybody else. so what are oil prices doing? they're going up. and gas prices follow that. melissa: sound like wednesday was terrible but it will con to be awful. prices are going up indefinitely? >> sound like a broken record each time i come on. melissa: really. >> gas prices are going up and up especially in
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southern california. great lakes got, i was looking grand rapids, michigan, january 16th average price today selling as high as 3.75. great lakes are getting hammered and west coast in the form of southern california. everybody along the west coast will feel it to a lesser extent. there is no rose here. really not. melissa: got to help me out. we've been full of bad news here in this whole first block. i can't even take it. is there any good news? will they go up all the way through spring till memorial day or what's the do he will? >> i don't know how much good news i can provide to you. overnight there was refinery explosion in ohio oh. >> it will not get much better than that. summer is upon us. gas prices have never gone down between this time of year and summer. no, there is not any good news in sight. melissa: wow! i guess only thing i can do for people i have gone to your website, i hate to just give you a commercial but you do go to >> i don't mind it at all. >> don't mind it at all.
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look around your neighborhood you can at least find in your neighborhood you find the cheapest gas, right. >> that is all the essence here. when prices are shooting up 30 cents at one point at least if you're out showing around, drive by a station through the roof at least you can find one that hasn't gone up yet. at least if you can't beat high prices in the form of, you know, filling up at lower price, at least you have the chance to perhaps find a station that is cheaper. melissa: okay. i don't know. we'll squeeze in a break. i will get a cocktail. patrick, thanks for coming on. i appreciate your time. >> thanks, melissa. melissa: before i do that, let's squeeze in the fuel gauge report. jitters about the u.s. economy helped fuel the decline. crude settled at $97.49 a barrel. chevron suffered a setback in its $19 billion judge nt meant dispute with ecuador. it lost an appeal against an asset freeze in argentina. the freeze was imposed last year. plaintiffs lawyers are suing chef ran in multiple countries all in an effort to force payment.
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egypt is raisings shipping fees through the suez canal. oil and natural gas tankers will see a 5% increase beginning may first. the move will help egypt's government raise badly-needed revenues. up next on "money", small businesses are terrified of obamacare but my next guest says, there may be a way to avoid its blow all together? he is here with details on a potentially ingenius plan. plus, they were for it before they were against it. why some unions are suddenly slamming obamacare and want a government handout to make them feel better. hmmm hmmm. more "money" coming up. ♪ . all stations come over to mission a for a final go.
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♪ . melissa: small business owners are bracing themselves for the big tab from the new health care law but there might be a way to avoid it. my next guest says they should outsource their employees by asking them to work on a contractual basis, but is it as easy as it sound? we have the founder of quorum and joins us now. paul, i mean it sounds like a good idea but is it hard to do? how do you do it?
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>> well, it's a strategy that's been developed that can help businesses, you know, kind of deal with the threat of obamacare. and really what it is is just, it is just an extension of the kind of outsourcing that so many businesses already do. i mean, most businesses would not think of hiring an attorney to have their legal services done or cpa to have their accounting services done or a lot even don't even higher janitorial staff. they outsource that. and so the question really becomes, not, you know, what can you outsource but, what can't you outsource? and when you do that, in a protean sense you're able to develop a corporation that can react very, very quickly to changes in the economy. >> i hear you but you're not necessarily talking about you know firing all the workers you have working for
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you and hiring from china? you're talking about outsourcing people you have currently work for you, setting them up as individual corporations where they deal as individual entities and do their same jobs? >> yes. melissa: sound great for you but seems like a tough sell to the employees. >> well the whole economy now is tough, and you look at how many people are unemployed right now, and would love the opportunity to have a job. from the business's perspective if there's going to be a quantum change like this, this is the time to do it. and the way i would actually envision that happening is, you know, a, everybody knows about the threat of obamacare. and i can imagine a business owner sitting down with an employee hey i have good news and bad news. the bad news is we'll outsource your job. the good news, we want to outsource that job to you. all you have to do --. melissa: can you do that legally? >> you sure can. melissa: in having this conversation seems like you're setting yourself up for some kind of a lawsuit.
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i also wonder -- and you say that is not the case. so the goal is you don't want to be forced to provide health care and pay the penalty and shifting that care to your employee, over time they have to pay for that. so aren't they going to include that in their price back to you? that is how the market works. >> oh absolutely. melissa: so you're paying either way? you're not saving money for the employer then? >> exactly. exactly. melissa: then what's the advantage. >> well the advantage is, that instead of dealing with representatives that are vertical, employer, employee, boss-worker, et cetera, you're dealing with people on a equal level on a corp to corp basis. so it changes the dynamics of one of rights and entitlements to one of shared responsibilities. and again, that is kind of a quantum change. so, you know, the major
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aspect of --. melissa: you're not trying to save money you're trying to save the way people think about the relationship? >> exactly. and this obamacare situation can be a catalyst for moving businesses and in that direction and changing the awareness of people that are currently employed or not employed. melissa: okay. >> into new opportunities and how to deal with things. melissa: interesting. paul, thanks for coming on. interesting stuff. >> sure enough. thanks a million. melissa: coming up on "money", unions were one of obamacare's fiercest backers but some are suddenly feeling big case of buyers remorse. they may want taxpayers to bail them out. you have got to hear this one. plus it already costs nearly four million bucks to run a super bowl ad this year, why not throw in 22 trips to space on top of it? why not! a bold marketing campaign and the man behind it coming you. do you ever have too much "money"? ♪
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♪ turning now to another big health care cost, "the wall street journal" reports now it is looking like unions are shocked that the affordable care act they once backed could actually cost more for their members health insurance coverage. it is shocking! so labor groups want federal subsidies for their members to offset higher prices. i would like that, wouldn't you? are you up for paying more to cover the gap for the union workers? with me knew is the "wall street journal's" james freeman. great to have you back on the show. >> good to be here. melissa: it is shocking, shocking, all this extra health care coverage is going to cost money. who knew!? who knew!. >> coverage to tens of millions more people and was somehow to save money. only in washington's crazy accounting. you're wondering did union bosses actually believe it, because this is has been the
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question all along, what was in it for them? union workers by and large already have coverage. melissa: right. >> here's lot of new regulation, a lot of new costs. never made sense to me why the unions liked this. now a lot of their members are saying, yeah, why did we like this? melissa: that is a great point. one of the things where they said it is not in the members best interest. they raised costs for everyone but they kept insisting it would go down. it turns out the lifting the annual payout cap from a quarter of a million to a million bucks, adding children up to age 26 on your parents plan and charging an annual $63 per person high-risk fund fee for all those extra people that are really expensive to be insured cost more money. when president obama said the price of health care, this is my favorite one would go down $2500 in four years and actually went up 200. >> yeah. melissa: when you talk to the democrats, their answer would have gone up even more if we had not put into place. always the counter factual. >> they can say that but now
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reality is setting in and all of the parts of these union plans, covering about 20 million workers that don't conform to obamacare's mandates, now, either it is more cost for the employers or unions possibly dumping coverage sending workers into the government sponsored exchanges. melissa: yeah. >> this line that the president said, if you like your health care you can keep it --. melissa: we knew that was a lie. >> but i think what is amazing to some people this is even being done to his allies in the labor movement. and i think there was a suspicion that deep in the language there there were favors to the unions that would become clear later? melissa: well, but maybe that is what we're getting now. let me stop you there. you know, so they're saying they want gap coverage from the government basically which is what very low income people are entitled to. so they want to extend that to the unions. but some are saying, especially the national coordinating committee for
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multiemployer plans, says they have already been to that trough. they have already gone to the administration and asked for this. >> they will not get help there. melissa: that's what you think? >> they want subsidies for people that get coverage at work the same to subsidies for people that don't get health insurance through their employer. that is not what the law says. melissa: taxpayer would be paying for that? >> taxpayer would pay for that. >> 100 billion a year currently. would go up from there. that can't happen from there. the journal story quoted democrat involved in drafting this, no, that was not the intention to cover these union workers who get coverage through work. so they, i don't think they're getting another obamacare through the congress. certainly not through the current house of representatives. melissa: could they get an exemption of some type? this is the other point i heard today, that makes some sense, olive garden, red lobster, waffle house, jack-in-the-box. these companies got the exemption and reapply every year? is that a loophole? >> the theory was they were basically postponing until after the presidential
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election any of the harsh impacts of obamacare. melissa: yeah. >> if they decide, you know what? we'll wave everything permanently, well, i think people on both sides are going to start to say what was the point of all of this? just adding costs. i don't think that is a sustainable argument to say, just kidding we're going to give everybody a permanent waiver. melissa: what will happen? they will have to pay it? >> they will have to pay. you would hope at some point rank-and-file union members would say is our leadership tight alliance with the democratic party really benefiting us? this was a terrible year for unions. membership went down. this is more bad news. melissa: james freeman, thank you so much for coming on. >> thanks, melissa. melissa: up next on "money", go big or go home. one of the super bowl's boldest ad campaigns will blast 22 people into space but will it crash land from the extraordinary cost? the man behind the plan joins us exclusively with the details. plus would you want all your coworkers knowing exactly what you make?
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melissa: so you have probably seen those hysterical act commercials. the gorgeous girl swoons over the guy after getting just one whiff of him but the new campaign is out of this world. axe academy head by buzz aldrin is giving people a shot at outer space. 22 winners will be lucky enough to enter orbit, one chosen on super bowl sunday. gets to bypass the whole competition to go straight into space. at almost $100,000 a flight that is no rare feat. can the revenue cover the cost? we have the brand development from axe here and in a fox business exclusive. i everybody is talking about all this. i see it on all the channels. you're getting money's worth for sure on the advertising. it is a hefty ticket. costs $100,000. >> $95,000 a ticket. melissa: sending 22 people out there, putting zeros in
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the right place that is 2.2 million. >> yeah. melissa: super bowl ad is another four million. it is starting to get up there. is it going to be worth it, do you think? are you nervous? >> i know it is going to be worth it. at the end of the day, axe is all about creating conversation between folks. if we're not creating dialogue, you're really not creating something for people to get engaged in the brand. melissa: okay. people are definitely talking. one thing they're talking about how, are you just picking winners ad random? how are you going to do it? >> two phases. after the super bowl we'll pick somebody sweepstakes style. somebody who is already registered will immediately get a ticket to go to space. melissa: isn't that dangerous? aren't there certain physical quality you need to go into space? what if somebody is woefully out of shape or much older? i don't know, it seems like just randomly sending someone into space is a terrible idea? >> well we'll pick somebody. at end of the day going into space this is the real deal. we're sending people into
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suborbit al space. there will be a whole series of checks, health, what not, to make sure it is safe and people can go into space. i mean that's a getten in the program. melissa: so the other 21, the ones picked at ran doll after the super bowl, at random, is it not random if they have to be in good shape. >> we'll pick someone at random and do checks for all the rest. melissa: how do you pick them. >> everybody at axe apollo dot-com and registers and why go to space and gets their friend vote for them. all the folks getting on will be getting a chance to go to space camp and picked but number of votes globally. melissa: you do think you will send 2 people out into space, no? >> of course. melissa: do you worry this is dangerous? sound like fearless felix in the red bull campaign. what if somebody you sendais? won't that be the worst publicity ever? >> at the end of the day --. melissa: this is not worrying at all. you don't look concerned. >> the reason i'm not concerned is because there
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are a lot of steps between now and when people go to space. our partnership is spacex c. they are experts in the field. you wouldn't send anybody into space right before the time it won't make sense. everybody behind space tourism is not save it won't take off. melissa: worried nobody going up are you worried about that. >> we'll give cash value. melissa: that is comedown. you pay tax and everything else. that is not so great. >> the big part here, people, space is a pretty exciting for guys. melissa: right. >> and i expect flights will take off. melissa: should women enter as well? >> absolutely. anybody 18 and over. melissa: i like it. we'll keep our eye on it. thanks for coming on. appreciate your time. >> thank you. melissa: i will enter. think i will win? no. here is the "money" question of the day would contests like this make you more likely to buy the company's products.
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or follow me on twitter, @melissaafrancis. maybe i start my own social media campaign. nah. one business is ending the mystery once and for all. with everyone's salary available to see but is knowing really a good idea? the ceo joins us to explain his risky strategy. that's coming up next. at the end of the day it is all about money. ♪ . [ male announcer ] how can power conmption in china,
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♪ . melissa: so admit it. you definitely thought about what your coworkers make. would you want them to know exactly what your salary is? it's a new concept gaining traction in work places. some company in new york city allows everyone to see everyone else's salary by clicking on the share drive. the company says the open an transparent system decreases stress at the office. i don't know about that. here to tell us how it is working out is the ceo, dane atkinson. you can tell i'm just amajor skeptic. i'm just imagining, lori rothman and i are sitting next to each other anchoring the 1:00 show and click on, you're making what? i mean it just.
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yeah, go ahead. tell me how it works. >> you spend a lot of time thinking about it already. a waste of time negotiating issues and am i getting right compensation. a lot of information slips out. you know she is making more money but no way to resolve it. transparent environment she is not making same as i am. what is she doing better than i am. we can solve that in advance of being explosion. melissa: you have that conversation and somebody says hey, so-and-so or pay everybody the same? that is what i suspect the pay everybody the same amount? >> no, we have people same class of skis, engineers, designers analysts make paying different salaries and experience and competence and see the other person's salary it is easy to understand the vector got them there. what they do better. easier path to get them where they want to be. no did he negotiate better? is he good at kissing ass in
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the back office. melissa: right, right. >> there is no person to manipulate. melissa: is it gone or confirmed or you look, oh. it would just confirm what you're thinking. why does it eliminate that? >> look at company with on few situation on salaries and pick that up and would be really horrible. if you build it out from the start people can have the debates. why are you making more than me? management can explain what is happening and they're at least better set with it than at least the suspicion it is happening. or somebody prints it out leaving it around the office. everybody knows what the people are making because no one can mention it and officially know. walk around being upset about it but can't do it. melissa: we started asking on twitter and facebook yesterday, none of the responses went into your direction. you should have gotten your people to log on. this was pretty typical of what people suspect. you tell them why they're wrong. somebody said, there is no upside. if i get paid less than expected, i wonder what is wrong with me.
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if i get paid more, then there is resentment. >> so it is definitely a bold new concept. we're experimenting with it. who knows where it will end up. we don't find the same reaction. there is lot of benefit not worried to. benefit to information to negotiate with management and say why are you paying guys more than girls in this is clear issue. i want to adjust the kpinization. this doesn't make sense. this has the material and openness to --. melissa: there are things that don't necessarily have to do with performance. >> sure. melissa: you come in and say i got offer from company across the street because i'm nor industry just. i shopped myself around. you do that. maybe somebody with the same skill do you have to raise his pay? >> at the ceo i make mistake all the time. i need this person right now and overpay for him. he has a book of business. got sales of the got contact i want that is unhealthy for the organization. now you have this nuclear time bomb in close it
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skeletons. everybody find out i paid him that much they will all leave. melissa: i can't do that because i have to do that for everybody else. >> i get vetted. we really need this person. we need this higher access person to do something. if they agree i made a better choice. if they don't agree might not be a choice i should have made the first place. better prevents those errors from happening. >> real interesting. we'll have you back in like a year and or something see how it is going how long have you been doing this? for two years. it is working. melissa: thanks for coming out. interesting stuff. coming up we've all been screwed by brutal airlines delays at some point, right? but we couldn't do anything about it. now passengers may finally have the last financial laugh. we're going to explain that next. you can never have too much money. ♪ . twins. i didn't see them coming.
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♪ >> come on, dance. we are joined by one of my favorite pairs. our own david asman. >> thank you. melissa: flight delays with ruin a trip, but now a landmark ruling in europe is giving those across the pond relief allowing passengers to sue airlines. i love it!
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for delays of more than three hours. they have to be caused by failures, tech problems, that sort of thing, but people can be compensated for a little more than 750 plus expenses. do you think it's something they have to do here? >> well, the lawyers love it. they would get more bullying if we brought it here. look at this. think of what's happening here. planes should not -- if planes are delayed because of technical faults or lack of a flight crew, they should pay back. airlines will be so afraid of getting sued, they'll run out planes that are not ready. i don't know. i think it's really inviting disaster here. >> on the tarmac for eight hours. >> it's encouraging the wrong behavior. i'd rather wait 12 hours than go on a risky plane. >> i fly a lot, and that would be a lot.
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melissa: it can be irritating, like, you didn't know we were doing the flight? the airline booked it. everyone's there. they accepted the tickets, and they are ready to go, and they are oh, sorry, there's no pilot. it's a surprise flight? like we just decided all the sudden, 300 people just decided. >> i'd rather wait than a risky flight. melissa: next up. you'll love it. according to a new study if wives cook to cooking and cleaning and men do the yard work. >> why? melissa: more sex. households with jeaned l roles have 20 # times more sex a year. that's 1.6 times a month. twenty times in a year. that's 1.6 -- you know what a a.six is. >> all i can say is if my spouse makesly life easier, if you do
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the house work, go for it. that's what i'm saying. >> wait, wait, i'm a weekend chore guy. the wife does it during the week, cooks, cleans, and i give her a break on the weekend and do as much of it i can. i don't know where that puts me. melissa: i was going to say that if you outsource the outwork and yard work, everybody has more energy and time. i'm thinking out loud here. ♪ everybody ought to have a maid everybody can agree with that. nice if we could all afford it. melissa: putin is hiring the 90s group, boyz ii men to increase fertility in russia. i don't get it. >> you'd get it if you'd heard them. melissa: they don't make me frisky.


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