tv Cashin In FOX Business February 21, 2016 7:30am-8:01am EST
>> on a paper. it's income principle to them. john: did a quick? hilary: they might drop a class defined in easier grade. we see this student take first semester organic chemistry and doesn't do well and decides my dream of dana doctor is out the window. john: one of the results of the self-esteem movement is americans think they are smart on surveys. they asked do you do well in math and american kids compared to other countries rank themselves number one and self-esteem in math but less roll the chart of how well they actually do. they are ranked country by country and they are not number one on the chart. where's the united states? we still haven't gotten to the united states. they ranked 34 countries and finally there we are at 27. kind of near the bottom so we think we are smarter than we are
what good is that due? hilary: this american confidence is well-known throughout the world. some people actually move to america wanting their children to be confident, wanted them to have that believe that they can do anything. this cuts both ways. we said we don't want you to think you are asa when her and everything you do get at the same time to get a bill gates, to get a marx zuckerberg who dropped out of harvard. john: they have really roll smart. hilary: they really were smart the back of the splat it spectacularly. steve jobs had a lot of failures in addition to the successes so it's the skill to be smart enough to know what can i learn from this failure. that ability to fail and develop certain skills only by participating in competitive experiences. you need to put yourself out there and learn how to fail and learn how to bounce back and learn how to perform in high-pressure situations and that's what it it will take to fix this long-term and mike. john: thank you hillary.
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john: science advances through experimentation and experiments fail most of the time but it's a good thing that researchers try and try again because we learn a lot of good things from the experiments that fail. dynamite was invented after experiments with other explosives killed chemist alfred nobel's brother. that inspired nobel to add a chemical that made explicit more stable. the nobel prize is named after him. when people first tried to use it it frozen winter melted in summer and charles goodyear mixed it with sulfur accidentally dropped some but
notice that didn't melt. bad that accident brought as today's tires. there are lots of other examples. velcro, nylon, x-ray machines for all the result of some kind of failure. the scientist forgot to close a window. >> that mold crew and that's how penicillin was discovered he had some people question if you really happen that way but lots of good innovation has grown out of failure. the last time this man was on my show his experiment failed on me. he claimed that if people inhaled chemical oxytocin they become happier. but i'm as grouchy as ever. i try to take a full dose but paul zack has done other
experiments with oxytocin that have succeeded. it also failed on autism and schizophrenia. paul: why it fails does you what to look for next. john: doing this experiment in america say hurdle of government gets in the way? paul: you can get fda approvals and lots of money to move forward. john: they say they want to make sure people are saved to. paul: that's true but we fail them to keep trying and you know the history of medicine is full of these happy accidents. john: so the fda safety rules may make us less safe by stopping experiments? paul: exactly so we have to balance the expected benefits but the cost. they want to develop these these drugs is how people's lives. john: they don't stop you from doing that. paul: they make it more difficult.
let's take some other examples of things that were accidentally discovered. viagra was originally developed to treat high blood pressure and it didn't work very well and clinicians notice. this helps dysfunction. paul: the female viagra became out the same thing. it if failed three times to treat depression as an antidepressant. if failed three times in clinical trials and they notice that women were having better relationships. john: rogaine developed to treat ulcers. paul: it didn't work well and then to treat hypertension. it was growing guys here. it's not great? john: the blood thinner warfarin was meant to prevent lead clots. paul: this was discovered by some farmer noticing something in the feed was causing cows to bleed to death. fungus on red clover causing
cows to bleed and scientist found what the substance was and developed the obvious use of this which was rat poison. they bleed out and die away. then you give a little bit to humans and you stop blood clots including president eisenhower who was given this one he had clots. john: he had a heart attack and this didn't help him as it turned out but they gave the president brad poison to try to save him. nutrasweet, the stuff that is in my diet coke which i guzzle all day. this was also an accident. paul: this was a wonderful accident and the 60s. the chemist was trying to develop a drug for ulcers and made this compound and writing in his notebook his finger to turn the page in and he said oh my finger sweep.
it wouldn't happen today. john: finally recreational drugs, ecstasy had a long weird history. paul: it developed again. we keep investigating testing and failing and lsd was the same kind of thing. a toxin developed as a signatory drug. he rides his bicycle home and he's tripping out. this is an illegal drug but it's being used now and ecstasy as well. people are very stressed out, there may be situations where it's beneficial. john: thank you sub tree. good luck with further experiments on oxytocin. failure you can learn from. this one unique organization never learns. it tries and tries again but does learn from its own mistakes and keeps doing the same stupid thing. over and over.
product you have to make an adjustment right away or you lose everything you have invested. there's nothing like risking your own money to focus the mind. icon trust one organization has all kinds of ideas or what they say are good ideas and they kee. these experiments fail again and again but they don't stop the experiment. they keep spending money on them. they are happy to do that because they are not spending their own money. it's yours they are spending and that organization of course his government. studies show how markets solve problems better than our kids do. hillary clinton says government and we are sure mistaken improves things. the private sector called profits and losses. he do a good job you make profits and if you do a batch of the make losses. government lacks profits and losses of people who can't balance a basic budget overspend pre-breaded and getting
penalized for that they go back to taxpayers and save pleased you need to give me more money and it persists. we can't do it, we need a higher budget and congress is okay here it is. they should be fired and instead they get rewarded and oftentimes bureaucrats expand by asking for more money. john: gives examples. you say the housing -- ed: 10 years ago they were enacting a bunch of regulations and say we are going to prevent any downturn in the future. for example sarbanes-oxley act was very onerous on business. john: and the enron failure. we are born to fix these failures with sarbanes-oxley. ed: didn't do anything to prevent the next economic downturn. john: it added thousands of people -- pieces of paper to
cost a ton. ed: didn't have the positive effect they were promising and now what did they do? they say we need more regulation so we now have the dodd-frank act which is 30 times longer. it's extremely onerous and i'm quite sure it's going to do nothing to prevent the next economic downturn. john: and it didn't end too big to fail. another example the war on poverty. they lifted some people out of poverty. ed: housing projects would have disincentives for working. there were maggots for crime, terrible places to live and what happens. [inaudible question] these years later they still exist in most cases. john: some are being blown up and they have build new versions of them. ed: now the department of housing and urban development did they get put out a business? know they are still spending money year after year after year. john: public schools? ed: public schools the same thing. we have tons of examples of failed policy that are harming the kids and they are not helping education and what do we
say? this is a failed public school. the let's put them out of business. we need to throw more money at the problem. john: and no one is fired in government. civil service protection so almost nobody is ever fired. ed: government officials you have tremendous job security. people can do a terrible job and is almost impossible in certain areas to let these people go. i've noticed over my reporting career i've talked to a lot of people who say it was horrible being fired and i hated that. i'm so glad it happened. i feel much more useful now. i found something new where i'm doing better. that's the creative destruction that makes capitalism work and it doesn't work and doesn't get to do its wonderful stuff in government. ed: markets are constantly rewarding innovation and encouraging people to try new things and learn from past mistakes. government, its like well we have always done it this way.
we are allies going to do it this way. let's try this other thing. maybe it's not working out so well and they will continue doing it basically forever. john: you have written up look about this called private governance. give an example of how that works. ed: well i like to highlight private people that i've learned from failure. we have a great example of them being defrauded tile types of hackers around the world. rather than them sitting around saying well we don't know what to do, they have to learn from these problems so very quickly they implemented a fraud detection fraud elimination system. right now they have a very good way of reducing on line fraud to very close to zero. john: a program computers to search for certain patterns. ed: if their transactions happening in the middle of the night, it's like this computer is looking at things at all times saying i don't think
that's right and it would send up all these red flags, alert the business in certain cases. they would freeze the account are not allowed -- john: and other entrepreneurs copy it. i'm sure visa and -- ed: they have had a great positive influence and cybersource they have implemented a lot of these things which has since gotten about by visa so a lot of the things we traditionally look to the government to solve our solve privately because people have money at stake. john: the private sector adapts. when people file claims and insurers don't want to pay for fraud so private insurers often hire investigators. this one came on my show to explain how his detect its videotape people they suspected filed phony claims for disability. >> are claimants are in the water swimming talking conversing and decide to climb
to the top of this ledge alleges you can see here and jumps off with no signs of disability whatsoever. john: social security medicare. ed: there are so many examples of fraudulent claims and fraudulent disability. these things have skyrocketed over the past few years and even the government knows this fraud. a billion dollars in a recent report. they don't have the same profit and loss incentives because they don't really care. they're going to charge it off to the taxpayers. john: thank you ed stringman. coming up how i failed and how i welcome to the world 2116, you can fly across town in minutes or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power.
but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it. john: so much success has grown out of failure. on social media you offered examples i've known about. cold treated -- tweeted reid hastings led to netflix. really? guess we checked it out and that's true. reid hastings returned to tape six weeks late was hit with a 40-dollar late fee and was nervous explaining to his wife. he later told 60 minutes max i was on the way to the gym and i saw video stores could operate like a gym with a flat membership team.
i wonder why no one has done that before and he created netflix and earned himself a billion dollars. martha graf treated the -- tweeted us her she two bankruptcies before finding the right location formula for hershey's chocolate. that's true. hershey's first two stores they'll pay the company succeeded when he moved to pennsylvania and tried a third time. walt disney's first cartoon company declared bankruptcy and disney tried again with mickey mouse and that was a huge success. this willingness to try and try again is very american and much of the rest of the world if you tried businesses that fail people say well you failed you were not good and i'm not going to back you. go work for someone else. and america people are more willing to say you're failing doesn't make you a failure. try again. politicians do it all the time. richard nixon lost an election in california and stood up in front of the media he hated so
much and said. >> i want you to know just think how much you are going to be missed. you don't have nixon to kick around any more. john: they did get to kick nixon round because he later ran again and became president. barack obama ran for congress and lost getting only 31% of the vote. he tried again and you know what happened eight years later. [applause] i didn't say that trying again always brought us good things, just that it works for a lot of people. also trying again made my career possible. >> on the abc newsmagazine 2020 with hugh downs. john: i became a minor celebrity
by working on 2020. you should have seen that for show. >> robert hughes is not exactly a household name. john: that for show was so bad about fired the host the next day but then abc tried again and succeeded. i worked there for 28 years but i failed because i couldn't convince abc to keep letting me do more reports like this one. >> stop kidding yourself about your child's school. we will teach you a thing or two about being a student in america and how we cheat our kids. john: my abc boss said we don't want her back. that's libertarian propaganda. we want stories on things like enlargement so i left. a failure? i wouldn't say that but no said kirk thomas on twitter and answer to our question about examples of failure turning to success.
he wrote your career turning success into fox. thanks kirk, it's good to be here at fox where you get to say what i want to say. glad i tried again. that's our show. see you next week. one town wants helmets on the soccer field. >> i'm calling it a spiritual awakening. >> is it a spiritual awakening to sell boys vacuum cleaners. >> if that's what speaks to them. >> how strict should you be? >> your daughters were not allowed to have a sleepover, be in a school play, complain about not being in the play. >> hold yourself to a higher standard. >> how do we