THOSE HOMES LOOK PRETTY THAT
WE'RE SHOWING YOU RIGHT NOW.
BLUE COLLAR WORKERS ARE IN
DEMAND WHICH MEANS POTENTIALLY
FATTER PAYCHECKS.
THE ANNUAL WAGE GROWTH FOR BLUE
COLLAR WORKERS TOPPED 3%, THAT
COMPARES TO 2.5% GROWTH FOR
WHITE COLLAR POSITIONS.
LET'S BRING IN THE FORMER
McDONALDS USA CEO, AND FAT
BRANDS INTERNATIONAL CHAIRMAN ED
RAMSEY.
MERRY CHRISTMAS.
>> GOOD MORNING.
HAPPY THE DAY AFTER CHRISTMAS.
LAUREN: WE'RE A LITTLE HUNG
OVER, RIGHT, THE DAY AFTER
CHRISTMAS, NOT NECESSARILY FROM
THE EGGNOG BUT JUST FROM THE AT
THE TIME
FEE TIME
FESTTIME
FESTIVME
FESTIVITIES IN GENERAL.
IT'S WORTH IT.
BLUE COLOR
BLUE COLLAR WORKERS ARE IN
DEMAND.
WHY IS THAT?
>> I GET TO SEE THE CONSTRUCTION
BUSINESS, THE RESTAURANT AND
HOSPITALITY BUSINESS UP CLOSE.
THERE'S A LOT OF CAPACITY COMING
ON-BOARD AND A SHORTAGE OF
CARPENTERS, PLUMBERS,
ELECTRICIANS, CONCRETE WORKERS,
IT'S PRETTY PROFOUND.
THAT SHORTAGE IS STARTING TO
DRIVE UP COSTS.
IT'S ALL MANAGEABLE.
I THINK IT SPEAKS WELL FOR THE
ECONOMY.
I THINK WE'VE GOT TOO MANY
COLLEGE GRADUATES, NOT ENOUGH
TRADE SCHOOL GRADUATES IN THE
COUNTRY.
THE OTHER THING THAT'S A LITTLE
TROUBLING TO ME, THERE'S NOT AS
MANY WOMEN MOVING INTO THE BLUE
COLLAR WORKING FIELD.
THERE'S A LOT OF OPPORTUNITY
THERE.
RESTAURANT MANAGERS TODAY, THE
KIND OF RESTAURANTS I'M
ASSOCIATED WITH, FAT BRAND, FOR
EXAMPLE, MANAGERS ARE STARTING
SOMEWHERE AROUND $65,000 A YEAR.
UP TO AS MUCH AS $160,000 A YEAR
IN SOME QUICK SERVICE
RESTAURANTS IN CALIFORNIA.
SO IT'S A GREAT OPPORTUNITY FOR
WOMEN TO GET INTO THE SERVICE
SECTOR, GET INTO THE RESTAURANT
BUSINESS, GET INTO THE BLUE
COLLAR WAGE EARNER BUSINESS.
IT'S GOING TO BED GOOD FOR THE
FUTURE -- IT'S GOING TO BE GOOD
FOR THE FUTURE.
LAUREN: YOU SAY THERE'S
AN ISSUE FINDING TALENTED OR
SKILLED WORKERS TO FILL THOSE
POSITIONS, I MEAN, A RESTAURANT
MANAGER, MAKING UPWARDS OF
$100,000 A YEAR, YOU CAN'T FIND
THAT PERSON?
>> IF YOU'RE GOING TO BE A
RESTAURANT MANAGER, YOU HAVE TO
START OUT GENERALLY AS A MINIMUM
WAGE WORKER AT THE LOWER END
SKILLSETS.
AND YOU HAVE TO GO THROUGH
TRAINING FOR-McDONALD'S FOR
EXAMPLE IS UP TO 2,000 YEARS AND
IN FAT BRANDS IT'S PROBABLY
1,000 HOURS A YEAR TO GET TO
THAT POINT.
IT'S A BIG INVESTMENT IN
MANAGERS.
THEY'RE RUNNING 3 AND
4 MILLION-DOLLAR BUSINESSES
WITHOUT THAT MASTER'S DEGREE IN
BUSINESS ADMINISTRATION.
THERE'S A LOT OF TRAINING THAT
HE GOES ON.
ONCE THEY'RE TRAINED, THEY'RE
EXTREMELY VALUABLE.
TRAINING A NEW MANAGER IS VERY
EXPENSIVE.
LAUREN: DO YOU THINK THESE
HIGHER WAGES, BECAUSE THERE IS A
PUSH FOR A MINIMUM WAGE
NATIONALLY AT $15 AN HOUR, HOW
DO YOU SEE THAT PUSH AFFECTING
THE BOTTOM LINE OF SOME OF THESE
BUSINESSES?
>> I THINK THE FEDERAL
GOVERNMENT OUGHT TO GET OUT OF
THE MINIMUM WAGE BUSINESS.
THAT OUGHT TO BE A STATE
RESPONSIBILITY.
PEOPLE IN NEW YORK CITY OR
WASHINGTON, D.C. HAVE NO IDEA
WHAT THE MINIMUM WAGE SHOULD BE
IN IOWA.
THEY'RE OUT OF THEIR MINDS.
THE IDEA THAT POLITICIANS KNOW
EVERYTHING IS PROVEN ERRONEOUS
EVERY DAY.
THE MINIMUM WAGE IS GOING TO GO
UP NATURALLY.
WHEN THERE'S A SHORTAGE OF
WORKERS YOU'VE GOT TO PAY MORE.
I KNOW THERE ARE RESTAURANTS
RIGHT NOW IN THE BUSINESS I'M IN
THAT ARE STARTING PEOPLE AT $13
AND $14 AN HOUR AND COMMUNITIES
WHERE THE MINIMUM WAGE IS $7.
YOU PAY WHAT YOU HAVE TO PAY TO
RUN YOUR BUSINESS.
I KNOW I WAS TALKING TO A
FRANCHISEE THIS PAST WEEKEND.
HE RAISED HIS PRICES ALMOST
10-CENTS PER ITEM TO COVER THE
INCREASED LABOR COST HE'S
CONFRONTED WITH.
THAT'S ALL GOOD ULTIMATELY.
LAUREN: DO CUSTOMERS COMPLAIN
ABOUT THAT INCREASE IN PRICES?
>> WELL, IT'S KIND OF
INTERESTING.
THE PRICE INCREASE WENT UP OVER
THANKSGIVING, BLACK FRIDAY AND
CHRISTMAS HOLIDAY.
PEOPLE ARE IN THE SPENDING MOOD.
MORE IMPORTANTLY, TRUMP'S TAX
POLICY AND HIS DEREGULATION HAS
MADE THESE BUSINESSES MORE
EFFICIENT AND MORE PEOPLE HAVE
MORE MONEY IN THEIR POCKET FOR
DISPOSABLE OR DISCRETIONARY
EXPENSES.
I THINK WHAT TRUMP DID THE LAST
TWO YEARS IS TERRIFIC.
WE OUGHT TO QUIT WORRYING ABOUT
2020.
LET'S START TALKING ABOUT WHAT'S
GOOD FOR THIS COUNTRY AND THESE
POLITICIANS OUGHT TO QUIT
WORRYING ABOUT POWER AND GETTING
REELECTED AND START THINKING
ABOUT WHAT DOES THIS COUNTRY
NEED TO SUCCEED GOING FORWARD.
IT'S GOOD HEALTH CARE.
IT'S VETERANS BEING TAKEN CARE
OF.
NEW YORK CITY, FOR EXAMPLE,
THEIR HOUSING ADMINISTRATION IS
STILL FIGHTING LEAD PAINT IN
APARTMENTS THAT ARE CONTROLLED
BY THE CITY OF NEW YORK.
LET'S SPEND MONEY ON THAT
INSTEAD OF SOME OF THE OTHER
NONSENSE THEY SPEND MONEY ON.
LAUREN: I'M CURIOUS HOW HEALTHY
YOU THINK THE U.S. ECONOMY IS.
A LOT OF FOLKS SAYING -- THE
NUMBERS SUPPORT THAT THIS IS THE
BEST SHAPE THE ECONOMY'S BEEN IN
FOR DECADES.
UNEMPLOYMENT, 3.7%.
WAGE GROWTH AS WE JUST DISCUSSED
IS PICKING UP.
BUT WHAT WALL STREET IS DOING
REALLY IS SPOOKING A LOT OF
PEOPLE AND IT'S SPARKING FEARS
OF AN ECONOMIC SLOWDOWN NEXT
YEAR.
DO YOU THINK WE HAVE A SLOWDOWN
IN 2019?
IF SO, HOW BAD?
>> LOOK, I'M A WARREN BUFFET
FAN.
YOU BUY STOCKS AND HOLD THEM.
IF YOU LOOK AT THE LONG-TERM
CURVE ON WALL STREET, IF YOU
WILL, IT'S CONSTANTLY UP.
IT'S A SAW TOOTH.
IT'S UP SOME DAYS, DOWN SOME
DAYS, UP SOME YEARS, DOWN SOME
YEARS.
BUY STOCK AND HOLD IT.
THE PEOPLE THAT ARE TRADERS ARE
THE ONES THAT MAKE THIS MARKET
GOOFY.
THE PEOPLE THAT BUY AND HOLD AND
INVEST IN COMPANIES OVER THE
LONG HAUL ARE THE SUCCESSFUL
ONES.
SO I DON'T PAY MUCH ATTENTION
WHAT WALL STREET DOES ON A
DAY-TO-DAY BASIS.
I LOOK AT WHAT MAIN STREET DOES
EVERY DAY.
ARE THEY SELLING STUFF IN ARE
ARE THEY EMPLOYING PEOPLE?
ARE THEY SATISFYING CUSTOMERS.
I TRAVELED QUITE A BIT THIS
CHRISTMAS SEASON I WAS SHOCKED
AT THE AMOUNT OF NEW
CONSTRUCTION I SAW ALL OVER THE
PLACE.
IT WAS JOYOUS IN MY MIND BECAUSE
I'M A FREE ENTERPRISE, FREE
COMMERCE GUY AND I LOVE IT.
AND I THINK IF THE POLITICIANS