McGraw-Hill CEO on Financial Literacy

" I have comedies nobody optimism about the economy about good as rosy outlook changes the governor passes through -- dollar healthcare plan to say nothing of all the other stimulus and incentives coming down the pike. We'll get all that with the CEO of the textbook publisher of financial information provider of personal vehicles whose artists the companies out. Rates to help teachers educate students about personal finance so they can make sensible money decisions as adults Terry -- McGraw -- chief executive joining -- right now. Actually that's the group that that needs the last."

" Now thank you neo could be -- to big problem. Little you know we've talked about reading and reading literacy we talk about that we've talked about stand in terms and science technology engineering and math. But now one of the biggest problems especially in this downturn its financial and economic literacy. Consumer bankruptcies have gone up 30% the last two years. People making very poor spending saving and investing kind woody -- When I was starting we we work with a lot of different. Nonprofit groups that nationwide. This program that we did yesterday eighty I -- is something called financial literacy now a New York. Who we are doing in house training sessions 800 teachers. Yesterday we did 200 teachers. And it and we're hoping that that's bills that the 80000 what did you discover when you're teaching the teachers today you know some of this already did not totally closed. It is also a bad attitude said yes I mean now they get and and they definitely can't get it but I mean. When we start talking about gratification and instant gratification which from 1995. To 2007. You know whatever you want is go do -- you know that and so. You've got to start puts -- discipline and choice in choosing and so visit. There's an attitude the issue that that I think a lot of consumers have got to start to adjust to. You can't spend more than here. I admit and that society can't spend. On. There you want to open these classes that sent to congress. News and it wouldn't be bad a little further into economic literacy what it it's gone on there. Well I think hand you know as we are talking a little bit before had I think that the stimulus was -- good. Move because it had to jumpstart the said that you're in a deep recession you've got to get this system going again. But nothing and nothing and having yesterday we gotta have affected their mindset. You gotta get some balance me and you know now's the time you gotta start to you know make sure that what you're getting for your money. I Israel and Teradata showing that of this is that pox on both houses here and and both parties they're not doing that. That there would think the wake up call might have been yesterday. So we're not saying it wanted by the examples that we are talking about it is that a good chunk of -- hundred billion dollars that went to secretary Arne Duncan and education. Is being used to save teachers' jobs that we're going to be cut some 325000. Jobs. So what happens next year and I didn't you win those states and municipalities are still in. Tough shape and they -- to guys are we going to write another check need to do that yes where and who -- would you build smarter better schools would you help train teachers would you help. You you've got to be -- is -- pretty good business spending your own right that what we've done is established a pattern here that that. On the people don't buy cars the cash for clunkers program -- don't buy homes would keep the rebate and incentive check writing program -- And then in this case for teachers will just keep money. Well couple things one the economy is starting to recover and we've seen some demand not a lot. We'll see by this time next year loudly demand led growth producing at an advertisement. -- A very. Whatever the business. Who there's other issues in the portfolio for that me on this what. But what we have done is we have bought a lower slower growth for probably the next 34 years. Didn't because you just don't spend this kind of money. And I made me and then all of a sudden it's gonna go way you can still have to keep servicing that debt. And the consumer is not going to be coming back in terms of consumption before it's gotta be business investment. I didn't and that's why you've got to -- create an environment that encourages business to invest and right now business investment is nil. And I did say he gotta keep taxes down -- to keep the pressure that's not matter that if we get healthcare or the other. You know that's operates in over 35 to 45% very quickly. And yeah I know you're associated with the all types of local to your friends pretty wealthy I think getting pretty scared. Well I think everybody should be a little bit scared Democrats say it's only three tenths of 1% when you whining about. Well it's it's it's the costs again. And I need you know I mean it's cost versus coverage didn't you know the president's campaign promise was 4647. Eight million uninsured. That cost is the big problem. Made me and show what my concern is that those costs are going up not going down. Made me and you know you've essentially put a lot more water into the soup. I didn't and so quality care. Is going to be influenced -- so you can get the coverage and I but it what have you done to the costs and what have you done to care. You know on that part so I think we have a lot to be concerned about. And I would much rather seen a more gradual you know didn't approach to. They get that we get on dirt always gets in the primary choice drowned world so it's always great when you can stop and get a chance check. -- to grow up -- company's chairman president -- are."