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State model. a one size fits all programming that just piles on benefits. and at a certain point there are diminishing returns . the benefit package is much greater than them going back to work. when you start this type of model and take the individual out of the equation and all about benefits, this is that type of scenario . i am glad aei is pointing it out. >> gretchen: it is call would the welfare cliff in action. single mother and income $69,000. and the net income for welfare $57,000. and single mom of two out working for $69,000 . net enemy is less . $57,045. how does that happen? >> gu...

Stockton is one of thee city to declare bankruptcy. public safety employees were costing city on average $150,000 each per year. vice mayor miller is joining us on the phone. >> thank you for having me. why has stockton run out of options at this point. is there any way to bypass bankruptcy. ? >> no. if there a way we would have opted for it the council made conditions. reduced our work force and cut pay and benefits through elections and imposing them and we ran out of options and nothing else to do tprotect the people that live here. we heard about the hefty benefit package and how did it

The america. look at the joblessness in america today and look at the loss of manufacturing. that's what we've got to bring back. i think as i say, we will now by the end of next year have 1,000 new employees directly in mississippi, the indirect and induce is about 7,000 jobs that are impacted. i want to do this in other states. >> yeah. >> the governors got to be able to lay it out, i have to make money, good for the state. everyone is so intrigued. the press this weekend, how could haley barbour and terry mcauliffe be together? that's not the point. what's the best deal for mississippi and ...

Exchanges are going to work. we don't know what the minimum benefit package that's going to be required for those businesses to provide. so there is a tremendous amount of uncertainty still out there, and, frankly, most of it looks like it's not good. jenna: real quick final question. what is next for you and for your association? how are you helping guide employers as to what to do next? >> in the short term for us we'd like to see this repealed and start over with real healthcare reform that lowers cost, which is the number one concern of small business and move on. but, you know, until that...

That is very important. the other thing is that robert was talking about possibly premiums going up because of a richer benefit package. but the most significant thing about getting a better benefit package is that people pay less in deductibles and copayments. when you focus on premiums, you are not focusing on the overall cost savon the point is that for many americans come you are not denying the fact that they are going to have to pay more money, right? >> you know, americans are paying more money with each passing year. the affordable care act legislation is going to allow people to get h...