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Former Regan economic advisor Art Laffer speaks out on the U.S. economy, unemployment and President Obama’s jobs plan.
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And thanks for -- -- what I have the top of the stack one to be nice to hear right is that will create jobs I mean this isn't partisan.
Every one wants to see the unemployed get back to work for -- them.
And for the economy so.
The president's gonna -- unveil his plan and not from a factory or the Rose Garden but for the big big stage before a joint session of congress.
Justice setting alone says his speech better have some really really big ideas but what can He offer that will make both parties embrace it.
Stephen Hayes from the weekly standard will -- -- shortly but let's start.
With economist art Laffer.
The doctor laughter on the this Labor Day weekend what do you wanna hear from the president when He gives his big job speeches coming week.
While -- I'd really love to here from him and he's gonna cut spending dramatically.
He's gonna go for cut cap and balance.
He wants a low rate flat tax get rid of all these dodges and everything and lower tax rates dramatically.
He replaces Ben Bernanke with someone who believes in sound money.
Signs the free trade bills would -- attachments and in addition -- agreed to regulatory reform to reduce the burdens on business to keep them growing.
That's what I'd really love to hear from and by the way He did that we would have a boom like you couldn't believe.
Absolutely but we do have some politics involved in.
One of the one of the I think we're simply one of the things about you're perfection you know I've always -- -- economists are more political and politicians and I always learned from you every time we talk guard over the years.
Mark Zandi wrote -- is -- -- study did a study.
But I heard Nancy Pelosi and others have many times say in that is for every dollar of unemployment insurance it leads to an increase in GDP.
Of a dollar 73 in semantical.
Did that -- All you've heard you first say yet but I heard He said many times I -- this as it I've seen other studies out there are more studies that say.
For every dollar the government spends -- unemployment insurance it grows the hate it and point 25 or 25 cents so you lose money on the deal makes unemployment worse your take on it.
-- you know if you pay people dot to work which is exactly what unemployment benefits our don't be surprised if you find more people not working.
If -- attacks workers.
And -- non workers you're gonna get a lot more non workers and that is exactly what's happening in the economy today unfortunate -- -- one stuff.
I don't know where these other economists like Larry Summers get there nonsense.
But it doesn't make any sense and you can see the consequences of their policies it's tragic what they've done to this country.
Yeah well we've got a new guy coming along yes have been confirmed yet but we doubt but Alan Krueger from Princeton.
Who.
Has written I've I've gone back and tried to read what He has written in the past and He did -- a study more than one of them where He came up with the conclusion.
That's the more you would extend unemployment benefits the more you -- -- unemployment.
And now.
I'm surprised this is gonna be interesting to see -- that if He had to change his story or the president changes hints.
Well unfortunately the real problem would guess getting a paycheck from the administration.
It is you will -- arguments you know to be true in order to curry favors with your political benefactors.
You're no longer an independent economist -- a team player and whatever the president says you've got to figure out an argument that supports -- That's why I've never work for why haven't worked for an administration since 1972.
And you know it's really very tough to be an insider.
As an economist and I feel very sorry for them I mean Austan Goolsbee and some of the others Christina Romer all very fine people.
And yet they had to -- the line when they they know I mean every economists note that silly.
What is that why they get secure America's you've got Larry Summers Christina Romer Austan Goolsbee this is number four is our chief economic advisor to the president.
Is that -- over simply because of the fact that the that that they're they're complaint with the buzz in the economic community there.
They're not listening to the president is not listening to his economic -- -- Or or that the economic advisor disagree with the -- -- what is it.
Well I obviously many of the things the president does they disagree with.
I mean -- can't help but disagree with that I mean He does lots of things in many of them are wrong when it no matter who the president may be.
I mean but in fact -- you like it on balance you're gonna stick with the person even if this or that issue you're not gonna do but the problem here Thomas rated that this economy is a tragedy.
It's a it's a train -- And how would you like to stay in and join a train -- to me it makes no sense whatsoever.
These people are very unhappy when you're in the White House is I've been.
You know that when the president is under enormous pressure everyone feels that it's awful.
It's like being at a funeral and I I imagine today that.
Everyone in the Obama White House feels like they're going to a funeral that's gonna happen pretty soon well as and it's not a good feeling.
This new economic advisor again Allan Krueger -- what one of the other studies that he's been a coauthored was a study that came to the conclusion.
That the longer -- on the unemployment.
The more you.
Sleeping in in the morning and you watch more TV -- And I mean -- -- -- -- you don't need to be a Ph.D.
in economics to figure that out but only about 10% of the time was used.
Either getting an -- education or actually going out and looking.
For a job.
I know well that's what you'd expect to happen you know whenever you whenever people become entitled.
They tend to treat that is as something that they are -- And that they go and watch TV eat popcorn do other stuff sleep in late.
It's metric if you have kids if you have kids -- see it exactly you gotta get up up and Ralph them and get I'm going to got to reward him for working not for not working.
I -- I've never gotten a for a sit -- made a dollar bill for a C.
You had to get -- is to get a dollar bill for my mom and dad.
And I think that's what you got to do with people it's called tough love but it's really important to get this country going.
Yeah it is art Laffer always great to hear your opinion nice to see you thank you -- be with you.
Thank you very.
