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Jarkesy & Co. CEO George Jarkesy discusses how the president’s budget will impact the economy.
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The business world left to think when analyzer president's budget we're joined now by George.
You know Georgia businesses have to plan for the future when they see.
The the president's own plan for the future regardless of the fact that this isn't gonna pass.
Are they must think she's we got to hunker down for another 34 years.
-- -- your small business in America and you're not hunkering down you're not paying attention to what's going on in Washington.
There's a total disconnect I mean this.
This budget proposals -- diversionary tactic.
That he's hoping the American people won't actually read it.
And because buried in there is the one thing that constitutionally allowed.
Which is which is the military.
Is cut and programs that aren't constitutionally allowed education.
Energy all these programs are added up more money.
Right and -- running the thing I wanna keep it on business because I wanna I wanna focus on what the business people out there are are -- -- right now.
There is this momentum for growth in the private sector the private sector wants to grow.
There is a lot more money being spent on hardware on tractors -- on the heavy duty machinery.
That will lead to long term growth so there is planning for growth in the future but when they see a budget like this does it stop that growth and its tracks.
Yes it it don't not only stops the growth in its tracks but but it it puts -- -- -- reserve where they're starting to hoard cash again.
They're not hiring again they're now putting up capital expenditures they don't know what Obama -- is going to cost.
They don't know what -- -- regulation is gonna cost a lot of this new budget today.
Proposes new -- regulators knew administrators more over burdening regulation.
And you've already got out a climate in America where about 12% of our GDP is paid out in regulation.
And that is continuing to grow.
And you're seeing the government grow bigger and bigger and you know that only two things are gonna happen from that.
Either one you're gonna have higher taxes or two you're gonna have inflation.
And so businesses are trying small businesses are you trying to prepare for all those variables.
As they look -- Ford in -- capital in and people.
And yet George our economy is so damn -- resilient our economy as I said before wants to grow it's making these.
These initial steps towards really growing its way out of the recession.
Again you can't do what would one and a half percent growth but if it's working towards to maybe even towards 3%.
Is it possible is it conceivable.
That the momentum of the economy itself.
Is strong enough so it -- withstand what the president has in mind.
No it's not unfortunately we are not going to grow our way out of this -- You know we are looking at having an expenditure of about 90%.
Of our GDP.
In less than eight years from now and so what's happened is since 96 till now and 2012.
You know congress -- and our government has continued to grow the spending.
And the only years where we had balanced budget.
We're years in the late 90s992000.
When you had that the -- liquidations from all the market.
Money that was made in the market in the dotcom boom.
That's it actually at a higher revenue.
But the government continues to grow and spend more every year and until you get that spending under control small business -- Is going to have to look at what other taxes next year what other health -- and you know what is inflation in.
And they're not only lottery -- -- -- we can't we got to -- we got to leave it at that George but there is a lot of repress supply out there are a lot of young entrepreneurs who want to come on Lotta -- small companies who want to grow a lot of big companies have a lot of cash.
If they they want to move they just need to be released George we've got to leave it that George target say good to see if --
