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Today is a three year anniversary of president Obama's signing of the first stimulus -- this next episode Fox's the economy needs more stimulus spending.
Alice Rivlin as a former white house budget director she is joining us now at a time where first of all welcome great to have you -- particularly this subject.
Many people are saying we've got to stop the spending you say more stimulus in what form -- Well I think this is a pretty good budget -- Obama budget because it recognizes.
That we need to do two things at once we need to keep the recovery going they took a good step this week in.
Making the agreement on the payroll tax and -- the extension of unemployment benefits that will help -- indicates a recovery going that president has some other kinds of stimulus in the budget.
And we need to bring down the long run deficit at the same time.
I view this is a budget.
The president's as.
An opening offer will probably have another opening offer from the Republicans in the house.
Unfortunately we're not likely to have a negotiation.
Because the budget totals for this year pretty well set.
And everybody's focused on the election.
Well and we were not likely -- having passed by the senate they haven't done that over a thousand days -- -- nobody like no beyond TV is doing right now that's that's part of the progress it's an election year.
But if you're consents are -- below -- us -- a lot of people would say my gosh you are the deficit hawk or at least one of them use Simpson Bowles.
-- the -- she all those people how can you stand war.
Closed down that that incredible deficit gap that we have because that's what you're suggesting.
Well that's not what I'm suggesting was the president is suggesting a chance that you're setting complete a budget.
-- I do think it's as as an opening offer from the Democrats -- is a pretty good night and it reflects what I believe that we do need to keep the recovery going.
We need to to not worry about the deficit in the near term because.
The recovery is still fragile and we need to focus very heavily on bringing it down over the long run by actions now not actions.
Sometime in the future but actions now that is what was said in the report Simpson Bowles I was a member of that and the managing Rivlin.
End -- -- -- we had a major stimulus upfront.
We have if a full year payroll tax cut which is bigger than than what they eventually did.
And then we -- is that into a long run deficit reduction.
-- and that's what needs to be done.
What do you think when you look at what's happening in Greece right now is it -- screaming signal.
To watch the disaster unfolding there and I'm talking about good -- cutting jobs by fifteen to 30000 depending on the number each day that that.
You know is is thrown out there.
And they are raising taxes and suddenly -- Greece's seizing up and shrinking is that the precise wrong.
Sort of recipe should we.
Should lead to be doing something differently over there and over here.
Well it's hard to know what to do about Greece because it is a disaster.
In all Greek citizens are now suffering from.
The mistakes of the past but it's very hard to see what is the right thing to do.
Now but it is a lesson for us.
We're not Greece and we're not even close to being Greece or Italy or Portugal.
If we don't pay attention to our.
Rising debt and put in place firm.
Actions that will rain again will be in trouble too.
Well you say we're not close to it they're Greece but we have passed that 100% mark word debt.
Is more than a -- our gross national debt is more than a 100% of the GDP.
The CBO is estimating that by 2035.
Our debt if we keep going -- -- will be a 187%.
That's beyond what Greece is now so.
In fact a lot of people say well it's time now to start cutting severely rather than spending any more money.
That's what I'm saying we have to -- in the entitlement programs that are driving up the deficit in the future.
Not because of anything anybody did wrong -- because we're gonna have more -- old people.
And -- health care is expensive and getting more so.
And we need to reform our tax system so we can raise some more money.
Because we're not going to be able to absorb all of those.
That and -- a tax rates that we have now.
Alice Rivlin of the Brookings it's.
Situation thank you -- I've got -- I've got to -- -- -- yes I -- -- -- with me everywhere I go this is what the reports that the moment of truth and great thank you very much good to see you again thank you Dallas yet.
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