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Today marks a three year anniversary of president Obama's 800 billion dollar plus stimulus plan.
And -- a new CBO report predicts unemployment will remain above 8% 32014.
And our nation's deficit continues to grow bigger so.
What did we really get out of the stimulus and what will it take to fulfill the president's unfulfilled promises joining me now Donald Marron director.
Tax policy senator and former CBO director Donald local to the show great to have you here.
I got to tell you know.
I'd look at the promises.
And I look at sad how closely their fulfilled -- there's really no match up.
Well thanks for having -- the you know the unfortunate truth is the US economy experienced an enormous shock.
And as a result deficits have been higher than I think almost anyone would have anticipated -- unemployment has been persistently high.
I would you your way that President Obama had to say last night on the topic of the stimulus.
And its performance here -- its.
I don't change the -- Bob -- in 2008.
Come in fits and starts and sometimes.
It doesn't come as fast folks want.
We've -- setbacks.
I've made mistakes but remember.
What we used to say -- they're in the camper the real change big change is hard and it takes time.
-- is that a satisfying answer do you.
Well well I mean -- that that was covering an awfully broad set of policies you might think about.
You know I'm I think the reality is that the president came to her office at a time when the economy where -- suffering and falling further.
Passed a stimulus package where I think the concept of doing stimulus -- a lot of sense at the time.
You know one can have disputes about how exactly was designed and whether it was gonna maximize the bang for buck if you will.
Been made sense to do something but you know the reality is the US economy faced a very very large challenge.
And I don't think anything here in Washington could have completely -- that over.
Well the president's promise to cut visit deficit in half back in 2009 that hasn't happened the president promise that unemployment would be below 8%.
That hasn't happened it seems to me there's a lot of broken promises out there and not that much performance when you truly examine what the economy has done.
-- -- -- -- When I thought I mean it's obviously a -- we still have unemployment well north of 8%.
Obviously below some projections that were made back in 2009.
You know I chalk up most of that to the fact they're predicting the future is really hard and that things turned out worse than people anticipated.
But you know the result is we sit here today we've what are still gigantic deficits lots of debt.
And a very challenging environment to CBO highlights going out several years in the future.
I -- fifteen dollars fifteen trillion dollars in debt one point three trillion dollars deficit this year one point 33 actually.
What needs to happen what's the solution let's talk about that that -- what could be positive what can go right here.
We know what can go right is the economy strengthening healing apart on its own and the car in part because of policy support.
-- -- economic data we've seen over the last few months have been promising.
Lower jobless claims higher job creation.
We need that to continue.
It would be nice if oil prices could figure out a way to go down rather than go up.
Have not happen soon Natalia I mean I don't I don't mean to be negative peer think.
I mean every forecast I've seen is for higher gas prices.
You know one thing we have -- mention here is entitlement spending.
And -- even Tim Geithner recently saying that the debt is unsustainable Treasury Secretary say even if congress were to enact this budget.
We would still be left with.
In the outer decades as millions of Americans retire what are still unsustainable commitments in Medicare and Medicaid.
Five media is there any chance that congress will actually grapple with the issue of entitlement spending -- not this year but next year.
Yes -- this year it's obviously impossible.
As you say right you know the budgets doesn't really make any effort at fundamental tax reform and it doesn't make any effort -- fundamentally getting Social Security Medicare and Medicaid under control.
Obviously a lot depends on the constellation -- people who win the elections in November.
I like to think that our elected leaders will turn to these issues in -- thirteen and then maybe we'll have a grand bargain sometime early -- -- fourteen.
There's an enormous now we need to do we're on a trajectory that just simply doesn't work.
I agree with that -- -- -- coming on the show tonight we really appreciate your time have a great weekend protects.
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