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Former White House Council of Economic Advisors Chairman Austan Goolsbee on the growing budget battle in Washington.
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President Obama today blasted the Republican budget as what you call -- -- all the social darwinism.
And a Trojan horse disguised as a deficit plan.
Our next guest knows better than most what this administration is thinking about when it comes to economic policy.
He designed to much of -- joining us now Austan Goolsbee former chairman of the white -- council.
Of economic advisors.
-- is now professor at the university of Chicago's Booth school of business and professor it is good to have you with us.
The the banks -- having me low.
The president trying -- some rather electric rhetoric today.
I I think our campaign is upon us.
Or what that what -- social darwinism in the context of a budget plan me.
I don't I did it did seem pretty tough I saw I saw the I saw some of the remarks on TV.
I think what he was basically laying out is the contest of budgets -- you want to think of it that way between.
Bowles Simpson.
Kind of approach to deficit reduction vs -- Ryan plan is fundamentally there's -- adding up to around the same amount of deficit reduction but one of home.
Is cuts of about three trillion and tax increases of about a trillion to get to a new -- of four.
And the Ryan plan is really a cut of six trillion.
And tax cuts of two trillion to get to the same -- -- four and -- -- Prospects of cutting the six trillion vs cutting three is pretty significant if you sit down a look at what the things are getting cut.
That is I look at the my you know it's it's hard to do this of course stricter or call that the president would not -- bowl -- and but it sure is an honest straightforward and simple as.
Well elect there's a lot of different positions I think I've got a degree with -- Arnett you know it's not just two sides.
For the soul and there's a deal down and look at -- that's what he meant was with that darwinism okay here's the deal.
In Iran is being applauded in a lot of quarters because -- start to balance the budget in 2000 Ford.
Is it and the president's big -- because he never will balance the budget according to the budget -- has put forward that it's been rejected abide by his colleagues on Capitol Hill in the Democratic Party.
What is it gonna take and I'm asking you this is professor -- business.
If -- -- you can put it what would it take for a both parties to get serious about understanding that this is an unsustainable.
Path of debt and deficit.
That is going to lead to if not national bankruptcy outright.
A lot of pain and -- Well look I agree with you that -- long run fiscal challenge facing the country is quite important.
I wouldn't know what it's a problem that we have known about for 2030 years and he gets -- 2% worse every year.
You can fleeting the deficits of the last two or three years.
Which are overwhelmingly.
Due to the business cycle with the long run fiscal challenge is not doing any favors to that cause of deficit reduction because.
It's making it it's confusing the issues.
For the fact -- that tax revenue for example is the lowest as a share of national income.
That it's been in 65 years now is it.
Vote them the majority are due to the fact that we're coming out of love really awful recession not because of OK I have a -- Viagra was a lot of.
