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Douglas Holtz-Eakin, former CBO director, on the economic recovery and how it will impact the 2012 elections.
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Ending cuts even longer -- the Salt Lake.
Congressional Budget Office director.
Current president of the American action -- joining me now prop from Washington DC you want are one of those people that -- but does this just let them.
Ignore the looming problem on -- -- Well he.
It's a concern for sure -- -- there's two theories about getting things done -- and one of them is that politicians get ahead of the curve.
They -- identify problems they propose legislation and we fix America's difficulties.
The evidence is more in favor of the -- for crisis send my deep concern is.
We're going to wait until financial markets tell us we have to fix our budget fix our debt and that would be of much more difficult way to do it quite frankly.
What is gonna make it more of an issue on the campaign trail I think of three numbers as being pivotal -- the election and since you -- the chief economic advisor for Senator McCain you can.
Shoot -- down.
I think -- it is a grave but gasoline prices the unemployment rate and interest rates and which of those three do you think.
Dominate more than other two as we head toward.
Why I think as we go into November actually the gasoline prices are going to be the most important if you look at both key voters in.
In swing districts the base Republicans and the swing voters in those districts.
By and large they have jobs -- self report on my rates 56%.
What they care about their monthly budgets their quality of life and -- high gasoline prices high food prices high health premiums.
All of that figures much more probably in their thinking about how well the economy's doing.
When we had that a couple weeks ago we had retreat out of treasuries and that pretty.
Notable spike in interest rates and I said then.
If this continues that interest rates and our nation's debt will become a bigger problem on the campaign trail.
But speaking a budgeting as senator Kent Conrad a Democrat from North Dakota yesterday on fox said.
Basically pushed back.
And point to is set out that the Democrats had not passed a budget and three years say they passed the budget control act -- that that seems to be sufficient.
Do you agree with that.
I don't the budget control lap sets caps on spending for both the -- and non defense spending over the next couple of years and for overall spending in the years past that.
We had caps before we had capsule through the nineties and that didn't -- congress' of their obligation to pass budgets every year and indeed.
Some of the twelve years we have cast before in ten years we saw them pass budgets so.
Budgeting is really -- size and displaying your values what is important is to spend money on that and what is.
Important to -- by the wayside and that the senate hasn't shown any.
Kind of indication what -- displays values and the president's budgets quite frankly have been disappointing trillions of dollars in deficits and no real reform so.
I think there's a real need for everyone involved in the the governing process to put their -- -- table do their jobs.
Weak economic data the -- jobs report doesn't do you think that that gives the Democrats a little more wiggle -- to maybe do something else to stimulate the economy.
You got the payroll tax cut that was extended another year.
Unemployment benefits extended but it's an election year you're gonna throw anything all up against the wall that you can you think it's gonna stick.
I think you're right about the incentives but I don't see anything passing this year I think it's more likely you'll hear.
The president and other candidates talking about what they'd like to do but.
They've got some severe headwinds -- they've got the Supreme Court decision on.
Obamacare which is.
Going to remind everyone that they spent fifteen months passing that instead of doing something for the economy.
And they've got all the debt and deficits that are out there and -- the voters care about that if you look at the polling the number one issues the economy.
But the number two and is the amount of spending in the amount of debt and perception that Washington is out of control -- an overreaching they're gonna have to address those issues in some way.
It was great to talk to -- thank you so much governor undertaken covering it all forest and now -- this Fox Business market -- a major deal on patents.
Getting done and the technology world called heavily -- on the floor at the New York Stock Exchange watching the stock of may oh well Nicole.
The shareholders must be jumping for joy today when you see here stocks soar almost 45%.
Moving to highest levels since.
The middle of October here's a look at AOL right now up more than eight dollars at 2645.
Right here.
The high of the day of up to 2669.
-- about 800 patents.
Over to Microsoft is a very big -- one billion dollar deal and it gives that it gives Microsoft.
A heads up in some particular areas such -- -- advertising.
-- instant messaging all of that so with that we're seeing AOL stock soaring.
Here more than 40%.
And that is a huge huge.
On Wall Street accident Nicole thank you so much would allow loved talking about cars maybe.
About some portion I -- with the.
