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Former BB&T CEO John Allison on the impact on the economy of government spending.
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Bob banker who says this so called recovery might it'll stick a fork -- -- former BBN CC BO's analysis says that it.
Here's a Scottish in this mess so you heard no doubt sir Bob the reverend Jesse Jackson says we have to do more of it would -- -- Totally disagree and and you know spending money you don't have the things that don't need to be done.
Is not gonna -- your stand -- And that's exactly what -- we've done and it and it's really bad that we're trying to draw an analogy with the so called austerity program in Europe.
And it's quote failure -- there has been no austerity program in Europe.
How it's just today looking at the numbers.
If you compare every measure European governments expenditures today 2000 -- when the financial crisis started they've -- increase their spending.
There are -- number of studies that showed what needs to be done under Europe government financial crisis and they have -- would you what would you do.
Okay first you need to.
Particularly deregulate labor markets and this is a particular problem in Europe where they have extremely happy.
Minimum wages and very generous unemployment and we got some of that TU -- You have to deregulate labor markets and you have to reduce regulation of business and that is that we be increased regulation of business raising minimum wage 40%.
Offered very generous and unemployment benefits and all those are our incentives not to create jobs.
Secondly you have to have real cost cuts.
When these programs have worked in places like Canada New Zealand they actually really cut their budget I -- they didn't slow the increase.
And they focus in -- the -- -- to to -- one social welfare distribution program.
I'm very relations pumps are dumb but the argument as if you do that now it might address some of these budget tells you you've you mention.
But it will make -- -- even slower in other words it's a quote Jesse Jackson it will make a bad situation worse.
Paris is -- Canada exactly to -- -- -- -- -- -- What we blackmail its confidence and business leaders who are signal -- ton of cash to make investments.
But they're not gonna make investments when they -- the United States has a disastrous physical play and there's -- quiet.
They look at the Obama budget and say it's not really a budget is a political.
Play -- -- get elected and and they know -- -- we don't have a plane in an Indian if you're gonna Mike long term investments you have to do in the context of a generally healthy rational.
Governmental financed system and that's the problem people.
And they're running businesses it's not just ambiguity it's a belief that what the president explaining what congress is actually doing doesn't work.
You know we're gonna see our another hour -- exams -- I think we're gonna see mortgage on.
Our global see what happened and John Allison it's always a pledges and thanks.
To.
