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Laffer Associates Chairman Art Laffer on the Wisconsin recall election and efforts to reform public pensions in California.
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Joining us now as Arthur Laffer former member of president Ronald Reagan's economic policy advisory board.
Now chairman of Laffer associates also author of the new book -- Rica the way to fix California.
Our guard to have you with -- this is the subject of our new series of special reports her whereabouts tonight and that is the great American divide.
We're looking at that conflict between public and private sector employees the conflict between opportunity in this country and -- -- And and others as well but prominently in most prominently goes to.
In Europe -- right now about how important Wisconsin is.
And the outcome of that election.
But Wisconsin is a very unusual state along with but California by the way they can go from Karl -- -- Adam Smith.
And back again in a long weekend -- if you go back to -- Dreyfus well Lee Dreyfus was governor that you got this guy Tony Earl was a little bit left the chaebol borrow.
And then you've got Tommy Thompson.
Now you've got a guy you've got Scott Walker it it is a very contentious battleground state it has been for a long time it it really is a Bellwether for what's coming.
And I am very excited about what's going Wisconsin because frankly people deserve the governments they get.
And that you know Wisconsin I think Scott Walker's done a great job I've been up their forums several times and I think -- -- super guy.
And I hope to goodness he wins but with -- -- have the right to choose their own governor of their own laws and I hope they don't make a mistake but.
If there's.
There are very few -- empirical foundations for governor's performance in such a short period of time exact Governor Walker has been in office whether it is removing the three point six billion dollar.
Deficit and whether it is bringing -- budget under control while laying off not a single.
A state employee.
We're always pretty amazed and creating 23000 jobs thirteen thousand new businesses -- just in four months.
And yet and passions are obviously running high as Mike Tobin -- -- reported.
Is just reported.
It's remarkable San Jose California what you're state.
Let me turn.
To California apartment you know what are as -- familiar with from that the challenges that state basis.
Whether it be fiscal policy whether -- societal whether it be economic.
And San Jose we're talking about 95000.
Dollars.
As the average cents per employee -- sort of retired since 2007.
In San Jose.
Those workers -- 95000.
Dollars a year.
I how how does want to get.
-- -- -- -- I'm sorry no but that's only from their pensions right there ought to get other jobs after they retire court so they get that pension and they get another job on top and.
Some of them like you know I can remember back in the olden days they get four and five and six pensions.
And -- live like kings and now the chickens have come home to roost -- hometown.
A San Diego where Jerry Sanders I don't -- -- saw what's happening there but I -- endorsed Jerry when he ran for mayor of San Diego they've got the same problems.
-- these problems have to be addressed in San Diego they're trying to -- They're they're trying to move to a 401K for new hires in sense is that I wondered out there and in San Jose were they're gonna decide is those existing employees.
Having that those pensions roll back straightaway right.
Yet you wanted to roll by they have to it you know it's like Hamas -- creating at a granite wall of a 180 kilometers an hour it's gonna stop level.
The question is what it -- for the bank.
Or whether it stops with conscious rational decisions read it down to where the solution is fair and keeps prosperity so far California has shown itself unable.
To him do the right thing time and time again let's hope they get the right thing this time but I'm not sure that well.
Your book eureka how to fix California.
-- you could cross our California put in the United States of America as well thank you many in many respects.
What is it going to take them and I mean it Governor Brown -- -- has.
Ultimately appears rational and alternately not.
I don't without democratic legislature what in the world is -- -- -- -- a huge fan of Jerry Brown's without him prop thirteen would never pass away did.
It was a great governor of Oakland you know he'd done they would as Brett at when he ran for president he ran on my plan of a flat tax the first presidential candidate.
To eliminate the progressive income tax so he has a lot of wonderful traits and I think very highly of him but the question is he doesn't have the power.
You've got this legislature that's crazy you got.
I stopped at 330 commissions -- my book.
A 185 taxes it doesn't stop it's it's just the most terrible mixture of of of -- efficiencies and incompetency is that we everything.
We're we're out of time but I got to show.
Our our our our -- at home.
The lift.
Both the list of the US taxes -- in California to basic and it's extraordinary that the that the that the -- the -- -- -- I but that Washington partial list -- stopped for a while show I couldn't do any more something more than just debt.
Arthur -- is always good -- awkward.
-- your wonderful thank you.
