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Forbes Media Chairman Steve Forbes on the outlook for the U.S. economy, the flaws with Obama’s economic plan and what Romney needs to do to get more...
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Retail sales dropping for the second month in a row and prompting economists to ratchet back their growth expectations should we be bracing for another recession.
Let's -- Steve Forbes chairman and editor in chief of Forbes media Steve always great to see you -- to see you let's get to this idea of whether we are on track for another recession.
Do you are you voting with recession -- are you optimistic.
Well probably neither I think -- gonna chug along electric -- highway -- thirty miles -- our own should be don't seventy miles an hour.
We're not gonna go back to 010 miles an hour.
So -- this is a very disappointing recovery at this point we should be -- -- to two to three times the rate we are now.
And so I think -- that senses in the worst recovery in American history from a severe recession.
So it's like walking pneumonia not enough to put Shin Bet -- I feel very good about.
And it doesn't put people back to work and it doesn't improve improve people's net -- we just had a report yesterday that.
Net worth was down 40% in the three years ended -- when he ten.
This is not a good time for individual families but you say one of the factors on the horizon is Europe.
Tell me about your fears about Europe could it hurt our economy here.
Yes both in terms of what it -- of the global financial system also imports exports capital flows and the like.
What Europe is doing in a big forms what we're doing here a milder form.
And that is putting taxes on the private sector they talk about austerity elects all falling on the public sector not really.
-- with a few exceptions instead they're piling taxes on Japan's doing the same thing on the private sector and they wonder why this death spiral keeps going.
-- pile on taxes on Italy Spain Greece they're gonna contract even more you're not gonna get rid of a budget deficit when you have a contracting economy.
Absolutely right well.
Yeah you I've been looking for Smart ideas from the candidates.
-- a couple of polls I'm gonna show you about what Americans think.
About the economic plans for both Obama and Romney let's look at response to Obama's economic proposals 54% disapprove no support there.
-- on Romney side the -- disapproval rating is 47%.
-- I know -- big Romney fan.
Nobody likes any any economic proposals on -- not nobody but a majority dislike the economic proposals on the table.
What do you make of that.
What I make of it is that Romney's got to do -- Ronald Reagan did in 1980.
And that is explicitly and consistently expound his -- reform she's got a mile tax reform on the table now.
Beef it up like Paul Ryan would have them do that's very exciting reforming.
Entitlements and a very positive way you don't have to program off a cliff to do it.
And a very positive way in terms reforms.
He starts expanding those things of people realize he's not just running against President Obama he's got a positive pro growth agenda.
That's -- is gonna win this election.
Do you think its plan then doesn't go far enough for the kind of reform that we need.
Now I think it's a good down payment but he's got to do morning think the -- in remote for doing more we're gonna get a good -- and to a three weeks.
When the Supreme Court makes its decision on Obama care.
How Romney response to that with a pro growth of health care plan -- plans that's gonna determine whether this man is ready to take this campaign and -- reaganesque direction.
Well that's going to be an interesting test of course we're going to be following Matt.
Tomorrow the president delivers what he's calling a framing speech for his economic ideas being you know what Steve it's all the same stuff that -- -- report its infrastructure its -- Hiring more cops hiring more firefighters giving the states money do that.
Maybe some small tax benefits for small business but at the end of the day I'm not hearing anything to get really excited about.
When you have a bad menu changing the names in the menu is not gonna make the food any better.
I think -- public -- -- this he's great when he co -- the restaurant makes -- sound very glittering and sizzling but then you get the same junk food.
People want substance not to jump to the past if he does that again instead if you know what he should do tomorrow but he won't.
It's say we should extend all of these tax cuts for another a year so we don't have the uncertainty of what happens after November regardless who wins shows leadership what are you worried about Obama now.
It's all about bad economic news and fund raisers not what people want from a president.
And we are paying for all the travel for that fundraisers that's what really gets me happen going well if -- was gonna leave office permanently I would be glad to fund that travel.
That's it but that's well now you've made your point have you clear Steve Forbes was -- too subtle.
No I understood -- perfectly always a pleasure every trying to show thank you so much are right that.
