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Former Reagan economic advisor Art Laffer on the Ryan pick and why it refocuses the election on the economy.
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Monday August 13 84 days of the election.
It's coming into focus Mitt Romney's choice of Paul Ryan as his running mate makes the economy I think clearly issue number one.
Former Reagan economic advisor.
-- and joins us from Nashville.
But are some I wanted to of one another and how do you describe the state of the economy that we got to deal wins in the immediate future.
I believe you think that America is sliding back into recession back correct.
But we surely are not expanding very rapidly at all -- it looks very terrible from the standpoint of the US economy and especially when you consider tax would get -- That's coming on January 1 2013.
Which will really be a -- stomach blow to the economy and I think could push us back into recession.
Now the choice of Paul Ryan of over the weekends as vice president.
That's really focused a lot of attention on Ryan's plans to reform entitlement programs and is that a lot of criticism of event that reform effort.
I wanted to tell us what happens if we do not reform entitlements -- just go on as we all what happens to our American finances.
Well what.
Happens -- you have the people receiving money is much greater than the people paying -- taxes and ultimately the process asked to stop.
And the question is how are we gonna have a stop -- -- up.
Miles -- riding careening at a granite wall at a 180 kilometers an hour it's gonna stop now whether we put the brakes on stop -- rationally carefully and positively.
Or whether we let -- crash into the -- -- happily California.
That's the choice of the electorate I think the Paul Ryan plan is exquisite I think Paul -- entire career focused on economic growth jobs output employment.
That the best form of welfare is a good high paying job.
All of these are Ryan policies and I think he's just the greatest thing that could happen to American politics.
Can you get elected if you say to people we're gonna give you less you gonna get less it's from Oz -- get elected.
Well it's hard it -- hard.
And I don't think Paul is saying that to the people what I think he's doing is he is going to stop the machine from crashing.
And that's not saying they're gonna get less that's a good saying they're going to get.
As much if not more than they ever could get by letting the productive base of the US fall I mean.
Stewart honestly the most immoral act.
The government can ever perpetrate again -- its citizenry.
Is to enact policies that have the effect of destroying the production base from once everything good flows.
And that is exactly what's been happening under W and Obama they've been destroying our production base.
And making us less less capable of having a good welfare program in the future have a good retirement programs that future.
Paul Ryan and I believe will make welfare more sound more correct a more sustainable and therefore is not depriving it but is really making it work.
Now you say W.
And President Obama both -- -- towards off a destroying the production.
Based approved up to base -- the -- are you talking managers shed manufacturing or just up.
What -- and don't -- -- They did generally because if you look at what happened in the last two years of W.
There was this -- -- and stimulus spending if you wanna call that I had a piece in the Wall Street Journal.
With Steve -- not all about a month ago that showed the huge increase there in the crash in the economy.
My view is that stimulus spending hurts the economy it doesn't help it.
And that all those programs we -- from the 600 dollar per capita rebate that TARP program that taking over Fannie Mae Freddie Mac.
The add -- the housing and food and -- agricultural bills.
All of those plans were just disastrous.
To the US economy and that Obama continued them by the way -- we won on a double down -- did even more and that's why we have the worst recovery.
In US history my -- -- -- -- -- of Ottawa couple was a can I ask you I want it can I ask you one question do you feel a little bit of nostalgic pride.
When you saw the queen's sixtieth anniversary jubilee and then the Olympics all from your former home country.
I did off I did -- honestly.
I I think I think of myself as a thoroughly americanized.
Immigrant I've been here forty years in my home is America but when I saw.
Didn't -- Olympics doing so well.
And I saw the queen and the jubilee yes I thought was -- -- what -- that -- well -- -- -- it was spectacular I grew yes.
It's just it was a wonderful thank you -- help me no thank you -- -- camera caught up with secrets are not -- -- good luck to you thanks doctor they move onto another big.
