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University of Maryland economist Phillip Swagel on how Rep. Ryan and Mitt Romney's budget plan will impact the economy.
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Thinks things are excellent Romney -- ticket mean for the economy joining us now to weigh in is -- like going.
And -- of the University of Maryland former assistant Treasury Secretary.
Of the United States thanks so much for joining us.
Now thanks very much for having me.
Q I mean that rich was just outlining some of what this ticket might mean for the economy never has there been a more stark contrast.
Between two choices what do you think is better for the economy.
Yeah -- you know I think it's better for us to take.
-- the problems rather than sitting back and and letting the problems happen are we seeing in Europe.
In -- what was that what happens -- we don't deal with our problems that we do have some time before the fiscal challenge they're really hates the United States.
But we've got to start working on now and that to me is what's attractive about mr.
Ryan's plan is -- its specific is detailed.
And it's really focused on the fiscal challenge.
You know building analyst this question about the stark difference in the candidates you have to look at this election right as.
A referendum on what you think the fundamental role of our government should be so.
I mean is it realistic to expect the trajectory this country to go into more than opposite directions than it ever happened before in history as a result of the election.
Yeah -- -- it's definitely it's a 5050 country and hopefully the electoral clarify that.
But I I think you've identified the key choices what's the size of the government was the role of the government in society.
And in people's lives in the size of the government inexorably leads after taxes -- on a lot of taxes or little taxes.
And then what effect of that house on the economy -- people's incentives.
But is it taxes so much is spending and I think the message Ronnie kids -- putting.
Paul -- friend senator is that a bloated government is not going.
To work that this has to be downsize he's got his Medicare plan he's got the budget plan obviously don't need to go -- the particulars of it.
And you know Obama has no plan.
So that in and of itself if you agree or not -- it.
Its net out in favor of the Republicans.
I think so -- -- I'd like to think that putting -- a plan and giving specifics and and being responsible is a positive is of course is easy to attack.
But absolutely I think.
-- mr.
Ryan is very good at making the point day you can agree or disagree with him but he's being courageous he's being responsible and ultimately I think that's what's.
I'm most important.
Is like print and on the other -- we we expect the attacks.
-- it is a fair criticism to -- that if these policies worked.
That the economy would be booming and that if you look at Greece you -- they don't work because that is the common argument that's made on the Republican side and the other side they say.
Look at the economy that we were handed you know eight -- says if Republicans set the house on fire and then the last -- -- you know now we're taking the blame for this.
Yeah you know.
There's no one magic bullet in the know they'll wander spell that can reverse -- the economy -- instantly give us a boom.
But I think we do understand that.
Lots of government interference regulation.
And anything like that will have a negative impact on growth and on the economy.
And so that's I think what's that's what's attractive -- governor Romney ended mr.
Ryan's plan.
Is taking the government out of the this is out of the way business and letting us go back to a stronger.
You're -- contrast -- can you say quantitative leave that more spending.
By the government doesn't lead to more jobs at a more prosperous economy ending that is sort of the argument that they -- time and time again that there isn't enough demand out there's been -- -- keynesian argument that the government house to make up towards the end and spend in the short term.
And that will lead to growth do you quantitative we reject bathroom.
-- you know eight.
It depends on the horizon that when the economy is weakening -- President Obama certainly inherited a weak economy.
Then there is a role for the government be active if I think that time has passed there's a sense now only traditional government spending.
Everyone understand that -- -- means higher taxes in the future and that's probably a net negative for the economy you know -- it is a role for the government it's just passed.
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