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Agenda Project founder Erica Payne and Euro Pacific Capital CEO Peter Schiff debate the fiscal cliff.
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Well with those CBO numbers -- back.
I -- government spending could be the greatest divide between President Obama and Mitt Romney.
Will Washington get its fiscal act together here for a fiscal face -- Erica -- founder of the agenda -- -- -- and Peter shipped with the CEO of Euro Pacific Capital Erica I'm gonna start with you GDP down unemployment up.
Recession.
Is it worth it to go off the cliff a little Thelma and Louise action from us this.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And extending tax cuts for people here make more than a million dollars a year more than 250000.
-- a year is not a good part of that plan.
Peter do you agree with fashion we just you know attacks of those making a million more about the -- about winters ago.
Well I think the real problem is not going over the fiscal cliff but in trying to avoid it.
You see if we actually do the right thing and -- all the deficit.
It could bring -- a short term recession but that would be the type of constructive pain that we need.
To solve the problems if we try to prevent that we're gonna bring not a depression.
What we really need to do is slash government spending and it that is painful in the short term for people who depend on those checks.
We need to ignore that because believe me the real fiscal -- is much worse when because we do nothing we have a sovereign debt crisis and a currency crisis and then we're in real trouble.
He you know the guy on the best way to have a sovereign debt problem is to do things like not raise the debt ceiling.
And to the -- -- your creditors that you're not gonna meet obligations that you are eighty.
Take and I and that finally advocate that the conservatives are feeling exactly he's acknowledged this in -- for the first time in United States history.
We had a down -- -- of our credit rating.
The ties the crazy conservatives in congress decided that they didn't want to meet the financial obligations -- -- undertaken.
And let's keep in mind you haven't got -- -- got back when you don't need our outlook on Tuesday and spreading the -- on days checks.
You're talking about demand did yeah we don't that they are candidates say they aren't we depending living on the government dole the people -- depend on these checks yet people like.
My mother who was a high school principal in 2000 kids my father -- -- -- guy -- he let let me get awarding an ordinary not a trait that we are people here actually paid by the government Peter eat dairy care -- when you're talking about.
-- he's going to depend on the government our entire country.
It's on the government yeah yeah.
Yeah you about this -- -- If -- -- you don't know what you're talking about you don't pay off your debts by going deeper into debt we don't instill that -- Optionally essential rather -- I appreciate -- Soledad because -- if it if we keep increasing the debt ceiling we're gonna have no choice but to print money to repudiate our debts and that is the crisis I'm talking about.
We will have a sovereign debt crisis and a currency crisis.
If we don't bring these debt under control and we're not gonna control the spending by raising taxes on the most productive Americans I'm the American -- why does not surfaced -- free kids got.
I mean this.
The less government is out.
Regular Americans who work every day I kind that -- heat -- like Paris Hilton are more constructed.
Then they aren't here to talk about herself and what about -- you can teach my argue that that they are about the Americans are job creators.
I'll tell you it's -- job creator consumer demand is -- category here with you.
I don't create jobs you create.
I was then some when he should handing -- you know people who are going to have an a minus okay rather -- handing -- -- -- he'll have to -- all the my -- consumers.
Get their money.
-- they had -- turn their employers.
And the reason there's anything the body is because somebody produced it right the only reason for days to eat more -- pick somebody to our.
What are you holding -- -- -- -- -- -- -- Crazy OK okay -- -- I'm calling my name calling got -- you don't wanna hear -- really don't but let's let's get back on topic Peter wanna start with you on something this is very commercial.
The issue of unemployment we were talking about job creation her -- talk and no -- is talking about job creation but the issue of unemployment the CBO is very specific today about two million jobs lost.
That is.
That is depression in -- -- but.
On the other side Peter you also said that we need to address the issue of spending so what's it gonna be your -- -- -- the best for out.
Well I think we have to stop spending if we want more jobs and I'm probably the only person here that's created I have over -- 150 employees.
And the reason I employ people is because I want to make a profit for myself.
And so the only way we're gonna get more jobs.
Is if we make it less expensive -- hire people and the reason it's so expensive is because of government rules and regulations that unnecessarily add in the cost of employment.
So we want more jobs we have to increase in demand for labour which means we have to reduce the price of that labor which means a lot of deregulation it means lower taxes it means less government.
If we stay on this trajectory we're gonna destroy jobs more importantly we're gonna destroy productive jobs will replace them with non productive jobs and people might have a paycheck but there will be nothing to bond.
OK let me let me take position it Erica because Erica percent to one is talking about his job creation we're -- things that -- been very vocal about -- through the agenda project has been the fact that.
That jobs will be created no matter what.
After that the bush tax cuts expire how do you justify bad.
Well -- we've got corporate taxes the effective corporate tax rate of 35% right now and many CEOs are coming on the business North American telling us.
They don't wanna hire the is -- is too much for the what do you say to them well.
Isolated damage is that when you're looking at corporate tax -- can say that the effective corporate tax rate is 35% however the real corporate tax rate the rate that these corporations are actually paying substantially lower than that because they hire armies of lobbyists to -- Yes -- that.
All people aren't normally -- American -- and Eritrea have heard it and pet -- not incorporate -- -- that Geithner rate I don't have any lobbyist protecting me.
I paid that 35% Paramount like totally about and that's what I.
Anybody out there that is that I use -- -- in this country are things that need to get -- -- For example why don't we upgrade our infrastructure about 80% of which hasn't seen -- Why don't do things -- in -- and -- money really comes and it means innovate or create conditions for.
A new economy and for new jobs -- where -- slowly tearing you don't have out my you can routinely just put out.
Ousted -- even let me say that it would -- -- -- and I got government regulation.
I'm going to eat -- -- it's not about what regulations you would like to cut so would you like to cut.
The China's sizzling my I've -- is that what you -- -- manage -- -- and I don't have much time I'm gonna get -- last word on the -- Peter.
-- ahead final word I don't why it's not about safety look I have bureaucrats in my face -- all day I mean how many from hiring people it's got nothing that -- safety.
I spend millions of dollars complying with regulations that you don't even know exist that do nothing to -- they -- I mean -- like from my -- Customers I might as well yet all they do with one up my red -- -- -- they have.
-- -- -- -- -- -- bring my he would actually work there aren't cellular and employees somebody and what I would -- shoes before you criticize me are.
Peter Peterson biggest the last word guys -- saying that's an option if nothing else Erica -- leadership.
Guys thank you very much status.
