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Former Senator Phil Gramm, (R-Texas), compares recession responses between President Reagan and President Obama.
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It is a critical week for president Obama's quest to win another four years in the White House my next guest says the president's response to the weak economy should tell voters -- they need to know about what a second term would bring.
Former senator Phil Gramm is a senior popular US policy metrics and he joins us now from San Antonio Texas and senator Graham thank you for joining us.
Listen thank you as you wrote an op Ed in the Wall Street Journal comparing President Reagan and president Obama's response to recessions saying among other things of jobs and incomes.
Rose on the Reagan fell on the Obama and the number of Americans on food stamps unemployment.
Fell under Reagan rose -- Obama so the question is what is what did President Reagan -- that President Obama.
It's not.
Well first of all.
We've had two big time recessions in post war America.
1981.
Where the unemployment rate went to ten point 8%.
At the same time we had double digit inflation we had 21 portion interest rates with a -- time.
And we have had the -- recession which -- been a deep and bitter recession.
The two presidents had very different policies.
Ronald Reagan cut taxes.
Reduce discretionary spending.
And it.
Reduce regulatory burden and the economy responded.
55.
Months after the recession distorted.
Reagan's recovery had created seven point eight million more jobs and when the recession started.
President Obama massively increase discretionary spending.
Proposed and implemented tax increases and implemented do most rapid expansion in regulatory burden in American history.
The response is -- 55 -- -- to the recession started.
We still have four million fewer Americans working than we did when the recession distorted.
In the the average income mobile working American family.
Under way unit grew -- about 3400 dollars and real purchasing power dollars.
Under Obama let's declined -- 4900.
Dollars -- what is remarkable.
Is that it has declined faster.
Since the recession ended.
Then it did during the recession which I think is very troubling and finally the article points out.
That the flip side is that under -- again.
Food stamps even the number of people drawing disability.
Law unemployment insurance all to climb dramatically.
In the Reagan recovered they have all exploded in the Obama recovery.
As the 126.
Programs that make up our trillion dollar welfare -- -- Has grown two and a half times as fast under.
Obama is on -- anybody else to comparable Citadel it.
How does -- -- you have a Ph.D.
in economics and University of Georgia what would you do to tackle this crippling debt that's gonna take over to sixteen trillion.
Probably tonight.
Without raising taxes.
Well.
I would reform entitlements.
Would.
Change.
Medicare to try to give people.
A greater control or whether health clear to create more competition.
To -- efficiency to bear in the market.
I would reformed Social Security on a prospective basis.
-- and four people that are below 55 years of my age.
I would begin raising the retirement age we all living longer we're all healthier.
We're going to have to work longer.
I mean everybody knows those reforms have to be -- this didn't partisan.
It's just they don't wanna talk about it and one thing I admire about Paul Ryan Michigan like the guy you dislike the -- But you -- side he's been willing to -- end up and talk about an issue.
That everybody else's Freud.
Right good stuff senator Phil Gramm thank you so much for joining us -- -- flew from Texas we appreciate it.
