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Former CBO Director Douglas Holtz-Eakin argues that the president’s economic plan can’t turn the economy around.
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Process that's found jobs -- joining the company now is Douglas Holtz -- he's with the conservative think tank American action forum.
-- I'm trying to assess the current state of our economy.
The president of the Democrats say it is improving I beg to differ I think we weakening as we speak what -- you.
Well it looked to me is that the economy was essentially drifting sideways through the summer and that.
With rising oil price says the the oncoming fiscal cliff we saw some signs weakness -- a lot of the reports have been weak.
-- the only reports that are given -- -- today's ADP employer minority report and today's.
On nonunion manufacturing ISM which had pretty strong employment component so.
Whereas I have thought would have about a 100000 jobs tomorrow below consensus.
Now looking for some things about a 130000 jobs and an unemployment rate that steady on that no real deterioration.
More than sent.
Last night so for President Clinton called for it needs four more years the president -- -- Obama needs four more years to finish the job.
If we gave the president four more years.
And -- it put in place the policies which he says he's gonna put in place what we in fact have a robust dynamic -- prosperity.
I don't see how that's possible the preeminence.
Characteristic of president Obama's policies has been massive national debt.
The history is that countries -- -- with this much -- do not grow rapidly and indeed they face the prospect of a financial crisis.
His solution to that problems are consistently higher marginal tax rates which are exceedingly detrimental.
-- economic growth and so.
I think that policy -- is toxic for economic growth.
Are we we really do have taken different -- we have to.
Actually follow the lesson of his own -- fiscal commission and lower margin rates broaden the base and have entitlement reform so that we control the debt grow more rapidly.
-- -- I've been using a very emotive would I said the look you keep on developing all growing the debt like this the way we off.
And -- -- we go bankrupt and that's a very caution and perhaps an overly harsh would to use but you get the point at some point I think.
Foreigners all Boca Americans will stop lending the government a lot of money.
Do you think we're getting close to that point I'm I'm right.
No one knows but I'll tell -- I'm very concerned about it I'm firmly convinced that if for example.
The -- -- president decided to simply ignored thus sequestered is scheduled for January and say we don't care about cutting hundred billion dollars out of the budget.
We get a credit downgrade.
And I'm quite convinced that if in the first year of the next president's term.
We don't see substantial progress international capital markets are really going to lose faith in the US we are close to the -- the numbers are bad.
That that's it close to the edge.
-- -- like and we appreciate -- being with this -- one of the parade of stars that's -- on the show today and we thank you very much for being here thank you so I'm very --
