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Steve Moore, WSJ economist, on the European riots taking place over austerity, and if the American economic climate would ever cause similar reactions...
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Shares governments are trying to take one step forward to solve the continent's debt crisis but citizens seem determined.
To take two steps back.
With the US trying to solve its own looming debt crisis could we ever see this kind of turmoil break out here Steve Moore from the Wall Street Journal.
Now -- have more on this -- mean we we watch these protests going on in the streets and the first thing up my mind is that it seems like things are getting worse instead of better across Europe and I thought that we had sort of solves -- at least part of the financial crisis there.
You know what we're looking at these pictures what do you think Steve.
I'll answer your question about whether this kind of thing could happen here are more secure -- that's really the interstate.
-- -- I don't I -- yeah but let's start that what I.
I'll start with out because I do I actually think that that were very much like Europe in the sense that Americans.
Especially some of the more radicals on the -- have come to regard.
These government benefits as human rights -- And if you let's say you were to get a president Romney and let's say the president Ronnie came and it's hard to cut back on some of these welfare benefits some of these.
These retirement benefits I think you could see.
Number we saw Madison Wisconsin with people taking siege of the -- capital they are.
I think you could see that breaking out all over the place it's a scary it's -- -- -- but I think it could happen the good news is we're not nearly as far doll not the path to ruin.
As Europe is so I don't think that dobbs -- we're not anywhere.
-- -- -- -- -- -- -- -- -- -- -- It's kind of a two prong question because it's.
Are we close to Europe in the financial sense that -- -- in the debt sense -- I were obviously heading down that road and then there's also the cultural question.
Brian what Americans really have the will cut to -- like this with Molotov cocktails and a hard time seeing this -- -- at the same time.
You know -- Occupy Wall Street the beginning.
You know -- it wasn't like this but it was still more vocal -- I thought it would be so -- so let's.
The financial 11 look at -- fast what I look I'm one who doesn't think -- like Europe I mean.
First of all we -- the safe haven of the world you know look what's happened in the bond rates in the United States even as.
Our credit rating -- follow an -- got one point 71 point 8% ten year treasury bonds.
That doesn't suggest to me that the world is really worried about -- American.
Government being able to pay back it's -- now back and change in a hurry as we've learned that a lot of these other countries I just think.
That you know were the least rotten apple in the bunch right now and that's a pretty positive because destined to be and yeah relatively.
But I do think -- Outlook I'll disagree a little bit I mean I was there in Wisconsin to watching some of those demonstrations in Madison when Scott Walker tried to cut those battle that's I mean he had to have 25 security guards around him everywhere he -- So I don't think we're that far away this country so splintered on how to deal with this debt crisis that we have.
I you know I do think that Occupy Wall Street movement could turn you know somewhat violent.
While he I mean on the debt print your right is about what is the yield on the bond what is the willingness of people to finance our debt as opposed to you.
What is our debt to GDP ratio I mean that's the argument that's normally maiden and you do seem to buy back.
Yeah and I also think like I'm actually kind of bullish on the US economy.
I think we could see really going to be pretty rapid rates of growth in the next couple years.
If we get some of these -- problem solve which I think it's coming I think we're gonna see Dutch reform I think we're gonna see entitlement reform in this country.
And you know what I I given how bad this recovery has been so far Melissa.
You know we're still we're still five million jobs sort of -- were work.
Five years ago and you get this economy moving again that debt to GDP ratio -- that's the good news in the story that's not reported he got to grow the GDP which is didn't enumerate our and then they're gonna get in the denominator -- you're gonna see that debt to GDP ratio.
All you need growth and you need spending cuts while you think the political will -- out -- it to really right I -- cats growing.
I mean I think why -- why should -- like I think the American people the vast majority of us are willing to make these decisions about you know what are we gonna do about the future -- -- Social Security the one thing that we all as Americans update grapple wet that we don't talk about about Melissa and maybe this is the subject of another conversation between the two of us.
There's eighty million baby boomers that -- what -- in the next twenty years you just do the math there is no way these programs like matters -- security twenty years ago from now are gonna look like what they look like.
Not yet they just cannot you know not mathematically -- exactly right he Mort thank you so much -- was a pleasure.
-- game of the season so the question of the -- do you think the US could ever have riots over austerity measures like Greece and Spain that's that's Stephen.
