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Will GDP Figures Impact Election?

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    Economist Peter Morici on the impact of the latest GDP numbers.

  • Duration 4:19
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Fallout and with the presidential election less than two weeks away the outcome could have a big impact.

On our economy on the world and also at 8:30 AM eastern time we're going to get the latest reading the first reading.

On how fast our economy grew in the third quarter less than 2%.

Nothing to cheer.

Is it Peter -- C is here to -- -- our.

And the university of an airline -- where's the growth and -- -- and it will it could it could possibly be a little bit better than people are expecting.

All it could absolutely be better at this point Ronald Reagan had the economy growing at better than 6%.

Even though he was at a deeper hole in mr.

Obama when he started out double digit inflation double digit interest rates and unemployment peaked at nearly 11%.

Much tougher than mr.

Obama's had and he got a much better job because frankly.

He spent this stimulus dollars in tax cuts and put it up to the private sector -- and invest in bogus electric trains and Solyndra.

What -- we could argue help.

Because if you -- you're right unemployment peaked at a slightly higher level.

Back in in the early 1980s and we had a double digit inflation and we had.

Double digit interest rates however we had an entire financial system that basically.

Collapse in on itself and would have that the government had bailed out the banks.

So but to that point.

And how much do you think that this non bar on with -- quarter.

Will impact what people do in less than two weeks on Election Day because if people think the economy is lousy they -- no -- they -- -- -- -- -- Well I think that it will only have a consequence for the campaign.

If it's dramatically outside of expectations which often happens -- this is the flash report -- -- break preliminary ask them that we get.

Two more estimates late you know in successive months.

And the flash estimate could come at a 3% even though the final number comes in at less than -- -- coveted zero.

If it came in very low.

Now I think it would help mr.

Romney if it came as somewhat higher.

It would take a day or two out of the election as you know the president -- focus on that in the news cycle which is not good for mr.

Romney.

Because frankly he is like a quarterback behind in the in the late in the fourth border and any needs all the time he's got.

And even if he -- -- in November mr.

Romney he has very very tough situation to face.

In terms our economy because Peter you'll admit it there are no easy fixes you can talk about tax reform and that would ultimately.

Benefit the economy but is not gonna be a quick solution by any stretch of the imagination.

-- be clamoring for payroll tax -- that -- payroll tax cut.

To be extended and we can't afford that other.

Well the quick fixes that that that conservatives like aren't very quick at all as you point -- for example tax reform.

Even on a fast track is gonna tickle -- 2013 to.

Accomplished in the be no consequence -- put a Bandana around the bush tax cuts but still there's a lot of Obama cuts that will probably you know go away.

And is so that's not not an answer.

The real the real solution lies in what mr.

Romney talks about a lot and that is doing something about China and -- -- he could move on that pretty quickly unilaterally.

Then wait until the plane -- would we not be.

Yeah -- -- right we didn't do a trade war hey we know an 8% year debt why don't we just sell some of that how do you like 8% interest rates on -- transfer it.

Well the point is is that that if they if based stop buying our debt.

They would be stopped but a lot of dollars those dollars would go out of circulation and affected turn around by Baghdad so that that that threat isn't -- his biggest and as you think.

The other big area though is domestic oil and gas get that going and it's a lot of concrete and steel.

And other services that that could could help really jumpstart the economy some of that can be done by executive order changes -- the Department of Energy.

But a lot of it requires congressional approval.

And he's still gonna have Democrats in the senate to deal with a lot would depend on what kind of made eighty had to -- get 51% of the vote.

Haters get to say and let's hope for a good number of we all want the economy be better gasoline -- big oil is a five dollars a barrel.

And cheer about that going into the weekend Peter thank you is great say is always -- -- reason -- care Kennedy.

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