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Jefferies managing director Ward McCarthy and Payden & Rygel economist Jeff Cleveland debate the key to economic growth.
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Third quarter GDP is in the US economy growing by a -- 2% and even less without a 10% rise in federal spending.
Eleven days before the election -- it take to unleash pent up demand.
We -- much debate this now the economy with ward McCarthy Jefferies managing director and Jeff.
Cleveland pagan -- senior economist at Los Angeles thanks for being with us on -- McCarthy let's start with you -- candidate has a better plan to rebuild -- -- -- Think.
Well I think the key to having the economy grow faster is just simply to have -- coherent fiscal policy.
So just -- in the elections behind us I think will be a step in the right direction on that front.
I think there's also an incentive for President Obama to work harder to get a coherent fiscal deal.
If he were to be -- reelected.
And what I think is most encouraging from a possibility of Beirut Romney.
Ryan pairing is that we can get some significant tax reform.
So either way I think that we will get the benefit.
And but it really depends on what they do after the new year.
Jeff Cleveland.
You -- like I've talked about we need certainty.
But if I'm certain that the next administration will raise my income taxes raise my capital gains taxes continue to spend lots of government money that's not a great certainty that's gonna help me -- it.
No no -- not get Dennis it actually I think the biggest problem is there's the miss.
If we get the right lady or the right gentlemen in office that they can fix everything.
And I think that's what that the problem here is.
The economy is not like a car that you take down your mechanic Dennis you plug -- in.
It's tell you what's wrong to get it right fixed and everything is fine economy is more like.
Your garden if you have one Dennis and does some things you can do to help Foster that -- and and there are some things he did -- to -- it and I think right now we're doing more things that hamper that we are to encourage growth OK and I do I do think it's it's you get tied into.
Not necessarily taxes per say but uncertainty about where taxes will be -- a lot of regulations will be.
All right said Jeff Davis on a -- like Peter Sellers in being there talk about the garden ward McCarthy get the president can't come along and fix everything.
Can the president heart they've had Obama's policies helped or hurt.
The economic recovery.
Well I just think that the and transient in general in Washington.
And Alaska and the lack of a coherent fiscal policy has.
Really hurt the economy he conceded a number of ways surveys of small business say the biggest impediment to their business that taxes and governments.
Government regulation.
That's what -- they are the primary source of our payroll growth and that's why that slowed down.
And in this morning's GDP numbers.
Investment in equipment and software was flat.
Coming into this quarter we had seen average growth of about 10%.
And it just means that the -- certainty that Washington is creating has made it almost impossible for businesses to make intelligent investment decisions so that are investing in and.
All right Jeff Cleveland stated boldly has Obama's policies have they helped or hurt the recovery.
Heightened uncertainty has harmed the recoveries are going.
The uncertainty has over the Obama policies politely ask nothing Jeff.
This fiscal cliff we keep hearing about to be so awful and horrible.
Can't we just take up bad as investors that -- politician that will -- to work that out and we won't go over it.
You know that is I think the real risk -- they do work something out and they kicked the can down the road is as professor John Taylor said in the previous segment.
And it's that short term is -- -- it -- -- real problem and you're from now you and I'll be having this same discussion and we talk about the next fiscal cliff and I think that's the real problem here.
So I wants a longer term.
Decisions made on the rules of the game taxes up -- down Harry wanna do about.
Get those.
Longer term -- type rules out there.
So that entrepreneurs and capitalist okay play in the sandbox all right although overall I think -- -- with taxes down is better than -- for a thank you very much ward McCarthy and Jerry.
