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Former Clinton advisor Simon Rosenberg on the president’s plan to cut spending and reduce the deficit.
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Points -- some speculation about -- will a second Obama told me in fact economic policy.
Clearly he has the leverage to push through higher taxes and I personally think that if you look at his own plan -- gonna get a lot more debt.
So is that the big deal in a second -- on economically more taxes more debt.
Let's bring in Simon Rosenberg a former advisor to think Clinton a frequent guest on the Fox News Channel but you and -- Simon have never responded that -- happily.
It's good to be here but if you get Greg.
Now that.
I do think ought to make -- case that a second Obama -- means that he will get his way and tax the rich.
I'm not I don't think you'll dispute that William.
No -- and how much of a tax increase on the rich Willis -- But I think all these things are gonna have to be negotiated with the Democrats in the senate and John banners team in the house I don't think he has that.
Power to wave his magic wand but he's been.
Very clear about his economic plans going all about 2007 let's say.
It's a balanced approach -- that pays down on the deficit over time.
It raises taxes on wealthy people believes money to make the needed investments in things like education infrastructure and create growth.
Now how about spending cuts I think they will be included in a package deal but -- -- this is my opinion.
Any spending cuts I think it would take place YE in the distant future there will be promises of cuts way down that not immediate cuts so you would get immediate tax increases and distant spending cuts what are you -- I don't I would be surprised that were the case remember the president in the debt ceiling deal last year.
Agreed to cut a trillion dollars over ten years and spending -- already happened.
Mitt Romney attacked the president for cutting 716.
Billion dollars out of Medicare remember.
The only person -- reformed and entitlement program America is Barack Obama those -- -- let me get clinical and we're gonna -- yogurt -- they weren't -- -- -- -- how -- -- and others to trillion dollars was a hundred billion dollars a year starting immediately.
Over ten years that's not true there -- out years and on the on the Medicare think it was we still -- mean.
Tens of millions of dollars of as a run against the president for cutting Medicare by 716.
Billion -- -- he's already proven.
He's willing to take spending cuts in order to cut the deficit down and I would argue that his plan for deficit reduction was much more realistic than anything that Mitt Romney.
Proposed over this last campaign so I think there's a lot of and I think a lot of room to work with and the Democrats are gonna insist on defense cuts.
Something the Republicans don't want and I think that's going to be an area of okay contention over the arguments that.
OK so defense cuts for sure.
Tax increases for sure a wobble -- before Charles Johnston on this his head about to explode by the way that's okay if you look at this -- no it's not.
-- if you look at the office of management of budgets.
That look at the presence -- an economic plan.
Says we will have twenty trillion dollars in total debt in the year 2060.
Another was an extra trillion dollars each and every yeah you're not gonna contest the OMB's own figures now -- you.
No but I also think that that's unacceptable the president said last night.
That more has to be done to reduce the deficit.
-- while also making sure that the economy is -- remember the one thing we have now that we didn't have.
Is the economy is growing right there's enormously positive economic signs consumer confidence is at a thirty year high in some polls -- oldest housing market it'll always.
How talkative he's always positive and or its.
And there's an -- that and that and that and that we see in the housing market finally -- housing values and how the starting to ignore what effect.
What is figured Simon I'm gonna let -- of equipment second -- cannot say.
But the signs all enormously positive Charles.
Yeah you know as a consumer I mean he's -- a -- -- you want you -- have to -- didn't have to keep campaigning one.
-- -- it's not enormous this morning the jobs number the other job openings number came out at a five month low the GDP at 2% probably be revised the less than 2% was not a lot about this here's the thing though.
What what is compromise saying we want defense cuts -- to tax people small business owners where where's the goodies work.
Being dipped 48 and a half percent of the population that doesn't want this.
Where were they get something out of the deal.
Look there are.
Many ways that we can reduce the deficit there are three things though that we have to do to make just based on math.
To reduce the deficit over the next ten years we're gonna have to reform Medicare.
We have to cut defense are gonna have to raise revenue if we don't do all three of those things but I think we're not gonna let -- know -- seconds -- a charge everyone says that but what happens is.
You you -- -- Medicare on a program that kicks in twenty years of now but we cut defense spending tomorrow I mean people know that game -- been you know there's been tried and you know what a couple of the Republican presidents felt that I don't think that this house is gonna go forward.
What we'll say I mean I think that the Democrats have shown that they're willing to do the three hard things that are needed.
To reduce the deficit the Republicans have shown they're unwilling to do any of the three -- things that are needed to reduce the deficit and look I work for Bill Clinton right when we came into.
The White House we had huge deficits we turn them into surpluses George Bush turns.
Huge surpluses into used deficits.
And the Democrats it's -- the Democrats have been the well you know what I didn't already this -- -- we think I think you're gonna -- mark you're gonna say progress made on this in the next -- in the next up plus I have done.
Stock market.
And I don't mind the market down 250 points as we now face the reality that we face the fiscal -- at the end of this year.
What is your best guess -- the markets are interpreting bad news lies ahead what is your forecast.
Well what's interesting about the fiscal cliff is that it's asked actually I think -- named its fiscal salvation right I mean it is say.
It reduces the deficit by huge numbers but it's an economically it's bad for the economy right it could pushes back.
Into recession and so I think I think that the thing that we've got -- I think the two parties have the ability in the next six months and another that's gonna happen in the next six weeks.
To find an interim step that -- this over.
While they try to negotiate a bigger deal I hope let's hope that.
-- come back here in April or may right we're celebrating a grand bargain between the two parties where we've made substantial progress in reducing the deficit.
While make all the needed investments to grow the economy generally in the -- -- -- -- We've result -- agreement -- taxes will go up in the debt will go up in the spending will be cut at some point I think is that that's a partial agreement that's on enough progress.
I don't by the -- the debt is 20% lower this year than it was last year I don't agree that there's going to be.
No and dead in the way that you're describing OMB figures I'm not is is not my president is voters that lower this year at a little under questioning god or sixty getting -- -- -- getting better Stewart it's getting better.
Oh and big a trillion that you're talking about the deficit I'm talk about the accumulated debt and twenty trillion in 2016.
Can.
Saw that it was thought Thomas is again thanks very -- thank.
