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Mesirow Financial Deputy Chief Economist Adolfo Laurenti on concerns over the U.S.’s rising debt and looming fiscal cliff.
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Eighteenth time Greece claims to be moving towards fiscal austerity but nobody really seems to believe -- Just like nobody really seems to believe that the folks inside the beltway can work out -- fiscally responsible deal.
So is there that much difference between us -- that wars -- just a matter time.
Before everybody goes bankrupt and all -- more -- is the deputy chief economist at metro financial.
And he joins us now great to see you again Adolfo thanks very much for coming it's a -- -- the noon and how how long before we end up like Greece.
Well hopefully we're not -- and we we did not end up the data but not for lack of trying that would like to stay.
-- -- in if you are okay the little is that.
We got asked you need me call and put the -- -- positional local that we day European companies.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- How rapid even now what that this increased over the last that -- yes.
That he submitted Ito to find com forty.
Well you know -- one thing that can fit eat up deficits literally is growth if you have significant growth.
The country will churn war you that you get more revenue for the private sector and the public sector in the deficit can come down.
The problem is our growth at best is 2% -- folks like David mall past.
The economist says the actual growth in private -- blood.
Is just one point 3% so the lower the growth we have the worst the deficit becomes.
And that's the way they think to get -- -- freaky because in many people are would argue that there.
In order to -- should -- if he's -- about less -- you need to to raise it taxis.
But that's bowl an awful lot of -- -- UN I know you're here from George Mason University you have James Buchanan wonderful economists there.
You and I know that if you raise taxes too much you're gonna discourage economic activity in the private sector you may balance the books but end up killing the economy.
It's not working you look at it would open look at Greece and look at for affidavit to ride the rising taxis again and again.
That's not to do away.
They waved to us -- -- these two.
Quarterly same people that -- and -- he you know he's not what's heat wave shown again -- very concern about what he's got positional we needed to increase our read analyst.
But not by raising taxis probably -- did best in ways that through -- but he ends -- He's got to reform of the taxation C Stanley that Kennedy -- -- and -- And -- get the lead of mainly in Opel to that would be paying for -- Mandela don't -- he's big on that wrong.
But that's the best way to achieve that they do well -- all increasing the role and reducing if he's getting not a total.
They're listening to your watch I know the folks there nauert that was reviewed as is the moveon.org folks -- meeting with the present for.
I don't know exactly why but they are today but think of this Spain's value added tax was raised to 21%.
In September.
Italy's that the value added tax is scheduled go up to 22%.
In July 2013 and Greece the one that can least afford it they're bad is going up to 23% as well also.
I don't -- looks like you to write off Europe based on this.
I think that you want to do we be the impact of the -- -- -- vaccine crazies.
Today we increased attacks invasion because some more and all of our people are we that that.
Eighties and people who employ the pain taxis and find new bulls are just -- -- -- And that would be very damaging because -- daylong tour meant that we'd be.
-- major problem not just for -- -- but also for.
Improve being.
We have seen some progress in Greece about these -- a long way to go.
I think you're exactly right we're gonna have more of a black market economy which of course Italy and and Greece already have they're just gonna have more of it adult Paula -- and as a -- financial deputy chief economist Adolfo you're welcome back any time thanks for being here appreciate it.
Thank you always a pleasure thanks well coming up.
