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Schoen: We Will Get Inadequate Deal on Fiscal Cliff

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    Political strategist Doug Schoen on the future of the U.S. economy.

  • Duration 3:59
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Tim got that he is on Capitol Hill right now he's meeting with congressional leaders about the fiscal place.

Isn't this what President Obama should be doing -- said he's going on the campaign trail still trying to convince people about his tax the rich plan he won the election.

Who else does -- need to convince.

Dog show -- still a Democrat mr.

Mack's political strategist is with us now why is this -- why why is Timothy.

Talking to congressional leaders the politicians.

And the president's campaign two reasons first were not close to.

Would deal yet and the president presumably will come in at that point but second -- more important Stewart.

The president has shown no inclination no facility.

Or no ability to negotiate deals in fact the opposite and bottom line I think with the terms of the deal still as you were saying.

With Caroline Charles sketchy.

There is not a willingness to take the risk of bringing the president in.

Here's what I think is gonna happen.

If I'm right to what you think for I think that the president will insist on tax increases on the rich whether -- -- of deductions won't higher tax -- I don't know but more tax from the rich.

Right up front get that immediately he will delay any entitlement reform or spending cuts just promised them get to it late.

And ignore the debt what you think.

I think that's exactly right at the grip.

We're gonna get is some compromise on -- higher rates are limiting deductions.

And I think we're gonna get a quote framework for limiting.

The entitlements and doing entitlement reform but not specificity.

Now not means testing but with the.

We've done this before -- -- but that -- Reagan cut tax rates -- and the congress promised to cut spending so to reduce the deficit racked up spending -- never happened but why would anyone agreed to that at least on the Republican side because it takes all -- negotiating power on the table -- if they agree to raise the rates and don't get some sort of entitlement cuts upfront.

They're not gonna get those in the future and I didn't I -- -- -- -- -- get down payment walked in the goes okay down payment that would satisfy -- it -- to -- Carol's question.

The Republicans though it's not a -- answer your question and of the other answers the Republicans as the president said many times lost the election Charles Krauthammer late last night said this about -- leverage the Republicans have.

The leverage is that if we go over the cliff.

No matter who is -- it will ruin president Obama's second Tom because this economy really will go into recession and we'll get a debt downgrade tell you get a debt -- downgrade to that would really well there's actually something more serious.

Which is an -- a ration of our military and bottom line.

We are still and one nation.

The Charles under god and we do not need to make imprudent cuts in defense for the sake of political game or.

It's tactical benefits so I.

I think -- -- and I got to tell -- that I -- I'm surprised you -- you didn't really answer the question but I still think that the public will blame Republicans -- -- -- yes yes -- -- -- I don't -- have absolutely -- -- that -- that means that the Republicans don't have a lot of leverage I think they have less -- Charles still leverage -- -- set their leverage -- it goes back to -- core beliefs and this is where the game of politics you have to draw a line in the sand and by the -- whoever's -- representing the Republicans were elected by you know citizens so.

That that they lost the presidency by the -- sitting at the table that was your election.

So here's the bottom line in the did -- have to really go to the core principles that say we cannot win the public relations war but can we save the country.

Our hope they do all right last question.

Do you think we get a deal of any -- Story that we're gonna get a deal that -- that you're describing having it could be inadequate I think we are gonna have a slow down next here Erskine Bowles said we're probably gonna go over the cliff.

And potentially have a recession that's where I am to any deal I think the market goes up that's my I think short term at my thoughts on -- longer term I'm worried Stewart.

Pipes don't -- always a pleasure thanks very -- -- thank you wanna go back.

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