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Economist Peter Morici on efforts to reach a deal on the fiscal cliff and cut government spending.
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You in New York doctor Barnes on Capitol Hill on what this to talk more about all of this is Peter -- -- It is an economist of the University of Maryland to joins us often from Washington and that's where he is.
This morning wanna take up the president's offer which is that rejected one point six trillion and in tax hikes and you know.
Everybody says this the first offer and you know maybe the president wants to get back down to one point two trillion of whatever the case may be -- you say not forget about the taxes altogether what's your -- Well -- The additional taxes over the last six years the that the federal deficit that has gone up up over trillion dolls -- aware that virtually all of that is spending.
And only about 360.
Billion was needed for inflation.
The rest where those temporary stimulus measures that became permanent.
You know we just go back to where we were before the financial crisis in terms -- real government spending.
We don't have much of a deficit at all.
What the president -- put on the table is comical.
He has said he wants more taxes but the spending cuts that.
He has he has offered really aren't there among the spending cuts the president does corporate is an additional fifty billion dollars annually.
In stimulus spending.
I thought this exercise was about deficit reduction this is like Alice in Wonderland but you know mr.
Boehner is not doing a very good job.
So -- president.
Why around the country campaigning sent -- -- point OK so these spending cuts are not gonna make a big difference and more than likely let's face it we're probably gonna see higher taxes.
You Saudi GDP report yesterday.
An upward revision but totally -- nonetheless if you consider that it was just about an inventory build which is right -- the economy nobody's buying anything trouble right.
US consumers.
Well absolutely weren't a lot of trouble and it's very -- If you look at the Clinton years and you look at the Reagan years.
Coming out of recessions the economy grew very rapidly at this point mr.
Reagan -- the economy growing at better than 6%.
Mr.
Obama averaging over his entire recovery is about 2.3.
Percent.
Less than one half his real fiscal problem is was written in the Wall Street Journal this morning.
Is he's not getting the economy growing -- -- tax revenues and not enough tax revenues are coming in.
Right -- more growth and that's where the revenues come from is the way that argument.
-- goes up just about how you compared this period to you as you said.
The recession during the Reagan administration or even the ninety's -- -- two terms -- Bill Clinton coming out of that.
The recession in the early ninety's are -- -- really comparable or is it differently you're coming out of -- -- financial crisis as we're as we're doing.
This time.
That that's the big -- that mr.
Obama has picked perpetuated is that he's got.
The most difficult problem that any leader since Moses in the desert -- -- -- compass and he was -- reality that mr.
Obama.
For mr.
Obama.
Unemployment peak of 10% that's pretty bad.
-- -- pretty -- right but for mr.
Reagan a -- at ten point 8% any of the Federal Reserve working against them yet double digit interest rates.
Doubled that you know double digit inflation the economy adjusting to a tripling of oil prices.
Tough -- -- That difference is one invested in the private sector and we know what mr.
Obama is investing it -- want to double down.
On that he wants more taxes and more -- Stimulus spending which really just come down to jobs -- is pals at Harvard who want to basically regulate the private sector and keep it from growing.
Take a page out of Moses.
Book and get this whole thing figured out right university thank you sir that's always higher taxes and no deductions.
-- trouble.
-- they want that's the bottom line are.
