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FNC contributor Doug Schoen gives his take on what happens if the U.S. government falls off the fiscal cliff.
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Exactly the opposite -- -- are able to GOP is in disarray I think that's fair to say.
They missed opportunity to not raise tax rates now prisoner -- -- is ready to fall off the cliff to bring in more money for the government joining us now is Doug Schoen.
-- the first question -- ask you directly because you hear a lot of this off the cliff stuff specifically.
What would happen what would happen to the private sector what would happen to the government if we go off -- the fiscal cliff.
-- well it's anyone's guess but I think we're gonna see.
Economic activity slowed down David I think we're gonna see with a -- On all of us that people contract.
There are economic activity and given the CBO estimated if we go into a recession I think it'll be cataclysmic to the American economy.
And and specifically with the government we heard a lot I remember during that the Clinton years wind we have that that debt ceiling thing that we went off of and that.
Big government shut that what we see a shot down in certain government agencies if we go off the cliff.
I'm not sure we're gonna see shut down -- we -- certainly good to see.
A lot less economic activity particularly in the military sector I think defense procurement will ground to a halt and that will have again and impact.
On the economy and it'll be deleterious -- Now let's talk about the politics of some of this.
-- Nancy Pelosi -- I very rarely agree with Nancy Pelosi Doug as you well know.
But she says something that she -- -- that I kind of agree which was talking about the republic she was defending her comment.
Last may that taxes should only go up on people earning a million dollars she's come down out of the president's level of 40000.
But she said she counterattack -- she often does she said Republicans.
Have already become a little bit pregnant.
On their tax pledge that they're never going to ever raise tax rates.
And I would have to agree with -- once once Boehner went off his cliff if you will on his pledge not to raise tax rates believing it's you just suggested that if you raise tax rates you're probably the slowdown in economic growth once they went off that cliff.
Katy bar the door what do you think.
Well I I agree with both you and Nancy Pelosi that bottom line.
The Republicans.
Fell into Obama's -- They went for a tax increase David -- what they didn't do was outline a strategy for economic growth for -- job creation for stimulating the economy.
Bottom line Obama's talking redistribution.
The Republicans are just getting parry -- and thrusted by a president who has -- -- a political candidate Doug.
I when you say the Republicans think about with a plan to stimulate the kind of growth Republicans don't believe the government spending does stimulate the -- -- just heard that it certainly hasn't stimulated wind power so they what do you mean when you say Republicans should have come out what kind of plan could they have from our very simple no would have stimulated the economy.
-- David what you've been talking about for years which is a strategy using the tax system.
To stimulate economic activity through a series of lower tax initiatives.
That would offer the prospect for growth are like Jack Kemp.
Right so tax cuts stimulating kind of tax rate cuts tax rate cuts -- -- tax pregnant right.
But he appears no strategy who lives -- -- -- -- but keeping the -- rates for the middle class that -- the middle class at the GOP victory there.
And -- of the got financing pleasant getting a literary like her heavenly pregnant what is she talking about.
I mean what you would be GOP's fearful love that this giving -- -- -- pregnant as she says with their tax rate.
Being lowered -- -- defeat giving birth to an electoral defeat if they go along with these tax hikes.
That the White House wants and I -- I gotta take -- we have still a debt ceiling fight coming -- us in March.
Is it GOP right to stand their credits say no tax hikes we want to help everybody.
And we are not -- -- exchange these poker chips for.
In the debt ceiling fight saying hey we're gonna get in -- -- from new White House this is about the little guy on the street and all tax bracket.
You know the world is that the Republicans had as coherent -- position as you do.
Bottom line take three Republicans you get for positions.
Bottom line there's no Republican strategy on anything either on taxes and spending entitlement reform and certainly not the debt ceiling.
Which is why David was right when he began his comments by saying that the Republicans are in bad shape.
And bottom line is a matter of politics the Republicans are losing more important the American people are losing even more.
Doug Adam Shapiro an -- -- but a conspiracy fears we believe that the president does wanna go over the fiscal cliff and and for one particular reason.
You look at the spending that has taken place during his administration you have talked about this we had initially had and we went from 2008 to 2009 we saw this big jump.
In spending because of the stimulus plan that was an 800 billion dollar plan.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Then just taxing the rich can bring in that's why he might wanna go over the fiscal cliff what do you think.
Well I I certainly don't think he's gonna be crying.
Crocodile tears if we go over.
Bottom line I think it's even more based politics favorite I think he thinks he wins the fight.
If we go over the -- -- the Republicans are blamed in the and the Republicans will do business on his terms so you -- you anatomy may well be right.
But bottom line nobody is putting the country first he nor the Republicans has advocated a centrist.
Program that like Bowles Simpson that we can all agree on.
I wasn't I was getting down to their level Doug has been inside the beltway -- sites like he knows how they think Doug thank you very much -- showing David thank you happy holidays to all happy holidays -- you too thanks very much.
