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Former Reagan Chief Economic Advisor Martin Feldstein on the fiscal cliff deal and the debt ceiling.
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And as Ronald Reagan's former top economic advisor -- both sides he's at a far cry from the way is old Boston business.
You know mark I was looking that up I could never envision today we're Ronald Reagan Euro -- would delight and -- Democrats.
Now we know he used to say that he started life as a Democrat.
He was.
You you know ahead.
For the actors' union friend and he liked talk about that to show that he was trying to build -- -- And he was the one who said he wanted to build.
A monument in Washington for FDR.
And nobody had done it before so you know he was the guy really believed in prime being bipartisan and then of course you had.
The Tip O'Neill Ronald Reagan.
Tremendous tax cuts.
Did you think about it they get a lot of their best work in the private residence of the White House -- -- -- over deals that they -- we're ever policy.
-- it's.
But they -- out of work with each other I just let me asking now is.
Democrats and I took what if you were saying.
If this work for the deal work for us we didn't really get any kind of sported when -- rights to cuts then we're on fire -- -- triangular practice to use of -- Clinton term.
And just leave the house is the last -- the last resort for them to look petulant and we.
Look gold.
Well I hope not.
I mean the Republican certainly did lose.
On everything that they said they wanted had that happen.
They got painted in two believing that the public would blame them if we win over the cliff what they have.
I don't know I'm not a pollster.
But I think I argue could -- have been worse I mean it let's say they do go to and they get the blame.
Right now -- poll ratings are pretty low so they would have gone from 12% 8%.
The right.
Now so it.
They could have by I would have thought they would have.
Said well we're not going to go along with the president's.
Half and half tax increase we're gonna -- introduced legislation.
For tax cut for everybody.
And let the Democrats reject that.
So then the Democrats would be in the position of turning down.
The tax bill that came out of -- how's that for whatever reason.
They decided not to do that.
Now Democrats think they have Republicans number going forward.
The president has indicated you're gonna make the debt ceiling.
A hostage to spending issues.
Thank gonna happen on my watch and -- will be on the brink of another couple months went well when the debt ceiling -- -- very dangerous thing to plainly.
So Republicans make a big -- trying to force the issue there.
I don't know how.
I -- how you do it.
Because if you and it's not like this legislation you go over the cliff the economy slides into recession.
With the debt ceiling.
If you don't have -- authority.
What do you do you stop.
Paying bills -- -- the federal government can stop sending checks two years and that -- it hurts the ones who proceeds admitted that.
Possible well in the short run you you know the hospitals don't get reimbursed for their Medicare expenses and -- -- the vice that box that I think Democrats and Republicans that.
They're afraid and Iran's shadow.
So.
What's to compel Democrats -- -- offer serious spending cuts if they think that Republicans are afraid.
And even hinting -- take well I think the thing that helps is that every expert in Washington agrees that the long term entitlements.
I don't know that we can express and several other a lot of American people seem to wit and -- far happier with raising taxes on the -- the what the president says it is.
I'm not going to.
Change Social Security in the context of improving the budget.
I would do it to strengthen Social Security so the rhetoric will move in that direction but that means it has to be truthful.
Well I basically the kind of things that the Republicans talked about a little -- changing the indexing formula or more substance that was repudiated as part of these early so that's right but aiming to revisit but I think because the president said he wasn't prepared to do his part of the budget talks.
That he would do it is part of humanity and had -- easily -- I think so members in his first state of the union.
And in this second.
He talked about the fact that Social Security was non viable way it is needed needed to be changed.
That there were certain things he wouldn't accept he wouldn't except.
Cuts on current beneficiaries know Republican suggests that he wouldn't accept.
Hurting them very needy nobody suggests that but what that left was a lot of rural them.
Two gradually.
Transition from our current system to one -- lower replacement rate so.
You think there there is room for hope here and and that and that the president is more open to addressing spending and he appears.
I hope so I think so he's got the Congressional Black Caucus -- don't -- entitlements you've got.
Eighty some -- other congressmen and women and say -- -- the united Caroline to he's gonna say I want.
More revenue along with the spending cuts I think he has said -- one dollar for dollar match.
That sounds like he's prepared to do spending cuts and generals sounds -- Texas.
Or not necessarily rates and then it's a question -- on whom.
I mean right now we've got with this new legislation.
The top.
2% will pay 50% of all the personal income tax incentives and not a lot more that you could not sustain ahead of that not sustainable.
-- outside thank you.
-- are you very good being --
