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Univ. of Chicago Professor Charles Lipson, Euro Pacific Capital’s Peter Schiff and Steel Vine Investments CEO Spencer Patton on the impact on the go...
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-- -- -- But I want to move on me me I'm looking at this all wrong.
And that what we should do is really bite the bullet and just really tax people and pay down the debt once -- in fact we crunch the numbers.
If we just grit our teeth.
And we raise taxes once and probably tax everyone 40% just everyone no exemptions nothing just 40%.
We could wipe out the debt in three years what do you think guys good idea Peter -- -- chads now.
Did you did you check your math did -- decades it is funding trillion that and that -- -- sixty you know you don't pay opposite me.
So you can't say that despite tax everybody -- -- -- -- it's possible to look at every night -- get it over went.
Net even if you raise taxes to a 100% we couldn't pay it off that's the problem we're gonna default on is that.
The only question is how we gonna do it are we did do it honestly or we're gonna do it through inflation but isn't it it is impossible to pay the debt off.
And when you look at the unfunded liabilities that dwarf.
The the the official debt it would we can't we can't tax our way out of this problem where -- we have to take a mean look to government spending.
Including entitlement to.
Maybe there isn't saying yet now I'd been way off in the coming spending being all the time the press -- it.
Tax the hell out of everybody get overweight not tighten our belt light years from now we could -- doughnut -- thing.
Hot.
Week let's don't care if you nobody out of this knowledge here's the -- big bear a couple of problems.
-- -- the first problem is that basically.
Why.
President Obama.
And the -- spending Democrats would really like to do.
Is ultimately raise the portion.
Of the government in our economy from its traditional 20% up to about 25%.
And they've been gradually doing there and the 08 and no amount of taxes that you and -- on.
Would pay for it -- in addition it would slow economic growth in the second problem.
Is it nobody.
All on the spending side is tackling the the big drivers of the debt.
Which are these unfunded liabilities in the only way you get it -- is by structural changes you have to raise very gradually.
Retirement age and the -- but you do not hear any Democrats talking about it in there and Powell's.
Does the math and look at what is it gradually we got to do it right now we got to cut the benefits to the people who are currently receiving them we can't afford up.
Spencer let me -- back in their -- why does the math not work why is this problem getting away with that's getting away from us we can't just raise taxes on everybody.
And just paid for this problem because that's what it that's -- make it seem like it washed and we all just -- a little bit more we could solve this problem.
Yeah and that's really not the answer -- spending -- -- clearly the problem what I would so love to see as a pro growth policy if you could have US GDP be and a three or 4% range rather than in the one and a half hopefully -- range.
You'd have a great deal more governor revenue that if you can finally tackle a little bit of the entitlements and take those down and increase and some retirement ages.
That's how you tackle this debt if you get zero that are -- 4% this is possible and so give us pro growth policies give a free market get red of the regulations get rid of the carbon tax the back.
Lower taxes and then you -- -- meanwhile import taxes coming.
-- -- -- -- Yeah taxes -- coming.
It and we would have to deal in order to paper any of this.
Why does it not work is it because the debt is growing so fast it's getting away from us is it because you can only tax to a certain percent and then people stop working.
And what what is the fundamental.
Reason why this would not work.
While both.
The -- problem is government is promising a bunch of free stop that -- President Obama got elected he promised -- stopped a lot of people and that the fact of the matter is it's not free it's very expensive.
And the middle class is gonna have to pay for but we simply can't afford.
The amount of government that we've been promised and you've got the government trying to run these giant Ponzi schemes like Social Security it's not about -- with it.
It can't work it is it is impossible to reform these programs in a way that is we're gonna work we have to acknowledge that and we're never gonna get the kind of economic growth you're talking about 45% a year rate in lest we let the economy restructure that means the Fed has to stop printing money they have -- let interest rates go -- because they're much too -- to encourage savings and investment and we have to allow this economy to restructure that means a lot of people have to lose a lot of money.
Banks have got to fail real estate prices have to come down people up to stop spending so they can start saving so we can have the capital investment needed to grow real economy.
I had to get depressed none of those things are gonna happen but with that.
I'm gonna let -- -- power -- -- thank you so much.
