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Wall Street Journal’s Steve Moore, First Trust Advisors Chief Economist Brian Wesbury and New Democratic Network President Simon Rosenberg on what i...
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Economy is bad well -- that's the African nation of Zimbabwe just announced that after paying the latest round of government salaries.
-- only have 217 dollars left in the bank seriously.
Remember this is the same country that was forced to -- the 100 trillion dollar bill before hyper inflation ultimately collapsed their currency.
Could ever -- Carrey one of these around and are left talking.
And are now let's bring our power battle back to you want to Wall Street general Brian Wesbury from first trust advisors and Simon Rosenberg.
A -- new democratic -- -- -- just start with you.
Because we went to you last last time it seems only fair do you have a hundred trillion dollar bill are you ready for this to happen here in the US.
-- -- -- -- drive a hundred dollar bill let's but you know look we.
There's a lot of work to be done to get our -- -- budget in better shape and I think one of the most important things to me about the coming debate is that.
We don't have to do everything in one year by him and I think there's sort of expectation there's going to be -- grand bargain.
All of our problems are going to be solved I don't think that's gonna happen I think we could see this getting resolved over the next three or four years pieces of -- getting done because remember.
We actually when -- did when Bill Clinton left office in 2001 we were headed towards eliminating the deficit altogether and then a future congress -- unlocked and -- I think also because and you know well because the economy was growing so well I -- -- -- really good Genesis of this segment was that the economy no matter how you slice it.
He is not growing so well Steve Moore had we get the economy back on track.
I mean if Pete Peterson foundation came out with a report saying the way we're going right now.
We are on track to have GDP ratio of 200%.
Our our debt to GDP ratio would be -- -- percent by twenty yeah.
I think -- not -- not much more -- Growth clock and I am adapt -- I mean the truth is.
You know -- these really low interest rates right now you know we were if we're grown at three or 45%.
-- -- the -- wouldn't be nearly the burden that it has sent.
The only thing that I really worry about the reason the only reason the debt keeps me up at night at all -- is.
What happens -- first interest rates start to rise if there's an interest rate move 200 basis point you know that blows another two trillion dollar hole -- the -- and it gradually.
Chip Brian Wesbury had a we get the economy growing again I mean that is that it has been that question of the hour for about four years.
Yeah well I I've been answering it for four years cut.
The size of government the reason the economy boomed in the late 1990s.
Was because we had great new technologies the PC in the Internet.
But government was only eighteen and a half percent of GDP when Bill Clinton was president.
Today it's 22 and a half percent of GDP the federal government.
It's never been bigger if you take defense out of the budget we have never had a bigger government than we have today.
And the bigger the government is the smaller the private sector has thought this I don't know why I don't why you're gonna doesn't really comprehend growth of the private sector or without a function of the government was whatever size it was in the rest of the economy has -- so big because of attacked by them.
That's what ignorant government really well there are -- well there were we we caught the size of government under Reagan.
And under Clinton not not actually cut dollar spending but we slowed its growth we had we had welfare reform we had all kinds of great.
Stability in government spending and the government grew and as they are as the economy grew and has the economy grew -- -- analyst -- -- a share.
And that's where we have to get back to signing your Clinton guy he is this -- wanna go back to the Clinton days and does that mean smaller government would you agree -- we'll -- -- -- -- -- a year day Simon let's go right after a hundred days time and I'm ready right.
Now that the two the two biggest drivers of growth of government spending of the defense and Medicare and and I think that we.
You know if we want to get spending under control we're gonna have to tackle health care costs which is what.
Barack Obama's on this inaugural speech last week and we're gonna have to continue to bring down defense and I think if we can do that -- raise a little bit revenue.
I think that we can make significant progress on deficit you know I guess I -- -- civilian control.
Real quick -- in -- is Steve last -- real quick we don't.
Yeah of course of course health -- entitlements -- in the big problem as us ponder whether we create a new -- in dollar helped our data meant that didn't make a lot of sense they've been coming we just can't afford it and that's a big problem when he -- talk about that is for the economy I think obamacare.
Is one of -- I'm now happy no I don't -- there's nothing exculpatory paper coming out I think you'll -- -- all fantastic.
Time now for the few.
