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Former UBS Americas Chairman Robert Wolf argues tax increases along with spending cuts are needed to reduce the deficit.
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Wanna say -- so what's more important in growing the economy.
Or or or or attacks in the economy in other words -- do you think that.
What more pro business pro growth.
Agenda is more ideas like that -- offered up.
Even as an olive branch at this point.
Maybe we can get -- up businesses out there and enough people out there that they would pay regular taxes but we would fill that void that you're talking Giles I'm absolutely for growing the economy it's not and I that war.
You need fiscal responsibility.
In you -- growth -- bulk.
It is not gonna happen over night.
-- right now -- 14%.
Okay of our of our money our money comes from revenues.
25%.
Spending that gap is too big we need to narrow it down where it used to be 3%.
You need revenues up you need spending down both.
Get that out simultaneously because it doesn't feel like their first of all by the -- -- let you gotta -- -- the president got a huge victory right big time tax tax hikes.
Very little spending cuts.
That a distraught dropping hints today -- -- Super -- about -- interest rates to me.
You may not get a lot of -- the public not gonna fight against that but a lot of times we get these sort of things and we hear about these big problem you know projects to go up that -- rich.
But we also end up going after the and that's over it's because the payroll tax hike I think it's gonna end up being devastated so far the tea leaves don't read too well for that.
But he had both and other what's what's the priority of if you weren't sure if you could really get the president -- -- one uncertain about this opportunity.
I have them often like that so he ever say listen.
How can we grow the economy first so like planting a -- and letting its route before we picked him but to -- from it won't.
Few different questions one we have to -- both simultaneously highlight the idea of spending cuts being about two and a half to one.
Vs revenues that would have been an -- about four point two trillion and actually it's a plan that the president put on the table.
Okay but then Boehner came out with his proposal be that got no votes -- so that's one the second part is we -- talk about wealth.
I believe infrastructure is the key to this country's growth.
It's the greatest -- of GDP growth for every dollar spent it's a one point six mauled by and by the way.
And engineers in this country -- our infrastructure G rating there are things to do that has always been bipartisan nature.
And yet the president.
In the -- infamous clip that's shown bought off and sit there a lot of these shovel ready jobs these sort of -- you're talking about they weren't around number one but number two that I didn't I think more importantly though.
Don't they often turn out to be very temporary projects that it -- the longevity in other words if we had five new bridges connecting New Jersey to Manhattan.
-- that you know beyond the building those bridges were with the jobs manifest from.
I mean we should be -- I don't.
View infrastructure is just the highways and bridges okay its public private partnership -- next generation air traffic control.
A national electric grid in this country water treatment centers rights away into rural areas so when I think of infrastructure.
I think much more brought -- then what we think of infrastructure with potholes and things like that should the government be in the business.
Of the trying to invent things trying to discover things in other words the president -- want it sounds more more every time we speak that.
You know like you know OK you know -- You know we got -- in a microwave so let's go on -- -- been little facetious but you know let's let's let the government get involved and if I.
Don't you think the private sector is is involved deep enough.
Don't you think energy it's a trillion dollar industry I think whoever gets all the that's puzzle of what replaces fossil fuel that they'll -- -- -- -- and we still.
Why does the government keep edging into areas that it feels like -- crowding out the natural.
Areas with a stuff when normally sprout from anyway well first of all I absolutely think the private sector bonds this country -- -- the growth pension.
I think the president believes that as well but that doesn't mean there's no role for government okay we have to find the right balance.
Unfortunately in this recent recession.
We -- been a bit off balance.
But OK you're right but has that have -- been off balance because the government -- elbowed his way into areas where normally -- now do you think if you think now but I just think anything wrong with the president's agenda I think realistically.
This is not a great recovery.
Well we we can debate the recovery but when you say.
That has the government been too involved let's just take arcane sandy and -- you don't think it was good that the government was involved.
I would like I would have preferred distant states come I have my them not to have to send billions of dollars and days the only debate Ford back I don't know but that's that that would have been married as they talking about how to handle that's not talk about that I'm talking about -- did the federal government saying we're gonna take over lending to the point where -- the only ones who can lend money and housing industry.
We're the only -- -- money and student loans are ultimately.
These become ticking time -- that taxpayers are wrote that the -- I'm totally with you that that we need to get the private sector.
Back into the housing market from a lending perspective and by the like.
I'm sure the government would like to get the -- lot of that as well.
Okay.
Explain to me what you think the best transition is from 92%.
Mortgages being backed by government to moving to a private sector.
I'm with yeah it's tough all the way why am which is why that's a cautionary itself why the government shouldn't push the private sector out of other things because of pop up to come back -- but I'm -- yeah but but.
What do you see when you're talking with the president is there any thing though that you think he's doing wrong that you like and -- -- I think right now three -- -- -- very polarizing world that we have to get bipartisan back and I think it's both sides come into the table more often.
And I think we need it and it -- with the president I actually think the four point two trillion dollar deal he put on the table which was 2.3 one.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Yep so I'm excited you know it's very humbling -- -- the start up -- tell you right now I'm making calls every day that clients and and hiring people.
We're looking forward to being an advisory from -- what I think is some expert fields so we of one that we recently announced was economic intelligence.
And the intersection between the economy and public policy.
Run by Austan Goolsbee who I know has been on this show -- -- And now we're very excited about having Austin on and we're gonna make a bunch of announcements next week on other aspects that we're -- -- -- -- -- Hopefully get the private sector back in the table we -- the private sector in these.
Thanks so I would appreciate it appreciate having aren't having -- having me on thankful thank you -- that it.
