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Former Reagan Budget Director David Stockman on the impact of government policies on the U.S. economy.
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Welcome everybody I'm Charles -- -- Neil Cavuto.
While regular was born 102 years ago today and -- boy things have changed since then.
Now back then they contacted didn't -- -- today Democrats well they're pushing to raise -- operate even more to make the government even bigger.
President Reagan's budget director David Stockman says of -- were alive today.
He'd be horrified at both parties is the author of the upcoming -- and information.
The corruption of capitalism in America and he joins me for an exit the -- chat.
David thanks a lot for your time tonight.
-- -- lately over the last couple years you have become.
Something of a person who's saying pox on both houses in other words.
And I find it hard to pin you down and you seem to be upset -- angry about almost everything that's going on by everyone involved in the solutions.
-- would be solutions why.
Because I think we've drifted a 180 degrees from where we started in 1981.
Where I think -- Ronald Reagan was trying to taken Steven Melanie and he didn't make much progress and he failed but he had three principles which I think -- salad and important number one sound money.
Number two fiscal rectitude.
Number three liberate the free market can allow prosperity to break out in the private sector.
Where we are today is a 180 degrees and that we hardly have a free market left we bailed out autos we bailed out Wall Street.
Medical education energy they are all heavily impacted in.
Men and manipulated by government.
Fiscal rectitude you can't even mention that word now we we have seventeen trillion of debt it's out of control in both parties are to blame.
And sound money I mean he would be up hall.
To see that kind of reckless wild almost lunatic money printing.
This going on by the Fed today and especially that it was done by Republican appointees.
He thought Greenspan was a solid conservative gold standard.
Our -- and he turned out to be the biggest money printer never occupier and the Federal Reserve and then Republicans appointed Bernanke who's just it out now keynesian.
And he -- monetize.
Trillions of the dad Ronald Reagan was totally opposed to all of that and yet here we are thirty years later.
And this is where it's gone and not only because of the Democrats that's why -- upset because the Republicans.
Have taken us down this path it's as well.
Because.
Ronald Reagan had a workable car and I think at the time he was a question mark you know -- so.
-- what -- -- would his policies would be.
But -- -- think 1 of the central things that has changed over the last thirty years is the inability of Americans to accept any swarm of pain and other -- -- notion that there should always be.
A soft landing delivered by -- whether its monetary policy or fiscal policy because then.
-- Paul Volcker did.
Was tough I mean though the initial first year or so under Ronald Reagan it wasn't easy I -- it was really tell people.
Had to go through a certain amount of pain before they can come on -- the other side.
Filling a lot better.
Yet that's exactly right and their greatest achievement in office that Ronald Reagan had was that he backed Volcker all the way without hesitation.
Even when there is enormous political pressure from the Republicans on the hill from a certain faction of the White House staff that really wanted to actually drawn Volcker out.
And I remember once leader baker -- get your foot off the back of American business but Ronald Reagan's.
Stuck with him.
He said this wild that massive inflation we had in the 1970s.
Was caused by too much money.
Too much of money pretty too much he's -- the Fed it had to be reversed it had to be stopped it would be painfully get from here to there.
But he saw it through and that's the main reason we had a recovery in the mid 1980s because we defeated inflation.
And we allowed the private sector to have at least a few years before we got into the wild money printing of the -- -- -- and so so here.
