Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Government’s Rising Debt Slowing the Economy Down?

Details

  • Description

    Kenai Capital Management’s Tres Knippa on the outlook for the economy.

  • Duration 2:04
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Well the -- of the date of the day is the new normal economists are predicting a 2.4 percent growth in the US economy and that's -- the entire year.

And voters well they are looking on the bright side in new Fox News poll shows that more than half to think that the worst is yet to come when it comes to the economy.

Joining a company now from Chicago straight in that book trade you know I'm I'm gonna guess that these numbers just don't surprise him.

Of course not.

You know what's odd from the policy making standpoint to me right now is is that when our policy makers make a decision.

And then that policy -- that decision doesn't work you know we keep getting fed by these economists well we just clearly didn't do enough -- it.

We should be learning from what's going on in Japan.

As you increase government debt as you increase your debt to GDP ratio and as you increase taxes it slows your economy down.

A 100% of the time.

Why can we not learn from the mistakes the Japanese economy today.

Is the exact same size that it was in 1991.

Yet they've expanded their government debt.

They've continued to go on our fiscal stimulus plans and it hasn't working when -- we know more -- We know what turned witness doesn't work we've got a political expert on a set Monica what are we gonna learn.

Well it may take another four years and another election cycle before we can get past this look out of the fiscal cliff deal.

We -- on top marginal rates increase we have a spike in higher income -- at least for that the highest earners but those people are also the job creators so -- not has an -- on job creation in this country stifling the economy consumer confidence is down because everybody's taxes went up with a payroll tax -- so now you have this ripple effect.

And folks in Washington and and frankly a lot of Americans are wondering why is a very big very direct cause and effect in economics is a very straight -- signs.

Very straightforward -- that's what you're saying you know what Monica said another four years but to your point -- -- -- not another twenty years because that's exactly what's happened in Japan.

Absolutely and that's exactly what we don't want it just a shame that we seem to have the Japanese playbook and we -- following it we are breaking up but thanks a lot.

Load More