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Former CBO Director Douglas Holtz-Eakin on the need to rein in government spending.
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All that and more coming up but first breaking news tonight we're getting some early looks at tonight's State of the Union Address yeah.
In his -- -- the congress the president will say this.
Nothing -- -- -- tonight should increase our deficit by a single dime.
It's not a bigger government we need but -- smarter government that sets priorities and invest in broad based growth.
All this happening in about three hours from now but no matter how is spent Mr.
President spending the spending and the federal government is -- -- -- -- The average length of president Obama's previous addresses -- one -- five minutes and 212 think about it.
The amount of time it takes the national debt to -- up just over a 142.
Million dollars extraction debt.
With more on this -- -- president of the American action forum.
And former CBO director Doug welcome to the show okay first uninsured.
Your reaction to -- comment he's gonna make that he's not gonna get us into any more debt trouble at all do you believe that.
He certainly is going to propose more spending and that must mean he's gonna propose more taxes so.
This'll be tax and spend we we've seen this before.
Well that since President -- -- first state of the union back in 2010.
Federal vets up 34%.
And are good -- economy is growing slowly here debt is growing three times faster than our economy is expanding what do you make of that.
You know at some point the reality is gonna have to set in on the White House and it's economics team that.
The notion you can spend your way into prosperity is just mistaken com.
It's a mystery to me why they can raise 600 billion dollars in taxes in January.
And think that they're either going to have a clean energy spending program that'll solve that problem in February it's just.
Not going to happen it's time to get back to basics put the US on -- stable fiscal path do the kind of spending reforms we need to a tax reform.
And you know allow the private sector some certainty about the future so it can do its job.
You know it's interesting I think this speech tonight may be even more political.
-- the -- he's done in the past I don't know if you heard John Boehner today boy he was on fire he said.
I don't think the president has the guts to do it and by that he means -- -- cut spending he doesn't have the courage take on the liberal side of his own party.
Never hats do you agree.
I think that's exactly right if you look at the federal budget.
The places where our founders thought there should be government activity in national security in basic assertion infrastructure education.
Those parts -- about -- -- being utterly crowded out by the large social welfare legacies of the past.
If the president genuinely want to do a better job and infrastructure do a better job and education.
Do a better job on the kinds of things the -- spot where the federal government's job.
He would take on his left he would do the reforms and he could then actually do the spending -- -- Not raise taxes and not raise the deficit there's no evidence he's ever wanted to do that and -- in the absence of that.
He will leave a legacy of even larger debts -- we he'll leave behind a problem is successful have to -- And our kids in our grandkids and need to be sure this is a problem that has legs in the last a long time the president saying.
Clearly he's going to be addressing new investment.
I think we're talking about more than just spending here I think -- talking about raising taxes again.
Something Boehner today drew a line in the sand on and said taxes are not going up again it seems to two parties at loggerheads again.
It's not the -- -- at loggerheads the American people looked at the fiscal cliff Steele has some way they're -- spending cuts they're not happy about that poll after poll.
If asked is it time to raise more taxes they say no we've done that so this isn't a partisan divide.
This is about the president being out of touch with what the American people recognize which is.
You raise taxes 600 billion dollars -- -- -- seven trillion dollars in new deficits over the next ten years that's not a solution is it just doesn't add up.
There have to be another approach and even his allies in congress the Democrats in the senate in particular are very allergic to notion that more taxes of the solution.
Well -- Pelosi talks about it Harry Reid talks about it.
It's amazing to me I think people have had enough the taxes especially when you drill into obamacare.
But I need -- you want to a slightly different topic and that's executive orders Gene Sperling today.
Defending the president on the use of executive orders here's what he had to say.
So the president is going to do whatever is best for delivering results if he can do that.
Three executive orders or through executive action will do that but a lot of the big things we need to do as a country can really only happen.
If we -- bipartisan cooperate.
Executive orders they're -- -- what do you think.
Again we've seen this -- book if you look back they have stretch the boundaries of what -- the president can and should do.
They overruled the notion of sending out so called warn act notices in advance the sequester.
It was supposed to get left -- they didn't do it.
You look at Obama care they have again again stretch the boundaries of what the law says to deliver benefits on exchanges -- the like.
Look at the EPA look at race of the top where he's basically not bother to reauthorize the No Child Left Behind law and is that done it all by executive order so.
You know there's a place for executive order but the reality is we have mixed -- the United States more often -- we don't.
Real presidents go to the congress and get the work done on a bipartisan basis.
And we just don't haven't seen that now -- -- I have to ask you about one other thing.
Again and again and again the president has talked about pivoting to jobs and the economy I wanted it.
Here this selection of headlines.
About the president's activities from December 3 2000 night Obama puts renewed focus on job creation.
For January 282010.
Obama -- -- to job creation.
September 2011 President Obama pivot to jobs and -- GOP -- follow.
February 24 2012 Obama to recast agenda focused on jobs and -- About -- the pivot back to the economy and that is the Washington Post February 10 2013.
-- we have this show burlap riveting.
Though the president spinning in circles as near as I can tell -- I I beg him to not -- again and you don't let let's let's seriously.
Doing the same thing again and again expecting different results is as we know.
Not wise is the definition of insanity there has to be new playbook -- here at some point.
And it is the reality that the -- hurting the economy it is the reality that the promise of more tax increases hurts the economy it is the reality that.
All the regulations he wants to pass hurt the economy.
So at some point he has to recognize that the rest of his agenda is in danger in the economy and thus endanger his agenda I don't understand.
Why the White House can't focus on this in a way that gives the American worker chance.
Well at work were fresh -- a chances it seems it doesn't seem anything can be done to you.
Really give a big it says to -- joblessness in this country hopefully we'll find some solutions down -- road.
Doug thanks for coming on tonight I think sure you'll be watching the speech and will catch up regulator.
I hope so thank you.
