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PNC Financial Services Group chief economist Stuart Hoffman weighs in on government spending and the new Simpson-Bowles proposal.
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Just -- that the top of our President Obama telling the nation that the budget cuts this sequestration cuts.
-- less than two weeks away.
Will cost people their jobs a little -- -- scare tactic.
Worry about the whole country Stuart -- answer that he's chief economist at PNC financial services joining us now.
From pets -- how concerned should we be if these these sequestration cuts do kick him.
Well we've we've built that into our forecast frankly not call eighty -- ninety billion.
It it will cause people from -- just the uncertainty of whether it's gonna happen or not in less than two weeks is probably holding back some job creation.
I'm concerned I don't think it would be a fatal.
The economy's gonna grow this year we're gonna see net job creation.
In the private sector.
But if the full sequestration goes in.
It could well cost fifty to a 100000 jobs particularly in the defense related day either in the government.
Or private sector that bear the brunt.
Of those cutbacks -- negative growth in our economy -- the fourth quarter and you clearly here.
Nervousness.
From the Democrats about any cuts for fear that the economy would weaken again.
You're in the president's State of the Union Address he hasn't used the word stimulus -- he's talking about spending money on alternative energy and infrastructure.
-- is now the time to start cutting in -- -- I was the first thing is yes we had negative growth -- you wanna call negative growth we had a decline.
Provident -- -- -- -- -- -- to get revised to a small increase.
But it still was nearly flat quarter for the economy I think -- most other economists myself think it understated the economy's momentum.
I think growth this quarter will be back up -- one and a half.
Or 2%.
Bearing -- -- that tax hike.
That that the spending cuts are necessary and -- and I hope we get at least half maybe not all of the sequestration.
Have but even -- still when you take the tax charge that we got and if we got full sequestration.
Those still -- two dollars for every tax hike.
For every one dollar spending cut.
Very almost the opposite would Simpson -- they wanted -- of one the other way it ended despite an event -- The new old they're back on the parade room trying to gin up support among politicians.
You know and among the American public.
For again tack -- form.
Spending cuts raising revenue and some way -- I think it's their fourth attempt to do this in three years.
What do you make of the new proposal.
Do you think -- has.
Any momentum -- -- I don't I don't think it has a lot of momentum I actually like to proposal bait -- -- -- they've added they've said we ought to cut 2.4 trillion.
Out of our deficit over the next ten years one point eight billion in spending cuts 600 billion and tax revenue -- That's the three dollars in spending for every one dollar tax hike was the old Simpson Bowles.
And the number is lower because we have had tax hikes and some spending -- -- on how much go through that sequestration.
I think I'm I'm glad to see them out there there's still leading the parade I'm afraid -- they look -- they just don't have.
A lot of followers.
Death of their own -- gradually Garza says my father might say that's ones -- parade.
I think he's still great Stuart Hoffman -- -- what -- I looked over and there are.
Erskine Bowles and Alan Simpson under the lap facing at all -- -- that -- welcome here any time gentlemen thank you very -- nobody behind them.
