You're watching...
WSJ editorial board member Jason Riley on defense employees facing partial furlough from spending cuts.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Thank you call -- of the secretary of defense Leon -- now what -- congress the Pentagon is planning a partial -- well.
Nearly 800000 civilian employees -- the looming budget cuts end -- going through.
Away again joining us now wall street journal editorial board member Jason Riley if you scare tactics because if you look at this.
If you look at it will only be about about 45 billion in discretionary and mandatory cuts and that's what one quarter of 1% of our economy we're talking about.
7% and defense 5% domestic spending but you think the four horsemen of the apocalypse are on their way -- the sequestration goes through.
You know it is the first responders will go away cities will -- you know Border Patrol be of this -- illegal immigrants will invade the country.
The the rhetorical landstuhl which that's the ministry people go to score political points.
Is astounding person I think it's basically no big deal 85 billion -- -- about three point six trillion dollar budget.
It's a pretty small percentage I mean about the rest of the economy -- belt tightening but there are no efficiencies to be found in government let me ask specifically about defense -- because some Republicans that's all we don't wanna cut defense would rather see the cuts come elsewhere -- what will the real world effects of that the or will -- -- and I think they can be handled responsibly in fact.
Republicans are trying to give the president some discretion.
On where the cuts are applied.
Harry Reid and other Democrats however respond to that because it undercuts their Armageddon narrative here.
But I think this can be done responsibly whether it's domestic spending or defense but what the president does have.
I'm going to his advantage here is that Republicans are somewhat divided on this you have these.
Defense hawks who are saying maybe we should give the White House the tax increases -- they don't touch defense.
We'll use that to the -- so I think it's important for the Republican caucus stick together what do.
About on the conspiracy peers at times I and that I wonder if the White House has to be worried about these cuts going through.
Because if nothing happens to -- economy if the economy continues to kind of chug along as it has bed then it kind of points of the fact that.
More cuts should should happen and that.
Well.
I don't I think I think I I alienating I don't know I.
We have.
The practical in terms of the government's ability to move forward fund itself provide services and so forth.
They're more worried about the political fallout I think what about the economics so you don't think there's any economic fallout potentially mean I'm sure some people five cents -- the -- -- will people be coming back -- process.
Lower GDP estimates because of it or is -- at least some individual companies that'll be affected we showed defense stocks little while ago.
-- -- The -- the spending that Obama has wanted he has gotten spending as a percentage of GDP under Obama crime has increased to 24%.
From 21% what do we have to -- support the slowest economic recovery.
And three generations.
Should the White House be worried though about what's happening within the Federal Reserve even beginnings of debate about starting to renew it removes some of the stimulus.
And there is no way to know how interest rates will react how the bond market -- we we should all be concerned about what's happening in the federal prison record at just all that is the White House Republicans for different reasons my -- concerns and yeah I -- I think we should all be concerned it's pretty frightening.
I think what -- what what they've been up to.
On terms of the excessive -- how long they've let it go -- inflation concerns are very real and how they're gonna back out of this who knows.
People the other side are worried about the backing out of it because they're profitable markets up there you have it.
But cunanan this Consumer Price Index was flat month government to -- -- what are we worry about.
If you send it to Jason who go to it was great they David and I are --
