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These lending spending cuts on individual states let's bring in Matt wow that the editor in chief reason magazine and rich got to the heart of that they're saying that the Republicans think what the president is doing is a -- -- Tactic is that because something that the White House is putting that is not true or that the country can just handle it.
Because it's not true okay what specifically that the president's put -- -- center for example that 243000.
People are going to be cut off Medicare and fact checked -- work.
When -- and -- at -- and they said he had not not really true there's no direct linkage at all with sequester with the kind of Medicare cuts right so what they're trying to do is the classic.
Washington thing I have.
Go to Washington monument sort of close that first of the fire man and say they're going to be the first ones to lose their jobs they're it's 1% of the -- of the government budget after.
We've already doubled the size of the federal budget ten years peso for -- cut 1% in one year.
And we have to shut down meat plants which is what the Tom Vilsack is saying.
Then maybe you spent that other run up a little bit badly they're trying to fear monger.
Without question to scare people by in order to make a deal but -- tightened to make a deal there's no negotiations happening right now right so it's an order it's a trial way to try to win the politics of this not right.
-- if there is no impact from the spending cuts on the broad economy that individuals across the nation will field in the White House needs to worry about that because.
Again this could backfire could it not if you go out and say.
All hell's gonna break clues that the spending cuts get a kick in and then we don't really feel the impact of it unless your specific job -- Smart.
Well lets -- keep in mind that we have an incredible attention deficit disorder in this country so two months ago we're talking about the impacts the fiscal cliff and how terrible that was going to be.
A bomb that was abroad the raising of taxes that happened on January 1 -- just afterwards -- And you'll notice that they didn't scare -- nearly as much but what's going to happen we actually raise payroll taxes -- -- taxes on the on the top earners in the country they're -- more scare mongering about cutting government because they don't wanna cut government but they must think to -- -- point that they can win the after Friday war -- -- we put up the job cuts by state that are being projected thirty some thousand.
In Texas 45000 apiece in Virginia and Alabama on down the line they must think after Friday.
People will see it our way in the White House up -- well what they think -- and -- -- tough spot right because -- it does the economy does -- south they need to blame some -- of the blame the minority party.
At the time they have to sit on this they have to go through mid terms.
And mid terms for a second term presidency are always -- disasters twelve -- the last thirteen.
Times have been a total wipe out so they know they're gonna have a sluggish economy the economy grew by what negative zero point 1% Georgia when wanna settle in the fourth quarter so it's already bad going into this so they need someone to blame and so they're trying to look for somebody but people who are just experiencing this will look didn't see who's running the White House and -- -- You believe that if the excessive government spending again doubling over the last ten years is the drag on the economy yes and -- also would debt overhang right there's been really good economic research saying -- if you have debt.
The GDP ratio of 90% or more for more than five years which is what we have right now basically.
That means your growth is gonna go down by one percentage point a year that is horrific.
For a long period of time so we are facing this debt overhang and government spending is crowding out private sector spending and that's not get more from -- -- on this later in the hour but for now about Welsh reason magazine thanks a lot thank you.