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IHS Chief Economist Nariman Behravesh, Public Notice Executive Director Gretchen Hamel and Economic Policy Institute’s Christian Dorsey on the poten...
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We have moved the bill in the house twice we should not have to move a third bill before the senate gets off their -- -- -- used to do something.
That's -- some choice words from house speaker -- Boehner he's echoing the frustration of lawmakers.
Public -- last minute agreement to avoid Friday's deep cuts the president shot down the Republicans offer to give the White House more flexibility when making the cuts now.
We see the president taking his message to the masses he's back on the road.
How I feel -- -- making calls to congress -- -- deal but you know.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Here with the lowdown on what we're going to see and feel you might want to sit down.
Slant on -- near big bear -- Is with IHS he's the chief economist we also Gretchen -- there from public notice and Christian Dorsey from the Economic Policy Institute.
I feel like we're gonna solve this problem guys I can feel they act and we we are we are you like Gretchen you -- for somebody go to your right there.
What did kind genius strategy I think -- I -- -- for once on the part of the GOP to say ballistic.
We'll give you more flexibility.
With what you want hot because the president has been out there talking about the little children who are gonna get there measles shots.
So you see you know what you can give them your measles shots but you have to do.
Find it somewhere else.
-- it's a good idea right.
And it's a great idea and I think speaker Boehner was saying let every American is thinking right now in a here.
Every single week that we're about to hit another fiscal crisis I think he was just telling everyone.
-- just think what everyone is already thinking about when it comes to what they were proposing for the White House.
They -- gonna give them the flexibility they have the flexibility to make the choices.
Only three cents on the dollar you -- to choose what ever three since you want -- pat.
And what the White House is saying is I don't know now now now we want to continue played it down and we wanna be and is set to show how did these cuts are gonna hurt they're gonna hurt bad and senate.
Actually taking some of the Weiss and getting rid of some -- away.
Christian what are the fact is that it just choose defense and if the White House wanted to they could choose whatever program they want our little bit from everywhere where they could safeguard -- to -- care.
Think it's safe -- things that are really important that scare people like the vaccines like the -- We reserve vaccines for for for kids but you what you you take away housing support for for the home you look at.
You don't get off what you somehow gonna send us at some point that does become part of the choice not when it -- -- and -- dollar.
It's not three cents on the dollar because they weren't opening up that higher.
Federal budget to spending it's still within the limited confines of what's -- -- ration was all about OK that was the problem with that it was a it was it ridiculously false choice of cutting things that are not necessarily a worthy of being cut and that problem.
You know wouldn't -- at Christian brings up a great point because in fact one of the things that's listed that's that's on the side that can't be part of the sequestration cuts.
Is President -- -- his paycheck that's one of the things that's been set -- as as being -- so he's right not everything is open.
Maybe we should open everything -- the president's paycheck.
-- now -- I think that's a bit of a distraction frankly analysts I think I would put it a little differently I think.
The damage even if we go off this and if we go into the sequestered stay there the whole year and others.
The cuts 85 billion for the whole year yeah the good news is the economy strong enough that we can absorb that you say it's not gonna kill the economy -- absolutely.
Why why why what are the signs that make you think that that we couldn't we can afford that so we can deal that.
Well you mentioned a couple of how things improving prices up sales up confidence up despite all this stuff about.
-- -- the cliff and the sequestered so that underlying dynamics in the economy is strong we need to cut the deficit we all agree on that.
We gotta do it at some point we keep postponing the problem.
Pop at some point we got to take a -- but yeah.
I probably a good time I want I want you to be -- about this but what worries me is that why did GDP contracted in the fourth quarter the economy is really strong enough to sustain this why -- a contract.
I think you know this must say it's up it was a fluke is gonna get revised up on Thursday.
Up from minus point -- -- a probably a plus point five and we're headed to 2% growth in the first quarter of this year.
Underlying growth -- the US right now it's 2% opinion that we have the full sequester it'll go to one and a half percent.
Grace our recent aren't strong enough -- our way out later next Christian Gretchen RE ID -- we're strong enough to absorb this cut.
You know I think short term we may sit still a little bit of ramifications of three cents on the dollar probably not.
But in the long term it is only shown that if you have a government that is spending less and letting the private -- sector's been more you're gonna have an economy that's thriving I think that last -- Showed that we are living on borrowed time and borrowed money.
And -- longer we put off this problem -- greater it's going to -- -- disagree -- -- Well I hope you heard -- at the end of his remarks it's still gonna cut growth by about half of a percentage point it's a needlessly cause self inflicted wound even though it's not gonna.
-- goes back into recession it's still an un.
Necessary blow to the economy really still may contain -- -- -- money we don't half but but see here's the thing that the sequestered doesn't actually reduce the deficit.
The incumbent reductions in economic growth mean you're not doing anything to improve your deficit so it's just ridiculous.
Spending cuts that make no sense to you want to reduce the deficit.
You've got a result I -- -- attacked always entitlements yet know you're out you're absolutely right Kristin you -- the salient point here is that all of this we're sweating over this this -- cuts in it and really.
They're big do nothing it's barely -- -- -- you're -- about that we gotta go guys you're great yeah I hope they all come back together thank you so much for coming on.
Time now for --
