You're watching...
Senior economics writer for The Wall Street Journal Steve Moore on the next crisis facing the federal government.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Thank you rich.
So from one crisis to the next is rich was just describing -- US.
We're joined now with more on Washington's inability get anything done by Steve -- senior economics writer very prolific at that for the -- -- are now.
Steve thanks for joining us to get hurt the president is -- morning continues to blame Republicans -- the hope that Republicans actually came on tax hikes for the next battle.
The battle for the continued resolution keep the government find it how -- -- -- -- unfolding from here.
You know it's amazing we've been having this debate in Washington on the budget and the deficit now for two years really date date all this really goes back to remember those debt ceiling.
Debates that we have -- -- -- 2011.
And here we are the first day of the -- start.
And both sides are still where they are right at the beginning of this Republicans -- basically made the case -- got your tax increase Mr.
President.
In January we're not gonna raise tax every month so I who I guess -- answer your questions I don't say as I've talked the Republican leader -- And some of the others on the major committees they're saying right now they're they're not feeling the pressure to relent on this -- -- -- hearing a lot from the conspirators you know we got cut some think we have a trillion dollar deficit if we're not gonna do that's what I we get it is so I think the two sides are a total loggerheads.
Kennedy cousin actually nothing overhead.
-- overplayed his hand a little bit is pleading with some of the spirit that.
So one thing with if you think Republicans are confident because some.
Pundits are suggesting that Republicans are very nervous heading in -- -- fourteen midterm election.
Right well I think -- feeling confident right.
Now but you know as this sequester rolls out I mean he gets you know more severe -- the -- -- months wolf forward so.
Asked me two or three months ago whether Republicans are still feeling confident about this.
But right now their mood is they're not going to cave into the president.
The president actually agreed to the sequester process back in 2012.
This was something that he -- he helped set up so I don't I don't see.
Much changing and I think the one thing that could really change the whole equation if the president said -- I'll agree to some some entitlement reforms and those big boulders of the you know the Obama care Medicare Medicaid Social Security food stamps if we reduce the exact cuts in these domestic programs.
And I think that's something Republicans would go for.
Right in factor college Jerry -- wrote about that earlier this week right that perhaps both sides might be actually closer in agreement then either may realize.
-- way of what you just said.
Democrats.
May be in favor of some entitlement reform entitlement cuts and Republicans agreeing to close the loophole.
Yeah except that the Republicans route lobbied very clear on this when I talk to the Republican leaders what they say as.
When we talk about closing loopholes.
We want to use that money for tax reform to reduce tax rates that's what we did 1986 up.
There's a little bit of the two sides talking past each other okay you know when the Democrats talk about tax reform they're talking about something very different.
That Republicans are so I still think that the two sides are pretty far -- but entitlement reform is the key thing -- and look the president ahead.
-- has from time to time put entitlement reforms out to seduce them of any.
Got it yet some backs up that could be the solution to this but look I don't think -- got an economist who does not believe that this is the end of the world that we have these 5060 billion dollar -- this is about a quarter percentage of our point of our GDP.
That the world does not gonna coming out I don't know about their in New York -- Washington DC this on rail road rose in the east this morning.
Plus how -- -- market is flirting with an all time high the -- I mean we had the revision on the fourth quarter.
Not great but out of negative territory not contraction -- So that's good it's almost as if there's a disconnect.
Between this.
Constant log jam think you characterize it earlier conversation and really what main street is feeling.
-- you know you really have to tip your hat to the business you know American businesses and employers.
That they are able to keep growing their profits are pretty good you know the housing industry is improving.
Even though Washington seems to be doing everything it -- to screw it up.
What a great place to leave it yeah Mario at a weekend -- -- -- they are not yet for particular.
