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Guggenheim Advisors Managing Director Dylan Glenn on whether there will be dramatic impacts due to sequestration and spending cuts.
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Thanks so airport delays even before any layoffs occurred -- him a bomb is facing crying wolf.
-- -- Dylan Glenn of Guggenheim partners the former special assistant to president George.
W bush you know we heard the -- -- -- I wanna say this airport I wanna say that after it's almost felt like wishful thinking.
-- -- -- I don't know this is consistent with administration's been which -- crying very loudly that this piece of questions that come into question now -- -- question -- We'll have dramatic impacts do you know what they.
Examples they've chosen in terms of education that we heard last week that that that teachers were going to be fire we're getting pink slips already.
But of course when that was reported on that didn't turn out -- exactly case.
I think it's it's a little bit crying wolf without question -- -- is gonna have an impact on.
On on the economy people I trust put -- that you know -- 4% or less in terms of growth this year zero point 40 point four that's exactly.
Yet although we get she Dave reportedly -- -- zero point four points off GDP because of an 85 million dollar cut this year.
Wolf my gosh let's just let's just spend 850.
That they spent if you could -- million government spending will have 4% growth I have what does this -- come from.
It would slightly keynesian as you well know you know -- that my sense of it is that look if you were serious about economic growth we've got to be serious about having growth policies.
We certainly don't mean raising taxes and it also means finding the real it's real savings again.
-- -- numbers I found that if you look at government's two point six something million employees.
And the seven or 50000 jobs cited by Obama administration saying they'd.
These jobs could be -- laid off because of the cut that's 26%.
Of the federal work -- equivalent again only a 2.4 percent cut in spending.
Aren't these numbers kind of suspect.
Well there's there's there's certainly.
If they date -- and I'm skeptical of unless you say that in my -- services that are we talking about a no less than 2% cut across the government across the board.
If you're a manager worth your salt you could find that type of savings without.
Without.
You know what I upsetting essential services and so happen to challenges on the administration don't.
And -- Republicans kind of also selling that the bad effects of the sequester specialists that sort of trying to tag the Obama folks with.
Being first to suggest that.
Well I think there's no question that it's gonna impacted negatively our defense readiness in this country and I think from -- conservative side of the ledger for Republicans -- alleged that something.
That people are concerned about.
There arm so -- for -- vulnerable result Al that they see this.
As at least.
An effort although -- and in the -- sort of not efficient effort to to reduce the size of government -- that this instance it's something that's a positive.
But there's no question about it that these are real cuts and they will have a real impact.
At some point do you see any longer term.
Bad affect.
Of of this crying wolf because you know it seems like a lot of voters and a and a lot of traders on Wall Street are tiring of crisis hit.
-- crisis fatigue no question about it I think look at damages Washington's credibility damages president's credibility I think don't want some extent when when in fact there won't be.
A new crisis that we'll have to meet with respect to the CR that the funding that's coming up was in -- the government for the rest of of this fiscal year as well as you know around another conversation we -- debt limit you know -- you have to -- of fourth quarter next year.
-- let's let -- let interest rates on government debt double local overnight then we'll see a real -- that are -- that in fact is -- enterprises and knowing that our thanks very much for being with us Dylan Glenn thanks --
