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An Escape from Spending Hell

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  • Description

    WSJ editorial page deputy editor Dan Henninger on the need for lawmakers to come up with a budget plan.

  • Duration 3:52
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-- call thank you.

President Obama heading back to Capitol Hill today to -- with leaders from both sides of the aisle.

As everyone struggles to get something done on a budget -- we -- an editor can help us out with all about the deputy editor of the Wall Street Journal's editorial page you wrote about it.

This morning in the journal talking about an escape from spending hell so I don't know what it is that where we are sort -- been sentenced to.

That's Oregon the last four years with the RS senate were failing to pass the budget and if things go on trying to plan will spend another two years in spending held just talking about it and not doing anything about it.

But then you think that the GOP and standing firm with the sequester cuts.

Did something and put them put that party at least all of -- firmer ground.

Yeah they -- I think this is a big deal we've all spent all this time worrying about the sequester apocalypse it happened.

And the public reacted positively -- Obama's approval rating fell his handling of the economy is down in the polls and people are basically supportive of doing some thing.

About federal spending so I think the Republicans.

Have some momentum behind them now and they have to take advantage of that I think they're have to press the issue stick to their guns on spending we need to lower spending from the incredible heights this gotten -- What does that look like specifically can you see a realistic deal taking shape for the Democrats give on something the Republicans give on something in the come together we have a long term quote unquote grand bargain or something that looks like that and what does it look like.

Well I think.

Connell what it looks like is you would need real leadership from the president because.

Budget that Patty Murray did.

Front of the senate budget chairman proposed has 975.

Billion tax increases.

97 billion dollars in tax cuts that's a bit of a watch a hundred billion and infrastructure -- I don't -- to our infrastructure.

Paul Ryan's budget by contrast has four point six trillion dollars in spending cuts these two are a long way apart he's also wants to repeal of the health care obamacare that that the see much in the that would actually happens it but there's a lot for them to talk about the problem is that so long as the president -- publicly commit himself and that effectively liberate.

The Democrats in the senate to carry forward on some of these spending cuts I just don't see it happening.

When speaking of standing on firmer ground the president and the Democrats have firmly stood -- the side and any excuse to use the words keynesian multiplier so that bit impact.

Bits of government spending has on economic growth but you have found.

Hey look who alone economist at Harvard University what is is Alberto -- Bit he says that you can write your deficit you can write the amount of mind that deficit spending that you're doing.

And it doesn't involvement wouldn't know it the best way to do it it doesn't involve massive tax increases and you need to cut spending.

Well part of the democratic idea is that if you increase public spending it revised the economy that's the keynesian idea.

Alberto -- senior is not.

Citi.

He is an economist it is well known in these circles and he and his colleagues have been spending last ten years looking at.

What seventeen countries have done with their budgets over thirty years they simply want to find out what works.

And their analysis concludes that what works is spending cuts if you reduce spending your economy will revive over time if you increase spending and taxes it's usually flat or even cause as the worst recession.

And that.

Poster boy believe it or not is Canada which -- Didn't enacted deep cuts in the mid 1990s and -- growth rates of up to 4%.

In the years after that Japan has done this infrastructure spending per.

Years and has gone nowhere nowhere at all thank you Dan might already be there on forced -- next price and Dan thank --

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