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Bring on what the pundits call austerity.
Let's cut -- Government spends three point eight trillion dollars now.
And sorry that's just the -- states and local governments spend more.
It's too much every dollar they spend is -- -- the private sector doesn't haven't free individuals spend money better.
That's why cutting government spending is good and we need cent cut more options from.
But Bob -- says austerity is like -- his new book is debtor's prison the politics of austerity.
Economists marks thousand is proud to call himself an Austin area and and he wants to cut so Bob I'll start with you we -- to seventeen trillion dollar national debt deficits will grow worse.
As the three of us -- where the baby boomers.
You say and we don't need that -- This is question about deficits in that context.
-- -- depressed economy.
The time to cut deficits is when the economy is in recovery has Bill Clinton did in the 1990s Clinton got the economy into surplus.
In the context of high growth when you have a soft economy.
That's -- time to have deficit spending because you need this stimulus.
Before you go on mark respond -- what -- suffering from today is imprudent.
What the government is doing with their irresponsible welfare.
Payments way affect constantly interfering.
With business and so forth.
Is keeping the private sector which is the majority stakeholder.
That should be the focus here.
With employment and so for they -- the key we have -- really are heard about Bob's point that now is not the time to cut now's the time disband were in a recession.
Well look there are many examples in the private sector.
Companies I would say -- -- a consultant for IBM one way they went through a very different called.
In the early ninety's and they.
A fourth of their workers.
Workers a 100000 workers and look at IBM today so the United States the same type of situation if we adopt austerity.
Prudent austerity we can turn our country -- round and we can blossom like we've never done before Bob I have to wonder what you -- now is not the time.
Mean when is the time it that there I'll tell.
-- generally want to cut.
Excuse me -- time is the time is when the economy is healthy and the Clinton.
Europe in the late 1990s.
The one time in -- history when the budget was in surplus.
And we were on track.
To have no national debt you know and in in 2000.
Economists worry about how the Fed's gonna conduct monetary policy.
We've paid off the -- national that so I'm not the sort of guy who says we ought to always have a deficit.
But this is not a time to tighten your belt and I think you may agree -- -- on this point I don't think we ought to be raising taxes.
I don't think we ought to be cutting spending.
But we have had national debt now that's a 100% about GDP.
And that's here and you haven't went interest rates it is after interest rates go up.
It's got to be even more everybody's.
Everybody's been warning for five years interest rates are gonna go up in the economy is so dead in the water.
That interest rates aren't going up I mean after the war.
The debt ratio was a 120% of GDP much higher than it is today came -- we -- we -- war the war ended.
Where our welfare that I think I'm gonna end.
Well I'm -- I'm still alive going to that I think is really important here we have become an overly generous.
We have an overly generous welfare program section eight housing wealth.
Food stamps Medicaid and so forth 47 million.
Americans on welfare they want to work but of course we have -- -- system that does not incentivize them to go back to work.
We need to imitate Ben Franklin I -- in your book you talked about Ben Franklin rather than Daniel did follow because -- He faced all kinds of financial crisis all his life.
But he also always live below which means he always save money -- rainy day fund where's the federal rainy day fund to solve these problems there's nothing wrong with debt -- -- But it's got to be done prudently just in my own life I was put 20% down.
When I bought -- home I pay off my credit card at every month it's called prudent money management.
And in government we don't have any evidence a prudent money management products last.
-- -- -- As recently as 2001.
The government projected an endless surplus.
It was the bush tax cuts the bush wars and then the deregulation of finance.
That created all these huge deficits let's never forget where the -- and we agreed to disagree thank you -- cut nerve marks cows and I should add that mark has organized what he calls.
The world's largest gathering a free mind.
It's freedom fest it's called gold -- every year in Las Vegas the theme this year is our week role.
I'll take this show on the road to be -- freedom -- this July we'll -- -- in -- of more than a thousand of his free minds but next.
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