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Have you heard terrible things are happening.
It's plus -- People who.
Betsy here up.
And no one told austerity has come to America.
Seven days to austerity seven days to a potential economic apocalypse but queries to collect.
For winning streak on Wall Street goes on -- where's the austerity.
Let's bring economist Friedrich kind of back from the dead for all the talk of so called austerity -- -- -- the deficit keeps growing and grow.
What is austerity.
I was there it is -- I have no idea.
The fight over austerity.
That's our show tonight.
-- means self denial.
One applied to government it usually means cutting spending.
I put the word in quotes here because despite the media way -- lying about austerity.
There have been fuel real cuts here or in Europe.
The the left hates austerity their books out like austerity kilts.
Paul Krugman calls people like -- support cutting government spending or staring it's.
He says this comic strip explains it all it portrays Austrians.
As aliens who want to destroy earth.
-- -- they hero of course for saying austerity is madness the aliens -- shoot him for revealing this truth.
Why am proud to be in Austin area even if Krugman and frankly most of my neighbors in Manhattan.
-- -- -- -- Unfortunately only a few people in congress actually take my -- -- want to cut spending.
I'm happy to have one of them here with us tonight senator Rand Paul's proposed specific cuts but senator I'm told if we -- now -- win the economy -- in great this'll make unemployment worse.
But here's the amazing thing about people saying that we are living in an age of austerity.
We have not cut any spending in Washington.
Even the sequester is a cut in the rate of growth.
Spending still is growing in Washington.
When they say -- if you cut spending that will somehow cause lack of economic growth.
Will people spend money is just who spends it.
And Friedman had this and he put it really well when he said.
Nobody spends someone else's money as wisely as they spend their -- when you talk to your colleagues about.
There have been no real costs -- they look at you like your wrong.
No I think a lot of people up here actually understand it.
People like Krugman take it and they demagogue an issue.
That they know full well that we are going cutting spending our around here that were slowing the rate of growth at fast.
But even rate of growth you saw how they went crazy it's -- other sequester the sky is falling the world land.
-- guess was the same week they do that they sent an extra 250 million dollars to Egypt.
So we've got plenty of money to send around the world and -- -- -- we don't have enough money for White House -- it just doesn't pass the smell test.
-- you have a real plan that would actually cut you would eliminate four cabinet departments commerce education energy housing and urban development.
When you say that to people that frightens them myself home.
Well what -- -- the balancing your budget if you talk to any family about balancing their budget not -- when it comes in.
It sounds like a very reasonable notion there's -- scene vs the unseen.
I can take money from the economy.
And I can build a bright shiny building and say over this is what I do with your money.
-- we don't see is white.
-- to -- -- and individuals would have done with that extra money in the economy which goes back to a Friedman said.
Who spends money more wisely when -- your I don't know when it's government.
Government -- profligate way pitchers of money and they have no clue as to how to make any thing so I wanna leave more money in a productive economy and less money in Washington.
The private sector might have spent the money for the shiny building.
Creating thousands of jobs are curing cancer we don't know what they might have to.
But really it's who can make things better the private world.
-- the government and I think we have a great deal of evidence that the government waste money mr.
wrecks it I mean I can give you example after example of millions of dollars spent on.
-- -- Beef jerky.
All five million dollars spent on now studying the collective action of fish there's been no austerity here in the United States we have.
Struggled to slow down the rate of growth of government.
And -- they fought us tooth and nail on the sequester.
Which is slows the rate of growth.
I think the American people are buying it I think they see that there's been a little bit of -- gamesmanship.
And I'm playing by the president -- Although no more self -- White House tours no more inspection of the meat no more air traffic controllers.
When in reality I think most people believe that you could move money around enough three point eight -- our government.
And cover some of these things I'll give you just one example how.
If the president would have behaved irrationally.
If you just don't rehire the people who -- retiring from government that six billion dollars a year.
So -- -- was passed a year and a half ago.
He did nothing for a year and a half -- -- they instituted that out of -- nine billion dollars that's nearly a fourth of what we needed a guy.
Thank you senator Paul.
Now although America has big financial problems in Europe things are works.
This -- was in Greece Greece has had the most riots but.
There have been big fights and Spain Portugal England.
The protesters blame austerity.
It's just a terrible situation and he cuts cuts cuts cuts cuts cuts -- it must be terrible they're all this budget slashing.
Is unethical experimentation.
On human beings is ball Krugman.
He and many -- -- say Europe's troubles proved the free market argument is wrong.
And I admit -- Europe struggles gave me pause I -- stories about Europe with headlines like the economic argument is over.
Paul Krugman is one.
-- -- -- -- -- economist Dan Mitchell study European austerity.
Why haven't the budget cuts work.
Because I haven't batted me that that woman from England who use public this quote.
Government spending has gone up.
In the United Kingdom every single year.
For at least a couple of decades and even since there's so called Conservative Party government took over a couple years ago not only that it's rising faster than inflation.
You look at France government spending has been going up.
I really haven't -- we -- -- of some of these countries France Italy.
United Kingdom Spain.
All these countries -- increasing government spending -- a rapid rate and then all of a sudden the fiscal financial crisis hit probably have to do something we have to do austerity.
But what they meant by -- -- wasn't.
Let's prune back the size of this bloated public sector they said let's raise taxes so all these countries are raising taxes drive with a private sectors into the dirt.
With these punitive class warfare tax hikes.
That didn't work and so now funny -- as you said in Greece we're seeing a tiny bit.
Of spending cuts only because they -- the end of the rope they can't get more bailouts.
They still kept -- from the private sector they raise taxes to the point where even the IMF said.
There are Laffer -- responsive you'll get less revenue you know.
So they have major labels like -- hallelujah the Greeks have finally -- that they tried everything else would have failed they made a tiny tiny spending cut.
But why all this publicity about draconian cuts and people to people they are it's -- -- sing it believe it.
Here's the problem the fight in Europe -- between the so called austerity crowd.
And the growth crowd but the growth crowd are really the Paul Krugman keynesian big spender types who think government spending of some sort of magic elixir that you throw it out of the economy grows.
And these austerity people well.
The IMF and whatnot they just want higher taxes there's nobody in Europe who's actually advancing the position that senator Rand Paul was talking about.
And some others are talking about in the US up.
We have a big.
Expensive inefficient government if we want more growth we need to shrink the burden of government spending and it doesn't matter what you finance government with taxes -- borrowing.
It's the transfer our resources from the private sector.
To the government that's what hurts.
You're economy this government has no money of its -- -- has to take it from the private account yes and in all likelihood they're not gonna spend the money -- as officially.
And the coverage is so in saying the Atlantic at service spot respectable magazine my nephews the editor yet.
Atlantic editor Matthew O'Brien -- my nephew someone else's the more country has caught the moral unemployment in the hands.
Is worth the deficit.
I bet he probably also agrees with Paul Krugman and somehow thinks that that more government spending will -- -- economy.
Even though it didn't work for Hoover Roosevelt in the -- it didn't work for Japan in the ninety's didn't work for bush in 2008 didn't work for Obama 2009 it's never worked anywhere.
But people believe.
Politicians love the theory because it tells them that their vice is of -- -- -- and they like to spent.
While you're telling me that it's good for the economy if I go out and give money to all these interest groups that are helping my campaign oh yeah I thought I would -- -- mom Dhabi first of -- Any good examples any country that's done it right.
I just got back from Europe.
Got off the plane today came America's this show is the best place today.
Definitely the -- -- country's most people don't even know where they are Estonia Lithuania Latvia.
They've actually done the right thing when the fiscal financial crisis hit in 2008.
They actually cut government spending and when they cut government spending I'm not talking about the Washington and all we increased spending at 6% -- 8% so that's a 2% cut.
No in the -- the country's spending was actually lower in 2009 that it wasn't 2008.
But it was lower again in 2010 that it wasn't 2009 and -- -- economies are growing those economies are growing they've recovered jobs are coming back they have positive GDP in other words.
Economic growth while the countries that have -- what the tax increase approach like Italy Spain Greece Portugal etc.
There are recession.
In other words that the moral of the story is you have to figure out ways to reduce the burden of government spending and taxes.
And most countries in Europe haven't done that the politics are a tiny glimmer of good news.
And back on this continent just one last example years back in the nineties Canada -- big cuts real cots.
And prospered and -- Canadian dollar was worth seventy some cents at the time now it's.
Has parity with our dollar it works that's amazing and and -- most of those spending cuts and that actual genuine real spending cuts in Canada.
Happened under Labour Party government a liberal government -- a loving -- -- -- stuffed under the New Zealand did the same thing of the 1990s.
And when these kind.
Actually to be fair.
Was much better than a lot of Republicans at least he restrain the growth this but it -- Republicans in congress played a big role in that -- -- -- -- but the good news is.
The the evidence shows if you at least restrain the growth of government or even better actually cut government spending.
You're freeing up resources for the productive sector of the economy and that's where you get growth.
We have to focus on taking government which is as big giant -- now that somehow figuring out how to -- that.
At least restricted so that it's growing slower than the private sector.
Well good luck with that -- Dan Mitchell coming up.
To -- economists will argue about our stared.
-- -- recession and.
But first step man who says austerity is like debtor's prison and the opposite of what America should do will debate that.
Bring on what the pundits call austerity.
Let's -- Government spends three point eight trillion dollars now.
And sorry that's just the feds the states and local governments spend more.
It's too much every dollar they spend is -- -- the private sector doesn't -- free individuals spend money better.
That's why cutting government spending is good and we need cent cut more from but Bob -- says austerity is like prison.
His new book is debtor's prison the politics of austerity.
Economist Mark Scott Rosen is proud to call -- -- in Austin area in and he wants to cut so Bob -- start with you we have to seventeen trillion dollar national debt deficits will grow worse.
As the three of us sage where the baby boomers.
These -- we don't need that -- This is question about deficits in that context.
-- depressed economy.
That 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 to 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 are the key we have to really -- heard about Bob's point that now is not the time to cut now's the time despair and were in a recession.
Well look there are many examples in the private sector.
Companies I was a -- consultant for IBM one way they went through a very different called.
In the early ninety's and eighty they fired at a 100000.
A fourth of their workers.
The hundreds out.
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 -- -- 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 -- all time.
You know you got caught.
Excuse me -- time is that time is when the economy is healthy and the Clinton Era 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 -- about how the -- is gonna conduct monetary policy.
We've paid off the -- national -- 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 -- 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 you haven't -- interest -- is after interest rates go up.
It's got to be even -- everybody's.
Everybody's been warning for five years interest -- you're 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 show.
-- no war the war ended where our welfare is adding I'm gonna end.
Well and I -- 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 and welfare they want to work but of course we have -- in a 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 -- 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 -- say.
But it's got to be done prudently just in my own life I was put 40% 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 costs -- -- -- last work.
As recently as 2001.
The government projected an -- surplus.
It was the bush tax cuts the bush wars and then the deregulation of finance.
That created all these huge deficits but never forget where these -- -- 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 of free minds freedom fest it's called gold and every year in Las Vegas the theme this year is.
Are we roll.
I'll take this show on the road to be afraid of fastest July we'll -- showed a photo of more than a thousand of his free minds but next tonight.
What if you manage your budget like the politicians manage there.
This is -- family budget what do you think about them they make play for they spend 35.
So they lost 101000 this year they're already a 167000.
Of them what type of people would today.
It's actually that the federal budget -- just took some zeros on.
That's a big number.
Think about this family budget.
Really -- -- income last year was 24000.
Dollars but they spent 35000.
Incurring almost 111000 dollars in new debt they are pretty had lots of old debt.
I would say these people are highly irresponsible.
Is actually the federal government's budget I just took off 80 some.
People on the street had an appropriate reaction to that -- Formula for disaster.
Our futures dismal if we continue in this spending pattern no doubt about that you have to pay for this -- college kids is this area.
-- -- -- I don't know I managed to -- I don't know how she will either but radio host Dave Ramsey helps people get themselves out -- -- -- Dave what do you think about my Times Square gimmick is it fair to compare family budget to the government's -- Well sure it is absolutely fair because zeros for zeros in math is math when you spend more than you make.
You go -- that this is not rocket science.
And comparing politicians to the people you counsel and your show do you see similarities in their psychology.
Well there is one definition.
Is learning to delay pleasure.
Putting it off when your child I'm a red faced little four year old throwing a fit on -- -- while I -- I want it now that's the definition of mature immaturity.
And we all have that little kid that lives inside of us but if we're going to be grown ups we learn to delay pleasure.
We back away from the table or we get too big we can -- too much food we can't spend too much money we learn these things it's called self.
But when you're an immature person or an immature culture you elect immature people represented -- Then you continue to spend more than you make and that's the problem with the politicians.
And there have been some very interesting psychological studies on that where they put a cupcake -- some -- and -- little kids and say.
If you don't have one Eminem now you can have a bunch later -- you watch as they struggle with it.
Then they followed them 51020.
Years later and the kids who were best able not.
To grab the extra treats did better in life consistently.
Exactly and any of us have the ability to start making those choices to take on a little pain.
To take on a little bit of maturity in order to win that later but we have to believe that if we're going to do that that we're going to win later.
In other words -- the terror at the end of the stick has to be real.
And talking to people on the street in our I was happy they were horrified by the federal government's overspending but surprised the answers I get when I I got when I asked them this question.
What would you caught.
I like man alive you know.
Anything that's right not education not educate them.
There's not question the question -- -- -- -- him.
Don't cut this don't cut that -- month in three point eight trillion -- what the -- did that people player radio show also known not.
Don't know what to cut out of their personal budget.
You know people do know what to cut it it's just again it's that immaturity factor we say -- I don't wanna.
Not go out to eat I don't -- not go on vacation.
But I've got a 1101000 dollars a student loan debt that's been around so long I think it's -- -- But a -- -- start making some choices here because this craps not going away if I don't change my behaviors and the people listen do you after word they say.
I'm happier now.
Spending less you know what you know what's weird is they're happier immediately.
Because when you have this sense of being a grown up you put on your big boy pants and you say I'm going to control my destiny.
I'm going to control my life I'm not gonna live from -- -- -- impulse.
And I ride it all out even though I'm not out of that yet.
Even though but what I'm riding out is a recipe for Christmas is going to be a craft and I've got to deliver pizzas to not get my income up.
Even though that what I'm riding out is a tough plan.
I get this sense of dignity because I'm being a grown up and I'm taking control of my future.
And there's a power in that that is unbelievable it's called hope.
Well thank you Dave Ramsey I wish I had more hope for our federal politicians.
Coming up Frederick -- a famous economist comes back from the dead terror wrapped in support of austerity.
The car the engine.
We don't need a mechanic.
Waved the -- the economy's organic.
-- about -- security vs stimulus really began.
-- eighty years ago.
Economist John Maynard Keynes said we can spend our way back to prosperity.
Friedrich Hayek said no way.
They didn't use those exact words but I'd like to think that if high occurred about Obama's stimulus plan he would've said something like this.
You all works perfectly fine come along the -- recession and and you know.
-- -- -- -- -- All the estimates -- Yeah that's what I hear -- recession we've been much worse without stimulus spending and now when unemployment is still high that's the time to spend to.
Jump start the economy.
Economies like an engine that needs a spark.
And this makes sense of people so let's turn to the producers of that rap video which received -- and some views on YouTube.
Economists Russ Roberts and former MTV producer John a poll.
So Keynes argued.
An economic slowdown.
Prime the pump like a car.
Sounds good yeah.
Politicians like if there's an excuse to -- other people's money the fundamental question is does it actually work.
They say it does well when the Obama stimulus plan was passed his economist using keynesian models said if we didn't pass it.
Unemployment could reach eight and half percent we did pass it and went over ten solar models were wrong.
And the question is are there historical examples and give them more evidence than the fancy statistical models are used in that case and I would argue that evidence is very mixed.
Now plenty of people say unemployment would be back up now if America stimulus was bigger.
And it is you had -- say it in your video.
And we only spend more to.
A war we need a war -- some play.
Well the -- like to argue that -- -- to end of the great depression and I believe that's true.
Where were too it's not a prosperous time.
Wasn't a time where the government spending stimulated private consumption was actually -- time of austerity in the real sense of the word.
People -- economy model they were -- tanks and to -- the measured economy.
Lots of airplanes lots of tanks lots of -- if you're in the munitions business make him work -- war.
Stuff he did great but the average person if you want -- my refrigerator car you could do that because the steel was being used for all that other stuff.
That is the reality government spending crowds out private activity and after the war when government spending -- sharply down.
We fell into a horrible recession while -- the -- predicted.
Actually every spending fell about 40%.
And downed economy -- -- Truman pointed out in his.
Discussion economy afterwards -- was high despite the fact there were ten million soldiers coming back from where we found jobs -- -- went to school why don't found it work somehow.
The economy thrived with out.
The government stimulus.
I think -- of strange about the the keynesian approach to economics is they don't seem to care where their value is created by economic activity or not.
I mean as a produce drive to create value for my audience I have to make something that people once.
But in the keynesian world it really doesn't matter how you spend the money you can.
Build bombs and tanks as we did during war but you could also have.
Make work projects that are absolutely -- fill up.
Having alien invasions -- fake ones and speaking of that we we don't have a world war but -- see -- and Paul Krugman actually suggests that it would be good if we had something like war.
If we discovered.
And that you know space aliens were -- to attack and we needed a massive buildup to -- -- need to space alien threat.
On and really inflation and budget deficits took secondary.
Place to that.
This slump would be over an eighteen months.
I mean in a way that sort of speaks for itself doesn't it -- I -- -- there'd be a lot of economic activity do you mean when you measure I can look I can sell you my sock and then you can sell back to me.
And if we kept doing that in a circular flow and measured -- -- GDP we would apparently both be coming mainly wealthy in the economy would be growing.
-- -- -- -- -- They are alive that.
In McCain's worldview which all stimulus odd doesn't federal government spends it on if we're fighting the aliens were still getting richer somehow it it to me -- -- that.
The resource would have to come from to build those anti millions space weapons.
And let's talk about austerity I've been hearing we've tried austerity -- has worked where.
-- -- tried it we hear about the act states now the United States government over the last four years has not.
Growing as dramatically as it has in the past -- companies actually went down government spending at the federal level actually went down a little bit.
Of course it was a cluster near is near an all time high it was after the stimulus without a little bit and now it's predicted next year a little more because of the sequester and we managed to run a deficit over trillion dollars for those four years -- -- -- be up pretty keynesian.
Piece of -- off evidently and that's the problem with economics and that's what.
FA -- Friedrich Hayek made that point very well.
There's it's complex world it's what is going on at once and is always easy to say well it this it would have been worse if if we hadn't done it.
Very hard to prove that and it becomes something have a religion economics on both sides of the debate I've I think one of the other things that I just find sort of offensive about the state.
Is that we talk about austerity prosperity in the richest.
Governments the richest nations in the world and the largest governments the world's ever seen.
And when they talk about cutting 3% its austerity.
And I think in the rest of the planet austerity -- kid's belly is grumbling because -- Hungary.
And it just the culture of calling what we're talking about in the west austerity.
It's really kind repulsive -- you think about it in the broader scope of the global community and the people out there -- have to.
Really figure out what they're gonna do next now or are -- in which the critics called me.
Or and you probably -- like -- sounds like -- Austrian economics which some of you people know about -- -- most viewers don't.
There connection there yes it it's a play -- words are supposed to be making fun of the Austrian economists like kayak who were often skeptical of the keynesian prescription.
And so it's a job.
So little jab.
Think I -- I Wear proudly.
They -- you Russ Roberts John -- -- coming -- I will solve our deficit problem.
But first -- and our audience.
Get to quiz our game.
Here -- questions for Kato economist stand Mitchell.
Also Russ Roberts and John -- Paula who made the high actresses -- rap -- -- First from my FaceBook page Joshua Bailey says has anyone defined -- the end game principles when.
Deciding what programs to fund then what tech -- What do boils down to -- -- public goods.
They they will -- property rights are good for an economy that -- the government spending is -- Some type of physical and human capital spending roads education and be good -- the government does it.
Efficiently that's a big challenge.
But the bulk of budgets today.
Whether you're talking about Europe -- the US are for what's called transfer -- consumption spending.
And the evidence is is that kind of spending divert resources from far more productive uses an -- it'll cost benefit test I don't wanna solid -- economist.
But if you really care about economic growth you want to do that cost benefit test.
And the transfer consumption spending we could figure out ways.
To constrain that those types about -- just don't want the poor and the helpless and not help -- that's what these transfer payments are supposed to big flood the theory is that if you get the private sector growing.
The -- will be much much better off with a prosperous private sector you'd much rather be pour -- -- congress Singapore because you have a good future.
Rather than being pour in France or some country like that where the best you can hope for is that the politicians.
Will forever pat you on the head and keep you -- dependent ward of the state.
-- people now more than ever.
Think are graduating from university come into a terrible job market I'm usually cutting receive your degree in something that's not really going to help them in the job market.
Do you think that this -- job market is reflective of just about economy or do you think that there's a fundamental problem with our educational system and how we educate.
Our college students.
Well it's personal choice of people major enjoy animations I'm just not very profitable.
That your choice -- -- -- without announcing any wrong with setting.
It's beautiful things of western civilization poetry -- a better father I think.
But might not help you get a job so you do have to take that into account but that your choice and that's your should be so it should be.
But I also shouldn't be subsidizing much as we do right now which is we're subsidizing people taking some things aren't really.
For practical and that means that the people are making those choices aren't using their -- money.
So I think that's the mistake yes go ahead.
Nobody and no one has brought up the entitlements -- I I don't see how they can be sustained and government city.
Any of those employees that get you know get lifetime health insurance and pensions where's the money coming from.
-- the federal government level.
It's all about.
Medicare Medicaid and social security and it's really the first to the health care entitlements and -- good news normally I'm filled with gloom and doom.
But the good news is the House of Representatives in 20112012.
And an earlier this year.
They voted for entitlement reform of both Medicaid and Medicare and a fairly serious of -- substantive way.
And they got reelected in 2012.
And I don't think they're suffering -- off from catching those tough -- so so I think the American people have sobered up.
I think they've realized looking at that calamity in Europe that we have to address the long run fiscal problems of excessive government and on restrain entitlements so.
For once in my life -- -- -- sound optimistic.
Those of us -- call us staring ends and to think that the government should be smaller.
A lot of times we don't talk about that we believe civil society should be larger.
I -- you look back to American history.
What you find is there was a rich civil society that took care of our brother these these organizations not only did they provide -- the sorts of benefits that we now rely on.
Face a -- bureaucracies to do.
But they did it in such a way that was both local.
And held people to account because you -- you brother in the face and if he went and part of plasma screen TV while it is claiming he was unemployed.
You know it's a little harder to do that when you know the people that are supporting you.
So I think there is there's more to this than just what we're gonna cut it's what we're gonna allow to emerge after that and.
In just a calorie your optimism from Twitter boring file clerk says isn't it true that this austerity.
We'll only go on to hurt the poor and the needy.
Government spending doesn't really go very much to go support we like to think it does but mostly government spending goes -- Richard middle class people -- -- -- stamps -- -- of tiny portion -- government spending we have lots of things we can cut before we get to the before we get cut corporate welfare.
We could cut some of these entitlement progress we've been talk about that go to rich people.
Why should everybody contribute to -- security and everybody gets money back let's reserve those programs for the people who are poor it's nuts to paper people's.
And their retirement who were able.
But not -- came said that Social Security is good because it encourages people not to city.
So I think that's stimulus we we don't need to save the government saves for us and then we get more spending sarcasm is what that it is a -- It was back.
-- gentlemen if if government is deemed irresponsible.
Because of rampant spending.
What is your solution to.
On that same government.
Want to -- and what not to -- If that's a great question how well we often talk about the government is if it's a person who decide to just use -- -- the government decides.
Of course there's no single decider in Washington DC it's a Immersion process of 535.
Congress remembers a congress and and the senate in and you throw in the president you got the agencies that they all work let.
It's not a logical process it often works pretty well with -- do better than a lot of other countries.
But yes it's it's a struggle I would like to see the constitution and -- -- thing we had a few hundred years ago.
Play a bigger brawl on what governments allowed to do and not allowed to do and that would I think restrain government in the correct way well thank you Dan Ross and John coming up -- -- austerity program I'll show you.
Product cut government.
If you just tuned in earlier I had fun in Times Square showing people this family bunch.
What do you think of these people there.
Make and 24000.
There's -- within 35 out there almost 111000 dollars in debt.
They should stop spending their money.
And they get their priorities straight and what they need to be spending and saving their money actually this is the federal budget I just -- zeroes off.
I don't think it anyway it will ever be able to make that yeah.
It's pregame so what would you.
A tough question it.
So what would you kind.
How that's -- I -- I didn't see the choices I guess what went -- thanked his RC government is concerned.
Your queen of the government.
I went -- alive you know.
And anything that's right I mean I don't.
They don't know we spend almost four trillion dollars and most people I talked to have no clue about what that caught.
Well I know.
I'd start by following Rand Paul's plan cut entire cabinet departments.
I -- bloated Education Department.
Education has long been paid for by states the -- spending a hundred billion dollars more period your three year hasn't made it better they just made it more bureaucratic.
And who -- -- Commerce Department commerce just happens the department gives politicians power to help their cronies.
So -- the Energy Department they take your money and fund companies like Solyndra.
About own solar solar trust all went bankrupt.
We don't need an Energy Department America already has an energy policy it's called the free market if you invent a better fuel -- get rich.
With those departments gone I'd go beyond.
Senator Paul's plan let's cut -- -- up the Labor Department so labor's Dolan by eight.
Workers -- super earth it doesn't need department.
Likewise the Agriculture Department agriculture is done by far -- bureaucrats and there mostly subsidize big agribusiness.
There's so much more that could be cut.
In that book just out in paperback we cuts all the way to surplus.
Not hard and it would create prosperity.
But most politician it's just very eager to spend more.
Check out their web -- it benefits stocked up they offer so many benefits.
But they suggest even I am eligible for 55.
Counseling disability assistance environmental sustainability and so.
Give me a break.
Ending handouts to people like me isn't austerity its common sense.
Right now we're on the road to Greece.
But if we cut government to the limited government the founders had in mind poverty would become something so rare are kids.
Would have to learn about it in the history books.
That's our show all have another new show next Thursday night.
Thanks for --
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