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To prop up our wilting economy the Obama administration has urged an array of solutions that range from.
The Federal Reserve's 600 billion dollar program.
To the temporary payroll tax cut.
But what tactics can we expect this summer to revive our economy -- the president actually run out of options.
Here to discuss -- my freedom fighters -- Senior correspondent and my buddy Charlie Gasparino Roosevelt institute fellow -- Barrymore and the independent.
-- senior fellow and Suffolk University economics professor Benjamin Powell my friends welcome here.
-- to you for some things don't look too good.
For the president right now realize were eighteen months out before Election Day unemployment is up 9% the jobs report tomorrow is probably going to be they had and movies of all people sad -- are all that money you want you certainly can't spend all that money you want or we'll reevaluate your -- what do you think.
I I think we're in trouble I don't think we're at a solution but I think we might -- -- at a time the countries in the grips of deficit hysteria and political deadlock and we're really our economy is driving with emergency -- -- we need jobs.
And we need relief for foreclosure -- the mortgage crisis you know they're they're they're really serious -- this country's facing but he'll always seem to do is prop up the big banks and give away tax breaks a billion.
Charlie is -- sending a signal that corporate welfare doesn't work.
You know I never trust anything coming -- -- -- -- as they -- higher taxes I think one of the things that they were talking about it is if you don't read the debt ceiling.
We're at the boundaries of -- will take what they're within doing seriously.
You do have to take what's going on -- -- -- because look at.
It's presidents Obama's fiscal policies have failed miserably.
Because they failed miserably Ben Bernanke started printing money and that's failing miserably right now you -- a fact of the matter is -- pretty political deadlock.
Republicans are gonna prove more spending.
He isn't gonna approve tax cuts on top of that the Fed really can't lower interest rates anymore you know where there -- a lot of red zero right as you gonna do by the GNU QE3.
Well that's kind of pushing on a guy pushing on a string a little -- at this point.
So we really do have an issue here.
The only way to I believe to for things you need a program administration -- -- -- willing to look at the business community -- We're not gonna we're not gonna attack you anymore what we're gonna -- -- certainly don't have a pro growth administration and this one professor.
Now in in Gasparino is absolutely right here.
Listen the fiscal policy hasn't worked the monetary policy has worked and here's the reason why everybody knows we had a bubble economy before.
That meant the wrong industries got too big too much labor and Capital One in the wrong places.
The way you fix that is to reallocate that capital labor to other sectors that means prices in some sectors have to come down businesses need to fail.
The market is doing that but doing it slower than it would have precisely because of these fiscal and monetary interventions the fact that we're in a gridlock now and fighting over deficit.
It's a good news for economic recovery -- the stuff to sort itself out while there's gridlock.
Isn't the government trust the free market what is the government thinks that think that it's -- it knows better what we can do -- -- -- -- what we want to do with our dollars that we don't wanna buy GM cars of the government -- G.
That's a really good question I think for forty years there was a lot of confidence that -- the free market could solve its own problems that and we had these monopolies -- and we had widespread -- -- we had innovations it turned into Frankenstein.
Financial product that nobody under is banking system was hardly a free market that was propped up by the government for thirty years they were partnerships that the house.
With the -- Sam don't have any idea why this is this is not the that's not the entrepreneurial -- I will say this when you mention about foreclosures.
One of the problems housing market is -- it hasn't reached bottom yet.
We are propping up the housing market has a profit walls we're doing is delaying the -- judge I would tell you look at what happened in 1920.
Really stiff recession kind of a depression.
No fed intervention no government of and we got -- in relation immediately.
One year we were -- eleven and once -- out of.
I wanna switch gears but but in the same -- I don't even think we need a secretary of commerce I think the free market I do it on -- -- but according to the president and his nomination.
To head the Commerce Department.
A character named John Bryson is innovative and Amanda knows how to create child and sometimes -- -- -- Atlanta and Charlotte how innovative quick as I let me -- that they realize that government handouts like runners on and let's start.
With the premise that this is the office of like you know just you know -- corporate welfare right I mean it's not this is not -- get the government back is that this is that's all -- office -- does this to solve is really means nothing.
Other and -- -- out over welfare but this guy is particularly sort of you know in it -- -- for this job -- ran.
Crummy business a business that was far from entrepreneurial business it was you know -- in and all these subsidies it.
It was a little bit and IP -- losing -- no it does it what does -- do is look at it happened -- I mean I've this is not this is not rocket -- says the.
Economic community do those who like you and I believe.
And all of our hearts in the fair market -- band even care who the secretary of commerce -- -- that department do anything more than just gather statistics and publish them.
And occasionally grant some licenses to trade.
Yet it really doesn't matter who you stick in the office the office itself is a corporate welfare office.
That you get a corporate welfare queen to take over the they have the -- of it -- -- rather fitting so I think it's it's just fine and what we should expect.
And that would do but I mean look at the mission of this place is supposed to be according to its own statement exposed to promote job creation improve living standards for all Americans by creating infrastructure that promotes economic growth.
That's its mission statement you don't need a government bureaucracy to do that just go away gives -- economic.
I'm sorry you're -- are you gonna get me some truck.
FDR argument that excited you clean out Washington and everybody's taken at a government of the UEE you'd have a pretty empty place I'm not -- -- that that would be great yeah.
The government subsidizing green jobs and the financial sector and introduce is nothing lemon is giving you the -- with this office does -- mean.
Did I don't really becoming I know I mean I'm knocking down the street knows what I I I know -- -- -- department does -- much and I agree with the I don't the Fed does I know -- I know kind of what the Education Department does not that I agree with it.
I don't know what this office does accept me begins and -- to corporate equipment to achieve -- -- -- line.
Liberals and the -- alternative energy is not a bad thing I mean you know you hear people say it's -- The government.
Mean the criticism of this particular choice is pretty convincing even to seller power he's into electric cars and that's called radical while it's radically -- I'll -- -- lost money.
He lost money doing it shows that those businesses don't work and it's all about -- figured out how to make them -- it.
-- your -- -- nobody cares about this do that he.
-- nobody cares about who the appointment this I don't I don't know of Peter Judge.
No I really don't care what that is what they know telecast but that's what I mean is that they -- -- -- personality -- -- that institution we have the commerce department of the they're trying to create another kind of the department this consumer -- if we got -- -- -- got a guy out of got to go -- Powell and her work at Charlotte got a right now it becomes a it's a pleasure we don't want anything to do what the government interfering with the economy back -- the play future.
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