This transcript is automatically generated
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 fox.
Your 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 -- want you certainly can't spend all that money you want or we'll reevaluate your debt what do you think.
I I think we're in trouble I don't think we're at a solutions but I think we might be running -- -- time -- 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 in the mortgage crisis you know they're they're they're really serious -- this country's facing but -- always seem to do is prop up the big banks and give away tax breaks -- billion.
-- Moody's sending a signal that corporate welfare doesn't work.
You know I never trust anything coming out where he -- as they look higher taxes I think one of the things that they were talking about is if you don't read the debt ceiling.
We're at the downgrade its -- take with their within doing seriously.
You do have to take what's going on watches -- because look at its.
Presence 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 -- -- red zero right as you gonna do by the -- QE three.
Well that's kind of pushing on a -- pushing a mystery element at this point so we really do have an issue here.
The only way to I believe to -- things you know program administration someone that's willing to look at the business community listen.
We're not gonna we're not gonna attack you anymore what we're gonna lower tax certainly don't have a pro growth administration and this one professor.
-- -- -- Now in and Gasparino is absolutely right here.
Listen the fiscal policy hasn't worked the monetary policy hasn't work and here's the reason why everybody knows we -- -- bubble economy before.
That meant the wrong industry's got too big too much -- capital -- in the wrong places.
The way you fix that is to re allocating 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 on fighting over -- deficit.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That's a really good question I think for forty years there was a lot of confidence that may be free market could solve its own problems that and we had these monopolies -- we had widespread -- fraud we had innovations that turned into Frankenstein.
Financial product that nobody under -- banking system was hardly a free market that was propped up by the government for thirty years there -- partnerships that the -- with the -- -- don't have any idea why this is this is not the that's not the entrepreneurial economy 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 as -- profit walls were doing is delaying the pain judge I would tell you look at what happened in 1920.
Really stiff recession kind of a depression.
No fed intervention that the government of and we got -- inflation.
One year we were at eleven and -- -- out of.
I wanna switch gears but but in the same vein I don't even think we need a secretary of commerce I think the free market I do it on itself but according to the president his nomination.
To head the Commerce Department.
A character named John Bryson is innovative and Amanda knows how to create you since sometimes -- -- -- Atlanta and Charlotte how innovated quite nice guy let me put that they realize that government handouts like running them and let's start.
What 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 his office -- does this -- is really means nothing.
Other and handing out over welfare but this night is particularly -- of you know in it -- quit for this job -- ran.
Crummy business a business that was far from -- -- business it was.
-- -- sucking in all these subsidies it was -- -- an 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 sites that's 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 is just that department do anything more than just gather statistics and published them and occasionally -- them 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 many of -- -- of it -- -- rather fitting so I think it's it's just fine and what we should expect.
And that would do -- 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 Gibson -- I'm sorry -- you -- are you gonna get me some truck.
FDR argument that excited to clean out Washington and everybody's taken at a government of the EEE you'd have a pretty empty place I'm not sure -- that that would be great yeah.
The government subsidizing green jobs and the financial speculative produces nothing lemon is -- -- 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 know with -- -- department does -- -- I agree with -- I don't the Fed does -- -- I know kind of what the Education Department does not that I agree with it.
I don't know what this -- does except maybe give out -- to corporate corporate to achieve your does that remind.
Liberals that's an alternative energy is not a bad thing I mean you know you hear people say it's okay.
Of the government's.
-- -- -- criticism of this particular choice in pretty convincing even to seller power he's into electric cars and that's called radical well it's radically Steve I'll -- you lost money.
He lost money doing that it shows that those businesses don't work.
And it's all about -- figured out how to make them.
Obviously -- and 130 nobody cares about this do that he.
-- Out nobody cares about who the appointment this I don't I don't know of Peter Judge now I really don't care what that -- what they know I would guess what that's what I mean is that they -- -- attack us well obviously every institution we have the commerce department of the they're trying to create another kind of department this consumer -- if we got -- -- -- got a guy gotta go gotta go Ben Powell and her work at Charlotte -- -- -- -- -- it's a pleasure we don't want anything to do what the government interfering with the economy back what the plane sure.