You're watching...
Irene may have caused billions of dollars of damage, but it also has the potential to inject billions into the economy
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Even now.
Nine billion American dollars that the estimated additional economic activity as a result of hurricane Irene calculated by economist Peter -- and this.
-- power play thanks for coming by Internet we're having a great time here we're all right now sun is shining here in Washington so that stopping by and thank you to hear it topless tough tough.
-- Who is one of the the political reporters I admire a great deal Shiites were raw all and your dispatches from the trail you have a great -- Bologna.
And you do a great job -- and so we're grateful to be our special -- And we're -- grateful and we can talk to Peter Barnes because he's back from Jackson Hole Wyoming he's back.
-- around the world.
He's back at the White House and he's telling us what the economic consequences.
-- big -- not so big hurricane that we had our.
That we do it.
Well hey Chris I don't I I had just heard your intro there Peter -- she is out where authorities say 29 billion an additional economic activity.
Could be -- much you -- and good professors give so little wiggle room at between seven and 29 billion that's a pretty even for an economist that is fairly broad spectrum.
There could be as much as 29 billion.
-- might be that we got also some estimates yesterday from a coming out and listen anybody's guess that you know you know how they are aware that the economic forecasting a half.
Ahead it's out of what it what a delicate art it is what -- leave it at that but.
Ever Cumberland advisors or is out with a research note yesterday and says it definitely expects to see.
A a that that they that the rebuilding a recovery efforts.
Well Jews fourth quarter GDP here it's now estimating that GDP could grow -- the fourth quarter at the north of 2% to -- which is not that great to Begin with but also.
Could get as high as up 3% or more -- and as you know Chris a lot of economists have been downgrading their forecasts.
Going forward for for pretty weak second half here so.
There will definitely -- an economic impact no question I remember.
A lot of times these kinds of disasters just.
Move spending around.
And and and defer -- other spending for example.
And flooded areas right now people can't go down to the boutique store are endowed by some you know while birthday presents -- -- -- -- of the next part of they have for the neighbor's kid or something like that instead.
They're gonna spend that money on I've -- new carpet -- new flooring in their house because of the because of the -- I was -- this is that a good for the economy we can certainly start evacuating cities goes blowing I mean you know we can do Baltimore -- total rebuild their there'd be billions so you're you're saying that new economic activity does that with a consequence right.
Doubt it because listen -- that the economy is still tight and so what's gonna happen here people are gonna instead.
-- spending money to go on a vacation that they were planning for the last week of August of -- here before.
You know Labor Day.
There are now gonna have to spend it on on -- renovation and -- and rebuilding their home from from the flood.
-- and there will be other spending that is moved around and -- a lot of this could depend frankly.
On how much Washington decides to chip into this to pay the bill.
And that could be billions it could be tens of billions based on other hurricanes we've seen you know for example Katrina although this was obviously not as -- -- Katrina so.
The the the ultimate economic impact on the so called multiplier -- another ripples out in the economy.
Could depend a lot on on how much the administration is able to get out of congress and a supplemental spending bill for disaster relief if there is one at all.
Well we -- -- -- on the power play we thank you for joining us today that it's have a great.
-- Chris thanks.
Okay -- I.
The interesting thing going on today -- President Obama who is era.
Always seeming to be making a -- sometime we're always right about the -- there's always good at taking.
That's probably good amount of bulky clothes that thinking about -- back and -- it coming through today we have new she's White House economic advisor to the president is getting ready to roll out and multiple parts of claims for jobs and the economy.
I think it's probably indicative of how difficult economy is now when people are looking -- hurricane has a good -- economic event at the annual.
Spending even as Peter points out that you're moving it but -- -- spending it gets an economic activity.
What does the president need to do to make this pivot how how to -- Well I think He didn't really put forth a very -- and can -- jobs in the White House.
It over and over again the past couple month every time redundant the issue is just find out we're gonna get a jar.
We're gonna talk about well actually need -- -- -- -- time.
Particularly interesting that the man He is nominee to be economic advisor to Princeton professor.
The big.
Can get a point about the president.
Surrounds -- many pro tutorial -- I.
Diligent businessman type.
You are you -- I think mark is because I was saying the exact same thing this morning we were talking about this here.
-- bill -- not know anybody in the business world did -- rule -- -- Oh number -- Back over to take a late labor lawyer from an Ivy League school and to come in India had -- fewer jobs.
Competitive and it would put everything in this economic advisor to the president into sort of tin -- for this moment I would think this is the -- he's been talking about why He warned about the recommendation and you Lauren would like to comment but I was very -- Another academic.
Coming in -- room.
Why why are they struggling so much to embrace that we've had I think it was.
Jake Tapper did indeed like.
Twelve to get it do your jobs and why this is always our.
Is is there any disconnect between this say public sector private sector disconnect here what's what's the -- -- I think.
President Obama -- Or ninety in -- completely likes to -- these girls and you know we get into -- return the latter.
Four year term the president enterprises that I.
Not getting you hate the word -- group think.
And I I wonder if anyone really president -- and because.
Especially the timing -- -- right now would be the perfect time to put a businessman and that -- before campaign.
Yeah it is the perfect idea you must know it looked like -- completely playing politics now would just look like our political.
I wonder bill -- the president's chief of staff can win the president after the midterm -- of the shellac incomes and blow the -- deal with Republicans on the bush tax rate.
Came out and the -- comes -- -- -- -- -- experience a Clinton Democrat.
We see Jacob Lew coming and we need the clintonian model yeah I was half expecting -- poorest -- Have you thought that this pivot to the middle and I.
Stuff then it was like look what happened to that this indeed these centrists -- Sort of faded away.
Do you think that -- of this is the fact that the Republicans have been much copper much harder.
And more difficult do you think press conference and a little bit and thinking that maybe they don't meet him in the middle.
It's a good point that it even -- the economy to get worse over the past six months -- certainly gone away and hope.
Centrist triangulation thing that He was doing back in December to linger and more about you know I'm just gonna -- democratic.
Line right here I think you have a point that it probably something you do with congress -- -- Tea Party Republicans being so did loan program.
Over the past six months.
Because President Obama does need to watch on laughed a little bit He doesn't know the democratic nomination fight I think this time around Sydney comment that we know what are at a democratic -- are you watching Hillary Clinton are you out there.
He doesn't -- used to watch for that intent on the left and there's a way to win an election -- and I'm not gonna get this far -- -- it coalesced the far left.
The left in the independence.
And they are pretty obviously preparing for war.
This may be unavoidable but the siege warfare campaigns that we need have become accustomed to something that would be very much like the 2004 bush reelect.
Where you're playing very well you're.
Micro targeting your training get all of your coalition together and get them out it doesn't involve a lot of reaching across -- not about broad coalition building -- her struggle in 2030.
Put together you know people talk about his coalition that -- delivered the White House Barack Obama.
We're independent suburbanites people like Pittsburgh Columbus and other place like that were from the birds that normally you Republican 345 points.
Which Democrat to -- sixth equally spread and that delivered a huge relatively speaking victory President Obama.
Those folks aren't there he's gonna have to grind this out.
Bit by bit.
A lot more like a -- for many reasons and made it into.
Your yeah man and.
-- -- it was exhausting I wasn't.
There what what what good are the same each.
Enough time from everybody and you wouldn't talk about the difference between security moms and NASCAR -- -- you were pretty group -- that.
