Reich's Road to Recovery
Former Secretary of Labor Robert Reich tells Alan what he believes needs to be done to fix our economy.
- Duration 10:12
- Date Apr 27, 2012
Former Secretary of Labor Robert Reich tells Alan what he believes needs to be done to fix our economy.
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Secretary -- worked in the Clinton administration secretary of labor he is.
The chancellor professor of public policy at UC Berkeley out there for the good weather now right.
And I would it's just gorgeous I won't -- Nice and no more Cambridge Massachusetts for you now about it just I should correct -- years ago.
Now this this book beyond outrage is is an e-book why did you decide to do Disney book.
Two reasons one because I could make it -- very up to date you know normal books -- take months if not you know about nine months from the time -- submitted to the time has public.
Also want that did it make it cheap it's only two dollars and 99 cents -- and if you want the videos that come whether it's three dollars 99 cents I wanted to get out to people.
That's a good deal.
Let's talk about why trickle down economics does not work we keep hearing people promoted Republicans still run on it making the rich richer in every metric -- But they don't seem them except that it does -- has not worked.
It has not worked I mean we tried it for years we tried it George W.
Bush tried next.
And actually the number of jobs.
During the bush presidency even before the great to drop off in 2008.
-- weighs less than the number of jobs during the Clinton administration and the -- that would wages wages fell off a cliff.
Beginning in 2001 that for most people median wage declined.
-- with Bill Clinton even really raised taxes actually made the median wage continued to rise.
-- so it's a complete mythology that you have the trickle down works doesn't.
They had we kept people continue to run on this Republicans run on it.
And people vote the way they feel the economy is going even if the numbers don't back up their feeling the -- how to get people to feel the right way to that they -- the right way.
Well -- the economy is continues to go in the right direction even though it's a very slow recovery.
A -- -- slow recovery because after all Republicans -- not cooperated all they have not allowed Obama to do what he wanted to do.
And they created this mess in the first place by not regulating Wall Street.
But -- -- of the economy continues to get a little bit better and a little bit better.
Then it'll be going in the right direction and I think Obama will -- The next president Mitt Romney you know -- he's the he's the kind of a personification.
All that's wrong with the economy and -- what did he do he was a private equity.
I mean you've been he went -- any rated companies keep laid off people -- -- -- you know put up by the Lowe companies down with debts so that those companies many of them had a hard time survive.
And fired people you if you have -- out that out this week how Europe's double dip could become America's.
We keep hearing from the right we've been elected Obama's got -- European concept we're gonna become Greece.
What's wrong where that line of attack.
Well it's it's just ridiculous and -- -- has given to the business community here in the United States.
Everything that there's just wanted and fact that profits have -- the stock market has soared.
Under Obama you know if you if you look Alan this is interesting -- if you look how stock investors have done.
Under Democrats including the Obama administration you -- they've done much much better.
The stock market -- and much better than it has done under Republicans and this has been the pattern for years and it continues under Obama.
You talk about how important it is to reelect Obama yet.
You also -- critical of him and we haven't been enough fast enough is that his falters at the -- -- -- congress in many -- -- blue dog Democrats that won't work with him to do it needs to be done.
I think it's largely a default of congress particularly Republicans who have actually said no you know I.
I was there with Bill Clinton and faced a very -- -- rough congress.
You know Newt Gingrich came and then them properly said they wouldn't.
Cooperate on anything.
But I haven't seen anything like that kind of.
No you bobs of negatives this.
That is -- you Republican congress.
So it's very very dead difficult for Obama and he hasn't also at the same time he's had some blue dog Democrats some.
You know -- that kind of -- deficit hawks.
-- not let him do what needs to be done and it would not be saying -- you know I will -- the budget deficit to win unemployment gets down to 5%.
But -- but it's crazy.
Before we when you're still in the gravitational pull of a recession.
They tried to attack the budget deficit.
Isn't that nattering -- about the negativism I think anyway I think this thing -- What needs to be done tax flies and how can Obama get that the enemy was unable so far to get them to rescind the bush tax cuts -- the very wealthy.
How do we ever get there and where is that there that we -- get to.
Like -- didn't make the election at about just who.
Any initial what's fairness here in this economy and the you've got people like Romney who may 21 million dollars and 2010.
And and paid a tax rate of up thirteen point 9% amendment if that is but here I don't know what the meaning of Ayers and Obama is gonna say look -- -- -- that I'm going to.
In my next term if -- get enough.
Voter support not only have -- Buffett rule so that millionaires pay at the very least 30%.
But I'm also going to have any attacks on the stock transactions.
I'm going to have a tax on on on capitol that is just inpatient.
Capital I'm going to use that for all of this for education.
Four job skills four infrastructure.
I'm going to rebuild this country I'm going to make sure that we have a world class system of education and infrastructure.
So Americans can -- higher wages in the global economy.
Which -- and Robert Reich whose new book is -- and outrage an e-book.
Available from Knopf.
I don't think you pronounce the K and and I think right now I think are you so so now.
They will say well if we're taxing the rich at that rate we're really -- -- guys like Buffett.
Whose money comes from investments meaning they're investing money the already made -- the eighty taxed twice that's the argument they make in the -- -- well.
And make that argument but you know -- you are taxed on your incoming contacts on my income -- -- If you take their argument we are being taxed twice because corporation is.
If we are working for a corporation they are taxed and it had initially had before they pay our taxes and -- -- QB in the business of up.
Asking how many times -- attacks they would I buy something from the grocery store and as a sales text there have been several taxes along the way.
-- -- it taxes aren't with the price we pay for a civil society.
And just say that people who have high incomes are overtaxed or that the capital gains -- is somehow unfair when it's 15%.
I just is blind to reality and it's these private equity managers are not risking their own capital.
They're they're not risking a dime they're they're giving other investors to put up the capital and they're getting 20%.
Couple all of the gains when they're calling that capital gains tax to 15%.
I think that's a joke.
You have talked about four things -- president can do for one thing demand the nation's banks modify mortgages of homeowners still struggling in the wake.
The Wall Street housing bubble hasn't been done to some extent.
And no it hasn't I mean he he's got to be tough.
With the banks but the most he has said is that we've got to look into fraud.
And we've got to come up with big global settlement -- fraud that that you really does somehow reward.
A lot of people who have been defrauded directly or indirectly.
But that's not nearly enough I think -- he never and then George W.
Bush really was the was the culprit here.
-- because George W.
Bush started the Wall Street bailout.
Never condition the bailout on what it should have been conditioned on and that is modifying the mortgage -- so many homeowners.
Who found themselves under water after that bubble burst.
-- wasn't their fault.
It was a fault of Wall Street as a Wall Street really should be paying the price it's not it's back to many little tricks.
Condemning the oil speculators in the other weekend he just talk about making sure he had to put more money down for example if you're gonna.
Play the oil market.
Yes but he but about what he has got to do is make sure.
That the Commodity Futures Trading Commission.
Which has jurisdiction over oil speculators to.
Does in fact go forward with the rule under Dodd-Frank that's entitled to -- and that is to limit speculation of oil.
And also back -- -- the Justice Department investigate.
-- price manipulation oil price manipulation lot of studies right now -- are showing that up to a dollar a gallon is just because of the speculators.
And we -- further job creating investments doesn't he require congress.
To allow looking -- those.
Yes and PlayStation is gonna run on the money that he's gonna say look -- -- cannot.
Do this right now because congress won't let me Republicans in the house to dominate the house I don't have enough votes in the senate.
So what you have to do voters is not only reelect me.
But you've got to give me a mandate I am not going to get into -- disk austerity trapped.
-- Europe has got into I'm not going to go down the role of austerity economics -- we have genuine growth back and genuine job creation.
Are you happy would Bernanke and Geithner.
Look I think Geithner and Bernanke I would not have put them and -- I don't think they're ideal they have too much of there.
Pop up there their brains and their outlook is in Wall Street.
But they are certainly better than what the Republicans would put in otherwise I mean I -- I realized -- Bernanke was originally bush appointee.
But given that what Romney has said given what Romney where Romney wants to go I would think that he would put in some.
-- Geithner supposedly leaving would be good replacement.
I I'd add to that question I don't know I mean there are a lot of good Democrats around who could do who could do a good job the -- Point is you have somebody in the Treasury Department who cares about working people who cares about.
Issues of wages and jobs and and -- the it is the the kind of kitchen table economics that where most people live.
Would you another job in -- How I if the president Kashmiri pitting -- -- a minute.
Well and good to talk to sir I appreciate your time is always.
Secretary Robert Reich beyond outrage now there at Berkeley appreciate your being on the program.