Could another stimulus fix economic problems?
Cities call for more funding amid new recession fears
- Duration 7:59
- Date May 5, 2012
Cities call for more funding amid new recession fears
Also in this playlist...
This transcript is automatically generated
-- odd President Obama officially kicking off his reelection campaign today.
And talk about tough timing stock sliding -- now known as job creation slows down.
And shoppers pull back.
Now cities are calling for more federal stimulus to help bring the economy back.
But some here say all -- spending is the problem are they right.
Hi everyone I'm Brenda -- -- -- bulls and bear.
Sleep very B Smith Tobin Smith Jonas Max Ferris along with Todd John Berger and stuff and bet -- everybody Gary Beach.
More stimulus that's answer.
Brenda we just don't seem to be learning.
Any lessons here we're gonna get more -- -- looked.
Let's go back and review what the Obama administration said they said.
That unemployment rate would never go above eight and a half percent went to 10%.
By the end of 2010.
It was supposed to be below seven and a half percent it's not anywhere near they -- President Obama says we've created all these jobs yet the real unemployment factor including people that -- have -- withdrawn from the workforce.
Is that 15% in fact any jobs that we've created for example in that in the Green sector which should have been right.
For you know job since we have so much stimulus the winds sector alone has let us.
101000 jobs since 2009.
If we can't do in this brand it's going to be more of the same of course animal keeps spiraling downward not upward.
Both the -- is the problem.
Too much stimulus or -- not enough.
Well the problem is Gary god bless and is sounding very European right now -- we've got a lot of very us steer.
Thinkers in Europe and they've driven those economies into -- recession.
The fact of the matter is that the bail -- that the bailouts -- stimulus that bush and Obama put in a few years ago prevented a terrible depression.
I'm not happy with the jet and the job growth.
An affected do you think more stimulus will be helpful.
But I'll tell you what I would rather have our position than that of Europe where they've tried austerity and it has been actually disastrous.
Yeah I think we can we can put isn't big projects and and and -- I'm sure you would agree that cutting way back on spending would only make things worse.
Well I you know and Gary -- -- -- brother Toby admits that got for you but I know they've been calling you the year act he had.
That's got spike in words -- don't.
-- -- -- -- -- -- I don't I a lot of -- is with Europe.
Was that big they lost confidence -- lose confidence because they had a financial crash because they couldn't bluntly overspending completely set -- -- -- they couldn't afford in support will guess what.
Wore white out that -- darts -- decorate one trillion dollars your negative spending.
Is making people come to conclusions number one we're gonna have some terrible inflation down the road and number two.
Somebody's got to pay for this -- attempting to higher taxes so -- job creators are the ones who are holding back and that's what's holding -- back and it's because basing it out were out of you know workable out of whack here.
OK let's let's defected to the stimulus issue and -- is actually do you think there right now we're still way.
-- stimulus already there it's kind of in the eye of the beholder isn't it.
Right that's why don't really think we more because we did outs stimulus more more than many other countries we didn't go and austerity mode as the other just said and we're not in the recession that most of your prison right now because of which is great.
But you don't need it started -- use -- as part of we -- not a recession we're not in a recession ordering your deficits deficits are stimulus part of the spending more than -- -- and is a stimulus program.
Now we can bicker about how the -- but it -- wasn't very clever the president didn't do any these big projects that could have been more.
Job creating it is too late now mean I was years ago he should've started that so.
It's over let -- go we're doing better than most of the world -- China -- -- -- a much bigger stimulus program and we -- as it was energy -- analysis -- you're right about that the president could have done many more things and here's the bottom line guys we are heading into a recession and we need more stimulus.
This is an economy that is desperately in need of organic growth and it's not.
There right now so what else is it gonna be guys -- -- -- -- soup lines out there are do you want the government to get about the do you want the government to spend more.
Money -- it's now up here Brenda I'm not a big fan of this but it needs to be done this economy right now is in desperate need.
Big jobs report puts us at -- a one point 7% GDP.
-- third quarter we will be in a recession what else -- we -- -- we don't have people that are working are not spending money consumer confidence is down.
I -- it could be dimming clearly here but we need to know the job.
Okay -- yeah we got my -- this -- -- can you -- -- cannot.
Well for us to fan I can understand his his viewpoint the lefty got a he has but who -- Todd back that's that's my.
But what happened.
But what if if I think it's a simple question you know Todd makes the point that we should spend more but.
I'm not saying the money shouldn't be spent what -- the private sector spend it -- all want -- really do with stimulus is transferring the money -- one group to another you're assuming taut and the friend that the government can spend it somehow better or more -- -- that we say that the wait a second.
We've seen at a camp with the greens are -- -- I point out was Solyndra and all those others.
Cut taxes for crying out loud and let the private secondary -- what -- their I's -- -- -- -- right but let's look at the quarterly earnings period -- US public companies right now they're looking at 3% earnings -- you're right that then spend some money the bottom line is they do go out and spend money that are gonna -- negative earnings growth that's gonna hit stock valuations look I'm not a big fan -- -- either but something's gotta be done it's clearly not happy for the private sector -- from the American consumer so where else are we gonna turn -- a -- that.
Well to get to the point is is that for job craters like me we look and say wait a minute.
If if if I am going to have this -- getting complacent and and this can't you know stop at some point I have to do something.
I think it's -- to be I'm just gonna wait until see something happens and that uncertainty that lack of confidence is what is hurting.
Our jobs and that's because they see this out of control spending.
Again these very points that year and half ago but now the proof is sort of error that the countries that didn't cut the spending are doing better in the countries that cut the spending is like a dozen countries samples -- all -- from Ireland going Greece and Italy France and Germany.
They just cut their spending too soon out of the last recession he's a very big recession.
No we made mistakes they want very clever spending -- but the bottom line we're doing something they didn't do right that's what we're not a recession so.
We did okay job not a great -- we don't even know -- -- we're not sliding -- apart a.
-- that and you say and more now.
And I tell you what I think I got a way to do this that might even make Gary happy he's right.
The government has been a poor spender I've got I've got a suggestion Ben Bernanke.
There 57 and it really mad yeah that's right there -- 57 million children between the ages of five and eighteen we're always talking about how we don't want to borrow from next generation.
Ben Bernanke should write them 171000 dollar checks and let them spend the money.
I think I.
-- -- Yeah for my pocket that's not the way to do it and -- Well I -- let that lets give bag Gary be the final word here.
Well look I I'm a big believer in the private sector I think that our economy as opposed to what John is -- is completely different.
Then all the European country around do things differently here that's why stimulus here withdrawing it won't be anywhere near as negative.
As some of my up fellow panelists.
Point out I don't get out okay go ahead -- you you -- laugh though it's and it's it's going to be that eventually you have to unwind the balance sheet is gonna be crippling to the US economy going forward and you need Americans to stand on their own it's just the states have cut a hundred billion and spent okay we're not negative did -- -- -- flag.
Gotta -- yet thanks guys.