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Alan speaks with MarketWatch’s Rex Nutting, who debunks Romney’s claim that there has been a spending binge under Obama.
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Welcome love Rex Nutting MarketWatch -- -- microphones.
His -- -- commentary editor based in DC for before that there was a DC bureau chief thank you record oil -- and I appreciate agreement Carol.
You must have been had a little rush when you've been asked today that Jay -- was showing your calendar the president Air Force One room.
It was a little amusing actually that it was -- it might -- getting around.
Now I thought -- did it was great kids we haven't seen it -- like this for a very long time if ever.
That we keep hearing that the president is a big spender -- is what the Mitt Romney had -- -- Time that we have a president who will stop this spending and borrowing inferno.
And I will I get the -- new.
Specifically address this notion of there being a spending inferno what -- did discover.
Well I just looked at the fact look at the record and what I found was that spending really has been increased very much at all since Obama took office -- -- including this stimulus and and all -- unemployment benefits from the food stamps then.
And the spending on the wars.
Spinning at that relatively flat cents since he came into office and that's very unusual usually president's increase spending quite a bit so we're sitting at the -- increase spending sense.
Since Eisenhower.
Really and we also point out to be very Anderson which is true that the first budget the 2009 for example is the previous presidents of the previous congresses.
If they -- and in with the person in office in those years.
Right I mean we're working on the 2013.
Budget now and you know that's Obama and the congress are working on that and whoever takes office in January whether it's Obama -- Romney will be.
You know working off that budget course they can make some changes and Obama did that in 2009 he passed the stimulus and and some other bills that increase spending and you know I've kind of adjusted my numbers to include that so I'm not I'm not given bush you know but blame or credit for of the stimulus bill that.
Most of this spending in 2009 was was agreed to you know -- by the previous administration the previous congress sent.
And that's just the way the budget works in Washington.
You know that you gonna have Romney and the Republicans repeat over and over again -- -- big -- he is that was announced not a good Steward of the economy.
I'm wonder if you're column -- the you know it's been in front the president will help them on their messaging.
Well like you know I don't know -- -- -- I wonder why that that Democrats haven't been talking about this more and I I have the feeling that both parties really like the image.
Obama as being expanded the Democrats like the idea that you know they have this -- that he was FDR they became man and really -- a lot -- and the Republicans you know premiums as boogie man whose you know this -- spending inferno.
But the reality is that Obama has.
Is that despite whatever whatever he would like to do -- -- heart of heart what these were actually done has been pretty fiscally conservative.
-- pressured by Republicans -- by blue dog Democrats that the reality hitting sixty votes in the senate.
Has really kept the government spending relatively flat and I think people should know that.
You point out that in that 2009 the last -- W Bush's presidency.
Federal spending rose by seventeen point 9%.
And then fiscal -- ten the first President Obama it fell one point 8% and into an eleven up but four point three in fiscal when he twelve.
Point seven and then you go -- of the estimates.
Four at 2013 and beyond their but the actual numbers really tell the whole story.
I think they do it and I think that you know what we have to realize is that the -- -- Ohio right now because because we -- -- -- -- session effectively still.
You know a lot of people are -- -- food stamps a lot of people are Medicaid.
A lot of people are taking unemployment benefits still and that really it does increase.
You know the federal spending and I don't just don't think the there's any way or round were you when you look at that that they that what happened in 2009 you know push.
-- the TARP bill which -- a lot of money to the banks and them.
You know to the mortgage industry and the with a lot of spending that went out.
An avenue -- would have been problems in revenue from taxes fell much further than expected because of the weak economy.
An emergency tax -- Well that's the real issue I think that lot of Republicans -- the two terms spending and deficits and they talk about.
Deficits and spending as -- -- the same thing and and the deficit you know.
But when you when you look at what the CBO.
Had estimated and and that compared to what really happened.
You see that.
That the -- built the increase the deficit with them was mostly because by the shortfall in revenue.
-- about three force of the.
Fact that -- -- -- lower than forecast revenue against the -- 3% of the two point seven trillion.
Dollar increase in the expected deficit.
Exactly and and that's because.
And -- recession -- revenues fall and also we cut taxes you know the payroll tax was cut lots of business taxes -- cut.
He -- specifically to get more money into the economy the government took on the debt.
On purpose.
To try to get more money into the economy so revenues fell and that's that's the automatic stabilizers that that work in the in the federal budget.
They're really smooth out these kinds of recessions and you know it's good thing that they do that the revenues -- down.
And that we we are able to spend on things like food stamps and and and Medicaid to really help people out who look for no fault of their own have lost their job.
But I -- Rex Nutting of MarketWatch.
Can you point out that after adjusting for inflation spending under Obama is falling any one point 4% annual pace.
The first real spending declined since the early 1970s.
Yeah I think that that you know of that I think that's shocking when -- with the numbers I just actually couldn't believe that that was true that that we -- real in real terms which is you know the thing that -- -- out of step that the government can buy.
Because we know prices go up over time.
Did buy it they're buying less now than -- but before.
And and the need is greater because population is bigger.
Because we're in this big hole the recession that we're still trying to figure out.
And we just we just not keeping up with the -- really.
But now the question is how does this message get translated because it's so hard to break.
Years old stereo -- and -- disabuse people of the idea that.
The liberals the Democrats Obama or big spenders not sure that can be accomplished we now in November and an election.
Well you know I think I think part of it is that people just believe what they believe and you know I found a lot of -- You know people who who emailed me or wrote comments -- mine on my column.
There response basically was just I don't believe this.
You you and and you know I can understand that because.
We all have bargain you know and Brad you know biases so that things that we really -- -- to be true and when.
Were confronted with something that you know contradicts that it's hard to let go.
I think this bill that Democrats need to do that a little bit better job of that I think.
They're -- remember Republicans of -- have been much better messaging and.
Yeah and you know -- you know consider that Obama has cut taxes I think most people don't believe that.
-- -- a critical in the last segment well you know Obama's raising taxes and he's gonna raise our taxes again I mean he's -- -- -- -- -- -- percent of working families.
He's talked about wanting to raise taxes or we reverse the bush tax cuts only for the riches this segment of the population we have -- able to do it.
-- and they are compact tax hike coming two picks they're for the health care but that's mostly on the the very wealthy as you say.
And you know that the -- is hard to get out when it contradicts what so many people believe in the heart of hearts must be.
Or was it your -- to do this -- to come out with this to kind of find out what -- You know it was their way to reverse this this mean that we have we would -- the surprise discovery -- you.
Well I'm I mean you know I think -- and -- you know to.
You know frustrated by.
The campaign and the rhetoric about about Obama is.
Fiscal plans because it just seemed so.
Contrary to what I was looking in the actual data that some of them that a reporter for a long time I -- -- Freddy's back you know and and so it was just frustrating to me and I finally decided by just you know somebody should should actually just see what the record is actually if there really is an internal spending and I know.
3.5 trillion -- a lot of money.
And maybe it's too much we should have that debate.
But US publish whatever the findings where he -- -- and have a particular result.
No no -- you know.
That the more interesting they are the more likely I'm -- -- -- look at a lot of things then and I don't find this story there -- so don't write anything I want.
Have to write things that the people find interesting or important so.
But I wouldn't you know massaging the data in -- in any way to try to come up with.
Cinema man bites dog story you know had to find hits a liberals the Democrats Obama not big spenders as men but it's hugs the yeah.
Yes -- that the Democrats are terrible on the economic issues because if you look over you know look over history.
Under present democratic president the economy always does better unemployment rate is so -- -- stock market -- -- was better.
You know -- that that deficits are always -- You know it's just like them every one of these measures you know historically Democrats have been better -- maybe they've lucked out by by.
You know presiding over boom times like the 1960s.
In the 1990s.
Of the -- -- but.
The reality the Republicans just don't do a very good job when they get into power they think we tend to have recessions when Republicans continent.
And but nobody really believes that because we think that Republicans must be good at this because they're so friendly to -- of.
Well I'm excited I thank you very much for what you didn't and then after coming on the program to tell our audience about -- -- thank you very much for your time alright thank you.
