Consumer confidence tanks
Tax hike threat to blame?
- Duration 8:43
- Date Jun 2, 2012
Tax hike threat to blame?
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Competence tanking and the jobless rate -- -- as the clock keeps taken towards a massive tax hike -- the end of this year.
Do we need congress to accept -- tax cuts now to bring back jobs and consumers right now -- hello everyone I'm Cheryl Casone.
A -- of that passionate.
-- passionate -- this week Wayne Rogers Jonathan Hoenig Tracy Byrnes John -- and also joining us this big democratic consultant Julian Epstein -- What about all -- -- Tracey she weighed just extend the tax cuts commit to quit now and get it -- -- I mean -- -- -- utopian world -- yes but we know how these people work.
And unfortunately it's never gonna happen -- -- -- is palpable these days.
No one knows what to expect about anything.
We have an anti business administration.
From growing regulations -- left and right.
Tax is are potentially going to go up.
Only gotten come the end of the year that is uncertainty like you can't imagine how do you possibly plan John David that would help the jobless situation -- this country right now there were to commit to extending those tax cuts now.
Now because you wouldn't feel it right away I think American sentiment is his lowest it's been in years you look at the labor participation rates the lowest it's been in over three decades right now.
People -- word about jobs you gotta have a job before either pay taxes get taxes -- don't you.
Or any thing else and that's what is worried that people right now the economy and they know this congress is more worried about and -- stated all our president Obama's birth certificate that they are getting something done with as a comic.
These guys are absolute both phones and that is weighing on consumer sentiment.
And you know what -- to John's point consumer confidence and an eight month low in -- consumers aren't -- -- not businesses are not going to be confident they're not gonna -- maybe congress can't change that.
Well there's a lot of things congress can do but as a matter of fact and to Trace his point.
Taxes are at about 15% of the economy about fifteen -- GDP which is a historic low.
And the idea that people are worried about whether taxes are gonna go up on people on millionaires or people above 200 the apartment thousand I think it's a little bit silly.
You know it's true that there has been a dip in consumer confidence but consumer confidence is way up from when Obama.
Started in his administration -- two other indicators the Reuters indicator.
And the Bloomberg indicators show the consumer confidence is actually up you know I think -- right.
The reason the reason why people are concerned right now is because wages middle income wages have been stagnant for -- -- And until that changes your gonna see confidence you know.
Kind of at this -- kind of stagnant face it it it's it's better than it was when Obama came in but -- from -- I don't show up quickly -- line of credit percent of those tax hikes will be on the middle class or lower income people.
Not just the well right back here Wayne Rogers -- get you in here let's talk about this issue of whether or not having blood wages are low we saw that in the manufacturing sector earlier this week's of people are making as much money.
They don't feel -- confident but if those tax cuts were extended small businesses Wayne could in fact.
Potentially start to hire her again -- -- -- about their hiring.
Well yes -- -- because I you I mean you look at the jobless report that occurred on Friday Eddie Edwards is it was a terrible reported to have.
It could it that's one of the things it destroys companies you keep seeing.
The jobless rate going up as opposed to going down its -- have all of the guys who -- keynesian economic.
Theory you know who advocate all government spending government -- -- you've got to cut spending as well.
As as the -- you can't just say okay we're gonna let taxes go way but if you don't cut the spending.
-- -- -- -- -- you know Donna that I Wayne's point in out of this fiscal -- that everyone keeps talking about let's get ahead at the and it's one it's wallop.
Is the tax cut extensions.
Expiring and then also the fact that they may be spending you've been more into the we're going to -- -- -- Well I mean sure how can you have much confidence in a big spending government with a collective this mentality an analyst entitlement programs -- exactly we have.
And as you point out it's not only hurting consumer confidence but I think even worse scare early.
It's hurting producer confidence you consumption is is the end of the productive process its producers it's the people who invest who innovate and take risks to actually power the economy Forward Industries -- pointed out.
A lot of those are not millionaires and billionaires -- Joseph six -- But just a couple of thousand dollars in a 401K and mutual fund if they're making 50000 are gonna have -- pay 2000 dollars -- more in taxes.
That type of activity doesn't inspire confidence in any.
You know Julian I mean again to what Tracy said it also -- Jonathan is saying here you would think in theory that confidence would go -- again it was an eight month low for the month of night.
It would go higher if businesses were confident what -- tax structure was going to be.
Well I don't know I.
Mean that may be true for business confidence I don't think it's true for consumer confidence I think Wayne was right visit and I had a job -- have a job and they would feel more confident nick well let's let's talk about that in a second but I I think it consumer confidence relates to what's in front of their notes namely.
Their confidence in their in their financial future in their ability to spend.
So that's point one.
Point two just in terms of to defend keynesian economics for just a second which I do.
If you look at the numbers when Obama came in before the stimulus program we read negative 9% growth we're now what about positive too that's an eleven point positive swing.
We were losing 800000 jobs a month when now gaining if you look at the six month averages now -- -- yesterday's figures.
We're gaining on an average of 200000.
A month so I think the evidence is pretty strong it has it worked in terms of cutting spending I agree with -- but you do that in the medium and long term.
And you have to do that to entitlement reform which both parties have grandstand and on and not really taken -- steps on.
But really what about your put lipstick on a -- here are you things are not -- her eight.
Yeah I agree with you are correct things are much better when -- -- -- Obama took all the things are much better is no doubt about that.
But you look at consumer confidence you've got stuck in California bankrupt you it was inevitable bankruptcy they just announced yet California sixteen billion dollars in the hole governor -- -- was projections.
Detroit bankrupt product bankrupt yet these this is killing consumer -- and our congress is just doing nothing to do any.
Think -- you -- got a job you've got.
To various that are growing clusters of the country -- growing economic.
I gonna say did I disagreed this notion that government spending somehow creates confidence I mean people another -- they're going -- share on May not it's the money like going to be -- to -- -- Nazis if by militant is.
Islam is going to feed this monster which is government so -- that's I think that the real issue here is that money being taken out of her private productive sector millionaires and billionaires and think -- -- Washington DC to literally be -- the white.
Let's not forget about the looming debt ceiling look common -- Many people have -- figured their own personal finances to make ends meet and we're not seeing happen in Washington.
And we -- going to be days you'll -- again at the end of this summer talking about this debt ceiling fight again you -- market tanked yet again.
That's the confidence that that people have this economy right now I'm not waned that brings you back -- to my question and that is if we are seeing such as as it's a shameless.
Jobless figure and a shameless consumer confidence number congress could do -- -- -- -- commit to leaving the tax code alone leave it as as and then everyone would know.
What the future looks like why is president us hard pill to swallow.
Because they're idiots and they are both full and this who've -- basically did you have you've got -- -- That you got an IQ you've got an IQ and congress -- minus 35 that's not individuals that's the entire.
These -- people.
These are people who have not read history these are people who do not understand economics whatsoever.
They just spin because they don't know any about it -- but.
When you've just got finish you and how important it is to cut the deficit and you've got Republicans like Alan Simpson out they're saying.
You have to compromise on spending in on taxes so where's your compromise on what actions wet -- don't really Ali no doubt hear what you say you do.
Where you're compromised.
-- go ahead and let let middle that would let me finish placed there's the the the sense -- -- report was totally ignored by both parties.
Both parties ignored mr.
the president nor did they did a report it was a very good reported sound economics on both ends of that.
I'm not to argue that Democrats or Republicans I'm talking about how did -- correct.
What the economy is doing.
They get a very good report nobody paid any attention to it so you got morons up that people as I saw let's have a commission let's do something and they have a commission they write the report and nobody pays attention so what's your position on what's the senator Simpson's at contacts and both -- is ignored bug that -- it way to activate Moroccan immigrant John Allen David -- incidental as a couple as a brand take a break the residents.