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Joining us now -- -- democratic perspective on the economy is Steven Rattner president Obama's lead advisor on the auto bailout who is also have a long career in investment banking and Steve welcome.
FOX News Sunday thank you for having -- -- Why shouldn't.
Voters hold president -- bomber responsible for the week.
Job growth and the sputtering recovery that we saw this with why shouldn't they see him as part of the problem and not excellent.
Because President Obama arrived to find 700000 -- -- -- being lost in this country.
We continue to lose jobs for some months as a result of the recession that began before he got here.
And since early 2010.
When the economy job picture began to recover we better before million jobs in this country better jobs every single month since on.
Nobody is happy with the rate of job creation today but I believe that without the policies that the president put in place we -- not even have this level of job creation aren't.
-- let's pick up on that because the president and his teams said Friday that it is quote critical.
That the country continue the Obama policies for economic recovery let's take a look at those policies.
Since the president took office congress has passed this 831 billion dollar stimulus.
The 193 billion dollar 2010 tax act and that 123.
Extension of the payroll tax cut and unemployment compensation the grand total of these and other.
-- one point three trillion dollars in stimulus over a decade.
State of the result is eight point 2% unemployment and one point 9% GDP growth in the first quarter.
The president -- more of the same.
The probably have with these kinds of discussions is it's all compared to what what would have happened had these things not been put in place.
The -- at the stimulus program that you referred to has been studied by bipartisan economists like Mark -- Alan Blinder.
And they agree to -- out that we would have had an employment substantially higher than what we've had over the last two years.
The tax cut apparel tax cut that you.
Just discussed for bipartisan everybody wanted to extend the bush tax cuts for another two years everybody in the end agreed that apparel tax cut.
Would be -- -- think if -- president wanted to extend the bush tax cuts through this for us to as part of the deal I'm saying it was but it was a bipartisan agreement that this as part of a package this was the right thing to do for two years while the economy was weak.
But how do you explain the fact that.
And we were creating.
A quarter of a million jobs a month a couple of months ago and now we're creating -- -- -- house.
That's something we're all gonna have to see what happens we have had similar slowdowns in the spring the last two years we've had this kind of a dip in the spring.
I don't want to get technical here but some economists wonder about the seasonal adjustment factors in our economic data.
But it may be something more substantial we have to wait and see one months battery even two months that a and particularly when we are -- creating jobs even an unacceptably low rate.
How serious do you think and as I say -- have a long history in in private investment how serious do you think as the threat.
That we're gonna go into another actual recession and does the president need a new economic plan.
Including some early action on attachment gotten all of these spending.
Cuts and tax increases that are built in at the end of the year does he need to do something between now and November.
So they've asked a few different questions first with respect to whether we're gonna go into another recession now or not I would say the probability is still quite -- that we'll actually go back -- another section.
We are growing slowly but we are growing.
We have very important sectors of this economy that are not position contribute to our growth government are shrinking.
Housing is still at a bottom finances -- growing this is over 40% of our economy in these sectors are not growing.
The thing to worry about most in the short term is probably Europe and what might happen there that is the thing that could -- us a further downward.
With respect to the president's plan whether needs a plan he has a plan he has a plan in front of congress congress has not acted.
And and the president has limited powers as you know the respect your third question about actually get -- the fiscal cliff.
It would be in the countries and in the interest of everybody in this country if the congress and the administration got together early on a plant business cannot operate.
Not knowing what -- -- -- -- going to be next year not knowing how the government's -- function next year.
-- lack of action would respect all these matters on Capitol Hill is very destructive for our economy.
Do you think the president's continued bashing of Wall Street in the wealthy is helpful when the economy's in such trouble.
I think the president has found the right balance in his conversations about Wall Street I think he has made clear.
A private equity is a perfectly legitimate respectable business an important part of our financing activities.
As soon as you said the same thing about Wall Street.
On the other hand the president has also said.
That we can't be in a situation where you have a relatively few number of people doing so well.
And the rest of the country doing so poorly and we need to find anonymously redistribution policies -- policies Allah help bring up that the 99% were not participate.
Since the president started attacking Romney for his record on Bain Capital and number.
Democrats targets including you have defended private equity this week.
I'll call in the -- -- -- weighed in and defended Romney's experience if not his ideas take a look.
There's no question that term to get number one -- the office and you know.
Basically informing them.
Essential functions of the office a man who's been governor had a sterling business career crosses the qualification threshold.
I know that you think that Romney made a mistake billing himself bragging about himself as a job creator but don't.
Decades in the private sector give you a somewhat greater insight into how businesses operate how businessmen and make decisions to hire and to grow sure.
Decades in the private sector give you an insight into all the things that you speak about.
But when Romney turns around and attacked the president's qualifications I would say three years in the trenches.
Fighting this economic war every single day dealing with the economic policy matters auto rescues bank rescues.
Every single day for three years actually gives you more qualifications to be present.
What is wrong.
With the basic Romney idea and I'm not what you gonna to go into the -- but the basic idea cut taxes.
But tax reform your lower everybody's tax write that you also.
Close some of the loopholes -- -- at least revenue neutral cut spending cut regulation and basically.
Get government out of the way let business do -- -- So.
Everybody agrees that we need to address our deficit no thinking person could deny that at some point not today because of the weak economic conditions we need to address our deficit.
I noticed you trying to get Ed Gillespie to differentiate Romney from bush.
-- is actually quite different from bush as you say Romney would cut taxes 20% across the board without specifying a single.
Mechanism for paying for that tax cut which we can't afford well indeed it does say that there would be neck and capture are OK fine but he's been specific about the tax cuts.
And completely vague about how he would pay for the tax cuts.
He's he has endorsed the Ryan budget which provides from massive reductions in discretionary spending.
When Ed Gillespie talks about us fixing Medicare is actually privatizing about rising Medicare dramatic cuts in Medicaid dramatic cuts in food stamps.
I don't believe myself that this is a recipe to fix the economy well what about how specific as President Obama been on reform of entitlements.
He is not yet been specific I would create a -- -- well well it has only become really a right issue in the last year or so since the Simpson Bowles commission on tour.
In the Super Tuesday please.
I think he came into office and people were talking and we -- all known that says social security and Medicare.
Where did ticking time -- we have all known that but the Republicans haven't had a plan until recently -- -- the president.
OK but he had other things on -- -- -- more urgent the stimulus active.
You can we can argue about his health care plan -- -- -- -- -- frank -- I think all of those were important ten items for him to deal.
In his first two years in office and I think he has acknowledged and recognized that entitlements or something has to be dollar.
You to grade though he has not come up with a credible plan -- did you may not like the Romney -- but at least he's got a plan and entitlements the president doesn't.
If you want to say that having a plan that would essentially.
Eviscerate Medicare and turn into a private program in which seniors go from paying 25% of their -- today.
Think 68% of their cost.
Is is it is a better plan.
Then a commitment to do something in my and you don't know -- landed all you can say that but but I do believe that President Obama recognizes the problems and I mean I I wanna get another benefit to -- late you know that the Ryan plan has been changed and it now -- a -- it is a compromise.
With a democratic senator Ron Wyden which allows people to stay in that there.
Yes but I don't really understand how that works because if you allow people to stand Medicare and they say than what have you actually accomplished you haven't actually cut your Medicare -- aside I think it's up.
I think it's a little bit and a Trojan horse that plan.
This week Romney -- after the president's record.
In so called.
Private equity spending taxpayers' money on companies like excellent let's take a look.
Free enterprise the president means taking money from the taxpayers.
-- giving it freely Jewish friends.
A few days ago you said something similar.
-- I don't think the government should be in the business of what some people call industrial policy.
We're picking winners are creating make work jobs and things like that so.
-- -- -- Well -- as you point.
On the last segment Massachusetts and engaged in exactly the same practices and are at technologies -- solar energy company.
In Massachusetts fund with a million and a half dollars our President Obama -- Natalie.
Went bankrupt on Friday so that the -- is not an isolated example of where the government can actually.
Make mistakes operating in the private sector I think the government has a role to play and encouraging technologies.
And reluctant to see the government acting as a venture capitalists I think it's part remember that programs like the Solyndra program.
Again and the previous Bush Administration they've existed for a long time in the government this is not some us some idea that -- Obama came to Washington with.
And suddenly adopted for the federal government.
But he certainly embraced it and especially in the case of selling through where he personally -- out there.
He he's he embraced the idea of these kinds of investments -- was not a political decision I I actually didn't see Solyndra happened but when I was in the government I -- number of other investments made.
And they were made by serious people trying to do serious things but I do think it's very hard for anybody -- -- venture capitalist -- -- the government.
-- -- -- I'm on being -- thirty here -- I didn't realize we've only got a minute left but I do wanna ask you with the former car -- you just heard the discussion that I have with Ed Gillespie about the auto bailout.
He says Romney says that -- that Washington basically followed his advice -- -- managed bankruptcy.
-- fools completely false and when it the last -- that was completely false the fact is.
There was no private capital available for these companies and not only to President Obama recognize that President Bush recognize that remember that the first seventeen billion.
That went in General Motors and Chrysler was put in our President Bush.
Because he and Hank Paulson the secretary of the treasury.
Recognize that there was no private capital there was no private capital that's not a hypothetical -- -- that that is a fact I was there President Bush was there.
It would have been government it money or nothing and if that have been nothing.
As you said but it was -- it would have been worse than what you said the company would have run out of money.
They would have closed their doors they would have liquidated and it would have laid off hundreds of thousands of workers back is a fact.
We're gonna have to -- dear Steve thank you so much for coming.
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