Steven Rattner: President's economic plan is working
Fmr. Obama administration adviser jobs report, fiscal crisis
- Duration 11:26
- Date Jun 3, 2012
Fmr. Obama administration adviser jobs report, fiscal crisis
Also in this playlist...
This transcript is automatically generated
Joining us now what they 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 back your -- crash.
Voters hold President Obama 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 -- Because President Obama arrived to find 700000 jobs -- month being lost in this country.
We continually 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 were not even have this level of job creation are it will.
Let's pick up on that because the president and his teams said Friday that it is quote.
That the country continue the Obama policies for economic recovery.
But let's take a look at those policies since the president took office congress has -- is 831 billion dollar stimulus.
The 193 billion dollar 2010 tax act and -- 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's -- more of the same.
The probably -- these kinds of discussions is it's all compare to what what would have happened had these things not been put in place.
-- at the stimulus program that you referred to has been studied by bipartisan economists like Mark Zandi 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 discuss -- bipartisan everybody wanted to extend bush tax cuts for another two years everybody and agreed that apparel tax cut.
Would -- -- -- think if I'm president wanted to extend the bush tax cuts are ruthless force two is part of a 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 such -- 9000.
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 data.
-- particular we are so 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 -- threat.
That we're gonna go into another actual recession and does the president need a new economic plan.
Including some early action on pac -- 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 remember that.
We have very important sectors of -- economy that are not position contribute to our -- 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 it's probably Europe and what might happen there that is the thing that could -- us further downward.
With respect to the president's plan whether he -- 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 we respect your third question about tax would get into 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 -- -- to going to be next year not knowing how the government's gonna function next year.
The lack of action -- respect all these matters on Capitol Hill is very disruptive for our economy.
Do you think the president's continued bastion 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.
The private equity as 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 a situation where you have a relatively few number of people doing so well.
And the rest of the country doing so poorly we need to find it not let's -- redistribution policies -- policies Allah help bring up that the 99% we're not participating.
Since the president has started attacking Romney for his record on Bain Capital and number.
Democrats targets including you have defended private -- -- -- this week.
I'll call on the big so -- it weighed in and defended Romney's experience if not his ideas take a look.
There's no question that -- to get -- go into the office and you know.
Basically informing them.
Essential functions of the office a man -- 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 somewhat greater insight into how businesses operate how business and and make decisions to hire and to -- 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 take three years in the trenches.
Fighting this economic -- 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 -- What is wrong with the pace that Romney idea and I'm not would -- going to be going to the deacons but the basic idea cut taxes.
But tax reform your lower everybody's tax write that you also.
Close some of the loopholes so it's at least revenue neutral cut spending cut regulation and basically.
Get government out of the way let business do extra.
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.
Probably 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 they need it does say that there would be neck and capture are okay 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 -- 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 happy.
Well well it has only become really a -- issue in the last year -- -- since the Simpson Bowles commission -- in the Super Tuesday place.
I -- he came into office and people were talking and we blow all know -- social security and Medicare.
Where did ticking time we have all known that but the Republicans haven't had a plan until recently I -- the president.
OK but he had other things -- -- -- -- more urgent the stimulus act with you can we can argue about his health care plan with an argument is Dodd-Frank bill 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 dealt.
You to grade -- -- he has not come up with a credible plan I mean did you may not like the Romney plan but at least he's got a plan and entitlements the president -- 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 cost today paying 68% of their cost.
Is is -- is a better plan.
Then a commitment to do something or -- you're gonna have landed all you can say that but but I do believe that President Obama recognizes the problems from time and I I -- get and other equipment and briefly you know that the Ryan plan has been changed and it now as a -- it is -- compromised.
With a democratic senator Ron Wyden which allows people to stay in Medicare.
Yes but I don't really understand how that works because if you allow people to stay in Medicare and they say than what have you actually accomplished you haven't actually cut your Medicare -- -- I -- I think at some.
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 -- the taxpayers.
-- giving it freely to his friends.
A few days ago you said something similar.
While I don't think the government should be in the business of what some people call industrial policy.
-- picking winners are creating make work jobs and things like -- up.
-- -- -- Well first -- -- as you point.
On the last segment Massachusetts and engaged in exactly the same practices -- are -- technologies the solar energy company.
In Massachusetts fund with a million and a half dollars our President Obama was -- Went bankrupt on Friday so that this -- is not an isolated example 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 that'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 -- idea that -- Obama came to Washington with.
And suddenly adopted for the federal government.
But he certainly embraced it and especially in the -- -- where he personally went out there.
He he's he embraced the idea of these kinds -- investments -- was not a political decision I I actually didn't see Solyndra happen 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 you think is very hard for anybody be -- venture capitalist level on the government.
-- I I'm on being on thirty here because I didn't realize we've only got a minute lap but I do wanna ask you -- -- former -- -- you just for the discussion that I have with Ed Gillespie about the auto bailout.
He says Romney says that -- that Washington basically followed his advice and managed bankruptcy.
-- -- Completely false and what Ed Gillespie said 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 recognized that remember that the first seventeen billion.
That -- 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 that is a fact I was there President Bush was there.
It would have been government it money or nothing benefit have been nothing.
As you -- but it was -- it would have been worse than what you said the company is 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.
Spoken athlete there's Steve thank you so much for coming in today -- -- -- -- thanks for having me.