Should US look to China for economic advice?
More government spending needed?
- Duration 8:58
- Date Aug 4, 2012
More government spending needed?
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The first Democrat telling large -- -- you didn't build that now Elizabeth Warren is saying this.
China investment 9% of its GDP and infrastructure him.
America weren't just 2.4.
We can do better we can build the foundations for a strong economy and get people in Massachusetts to work -- right now.
The former assistant to President Obama who is now running for a senate seat in Massachusetts.
Saying we need to be more like China -- to juice up the US economy is -- right.
Or wrong -- her body I'm David has been welcome to -- on FOX so let's go -- focus with Steve Forbes Morgan Brennan.
Mike goes any Elizabeth MacDonald -- Conger and Victoria -- so Steve is China.
Our economic model.
-- -- Thanks Elizabeth Warren and -- kind we don't have the money that China has second China's trying to catch up to us.
Third if we wanna spend money in infrastructure we should tap the private sector which probably would not make her happy Indiana -- that with a -- wrote.
And how about the highway trust fund set -- wasting money on things like light rail.
Let it go for highways so if you want real reform remove the obstacles to building infrastructure and repairing it which she also -- environmental -- what obstacles in the way for.
So Morgan if we want growth here we don't have to look abroad particularly on -- China so that we just have to get back rural roots I don't think -- necessarily directly comparing us to China and saying we need to be spending 9% of GDP.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That construction industry has lots more jobs than anybody else five million they're.
All right we got to look at around.
And how effective it is for the government to be spending all that money right I mean Elizabeth Warren I mean come on -- she's talking about raising taxes already to cut the deficit by one trillion.
And about how much does a really bad example they've got a country that's littered with ghost towns they've got 230 airports the majority of which sit nowhere near any of those towns.
And by the way 9% really China's spending 9% I mean this is that their numbers are so -- over there it's like being called the people's republic of Enron.
So you know I would say yes infrastructure spending by the way new game torturous for a -- running in a way it was for it.
You know use -- GSA should just sent some of those buildings then you know maybe get some infrastructure good spending -- -- some savings is religion.
-- -- should we be more or less like China.
It's not about that this is not high school folks it's not a bad if China if China jumps off a bridge you gonna jump up and hundreds more.
It's reacting to Elizabeth Warren -- she -- long Rick she's right that we need infrastructure investment and all of you seem to be agreeing with that's -- I don't know what the problem is.
Look we don't our government's doing that great a job that's a problem weren't look there's no getting around the fact our infrastructure is completely falling apart it's gonna turn this into a Third World country.
Do we have problems paying for -- yes we don't know that.
But guess what would we not all agree that we can't afford not to make this and that our if we're gonna have business going forward into the future but.
I goes -- into question is whether we should become more like a Third World country like China which is spending so much of its GDP.
-- on infrastructure should we do that China's policies -- David it's spending money on infrastructure in cities where nobody lives.
Japan tried this is a means of getting out -- recession fears and it also failed before there's a country -- want to emulate.
It's -- already they actually retracted their government spending their GDP now is growing -- 10%.
Compared to only one point 5% the United States what I wanna I wanna emulate you and I can't -- -- -- I think we got pretty good to go back to Victoria you know the fact is is that what GMAC says is true.
There -- a lot of stats to come out of China that you can't believe in the more we hear about there.
High speed radio program for example which is pushed by President Obama is part of our infrastructure build out.
The last god bless -- good it seems I -- there's a lot of problems with -- high speed rail and that's just the tip of the iceberg.
Absolutely and that's factual problem when you say -- We -- talk about fixing our ailing infrastructure.
When you put that money in the hands of politicians they're not gonna fix the 101 here that's a mess we're gonna put us or creates.
They're they're gonna they're gonna create a new high speed rail that they can put their names on that we don't meet definitely wanted -- -- -- that ends up going to the wrong places and it takes for ever.
Those shovel ready jobs even the president has acknowledged they were not shovel ready -- -- that money hasn't actually created jobs.
It is an ethics for job that isn't -- thing.
Liberty and our client that's actually a great hunger we're gonna answer your question a problem and I think what -- getting to is that when you put it in the hands of the government they spend it in the wrong places they spent it on high speed rail systems that don't work in China they spent it on Windmills that don't create the jobs that their claim to create.
They spent about a lot of things rather than the roads and the bridges and that's part of the problem right tell us who would have that's our infrastructure and unless and but -- -- this -- -- -- -- the government should not be allocating billions of dollars and it doesn't have Steve on Camby who say Steve private industry.
Hey I'll say it private industry yeah.
Very got a public private partnerships and tap private capital they'll build highways still make money off the highway is the keeper maintained because it's in their interest to do so.
-- politician to -- things from the next election Morgan is about Jumbo I.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That partnership still means public spending.
And it doesn't have to be a lot of public spending doesn't have to be China's level of public spending on infrastructure.
How about you -- just guarantee you can guarantee loans so private sector to add ons yeah.
He acted on -- isn't it about again allocation we have we have a government that is spending money on things that don't work like Solyndra like Windmills it up like these high speed rails I mean that's the problem is -- -- I did it add vice president Biden's whether his nation.
Plan that only created seven jobs after millions dumped into New Jersey didn't work.
In a look at I do agree we need to fix our roads and our bridges and just have been doing that great of a job a bit and the other -- threatened structures spending that be really great is get the oil and gets to the industry up and running with more pipelines and more of our energy Houston -- -- -- -- state -- point instead -- go to -- OK Victoria one of the problems is that that it used to be the job largely not not exclusively but largely of.
Communities states and communities to fix their own roads now the federal government has come and as they have -- unemployment and a whole lot of other things to try to fix it and and they have in many cases done just the opposite.
All right I I think they have on the up the -- -- -- that's the federal government what we have for members we are debtor nation to China.
Right we don't have the luxury -- looking at that the country.
That we owe money to in saying we wanna spend like you and it think about an individual doing that it just doesn't make sense.
-- you don't have the money to do it now isn't any better grow our way out of our problem isn't it better to put these projects in the hands.
Of the local governments who'll watch over these projects more carefully than the fats of course senator there's an entire fallacy to the Obama administration's notion.
That spending is what creates a strong economy and jobs its capital formation and businesses.
Creating companies are expanding their businesses.
Don't forget the reason why we went on this unprecedented borrowing and spending bids in the first place -- because the president told us he needed to do it to keep unemployment less than a person.
But the only just found out Friday that actually went up to eight point 3% -- -- -- talk about it at the exhibit is my second biggest point about putting at the local level now.
We risk having more politicians -- in their names and bridges and you know roads we're gonna start -- Uzbekistan.
So I think get the job done well I didn't lose Pakistan so I would know what we're gonna be better to local communities to care most of these problems.
I am totally OK if it's local if -- -- hit -- but you know what we're sitting around here complaining about having government doesn't do this it should be this meantime.
Bridges are falling down don't you think it's time that we actually pick.
Well -- music you taught us they claim there have been I believe that.
If if that date positive direction and sockets from this president from running up one and a half trillion dollar deficits and I don't -- little ahead as we he would wish cricket when administration's -- programs for infrastructure and they did and I can go into -- -- chapter and verse.
And congress to separate what is congress as well so I can't end this stuff that they have submitted it has been approved a lot of money's been wasted too so that's a whole other story -- tax.