Fall off financial cliff to fix mountain of debt?
Argument against avoiding tax hikes, spending cuts
- Duration 8:08
- Date Aug 18, 2012
Argument against avoiding tax hikes, spending cuts
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Playing off the fiscal -- could fix our mountain of debt.
Forget all the calls to avoid those massive tax hikes and spending cuts kick in in on January 1.
Someone -- says you wanna cut.
Hi everybody have shut the sunny looking to cash in -- I cast and crew this week we -- writers Jonathan Hoenig Tracy Byrnes and John Layfield and Johnny doesn't -- -- and Lloyd -- so what all of you.
-- it's the most famous video clip of the week to rebut -- -- -- -- in the drivers in this car.
And greens and -- -- as taxpayers we better rocket week while law.
The fiscal Klan rally.
I think we city is that found little leaves Clinton Shaq I'll athletic guy.
It that is the only way we're gonna take our medicine and finally understand what's happening.
Let this spending cuts kick in -- people start to feel what it's like we cannot keep pushing this off and extending and borrowing from our kids future.
The clip I say we go all right Jonathan but on the other side of that -- concerns about what actually take -- Our country and -- massive depression.
Welcome Cheryl reality exists you know we've got the sixteen trillion in debt you've got a hundred trillion in unfunded liabilities and got its culture of spending.
Taxes and more regulations so.
We get a -- -- reality but we can't evade the consequences.
Of evading reality and we see that playing out real time in Europe where just those ingredients.
And create an economic implosion and 20% unemployment.
Essentially total economic class -- -- so whether we deal with it now histories is that take our medicine now or later reality will eventually kick in and the results are anything but pretty.
And examine that it is a massive cuts -- we're talking about I mean it's defense spending fifty by billing cuts.
And defense programs the -- by dialing domestic programs the marriage tax penalty -- on and on and on about.
These -- Does this hurt the economy if we if we just -- at the that the Clinton -- -- says -- ultimately is right over.
He's such a bad idea to -- -- do this.
Right now to the -- -- economy I remind the world's second largest economy -- is -- is also as the -- problems involuntarily as it left.
-- -- -- -- -- -- But right now mr.
Bernanke and no -- no opponent -- -- off this look at.
When you don't have to keep -- about a hundred -- -- -- already getting it anyway wait what do you think about all of us and we are talking about congress which senator.
-- how -- I'm laughing because did.
It requires political courage and there's no political courage in the congress whatsoever I.
You know eventually we all have to pay the piper and they're not willing to.
-- the president even what's up what the set up Simpson Bowles.
That was a commission that made -- report everybody -- do it and and what they've with the report came out everybody turned their back on it.
This is this is them ridiculous conversation if you really think about it in the sense that congress is not gonna do -- thing.
Nobody is going to do any thing.
Even when they have to do then -- to kick the can down the road so they'll cut some.
Spending they'll raise some taxes and they'll mealy mouth their way through this this thing until the people rise up and do something about it and -- a Malibu.
What that white had disappeared -- on how to take this to John -- because they're gonna have to do something but because of the election the thinking is among many on Wall Street frankly but they're gonna wait until after January 1 to make it retroactive so we will not go over the fiscal.
-- is that right Stratton develop we think is gonna.
No it's not the right strategy -- business plan usually three years -- advance at the least they -- won here in advance.
They have no idea what the economic landscape is gonna look like next -- -- -- always gonna look like.
You wanna know Wayne is 100% right look at what congress did with the post office they're looking at a five billion dollar default what do they do they didn't.
Big and ruled -- they didn't deal that they needed kicked again and they went all vacation.
But got another default coming up there's still on vacation that's what they're gonna do with his -- -- we've got to do something the right budget -- Obama budget bold.
All the -- trying to rein in future spending we've got that.
Somewhere had got the -- and fun.
-- a good time to take your medicine up there's never did and glad I've found.
There's never -- -- -- to quit smoking but sometimes you just have to do it already because otherwise it is going to continue to spiral out of control.
The guys are gonna do anything about it though they're gonna push it -- gonna kick the can -- -- whatever that they usually do and we will be in the exact same spot and another six months to a year.
And the economy we'll continue to stall because of it they -- and again these are some serious.
-- programs with regards -- be spending cut into some serious amounts of spending that we're putting out there sixty trillion dollars in debt.
Education assistance that's becomes taxable federal jobless -- it benefits for the long term unemployed that -- There's so many things that are unpopular programs that they could cut and they could do it now.
I think it would be very dangerous to do it now in the short time you're -- America you know I come from a country which is and eight -- trouble.
Median time you action actually have to get to grips with deficit reduction and we're -- Republicans and Democrats gonna have to compromise.
What you got that that's gonna have to check sacrifice across support that say Chris Christie talks about.
And yes you -- accidentally going to -- -- cut spending but you'll think he has revenue increased.
And most economists agree on that but that's -- time short time he'd be crazy -- -- the -- Energy and use traces of medical metaphor if you were sick would you want the -- -- to in the short term tell you we're just fine but in a long term that you that medicine -- know you want the medicine right away.
And then you have also might not -- -- -- -- connecting fiscal suicide.
Right now let me let me let me let me understand.
We're committed this -- -- if we continue to spend more than we happening to me now you get right now median time -- -- Well I'm gonna look it -- it -- Elian -- estimates about how long the next day app sensitivity after the it's not an X and all right now yeah I don't know anybody.
The political courage physical rugged little guards -- -- talking about it when you're not a politician or is not a collective backbone and worked in DC right now of course there's not a politician DC they're -- of five week vacation right now.
Whoever brings these -- -- we had a bulls' biggest stimulus in the history of mankind one point three trillion dollars we don't have we put in music I get -- Bob Harlan and -- you know -- that's -- radiant but politicians don't wanna do this because whoever does this it is going to hurt even go to the right thing long term.
There election chances on -- planet ever that ever -- got there right now and whenever you -- -- -- -- As well studio set you know that the biggest stimulus in the history of the words stimulus and unemployment come down essentially one peak -- percent from the high.
Listen we don't want wealth created where does that come from has gone from government spending what is -- come from free enterprise and private voluntary trade.
That's the essential question yourself what -- we get to the actual meat of the matter is -- created wealth instead of just trying to reduce.
I just on the C I think one of the reasons that we are having this discussion.
Is that the fact of the sixteen trillion dollars in debt is considered a threat to the economy because this is getting out of control like they've seen in Europe.
We don't want to be your up.
Well we all know back.
We know this.
This is obvious everybody knows that it's just that the politicians will not recognize it I mean in 2010 you had 19100.
Firm's lobbying firms in in Washington employing -- 111000 people who what paid 3.5.
Billion -- that you think they're gonna do -- -- no.
Because they don't have to nobody's voting them out of office but eleven a different world -- we do they go they have a different Clinton planned they have a different health plan and the people in the congress have -- themselves of the league that's above the public.
When Nancy Pelosi sits would go ahead and pass the bill and we'll tell you what's in it after the fact you've got morons running the country you gotta stop that.
Pats have now read a letter.
Yeah all right guys they -- much great discussion well.