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Treasury Dept: US debt officially hits $16T

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    Former White House economic adviser Austan Goolsbee weighs in

  • Duration 5:03
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Boston -- -- -- right now the presidents and former top economic advisor.

You -- like to see the guy under whose watch and a milestone is hit what do you think it means it's -- limited.

Well amended the milestone of of big government debt.

Has virtually nothing to do with two reasons the deficits have been large in the last two years.

The long run fiscal challenge facing the country as you've highlighted many times.

Are associated with the aging of the population in the rise of health care costs in the choices we've made about.

Tax rates and on all of 53 and and and under this president's wives.

For about a third of the under his life.

There are ways to explain it quite right it's not something you want to see so his -- -- commitment.

Yes.

-- -- Fact that there's Congressional Budget Office is saying the deficits going to be record breaking before.

Obama has ever even got into office is I think a little.

Indicative of what that true.

Reasoning of the increase in the deficit is which is we had the worst economic downturn of our lifetimes when you surprised how do you address that I know that you can't use -- network as well as some Dallas -- use you Louis since you left Washington.

Couple trillion more has been added and I and then maybe this is just the inevitable direction and Mitt Romney can't slow -- stop it.

But do you think Democrats to tackle this issue head on and not hide from all that I don't think that they have hidden from -- -- that they cheered.

There's no reminded -- believe it's not on anyone's platform rather then.

Engaging in -- level the same gauge on what should be done what all right I don't I don't want Iraq cities -- The treasury has just made this official and it does seem a bit ironic on this the number dirty so that we have according to the United States treasury -- -- the sixteen.

Trillion dollar debt level collectively what we -- as a nation now.

Going over sixteen trillion dollars -- Republicans -- actually pitching for this last week no doubt in Tampa.

I think -- politically they're just as happy to see it happen the Democrats kick off their convention.

Here in Charlotte but to be fair and is -- points out I will go back to him but -- who -- you tuning in.

Sixteen -- trillion dollars in new milestones to put that number in perspective it's a huge sum is Austin.

Has reminded me many many times but he would be like spending 907000.

Dollars every -- since Jesus Christ.

Was born and you still wouldn't come quite up to sixteen.

Trillion dollars now the question Austin.

Is what you do get that under control.

-- look and they are.

Food Romney plan that they have outlined.

Would make that substantially worse is three to five trillion dollars of tax cuts.

That you try to pay for.

In addition to whatever deficit reduction -- you -- not part of the Ronald Reagan school that this spurs economic opportunity brings a lot of revenue and the government tax cuts don't pay for themselves we've got.

Decades of evidence on that fact.

It into a -- -- they do spur growth today and -- look they've they didn't depending which rates they are they can spur some growth.

They do not in any way.

Create a Laffer Curve that generates its on revenue of say you know I don't give you went through the -- of how does would you talk about it a lot of -- they get a big deal of it's not a big deal.

I would do.

Something like the grand bargain that the two parties almost did last year and I hope that they can revisit that and do it into when he thirteen.

And I think to do that.

You'll have to have some revenues and you have to have a lot of spending cuts and you'll have to address entitlements and discretionary.

And a whole bunch of things like I did it end here that commissioned one makes you drink.

Not true moment president as well I don't know what oh and by the way Republicans are -- better.

I believe that.

In reality the Republicans were far worse he didn't do everything -- president is -- stand behind it all stuff I mean it was his commission.

The president -- did it was his commission.

The Republicans voted in the house unanimously against it preventing it from being able to serve as I -- about -- But don't get a new president didn't really Palestinians that we are -- -- of -- -- -- the same time.

We might have been different.

I don't think so -- you know that the president said the president embraced three dollars of cuts one dollar revenue.

And the amount coming out of -- Bowles Simpson commission.

And it felt to me like the Republicans said we won't tolerate any revenue.

And if you have no revenue you don't have a balanced plan that was a whole essence of Bowles Simpson and that the president I think.

-- but it is what it is you don't dig this will be a serious issue for the president to worry about a little I think it is seriously if you and I think it will -- the president.

Most likely to say I'm still up for doing a grand bargain if you guys -- -- do it and that and we almost had it.

I hope that the two parties could come together and do -- -- awesome -- the presidents of former chairman of the economic advisors.

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