Spotlight on national debt ahead of first debate
Former Reagan economic adviser Art Laffer weighs in
- Duration 5:21
- Date Oct 2, 2012
Former Reagan economic adviser Art Laffer weighs in
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We don't have to solve the debt -- we just have to show the world we're serious about tackling the debt mess -- Bill Clinton.
Sometimes that's all you need a plan but doable plan a plan that's enough to get the markets believe it.
And the ratings agencies the whole book downgrading.
Maybe get investors buying and have Americans feeling more confident.
My point is that you don't have to wave a wand and tell us how you're going to make all the reading disappear overnight.
All you have to do with state a plan how you start that process.
Tomorrow -- The former Reagan economic advisor art Laffer who remembers well how Bill Clinton in that and how Ronald Reagan did that you don't have to necessarily.
Change things immediately you just have to give a plan that makes people think and hope and pray.
That you've started the process right.
That's exactly correct I mean yet.
Italian you need to get growth DL you just have to get growth you you can't balance the budget on the backs of the unemployed in the poor.
So that's -- a flat tax comes and -- -- also attract the capital from abroad.
Sam Nunn was exactly correct as well you've got to cut government spending.
That have to happen especially entitlements where you pay people not to work.
But there are lots of other ways to bring that national debt down -- some pretty cool ones for example how about a federal state and local tax -- -- -- program.
There are a lot of people that are in the underground economy that would be brought above ground -- amnesty program my estimates are.
-- a federal state local tax amnesty program would raise about 800 billion dollars and ninety day -- You can also sell some assets off.
I -- Camp Pendleton goodness knows how much that is but it's 500 square miles -- California southern beach property.
You've got all that gold in Fort Knox I mean it's no it's even seen it since.
-- you know aren't you break had a good -- you know you risen above my point is this that when you say it's too big to handle you do you you're missing the point it's not right you can't cut a sixteen trillion dollar debt.
But you tell lured you away from it and I think what we're losing sight of -- -- and what Bill Clinton learned in 199394.
What's that if you present a plan that looks credible like you want to reversal -- direction.
Sometimes that's creates a boom in an -- itself it inspires confidence in the markets like that have little confidence right now and -- -- both parties by the way.
But if you give them a guide posted show that you have now planted your post.
You will be off to the races I I hope and I want to see that to you -- -- well -- well.
I don't know if you Weller got I've been -- you know I've been waiting for -- to really come hitting the growth agenda.
Low rate flat taxes spending reductions and some of these other ways to bring the national debt down.
I haven't seen to be forward.
I mean -- that 14% tax rate came out -- I thought he said.
I'm proud of a 14% everyone else should pay for 9% so.
I shouldn't be the only 1 and I am proud of that you know but he didn't do it that way but I hope this time he does.
If he does the growth message ala Ronald Reagan he could win this election.
But it's got to be truly -- it can't it can't appear as -- -- apologetic for his positions.
-- the -- alert talking and well that's an area went over the one that I learned on -- is talking to these two.
Retired senators is that.
Surprisingly easy it is justice to talk about a Democrat and -- don's case talking about slowing the growth of entitlements is not throwing granny off a -- a reminder to Democrats.
Another reminder from senator Bennett to Republicans closing loopholes -- credits and that allows -- some not to pay any taxes at all Ronald Reagan would tell you.
Is not a tax hike I.
But but we get so dogmatic about this and so fixed and our positions about this that we're not moving the ball on this tents were piling up four billion dollars today did the debt because of the.
Exactly it and Sam Nunn didn't even mention me just talk about the -- treachery.
But if we get the tax rate reductions in the broad base -- -- say Simpson Bowles.
You're ready get so much faster growth of people are gonna get jobs -- be taken off welfare.
Because they have good high paying jobs that go to the tax -- instead of being on the welfare rolls and when you get people moving to -- tax rolls with some of the welfare rolls.
Then you can have a reduction reduce tax rate I mean welfare spending and bring it back even faster.
We you know it'll look -- firings competence and Ronald Reagan did that -- -- did exactly what their balance -- But but this this idea that we can't do it and certainly when pundits say neither candidate should he did touch it tomorrow night.
I think get off to the core of the problem and an end and end of the -- both parties -- if that's the case.
That is exactly correct this is the issue all the issues that we're talking about -- economy are encompassed.
Inside the national debt argument.
You can answer those things you can get rid of the -- -- -- liabilities as well just the way we did with Social Security under Ronald Reagan.
By extending the age of retirement by reducing benefits by subjecting half of them to the income tax.
I mean there are lots of things you can do to really bring this economy back and fairly quickly in two terms you -- bring it back just the way Reagan did about the fact is but yeah.
And -- I got way out of it you -- -- your way out of the but it is possible aren't left for you all big proof of that but thank you sir.
The former Reagan economic advisors --