'Fiscal cliff' looms: Where's White House leadership?
No mention in president's weekly address
- Duration 5:59
- Date Oct 13, 2012
No mention in president's weekly address
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But what one of the things that we do know from the president is that this whole fiscal cliff the issue that didn't come up in his weekly address.
The -- of the auto industry did we do know Mitt Romney.
Was once again referring to this may be more strongly today than he has in the -- -- certainly has come -- prior debates either he gets at what the president.
Was running mate Paul Ryan is that what the vice president.
So this is going to be comedy -- which frankly we're more of an issue as to Scott big deal like the co-founder of Microsystems a libertarian at heart.
Who in his heart really doesn't like what he's seeing in Washington right now.
I always thought that the reason why -- corporate America has it opened its wallet or committed to spending more of its money is because of all of this on certain days.
Is that -- -- just to give in and remaining in those wallets just we're gonna remain closed.
I I think so I think this is a really stark election.
For most business folks in terms of are we going to you know open up the private sector reduce regulations lower taxes simplify the tax code.
Make it easier to start a business grow a business make it easier for consumers to have money in their pockets to go spend.
Or is the government going to become kind of a dominant player and as we creep towards 50% of the GDP in the public sector.
You know businesses are are are stepping back and saying this is very different -- know what we've seen in the past.
Let's focus on the tax side it is for now Scott let's say.
They all the bush tax rates because -- he's big only goes for the upper and double.
The weight -- -- now all the bush rates expire.
Let's say that happens some argue -- yet healed but it's only temporary.
Bottom line it happens.
-- what are you see it happening.
Well that's like a huge spike in gas prices are -- some other.
Situation that takes money out of the consumers' hands you're gonna see.
Earnings fall you're gonna see people getting laid off -- gets -- -- that negative spiral when everybody's.
Worried about we want to we want to put -- money back in the hands of businesses so that they can invest higher and and grow and you want to put money back in the hands of consumers we don't have.
A revenue problem is what we've been saying California some some of a small small percentage of us we don't have a revenue problem we have a spending problem.
And if you go look.
Did it's kind of a steady state that and about.
You know 1518%.
In the public sector you can actually raise the revenues and grow the business as soon as you.
Try to raise more revenue.
From the -- from the private sector.
Than than say 18% the biggest.
Statement has to be we're gonna limit the size of government to I wish was at 15% -- -- 18% or even just 20%.
As opposed to this runaway governments -- you start taxing people you start fill in the area.
That the goose that lays the golden -- everywhere and that's at this.
You know that.
The lower income as well as the higher income -- and that's what's going on right now we get into a stagnation it's you get in this -- were about to stall the economy.
One of the arguments that has more commonly raised it and you know let's say -- a Barack Obama reelected scenario.
Is that everyone take itself so we -- wanna raise taxes on that top rates we bring that from 35 to 39 point 6%.
Despite what Republicans are -- whining about this is the White -- you this affects only 3% of small businesses you point out though that those small businesses account.
For a heck of a lot of hires though so spell that out and it's just the upper income -- -- -- hike.
Well they're all upper income whether you're a business owner or -- what I call the investor charitable class.
And you know somebody like me and there's lots of folks out there who were trying to -- -- today.
Taking the money away from us and given it to the government to spend on pork and buying votes and all the rest of -- and often very inefficient.
Allocation of resources she usually inefficient allocation just look at the stimulus that was a payoff to unions and and and pork and for votes what are what are what what do folks do with their money they do.
They either spend it bush drive GDP in creates jobs and or they invest it which I'm doing a ton of right now to create new companies and and grow people weigh in as an investment.
We did in Colorado -- California because who would want to invest in California right now.
We give it away to charities.
All of those things or we put it in the bank where interest rates are lower and that money has -- out to businesses those -- the four things.
You do when you accumulate wealth given it to the government.
Or having the government -- deficit spending.
Which basically puts a tax on all income.
And all assets in US dollars because we basically are devaluing the dollar -- by printing money or borrowing money we don't have.
All of those things are incredibly inefficient.
Leaving it to the people who have accumulated in created wealth to go reinvest that in our economy is here.
Right now people are just sitting on the sidelines.
Because they just don't have the certainty.
Of where we're headed and whether there's going to be a free open on.
Public sector plus we have the government.
Giving -- to health care and keep doing education getting into the insurance business and and doing all cut and picking winners like Solyndra.
You have -- bit the government.
Basically interfering with the public sector in the free market enterprise it.
I guess I just I majored in economics at Harvard.
And I I just don't understand why people here Milton Friedman.
Very well put -- the only thank you always it was a pleasure -- it.