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AFL-CIO's Trumka: 'Fiscal cliff' is 'manufactured crisis'

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    Top union leader think debt is not a short-term problem

  • Duration 5:04
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This just breaking this morning cross a little while -- the head of the largest labor unions in the nation now saying that the so called fiscal cliff.

Is all made up.

He says -- nothing but a fabrication.

AFL CIO chief Richard Trumka wrapping up a speech just moments ago and here is a quote from that speech.

Take what the media are calling the quote fiscal class there is no fiscal class.

What we're facing is an obstacle course within a manufactured.

Crisis that was hastily thrown together in response to inflated rhetoric.

About our federal that's just set.

Don't misunderstand me I don't for a moment think that America's deficit is not a long term problem he says it is but it's not our short term crisis.

Sells well we think about this Charlie Gasparino is Fox Business Network senior correspondent Brian Wesbury chief economist at first trust advisors LP eight.

So Brian what a big release apparently there is no fiscal -- what are we were about me.

Yeah this doesn't surprise me Martha because -- -- yet I can imagine a labor unions want.

The tax hikes going up they've always.

Our tax hikes to happen.

They've always wanted that and what's what what scaring people about it is this.

It is that if we go over this fiscal cliff it's it it is economic suicide my forecast is that if we allow ourselves.

To have all those tax hikes happen.

We will have a recession of two or three quarter recession so.

He's trying to -- it to tell people not to worry about that and I'm not surprised that he's doing that but he's wrong.

This is not a manufactured crisis this will be a serious economic crisis if we allow ourselves to go over this -- And have all of those tax hikes happen on January 1.

-- what's your reaction that was some good writing and I will say that whoever.

Pieced that together and I guarantee it's not Richard Trumka was about.

You know three French Fries short of -- happy meal bush.

The I will say this you know the left is trying to say that this is a manufactured crisis tribunals -- -- -- do is keep spending money imprinting it in.

Everything will be hunky dory down the road.

The problem is that there is a law on the books the law says that if you don't reach a compromise within the next what 44 days or so until the end of the year.

X and Y is gonna happen massive budget cuts particularly to -- -- and massive tax increases my view is.

Let's just say we did nothing and the president got he's got he's got got everything that he wanted including.

His tax increases on the on the on entrepreneur awards such anybody making 200000 dollars more -- -- -- more small business that's what that's what gets hit there.

We are -- we're gonna go to recession -- -- look at the way the markets are reacting to this stuff.

And look at the unemployment claims that they rose they wrote they shot up pretty dramatically this economy is not healthy so you know we're in trouble no matter what.

-- I mean you know it seems to me that you know when you're addicted you need to efforts recognizing have a problem.

So if for example doesn't think that there's a problem I think there's a lot of economists out there who are worth their salt and have all their French Fries and a happy -- and has -- -- at.

He I I spoke yesterday to one of the CEOs who attended this -- conference -- -- -- -- yesterday and you know it really it comes down to creating jobs.

In this country and they they're saying you know from what I'm hearing.

That -- -- -- this is resolved in a way that that really takes a bite out of this manufactured debt crisis.

They're not going to be able to hire folks down there gonna try to get smaller and leaner and more efficient if anything but Bryant and then Charlie.

Sure sure you know -- -- we recently raised our recession odds from 10% to 25%.

And the reason was the uncertainty.

About the election obviously.

And then the fiscal cliff and we we're already seeing businesses hold back there holding back in investing they're holding back in hiring.

But now we have not just uncertainty we have the real impact of this fiscal -- and if we go over it.

They were talking about dividend tax rates of it was -- 40%.

A math major increase in capital gains taxes.

This will affect investment this will really affect the economy so this isn't just fear mongering this is a this is a major economic issue.

Let's get a quick take from -- yeah I would say I would say that meeting with the with the with the president was one of the most intellectually dis honest con fans I've ever seen those guys went in there.

They were spoken to by the president if they had anything any -- You know I've I almost said something else put a move to keep this as I know there's a family generally check out if they if they had any guts they -- said this mr.

-- there was that this the president.

You want to raise taxes you don't you you gonna kill small business you're gonna prevent us from hiring.

You're gonna destroy an already weak economy and I guarantee.

Those clowns did not say that -- I was told that the president listen a lot morning spoke yesterday which was a big change from last time around so -- got.

What are losing it but you -- I -- and then forgot about a five minutes later Tara thank you so much good to -- here.

Brian -- you as well thank you gentlemen if I let's check in.

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