Fox News
Expand
Browse All Video
Watch Live

You're watching...

Art Laffer's economic outlook for 2013

Details

  • Description

    Former Reagan economist predicts 'one of the worst years we've seen'

  • Duration 4:23
  • Date

Clips

Also in this playlist...

Editor's Picks

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

I just take a look at what's going on in the US markets this morning it is light trading but everybody was really on pins and needles coming into the morning.

Today after that bell -- that about a 116.

Right now fairly light trading a lot of its been done already for the holiday -- but it really are amazed to be seen what the impact will be longer term.

In the coming months to this we know that John -- -- heard from -- he held a news conference a little while ago.

He canceled the vote on his own back up plan known as plan B just days before Christmas and less than two weeks before the painful effects of the fiscal cliff.

May indeed be felt by all of us so where are we with this situation art Laffer has.

Been down this road similar rose before -- -- is a former economic advisor to president Ronald Reagan.

And we always like to get his spots on these sort of pivotal moments for -- good morning acted to see you.

Good morning Martha how're you this time he's doing just fine you know we what do what do you make of this whole scene last night when they can't.

Of the vote.

-- what it means that the Democrats are willing to do anything -- John Boehner went way out of his way to do plan B.

You know the senate so they wouldn't even take the bill -- the president said he Vito it.

Most Republicans find -- a tough pill to swallow and there wasn't one democratic congressman.

Who was willing to go along with plan B I just don't get it.

The Democrats have made -- so that this isn't.

Possible to do.

And they put John Boehner into a corner and I think John's done a great job.

I've tried to get something out but there's nothing to get out that there is no give on the democratic side at all and.

They've got to take ownership of this of this tax that too is that what happens -- thank.

While it's already happened much of it.

A lot of people are shifted -- come out of 2013.

And the 2012 so we're gonna have a very bad court a couple of quarters in 2013.

That's already baked in the cake and you know I think there will be some negotiations somewhere but making this dragged along like this is just absolutely pure Washington politics of gotcha.

And.

It's it's we can't the other.

Over the past several months have been because companies have been operating in such a lean manner.

They're not hiring they're managing to turn out there for products and services in in a much more.

Kind of efficient way so there's not much inclination for them to hire more people especially -- they're gonna have to cover them with health care benefits and all of that.

So what's your sort of outlook you know for for 2013 in terms of that the president believes that you know we're we're in the middle of of what's going to be a bubbling turnaround.

Well it's not going to be a -- term I think 2013 will be one of the worst years we've seen.

And 2014 I don't think's gonna be a lot better I mean this is all politics at its best you can't tax and economy and the prosperity America.

You -- can't.

And you know what we need or something like the 1986 tax act.

There are lots and lots of Democrats who would love the 86 tax act of lowering rates and broadening the tax base.

In fact there was a great article in the Wall Street Journal yesterday by a Democrat will Marshall suggesting exactly that that was the that's the crowning glory of good economics the 86 tax act and you know we could do -- -- the president and Reid and Pelosi would go along with a but that's just not what's happening today.

Near her dad John Boehner says that he is hoping that Democrats can agree to something that you know it is the kind of plan it agreed to in the past.

That apparently don't have any taste for.

At the moment it's a tough political other -- the politics very divisive situation but yet it's very divisive politics and and they're still in campaign mode -- and.

It's too bad because you know we need to govern this country that this is one of the worst recoveries ever in US history.

We have people -- -- suffering in the inner cities who have not had a job for 45 years teenagers.

They've lost all the skills to work an -- they'll never be brought back into the mainstream of these people are dancing and fiddling while Rome is burning.

And it's too bad there we're gonna have to wait a couple three maybe four more years before now and really bring good economics back and.

I hope that's not true.

But they have bad -- my -- -- -- we're gonna you know you have -- You know it doesn't matter if failing -- -- holiday is and sit tight and we'll see where I have great family you.

You have a great great holiday season Martha Merry Christmas to you thanks so much are you to you and yours I was -- -- to -- --

Load More