Why they want to go off the 'cliff'
Juan Williams and Alice Stewart examine the looming fiscal crisis
- Duration 6:30
- Date Dec 28, 2012
Juan Williams and Alice Stewart examine the looming fiscal crisis
Also in this playlist...
This transcript is automatically generated
Continuing now with our top story tonight just days ago some -- both parties actually -- -- go over the fiscal cliff in order to save face politically.
And then strike a deal next month but will that be too late.
Joining us now from Little Rock Alice -- a Republican strategist and here in studio my favorite Juan Juan Williams a Fox News contributor so why -- The consequences.
Of going over the fiscal clip.
Actually a Democrats dream all that's missing -- begin lunches in yoga in classrooms he got high taxes and defense cuts you must be giddy about going over the cliff.
Not me I don't want -- over the cliff because I think you know what.
I have investments I work for a living and guess what it would be absolutely.
Traumatic for the American economy.
And the global economy and the recession is not exactly in the midst of a strong recovery right it's pretty -- so.
I don't think it's good news for anybody and you know this is something that the press doesn't pay attention to great yeah I think that if Obama has to start a second term.
With everybody saying oh my god this -- as -- on the economy's gonna help.
You know what -- consumer confidence thinking that's not good news for Democrats so why do you why would you think that somehow it's good news for Democrats.
Because you just sounded like a Republican -- -- yes you can.
The fiscal cliff is defense cuts in high taxes -- you're saying that hurts economy welcome to the Republican Party no.
That is rampant rational people would say that that's not a good thing to do which is why I would hope that rationality and sober behavior before New Year's -- would somehow land like a rocket ship our -- or alien rocket ship and in Washington.
And get these people of the table.
Outside your sane I believe what do you make of this it the point I'm trying to make his.
Why is what are the Democrats scared of the fiscal cliff when that defines basically their ultimate dream.
Well the Democrats are aren't anxious they're embracing the fiscal cliff -- got.
Obama and Democrats.
In the convertible thunderbird ready to pull the pedal to the metal on the fiscal cliff because.
They can raise taxes they can cut military spending and I can blame the GOP.
When the GOP is -- doing that Smart thing here and pointing the finger at the real problem which is out of control spending look fixing this problem.
It's not going to be easy but it's not complicated we can't just rely on raising taxes we have to look at cutting spending.
And that's of the Republicans are doing even more so with Geithner pointing out the fact.
Warning us about the you know that coming up on the debt ceiling.
This just goes to show him out of control spending and simply raising taxes is not gonna get a -- -- you realize first of all that most Americans think you're gonna need a combination.
Tax hikes and spending cuts it's not just one half of the deal and this is Republicans and Democrats it's about 70% of Americans so it's not just the one sided deal.
And the second thing to say as you know these guys aren't that far apart you know in fact.
When you look at how much revenue -- has put on the table he's close to a trillion dollars and he's just simply saying I wanna trillion dollars in.
Spending cuts as well President Obama he's close to -- same number they're -- you know 300 billion dollars apart.
They're about 1% a part in this whole deal so I don't think it's fair to get the -- the Democrats some -- wanted to go with a left.
Well led them to the problem is they're not really putting any spending cuts on the -- on the table what they are doing they're putting some.
Proposed possible cuts but the stimulus spending they're putting on the table also.
Offsets that and for just for argument sake let's say we give the president every single tax increase that he wants.
We're still looking at a trillion dollar deficits so that just goes to show we have to have some serious.
Entitlement reform and spending cuts in as a right now we don't have them and their talks about them.
And there are some.
Accounting a Fuzzy math going on but there's not any serious entitlement reform and we can't just wait and talk about that in January needs to be included.
In any packets before we.
Go forward we don't want to the point he's making -- -- sound when we talk about spending cuts it's basically a guy pulling the all those are the meat lover's pizza and saying he's on a diet.
This is not where we are we are focusing on something so it's dental and -- doing this huge huge problems black hole that is -- that is spending.
I mean it's true we are going nowhere now I know I disagree.
You know what you've got what's going to be all the stuff that's you spent on -- -- Not only that I like it when the anchovies for your -- has been -- -- getting lots of antioxidants with my pizza.
And I feel good.
About eating the pizza even though I'm bloated but anyway.
But I think that when you have when you look at the reality Alice says the president hasn't put -- spending on the table walked.
I mean the president has -- left wing -- furious with -- -- furious.
Because he said we will put the CPI which you know the rate of growth of these programs the inflation rate will tie that to Social Security -- tied for the other entitlement programs he has said.
You know what not I think it's something like 70% of Americans think.
People over 250000 their tactics or -- -- he is willing to negotiate the 400000.
Then you press that these are legitimate steps to cut spending but you -- get to get the greatest point.
You can't cut spending all at one time like Dick head chaplain Brian you know bits didn't get the meat house then there's not it it would absolutely crush our economy if you did it in one fell swoop.
Thought whatever the problem is -- like like he said we need to needs to be -- combined approach but but the problem we're having this face off here in this stalemate is that.
In a great piece -- on Politico today it's called the Nash equilibrium where.
We have a multiplayer game here everyone knows they're opponents' strategy so they're not going to make a move everyone knows -- all sides know what the other sides want to do but the truth of the matter is.
What will happen this afternoon need to get in the room have a conversation and have a good solid -- comprehensive.
Way to deal with this financial mess so we're never going to get out of -- I.
A man I think it Alice and I look at this isn't hey you hear what they have no idea how I don't know what disappoints me.
You know -- talks about the pizza and what it looked at these are like kids who were throwing them the cake at each other and blaming you when you when the adult walks in the room there's no adult walking in the role in Washington.
It isn't going to see any difference in these parties at this point they basically BC.
Politicians as junkies guarding the -- mats whats happening they are out of control who they are out of control -- we agree on I want you are we got to go out thank you want to thank you very happy carrier directly.