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More on the president's budget now -- Austan Goolsbee is a former chair of the president's.
Council of economic advisors now professor of economics at the University of Chicago Booth school.
I've business -- -- a lot to respond they're from Carl and his thoughts in the president's budget to summon up.
Some are saying that.
For a balanced approach that the president is putting -- he's not putting forward.
A balanced budget some economists don't think that's necessary where do you fall on it.
Well look what's important is stabilizing your debt to GDP ratio and in technical terms your debt to income and you don't need to balance the budget certainly you don't need to balance the budget in the short run.
In order to stabilize the debt to GDP ratio in the US so that that's right come down I mean I felt.
He hearing Karl Rove it was a bit you know he had the east German judge at the Olympics thing going.
It literally doesn't make any difference what the president said Karl Rove was going to say.
That it wasn't serious and that he hadn't made any compromise I think the fact that.
The president's own people on the left are upset about they cuts that he did propose in the budget.
Kind of belied that -- little bit.
Let's talk a little bit more about that because there has been a lot of criticism from the last.
About changes to entitlement specifically when it comes and the way that Social Security benefits are calculated this is something that.
Use it that you support Austin's a -- to hear your thoughts as one of the former advisors of the president.
On this what do you think potentially people on the -- are missing here with criticizing the president's -- Well I did add to what what I've said about this is the changing the way that this Social Security benefits are indexed.
What I've said is the same thing that almost all economists say which is the way we calculated relation overstates the inflation rate.
And that -- proposal that the president has which is a bipartisan proposal historically.
Is a better way to calculate.
Inflation now over time it would mean.
And a reform of Social Security so there would be less money going out the door because but it but it would happen slowly and it would happen overtime I think.
The divisions within the Democrats are what you'd expect there are some people say.
Doesn't matter how you calculate -- place we don't want there to be less money going and going out the door.
For anybody who's upset about those changes to Social Security.
The Republican budget by not being willing to have any revenue -- the crush -- security and Medicare that's the essence of this fight.
Comes down to do you want to try to do all of the reduction of the deficit.
Through cutting of spending which means going -- squeezing the entitlements of social security and Medicare much much harder than anybody is.
Comfortable win this is alleged vessels naval fighter that's gonna play out is that the way to -- admit that the rethink about ailing economy here -- yes look.
Simpson vols gave you a target amount and said do it two or three to one.
Cuts to revenues and that's similar to that to the -- shows the president's proposing here it's similar to some of the ratios you seen from some Republicans.
But if this.
Attitude prevails that there can't be any revenue and we're not gonna count pass spending cuts as part of the total only that it.
Against the revenues than it I don't think they can make a compromise.
Barney Frank calls -- a terrible policy -- terrible and negotiation.
Strategies so we'll see what the reaction is once everyone gets a look at this plan which is happening now.
For the very first time regardless of how much we talked about it I think great to see as always thank you so much -- wonderful to see --
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