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It is now four months after the sequester and didn't Democrats say we've really really softball sequester.
Would jeopardize our military readiness our country less -- And our communities less safe as a result sequester.
Furloughs said the air traffic controllers food inspectors Border Patrol.
Cuts to job training federal education assistance and reduce investments -- safe drinking water medical research.
Sounds dramatic doesn't it but my next guest says the sky is not falling -- -- it's time to keep cutting.
Craig Smith is the chairman of Swiss America okay the sequester -- to what 22 and a half percent to the total budget.
If the sky isn't falling how much would you like to -- Craig.
Well if you check with the IMF they did a study of -- 170 countries fifty major economies -- that you could cut.
At least 1%.
Of your GDP and not have any effect on growth Stewart.
And I find it laughable.
When you know you just had Rick Scott with you.
Who has 330.
Some odd thousand jobs -- -- about Nancy Pelosi said that the sequester is gonna cost jobs.
I mean this is crazy Stewart you know was well as I do.
That proper fiscal consolidation.
Done in the appropriate way can have a very positive impact on the income -- on the economy.
That the other side of the coin is that the sequester cuts were meant to shrink the deficit.
And they have played a role in shrinking the deficit is not going to be a trillion dollars this year is going to be about 600 billion and and change right.
And the sequester cuts will all parts of that narrowing down of the deficit.
So you could say.
The sequester -- had a good effect on the deficit and maybe you could say that if we cut -- -- would have an even better effect on the deficit.
Oh absolutely Stewart I'm -- for another fall 1% but this time let's aim it at.
Mandatory spending let's -- and act.
The retirement and health care.
And unemployment benefits where we're paying people to retire to use health care and to not work is that politically possible.
Well I there's no political will Fort Stewart but economically it makes sense luck.
If you look at any nation that came through a very difficult time.
It was fiscal austerity.
And indeed this and that data is empirical Stewart I know you know this from Fox Business news which by the way you know getting you should demand that's good night and on that that.
That but but but the truth is that there is -- pure cool Stewart.
If you reduce government spending or if you re allocate that spending into discretionary like roads bridges building tanks.
You created a stronger economy.
And what's interesting about the cuts the CBO even said yes yes it may cause a little slow down this year.
But then in years 23 and four we don't look not only get back to where we were before the sequester.
But we're gonna actually be above -- growth comes back.
Even though this government is doing everything it can slow this economy it down and our economy down Stewart sooner or later -- gonna run out of steam we -- -- Craig Smith thanks for joining us as usual thank you so could be in here now.
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