| 00:00:00 | YOU ARE GOING TO MAKE THE REST OF US LOOK BAD, YOU KNOW. |
| 00:00:04 | >> I THOUGHT EVERYBODY WOULD HAVE WON. |
| 00:00:08 | -- ONE. |
| 00:00:12 | I GUESS WHEN I STARTED THINKING ABOUT THE FISCAL CLIFF, AND WHAT THE OPTIONS ARE, I CAME UP WITH ESSENTIALLY THREE. |
| 00:00:21 | WHEN IS TO DO NOTHING AND HIT THE CLIFF, AND LET THE CUTS GO INTO PLAY, THE TAX INCREASES GO INTO PLAY, WE HAVE BEEN TALKING ABOUT HERE. |
| 00:00:32 | THE OTHER IS TO AVOID THE CLIFF AND STRIKE SOME SORT OF GRAND BARGAIN, TO JUMP BEFORE YOU HIT THE CLIFF. |
| 00:00:41 | THE LAST ONE IS THE ONE THAT EVERYBODY HERE SEEMS TO FAVOR, WHICH IS TO NOT DO ANYTHING RASH, TO STOP, TAKE SOME TIME, AND THINK ABOUT WHAT YOU NEED TO DO TO GET THE POLICY RIGHT. |
| 00:00:57 | >> IS THAT NOT WORKING? |
| 00:00:59 | >> I AM NOT SURE. |
| 00:01:02 | >> CAN SOMEBODY MOVIE -- CAN YOU FOR THE SLIDES? |
| 00:01:06 | -- FORWARD THE SLIDES? |
| 00:01:11 | >> IF WE DO NOTHING, WE GET PUSHED OVER THE CLIFF. |
| 00:01:14 | WHAT DOES THAT MEAN? |
| 00:01:16 | THE ESTIMATES ARE THAT THIS MEANS SOMETHING LIKE A REDUCTION IN THE 2012 BUDGET DEFICIT SOMEWHERE ON THE ORDER OF ABOUT HALF, NOT QUITE HALF. |
| 00:01:31 | IN TOTAL, A CUT IN THE DEFICIT OF A MAGNITUDE OF AROUND $487 BILLION. |
| 00:01:38 | THIS IS TOO MUCH EVEN FOR THE PETERSON FOUNDATION. |
| 00:01:42 | >> AND GO BACK. |
| 00:01:45 | >> THEY SAY IT IS TOO BIG. |
| 00:01:47 | IT IS TOO SOON. |
| 00:01:49 | IT IS COMING TOO FAST. |
| 00:01:50 | IT IS TOO MUCH TO TAKE ALL OF ONE'S. |
| 00:01:54 | IT WILL PUSH THE ECONOMY BACK INTO RECESSION. |
| 00:01:57 | WHAT WE NEED IS TO GO MORE SLOWLY. |
| 00:02:00 | WE NEED THE GRAND BARGAIN. |
| 00:02:01 | WE NEED SOMETHING WITH ENTITLEMENTS ON THE TABLE, BECAUSE THEY ARE NOT ON THE TABLE WITH THE FISCAL CLIFF. |
| 00:02:09 | WHAT THE PETERSON FOUNDATION ADVOCATES IS THAT WE ADDRESS THE FISCAL CLIFF BY STRIKING SOME KIND OF DEAL NOW TO AVOID IT, BUT TO PUT OUR NATION ON A MORE STABLE, SUSTAINABLE PATH, FISCALLY. |
| 00:02:26 | SO FAR, WE HAVE HEARD I THINK FROM THE PRESIDENT QUITE A WILLINGNESS TO GO AFTER THE GRAND BARGAIN. |
| 00:02:37 | PREVIOUSLY OF THE RECORD, AND SUBSEQUENTLY ON THE RECORD, THE PRESIDENT SAYS, "I AM ABSOLUTELY CONFIDENT WE CAN GET THE EQUIVALENT OF A GRAND BARGAIN OVER SIX MONTHS. |
| 00:02:50 | WE CAN MEET THE BALSAMS AND TARGET -- BOWLES-SIMPSON TARGET AND MORE. |
| 00:03:02 | WE NEED TO PROVIDE THE KIND OF CERTAINTY THAT THE BUSINESS COMMUNITY IS LOOKING FOR. |
| 00:03:08 | " WHAT TO DO? |
| 00:03:12 | MOST ECONOMISTS AGREE NOW THAT IF WE DO NOT REACH A DEAL AND WE HIT THE CLIFF, AND NO DEAL IS STRUCK AFTER SOME SUFFICIENT PERIOD OF TIME, IT MEANS A RECESSION FOR THE U. |
| 00:03:28 | S. ECONOMY. THE BUSINESS COMMUNITY IS PUTTING PRESSURE ON THE PRESIDENT AND OTHERS TO COME UP WITH SOME WAY TO AVOID THE CLIFF, GET THE DEAL DONE QUICKLY. |
| 00:03:38 | THE POPULATION, AS I MENTIONED, SEEMS EAGER FOR COOPERATION AND COMPROMISE, A DEAL. |
| 00:03:45 | WILL WE JUMP AT THE CHANCE TO STRIKE A GRAND BARGAIN, BECAUSE IT IS PERCEIVED AS THE BEST WAY TO AVOID A RECESSION AND DEAL WITH OUR LONGER-TERM DEFICIT PROBLEM? |
| 00:03:59 | THESE ARE THE ESTIMATES OF WHAT WOULD HAPPEN IF WE HIT THE CLIFF, VERSUS THE CBO'S ALTERNATIVE SCENARIO WHERE YOU KEEP THE BUSH TAX CUTS AND AVOID THE SEQUESTRATION, BUT SOME OTHER PORTIONS OF WHAT WE WOULD BE FACING GO INTO EFFECT. |
| 00:04:17 | EXTENSION OF THE PAYROLL TAX CUT GOES AWAY. |
| 00:04:22 | UNEMPLOYMENT COMPENSATION FOR LONG-TERM UNEMPLOYED GOES AWAY. |
| 00:04:25 | BUT YOU KEEP THE BUSH TAX CUTS AND AVOID THE SEQUESTRATION, SPENDING CUTS. |
| 00:04:32 | IF YOU HIT THE CLIFF, YOU GO INTO RECESSION. |
| 00:04:36 | GDP GROWTH BY NEXT YEAR TURNS NEGATIVE. |
| 00:04:40 | UNEMPLOYMENT RISES TO 1. |
| 00:04:48 | 7%. -- TO 8%. |
| 00:04:51 | YOU HAVE RISING LONGER-TERM DEBT. |
| 00:04:54 | WHAT IS THE RIGHT SOLUTION? |
| 00:04:56 | WHAT IS THE RIGHT CHOICE? |
| 00:05:01 | OUR BUDGET AND POLICY PRIORITY SAYS THERE IS NO SINGLE MAGIC NUMBER, BUT THEY HAVE COME UP WITH A SINGLE MAGIC NUMBER OF SORTS, AND THE MAGIC NUMBER IS $2 TRILLION. |
| 00:05:16 | THEY ARGUE WE HAVE ALREADY GONE A GOOD WAYS TOWARD GETTING TO THAT. |
| 00:05:26 | THE DEFICIT REDUCTION WOULD STABILIZE THE DEBT TO GDP RATIO. |
| 00:05:32 | WE WOULD SEE A A, THE LONG RUN FINANCES OF THE COUNTRY IN ORDER -- WE WOULD SEE LONG RUN FINANCES OF THE COUNTRY IN ORDER. |
| 00:05:41 | WE COULD BRING THE DEFICIT AS A SHARE OF GDP DOWN TO 2. |
| 00:05:48 | 5%, ON AVERAGE, OVER TIME. |
| 00:05:51 | UNDER BALLS, -- BOWLES-SIMPSON, THE ORIGINAL VERSION, THE DEFICIT WOULD HAVE GONE FROM AROUND 5% NEXT YEAR ALL THE WAY DOWN TO PRACTICALLY ZERO, TEN YEARS OUT. |
| 00:06:08 | THE GOAL IS GRADUAL REDUCTION OVER TIME, SO THE DEFICIT SHRINKS ALMOST TO NOTHING. |
| 00:06:14 | YOU HAVE THESE THREE DIFFERENT SCENARIOS, RIGHT? |
| 00:06:18 | IS THERE A POINTER IN HERE, BECAUSE I COULD USE THAT. |
| 00:06:25 | THE BLACK STAR IS THE FISCAL CLIFF OUT,. |
| 00:06:34 | -- OUTCOME. |
| 00:06:37 | IF WE HIT THE CLIFF, THE DEFICIT FALLS FROM HERE TO ABOUT HERE. |
| 00:06:42 | THAT IS A SIZABLE REDUCTION. |
| 00:06:45 | WHAT THE CENTER OF THE BUDGET AND POLICY PRIORITIES IS ADVOCATING IS A $2 TRILLION REDUCTION OVER TIME, WHICH WOULD STABILIZE THE JET -- THE DEBT TO GDP RATIO, AND PUT THE A DEFICIT AT AROUND 2. |
| 00:07:04 | 5% OF GDP. IF SIMPSON -- SIMPSON-BOWLES STARTS WITH A LARGER DEFICIT, BUT AIMS TO SHRINK IT TO 0 OVER 10 YEARS. |
| 00:07:16 | WHICH OF THESE MAKE SENSE? |
| 00:07:17 | ARE ANY OF THESE REASONABLE? |
| 00:07:20 | I NEVER ANSWER QUESTIONS ABOUT THE RIGHT SIZE OF THE DEFICIT, OR WHAT GOVERNMENT POLICY SHOULD BE REGARDING THE DEFICIT, WITHOUT THINKING OF THE DEFICIT IN CONTEXT. |
| 00:07:31 | I NEVER CONSIDERED IT IN ISOLATION. |
| 00:07:33 | IT MAKES NO SENSE TO DO SO. |
| 00:07:36 | PUTTING IT IN CONTEXT MEANS UNDERSTANDING OF HOW THE GOVERNMENT BUDGET POSITION IMPACTS OTHER SECTORS IN THE ECONOMY WHEN OTHER SECTORS OUTSIDE THE ECONOMY ALSO MATTER. |
| 00:07:50 | IN OTHER WORDS, WE CAN DIVIDE ANY COUNTRY INTO THREE PARTS AND EXAMINE THAT COUNTRY. |
| 00:07:57 | PART OF IT IS DOMESTIC. |
| 00:08:01 | PULL THE DOMESTIC GOVERNMENT SECTOR OUT. |
| 00:08:04 | PULL THE DOMESTIC PRIVATE SECTOR OUT. |
| 00:08:06 | EVERYTHING ELSE IS THE REST OF THE WORLD. |
| 00:08:09 | YOU HAVE THESE THREE PIECES, AND THEY FIT TOGETHER PERFECTLY. |
| 00:08:13 | FINANCIAL FLOWS OUT OF ONE SECTOR GO SOMEWHERE. |
| 00:08:17 | THEY END UP IN ANOTHER SECTOR. |
| 00:08:19 | IF ONE SECTOR IS GOING TO ACCUMULATE A SURPLUS, IT CAN ONLY BE DONE IN SOME OTHER SECTOR IS RUNNING A DEFICIT. |
| 00:08:29 | THAT IS MATH, AS WE HAVE HEARD SO MUCH ABOUT. |
| 00:08:33 | THERE IS A REASON THAT GRAPH LOOKS LIKE A PERFECT MIRROR IMAGE. |
| 00:08:40 | IF IT IS. ON HIM, -- THAT IS BECAUSE IT IS. |
| 00:08:42 | EVERYTHING HAS TO NET TO ZERO. |
| 00:08:46 | ONE SECTOR'S DEFICIT IS ANOTHER SECTOR'S SURPLUS. |
| 00:08:50 | THE RED IS THE PUBLIC SECTOR BUDGET. |
| 00:08:54 | YOU CONCEDE, GOING BACK AS FAR AS THE 1950'S, BUT THE GOVERNMENT IS ALMOST ALWAYS IN DEFICIT. |
| 00:09:02 | THE PRIVATE SECTOR, THE DOMESTIC HOUSEHOLD AND DOMESTIC FIRMS TOGETHER, IS ALMOST ALWAYS ABOVE ZERO, IN SURPLUS. |
| 00:09:15 | THE GREEN IS THE REST OF THE WORLD. |
| 00:09:18 | THERE WAS NOT TIME, YEARS AGO -- THERE WAS A TIME YEARS AGO WHEN THE UNITED STATES RAN TRADE SURPLUSES AGAINST THE REST OF THE WORLD. |
| 00:09:30 | THE REST OF THE WORLD RAN DEFICITS. |
| 00:09:33 | WE HAVE A SURPLUS. |
| 00:09:34 | THOSE DAYS ARE OVER. |
| 00:09:37 | WE HAVE TRADE DEFICITS. |
| 00:09:40 | THAT MEANS THE REST OF THE WORLD IS ACCUMULATING A SURPLUS ON US. |
| 00:09:45 | THE ONLY WAY THAT WE CAN KEEP THE DOMESTIC PRIVATE SECTOR IN SURPLUS IS FOR THE PUBLIC SECTOR TO BE IN DEFICIT. |
| 00:09:58 | THE QUESTION IS, HOW BIG DOES THE DEFICIT HAVE TO BE? |
| 00:10:02 | LOOK WHAT HAPPENED DURING THE CLINTON YEARS. |
| 00:10:05 | THIS IS THE LAST TIME WE HAD BUDGET SURPLUSES IN THE U. |
| 00:10:11 | S. DEMOCRATS LOVE THIS. |
| 00:10:12 | THIS IS THE BADGE OF HONOR. |
| 00:10:14 | WE WERE THE PARTY OF FISCAL RESPONSIBILITY. |
| 00:10:18 | WE BROUGHT YOU BUDGET SURPLUSES, AND THEY GOT SOME WONDERED AFTER CLINTON LEFT OFFICE AND BUSH PETERED AWAY THE BUDGET SURPLUSES. |
| 00:10:27 | THOSE ARE WIDELY HAILED AS A VERY GOOD THING. |
| 00:10:29 | BUT WHAT DO THEY REALLY MEAN? |
| 00:10:31 | IF WE ARE STRIVING TO BALANCE THE BUDGETS OR SURPLUSES IN THE FUTURE, WE BETTER STEP BACK AND FIGURE OUT WHAT THAT MEANS FOR THE DOMESTIC PRIVATE SECTOR. |
| 00:10:42 | WHAT IT MEANT WAS THAT IF THE GOVERNMENT WAS HOPING TO COLLECT MORE FROM US THAN IT IS GOING TO SPEND -- THAT IS, THE GOVERNMENT IS GOING TO RUN A SURPLUS. |
| 00:10:53 | THE REST OF THE WORLD IS GOING TO TAKE MORE FROM US THAN IT IS GOING TO SPEND BUYING OUR GOODS AND SERVICES. |
| 00:11:04 | THAT DRIVES THE DOMESTIC PRIVATE-SECTOR, US, INTO DEFICIT. |
| 00:11:08 | IT HAS TO. |
| 00:11:09 | IT ADDS UP EXACTLY. |
| 00:11:11 | IF YOU HAVE A 4. |
| 00:11:14 | 5% TRADE DEFICIT AND A 1% BUDGET SURPLUS, THE PRIVATE-SECTOR IS GOING TO BE IN DEFICIT 5. |
| 00:11:22 | 5%. THE ONLY WAY YOU KEEP THE PRIVATE SECTOR IN THE RED, ABOVE ZERO, IS IF THE GOVERNMENT DEFICIT IS BIG ENOUGH TO MORE THAN OFFSET THE TRADE DEFICIT. |
| 00:11:35 | IF THE U. |
| 00:11:36 | S. IS RUNNING TRADE DEFICITS ON THE ORDER OF 4. |
| 00:11:42 | 5% OF GDP, THE GOVERNMENT DEFICIT HAS TO BE AT LEAST 4. |
| 00:11:48 | 5% OF GDP, OR THE PRIVATE SECTOR WILL FALL BELOW ZERO. |
| 00:11:52 | EVERY SINGLE TIME. |
| 00:11:55 | HERE IS THE CBO FORECAST. |
| 00:11:58 | THIS IS WHAT IS PROJECTED TO HAPPEN TO THE GOVERNMENT DEFICIT IF WE HIT THE CLIFF. |
| 00:12:04 | THIS IS THE ALTERNATIVE SCENARIO. |
| 00:12:07 | IF WE HIT THE CLIFF, THE PROJECTION IS THAT THE GOVERNMENT DEFICIT WILL SHRINK TO AROUND 2% OF GDP. |
| 00:12:15 | DEFICITS OF 2% OF GDP, TOGETHER WITH TRADE DEFICITS OF 4. |
| 00:12:23 | 5%, IN THE PRIVATE SECTOR IS BY DEFINITION GOING TO BE IN THE NEGATIVE. |
| 00:12:27 | WE ARE GOING TO BE RUNNING A DEFICIT. |
| 00:12:28 | HERE IS THE SAME IMAGE FLIPPED OVER. |
| 00:12:32 | IT IS THE MIRROR IMAGE OF THAT. |
| 00:12:35 | IT SAYS THAT IF THE GOVERNMENT REDUCES ITS DEFICIT, IT IS REDUCING THE SURPLUS TO THE NON- GOVERNMENT SECTOR. |
| 00:12:43 | YOU HAVE TO BE ABLE TO PUT THESE THINGS IN CONTEXT. |
| 00:12:48 | WHY DOES IT MATTER? |
| 00:12:49 | WHAT DIFFERENCE DOES IT MAKE IF THE PRIVATE SECTOR IS IN SURPLUS OR DEFICIT? |
| 00:12:54 | IT TURNS OUT IT MAKES A BIG DIFFERENCE. |
| 00:12:57 | THE PRIVATE SECTOR BUDGET BALANCE IS SHOWN HERE, THE BLUE LINE. |
| 00:13:02 | THOSE GRAY BARS ARE RECESSIONS. |
| 00:13:04 | WE HAVE HAD 11 OF THEM SINCE THE SECOND WORLD WAR. |
| 00:13:10 | IN EVERY SINGLE CASE LEADING UP TO A RECESSION, YOU WILL SEE THAT THE PRIVATE SECTOR BUDGET POSITION -- THE SURPLUS SHRANK. |
| 00:13:20 | AND THEN THE PRIVATE SECTOR TRIED TO RETREAT. |
| 00:13:23 | YOU SEE THEM TRYING EACH TIME LEADING UP TO A RECESSION. |
| 00:13:27 | THEY ARE TRYING TO SAY, I DO NOT WANT MY SURPLUS TO GET ANY SMALLER. |
| 00:13:33 | I AM GETTING UNCOMFORTABLE. |
| 00:13:35 | AT THAT POINT, IF THE PUBLIC SECTOR DOES NOT LOOSEN ITS FELT AS THE PUBLIC SECTOR -- AS THE PRIVATE SECTOR IS TRYING TO TIGHTEN ITS BELT, WHEAT AND-UP IN A RECESSION. |
| 00:13:47 | THE -- HAMAS WE -- WE END UP IN A RECESSION. |
| 00:13:59 | GOVERNMENT DEBT IS EQUAL, AND TO THE PENNY, TO THE NON-GOVERNMENT SURPLUS. |
| 00:14:06 | IN EVERY COUNTRY IN THE WORLD, THIS IS TRUE. |
| 00:14:08 | THE GOVERNMENT DEFICIT IS THE NON-GOVERNMENT'S SURPLUS. |
| 00:14:13 | THEIR RED INK BECOMES OUR BLACK THING. |
| 00:14:16 | THEIR DEFICIT IS OUR SURPLUS. |
| 00:14:18 | THE GRAND BARGAIN MEANS AUSTERITY. |
| 00:14:23 | THOSE REDUCTIONS IN THE GOVERNMENT DEFICIT -- IF THE GOVERNMENT CONTINUES TO REDUCE ITS DEFICIT, IT MEANS THE PRIVATE SECTOR SURPLUS WILL FALL. |
| 00:14:34 | IT SHOWS YOU WHAT WILL HAPPEN WHEN THE PRIVATE SECTOR SURPLUS FALLS TOO FAR. |
| 00:14:43 | THIS PICTURE HAS NO ECONOMIC MEANING. |
| 00:14:49 | IT DRIVES LOTS OF CONCERN AND HYSTERIA, BUT IT HAS NO ECONOMIC MEANING. |
| 00:14:56 | ALAN GREENSPAN WAS ASKED A QUESTION BY PAUL RYAN. |
| 00:14:59 | THIS WAS YEARS AGO. |
| 00:15:01 | PAUL RYAN POSED A QUESTION. |
| 00:15:03 | HE SAID, "WOULDN'T IT BE A GOOD IDEA TO INTRODUCE PERSONAL SAVINGS ACCOUNTS? |
| 00:15:09 | AND WOULDN'T THAT PUT SOCIAL SECURITY ON A MORE STABLE, SECURE FOOTING, GOING FORWARD? |
| 00:15:16 | WHEN THIS IMPROVE THE SOLVENCY OF THE SYSTEM? |
| 00:15:22 | " ALAN GREENSPAN'S RESPONSE HAD TO COME AS A SURPRISE TO THE CONGRESSMAN. |
| 00:15:26 | HE SAID, "I WOULD NOT SAY THAT SOCIAL SECURITY IS ON ON SOUND FOOTING TODAY, BECAUSE THERE IS NOTHING TO PREVENT THE FEDERAL GOVERNMENT FROM CREATING ALL OF THE MONEY IT WANTS AND PAYING IT OUT TO SOMEONE. |
| 00:15:40 | " THAT IS A QUOTE. |
| 00:15:46 | THE ISSUE, HE SAID, IS, WILL THE REAL SOURCES BE THERE IN THE FUTURE FOR RETIREES WHEN THEY ARE NEEDED? |
| 00:15:57 | HE TURNED THE FOCUS AWAY FROM FINANCIAL RESOURCES, WHICH CAN ALWAYS BE THERE, TO THE REAL RESOURCES, WHICH IS WHAT WE SHOULD BE FOCUSING ON -- EMPLOYING PEOPLE, PRODUCING THE CAPITAL, THE GOODS FOR THE NEXT GENERATION, HAVING THE REAL RESOURCES. |
| 00:16:15 | IT IS WHAT MATTERS. |
| 00:16:16 | IT IS TIME WE REALIZED THAT THE FEDERAL GOVERNMENT IS NOT LIKE A HOUSEHOLD. |
| 00:16:23 | THE U. |
| 00:16:24 | S. DOLLAR COMES FROM THE U. |
| 00:16:26 | S. GOVERNMENT. IT DOES NOT COME FROM CHINA. |
| 00:16:29 | WE CONTROL OUR CURRENCY, AS JAMIE SAID A MOMENT AGO. |
| 00:16:33 | WE ARE VERY DIFFERENT FROM THE COUNTRIES THAT ADOPTED THE EURO, THAT GAVE UP THEIR CURRENCY, THAT CAN NO LONGER ISSUE CURRENCY IN ORDER TO SPEND. |
| 00:16:42 | THE UNITED STATES GOVERNMENT IS NOT REVENUE-CONSTRAINED. |
| 00:16:47 | THAT WAS GREENSPAN FIFTH POINT. |
| 00:16:49 | WE CANNOT BE FORCED INTO DEFAULT, ANOTHER POINT ALAN GREENSPAN HAS MADE POWERFULLY, OVER AND OVER AGAIN. |
| 00:16:57 | THERE IS NO ECONOMIC REASON FOR A GRAND BARGAIN. |
| 00:17:00 | WE ARE LIVING WAY BELOW OUR MEANS. |
| 00:17:04 | WE ARE TOLD WE ARE LIVING BEYOND OUR MEANS. |
| 00:17:06 | WE ARE LIVING WAY BELOW OUR MEANS. |
| 00:17:10 | THE RED LINE IS OUR POTENTIAL GDP. |
| 00:17:13 | THE BLUE LINE IS WHERE WE ARE. |
| 00:17:18 | THE DIFFERENCE IS THE OUTPUT AND INCOME THAT WE SACRIFICE EVERY DAY WE FAIL TO BRING THIS ECONOMY BACK TO FULL EMPLOYMENT. |
| 00:17:28 | WE HAVE TONS OF SPARE CAPACITY. |
| 00:17:31 | FACTORIES ARE NOT OPERATING ANYWHERE NEAR HISTORICALLY HIGH CAPACITY UTILIZATION RATES. |
| 00:17:38 | THERE IS ALL KINDS OF EXTRA CAPACITY TO PRODUCE. |
| 00:17:42 | WE HAVE MILLIONS OF PEOPLE WHO WANT TO CONTRIBUTE. |
| 00:17:47 | AND WE HAVE USEFUL THINGS FOR THEM TO DO. |
| 00:17:51 | THIS IS OUR INFRASTRUCTURE REPORT. |
| 00:17:56 | WHAT DO WE NEED? $2.20 TRILLION TO BRING OUR GRADE UP FROM A D IVERAKK,' -- OVERALL. |
| 00:18:05 | WE HAVE PEOPLE WHO NEED TO WORK AND THE FINANCIAL CAPACITY TO DO IT, THE REAL RESOURCES. |
| 00:18:12 | WHAT WE DO NOT HAVE IS ENOUGH JOBS. |
| 00:18:16 | WE ARE FOCUSED ON A GRAND BARGAIN, WHICH IS ANOTHER WAY OF SAYING AUSTERITY. |
| 00:18:21 | PRESIDENT OBAMA GOT IT RIGHT WHEN HE SAID THAT COMPANIES ARE AWASH WITH CASH. |
| 00:18:26 | WHAT THEY ARE MISSING IS ENOUGH CUSTOMERS OUT THERE TO PROMPT DEMAND AND JUSTIFY THEM SPENDING MORE ON PLANTS AND EQUIPMENT. |
| 00:18:35 | BUSINESSES NEED CUSTOMERS. |
| 00:18:37 | THEY DO NOT CREATE JOBS. |
| 00:18:40 | AUSTERITY IS THE OPPOSITE OF INCOME CREATING SALES. |
| 00:18:44 | IT REDUCES INCOME. |
| 00:18:46 | TAX INCREASES REDUCE INCOME. |
| 00:18:49 | SPENDING CUTS REDUCE INCOME. |
| 00:18:51 | BOTH, I WOULD ARGUE, ARE THE WRONG MEDICINE FOR THE ECONOMY TODAY. |
| 00:18:56 | WE HAVE SEEN THE EFFECTS OF AUSTERITY. |
| 00:18:59 | WE DO NOT WANT TO FOLLOW, THESE COUNTRIES OVER THE CLIFF AND GRATUITOUSLY -- WE DO NOT WANT TO FOLLOW THESE COUNTRIES OVER THE CLIFF GRATUITOUSLY. |
| 00:19:11 | [APPLAUSE] THANK |
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