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professor will fall
thank you very much uh... glad to have you with us
first of all capitalism he hits the fan the global economic meltdown you did not
write this is a consequence of this uh...
deal that was just worked out over the weekend
uh... you wrote this book uh...
uh... looking at a much larger
economic situation i'd give us the largest frame
by wrote the book and we were relatively early in the so-called economic crisis
but started in the
autumn of two thousand and seven
but to be realized
i have to tell you that uh...
i did not expecting
spin as far down as they have
to look at school in as they now do
and to produce not only economic downturn
but up political peace
function
uh... that if he is what i thought i'd be i i would have to come up with a
strong earthquake that hit the fan
and i thought that was pretty strong yeah at the capture what's going on a i
think
we are at a very very bad point
uh... here we are in an economic system that can deep trouble
a recovery that left most people out and he's even sputtering for the few would
benefit it now
and we are going to pay to the largest single by air
in this country which is the government
if you should cut back what you buy it
cut back what you spend
at all that's going to do
it increases suffering increase the problems
and propyl in this country uh... of graham rig recognition
that we are heading down
and then as we do have a gap between the rich and the poor only get wider
and this is a set of circumstance that should trouble anyone who's paying
attention
so while what led us to
siggy and this this
it seems to be like the uh... this all began with the
they've got a couple of things jude waninsky is memo in the in the mid
seventies the republicans is too cynical as terry
saying that the rip the democrats have always been santa claus they brought
their social security and unemployment benefits and medicare everything else
everybody loved them and their grip on things were always grinches so they had
reflect that upside-down whenever republican president was in office spend
like a drunken sailor run of the debt as hard as fast as you can and then as soon
as a democrat comes off as scream about the debt and deficit and use that as a
way to force the democrats to cut the programs their own programs so that they
will no longer be identified as santa claus the republicans will be idea
identified as santa claus they've been running that playbook and some
will admit that many others numerous columns about this not conservative
publications since
the election of ronald reagan
and it seems like that is what brought us to this in my mind i i'm curious your
your take on how we got here
well i think that's partly correct it clear that the republicans uh...
lose this debt
feeling
uh... routine
had a chance to grandstand i mean people should be aware
i counted up just so i would be able to say thing like this on radio and
television programs
i counted up the number of times a sitting president
but that feeling to be raised or lowered mostly raised
since nineteen forty
total number of times
nine-b_ nine zero more than one and a half times per year on average it's an
absolutely routine thing
president from both parties have asked for it
representatives of whatever party was out of office grumbled and said gee it
shows the president's not managing things correctly and then promptly voted
for it until this time when suddenly it became an opportunity to run that game
plan that you described with the republicans taking advantage of people's
upset about economic crisis to say look
we're gonna punish the government
that just arrange american idea
that when you're fired by a private employer or you're thrown out of your
home by a private bank that goes to court
you shouldn't get angry at the employer and you shouldn't get angry at the bank
instead
you should get angry at the government
at the root of all evil and so the republicans play that game
and they promised them not only will they politician
and make the government's smaller
but they will protect you from taxes
and in a time when nobody trusts politicians anyway maybe they can win
some people who at least think met the chancellor of attacks
will be a little after that otherwise would be
and everything that democrat comeback uh... i would i would just what you said
slightly
they come back and they look with a lesser evil vote for us
because we want savage social security or student loans are all the other
things you need
as badly as those republicans will
of this is a sad commentary on where things are and perhaps the worst part of
it for me as a professional economist
is that we all know what the fundamental problems are gifted common
we have horrible unemployment
falling wages we have benefits being reduced
and that is breaking our economy betsy salad right down the man that's right
and they dragged the economy down
the president have been paying for three years
he's going to stimulate
by providing incentive that inducements for the private sector to deal with the
unemployment problem
it'll work under bush it has not worked under all bomber
something have to be done
and whatever you may argue and i have my own preferences but what we ought to do
cutting government spending
while doing absolutely nothing l
but the unemployment problem will actually make it worse
but maybe that's the republican strategy that no matter how bad it yet
they can win more police by positioning themselves as the ones who will publish
the nasty government for doing it and it will prevent you from having to pay
higher taxes
and hope that no one notices
that the decreasing condition of the american working class
and the mass of the middle class
is a direct result of what the republicans are pushing for yeah i can
sign the since the days ago bottle was selected or was
was sworn in the day after when uh... mitch mcconnell said his number one job
was to make sure that obama was a one-term president
that the only way the republicans could do that would be to obstruct anything
that will make the economy better and in fact make the economy worse try to get
unemployment up to ten or twelve percent tried it is a possible they'd even get
inflation up a *** english is gonna be deflationary ands and then run on the
campaign of disguise herbert hoover you need to take him out and that there'd
their true they're good this is a generational play there trying to
they're trying to a franklin roosevelt did catch our entire generation and as
as
you know that that the saviors of the economy
the problem is that uh... they're economic policies are insane jude
wanniski in in addition to coming up hutu santa claus theory was the guy who
invented the phrase supply-side economics
tell us how well that's worked out
yes it did not believable saying that that known reasonable
mature men and women
still believe that sort of thing but i get a few repeated warm enough
the basic idea is
the economy is not driven by how many people have good jobs and incomes enough
the by the goods and services that we work to produce know the argument runs
it goes the other way
we have to do everything possible to provide good profits for businesses
and then if we do that by low-tax
is by all kinds of subsidies
by all kinds of deregulation so they could do whatever ickes to them will be
profitable
wideband by magic
all of this will happen
there's no historical support for this sort of thing
uh... the conditions that make an economy do well are complicated and many
there's no magic
up we do know
that if you'll paroled millions of people out of work
and he appealed the press
the wages and benefits of vast numbers of people
you're not going to push
the overall economic situation emotion conditions that's what we have now twist
offering the consequence