to be a lot more indecision, and they look at not only the tax cuts expiring but obviously the massive spending cuts that are going to be coming their way, there s not really any reason for any business owners, big or small, to have confidence that washington is going to take care of things. no. i think miles has it exactly right. our best hope is honestly they are not paying very close attention right now, but i don t think that s going to prove accurate. we have at the end of this year just in america, as he put it, we have a massive, massive fiscal crisis we re looking to begin. the bush taxes could all expire at once. the automatic spending cuts from the debt deal could all begin at once. we have a 7.5 trillion dollar drag beginning at the end of 2012. that will happen potentially, and then we re going hit the debt ceiling. so that will be much, much worse than even the august 2011 debt cri crisis which dealt a real body blow to the economy.
look, social security is a $17.5 trillion unfunded liability for this country. he just finished creating a $15.5 trillion with medicare part d . john: are you responsible for that? did you talk him into that? no, medicare prescription part d is controversial now. but at the time the debate centered around if you are going to diagnosis a problem but not have a plan to buy drugs to fix the diagnosis, that is what it came down. it was competitive marketplace mechanisms. it has come under budget every year. there is a way you can add competition and market forces into health care that can work. john: it came under budget. you have 310 million americans that have different objectives but come up with a
nationally is that one penny i year out of every dollar spent for six years. we re at a balanced budget. right? that is right. it s a simple plan. one penny out of every dollar of the federal budget for six years. after seventh year, we cap spending at 18%. and after 10 years, he we end up $7.5 trillion. ef one watching has to take a penny out of every dollar of the business budget. the federal government should be required to dot same thing to balance the budget and start this process of a stronger economy. florida is, i sense the next
taking the u.s. and putting us next to belgium does not make perfect sense. if you look at the next slide, you ll see why they did this. we re talking politics of it. what bothers them is not so much what s happening now that i showed you, but what the out years look like. their argument is after the $2 trillion mistake, our debt to gdp continues to rise. this is something we have spoken about before. $7.5 trillion in debt. that s what s troubling them. their argument is country s like the uk have been more successful than we have at putting in long term programs, things that bend the curve down and get the debt to gdp ratio. show the chart again. the numbers go up and for a few
belgium would not make perfect sense. but if you look at the next slide, you ll see why the s&p did this, the economics basis, anyway. what really bothers the s&p is not so much what s happening right now that i showed you, but what the outyears look like. their argument is that even after the $2 trillion mistake that austan goolsbee correctly pointed out, our debt-to-gdp continues to rise for the next ten years. this is something we ve spoken about before, $7.5 trillion more debt that would come on our books even with this deal. that s what s really troubling the s&p. their argument is that countries like the uk, with its parliamentary system, have actually been more successful than we have in putting in long-term austerity programs, thing s that actually bend this curve down. snow the chart again. the numbers go up and they go up for a few salient reasons that have nothing to do with pbs or the funding of the arts or home heating oil assistance for the