but the democrats are getting some religion on this spending issue. and i think as the government takes a smaller share of gdp, the private sector will produce more economic growth which is my real goal. do you think that the differences that we re talking about here are really going to have an impact in how much businesses are spending? well, i think over a period of time the answer is yes. i mean, look, a lot of people make the argument, it may not be a perfect argument, but when the businesses look at large deficits, they know at some point they are going to be taxed to pay for it. and so they hold back. one of the weakest parts of this weak recovery is business and investment spending, which regrettably is the greatest job producer we still have. it is really still below its peak in 2007. why is that? i don t know everything about it. but i think fear of tax increases. fear of regulatory increases, and yes, the unknown of obama care has held business back, it has held hiring ba
policy of their vanquished enemy. joining me now is layer kudlow, and larry, isn t it a good thing that the base line includes the sequestration spending level that everybody said was very, very low? i thought it was a good idea, i may not have agreed it was a perfect idea. but i will give the democrats and give mr. reid credit for holding down to that $986 billion. you re right, by the way, the original number was $967 billion. but the democrats are getting some religion on this spending issue. and i think as the government takes a smaller share of gdp, the private sector will produce more economic growth which is my real goal. do you think that the differences that we re talking about here are really going to have an impact in how much businesses are spending? well, i think over a period of time the answer is yes. i mean, look, a lot of people
joining me now is layer kudlow, and larry, isn t it a good thing that the base line includes the sequestration spending level that everybody said was very, very low? i thought it was a good idea, i may not have agreed it was a perfect idea. but i will give the democrats and give mr. reid credit for holding down to that $986 billion. you re right, by the way, the original number was $967 billion. but the democrats are getting some religion on this spending issue. and i think as the government takes a smaller share of gdp, the private sector will produce more economic growth which is my real goal. do you think that the differences that we re talking about here are really going to have an impact in how much businesses are spending? well, i think over a period of time the answer is yes. i mean, look, a lot of people make the argument, it may not be
constant communication. that was on a deficit fight, though. in a way it is leading up to the debt ceiling. there s no way to attach the deficit to linking this to the c.r. this is a spending issue right now, right? so this is the continuing resolution. it s because the senate hasn t passed has only passed one appropriations bill of out of the last 48 on time. thanks in part to mr. cruz. okay. you can blame a single republican. but all previous republican and democratic majority leaders in the senate found a way to work with their minorities and get things done at budget time. isn t there a difference between the clinton era and this time in the newt gingrich area they believed in smaller government. these tea party people believe in no government. if they believed in no government they wouldn t be happily voting on these symbolic measures to fund the nonobama care parts of the government. i think the difference between
today the chamber of commerce put out a letter asking house republicans to stop playing games with the debt limit. you previously told house republicans no to raise the debt limit. is that still your opinion? it is. they need to address the spending issue. americans realize that one of the great problems that we have in this country is this massive debt that s been created. multi generations the business community versus republican politics, that s where you re coming down? i m coming down with the people of the united states. even though you ve increased your debt by 300%? the bottom line is we ve been growing at a state. we ve got a bond rate as high as and your debt. the debt in the state of texas is one of the per capita our debt in the state of texas is one of the fourth lowest in the country. so the idea that we ve increased