laffer says this won t solve anything. why not? well, this is typical of president obama. but it s a subsidy, a transfer payment, a raises taxes and will slow economic growth. what you really want to do is not lower the numerator, ie the amount of debt. what you want to raise is the amount of income. to reduce the debt burden by creating jobs and higher wages, that is what we all want. and that s what obama is not willing to do. this problem has gotten so huge because the drop in employment is so large and a lot of these people don t have job, a lot of the people don t expect to work. they got it for an education, but it s terrible. they have lower incomes, don t have jobs and so you have a real serious debt purdue problem that should be solved by economic growth, not by the silly things that obama is doing.
in the makers versus takers argument, it s become a political a political point. listen to this, ron. government keeps growing and growing and growing, and when it grows, that means there are more people in the wagon and less people pulling the wagon. you have an eminent economist here on my right saying it s nuts to pull back some of the stuff. you have politicians on the right saying, this is makers and takers. we need more people pulling the wagon, not in the wagon. yeah. i think the core animating drive for the tea party and the tea party movement is not so much the overall size of government, it is the idea of transfer payments. and, you know, part of the a big part of the resistance to the bv b health care is polls by us and others show it is viewed essentially by the white middle class mostly as a transfer payment for the poor, whereas those same voters are much more resistant to changing social security and medicare. that i think is the rub. that is where the poli
it is corrupt because you ve got a lot of people who are not reporting off the books income but still getting a check. gretchen: you re not being mean to poor people? i am being mean to poor people. frankly i am because this is a direct transfer payment from this group of people who pay taxes to this group of people who never paid a dime in their lives but they get a check from the government. gretchen: that is not their fault. steve: you may call it corrupt but that s the deal. if it s so complex, why are we overpaying? because it is corrupt? steve: i heard that part. steve: a lot of people are, they have off-the-book income, cash income. they don t report that. but they still get the check. their actual income is much higher than what they report. steve: they re misstating their income? yes, they are misstating their income? brian: i doubled my salary this year shoveling snow and no one knows that. is that what you re talking
loaning the students at isr is $8 billion that go to obama-care. he wants half of all small business income in america. his principle tax cut is taking money from people who pay taxes and giving it to people who do not pay tax. virtually all of his so-called tax cuts involve inessence transfer payment for the 50% of people who pay taxes to the nearly 50% who don t. megyn: they struggle against his image that the republicans only like rich people. i thought convention helped. you have people like susanna march continues and marco rubio. i only went to college because i got a $1,500 a year scholarship. i m a republican and you saw
deals that will never work. cheryl: john, individuals can file for bankruptcy, individuals and local businesses so why not a state filing for bankruptcy and starting over? because it will drive the borrowing cost through the roof. if you take off the implicit guarantee of the united states government behind california, illinois, new jersey. the rates to borrow money would be self-fulfilling prophecy. $432 billion, the highest ever was done in state and municipal bonds. 27% of those were buy american bonds. that program ended december 31. that is funding that dried up. the stimulus in the first part of this year. medicaid, payment to the state. 33% of state s budget come from the federal budget, directly in transfer payment to the state. 42% goes to the state and municipalities. you have a strong head wind.