Tags: Gasparino | Cut | Taxes | Economy

Gasparino: Cut Taxes to Save Economy

By    |   Monday, 21 Dec 2009 10:14 AM

While most economists say the Obama administration’s $787 billion fiscal stimulus package is helping to pull the economy out of recession, CNBC commentator and best-selling author Charles Gasparino disagrees.

Gasparino’s new book is “The Sellout: How Three Decades of Wall Street Greed and Government Mismanagement Destroyed the Global Financial System”

“You would think they would have gotten the joke once they spent $800 billion on the stimulus package, and unemployment went up to 10.2 percent,” he told Newsmax.TV.

“Eventually you’re going to have higher interest rates from all this debt.” Those higher interest rates will send the economy right back into recession, Gasparino says.

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“They shouldn’t be spending their way out of this. If they’re going to stimulate the economy, they should do a nice big tax cut.”

The Obama administration hasn’t studied history properly, Gasparino says, because fiscal stimulus has failed in the past by taking money away from the private sector.

That was true with President Bush’s stimulus package prior to Obama, he says. The Bush stimulus package simply failed to create jobs.

Editor’s Note: Get Gasparino’s “Sellout” at a great price from Amazon – Click Here Now


“Obama doubled down on that. . . We’re going back to the well with the same measures, and they’ve proven disastrously ineffective. That’s why small businesses aren’t hiring.”

On the monetary side, Gasparino thinks Federal Reserve Chairman Ben Bernanke should be reappointed.

“There’s a degree of continuity that you need right now. The markets are clearly seeking a guy that’s been in there for a while,” Gasparino says.

“Long-term, he’s got to face the music in this sense. Ben Bernanke did what he had to do to bail us out of the financial crisis last year. . . What he needs to be held accountable for is all the stuff that allowed the financial crisis to occur.”

Bernanke and former Fed Chairman Alan Greenspan were “co-conspirators” in the easy money policy that sowed the seeds of the mortgage bubble, Gasparino maintains.

“Right now, we have easy money again. We have interest rates at near zero. We’re going to have to pay for that in some way. Sure, it’s devaluing the dollar and it could be setting the stage for massive inflation. I’d like to hear what (Reagan-era Fed chief) Paul Volcker has to say about that.”

The Fed will have to raise rates soon to “massive” inflation, Gasparino says.

He faults the Obama administration and Congress for putting so much time into healthcare reform with unemployment at 10 percent.

“We’ve spent the last six months debating healthcare, when if you put people back to work, they get health coverage. . . We’re having the wrong debate. And now we’re going to raise taxes in the middle of a recession. How dumb is that?”

The focus has to be on creating jobs for small businesses, Gasparino says.

“The only entities that can get us out of this thing are small businesses, the entrepreneurs. . . These are the jobs that generally push employment up.”

Editor’s Note: Get Gasparino’s “Sellout” at a great price from Amazon – Click Here Now

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While most economists say the Obama administration s $787 billion fiscal stimulus package is helping to pull the economy out of recession, CNBC commentator and best-selling author Charles Gasparino disagrees. Gasparino s new book is The Sellout: How Three Decades of Wall...
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2009-14-21
Monday, 21 Dec 2009 10:14 AM
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