Mountain of Debt

" Is President Obama signed the stimulus package into law but is there any evidence -- of the 780. Billion dollar bill is actually helping Americans. Stimulus projects going into effect around the country signs like -- road and highway projects around the nation that have been paid for with -- tax dollars. And yet unemployment continues to rise up to eight point 9% in April and it was eight point 5% in March so what is going on. Stephen Moore of The Wall Street Journal my -- thanks so much for being here thanks time kind of Memorial -- are right so. -- look at the numbers and you know Barack Obama certainly claims that he's had some success turning around the banking industry but we're talkin' out now but that economic stimulus. And we've got unemployment at some shocking -- ask -- this. He told us that with this stimulus. That it we would be -- in April at around a seven point 8% unemployment rate Iran seven point eight. And that without the stimulus it would be eight point 5%. It's already eight point 9% so it's hot here and then he predicted it would be. If we had no stimulus at all what does that tell you about the president's plan."

" Well it tells me -- and that this what I call the Argentina strategy of economic recovery -- borrow borrow borrow and then borrow some more. Hasn't worked very well we have lots we've been averaging about 500000. -- lost jobs every month now for the last four or five months that's a dismal record not all that of."

" And that Steve what is it -- isn't it in Lisbon then weekly jobless claims are over 630000. We do this on the morning show -- the numbers come out every week it's another 630 six thirty 630 we've -- or six million people this country or on foot now."

" That's that's right -- we've seen a massive agreed scene as you say about six million lost jobs since the since the recession started -- course that started before -- about -- president the problem is that the borrowing isn't causing. The economic growth that we hope for mega you know we've been spending and borrowing a billion dollars an hour the hour that you're gonna be -- TV tonight will borrow another billion the -- that the federal level these numbers are so huge about 30000 dollars of borrowing. Per family in America and you know what when you borrow like that and then -- tax and expanded just don't get a robust recovery now that good news -- I'm -- predicted I think we are going to see a bit of recovery this summer I think those that large numbers of unemployed that you talked about I think we're gonna see that coming down. There are some indications that up coming out in the last couple weeks that are showing some progress with respect to consumer confidence coming back the banks are making more credit available business inventories are following but you know the question is whether it's going to be a sustainable expansion I don't think you create a sustainable expansion. With massive amounts of government borrowing as he talked about in the last segment whose -- who's set taking out all these launched its basically the the Chinese Government."

" And not even that Eddie Moore but but it isn't it because -- what people have when they see this through this mounting. Debt not to mention deficit they see these unemployment numbers in the Federal Reserve came -- we can set our forecast is it's going to be a lot worse than we thought it was. And that. They see all these plans he's aggressive plans that Barack Obama still has in place laudable perhaps on paper. But but big questions about how we actually pay for that not just education reform and environmental reforms and health care reform which is a huge number four which she's not getting the funding his plans for to pay for that -- that -- able donation deductions and a reduce your mortgage interest reductions that it that there's been blown off by lawmakers that -- it when they're still big question Baghdad pay for that. But now we learn that those security is running out of money at a faster rate than predicted Medicare is running out of that money in -- faster than predicted so. Where where does all the money come from."

" Well this is the real crisis and you put your finger on the problem I mean we just found out last couple weeks that the big entitlement programs Medicare and -- Karrie have much bigger. I doubt -- sets that we ever thought possible that Social Security spent more money than it took -- this year for the first time in 25 years. And if you have a big problem we've got you know huge amounts of debt with the national that and then Social Security Medicare -- that the last thing you want to do is create a new entitlement program that you can't pay for but what's going to happen I in the next couple of weeks in a right out here in Capitol Hill. They're going to try to pass a -- and dollar expansion entitlement programs -- no way to. --"

" Alright not that -- We take it makes even more our guests thank you so much evidence of The Wall Street Journal -- the united they've been."