Economic Roundtable Pt. 2

" The governor ground nobody responded that. Well I mean we've been a donor state Michigan hands for -- as long as anybody can remember we've been giving money our taxpayer dollar tax. Dollars at the pump. Two other states to pave roads in Alaska and elsewhere we we would like to see some of that back as well but the bottom line is this stimulus itself. Can be there can be a second. Look at this but not as broadly perhaps has the first time around and in another words it would be good to see another. Targeted tax policy which. I think everyone it sounds like on this in this panel would agree. Would be helpful if you can target a tax incentives to job creation and job growth. That might be one way to look at it but I do think that you cannot turn your back. On the fact that you have to played defense and offense simultaneously in other words you have to protect people. During this very difficult time while the employers get back on their feet and there's one other thing I would say. Is that in this nation we have really abandoned the manufacturing and in large measure other than recent actions to -- to try to shore up the auto industry. Well if we can make sure that in this stimulus that those manufacturers. Who. In large measure can tell you in Michigan anyway auto manufactures and the suppliers. Have been on turned away by banks people who have worked for. Thirty years have been good employers have always made payroll and now find it very difficult to have access to capital because the Indian industry itself has been semi red line. If there could be additional access for -- to capital for manufactures of that TARP money could be put into banks and encourage those manufacturers to have. Access to its and that they can make payroll and can diversify I think that would be another good form of stimulus that targeted to job creation and saving jobs governor."

" Daniel someone out -- a step back here for a second you have the nickname you earned the nickname the blade. During your time has budget director for bush 43. Period in 2002001. We just wrapped up by one point four trillion dollar deficit this year nine point 9%. Of GDP. In our effort to it took to bailout the economy what about these deficits and what this debate on the economy."

" For his love -- I don't think they -- earned that that nickname I wish we'd been more successful than we were persuading congress that. Limits spending then that you know that the deficits we argued about then aren't so miniscule compared to what we're doing now. Now that the fundamental reality which again is going unattended right now is that the biggest threat that the long term future in this nation isn't even these. Breathtaking deficits. That we're now facing is the entitlement overhang that sits out beyond that. And this I wish desperately was a much bigger priority of this administration in the meantime that. To make -- and to build deficits that are three and four X anything we've ever seen before. Is is only to make a very serious long term situation worse you know how long the Chinese and others and loan us money. So that we can spend beyond our means is not clear to me. The Steve when -- where do you draw the line between they the proper role of government and all of this and the proper role of the private sector."

" Government has never increase the standard of living of one single human being and civilizations history. For some reason that simple truth has evaded everybody. The only thing that creates an increased standard of living is giving someone a job. The demand for their labor whether if you and I Chris or anybody else the people of the -- and the price for this juggernaut of federal spending. Our new middle class and the working class America. And soaring rhetoric and great speeches with or without a teleprompter. Aren't gonna change the truth. And the truth is the biggest enemy. The biggest obstacle -- the working middle class America has. It's government spending went -- Sylvia and save money let me bring in governor Granholm -- looks like he wants to come out of her seat at that."

" Well I -- so simplistic to say you have with all due respect to me to say that. Government has never created a job or increase the standard of living. Don't mean there there are a lot of people who are grateful that in this country we have. A minimum wage -- a lot of people who are. Grateful that they have access to Medicare and Medicaid and I hope that we get access further ten additional health care for those who are on. Right now uninsured -- mean there is a balance here to say that government is all evil this of the democracy it's the greatest country in the world. We happen but I will say less government than many other countries do but I'm telling you to say that there is no role for government is just -- minutes of."

" Chris and I think about it I didn't say that Chris I look like a little that the Senate promised eleven get gender got -- go ahead of mr. -- I didn't say that at all. I'm saying that the source of government revenue. The source of will be in this country. His employment that allows companies to pay taxes employees to pay taxes that's the source here. And it's gotten out of focus I agree there's not agree with -- okay that's my point governor. I'm not making any other point and believe me man. I've got. 20000 employees have had as many as 450000. Families that have been self insuring. There's nothing simplistic about my approach to this problem all right let me bring in let me bring in --"

" Handy if I can't at and I wanna throw something else in the -- as I ask you about this mr. Zandi 88 the other policies. President Obama is is pursuing at this point of major health care reform which will include out of taxes happened frayed. Policy big government programs big government spending and some more taxes as part of that. How old does not affect the decisions that private businessman like Steve when half the night."

" Yeah good point though it was just one other thing about government in the role of government I agree with mr. -- That in most times normal times the government should stay out a way that the private sector should be allowed to do what it does because it has historically been very very good job at that but. At times of crises and I think this last year and half describes the crisis -- very unprecedented time. We need to come together collectively through our government try to support or economy. And get us out of this mess and so far it's done. A pretty good job and just think back to where we were 912 months ago major financial institutions were evaporating the stock market was plunging. Housing values are falling today. The financial systems not normal but it is stable stock prices Iraq housing guys have improved so. We've made a lot of progress and that's largely because government has stepped into the breach left by panicked private sector."

" Mr. -- as a businessman with -- 20000 employees up and ask the question does that's Mark Zandi. As you look at cap and trade and health care reform and these huge deficits. How does that factor into your balance sheet in the investment you make -- money out and about the falling dollar Europe big investor. In building casinos and resorts and China -- I was all that factor into your business decision."

" Healthcare. Something I know about. Is a complicated. Technical issue for which practically everybody in this administration has absolutely. Zero experience. It was not a priority. Job creation was the priority from the days that this president was inaugurated. It has been eclipsed. By a technical confusing conversation. In which hardly anybody has read the small print. On a thing called health care that's a proper subject along with the infrastructure for healthy economy. But infrastructure and health care are things that come later. Right now our concentration. Should be on job -- You're not answering my question mr. -- and that is comes as a businessman. How do you and how did these things factor in the -- making a decision as to whether invest more or invest last whether it got wind up on her not to Della. I'm grateful to -- and China generating foreign currency. But my decision I hired I'm the only one on the bottom so far hard 5000 people this year. My return on investment is not exactly handsome. I've never laid off anybody in forty years but if this president and this administration and Nancy Pelosi. Get their way -- and all other employees let employers like myself will be hit with my employees with a barrage of taxes. That that will result in more layoffs that will not be helpful and will be counterproductive. To the very goal that we should have as a nation."

" And let's governor Daniels let's -- I'm gonna get a chance at a minute governor Granholm. The governor Daniels let's talk a little bit of politics here but you could also jump and in this debate if you want. If the economists are right and Mark Zandi says they are. And if unemployment is up over 10% -- in the next year and over 9% into the following year. Are Republicans in a very favorable political climate in November of 30 and are Democrats and real trouble."

" Honestly don't know Chris and it's just that. Such a relatively unimportant question in the right now we've got people hurting as they are businesses. Struggling as they are I do think that the American system as that. Propensity to seek an equilibrium we've been pronouncing last -- over first one party and the other for a long time and I think you'll see balance come back just because. God bless and the American people don't trust politicians and they they want to watch each other. But whether it'll be major. Recovery although political recovery or not I don't know. Let's just hope. Really I really hope that I'm wrong and I hope the recovers going to be a lot stronger than anything I can see in the borders of our state -- when I look nationally today."

" Governor Granholm and you can -- you can weigh in with Steve when if you'd like to. But the last time unemployment was over 10% during a congressional. Election. Was back in 1982 -- Ronald Reagan the Republicans lost 26 seats and house. Why shouldn't if it continues and that's what the economists say it's gonna happen why shouldn't they hold the Democrats who control the White House the house and the Senate responsible."

" Well I do think it's way early and I completely agree with governor Daniels we're all trying to make sure that. People can put food on the table that they can stay in their homes and -- we have the means of getting through this recession that's what everybody's focused on right now but. So there is I just wanna get back very quickly on on the health care peace and a cap and trade to which is something the governor Daniels raised. I think that especially. In these times but but really on a long term basis for the economy to rebound we have to look at what our competitor countries. Are doing and just as an example in Michigan. You know we we used banned that the consumers twelve to 1600 dollars for every vehicle -- domestically made American vehicle for health care. Now that's not what is being spent by other and -- and for consumers have other products that are not. For their from other countries because other countries provide some assistance there's a partnership there. The full burden of health care is not on the backs of the private sector. So in this country we have an opportunity to have a shared responsibility. So that our businesses can be in fact more competitive more cars were built in Ontario than they were. In Michigan two years ago and last year because they were they were going to Canada because of taxes -- regulation but they were going there because health care got a greater assist than a dozen United States. So that's an important public private partnership opportunity to make us more competitive. On cap and trade very quickly. I think that we have rules especially in the industrial midwest to go from Rust Belt. To green belt to make the products between not a make things to make the products that are associated with reducing class on global warming and increasing energy efficiency so I don't think we should be afraid of this at all we know that the globe is going to need those solutions. The technology and expertise and universities and manufacturing capacity. Are here in the midwest so let's embrace that and we need a place where those products -- we've got."

" Less than a minute left Steve when since I think Jim is responding to its -- me your comments you get the last word. Punishing. Attitude. Taken to the government we know what's best I don't think they do I think these are complicated subjects. Job creation. The chance to build more cars comes from people having a job focus on that simple truth simple truths. Hold institutions together we've lost our focus. And that's my opinion. That well -- thank you all -- but governor Granholm and Danielle Steve Wynn and Mark Zandi thank you all for coming in today. And let's do this again please come back. Now."