Michael Grunwald

  • Aired:  09/05/12
  •  | Views: 6,080

Award-winning journalist Michael Grunwald defends the Obama administration's 2009 Recovery Act, but says only six percent of Americans believe it worked. (5:48)

>> Stephen: WELCOME BACK,

EVERYBODY!

MY GUEST TONIGHT HAS WRITTEN A BOOK DEFENDING THE OBAMA STIMULUS WELL, THAT'S ONE JOB HE CREATED.

PLEASE WELCOME MICHAEL GRUNWALD.

(CHEERS AND APPLAUSE) HEY, MR. GRUNWALD, THANKS SO MUCH FOR COMING ON.

ALL RIGHT, YOU'RE A "TIME" MAGAZINE SENIOR NATIONAL

CORRESPONDENT, I DON'T KNOW WHAT THAT MEANS AND THE NEW BOOK IS

CALLED "THE NEW NEW DEAL: THE HIDDEN STORY OF CHANGE IN THE OBAMA ERA."

WHAT DO YOU MEAN "THE NEW NEW DEAL"?

IS THAT SOME SORT OF PRINTING STUTTER?

WHAT IS... WE HAD A NEW DEAL,

FIRST NEW DEAL WAS A FAILURE.

(LAUGHTER) IT WAS!

THE NEW DEAL WAS A FAILURE.

HEY, 1937 THE UNEMPLOYMENT STARTED GOING BACK UP AGAIN.

YOU'LL ADMIT THAT.

>> THEY'S AFTER THEY STOPPED THE NEW DEAL.

>> Stephen: WILL YOU ADMIT I'M FACTUALLY CORRECT?

>> I CAN'T DO IT.

>> Stephen: IT WENT BACK UP,

UNEMPLOYMENT WENT UP IN 1937.

DIDN'T IT GO UP IN 1937?

>> THAT WAS AFTER THEY STOPPED THE NEW DEAL AND STARTED TURNING BACK TOWARDS AUSTERITY.

>> Stephen: SO WE HAVE TO DO THE NEW DEAL FOREVER?

>> WHAT WE HAVE WITH THE STIMULUS IS SIMILAR TO THE NEW DEAL.

YOU HAD AN ECONOMY THAT WAS CRASHING THE G.D.P. WAS CRASHING AT A 9% ANNUAL RATE.

IN THAT RATE YOU'D LOSE THE ENTIRE CANADIAN ECONOMY IN 1989.

>> Stephen: I THINK I LEFT THE CANADIAN ECONOMY IN THE CAB ON THE WAY HERE.

WHO CARES?

IT SHOULD BE BACKED BY BEAVER PELTS AND MAPLE SYRUP.

WE'RE TALKING ABOUT AMERICAN ECONOMY HERE.

HOLD ON, SIR, YOUR ARGUMENT HERE-- AND I HATE TO TELL YOU,

IT SOUNDS LIKE THE MAD RAMBLINGS OF A SYPHILITIC BRAIN...

(LAUGHTER).

>> I GET THAT.

>> YOUR ARGUMENT IS THAT THE STIMULUS WORKED.

>> WELL, WE LOST 800,000 JOBS IN JANUARY, 2009, THEN WE PASSED THE STIMULUS IN FEBRUARY AND

THEN YOU HAD THE BIGGEST IMPROVEMENT IN UNEMPLOYMENT IN 30 YEARS.

>> Stephen: IN THE NEXT MONTH?

>> IN THE NEXT QUARTER.

>> Stephen: SO ONE POINT MAKES A LINE?

THAT'S YOUR ARGUMENT?

ONE DATA POINT?

>> EVERY INDEPENDENT ECONOMIST THAT'S LOOKED AT THIS FOUND IT

ADDED 2% TO 4% TO G.D.P. WHICH IS THE DIFFERENCE BETWEEN CONTRACTION AND GROWTH.

>> Stephen: INDEPENDENT ECONOMISTS BUT NOT REPUBLICAN ECONOMISTS.

>> SOME OF THE REPUBLICAN ECONOMISTS, TOO.

>> Stephen: LET'S TALK ABOUT THE MORE IMPORTANT ISSUE.

THE AMERICAN PEOPLE.

DO YOU BELIEVE IN THE AMERICAN PEOPLE.

>> UNFORTUNATELY, THE THE AMERICAN PEOPLE AGREE WITH YOU.

THE PERCENTAGE OF AMERICANS WHO BELIEVE THE STIMULUS CREATED JOBS IS LOWER THAN THE

PERCENTAGE WHO BELIEVE ELVIS IS ALIVE.

>> Stephen: WHAT PERCENTAGE?

AND DID ELVIS GET A JOB?

(LAUGHTER)

>> HE DIDN'T NEED A JOB, HE'S NOT ALIVE.

IT TURNS OUT THE STIMULUS IS ACTUALLY NEGOTIATION JUMP STARTING THIS RECOVERY-- WHICH

HAS BEEN A TEPID RECOVERY BUT,

HEY, LOOK, ADDING $150,000 A MONTH IS A LOT BETTER THAN USING 800, 000 JOBS A MONTH.

IT WAS THE NEW NEW DEAL.

>> Stephen: DO YOU GET A CHECK DIRECTLY FROM OBAMA OR DID THE DEMOCRATIC PARTY TO SAY THESE THINGS?

(LAUGHTER).

>> Stephen: IF YOU'RE A SENIOR CITIZEN OR A VETERAN YOU DID GET

A CHECK DIRECTLY FROM OBAMA.

(CHEERS AND APPLAUSE)

>> Stephen: NOW, LISTEN, ONLY 6% OF AMERICANS BELIEVE THAT THE

STIMULUS WORKED AND AT A CERTAIN POINT IF ONLY 6% BELIEVE IT IN SOME BASIC TRUE IF NONFACTUAL WAY...

(LAUGHTER).

DOESN'T THAT MEAN THAT IT DIDN'T WORK BECAUSE PART OF WHAT THE

NEW DEAL DID WAS GIVE HOPE TO A SHATTERED COUNTRY AND THIS MAY HAVE, LIKE, I DON'T KNOW WHAT

DID IT DO?

BUILD AN ONRAMP OR TWO?

BUT IT DIDN'T GIVE HOPE TO PEOPLE BECAUSE THEY DIDN'T THINK IT'S WORKING.

>> LOOK, OBVIOUSLY EVERYBODY IN AMERICA NEEDS TO READ MY BOOK.

(LAUGHTER) BUT...

(APPLAUSE).

>> Stephen: THAT'S YOUR STIMULUS DEAL!

>> EXACTLY.

I TELL THE STORY THAT'S GOING TO MAKE DEMOCRATS' HEADS EXPLODE.

>> Stephen: I LOVE THAT.

(LAUGHTER).

>> Stephen: PRESIDENT OBAMA SENT EVERYBODY A CHECK FOR HIS STIMULUS.

>> Stephen: $300, I REMEMBER,

IT SAVED THE ECONOMY.

>> THAT'S WHEN THE REPUBLICANS SUPPORTED STIMULUS AND MITT

ROMNEY HAD THE LARGEST STIMULUS PLAN IF 2008 BUT THEN OBAMA, HIS

ECONOMISTS THOUGHT THEY'D DO IT DIFFERENTLY BECAUSE BEHAVIORAL SCIENCE SHOWS WHEN YOU GET THE

BIG CHECK IN THE MAIL YOU'RE MORE LIKELY TO SAVE IT BECAUSE YOU NOTICE IT.

BUT IF YOU DRIBBLE IT OUT A FEW DOLLARS A WEEK INTO YOUR PAYCHECK YOU'RE MORE LIKELY TO

SPEND IT AND STIMULATE THE ECONOMY BECAUSE YOU DON'T NOTICE IT.

BUT YOU DON'T NOTICE IT.

EMANUEL WAS SAYING HEY, WE'RE DENYING OURSELF THIS IS ED McMAHON MOMENT THIS SQUEAL OF

PUBLISHER'S CLEARING HOUSE PRESSURE.

SO IT'S BEEN DISMAL.

>> THAT WOULD HAVE BEEN EXCITING TO SEE ON SHOW UP WITH THE PRIZE VAN.

(CHEERS AND APPLAUSE) ONE BRIGHT SPOT IN THIS IS THAT THE REPUBLICAN GOVERNORS OF THE

STATE IN LOCKSTEP ARM IN ARM SAID NO MONEY THANK YOU.

>> NO, THEY ALL TOOK THE MONEY.

>> Stephen: BUT THEY WERE AGAINST IT.

>> THEY USED THE MONEY TO BALANCE THEIR BUDGETS AND THEN YELL AT CONGRESS FOR BEING

FISCALLY IRRESPONSIBLE.

THE ONLY GOVERNOR WHO ACTUALLY TRIED TO TURN DOWN A GOOD CHUNK OF THE MUST BE WAS MARK SANFORD

BUT HIS...

>> Stephen: MY GOVERNOR, SOUTH CAROLINA.

HE'S A GOOD MAN, A FRIEND.

>> HIS REPUBLICAN LEGISLATURE OVERRULED HIM.

IT WAS A HUGE FIGHT AND HE SAYS IT WAS SUCH AN UNBELIEVABLY LONELY FIGHT HE TOLD ME HE

THINKS THAT HAD SOMETHING TO DO WITH HIS TRIP DOWN THE APPALACHIAN TRAIL.

(LAUGHTER) HE DID SAY IT.

(LAUGHTER).

>> Stephen: REALLY?

>> HE SAID IT WAS AN EXTREMELY...

>> Stephen: OBAMA'S STIMULUS STIMULATED GOVERNOR SANFORD IN WAYS NO ONE EXPECTED.

WELL THANK YOU SO MUCH FOR JOINING ME.

MICHAEL GRUNWALD, "THE NEW NEW DEAL." WE'LL BE RIGHT