David Stockman

  • Aired:  12/02/10
  •  | Views: 30,237

David Stockman wants America to get out of debt by letting the Bush tax cuts expire and cutting the defense budget. (6:39)

>> Stephen: WELCOME BACK,

EVERYBODY.

MY GUEST TONIGHT WAS ONE OF THE

ARCHITECTS OF REAGAN ONLYICS.

I'LL ASK MY QUESTION TO A RICH

PERSON AND LET THEM TRICKLE DOWN

TO HIM.

PLEASE WELCOME DAVID STOCKMAN.

( CHEERS AND APPLAUSE )

HEY, MR. STOCKMAN, SO NICE TO

HAVE YOU ON.

IT'S JUST A THRILL TO MEET YOU

I'M A HUGE FAN.

>> WELL, THANK YOU.

>> YOU KNOW, YOU, IF YOU DON'T

MIND ME ASKING, YOU KNEW REAGAN.

>> I CERTAINLY DID.

>> DID YOU HAVE TO WEAR

SUNSCREEN AROUND THE GUY?

DID HE EVER JUST SPLIT LOGS WITH

HIS BARE HANDS IN THE MIDDLE OF

CABINET MEETINGS.

IT IS TRUE HE AND TIP O'NEIL

USED TO RUSSELL OVER

LEGISLATION?

>> NO, BUT THEY USED TO TELL A

LOT OF IRISH JOKES.

WOULD YOU LIKE THE HEAR ONE?

>> SURE.

>> I CAN'T DO IT HERE.

>> Stephen: PERHAPS AFTERWARDS

OVER APOTATO.

THERE'S ONE GUY IN THE WORLD WHO

CAN ANSWER ALL THE ECONOMIC FOAS

WE'RE FACING IS YOU, REAGAN'S

BUDGET DIRECTOR.

FINISH THIS SENTENCE...

>> AMERICA

CAN FIGHT FOR TWO WORDS, SLASH

TAXES FOR ALL, PAY FOR MEDICARE

AND SOCIAL SECURITY AND NOT

RAISE THE RETIREMENT AGES SCWU

BY CUTTING TA...

>> IF YOU'RE INTERESTED, I HAVE

SOME SWAMPLAND IN FLORIDA.

>> Stephen: WHY CAN'T WE CUT

TAXES?

>> WE CAN CUT TAXES IF WE

CONTROL THE BUDGET.

WE HAVEN'T CONTROLLED THE

BUDGET.

WE'VE BUILT UP DEBT.

WE'VE NOW MAXED OUT OUR NATIONAL

CREDIT CARD.

>> Stephen: WHAT'S WRONG WITH

THE DEBT?

DEBT OR DEFICIT, DOES IT MATTER

WHICH WORD I USE?

>> DEBT IS THE BETTER WORD.

>>

>> Stephen: CHENEY SAID

DEFICITS DON'T MATTER.

>> HE WAS WRONG.

AS YOU KNOW WITH DEBT, ONE, YOU

HAVE TO PAY IT BACK SOME DAY.

>> Stephen: YOU HAVE THE PAY

IT BACK IN THE FUTURE.

BUT THIS ISN'T THE FUTURE.

THE FUTURE IS NOW.

>> BUT THE FUTURE IS NOW.

>> Stephen: NO, IT'S NOT, THE

FUTURE IS... IT'S NOT EVEN NOW.

IT'S EVEN FURTHER IN THE FUTURE.

I THOUGHT I'D WAIT FOR IT, BUT

IT'S STILL NOW.

>> IN 1918 WE HAD A TRILLION

DOLLARS WORTH OF NATIONAL DEBT.

DON'T WORRY ABOUT THE DEFICITS.

WE'LL PAY IT OFF IN THE FUTURE.

NOW WE'VE GOT $14 TRILLION WORTH

OF DEBT AND IT'S BECOMING A HUGE

BURDEN ON THE ECONOMY.

AND IT'S PUTTING OUR ECONOMY AT

RISK.

WE'RE BURYING OUR CHIN AND

GRANDCHILDREN IN THIS DEBT.

>> WHAT DO YOU THINK ABOUT

EXTENDING THE BUSH TAX CUTS.

YOU DON THINK WE SHOULD DO THAT?

>> NO.

>> BUT CUTTING TAX RAISES

REVENUE.

I DON'T KNOW ANYTHING ABOUT

ECONOMICS, BUT IT'S CALLED THE

LAPPER CURVE.

>> IT WOULD BE BETTER CALLED THE

LAUGHER CURVE, LIKE TO LAUGH.

>> Stephen: OKAY.

I UNDERSTAND.

I AM HIP TO THE THEME.

>> GOOD.

GOOD.

GOOD.

>> Stephen: WHY CAN'T WE CUT?

I MEAN, THIS IS OUR

REPUBLICAN... MY REPUBLICAN

FRIENDS ARE TELLING ME WE JUST

GIVE THE RICH THEIR TAX CUTS AN

REVENUE WILL GO UP.

>> WELL, THAT IS NOT TRUE.

IF WE GIVE THE RICH THEIR TAX

CUTS, ESSENTIALLY IT'S TAKING

UNCLE SAM'S CREDIT CARD, HANDING

IT TO THE TOP 2% TAXPAYERS IN

THE COUNTRY AND SAYING, GO OUT

AND HAVE A GOOD TIME, BUY SOME

MORE STUFF AT TIFFANIES AND

MAYBE HAVE A CARIBBEAN CRUISE ON

OUR CARD WHILE YOU HAVE IT.

>> Stephen: AND THAT

STIMULATES THE ECONOMY.

THOSE ARE PEOPLE THAT CREATE

JOBS IN AMERICAMENT

>> IF YOU BELIEVE THAT, WE

SHOULD BORROW $10 TRILLION, GET

IT OVER WORK AND DROP MONEY OUT

OF THE HUNT.

>> BUT TRICKLE-DOWN ECONOMICS IS

WHAT I'M TALKING ABOUT.

THE REAGAN ECONOMICS WAS TRICKLE

DOWN ECONOMICS.

IT'S LIKE YOU'RE SLAPPING

YOURSELF IN THE FACE.

>> NEW YORK I'M TRYING TO SOBER

UP ACTUALLY.

>> Stephen: OKAY.

YOU SAY... PLEASE.

>> NO, I THINK WHAT I'M REALLY

SAYING IS THE COUNTRY HAS TO

SOBER UP.

WE'VE HAD A PARTY LIKE NONE IN

HISTORY FOR THE PAST 30 YEARS,

HOUSEHOLDS HAVE BURIED

THEMSELVES IN DEBT.

THE GOVERNMENT HAS BURIED ITSELF

IN DEBT.

NOW WE'RE COMING TO THE DAY OF

RECKONING, AND WE'RE GOING TO

HAVE TO CHANGE OUR WAYS.

AND IT'S NOT GOING TO BE A LOT

OF FUN.

>> Stephen: SO WHAT ARE YOU

GOING TO CUT?

YOU ALSO HAVE TO CUT SPENDING.

>> WE OUGHT TO CUT THE DEFENSE

BUDGET.

IT'S $800 BILLION.

>> Stephen: CUT THE DEFENSE

BUDGET?

>> ABSOLUTELY.

>> Stephen: CULT THE DEFENSE

BUDGET?

>> YES.

>> Stephen: LISTEN TO THEM

HAND IN FEAR.

WHY NOT JUST HAND THE KEYS TO AL

QAEDA AND PUT LADY LIBERTY IN A

BURQA AND BAN BAKEON.

IF YOU SHOW WEAKNESS, THAT'S

WHAT YOU DO.

AMERICA'S ENEMIES WILL CLOSE IN

ON US.

WE HAVE AN $800 BILLION DEFENSE

BUDGET AND 99% OF IT HAS NOTHING

TO DO WITH THE GUYS IN THE

JIHAD.

THE LEADER OF THAT MOVEMENT IS

TAL GUY WHO CARRIES AROUND AN

IRON LUNG.

FOR TEN YEARS WE HAVEN'T BEEN

ABLE TO FIND HIM NOTWITHSTANDING

THIS MASSIVE MILITARY MACHINE WE

HAVE.

SO THE ANSWER IS WE GOT TO GO

ABOUT THIS IN A TOTALLY

DIFFERENT WAY.

>> Stephen: ONLY TWO THINGS

YOU NEED TOO CUT, CUT ROADS IN

STATES I DON'T GO TO AND SOCIAL

SECURITY FOR PEOPLE I'VE NEVER

MET.

>> THAT WOULD SAVE A LOT OF

MONEY IF WE COULD CUT ROADS IN

ALL THE STATES THAT WON'T PERMIT

YOU TO COME.

THAT WOULD BE MOST OF THE

COUNTRY.

SO WE COULD SAVE A LOT OF MONEY

THAT WAY.

>> CERTAIN BLUE STATES.

NOW, WHAT DO YOU THINK OF THE

SIMPSON BOWL STUDY THAT SAYS

WE'RE GOING TO RAISE TAXES HERE

AND CUT SPENDING OVER THERE.

WHAT DO YOU THINK OF THAT

PROPOSAL IN

>> WELL, IT'S AN EARNEST

IMPRINT.

THEIR MINDS ARE IN THE RIGHT

PLACE.

THEY'RE TRYING THE CALL

ATTENTION TO THE ISSUE, BUT THEY

DO VERY LITTLE ABOUT IT.

NEXT YEAR, THE YEAR AFTER, THE

YEAR AFTER, THINKING THAT

SOMEHOW WE CAN GET AWAY WITH

CONTINUING TO PRINT ALL THIS

DEBT AND RUN ALL THIS RED INK

AND HOPE THE CHINESE KEEP BUYING

OUR BONDS, AND IF THEY DON'T,

HOPE THE FEDERAL RESERVE CAN

KEEP PRINTING MONEY...

>> Stephen:, WHAT'S THE WORSE

THAT HAPPENS.

SAY EVENTUALLY CHINA COMES FOR

THEIR DEBT.

WE HAVE AN $800 BILLION

MILITARY.

CAN'T WE JUST POINT A GUN AT

THEM AND SAY, YOU AND WHAT ARMY.

>> WHAT'S GOING TO HAPPEN IS

THEY'RE GOING TO COME FOR THIS.

>> Stephen: I SEE IT.

>> WE'RE GOING TO END UP GIVING

THEM THIS.

>> Stephen: WHAT?

DID YOU DESTROY A DOLLAR BILL?

THAT IS A FEDERAL OFFENSE, SIR?

>> OKAY.

DON'T TELL ANYBODY.

>> Stephen: WE HAVE TO END

THIS NOW JUST SO I CAN DISTANCE

MYSELF IF FROM YOU.

DAVID STOCKMAN, THANK YOU SO

MUCH.

FORMER BUDGET DIRECTOR FOR

RONALD REAGAN, DAVID

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