Stockman: ‘Not a Snowball’s Change’ Trump Tax Cuts Will Create 4 Percent Growth
VARNEY: "All right, all right, are you still going to tell us that if we get massive tax cuts from Donald Trump, president Donald Trump, we still won't get 4, 4.5% growth?"
STOCKMAN: "Absolutely not. Not a snowball's chance because it didn't happen then! I'm telling you guys over and over, if you take 1981 to 89 as a whole, growth was 3.4%, pretty good. That's the same growth rate we had from 1953 to 1980. No change. What we have now is an economy that is so impaired with debt. 64 trillion, not one or two. A government that is so buried in deficits and debt, that it couldn't do the kind of massive deficit finance tax cuts that accidentally happen under Ronald Reagan. He wanted a balanced budget. He was an anti-Keynesian."
VARNEY: "He cut spending."
STOCKMAN: "He tripled the debt by accident."
VARNEY: "The Democrats in Congress who would not balance the budget."
STOCKMAN: "I would say as budget director, I have more credibility on that than anyone else, and I can tell you the Republicans wouldn't cut it either. We needed to reform social Security, wouldn't touch. Needed to reform Medicare, wouldn't touch. Needed to reform farm subsidies, they wanted to keep it going. We needed to get community development and national endowment for the arts, all the things that Donald Trump wants to cut today, I left in the vault at OMB as failed cuts from 1981 because Republicans wouldn't cut them."