i'm erin burnett. "outfront" tonight, showdown ant camp david. the world's heavyweights are in the ring. the g-8 leaders arriving today. president obama having them all at guests as camp david. a fancy din play a bunch of games and hang out, and literally, that's what it's like. but it's also going to be a little bit like, like a boxing fight. like the fight where tyson took off the ear of evander holyfield. they're going to take it all off and fight. [ bell rings ] >> reporter: francois hollande the challenger, wants to borrow a boat load of money and say sayonara to the money cuts. and telling angela merkel her austere ways of over. the ref, the guy with the smile hoping not to get hit with body blows or parts is barack obama. a big decision to make. side with more cuts or risk his presidency say heg wants to borrow more money now to save the economy? all smiles aside, this choice may decide whether america remains the world's biggest and best. one person fighting since day one for spending, paul krugman. critical of the president's stimulus plan, at the time help said it was too small. the nobel prize winning economist says the only way to win now is spend a lot more. he joins me now. a pleasure to see you, sir. how much more do we need to spend? >> well, at the moment i'm calling for about $300 billion a year. for basically until the economy is back on its feet. so it's a -- it's a significant amount of money. i mean, the main point is we've been doing the reverse, instead of spending more. the stimulus, never much of a deal, long since gone. happening now, anti-stimulus. cutting back at the state and a major drag on the economy. extreme austerity it's not working. we're still stuck in a depression, as i say in the title of my book. >> yes. let's get in the rain, then. a lot of people watching who agree and a lot who want to wring your neck saying we have a debt problem. right? the fiscal cliff. the number, 15.7 trillion in debt for this country. the congressional budget office interest payments alone exceed medicaid spending by 2018, spend $1.2 trillion more a year now than we bring in. how much debt is the too much? you're going to borrow more. right? >> two things to say. one is all of those numbers are enormous because america's enormous. we're an, a $15 trillion a year economy. debt, i don't like the level of debt. i was actually a big opponent of those too big, unfunded bush tax cuts and those too big unfunded bush wars, and if we hadn't done those things we'd have come into this with a lot less debt and be a little easier about doing what needs to be done now. the fact is, advantaged countries with their own currencies able to borrow on their own currencies are able to carry debt for a long time. this is not an urgent crisis. i'll become a fiscal hawk, but not now. the other thing to say, right now trying to bring that budget deficit down doesn't even work. doesn't work in purely fiscal terms. it shrinks the economy, damages our long-run growth, when workers are unemployed they eventually drop out of the labor force and don't come back. students never get their careers started out of college and those are our future taxpayers you're undermyroning. so this is not the time. >> i'm interested in, on the bush tax cuts and the wars, certainly they are the two biggest components of the deficit, but they're done. right? it's in the rearview mirror. ken rogoff, you know him well, has written extensively of countries getting out of december crises, said once your debt is 90% of the economy, growth is choked often. we're at 101% and growing every day. >> i disagree very strongly with his conclusion. i think he's got the causation backwards. if you look at it most of the cases that he points to, which are high debt and low growth, is actually the low growth that led to the high debt. japan is deeply in debt and it's a slow growing economy. what happened first in japan was their growth collapse bawd they didn't do an adequate job of stimulating their economy after the big bubble ended in the early 1990s and the debt followed from that. it's the collapse of their economy and their economic growth that led to the debt problem. >> one final thing i wanted to ask in terms of how to pay for it. you're talking borrowing now, once we get growth, paying it off. the "new york times" magazine, great article. talking about a whole issue of raising taxes saying you could tax millionaires at 100%, didn't have anything left in the next year and wouldn't get as much money as if you raised taxes by just 8% on people who make between $150,000 and $200,000 year. bill clinton said something i wanted to play it and get your reaction. >> you could tax me at 100% and you wouldn't balance the budget. we are all going to have to contribute to this, and if middle-class people's wages were growing up again and we had some growth in the economy, i don't think they would object to going back to the tax rates that were obtained when i was president. >> professor, do you think we need to get rid of all the bush tax cuts? have them go up on everybody? not now, but that's where we need to go? >> or something like that. in the end they were based on false premise. which was, we had plenty of money. we didn't. we need higher faxes on the rich because it's not going to solve the problem but can make a major contribution. in the end, middle-class people will probably have to pay somewhat more. i probably wouldn't do it just by rolling back the bush tax cuts. i'd do it in other ways but better than nothing. in the end we have a long-run budget problem. nopt as big as the current deficit, largely because the economy's in the tank, but a long-run budget problem which has to be solved through a combination of higher revenue, better cost controls in medicare. a bunch of things we need do. no one, single bullet there, but we could end this depression right now without having to solve that longer run problem. >> all right. thank you very much, professor. appreciate it. everyone let us know what you think. did he make the case? of course, tweet me. "outfront" next, the obama campaign take as page from newt gingrich. we'll tell you why. sentenced for a dui crash which kill add young man. tonight a millionaire sr. not behind bars infed is at home in his mansion and an update on amy copeland. you met the college student fighting the flesh-eatering bacteria. [ male announcer ] this... is the at&t network. a living, breathing intelligence teaching data how to do more for business. [ beeping ] in here, data knows what to do. because the network finds it and tailors it across all the right points, automating all the right actions, to bring all the right results. [ whirring and beeping ] it's the at&t network -- doing more with data to help business do more for customers. ♪ (female announcer) most life insurance companies look at you and just see a policy. at aviva, we do things differently. we're bringing humanity back to life insurance. that's why only aviva rewards you with savings for getting a check-up. it's our wellness for life program, with online access to mayo clinic. see the difference at avivausa.com. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ now for today's number two. it has to do with -- these two guys. joe rickets and curt schilling. rickets is the owner of the chicago cubs and curt schillings or, star pitcher retired for the boston red sox. it's not about baseball. no. it's about money. actually, no. it's about your money. john avlon is "outfront" now. you say these are examples of political hypocrisy. explain. >> yes. get the government out of my life, cut spending unless it's corporate wefare a that might benefit the bottom line. for an awkward reason his super park got an ugly pitch. rejected when it came to light. check the name of his super pac. ending spending action fund. all dedicated to reining in spending. then our friend curt schilling, retired running a video game company calmed 38 studios. relocated from massachusetts to rhode island in exchange for republican incentives. this past weekend bounced a $1.1 million check. they may be having solvency problems. >> wow. and owing state taxes, $35 million? >> 1.1 the bounced check. that brings us -- >> brings us to tonight's number. $225 million. what the heck is that? who screwed me on that? >> the grand total. break it down. $150 million is the price tag on the amount that the rickets family are asking chicago and illinois taxpayer to pitch in for renovation of wrigley field. $75 million is the amount curt schilling's company has on the hook for the taxpayers of rhode island. what they have to relocate to the state. bouncing a $1.1 million check, that's $75 million guarantee doesn't look too good. two states deep under water with budget deficits. >> and two people shown to be a little hypocritical tonight. by avlon. and when enemies become newt gingrich is at a fund-raiser for his friend. says, i hate your guts, when you become the nominee, come behind you and campaign for you. in this case, gingrich was rather obsessive and viral criticism about bain capital. >> he's been around saying his 25 years in business are a major part why he should be president. fine. look at his 25 years in business. what was his approach? it is a question of judgment, of values and of character. and we know of one case for sure where they put in $30 million. they took out $180 million, six times as much, and the company went broke. >> so this week the obama campaign is copying newt gingrich hitting hard at romney and bain. and hogan, good to have you -- nice tie, hogan. >> thank you very much. >> i like that tie. that takes courage and look goods on you. let me start with, james. newt's back track and his bain attack saying they won't work pap that dog don't hunt, dough try it, barack. give it up. maybe barack should give it up? >> because newt gingrich told him to give it up? i don't think it qualifies as good political advice. and romney is the one that put it at issue claiming he created all the jobs. he just claimed he just made a lot of money but quite different. if you're going to talk about the jobs you created, why complain to somebody that's going to talk about the jobs you destroyed, too? that's part of the deal. and newt gingrich made his point and i think obama will make the same one. >> will newt's support of romney help him? is it going to ring hallow? we played one attack. there are many. i remember being in south carolina. a nasty couple of days between those two. >> well, voters pretty much have short memories as it relates to things like this. don't forget, tim pawlenty gave a best attack on mitt romney maria and a couple days out of the race, all over the country talking how great romney will be as the next president. that's part of politics. you and i both know barack obama and hillary clinton had one of the most difficult, harsh campaigns in a long time and they kissed and made up since then. that's the way it works in politics, and we unite behind the republican ticket, because we know we think he's better than the president. so that's the bottom line and that's where it will continue to go throughout the summer and on into the fall. >> all right, hogan. so you've given a statesmanly jefferson-like response. let me play what you said about mitt romney in march. >> he wants us out so he can stop talking conservatism and go back to showing who he was as governor, being pro-abortion and pro-choice and being against the nra. things he's uncomfortable talking about as you've seen on the campaign trail. he stumbling through those parts of his speech but want to go back to talking the moderate conversation because that's who he is at his core. >> but you like him? >> it's not about liking him, it's about trying to beat the president. mitt romney has run for president two times now. got to know him pretty well the first time around and this is what we do. we fight and scrap and claw and try to become the nominee. once he's chosen with unite and trite to push forward. disagreements in the primary. that makes the party stronger, the primary process stronger but unite behind the nominee because we know our nominee is better than the president. and on mitt romney's worst day he's still ten times better than barack obama. >> james carville, people do forget, but if they forget what every says, then don't they look at the ads running and ignore them, too, all of these negative ads? why even worry about those? >> well, a lot of people do, but look, this thing will be a close race. going to be one on the margins and some of these attacks when are repeated can have effect and their campaign will have effect. it's very close. it's interesting to see how it's going to wash out. >> james, last week you said that democrats who are counting on the president winning needed a wake-up call. it wasn't going to than close. just in the past few days you've been vindicated. mitt romney is raising money's in key areas, swing states, been looking he is leading the president, you no e, fairly solidly. so did the democrats get it now? get the challenge that they're up against? >> well, i think people do. my point is that incumbents all over the world, this is not a very good time to be an incumbent. look, in the end, it's going to about close election. the president will prevail. i don't any romney's that good a of candidate, he's shown it time and time again, but we can't take anything for granted. what i was hearing a couple, three weeks ago, people took it for granted the president would be re-elected. nothing i've seen they can take for granted at all. >> how is mitt romney supposed to fight back against the bain ads? as part of what he did in private equity, people did lose jobs and inship places gained them, some places lost. there's a truth there and can be portrayed to be a very ugly one. >> oh, it can be. no doubt about that. look, for every sad story where bain failed, there are ten stories where bain succeeded, and right now the american people pretty much understand by all polling, it indicates that he trust mitt romney more on the economy than barack obama. the promises the president made, he can't run against george bush now, he's got to run against his own record. he promised to cut the debt in half. highest in the country. grew it more rapidly than any president in history and he's got to settle with that. the american people at this time are just starting to pay attention and see who mitt romney is, and that's why they put out that new ad recently trying to frame him that way to make changes, can be different than the president a these things will go on quite some time. that's the way it works from now on. >> james carville, hogan have a wonderful weekend, both of you. still "outfront," a millionaire just sentenced to prison for dui manse slot-of-manslaughter at home instead of a prison cell. and whan did george zimmerman when he killed trayvon martin? we'll play his statement to you to police. with the spark miles card from capital one, sven's home security gets the most rewards of any small business credit card! how does this thing work? oh, i like it! [ garth ] sven's small business earns double miles on every purchase, every day! woo-hoo!!! so that's ten security gators, right? put them on my spark card! why settle for less? testing hot tar... great businesses deserve the most rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with double miles or 2% cash back on every purchase, every day! what's in your wallet? here's your invoice. the teacher that comes to mind for me is my high school math teacher, dr. gilmore. i mean he could teach. he was there for us, even if we needed him in college. you could call him, you had his phone number. he was just focused on making sure we were gonna be successful. he would never give up on any of us. uh, nope. just, uh, checking out my ad. nice. but, y'know, with every door direct mail from the postal service, you'll find the customers that matter most: the ones in your neighborhood. print it yourself or find a local partner. and postage is under 15 cents. i wish i would have known that cause i really don't think i chose the best location. it's not so bad... i mean you got a deal... right? [ bird cries ] go online to reach every home, every address, every time with every door direct mail. our third story "outfront" -- home on several millions bond. his home sits on the club of the polo club he founded near palm beach. 11,000 square feet. luxurious. he's under house arrest, wearing an ankle bracelet and lap to pay for two sheriffs deputies to monitor 24/7, can go to his office, entertain visitors including his girlfriend he adopted to avoid paying in a civil suit. he was charged with driving drunk, killing a college student and leaving the scene. is this normal? >> the such says he'd not allowed to wear a tuxedo. in the judge's discourse in court when he set the bail. 's in florida, this is not unusual. you can get bail post-conviction if it's not a capital crime and can appeal the case. the defense attorney says one of the jurors did a test. we talked about it once. >> what it was like to be drunk. >> a good faith basis. i will say this. in every state i know of in the united states, you don't get released when sentenced to 16 years in prison after the conviction, but this is florida. >> however long the appeal goes, this time will count towards his prison time if he ever has to go to prison but could add up to $100,000 to $1 million to pay for the security. ever a civil trial, he has to pay money, that's money he doesn't have. >> we could look at it that way. on the other hand, confined to your mansion with a swimming pool, not too bad. most people are sitting in a jail cell while they're appeal is pending for many, many years. >> he won't have much money left for a civil case. right jt theoretically, would that affect -- what they choose to do? >> the interesting thing about the civil case. court papers were filed indicating he's already settled the civil xas for $41 million and he says he's broke, and that his brother and sister put up the money, the $7 million for the bail, because he is bail. there are reports insurance companies may have funded the settlement. i don't really know what the truth is here and don't think he's going to be losing money. remember -- well, this is the guy who adopted his girlfriend. >> right. she's going to inherit millions of dollar, possibly. >> maybe he gets the money back. >> wow. a bizarre story. also tragic in a lot of ways. thanks to paul cowlen. and facebook's ipo. remember how excited we? fun, anticipation for a big event that everyone's looking at. then it just, you know, did a belly flop. we're going to talk about whether it was a failure. and a major update on amy copeland, the young woman battles flesh-eating bacteria.ge where you don't get thrown by curveballs. ♪ this is the age of knowing how to get things done. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision