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Transcripts For CNNW Erin Burnett OutFront 20120609 : vimars

CNNW Erin Burnett OutFront June 9, 2012



"outfront" tonight is the economy, stupid. in a surprise news conference today the president blamed congress for keeping americans out of work. >> they left most of the jobs plan just sitting there, and in light of the head winds that we're facing right now, i urged them to reconsider because there are steps to take right now to put more people back to work. >> the president is angry that congress has not passed his jobs bill, which sat on the shelf since last fall. part of it did pass. the payroll tax cut extension and long-term unemployment insurance, but the president wants to pass the rest immediately and the price tag is $297 billion. his bill summary, which we obtained from the white house, says that money will go to things like preventing teacher layoffs, modernizing schools, building science labs for a total of $297 billion. does spending more add up? we wanted to know the answer to that question. we did the math on how much money taxpayers have spent on stimulus since it began in 2008 under george w. bush. the first stimulus bill, this was president obama's in the spring of 2009, $831 billion. and unemployment benefits passed since that time, $185 billion and the payroll tax cut extension $93 billion, $69 billion has not been paid back and ben bernanke's tag, $2.8 trillion. if you add in the $297 billion the cost of the jobs bill, $3.8 trillion. $3.8 trillion. that is a stunning and shocking number, and here we are almost four years exactly after the financial crisis began. according to research first -- firm btig, america till has 735,000 fewer jobs than at the peak in 2007. of course, that's just an absolute number. there are more people at working age now, so the hole is significantly bigger than that. so will borrowing money now turn it around or is this a case of diminishing returns? 100 billion, 300 billion, and then 3.8 trillion, throwing more money at a problem may or may not help fix it. "outfront" is robert reich and dan mitchell senior fellow at the cato institute. dan, i want to make it clear that given the timing of the financial crisis, most of that money was spent under barack obama, but george bush started it with the t.a.r.p. plan and before the crisis began he did a stimulus plan earlier that year. this is a bipartisan stimulus spending environment, and i'm wondering whether you think it's worth spending any more? >> i agree with you completely. bush was a big spender, interventionist and obama is a big spender. and an interventionist. but it's not a question of diminishing returns, it's negative returns. keynesian economics didn't work for hoover and roosevelt in the '30s and japan in the '90s. we should copy countries like singapore and hong kong and estonia and switzerland that keep government spending under control. more resources in the productive sector of the economy is the key to long-run sustainable growth. >> bob reich, should we be spending more right now? i mean, even if you were in the camp to get more money earlier, if you didn't get it, does it make sense to put a few hundred billion here, or is that piecemeal way not going to do it? >> as long as the private sector continues to hold back in terms of hiring and utilizing resources, as long as we continue to have high unemployment, the question is where is the boost going to come from? where is the growth going to come from? unfortunately or fortunately we only have one force left to actually boost the economy and that's called government. over the long term dan is right. we have to get government spending under control. over the long term. just like we came coming out of the great depression, we had world war ii which was a massive government program. i'm certainly not advocating anything like that. but that got us out of the depression. when you have that much underutilized capacity and unemployment, you have to have spending. >> now you have the debt and it's rising, robert. you spend more money, the private sector goes i'm so worried about indebtedness in this country and they might batten down the hatches more as opposed to opening them up. >> i think it's done to the dominant european philosophy, you have a lot of capacity not being used that has got things worse in europe. that means a deeper recession. that means fewer people working, that means fewer -- less revenues into government. or whether you embrace i don't care what you call it keynesianism or cottage cheese, whether you embrace the notion if the boost is not going to come from the private sector, at least immediately in the short term it's got to come from government. what i think the president is saying and what he said today, congress, i'm not asking for the moon. i'm asking for some common sense, targeted things that we need to do with regard to the mortgage crisis which goes on, with regard to providing tax breaks for businesses to hire people. and with regard to simply creating an environment that is more conducive because of enough stimulus in the economy to get things going. >> dan, i mean, specifically, i mean, you can go through any one of these and make fun of the line items and laugh at them, but there's a serious point that robert is making. when you look at the gap that we have in this country, the estimates -- very rational ones that 35% of our budget gap is because of revenue, you know, so we get more people working, you get more revenue. that might make the argument for stimulus to get them working. >> but the question gives you so o-called stimulus? i don't think that government borrowing a bunch of money out of the private sector, spending it on cronies of the administration is a recipe for growth. now, robert talked about europe. i think europe is very instructive because there's a giant difference between what i call public sector austerity and private sector austerity. in countries like france and england and italy they're raising taxes, they're squeezing the private sector for their quote/unquote austerity. i look at the baltics, estonia especially, they cut government spending. not the make believe way we do it in washington, in estonia in 2009, in 2010, government was actually smaller. they're now growing. a big feature in the news about how they're prospering even though they have the euro just line greece. i think the lesson from europe is high taxes is the wrong kind of austerity. less government spending is the recipe for freeing up resources for the productive sector of the economy. >> thanks to both of you. i have to hit pause there. we'll have them back and please let us know what you think. we know you feel strongly and not about the same things on that issue. still outfront, who will be mitt romney's right hand man? yes, it does appearance that most likely it will be a man. but who knows. vp poll. they just voted. and how americans feel about a controversial new immigration law. the results, frankly, shocking to many. and a federal agents found the drug that's responsible for the string of flesh-eating attacks? we have some more information for you tonight. 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[ heart rate increases ] woman #2: but i don't even live near the water. what you don't know about flood insurance may shock you -- including the fact that a preferred risk policy starts as low as $129 a year. for an agent, call the number that appears on your screen. our second story "outfront," the vp pageant. a parade of potential romney vps took center stage at a meeting of conservatives in illinois. here there are. >> barack obama's leadership is driving this business, the united states of america towards a fiscal cliff. >> we can't afford another four more years of this administration. >> let's look at the record. 40 months of unemployment over 8.1%. that may be the best that barack obama can do, but that is not the best that america can do. >> a new poll out from the conservative political action conference shows marco rubio is number one. he got 30% of the vote. a distant second, new jersey governor chris christie, followed by paul ryan at 9%. other notables as running mates, rob portman and john thune and tim pawlenty. but the big question isn't not just who mitt romney will choose, but when. row land, i'm thinking of everybody making their choice. they wait until the conventions. what's the strategy here? i mean, you get a lot of benefit from the speculation game, but when's the right moment for him to make the choice? >> the right moment is when they choose it, right before the convention. again, the more time you give the folks in the media that means a lot more stories a lot more drama. you want to shrink the window, if you think. the thing about this poll, first of all, we didn't say 520 people voted. boy, a huge number of folks voting on this choice. so if you look at the people who are were at the bottom, those are likely the people that mitt romney is likely to consider versus those at the on the of this actual vote. >> are you surprised? i could say marco rubio, obviously favorite of conservatives. rick santorum. others on that list. but chris christie, he's got the most liberal -- conservative gun laws in the country. he is -- the guy is considered a liberal by a lot of conservatives. >> he is, but he's a great name for republicans. he's a fun guy. he says things as it is. he's got that new jersey brashness, if you will. i think -- i'm not surprised by the result of marco rubio. look, this is not a people's choice award. it's a mitt romney's choice. but these cpac polls, he won the cpac poll when it was still in the primaries. i think ruio would be a great choice. he has a deep bench of great candidates to choose from. for vice president. i think, you know, folks like portman came in low because they don't have as much name i.d. certainly mitt romney knows him. he's a solid choice. as is tim pawlenty. but somebody like rob portman does not have the name i.d. in front of the cpac crowd. >> yeah, mitt romney did win the cpac vote in february. i was there for a day. trust me, when his name is mentioned it's not like the room was enthusiastic. so obviously, very conservative crowd here. but if you're mitt romney, you really want a candidate who can do no harm. frankly, i think out of all the people on here portman is getting all this attention, i personally think bob mcdonald is a lot closer to -- in terms of what mitt romney may need. governor from virginia. the story he can tell. so i think, you know, i think so much heat has been on portman. i think a lot more may go toward mcdonald once the choice is made. >> and three of the guys -- three of those guys are from very important swing states. >> of course. >> rob portman is from ohio, marco rubio from florida. and mcdonald is from virginia. i think the geography may be a factor in this one -- in this race. >> roland, what about chris christie though? i mean, he's been tireless campaigning on mitt romney's behalf, endorsed him really early and the guy is a fighter. i mean, he would be a good debate with joe. >> first of all, a lot of us in the media love chris christie because he's a walking talking sound bite. he will throw a punch at somebody if he could. but again, one of the issues that you have to ask yourself if you get a chris chris tee, what do you get with that? you have mr. dry and dull as all get out mitt romney. do you want to be in the position where your vp nominee could overshadow you? we know how that went last time for the republican, didn't go well. i think mr. boring will choose somebody equally boring. >> you have to admit though, you have to admit though, the thought of biden/christie debate is entertaining. >> but ain't nobody voting for the vice president. they're voting for the president. >> i don't know. we'll see. this is a good one. thanks so much to both of you. they'll be back. next a showdown at the ok corral. we take you outfront to tombstone, arizona, where there is a fight over one of the most precious items on the planet. there will not be a triple crown winner this year. just a day before the belmont i'll have another scratched. i was there when it happened and i was with the horse's owner. our third story outfront, a showdown at the ok corral. tonight, the old west town of tombstone, arizona, which was made mistoric by the historic gunfight is the site of a fierce feud. on one side, the city, on the other the federal government. the two are in a fight over one of the most precious commodities on earth -- water. we sent martin savidge out deep to find out who will win the water war. >> reporter: tombstone loves a good showdown. at the ok corral there's one twice a day. each year, 400,000 tourists come to the town that is the old west. since the 1880s it's survived gunslingers, and mines that went bust. but they might have met their match. >> we're at war with the u.s. forest service. >> reporter: it starts with a pipeline that brings the water to the town. >> the water line here as you'll see is pretty long. it runs literally about 26 miles from the city of tombstone all the way across to the mountains. >> reporter: fires and floods have knocked out the pipes before. what's the problem now? >> well, what's happened since is the existence of the wilderness act and the national forest. >> reporter: in 1984, congress declared the national forest around tombstone springs a federally protected wilderness. preserving it for future generations, letting nature take its course and banning anything mechanical. and i mean anything. so it's true that a wheelbarrow would be prohibited? under the wilderness act? >> that's correct. >> reporter: which has made kevin rudd's job difficult. >> we walk in, we carry picks and shovels and the materials are up on our shoulders and we access it on foot now. >> reporter: it's tough going. you can understand why this seems to be the intersection of bureaucracy and common sense. >> correct. >> reporter: and that has people scratching their heads. >> right. and i say that i don't like bureaucracy and i like to think that i use common sense. but in this case, i have to make sure that we comply with the laws and regulations. >> reporter: after a few months the forest service relented and let in the machines and the water is flowing again. it rumbles through there. but tombstone wants to do a lot more work that could take years. the forest service says it's willing to consider after it sees the plans and completes the necessary impact studies. tombstone says it can't afford to wait and it shouldn't have to it's filed a lawsuit against the national forest service. >> we're at risk. tombstone doesn't have the water it needs to protect its citizens. >> reporter: tombstone's showdown is popular with some across the country, who send the town their support in the form of shovels. >> martin, where are you right now? i know that you're not anywhere near a road or anything. tell me where you are, how long it took you to get there, martin. >> reporter: yeah, erin, we're up in the mountains which are outside tombstone, some 26 miles away from the city. it was a two-mile hike to get here, up steep terrain. took over an hour. but this is essentially the source of the water for tombstone behind us. one of the springs and there's a work crew here. it was part protest and part work crew and they were using only picks and shovels, trying to protect the spring. they fear next month the monsoons could damage them, so they're trying to reinforce them now. they hope to continue that protest and work tomorrow. >> and how come shovels, why not drill wells? >> reporter: you know, that's a good question. i asked the same one. in tombstone they say it costs about $1 million to drill a well and the problem they have around here is arsenic. they have already three well, two are contaminated with arsenic. they can't afford to spend $1 million and then run into a well that's got arsenic. this is the most affordable choice they've got. >> thanks very much to martin savidge, reporting from arizona where a lot of out of state volunteers are trying to dig for the water. still outfront, hopes of i'll have another's triple crown over. he was forced to withdraw from the belmont. the horse's owner tells me about how he made that heart breaking decision. do americans think police should stop suspicious people and check their immigration status? well, we have an exclusive poll here at cnn. it could influence federal law. that's next. i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them, so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. an accident doesn't have to slow you down. with better car replacement, if your car is totaled, we give you the money for a car one model year newer. liberty mutual auto insurance. you'll inevitably find yourself on a desolate highway in your jeep grand cherokee. and when you do, you'll be grateful for the adaptive cruise control that automatically adjusts your speed when approaching slower traffic. and for the blind spot monitoring that helps remind you that the highway might not be as desolate... ...as you thought. ♪ welcome back to the second half of "outfront" on a friday. we start with stories we care about, where we focus on the own reporting from the front lines and we have breaking news tonight. attorney general eric holder assigned two attorneys to investigate possible leaks of classified information. the attorneys will direct investigations that are currently being conducted by the fbi. earlier today, the president denied the leaks came from the white house, calling the idea offensive. washington became concerned about leaks when classified details about a u.s. cyber attack targeting iran were published in the new book by david sanger. and an e. coli outbreak has sickened six people. one child is dead in louisiana and other states where people are sick, georgia, alabama, california, florida and tennessee. officials don't know the source of the outbreak but elizabeth cohen said investigators are focussing on meat and produce. people started to get sick in april. most recent case was june 4. well the controversial stand your ground laws are going to be reviewed by a government panel to see if they are biassed against minorities. the stand your ground law has been linked to george zimmerman who shot and killed trayvon martin. we need to know whether or not all other factors being equal the race of the victim or the perpetrator plays a role in determining the application of these laws. this is significant because 24 states in this country have some form of stand your ground law. well, 18 victims of child pornography were rescued in nationwi

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