Not really sure what to say here. This interview got nasty in a hurry. Blackwell tried to make the case for even more government spending because the last trillion dollars generated jobs, just not enough. Cavuto tried to point out the nonsense of it all, insults started to fly and what happened next is pure platinum TV.
Cavuto starts it all off with a simple question, if the first stimulus didn’t work (and it didn’t), why do another? Blackwell starts talking about how bad it would have been if it were not for the stimulus, throws in a little “it’s Bush’s fault” for good measure, and it’s off to the races. Cavuto insults Blackwell’s economics degree, Blackwell takes a whack at Cavuto’s intelligence and it all ends with “Oh, you’re an a##hole”. Who could ask for anything more?
Seriously, the point Cavuto was trying to make that trillion dollars did not generate many (any?) new jobs, rather just keep state and city workers on the job. Blackwell’s point was if you spent even more then more than just state workers would be getting jobs and that’s where the whole argument makes Neil’s head explode, simply because there is no evidence that spending more would change anything on the jobs front. On the contrary, it is likely just the opposite.
Since the government creates no money or capital, it must take that money from others in order to spend more. This is money that the private sector would have spent anyway, or saved and invested to create capital. The government, on the other hand, must come back for more money in order to sustain the jobs it allegedly has “saved o created”. As Neil correctly points out, it is a losing proposition.
As for the line about 40% of the current deficit belong to Bush, well that’s just flat out wrong. The current budget began last October, so this belong to Obama. The budget from the ’09 fiscal year belongs to both Presidents, kind of. As Ed Morrissey has pointed out at Hot Air, the Democrats played fast and lose with the Budget at the end of Bush’s term, thus the Porkapalooza supplementary budget. In addition all budgets since 2007 have come from Democratically controlled Houses. Enough with this stuff. It’s getting old.