Tuesday 02/05/13 Batchelor First Hour

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Co-host: Larry Kudlow, The Kudlow Report, CNBC; and Cumulus Media Network

Hour One

Tuesday  29  Jan 2013 / Hour 1, Block A: Dr. Michael J. Boskin  Hoover Institution and Stanford University, in re: Taming Leviathan James  Buchanan: public economist.  The govt will continue to expand and expand until the citizenry draws that to a halt. Now, we've seen a breakdown in the rule of law- EPA, e.g., tries to invent lay and is slapped down by courts;  Federal Reserve has pressed it's authority to extreme limits, probably overreaching now.  WE need constraints, e.g., Constitutional amendment requiring balanced budgets. With Soc Sec & Medicare, complicated.  Congress has slightly tried, but it's more Swiss cheese than solid. Taxes: Jim Buchanan favored very broad base and low rates. Also, to fund Social Security: if we didn't have Social Security, too many people wd show late in life on some other govt program, so while it’s better to save for retirement, not abandon people.

Tuesday  29  Jan 2013 / Hour 1, Block B:   Dr. Michael J. Boskin  Hoover Institution and Stanford University, in re:  Larry was on to something: The best way to read Pres Obama: wants a larger govt, a legitimate view; put in addtl spending as emergency, and now he's trying to protect it. Continuing resolution at previous levels, avoid cuts, and return for more taxes. Stuffing the beast."  Deeply unfortunate. Not only makes the populations cynical abt Washington, but also – Reagan and Tip O'Neill shook hands; not here.   Need Constitutional provisions and enforcement mechanisms.  In a very bad economy and deep recession, maybe short-term benefit – say, mil spending – from govt spending. As soon as the economy is out of crisis the effects of govt spending become overwhelmingly negative.  Budget ceilings and revenue floors.  What we have now is lawlessness where a t least one body, the Senate, refuses to issue a budget. How can the people know where their money will be spent if the Congress won’t even put out a budget?

Tuesday  29  Jan 2013 / Hour 1, Block C: . Steve Moore, WSJ, in re: Harry Always Wants More - Reid demands another tax increase even as revenues begin to climb. Who runs the Beast? Obama wants to raise taxes as much as he cans because he wants to spend more.   Coming: an energy tax on everybody?  Today's CBO numbers: spending down to 21.6% of GDP in 2015. Do we buy this? [Nuts} – don’t expect this sort of spending restraint; they're fantasy numbers.    ObamaCare and fiscal cliff tax increases.  Claim that if we diminish spending by $85 bil, it'll derail the economy, but if we increase taxes that'll be good.  Keynes: "What drives the economy is spending, not investing."   The whole idea of tax reform was to close loopholes and make it more efficient. Who invented the sequester? Pres Obama.

Tuesday  29  Jan 2013 / Hour 1, Block D:  David M Drucker, Roll Call, in re: Obama to Propose 
Short-Term Fix to Avert Sequester   President Barack Obama will call for a short-term fix to avert across-the-board spending cuts Tuesday afternoon, and wants new revenue to be part of the deal, according to a White House official.  Also: House Leaders Weigh U.S. Spending Bill Below $1 TrillionQ2 ; Meat Inspections Face Cuts Without Sequester Deal, Vilsack Says - The U.S. will need to reduce the number of inspections at meatpacking plants unless Congress can avoid threatened across-the-board spending cuts set to take effect in March, Agriculture Secretary Tom Vilsack said.