Giuliani says that Obama’s stimulus plan and his budget proposal is 90% of a social welfare expansion of government and 10% of an economic stimulus, which is the exact opposite of the economy needs right now – facing the worst recession in 80 years.
In trying to tackle everything all at the same time, in the face of a complete financial meltdown, the stock market has tanked and the unemployment rate is sky high.
Here is the link to the video interview:
Giuliani says the way to solve a crisis is the make the big cuts the first year (even if they are not popular), and follow up with your agenda after the crisis is over. Obama has compounded the problem with huge spending and the market is reacting as such.
At this point, Obama and the congress have two choices. They can change direction and completely reverse course, knowing that it will be political suicide, but will save the economy. Or they can stall and hope that someone comes up with a solution that allows them to keep their policies and big spending. So far, it looks like they are going to try to stall.