Economic Rx: Denver Voters

DENNIS COUGHLIN:

The economy in Colorado is as bad as it has been for the last 20 years. I mean, we have to go back to the early '80s in which it was this bad. And I agree with you, the economy is extremely weak, extremely weak. I, however, think there are two different issues. I do not say that… that the situation in Iraq has anything to do with the situation in the economy today. I think they're two completely different issues, and it's a very tough time to be a president, there is no question about that.

ERIC DURAN:

Well, I think, you know, if you read the Wall Street Journal or any of the financial press, so I think… I think what… maybe what you're saying Dennis, is that, you know, the president's not making decisions on Iraq based on the economy, but I think clearly the Iraq situation and the threat of war is causing instability in the markets. It's been in the Wall Street Journal. You know, they say… they say that, you know, people are feeling very uneasy and insecure and they're leaving their money in money markets and more secure investments and moving into the stock market.

DENNIS COUGHLIN:

I have to agree the war is a threat to the economy or the threat of war is affecting the economy. I think everybody will agree with that. The, the situation…

SPENCER MICHELS:

How is it affecting the economy?

DENNIS COUGHLIN:

Oh, I think there is great uneasiness among all levels of the economy, and when you have that uncertainty and uneasiness, it creates weak economic times.

DR. MORRIS CLARK:

But the whole idea of tax cuts generating and boosting the economy is not well thought through and staunch Republicans, people that are believers in tax cuts realize that for these times, it's a bad idea. But I think the tax cut itself, the $200 or $300 that the average American gets might buy you a good dinner one evening, maybe a dinner for two. That is not going to jump-start the economy.

BRENT NEISER:

But I think the economic reforms have to be multileveled, they have to be somewhat stimulative, but also long-term, because we're in a crisis of confidence. Fear is driving the markets with corporate reform on accountability, better accounting, longer-term thinking for permanency of tax cuts so people aren't wondering are they going to be cut or not. That can drive economic growth, but it has to be a combination of long-term thinking and short- term stimuli. The package he's presented has a lot of good ingredients, but it won't be the final product that will come out.

SPENCER MICHELS:

You know, the one discussion that's been fairly interesting nationally is whether tax cuts– which would benefit the higher economic groups– are… if that's the right thing to do or if even bringing that subject up promotes what they call class warfare. Is this something that, that resonates? Is this an important issue?

BETTE ROSE RYAN:

Look at the fact that the top 5 percent pay 55 percent in taxes, but of the tax cut, they only get 45 percent. That still puts them behind.

ERIC DURAN:

Well, I think… I think you've got two different issues there. One is economic fairness; the second is, do you really want a stimulus package? Now, if you give a tax cut to, you know, the top 5 percent of people that do have stock accounts and so forth, it's unlikely that they're going to use that money and spend that immediately and put it into the economy. More likely, they're just going to sit on it and use it as a gain that they've received in the past.

DENNIS COUGHLIN:

What they will be doing is providing capital that then provides jobs, but that's the point.

SPENCER MICHELS:

Mark, let mark talk for a second.

MARK AJLUNI:

It's horrible for single folks, which I happen to be one of– middle class and single– if you look at the charts for me, I'm going to save $100. $100. And I don't know anybody that has dividends. I mean, perhaps you all have dividends, but I don't know of anybody who traffics in dividends. I don't have a friend that uses dividends, but I'm sure there's a lot of very wealthy people who are going to save a lot of money in their taxes, and these aren't the folks who really need the money.

DENNIS COUGHLIN:

You mentioned, Mark, that you don't know anyone that has dividends or that that is a part of their life. The truth of the matter is, pension funds, which now are under-funded because the market went down, are supporting people exactly who you're talking about. That's the factory worker. And they are concerned about their pensions, rightfully so. Therefore, if there is a stimulus to the… to the market and we do not have double taxation and the market improves, guess what? Their pension is more secure.

SPENCER MICHELS:

I'm afraid we've got to wrap it up. Thank you all very much for being here tonight.