This Sunday on Fareed Zakaria GPS (at 10a.m. and 1p.m.), Fareed sits down with billionaire investor George Soros to discuss the fate of the Euro Zone, the U.S. economy’s recent upswing, and politics. Here's an excerpt from George Soros on the risks to the U.S. economy posed by the upcoming presidential elections. Do you agree with George Soros?
Fareed Zakaria: George, what is your prognosis of the American economy right now? It does seem to be doing better than the Eurozone, than Japan. How do you read it?
George Soros: It definitely shows some signs of revival, very important is the emergence of shale gas and shale oil as a cheap source of energy, which has made manufacturing more competitive. Also the fact that you now had several years of no wage growth. So wage disparities have been reduced. And so all this is bringing a very welcome relief.
I'm worried that the politics of the election are going to interfere and put a lid on this –because the Republicans don't want to face elections where Obama can claim to have sort of seen the economy recover. So they will continue to push for austerity, no new taxes, and therefore cutting of services, which will depress economic activity and employment.
After the elections, if the Republicans win, actually they’ll undergo a miraculous transformation where they discover that actually it wouldn’t be so bad if maybe we can afford to have some stimulus.
Fareed Zakaria: So you think Mitt Romney, if elected would pursue a stimulus bill?
George Soros: I’m pretty sure that would happen. I mean, of course, Obama would like to as well. He may find it more difficult if the Republicans continue to obstruct him.
Fareed Zakaria: So in a sense, you feel that some part of this Republican opposition to an additional stimulus is just cynical? They want the economy to stay weak in an election year?
George Soros: Unfortunately, our political system is now not functioning the way it used to in the sense that the political parties are more determined to destroy each other than to lead to policies that would benefit the country.
Be sure to catch the full interview Sunday at 10a.m. and 1p.m. on CNN.