Greta Van Susteren Clashes With Paul Krugman On ABC 'This Week' (VIDEO)

04/08/2013 09:00 am ET | Updated Apr 08, 2013

Greta Van Susteren and Paul Krugman clashed on ABC's "This Week" on Sunday during a heated conversation on job creation.

Last week, the Labor Department released the weakest jobs report since June 2012, with the U.S. adding only 88,000 jobs. Van Susteren said that the government was "strangling" small businesses with what she called "some laughable and silly" regulations that "have a profound impact on job creators."

"There's been tons of work on this," Krugman said interrupting Van Susteren. "And what’s holding small business back is not regulation, it’s the fact that they don’t have sales."

"It's not all, it's some of it," Van Susteren shot back.

"There’s no correlation between that and actual job creation," Krugman said.

"So they're making it up?" Van Susteren argued. She also suggested that Krugman go and talk with small business owners instead of looking at numbers. "If you actually go and talk to these people, a lot of them are struggling with this."

"I have talked to them, that's not what they say," Krugman responded.

Krugman also sparred with former Reagan budget director David Stockman on Sunday over the Federal Reserve's decision to use super-low interest rates to boost the economy.

Watch the exchange in the clip above, which comes at roughly 5:45.

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