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‘Cut, Cap & Balance’ Plan Gaining Support?

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    Rep. Jim Jordan, (R-Ohio), on efforts to reach an agreement in the debt negotiations.

  • Duration 5:42
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I want to welcome Republican congressman Jim Jordan of Ohio chairman of the Republican Study Committee.

As great to see you again congressman today.

-- -- with you aren't so -- -- balance that obviously got a going to be voting on it.

What's gonna happen everybody seems to think -- -- not gone conclusion that it's going nowhere after it passes the house.

Well we we we don't know that month and if if he always go thing conventional ways and you never try anything of that that really matters gonna have any real.

Real significance and in real meaning -- look let's pass it to the house which is gonna happen today.

Let's and into the center and see what happens I tell folks all the time in every Friday night there's there's there's one team that's favored.

And editing could be a big underdog but we still kick the ball off -- still play the game solicit it to the senate.

Let's have Harry Reid bring it up let's have a debate that's what the American people -- in.

And Hillary knows what could happen.

In -- we tried so are our goals -- through the house and I with a strong vote and then hopefully here we will bring it up for a vote in the senate that's that's what we need.

Are very much to further and moved on that well focusing the right path.

The the advantage here is that you guys actually have -- plan on paper so you know -- goes to you guys for having that.

But there's some criticism out there that I want you to respond to from the Center on Budget and Policy Priorities here's what they had to say.

These cuts would equals seven tenths of -- percent of the projected gross to -- domestic product in fiscal year 2012.

And -- -- -- the lots of roughly 700000 jobs in the current weak economy relative to what the number of jobs otherwise would be.

-- -- -- balance is one of the most ideologically extreme pieces of major budget legislation to come before congress in years.

If not decades this is extremely.

-- think you -- it.

We're say did do Americans think we should cut spending yes they know ahead on fiscal -- that doesn't work -- they think we should cap -- so we may limit the growth in government.

Limit the size of -- relative to our economy yes and -- we need a balanced budget amendment to ultimately bring some.

Sanity to the fiscal situation here.

Of course so -- -- common sense plan it's not a Republican plans on ideological point it's a common sense American plant painted it to say that this.

That does is make it is actually makes no sense to me this is the right thing to do well.

In I guess you bring common sense to Washington at everybody gets upset right -- on how to deal with that exactly I think you know there -- -- at an editorial in today's Wall Street Journal.

On the balanced budget amendment and their -- seems to be that hey look we tried this before it doesn't really work we don't really like the idea of it because at the end of the day.

We can't get tax cuts in a world with a -- balanced budget amendment.

How do you respond to that.

That it -- welcome our respondents say look what we know doesn't work is a -- -- that's what we got a fourteen trillion dollar national debt.

So you can still get tax that you can still get economic growth.

But you gotta get your fiscal house in order or you're you're scaring everyone right now in the market you're not getting the kind of activity we need so.

We know the past -- doesn't work we know we gotta change things if we're gonna if we're gonna ever get our economy growing -- we got to get our fiscal house in his effects if we stay on the current path.

We're headed off a cliff.

Everyone gets that they understand that we've got a team -- the -- look everything and we.

Every small business every township every city every county every state has to abide by -- budget requirement now the one entity that does.

I don't -- my outlook -- budget requirement let me tell my household up somewhere work.

Exactly so why shouldn't be -- to have the fourteen trillion dollar deficit or debt at the do the same thing.

Like Harry Reid is calling your plans all all kinds of bad names and we need to respond to that's.

He says that stupidest constitutional amendment I've ever seen get.

How do you respond to that.

That.

Again this is the guy who helped get -- to the fourteen trillion dollar debt.

The idea that we're not gonna put some constraints on the fault is -- the American people instinctively know.

Politicians can't constrain themselves we need something in the constitution this is to use an overused term this is the game -- -- and ultimately fix things.

For the future of our kids and -- kids.

Our industry clear cut -- bounce -- cut 111 billion from 2012 spending and -- spending as a percent of GDP.

Mary controversial.

What -- talk about the gang of six plant out late this afternoon I got to tell you.

The markets rallied big time on the news of this plan do you see this is a break.

Through.

All of this is the same old same won't -- -- think about.

-- that the -- six plan says all this spending cuts happen in the out years but oh by the way the tax increases they're gonna take place now I mean this is the old job.

This is the old Charlie brown and Lucy and the football and the American people -- you know what we're not fallen for that game anymore we know you guys too well you're gonna you gonna promised four trillion in spending cuts but that's here 89 intent that's way out there other congress.

Detail we decide not to do that the tax cuts.

-- into the tax increases those happen now and everyone knows that's gonna hurt economic growth of her job creation is a bad idea.

You know everybody talks about default what a bad thing that would be but what -- we just simply get our debt downgraded it seems to me that's much more likely to happen.

-- and the impact of that would be staggering.

Forty planning to do to prevent that from.

Happening.

Again our plan would do that you you would that you want to send a message to the market.

This something that's never been done in American history for the first time in American history pass a balanced budget amendment through the house.

Through the senate send it -- to the states for ratification you do that never been -- -- you do that you talk about sending a positive message to Standard and Poor's and Moody's.

That will send a message and couple that with the with the reductions in spending we make -- this year frankly frankly the only unit congress controls is this year the only year we can make long is now.

You do that plus a -- -- you coming and a message to the market coming -- rally in the market that would do it -- all these other things that are being talked about.

Congressman Jordan great -- on the show today got to come back really enjoy the conversation.

Look for.

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