This transcript is automatically generated
The central planners have such good intentions they just want to feed the hungry heal the sick help the elderly.
But there ever increasing -- -- -- in the name of accomplishing these things creates nasty unintended consequence.
The one that scares me most is our debt.
We're in a course toward bankruptcy.
Politicians promised people like me mostly the baby -- so much more of Medicare Social Security.
And other stuff that there's just no way that they that you can pay for.
So what's gonna happen.
Riots like we've seen in Greece.
Or massive inflation -- still just print more money I don't know.
For years congress ignore this problem but this year finally congressman Paul Ryan -- colleagues to at least acknowledge the problem.
He released we call this path to prosperity inflate our way to our eventually get us out of the death spiral.
His plan didn't even cut spending it just slowed its growth.
It wouldn't balance the budget for May be fifty years.
But he was still the vilified for this said pictured someone who looks like him pushing -- off a -- Congressman Ryan joins us now.
-- -- first -- Republicans ran premier mild plus hand it was just -- -- -- Newt Gingrich called it right wing social engineering.
But now in just -- seven months the needle has moved to new apologized and I bet most Republicans now support your plan or bigger -- You in you know what -- -- I would call a mild.
I was trying to write a plan to be consensus we've moved the center of gravity.
We've taken on what they called a third rails these entitlement programs -- to the big drivers of our jets.
We're taking on the tax code.
And we are showing the country that there's a different way to get out and that we can get back toward limited government economic freedom and I feel pretty good I don't know where we are and how we've brought this -- Station board what you should feel -- back to -- kind of amazing thinking about it that her.
Fifty years the needle did move at all we -- know welfare state and I subtly.
Serious everyone's talking seriously they have the heritage plan in this recent plan released by the Tea Party group in your plan would take fifty here is their plan takes four years.
Heritage has won ten -- is all kinds of good ideas out there.
And we believe me I believe to be a lot earlier than fifty years we just have -- to conventional score keeping but the government uses to estimate these things.
And they don't think to actually -- creates economic growth.
If you use the heritage scoring of our planet it it occurs the budget is balanced far earlier the debt is paid off far faster.
The whole point of this is we are taking a debt trajectory which right now.
Just goes into the stratosphere.
Our debt doubles in ten years in -- goes up to about 800% of gross domestic product by the end of -- the century.
And what we do is we get a -- going down and paid off and totally under control that's the conversation we're trying to have the American people.
We move this along a lot we're still gonna get hit with a wave of demagoguery a negative ads in the next campaign.
But what I've learned in southern Wisconsin.
I've -- over 500 town hall meetings on this very topic.
People are ready to be talked to like adults not like children.
And all they know we -- I wanna talk I wanna talk to you like one because I have one quibble with your plan.
Sure which which is you talk about shrinking that federal workforce by 10%.
Over the next three years.
Through attrition and I've heard other Republicans say all this through attrition why attrition -- -- management why not fire that 10% worse.
No we do cut we do we cut immediately we take back but he -- plus some.
-- we take back the plus I think is a 124000.
Something in that neighborhood.
But Obama added we take that back we cut that spending -- we go -- back down to 2006 levels which gets rid of a lot of those.
Slots ends then we put our Tricia plant in place.
A three to one for every three people who retiree replace one -- To a do a big cut on the federal workforce then we trade after that.
Your chairman of the House Budget Committee -- recently issued a report about government spending crowding out private investment -- called it debt overhang.
In the US jobs me.
Who sent us this graph so please explain it looks like cut man lying on his side.
Yeah right in its in -- symmetrical with the each other the top line.
Is business investment fixed business invest in the bottom line is unemployment.
What -- basically shows you is business is if they invest.
In their businesses plant equipment from -- Factories machines that people are hired to run.
That reduces unemployment.
So the more business and invest the more jobs are created the -- businesses invest in their business is the less jobs -- -- it's pretty axiomatic pretty simple.
And look what's going on we have a huge chilling effect on business investment and what what's going on right now is the president.
And -- is party leaders believe in this sort of keynesian economic doctrine that says well -- of the economies are growing let's go to borrow a bunch of money.
Tax a bunch of money and spend through government to replace business investment tourist place -- consumer demand flat to call its it acts like a catalyst gives -- a jump start.
You know one dimensional way it's logical -- private demand is is is not doing well what substituted for government demand.
But what we have learned is what it does it gives -- a huge debt overhang.
-- -- remember for every budget deficit we run that's something that's something more than -- tax increase is what businesses seat.
Is I huge wave of tax increases.
Currency debasement inflation and interest rates on the horizon.
Because why -- government spending so why invest that's a whole point so business investment is.
At a real all time low and it's because -- government activism we have lots of economic data that shows us.
All this new government activism the new regulations the new spending in the borrowing in the taxing.
Is putting a massive chilling effect and uncertainty -- -- -- just don't invest in with no business investment you know job creation.
And that's why this is all wrong I would literally argue that the president's policies.
Are pretty much the opposite of what we need.
To get prosperity and job creation in this country.
As usual all the schemes of the political class have unintended consequences thank you congressman -- You bet thank you John.