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Getting Debt Under Control

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    Former Representative Jim McCrery weighs in on the campaign to fix the debt.

  • Duration 4:57
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Right Nicole -- the president Obama's fiscal cliff club meetings now just getting underway with the labor leaders that's today and tomorrow turning its attention to the business sect community.

They either way we turn our attention to former congressman Jim -- from Louisiana and is a member of this campaign to fix the debt that's been getting a lot of attention to the steering committee.

With us now she could see from from DC but congress the first -- -- thanks for coming on.

And I say that description getting a lot of attention as you got Alan Simpson never -- vols have all these business leaders should now.

Jeff Immelt of GE on down and you what did you watch what effect do you think you can have on these negotiations.

Well the purpose of the campaign thinks the debt is to create an atmosphere that allows members of congress policy makers.

To make the tough decisions that have to be.

To be made to get our our debt under control.

I was in congress back -- 9596.

When we get welfare reform and 97 when we made pretty deep cuts to Medicare.

Those are very difficult votes for members of congress take.

So the campaign to fix the debt.

Is designed to -- I have the back out of the policy makers.

From a political standpoint so that they can make those tough votes to give them cover essentially so I'd say let's all hold hands and jump together because this is difficult and that's what's gonna happen -- you think.

Yeah I mean.

You could say to give them cover but what we want to do is educate the public to make sure that the public understands the importance.

Of members of congress making these tough votes and and that even though they may disagree with them.

On the particulars here and there overall.

They've got on the public has to understand that these votes have to be made that we've got to solve this problem.

-- are economy is going to be in the tank in the not too distant future and our children and grandchildren will suffer.

Couple questions on that because it had a few conversations just this hour about these.

These issues one the most recent moments with somebody in the markets.

Op -- UBS and he said probably cut mean based on a couple years maybe two years before the market really gets Addison says the bond market and said and an.

Says the we -- said the interest rates start to shoot up which is a message saying eight get your act together.

But until we see that will we see the necessary action because that would force the hand of government.

But if you don't -- low rates the business like force the hand.

Well that.

That's right but.

I think if we get to the point where the market starts to take action to discipline.

Our habits it's too late for policy makers that's why we've got to do this soon.

So -- we can't wait until the market is tired of BS and starts imposing higher interest rates which will lead to devalue the dollar.

Which will lead to a lower standard of living and that's what I'm talking about when I say it'll be very unpleasant for our kids and grandkids will probably make it okay.

But do we want to leave that to the people who follow us I don't think so so policy makers need to act now.

So that we can phase -- a solution that takes care of the problem and we don't face those draconian measures that the market will impose on.

-- OK that's the first part the second part -- wanted to go and ask you about is revenue and and the Republican mindset on this and you're just looking comments the last few days it seems and people are more and more inclined to say that he did that.

What -- recall whether its rates and other gonna negotiate the details or its closing of the polls that we're gonna higher taxes is that fair.

Well I think it's fair to say that.

If we have a solution to these big problems that are facing the country it's gonna take compromise is -- to have to be a bipartisan solution.

Any -- permanent that's done in congress and a and a on big.

Programs has to be done on a bipartisan basis and you get there you've got to compromise on both sides on the democratic side and on the Republican side.

So yes revenues will be part of the picture as well entitlement reform.

All right so then -- that -- and this conversation tell me what you think the final deal proceeding we have a deal what the final deal looks like.

And may be active phrase it this way how do you think the final deal as it's constructed will be different than -- Simpson Bowles.

Well I think it will be different from Simpson -- There there are a number of plans that have been produced.

Dimension Rivlin number of them.

And they they all have that combination of revenues and entitlement reform and so it's gonna look.

Something like those but not those particular details.

And I think and I hope that tax reform.

Will be part of the package not just an increase in the rates -- an increase in taxes the tax reform.

A long way a very serious and deep entitlement reform.

That will produce savings over the long term and those entitlement programs that are really at the root of the problem.

Parents may be able deeper on that and Simpson -- but that's that's sounds like -- and -- -- you guys your script is pushing something similar to.

But it's already been constructed and rejected to this point sensible stuff former congressman Jim -- thank you --

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