Fiscal crisis: Where do negotiations in Congress stand?
Rep. Kevin Brady on whether we’ll fall off the ‘fiscal cliff’
- Duration 6:29
- Date Dec 7, 2012
Rep. Kevin Brady on whether we’ll fall off the ‘fiscal cliff’
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Of the market is up ten points on the Dow the NASDAQ and the S&P 500 are lower the reason there consumer confidence.
Awful in December -- just not feeling too good about these things.
Lately and that's one of the reasons that.
The economy might be struggling a little bit.
And the fiscal -- the other reason and that is what we're gonna talk about right now with congressman Kevin Brady from Texas joining us from Houston right now I congressman.
Hey Harry you and thanks you have -- on banks for comment time.
So I guess the first question for you would be where do we stand right now I mean I don't know him an answer -- -- where we stand on that yet nonsensical saying fiscal -- venture probably.
I'm now getting -- -- I'm no unanswered questions were not a good place for most the week was a lost week White House negotiators were not.
On Capitol Hill know -- and discussions took place.
You know press conference here you have president meeting with the payment of kitchen table bear but I think the real work just isn't getting -- on this.
Yet you know governor Bobby Jindal from Louisiana wrote something yesterday saying how structurally.
Congress is gonna have to change.
In order for anything to get done because it just seems that both sides just cannot will not.
Ever agree on what needs to be done and the economy and businesses small businesses big businesses that consumer everybody's just caught now in the middle of -- Currently not.
Well you know I I think this fiscal cliff is.
Been a real concern continues to be a concern affecting hiring decisions but it you know this and certainly.
Has been going on for years and I really think what we hear back home here in Texas.
Our main street businesses tell us you know this obsession with higher taxes especially on them.
It presents new health -- law and a lot of new regulation coming down the pike.
You know those the reasons they are both in some cases holding -- -- Another case and we're seeing job losses as a result from it so it that this is really critical time in really critical -- come together and solve some musicians.
Let's talk about the jobs that you just brought up because Texas has been creating jobs -- Yeah we've really been -- -- wells matter -- yet it especially compared to Venetian.
But they only get this jobs report likely just did a couple hours ago for November and -- it's okay we.
-- the jobs report the headline number that a weaker than 46000 created.
Yeah on the surface look great because -- beat expectations by almost twice what most experts believe that is -- looked.
Closer underneath -- saw some troubling problems and when more people dropping out we're at NB continued -- thirty year low that's not to sign of a healthy economy.
Businesses are still holding on.
In hoarding cash not willing to make those investments in in buildings equipment and software that always drive the economy in fact if you look at our economy -- three main sectors consumer spending is above where was before the recession so as government spending.
Business investment in those buildings equipment software still lags that's a troubling sign.
-- let's talk about -- government spending that's a major problem right now right we've been downgraded.
By standard and -- is.
Moody's -- I believe as well issued a warning endowment now we have a sixteen point three trillion dollar debt we do with us.
Figuring -- thank -- week that.
Now without significant cuts and not without addressing Social Security Medicare I think the -- it.
A credit so rating agencies are looking not just stamp the fiscal cliff.
Not just that discretionary spending where it's -- they really want to know is America's serious.
About tackling its biggest financial challenges.
Social Security Medicare are they are in the reason Republicans are insisting we deal with it this coming year is because one.
This -- get worse the longer we bury our heads in sand and secondly.
We are clearly -- invite the downgrade of our credit rating that's a huge mistake.
Yes I'm actually gonna quote you as -- quoted yesterday in The Herald dispatch because these are pretty powerful words.
You say doing less than four years under president Obama's leadership -- national debt has increased an astonishing.
Five point four trillion dollars.
That is equal to four billion dollars a -- a 170 million dollars an hour.
Two point eight million a second and more than four two point eight million minute and we have 47000 -- -- that's how much money.
It is in fact I think part of the problem is our deficit.
He is in debt is so large I think it is hard for average people to understand I never dreamed it.
We'd see ourselves in this position but but we held a hearing yesterday's joint economic committee.
Economists from both sides -- but they agreed on this a while we -- compared the size of our economy we're in a very dangerous zone.
We've got to dresses.
Yet still -- a question is when are we gonna fall off the fiscal Clinton did they wanted to offer that.
You know I do I think presence or decide to move off the cliff.
Blame Republicans probably a very good political victory.
Form in the short run I think long term not a good decisions certainly bad for the economy bad for America.
-- look there's some there's some common ground here and I really think the new revenue.
The John Boehner is offered through economic growth.
That's -- solution because if our economy was just.
Where was before the recession in 2008 we would have cut our deficit and a half this year not one point one truly.
Before 130 billion so with spending restraint we can get to balanced -- again.
I think that's the right balance.
Yeah so so that Christmas deadline that the market -- light when President Obama gave that for a solution to this debt you don't believe it.
-- not going to be very prison White House.
You know I don't think it will be -- name what's interesting that the market.
During the debt ceiling crisis they were -- -- but everyone of us knew we were gonna come to solution in this case they seem fairly.
Comfortable that it will get done in -- I started -- very optimistically.
On this not so much anymore.
Now congressman Kevin Kevin Brady thank you you speak very clearly you.
The -- complicated stuff that you make understandable thank you so much for joining us happy early holidays -- -- Your website Kevin Brady.
Dot -- -- was just up on our screen.