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Rep. Welch on Debt

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    Rep. Peter Welch weighs in on the approaching debt ceiling.

  • Duration 4:34
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-- get into this more here throughout the hour for now we want to direct conversation congressman Peter Welch he's a Democrat from Vermont who voted yes on the fiscal cliff Steele -- -- As far as -- fiscal package that will stabilize the US economy.

This deal falls far short but with the prospect of a catastrophic national default in just two months from now.

What does he see happening in Washington represented -- of these have joined us now from Capitol Hill.

Sir welcome to happy new year.

-- sentencing do you thank you so we say the deal falls far short you mean more people should have seen their taxes go up this year would you like to see that threshold from 450 joint filers down to that.

250 level.

But the main thing I would have liked is what the president and speaker Boehner have been working on that's the grand bargain where he had literally try to put everything on the table and have afford.

Trillion dollar debt and the deficit.

-- that eluded us and that's the disappointment.

And we've got that.

That fiscal cliff situation coming again but the debt ceiling went to sequester in March.

But what we did accomplish was we've looked at this in a very pragmatic way and took a step.

Innocent modest step but it's a step in my view in the right direction and obviously market reaction is cheering the fact that we moved -- right direction I want.

He you know.

To your point about the grand bargain because.

Congressman I think it's worth reminding our viewers.

That the largest parts of the federal budget are exempt from cuts the entitlements as well as the interest payments on the national debt how optimistic are you that we can.

Get meaningful entitlement reform.

And then make.

Cuts that will make a difference and decrease the rate.

I mean I might have been asking at this point four actual deficit reduction but just increase the rate of that growth.

-- see if you've hit the heart of the problem -- in health care whether it's Medicare or private paid employer provided health care.

The -- health is going up often -- two and three times the rate of inflation.

In this country course pays the highest and health care of any western industrialized countries huge competitive disadvantage.

So does the folks were saying hey we gotta deal with this costs their right.

And Republicans and Democrats agree on it -- we're having a battle is a lot of us on the democratic side think we've got to reform how we deliver healthcare.

Got a have prescription drug price negotiation we can find savings.

Republicans approach has been -- cut benefits.

It -- to save money and somehow we've got to find a way to work together towards a common goal of making the costs of health care affordable so.

Let's talk now about the approaching debt ceiling because I understand congressman you've gathered.

Signatures.

Basically supporting the president whether or not he wants to invoke the fourteenth amendment of the which would allow him to raise the debt ceiling without -- approval of congress.

So.

Why then are you so confident that we need to raise the debt ceiling without getting those cuts like why would you be satisfied is my question we'll -- -- I actually think whether it's Republicans or Democrats we both -- -- on the debt ceiling but it's a pretty bogus issue and it's like you bombed by a refrigerator he put it on your credit card and then the credit card bill comes in in the month and you say it's above yourself decided.

Limit on how Mitchell payout a credit card so congress is really pretty irresponsible.

In playing with the debt ceiling.

A lot of collateral damage to the economy but in fact congressional policies that pre existed when the debt ceiling cats.

All required the spending that then has to be so when it was.

-- even having a debt ceiling because if you ask a lot of my colleagues to help tell you first and foremost the US is in.

Danger of going the way of Greece right now with being extremely over alleged ever over leveraged he's -- and experience -- credit shock without sky high interest rates which.

To my personal -- we haven't seen yet rates are a little higher today but that's just as we have a market rally we haven't seen well.

I mean it's it's a fair question -- there's only two countries should have a debt ceiling it's Norway and in its us.

Mean bottom line is the fiscal policies you're taxing and spending policies that you -- over the course of time to get into trouble.

And we've made a lot of I think profligate decisions you know from my perspective.

That the war Iraq the war in Afghanistan on the credit card that's the first time we actually lowered taxes during.

-- wartime conflict.

The bush tax cuts didn't pay for themselves.

And and so anything we get it back and forth that the Republicans and Democrats Tennessee's congressional policies.

That need to be excessive debt in our debt does have to come down.

Yeah well you know congressman thank you for your time you very optimistic about a grand bargain many people echo that sentiment.

Thanks for your time and once and happy new year represented Peter -- same yet.

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