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Rep. Peter Welch (D-VT) on the debate over the debt ceiling and why he believes it is destructive for the U.S. economy.
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Ended at -- Welch said Democrat from Vermont.
Congressman Welch thank you for joining us I -- you say look Republicans are making the debt limit -- quote economic weapon of mass destruction.
So do you think this new plan is a continuation of that.
Now it's for it's actually progress for the Republican conference but it's not progress for the country.
But what that plan acknowledges is that that tactic is not one that they can hold onto because they know that it will plunge this country.
Into a deep recession.
But what they've done is put on a number conditions that are beyond their control or our control to execute on what but the senate will do who knows.
So this gives him I think a face saving way to say that there -- avoiding a default.
Even as a tight conditions to it that maintain.
I think this that this this it's been very bad situation that we're -- about the possibility of default.
But a short term debt ceiling increase really is and addressing the issue though I'll what's it gonna take to get that in place and I know that you of course of being.
Leading the charge.
To have the present invoke the fourteenth amendment.
-- to prevent the company from actually the country from actually defaulting.
-- which it is not acceptable option to plunge America into default in the primary -- have the power to put us in default the question is do they have the restraint.
Not too and there's an internal contradiction because the Ryan budget.
They want us to pass a budget they did pass a budget in the house.
They explicitly said that the debt ceiling would have to be -- one and a half trillion dollars in order to accommodate.
They're budget.
So this is -- a little bit of of of doublespeak here that's going on.
The debt ceiling has to go out not to give us permission to spend more money but to avoid a credit downgrade of 1% increase.
And interest payments that will cost taxpayers a trillion dollars over the next ten years.
But to get -- point do you seriously think the president may be forced to trying to invoke the fourteenth amendment.
That's gonna be a call for the Republican -- the president doesn't wanna do it he actually does want to negotiate.
And spending in on tax reform but he doesn't want to do is have that negotiation take place.
When the Republican position on the debt takes the economy hostage that's just off the table and I think the president is Smart to be firm and clear on that.
You know we use this weapon just Republicans doing at this time next time would be Democrats -- Republican president.
It we had a mutually disarm when it comes to this hostage taking of America's credit rating.
Would you agree I know it's out of your area but the senate has not passed above budget for four years now on -- Harry Reid I mean.
Would you agree with Republicans that that is not the way to go and in fact to be breaking the law.
I do agree with them and I think it's an indication of congressional -- -- dysfunction.
That we actually haven't passed a budget so I'm with them.
On this concern about our inability to actually do the basic work that -- legislature must do and that is pass a budget.
Do we really need to -- ceiling do you think congressman on -- Ben Bernanke Tim Geithner.
Rating agencies and many -- say what's the point of -- debt ceiling that US when a few countries that has it.
I mean routinely raise it anyway so what's the purpose.
There is no purpose and in fact the debt ceiling has become a device.
For fiscal irresponsibility.
In grandstanding on the part of members of congress.
The difference -- -- in the past and by the way Republicans and Democrats both that if in fact Senator Obama when he was in the senate.
Voted against the debt ceiling increase and made a speech against bush economic policies.
But we've gone from grandstanding to actual.
Destruction if we.
Have this credit downgrade and we had a credit downgrade -- you know last August when we were on the brink of default so right we've got to take this off the table for the good of the country.
But putting the debt ceiling aside although some conservatives would say -- you have to talk about spending cuts in the same breath but.
That aside you would agree would you not that that needs to be some entitlement reform we need to cut back on government spending.
Well I do I think that the big area of course it in the big challenges health care health care and the economy is costing how much more than it should.
And that is a big expenditure for government in the Medicare program it's a big expenditure for individuals and for businesses to provide health care.
So there is a need to come to terms.
With the growing cost to health care this beyond our ability to sustain and that applies to.
All of our health care including Medicare and I do agree with that the question is how do we do it do we reform.
The delivery system do we farm -- that payment system do we make the system more efficient or do we just.
Impose the cost of a better system on on seniors congressman Welch thank you so much for joining us really -- Oil.
