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WSJ Editorial Board Member James Freeman, Public Notice Executive Director Gretchen Hamel and Better Markets CEO Dennis Kelleher on efforts to balance...
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You know I had to try right it was worth -- CM our budgetary woes now Utah's senator Mike Lee is proposing a constitutional amendment to balance the budget.
Like it's not enough for -- lawmakers to realize the dire circumstances -- and we mean an actual amendment.
To the constitution to force them to only spend the money we send to Washington and no more.
Here's that senator we told me earlier.
We need to do this because we need permanent structural spending reform.
So that we don't find ourselves back in the same position every six to eighteen months and having to raise the debt -- I look at one your house in order let's bring in today's money power.
-- -- Assistant editor of the Wall Street Journal Gretchen Hamel is executive.
Director of public notice and Dennis caliber is the CEO and president a better markets welcome back to the show everyone.
I'm -- let me seventy what do you think about this would this help a lot yet go ahead.
Noble idea and it's something that we should strive for but they're -- that we needed take care of first -- that's we need actually.
Look at having a budget it's been thirteen hundred days since we've had a budget we need actually find ways to cut spending and -- get our fiscal house in order.
And it balanced budget amendment would be a great idea bet if we put something in place right now they would be forced to raise taxes instead of actually cutting spending and so I think we needed take care of cutting spending before we go about doing this -- -- amendment.
They are particularly plan they really wouldn't have to raise taxes because I think the best part of his plan is he limits spending and taxes to 18% of GDP -- that that's really the big debate in America right now is.
Is are we gonna go -- Barack Obama's plan of 25% or more of GDP consumed by government words are gonna go back to a more reasonable historical eighteen that mr.
-- proposal.
No that is an interesting point -- Dennis what do you think about that what we automatically had to limit spending.
18% of GDP currently it's 23% it's like a trillion dollars that they'd have to -- off right away.
Well I don't think we need more gimmicks we need guidance we don't need politicians having these things which they claim a meaningful which are not.
If you would -- have GDP the budget at 18% of GDP you'd be cutting over.
But trillion dollars a year out of the budget for ten -- so instead of instead of filing a little bill that says somebody else should automatically do this.
Put out a budget if you're senator put out a budget that actually cuts a trillion dollars from this year's budget.
You couldn't cut it from where defense discretionary.
Medicare Social Security step up lay out your actual cuts the problem we have.
Isn't that -- we don't have enough gimmicks like the budget of the of the budget amendment we get plenty -- -- we don't have got she gonna cut Medicare.
By that amount or you gonna cut Social Security as a defense because where -- Hi this is making -- -- couples is ever because Gretchen no one has any guts and Washington so we need I think now we can't rely gimmicks we got to rely guts you know we're skirt.
When we did when I mean that's where this -- this -- -- but to -- and then you have to wonder kiwi even get this done.
Because they can't even cut spending if they can't even take on defense cuts that they can't even take -- security or Medicare and prioritize who we needed in this nation.
Do you really think they're gonna have the -- to have a constitutional amendment angry on that.
Meaning you have to wonder that I mean it's a great idea I think it's awards why should looking realistic I had enough that I have and what should we because -- that we.
Even solve the sequestration probably mean I don't know what's realize that hadn't been well I think.
I think markets are we still have the automatic cut off in place given that into you like that -- yeah yeah this is a start toward fiscal saying it took more and more every -- came.
Wherever we can get up I mean this is and maybe the package you would design but that you know amazing.
News flash that margin is gonna -- -- spending so yet but -- -- what did you examine got asked James echoing.
Gonna show it may in the future what -- you.
Well I think the problem is talking about cutting spending in theory everybody agrees on.
But let's focus on real things -- this spending gets cut on very that -- -- spending money gets spent on very important things Social Security.
I'm the average recipient of Social Security -- average income per year is less than 20000 well it does.
Because the way we did bogged down every time that we try and talk about what's fair where can you -- -- K and then everybody has it hasn't -- -- -- -- eight.
I mean hello makes more sense to go on a percentage basis to every thing -- there's -- -- across the board except what you're gonna but you're -- -- and then.
James -- what is it well no he'd probably love -- well yeah.
-- -- If people Melissa people really do that and spell it out what it would mean to do across the board cuts that's fine if they would just spell it out and agree to do it.
But remember this spending is done on some very important things that people want to spend money on and they don't wanna pay for it but they -- -- receive it I don't I -- I wanna receive anything James what I just I think you gotta give some credit to Republicans like Paul Ryan like Mike Lee who have spelled out some cuts but have been attacked by the White House every time they cover but we both ends.
Medicare you know one of those big untouchable things you say don't wants to touch they've talked about reforming -- the problem is.
There's no our appetite in the White House stood out for many of the -- It's not just a White House G I mean you -- this city right the -- to act and you also let's not forget.
The house talking big gain in Paul -- talking big game -- they have to have a majority and we haven't always seen a majority come through on deals like knowing what's going to say he is an outlast each of you before we go do you think anyone really wants to cut spending I mean we're talking about Democrats Republicans.
I'm sure anyone really wants to tackle the problems go ahead -- it's a tough job ahead they had no choice this issue -- our time Dennis go ahead.
Look I think we need to get spending and revenue in balance you can't just do this solved by spending cuts you've got to have revenue increases -- And anti poverty programs that people in the United States want.
James go ahead last word like playing criticizing what he wants to cut -- -- is Ron Johnson Tom Coburn -- not hopeless you've got some votes -- -- okay.
Guys thanks so much stripped of power -- appreciate -- and thank goods that.
Thanks -- -- now.
