You're watching...
Former Council of Economic Advisors chairman Martin Baily argues eventually we are going to have to do something to control Medicare.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
This stupid party that's what the Louisiana governor Bobby Jindal is been saying he said at last night about his own Republican Party.
Fed wants to stop letting the Democrats dictate the playing field and also.
Maybe more importantly he just wants to take a knife to federal spending.
But there's a new poll -- from the Kaiser Foundation and from Harvard shows 58% of the people who were polled oppose.
Any spending cuts to Medicare -- if there's no will is there -- way Martin Bailey former chairman of the council of economic advisors to President Clinton.
And he joins us now.
What about that idea -- of the -- the Democrats seem to be at least on the right side of their resisting.
Spending cuts in terms what the public wants but is that the way that we should go about it.
Well it actually we're gonna have to do something to control Medicare if you look over the next five years.
The budget outlook is it Medicare is important but not preeminent but if you look out over ten to twenty years.
Medicare is really the big story so if we gotta tackle that long run problem stock to tackle it now.
That we really got to think about changing the structure of Medicare in a way that we don't get the explosive growth.
That we would otherwise get because not only do we spend more per recipients.
But of course there -- more more people that are going to be over 65 and eligible for Medicare so it it's a big it's a big deal something's gotta be done what and as you say.
Cutting Medicare is very unpopular that was an -- -- pew poll and and now -- so one that you just mentioned.
And and people don't like it even the Tea Party say we don't want to cut Medicare so it's not just Democrats it's it's both sides of the -- But I think it is -- to talk some of the -- for democratic.
President -- one who worked with both sides have effectively in the ninety's President Clinton about this because.
What is the democratic plan for cutting spending when there's not necessarily an incentive on their side to implement that your President Obama you go.
And so while wanna raise taxes on the -- quote rich that actually does -- pretty well.
Whereas these contests do not necessarily pull pretty -- she doesn't have an incentive to come up with a plan that.
I think we all agree is at some point necessary so he won't do it -- It look to give him credit that there are a lot of measures that -- part of the Affordable Care Act that are intended to try and control.
Health care costs Medicare costs.
By putting and a changing incentives by putting pressure on hospitals and doctors.
To lower the lower rates and and dad says so a number of good ideas in that.
Those that on the whole I think sort of marginal things that will help but we've seen actually health care spending.
Slow over the course of this recession so I think the some sign.
That some of them having an effect.
I think what's difficult for -- to do and actually difficult -- the Republicans also.
-- propose any kind of fundamental.
Redesigned to get away from the fee for service system which I think generates.
Over treatment which means.
How we don't necessarily get the best treatment in the world we just get a lot of treatment.
At some point though and and we have this conversation all the time at some point it's gonna become necessary.
But he told that what whatever the appointed time you know what it is -- could speculate about.
When that'll be -- studies of -- have been done on the an entitlement programs but until that point you don't get a sense -- I don't that the -- political action is going to be forced as opposed to somebody being -- is not -- now.
I think it's probably the case that we got a stumble along from sort of minor crisis to -- -- crisis.
I think we probably need to have brought a tax increase than them we've had the I don't think it's just enough to just -- Hit the rich united that I reduced deductions or raise tax rates while the other and then you've got to tackle a -- -- in the long run which is Medicare.
And I was both very unpopular measures.
I don't think they're gonna happen until we get forced have them happened through the effect of market so just that realization that that.
We just gone beyond the point where something needs to be done tonight doctor Martin -- pleasure having you as always on the on the shelf thanks for today.
Thank you --
