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National Economic Council Director Gene Sperling on efforts to reform entitlements and reduce government spending.
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Now -- our top story as the president prepares to address the nation tomorrow night.
Want to issue at the forefront of course is sequestration.
That is the 85 billion dollars in automatic spending cuts that are set to kick in March 1 that is less than three weeks away by the way.
Huge implications for Americans and the economy if these cuts kick in and Gene Sperling the director of the national economic council for President Obama.
Has been credited by some including Bob Woodward as the one who regionally came up with the idea of sequestration.
I spoke to him just a few minutes ago an -- that's really the case.
Well I wouldn't say that's exactly accurate but I get because what really happened was.
We wanted to have an enforcement mechanism that included revenues the Republicans refuse to have.
Any revenue at all and as the days were ticking by the only thing that they would except.
And the only thing that apparently was able get a 174 Republicans to support.
Was this type of sequestration that was on all spending cuts -- defense that this is not our preference she says this is not anything anybody wanted.
To go into -- fact this was designed to.
-- you pointing the way you described it to trigger would -- in our commitment even though we disagree on the composition of how to get to these cuts which is what you were saying it would lock us in the and form an automatic sequester it would punish both sides do you feel like right now.
It's punishing both sides and working and getting everyone to the -- don't.
Well my hope is that both sides feel that it would punish the economy eleven happened that it would hurt defense -- -- education would her workers it would hurt confidence in our economy so many investors and businesses.
Are put off by seen this monthly or every few months cliff war.
Sequestration.
Or dad limit threat.
So I my hope is that people would understand this is unnecessary.
And that we should come together and have the type of entitlement reform that has savings together with additional tax reform that -- savings that's balanced its bipartisan nobody will like it.
Republicans will not want to do many much revenues allotted Democrats -- -- -- I think I.
I think -- already put a lot of revenue is on the table they've been down that road and now it's time for the other side to go ahead and do some real honest spending cuts that are now.
Better president or real entitlement reform that would happen now -- response -- Well that's only that's less than half the story because really we have cut to half trillion from the deficit.
But only 600 billion.
About 25 to 30% of that.
Has been from revenues so the overwhelming amount of deaths -- reduction we've gotten including the budget control act.
That happened in 2011.
Came from spending cuts so what we have so far is balanced spending cuts and revenue but far more spending cuts and I think what we need to do going forward.
Is the type of balance that the president had what he put.
Work is -- -- -- to -- name earning one point seven trillion dollars in savings from a series of continuing resolutions.
-- now budgets that were already addicted no matter who was the president goes nuts would be what I -- already counted.
Whoever -- at a Washington does not know.
Dating and now that's not an accurate view of what the budget was that this was the budget control act which 174.
Republicans voted for which speaker Boehner said -- 98%.
Of what he wanted.
And it included.
Very deep cots.
In discretionary spending to put us on a path of the lowest discretionary spending since the Eisenhower administration.
That is well over what a trillion dollars in spending cuts then there were two -- 300 billion of additional spending cuts.
So together those spending cuts with revenue and the interest we save only lower the -- that means that we cut two and a half trillion.
With about 75%.
Of that being from spending.
I -- -- feel a lot of critics say that counting that interest that 500 billion in reduced interest payments that would result from a lower debt assumes that lowered debt down the road.
And that much like this situation we can't be trusted that those real cuts are gonna happen so to count -- As savings now when it's banking on less spending way off in the future.
Isn't fair math you know that -- dissed -- Yes.
Well that's just not the case because this was a remember this was what speaker Boehner 174.
Republicans voted for lunch -- not -- and.
OK and JUS it's disingenuous I mean I think -- does seem that the married just look at -- -- neither side is real now curious about letting down but solid -- -- problem I'll let you have the last -- go ahead.
It's the law of the land.
It is locked into law that spending has been reduced by who -- by well over one and a half trillion dollars including interest savings it is locked into.
The law of the land it was voted for in a bipartisan way.
And then yes we did get some revenues and the messages should have is that we've made progress but we have further go to Dow and we need entitlement reform.
And we need revenue -- four and we need both sides be willing to compromise.
And not allow this request Ed not traded -- by letting -- sequester they'll hurt national defense hurt jobs heard education that's the wrong way to go.
Bipartisan compromise with both revenues and entitlement reform.
Is the right way for us to move I -- -- -- we -- -- -- -- always watching to see that that is done thank you so much for coming on the show we're gonna keep watching.
Thank you.
