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Former CBO Director Douglas Holtz-Eakin on the potential consequences of sequestration.
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Our first guest tonight says the sequester is a bad idea whose time has come but even if it kicks in.
The Western Hemisphere will not collapse.
Joining us now former director of the Congressional Budget Office president of the American action forum Douglas Holtz -- -- -- good to have you with this the president -- -- -- I think speaker Boehner praised it rather interestingly and elegant like the president needs to clean up the mess he made what do you think.
I mean certainly -- historical record that the president proposed this across the board method of cutting spending hands.
I think it's also matter of the record that no one likes it it was designed to be so bad.
That it wouldn't be used but.
Out we are doing the alternative which is to pick specific programs especially the ones you mentioned the -- the Medicaid's.
On the health care spending cut cut those because those other programs and on the problem since that's -- happening this is what's left an increasingly.
You're hearing people say well then -- this is what we'll do.
What we'll do is it.
Really.
Lay off a lot of employees according to the president -- he runs the government therefore these are his choices.
To lay off 800000.
Employees of the federal government because of a 2% change in federal spending.
That is frankly not -- I mean that is just and unconscionable.
I -- -- couple things about that first something we're not gonna -- up 800000 people there will be 800000 people who will be affected by the sequester.
Most of them will end up having to take some unpaid days off -- a day a week for a couple of months.
That doesn't mean that the Pentagon -- to -- the services will still be provided managers will juggle work -- that actually goes on all across America.
That the second aspect of that is the reason we get these kinds of irrational cuts is that that haven't.
-- the flexibility to move money from one place to another and that's a congressional decision they tie the hands of the Pentagon and other agencies and say look you can't move the money.
Every account gets cut the same amount no matter what it is -- personnel are going to conferences so you know that this is they've made this bed -- -- -- -- while they've made a bed and 800000.
Federal employees will be -- lying and it and as usual what consequences.
I really -- fall upon those who are not who won't rule in or anything but an elected official in this government.
This is not it seems to me and easy task for the president.
To try to deny recorded history that this sequestered throughout this idea that it didn't is still politician Lou that's what they still.
Well how tight I you know I do understand that and I don't understand what has happened to the pink little -- All lap dog press in this country that permits it.
Whether it's Democrat or Republican the president or congress.
-- to be held accountable for or malfeasance -- reasons.
And uttered just complete.
Irrational behavior.
This seems to be one of those those historic examples.
I mean this is one where it's certainly his fingerprints are all over and now I guess what really bothers me the most is there's a concerted effort to scare the American people to death and and as you said.
I don't think question canister will collapse if we have the sequester this is 85 billion dollars.
In 83 point six trillion dollar budgets in the sixteen trillion dollar economy.
And I'd be hard pressed to explain how cutting 85 billion think of -- is taking you know 85 billion out of your allowance of 3800 dollars a take an 85 bucks out.
That's that's not gonna -- things.
Percentages are there are perhaps the easiest way to comprehend this 2% most times can understand.
2%.
It is not that significant but on the other hand and it is easy to recall that rat poison.
Is mostly.
Oatmeal in most cases with 2% poison in it.
2% can be deadly and destructive and in some cases determine.
Are you saying I'm I'm sorry.
-- actually know what should argue this is a good idea.
This is as think as I was quoted -- bad idea whose time has come because.
The worse idea is to not deal with the spending that is the problem.
And you know at least they're agreeing that they're not gonna have do nothing.
So it's it's either do real spending cuts that are real choices and really passed the senate which we haven't seen passed the house president signs -- this Europe.
If at some point.
In and I know that you are are heard -- during your level best to try to bring rationality into the nation are -- That's not my fault look who who understand and I am and I and I sincerely respect that.
But -- the other I'm on the other hand if I may.
One of the things that the Republicans and current and conservatives.
Sort of stepped -- -- it is -- he trapped.
And that is that they continued to harp on the budget what must be done which is never done and therefore they are being dismissed because.
They are the messengers of such.
Such an articulation.
It's some point in this may be that point isn't it time to let the president.
-- -- consequences that he orders up through his own.
Initiative in this case that sequester.
If -- are correct then he is going to have a political disaster on his hands that will not be of terrific pain to too many people.
In assuming that that it is lightly.
Touching the lives of 800000 people.
And -- -- Republicans can move on to the idea that what is not what is required is comprehensive.
You know immigration reform.
Or gun control.
Our our tax reform what is required is reforming the entire federal government.
And the way to parties mismanaged.
I think you -- -- somehow I think increasingly the House of Representatives -- particulars recognizing that.
You cannot hold pieces of the government hostage and forced the president and to do the right thing he cannot say President Obama from self.
He he's elected he's got control the senate they make their choices and then let the voters decide.
Terrific sounds like no constitutional republic debate Douglas -- they get good to have you with us thank you at -- time.
