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Rep. Kevin Brady, (R-Texas), weighs in on the hearing to solve the federal debt crisis.
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So as this -- -- -- -- begin to take a fact my next guest thinks that they're an important step in reducing the debt he -- them to forcing a 500 pound man.
To lose ten pounds pile -- -- congressman Kevin Brady as chairman of the strait economic committee.
And he presided over hearing this morning focusing on identifying other debt solutions.
He joins me now exclusively did you hear anything new or innovative -- surprising and -- hearing today.
You know not necessarily surprising except that across of -- -- brought biological.
Spectrum.
You've got consensus that when I asked -- question we ended this congress and the White House need to act.
To sustain to make Social Security Medicare solvent -- long term all of -- said now.
This year several them before June or July was -- -- and so the urgency of solving that is of it is a consensus second thing is.
Everyone's concerned about the growth -- we know economy's getting better that's good news but.
Huge growth gap between this recovery in the average recovery and even more troubling.
More evidence showing in the long term America's.
Economic potential may have shrunk by as much and -- third that has huge consequence.
I wanna pick up on that seem to -- we were just looking at the screen of the distinguished panel that was their testifying before you.
What that was Douglas Holtz.
And he was presenting testimony that when the debt to GDP ratio exceeds 90%.
That you sacrifice one point of growth.
Off GDP do you believe that testimony did it have an impact on people that we're listening.
Yeah it does one its empirical you know the study of countries that have got themselves.
Deep in debt our global competitors who find themselves.
In the same situation they -- economy slows in some bit -- your business when all your money's.
Going to debt and in credit cards and interest payments and not to -- investing in your company.
-- growth slows same.
In America that the impact is the you've got 13 slower growth.
For the country to -- -- big impact on people's seeking jobs you've got also loss over time.
Of nine -- three trillion dollars of federal revenues and that's bigger than all to put in perspective.
Bigger than our all of our unfunded liabilities on Social Security Medicare.
And pension and so lost tax revenue because the economy is smaller aggregate number of front GAAP.
Just a mere 1% growth gap over time is a huge impact on the economy in -- our ability to pay our bills now.
That you say that this testimony is impure called that it's right in front of us it's quantitative so it's not subjective and -- people ought to pay attention to back.
But of course that isn't the case when you present this to Democrats and two the president.
You know they say that cutting back on spending now would damage growth in the economy and cost us jobs in the short term how do you respond about.
Well basically what the witnesses today.
Said for the most part is that congress and White House is making progress on discretionary.
Spending more can be done.
But they really felt the focus needs to be on how we make Social Security Medicare Medicaid solvent over the long time.
There was one other area of agreement.
You know I asked.
Given the Obama -- taxes -- have kicked in the new taxes from the fiscal cliff absent fundamental tax reform.
Would raising taxes again be helpful to our economy.
No no one agreed with that and so really is a focus on getting our spending for so -- Medicare under control but fundamental tax reform.
Yeah I I wonder the other side -- I was listening in and -- and Republicans as well who continue to spend is don't realize the price our children are gonna pay.
Congressman thank you so much for coming -- we appreciate your time.
Thank you -- so much it is a.
