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U.S. Treasury Secretary Jack Lew on the need for entitlement and tax reform and the economic impact of sequestration.
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Check back -- -- more from Treasury Secretary Jack -- Peter.
That's right David these budget negotiations well an impact one way or another good or bad.
On America's triple A credit rating which -- -- imports cut two years ago because of all this.
Budget dysfunction so I asked them if we will get it.
Back take -- -- I'm not gonna comment on what rating agencies might or might not do and -- -- I think.
What we have to focus on -- what are the economic challenges we face and why.
We need to do a number of things we need to take steps to have an economy where we're investing in creating jobs and improving the future for American workers.
The move the truth of the matter is.
We know that we need to do entitlement reform and tax reform.
We need for competitiveness.
And -- you know -- on a bipartisan basis time to do it and Santo.
-- unleashed investment that I think we'll follow from.
Certainty that we've dealt with the challenge that everyone knows we need to address.
This last question.
-- economist for -- if you don't mind for one moment -- the administration has been warning that the sequester.
Cuts budget cuts kicked in March 1.
Will hurt economic growth but today we saw unemployment insurance claims come in at their lowest level in five years -- -- the stock market at new.
New -- How it's -- sequester hurting the economy.
So Peter -- first the economic data that we're seeing now is obviously from an earlier period so it doesn't reflect the impact.
The sequestered -- I think that we have to remember that this question is different than either government shut down.
Or the potential default it's not an on off switch instead of being a cliff it's more of a step -- to a bad place we know that.
If sequester remains in place.
The amount of spending that we taken out of the economy will reduce GDP -- about a half percent from where would have been and cost about 750000.
Jobs from what we -- had.
Now I would put an awful lot of energy into creating a half percent of GDP growth.
And creating 750000.
Jobs I think there should be a bipartisan interest in making sure that we don't have that effect.
Secondly -- actual policy effects are real.
They're real in the defense world where it is not good for our strategic position in the world that's why you see senators like Lindsey Graham and and and John McCain.
Interest -- an alternative.
It's not good from a domestic perspective a lot of things you see around here.
Our because we do the kind of research and development that keeps us at the cutting edge.
We need to keep research and development going we need to keep educating workers of this when there are 700 jobs they have the skills to -- -- So we know there's a better way to get our fiscal house in order nobody thinks is sequester is a right solution it was designed to be something that everyone was case.
Give it some time I I think I think that we're in an environment now where there's a constructive conversation going on every.
We will see more and more of the impact of the sequester.
And -- I continue to live my life is an optimist.
I think that we come together from both sides wanted to do the best thing for the American people.
-- -- have a balanced approach in the medium to long term to get our fiscal house in order.
The data kind of economic growth that would come from -- west.
Ran out of time wanted to follow up on all that but unfortunately David that was the rap for -- well I cannot all of you want to Peter.
I got a -- -- worry you know this is this is a guy we're so used to these -- key treasury sector is somebody like Tim Geithner for example whose.
Who spent all of his life -- -- -- -- world to banking.
Where is this is a guy who really cut his teeth in politics working with Tip O'Neill back in the 1980s the consummate politician.
Former speaker -- Tip -- so.
He's gonna is gonna have perhaps more of a political edge that I want -- -- like Geithner is he not.
Well but he is a budget want to know he did negotiate.
-- was in on the negotiations between to -- on President Reagan about what tax reform back in the eighties he was in the room with President Clinton.
And and new Gingrich and the ninety's.
But you're right some Republicans do accuse him.
-- being.
Being very political and all of this all right we have.
