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And -- -- -- spending in mind that Ben Bernanke is warning politicians about all the borrowing that goes along with it.
Question of the day will congress take note -- the stimulus spending perhaps all retreat on health care spending.
Republican senator Judd Gregg of New Hampshire joins us now.
-- We've had political experts on this program just moments ago -- that Washington is not listening to the danger signals that they will not.
Rein in spending apple.
What they used to.
Or credibly I think they're right we've seen a budget that was just passed by this congress which was supported and drafted basically by the president.
Which had trillion dollar deficits on average for the next ten years doubled the debt in five years tripled and in ten years.
And puts us in a position where -- debt is essentially unsustainable and our -- that -- deficits are unsustainable.
And a lot of international.
Commentators especially the Chinese are raising warning flags and they should be because.
We can't live with this type of debt we can't we -- these types of deficits and it is driven.
And -- spending -- this administration is proposing taking spending from 40% of GDP up to 25 point 6% of GDP.
Over the next ten years.
And that's anonymous sample of and it ends up passing on to our kids a debt burden which basically will make it impossible for them to have a prosperous life.
Equally important raises of the -- Specter of the dollar being devalued of inflation.
Being very a very significant problems are at the minimum of tax increases that are so high that you undermine the productivity of the economy.
Well -- we go to pile on yet more spending with this proposed Health Care Reform.
Because all I've seen so far I know you have a new plan of your -- -- the Republican side -- -- you have up find out -- -- week but.
Everything I've seen.
Of the plans likely outcome.
Is that we simply spend more on it shift the cost of insuring all these millions of people.
All we gonna pile on more spending on a new entitlement program.
Let's hope not but that appears to be the direction of the idea that our colleagues on the other side of the aisle are going if they follow the proposals of the single Payer plan.
My my concern exists yes everybody needs to be covered but we need to do it in a way.
That produces better health care quality at lower costs and that's very possible -- is 17% of our gross national product and health care.
Next closest country industrialized country is about 11%.
So we're spending enough money on health care already what we need to do is spending more wisely more effectively.
In the tested this whole health care.
Reform effort is going to be two fold one do we.
Get everybody to get adequate insurance.
And two in the out years I'm talking 56.
Maybe four years from now we start to see the rate of growth of health care start to come back down to something that's affordable and below the rate of growth and inflation.
The way you do that is by incentivizing using money.
Which is the American system for incentivizing people -- to live a healthier lifestyle.
Productive lifestyle and to create preventive care and to get better quality into the system by creating cash incentives.
But such talk I'm really well aware of the American system and and I've -- revolves around money despite my action by I'm thoroughly americanized but I -- I have to -- -- and in all seriousness that does congress.
Has it gotten to grips with the danger that we're facing.
And the potential for a real crisis.
-- one of these borrowing operations goes badly.
And he got a sudden spike in interest rates and a huge decline in the dog you got yourself a crisis -- hands he's calling us aware that this possibility.
We have we have a crisis already doing I mean the simple fact is that when you're projecting deficits -- -- trillion dollars a year on average for the next ten years and he.
Federal debt public debt it's 80% of GDP.
You've got a crisis I mean basically under the present structure we could not get into the united.
Into the European Union because we would mean we wouldn't have this the response that we would be determined to be fiscally responsible country.
So we have a crisis and warning signs are out there.
-- Bernanke mentioned yesterday but it.
-- the international community eventually look at our bonds they're rolling over in four years that's the shortest timeframe ever people are saying they're worried about the out here.
-- of the bonds in other words what -- interest rates will be on such a last quick question by manmade I grind my own acts I think the British government is about to fail I think Gordon Brown is pretty much -- as prime minister.
And he's been dummy in the because he's and -- the treasury.
When American politicians see what happens in Britain when you went to the treasury do you think that will give them -- and rein in the spending on I -- wife had very good.
-- -- -- -- -- -- -- Well I wish you were the problem is politicians look to the next election not for the next generation.
And what we've got here is political system where people really aren't worried yet.
Or at least are expressing it in their actual actions if they were what -- We'd be doing right now is taking on entitlement reform for example we could easily -- Social Security system.
To be solvent for the next fifty years if we had the courage to do we can do that in the month.
If we do a Health Care Reform it's got to show significant cost restraint.
As we move forward and that means you got an incentivized things which create cost restraint we should be freezing your discretionary spending just -- freezing but we -- -- three years.
I mean you you set itself it won't we won't cut costs and will spend battle.
Re -- you know Stewart elections have consequences and in this case we got a government that's going.
-- Judd Gregg Republican New Hampshire a pleasure thanks for being with us -- -- --
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