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Inside the Debt Battle

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    Rep. Jerrold Nadler (D-NY) tells Alan what he believes we can do to fix the budget crisis.

  • Duration 9:56
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Hello and welcome content Jerry Nadler of New York.

Elected and has represented the 1992.

-- -- -- congress ever -- -- reelected to his ninth term in fall of 2008 with 80% of the vote.

Congressman thank you coming on the program tonight look -- what's going on there tonight what happened.

Well other Republicans can't get that -- -- -- scheme.

But the problem is that it.

It's drove the wrong reasons they too many of their people think it's not not enough.

So it's the right wing basically the Tea Party years.

Who don't look it that the debate or plan does not go far enough in there.

Some of them increasing that we couldn't -- it definitely under any circumstances.

So what's -- get what's what does this mean for Boehner.

-- for Boehner I mean if He can't -- get the votes tomorrow.

He loses a lot of leverage in this whole process but He also.

Is it is it eviscerate his effectiveness as leader of that caucus.

In Maine numbers -- speaker.

That you think his days of a speaker a speaker could be numbered if economic at the -- AME did it is certainly greatly reduce its way -- I mean I don't know enough about internal politics and poking caucus.

-- sitting up and down quite a few -- Supposedly they gonna rewrite some of the legislation.

Well they've been rewriting -- the last two days sentinel -- further re right they can make at this point I don't know really you know.

All the objections assessment is that there's some of the -- that's set aside from those are just going basis that's -- and.

So what's gonna happen now.

Well they'll try to get the votes tomorrow and -- they will they won't.

-- a result -- the problem.

Had a had a we get -- we solve this issue -- -- we get -- For awhile that's with a will be with these crazies -- the the country may just before we go over the cliff which could be catastrophic.

I think the only two ways because.

If -- can't -- go to the data plan it's going to be very difficult to imagine him getting those votes for the replay and it is also not -- but not as obnoxious.

It is this that it could test to -- planned.

They have to get I mean you know -- 53 democratic senators as said that they wouldn't vote for the beta plant makes an epidemic in any event.

And they in order to test the beta planet 80% of they've -- -- -- seven Republicans to -- so they can get this the filibuster and needs sixty votes there.

If they can't -- they need to get this -- the united.

Does a really -- have a chance.

I don't know.

If if it if it passes the senate.

Then.

He gets presented at that point it's the only allies -- -- If on the data plan has not been able to best.

Now where the you could.

A coalition of the enough Democrats and it if the Republicans -- the Democrats stance that.

Be very difficult because them that would certainly.

I mean He is if you had a plan that most Republicans vote against that data are allowed to go through that house.

And I would really undermine his leadership.

Is -- president working on anything that you know.

And this -- -- city.

It is is the president exercises fourteenth -- an option.

Really and is He working in any kind of plan possibly would do is learning -- -- back channel communications don't know what he's working on sound like.

Not that I'm aware of I mean -- did you know you as a viable these negotiations but He came down a few days ago.

To variations on the content on the the company get thrown at the -- maybe that'll be reviewed you know media.

Revised.

But right now it's hard to see -- get a majority -- If there is a default if it doesn't happen who which party suffers more.

It's party that there's more but I think the Republicans suffer more because they be blamed for it because they've.

The Democrats and the president has so been so obviously and publicly.

Spending themselves into pretzels to compromise so much and that's been obvious.

The Republicans have been unyielding.

And that's been these in -- and a lot of them have been talking about.

We don't need to -- that default that would be so terrible they painted themselves as -- people.

Would be responsible for the default I think most people most of the pundits and most of the journalists would label -- so and it's people understood.

The real climate effects to the default that the interest rates went up in people's.

Mortgages got more expensive and it Carlos -- more expensive than people that laid off because.

Companies couldn't get credits.

I think people do very angry they're Republicans or whoever they -- -- -- course that.

Which -- with guns and Jerry Nadler of New York you -- very interesting yesterday said the real crisis unemployment.

Not the deficit.

Now is not the time to deal with the deficit problem and you said right now we've got to get them unemployment under control we get that down to 7% to 5%.

-- -- -- -- Right yeah we get that down to 5% which is where it wasn't 2007.

If you take you eat -- -- cut the deficit and -- just by doing.

Petty and -- get employment that to that great -- to that level.

Well there's not much mystery really -- the the problem in this economy is a lack of aggregate demand.

And any major -- -- we'll tell you that.

And that means that this is because it because people look a lot of money in the in the in the housing bubble blow up in the Wall Street catastrophe.

And got a lot of people that lost their jobs is just not enough money being in the economy for people to buy things that there is enough.

But if people to buy things -- people aren't right to make and market themselves and so forth you've got to inject money into the economy.

And you do that and the only the only agency that -- in this -- the federal government which means you Goodman temporarily higher deficit.

That you shouldn't be putting that -- economy in terms of -- that -- high unemployment insurance benefits food stamps.

Eight to the states so they don't laid people off and they don't it's not give the country -- the private contacted -- build highly whatever.

You hire people for infrastructure for building roads and highways and bridges and schools.

You make the country ultimately more competitive by having a better infrastructure.

But -- do all the things that puts more money to circulation means people combined with things and eventually -- because sustain itself.

And then you start worrying about.

The deficit.

You're David a bed more proactive stimulus plan a more robust stimulus glad.

Absolutely this stimulus that we -- it's gonna bid name because.

The president of foolishly.

Projected predicted that we decided that it -- -- -- contemplated that the 8% meaning they have issues said that.

There's no reason to expect that that's -- time.

It is the problem -- there had been any that really defended afterwards.

-- the Republicans that see where the justice said the -- named defective the only real problem the stimulus was said that it was about pets is being situated didn't have his biggest.

-- time this is telling the president into the.

It is -- you get right He couldn't.

I don't know that PS for much biggest stimulus -- and that someone biggest and that He didn't.

He said the countries in the middle of a great crisis entirely artificial crisis created by the attempt of one political party to blackmail the entire country.

Into adopting its -- and destroying Medicare and social security and food stamps unemployment all the things the many of our people depend on I wish more people saw that way.

Well it is an artificial crisis and an end and I wish that more people explain it this way.

So artificial because that lets see what people think you know it's changing -- people.

You know to the polls between -- accumulated debt ceiling no because people put debate it that's feeling that you -- to borrow more money is spent more money its moral and spending.

But the fact is the raising the debt ceiling simply means that you -- that you going to borrow the money.

That is necessary to pay their debts that you incurred by spending money He decided to spend two years ago by the is that their music.

-- not -- that -- sort of like going into an expensive restaurant and that's.

Having expensive -- and when when presented with the bill saying gee -- you know I really think mr.

Milosevic credit -- they'll pay the bill.

It's amazing that that I -- as it really needs to be explain this way over and over again.

But it -- that is the case.

And through -- believe we can leave the increase the debt and if you think by the way that we're spending too much money -- taxing too much -- too little.

That's fine and that's the that's the budget debate that's not -- that debt ceiling feeling frustrated that -- imported dictated debts that world ready to.

How is that we did eighteen times under Reagan -- times under George W.

Bush we didn't have this kind of debate.

Well because well it because it's been both parties depending of the which the Democrats and -- Republican president the Republicans and as a democratic president.

Both demagogued and would vote against the debt ceiling -- as long as they knew that there are plenty of us -- -- But even Obama voted against it.

It was cheap demagoguery.

But -- -- -- -- -- said let's use this as leverage try to get what we want to threaten not to do it.

That is really blackmailing integrity because -- -- really saying is if we don't get our way in whenever -- ways to disagree Social Security Medicare -- think that they demanding.

We will wrecked the economy we will of course is definitely -- -- -- they loop course the country.

Not a rated debt ceiling and therefore because we -- the money in the budget coming due therefore it's.

Not a commitment to default on the debt which by the catastrophic impact on the economy and employment -- -- -- and by the way.

That'll have a catastrophic impact the because interest rates -- be.

That but that if we default for a week but today it would that by itself will probably -- trillion -- the deficit though that opinions and higher -- If you had to predict right now what do you think will happen.

I'd been predicting -- it was -- this -- I hope I'm wrong but.

I'd I don't feel it come together unless the president.

That it is that.

Take the option of -- -- -- -- -- -- which a lot of lawyers say as a -- data that has never been tested in court.

Congressman thank you again for your time -- to -- a lot of thank you --

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