'Don't touch entitlements' pledge sparks new debt debate
Can America afford the deal Democrats want?
- Duration 9:08
- Date Dec 3, 2012
Can America afford the deal Democrats want?
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Well liberal groups are fanning out across America today pushing the president's agenda for tax increases with few if any specifics.
Of about spending cuts.
For many of these groups are specific about what they don't want cut saying do not touch entitlement spending there's a view echoed.
By some democratic lawmakers.
-- Think we should take Social Security off the table for the current fiscal cliff and deficit discussion the moment you want to privatize Social Security.
Or -- -- Medicare or block grant Medicaid.
That's where you loses.
But -- this new Forbes report out showing all these states now having more people taking money from the government rather than from the private sector.
Can our nation afford a deal it doesn't put so called entitlements on the table.
Everybody I'm David has been welcomed of war -- -- thanks for joining us let's go -- this web.
Elizabeth McDonald Mike goes Iranian -- Unger Victoria Barrett -- -- and John Candy good to see all -- goes Iranian.
First -- you don't we have to put entitlements on the table.
David for the sake of the overall economy we must put entitlements on the table.
And we must reduce the rate of growth and entitlements over the last four years entitlement spending is growing much faster than the overall economy.
This is one of the reasons why President Obama keeps pouring more and more money -- has this country and record debt.
And that's hurt the economy.
Take home pay has decreased significantly under present World Cup Obama we must get entitlements under control okay and and -- just look at the list of things that have gone way up starting with food stamps supplemental income unemployment -- federal unemployment insurance.
-- -- -- -- About 800 billion dollars a year extra spending from this press doesn't that have to be cut.
That you know listen there's no chance that there's going to be a -- on this without some entitlement cuts I think what senator Durbin is talking about is the importance of focusing.
If we really want to get to a deal here I think we all do.
You're not gonna do -- by taking some wide spectrum approach President Obama was incredibly clear about this when he spoke to the Republicans if you recall.
At they're gathering some years ago he pointed out that the biggest driver of the United States debt is Medicare.
He understands that we've got to face that -- -- Medicare problem that is where the energy needs to go we need to find the solutions and.
Adding an act accident does the conference that Rick was referring to his one Horry said hey folks I -- I get to make him and he -- The budget by 800 billion dollars every year that one time stimulus turned into an all time event that -- happen every year of his presidency and now.
The president threw Tim Geithner as Treasury Secretary has made a proposal which doesn't have any.
Spending cuts at all it's just talking about raising taxes and maybe sometime in the future some spending.
Yet so competitively -- -- within Geithner is proposing in the president's proposing I mean you know we hear the president now.
Yes saying that tax hikes on the upper brackets will solve all the problems some -- how magically wouldn't pay for government spending.
For about a week and a half but you know what the president said he would stop this season rising I think he might -- -- now to stop the oceans of red ink that's her I think.
But I think is something listen you don't invite Mecca -- -- made this point to the federal taxpayers now ponying up to cover the shortfall and so security.
The White House is already said that the CBO has thirty said.
That that is happening and what happened was LBJ in the sixties got the government's mitts on Social Security funds to cover the cost -- Vietnam War.
And for the great war poverty and then that's exactly -- the.
C -- -- -- data is the issue nobody Social Security the money that we put in a source agree should be there but it's not a lot of it is it because politicians can't keep their grubby little fingers off of it they go win their use it for -- -- other stuff.
Well the problem whistle security as -- cut the payroll tax if we cut Payer if we read if we increase in payroll tax -- level it was.
I don't think -- would have a problem -- security I agree entitlements need to be on the table but let's look at the big pot here entitlements or 13% of the total budget.
The big pot as defense spending that's 24% we spend a trillion dollars and offense.
Let's look at federal pensions that's another 22% of the federal budget.
We give pensions to congress members of congress let's look at that.
So yes let's look at entitlements but let's look at the big honey -- here in the Federer -- the big spending in the Federer.
Well it sure I'm always -- and -- bring you down those pensions of the politicians.
But the fact here -- the facts in 2009.
We had this stimulus spending 800 billion dollars extra.
From what it was in 2008 that's how much more the government spent.
And guess what it never stopped it was supposed to be one shot deal but 201020112012.
We've maintained this 800 billion dollars in extra spending.
At a time when we have been cutting back -- on military spending and -- that has been just increasing and guess what.
That pretty much adds up to the deficit right.
Well and David that the problem is actually deeper than what you're describing because this goes back decades when you look at entitlement spending.
Over the last half century it has steadily crept up 4% every year that it includes adjustment for inflation and population growth.
And so what what then what you increase taxes -- percent every year I mean that's absurd at some point.
We need both parties to come together and smartly attacked this entitlement -- I will point out.
You know we mention Obama a -- he hasn't helped the numbers certainly.
But when you historically look at entitlement spending it goes up under Republican president so you know I think -- can go and it isn't and blaming Republicans for the problem that they've gotten him into.
I didn't know there was this was the specific entitlement creeps though there's one creep out there that I just expect Crockett and Avery John.
It's it's a bit isn't it -- -- Johns candy what about this the fact that we now have a budget that is present if you can -- -- -- -- That just and includes tax increases and no cuts at all from our treasury sector.
All the tax increase aspect is is is ridiculous -- we don't have a tax problem revenue problem we have a spending problem and when you look at entitlements.
I say they -- -- an abomination I don't think that any of them should exist this is something should be done elsewhere.
But we did make these promises.
And -- the idea should be not to cut entitlements but basically to save those nearing retirement that you are going to be made whole but for those of you.
Or not can generally socialist who actually want control your own retirement.
You can opt out of these various programs you don't have to participate in Medicare social security and that's how you cut entitlements without cutting off the -- well -- retirement.
Either way that growl you heard when when John said there was not a spending problem that came from Rick Unger and also -- -- but but Rick let me go to you first don't we have.
He's spending problem at all well course that you.
Don't deny that but you know why -- -- -- -- addressed by the president it is listen it is this kind of thinking that is gonna get us over this fiscal cliff.
We are two parts this solution focus on the correct entitlements to cut.
And to deal with and to reorganize Medicare so it still works but it doesn't take us down the drain.
And that there have been no cuts offered at all by the president's proposal has zero.
But this proposal I've read that no spending cuts at all in fact there's an idea -- he has a little stimulus in -- -- infrastructure Erica.
It's unbelievable it will be big -- -- -- problem.
What Sammy Morris and you're saying we have -- we have a big revenue problem I mean we we took away a trillion dollars out of them out of the budget -- by giving tax cuts to -- he weren't going to -- to -- that revenue back and that's a good way probably that we spent another trillion on.
Yeah ours is on -- house.
When rates -- -- -- they're not tax cuts are tighter race had other hobbies and you know much to bring an event -- -- Bradley you're gonna bring eighty TARP now not 84 billion dollars a year -- important millions a year but that doesn't have to cover government spending for a week and a half.
And I thought isn't the issue with Condit -- and then -- -- lives -- a bubble land they're still in need on 1996 borrowing land mentality with the real estate still going up for the DC -- there so disconnect.
-- -- -- -- -- okay hold on is that you Victoria Victoria earlier I can -- go ahead finish your point.
Well you know Rick I can't believe you're saying you know the issue here is Medicare and we need to fix Medicare is I'm sorry what was Obama trying to do with Obama care.
Why why wasn't that a draft under obamacare -- that now on the table actually and you've got a -- very very easy it is and who wants that wants to do cut.
It's very easy answer that in fact if you look at the original drafts of what the president was talking about when -- started that.
He didn't want to address Medicare and there was my.
We wanted to withdraw sooner and we have addressed that in high heels run another hour but we have run out of time Dag thank you very much what did you hear.