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Fiscal cliff deal could leave questions on economic issues

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    Brad Blakeman, Joe Sestak weigh in

  • Duration 9:22
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-- hasn't been following all this morning that fiscal cliff deadline we are getting closer to work.

But even if lawmakers managed to reach a deal in time -- likely put off any big decisions on taxes and entitlement programs.

And then growing sixteen trillion dollar budget deficit.

So how to deal with that.

Brad likeness of former deputy assistant to president George W.

Bush and former democratic Pennsylvania congressman.

Joseph stack now -- spread and Joseph while -- -- here could this morning about the Buick of course I probably -- you.

-- in this morning the president was on Meet the Press blaming Republicans Republicans -- what they.

Call a lack of presidential leadership and this -- think it's all in the next 48 hours what -- -- do.

Although it certainly doesn't get solved we should be solved because we still have generational debt we have sequestration which.

They tell me any bill that happens today will -- you -- -- frustration which Lindsey Graham said right here on fox he got a call last night at 730.

For the Defense Secretary worry to death that sequestration is going to gut the military.

So we're just kicking the can down the road and judgment day is coming there's no question about it.

But the president Eric remember when he.

Appointed a bipartisan Simpson Bowles commission.

Think they have a tough love for us two years ago they told the president exactly what we needed not only on current spending but future spending on also debt reduction.

But the president -- -- we could have avoided this self created crisis by the president leading two years ago and and doing the tough love we needed then.

And it would have saved the crisis now.

Joseph you're a former navy -- only commanded -- aircraft battleship group you know the Pentagon by heart.

As -- says could the president have avoided this through presidential leadership of the potential gut as they claim of the military.

Well.

I think on the whole picture both the president and speaker Boehner had the best intentions of the United States economy at heart I really believe that.

They came within 500 billion dollars within the 2.5 trillion dollar debt reduction that they wanted to have it came that close and weren't able to pull it off.

But now what both parties had to -- was not hold up America each other but to themselves stopped the finger pointing and say how to resolve it and frankly the first step is the fiscal cliff.

If we take 700 billion dollars out of our economy over the next year.

Our gross domestic product will grind to a hole we watch we -- zero growth next year which means a recession.

So what they have to do now and I know it's ridiculous to get to this point that over the next few days.

Get that down to about 100 to 200 billion dollars -- spot along.

We cannot afford these types of crazy cuts going across the -- and domestic programs at this particular time if we can get -- below 200 billion dollars.

Then what we can do -- have to -- the fiscal cliff a gradual slope so that like -- -- -- -- -- -- our economy which is -- we'll continue to accelerate.

Over 3% growth which is predicted for the next year then what has he done is stepped back as Brad noted and say Simpson -- gave us a pretty good outline.

One dollar of tax revenues for every two dollars and spending cuts including tablet -- but -- -- Eric your right.

We have to have the political courage down in Washington DC to make this work for Americans walk -- we don't have the political courage.

I don't know you know my take is that.

Having been in the navy the thing we most that it wasn't responsibility it was accountability for those for whom you are responsible willing to lose your job.

-- doing what's right for them.

And that's what we don't -- many people want the authority want the responsibility but don't worry to step up and do a principled compromise when they can have -- all their way.

And say this is what's needed to be done frankly.

They don't generate the political will on either side -- I think though that the president's speaker Boehner came closest to doing it twice over the past year.

But they've got to do it all the way and be willing to get -- the Bane of -- respective bases if they have to do what's needed for America.

You know what Brad the investor's business daily had -- and scorching.

Editorial against congress blaming congress for this saying we've got here because individuals who comprise congress had no skin in the game.

The IBD says for example of that the net -- of members of congress has increased by 5%.

While the average American has lost.

39%.

Do you agree with that and had only as Joseph says get some courage on Capitol Hill and in the White House.

-- -- in that Simpson balls and deal with the budget deficit all of the problems we have.

Well -- in Washington we have a lot of politicians but we're light on statesmen and women.

We need people who will accept the responsibility of making tough decisions.

And and think about our future you know I quite a new term is called being a momentary and we live in the moment.

Great societies provide for the moment the plan for the future there is no future.

We're constantly crisis after crisis in the moment and when and when we get the kind of leadership we need in America who understand.

That we not only have to solve our problems today but we have to look to the future.

That's the kind of leadership we're gonna need is we have tough problems no problem we have cannot be solved.

The will to solve it is what we need and the leadership and determination to do the right things now let's let's get politics out.

Of the equation and let's get some leadership in and we can solve this thing but what I think should happen today is.

Not put a gun to legislators heads if the president wants -- drive off the cliff we shouldn't be in the car.

What we should do was have a one page bill today.

That keeps -- status quo on on spending sequestration and taxes for ninety days let's get a new congress in there.

Let's solve the problems.

Brad what -- bottom line.

That one page bill that's not gonna happen what do you think will happen exported out that that -- -- look any Republican.

Who who votes for bill again they're not able to read and digest the CBO hasn't scored is not worth voting on.

-- Yes I think what's going to happen is you'll see an outline of a deal coming over the next day.

The details are going to be hammered down over the first week or two of January and that's okay.

Because if the Treasury Department knows that we are about have some sort of a deal and it's going to be a small deal.

That they won't start the tax withholding that is about to go we and 1 January and also -- defense which you mentioned Eric.

That fifty billion dollars that is supposed to take place most of it is in procurement and research and development.

Only 15%.

Of that gets spent the first year what does that mean this and again we got a little bit of time and the deal that has to -- done is very simple.

Not 727.

Billion dollars of tax increases and spending cuts.

Get it below 200 billion our gross domestic product can continue to grow it up over 3%.

And then we can accelerate and but Brad spot on as you are -- if we don't come together by the end of February in a grand bargain again.

When it's not party first it's Americans first and I think it's spending reductions with entitlement reform the president took one step towards that he needs to do more.

Speaker Boehner took one step on the other dollar that -- needed -- two dollars spending cut tax revenues he's got to take another step more.

We'll have the principle compromise Americans don't here on the -- with a left to right.

They just want it to work pragmatic if that's what's got to be -- -- in -- -- laid out it would show where Joseph do you think this president.

-- really do that when it comes to stand.

Yes because he passed there is no choice.

When entitlements -- 60% of our budget and baby boomers are beginning to retire.

Or like Brad already have this -- -- You know what I have to do was understand we don't have a choice and we can do it and still protect -- look President Reagan did do it in 1983.

He changed the -- and said it's not 65 it's gonna be 67.

We have yet to get to that 67 year.

Age we didn't get to the 66 -- -- -- with 67 you can do it in a way that doesn't harm the present generation.

Of seniors and second salvages it for the future but you can't do it as most mainstream economists tell you without revenues coming again.

We do need to have a balanced approach to this and those revenues went over the last fifty years Eric.

That taxes for the wealthy.

To pay their fair share they have gone down almost 50% when you include federal state and local.

And for the rest of the 99% of stayed about flat so we.

That's why do people talk about a fair share and -- we have formed spending cuts two dollars one dollar tax revenue diet and exactly what both the leaders of the parties have to do shelling get Brad in.

Brad is just as you think this president can actually take a page from President Reagan and he's gonna actually do with the spending.

It all depends if he turns into Bill Clinton -- remains is Barack Obama Clinton was Smart enough to understand that his legacy.

Isn't what was important in the fact that he would be remembered as somebody who is who is good on the economy as a Democrat I guess what.

He knew he wasn't a typical Democrat and he was forced to change a lot of it had to do with the fact.

That the congress changed that we have divided government at the present let's take the same old same old he's gonna get it because the Republicans do not indicate.

It's equal branches of government they control two thirds we control one.

And it takes three to tangle and -- -- It takes the senate the house and the White House other tangling now we'll see what happens John draft terrific debate -- -- -- -- insight thanks so much.

As a matter -- leading and that.

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