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Now we continue our summer -- series of interviews with some of the prime contenders for the 2012 GOP presidential nomination.
Joining us from Indianapolis is the governor of Indiana Mitch Daniels governor your State's private sector has had a -- 46000.
Jobs so far this year that's a growth rate of 2% which is triple.
The national average what's in Washington be doing to boost hiring in the private sector.
Washington should be doing everything it possibly can.
Vibrant economic growth.
Of a sustained nature and over and have a at a rate that we have rarely if ever seen.
Is our only chance.
-- of keeping the terrifying deficits that we're now looking at from getting even worse so.
Here in Indiana on.
We've done not everything we know how on this preceded the recession to try to build the best sandbox in America.
Lower the cost of doing business keep taxes down particularly in this recession.
Make regulation fair and consistent.
And now have -- have the most inviting climate anywhere for.
Jobs and investment I've I'm hopeful national policy he'll take that same direction but what about more stimulus.
They they are going to pass -- house and send to the president this new.
Bill I think it's 26 billion dollars more -- state aid keep teachers hired they're also talking about a thirty billion dollar.
Fund lending for small business do you support that kind of stimulus.
You know the it amounts to at this point in time to ask and the citizens of responsible states.
To subsidize those places who have been more reckless.
It's prove a -- not gonna help the economy this this notion sort of trickle down government you -- a -- mortgage million dollars in the top of the funnel and maybe a little demand and a few private sector jobs will fall out the bottom.
Really not the way to do it I've.
I really wish that.
National policy would head in the direction of of encouraging the private sector jobs on which everything else including government's appetite for revenue depends.
Indiana ended the fiscal year in June a couple of months ago with a surplus of 830.
Million dollars and a string of balanced budgets.
What should Washington do to get.
Control of these trillion dollar deficits.
Really issues spending.
First and foremost.
And we've done those things necessary to control it.
This is new for us when when we came to service five and a half years ago Chris our -- unlike most was.
-- and so we've been working on this for quite some time.
You -- be amazed -- how much government you'd never miss.
And we have brought down per capita spending substantially here but I can prove -- because we measure everything.
That service levels on those things that matter most are better not worse.
And one can only hope that the facing that genuine emergency I think really survival.
Problem that we are facing fiscally nationally.
Our leaders in Washington will -- consider change direction.
On the other hand -- let's look at your record as the first budget director for George W.
Bush back in 2001.
When you -- man that was an annual surplus.
Of 236 billion dollars when you left just over two years later.
The country had an annual deficit.
Of 400 -- Welfare -- up in your recessions do that.
I will just tell you that.
Into a half years of service I was never -- -- debate with a member of congress of either party by the way.
Where they wanted to spend less and I wanted to spend more was always the other way around.
And congress got their way onto many occasions -- -- I I agree that more money was spent and the needed to be but.
You know have a look around that and those deficits we would love to be back at those levels today the deficit before this recession started and -- to go in the Bush Administration.
The size of the ones we -- running now and told to expect for the next few years.
That -- let's talk about another aspect.
Of fiscal policy that happened when you were in Washington announced the bush tax cuts now a big issue whether or not to allow them to be extended for ten years that would cost two point nine trillion dollars according to all the budget counters.
How do you pay for that if you want to extend all the bush tax cuts.
First of all it's hard for me to understand why -- raise anybody's taxes in the middle of -- recession.
I think it misses the big point you don't know that that revenue will show up.
In fact there's a good chance it won't.
If you slow down growth this these ambitious growth targets which are baked into the administration's own.
Forecast if you slow down by just 1% it cost you know close to three trillion dollars right there.
Our entire focus really Chris in this country has got to be on reviving the private sector that jobs that count pay the bills for everything else and so.
We should be looking I think to perhaps even an emergency program.
And while not raising taxes.
Opens the door and are encourages.
Investment not this targeted.
Winners and -- -- -- winners and losers approach that.
We've seen lately but in a macro way that encourages.
The money that's sitting on the sidelines to come on the playing field put people back to work and -- did that.
Well you could incentivized as we have on some past occasions.
-- now you could.
You could offer some sort of a moratorium or holiday.
Or opportunity to speed up regulatory permitting.
Which takes sometimes forever the make job creating investments.
I think that.
President at least temporarily should have impoundment power or some sort of -- enhanced power to reduce spending.
We've had here in Indiana it's the only reason that we're still in the black win so many other states have.
Gone in the hole ahead and raise taxes.
Let let's talk about government spending because there -- an awful lot of products conservatives who say and one of the reasons that led to that that the GOP lost its majorities in congress.
-- they felt feel that your party lost its way on government spending let's talk about some of your.
Tough ideas governor you say we need to fundamentally.
Entitlement programs basically -- and and at a completely different agreement and arrangement.
For people below a certain -- explain what you -- And of course we do.
Now we're gonna have to get people together Chris in this country.
To do things that -- -- the cynics have sent through the centuries democracies.
Eventually would prove unable to do.
And this is the best example I can think of you know you can believe in limited government as I do or very expansive government -- other sincerely do.
And still come to the conclusion that -- medically there's no way we can pay for the social security and Medicare systems.
Of today we are practicing child abuse in a literal sense when we deposit those costs on folks still being so -- -- -- didn't tell -- that your top idea.
For how you would change Social Security going forward and obviously we're talking about people not close to the current retirement -- -- my preference is -- -- means that's that let's concentrate these resource is on the people who definitely -- why are we sending retirement check the Warren Buffett.
I would raise the retirement age to something that more matches.
Survival and mortality numbers.
And but I would say any there's a Chinese menu of steps we could take.
Changing the indexation formula is another one that that could.
Make Social Security.
Those healthy once again.
Especially for the folks who need it most and I would be for almost any combination of items off that -- governor -- here's a bigger issue would that.
But let me let me get I have -- -- to move forward here because we're beginning to run a little bit out of time you also gave an interview to the weekly standard -- June that upset a lot of social conservatives let's take a look at what -- sad.
And then he Daniel's as the next president whoever he is would have to call a truce on the so called social issues.
We're going to just have to agree to got a long for a little while until the economic issues are resolved.
On issues like abortion and same sex marriage.
But Chris my own views and record on these issues are very very clear I respect the sincerity of those like.
Ted Olson who see them differently.
This was simply an -- expression of of this fundamental idea I truly believe for the first time my life our nation is facing.
Challenges that threaten the survival of America as we've known.
And opted to do that very difficult things things like we were just discussing reforming Medicare and Social Security.
And disciplining federal spending.
Creating conditions for long term growth and a cut in our country we're gonna have to get together and unusual consensus of people stopped dividing people as.
These issues do as this administration likes to do sadly.
And tried to a come.
It together in concert.
To do some very difficult and novel things and this was really just an expression of of the hope that we might at least temporarily nobody changing their mind nobody's threatening they're surrendering their principles.
Put first things first -- Your first rolling out -- run a possible run for president in 2012 you now say that your open.
To the idea and I want to ask you a couple of aspects of that will you start visiting.
Iowa and New Hampshire which up to this point you happened will you form a a political committee to start raising money for a possible run.
No I have.
Turned down scads of invitations to just those places and many others I've turned on your show it several times that.
Matters but for use that yes -- -- finally.
I have not decided to do this many people have asked that I at least keep an open mind and I've said all right.
You know that's my attention is entirely fixed on the challenges and I think opportunities facing.
Indiana and try to do the people's business well here and that's where it's gonna remains.
Some in the final -- still of interest that people later they can asking them to so it in the final minute what what did they you -- -- open to the idea.
What conditions would have to prevail for you decide you know what I'm gonna get into it.
You know Chris -- live in a world of secret agendas and code words but not all of us operate that way -- Do you believe or not but I'm telling in my point of view now I do I am hopeful.
Honestly that the people in both parties will step forward and recognize the republic threatening to mansion and nature.
Of the fiscal disaster that is waiting for us.
The the threat to our economy if it doesn't begin growing at a much faster rate and stay there.
And the moral threat that terror -- -- weapons of mass destruction world.
A faces that we don't face squarely -- our enemy is and what they're up to.
So I'm hoping we'll see people step forward and really hit those things head on and maybe I'll be one -- -- but there's a lot of ways to contribute to that debate.
Governor Daniels I want to thank you so much for coming on today and talking with us and what what -- the lawless plays comebacks there.
I'd like that.
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