tv Washington Journal Representative David Schweikert Discusses the Debt... CSPAN July 13, 2017 8:06am-8:37am EDT
guest: it's the part when authority of the federal government. we spend a lot more money than we take in. this year, the cbo just -- in today's society, we are more interested in tweets than actual math. this year, we will parts $693 billion -- we will borrow $693 billion. congress over the years has cap saying you have authority to borrow up to this point. when you hear the term extraordinary measures, the --asury is reaching into eventually, those funds are consumed. host: when will we not have any
funds to dip into? guest: we keep doing different projections. some is sensitive to tax revenues. sensitive to certain dates. it is probably in early october, maybe even in september now. tax revenues are a bit below where we projected. some of that is the belief that some large taxpayers might be holding back with the hope of tax reform. host: if this needs to be addressed by mid-october, the treasury secretary has said congress should really raise the debt limit before you go on your august recess. do you agree with him or senator john cornyn who said we are having a hearing in october? guest: i'm in favor of having it later. the house is being much more productive than the senate.
for some of us, we've been working on legislation for years . it's less about a grand scheme to find a way to bring down the debt. survive and postpone it coming debt crisis. it gets into geeky stuff. how do you sell bonds? what type of bond that would be typed to economic growth. a gdp related bond -- if we were to ever go into recession, the payments out are sympathetic with revenues. even down to sweeping appropriated but unauthorized accounts. we believe there's billions and billions of dollars up and down the federal government that was
no authorization on how and these are just management tools. host: these are proposals you put forward, correct? guest: we are hoping that that becomes part of the debt ceiling discussion. require the treasury to issue gross domestic product length if the debt ceiling is reached. love the president to authorize certain government assets. are you saying that this language needs to be tied to any debt limit, any proposal that would raise the debt limit? what we are trying to do is produce a series of tools that are useful to treasury in
managing our debt issues. if you look at the cbo report from 10 days ago, we are in real trouble. the numbers are genuinely very ugly. we are borrowing $2 billion per day. if we are here for an hour, that is $83 million per hour. it only gets dramatically worse. medicare part a is gone and less than seven years. if you are 50 years old, when you get ready to retire, social security trust fund is gone. single moste important elements going on in this federal government.
host: how would your proposal tackle entitlement reform? guest: it doesn't. that has to be done at a much grander scale. this proposal is just debt management. into bethose moving baby boomers. -- average baby boomer more boomer will take out $330,000. you start to understand how much trouble medicare is in. how do you actually say, in the end of this decade, we will be over $30 trillion in publicly held debt? we will be over 91% of debt to gdp. this is nine years from now. this is all coming very quickly.
i struggled and i wish i had a way or wonderful graphic. the debt crisis is quite possible. we are going to require marked debt management tools and then we have to step up and deal with the reality of the math. is anderal government insurance company with an army. ofyou deal with the reality social security, medicare, interest on the debt. ,ver the next multiple decades the biggest items in multiple spending. everything people think of government hass
basically flat land. entitlements have exploded. it is math. is i haveeartbreak been here six years and a number of my brothers and sisters seem to avoid the reality of the map. host: let's hear what viewers have to say about it. joe is a democrat in michigan. guest: yes, thank you for having me on. if we continue to raise the debt ceiling, how do we continue to pay these things off? , iry time i listen to c-span listen to fellow democrats and ,very time we try to do it every time there is trying to be a tax cut introduced, there is
always a reason why we need more instead of less. guest: did is a very fair question and here is the reality of where we are at. we are going to borrow just shy of $700 billion this year. the money we count will borrow from the trust fund. that is bigger than all of defense spending, that is bigger than all of the discretionary spending. if you said today, i only want the federal government to spend exactly what it has in revenue, you have to tell me what to eliminate. to eliminate the state
department? epa? the park service? all of those exist on borrowed money. in nine years, everything that we call discretionary, which means it does not on a formula is on borrowed money. medicare explodes off the chart. then we have the interest exposure. it is not just the financing cost of this year's shortfall. when there is a movement in interest rates.
host: let's hear from clem. caller: i've got a little question. when the government settles debt were settles lawsuits, i'm sorry , i heard this on the news -- for $250 million for money -- theing to new york prosecutor was fired -- when you are settling for $6 million, that is just one example. i'm nervous, i've got to go. , forgive me for computing what you wanted to talk about. borrow $83g to million every day. often come you will hear discussions of if we could just get rid of foreign aid.
would pay for three weeks of borrowing. and the problem is that many of those in the say, we willss, we get rid of waste and fraud or this program where we are studying bumblebees. and it is actual math 15 seconds of borrowing. a struggle because these numbers are huge. i think this turns a lot of americans off, whether it be on the left or right, to understand, this is the greatest systemic threat to our society. host: it raises the question, can the u.s. government, can americans afford to cut taxes? and add to the national debt? guest: here is your reality. the only way out is multiple pronged.
you are going to have to do entitlement reform. whether the president likes the idea, whether the folks on the left like the idea or the folks on the right, the math is a math. it is going to have to be done. but if we do not step up economic growth, entitlement reform is not going to be enough. the cbo projection is that over the next nine years, we will be at 1.9% gdp growth. if we could get that up around 3%, that economic growth, that expansion, because every euro multiplies on the previous year, salsa a lot of our sins. have you get dramatically accelerated economic growth? major tax reform. it is tax reform that stops the incentives of i'm going to engage in this activity because of the tax benefits. you are also going to have to do regulatory reform. we are going to have to do immigration reform. you have to do everything at
once. another achilles' heel we are seeing in the numbers is the number of brothers and sisters who are not in the workforce. this one is a little bit more complicated. if you have about 95 million americans who are not in the workforce and if you actually take working age males, what happens in an environment where you have 60% of working age males who are not in the workforce who happened to be on social security disabilities? yes, there is a change in demographics and our mean age is a bit older today than it was a decade ago. something has gone horribly wrong in the system when you look at the chart of how many more americans are on these types of programs instead of incentivizing the work environment. let's hear from more
collars. anna is a democrat. caller: yes, we keep hearing about the medicare is going to go broke. if they would keep their hands out of the medicare. obama just took $700 billion out 700 out of social security. this money has been put in and it is supposed to be for the 65. why they keep telling us that, why don't they cut out welfare? food stamps? all of these free programs. host: hang on the line. the congressman has run the numbers. guest: the numbers are much more ugly than that. engaged in a has number of activities over the last decade that shorten the life of some of these programs.
whether it had been the sweeping to shore up social security disability, social security lost about a year. a number of those things. folks who are probably actuaries. it is about $100 trillion underfunded. you and i could fish social security in a couple of hours over a couple of espressos. the hospital trust fund portion of medicare is out of money and less than seven years.
the demographics as we grade gets older as a society, the curve explodes up the charts. remark, whybout the can't you get rid of the free programs? guest: there is a reality that a that are the programs earned entitlement, we have a lot of great data that says we may be hurting society and the very people who are receiving those benefits. how do you take something like social security disability and say we want to protect their brothers and sisters who need help, but help is helping you get back into the workforce because having you as a participant in the workforce has a multiplier effect to economic growth, productivity, future tax revenues.
that needs to be our goal. we are going to have to reform social security disability. if you add up all those programs . medicare, social security, interest on the debt. host: marvin is a democrat in charlotte. your question or comment for the congressman. caller: my question is i'm going to give him a number that i read when reagan came out of office and it was the wealth of the richest people in this country. i'm on the phone, man! trillion..9 1990's. in the early the used to be a chart that shows the wealth of the wealthiest people.
you can see what the numbers are . we are in debt because the rich do pay, but they are making more money and more money. the second thing is to take the cap up social security up to $118,000. isst: i think the cap $127,000. let's do this backward. cap has ahe certain math problem. security and annuity type program? if it is truly a defined-benefit program, if you raise to the cap to those who are paying more, do their benefits increase? sympathy,p the same
if the benefit increases, there is no upside. you have to intellectually make as a society,hat we are going to lift the cap from social security, but we are not going to lift the compensation or the benefits. social security is easy to fix. it is medicare that blows off the charts. i hear this from a number of my most aggressively left friends and that is, well, if we would just confiscate the wealth of the top 1%. shockingly, if you do the math, yes, it buys us a couple years, but it does not even come close to taking care of the scale of these problems. gdpider the entire nation's . $14 trillion, $15 trillion.
the unfunded liability of these programs. it is $100 trillion. we are going to have to move away from the trite little lines that the political class often throws out and deal with the reality that the math is really complicated, it is really hard. a lot of elected folks are going to have to get up in front of their constituents and say the stories we told when we were getting elected, the math is much more troublesome and step up. every day we wait, we make it more difficult. host: greg is in wisconsin, a republican. what do you think? caller: good morning and thank you for c-span. my question and i hope it get the terminology right, when we are projecting out to the future and looking at historical trend lines of spending and debt over some period of time, we have had
some points in time where the surplus has been greater than expected because of economic upturns. to spendingpened patterns and how politicians have handled that excess of andy during those times then you are projecting we need 3% versus 1.9%? i guess i would like to comment on that. opulenthere are restaurants in washington and new york city, right? [laughter] guest: i will skip on the restaurants. i obviously missed that one. to 3% come i only use that as an example. i sit on an airplane a lot when you are from arizona and sometimes you will sit and build spreadsheets of what you get if you have 3% or 3.5%.
the only time we have had a surplus is the late 1990's. you had a confluence of a lot of things. a confluence of new technologies coming on the market, so you had the tech bubble boom, or internet bubble. you had welfare reform that did come in with this huge democratic -- demographic shift. one of the most successful times in society when folks were moving from lower economic strata as into the middle class. of what had this bubble we would refer to as capital gains. if you normalize the capital gains in the late 1990's, the surplus goes away. and the curve actually looks much more normal. this is mores that about the demographics of our society. today, we are a society that, without immigration, we have zero population growth.
we are not having enough children. we have not had enough children for a very long time. the design of these programs were often built on the fact that they would be more workers in the next generation paying for the previous. we are a society where, when i was a kid, if you step back into the 1970's, for every dollar that went to a senior, four dollars went to a young person. today, that is reversed. today, four dollars will go to seniors and one dollars to children. now, that is partially because we have a lot more seniors and a lot fewer children, but it does give you a sense of come as a society, demographically where the money goes and where we are. host: before we let you go, there was a revised version of the health care bill in the senate. the senator -- senate leader mitch mcconnell from the broad outlines of what has been reported is looking at keeping
an obama tax in this latest version, the 3.8%. he is looking at not touching medicaid changes. and some other proposals. that those could pass if he could get 50 votes, do you think the changes could pass in the house? guest: you need to see the details. i'm someone that worked very hard on one of the risksharing modeling on the house version. experience personal with a very unique medicaid system we run in arizona and something i'm very proud of how we do it, but we have to deal medicaidality of spending, even under the house plan, continued fairly aggressively. we were just trying to bend the growth of the curve. there were no cuts. to givegoing to have flexibility to the governors.
donete like ours, we have some modeling if you could establish a different type of clinical model. should a poor person have a right to use this, face time, to talk to their nurse practitioner , to their doctor. we need a revolution on how we are delivering and that is going to require flexibility in the statute. host: you on board with senator ted cruz's amendment that would allow insurance companies to sell insurance without the regulations of the so-called obamacare? guest: yes, i liked part of that. there were a couple of other things that you needed to see the full language of how it fit in. let's to 10 seconds on just math. the cbo comes out and says 22 million would lose insurance at the end of the decade. that is actually not what the cbo said if you read it. 22, 15 .5 million are choosing that. freedom of choice. they chose not to purchase.
the remaining population, if you bought a catastrophic policy, the cbo did not count that. if you bought a policy that lasted less than a year, cbo did not count that. if you engaged in a health service contract, i'm buying this many -- that did not count as health insurance. if you come as a religious community or ethnic group, engaged in one of those group sharing -- that does not count. you actually have to dig into the numbers because anyone that will sit in front of these cameras and say they are throwing 22 million off are not telling you the truth. the problem is that these things are all on the website of cbo. host: he is talking about cbo analysis. guest: the number of folks who talk about them and he realize have never actually read them is one of my greatest frustrations. host: congressman, we have to
leave the conversation there. guest: enjoyed this. thank you. host: coming up, npr justice correspondent carrie johnson joins us to take a look at christopher wray's nomination to become fbi director. flatlyn, president putin denies interfering with the u.s. presidential election. we will ask congressman meeks what he thinks. we will be right back. ♪ >> this weekend on american history tv on c-span3, saturday at 8:00 p.m. eastern on "lectures in history," appellation state university professor discusses george mcclellan's failed attempts to take the confederate capital enrichment. >> they have not done an awful lot of research about what this
peninsula looks like and what marching along this peninsula would be like, but he is so dead set on making sure that he does not concede anything to lincoln that he basically puts his army on the peninsula in the spring of 1862. it is going to turn out to be the worst possible place to launch his campaign. >> sunday at 6:30 p.m., on the anniversary of the salem witch trials, margo burns talks about the primary sources from the trials compiled in the book "records from the salem witch hunt." >> that is one reason why we know so much about salem village, about the pleas of innocence because samuel parris took it all down. there is a reason that arthur miller post from him because it reads like a play. she says this, he said that. we could not hear, the girls were flailing. all of those descriptions come from samuel parris because he is reconstituting it from his shorthand. >> at 8:00 p.m. eastern on "the
book "the road to camelot." >> i was a junior in college in 1960. it was the first time i ever heard the word charisma. it was because he had charisma. richard nixon did not have charisma. [laughter] >> lbj did not have charisma. [laughter] >> jack kennedy had charisma. could have possibly tipped the balance in some people's mines. smart as hell, too. >> for a complete schedule, go to c-span.org. >> washington journal continues. host: at our table this morning, justice correspondent for npr about thenson to talk fbi nominee christopher wray testifying on capitol