Deficit and the Two-Year Budget Deal

John Reid
Friday, February 9th

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Thanks sandy it's 735 on this Friday the ninth day of February 2008 teams. This is Richmond's morning news on news radio WR VA and I'm John Reid so thankful that you're with us here as we wrap up another week. As you heard Andy mentioned. We do have a deal. To keep the government open and in theory at least to fund the government towards the operate the government or through at least have a blueprint for the governor let me amend this a couple of times. For the next two years Condit for the next six months. Remain a botch is a fiscal and economic expert at the heritage foundation of the DC and she joins us now on the telephone to give us an assessment of what the congress is actually done good morning to you Romain. How are you. Good morning I could be better could would congress voted to bankrupt the country last month but otherwise doing well. I I listen I agree with you and it's not just that I'm inclined to agree to Yemen objectively no matter whether you want to closure rise or you wanna do creative bookkeeping. Oh we are bankrupt so what do what is the what is the solution here do we dismiss the opportunity to fix that's. Also what they did last night live actually unprecedented in the history of the budget control act if we think back to 2011. The last time. We want trillion dollar deficit. Congress actually passed the deficit reduction PR called the budget control act that put caps in place. All 28 years of the Obama administration. They do provide those cabs to allow for upward adjustment in the sense that our defense that they. But every time that this felt like actually. Paid for the spending cuts spending increase is quick stumbled cuts elsewhere. Since then this could not happen last like last night congress agreed Justin fox the budget caps. Two more than tripled the previous increases that we saw the Obama administration. And not take corn and that is why this deal is fundamentally different. From the deal made during the Obama administration and if you look at the overall I didn't. Did you go largest spending increase since the stimulus bill in 2009. Apple is struggling. That's that's a lot of money to go out the door and I guess that was the point that Rand Paul the senator the Republican senator from Kentucky was making when he was. Really calling out his own party in his own colleagues with. Hey you hated Barack Obama is. Spending plans then why are you going along with this just because we have a Republican. In the White House and I I assume that you agree with that kind of chastised her. He wants really one of the few people who put up a been there done that so much so you want. I would Angola like this. Absolutely right and there's no justification for the map that won't creep and I think about this for a second. By the time appropriators like he's spending bills will be at the end of march. That means that federal government agencies. We'll only have about six months left. Because the end of the fiscal year which can in September. Arrives and won't happen any time that they haven't had hidden loot. There's one thing the government earlier crept in my hand and being unable to spend money for their garlic I'm glade. We'll try to correlate this horrible. So that's a patient build additional billions of dollars out the door and I think they can't and I couldn't clear on its feet on the billions of dollars. It government waste just because you have to spend the money and the content currently Britain America and shovel ready projects. It is just going to waste a lot a lot of taxpayer money. So this deal is done it appears and I'm guessing the president's gonna sign and I don't know why he hasn't signed it already it's seems to me that that's the stupid communications move if not a practical move senses. Lot of federal workers still are going into work this morning it seems. That's what I'm hearing. What is your advice going forward for. Republicans I guess Democrats don't care about the same thing is that you and The Heritage Foundation would be talking double what would your advice be going forward real fast. Opened it there at the Pentagon that this young that they actually have an opportunity by the may 23. A bit. Look at the top line depends the maximum that congress should appropriate they could occur create a lot less than that. And there's no reason why they shouldn't I think they should get current justification. For how did I will be spent so that we know that there are you going to wait that. Beyond that then they they they suspended the debt limit until next year after the election in March they need to come court. With a long term budget strategy that they should do a budget. How should pass the budget. The credit should pass a budget and then they should use reconciliation. To go so well her look more just than they had promised to all the members who voted for the deal last night. Well somebody's got to get serious. It did did I know people think that I'm mum. Just mean nasty negative when I say that something bad is going to happen in our lifetime and we're not going to be able to recover from a match but I. Sounds like you would agree with me that this is not the way. To run a family budget and it sure as heck not the way to run a federal a federal budget for a responsible. Big country with a lot of needs. We haven't unseen debt levels like what we're experiencing now and what we're about to experience. Can the medal of world war chill. And we know about it war with any major nations so what happens when we do have another economic crisis or when do climbed outside ourselves. It won't bigger national security challenged my apartment fiscal base contracted like he did in the past. We could very quickly find ourselves as very difficult and dangerous condition it. Bromide Abacha from The Heritage Foundation I don't think your chicken little. In correctly stating that the sky is the holing I think your emphasis the sending up warning players about some that should be pretty obvious to all of us. And I appreciate you joining us here on Richmond's morning news thank you.