America's Credit Grating - David Leonhardt

  • Aired:  08/02/11
  •  | Views: 15,041

According to The New York Times' David Leonhardt, safeguarding America's credit rating requires reducing health costs and raising taxes. (3:59)

HERE TO TELL ME OTHER WAYS WE

MIGHT SAVE OUR CREDIT RATING,

PLEASE WELCOME NEW YORK TIMES

WASHINGTON BUREAU CHIEF, DAVID

LEONHARDT.

DAVE, THANK YOU SO MUCH FOR

COMING.

GOOD TO SEE YOU.

[CHEERS AND APPLAUSE]

DOES IT REALLY MATTER IF WE HAVE

A TRIPLE A RATING?

CAN'T WE LET THE CHINESE KIDS

GET THE GOOD GRADES AND WE'RE

COPY OFF THEIR FINANCIAL REPORT?

>> IT PROBABLY MATTERS.

>> Stephen: WHY DOES IT

MATTER?

>> NOT SO MUCH BECAUSE OF RATING

BUT BECAUSE THE RATING REFLECTS

A REALITY.

WE HAVE A SERIOUS DEFICIT.

>> Stephen: HE WE JUST MADE

THE HARD CUTS.

>> WE DIDN'T MAKE THE HARD CUTS.

>> Stephen: WE MADE THE HARD

CHOICE TO MAKE THE HARD CUTS

LATER.

WE DIDN'T EVEN DO THAT.

THAT IS A SMALL PART ABOUT THE

BUDGET.

THEY ARE NOT ABOUT MEDICARE

WHICH IS BY FAR THE DOMINANT

SOURCE OF THE DEFICIT.

THEY ARE NOT ABOUT NEW TAX

REVENUE WHICH IS ONE WAY TO DEAL

WIT.

>>

TAXES ARE JOB KILLERS.

DO YOU UNDERSTAND THAT AT THE

TPHO *RBGT?

>> WE DON'T KNOW WHETHER THEY

ARE JOB KILLERS.

WE WERE HERD THAT WHEN BILL

CLINTON RAISED TAXES.

THE 1990'S TURNED OUT TO BE AN

OKAY DECADE.

>> Stephen: COULD HAVE BEEN

BETTER IF THERE WEREN'T RAISED

TAXES.

>> WE DON'T KNOW.

>> Stephen: LET'S TRY NOT

RAISING TAXES AND SEE WHAT

HAPPENS.

>> UNLESS WE MAKE BIG CUTS TO

MEDICARE AND SOCIAL SECURITY WE

GET DOWNGRADED?

>> Stephen: IS THERE ANY WAY

TO AVOID GETTING DOWNGRADED.

MOODIES REAFFIRMED THE AAA

RATING BUT SAID WE HAD A

NEGATIVE OUTLOOK.

>> THE RATING AGENCIES WANTED TO

SEE D.L. 4 TRILLION IN CUTS.

>> Stephen: WE DID $1zV

TRILLION.

HOW MUCH LESS IS THAT THAN FOUR?

>> THREE.

>> Stephen: THAT'S A FAIR

AMOUNT.

>> YEAH.

[LAUGHTER]

>> Stephen: WHAT ARE OTHER

COUNTRIES FACED WITH WITH THIS

CRISIS DOING RIGHT NOW?

WHO HAS BEEN DOWNGRADED?

>> MOST OF THE RICH WORLD IF NOT

ALL OF THE RICH WORLD WHICH

WOULD WE US, EUROPE AND JAPAN IS

DEALING WITH SOME VERSION OF

THIS.

WE HAVE AN AGING POPULATION.

FAST GROWING HEALTH CARE COSTS.

THEY HAVE MUCH LOWER HEALTH CARE

COSTS THAN WE DO.

WE ARE NOT ALONE IN THIS

PROBLEM.

WE HAVE STRENGTHS THOSE OTHER

COUNTRIES DON'T.

>> Stephen: WE HAVE WEAPONS OF

WAR.

>> WEAPONS OF WAR.

>> Stephen: IF ANYBODY COMES

TO OUR MONEY WE'LL DROP ANOTHER

AAA ON THEM.

>> WE'RE THE COUNTRY EVERYBODY

WANTS TO MOVE TO.

IF OUR POLITIC SYSTEM CONTINUES

TO BE THIS PARALYZE AND

DYSFUNCTIONAL THERE'S REAL

REASON TO WORRY ABOUT WHETHER

WE'RE GOING TO SOLVE THIS

PROBLEM.

>> Stephen: DID THE TEA

PARTYERS WIN THIS ONE?

>> YES.

>> Stephen: DID THEY REACH THE

GOAL OF THROWING THE UNITED

STATES GOVERNMENT INTO BOSTON

HARBOR.

>> THEY DIDN'T REACH THE

ULTIMATE GOAL BUT THEY WON THIS

ROUND.

THE BIG ISSUE NOW IS THERE'S NO

WAY WE SOLVE OUR DEFICIT WITHOUT

BRINGING DOWN HEALTH COSTS,

DEALING WITH SOCIAL SECURITY AND

PROBABLY RAISING TAXES UNLESS

WE'RE GOING TO MAKE RADICAL CUTS

TO THE FIRST TWO.

THIS DOESN'T DOESN'T DO ANY OF

THAT.

>> Stephen: DOES THE

SUPERCONGRESS FIX ANY OF THAT?

INSTEAD OF 535 PEOPLE TRYING TO

COME TO AN AGREEMENT IT'S 12

PEOPLE IN A CLOSED ROOM,.

>> RIGHT.

>> Stephen: COMING UP WITH AN

AGREEMENT.

WITH THAT HELP?

>> SOMETIMES CLOSED ROOMS WORK

BECAUSE THEY ARE NOT SUBJECT TO

ALL KINDS OF SCREAMING AND

SHOUTING IN PUBLIC.

MOST OF TIME THEY DON'T.

>> Stephen: WHAT ABOUT A

SUPERDUPER CONGRESS WITH SIX

PEOPLE WITH AN UBERCONGRESS

ABOVE THEM AND THEN FINALLY JUST

HARRY REID AND McCONNELL WITH

KNIVES.

>> UNLESS TIGY ARE GOING TO CUT

MEDICARE, CUT SOCIAL SECURITY OR

RAISE TAXES NONE OF IT WILL

WORK.

>> Stephen: WILL YOU PLEASE

COME BACK IF THE UNITED STATES

CONTINUES TO EXIST?

>> I WILL.

>> Stephen: THANK YOU SO MUCH.

Loading...