McCarthy on Debt Ceiling: We Aren’t Going to Default

MARGARET BRENAN : I’d like to address some of the major agenda items. You have accepted an invitation by President Biden to meet. You have accepted an invitation to meet with President Biden. When and what offer are you making?

MCCARTHY: Well, we’re going to meet this Wednesday. I know the President said he didn’t want to have any discussions, but I think it’s very important that our whole government is designed to find compromise. I am looking for a sensible and responsible way to lift the debt ceiling while also controlling this uncontrolled spending. You can see that over the last four years the Democrats have increased their spending by $30 billion, which is $400 billion. We’re at a 120% of GDP. We haven’t been in this place to debt since World War Two. So we can’t continue down this path. And I don’t think there’s anyone in America who doesn’t agree that there’s some wasteful Washington spending that we can eliminate. So I would like to meet with you all and come up with a plan to move us forward. We need to be able to reach a balance, but not compromise any of our debt.

BRENNAN

MCCARTHY: Yeah.

BRENNAN

MCCARTHY: Well, if he’s changed his mind from his whole time in the Senate and Vice President before, I mean, he literally led the talks in 2011 and he praised having those talks. This is what he’s always done in the past. If he listens, 74% of Americans believe that we should sit down and discuss ways to reduce Washington’s wasteful spending. So, I don’t believe he would change his behavior from before, and I know there’s a willingness on our side to find a way that we can find a reasonable and responsible way to get this done.

BRENNAN: Right, I mean, you know why I’m asking that of in terms of not linking one as leverage for the other.

MCCARTHY: Yeah. MCCARTHY: Yeah. This is something I brought up in my first conversation with the President when he called to congratulate the winning speaker. And he said we’d sit down together. Although his staff may try to contradict him, I believe the President will be open to a compromise.

BRENNAN: Well, we’ll watch for that on Wednesday–

MCCARTHY: I’m hopeful, yeah.

BRENNAN : I would like to see what you are prepared to share because Republicans campaigned on fiscal accountability. You promised you won’t spend more next year than you did last year. Are you open to considering any reductions in Medicare or Social Security?

MCCARTHY: No. Let’s take those off the table–

BRENNAN: Completely?

MCCARTHY: Yeah. You can see that our commitment to America is focused on strengthening Medicare and Social Security. So, and I know the president says he doesn’t want to look at it, but we’ve got to make sure we strengthen those.

BRENNAN – What does strengthen mean? For example, you mean to raise the retirement age.

MCCARTHY: No, no, no. What I’m talking about Social Security, Medicare, you keep that to the side. What I want to look at is they’ve increased spending by 30%, $400 billion in four years. You can see that they have added $10 trillion to their debt over the next ten year period. If you take a look back a month ago, you will see that they passed the bill and never passed any appropriations bills in the Senate. While Mr. Schumer has been leader, he’s never passed a budget, he’s never passed the appropriation bill. He just waited until the end of the year, and then allowed two senators to draft an $1.7 trillion Omnibus Bill.

BRENNAN

MCCARTHY: Yes.

BRENNAN: Is that what you’re saying?

MCCARTHY, Yes. I think we should each have to pass a spending plan. We both should have to pass the appropriate- appropriations bill so the country can see the direction we’re going. It is impossible to continue spending that has caused inflation, which has led to our economic problems. We’ve got to get our spending under control.

BRENNAN : Ok, let’s just check that 25% of this debt was incurred in the four years prior to the Trump presidency. This is cumulative debt over many many years.

MCCARTHY, Yes, but only for a short time. But you’ve also found that you had a pandemic. As the pandemic falls, these programs cease to exist. I’ve watched the president say he cut it. It’s spending $500Billion more than was expected. They have spent more and we’ve got to stop the waste.

BRENNAN – Is there a place for defense spending?

MCCARTHY: Well, look, I want to make sure we’re protected in our defense spending, but I want to make sure it’s effective and efficient. I want to look at every single dollar we’re spending, no matter where it’s being spent. I want waste to be eliminated wherever it’s found.

BRENNAN: But when you became Speaker, you did come to that agreement, I’ve referenced, of capping ’24 spending at ’22 levels. That would necessitate reductions.

MCCARTHY: Well listen– no, I mean, look, you’re going to tell me inside defense there’s no waste? Others? I mean–

BRENNAN

MCCARTHY: They spend lots of money – I believe everything, when you consider discretionary, is there. It’s like every single household, it’s like every single state. We shouldn’t just print more money, we should balance our budget. Therefore, I will be looking at each department. How can we be more efficient, effective, and accountable? That should be–

BRENNAN: More efficiency in Medicare and Social Security?

MCCARTHY: The one thing I want to say, we take Social Security–

BRENNAN: Completely?

MCCARTHY: –and Medicare off the table.

MARGARET BRENNAN : Would you be open to a short-term debt limit increase until September? Give us more time to talk?

MCCARTHY: I don’t want to sit and negotiate here. I’d rather sit down with the President and let’s have those discussions. I do know one thing: We cannot continue to waste our money. We can’t continue to spend more money or leverage the debt of America’s tomorrow. We’ve got to get to a balanced budget.

BRENNAN: Well, and I think many people would agree with you on the issue of fiscal responsibility, but there’s that deadline on the calendar in terms of facing potential default. Are you saying–

MCCARTHY: Wait, wait a minute–

BRENNAN

MCCARTHY: We’re not going to default. Let me be honest right now. So we hit the statutory date, but let’s take a pause. We have hundreds upon billions of dollars. This won’t come to fruition until sometime in June. The responsible thing to do is to get down and have a discussion with two adults. Unfortunately, the White House was saying before, like they wouldn’t even talk. I’m- I’m thankful that we’re meeting on Wednesday, but that’s exactly what we should be doing. We should all work together to find a solution. It is something every family does. The problem is that you have reached your credit limit. Do we keep raising the limit? Or should we look at what we’re spending?

BRENNAN: Resolving past obligations.

MCCARTHY: No, no. Chuck Schumer never passed a budget since he’s been leading. He’s never passed an appropriation bill. These are the most fundamental things Congress should do. And what- if you’re going to show to the American public where you want to spend your money and if you’re going to ask the hardworking taxpayer for more of their money, you first should lay out how you’re going to spend it and you should eliminate any waste so you don’t have to raise more taxes.

BRENNAN That will not happen under your watch.

MCCARTHY – There will not be default. What is truly irresponsible, however, is the way the Democrats are arguing that we have raised the limit.

BRENNAN

MCCARTHY. Let me tell you, the President and Schumer are blocking the way. They won’t even pass a budget. They won’t even negotiate. We have until June. I want to make sure that we have something responsible, something we are able to move forward on, and something with which we can balance out our debt. So I’m looking for sitting down. That’s exactly what I’ve been asking for. The only one who’s playing with the markets right now is the President to have the idea that he wouldn’t talk. Did the president really believe and really all your viewers, do you believe there’s no waste in government? Are you sure there wasn’t any waste in the $1.7 trillion? That’s what we were spending just four weeks ago. Therefore, I believe the rational decision here is to sit down and eliminate all waste.