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Summary and HighlightsMay 14, 2014 | Washington, D.C.
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Peter G. Peterson Found
The Peter G. Peterson Foundation held its fifh annual Fiscal Summit on May 14, in Washington, D.C. The Summit, titled Our Economic Future, convened a rangthe nations preeminent thought leaders and policymakers to discuss the conne
between fiscal health and economic strength.Building a strong fiscal oundationwhere spending and revenue are in
eral balance and the long-term debt is stabilized at a reasonable levelwill
ensure the conditions or economic growth and opportunity or all Americansproving our long-term fiscal picture will help oster an environment with ger access to capital, more private investment, improved business and coner confidence, and the ability to invest in priorities like education, research development, and inrastructure.
The 2014 Fiscal Summit explored what we, as a nation, have to gain i we actto strengthen our fiscal oundation; promote a growing, thriving economy; and enthat our uture isnt diminished by our past.
Introduction
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About the Peter G. Peterson Foundation
Founded in , the nonpartisan Peter G. Peterson Foundation is dedicated
to increasing public awareness o the nature and urgency o key fiscal challenges
threatening Americas uture and accelerating action on them. To meet these
challenges successully, the Foundation works to bring Americans togetherto find sensible, sustainable solutions that transcend age, party lines, and
ideological divides. Since its launch, the Foundation has invested significantly
in grants and projects related to public engagement and the study o fiscal
policies and potential solutions.
2014 Fiscal Summit:Our Economic Future
Welcoming Remarks
Pete Peterson,Chairman, Peter G. Peterson Foundation
Opening Remarks: Our Economic Future
Michael A. Peterson, President and Chie Operating Officer, Peter G. Peterson Foundation
Macro Perspectives: Viewpoints On Economic Growth and Fiscal Reform
Glenn Hubbard,Dean and Proessor o Finance and Economics, Columbia Business School
Alan Krueger,Proessor o Economics and Public Affairs, Princeton University
MODERATOR:Lori Montgomery,Reporter, The Washington Post
Congressional Leaders: Long-Term Fiscal Planning in a Short-Term Political World, Session One
Senator Patty Murray (DWA), Chairman, Senate Budget Committee
Senator Rob Portman(ROH), Member, Senate Budget and Finance Committees; Former Member,Joint Select Committee on Deficit Reduction
INTERVIEWER:Nancy Cordes,Congressional Correspondent, CBS News
Investing in Americas Future: Policy Choices for Shared Prosperityand Growth
President Bill Clinton,Founder o the Bill, Hillary, & Chelsea Clinton Foundation and42nd President o the United States
INTERVIEWER:Gwen Ifill, Moderator/Managing Editor, Washington Week;Co-Anchor/Managing Editor,PBS Newshour
Lessons from the Statehouse: Balancing Fiscal Reform with Pro-Growth Investments
Governor Chris Christie (RNJ
INTERVIEWER:Bob Schieffer,Chie Washington Correspondent and Anchor oFace the Nation,CBS News
The Effects of Long-Term Debt on Market Conidence and EconomicGrowth
Alan Greenspan, President, Greenspan Associates; Former Chairman, Federal Reserve Board
INTERVIEWER:Ben White,Chie Economic Correspondent,Politico
Powering the Economic Engine: Perspectives on Investing in Growth, Innovation, and Competitiveness
Sheila Bair, Former Chairman, Federal Deposit Insurance Corporation; Senior Advisor,The Pew Charitable Trusts
Erskine Bowles,President Emeritus o the University o North Carolina; Co-Chair o the NationalCommission on Fiscal Responsibility and Reorm
John Engler,President, Business Roundtable
MODERATOR:Peter Cook,Chie Washington Correspondent, Bloomberg Television
Congressional Leaders: Long-Term Fiscal Planning in a Short-Term Political World, Session Two
House Democratic Leader Nancy Pelosi (DCA
Representative Peter Roskam (RIL, Member, Committee on Ways and Means
INTERVIEWER:Nancy Cordes,Congressional Correspondent, CBS News
Peter G. Peterson Founda
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| Fiscal Summit Peter G. Peterson Founda
WelcomingRemarks
Pete Peterson
PETE PETERSON, Chairman and Founder o the Foundation,
welcomed attendees to the 2014 Fiscal Summit, s etting the stage or
the days program. Peterson gave a brie overview o the Foundations
work as a nonprofit, non-partisan organization dedicated to increasing
awareness o the long-term fiscal challenges threatening Americas u-
ture and to accelerating action on them.
Under Petersons leadership, the Fiscal Summit has become the pre-mier annual gathering ocused on addressing our nations long-term
debt and economic uture. Now in its fifh year, the Fiscal Summit is a
key part o the Peterson Foundations work to build consensus and sup-
port or putting America on a sustainable long-term fiscal path, which
will help ensure economic growth and opportunity or all Americans
in the decades to come.
Calling our nations unsustainable long-term fiscal outlook a central
threat to the uture economy, Peterson discussed the need to address
Americas fiscal imbalance so that we have the resources to invest inour own uture. He noted that economists agree on the importance o
increasing investment in priorities like education, skill training, re-
search and development, and inrastructure in order to compete in the
knowledge-based, global economy. But i were going to invest more,
he said, the uncomortable question is, Where do we get the resources
to invest?He said that in 25 years interest costs alone are projected to reach
a level that is more than our times what the government historically
spends on education, inrastructure, and research and development,threatening to crowd out these essential investments. Interest, he
said, buys us nothing. Its essentially about the past and not the
uture. Underscoring his belie that we need to protect and bolster
the still-recovering economy in the short term, while addressing our
projected long-term fiscal challenges in the decades ahead, he added,
[T]his set o acts, to me, makes clear the critical need [to] both
reduce our debt [and] find the resources or investment.
Pete PeterChairm
Peter G. Peterson Foundat
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Opening Remarks:Our Economic Future
Michael A. Peterson
MICHAEL PETERSON, President and Chie Operating Officer o the Foundation,gave opening remarks, highlighting the connection between the nations fiscal outlook
and economic growth. Peterson pointed out that while the economy has improved,
there is still much work to be done, as unemployment remains high, growth is
sluggish, and too many American amilies have yet to eel economic relie.
While some have become afflicted with debt atigue and the political paralysis
that comes in an election year, Peterson argued that now more than ever, its critical
to remember the connection between our fiscal outlook and our economic health.
Describing sound fiscal policy as the pathway to a brighter economic uture,
Peterson underscored the importance o activating powerul drivers o growth,including greater access to capital, more confidence, increased private investment,
and more resources to invest, boosting productivity and innovation. In these and
many other ways, he said, a solid fiscal oundation supports a vibrant economy
with rising wages and more mobility and opportunity or Americans.
Peterson noted that voters widely share the view that our fiscal health is connectedto our economic strength, citing the results o a recent national poll commissioned
by the Foundation. The survey ound that 91 percent o Americans agree that a
stable fiscal oundation will help the economy grow, and 80 percent agree that
mobility and opportunity will improve i the United States reduces its debt. Theseresults spanned ideological and socio-economic backgrounds.
Concluding his comments with a positive uture outlook, he said, The good
news is that we can still make the right choices to ensure economic prosperity
or America. There are policy decisions to make and politics to overcomebut
ultimately, its simple math. We know the problem, and the solutions are right in
ront o us. Its time to get it done.
Michael A. PeterPresident and Chief Operating Offi
Peter G. Peterson Foundat
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THOUGH THEY SERVED under presi-
dents o different political parties, two o
the nations leading macroeconomists
ound much to agree on in a discussion
about the economic implications o
long-term debt. Interviewed by The
Washington Posts Lori Montgomery,
Glenn Hubbard and Alan Krueger
explored policies to spur economicgrowth, including tax reorm,
immigration, and public investments in
areas like inrastructure, job training,
and education.
Hubbard, Chairman o the Council
o Economic Advisers under President
George W. Bush, outlined what he
called the nations three big economic
challenges: recovery, long-term growthand balance. He noted, I think Pete
Peterson had it exactly right ... this is
about uture orientation versus past
orientation. We risk becoming a nation
o entitlements and interest payments,
not able to make the investments in ourlong-term uture.
Krueger, who served as Chairman othe Council o Economic Advisers under
President Barack Obama, added, I
think our problem is not the near-term
deficit. Its the intermediate and the
long-term. We have it within our means
to address it. I think the outlines were
there in Bowles-Simpson and in grand
bargain negotiations.
economists strongly agreed re
needed, though they expressed
differences on where to targ
reorm. Hubbard advocated lo
marginal rates and broadening
base or individuals and corpoin order to increase economic g
Krueger saw the corporate side
code as most in need o reorm,
its hard to conceive o a wo
code than the one that we have
corporate side. [It] doesnt raise
revenue, it gives incentives t
money abroad, it gives incenti
inversions o companies. It deconomic activity in all kinds o
Closing on an optimistic not
cited immigration reorm as a pro
way orward or a Congress that h
too divided to make progress on
major legislation. Krueger said, immigration reorm is probab
lowest-hanging ruit as ar as ec
and fiscal policy goes. Hagreed, adding, It should be i
sides economic and political inte
accomplish that. And it would
a signal ar beyond immigration
that says, Look, we can talk ab
things that are contentious and c
a solution.
Discussing whats best or the re-
covery, Hubbard said, In my mind,
the economy needs a jolt. And the jolt
would be something that improves busi-
ness peoples long-term confidence.
That would be tax changes, tax reorm,
trade reorm, immigration reorm, but
yes, also public spending.
Krueger agreed with Hubbard, add-
ing that there must be a strategy to
ocus specifically on the middle class.
Framing the problem as a middle-
class jobs deficit, he highlighted edu-
cation and inrastructure as powerul
investments in this area.
When it comes to tax reorm, the
Macro Perspectives:Viewpoints on Economic Growth and Fiscal Reform
Glenn Hubbard and Alan KruegerMODERATOR:
Lori Montgomery
Glenn HubbardDean and Professor of
Finance and Economics,Columbia Business School
Alan KruegerProfessor of Economics
and Public Affairs,Princeton University
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Congressional Leaders:Long-Term Fiscal Planningin a Short-TermPolitical WorldSession OneIN ORDER OF APPEARANCE:
Senator Patty MurraySenator Rob PortmanINTERVIEWER:
Nancy Cordes
IN THE DAYS FIRST INTERVIEW
with an elected official, Senate Budget
Committee Chair Patty Murray assessed
whats happened in the year since she
appeared at the 2013 Fiscal Summit,
including the government shutdown,
the sequester, and the budget deal sheorged with House Budget Committee
Chair Paul Ryan. Interviewed by CBSs
Nancy Cordes, Senator Murray said
that trust was critical in achieving herbipartisan deal with Chairman Ryan
but that huge challenges remain in
the areas o fiscal responsibility and
investments the country can make tomake sure were competitive in the
global marketplace. Cautioning that
big deals are hard, Murray specifically
cited immigration reorm and a
transportation bill as areas o ocus that
could help promote economic growth in
the short run and ultimately put us on
sounder fiscal ooting.
Murray said its clear that short-term
deficits have been reduced significantly,
but where we have a challenge is in the
long run. And the drivers o that long-
run fiscal challenge [are] the cost ohealthcare and interest. She named
the tax code and entitlements as parts
o our budget that have a huge impact
and have to be addressed to deal
with the long-term fiscal challenges
that we have.
When looking at long-term fiscal
solutions, Murray stressed two keyunderlying principles: [First,] we cantdo it in a way that upsets our economy.
And secondly, we have to do it in a
balanced way. She said its important
that comprehensive solutions look at
how everybody in this country, rom
the smallest person to the wealthiest
person, contributes a air share.
Murray also highlighted the dangers
o what she calls Americas education
deficit and inrastructure d
noting that we are alling behind
competitors in both areas. She
that investing in these prioritieis important to economic grow
competitivenessand will help
lize our uture fiscal outlook: W
just continue to cut education a
search and development and our
structure and say, Thats balanc
budget and well be fine in the u
In talking about the act th
current budget deal expires at to 2015, Murray said that I w
listen to each other and learn teach other, i we find common g
rather than throwing political po
each other, and i we agree that g
ing by crisis is not what the Am
people deserve, Congress will b
to come to an agreement once ag
FOLLOWING his Democratic coll
Senator Rob Portman discussed
Patty Murray(DWA) Chairman,
Senate Budget Committee
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Rob Portm(ROH) Mem
Senate Budget Finance Committ
Former Member, JSelect Committe
Deficit Reduc
unsuccessul efforts at achieving
comprehensive fiscal reorm, expressing
hope that progress could be madeollowing the mid-term elections.
Portman argued that long-term debt
affects our economy today and that
certainly its unair, even immoral to
[pass on] to uture generations.
In particular, Portman saw tax
reorm as an area ripe or compromise
in early 2015. The Senator said he
believes there is an interest in Congressto explore tax reorm that is pro-
growth, and that will reduce the deficit
at the same time. He warned that i we
ail to update our tax code, particularly
on the corporate side, we will continue
to lose jobs and opp ortunity.
Portman also stressed the importance
o ocusing on the mandatory sideo spendingnot just discretionary
programsas we seek to address the
true drivers o our long-term structural
imbalance. He said mandatory entitle-
ment programs are vital but must
be reormed in order or them to be
sustained over time. Portman also
identified healthcare as a critical area to
address, arguing that we need to do moreto change the ocus rom procedure to
outcomes.
And while some point to reduced
near-term deficits as a sign that ur-
ther reorm is unnecessary, Portman
cautioned that the act is that based
on independent analysis rom the non-
partisan Congressional Budget Office,were looking at trillion dollar deficitsagain within the next 10 years.
Taking an optimistic view, Portman
urged the importance o taking ull
advantage o 2015, particularly the first
six months o that year, when maybe
therell be a little less politics, I hope,
to try to make some o these changes,
and do it, again, with the administra-
tion working with Congress.
Nancy CordesCongressional Correspondent,CBS News
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Investing inAmericas Future:Policy Choices forShared Prosperityand Growth
PresidentBill ClintonINTERVIEWER:
Gwen Ifill
IN A WIDERANGING DISCUSSION with PBS journalist Gwen
Ifill, President Bill Clinton covered topics including long-term
debt, income inequality, social mobility, economic growth,
healthcare costs, immigration, tax reorm, and oreign policy. This
marked President Clintons fifh appearance at the Fiscal Summit.
Throughout the conversation, the President applied lessonsrom his administration to the current economic and fiscal con-
dition. He lamented that as we continue to emerge rom the
Great Recession, the United States has been slipping on social
mobility compared to other countries around the worldwhich
has contributed to rising inequality.To address this growing inequality, Clinton advised that the
main thing is we need a s trategy that will increase employment
and change the job mix, with an end goal o more vigorous job
growth, [and] a tighter labor market, which will raise incomes.He also stressed the importance o preschool, technical, and
career education. Noting the importance o reducing inequality,
he said, what we should be trying to do is make sure that were
all growing in real terms together. And having the right budget
or the government and the right investment strategy is a part
o it.
President Bill ClinFounder of the Bill, Hillar
Chelsea Clinton Foundatand 42nd Presidof the United Sta
Gwen IfillModerator/Managing Editor,Washington Week;Co-Anchor/Managing Ed itor,PBS Newshour
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Talking about the recent economic crisis and recPresident Clinton said, [T]hats whats been so chall
about the subject that brings everybody together here
Peterson Foundation. We have a long-term debt issu
have long-term age distribution issues, aggravated
act that we have not passed immigration reorm, w
think would ease a lot o these other problems.
On that subject, the President made the case
bipartisan immigration reorm plan would be an eco
and social good that would help improve growtcompetitiveness. Id like to see immigration reorm
has to be seen as an economic issue, he said. [T]he
is that i we did immigration reorm right, it would
more jobs we need young immigrants, not only b
o their ideas and their energy, [but] to continue t
the economy.
President Clinton made a strong case or corpor
reorm, in order to unlock as much as $1 trillion in ca
outside the United States through repatriation, statiwe are now the only wealthy country that taxes corpo
on the money they earn somewhere else when they b
home. He argued that coming to an agreement on al
that money to flow back to the United States will in
private investment and boost e conomic growth.
The President highlighted recent improveme
healthcare cost growth but said we need to do
more to change our system o paying or procedurperormanceechoing the comments o Senato
Portman and others throughout the day. [W]e have
have a healthcare delivery system that gets better
and is more in line with what our competitors pay, h
citing a breathtaking gap between the United Stat
other countries around the world that spend less but a
better outcomes.
And as part o his concluding remarks, President Csummarized why its important to continue to careour long-term fiscal challenges and economic g
The thing I like about this Peterson [Summit] is I
a lot o people think that we should have stopped t
about the deficit and the debt when the economy was
On the other hand, to pretend that there are no lon
demographic changes or healthcare drivers here is
And I think [that] continuing to ocus on things li
matters it keeps us ocused on these things that wil
the possibilities or America in the uture.
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DURING LUNCH,attendees enjoyed a lively conversation betwee
Jersey Governor Chris Christie and CBSs Bob Schieffer. New Jersey
ernor compared the budgetary challenges he aces at the state leve
issues that ederal policymakers grapple with. In particular, he con
the ederal budget process, which routinely produces deficits, witJerseys constitutional requirement to balance its budget.
Christie also detailed how ederal policy changes can have a sign
effect on state coffers, saying that increased ederal income tax ra
the wealthy caused some New Jersey high-earners to accelerate i
resulting in significant state revenue shortalls this year.
When asked by Schieffer about his budget priorities and chall
Christie discussed the effect o entitlementsstate employee pensi
ments and health insurance and interest costs on New Jerseys ab
invest in additional discretionary priorities like education or inrature. He said this issue is similar to the ederal fiscal challenge, wh
need to do other things, like tax reorm and entitlement reorm,
country to create opportunity or people to have a greater lie tha
parents have had.
Another point o discussion was New Jerseys recent successul
initiative that raised the state minimum wage by $1.25. Christie ou
his support or a minimum wage increasebut emphasized that he
have preerred a phase-in, rather than immediate implementatio
view, he said, is absolutely we should be raising minimum wagwe need to do it in a responsible, graduated way, so that business
prepare or the impact.
Christie also discussed his efforts to work across the aisle an
common ground with political adversaries. I think what [the Repu
party needs to be ocused on is explaining ourselves and not appea
be intolerant, he said. Asked about breaking through partisan gr
Christie responded, Well, listen, I can only analogize to my experiNew Jersey. And Ive had a Democratic legislature my entire time, a
by a small amount. Im working with Democratic leaders o the legion everything that we have to get done.
When Schieffer asked whether Christie is considering runn
president and when he might make a decision, his answer was sho
to the point: Yes, and later.
And talking about the prospects or progress on key fiscal issues
publicans win the Senate in 2014, Christie said that scenario would
an extraordinary opportunity, particularly on issues o trade and
orm, that the president could find areas o compromise with Repub
Lessons from the Statehouse:Balancing Fiscal Reform with Pro- Growth Investments
Governor Chris ChristieINTERVIEWER: Bob Schieffer
Governor Chris Christie (RNJ)
Bob SchiefferChief Washington Correspondentand Anchor of Face the Nation,CBS News
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IN CONVERSATION WITH POLIT ICO S BEN WHITE, Dr. Alan Greenspan
tackled a range o questions on fiscal, economic, and monetary policy. Talking
about the current economic condition, Dr. Greenspan saw positive signs or
increased growth, but also structural problems, including our long-term debt,
that make it difficult to really surge orward.
In addition to the generally recognized level o ederal debt, Dr. Greenspanalso argued that the nation is on the hook or significant contingent liabili-
ties, in the orm o entities that remain too big to ail. He noted that the
saest thing politically to do is always to bail out somebody rather than not
[to] bail [them] out. He added, This is undamentally different rom the
way it was many years ago.
Asked about the lasting effect o market bubbles on the overall economy,
Dr. Greenspan offered a historical look at major episodes, including the
stock market crashes in 1929 and 1987, and the more recent dot-com andhousing bubbles. He explained the reason the housing bubble was much more
economically damaging than, or example, the dot-com boom and crash, was
because the toxic asset in that instance was held by a highly leveraged group
o peoplemaking the contagion even more dangerous.
Dr. Greenspan also highlighted the way that government debt crowds out
private investment, describing the relationship between high ederal spendingand domestic savings rates. The basic issue, he said, is that were just
not saving enoughresulting in lower private investment. Unortunately,
Greenspan concluded, So long as that phenomenon continues, were goingto get a sluggish economy. Were not going to get the revenues on the tax side
which will und these entitlements.
Asked about stagnant wages and slack in the labor market, Dr. Greenspan
identified the main problem as the act that theres an extraordinarily large
amount o marginally low-income workers, which are a unction, essentially,
o the slowness in economic growth. However, he added, I we got growth up
to 4 percent, that problem would disappear overnight.
The Effects ofLong-Term Debt onMarket Confidenceand Economic Growth
Alan GreenspanINTERVIEWER: Ben White
Ben WhiteChief EconomicCorrespondent, Politico
Alan GreenspPresident, Greenspan Associa
Former Chairman, Federal Reserve Bo
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Powering the Economic Engine:Perspectives on Investingin Growth, Innovation, andCompetitiveness
Sheila Bair, Erskine Bowles,John EnglerMODERATOR:Peter Cook
BLOOMBERG TELEVISIONS PETER COOK led an animated
conversation among a diverse panel with expertise in the
worlds o business, education, research, and government. All
three panelists painted a picture o a country that remains in a
perilous position but, with a ew key policy decisions, is poised
to return to fiscal stability and strong economic growth.
Erskine Bowles observed that when it comes to fiscal
reorm, weve already done what he called the easy stuff
and the stupid stuffbut, unortunately, we continueto avoid doing the tough stuff. John Engler, weighing in
rom the business perspective, said I think theres plenty o
evidence that a long-term deal would produce great benefits
or the American economy and or the amilies o America.
All agreed that the lack o a plan to address ourunsustainable long-term debt will, eventually, have negative
macroeconomic effects. Sheila Bair said that the United
States currently benefits rom a lack o alternatives in the
global economy. But she warned that this cant last orever the world is getting ed up with us. When you have your
central bank start financing your government it always
leads to hyperinflation. Eventually, those chickens will come
home to roost. Bowles agreed, saying that sooner or later
the markets will wake up.
Looking to incremental progress in the absence o a
comprehensive fiscal grand bargain, all three pa
endorsed tax reorm, immigration, and inrastr
investment as areas that will create growth and impr
long-term standing.
On tax reorm, Engler said our current policy is
wrongheaded and, like many o the days guests, adv
or a corporate tax reorm that allows oreign earn
return to the United States or investment here. Bair
that the distortions in the tax code lead to harmul behparticularly in our current low-interest rate environm
corporations issue debt to pay dividends and stock bu
which she characterized as taking on more leverage t
their share price. Bowles added that reorming the tax
essential in order to become more globally competitiveResponding to a question rom the audience,
agreed that investment in inrastructure is a win-win
it comes to adding jobs and economic growth, wh
providing sorely needed upgrades to a crumbling digiphysical national inrastructure.
Highlighting the need or bipartisan cooperation,
quoted his partner in fiscal reorm, saying, And as my
Simpson, says, I you cant compromise without compro
your principles, you better never get in business, you
never be a legislator, and or Gods sake, never get marr
John EnglerPresident,Business Roundtable
Erskine BowlesPresident Emeritus of the
University of North Carolina;Co-Chair of the National Commission on
Fiscal Responsibility and Reform
Sheila BairFormer Chairman,Federal Deposit InsuranceCorporation; Senior Advisor,The Pew Charitable Trusts
Peter CookChief Washington Correspondent,Bloomberg Television
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HOUSE DEMOCRATIC LEADER Nancy
Pelosi led the afernoon session with
elected officials, ocusing squarely oneconomic growth as a necessary part
o improving our nations long-term
fiscal outlook.
Leader Pelosi highlighted interestcosts as a particularly harmul effect o
growing long-term debt, which has an
opportunity cost or investments in edu-
cation, scientific research, and [more].
On the recent congressional debateabout tax extenders, Pelosi strongly
advocated that extending these tax
policies should be paid or or offset
with commensurate reductions in
spending or increases in revenue.
Moreover, she laid out criteria ordeciding which should be extended in
the first place. Policymakers, she said,
should ask about each tax break, How
does it grow the economy? How does
it create jobs? Is it worth even doing?
Pelosi pointed out that the total oall tax expendituresthat is, taxes
that are not paid due to exclusions or
loopholes in the tax codeis nearly asmuch as the total o all taxes that are
paid in the country. She advocated or
revenue-raising tax reorm that would
reduce both corporate and individual
rates, while removing tax loopholes
that arent efficient or deensible.
Pelosi saw investments in education
Congressional Leaders:Long-Term Fiscal Planningin a Short-TermPolitical WorldSession TwoIN ORDER OF APPEARANCE:
House Democratic LeaderNancy Pelosi
RepresentativePeter RoskamINTERVIEWER:
Nancy Cordes
Nancy Pe(DC) House Democr
Lea
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and job skills as a critical actor
in ostering economic growth and
improving our overall fiscal picture:
Nothing brings more money [tothe treasury] than investments in
education. Early childhood, K-12,
higher [education], post-grad,
lietime learning We need a skilled
workorce.
Reflecting on the ailed fiscal
negotiations rom the past several
years, Pelosi said Democrats werewilling to compromise and keep at the
bargaining table. She saw an advantage
to continuing to try or a comprehensive
deal, because when you have a grand
bargain, you can include a lot o
things in it that might otherwise be
unacceptable in a small bargain but
i theres a shared responsibility, you
can really get a lot done.
IN THE DAYS FINAL CONVERSATION,
Peter Roskam gave the perspective o
House Republicans, talking about the
influx o new members through the
elections in 2010 and 2012 and what
those changing dynamics have meant
or policy priorities. While many o
these new members came rom the
private sector and were relatively
new to politics, Roskam said, In anutshell, theyre becoming incredibly
sophisticated members and really
learning how to deal with the legislative
process.
While expressing caution aboutoverspending, Roskam emphasized the
importance o investing in the right
way. He said that House Republicans
recognize inrastructure in particularis a unique ederal and governmental
program where the ederal government
needs to [play] a significant role.
Using the underunding o public
pensions in his home state o Illinois
as an example, Roskam stressed the
importance o addressing fiscalas an important step toward re
transormational economic g
However, he warned i, at the
level, we continue to avoid,
avoid, were going [to] underp
and well continue to see GDP [g
struggling to stay above the ma
On major issues, including taxand immigration, Roskam sug
that an incremental approac
be the best way orward. He sa
comprehensive has become
word in American politics
adding that his constituents
glaze over at the idea [that] C
Hill is going to comprehe
fix something and make allproblems go away. Alternativ
argued that by ocusing on s
areas o common ground, progr
be made, even on difficult issu
immigration reorm, he said th
connection to the economy res
deeply with Republicans an
theres a recognition that immig
reorm can be a robust producean economic growth point o vie
Responding to an audience qu
Roskam said that i he could p
fiscal reorm issue to tackle in th
year, he would choose Social S
Doing so would create a virtuous
not only stabilizing and strengt
the program, but sending a m
about Washingtons ability to slooming fiscal problems.
Peter RoskamRIL Member,
House Budget Committee
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In concluding the program, Michael Peterson reiterated the days theme o the criticalconnection between our nations fiscal outlook and our economic condition. Petersonthanked the diverse lineup o speakers throughout the day, stressing the importanceo convening all perspectives to work toward fiscal and economic solutions that willincrease opportunity, mobility, and prosperity or all Americans.
In recent years, policymakers have ocused mainly on reducing near-term deficits.As a result, we have yet to address the undamental drivers o our unsustainable long-term debt. How we choose to deal with these challenges will have proound effects
on our shared economic uture. In a year o diminished urgency on this issue, the2014 Fiscal Summit brought the countrys leading thinkers and policymakers togetherto reocus the national conversation around the importance o creating a sustainablelong-term fiscal outlook. From generating public and private investment, improvingconsumer confidence, growing wages, and preparing American workers to compete inthe global economy, the conversations at the Summit demonstrated that by addressingour long-term fiscal challenges now, we can create a strong oundation or a vibrantand growing economy that benefits all Americans.
Conclusion
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For more photos and full video from the 2014 Fiscal Summit, please visit
www.iscalsummit.com.
Photos by Ralph Alswang and Chris Williams
www.pgpf.org