Yesterday on Fox News Sunday, House Minority Leader Nancy Pelosi told anchor Chris Wallace that the discussions about the budget should not be overly focused on spending cuts. Pelosi told Wallace that there have been plenty of spending cuts and as a result, “it’s almost a false argument to say we have a spending problem. We have a budget deficit problem that we have to address.”
Wallace began the interview by asking Pelosi about sequestration, which she said was a “bad idea” and should be out of the question. She added that there have been “plenty of spending cuts,” citing $1.6 trillion from the Budget Control Act. Pelosi said that what we need is growth with jobs, and that cuts in education hinder growth and don’t reduce the deficit.
When asked by Wallace about the $5 trillion increase in the national debt since Obama took office, Pelosi replied that it was necessary in order to avoid a depression. She said the Recovery Act saved or created 3.5 million jobs, but she left out the average cost of each of those jobs to taxpayers.
Wallace then asked Pelosi about tax increases and their effect on growth:
Wallace: But you talk about growth. Even Christina Romer, the former head of the Council of Economic Advisors for the President, says if you increase taxes, that also hurts growth.
Pelosi: Well, it’s about timing, it’s about timing, and it’s about timing as to when you make cuts as well.
Wallace: But you, with the fiscal cliff, you raised taxes $650 billion dollars right away.
Pelosi: Yes, and that was a very good thing to do on people making over… the high-end, in our population. Here’s the thing, though. We are here to have a budget that has revenue coming in, that has investments made into the future. We also want to make decisions in those two areas where growth with jobs are created, because more jobs, more revenue coming in. Nothing brings more money to the treasury of the United States than investments in education of the American people. So you have to recognize that, which cuts really help us and which cuts hurt our future. And cuts in education, scientific research, and the rest, are harmful. And they are what are affected by the sequestration. So it is, almost, a false argument to say we have a spending problem. We have a budget deficit problem that we have to address. Right now, we have low interest on the national debt and it is a good time for us to act to lower that deficit. We think the deficit and the national debt are at immoral levels. We think they must be reduced. We are sick and tired of paying interest on the national debt.
Pelosi needs a serious reality check. On the one hand she says that spending isn’t the problem, but she admits that we have a deficit problem. Exactly how does she think we got into this deficit problem? Apparently not by spending more than we take in and wasting billions of dollars on entitlement and other government programs.
Give Wallace credit for holding Pelosi’s feet to the fire and exposing the Democrats’ complete and utter nonsensical approach to dealing with the budget deficit and our ballooning national debt.
UPDATE: White House Press Secretary Jay Carney said on Monday that “Of course, the president believes that we have a spending problem,” leaving Pelosi twisting in the wind.