Gov. Mitch Daniels on Budget Deficit

May 25th. CSPAN Columnist George Will talked with Indiana Governor Mitch Daniels about the federal budget and national debt. Introduction of George Will by Pete Peterson.

Bandage on his forehead. I heard about his accident that required stitches.

Can he do the same thing as he did in Indiana?

Nothing magic about deficit reduction.

Will asks question about cognitive dissonance

Daniels agrees, but very important not to sell people short. People will grumble, but if act decisively and make it clear that average people are the reason why we do what we do, will succeed.

Will says can't print money and no requirement to balance budget. Complications?

Yes, have to wriggle around anyway and run up debts. Unfair treatments to evade law.

Can watching fellow governors, would amendment another occasion of lawlessness?

Favor super majorities, not complete answer, always exceptions, current situation may be diversion of real challenge. Preference to do what is necessary.

Gramm Rudman Hollings, put in place trigger that require budget cuts.

Limited utility. Blunt instrument. System finds ways around limits.

Institutional change and equivalent?

Should use different rhetoric. Meant major reductions. Super majority requirement in order to overspend. Arithmetic is plain. Have to transform safety net.

Should entitlements be limited to GDP? How would this work?

In favor of anything that changes trajectory we are on. Need to protect people in elder years, therefore don't know magic percentage. Listen to any approach.

Longer lifespan, need entitlements?

We all should agree, that to look after each other causes us to expend limited resources.

Make money two ways tax reform and deregulation, did you?

says he did that in Indiana. Gives examples.

Simplification of tax code in '86, it has been re-complicated. Is there an urge in DC that makes impossible for simple tax code?

Agrees. Metaphor of planting weeds. (laughter) Optimism to do a couple things one is a pro growth tax code.

Not to use a tax credit for Chevy Volt

No.

Public employee unions- experience in Indiana?

Discontinued collective bargaining by executive order. Employee indirect costs were getting out of hand- needed to restructure to private sources. Important in improving services and reducing costs. Limited government perform excellence.

Democracy's problem in pro-acting effectively

Foresee the problems. Rather not wait until 11th hour. Need to reach people- don't blame the people- never been informed properly- can deal with these issues before worst happens.