ten percent and there's been seven million jobs lost since december two thousand and seven in that context the president has put forward a jobs and wages tax credit intended hiring especially among small the reality is turned out roughly consistent with that projection spending in two thousand nine hundred twenty four point seven percent a different mandatory spending was lower discretionary spending somewhat higher in part because of the recovery act than what was initially tax cut not being paid for along with the medicare prescription drug benefit not being paid for and the second was that calming down the first factor not deficit financing of the tax cuts and the drug benefit the deficit by more than five trillion dollars the second factor that comic downturn by reducing revenue and increasing certain kinds of spending raise the deficit by more than two trillion dollars now that's all fine and well and provide the facts about where where we found ourselves the question is what are we doing about it and how are we addressing both problems i already mentioned that the president put forward a jobs package intended hiring in the near term of the economy would be declining and our fiscal outlook would be significantly different sakit economic recovery will help to reduce the deficit economic recovery will help to reduce the deficit from about ten percent  caused by previous administration tax cuts representing nine hundred sixty billion dollars unpaid for two wars representing nine hundred eighty four billion dollars and paid fo including twelve million dollars of cash that was distributed to put the sunni insurgency in iraq nobody knows where it is nobody has any accountability a drug prescription program the cost six hundred billion dollars unpaid for the previous administration the national debt more than doubled from five point six trillion dollars to almost twelve trillion dollars the mass vast majority of the current budget deficit is a consequence of the previous eight years that on top of the fact that the previous administration barked out enough for toward reckless regulation of the financial industry in particular the securities and exchange commission change what they refer to as the net capital rule which allowed investment banks to increase their debt to asset ratio from six to one to thirty three to one a lot of these investment banks over leverage d created all kinds of exotic instruments to cover for their over leveraging this is in my opinion the opinion of the wall street journal the opinion of a conservative columnist writer contributed to this problem question is where do we move from here and i think the one thing that everybody agrees with is that we need to do nation building right here at home in america because of the rest of the world rises as we are preoccupied with wars in two places what's being compromised is our investment in infrastructure our investment in human capital the president has fulfilled his obligation to increase funding to the national cancer institute which is very very important six billion dollars what will it do that will allow the national cancer institute to start thirty new trials smart drugs more than doubling the number of cancer drugs in clinical trials in the next five years smart drugs are effective because they kill cancer cells without killing the healthy cells are highly effective they're moving us from a job but success of the recovery act is not actually one of them i would be delighted to give you a credible outsiders i think the conventional wisdom among economists is by far that without the recovery act we would have a much higher probability of entering a depression if you simply look at economic performance in the second third and fourth quarter of last year i think that the recovery act contributed importantly to moving from negative growth positive  mr welcome to the committee again i'm going through your numbers here and i want to try to keep this very brief i will make a statement and i'm i hope to make a statement either here or we can just get to the bottom line on some of these numbers help people that are trying to buy life insurance that's another revenue raiser again there are look i'm going to back up and say because we could keep going down the left but i just have one more after this one  possibly happen and that is thirty eight billion dollars on american energy production you're very familiar with these provisions one ninety nine now about half of our roughly half our trade deficit is buying foreign oil now how is it that we're going to create american jobs and buy less foreign oil if we tax our domestic producer one of the absolutely essential things that we put forward that would do that and not only do that but impose the burden on our largest financial institutions those with more than fifty billion dollars in assets and thereby also help to get one of the contributors to the financial market problems which was  i mean that's a small example of example and i have a lot of respect for him but mr ryan has put forward an alternate path forward on the budget as a whole which represents a dramatically different introduce individual accounts into social security which again is a different much different approach that gentleman i'm right over here if you want to know what's in the plan i'll be happy to answer your question i'm afraid we very much know it conversation we're having about budget where we are how difficult the situation is i simply use this chart to point out how steep the climb will be for this country for americans to be able to get back to work for the federal government to once again be able to grieve as we saw under the previous president one thousand nine hundred bill clinton when we last saw a budget surplus  terms of where this thing will end up so we apply the brakes how long does it take that train to stop from the moment we apply the brakes stop that one hundred twenty car train traveling at fifty miles an hour and strengthen the good brakes decade we were on a train where as you can see if you try to break up the reasons we have massive deficits part of it of course is due to the economic downturn part of it now as a result of the bailout of the financial iraq and afghanistan and as you see them moving out into the further years twenty nine the biggest contributor to the deficit and of course our national debt will be the bush tax cut that we would extend them out is trying to stop it from pitching further down and it's going to take a while many of us believe the president is on the right track but it will be tough is there any belief anywhere any economic circles that situation on the day that they were headed over from the previous president george bush to the new president barack obama now now part of this problem of course is a result of the financial services penny that taxpayer put into that program has to be repaid and this responsibility that legislative requirement that the financial industry repaid the american taxpayer in fall for from a substantial change in medicare plan reducing our long term deficit but at the cost of exposing beneficiaries to much more uncertainty about how much health care is going to cost them  at the cost of shifting additional costs on to beneficiaries so it's not hard to reduce federal expenditures just by shifting uncertainty and cost on to beneficiaries and i actually think mr ryan would agree there are  the path of spending we're on right now cannot go where it is it has to come down the question is how do you do precisely correct and i do commend you for putting forward as an alternative  change of course but since i have a minute i won't belabor all of this a reputable economist told the wall street journal that the quote unusual situation the government finds itself in with other countries willing to finance u debt at lower rates won't last when the question is how do you get ahead of that to avoid a downward spiral of rising interest rates plunging dollar and a sinking economy i couldn't charming and intelligent economists a reputable economist and  intelligent comment i could have said it better myself i've got to think that if you wrote this budget with your own druthers it would be the budget you know this budget is unsustainable some of us put an actual plan out there and the administration is putting out a commission this commission whatever you want to call it this is not a real budget it is not a sustainable budget and i just wish because the spending and deficit and debt trajectory matters so much to address some of these issues we do three times what president bush sr president clinton twice and the idea that we would farm out the responsibility for what is such an important part of our constitutional obligation so when the treasury secretary was here just a couple of hours ago chairman rangle agreed with me that the u s is losing jobs by the failure of an acting pending trade agreements with panama do you agree with chairman rangle myself that we're losing