as doug elmendorf made clear yesterday, that is the trade-off you have to make. yes, we either have to raise taxes or we have to reduce spending, and candidly, to get $16 children of deficit in control, we have to do both. host: what is the baseline reform act? guest: it is an exciting proposal, one actually that louis gomer from texas has been pushing, and we have a budget chairman and leadership that wants to bring it to the floor. what it says is this -- we can't assume the federal government will just continue spending more and more and more. when the cbo does its reports, it looks at current law and says if these laws remain in place, what will the economic outlook look like. with one exception, and that of this question of spending. what -- about $1 trillion dollars approve rates. in that category the look and say we see congress and for a long time and congress usually spends more so we will assume they will spend more each year at the rate of inflation. that builds and a bias towards more spending. it leads to a conversation that i know your callers talk

more from the director of the congressional budget office, doug elmendorf, who announced yesterday the government bull run a $1.1 trillion deficit in the next fiscal year. a slight dip but high by any measure. the budget office reporting annual deficits will remain at the $1 trillion range the next several years if the bush era tax cuts are also extended. doug ellen dorff testifying yesterday and back up today taking questions from members of house side including congressman lloyd dogget, democrat from texas. >> during the short-term if i understand the testimony, it is that if we reduce the short-term deficit too quickly with sudden reductions in expenditures for vital public services, we'll actually retard quick growth in the short-term? >> yes, that's right. reductions in the deficit too quickly, through either tax increases or spending reductions, would retashd the quick recovery and that is consistent with i think the consensus of thinking in the economics profession, consistent with the experience that we're seeing in europe. where countries that are in worse budget shape than we

his name is doug elmendorf. here are some points on testimony he gave to congress. key facts from the cbo's budget and economic outlook that made news this week. he told us a real economic growth was projected to be just 2.2% in 2012, falling to 1% in 2013. let's hear some of him in his own words. [video clip] >> to put the federal budget on a sustainable path, policy- makers will need to allow federal revenues to increase to a much higher percentage of gdp, average of the past 40 years, or they make large changes to social security and federal health -- health care programs, or pursue a combination of those strategies. host: our next call on our conversation about your local economy is john, a republican in asheville, north carolina. caller: thank you very much. i am part of the dying breed of republicans in asheville. as though it is heavily democratic and also have a concentrated with environmental non-profits, public interest nonprofits, racial interest nonprofits. above the one thing that has really hit asheville hard as we lost several major, major industries.

doug elmendorf warning that economic growth is about to get worse. >> as you know, the pace of the recovery has been slow since the recession ended about two-and-a-half years ago, and we project it will continue to slow. according to our projections, we're only about halfway through the recession and aftermath. >> are there more people today or fewer people working today than on inauguration day of 2009? >> i believe the answer to that is there are fewer people, congressman. megyn: joining us now, charles payne with the fox business network. this guy had piece of bad news after piece of bad news as he testified before congress. economic growth is only going to be 2% this year and an anemia 1.1% next year. that's what he's saying. he says that the cbo estimates unemployment will not get above 8% in 2012 or 2013, and he says in 2012 they believe it's folk to be at 9.2% the whole year. i mean, you tell us, how pad is this? >> it's really bad. this takes us back to the summer of last year. you remember when everyone was talking about, megyn, about a double-dip recession. when you start talking

. >> congressional budget office director doug elmendorf testifies before the house budget committee. live this morning on c- span-3 at 10:00 a.m. eastern. >> instead of campaigning in florida, ron paul is in nevada. he spoke tuesday night to a rally in henderson. >> thank you. thank you very much. thank you. thank you very much. thank you. [chanting "ron paul"] thank you very much. thank you. if the enthusiasm wins an elections, we win hands down. this is great. this is nice. thank you for coming out. a little while ago i saw governor romney and congratulated him. >> [boo] >> no, i congratulated him. i said i would see him soon in the caucus states. you have been having a fantastic trip. not too long ago, we were up in maine. it was a fantastic reception. today we had businesses in colorado. they were fantastic. it looks like we have a few hundred here tonight to say the least. 1000 people. now, a few months ago there were 9 candidates. we are down to four. tonight as of statistics that we are in third place when comes to delegate -- i saw statistics that we are in their place when i

talk to congress about the overall fiscal situation, and i think it's very clear, and i'm sure doug elmendorf made a very clear presentation, that on current reasonable expectations about policy, that the u.s. federal deficit will become unsustainable within 15-20 years at the most, and possibly some of those effects will be even brought forward by markets. so, we clearly need some major changes in our fiscal planning and our fiscal paths going forward, and these are concerns. i want to emphasize these are concerns which are not just about our children 20 years from now but could have effects much sooner if markets begin to lose confidence in our nation's able to stabilize our debt burden. >> in followup to what senator portman said, do you believe that here in the congress, we need a greater urgency in addressing these issues, these structure issues? >> certainly, you do. in fairness to the hard working people here, i would say that there's still a lot of -- lack of clarity to some extent among the general public. i think people have conflicting views with what they want and everyone wants a

national captioning institute] [captions copyright national cable satellite corp. 2012] >> and doug elmendorf testified tomorrow morning, the focus on the economic outlook that was released today. that is live on c-span3 tomorrow at 10:00 a.m. eastern. >> our "road to the white house coverage continues in a few moments with mitt romney. he won the florida primary tonight. his comments to supporters in tampa are next. in a little more than 20 minutes, we will hear from newt gingrich in orlando. he came in second. the other major republican presidential candidate, texas representative ron paul and bricks santorum are already campaigning in nevada for that state's caucuses on saturday. there events are coming up shortly. >> by 2016 according to the imf, the world's leading economy will be a communist dictatorship. that is in five years' time. think about that. if the imf is right the guy you elect next november will be the last president of the united states to preside over the world's leading economy. >> mark steyn has published nine books. his latest is the new york times best seller. he is a

more on the economy this morning when doug elmendorf, the director of the congressional budget officeified before a house budget committee. yesterday, he said the federal budget deficit will exceed $1 trillion in 2012 for the fourth consecutive year. hear his testimony live at 10:00 a.m. eastern time on c-span radio and watch on c-span3. those are some of the latest headlines on c-span radio. >> by 2016, according to the imf, the world's leading economy will be a communist dictatorship. that's in five years. think about that. if the imf is right, the guy you elect next november will be the last president of the united states to reside over the world's leading economy. >> his latest is a "the new york times" best seller. he also writes "the happy warrior" column. he is also a frequent guest on the rush limbaugh show. live at noon eastern on booktv. >> "washington journal" continues. >> we are back this morning with gideon rose, "foreign affairs" editor. we are talking about the magazine celebrating its 90th anniversary. on the cover, "the clash of ideas." you went through your archives

his name is doug elmendorf. here are some points from testimony that he gave to congress. key facts from the cbo's budget and economic outlook made news this week. he told us real economic growth was projected to be just 2.2% in 2012, falling to 1% next year in 2013. he expects the unemployment rate to reach a .8% in 2012. his concerns about the budget, 20 so budget deficit is projected to equal $1 trillion. let's are some of him in his own words. >> to put the federal budget unsustainable path, policymakers will need to allow federal revenues to increase to a much higher percentage of gdp, and average over the past 40 years. or make very large changes in social security and federal health care programs, or pursue some combination of those strategies. >> host: our next call and our conversation about your local economy is john, republican and asheville, north carolina. good morning, john. >> caller: thank you very much. i'm part of the dying breed of republicans in asheville. i shall is a very heavily democratic area, and it's also heavily concentrated with environmental n

. >> this week on "newsmakers" we have democratic congressional committee chair dougs elmendorf. -- steve israel. >> the wall street journal had you up 6% -- six points. the 25 seats you need to gain back the house, we have it at about 12 right now. how do you make this calculus work in more competitive districts, ones that may not have

i want to thank doug, first of all, dr. elmendorf and your entire cbo staff for your hard work on the release of the annual budget and economic outlook. we have a compressed timeline this year, given the tardiness of the president's budget, given our easter coming earlier, so we know that cbo is going to be pushed extra hard this year, and i know you're working really hard around the clock over there. so i first off want to start off by saying thank you for all you've done. there's no question about it. our fiscal and economic outlook is grim. according according to cbo's outlook it will mark the fourth straight year of trillion-dollars deficits. trillions more will be ahead putting a chilling effect on jobs today and. cbo projects economic growth remains sluggish and the unemployment rate to hover near 9d% through 2014. this report confirms what too many americans already are painfully aware of. president obama's policies simply are not working. the president's and his party's leaders successfully enacted much of their agenda, but t