dr. rivlin and dr. hold 'em comment. i generally agree with your prescriptions but one thing i am talking about is it seems even what the president has proposed there were a few things that are going to get as immediate and short-term and i completely concur with you on the training initiatives and, but i constantly so much of what we try to do appear as well-intentioned the lag time to where it has an effect on immediate job growth or spurs really takes much longer than i would like. and again my tank is to the chairman. >> just a brief comment. i believe what is holding back investment is not crowding out by the federal borrowing, but lack of demand. and possibly some uncertainty, but lack of demand is the basic album. if you don't think you can sell your product you are not going to make more of it, and the way to increase demand in the short run is to get money into people's pockets that will spend it. that is the argument for extending and increasing the payroll tax cut. it goes to wage earners all over the country.

dr. rivlin and dr. hold 'em comment. i generally agree with your prescriptions but one thing i am talking about is it seems even what the president has proposed there were a few things that are going to get as immediate and short-term and i completely concur with you on the training initiatives and, but i constantly so much of what we try to do appear as well-intentioned the lag time to where it has an effect on immediate job growth or spurs really takes much longer than i would like. and again my tank is to the chairman. >> just a brief comment. i believe what is holding back investment is not crowding out by the federal borrowing, but lack of demand. and possibly some uncertainty, but lack of demand is the basic album. if you don't think you can sell your product you are not going to make more of it, and the way to increase demand in the short run is to get money into people's pockets that will spend it. that is the argument for extending and increasing the payroll tax cut. it goes to wage earners all over the country.

dr. rivlin. you said that your task force with senator domenici came up with some version of premium support. can you define that for us with regard to medicare. >> yes. the version that we support would say the following. seniors after a certain date will get a choice, whether they stay in ordinary fee for service medicare or they go to a new exchange on which they could choose a plan and it would be competition among health plans and the health plan would be compensated by medicare in a risk adjusted way. this isn't a voucher where you go out and shop around, but the health plan would be compensated and this is where the scoring comes in. the original amount of the subsidy for medicare would be the same whether you stay in fee-for-service or go to the exchange. it would increase at the defined rate. the rate we chose was g.d.p. plus 1%. that is a little lower than the current increase. one would hope that the competition on the exchange brought the costs down within that. if it didn't, then whe

dr. rivlin. you said that your task force with senator pete domenici had come up for some version of premium support. can you define that with regard to medicare? >> yes. on the version that we support would say the following. seniors after a certain date would get a choice whether they stay in ordinary fee-for-service medicare or go to a new exchange on which they could choose a plan and would be competition among health plans and the health plan would be compensated by medicare or risk adjusted way this is a vulture you go out and shop around. but, and this is where the scoring comes in. the zero original amount of the subsidy for medicare would be the same whether you stay in the fee-for-service or go to the exchange, but it would increase on the at a defined rate. the rate we chose was gdp plus 1% that's a little lower than the current increase fox the competition on the exchange has brought the cost down within that and if it didn't whether you were in the exchange or in the fee-for-service

dr. rivlin and dr. hold 'em comment. i generally agree with your prescriptions but one thing i am talking about is it seems even what the president has proposed there were a few things that are going to get as immediate and short-term and i completely concur with you on the training initiatives and, but i constantly so much of what we try to do appear as well-intentioned the lag time to where it has an effect on immediate job growth or spurs really takes much longer than i would like. and again my tank is to the chairman. >> just a brief comment. i believe what is holding back investment is not crowding out by the federal borrowing, but lack of demand. and possibly some uncertainty, but lack of demand is the basic album. if you don't think you can sell your product you are not going to make more of it, and the way to increase demand in the short run is to get money into people's pockets that will spend it. that is the argument for extending and increasing the payroll tax cut. it goes to wage earners all over the country.

dr. rivlin. you said that your task force with senator pete domenici had come up for some version of premium support. can you define that with regard to medicare? >> yes. on the version that we support would say the following. seniors after a certain date would get a choice whether they stay in ordinary fee-for-service medicare or go to a new exchange on which they could choose a plan and would be competition among health plans and the health plan would be compensated by medicare or risk adjusted way this is a vulture you go out and shop around. but, and this is where the scoring comes in. the zero original amount of the subsidy for medicare would be the same whether you stay in the fee-for-service or go to the exchange, but it would increase on the at a defined rate. the rate we chose was gdp plus 1% that's a little lower than the current increase fox the competition on the exchange has brought the cost down within that and if it didn't whether you were in the exchange or in the fee-for-service

dr. rivlin said in the previous panel, there's no escaping the fact that we need a balanced approach. we've got to do the revenue side, we've got to do the entitlement side, we've got to do spending cuts, the whole thing. the public can be made to understand this. the third thing is that in order to do that, everything does have to be on the table. those are message that is we can convey. we did town hall meetings everywhere, and we basically said, we've got problem, we have a long-term problem. here you are wherever it was, wherever it was, and here are five or six or eight ways to increase revenues on social security, and here are ways to really adjust benefits. we want to you figure it out and tell us what you think. people didn't go storming out of the room. they basically engaged. if we can get the public to understand the three basic points and to engage, we can sway public attitude, and that in turn will have a big effect on how congress acts. >> to answer the question first of all, i think there is a big political moment here. and in fact, congress may actually have backed int

dr. rivlin for all you've done for your country and being with us again today. dr. holser and dr. foster for joining us to share your insights. i know dr. zandy is a good man and he insisted we have a stimulus plan and demanded we have one and we got one and it didn't do what he predicted and now he says if it hadn't passed, it would have all been a disaster. i'm not unaware of the fact that dr. zandy, as capable as he is, in january of this year, predicted we would have 3.9% economic growth this year. the first quarter came in ant .4%, the second at .2, a stun regular versal of his prediction. i guess i would say, when you're running up unprecedented debt, it's easey to say, we borrow and spend and it's going to create growth, but it didn't create much growth, that's for sure. not as much as dr. sedan diand others predicted. one thing we can agree on, we're suffering from persistently high unemployment. millions are unable to find jobs, millions are unable to find jobs on a nuffle time basis and they are now working part time. our economy has experienced anemic growth this year a

dr. rivlin will speak to the first panel. senator rivlin will speak at the second panel.umber two, i would like to tell you all the work we've done to date, the bipartisan cats, the budget control act has not essentially changed the debt are you for the next 30 years that this country at all. so while the fighting is. didn't make much difference. and that brings me to the third point that i am made. this group of people by the joint select committee has an opportunity to go big. it's written into the lot that establish in our judgment and they can do the similar things if they wish to bring about really big changes in taxes and spending. it's their choice and i think only external pressure will make that choice. maya, thank you very much for everything. >> well, maya and steve, pleasure to be with you. let me say i too have just three things to say on behalf of the conference coalition. i thoroughly endorse go big. i thoroughly endorse go on. and go smart wasn't on my list, but i can accept good listener. and what i was going to say is don't go it alone. and by that, i me

dr. rivlin said on the previous panel there is no use kidding the fact that we need a balanced approach. we have to do the revenue side, we have to do the entitlement side, we have to do spending cuts, the whole thing. the public can be made to understand this. the third thing is that in order to do that everything does have to be on the table. those are messages that we can convey. and i use this as an example in my aarp days when we did town hall meetings everywhere on social security we basically said to people we have a problem, we have a long-term problem and we can't run away from it. and sure we are with five or six or eight ways to increase revenue on social security and five or six or eight ways to really adjust benefits so figure it out and tell us what you think. people didn't go storming out of the room. they were basically engaged. if we can get the public to understand the basic points and to engage, we can sway the public attitude and that will have a big effect on how the congress acts. it's been a difficult to answer the question first of all, i think there's a different

dr. rivlin will speak in the first panel.ould like to say all the work done to date has not changed the debt trajectory over the next 30 years at all. all of the fighting that you saw did not make much difference. that brings me to the third point that maya made. the joint select committee has an opportunity to go big. it is written into the law. they can do similar things if they wish to bring about a really big changes in taxes and spending. it is their choice. i think only external pressure will make them make that choice. maya, thank you very much for everything. >> i have three things to say on behalf of the concord coalition. a thoroughly endorse dole big and go long. go smart was not on my list, but i endorse that. what i was going to say was do not go it alone. some of the work the concord coalition does is give political advice to all members of congress. because of the political difficulties of these choices, do not go alone. do things like senator warner and senator chambliss did and go to explain things. do not go