then rep jeb hensarling and then martin heldstein. stay with us. "squawk box" will be right back. [ female announcer ] goodnight gluttony, a farewell long awaited. goodnight, stuffy. goodnight, outdated. goodnight old luxury and all of your wares. goodnight bygones everywhere. [ engine turns over ] good morning, illumination. good morning, innovation. good morning unequaled inspiration. [ male announcer ] the audi a8, chosen by car & driver as the best luxury sedan in a recent comparison test. >>> welcome back, everybody. as you can see, the dow futures are indicated higher, up by almost 15 points. after the dow finally pushed above 13,000 yesterday, closing at 13,005. it's a target the bulls had been running at for the last week or so. in the headlines, microsoft will unveil a test version of windows 8 today. it's the first microsoft operating system compatible with low-power microprocessors designed by amd holdings. >>> still to come, guest host allen schwartz, the former bear stearns ceo and current gugenheim executive chairman. and "squawk's" a

we are joined now by republican congressman jeb hensarling, nice to see you sir. long enough to be bitterly disappointed. i mean, i'm bitterly disappointed in two respects. number one, the president told us that at the end of his first term he would cut the deficit in half. and instead, we have our nation's first, second, third, and fourth trillion dollar deficits. second of all, there's a debt crisis, and the president's budget doesn't deal with it. and what we have again are the largest debt we've had as a percentage of our economy since world war ii. i was listening to your program earlier. you're reporting on what's happening in greece. i mean, i don't think america could turn into greece, but i don't know. they have rioting in the streets. they have homelessness that is up. suicides are up. the debt is serious. and the president doesn't deal with the drivers of the debt. even if you gave the president every single job killing tax increase he's requested, that's about 16%, maybe 17% of the new additional debt that he's putting on the backs of the american peop

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this is from jeb hensarling, a republican representative. he said, today is an indication of another failure of this president's policies. 36 months in a row with 8% plus unemployment, which is a ludicrous way of spinning it. how can you say, this is another example of a president getting things wrong on a day when, actually, the official figures, no matter how you dress them up, are positive. isn't the better thing, i suppose the more credible position for republicans to say is, i am encouraged by this, but he should have gone further? >> to me, it's more important that you admit the truth. so if i'm speaking the truth, so we might have to compare figures, but let's assume for a sec that i'm speaking the truth and the 200,000 new jobs was a net benefit. but what i'm saying is we quit counting people, we disavowed them. if i'm speaking the truth, the most important thing is we know the truth. as a matter of fact, you'll probably have a hard time -- you probably haven't heard me in a speech. i do talk about the president a little bit, mainly

listen here to congressman jeb hensarling, a member of the house republican leadership from earlier this'm bitterly disappointed in two respects. number one, the president told us at the end of his first term ef would c he would cut the deficit in half. instead we have our first, second, third, and fourth trial trillion dollar deficit. the largest debt we have had and a percentage of our economy since world war ii. >> what are republicans critical of in a lot. two main things they're focusing in on, some of which is included in the budget and some of which is not. christine, i heard you talking about it all day today, the issue about getting new revenue through tax increases, $1.5 trillion in tax increase, letting the bush tax credits expire, the warren buffett rule, the republicans have been against that that's a tax increase on people making more than $1 million and closing and eliminating some corporate tax breaks. that's included in the budget and part of what republicans are blasting. now, what's not included in the budget, republicans say the president in this budget is not tacklin

is a member of the financial services committee and our chairman of the republican conference, jeb hensarling. >> thank you, leader. we know that we continue to be in the slowest and weakest recovery in the postwar era, and one of the reasons we are, as previous speakers have pointed out, is that new business startups are at one of their lowest levels in decades. not unlike our majority whip, before coming to congress i was a small business person. and the two great challenges that i had as a small business person was access to capital and government red tape. the jobs bill addresses both of them. i certainly want to thank leader, eric cantor, for heading up this initiative, but we have to jump-start our small businesses. we know that it is the animal spirits that adam smith wrote about in 1776 that are the key to job growth in america. we want to help unleash those animal spirits to jump-start this, to help our small businesses greater access to capital, and even bernie marcus, the founder and former chairman of home depot, once said he couldn't even start home depot today. we want to make s

because paul ryan, it turns out, back before i ever got to congress, had with our good friend, jeb hensarling, been pushing an end to the automatic increases in every federal department's budget. and yet even in a republican majority before i got to congress that bill did not get passed. so the automatic increases continued even as people in the united states were struggling and nobody else has an automatic increase in their family budget every year. and the more responsible thing to -- and i discussed this with chairman paul ryan, he's struggled with this over the years while he was not chairman of the budget committee that really we should do more oversight over federal departments. how are you spending your money? but because we are required to have a budget every year, then the whole year seems to be taken up with getting that budget done and dealing with those budget issues. so he has a solution for that and that is another bill that i understand will be forthcoming from the budget committee to go to a two-year budget so we do a budget that will cover two years and that will allow congre