Transcript - I.O.U.S.A. LIVE with Warren Buffett, Pete Peterson and Dave Walker
August 21, 2008
"I.O.U.S.A. LIVE with Warren Buffett, Pete Peterson and Dave Walker"
PANEL DISCUSSION moderated by CNBC's Becky Quick
Holland Performing Arts Center, Omaha, NE
PRODUCER: GANGUZZA
Becky Quick: All right, good evening, everybody. You've seen the film. It wasn't originally, as we said, billed as a horror film. But-- as you saw right there at the-- the end-- a pretty big number that was added to the deficit right off of the top. What we'd like to do tonight is talk about everything we saw here and get to some of your questions as well. But Dave Walker, I'd like to start off with you tonight just to kick things off. We've been listening to this and we've seen this, but-- we've seen big deficits in the past. Why do you think that this time is different?
Dave Walker: Well, first, because we've had larger deficits in the economy in the past. But, frankly, they were under different circumstances. And in those cases, like at the end of World War II, we owed it to ourselves. Now, we increasing owe-- increasingly owe it to foreign lenders. And the problem is not today. The problem is where we're headed. We're headed to unprecedented new levels of debt. And that's what we need to recognize. And we need to start soon to address that.
Becky Quick: Mr. Peterson, do you think if-- if measures were taken today that this is something that could be put off entirely?
Pete Peterson: I don't think there's any question because this country has a lot of great strength that it would make a huge difference if we could avoid these problems. So-- I think the problem is at bottom not about the numbers. Left, right, and center agree on the numbers. The problem about getting the public understanding and the political will to do something about it. And this foundation is devoted entirely to the future in doing something about it.
Becky Quick: Mr. Niskanen-- this is something that the Cato Institute has been fighting for many, many years, though. We've been told in the past that if we don't do something immediately-- we will-- we're on the-- the verge of destruction. And that's something the Cato Institute's been saying for close to 30 years at this point. Why-- what do you think needs to be done right now?
William Niskanen: Well, we need to acknowledge that these problems are huge and that they have to be addressed. If they are not addressed, the amount of the debt outstanding-- including the implicit debt for Social Security and Medicare, will increase by several hundred billion dollars a year and overwhelm us. Now, briefly I think that the two types of solutions we need are-- increase the age for full retirement benefits slowly and with-- with-- with notice, with warning.
