Transcripts For CSPAN2 Key Capitol Hill Hearings 20240622

So why isnt it easier to finance these huge need for infrastructure and that someone unless countries. What is the seem to be a kind of chronic i would not useecular stagnation but the difficulty in getting the firms that actually exist to do their work. And anything and anything else you want to say. Thank you. Thank you for a very inspirational talk. I do think you know, when the music changes and you have a different dance i have different dances that come out of this dance around infrastructure spending. The reserve has shown that we had a long time for the public capitol stock essentially infrastructure has come down as a percent of gdp in low income countries, Something Like 40 percentage points, 20 25 years . So it is not a shortterm phenomenon that Infrastructure Investment i think it has been a longterm phenomena. We have tried to rely for a long time on the private sector, private business to deliver the infrastructure and i think now what we are realizing what is really important to have this as a agenda item is that infrastructure in developing countries has to have both affordability and low carbon sustainability built into it right now. And those and those are two things that pure private sector Infrastructure Investment wont necessarily do so there has to be a blending and combination if we want to get infrastructure really moving there there are all kinds of reasons people have talked about why is difficult different types of capital are not exactly the same. Savings available in the investment needs. Lets put them together because you need a different type of capital for project preparation of the different type of capital for the construction, different type of capital for the operations. All of those have to be blended, i think, in a much more innovative way than what we have done so far. You know, in a way way, to be honest we dont have even models in rich countries about how to do that well. Rich countries well. Rich countries are finding it difficult to keep their infrastructure up to standard. So you know, this is an area which i think it really does really does need to be developed. It will take some time. Lots of exciting new ideas are out there. One of the things that i i think we must recognize on infrastructure is that even though the private sector will contribute it is still the case that most Infrastructure Projects are debtfinanced. Some inevitably if you want to go in a major way into Infrastructure Investment there will be a build up of debt. If people are scared of debt and so i was actually very heartened to hear that neither new tools that have been developed to actually think from a micro perspective about one of the real benefits of public investment, to be able to weed out the inefficient and you know, know, infrastructures command there have been plenty of those that do not do anything to the bottom line on merit growth and to be much more, you know finegrained about understanding where we could have inclusive, sustainable infrastructure and where it is just going to be you emphasize the efficiency. It efficiency. It is also an issue of income statements. If you are spending and thereby straightening your Balance Sheet you can be okay. I am not sure straight Balance Sheets and income statements are aligned and recalled the same fashion. If it was the same accounting principle the private sector would be a lot easier. The rate would not be accounted the same way. Im just guessing. Not giving an interview here. Efficiency, aside from the accounting principles i think the efficiency also comes if i may want to affordability, sustainability. Efficiency affordability, sustainability. Efficiency has to be part of it as well. There many countries, many projects we have studied is a a very large margin of efficiency. Very rapidly. And its everything. He did make another. The papers in the country its about drm private sector businesses, doing the design of all those things. But reminds us as you see an enormous amount of private investment in the charts, it does not mean that every dollar of private investment is the same as every dollar, the same as every dollar of a or anything else, and it is worth remembering if we we go to the poorer countries, social services generosity real generosity remains absolutely vital. Quickly. Clicks your. About looking more closely at Investment Management two quick questions, is it a critique of the barriers of the world bank to do that . And visit linkedin that way to whatever you might have from the imf because the issue that is on the outlines the recapitalization but not just the new Infrastructure Bank but recapitalization in the future of the old . Well, first of all, maybe that is an aside. Maybe. Im not sure that i understand the question. Need more capitol. You know, my first thought was no in my second is yes. Quick so we should take two or three. I know were almost out of time completely, but we still want to take two or three audience questions. So i will first the lady there. But please, it has has to be a question command quick. No one statements. All right. That is what you do. Mexico. [speaking in native tongue] [speaking in native tongue] [speaking in native tongue] okay. Very quickly for everyone else. As an american originally from the democratic republic of the congo you would like to know how you can participate in the program and be an active member. All. All i can say is that please give me the file. I have a team here in the front row will be able to take it. If you can participate from Civil Society and programs we will be very happy to reach out to. Thank you. Thank you. Clicks great. Clicks next person please. All right. This gentleman there. Yes. Identify and in your question. Clicks former imf. Managing director, thank you very much for sharing your agenda and vision for an improved Sustainable Growth the conclusion prospects. In this regard this current context of low growth my debt and Financial Market volatility make policy petition challenging to say the least even with the imfs new vision. You touched upon the article four assessment. In this regard i see that basically the process of global adjustment of payments imbalances has remained quite disorderly. This is certainly not helping the process of structural reform and adjustment and even ample financing in these conditions is likely to be insufficient. Are you satisfied with the efficacy of the funds surveillance effort . If not, what can be done to improve it . And hear only one example. The european context. We have major countries that continue to exhibit high current account surpluses in excess of eight and 10 percent of gdp. Is this something that worries you . Can something be done . Is asymmetry asymmetry it . Thank you. Okay. Okay. We have to be a little quicker. The gentleman that the glasses. Johns hopkins. Two quick questions. To what extent do you think the failure of the Great Program we talked about with the imf right now, to what essence is that undermined the imf credibility in developing countries and potentially finding alternatives to support themselves and to what extent does the fund report responsible for a result of the elections . According to many the publication of the report sustainability supported because it was politicized by the government. Thank you. We really should stick to the topic. I should add. They always argued that there should be a reorganization. Please stick to the topic. Gracious enough. We could stay here another two hours. I hours. I would be excited about it but not today. People in the audience might advocate for that. Making international news, quick question on ukraine. Some have accused the imf of giving preferential treatment to ukrainian debt. Is it the case that that countries is viewed by the fund has essentially to geopolitically big to fail . Thank you. And maybe one last of the land. Yes. Such enthusiasm that there was no way. Thank you so much. The energy division. Madame, he mentioned macro stability of one of the important. Important. My question is regarding fiscal spending and developing countries. Often times very procyclical how do you envision the imf helping committee working together with the world bank and strengthening institutions that are inherently political to make sure that spending is less cyclical and more strategic and more focused on longterm . I think that is it for today. Christine. I am going to focus on the last question. It is clearly pointed. I very strongly believe. I dont want to represent the pres. s view. He is big enough to do that by himself. I think he shares my view. We have to cooperate and to cooperate on the ground and we will have an announcement to make on friday actually in that respect. In order to help countries in the developing world with a special focus on the french iles past conflict apply fiscal policies that will be conducive to growth. We cannot we can do that in two different ways. Other we have a program of the country and in that case we can help designing Work Together to mother or there is no program because the country is not needed. At least we can give policy advice that makes recommendations in that direction. We can certainly work in close cooperation with the bank in other countries. I look forward to continuing to do that and amplifying that cooperation. You will be able to demonstrate. On the other topic clearly unrelated to the particular matter of interest to the audience, but i will just make one point because it is a misunderstanding i would like to clarify. The recently published sustainability analysis is that the debt sustainability analysis on two pages was put on the public website which the greek citizens consulted in order to determine their position. Given that this was produced by the European Institution for those of you who have known the imf will have read the sustainability analysis, it has nothing to do the typical work that we do in such circumstances. We thought it would be honest and transparent to also publish our so that everyone could have access to it. I can assure you that it has been used by one side and by the other side equal talent and success, and we are very proud of the analysis which is not the funniest document in the world being so explosive on both sides. Done wonders for economics. Anyway, thank you. We have so many things. Of course we could continue to discuss, but i do really salute the fact that the imf and you personally a behind the conference. This remains a huge priority to the world community. There will be Something Like 4 billion africans by the middle of the century. There are huge there are huge needs and the fact that organization like the imf has extended its analysis and its ambition from stability and growth and stable framework to inclusive growth to Institutional Development to the issue of gender and women who i think this is something we should really be happy about. I do hope my have to add that when the imf actually goes to the country all of this remains a priority and does not somehow disappear into a concluding footnote. Thank you very much and please be seated while madame lingard x. I have the feeling that the rain has stopped. Okay. [applauding] really really good. [inaudible conversations] on the next washington journal thought republican congressman on efforts to reform the no child left behind act and other education issues before congress. Then democrat Loretta Sanchez on the us strategy against isys in iraq and syria. Norcross of george mason universities with the results of their report ranking the physical condition or State Government. Of State Government. Washington journal live each morning at 7 00 a. M. Eastern. Thursday house ways and means chair paul ryan discusses the us economy and tax policy at an event hosted by politico live at 8 00 a. M. Eastern here on cspan2. This week on first ladies, influence and ladies influence and image, Lucretia Garfield and Mary Arthur Mcelroy. An educated woman in the believer in womans rights husband was assassinated. She returned to ohio and insureds legacy by making their home into an early version of the president ial library. Chester arthur a widower becomes president , and his sister, mary sister Mary Arthur Mcelroy fills the role first lady and establishes white house social etiquette used by future first ladies for decades. Lucretia garfield Mary Arthur Mcelroy this sunday night at eight pm eastern on cspan2 original series first ladies, influence and image amazing thing the women who fill the position and their influence on the presidency from Martha Washington to Michelle Obama sundays at 8 00 p. M. Eastern American History tv on cspan2. Next from chicago florida senator and republican president ial candidate marco rubio talk about Economic Policy and the use of technology to foster job creation. He takes questions he takes questions about immigration, healthcare, and the National Debt. This took place at 1871 and entrepreneurial hub for digital startups. [applauding] quakes thank you. Thank you very much. Thank you for hosting us here today and being a part of it. I want to begin by pointing out the fact that it has been 15 and a half years since the 21st century ended. And it was a century in which our nation overcome depression the world against evil multiple times, and times, and recorded some of the greatest advancements in human history. Airplanes in the sky blueprints on the moon. The worlds knowledge first brought online. All of this was possible because we built with no civilization had never bill before a vibrant, stable, broad and accessible middleclass through which are people drove the affairs of the world. My world. My parents were to immigrants . Formal education reach the middle class and did so through humble jobs. First as an an Assembly Plant for launchers and in my mother went to work as a cashier, made and finally a stock clerk at kmart. My father kmart. My father was primarily a bartender for a hotel group. They never they never get rich. But my parents achieve the American Dream because through these modest jobs they reached Financial Security raised a family in a safe neighborhood provided for our needs and love their children with lives better than their own. More people achieve this American Dream in america and the 20 century that any other time in any other place in human history. Today many jobs like the ones my parents held no longer provide a viable path their jobs assembly launchers or even the cashier, mother held had likely been replaced by machines. Other similar positions have been outsourced or did the same wage for a decade or more. Most of those impacted like the qualifications to move in into better paying positions, the Higher Education they needed a question much time away from work. The result is that the path the middle class is narrower today than it has been for generations. The American Dream so many achieved in the last century is now in peril. This hardship it is not the result of an economic downturn and we will naturally correct itself. It is born of a fundamental transformation of the very nature of our economy the disruptions of which have been prolonged and compounded by the failure of our leader policies, and institutions to transform. There. There are two primary forces behind this transformation. The first is radical technological growth including the development of the internet and Information Information Technology for wireless mobile capabilities, robotics and more. The second has risen partly from the first and that is globalization. From where you sit you can sell a a product to someone on the other side of the world almost as easy as to the person on your left or right. This is pulled us in the competition with dozens of other nations for business jobs talent, and innovation over the last two decades not a single industry has been untouched by these forces. The disruptions have triggered a cascade of anxieties. Fewer fewer americans believe in the viability of the American Dream today and during the worst of the financial crisis 2,009. Many pundits and Media Outlets painted jury picture in which automation and outsourcing continue to shower the American Dream. But history is not silent on the subject. Tells us subject. Tells us the future is swayed by the actions we take. Generations of americans before faced equally disruptive transformation. For example, and the Industrial Revolution machines automated the tasks people have built their lives around. Like today the beginning and jobs are lost always were static and new wealth was concentrated at the top. Doubts and fears about the future widespread that something changed. But how children learn about the Industrial Revolution today new line it was a. Of progress. Yes, jobs were lost, but even more gained. Middleclass. Middleclass expanded thrived, and laid the cornerstone of the American Century. How did that generation overcome the challenges . It was not through resistance pushing back against new technology to resurrect all jobs. Mr. Adaptation. Business integrating new technologies coworkers learning new skills and leaders meeting in a new direction. Todays technological revolution carries extraordinary charity. Opportunity. Even more than the Industrial Revolution did but we have not yet seen these opportunity nor is it guarantee that we will. Whether we do or do not depends on the actions we take for the leaders we choose and therefore adopt. For the first 15 and a half years of the century for the first 15 and a half years of the century washington is much to the past. Our our economy has changed but our economic policies of not. We we have learned painfully that the always no longer work for the washington cannot pretend that the world is the same as it was in the 1980s and cannot raise taxes like it did in the 90s and it cannot grow government like it did in the 2,000. The race for the future will never be won by going backwards. One of backwards. One of the one by hopping on hillary plans time machine. She seems she seems to believe, as many do that pumping more if it of todays money into yesterdays programs and prosperity. It will not. All thinking small hiking the minimum wage by a few dollars, save the American Dream but it will accelerate automation and outsourcing. Increasing taxes and increasing taxes and regulations will promote fairness opportunity for help balance our budget but it will snuff out innovation occur small business. We need in this country a new president for new age with original ideas to unlock the two great doors of the future the doors of innovation in the door of education. Only through an innovative economy can we translate new technology and a new middleclass jobs command only through revolutionized Higher Education system can we equip all of us to fill these new and better paying jobs. Prosperity and our time is likely if we have to embrace the future. We have opportunities that have never existed before had a chance to seize the will never existed in. I come before you today to discuss my ideas to spur American Innovation award to ensure that the rise of the machines will not be the fall and to create a new American Century propelled by a revitalized American Dream capture. We know this much for certain the decades ahead innovation will transform the world. Cars missing drive themselves which is good news for me if you read some of the newspaper articles. [applauding] are they going to give the red light camera to . Virtual reality virtualreality, nanotechnology, robotics and more practice in ways we cant yet imagine. Our devices will grow more powerful, bring new capabilities to the masses. The question is not whether in addition to coming but whether america will develop our people will share the wealth that they will create to build the most innovation friendly economy in the world was build the most business friendly economy in the world. Right now we have quite nearly the exact opposite. The United States has the the highest Corporate Tax rate in the developing world tax code that punishes American Companies are competing in the Global Economy and the regulatory system that prevents profits the primary engines of innovation and job creation competing against established players. A result of this approach, for the first time in 35 years we have more business being born. In the First Quarter of this year our economy shrank for the First Time Since our recovery began command over the last decade the United States has lost 179 billion worth of domestic and foreign takeovers. When takeovers. When i am president i will empower innovators rather than punishment to cut out Corporate Tax rates to be competitive with the average of 25 percent. If we had done this ten years ago that of losing hundred 79 billion worth of American Business we would have required 590 billion worth of foreign. I will also establish the territory. When American Company earns money overseas is taxed in that country in the country that they hundred and then again this brought back its brought back to america. We are the only g8 country that levies the second tax the understandable impact is that Many Companies choose never to bring the money back home. I was audience of 1 million to the overseas my tax plan will allow 100 percent expenses. This means this means that the more a Company Invests the less they on taxes. I will put a ceiling on the amount that us regulation and what they can cost our economy. Just. Just as the year 2008 federal regulation have cost 771 billion. Many. Many a result of an alliance between victims and Big Government. Hillary clinton has argued the economy is rigged. She is right. What what she will say is Big Government is the rigor. The instrument of those with lawyers and profits necessary to influence. Just two months ago i propose a bipartisan plan to modernize which has long been a leading source of interest energy, technology currently much of this research it strapped. Partner with the private industry and recognize the industry that need special protection the 21st century. In its short life the internet one of humanitys greatest treasures which is why a blind mans of our people, not our government. I have reinforced and freedom will continue to fight. I lead a coalition Regulatory Power to the International Telecommunication will advance a comprehensive wireless fun to expand unlicensed spectrum the highway of the digital age. The amount made available to the public and the result is present i will reallocate could create estimated 350,000 jobs were 500 mhz. Finally, to limit the competition for innovation we must win the global competition which requires reforming Legal Immigration to make it skill and merit rather than simply family which will protect American Workers and also attract more talent to grow our economy and to create jobs. Innovation is the first. But even once we pass through it the second door remained shut. Innovation will create millionaires and billionaires are we must ensure a vibrant middle class, and i class, and that can only be done through modernization of Higher Education. As our Technological Capabilities grow, it is true that we will see more lowpaying jobs but that is only part of the story. With the innovation economy i just described we will also be the creation of higher bank wire skill jobs and history for example when the power loom was invented that he feared it would eliminate all textile jobs. The the truth turned out to be opposite. Deliver increased production, and as production increased sudden demand command as demand increased so to the need for skilled laborers to operate the machine and manage the factory. Jobs in the textile industry actually increased the 100 years thereafter. But these jobs did not immediately lead to higher wages. Before that could happen workers need to learn marketable skills that could be standardized. Only then could the methods learned in one factory become useful in another which increased the need for experienced labor and give workers leverage to demand higher wage. Lesson of history that is to empower todays workers with mystical, todays skills. To do that we need a Higher Education to innovate at the same rate as our economy. In the next ten years 3. 5 Million Manufacturing plus child be created. If a Higher Education system remained stagnant too many of these jobs left unfilled. The same skills gap. Nearly one out of every american employer reports having difficulty finding skilled workers. Yet we still taught students that they have to spend four years on the campus tens of thousands of dollars in tuition and books and runs aboard and hundreds of hours of classroom often learning subjects that are not relevant. The result being that he had graduated with a mountain of debt and agrees that will not lead to jobs and mediate Higher Education such as Single Parents and working adults are left with few options that fit the schedule and budget. The problems of Higher Education are many of the ideas Hillary Clinton and other leaders are narrow and shortsighted. We do not need to make tweaks but a holistic overall. How much and how those costs are paid and how those payments are determined. I will begin with a possible support for. Higher Education Today is controlled by what amounts to a cartel which is the power over the Accreditation Process block innovative lowcost entering the marketplace. Within my first hundred days will establish new accreditation. Exposing Higher Education Market Forces of choice and competition prompting driven by the needs. Other reforms can hasten the transition. Empower students to choose the right degree at the right price from the right institutions. I propose idea called the students right to know which requires an institution to tell students how much i can expect to earn when they earn a degree before they take a full and pay for. Make student make Student Loans more manageable for making income base Automatic Program so that the more they make the best of it. New line. Those that make the list is cost. I will reduce the risk associated. For future students we can create alternative that avoids the problem of debt. I i propose an idea student investment which the students partner with investors would pay the tuition in return for a percentage a percentage of earnings for a few years after graduation which may result in a profit for the investor or may not. But none of the risk lies with the student. Student. As president i will make career Vocational Education more widespread and accessible which can begin as early as high school so that we can graduate students just a High School Diploma but with a certificate work as a mechanic, former welder electrician, a number of paying occupations and expand apprenticeship programs which can provide onthejob training and help standardize skills by allowing students to learn from experienced workers. This is not an exhaustive list of ideas that i i have seen how they can begin to open doors. In miami. Miami passing High School Students graduate certified to begin highpaying careers i have no single mothers with hardearned degrees for themselves and their children and have seen Higher Education shape my own life both in terms of the enormous cost and the enormous payoff. My innovation in Higher Education agenda forms only a segment. The whole vision is based on a simple concept new opportunities. The future must be embraced with enthusiasm and vision. The 19th century generation of americans did exactly that facing challenges similar to ours. Stakes are just as i. If we fail to capture will be the first generation to leave the weaker america behind. But if we succeed will lay later cornerstone for a new america not just recovering the gaining ground for missing the creation of higher pain, more paying, more fulfilling for more exciting jobs and for. There are those that have always been those who say prosperity is impossible. It seemed that all you have to do to become a bestselling author was write a book about a post american world. Many come from people who rarely leave washington. The city is always see. I say to them water can square off the ground as the most innovative in the world they can peer through the Looking Glass a remarkable revolutionary future. Love it go to Florida Space coast. See how the partnership has been new adventure and achievement in discovery within reach of humankind and now an American Flag on mars has turned from an impossible pie. Join achievable American Dream. Go to reno, nevada. See the 1. 2 million distribution warehouse for the 5 billion factory being constructed by tesla for panasonic which will transform the automobile and create as many as 9000 good paying jobs. Good new hampshire. Visit Southern New Hampshire university which is consistently named one of the most innovative organizations in the world. On the list for how it pushes against the odds and naysayers. And come to chicago visit 1871 this facility serves as an incubator providing entrepreneurs mentorships with training, programming, and education for potential investors in the community of fellow dreamers dedicated pulling america into a new age. These examples are not outliers but a pattern. Anyone who sees these will understand that nothing is changed. Billionaires of the American Century. In our in our veins with the blood of minimum refused to accept the burdens of the past are resigned to the always doing old way of doing things. Just as we pay respect so the burden of our time be written by those who have not yet been born. In in the early years of the century we turned the corner on the past elected new leaders, adopted policies policies that encourage americans to invest manufacture, so and designed the Higher Expectations that were lower middle class to perform the great work and reap the great reward it is adventure and is dangerous decision that is always on the make. They have lingered long enough and i invite you to step forward. Thank you. [applauding] quakes thank you clicks before we get started i know you of your miami dolphins, but i want to remind you that you are in the dome of the defending stanley cup champions. [applauding] quakes there we go. They are there are not a lot of ruby is in the nhl. They dont play hockey in cuba. Thank you. Clicks as the president of the interviews will be. Clicks welcome to chicago. Thank you for being here. Lets start by talking about the economy more broadly. The stock market is high unemployment is down. And get what is interesting a lot of the traditional markers have not held as they once did. The Unemployment Rate the problem is a lot of the people that are employed are underemployed earning wages that have not kept up with the cost of living. A graphic example of that and 31 states in this country child care is more expensive and going to college. You are employed, but 250 is going to childcare. Thats a huge chunk of your budget, an example. Millions of people have dropped out of searching for work, given up, become demoralized, working parttime different jobs. And then of course the nature of the economy is such that there are a lot of people that wont work of one company for 25 years. You are jumping in and out of liverpool depending on these factors. In the result is that the Unemployment Rate no longer means what it once did especially when you take into account the labor rate is as low as it has been in 30 years. And then you add to that wages that have been stagnant for two decades while the cost of living has rapidly increased. The only way you will close that gap is to the things i i discussed, the innovation necessary to create better paying jobs and helping people acquire the skills they need. It has led people to talk of income inequality. The top 1 percent getting richer. What is the biggest of the things you outlined what is the single biggest thing that you would do upon taking office that would help sort of correct that . Clicks and, the quality is symptom a broader problem always opportunity and equality. Income inequality for a couple reasons, but the primary one is the higher paying jobs of the 21st 21st century the careers that are economically fulfilling just pay a lot more money than similar careers in the 20th. If you are not in one of those fields are industries that you are stagnant and the result is that gap. It really is not one thing you can do. There are two. You have to make america the best place in the world to create jobs that pay more and give our people the skills they need. I i always tell my parents story because they literature during a time and i grew up during a time where a bartender and made can make enough money to afford homeownership, raise a family and retire with dignity. Jobs like that simply dont pay enough anymore because they cost more and jobs have not kept pace. My dad wouldve had to become an electrician mother wouldve had to become a dental hygienist or paralegal which requires Higher Education which many people have no access to because they have to work fulltime and raise a family they can drop everything. Thats what we have to do two things pick up the it the best and easiest place to require the skills you need and you have to do both. Greases in the news. How much of an economic drag is 18 trillion National Debt command what do you it is significant. Significant. More debt is being sold, the more capitol is being dedicated to debt and the less is available to investment in the private sector the creates the specter of the debt crisis and the debt crisis is not a good thing for country trying to grow. And if nothing and if nothing changes, if we continue doing things the way we are now at some time we will have a a debt crisis. We have an insulated up to now. Eventually investors will insist on a higher yield the mire interest rates, higher returns on their loan you money. When that happens the Interest Payment alone we will trigger the debt crisis and the result will be catastrophic for the most important economy in the world. The only way the only way to fix the National Debt is through a combination of dynamic Economic Growth the things i just outlined and by reforming Social Security and medicare. I want to reform those programs without making any changes people like my mother on Social Security security, medicare. I want those programs to stay the way they are for her and people who are already retired or about to retire which will require the acceptance that Social Security and medicare will be different. It will work differently. We will retire you later. Benefits when i grow as fast our medicare plans may involve choices in the private market. Thats the only way less than 1 percent. In need of reform with the driver of our debt very Important Program to spend more money than they taken and will continue to do so at an increasing rate. The Affordable Care act constitutional for republicans almost republicans say repeal and replace. We have an issue that needs to be confronted. Millions of americans are put into a government mandated plan. It had to do two things to make copayments i ended up inside. What you now have our individuals insured under one Exchange Plan going into an emergency room or doctor in getting a bill which to be as high as two three, 4,000. And they simply dont have the money. As a result the provider is also not getting paid see have insurance plans that are not only expensive but does not have a number of providers and give you the choices you need because your dr. Knows if it cant collect the copayment or the deductible they are going to get paid. Something more providers dont want to participate. You have insurance or the premium is subsidized the of a high deductible, i copayment and a limited number of doctors and hospitals and especially specialists to choose from. A better approach would be to say in the 21st century every american will be in charge of their own health insurance. Every american will be given the option need opportunity to Purchase Health insurance for many company and many state america and given a chance to purchase the kind of insurance you want. That may be Health Savings account. Others may require more comprehensive care. You empower the consumer and the private sector will create plans and compete for your business on the basis of price and quality. The way you see an auto insurance. It is not a perfect analogy, but you cant turn on the tv without five or six commercials from Liberty Mutual uncredentialed. State farm. Your employer. Companies know you are in charge. They will target and market to you on the basis of quality. As a better approach than what we have now. You mentioned immigration reform. I thought i heard you say it was to protect American Workers. Immigration puts down pressure on wages . It protects American Workers if you go toward a meritbased system. And people think of that as a high skilled worker. But the evidence shows when youre able you are able to attract the world best talent that creates jobs because it makes companies more productive and allows in the opening lines of business and expand existing lines of business and that creates jobs for people. Thats thats why i think the meritbased system of education and edge of immigration is what we need. We are engaged in a a global competition, not just for investment renovation. For engaged in a global competition for talent. The Higher Education system that allows us to attract the best in the world largely built on whether or not clicks i want to ask you about Cyber Security we heard about the office of personal management 12 or 14 million files stolen. Seeing this more more. A lot of a lot of people say it is the biggest threat. What is your take on that . I think it i think it is important for government to become infused. Today it is not. Multiple agencies. Sadly, sometimes three generations are out of step with the latest practices. I think it is important for government to become infused with the best practice and to have some unitary standard that all agencies after comply with because ultimately if you can hack in the data files of one agency that gives you backdoor access to multiple other agencies. Its important that we pass the Cyber Security bill that gives the private sector the conference to collaborate and share information without being exposed to lawsuits are government interference because this is an ongoing threat involving as quickly as the solutions are. You, but the solution and five new potential threats of been created they have to confront. You need more collaboration. There is no such thing as Government Technology sector in the private technology sector. They are all interwoven. A a government breach can lead to a private sector breach. Its important to pass Cyber Security legislation that allows her to be more safe harbor collaboration between the private sector. As you look at the landscape, who is our biggest economic challenge . I i dont know about overtaking america. Our biggest threat is america. We are the biggest threat to ourselves. Great news about the 21st century, its not a zerosum game. For us to prosper does not mean someone else has to be worse off especially in a globalized economy where prosperity could lead to prosperity somewhere else and vice versa. Whether its in our own domestic economy will world at large. That is one of the most promising things. Technology has flattened information. Something that is innovative to be shared within seconds someone halfway around the world. Knowledge is become a shared commodity. That being said, there are other nations that would like to replace us on the global stage. China has that ambition their does anyway. The people dont necessarily share that view. I do think that in many respects how america and china and drive with one another will be the single biggest geopolitical story determining much of what else happens. Russia has significant domestic problems. The the gdp is only 2 trillion. They are learning that the i. R. A. Is in places around this country. You also mentioned State Government but it is interesting there is the populist strain among the left and the right with Purdy Sanders and occupy wall street but i like the teapartier look of crony capitalism Big Government against mays treaty and the average guy. First of all, it goes back that the more government controls the economy so i tell a story in my book paihua teach a course of Florida University and had a course that debris had heard of it before they were upset with they could not get it they did not understand why. The recent you cannot use uber if miami they have convinced county government to not offer it to their service so they created a monopoly. See you can have a the crowd out the competitor is the space and i made that connection if you have to establish industries that create rules and regulations only they can comply with. After dodd frank big banks have consolidated until they are bigger than ever. Embedded if Blockbuster Video were able to convince the federal government to read to a movie in person at a retail facility to show the identification that we want to prevent kids from seeing the rated r movies. I have to come to the store that would have been the argument that we never would have had netflix or a third down loading services. It sounds farfetched but this is the sort of thing that you see. To limit the amount of competition. From here you are headed straight to iowa. Would you hearing on the trail . But if isis be heads another 20 people. And then china build silence of the south side is the. See but nobody has figured out the new way to do things. So to explain why the old way no longer works i think that is what is embedded they you read into young people go to college or get a degree now theyre working so where they could have worked without the 50,000 they dont know if they can buy a a home or start a career people are working at the same job as they did ted years ago but they made money now is paycheck to paycheck. That is the anxiety so they are not explaining why that is happening. We could have hot one more question. This race is remarkable is wideopen with 16 candidates on the republican side and a big debate coming up soon. What is it like to be in this moment in this race . I have nothing to compare it to having not run for president before but it is a new age. It used to be the you have a Big Organization access to billions of dollars up front but now there are so many ways to communicate that many cost very little money that anybody could launch a campaign. But the other thing is it is an Incredible Opportunity to have a vibrant debate about our future and the fact what were facing today is not normal ups and downs but a massive ongoing restructuring of every aspect of our lives and we either adjust or we will be left behind. So i talk about using the campaign as a platform to have conversations hopefully guiding us in the new america as president. [applause] [inaudible conversations] take a look at where peoples eyeballs are going. They would focus on television so political advertising was heavily focused on advertisements but technology has changed so now what into a river of 60 yearold they are looking at their phone. The function or those of the political world och to understand what advertising will look like candy crash me be fading popularity but there is only something you popping up but finding ways to get your message in front of people that is what is important [inaudible conversations] [inaudible conversations] is still neck we will lead to date the is the love we deal will allow us to receive the witness is. [laughter] we will receive testimony on u. S. Strategy of the Islamic State of iraq. I am grateful to our witnesses for appearing today the threat of isil is seen within what the Foreign Policy experts have described as the most complex and Uncertain International environment since the end of world war ii. All across the globe americas interest and security and stability is at risk as part of a broader strategy to dominate eastern europe, of Vladimir Putin continues the onslaught in ukraine, Russian Troops leading the asymmetric campaign to undermine the ukraine government as United States has refused the ukrainian rapine and weapons for defense. China has destabilizing behavior poses a growing challenge to with the National Interest with the vast land in the South China Sea with of buildup in the course then the undeterred cyberattacks against United States. It did in the hegemonic conditions to see elsewhere but yet to operate that the Nuclear Agreement with the islamic republic. And the single greatest courage to reader to a rise of continued success as it goes on and on and on. By russia and iran and hezbollah. Is part of the political transition in syria but they have never allow that and tragically thats remains true today as a failure of deterrence bottom bay dangerous perception of america weakness and lack of resolve as a provocative meditation for hostility when it comes to isil of the president s comments yesterday reveal a history degree of self delusion that characterizes the administrations thinking. Ultimately bear it relevant 2. 0 we have conducted thousands of air strikes to push it out of some territory and of the progress it just we are on a path to success. Says the Coalition Air straits air strikes began to deal with the battlefield success including take the were mahdi and other trade in iraq. To control every border post between iraq and syria. The more potent the message to those around though growth who may be radicalized to spread violence and mayhem on its behalf. It isnt that were doing nothing but there is no compelling reason to believe in anything we are doing currently would be sufficient to achieve the goal to do degrade and ultimately destroy isil in the short term or long term. That suggest you are not winning and not losing. Then bought expanding the of the ones across the middle east there it is no force iraq or syria willing unable to take territory away from isil in a poll that none of the Current Training efforts of Iraqi Security forces or sunii key and produce such debt ground force and it isnt clear by the light latest escalation of the advisers to a anbar will make a difference as previous efforts fail to achieve. With the air Campaign Continues to be of limited significantly by restrictive rules of engagement that only gets worse as it moved into urban areas to avoid coalition bombing. Theyre only good is the targets they received but then they still return to base without dropping weapons it is indicative of a fundamental problem of the air campaign. What is worse the and can succeed if it continues and if the continued growth with the radicalization as published media reports indicate it is a the began struggling but going after the forces with the enabling capabilities to succeed in any in engagement they may face inside syria. Their doubtful we can achieve our goal but even if it does with the strategic differences on the battlefield. But no such solution is possible with russia and power and until the evidence states leads a Coalition Effort a political solution is never within reach and isil will thrive. The lack of bay coherent strategy from libya Egypt Nigeria and through afghanistan were a was last weekend. It certainly is not iraq but the parallels are familiar. The United States is contemplating a drastic reduction that places arabesque so while they are improving in quality they still miss the same capabilities the iraqis were missing when the u. S. Withdrew 2011 with a special operations that the current pace our military commanders knew these capabilities will remain undeveloped at the end of 2016 when president obama has announced Coalition Forces will dramatically downsize to a presence so the in kabul. We have seen this before and if we make the same mistakes we should expect similar tragic results provided not want to attend another hearing like this with successors to figure out a strategy to clean up after avoidable mistakes that means you must provide commanders on the ground with those capabilities to help the afghan partners to seek your the terrorist enemies together isil is not 10 feet tall but that will never happen if we do leader sells about the Current Campaign the president is on end of the truism there is no military solution to isil or any other probably he has failed to realize sometimes there is the Major Military dimension to achieve a political solution this is the lesson they learned since the iraq search that security on the ground is the precondition of political reconciliation. Not the other way around the president elected in opposition to the war in iraq is repeating some of the worst strategic mistakes despite obvious indication that the current strategy eakins isil is failing, is yet to find the courage of the predecessor to of mistakes to choose a new direction in this needs to happen sooner rather than later or the disaster the next president will inherit and far beyond will be overwhelming clearly were living in a time of unprecedented turmoil reseal it on our Television Screens every day with chinas maritime expansion and once again i think the witnesses him look forward to their testimony. Senator . They kyushus secretary carter and mr. Dempsey it is an important opportunity to hear from the administration regarding the strategy to counter isil it follows upon the committees hearings and made that outside witnesses were trying to counter the strategy with its violent ideology pose a clear threat to the stability of the middle east africa and beyond for those reasons in the homeland. To attract foreign fighters to inspire others the American People recognize that a threat that they are appropriately wary to be into a deeper middle east conflict. But the department of defense has the effort against isil to support a supporting role of other agencies. This committee has provided a central resource to implement the strategy with the overseas Contingency Operations fund including the president s request of the Counterterrorism Partnership fund. Those cuts mandated by sequestration including the state department department, development of the Treasury Department to carry out to counter the strategy. U. S. Government could fight a bitter the with one hand tied behind its back the success depends on the gate of the military departments the necessary resources to confront isil for but this Committee Hearing in response to read body ramadi the will begin to address the critical need. To expand their presence to see that pest america cannot help isil in the fight. The of those two intersecting forces isil and the deterioration of the iraqi forces many factors can be traced to the occupation of iraq daily into account for this deepseated regions that gave rise to grievances in many of those of the iraqs Security Forces can be traced to Prime Minister of maliki with the cronies loyal to himself. Those are at the behest of iran with their acquiescence in the influence knbc in even prior to of a dinner shah Prime Minister of a dinner shah. But today it will continue to support to assess carefully the strategic level as we werent with the threat of isil as we reshape policies and strategies ultimately one of the key lessons from the iraq war disputes on the ground with the underlying Political Forces to at a rise and thrive they must take simpson to the staffs with longstanding grievances to expand integration to disarm these shechem militia. But isil remains a critical al said assistance but has ceded territory in recent months. Despite these russians of a debate on the battlefield us solution in the constituencies is the pathway to a sustainable solution is they said the Coalition Forces are at a multiyear campaign to stress patients to help they get perspective for me are in the long fight in what to expect in the coming months and years ahead in an accord your testimony. I welcome the witnesses. Secretary carter. The key for the opportunity to come before you to address your questions and concerns about the campaign and i especially want to thank the chair man to go to afghanistan over his fourth of july weekend and that means a lot to us. And as you know, from your travels, there is a high demand everywhere in the world for American Leadership i shut asia or europe the Obamacare Administration and members of this Committee Help to ensure. Standing by a to require a Nuclear Weapon to also talk about isil. The meeting of the pentagon where obama and dempsey and i discussed the Counter Campaign with the interagency leaders. We all agree it represents a of a grave threat and it will be dealt a lasting defeat. That is shared by Global Coalitions with a rolled wide consensus to counter isil and the requirement the administrations strategy to woo achieve that objective to integrate the instruments of power of the political one that has been led by the state department. Of the multi sectarian governance in iraq. At the same time United States continues to work diplomatically with the political transition to a more inclusive government with which we can and for her ijssel isil also to deny safe haven and bill carter capacity in iraq and syria. Both are led by the department of defense that alongside Coalition Partners is conducting a campaign advising and assisting Iraqi Security forces on the ground with though local forces in iraq and syria. Before i so the efforts have to be in sync but what were working through with our partners around the ground the fourth line of the effort is a tsa a Counterterrorism Center to disrupt the finances is colead by the treasury and state. With a national Counterterrorism Center is the of messaging to disrupt the flow of foreign fighters to and from isil. Both are critical the eighth line of effort by the conflicts of iraq from the state to hand aig. The fbi and department there justice Work Together to protect the homeland by disrupting terrorist threats is an addition to the relationship with department of Homeland Security am lawenforcement the dod personnel continue to strike isil elements in iraq and security the effective execution with the classified dimensions that we can discuss several even not at this meeting that the personal with the fighting forced the world has ever known with the Coalition Partners have conducted over 5,000 airstrikes that has clear tactical results to constrain the ability and talent degrading commandandcontrol. Coalition support has local forces in iraq and syria including Syrian Kurdish and arab forces are recently took the key border town from isil, a cut off a key line of communications and supply plenty level on the defensive and put them under pressure. So where we have the incredible ground force with the Coalition Air campaign isil has suffered that is what makes the third line of the effort to develop the capacity and capabilities so important. Indeed we know from recent experience to require cable Ground Forces. And we know from history in the region to put u. S. Combat troops on the ground as a substitute will not produce a during results. That is why were bolstering there iraqs Security Forces with moderate Opposition Forces but it iraq the Security Forces were severely degraded after day dissolved one year ago in june. To revise and insists on going operations 32005 and injured 50 american personnel at six locations around the country. The training has been slowed by a work of trades as a june 33 have only received enough to train about 8,800 forces in addition to the peshmerga. Another 4,000 soldiers including the personnel that are in trading i have told the iraqi leaders United States is open to supporting iraq more than that we already are messy a greater commitment from all parts of the Iraqi Government also in the early stages that three months into the program the trading is under way and we are working on the 7,000 volunteers to assure their committed to fighting isil to meet standards the lot and necessitated by operations as of july 3rd we are currently trading about 60 fighters this number is much smaller part because of those vetting standards of justice cry but the program is essential and we need a partner in the ground to insure isil en defeats and as were learning more but the opposition groups to build important fishing ships it increases the ability to attract recruits to give intelligence for counter operations grosso working with local forces after earlier days we are expediting delivery of a credit to the Iraqi Security force to work with the government of iraq to make sure it is quickly passed. And we are constantly assessing the approach after the fall of provide a. That can and will be strengthened on the ground and with participation of the Training Facilities and example of this that has been noted in the Anbar Province under recently deployed of the american personal authorize. And then to provide access to the tribesmen this is with the own initiative to increase outreach to the anbar tribes and as of mid june the Iraqi Government has an Additional Group of 800 fighters and were supporting the training they have already identified those of the Current Group and will continue to work that these sunni fighters have the training and equipment needed for isil dash also of note the anbar Operation Center is located where we can advise and assist the iraqi commanders as a command the sunni forces and in syria b. C. To capitalize on their recent success and continued to strike the isil under center at the same time looking for ways to streamline the vetting process that ended earlier to get more recruits into the training pipeline. Were also refining of our curriculum and expanding our reach land inc. Lessons learned to for i am happy to speak about that more and a conclusion the department of defense execution of where the execution can and will and must be strengthened to achieve a lasting defeat has steady leadership from the Global Coalition hard work brendan and women in uniform in synchronized efforts among the other seven mines and most important data commitment and sacrifice by iraqis and syrians. Together with your continuing support for which were ever grateful to achieve isil lasting defeat. The key chairmen and ranking members and members of the committee appreciate the opportunity to come back to chat with them military component of our strategy against 11 per of a starting point has to be the strategic picture and contacts. The world day is rapidly changing never precede significant shifts in a strategic landscape that was one but chinas assertiveness with activities in the middle east with the rise in the aggression of the non state networks to level a Playing Field while the potential adversaries grow stronger but the allies are becoming increasingly dependent on the United States and some of the of comparative military advantages have begun to the robo makes is complicated is these trends are manifesting themselves simultaneously within the least shy a characterize three converging says that several governments are struggling for political legitimacy because they are not sufficiently pluralistic or accountable to their citizens. The centuriesold struggle is evident and weak states are less able to assert independence with the tugofwar between the sectarian regional powers and third receiver rising competition between moderate and radical elements as they take advantage of that competition so the role of the United States military that it takes against the trans regional threat is a properly matched to the complexity of the environment at a level of effort that is sustainable over time. Military power alone will solve isil i dont think anyone would disagree everything used to be considered in this campaign focuses to actively reinforcing and harden the partners to must and are taking responsibility for their own security and that is the important point in during stability cannot be imposed from the outside the fight is unable by the coalition but that must be owned by the stakeholders the bears repeating this is the beginning of a complex nonlinear campaign to require a sustained over it effort over an extended period of time we have to be just as agile as the of Terror Network that we phase were constantly making sure we are approaching the a global commitments opprobrium a but for years and counting of budget uncertainty has made this harder. I welcome your questions. Thank you. Mr. Secretary lets clear up a couple of points before we get into this strategy is said he recommended of veto to the president. Is your position . He restated his position yesterday and i support that i am happy to give the reasons for that. You choose between fully funding the president s budget for the mundane the defense of sequestration . The short answer is i hope we can do better than that. And that a way to be found to get beyond the gridlock that we have. But to give the budget process with a stable runaway and i will explain why that is so important. Going budget chair the for several years straight it is extremely disruptive and to manage your the inefficient in the herkyjerky process it is difficult to have doubled the Year National Defense Strategy with of large shipbuilding and Aircraft Programs one year at a time veggie i also believe that our people deserve better if they need a horizon in front of them and then i travel around dobro the as you do and it is of harassing that we cannot in successive years pull ourselves together before the overall budget approach that allows us to do what we need to do to reprogram the multiyear manner so for all those reasons i appeal is that i dont have expertise but obviously is much bigger than defense because the success of this campaign and a National Security is with the department that i did the but also on montforts medan Homeland Security provide am hoping we can do better than that choice choice, mr. Chairman. And we dont continue down the road to nowhere. You may be presented with that choice and this is the authorizing bill with the appropriations committee. Very quickly you have stated in response to my question if we should arm the ukrainians magpie and inclined in that direction because i think we need to support them to defend themselves to make sure they have arms. And inclined to provide with the arms that your question was legal arms to still have that position . I have not changed my a thinking in the last month that i have had the occasion to talk to the ukrainian minister of defense. Find. I am just wondering if you are still in support. That is a straightforward question. We were considering that we have not made a decision. Are you still inclined to provide . Please mr. Secretary. Yes. That was a simple answer to a simple question. Ill have two minutes left. Zero b2 and its less. 5,000 airstrike 75 return without having dropped a weapon and. In there is a compelling argument is seems that is the case were trading 60 fighters . After four years that is not very impressive of a number. Is it true that people your training that you were telling them theyre only there to fight isil and not always shied pshaw are always shied . That they are and are made to trade them in the first instance to go after isil cannot the as side regime as a top priority they are inclined that direction from areas that are overrun by isil. I think we have some obligation to them once they are in the field. To defend them . That decision will be made. That is a small comfort to those people you are recruiting that that decision will be made later. Is that fair to say were sending you in to fight isil only then we will decide on the policy to defend you . To make a note that we will provide support. So we will defend them . This is not a Pleasant Exchange arab like to have answers to questions will we tell them we will defend them against the beryl bombing . We have an obligation. Will be tell them that . We have not stick your recruiting people but not telling them you have not made the decision yet to be willing to trade them quickly to send them in the . The other is success on the part of an outfit called larvae of conquest that is mostly by saudi arabia and patter and others that are succeeding in ahab battlefield gains does isis have any relationship with that outfit . They are fighting against assad as well as isis. I will have to get back to with the answer to that question be coz who has that contact is something we would have tears discussed separately. You mentioned which fraction result in strikes and i would like to explain those numbers. In the case where the air strikes are mounted where they are the time what the target will be 93 percent of the time but with dynamic targeting the fraction is much lower maybe 37 percent in the case of dynamic targeting by its nature, the aircraft is deployed with the expectation that a targets of opportunity will provide the opportunity for a strike. That doesnt have been all the time but it does happen 37 . A fraction that is much higher than afghanistan where we did the same thing. And in order to capitalize between the opportunity the experience your. To have the air controller on the ground with the number of targets hit has been to radically increase. And with those pilots that are flying who feel they are not achieving anything. Talk to them as well. If i could address the question and since you have raised it to said the fundamentals of the strategy that are to support capable and motivated Ground Forces read the fine to them and we are supporting capable forces. For example, said the kurds in northern syria. My time is up but that has nothing to do with not having controllers on the ground. I hate to cut you short. We dont rule that out. Hasnt happened. I was struck by your statement the most critical align is political led by the state department and did your colloquy with the chairman you pointed out there are challenges with respect to the oco funding proposed but the state does not even have the option for that source of funding sorry you concerned that they could not be the primary . The state department and department of Common Security and others that our critical to protect us against other threats need resources also. That is another reason why i appeal for the overall budget perspective i understand it has moving parts with the major coming together to release gridlock but i appeal for that not just for my own department put the rest of the establishment is critical. One of the first issues was the of composition of the provisional forces so now we begin to see the sunni appear is that does deliver it cooperation getting the message thats they have to have the support of the Sunni Community and do you see a trend that is positive for the overall participation . We see that commitment that is so different from the behavior of his predecessor to engage in the multi sectarian way in the fight against isil with against the kurds that go slowly which explains why the numbers are small. We expect them to grow or hope they grow but what we need from the Iraqi Government is the enrollment of sunni with the Iraqi Security forces and the commitment of the Iraqi Government to pay them or eclipse them with help that we provide. Then to talk about direct support, when we have effective Ground Forces in control with the Iraqi Government we are prepared to do more to support them but we need to have those forces because local forces on the ground, we know from experience, is the only way to create a lasting defeats of isil and that is what the strategy is all about. Can you count on your perception of a the sunni forces since the Anbar Province in particular and of relationship with them . I can. As a secretary mensches the good intentions have not always been that to those levels of bureaucracy. There was a time when referring the had the capability to bring them in the debris did not and could not generate their recruits for that has improved as a result of their failure in ramadi. Another Prime Minister tries to ruth get his leaders to reach out judah sunni tribes and arm them produce a policy to do that to the Central Government and not directly because the goal is a unified iraq but if it became clear that wouldnt happen to have to reconsider the campaign. One of the observations is a leadership at the tactical level all the way up with the Iraqi Security forces are there active changes going on right now to ensure the leadership at the brigade divisions eligible is confident . It is startling because there was some indication some were operating with them even more than the Iraqi Security forces. Your comments . That part of the plan to insert these forces would be to protect them as much as possible from any type of response. Focusing on isys but to put