bill: get ready for this, wow, numbers. concerns about our nation s soaring debt taking on a new sense ever your again system the treasury department reported that the government added astonishing $339 billion in debt on just the first day president obama signed budget deal. that brings the total new debt added from november 2nd until tuesday, nine days later to $452 billion. less than two weeks. liz claman, host of the countdown to the closing bell on the fox business network. how are you doing, liz? i m wearing the right color. bill: yes you are. that is a deep, deep cabernet red. what is going on here. what is going on absolutely stunning. people s ice going like this. 339 billion in single day added to the national credit card. tough back up a little bit of as you said the president just signed the budget deal brought to him by john boehner.
those are your headlines. now it s time to break down some numbers. steve: the president s budget was released at 6:00 o clock this morning. headline, making america a magnet for jobs. with his proposal he s suggesting the federal government spends $3.77 trillion in the next year. major new taxes on the wealthy. think buffet rule on steroids. l security and on medicare as well. when you take a look at the grand sweep of things, the suggestion that this really revamps and fixes entitlements would be delusional. brian: yeah. 65 days late, but here are some stats. reduced increases of the deficit. ten-year savings $339 billion. what s also important gretchen: that s social security. brian: what i also thought is important, that s what our national debt is, that the president goes ahead and has
so, we re sending the message that democrats had better not vote for this. what the president is doing is shifting the inflation adjustments from federal praments programs from broad measurable of consumer price index to a more narrow one called the chained cpi. this is a camouflage operation designed to easily they think it s going to be easy to cut government expenditures across the board and they hope people won t notice. supporters say the chained cpi is based on simple premise that people buy different things depending on the price. when the cost of one good goes up by a lot. we shift into another good. if apple becomes more expensive, we will buy a couple more bananas, so the chained cpi is more accurate measure of inflation. the change would only reduce the future increase in benefits by only 2.5% a year. over 10 years it would lower the deficit by $339 billion. that s because the change in the cpi wouldn t just be for social security but rather all federal programs
they brokered are really starting to break the bank in a lot of places across this country. now this as you well know is a real danger zone to get into for a lot of politicians politicians but in this economy some emboldened leaders are girding for this battle. meanwhile in the shocking through true category, heck this out, this is according to the bureau of labor statistics, take a look at this, these days n. total compensation, a government worker makes 1.45 for every $1 that you can make working in the private sector. that s a big switcher ain this switcheroo in this country. if it were evened up, that alone would save the cities in this country $339 billion a year. not easy to do, though, forget and john fund joins me now, an economist at the washington herald. john, everywhere i go lately, people are talking about this, they re saying why is my state in so much
2001, today it s 339 billion. it will increase to about 500 billion in 2027 with obamacare going to 624 billion in 2026. his point is, in washington spending goes up always. it s just a matter of how much. does he have a point? because the gop plan is still dramatically increasing medicaid spending but not as much as it would have under obamacare. is it fair to say, are all those increases in spending needed to get better quality care? erin, so much of this program goes for older people. guess what, your viewers know that growing older in america isn t cheap. two out of three seniors have their nursing home care paid for by medicaid. this is going to get even more challenging in the years ahead. you have a baby boomer, for example, who s had an early onset of a stroke or perhaps alzheimer s. that s where the money is going, for folks who need nursing home