MSNBC "The Ed Show" - Transcript

Interview

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Sir, it"s good to have you on with us tonight. And I want to go right to this and be blunt. Are Republicans holding the debt ceiling hostage? And are Democrats basically falling for it, hook, line and sinker?

REP. PETER WELCH (D), VERMONT: They are holding it hostage. And it"s a very dangerous game. I mean, the market went down nearly 300 points today.

Bottom line, it"s a politically uncomfortable vote to raise the debt ceiling, but the basic question is this: does America pay its bills? We always have. We always will.

And, in politics, you try to leverage whatever advantage you can get. Republicans do it, Democrats do it. But at a certain point, you have to exercise restraint and responsibility.

We have to pay our bills. Otherwise, we"re playing with a loaded gun. Russian roulette in the American economy is on the receiving end of that bullet.

ROBERTS: Congressman, on the surface, Democrats do appear to be winning this fight over Medicare. And basically, the simple reason is the public likes Medicare. However, Republicans, they are complaining that the Ryan plan is being mischaracterized.

In your opinion, is that a fair estimation or not?

WELCH: It"s not. You know, health--Medicare provides security to Americans, 65 and older. They have access to health care.

Keep in mind, the Republicans in the House not only are about abolishing Medicare for 55 and under Americans, but they abolish the insurance reforms that would allow you to get access to coverage if you have a pre-existing condition.

So, under their plan, if you are under 55, when you turn 65, you are subject to an insurance company saying yes or no on whether they"ll ensure you. Now, that assumes that you can even afford it. So, no, it"s not.

Now, the issue on health care is about the cost of health care that is escalating two and three times the rate of inflation, wages and profit growth. And Democrats have acknowledged that we have to reform and control the cost of health care, but we"re not going to attack Medicare. Absolutely not.

ROBERTS: Today"s meeting was meant to augment these ongoing Biden talks in which the White House and congressional leaders are looking at more than $1 trillion in budget cuts. Republicans want Medicare to somehow be a part of that.

Do you think ultimately that it"s going to be, sir?

WELCH: I don"t. What can be part of it is reforms in the delivery system of health care in general because the challenges in Medicare, that is the--how attach costs--are the challenges that we face in health care. So, employers who are providing health care are getting hammered with health care premium increases. Individuals who are getting--trying to buy private insurance are getting hammered with increases. That, obviously, is a factor in the cost of Medicare because it"s part of health care.

So, the Democrats are at the table. Let"s reform health care. Let"s do price negotiation with prescription drugs. Let"s transform the payment system from the fee-for-service, volume-driven approach to a pay-for-value driven approach.

There"s lots of things that we need to do to have more affordable and better health care. But one of the things that is absolutely essential for American security and middle class security in this time of enormous pressure in the economy is to maintain the guarantee that when you are 65 and you"ve been paying into health care, Medicare all your life, you are going to get it.

ROBERTS: We have you here, I need to talk about the debt ceiling, though, because we have that date of August 2nd looming. Analysts have been saying for months that unlike typical budget negotiations, the debt ceiling vote cannot be dragged out to the final day, without risking some serious economic impacts.

So, is this going to be a horse to water with all of you guys getting us up to this date and then something going to happen at the very last minute and then we have to deal with whatever economic impact has happened over this summer?

WELCH: Well, see, I think that"s an extraordinarily dangerous game. And I think both sides have to acknowledge that we cannot play Russian roulette with the American economy. You know, when we were talking about the continuing resolution and keeping the lights on in government for another six months, we could go to the midnight hour. And if we went past it, there wouldn"t be a lot of harm, there"d be some inconvenience.

But once we rattle the markets where they believe that we"re not going to be capable to pay our bills, then that market will turn suddenly and it will turn savagely, and the lasting damage to this economy will be devastating. Any member of Congress who is part of that effort and wants to overextend their hand on this leverage game is going to reap the whirlwind.

ROBERTS: Congressman Peter Welch, thanks for joining us tonight, sir.

We do appreciate your time.

WELCH: Thank you.

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