Monday Afternoon with McCarthy

House majority whip Kevin McCarthy talks to Sacramento
by Michael Monasky, Special to EGN

January 9, 2012
House majority whip and Bakersfield Republican Congressman Kevin McCarthy met with Sacramentans for a conversation today at the Sheraton-Grand, sponsored by the Public Policy Institute of California, a non-partisan, a San Francisco bay area think tank.

When asked for his first thoughts, McCarthy immediately declared that the Congress must reform the tax system. He wondered aloud; “Are our best days behind us?” and declared that “we went to a world economy but did not change the tax system.” He said that the USA is not on a level playing field as there are regulations that hinder drug research, factory building, and trade.

McCarthy complained that the Congress was caught up in debates about the debt ceiling and the budget. Not surprisingly he also condemned White House leadership with a metaphor that Obama is more thermometer than thermostat. Gradual change is necessary, he added, and that Roosevelt, Reagan, and Churchill made those changes, like a thermostat being slowly turned down. He further stated that the country's biggest challenges are the rising costs of MediCare, Social Security, and MedicAid.

As for California, the congressman suggested that it “look within”, rather than to the Federal government which “borrows 40 percent of its budget.” He recommended that the state create incentive for water storage as he believes this will be the premier issue of the next election. Regarding high-speed rail, McCarthy said it is like “having enough money to pour a foundation but not enough to build the house.” Surprisingly, he remarked that “we subsidize every first-class ticket on Amtrak.” McCarthy discouraged build-out of high-speed rail, as “there is no private investment in it.” He invoked the principle behind the movie, Moneyball: “I want to apply Moneyball to high-speed rail”, he declared.

McCarthy said nothing will be done by Congress about immigration reform this year. This reporter asked the congressman to comment on the Government Accountability Office July 2011 report that the Federal Reserve gave $16 TRILLION to banks. The congressman suggested that citizens go to the mobile phone application, whipcast. The Federal Reserve operates in the dark, he said; “I'm for transparency”.

“I come from the wealth-creation perspective,” McCarthy said. "The pie should not be cut into smaller pieces; rather, more pies should be made."

As for social security McCarthy suggested raising the age “just raise the age” and for rising medical costs he urged a “contest” for cures.

When asked what he will do after he is done with government service, McCarthy noted “I'd love to be an entrepreneur.”