This is a rush transcript from "Your World," September 27, 2012. This copy may not be in its final form and may be updated.
NEIL CAVUTO, HOST OF "YOUR WORLD": We interrupt this so-called recovery for something that's more like reality, this durable turnaround, well, not so durable.
In fact, when it comes to durable goods orders, not much ordering going on at all. The appetite for what they call big-ticket items that cover everything from planes to pasta makers caving more than 13 percent last month, the same month we learned that pending home sales reversed after hitting a two-year high, the same day we learned delinquent mortgages were down, but home foreclosures were up in the latest quarter, and that growth was cut to 1.3. percent in the same quarter.
All volatile numbers, to be sure, but they point to problems with a recovery that now is not looking so sure, especially in a week we heard 55 percent of small business owners surveyed say they wouldn't start a small business today, and 69 percent of manufacturers and other business owners say regulations are killing their businesses today.
Add 'em up.
To the Republican vice presidential candidate who says it's the U.S. economy that's headed down.
Welcome, everybody. I am Neil Cavuto.
And Fox on top of a number two back to issue one: jobs. Not happening. Paul Ryan making his case on the stump that America has hit a big bump and it ain't pretty.
But the man Republican operatives have reportedly been urging the Romney campaign to get out there and get blasting is here and now talking.
Congressman Paul Ryan joining me from Memphis, Tennessee.
Congressman, very good to have you.
REP. PAUL RYAN, R-WIS., VICE PRESIDENTIAL CANDIDATE: Good to be back with you, Neil.
CAVUTO: What do you make of these latest numbers? I know you've been talking about weakness in the economy. But prior to the data today, congressman, we had seen a pickup in consumer sentiment. We -- obviously, markets tend to go all over the map, but month over month, we have been seeing a pickup in the markets and investor confidence as well.
What did this signal?
RYAN: We've been seeing slow growth. Now we see that it is even slower.
Look, a downward revision from 1.7 to 1.3 percent that is a pretty big drop. The drop in durable goods is just an enormous drop. Look, Neil, this is not what a real recovery looks like. And as you just mentioned from the survey of businesses and manufacturers, they see more clouds on the horizon.
It's because of the president's failed policies. Look, Mitt Romney and I are proposing very specific pro-growth solutions to get real growth back in this economy. There is no reason why we can't get this economy growing at its potential and get people back to work.
That's why we are proposing pro-growth tax reforms, lower tax rates across the board. That gives us more take-home pay. That gives businesses an incentive to hire because they're keeping more of what they earn, regulatory reform, which is a cloud of uncertainty, a hidden tax on businesses.
We've offered a specific energy policy to unleash American energy, to be energy-independent in North America by 2020, job training reform, more trade agreements to promote trade and get the fiscal house in order.
We've put out specific plans on how to prevent a debt crisis, how to reform entitlements, how to cut spending, how to get growth, how to grow the economy and get people back do work.
That's the choice we're offering the country. We need to do four more years of these kinds of policies, which are producing these pitiful results, or we can get back to real growth, get people back to work, get back to that society of upper mobility. That's what Mitt Romney and I are offering.
And we have the specific solutions that we are giving the American people. And in the final analysis, I think they're going to like this choice they have.
CAVUTO: You mentioned the specific solutions. And I was a little bit confused yesterday, congressman, when Mitt Romney was talking about the tax cuts he was envisioning, that they wouldn't be as big as you think, that when you factor how we would phase out I guess exemptions and allowances in the deductions, and he didn't specify which, that it might not be the big tax cut a lot of folks were looking forward to.
Was he trying to brace us for some bitter news?
RYAN: No, not at all.
Look, what we're saying is lower tax rates through a broader base triggers economic growth. That's what we're talking about. And when people ask us about, well, whose tax loopholes are you going to go after, what we've been saying is by closing tax shelters for higher-income earners, which is what he's referring to, that allows us to lower tax rates for everybody.
Middle-income taxpayers get higher take-home pay. Businesses have lower tax rates, which helps them, compete globally, which helps them keep more of what they earn on the next dollar they make, which encourages job creation.
And so what we're saying is, by denying some of the tax shelters to higher-income earners, more of their income is subject to taxation, which means we can lower tax rates on everybody without losing revenue. And, in fact, we'll get more revenue because we know this will grow the economy.
These kind of pro-growth tax reforms, Ronald Reagan and Tip O'Neill did it. Bowles-Simpson proposes it. We're proposing it. Lower tax rates. Broaden the tax base. That is a pro-growth solution to get people back to work. That's what gets you higher take-home pay.
That's what lets people in the middle income keep more of what they earn. Under the current code, you send a bunch of your money to Washington and then if you do what we approve of in Washington, we might let you keep some of it back. That's picking winners and losers. Both parties are guilty of it.
CAVUTO: But you mentioned Bowles-Simpson, sir. And you voted against that. So your critics say...
RYAN: I liked that part of Bowles-Simpson.
CAVUTO: OK. But your critics are saying, well, you talk a good game, but you don't deliver the goods. What do you say?
RYAN: No, but what -- here's what people do.
If you don't like the plan that someone has put on the table, then put your plan on the table. That's what I've done. I have passed a budget through Congress. Mitt Romney's offered a plan.
President Obama has doesn't any of that. He disavowed Bowles-Simpson and offered no alternatives. What we did is we took what we liked in Bowles-Simpson and then added more reforms to it. The reason I didn't support Bowles-Simpson is because it didn't address the primary driver of our debt, health care programs, health care entitlements that are going bankrupt.
I don't want to pass a bill to fix the fiscal crisis when I know it doesn't fix the fiscal crisis. That's why we took the good ideas from Bowles-Simpson and combined it with the necessary reforms that truly prevent a debt crisis. That is what Mitt Romney and I are proposing.
You need three things: pro-growth economic policies. That's tax reform is all about. That's what regulatory reform, energy policy is all about. Spending cuts. And we've proposed lots different spending cuts and critical entitlement reforms that are market-based, that give people more control over their lives when it comes to health care, not some bureaucrat, and that doesn't make any changes for people in or near retirement, but reforms programs for my generation so they're there for my generation when we retire.
That is how you get ahead of this problem and that's how you prevent European-like austerity.