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QUINTANILLA: JOINING US TO TALK ABOUT THAT JOBS NUMBER, VICE PRESIDENTIAL CANDIDATE PAUL RYAN, REPUBLICAN OF WISCONSIN, CHAIRMAN OF THE HOUSE BUDGET COMMITTEE AND IF THERE WERE A HALL OF FAME OF FORMER "SQUAWK BOX" GUEST HOSTS, HE'D BE ON THAT, TOO. MR. CHAIRMAN, GOOD MORNING TO YOU?

RYAN: CARL, I DON'T THINK I'VE TALKED TO YOU SINCE YOU GOT THIS NEW GIG. CONGRATULATIONS. GOOD TO BE WITH YOU.

QUINTANILLA: THANK YOU VERY MUCH. LET'S TALK ABOUT THE NUMBER. YOU HEARD DR. KRUEGER. WE'VE HEARD THIS DESCRIBED AS EVERYTHING FROM DISMAL THIS MORNING TO TEPID TO SOMETHING FOR EVERYONE. HOW DO YOU SEE IT?

RYAN: CARL, THIS IS NOT EVEN CLOSE TO WHAT A RECOVERY LOOKS LIKE. LOOK, WE WOULD NEED TO ACTUALLY HAVE 150,000 JOBS CREATED JUST TO KEEP IN PACE WITH POPULATION GROWTH. THIS IS NOT WHAT PRESIDENT OBAMA PROMISED. I WOULD ARGUE THIS IS THE RESULT

OF FAILED LEADERSHIP IN WASHINGTON, BAD FISCAL POLICY COMING FROM THE ADMINISTRATION AND THAT IS WHY WE HAVE THIS VERY TEPID REPORT. FOR EVERY NET ONE JOB CREATED, FOUR PEOPLE -- NEARLY FOUR PEOPLE LEFT THE WORKFORCE. SO THIS IS NOT WHAT A RECOVERY LOOKS LIKE. WE NEED GROWTH. WE NEED ECONOMIC GROWTH AND WE CAN GET THAT IF WE GET THE RIGHT POLICIES IN PLACE. THAT'S WHAT MITT ROMNEY AND I ARE PROPOSING, SPECIFIC SOLUTIONS, PRO-GROWTH ECONOMIC POLICIES TO GET THE KIND OF GROWTH WE OUGHT TO BE HAVING IN THIS ECONOMY TO GET PEOPLE BACK TO WORK.

QUINTANILLA: WE ALL KNOW THE RATE ITSELF IS A BIT OF A BLACK BOX, A LOT OF DISCUSSION THIS MORNING ABOUT PARTICIPATION RATE.

RYAN: RIGHT.

QUINTANILLA: BUT 60 DAYS AHEAD OF AN ELECTION, MR. CHAIRMAN, AND THE OPTICS OF THIS IS GOING TO BE ABOUT THE NUMBER 8.1%.

ISN'T THERE THE RISK OF SOME AMERICANS WHO WILL SAY, IT'S NOT A GREAT NUMBER BUT IT DIDN'T GO UP?

RYAN: 8.1% THIS MONTH MEANS 43 MONTHS ABOVE 8%. REMEMBER WHEN THE PRESIDENT PROMISED THAT HE WOULD PREVENT UNEMPLOYMENT FROM GETTING ABOVE 8% IF WE PASSED HIS STIMULUS PACKAGE? IT HASN'T BEEN BELOW 8% SINCE THEN. IF YOU LOOKED AT THE PREDICTIONS THEY MADE WHEN THEY PASSED THE STIMULUS, THEY SAID THAT UNEMPLOYMENT WOULD BE DOWN AT LIKE 5.4% TODAY.

SO THIS IS JUST ANOTHER EXAMPLE OF LOTS OF PROMISES AND LOFTY RHETORIC MADE BY THE EARLY OBAMA PRESIDENCY OR BY CANDIDATE OBAMA. AND LOOK AT THE LACKLUSTER PERFORMANCE, LOOK AT THE BROKEN PROMISES. THIS IS NOT AN ECONOMIC RECOVERY. WE ARE LIMPING ALONG. THIS IS STAGNANT GROWTH. FOR EVERY PERSON WHO GOT A JOB, NEARLY FOUR PEOPLE STOPPED LOOKING FOR A JOB. THAT'S NOT A STATISTIC TO BRAG ABOUT. LOOK AT FACTORIES. 15,000 FACTORY JOBS LOST. 7,500 OF THOSE JOBS LOST FROM AUTOMAKERS ALONE. SO, CARL, WHAT MITT AND I ARE PROPOSING ARE PRO-GROWTH ECONOMIC POLICIES, AN ENERGY POLICY, TAX REFORM, REGULATORY

REFORM, CLEAN UP THE SPENDING PROBLEM IN WASHINGTON TO PREVENT A DEBT CRISIS. THOSE ARE THE KINDS OF THINGS THAT WE'RE PROPOSING, EXPAND MARKETS FOR OUR TRADE. THESE ARE THE THINGS WE NEED TO GET GROWTH BACK IN THIS ECONOMY. WE HAVE A VERY SERIOUS PLAN FOR PRO-GROWTH SOLUTIONS THAT WE THINK WE CAN GET PEOPLE BACK TO WORK AND REALLY WORK ON THIS NUMBER.

QUINTANILLA: LET ME ASK YOU A BIT ABOUT WHAT THE MARKETS ARE TELLING YOU. YOU LIKE FREE MARKETS AND I THINK NO ONE WOULD DISAGREE WITH WHAT YOU'RE SAYING ABOUT THIS JOB MARKET IN THIS COUNTRY. BUT STOCKS YESTERDAY CLOSED AT THE HIGHEST LEVEL SINCE INAUGURATION. RETAIL, HOUSING, AUTOS HAVE ALL BEEN ON THE MARGIN MORE IMPRESSIVE THAN THEY'VE BEEN DISAPPOINTING. THEY CAN'T ALL BE WRONG, CAN THEY? AND AS FAR AS THE MARKET RALLY GOES, WHO OWNS THAT?

RYAN: WELL, LOOK, I THINK BEN BERNANKE CLAIMS THAT HIS MODEL OWNS SOME OF IT. I THINK, WHAT WE'VE HAD LATELY IS BECAUSE WE'VE HAD A LACK OF LEADERSHIP ON FISCAL POLICY. YOU'VE HAD BAD FISCAL POLICIES HERE IN AMERICA AND YOU HAVE THE FEDERAL RESERVE TRYING TO BAIL OUT FISCAL POLICY. YOU SORT OF HAVE A STORY AROUND THE WORLD OF CENTRAL BANKS STEPPING IN AND TRYING TO BAIL OUT LACKLUSTER FISCAL POLICY. I THINK, YOU PROBABLY LOOK AT THE ECB, DRAGHI PRESS CONFERENCE YESTERDAY, FOR PROBABLY ONE OF THE BIGGEST REASONS WHY YOU HAD THAT MARKET RALLY. BUT WE HAVE TO BE CLEAR ABOUT IS THERE IS NO SUBSTITUTE FOR GOOD FISCAL POLICY. YOU CAN'T EXPECT CENTRAL BANKERS TO BAIL US OUT ALL THE TIME. WE HAVE A FUSION OF OUR FISCAL MONETARY POLICY WHICH AT THE END OF THE DAY COULD SPELL DANGER. WHAT WE NEED TO DO IS GET OUR FISCAL HOUSE IN ORDER. WE NEED TO HAVE LOW TAX RATES, ECONOMIC GROWTH, REGULATORY REFORM, PREDICTABILITY, CERTAINTY, THOSE ARE THE KINDS OF THINGS THAT INVESTORS AND JOB CREATORS NEED TO BE ABLE TAKE RISKS. ALL THEY GET COMING FROM WASHINGTON, FROM THE WHITE HOUSE, IS THE PROMISE OF HIGHER TAXES, MORE REGULATIONS. IT'S THOSE KINDS OF THINGS THAT MAKE IT IMPOSSIBLE FOR PEOPLE TO PREDICT AND CREATE JOBS. WE'RE GOING TO CHANGE THAT. WE'VE GOT A FIVE-POINT PLAN FOR A STRONGER MIDDLE CLASS, WHICH IS SPECIFICALLY AIMED AT CREATING ECONOMIC GROWTH, SPECIFICALLY AIMED AT TRYING TO GET OUR ECONOMY TO GROW ON AN AVERAGE OF 4% A YEAR, WHICH WOULD CREATE 12 MILLION NEW JOBS OVER THE NEXT FOUR YEARS IF WE CAN GET THOSE PRO-GROWTH ECONOMIC POLICIES IN PLACE.

QUINTANILLA: YOU SEEM TO BE PLACING THE MARKET RALLY IN BERNANKE’S HANDS. HIS DEFENDERS WOULD ARGUE HE IS ALLOWED--

RYAN: WELL I’M NOT GOING TO--NO ONE KNOWS EXACTLY HOW THIS--NO ONE CAN SAY WHO DID WHAT. WHAT I’M SIMPLY SAYING IS CENTRAL BANKS AND OUR MONETARY POLICY HAS BEEN TRYING TO SERVE AS A SUBSTITUTE FOR REALLY BAD FISCAL POLICY AND THAT BAD FISCAL POLICY IS THE FACT THAT WE DON’T HAVE THE KIND OF LEADERSHIP WE NEED IN THE WHITE HOUSE TO GET THIS ECONOMY GOING.

QUINTANILLA: RIGHT. DO YOU BELIEVE THIS JOBS NUMBER MAKES QE3 MORE LIKELY AND IF YOU AND THE GOVERNOR WIN THE PRESIDENCY AND THE VICE PRESIDENCY DO YOU FIRE BERNANKE ON DAY ONE?

RYAN: NO, LOOK I DON’T THINK IT IS APPROPRIATE TO COMMENT ON WHAT YOU DO WITH PERSONNEL SUCH AS THAT. I’VE KNOWN BEN A LONG TIME. WE--HE AND I HAVE DISAGREEMENTS ON THESE ISSUES BUT THEY ARE RESPECTFUL OF ONE ANOTHER. I THINK QE 3 -- I THINK QE HAS DONE -- THE COSTS OUTWEIGH THE BENEFITS, IN MY PERSONAL OPINION. BUT I THINK THIS LACKLUSTER REPORT PROBABLY INCREASES THE LIKELIHOOD. I WOULD THINK THE MARKETS WOULD SPECULATE THAT. I THINK, WHAT THE NEXT FOMC IS SEPTEMBER 12TH AND 13^TH, I THINK? AND THEN YOU’VE GOT ANOTHER ONE IN OCTOBER COMING UP. SO, MY GUESS IS THE MARKET WOULD PROBABLY EXPECT THAT. IT SORT OF SEEMED LIKE THAT FROM HIS JACKSON HOLE SPEECH. BUT AT THE END OF THE DAY, ALL THIS EASING IS SIMPLY, IN MY OPINION, THE FEDERAL RESERVE TRYING TO BAIL OUT BAD FISCAL POLICY. AND I THINK THE COSTS ARE CLEARLY OUTWEIGHING THE BENEFITS OF THIS.

QUINTANILLA: THE PRESIDENT THIS WEEK IN CHARLOTTE SEEMED TO MAKE THE ARGUMENT THAT HE HASN'T HAD ENOUGH TIME. AND I KNOW YOU'RE SMART ENOUGH TO HAVE READ PEOPLE LIKE REINHART-ROGOFF AND YOU KNOW THAT CAPITAL MARKET CRISES ARE NOT SOLVED IN THE AMOUNT OF TIME

IT TAKES TO FIX A CYCLICAL SLOWDOWN. SO WHY IS IT FAIR TO JUDGE THE PRESIDENT EVEN FOUR YEARS LATER?

RYAN: WELL YES, I HAVE READ REINHART-ROGOFF. I’VE HAD THEM COME TESTIFY AT MY COMMITTEE. THEY ALSO SAY WHEN YOUR DEBT GETS TO ABOUT 90% OF GDP, YOUR ECONOMY STARTS REALLY SLOWING DOWN. THAT'S WHAT WE'RE DOING. THE PRESIDENT IS GIVING US FOUR BUDGETS WITH TRILLION-DOLLAR DEFICITS AND NEVER IN ANY OF THESE BUDGETS HAS HE PROPOSED TO EVEN COME CLOSE TO BALANCING THE BUDGET. THE DEBT INCREASES UNDER HIS WATCH. LOOK AT THESE TRAJECTORIES. THEY'RE TERRIBLE. IF YOU LOOK AT REINHART-ROGOFF, WE'RE GOING CLOSE TO THAT DANGER ZONE. WERE WE REALLY START TO GET AN ECONOMIC SLOWDOWN BECAUSE OF DEBT BURDENS. AND SO IT IS FOUR YEARS INTO THIS PRESIDENCY. IF WE PUT THE RIGHT POLICIES IN PLACE THAT ARE PRO-GROWTH POLICIES, WE WOULD HAVE HAD THE KIND OF RECOVERY WE OUTTA HAVE. WE'RE NOT. WE’RE NOT GETTING THE RECOVERY HE PROMISED, WE’RE NOT EVEN CLOSE TO THE PREDICTIONS THAT HE SAID WOULD OCCUR WHEN HE PASSED HIS STIMULUS BILL. YOU CAN MAKE THE CASE THAT LOOKING BACK, IT'S SLOW. THAT'S NOT WHAT PRESIDENT OBAMA SAID, IF WE WOULD HAVE PASSED HIS KEYNESIAN BORROWING AND SPENDING AGENDA. LOOK, IF BORROWING AND SPENDING AND REGULATING AND TAXING WAS THE SECRET TO ECONOMIC SUCCESS, WE WOULD BE ENTERING A GOLDEN AGE ALONG WITH GREECE. IT'S NOT. IT DOESN'T WORK. WE SOUND MONEY, LOW TAX RATES, FISCAL DISCIPLINE, REGULATORY CERTAINTY AND WE NEED TO STOP THIS NOTION OF A GOVERNMENT-DRIVEN ECONOMY. WE NEED TO ALLOW ENTREPRENEURS TO FLOURISH. WE NEED BUSINESSES TO HAVE CERTAINTY. WE NEED COMPETITIVE POLICY THAT IS PUT US ON A LEVEL PLAYING FIELD ON TAX AND REGULATORY POLICIES.

WE NEED TO UNLEASH THIS ENERGY BOOM THAT IS BEING STIFLED BY THIS ADMINISTRATION.

QUINTANILLA: IT BRINGS TO MIND, MR. CHAIRMAN, SOME OF THE COMMENTS THE PRESIDENT MADE LAST NIGHT. HE DID MENTION 600,000 NATURAL GAS JOBS. HE DID SAY THE GOVERNMENT IS NOT THE SOLUTION TO EVERY SINGLE PROBLEM. DID YOU LOAN HIM YOUR COPY AYN RAND?

RYAN: HE'S GREAT AT GIVING SPEECHES AND GOOD AT MAKING LOTS OF PROMISES. HE MADE A BUNCH OF PROMISES FOUR YEARS AGO THAT HE HASN'T KEPT. HE MADE A FEW MORE LAST NIGHT IF YOU TAKE A LOOK AT HIS RECORD, IT JUST DOESN'T ADD UP.

QUINTANILLA: SPEAKING OF SPEECHES, PRESIDENT CLINTON THIS WEEK TOOK YOU TO TASK, SAID IT TAKES SOME BRASS FOR YOU TO CRITICIZE THE MEDICARE CUTS THE PRESIDENT WAS MAKING WHEN DOLLAR FOR DOLLAR HE SAYS WERE IN YOUR OWN PROPOSAL. DO YOU HAVE BRASS?

RYAN: LOOK, WHEN YOU WRITE A BUDGET, YOU WRITE IT BASED ON THE CURRENT CBO LAW BASELINE. THAT’S HOW BUDGETS WORK. HERE’S THE POINT, DON'T ASK ME. LOOK AT WHAT THE TRUSTEES, MEANING THE CHIEF-- OF MEDICARE SAYS. LOOK AT WHAT CBO SAYS. LOOK AT JUST BASIC ARITHMETIC. YOU CAN'T COUNT THE SAME DOLLAR TWICE. YOU CAN'T SAY, $716 BILLION IS GOING TO BE USED TO SHORE UP MEDICARE AND THAT SAME $716 BILLION IS GOING TO BE USED TO PAY FOR OBAMACARE. YOU CAN'T COUNT THE SAME DOLLAR TWICE. THE PROBLEM IS THE PRESIDENT GOT CAUGHT WITH HIS HAND IN THE COOKIE JAR. HE GOT CAUGHT USING MEDICARE AS A PIGGY BANK TO PAY FOR OBAMACARE. THEY DON'T LIKE THAT FACT. WE'VE POINTED IT OUT. THIS IS JUST WHAT HAPPENS WHEN PEOPLE DON'T HAVE A GOOD RECORD TO RUN ON. THEY TRY TO DISTORT. THEY THROW BLAME. AND THAT’S THE WAY THEY ARE TRYING TO RUN THIS CAMPAIGN. MITT ROMNEY AND I ARE OFFERING BOLD SOLUTIONS, BIG IDEAS FOR BIG PROBLEMS TO GET GROWTH BACK IN THIS ECONOMY, TO CREATE JOBS. IF WE CAN AVERAGE 4% GROWTH WITH THE RIGHT POLICIES IN PLACE, AMERICA CAN BE THE PORT IN THE STORM IN THE GLOBAL ECONOMY. WE CAN TRIGGER A RENAISSANCE, WE CAN PULL THE $2 TRILLION OF CAPITAL THAT’S PARKED ON THE SIDELINES BACK INTO THIS ECONOMY AND GET PEOPLE BACK TO WORK, GET BACK TO PROSPERITY. WE WANT THE AMERICAN IDEA OF AN OPPORTUNITY SOCIETY WITH A SAFETY NET. WE DON'T WANT A BORROW AND SPEND AND REGULATE CRADLE THE GRAVE WELFARE STATE WHICH INEVITABLY LEADS TO A DEBT CRISIS LIKE THEY HAVE IN EUROPE.

QUINTANILLA: MR. CHAIRMAN, I KNOW YOU TALK ABOUT 12 MILLION JOBS AND 4% GROWTH. THIS MIGHT BE AN UNFAIR QUESTION. BUT DO YOU EVER PAUSE AND WONDER WHETHER MAKING PROMISES LIKE THAT COULD PUT YOU IN THE EXACT SITUATION THE WHITE HOUSE IS IN WHERE THEY DID, IN FACT, AS YOU SAY, PROMISE 8% AND HAVEN'T GOTTEN THERE YET?

RYAN: THIS IS OUR GOAL. AND WE THINK THIS GOAL IS ACHIEVABLE. WE'VE TALKED TO LOTS OF DIFFERENT ECONOMISTS AS TO WHETHER OR NOT THIS IS AN

ACHIEVABLE GOAL. THE POINT IS YOU NEED TO SET METRICS AND BENCHMARKS. PRESIDENT OBAMA DID THAT. HE JUST MISSED HIS METRICS AND BENCHMARKS. HE DIDN'T CUT THE DEFICIT IN HALF IN FOUR YEARS. HE DIDN'T KEEP UNEMPLOYMENT FROM GETTING ABOVE 8%. BUT IT'S BECAUSE HE PUT THE WRONG POLICIES IN PLACE. YOU’VE GOT TO REMEMBER HE RAN WASHINGTON FOR TWO YEARS WITH HIS PARTY. HE ACCOMPLISHED NEARLY EVERY ITEM ON HIS AGENDA. THE PROBLEM IS THOSE ARE BAD POLICIES. AND WE BELIEVE IF WE USE PROVEN PRO-GROWTH POLICIES, WE'LL GET PRO-GROWTH RESULTS.

ENERGY POLICY, TRADE POLICY, FISCAL DISCIPLINE, JOB TRAINING TO GET PEOPLE INTO THE SKILLS SO THEY HAVE THE CAREERS THEY NEED AND TO CHAMPION SMALL BUSINESSES. CLEAR THE REGULATORY HURDLES MAKING IT HARDER FOR PEOPLE TO TAKE RISKS. GIVE US SOUND MONEY, LOW TAX RATES, GIVE US TAX REFORM. DO THESE THINGS IN 2013, WE PREEMPT A DEBT CRISIS AND WE BECOME THE PORT IN THE STORM IN THE GLOBAL ECONOMY AND WE GET GROWTH AGAIN. AND SO, OUR FOCUS IS GROWTH. IT'S OPPORTUNITY. IT'S JOB CREATION. AND IF WE USE THE POLICIES THAT HAVE PROVEN TO WORK IN THE PAST,

I THINK WE'LL GET THE SAME KINDS OF RESULTS IN THE FUTURE.

QUINTANILLA: YOU MENTIONED SOUND MONEY AND PLANS THAT WORKED IN THE PAST. THE GOLD STANDARD IS AT LEAST EXPLORED IN THE REPUBLICAN PLATFORM OUT OF TAMPA. HOW SERIOUS SHOULD THE MARKET TAKE THAT? ARE YOU AND THE GOVERNOR BEHIND THIS COMMITTEE? SHOULD THEIR RECOMMENDATIONS BE BINDING? ARE WE GOING BACK TO THAT?

RYAN: NO. I DON’T THINK-- I'VE JUST RECENTLY FAMILIAR WITH THIS. I'M NOT SURE HOW THIS THING IS BEING STRUCTURED. OBVIOUSLY, I DON'T THINK IT SHOULD BE BINDING. I THINK YOU SHOULD QUESTION THE FEASIBILITY OF SUCH A THING. WHAT WE WANT IS TO HAVE REAL GOOD FISCAL POLICY SO WE GET

JOBS AND WE DON'T WANT MONETARY POLICY TO TRY AND SUBSTITUTE OUR FISCAL POLICY. WE WANT STABLE PRICES. WE WANT SOUND MONEY. A NECESSARY PRECONDITION TO ECONOMIC GROWTH NOW AND INTO THE FUTURE IS SOUND MONEY IS PRICE STABILITY. THAT'S WHAT WE'RE AFTER. AND I’M NOT REALLY FAMILIAR WITH HOW THIS COMMISSION PROPOSAL WORKS, BUT I OBVIOUSLY, WOULDN’T THINK IT WOULD BE BINDING.

QUINTANILLA: FINALLY, I'M TOLD CHRIS VAN HOLLEN IS PLAYING YOU IN THE BIDEN DEBATE PREPS. WHAT DOES IT TAKE TO PLAY PAUL RYAN?

RYAN: I'VE KNOWN HIM REALLY WELL FOR A LONG TIME. I'VE BEEN THE HEAD OF THE BUDGET COMMITTEE FOR MY PARTY FOR SIX YEARS. CHRIS HAS BEEN THE HEAD OF THE DEMOCRATIC SIDE OF THE BUDGET COMMITTEE SO WE'VE DEBATED QUITE A BIT OVER THE YEARS. WE'RE PERSONAL FRIENDS, WE JUST DON'T AGREE ON A LOT OF POLICY ISSUES. BUT PERSONALLY, WE GET ALONG QUITE WELL.

QUINTANILLA: CONGRESSMAN, APPRECIATE YOUR TIME. I'VE ASKED THEM TO BUMP OUT WITH "STAIRWAY TO HEAVEN." I DON’T KNOW IF THEY QUEUED IT UP BUT ANYTIME YOU'RE READY TO COME BACK ON "SQUAWK," WE'D LOVE TO HAVE YOU.

RYAN: BEST SONG OF ALL TIME IN ROCK 'N' ROLL.

QUINTANILLA: PAUL RYAN, VICE PRESIDENTIAL CANDIDATE, CONGRESSMAN FROM WISCONSIN, CONGRESSMAN, THANKS SO MUCH.

RYAN: YOU BET, GOOD TO SEE YOU, CARL.