Nation must encourage growth, Indiana Gov. Mitch Daniels tells Club audience

Government programs should be limited, but excellent, Indiana Gov. Mitch Daniels said a National Press Club Book and Author event Monday.

Skepticism of big government should not mean contempt for all government, Daniels said during a discussion of his new book, "Keeping the Republic: Saving America by Trusting Americans." The federal government should spend less on non-essential government programs to save money and eliminate the need for new taxes.

"In Indiana, we adopted a belief in a limited sphere of government, but tried to make sure that what we attempted within that limited sphere was excellent," he said.

Daniels, a Republican, drew on Ben Franklin as inspiration for the title of his new book, said Book and Author Committee member Jan King in her introduction. Franklin, when asked what kind of government the Constitution created, said, "A Republic. If you can keep it."

"I am alarmed for the first time in my life about future American prospects---whether we can maintain a proper standard of living and Americans’ confidence," Daniels said.

Daniels said President Obama’s plan to raise tax rates will hurt growth and translate to increased debt over the next decade.

The nation’s ability to overcome its problems before they overcome us is “the trial of our democracy," he said.

Daniels said he has faith in American ability to meet the challenge, a trust he developed as a governor by staying in private homes, riding around the state on his motorcycle and keeping in contact with the citizenry.

“If we are going to summon the best in the American people (to meet the nation’s problems), we ought to assume the best about them," he said.