I thank my colleague from California for yielding time, Mr. Speaker, and I yield myself such time as I may consume. I rise in opposition to this closed rule which rewrites H.R. 5618, the Restoration…
I thank my colleague from California for yielding time, Mr. Speaker, and I yield myself such time as I may consume.
I rise in opposition to this closed rule which rewrites H.R. 5618, the Restoration of Emergency Unemployment Compensation Act and provides martial law/same-day authority for any resolution reported from the Rules Committee through Saturday, July 3.
This bill has been rushed through Congress, avoiding committee action. When the Democrats, who are in charge, brought the bill up before the House for consideration on June 29, it failed to garner the necessary two-thirds majority required for passage. There was bipartisan opposition to this bill.
But why are our colleagues rushing this through? The Senate is not meeting, except to honor Senator Byrd. They know the bill is going nowhere. They say ``extraordinary circumstances require extraordinary measures'' and that the economic crisis is going to get worse if we don't pass this. But this bill is going nowhere, and they know it. They want to be able to go home and say, We voted to extend unemployment benefits and that Republicans voted ``no.''
Well, Republicans want to reduce the deficit; and if the underlying bill had been offset with reduced spending elsewhere, Republicans would have supported it. But it is not. Instead, Democrats are relying on budgetary tricks to avoid their own PAYGO rules. They are waiting until the last minute to address important issues and labeling the cost as ``emergency spending'' so they don't have to account for it in terms of our spending rules.
Frankly, the need for this bill in the first place is a direct admission of the failure of the Obama-Pelosi policies because the many spending bills, which
have already been passed, have failed to create the jobs promised by Speaker Pelosi and President Obama. So they're admitting by saying, We have to extend unemployment benefits, that all the spending has failed. Economists on both sides of the political spectrum are expressing concern over the fiscal health of the U.S. Government. Yesterday, CBO said, ``Our debt is now 62 percent of GDP, up 20 percent in 2 years''-- the 2 years when Democrats controlled all of Congress and had a Democratic President--and it's the ``highest since World War II.''
Congress cannot continue this spending spree. We're simply living beyond our means, and I fear the consequences of our actions are not far off.
Here are a few lines from an article written by John Goodman on June 28 entitled How Bad is Our Fiscal Crisis?
``Already, we've seen some local governments declare bankruptcy. Expect more of that. In the next several years I believe some very large cities are going to announce they cannot pay their bills. State governments will be next. Whereas local governments can declare bankruptcy, State governments can only default. A default by the State of California seems almost inevitable.
``But is it conceivable that the U.S. Government could default? Actually, yes. Every projection shows the gap between spending and tax revenues rising through time.
``Two years ago the first of the baby boomers started claiming early retirement under Social Security. Next year they'll start signing up for Medicare. Before they're through, 78 million people will quit working, quit paying taxes, quit contributing to our retirement system and start drawing benefits instead.''
That's the end of Mr. Goodman's quote.
The underlying bill adds $34 billion to our ever-increasing debt. When Democrats passed their only unemployment insurance extender bill that was offset by other spending cuts last November, the administration hailed it as a ``fiscally responsible approach to expanding unemployment benefits,'' adding that ``fiscal responsibility is central to the medium-term recovery of the economy and the creation of jobs.''
The cost of extending the Democrats' unemployment insurance policy is growing because their failed stimulus bill has not created the promised jobs. Democrats predicted their trillion-dollar 2009 stimulus bill would create 3.7 million jobs. Instead, the debt has grown by $2 trillion, and nearly 3 million more private sector jobs have been eliminated since then.
Democrats promised unemployment would remain under 8 percent if their stimulus passed. Yet it remains stuck near 10 percent today. A total of 48 out of 50 States have lost jobs since the stimulus passed.
However, our colleagues keep spending and keep ignoring economic realities. That is totally irresponsible.
I reserve the balance of my time.
Mr. Speaker, my colleague from California may have been trying to be a little humorous in his comments, but job loss in this economy is very serious business.
The American people are asking this Congress controlled by the Democrats, Where are the jobs?
I yield 5 minutes to my distinguished colleague from Indiana (Mr. Pence).
(Mr. PENCE asked and was given permission to revise and extend his remarks.)
I yield the gentleman 1 additional minute.
Mr. Speaker, I yield 4 minutes to the distinguished ranking member of the Rules Committee, Mr. Dreier.
(Mr. DREIER asked and was given permission to revise and extend his remarks.)
I yield the gentleman an additional 30 seconds.
Mr. Speaker, I yield myself 5 minutes.
Our colleagues across the aisle are saying yes, what the American people want is to see jobs and they keep asking where are the jobs. We keep being told that these failed policies passed by this administration and this Congress
are going to produce jobs. That is not the case.
They like to tout the May employment report issued by the Bureau of Labor Statistics which appears to be positive with the addition of 431,000 new jobs. However, 412,000 of those new positions are for temporary government census workers. In other words, 96 percent of May's job growth will be eliminated in just a few weeks. That's almost half of the jobs that my colleague from New Jersey wants to point out.
The June unemployment rate we believe, as my colleague from California said, will edge up to 9.8 percent from 9.7 percent in May. But they keep bragging about how effective they've been at providing jobs.
The bottom line is, since February 2009, with Democrats in charge of Congress and the White House, more than 3.3 million jobs have been lost in the private sector. The Federal Government has gained more than 590,000 jobs over the same period. I hate to tell you, but the government jobs don't provide a viable solution in helping get the economy back on its feet. Government jobs are supported by tax dollars, and that tax burden is ultimately borne by the entrepreneurs and small businesses that are the engines of economic growth. Further strain on these employers will not help facilitate a healthy economy over the long term.
Now, my colleague from New Jersey just talked about a myth that our colleagues continue to perpetuate, which is about how many jobs were lost in the Bush administration and about how many jobs were gained.
Mr. Speaker, I would like to insert into the Record a piece by Keith Hennessey.
This is a fairly new Democratic claim about job creation. Our colleagues are really searching for ways to justify their terrible policies; but as Mr. Hennessey points out, the Democrats are picking their time frames very carefully. They ignore the 4 million jobs lost during the first 11 months of a Presidency that is, so far, 16 months old. What they don't point out is the fact that President Bush inherited a recession and that their statistics, again, are totally unfounded.
If you will look at the Bureau of Labor Statistics' payroll survey that was done in 2001 to mid-2003, you will see a steady employment decline, followed by a steady, strong, and sustained period of job growth for almost 4 years.
This is the chart put out by Keith Hennessey. He notes that, in the 46 months that we had job growth in the Bush administration, it is the second longest in recorded history for sustained job creation in the U.S. More than 8 million jobs were created during this period. A mild recession began in late 2007--who was in charge of the Congress at that time? The Democrats. They always fail to mention that--followed by a severe contraction in the second half of 2008 and continuing into the Obama administration.
So this chart shows it very well, and it is very objective, Mr. Speaker. It isn't opinion on my part. It's the numbers. As I said, our colleagues are very, very selective in how they make the comparison.
[From Keith Hennessey.com, June 8, 2010]
The New Democratic Claim About Job Creation
A new claim about job creation appears to be bubbling up
through the Democratic ranks. Here is the clearest statement
of that claim, from Rep. Debbie Wasserman Schultz (D-FL) on
Stuart Varney's show:
On the pace that we're on, with job creation in the last
four months, if we continue on that pace, and all the leading
economists say that it is likely that we will, we will have
created more jobs in this year than in the entire Bush
Presidency.
Ms. Wasserman Schultz is picking her timeframes carefully,
in particular by ignoring the four million jobs lost during
the first 11 months of a Presidency that is so far 16 months
old.
Even today, after five straight months of job growth, three
million fewer people are working than when President Obama
took office. That's hardly something to brag about.
And looking just at last month's strong net increase of
431,000 jobs, we see that nine out of ten net new jobs were
temporary government jobs for census takers. We all hope the
pace of private job creation accelerates, but it's too soon
to declare this a strong and consistent employment recovery
or to project its trend into the rest of the year.
Let me point out one other chart that has been put together, and that is to compare the unemployment over time between administrations, or among administrations, using the average unemployment rate. You will see it is very low under President Johnson at 4.2 percent. Under President Eisenhower, 4.9 percent. The average under President Bush 43, 5.3 percent. The average under President Obama, 9.5 percent.
This is what the American people are interested in. They are asking: Where are the jobs? Why do the Obama administration and Pelosi policies continue to have us lose jobs? Unemployment is at almost 10 percent.
Mr. Speaker, it is not we Republicans who are rewriting history. It is our colleagues on the other side of the aisle.
I will point out once again that Republicans were in charge of the Congress during 6 of the 8 years of Mr. Clinton's administration, and that is when we had the job growth--when Republicans were making the policy here. Mr. Obama did promise to create the jobs. He promised that unemployment would not go above 8 percent. He made lots of promises. As far as I've been able to see, none of the good ones have been kept.
Mr. Speaker, I yield 3 minutes to my distinguished colleague from California (Mr. Daniel E. Lungren).
Mr. Speaker, I yield the gentleman 1 additional minute.
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, Republicans want to help the long-term unemployed, but agree with the American people that new spending needs to be offset by cuts otherwise.
During the Rules Committee markup of the Democrats' H.R. 5618, Mr. Heller from Nevada offered a Republican amendment in the nature of a substitute which was not made in order by a vote of two to seven. This fiscally responsible alternative would have extended unemployment insurance, COBRA, and the current poverty guidelines until September 25th, and paid for it with unused funds from the failed stimulus bill.
Again, the bill before us extends Federal unemployment benefits only through November 2010 and is not paid for, adding its $34 billion price tag to our $13 trillion debt.
Democrats claim their bill satisfies their PAYGO requirements by declaring it is spending in an emergency. But that is simply an excuse for not paying for it. Let me tell you how an emergency is defined in their rules.
In general, the criteria to be considered in determining whether a proposed expenditure or tax change meets an emergency designation includes, one, necessary, essential, or vital, not merely useful or beneficial; two, sudden, quickly coming into being and not building up over time; three, an urgent, pressing, and compelling need requiring immediate action; four, unforeseen, unpredictable, unanticipated, and not permanent, but rather temporary in nature.
We have known about this for a long time. This does not meet the criteria for emergency spending. Declaring it emergency spending is just a gimmick. It is a way to not have to comply with PAYGO. In fact, there are 160 spending programs already exempt from PAYGO or operating under special rules.
You know, just because our colleagues say that it is so, doesn't make it so. Saying that it is PAYGO compliant doesn't mean that there is an offset to it. So our colleagues are very clever in the way they say things.
President Obama said in February 2010, Now Congress will have to pay for what it spends, just like everybody else. After a decade of profligacy, the American people are tired of politicians who talk the talk but don't walk the walk when it comes to fiscal responsibility.
Both the President and our colleagues across the aisle are talking out of both sides of their mouths. They go out and announce that they are making something PAYGO compliant, but they don't. Rather than face facts and support sound economic policies like lowering taxes and reducing regulatory burdens, the Democrats continue to advocate misguided policies that expand the government's control and increase the Nation's debt.
This is not the way to create jobs. The American people continue to ask the question, where are the jobs? Mr. Speaker, this bill is not going to create the jobs, and I urge my colleagues to vote ``no.''
Mr. Speaker, the President has said that every economist that has looked at his stimulus plan and all the plans that he has put forth agree with him.
But let me quote Carnegie Mellon economist Allan H. Meltzer, in an article in the Wall Street Journal op-ed June 30: Why Obamanomics Has Failed. ``The administration's stimulus program has failed. Growth is slow and unemployment remains high. The President and his friends and advisers talk endlessly about the circumstances they inherited as a way of avoiding responsibility for the 18 months for which they are responsible. Two overarching reasons explain the failure of Obamanomics. First, administration economists and their outside supporters neglected the longer-term costs and consequences of their actions. Second, the administration and Congress have, through their deeds and words, heightened uncertainty about the economic future. High uncertainty is the enemy of investment and growth.''
Economists get it, Republicans get it, and the American people get it. It's high time the Democrats wake up to the fact that the stimulus isn't working as promised. We need to cut government spending, repeal nonsensical regulations, and lower taxes. We should not be passing this extension without an offset in spending.
I urge my colleagues to vote ``no'' on the rule, and ``no'' on the bill. Let's answer the question the American people are asking, Where are the jobs? Let's put in policies that really create jobs.
With that, I yield back the balance of my time.