Madam Speaker, pursuant to clause 1 of rule XXII and by direction of the Committee on Appropriations, I move to take from the Speaker's table the bill (H.R. 1) making supplemental appropriations for…
Madam Speaker, pursuant to clause 1 of rule XXII and by direction of the Committee on Appropriations, I move to take from the Speaker's table the bill (H.R. 1) making supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization, for the fiscal year ending September 30, 2009, and for other purposes, with a Senate amendment thereto, disagree to the Senate amendment, and agree to the conference asked by the Senate.
Madam Speaker, for purposes of debate only, I yield 30 minutes to the gentleman from California (Mr. Lewis). All time yielded during consideration of the motion is for debate only.
Madam Speaker, I yield myself 1 minute.
I think the need for this action is obvious. The country is in trouble economically. We need to put an economic recovery package in place just as soon as possible. Going to conference is the next step to making that happen, and I would urge support for the motion.
I reserve the balance of my time.
I continue to reserve the balance of my time.
Madam Speaker, I continue to reserve my time.
I have one speaker, myself.
Madam Speaker, I don't intend to take a lot of time, but I do want to respond to some of the claims and comments made today in opposition to this legislation.
First of all, I do want to thank the gentleman from Oklahoma (Mr. Cole). Like myself, he is a committed partisan, and I think, like myself, he is also an institutionalist, and while I recognize that he very much differs with the product that we have before us, I appreciate the fact that he did indicate that the committee consideration of this bill was an open process.
Let me simply respond to a few of the comments made by my friends on the other side of the aisle.
We're told by numerous speakers that this package is too large. In fact, I fear that it may be too small. We can't determine the proper size of any economic recovery package unless we have some understanding and some anticipation of the size of the problem that it is meant to alleviate.
My old friend Archie the Cockroach, for instance, in talking about the need for proportion said once, In life you always need proportion. ``Of what use is it for a queen bee to fall in love with a bull?''
I think that if we have large and serious economic crisis coming at us, that response needs to be large, bold and aggressive, and that's what I believe the President's package is.
Now, this package is $820 billion. It represents less than 6 percent of our total gross domestic product spread over several years. I would point out that when World War II hit us governmental spending went from 10 percent of GDP in 1940 to 44 percent in 1943 and 1944, a huge percentage, an increase of 34 percent. That was to save the country in time of war.
I would submit that the challenge to our economy today is every bit as large as the challenge of World War II was to this country in another time because we have been faced with the prospect of virtually total collapse of the financial sector of this economy.
Under the previous President, President Bush, when the crisis finally hit, this Congress gave him the benefit of the doubt, and even though we, many of us, had strong misgivings about the wisdom of the proposal, and even though many of us were frustrated by the fact that Secretary Paulson would not provide sufficient relief on the mortgage front, we nonetheless supported the President's request because we were told that the alternative was to see an absolute freeze up and collapse of the credit markets in this country, with disastrous results. Not just for those Wall Street wizards who helped cause the problem, but would also have resulted in the crushing of everybody else below them on the economic ladder as they fell from their Wall Street perches.
And now the President is asking us to do two additional things. His Secretary of the Treasury today is scheduled to explain to the country what their second step will be with respect to trying to stabilize the financial system in this country and, at the same time, trying to do something to deal with the horrendous collapse of housing prices and the horrendous collapse of people's equity in their homes. And then the next thing the President wants us to do is to pass this package.
Now, this package, as I've said, is a huge, huge endeavor. It is certainly of the size that would have been shocking just a few months ago, but it's responding to a problem just as large, and I want to show you what we're trying to respond to.
This chart shows projected unemployment levels from now through 2
years from today. It was presented by Mr. Mark Zandi, one of the principal economic advisers to Senator McCain in the last campaign. He represents Moody's Economy.com. The red bars indicate what he expects to happen to the unemployment levels if we do nothing. What he expects is that unemployment will rise from over 7 percent, slightly over 7 percent where it is today, to almost 11 percent and perhaps even higher 2 years from now.
In other words, he sees the economy sliding ever more deeply into the abyss over the next 2 years if we do nothing.
The blue bars represent what he thinks the unemployment levels will be if we do pass a $750 billion economic recovery package. Even then, he projects that by the second quarter of--not this year, but next year--he projects that unemployment will still have risen to around 9 percent.
As the President said last night, what that means is that no matter what we do, we are going to have a very, very rough year. And it is his hope and it is the expectation of most economists that if we pass this package, or something close to it, then we will be able to mitigate the rise in unemployment, that we will be able to reduce the expected levels of unemployment by at least 2 percent. And we hope what that will do is to begin to bring additional revenues back into the Treasury and, at the same time, in combination with the other actions of the President, restore a modicum of public confidence in the economy. Between those two actions, get the economy moving again, slowly but surely.
So this package attempts to use the only tool that we have available to get the economy going again. Normally, when we run into economic trouble, what we would do is rely on monetary policy in order to get us out of it. The problem is we have already fired that gun. The Federal Reserve has already brought interest rates down to record low levels. So we don't have that bullet in the gun any more.
About the only bullet left that we can fire is one of fiscal stimulus. And that is what this bill tries to do. It tries to make up for the fact that over the next 2\1/2\ years we are expected to have a $2.5 trillion hole in the economy because of the collapse of consumer purchasing power. And, as a result, what the President is trying to do is to partially fill that economic hole to mitigate the expected steep rise in unemployment.
And so the President is trying, in essence, to create or preserve about 4 million jobs by providing additional funding to produce clean, efficient energy alternatives. He wants to provide more jobs by trying to transform our economy through beefing up science and technology. He wants to provide more jobs by modernizing roads, bridges, transit, and waterways, to deal with the crumbling infrastructure of the last 30 years.
He wants to preserve hundreds of thousands of jobs by helping States to maintain their education budgets as their own revenue sources collapse so that we don't have to lay off school teachers; so we don't have to lay off janitors; so we don't have to lay off speech therapists and guidance counselors; so that we don't have to lay off cops; so that we don't have to lay off park workers.
In addition, he wants us to provide tax cuts in order to enable the middle class to finally get a little better deal on the tax side of the ledger. He wants to help workers hurt by the economy by providing additional help for those who have lost their jobs by way of an extension and an expansion of unemployment compensation. And he also wants to help those who have lost their health insurance by providing greater access to Medicaid and by providing some help to keep up with what is called their COBRA payments.
So that is what this package is all about. It is not perfect by any means. And we have substantial, but I hope not overpowering, differences between us and the Senate.
And so the purpose of this motion is to simply have us get on with it. To take the next step we know that we have to take if we are going to do something constructive to move this country forward. We can all debate the fine points of this package until the cows come home, as they say in my area of the country. But the fact is, sooner or later we need to take heed and remember what Franklin Roosevelt said in a not very different situation years ago when he said, ``We need action, and action now.''
This package is meant to begin that process. I would urge Members to support the motion.
Madam Speaker, I yield back the balance of my time, and I move the previous question on the motion.
The previous question was ordered.
Madam Speaker, I yield myself 4 minutes. Madam Speaker, we have often been accused of trying to push this bill rapidly through the Congress. In fact, we have been trying to push a recovery package through this Congress for the last 150 days.
We began this process in September when we tried to persuade the previous Bush administration of the necessity to support an economic recovery package. That White House would have none of it. Nonetheless, we put together a package--very modest in size compared to this one-- trying to look for anything that President Bush would sign, and that product was well known.
It has evolved gradually since that time as the economy has descended further and further and further into a recessionary and deflationary spiral. We now have had this legislation in both the House and the Senate appear on the Web.
Our committee, as soon as we produced the final product in the House, placed the bill on the Web. And the Senate placed the Nelson amendment, which is the amendment that they are now operating on, they placed it on the Web as well. So I think both Chambers have demonstrated that they are trying to do every bit that they can to provide transparency for the process.
I have no objection to what the language in this motion to instruct conferees says. I do have one caution: every day that we do not take action, an additional 20,000 Americans lose their jobs. And that is accelerating.
I don't intend to go anywhere. The Speaker has made it quite clear that this Congress is not going to go home for its Presidents Day recess until this package is finished. So we are scheduled to adjourn for that recess on Friday. But I have no problem sticking around for as long as it takes to get the job done.
I would point out that there's considerably less to this proposal than meets the eye because all it does is to require the text of the proposal to be available to the managers of the bill. And I suspect that the managers, who will be participating in these discussions, will know literally from moment to moment exactly what it is that they are doing.
I am sure that each and every person appointed to be managers on both sides of the aisle will be reasonably competent so that they can do that. So I would simply point out the effectiveness is simply to delay consideration of this legislation when it does come back from conference. If that is what Members want to go on record as supporting, I have no objection whether this passes or not. I will be around as long as it takes; and, frankly, I expect it is going to take a whole lot longer than just this week.
I reserve the balance of my time.
I yield myself 1 minute.
Madam Speaker, I yield myself this time to simply observe that my friend from Texas is wrong in one respect. The gentleman suggested that no Republican amendments were adopted on floor consideration of the bill. The Platts amendment was adopted; the Shuster amendment was adopted. The last time I looked, both of those gentlemen were Republicans.
I would also point out that in the committee consideration of the bill, more Republican amendments were adopted, much to my consternation, than were Democratic amendments. I would also point out, in our hearing in the full committee we did have a hearing on the need for an economic recovery package. When we held that hearing, I am sorry that only three members of the minority attended because the minority members were asked by the ranking member of the committee to boycott the hearing.
I yield myself 30 seconds to simply again correct the gentlewoman. The fact is that the amendment that related to the process by which highway projects were funded and approved was not taken out in the Speaker's office; it was taken out on the House floor when, on a bipartisan basis, Republican and Democratic members of the T&I Committee wanted to see that changed.
I reserve the balance of my time.
I yield myself 1 minute.
Madam Speaker, the last people in the world I will take lectures from on fiscal responsibility are those Members of this House who voted for the Bush economic programs that borrowed $1.2 trillion and then took us into a war which, before it is over, will cost us another at least $1.5 trillion.
Secondly, I would simply answer the gentleman's question when he asks who is going to pay. I would ask, who is going to pay if we do nothing and do not implement this package? I would submit the people who will pay will be every American who loses his or her job, every businessman who loses his ability to get credit because of the constriction of the economy; every student who will have to quit college because his family cannot afford to help him go.
I yield myself an additional 1 minute.
And every person who loses one-third to one-half the value of their 401(k)s because of the continuing unraveling of the economy.
That is who will pay.
We need to stop the political rhetoric and recognize this problem is serious enough that we need to rise above our usual recitation of trivia and deal with the major problems facing this country. And we can't do that without taking action on this package.
I yield myself 1 minute.
Let me simply say in response to the gentleman's comments, that indeed I believe that Republican ideas have been included. I have had dozens of conversations with members of the minority side of the aisle who would talk to me about this item or that item that they thought either ought to be in or be out of the package. And we've responded in numerous instances. I would also point out that the President himself has pointed out that when he first talked to Republican leadership about what ought to be in this package, they told him there ought to be a healthy dollop of tax cuts in the package, and that when he produced the package, which did contain significant tax cuts, a number of Republicans then indicated that they were, in fact, pleasantly surprised by the fact that the President had done that.
Apparently, however, since then, they have decided to move the goalpost. The President can't do much about that. And I can't do much about that. I suspect that the people moving the goalposts are the people who might consider moving it back again.
I yield myself 1 minute.
Madam Speaker, I hope that the Thursday or Friday that the gentleman is talking about, I hope he recognizes that it's likely to be next Thursday or Friday, not this one. Secondly, I must say I am amused when I hear the reference to ``socialized medicine.'' Does anybody really believe that it's socialized medicine if we are putting $2 billion in this legislation in order to help change our medical records from paper records to computerized records so we can reduce the number of mistakes that are made in hospitals and create more efficiency and save money in the health care area? With the rising costs of health care nationwide, shouldn't we be looking for ways to make the system more efficient to save money? That is what that $2 billion does, despite somebody's desire to look for ghosts.
Madam Speaker, I yield 5 minutes to the distinguished chairman of the House Ways and Means Committee.
(Mr. RANGEL asked and was given permission to revise and extend his remarks.)
Has the gentleman from California yielded back his time?
Just one.
How much time do I have remaining?
I yield myself 5 minutes.
Madam Speaker, this bill is more than 150 days late. And every day that we delay, if you take a look at what's happening in the economy, an additional 20,000 people are losing their jobs.
So we've had plenty of time to talk about our philosophical differences. We've had plenty of time to talk about our different views of the viability of the market. We've had plenty of time to talk about our views of the role of government.
But people back home are not interested in our theoretical or our philosophical views. They're interested in whether or not we have a clue about what is happening on Main Street America, what is happening in businesses all over this country, what is happening when metal working companies and paper mills and dozens of other businesses lay off workers every day, every hour. And they want to know whether we can end the speechifying long enough to actually do something that will help them. That's what this is about.
So we can argue about one-tenth of 1 percent of this bill, whether we like it or not. The fact is that some of the same people who were only too willing to vote for $1.2 trillion worth of tax cuts paid for with borrowed money under President Bush, the same people who were willing to allow us to go to war and spend over $1 trillion in a war that will plague us for years, these are the same people who supported economic policies that, essentially, resulted in the average working family having flat wages for the last 8 years. These same people are now telling us, ``Oh, don't do this. We've got a better idea.''
Well, we've tried those ideas for 8 years, and what has been the result? The result has been that, for the last 8 years, over 94 percent of the economic growth in this country, over 94 percent of the economic growth of this country went into the pockets of the wealthiest 10 percent of American families. And so, the other 90 percent were struggling to get table scraps.
And how did they respond? They responded by borrowing. They borrowed more for their houses. They borrowed more to send their kids to college. They borrowed more to pay for health care and a lot of other things. And then, the housing bubble and the Wall Street bubble burst and they got hit with the results. And so, now they are suffering for the bubbles that we've had in the economy the past 8 years. And they're looking for somebody to recognize what's happened to them and looking for somebody who will help to actually do something about the fact that they're losing their health care, losing their homes, losing their jobs, losing their ability to send the kids to college, and losing hope.
This package, by itself, will not solve any of those problems. All it will do, if we can finally produce it, all it will do is to minimize the damage and to try to inject an additional source of consumer spending in the economy, in hopes that we can begin the process of eventually turning this economy around. That's what this is all about.
We've had our time for debates. It's been a long time now, over 150 days, as I said. The time to move is now.
General Leave
Madam Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the motions on H.R. 1 considered today.
Madam Speaker, I yield back the balance of my time.