I thank the gentleman from Arkansas for yielding his time. I also thank him for his great leadership with the Blue Dog Coalition and making sure that our message of fiscal discipline does get out. I would like at this time to take a little…
I thank the gentleman from Arkansas for yielding his time. I also thank him for his great leadership with the Blue Dog Coalition and making sure that our message of fiscal discipline does get out.
I would like at this time to take a little history lesson about how we have gotten to the point where we are right now with a $9 trillion deficit. That figure is hard to believe, $9 trillion, our Nation's government is in debt.
Back during the 1980s, there was a Republican President who came up with an idea called supply-side economics. During the campaign of the 1980s, that candidate was criticized for this economic policy. It was claimed to be very risky.
As a matter of fact, one of the candidates that was running on the Republican side called it voodoo economics. Basically, what it was in the 1980s was a policy that would dramatically cut taxes with the idea that if we cut taxes dramatically, there would be more money that would come to the coffers of the United States Government and deficits would no longer be around.
The trouble with that is that it did not work in the 1980s. I have to say that the Democrats who were in the majority in the House and the Senate that time endorsed this concept and passed this piece of legislation into law.
So taxes were dramatically decreased, military spending went dramatically up, and deficits went dramatically up during the 1980s.
During the 1990s, this policy was rejected under a Democratic President who was elected. He was of the opinion that we needed to get our fiscal house in order. And so during the 1990s, the supply side economics theory was rejected and PAYGO rules were put into effect in the 1990s.
What happened? Those PAYGO rules worked, and around 2000 and 2001 our government, for the first time in a very long period of time, actually produced surpluses. And it was projected that these surpluses would amount to trillions of dollars, projected out in the 21st century.
Then we had another election, and the old policies of the 1980s were reinstated again, those policies in the 1980s called supply side economics that caused huge deficits. PAYGO rules were thrown out the window again, not reinstated.
And here we are again, as Mr. Davis from Tennessee has already indicated, during that time period where PAYGOs were thrown out the window and supply side economics were reinstated, we've increased our deficit by $3 trillion, and now we're facing a $9 trillion deficit. The second largest expenditure in our Nation's budget is the interest that we pay on that deficit. This has got to stop. The gentleman from Arkansas earlier said, this is crazy, and it is crazy. When the Chinese Government is buying our debt, buying our paper, loaning us their money, affecting our foreign policy, we have to get our fiscal house in order.
And I'm so proud that I'm a member of Blue Dog Democrats. I joined the Blue Dog Democrats back in 1998 when I first got elected. I served three terms, and then the good people from southern Indiana decided I needed a little bit of a rest, and I took that rest for 2 years, got reelected 2 years later, and immediately joined the fiscally responsible group called the Blue Dog Democrats, and I'm glad that I am.
Now, Blue Dogs just don't bark. They also put into place policy. And one of the things that we have done is introduce the Fiscal Honesty and Accountability Act. What does the Fiscal Accountability Act do? It reinstates statutorily the PAYGO rules that have led us out of this debt in the past and into surpluses. They were instrumental in producing the surpluses that we enjoyed in the late 1990s and the early 2000s.
This bill also closes a loophole in current law that allows almost any spending to be designated as emergency spending.
Now, for those who are listening on C-SPAN, what does that mean? You know, we can pay PAYGO rules in the House, and all PAYGO rules means is if we're going to spend extra money or we're going to reduce taxes, you've got to figure out a way to pay for it. It's pretty pure and simple, but it requires discipline.
One of the ways that Congress gets around the PAYGO rules is by enacting spending measures. For example, we may have an emergency spending measure on the war in Iraq.
Well, Members of Congress from both parties use that spending measure to insert other nonrelated emergency spending measures into the emergency spending in order to get around the PAYGO rules. The Fiscal Honesty and Accountability Act will stop that practice; and it's the Blue Dogs who are leading the charge and making sure that we stop playing games with our Nation's budget, because we really do have to get serious here now about doing something about our Nation's budget. It's swirling out of control. I think most people are shocked when they learn that the Chinese Government is buying a lot of our debt in this country, affecting our foreign policy. This kind of practice needs to stop. And the Blue Dogs are leading the charge in making sure that it does get stopped by passing the Fiscal Accountability and Honesty Act.
Now, other things that we are doing, we're offering a balanced budget amendment and we're trying to pass a resolution strengthening the budget process. When I talk about the Blue Dogs are not just about bark but about policy as well, I mean it. We're putting our actions where our words are, and we're here tonight to talk about that and to ask the Congress to pass the Fiscal Honesty and Accountability Act, which implements PAYGO rules and stops the clowning around with emergency spending measures.
So, Mr. Speaker, I am delighted to have this opportunity to join my fellow Blue Dogs to talk about fiscal responsibility. I applaud the leadership of the Blue Dogs on this particular issue. We're going to keep on barking. We're going to keep on implementing policy. I thank the gentleman from Arkansas for yielding me this time, and I yield back my time to him.