Mr. President, I listened with some interest to my colleague and his description of the bankruptcy bill. I have felt for some long while, and have voted that way in the Senate, that the pendulum swung a bit too far in bankruptcy and needed…
Mr. President, I listened with some interest to my colleague and his description of the bankruptcy bill. I have felt for some long while, and have voted that way in the Senate, that the pendulum swung a bit too far in bankruptcy and needed to be adjusted some. I believe the last time we voted in the Senate was 5 years ago.
But I am concerned there is an effort on the floor of the Senate to turn back every single amendment that is being offered, believing that the only body of thought that has any merit at all is that which came out of the committee; that all of the proposals that are offered on the floor of the Senate somehow are without merit; that the adjustments or the approaches that might be helpful to some people who are more vulnerable are provisions without merit.
They may find, it seems to me, if they turn back all of these amendments, that there might not be so much support for the bankruptcy bill as there has been in the past.
Let me talk for a moment about this issue of credit cards. My colleague just spoke about the credit card companies. First of all, let me admit, I think there have been abusive bankruptcies. There is no question about that. It is one of the reasons I believe the pendulum was swung a bit too far and probably should be brought back a bit. But there are two sides to all of this as well.
We have credit card companies these days that blizzard this country with credit cards, wall to wall. Go to a college campus and take a look at every mailbox. Credit card companies want to offer credit cards to people who have no income and no jobs. They say: Take our credit card. Take a second credit card. Take a third and a fourth.
My son was age 10 when he got a preapproved credit card, a submission from Diners Club. He was 10 years old. So I called Diners Club. I said: It's a good thing I got ahold of it before my son did. He would have probably been in France.
I guess a 10-year-old couldn't travel. But the fact is, he probably would have been interested in doing something with that credit card.
They said: Well, it was a mistake.
It was not a mistake. And it is not just Diners Club. Go through the whole list of credit cards. It is not a mistake that they are sending credit cards to people who have no income, people who have no jobs, people who do not have a prospect of income. Do you know why it is not a mistake? Because they take these giant mailing lists and they ship these preapproved credit cards to everybody, understanding that some people are going to get them who should not get them, and they won't pay, and so they will just figure out how to deal with all that with higher charges to everybody else, and at some point they will get relief from Congress, even, on bankruptcy issues.
It is not just credit cards. Go down the street someday and see the picture window that beckons you, in big red color type, that says: Hey, come over here. Buy our product. We'll give you a zero-percent interest rate until next August. Before you get home, we will send you a rebate check. Come on, buy it. It doesn't matter whether you can afford it or not, buy our product.
Turn on the television set in the morning and hear the advertisement from the company that says: Bad credit? Come and see us. You have not been paying your bills? You have a problem on your credit report? Come and see us. We have credit available for you.
So there are two sides to all of this as well. Those who are blizzarding and papering this country with credit cards and debt, those who know better, even as they do it, ought not come to this Congress and say: Well, now we have some problems. Now we have some defaults. We want you to tighten the bankruptcy laws.
I think if the majority decides that in every circumstance every amendment that is going to be offered in the Senate on these issues is going to be turned away, perhaps they will not have the robust vote on bankruptcy reform they expect.
Social Security
Mr. President, I think this issue of bankruptcy in some ways ties to another very significant issue that we are debating in the Congress and will be debating across the country for months; this issue of Social Security. There are so many millions of Americans--tens of millions of Americans--often women, often in their seventies, eighties, and nineties, often living alone, whose only source of income is a Social Security payment each and every month. It is the difference between their ability to live, to eat food, to buy prescription drugs, to pay rent, and their not having the ability to do those things.
You go back to 1935, when Franklin Delano Roosevelt signed the Social Security bill. Fifty percent of America's senior citizens who reached retirement age were living in poverty. In this great country of ours, one-half of our elderly were living in poverty.
What a wonderful country this is in which to live. There is no question about that. We share this globe with 6 billion people--6 billion of them. It is only us who have the opportunity to live in this country. Six billion people are our neighbors. One-half of them have never made a telephone call. One-half of them live on less than $2 a day. A billion and a half people do not have access to clean, potable water every day. We are lucky enough to live here.
But just think, 70 years ago, in this great country, as we were building and creating and expanding our country, one-half of the people who reached retirement age were living in poverty. They helped build this country. They worked hard. They went to work every day. They did not complain. They did the best they could and reached that period of their lives where they had a declining income situation because they were not working anymore. They were retired and living in poverty.
Well, this country did something about that, and it ought to be proud of it. Franklin Delano Roosevelt signed a bill called Social Security. Yes, the same people who are now skeptical about Social Security back then attacked him unmercifully. Social Security was decried as creeping socialism. It was decried as Government interference. The fact is, the Social Security Program created an insurance program that all workers paid into for the purpose of providing a stable insurance policy upon retirement that would always be there, a guaranteed benefit upon retirement that you could count on. And like that, the poverty rate among America's senior citizens went from 50 percent to now slightly less than 10 percent.
This program has lifted tens of millions of Americans out of poverty. It has worked, and worked well. And as this Congress now talks about bankruptcy legislation, let us talk about the issue of that which has prevented so many people from having to file bankruptcy, and that is the Social Security Program that has provided stable, predictable, consistent, and dependable revenue from an insurance program when people retired from their jobs. It has worked, and worked well for over 70 years.
There were some who did not like it in the 1930s and 1940s. They were aggressively opposed to Social Security. Their ideas live on even today. They would like to take the Social Security system apart because they believe it is, in the words of one of the far right conservatives, the ``soft underbelly of the liberal welfare state.'' Those are his direct words.
In 1978, President George W. Bush ran for Congress in Texas, and he said: Social Security will be broke in 10 years. So in 1978, President Bush said Social Security would be flat busted in 10 years, by 1988. Of course, he was not accurate. But he said back then we should go to private accounts in Social Security.
Now, all that says to me is that this is not about economics for this President. It is about philosophy. I am not critical of him for that. He has every right to believe the Social Security system is somehow unworthy, ought to be taken apart, that it ought to be changed to a system of private accounts. The President has the right to believe that. He believed it back in 1978, and he manifested that belief even now as President.
But let's understand, then, that this is not about economics, it is about philosophy. In fact, there is a memorandum dated January 3, which comes from the chief strategist in the White House about Social Security, and let me quote from it. This is from Peter Wehner, who is the chief strategist in the White House on Social Security planning:
I don't need to tell you that this will be one of the most
important conservative undertakings of modern times.
Interesting, isn't it? The first paragraph describes what is happening in the President's proposal, about Social Security as ``one of the most important conservative undertakings of modern times.'' And if accomplished, it will be ``one of the most significant conservative governing achievements ever.'' Again, describing this issue as a ``conservative undertaking.'' Its success is a ``conservative governing achievement.'' And then he connects it to the commitment to the ownership society, control for individuals over their own lives, and so on.
He says:
If we borrow $1-2 trillion to cover transition costs--
That is the first place this shows up, which is an acknowledgment that everybody understands, that the President never talks about, that in order to go to transitions to private accounts, you have to borrow money--$1 to $2 trillion. That would be borrowing money on top of the largest debt this country has ever experienced. We have the largest fiscal policy deficit in history. We have the largest trade deficit in the history of this country right now. On top of that, the President would propose a $1 to $3 trillion--this says $2 trillion--but $1 to $3 trillion borrowing in order to set up private accounts. It is: Borrow money, put it in the stock market, cut benefits in the underlying Social Security Program--I will get to that in a moment in this memorandum--and hope that somehow it will all come out all right.
Let me read what is the most telling piece in the White House memorandum about the Social Security plan:
For the first time in six decades, the Social Security
battle is one we can win. . . .
It is clear what he is saying. The White House memorandum of the strategy, No. 1, in the front end calls it a conservative undertaking, not just some policy debate about something that will strengthen the country, a conservative undertaking. Then he said:
For the first time in six decades, the Social Security
battle is one we can win. . . .
What is that battle? Go back to Alf Landon in the 1930s, who decried Social Security, and bring it back every decade since; the fact is that there are those who have never wanted Social Security, never liked Social Security, believe it is some sort of Government intrusion in people's lives and they have always wanted to basically get rid of it. That is the battle.
The White House says:
For the first time in six decades, the Social Security
battle is one we can win. . . .
Well, who wins when we decide to begin taking apart one of the most successful things that we have ever done in our history to lift people out of poverty? When you work you pay an insurance premium in your paycheck. It is called FICA and the ``I'' is for insurance. That is what it stands for. You put it in this fund, and when you retire, Social Security payments will be there for you. They don't belong to someone else, they belong to you. They are yours. And it is not just the old age benefit or the retirement benefit. If along the way you are disabled, there are disability benefits. If along the way the principal wage earner dies and you have children under the age of 18, there are survivor benefits. All of that is available to those workers who are paying these premiums month after month.
It is really interesting and--for me at least--a bit disturbing that we have turned in this country to a debate about me, me, me, and me: When is it my turn? How about me? Forget about the other guy, how about me?
I think both political parties contribute to this country. The notion of self-reliance, coming from the pioneers on the homestead, breaking sod, building log cabins, rolling up their sleeves, doing for themselves, herding cattle on the open range, hard work every day, self-reliance, I understand all that. It is a wonderful ethic that helped build this country. But there is more than that, much more than that because those pioneers on the prairie, the pioneers who homesteaded the prairies where I come from in southwestern North Dakota knew there was more than self-reliance and rolling up your sleeves and handling it yourself. It was also about building a community, building your churches and roads and schools and building the rural electric co- ops to move electricity to the farms. It was about fighting things that were more than just yourself, being a part of something bigger than yourself, fighting for women's rights, worker rights, for equal rights, for minority rights. All of that is also a part of the legacy that has improved this country and lifted it.
Now we come back to this mantra almost every day--centered now around Social Security--what about me, what about mine. I want mine right now.
The Social Security system in many ways is a compact between the generations. It is a compact from my kids to me to my parents and has been for over 70 years. Some people say: Compacts don't matter. Promises don't matter. None of this matters. What matters is what is me, mine, right now, ownership.
I don't know. I wonder sometimes if this country would be the kind of country it is if that attitude prevailed in every circumstance. There are things that we do alone that represent initiative and self-reliance that are very important, that represent the incentive to build and to do better, the incentive for success. But there are other things equally important that represent the things we do together that have helped build a great society, helped build great communities of interest and helped pull each other up as a society. To sacrifice one for the other injures opportunities in this country's future.
I have never quite understood if there is someone in this Chamber who believes there is something more important than their kids. I guess not. Most of us would aspire to do anything for our children. We love our children. We want life to be better for our children.
But following that, we also believe that when our parents reach that period in their life where we call them elderly and they have less income than they used to have and less ability to meet their daily needs and to pay for the high cost of prescription drugs and pay the rent and buy the groceries, all the things they are required to do, that we want to reach out and help them. We believe helping our parents and our grandparents is something that is important as a part of this country's responsibilities. That is what the Social Security system has been about.
We are going to have a lot of discussion about Social Security, and it is going to go from coast to coast. The President has a big old airplane, a 747, a big fat one with a hump on the nose. He has unlimited fuel, and good for him. I respect him. He is our President. He has a right to believe as he does on these issues. He is going to sell this all across the country. But we, too, have an opportunity and a responsibility. I believe strongly that what we have done to build opportunity has included the creation of a Social Security system that I know works.
Our late colleague, Daniel Patrick Moynihan, Moynihan used to say that everyone is entitled to his own opinion, but not to his own facts. My hope is as the President travels around the country, and as we debate here in the Congress, my hope is that we can agree on the basic set of facts.
The facts are contrary to the President's assertion in the State of the
Union Address. In the year 2018, the Social Security system will not be taking in less money than it spends. That was the allegation the President made. Not true, just flat not true. According to Social Security actuaries, if we have a very low rate of economic growth, much below that which we experienced in the previous 75 years, if we have that low rate of economic growth, by the year 2042, we will have less revenue coming in to the Social Security system from both payroll taxes and accrued interest on the assets than we will need to be paying out. The Congressional Budget Office says that year is 2052. That is almost a half century from now.
Pick the one you like. In any event, we do not have a crisis in Social Security. It is not going to take major surgery or a major adjustment to make Social Security whole for the long term. Our job ought to be to work together to find a way to strengthen and preserve Social Security for the long term and then strengthen and improve on the other two elements of retirement security. One is pensions, and that is to encourage more employers to offer pensions because only half of American workers are now covered. The second is private investment accounts such as IRAs and 401(k)s outside of Social Security and pensions.
We can, should, and--I hope--will do much more in incentivizing those kinds of investments. But job No. 1 for us ought to be to preserve the basic Social Security system. We can do that. We surely will do that. But first we have to turn back the philosophy of those who write memorandums from the White House and who are the chief strategists, who create the White House plan on Social Security, who say:
For the first time in six decades, the Social Security
battle is one we can win. . . .
Meaning they have never liked it. They didn't support it in the first place, and they would love to begin taking it apart first by creating private accounts; second by, in this memorandum, describing the change in indexing which will cut everyone's benefit in the Social Security Program.
I wanted to make one additional comment. I understand some colleagues are waiting. I intend to offer an amendment on the bankruptcy bill-- hopefully tomorrow morning--that deals with something extraneous to bankruptcy but an issue that is important and timely.
At a hearing this morning, the Defense Department told me we are spending $4.9 billion a month in Iraq and Afghanistan. The administration has included zero in its next year's budget for that purpose. But they are asking for an emergency supplemental to fund it.
I have held hearings--my colleague from Illinois has attended those, and I believe my colleague from Florida has as well--on the subject of contracting in Iraq. There is massive waste, fraud, and abuse going on. I will describe a couple of things that have been testified to. Somebody orders 50,000 pounds of nails to be sent to Iraq for construction contracts. It turns out they are the wrong size. You know what happens? They are dumped on the ground--50,000 pounds of nails on the ground in Iraq that are the wrong size. People driving $85,000 brand new trucks. If they run out of gas or something happens to them, they leave the truck and let somebody torch it. Halliburton is alleged to be billing us for serving 42,000 meals a day to our soldiers when, in fact, they are only serving 14,000 meals. They are overbilling us by 28,000 meals a day. It is unbelievable, the massive waste, fraud, and abuse going on.
At a hearing a couple of weeks ago, we had people with pictures that showed they have massive cash in vaults and they say if you are going to pay contractors, tell them to bring a bag and we will fill it with cash. We are talking about the massive wasting of taxpayers' money going to these sole-source contracts for billions of dollars and nobody cares.
My colleague from Illinois introduced a piece of legislation last year on this subject. I talked to him yesterday about an amendment I wanted to introduce on this bill and am going to introduce in the morning, and he will join me. This is a very important issue.
I am happy to yield to the Senator for a question.
My understanding is, I believe there was only one in the House, and the bulk of that was to defend the company called Halliburton--and there were no such hearings by the standing committees in the Senate. Essentially, there has been no interest in looking at this kind of abuse. The Senator from Illinois was at a DPC hearing we held. We had a guy there who used to purchase towels. He purchased hand towels for soldiers. He held up the towels. He showed us that they are nearly three times the price of the towels they purchased for U.S. soldiers. Why? Because the company wanted its logo on the towel. So they buy a towel with a company logo on it for the soldiers and nearly double-bill the American taxpayer. This is a small issue in itself, but it is an example of what is going on, pervasively.
The Senator from Illinois is correct. President Truman got in his car, as a matter of fact, and began driving around the country to military installations to see what was going on. He came back and said there is something rotten here; a massive amount of waste is going on. He convinced Congress to create the Truman Commission, which was an investigative committee. And he was a Democrat, and there was a Democrat in the White House, but that didn't stop him from investigating.
In this circumstance today, we have a Republican in the White House, Republicans controlling the House and Senate, and they have no interest in doing any oversight hearings. Our colleagues asked the committee: Will you do an oversight hearing on the issues? The answer is no. I have additional examples. How about $7,500 a month rent for an SUV in Iraq? How about Halliburton charging a dollar more for every gallon of gas, compared to what the Department of Defense could have obtained from its own supply office? How about two guys who show up in Iraq having no money and very little experience and decide they are going to be contractors? They decide to bid on contracts, and they win one. Somebody delivers a suitcase full of $2 million in cash and they are off and running. They soon got over $100 million in contracts. Some of their employees became whistleblowers because they said what was going on was crooked. These people were taking forklift trucks off an airport they were supposed to secure, taking them to a warehouse and repainting them and selling them back. They sold them to the Coalition Provisional Authority. Who is that? The American taxpayer. The Justice Department says it won't join in a false claims action because defrauding the Coalition Provisional Authority in Iraq is not the same as defrauding the American taxpayers. It is unbelievable, the lengths to which some of these people will go to avoid looking truth in the eye.
There is massive waste, fraud, and abuse. Billions of dollars is being abused and wasted and nobody seems to give a whit about it. Senator Durbin
from Illinois introduced legislation, which I was happy to support, in the last Congress on this subject. I don't believe that got a hearing and certainly didn't get to the President's desk. My sense is that in any way we can, in every way we can, on behalf of the American taxpayer, we need to do this. It undermines our support for American soldiers if we don't have oversight. Do you think American soldiers want to be stuck in Iraq doing what their country asked them to do only to find out that those serving them meals are overbilling by 28,000 meals a day, or are double-charging for hauling gasoline in? This makes no sense. The minute you raise any of these things with the one party in this town, they say you are being totally partisan. Well, no, I think we are being a little bit like Harry Truman here. He had the guts to look truth in the eye and say when something going on is rotten, when the American taxpayers are being bilked, tax money is being pilfered, somebody ought to stand up and stop it.
I intend to offer this amendment in the morning. I am proud of the work my colleague has done as well. I have spoken longer than I intended. The Senator from Florida wishes to speak. Let me say that I will be back in the morning to offer this amendment.
I yield the floor.