SMALL BUSINESS LENDING FUND ACT OF 2010--Continued
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. I ask unanimous consent to speak as in morning business for as much time as I may consume and ask that the time be counted against the postcloture…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
I ask unanimous consent to speak as in morning business for as much time as I may consume and ask that the time be counted against the postcloture time.
Mr. President, this country, as all of us know, faces very significant challenges these days. We have roughly 20 million people who woke up in America today without a job, who probably are out today looking for work and haven't found it yet. It is a pretty tough thing in a severe economic downturn--the worst since the Great Depression of the 1930s--to find that you lost your job, and in some cases your home, and you have lost hope and you wonder what is next for you and your family.
I suppose it is in keeping with our politics these days that, at a time when we face the most significant economic challenges since the Great Depression, if you stop and watch and listen and hear the sounds of democracy, which sound a little like fingernails on a blackboard sometimes, what you hear on the news is something about someone's dysfunctional behavior somewhere. Someone does something absolutely goofy, just a nutty activity, and all of a sudden, it is on the 24/7 news.
In the last couple weeks, I have been traveling and hearing on the television, radio, and in print about some nut from Florida--apparently a minister with a church of 50 people--who decides he is going to burn the Koran. We heard about it every day, all day. There is some suggestion that if you give this a lot of publicity and hold it up to the light and say, ``Isn't it ugly?'' you would say, ``Yes, but it is not America; it is just some nut.'' You find someone's dysfunctional behavior and say, ``Isn't this awful?'' Sure, it is awful, but that is not the backbone of this country or what this country is about.
We have to begin talking about what really matters to put this country back on track and to give people some hope for the future, that they are going to see more opportunity, that they are going to see expansion of hope and opportunity for themselves, their families, and their children.
I think it is true that of all of the issues that matter most at this point, it is, how can you put people back to work? There is no social program that we debate in Congress that is more important than a good job that pays well. That makes almost everything else possible. If you have a good job that pays well, with job security and benefits, it allows you to take care of your family and do the other things that expand your opportunities in this great country.
I have watched and observed what is happening, and I participate in the debates in the Congress about what is happening in our country. I am very worried about this issue of trying to turn the faucet on to create new jobs in America at the very time the drain is open, with jobs moving outside of this country very quickly.
I have spoken about this and have offered 4 amendments over 9 or 10 years, and I have gotten anywhere from 40 to 47 votes on an amendment that says: Let's decide to stand up for employment in America, stand up for jobs here. Let's shut down the insidious, perverse tax incentives that tell American businesses that if you shut down your business in America, fire your workers here at home, and you move it to China or Mexico, we will give you a big fat tax break. That is true. We have a tax incentive to say: Get rid of your American enterprise, ship it overseas, move it to Mexico, and we will give you a tax cut. I have tried four times in votes on the floor of the Senate to shut that down, and I lost all four times. But we need to try it again. We need to do this, especially when you have the deep economic abyss into which we have fallen. We now need to say to people that we are going to stand up for employers, those who run the manufacturing plants in this country, those who hire American workers, those who produce products that say ``Made in America'' on the label. We are going to stand up for them, and we are not going to continue to give tax breaks to those who decide to do exactly the opposite and move their jobs overseas.
I am going to talk about a few of those circumstances. I have done it many times, and sometimes people roll their eyes when I do. But it is important, it seems to me, to continue to talk about this failure in our economic system.
The American Prospect--a magazine I was reading a while back-- estimates that since 2001, there are 42,400 American factories that have closed their doors. Roughly three-fourths of those employed over 500 people. Why is that happening? Why is it that American factories are closing? Does it matter? Do we believe America will long remain a world economic power if it doesn't have world-class manufacturing? I don't. It will not be a world economic power without world-class manufacturing capability, and very quickly, it is dissipating. We are losing jobs and economic strength in the manufacturing sector. We see additional evidence of it every day.
Here is a June New York Times piece:
In Indiana, Centerpiece for a City Closes Shop.
Whirlpool plans to close a plant on Friday and move the
operation to Mexico, eliminating 1,100 jobs here [in
Indiana]. Many in this city in southern Indiana are seething
and sad--sad about losing what was long the city's economic
centerpiece and a ticket to the middle class for one
generation after another.
That is Whirlpool--1,100 jobs.
Last week, I was in Pennsylvania with Congressman Sestak, in Philadelphia. I told a story that I have known pretty well about something that happened in Pennsylvania. I told it on the floor many times. It is about something called Pennsylvania House Furniture, which is upper end, fine furniture, made by craftsmen. It is very good furniture. They worked for over 100 years, using Pennsylvania wood, to create Pennsylvania House furniture. Then one day the company was bought by La-Z-Boy, and La-Z-Boy decided: You know what, we are going to get rid of those craftsmen who work in Pennsylvania and ship these jobs to China. What we will do is continue to use Pennsylvania wood, but we will just ship the wood to China and have the Chinese fashion it into furniture and then send it back to sell in the United States and call it Pennsylvania House furniture.
What most people from Pennsylvania and across the country probably don't know is that on the last day of work, when those workers lost their jobs, after a century of making fine furniture in Pennsylvania, the last piece of furniture came down the line completed, and they turned it over and all of the craftsmen at Pennsylvania House furniture autographed it. Someone in America has an autographed piece of furniture by the craftsmen who cared so much about their jobs and had such pride in making the best furniture they could make. And then the jobs were gone. All the wood was sent to China and the furniture is sent back, and you have nearly 500 people out of work. So much for the story of Pennsylvania House furniture. Does it matter that we don't make Pennsylvania House furniture in this country? Well, it sure matters to the 500 or so people for whom it was their career, a job that made a difference for their families. It made a difference to them because they were out of work.
I just mentioned Whirlpool deciding to get rid of 1,100 jobs. Well, it is interesting, here is a story in the Indiana Economic Digest. It says:
U.S. based manufacturers are shipping jobs overseas.
That is a familiar story.
Whirlpool is just one local example of a story that has
played out across the nation for decades.
The appliance-maker is in the process of shutting down its
Evansville refrigerator plant. March 26 was the last day for
455 [people in that plant.]
Those jobs will go to Mexico in late June.
But then it says something different. It says:
But not all local manufacturers are interested in moving
overseas.
HMC manufactures and refurbishes large precision gears and
other machinery components. . . . The company has 75
employees. It has never laid off an employee.
Robert J. Smith III, the company's president and chief
executive officer, is dead-set against ever moving production
overseas.
``We wouldn't consider it in a 100 years.''
His grandfather and grandmother started the company in 1921. ``Offshoring in search of higher profits is a mistake,'' Smith said, ``because it ignores manufacturing's larger purpose in U.S. society.'' And here is what he says finally:
It's my belief that every American citizen, not only me,
should feel strongly about maintaining one of the most
important cultures we have, and that is manufacturing.
I have used examples previously--and I will again--because I think repetition is important. The peppermint pattie called York--it is a tiny little peppermint pattie in a silver encasing. It is made by Hershey's Chocolate, by the way. It says: ``The cool refreshing taste of mint dipped in dark chocolate will take you miles away.'' It sure did that. It took it all the way to Mexico. They decided to fire those American workers, and that mint chocolate went to Mexico to be produced.
The list is actually pretty endless. I just described Whirlpool, 1,100 jobs. They received millions in Recovery Act funds, and yet announced 1,100 job cuts--by the way, this is the long walk on the last day of work at a manufacturing plant. You go there to make it a career and then all of a sudden you discover the job is not there. Some foreign country has that job because America has decided to reward those who leave as opposed to those who stay.
If you wear a Reebok NFL jersey--and a whole lot of folks wear these jerseys--this is made in a Chinese-owned sweatshop in El Salvador. How do we get to the point where it is not just made in El Salvador but it is made in a Chinese sweatshop in El Salvador? This has to do with various trade agreements we have made where we incentivize the production of these being made in the lowest common denominator sweatshop wage area in the world. This Reebok jersey is made in El Salvador by a working man who lives in this so-called house. That working man makes less than $1 for an $80 Reebok jersey.
I have spoken on the floor of the Senate at great length about underwear--Fruit of the Loom underwear. I have said--and I know it is not chic to do so--I said I understand losing one's shirt, but Fruit of the Loom left the country with all of its underwear. It used to make underwear in America, and people appreciated those jobs. Fruit of the Loom left.
As we know, Fruit of the Loom was advertising with dancing grapes. They put men and women in fruit uniforms. I do not know where one gets a grape uniform, but they march them down a road and put it on television and they all sing and sound happy--happy for reasons I do not understand because all those Fruit of the Loom jobs, all that underwear is made elsewhere.
One might say: Who cares where underwear is made. I suppose the people who made underwear in the United States care because they had jobs at Fruit of the Loom, but it is gone.
I have spoken at great length about Huffy bicycle and shall not speak at great length today except to say this. Anyone who purchased a Huffy bicycle at Wal-Mart or K Mart was purchasing a bicycle made in Ohio, made by wonderful workers who had a career making Huffy bicycles. They made Huffy bicycles for many decades. They made $11 an hour plus benefits to make these bicycles. Now the bicycles are gone. Now they are made in China.
This is actually a trifecta. Everything that could have gone wrong went wrong. The company decided to fire American workers and build the bicycles in China. Then they declared bankruptcy and left American workers with no pension program so that the pension would have to be paid by the taxpayers out of the Pension Benefit Guaranty Corporation. And now China owns the brand. They got the company, the brand, make the bicycles, the workers got fired, and the American taxpayer got to pick up the pensions. It is unbelievable when you think about it.
Is this fair trade? I do not think so. It is a decision by a lot of people to decide we are going to move our manufacturing overseas.
Every young child has ridden in a Radio Flyer wagon, a little red wagon. They made those for 100 years in Chicago, IL. They do not anymore. They are all made in China as well.
I know where these are made. I know where Huffy bicycles are made. I know they are made by people who make 50 cents an hour and work 12 to 14 hours a day, 7 days a week with never a Sunday off. Is that with what we want the American people to compete--a lower standard of living? Is it probably something we would like to do to help lift others in the world, or is it we want Americans to compete with the lowest common denominator, lowest wages, the workplace with the worst safety record? Is that what we want?
Those are other issues. The issue I came to talk about is the issue of what about the fact the company that makes the little red wagon and the Huffy bicycle and the York mint pattie and, yes, Fig Newton cookies--by the way, if you are wondering about Fig Newton cookies, they went to Mexico. They were made in New Jersey. Apparently when you make Fig Newton cookies, there is someone who shovels fig paste. You can get someone shoveling fig paste a lot less expensively by hiring them in Mexico rather than New Jersey. If somebody says, Let's get Mexican food, just buy Fig Newton cookies. They escaped to Mexico. The jobs are gone, and somebody down south is shoveling fig paste because you can pay cents on the hour to get that kind of labor.
The question is: Does it matter? Does anybody care? Does it matter that we do not produce Fruit of the Loom shorts and t-shirts, that we do not produce little red wagons, Radio Flyer, that we do not produce Huffy bicycles, that we do not produce Pennsylvania House furniture, that Whirlpool refrigerators are made in Mexico, that product after product has gone to China?
The fact is, people on this floor in this Congress and in other Congresses have voted affirmatively to say: We want to reward those who leave our country. We want to give you a tax break. Four separate times we have had votes on these issues, and four separate times the majority of the people in the Senate have said: We believe in giving tax breaks to those who ship American jobs overseas.
The reason I raise this issue today is this: We have about 20 million people who are out of work today. They want to find work. They want a job and cannot find one. Everybody talks about restarting this American economy. How about trying to find a sparkplug that will lift the American economy? What is that? If you are going to keep the drain open, how are you going to fill the tub? You can work with the faucet on all day long, but if you have the drain open, Whirlpool decides one day, We are moving 1,100 jobs out of this country--and the list goes on and on--where are the jobs going to be? Who is going to incentivize the creation of new jobs? We have to do this. It is our responsibility. It is not our responsibility to provide economic recovery for the Chinese economy or the Mexican economy. It is our responsibility to try to see if we cannot restart this economic engine at home. It seems to me implausible that at least a majority of the Members of the Senate would not understand that we need to stand up for American jobs.
I understand, because I have been involved in many trade debates and I subsequently wrote a book about it, that when you start talking about standing up for American jobs, there are a bunch of pointy-headed folks with thick glasses who call you a xenophobic isolationist stooge. You just don't get it; it is a world economy, Mr. Dorgan; you don't have the foggiest idea what you are talking about. Oh, really?
All those people who say that wear dark suits, take showers in the morning, and have never been unemployed. Isn't that a great thing? How about people who require taking a shower after work because they worked hard, and find out they lost a job because pointy-headed folks describe a world economy that reduces all the standards we built up over a century?
Think of the problems we went through to try to create the circumstances that built an expansion of the middle class in this country. Just think of it. In my book, I describe James Fyler, and I probably should not have. I said he died of lead poisoning. He was shot 54 times. Why was James Fyler shot in the early part of the last century 54 times? Why did he give his life?
Here is the radical proposition that James Fyler felt: He felt that people who went underground to dig for coal in this country ought to have an understanding that they are working in a workplace that is safe and ought to be paid a fair wage. For that he gave his life because that was unbelievably radical: insisting on behalf of workers that they work in a safe workplace and be paid a decent wage.
We went through all of that and finally said: A safe workplace is important. We have to protect workers. A fair wage, a minimum wage, is important--all of these things that we went through to lift up America and expand opportunity and put people to work. We have been through that and at great struggle, at really great struggle.
Yet now in the last decade and a half, the question is: Isn't that all old-fashioned? It is a world economy. Why can you not compete with a Chinese sweatshop in El Salvador making Reebok football jerseys? Why can you not compete with a worker in Shenzhen, China, willing to work for 50 cents an hour, working 7 days a week, 12-to-14-hour days? I say to you, the people at Huffy bicycle would have said: We cannot compete with that. We cannot live on those wages. And the people who employed them said: We don't care. Your jobs are gone.
The last day of work at Huffy bicycle in Ohio, when they were all fired and all those jobs moved to China to make those bicycles, those workers left in the space where their cars parked at the plant, in the empty space they left a pair of shoes. That parking lot was filled with empty shoes, not cars. It was a plaintive way for those workers to say to those companies that fired them: You can fire us and get rid of our jobs but you will never replace us. You will never replace us.
It seems to me if people in this country are wondering about where will the jobs come from, who is going to stand up for the economic interests of this country--no, not cut us off from the rest of the world, not suggest we are not part of the global economy, but rather suggest we will attempt to lift the rest of the world by saying: Here are the conditions under which we will involve ourselves in the global economy.
We are a country with a huge trade deficit with the country of China. This year I suspect it will be between a $200 billion and $250 billion trade deficit with the country of China. Our trade deficit this year generally will probably be around $600 billion, perhaps a little less. Last month it was a $50 billion trade deficit. No country can continue with this. It is not sustainable. You cannot sustain a country by hollowing out the manufacturing base and deciding manufacturing does not matter, yet we want to remain a world economic power. You cannot sustain a country that says we are going to do $50 billion a month in trade deficits and that doesn't matter either. A trade deficit ultimately is going to be repaid with a lower standard of living in this country.
We have a responsibility, and that responsibility now is to find a way to begin stopping the hemorrhaging of jobs overseas and decide to reward those companies that decide they are going to keep jobs in this country.
I just read this today about HMC manufacturers and Robert Smith III, the company's president and chief executive. Good for him. He said: We wouldn't consider moving our jobs overseas, not in a hundred years. ``Outshoring jobs in search of higher profits is a mistake,'' he said, ``because it ignores our manufacturing's larger purpose in America.'' Good for him.
How about doing something in this Chamber that says to people who are employing the manufacturing workers: Good for you. We stand with you. We want to incentivize you to continue, and then say to those who are shipping their jobs overseas: You know what, you want some help from this government? Go take a hike. Make something in America. And, by the way, you are not going to get tax help. We are not going to give you a tax break, as has been done for far too long when you ship your jobs overseas. It is not going to happen.
Unfortunately, it has been happening. I said it is not going to happen four times. We have had four votes, and I have lost on all four occasions. I hope at long last when we go through the deepest recession since the Great Depression, there might be enough of an urgency for people who come out here and bloviate and thumb their suspenders, cast the shine of their shoes on the magnificence of this great place that maybe that magnificence might spread to casting the right vote on something that stands up for this country's best economic interest.
Mr. President, the list of challenges are very significant. I have been talking at length about one, and that is jobs because it makes everything else possible. If we can get the American engine working once again, put people to work once again, this country will do just fine. But it doesn't do just fine when it is in a very deep recession and we have incentives that say jobs don't matter.
I grew up in a very small town, less than 300 people, and I knew every day that I was a kid--just because I understood it--that this country, this America, was the biggest, the best, the strongest, and that we could beat anybody in trade or economic issues with one hand tied behind our backs. That is how good this country was. We were good at almost everything. We invented, we created, you name it. We decided to split the atom. We spliced genes. We invented radar, the silicon chip, the telephone, the computer, the television. We cured smallpox and polio. We built airplanes and learned to fly them. Hundreds of attempts were made, and finally on December 3, 1917, they flew an airplane--the Wright brothers. Then we built rockets and walked on the Moon and planted an American flag. Nobody has done that, but we have done it. This is a great country.
Yet somehow, in the shadow of this very deep recession--that, in my judgment, was not some natural thing to have happened to our country. This was something that was caused by unbelievable avarice and greed and things that went on particularly in the largest financial firms in this country that had nothing to do with investment, that had nothing to do with savings or real banking but had everything to do with building a casino society so people could buy what they wouldn't get from people who never had it. They were all making money, but it was a house of cards.
I offered an amendment on something called naked credit default swaps. You know what. It sounds like a foreign language. Nobody even knew what a credit default swap was. We had tens of trillions of dollars of credit default swaps, and a fair amount of them were naked. What does that mean? It doesn't mean they didn't have clothes. It meant there was no insurable interest on either side. It was simply a wager, simply a bet, not on investment. I lost that amendment.
I probably should talk about something I won. But the fact is, on the big issues in this country, in most cases the big interests are well organized to make certain their interests carry the day in the Congress. It just seems to me that as we tackle these issues of jobs and Federal budget deficits, which is a very significant issue, and the issue of taxes--who pays them and how much--energy policy--how we remove our addiction to foreign oil--the trade issues I have just described in great detail, we have to do better. The American people deserve better and expect better. Instead of getting the worst of what both parties offer, we need to get the best of what each has. Both parties can contribute something significant to our country, in my judgment.
Mr. President, there is a lot, it seems to me, at stake. We can continue to see anemic economic growth--and as I say that, let me point out this President inherited a circumstance where just prior to his coming to office we were losing 700,000 jobs a month. That is what he inherited. I know some people come and say: Well, how dare you talk about the economy this President inherited. What else would you talk about? Would you create a fiction about it?
This economy was nearly in a free fall and, like it or not, this President took action. Like it or not, this President made proposals that began to put some capability under this economy to avoid a total collapse.
Now the economy is growing, but slowly, and too slowly. The President knows that and says that. This growth is good. We didn't suffer a complete collapse. We caught it. This President's policies have worked. Those, by the way, who come to the floor of the Senate and say the economic recovery act didn't create any jobs know better than that. Look at the studies that have been done: 3 million jobs at least have been saved as a result of taking the action that had to be taken. Would they suggest we sit and watch and be simple observers?
Now we come to this discussion about the economy and we are deep in debt and we have to get out of this. So the question is tax cuts. Who gets tax cuts? Well, 9 years ago, on the floor of this Senate, President George W. Bush said: Let's provide very substantial tax cuts. The bulk of them will go to the wealthy, but nonetheless everyone will get a tax cut. Why? Because for the first time in 30 years we had a budget surplus that year under President Clinton. The first time in 30 years we had a budget surplus.
So President Bush came to office and said: Well, it looks like we are going to have budget surpluses for the next 10 years, so let's provide very large tax cuts.
I voted against them. I said: You are talking about projections. We don't have the tax surpluses yet. When we get them, let's figure out what we do with them, but they do not exist yet. They are simply projections. President Bush said: Well, Katey, bar the door. He and Mr. Greenspan and others said we need to do this. Mr. Greenspan said he couldn't even sleep he was so worried that we were going to have such big surpluses that it would ruin the economy and we would pay down the debt too fast. I hope he didn't lose a lot of sleep over that.
So the Congress passed, without my vote, very large tax cuts for 9 years after which they would expire. So they expire at the end of this year. Now the question is, What do we do with them? The debate is, Should they be extended?
The President says let's extend them for the middle class. We are still in the middle of slow economic progress, so let's extend them for the middle class. The Republicans and others say: Well, let's make sure we extend them for everybody, including the wealthy.
Well, it just seems to me this: We decided--without my vote--to provide very large tax cuts because we needed to give back a surplus which then didn't exist in the subsequent years. A surplus didn't exist. Then what happened? Within a couple of months after passing the tax cuts 9 years ago, we discovered we were in a recession. Not a deep one, but a recession. That, of course, enhanced instead of surpluses Federal budget deficits.
Then what happened? We were hit on 9/11 with a terrorist attack and we went to war in Afghanistan and then we went to war in Iraq and not a penny of it was ever paid. In spite of the fact I and others came to the floor of the Senate and said: If you are going to ask our young men and women to go to war and to get up in the morning and strap on ceramic body armor, to be in harm's way and potentially lose their lives, the very least we can do in this Chamber is pay for the cost of the war. But, no, we couldn't do that. We have fought a war for 9 years and haven't paid for one penny of it. That is fundamentally irresponsible.
Now, the question is, In the middle of a very serious economic situation, who is going to get the tax cuts extended? Some say: Well, you have to extend them for the upper income folks, the wealthiest Americans, because their philosophy is that things trickle down. Put things in the top and ultimately they trickle down. Others, my philosophy, is things percolate up. Give the American family a little something to work with and get the engine working again and things will percolate up to help everybody.
I do think this: The tax rates that were paid by the upper income people in the 1990s, when we had the most robust economic growth in our country, are tax rates that I think should continue to exist for upper income people. I think that is fair. Plus, that $800 billion that it would cost for the next 10 years to do those tax cuts for upper income Americans will be added right to the Federal budget deficit, and that doesn't make any sense to me at all. How would that give confidence to the American people; that at last--at long, long last--this Senate, this Congress was willing to tackle these destructive budget deficits? That is not much consolation to people who watch what is happening in this country.
Now, Mr. President, let me finish by saying I have talked about a number of things, and things we need to correct. I remain hopeful about this country's future. I know we have a chattering class that spends all day and all night on the radio dial and television talking about what is wrong with America. I know there are plenty of challenges ahead of us. But I also believe there are a lot of people who, for two centuries, have bet against this country's future and lost. I think it would take a fool to decide this country would not get through this period.
But this country deserves good leadership from Republicans and Democrats. It deserves a President who is aggressive, and I believe this President is aggressive, in tackling these problems. It deserves a Congress that is willing to work together. If ever we needed an outbreak of some minimum amount of bipartisanship, some minimum cooperation, it is now. I have just watched all of this year circumstances where every single thing is objected to, everything is blocked. It doesn't take much in this Chamber. The two most powerful words are ``I object.'' One person saying ``I object'' grinds this machinery to a halt.
The fact is, I have seen circumstances in this Chamber this year where objections were raised and filibusters ensued on motions to proceed to noncontroversial items that ultimately got 96 or 98 votes, but it took a week to get through because of blocking and objections. I mean, if someone would have brought up a Mother's Day resolution, it would have been filibustered, I assume. Block everything, stop everything, make sure nothing gets done. That is not in the interest of this country. This country deserves better and expects more.
I hope in the coming several weeks--we don't have a lot of time--the things I have just described, the issue of jobs moving overseas, the issue of an unbelievably ignorant tax provision that says if you get rid of your American workers, you lock your factory doors and ship those jobs overseas, tell you what we will do. We will give you a big old fat tax break. I hope finally, at last, at long, long last, enough Members of this Senate will agree that has to stop; that we would pass legislation to shut it down and at the same time say to those who are moving their jobs overseas: You are off the public dole. But you know what. We are going to stand up for those who keep their jobs here. We are going to say: If you are running a manufacturing plant in this country, good for you. We want to do the things that help you continue, that help you hire people and help you be a good employer. Good for you. You are the ones we stand up for because you are the ones who will rebuild opportunity in this country.
Mr. President, I yield the floor, and I suggest the absence of a quorum.