I thank my friend from Tennessee for yielding and thank him for taking this hour tonight. I not only want to thank him, but I want to thank USA Today for what they did today on the front page of their newspaper. We have been in this…
I thank my friend from Tennessee for yielding and thank him for taking this hour tonight. I not only want to thank him, but I want to thank USA Today for what they did today on the front page of their newspaper. We have been in this Chamber several times this year talking about this, but nobody pays any attention. You would think that you are making this up, what you have just shown, how the deficit has turned around. We have listened to the explanations from our friends on the other side who are in control of the fiscal matters of this country right now. Here is the paper, front page: $84,454 is the average householder's personal debt, as you mentioned. We have got home mortgages. If you are in small business, you borrow money. Your personal family, you borrow money. You have got credit card debt. You have got a car loan, et cetera. So the average per household is $84,454. The average debt that you are talking about tonight plus the unfunded liabilities of Social Security and Medicare, and I found it rather fascinating that the previous 1 hour did not ever mention the debt that is associated with the Medicare program right now, that did not mention that we were kind of misled, and I was one of the bipartisan supporters of the pharmaceutical drug Medicare reform bill, and I supported it because of the rural hospital components, but nobody mentioned the fact that we were misled about what the cost of that bill was going to be, those of us who supported it. We were not told 100 percent of the truth, and that is another story for another day.
But you are going to get into something in a minute that I think is going to get even more the attention of the American people. I remember, 1981, when we in this body in a bipartisan way increased the debt ceiling to, I believe, $980 billion. We are talking tonight about $7.3 trillion. It was $980 billion in 1981. We did not worry too much about that at that time because we owed most of that money to ourselves. When you owe money to yourselves, I remember the debate very clearly, it is not a problem because we are just taking it out of this pocket and putting it in another one. But, today, it has changed a little.
I think that leads into the point the gentleman was wanting to make. I want to talk more about this unfunded liability again, things we are not doing in this 108th Congress.
It has been now labeled, and I think correctly, the biggest do- nothing Congress since 1948; i.e., we have been in session less this year than any Congress since 1948. And that means that we have got an energy bill we have not passed. That means we have got a budget we have not passed. That means that, sometime this week, we are going to reach the debt ceiling of $7.384 trillion, which means we have got to up our credit card limit, or we default on these notes that we have got. And so all of this time, nothing is being talked about until today on the front page, some newspaper, some media, paid a little bit of attention to it.
But when we talk about debt, we do not owe it to ourselves anymore, and one of the most frightening aspects of this debt today is the one that the gentleman is just about to talk about.
Mr. Speaker, I hope our colleagues are paying a little attention to this tonight, because when we have been on this floor offering to be part of a solution, if people are watching this right now, folks are beginning to think, I would hope, okay, what should we do about it? What do you propose we do about it? How do you stop this, or is it no problem?
Well, I do not think anybody can come to the conclusion that this is no problem. If they do, they are living on a different world than the gentleman is or I am. It is a problem. It is a major problem.
Not only is this foreign debt, but then when you look at the unfunded liabilities of our Social Security system, for our children and grandchildren, and I want to emphasize right here, no one watching this has to worry about your Social Security check today. That is not the problem. It is our children and grandchildren that have got to worry about it. The Medicare situation right now is a $30 trillion unfunded liability. That is the more immediate problem.
But our point tonight is in emphasizing this body, the 108th Congress, has done nothing to address the problem the gentleman is showing, has done nothing to address the Social Security unfunded liability, has done nothing to deal with Medicare, other than dig the hole deeper; and that is the concern that we bring tonight.
It is time that we start doing something about it. Sometime this week, it is estimated that on Friday the United States of America will reach our credit card limit, $7.384 trillion; and when you reach that limit, you cannot borrow any more.
Now, the Blue Dogs, we have written a letter to the gentleman from Illinois (Speaker Hastert), saying Mr. Speaker, we will vote to increase the debt ceiling, we will provide some bipartisan support for doing that, and we ask you to bring it to the floor and do it out in the open, with one proviso: reinstate one small rule that worked in 1990, 1992 and 1997, pay-as-you-go.
It says if you are going to spend more money for any purpose, you have got to pay for it. If you are going to cut taxes, you have got to cut the spending first; not just say you are going to do it, but actually do it before you cut the taxes so you do not dig the deficit hole deeper.
We think that is a reasonable compromise. The gentleman and I and 36 of our colleagues have said on this side of the aisle, we will do that.
Instead, what we hear from the leadership of this House is we are not going to vote on it until the lame duck session. We are going to put the Treasurer of the United States, who has asked us to increase the debt ceiling, we are going to put the good faith and credit of the United States into requiring the Treasurer of the United States to use every gimmick at his disposal, borrowing the Civil Service trust fund dollars, again, they have already been borrowed and spent, but we are going to do it again, because, as you know, these trust funds are a figment of imagination of anybody.
The military, the irony tonight, is that for the next 6 weeks we are going to force the Treasurer of the United States to borrow the military trust funds. The men and women who are putting their lives on the line tonight for us in Afghanistan and Iraq, work in paying into their trust fund for their retirement, we are going to manipulate that for the next 6 weeks just to keep us from voting to increase the debt ceiling. That borders on immorality. We hear a lot about that around this body, and it is wrong.
It is time for us to start dealing. You will find, Mr. Speaker, there are some considerable number of Democrats that will work with you would you allow us the opportunity to do so.
Finally, on the point the gentleman is making here, the gentleman mentioned debt tax awhile ago. All we hear about around here is tax cuts, tax cuts out the gazoo.
What the gentleman has shown tonight is the largest tax increase that this country has ever seen, because once you owe $7 trillion, let us round it off now because it will be $8 trillion within the next year, $8 trillion, a 1 percent increase in the interest rates of this country, a 1 percent increase is a $80 billion tax increase, and where are we going to send 42 percent of that tax increase? To our good foreign neighbors that are financing our spending binge in this country.
This is the biggest not only tax increase, but, as the gentleman pointed out tonight, the biggest foreign aid bill that this country has ever passed. And yet you would not believe it based on the rhetoric we hear in this body night after night.
Mr. Speaker, I was just going to add a couple of points here.
It is not just the three of us talking about this. The Comptroller General David Walker, the government's chief accountant, is traveling the Nation warning of the impending crisis. ``I am desperately trying to get people to understand the significance of this for our country, our children and our grandchildren,'' Walker says. ``How this is resolved could affect not only our economic security but our national security,'' which the gentleman has pointed out and the gentleman from Mississippi (Mr. Taylor). ``We are heading to a future where we will have to double taxes or cut Federal spending by 50 percent.''
Alan Greenspan has been begging this Congress and this administration to deal with the deficit, but nobody seems to be listening.
This is a major problem which requires a solution, and we just seem to be ignoring it and sweeping it under the table like it is not there, but it is there.
Mr. Speaker, I want to make an observation right here, because I know if any of our colleagues, and we have two on the floor from our friends on the other side of the aisle right now, their thinking right now, if it has been as it has been when we have had open expressions of opposition to some of our solutions, is that you are forgetting to say we are at war, and wars are expensive. No, we are not forgetting for one second that we are at war, and 20 percent of this problem is directly related to the war, 20 percent. I use as my reference for that, Alan Greenspan.
The gentleman from Tennessee brought up another interesting point that really is directly tied to the point the gentleman is making tonight. How many times have we been on this floor worried about the trade deficit? I rhetorically ask the question of my constituency back home many times: How long can America keep sending over $500 billion, exporting our jobs to other countries at the rate we are without the law of economics taking over? I do not know the answer to that question,
and I do not know anybody who does know the answer to that question, but there is an answer, and the market is ultimately going to answer that.
But now, tonight, the gentleman has shown, as Paul Harvey says, the rest of the story. What happens to those dollars when we ship them across to other countries? They come back. They have to come back. They are buying our debt with those dollars. If they did not, we would have a much more serious economic situation almost overnight.
That is the crisis.
Now, we hear folks saying, well, Charlie, this deficit is not the largest in the history of our country as a percent of GDP, and I concede that point readily, because that is a fact, if we will also use the same GDP figures for spending and for revenue. And having been around this body now for almost 26 years, I tend to go back and see, well, what was it in 1978 when I was elected and what is it in 2004 today. And spending as a percent of GDP by the Federal Government for all programs has gone down one-half of 1 percent. Revenue has gone down by 5 percent. Therefore, we are perfectly willing to borrow from foreign interests that which we demand the right to spend for all of the purposes that we are spending today. And when we hear this, there is another thing; and this is the point I wanted to make.
The current accounts deficit, the gentleman mentioned that, is the largest that it has been in the history of our country today: 6.9 percent of gross domestic product in the current accounts deficit. Mr. Speaker, 3.4 percent is where it was in 1987 when Black Monday occurred and the stock market crashed because of something that happened. As USA Today says today, an oil crisis, something happens, we have a problem. We are double, 100 percent worse off today in the current accounts deficit than we were in 1987.
Well, one other little figure, facts and figures. The gentleman talked about the debt tax. Forty percent of all income taxes paid by the United States citizenry last year went to pay interest on the national debt. Forty percent of all of our taxes are going to pay interest on the debt; and yet the debt, the deficit, and the rising debt is of no problem to the leadership of this House. Mind-boggling.
Mr. Speaker, one of the reasons why he has not brought it up is we cannot have the kinds of budgets that have been here in this body for the last 3 or 4 years and get to a balanced budget. We have to change our overall budget philosophy and go back to pay-as-you- go. It is pretty simple arithmetic. We cannot run this country on philosophy. The banks will not lend us money on philosophy all of our lives. At some point, the law of economics is going to take over and as the charts the gentleman from Tennessee (Mr. Tanner) has shown us tonight, if it does not begin to get the attention, which I am glad again today, USA Today put it on the front page, maybe now, tomorrow night in the debates between the two candidates for Vice President, this issue will come up.
Maybe Thursday or Friday night it will become part of the debate, and people will start asking the question, what is your plan? The three of us will be here, hopefully with three friends from the other side of the aisle with a plan; and if we will start working together, we can begin to address this problem. But we cannot do it with the game plan that we are under today. The game plan today is giving the results of what the gentleman is showing us right now in the charts.