I thank my friend for yielding. I will just make a few additional points. How many times have we heard, it's your money, we're going to give it back to you? How many times have we heard this from this side of the aisle? Let us clarify the…
I thank my friend for yielding. I will just make a few additional points.
How many times have we heard, it's your money, we're going to give it back to you? How many times have we heard this from this side of the aisle?
Let us clarify the record. Borrowing money on our grandchildren's future in order to give it to us today in a tax cut, is that really your money? Or is it their money? I happen to believe it is their money. That is why the Blue Dogs have been begging and pleading, arguing, taking Special Orders, presenting an alternative budget. Sometimes we get to vote on it. Other times we do not. But we have been trying to point out the seriousness of the direction of the economy of this country. The Secretary of the Treasury has announced this week that they have used all of their legal tools to avoid default and will run out of borrowing authority by June 2.
I remember a few years ago when the previous administration did this, used all of the legal tools available to avoid default, we had cries of impeachment, impeach Secretary Rubin for doing what Secretary Snow is doing, perfectly legal; but this week now the Senate is going to have to vote. We were so brave when we passed the budget in the House that we hid it in the budget. No one in this body wants to vote on increasing the debt ceiling by $984 billion. The Senate is going to have to vote on it. There will be 12 amendments on the floor of the Senate which our fellow Senators on the Democratic side have got an opportunity to amend this debt ceiling. I hope they amend it. I hope they send it back.
I would like to see them do what we are prepared to do on this side and, that is, offer unanimous consent to increase the debt ceiling by $375 billion effective immediately, provided the President will resubmit a budget that will balance by 2008, unified balance. Resubmit the economic game plan for this country instead of blindly following the borrow-and-spend policies that we are now under. How I remember the tax-and-spend Democratic cries that came over and over and over again. What is the difference between borrow and spend?
To those that suggest that this economic game plan that we are under is working, why will we as a Nation owe $13 trillion by 2013, 2012, if everything works exactly like the economic game plan supporters say it will work? Not worse, not better. Why will we owe that much? Do we realize that in 2012, this country owing $13 trillion, it will require taxes of $520 billion just to pay the interest on this debt? $520 billion. That is assuming 4 percent interest. But anyone that believes that interest rates are going to stay low with the United States conducting our fiscal policy like we are conducting it has got to be dreaming.
One of the happier times of my life is when I stood on this floor and we passed the balanced budget constitutional amendment in 1995. One of the saddest times was standing in the back of the Senate when it went down by one vote. If we had passed the balanced budget constitutional amendment in 1995, we could not have the tax cut on the floor in Congress, in conference going on right now. That is another thing. We are going to have another vote on the balanced budget amendment. I am for it. But I do not see how we stand the laugh test from this side of the aisle unless we submit a budget that balances. The Blue Dogs did. We
submitted a budget that balanced by 2008. We did.
Those who are listening and looking right now, saying, well, there they go, there's those big-spending Democrats. Let me make it very clear, the Blue Dogs that you are hearing from today, we say the President's spending numbers are adequate. We will not propose spending one dime more than the President asked us to spend. Spending is not the issue. It is the economic game plan that we are under. The tax cuts with borrowed money on our grandchildren's future is what the problem is all about.
Just as the gentleman from Tennessee and the gentleman from Florida said a moment ago, borrowing money by itself is not a sin. Everyone does that. We borrow to build a home, we borrow to farm, we borrow to conduct our small businesses. We go to our banker. We explain the rationale for why we are borrowing the money. If we have a good story, they loan us the money. That makes sense. I agree with the gentleman from Tennessee. Take a look at Mr. Buffett's comments today. One of the best rhetorical answers to what the Blue Dogs are talking about that you could possibly have, the best that you could have, questioning the makeup of the tax cuts. And then you have got the Concord Coalition, bipartisan, that has been saying over and over and over again to this Congress, get your fiscal house in order, quit borrowing money on your children's and grandchildren's future. I do not know what it is going to take, because in this body everybody on the majority is just hoping and hoping that the Senate will not amend the debt ceiling so we do not have to vote on it.
But let me issue a little warning tonight to those that believe we are going to escape. Based on current figures, the deteriorating situation of the budget of this country, the deteriorating condition of the economy of this country that has caused this problem indicates that $984 billion is not going to be enough to get us to November 4, 2004.
I take no satisfaction in that. Because if in fact that is true, that is a serious matter. We believe it to be true. We are not here to be critical without offering a constructive alternative, which we have over and over and over again. Back off from this rhetoric, back off from this rhetoric that says it is their money. It is not their money. They are borrowing on their grandchildren's future. It is not their money.
And just as the gentleman from Tennessee (Mr. Tanner) made the statement a moment ago, and it bears repeating, these are the first wars, and I say wars, Afghanistan, Iraq, the war on terrorism, these are the first wars since 1812 that Congress did not raise taxes in order to pay for the war. No one is suggesting raising taxes. No one. But many of us are saying why and under what circumstance can we afford to have additional tax cuts under this situation?
I do not know what it is going to take. I do not know what it is going to take to get people to start focusing. I do not know how long we are going to be able to buy $500 billion of materials and products from the rest of the world more than they buy from us without the law of economics or the law of politics taking over. I do not know.
And of course we know the reason we have been able to do that is others are reinvesting in the United States. How long are foreign investors, now approaching 35 percent of owning all of our debt, scheduled to go to 40, how long are they going to continue to invest in our country if we run our country as we are now running it? Borrowing, borrowing, borrowing, spending, spending and spending. Increasing, increasing, increasing our Nation's debt.
I yield to the gentleman from Indiana.
I start again referring to our grandchildren. 2011 is when the baby boomers begin to retire. Everyone knows there is no disputing that the economic pressures on this country in 2011 and 2012, when the baby boomers begin to retire and begin to draw their Social Security and begin to qualify for Medicare, the pressures on this country are going to be tremendous. That is why we think balancing the budget before we get there so that there will be the money in order to pay off the obligations to those which have been promised under current Social Security law.
So first off to those intending to retire in 2011, it is in their best self-interest that we honor the pledges that were made to them. Then we back off to the grandchildren, and of course they are not old enough to answer this question. They are not old enough to wonder. My two grandsons right now, seven and five, they would not have a clue what I am talking about right now. But the young working men and women just graduating from high school, going on to college, just graduating from college, about to get a job, they understand. They already know that they wish that Congress would make the changes today in the Social Security system so they might have something that is not just promised but that can be reality. If we do not deal with the fiscal problems of this country today, they will not be able to get that which they are promised to receive.
What does it mean to the average family having dinner tonight? Some of them remember 15 percent interest, 20 percent interest, trying to buy a car, 15 percent interest. Some of them remember what it was like when we had let our economic game plan get out of control. Many of them I would hope would see today that, with the decline in interest rates, they have had a tax cut. An increase in interest rates is going to be a tax increase, just as sure as we are standing here tonight. There is a balance involved in this.
Home building, homeownership, that is something that we pride ourselves in, rightfully so. We support the policies, and we hope we allow more and more families to gain homeownership. We let interest rates get out of control, we will see that dream vanish in a puff of smoke. So this is something I know what the gentleman is getting at and something that I struggle with at home. How do we relate this?
I do not take pleasure in opposing the President of the United States in anything. I have served now with five Presidents. I do not take joy, as some of my colleagues have said, in opposing the President. Basically, the only major area of difference that I have is on this economic game plan because of what I honestly and sincerely believe it is going to mean to the average working men and women. But my dedication to this and the simple answer I give to the gentleman's question is do not forget about our grandchildren.
About 10 years ago, of the 10 largest banks in the world, nine of them were in Japan. All nine of them today are in deep trouble. Deep trouble.
We have an obligation, and somehow, some way the American public is going to have to realize that our country is no different than that family that we are talking about having dinner tonight, that when they sit around and decide how are we going to spend Dad's raise that he did not get? How are we going to spend Mom's raise that she did not get? When one gets to that point in which they do not get the raise, they make readjustments.
And this surplus that is our money, we are going to give it back to them, is kind of like their not getting the raise. The money is not there, and therefore if the money is not there, they readjust, and they certainly do not spend money they do not have unless they are willing to take the chance.
Or put it another way. Would their banker really lend them the money for the tax cut that we are talking about today? Is it really going to benefit the average working family, as our colleagues on the other side say every day? Mr. Buffet says no. Mr. Buffet is right.
I thank the gentleman for yielding, and I appreciate his taking this Special Order today. I hope that somehow, some way as we repeat this, the Senators will find a way to amend this
debt ceiling and send it back over so that we might pass a debt ceiling without bringing our country to the point of default. We are willing to do that by unanimous consent tomorrow; and we should do it tomorrow, quite frankly. We ought to do it right here so we do not go to brinksmanship with the Senate. We ought to do it. We are willing to do it.