Thank you, Madam Speaker. I also would like to thank and congratulate the previous speaker for her outstanding summary of some of the issues that will be facing this House later this week. It is, as she said, a bill that will enhance big…
Thank you, Madam Speaker.
I also would like to thank and congratulate the previous speaker for her
outstanding summary of some of the issues that will be facing this House later this week. It is, as she said, a bill that will enhance big banking at the expense of small community banking. Her hard work on this issue is appreciated on both sides of the aisle. Thank you very much to the gentlelady for that excellent summary of the bill. There are so many issues about which, if we could work together on a bipartisan basis, I feel we could come up with better legislation.
What I intend to talk about this evening is an area about which we have not had much bipartisan dialogue. That is, of course, over the budget, our debt and the deficit.
It is official now. We will not have a budget this year. This will be the first time since the Budget Act of 1974 was passed, creating the system we have for budgeting and for making expenditures now, that we will not have had a budget. It is the very first time since 1974. Every year, the House has passed a budget. I believe, almost every year, the Senate has passed a budget. There were years when they haven't agreed, but every year, the House met its obligation and passed a budget.
You know, the current chairman of the House Budget Committee, who, of course, is a member of the majority party, has said, if you can't budget, you can't govern. I couldn't agree more. If you can't budget, you can't govern. We are not going to budget this year. We, therefore, are not going to be governing this year in a manner that the American people expect and deserve, so it is a source of tremendous disappointment for me.
We were also told and learned last week that we will see none of the major appropriations bills before the November election. That is an indication to me that the majority party recognizes that it has overspent for 18 months, that the American people are tired of the overspending, that they are zeroed in on the debt and the deficit, and that they are not going to take it anymore.
There are ideas that the Republican Party has had to reduce the debt and the deficit in order to bring down the size and scope of the Federal Government and to divorce ourselves from the current strategy of big government, big unions, big business. Among the big businesses are those that the gentlelady from the majority party, from Ohio, just talked about in the last half an hour. Always supporting bigger government, bigger business, bigger unions takes away from our communities, which is where the creativity is, which is where the desire to create jobs and families and businesses and households and churches and charitable institutions really grows and thrives. It deletes those kinds of opportunities around our country. It discourages those kinds of opportunities around our country.
Our country is truly at a crossroads now.
We have seen very different reactions on the part of the people in, say, Greece, which is experiencing enormous financial problems--huge debts and deficits. The people there who are demonstrating, rioting and who are out on the streets are those who receive the benefits of the Government of Greece. They are those who are living off the very, very small private sector, which is trying to fund this behemoth of a government with all kinds of social services and entitlement programs that they can't afford because the programs and services are unsustainable, which is sending--plummeting--their country into the kinds of debts and deficits that have gotten them into such deep financial trouble.
All of the world is horribly concerned.
Take that image and compare it to the image of the United States in the last 18 months. You had the so-called Tea Partiers who were out on April 15. They were protesting big spending, protesting big government and protesting later in the year this enormous health care bill that Congress passed over their objections. These are the kinds of people who are up in arms in America and who are out demonstrating and protesting. They are the taxpayers. They are the people who want less government--smaller government--and more efficient government. They are the people who want business to be more accountable and who want government to be more transparent. These are the people who are protesting in the United States, and these are the people who we should be listening to.
In fact, I want to congratulate one Governor who was listening, who has listened and who did a miraculous thing in the last few months. He is the new Governor of the State of New Jersey, Governor Christie.
Governor Christie took over from a big-spending administration. He inherited a big-spending legislature in New Jersey. Yet he ran on an agenda that resonated with the people of New Jersey. He ran on an agenda to cut the debt in the State of New Jersey, and he has done so. He brought forward budgets that cut the government.
The majority in the legislature there said, Oh, my gosh. We can't do that.
So he said, Here is my budget. I am going to make these cuts, and I am going to make these cuts unless you submit to me a budget that is balanced.
Last night, very, very late--in the wee hours of the morning--that very legislature passed Governor Christie's budget. The State of New Jersey, in the signing of that budget by Governor Christie, has become among the most fiscally responsible States in the United States.
It is a miraculous story. It is a story of the American people--in their case, the people of New Jersey--winning out over big government, special interests, entitlement programs we can't afford, and giving new life to small business, individual initiative, freedom.
It is a great example of what this Congress can do come November.
I am going to put up a couple of charts that I want you to see.
This first one is about the changing priorities of this country with regard to spending over time, starting in the 1970s and moving into our current decade.
As you can see, during the late 1960s and early 1970s, the major portion of our budget, almost 50 percent of our Federal budget, was spent on defense. Obviously, this was at the height of and then followed by the waning of the war in Vietnam. This is when the draft was no longer in effect. Ever since then, defense spending has consumed a smaller and smaller part of our Federal budget. It is the brown line. So it is up a little bit with the war on terror, but compared to our other spending, it is still very, very steady, and within the realm it has been over the last 20 years.
Now let's look at Medicare and Medicaid. This is the red line. This is the line that started out as a very small 5 percent component of our budget in the 1970s and has been steadily climbing, and is climbing still to the point where Medicare and Medicaid are going to choke out all other spending if we project it forward.
The two in the middle, Social Security, which has been tremendously flat and pretty steady, actually is going to be funded until the 2030s. But when we hit the 2030s, we are going to see a 25 percent reduction in the benefits paid to those who have paid into Social Security, another problem this Congress needs to address on a bipartisan basis. Then the other, of course, is nondefense discretionary, which over time has followed a wave in between.
So the big changes are the decline in defense spending as a portion of the Federal budget and the massive replacement of this spending in Medicare and Medicaid.
Now, one could say that is a good thing, and indeed it is, that we are not having to spend as big a portion of our Federal budget on defense. But the scary part is that the growth in entitlement programs, Medicare and Medicaid, is going to be unabated and is going to crowd out other investments in our country, because we are going to have to, in addition to all the other things we do, debt finance these programs.
When we debt finance and are paying interest out of every year's budget for interest on the debt, we are crowding out other investments, and by crowding out other investments in our economy, we are marching down the road towards Greece, towards Italy, towards Spain, towards the kind of problems the U.K. has been having, but is changing course on and is going to address, and we wish them the best in those efforts.
Now, where did the money go? These are components of the 2009 deficit
growth in billions. Here is the Federal budget deficit, the places where the Federal deficit tripled in one fiscal year as tax revenues fell and Congress pumped out large sums to stabilize financial institutions and stimulate the economy, creating a tripling in the Federal deficit in one fiscal year. Furthermore, the policies we have enacted will double the debt in five years and triple the debt in 10 years. So the situation that we put ourselves in in the last 18 months creates dire circumstances.
So the components of the 2009 deficit growth occurred due to lower tax receipts, and that is part of our recession, and stimulus, half in spending and half in lower taxes. The Republicans, quite frankly, had a stimulus package that would have created twice as many jobs with half the size of a stimulus, and doing it by infrastructure spending through private sector investment.
The next item, bailouts for financial institutions and the auto industry, bailouts for Fannie Mae and Freddie Mac. Unfortunately, we are not addressing the structural problems with Fannie Mae and Freddie Mac in the financial reform bill, in the conference committee, which has concluded its efforts. Then we have unemployment benefits due to the recession which have been running steadily until recently. Then the remainder is a collection of aggregation of other spending. So that explains how our Federal budget has trended the way it has.
This was before we passed ObamaCare. This budget was passed before the health care reform bill, which adds a huge other component to the debt and the deficit. We know that that bill, if you take the years 2010 to 2020, is going to cost over $1 trillion, half of which is going to come out of cuts in Medicare and the other half out of tax increases. But we are only paying out, as you will recall, six or seven years of benefits for 10 years of taxes and Medicare cuts.
When you combine the first 10 years, where we are actually collecting taxes, cutting spending on Medicare, and combine that 10 years with 10 years of benefits, we are talking about a deficit of $2.4 trillion, and that would be what it would be going forward.
In other words, we created a program that we knew had a long-term structural deficit that was enormous and did it knowingly, leaving for future generations the tough decisions about how to pay for it.
Creating an entitlement that you know you can't pay for and that creates structural deficits for our children kicks the can down the road to a generation that deserves to inherit a better country. No wonder when you poll the American people, they will say that we inherited a better America from our parents, but our children will not be inheriting as high a standard of living from us as we inherited from our parents. That is unconscionable.
I have been joined this evening by the gentleman from Pennsylvania, who has made his career in health care and may wish to comment further on that or anything else. I am so pleased you have chosen to join me this evening, and I yield the time to you.
I thank the gentleman for joining me. As some of you are aware, AmericaSpeakingOut.com is a Web site where all Americans can go to weigh in about their views on the American debt, deficit, and about ideas to reduce the size and scope of government, and right-size it, make it more efficient, and anything else you have in mind about shaping the activities of this Congress. We very much want to hear from you. AmericaSpeakingOut.com gives you a chance to share your ideas with Members of Congress. And we very much commend it to your attention.
I have a bill that I'd like to discuss that I'd like you to put in a plug for on AmericaSpeakingOut.com, and that is a bill called the Federal Workforce Reduction Act. It is a bill that I'm sponsoring and that I've used this information to help explain.
This year in Congress, when you add up all the spending we've done in the last 18 months, the great growth sector in terms of employment has been government. In fact, when we passed the stimulus bill--and we were told that if we pass the stimulus bill it will keep unemployment under 8 percent, and employment since this has been hovering at around 9.7 percent and as high as 10, 10.1 percent. During that time, 9 million private sector jobs were lost. The entrepreneurial economy lost jobs, and yet the only sector that grew was government.
Government employment has increased by 15 percent during the time when 9 million jobs were lost in the private sector. And this shows you what is happening to Federal Government employment. It actually was pretty high back in 1993, but over the decade of the nineties it declined. Then it experienced right after the 9/11 bump in employment associated with homeland security, it experienced tremendous stability in 2003, 2004, 2005, 2006, 2007.
And then you get to 2008 and 2009 and then 2010, where it goes off the charts. It shows that Federal Government employment has absolutely skyrocketed. And further, Federal Government employment has grown in terms of the salaries that are paid. They far exceed average salaries in the private sector. Even here at the U.S. Department of Education in Washington, the average
employee makes twice as much as the average American teacher. Imagine that. The people here in Washington are making twice as much--the bureaucrats dealing with education issues--making twice as much as the classroom teacher in America who's actually teaching the students.
So for these reasons I sponsored the Workforce Reduction Act. And this bill does a couple of things: one, it freezes Federal Government employment; and, secondly, for every year we're running a deficit, we will take vacant positions. When someone retires or someone moves to another job, their position is vacated. Those positions then will go into an employment pool and agencies will have to seek reinstatement of that position so they can hire someone into that position from the employment pool. They'll have to justify it and they'll have to compete for those positions because for every two people who leave their job and vacate a position, only one position survives in the pool, thereby reducing the number of Federal employees through attrition.
We're not firing anybody. We're doing it through attrition. When people retire or leave their job, the number of Federal employees would diminish. The exempt agencies from this plan are Homeland Security, Defense, and Veterans Affairs. Every other agency is subject to it. And this will continue for as long as we run deficits.
The fact that Federal employment has grown by 15 percent when the private sector lost 9 million jobs is just completely unconscionable. It is in furtherance of the big government, big unions, big business agenda that is being advanced through this Congress in the last 18 months, when we should be having small, efficient government. We should be encouraging small business where the job creation is. And we should be encouraging union membership in small relationships that can deal directly with employers on the job site rather than the huge national organizations that have their tentacles in every aspect of every bill that we pass.
So please go to AmericaSpeakingOut.com and weigh in on your thoughts.
We have been joined now by the gentleman from Florida, who is also a distinguished member of this conference. I will yield time to the gentleman from Florida. Thank you for joining us.
I thank the gentleman from Florida, Mr. Diaz-Balart, for his very succinct summary of why we haven't seen a budget and why we're not going to see a budget this year. And the answer, of course, is that it is so out of balance, we are spending so much more than we take in that there is a level of embarrassment. Instead of cutting spending, instead of even making a beginning to cutting spending, the answer of the majority party is to not present a budget at all.
I return, again, to the Budget Committee chairman's own words: If you can't budget, you can't govern.
I understand that there used to be, within the Congress, a committee that was, in essence, a counterbalance to the Appropriations Committee. Since the Appropriations Committee spends money, that there was actually a committee that would determine where we could cut, what Federal agencies could be eliminated, which ones could be downsized, which ones could be more efficient. And maybe that's an idea that needs to be resurrected. If you believe that, please go to Americaspeakingout.com and let us know. Weigh in on these ideas. Give us your creative ideas.
I want to especially encourage people who have served in their state legislature to go to Americaspeakingout.com.
States are the great incubators of good ideas. States try out ideas that give the Federal Government a chance to see whether they work or fail. New Jersey's doing that right now. New Jersey's taking the lead. New Jersey's cutting spending. New Jersey's doing it at the request of their constituents. The people in New Jersey are once again in control of the government in New Jersey. And if it works in New Jersey, it's certainly worth a try here in Washington.
One other point I'd like to make that the gentleman from Florida also hit on, and that is, when we're borrowing money from other countries, and have to pay it back with these extraordinary numbers, such as $1 trillion, every time we borrow we're putting ourselves in the position where we have to pay higher interest.
In the last month, the U.S. Treasury issued some Treasury bonds, and that issue went undersubscribed, which means there were not enough buyers to buy U.S. Treasuries at the interest rate at which they were being offered.
Now, the alternative we have when that occurs is to raise the interest rates because, for heavens sakes, we're on track to need the money, to have to borrow the money. The Treasury can't come back to Congress and say, we couldn't sell them at that interest rate. You all are going to have to cut. That's not the Treasury's job.
The Treasury's job is to issue U.S. treasuries to cover our debt. But when nobody will buy them at the rate for which they're being offered, their only alternative is to raise the interest rate and issue them again.
So the borrower, the purchaser of those debts gets a higher return, and they get it from people who are paying taxes. So more and more of your tax dollars is going to go to pay interest on the national debt.
Problem is, as the gentleman from Florida pointed out, we're not taking in enough money this year to pay what we're going to spend this year. We didn't take in enough money last year to pay what we spent last year. We're not going to take in enough money next year, under current projections, to pay what we're spending next year. And on and on and on.
This is a structural deficit, in other words. There's no end in sight to spending more than we're taking in every year. The only way to fill the gap is to borrow more money. And when we can't sell those debts at an interest rate that will attract buyers, we have to raise the interest rate to attract more buyers. The circle is vicious. It is ugly. And the American people are going to foot the bill, especially the young people that are coming up. And they don't want this on their tab. We're hearing from younger Americans now. They don't want this on their tab. I don't want this on their tab either.
I yield again to the gentleman from Florida.
I thank the gentleman from Florida. Mr. Diaz-Balart has been a powerful spokesman for responsible Federal budgeting.
I now once again would like to recognize my colleague from Pennsylvania (Mr. Thompson), who will be talking further about this issue. And I want to remind people, please do go to AmericaSpeakingOut.com. Also go to the whip's Web site, Mr. Cantor, who has YouCut on it. Or you can go to the Republican Conference Web site. YouCut is the icon you want to click so you too can vote on ways to cut the Federal budget.
We have identified half a trillion dollars' worth of cuts, and we want to know whether you think they are the right cuts. So please go to YouCut in addition to AmericaSpeakingOut.com.
And again I yield to the gentleman from Pennsylvania.
I thank the gentleman from Pennsylvania for joining me this evening, in addition to the gentleman from Florida.
We have been trying to point out the structural deficit and debt that this country can no longer absorb and that we have to address. So it does my heart good to see the gentleman from Pennsylvania get so excited about the notion of cutting spending. And we want the American people to share our enthusiasm for cutting spending. We want the American people to weigh in. AmericaSpeakingOut.com and YouCut are two ways that you can do that.
I talk to people in Wyoming every weekend when I go home, and they share with me their thoughts about reducing spending. They see irresponsible spending, inefficient spending. They know where it is. And there are people all over this country who know where it is. So please share with us your ideas so we can create an exciting new agenda for this country that actually takes a slice out of inefficient government, and we get leaner and more able to maneuver, and give more room in our economy to a growing entrepreneurial sector that can create jobs and that isn't shackled by oppressive taxes, but pays an amount of taxes that are commensurate with their ability to unleash their creativity and create jobs and have the money available to borrow and expand and grow and create a vibrant America in our communities, in our churches, in our States, where the great incubators of ideas, where the great spirit of entrepreneurism is really alive and well.
I thank the gentleman from Pennsylvania for joining me. Do you have any concluding remarks?
I thank the gentleman from Pennsylvania for joining me.
You've been hearing about our concern that this year, for the first time since we had the Budget Act in 1974, we are not going to pass a budget in the U.S. House, and it's because the majority party does not want the American people focused on how serious the situation is, how huge the gap is between the revenues we take in and the amount of money we're spending.
Imagine a Congress that gets together and is more excited about reducing spending, saving money, finding efficiency, reducing the debt, cutting the deficit, and celebrating it with the American people, in concert with the American people. Imagine going to a tea party where everyone is celebrating the fact that for the first time ever the Federal Government cut spending. That's going to be something to celebrate. That will be something to be proud of.
You can help with it. Go to americaspeakingout.com; go to YouCut, give us your ideas. Let's build the momentum so this Congress can celebrate with the American people the return to a more stable, vibrant, robust American economy, driven by the American people. The American people are still in control of this country. It can get really discouraging sitting around here voting and getting defeated on vote after vote after vote. That's been happening to me for the last 18 months. But the great reward is I know the American people are in control, and I thank you for the opportunity to discuss these issues with you this evening.