Thank you, Mr. Speaker. Mr. Speaker, a lot of times people ask me why do you have a Special Order when the Chamber is not in session and it doesn't appear anybody's paying any attention. We all have monitors back in our offices, and many…
Thank you, Mr. Speaker.
Mr. Speaker, a lot of times people ask me why do you have a Special Order when the Chamber is not in session and it doesn't appear anybody's paying any attention. We all have monitors back in our offices, and many of our Members who are not in attendance get a chance to hear what other Members have to say during Special Orders. It also allows us, if people across the country happen to be paying attention to what's going on in Washington, it gives them a chance to see and hear some of the issues that we're talking about.
One of the things that really concerns me that I hope everybody's concerned about is the terrible spending problem we have here in Washington, and that spending problem, and what that spending problem causes. When you spend more money and you print more money and it gets into circulation, that's called inflating the money supply. When you inflate the money supply, ultimately that means that everything that money buys goes up in cost.
The trucks that transport our goods and services across the country have to pay for more diesel fuel, more for licenses, more for anything else; and all those costs are passed on to the people whose products they carry, and those people who make those products have to make a profit, so they have to raise the price of those products to the people who buy those products, whether it's a supermarket or a clothing store or whatever it is. Then when the consumer goes to buy those products that are transported, they have to pay more for them; and that's what we call inflation.
Now, we have, in the last couple of years, during the Obama administration, and the last part of the Bush administration, passed a bailout bill and a stimulus bill that have cost, collectively, close to $2 trillion. That does not cover the other programs that have been increased, thus costing more money to the government and the taxpayer.
Then just recently, because we had these terrible crises on Wall Street and the banking crisis that we've had, we had the bailout, which cost well over $1 trillion when you talk about the interest that's added to it; and because the economy continues to founder and we have unemployment that's above 9 percent, the Fed decided to have what they call QE1, quantitative easing, which increased the money supply again by several hundred billion dollars. And then we had quantitative easing, or QE2, which has raised the amount of money in circulation and exacerbated the problem that we're all facing today.
So I'd like to talk just a little bit about how this affects the average person. Mr. Bernanke, who's the head of the Federal Reserve Board, said that we don't have to worry about inflation. He said that, long term, the inflation rate is not going to get above 1.7 to 2 percent.
But let's just look at what the average person has to pay when they go to the store or the gas station to buy products. Milk--and everybody drinks milk, especially if you have kids--has gone up 38 percent since last year. That means if you buy milk, for every dollar you're spending it costs $1.38, as opposed to last year. That's inflation.
The price of sugar--and sugar's used in cookies and cakes and all the things that we use on a daily basis, chewing gum, everything--has gone up 20 percent since last year. That's inflation.
The price of corn, which is used in feed for our animals, it's used in gasoline now, it's used on a daily basis by people across this country, corn has gone up 62 percent in the last year. So for each dollar that you spent for corn a year ago, now it costs $1.62.
And as of August, the cost of beef, hamburger, steaks, whatever you buy, went up 13 percent over last year, and that amounts to about 52 cents a pound. So when you go buy a pound of hamburger, it's going to cost about 52 cents more than it did a year ago. That's killing the American people.
They tell us we do not have inflation, and anybody that goes to buy groceries or any commodity that's transported across this country is paying a heck of a lot more than they did last year. So when the administration and the Fed and the Treasury Department say we don't have an inflationary problem, talk to your wife, husband, talk to your wife. Wife, talk to your husband when he goes to buy gasoline.
And everybody knows that the amount of money they're making is not keeping up with inflation. That's why we have to get control of spending here in Washington. We have to get control of the entitlements. We have to get control of every government agency, and we have to get rid of a lot of government agencies that are not doing anything to really help our economy or our country.
Take, for instance, the Department of Education. Everybody says, well, we need to have a Department of Education. Why? Education is supposed to be conducted at the State and local level, controlled by the State and local governments. But we have an Education Department, and what has the Education Department contributed to our society? The quality of education has gone down, down, down, to where we're one of the least educated, as far as the quality of education is concerned, least educated countries in the western world, in the industrial world. So the Department of Education really isn't contributing anything except gobbling up an awful lot of our taxpayers' dollars. There's a whole host of agencies like that that we need to get rid of because we don't have the money to pay for them.
And yet the President came up the other night and he spoke in this Chamber, and he said we're going to have to spend another $447 billion for a jobs bill. It's the same old story being written again and again by the administration. That's what we tried to do with the bailout and the stimulus bill and these other things.
Remember the shovel-ready projects? The President said, well, we didn't have as many shovel-ready projects as we wanted to. As a result, we didn't see anything except more and more unemployment.
Throwing money at the problem does not solve the problem. All it does is cost the taxpayers more money, either in taxes or in a hidden tax that they pay when they go to buy food, clothes, groceries, or gasoline to get to and from work; and that's the problem that we have right now.
The President has a socialistic European approach to government. He believes that government ought to control health care. He believes that government ought to control the energy sector. And if we pass what was called cap-and-trade, which would deal with energy and the emission of CO2 into the atmosphere, it would raise the cost of electricity and everything else that we use dramatically. In fact, he said himself during his campaign, or even before that, that cap-and- trade would essentially cause the prices to skyrocket for energy, just another thing that the American people have to pay for.
We don't have the money in our pockets. People's salaries aren't going up. We've got a huge number of people unemployed. We're paying unemployment to them on a weekly basis so that they can survive. They don't have the money.
But the government keeps spending and spending and spending, and we can no longer afford it because it's going to hit us with higher taxes. That's what he talked about right here last week: more taxes that we don't have, more spending that we can't afford, which leads to more inflation that people are feeling right now.
And if people don't believe me who may be paying attention to this, and I'm talking to my colleagues back in their offices, talk to your wife or your husband when they buy gasoline or go to the store. The average inflation rate right now I would guess is somewhere around 13 percent, and that is something we cannot afford. It's going to kill this economy and kill this country as the country that we've known all of our lives, and what we're passing on to our children is a lower standard of living than we've had, and we cannot afford that any longer.
What we need to do is streamline government, go back into our entitlements--Medicare, Medicaid, and Social Security--and figure out better ways, not eliminate them, but better ways to solve that problem. This House has sent a plan over to the Senate that would do that in an efficient and economic way and not bankrupt the country and solve that problem.
We need to go through every agency of government, and if they're not doing their job or if they're not necessary, get rid of them, cut them out, reduce the size of government, cut government spending.
Then, in addition to that, we ought to do like Ronald Reagan did when he came into office and we had double-digit inflation; double-digit unemployment, and double-digit interest rates. It was actually as bad or worse than it is right now. And he came in and he said instead of raising taxes, as they said he had to do, because they said that would bring revenue into the Treasury, he said, no, we're going to cut taxes.
And the reason he did that was because if you raise taxes, you take money out of business, you take money out of people's pockets, and that's money they can't spend. If they don't spend, they can't buy. If they can't buy, we don't produce. And if you don't produce, more and more people who do the producing are laid off and are going to the unemployment lines.
Conversely, if you cut taxes, you give business and industry more money to invest. You give individuals more money to spend. They can buy more and invest more, and we produce more because people can buy it, and that creates jobs. And when we create jobs, we create more taxpayers. And we went from $500 billion in tax revenue under Reagan to $1.3 trillion--almost triple--because we cut taxes and stimulated economic growth.
This administration believes in more government control over our entire economy and our society, and that's the reason we're in the mess we're in today, because government cannot create something unless it takes something away. We can't give jobs that the government creates unless we take it from you, the taxpayer, and that means either raise taxes or spend money we don't have and print it, and that creates inflation, which is a hidden tax on everybody in this country.
The bottom line is this country is in a very difficult situation. I serve as chairman of the Subcommittee on Europe and Eurasia. I'm going to be going to Greece in a couple of weeks. Greece has a socialistic economy. They're going down the tubes right now, and they're trying to find some way to bail themselves out. They're raising taxes. They're raising taxes on everything, electricity, everything they can. They're cutting the benefits to the people that work there because the benefits have been too high and the government can't afford them. All of these things, the salaries are being cut.
And what's happening in Greece is it's going belly up. And the effect of it is on all of the other countries that have investments in Greece, the banking, the financial institutions, all of them are really in trouble, and they're talking about a potential domino effect because of the failure of Greece and because of the socialistic approach that they've taken.
Italy's in trouble, Portugal's in trouble, Spain's in trouble, even France is in trouble because they've invested a lot of money through the financial institutions into Greece. The whole European continent's in trouble because of the socialistic approach to government.
The thing that's kept America so strong all of our lives is free enterprise, the profit incentive for a businessman or a person to say, I want to make something of myself. And they open a gas station or a store and they work their tails off, and they have a chance to make their lives better. But when government starts taking over everything, it ruins it. That's what's happening in many countries in Europe, especially Greece.
So if any of my colleagues are paying attention on the Democrat side of the aisle or who are Independents or who are on the Republican side, I hope that you will realize the number one thing we have to do right now is get this government under control.
We need to cut regulations so business isn't strangled by the regulations that are costing them more and more money that they have to pass on to the consumer or they have to fire people because they can't afford them. We've got to cut taxes to stimulate economic growth, and that will bring more money into the Treasury, just like it did under President Reagan. And we've got to make sure that we eliminate unnecessary spending in these agencies of government like the Department of Education. Get rid of them because they're not doing anything except gobbling up our money.
If we do that, we're going to turn this country around, and we will remain the greatest country in the history of mankind. If we don't, if we continue down the road that this administration is taking us down, moving us towards socialism, toward government control over health care, energy, everything, then we'll see the quality of life that
we've enjoyed go right down the tubes. It's up to the American people, and it's up to us in Congress to take the bull by the horns and deal with this.
So I say to my colleagues, please, pay attention to what I've said tonight. You may not agree with everything, but if you'll study the things that I've studied and look at what's going on in Europe, you'll understand very clearly that what I've said has merit, and we need to do it.
With that, Mr. Speaker, I yield back the balance of my time.