I want to thank the gentleman from South Carolina, one of our leaders, and my good friend from California for his leadership, his almost weekly leadership on the issue of jobs. Both of my colleagues have discussed long-term declines in the…
I want to thank the gentleman from South Carolina, one of our leaders, and my good friend from California for his leadership, his almost weekly leadership on the issue of jobs. Both of my colleagues have discussed long-term declines in the middle class, much of it owing over the last decade to the policies of this Congress and the Federal Government.
The last thing you would expect Congress would do in the face of a recovery that is still in the throes of recovery is anything to hurt it, so I wanted to come to the floor to discuss the early warning signs we are seeing of jobs loss because of the sequester so that we can do something about it now.
First, let me indicate, quite unexpectedly, the best statistics I've seen in a long time, and how we are stepping on these statistics with each day of the sequester.
The April jobs report unexpectedly showed 165,000 workers added to nonfarm payroll. That was terrific news. What it tells us is that the private sector is making jobs, trying its best, because those jobs were not created in the public sector; those jobs were created in spite of the public sector, in spite of the fact that the Congress is furloughing people, cutting programs to the States and, thus, jobs.
So the April jobs report, you might say, means maybe it's going to be all right after all. Early signs are absolutely not. April reported the first 2 months of the sequester. It's 4 months to go, and already we see horrific news, each day, a kind of rolling disaster on jobs and the economy.
Deep cynicism spread the week before last throughout the country as Americans saw Congress vote to relax the sequester on the air traffic controllers, just as Congress was about to take a week-long recess; deep cynicism because nothing had been done for the American people, for their jobs, for their programs, but the skies were cleared.
Actually, there was a good reason for that, and that reason was, of course, that the controllers, who were only doing their jobs, about 10 percent of them had to be furloughed each week; therefore, with less people, there were slowdowns. That was already beginning to have a catastrophic effect on the economy, and that's why I think, yes, Congress, and even the administration, moved to correct that.
Sequester-driven flight delays were already placing over 80,000 American jobs at risk. And if it had gone on, if just this one sector had gone the full sequester, that would have lost $9 billion, one sector alone, in the economy. All right. One sector. One sector and only one sector.
Have we shown we understand what our bottom line responsibility is?
Whether you come here you think to reduce the deficit, or whether you come here as a Member of Congress you think to add revenue to grow an economy, both sides should agree that the best way, and perhaps the only way, to do that is to create jobs. People with jobs pay into the economy rather than requiring us to spend and add to the deficit.
Yet, when the sequester began and the administration warned of its effect on jobs and the economy, howls came from my good colleagues on the Republican side that the claims of the administration were overblown, that they were exaggerated, that the President was crying wolf, not to mention those of us on the Democratic side.
Here are the early signs, and I bring some examples to the floor this evening because there's still time to correct the sequester. I bring them to the floor to ask the appropriators to do what the President has done in his budget and correct the mistake of the sequester, recognizing that neither Democrats or Republicans anticipated that the sequester would ever happen, so neither side has to take credit or blame if we change it since neither side wanted it.
But look at the early effects, and let's look at some of the effects that flow directly from what Congress has done:
250 workers at the Hanford nuclear reservation laid off;
The contractor that repairs our U.S. Naval ships, Continental Maritime, laid off 185 employees;
418 contract workers laid off at the Tobyhanna Army Depot in Pennsylvania;
Northrop Grumman Information Systems in Lawton, Oklahoma, lays off, or anticipates laying off, 270 workers.
Those jobs add up. I'm not trying to call the roll. I'm trying to give examples of what the sequester directly does to jobs in the military sector, no less.
U.S. Army Garrison-Rock Island Arsenal, 175 employees laid off.
By the way, these are not furloughs. These employees are gone.
That's how we get, I say to my good friend from California, to the CBO figure of the loss of 750,000 jobs. Imagine this Congress doing anything to cause, to be the direct cause of the loss of jobs when we should be trying with all our might to create jobs after the Great Recession.
The examples abound. You will find them with every small business in your district feeling the effect by laying off people or refusing to fill vacancies. You will find it in every sector of the country.
Military bases are now going on a 4-week schedule for schools. Workers at missile testing fields are being fired.
We're having the functional equivalent of the meat inspectors exception to the sequester. Remember that they were the one sector, because we were afraid that rancid meat would appear all over the country, and you have to have meat inspectors to inspect.
Well, now the dairy farmers are saying that they can't get access to production information about milk and are anticipating higher prices on milk. So look at how that affects the farmer, whom he employs, and the milk, that's us, the consumer. That's how it's passed through. That's how it's passed on.
You know, you'd expect some of these examples from a depression, or even the recession that we are just coming out of, but who would have expected that hospitals are now reporting that medical schools anticipate not taking on as many residents, not with the sequester and the amount of money that comes to hospitals from the Federal Government. And they say that means fewer residency spots and fewer doctors in various communities, since residents tend to stay in the communities where they do their residency.
I've come to the floor when we're discussing, jobs precisely because the sequester cuts to jobs in the public sector and the private sector and speaks to whether we're going to make it in America, keeping what we have, much less making in America and growing what we need to have.
The sequester itself is even affecting what was always exempted from cuts in the Congress, public safety cuts, even at the Federal level. U.S. attorneys throughout the country are cutting. We never would have allowed that to happen before.
After Boston, I asked the Federal police forces to come and have a conversation with me. The Capitol Police, the Federal Protective Service, the Park Police, none of them are exempt. And to the extent that they are not doing furloughs, it's because they are requiring people to work tours of duty that no public safety officer should have to work if he really means to keep us safe.
So I say to my good friend, Mr. Garamendi, whom I'm so grateful to for keeping us focused on jobs when every other day we're talking about something else, I'm grateful because these dumb cuts are, above all, cruel cuts.
I haven't begun to mention their effect on the domestic programs for the very needy, the 70,000 children who will be off of Head Start, the 600,000 off of the WIC program, Women, Infants, and Children. That is the program for the most vulnerable children, who will lose basic nutrition assistance.
I was concerned that we weren't paying any attention to this, that it was only crisis by crisis. After the controllers matter came to the floor, the very day we left I, myself, came to the floor and said, with the controllers, you're only moving money around. That's what we did with some appropriations. If we had a budget meeting or even a meeting of any kind of both sides, we'd probably come to a compromise where some of what it would take to get off the sequester might mean doing what we did with the controllers, just moving from one program area to another.
But other ways to relieve the effects of the sequester would surely mean doing the kind of budget we meant to do in the first place. You'd want to do something with respect to matters that can only be fixed by some addition of funds, as, by the way, I think will be done in the next appropriations.
To be sure, sequester cuts go over to the following years, but they'll go a full year, and you will see some funds added just because it will be too heartless, too impossible to otherwise begin to justify.
So I come to have this conversation with my good friend, who focuses us, I think correctly, on the long term. We are forgetting to think about the long term when we see the sequester cuts that have a gnawing effect on the middle class so that, by the time we get to the point when we must do something about it, we will have a very steep hill to climb. That's what Mr. Clyburn was talking about when he talked about what is now an impossibly large income gap of the kind we have not seen in my lifetime, of the kind we are making as we speak.
If the gentleman would yield, this has been a very important, it seems to me, a very clear explanation the gentleman has given as to how we got where we are, and particularly his description of the difference between the European model and the American model. With the European model you would think that would be all the object lesson we would need because Britain is one of our closest allies. And what austerity has done to Europe it will almost certainly do to us.
What I don't understand, Mr. Garamendi, is why my good friends--our good friends--on the other side would believe that you can get something for nothing. Many of them believe in the economy of the private sector. Well, the first thing the private sector does is to invest. Once it invests, it hopes to yield from that investment. The kind of approach you're speaking about says that if you do nothing, if you--you, the Federal Government--step back and contribute nothing to a recovery, then recovery will happen.
Well, let me tell you why I think that's impossible. The economy is of a piece. You can't pull an important piece out and expect the whole to remain whole, particularly when ours is a demand, a consumer-driven economy. What that means is what the Federal Government does is really meant to get people out there spending so that other people can make jobs. Well, the last thing you want to happen, if you want to make sure people have jobs, so that they're spending so that other people have jobs, is to cut back yourself on the jobs that you're responsible for.
The sequester does that with the furloughs. Imagine what will happen in their counties across the United States--3 million Federal workers-- when those workers who feed their economy go on furloughs. That's the equivalent of a job cut. They have got to cut back spending. That cuts back demand. That works its way through the entire economy.
What we're doing is dampening demand because we're sending the signal to the private sector that we are cutting the programs that made jobs. You can look at Head Start as a program for kids if you want to, but I bet the thousands of teachers and other Head Start workers look at it as a jobs program. So if 70,000 kids are gone, imagine how many workers are also gone.
It's almost as if our colleagues don't understand the way the economy works, that you could take one sector of it that's very important--the Federal sector--damp it down, and expect the rest to keep growing. And the operative word, my friend, is ``growth.'' We were doing almost nothing for growth because we had no balanced approach that allowed some revenue to fuel growth. What we're doing now is keeping growth from happening because we are deliberately cutting jobs that we need, which, in turn, feed the economy.
People with jobs buy goods and services. People who make goods and provide services will look to see if anybody is cutting jobs. If I run a department store in my county and the auto plant there lays off people, I cut back on inventory.
Because that's how the economy works. The sequester is working that way, I say to my friend, and we can do something about it. There are 4 months left in this sequester. Before it becomes more of a rolling disaster with some of the examples I have given as emblematic of the disaster, we could, all of us, decide, let's just do a budget, a budget that I'm sure I would disagree with in many ways--in other words, it's not a budget I would want, because my good friends on the other side would want the things they would want. They would want some cuts. I would want to add some revenue, to WIC--Women, Infant and Children, for example. But together, at least we could stop the sequester and stop the catastrophic sequester cuts that drive down jobs as if we were creating a new recession of our own.
You remember how our colleagues said, for 3 or 4 years now, that the Senate refused to do a budget; and if they would just do a budget, then maybe the kind of meetings we've all been calling for would happen and we could work together? They did a budget, and still we get no action so that we can sit down and try to work the sequester out.
If the gentleman will yield on that point?
The point you are making about disparities in income needs to be understood as you are portraying it--as a new phenomenon in American life. That, yes, there were recessions and there were very hard times, and there were times before the New Deal when government did not do much about it.
The kind of policy-made disparity that we are experiencing today, not disparity that comes because a few wealthy people created wealth in the last part of the 19th century, and even then there was a need for so many workers the disparity was not as great as today, but disparities that come straight from policies like failure to raise the minimum wage, come straight from policies like 20-25 years of failing to raise the user fee so that we could build roads.
Now, construction jobs are classic middle class jobs. If we want to build the middle class, we've got to go in the modern era to the post- World War II economy. Americans who didn't have a college education could raise four and five children because they had good manufacturing jobs made in America.
My good friend talks about how if we take the materials for bridges, however, and you buy them in China, we are not making it in America, and we're having a downward effect on our own manufacturing sector. But at the same time, as he points up, infrastructure--he points to the classic way to come out of a recession by building what you would have to build anyway.
Here is the government investing in something that's never controversial, because building roads and bridges and water infrastructure are always the function of government. If you would have to do it anyway, the theory goes, you do it when in the process of doing it you can create jobs and fuel the economy.
We are about to have to do another infrastructure bill. We did one 2 years ago that will last only 2 years because we did not raise the user fee, so it goes for only 2 years at a time. And even though we had some of the materials from abroad--something we've got to keep from doing next time--every bridge had to be built by an American worker, all that cement had to be the work of the American middle class.
If we have to do it anyway, construction is probably the best way to revive the economy in the first place, because it has an effect on all the rest of the economy. It wakes up the rest of the economy.
Because we should be working right now--and I know Mr. Shuster, who's chair of the Transportation and Infrastructure Committee, does want to do something--we ought to be thinking about precisely the sector that you have mentioned, the sector that creates jobs, does what we have to do for the crumbling parts of our country, which turn out to be the parts underground where our water and sewers are and the parts above ground where we drive to and from work every day.
When the gentleman speaks about manufacturing, both of you have spoken about manufacturing in its different aspects.
Look at what is happening today. The private sector is bringing manufacturing home because of the low cost of energy, and we are producing more of our own natural gas because of the low cost of energy. The government just needs to do its part. Don't countermand what the private sector is doing. Do what the gentleman says. Don't take jobs from Youngstown. Help Youngstown to rebuild Youngstown. It's going to be built anyway. Now is the time to rebuild it.
So I thank the gentleman for yielding to us in this very important discussion every week.