Madam Speaker, I rise today to share a speech I gave to the National Academies' convocation on April 29, 2008 on the second anniversary of the release of the ``Gathering Storm.'' I was honored to have had the opportunity to address some of…
Madam Speaker, I rise today to share a speech I gave to the National Academies' convocation on April 29, 2008 on the second anniversary of the release of the ``Gathering Storm.'' I was honored to have had the opportunity to address some of our nation's top business, academic, and scientific leaders at the convocation.
As you may recall, the report painted a very bleak picture of our Nation's high-tech workforce, innovation, and global competitiveness. It prompted swift congressional action to authorize new funding and resources to bolster our science and high-tech workforce, culminating with the enactment of the America COMPETES Act last fall.
However, I am concerned that we still have much work to do to secure our economic future in this global marketplace. And we will never be competitive if we cannot get the Federal Government's finances in order and begin to reduce our dependency on foreign debt.
Madam Speaker, my address as prepared to the ``Gathering Storm'' convocation follows:
Thank you for the opportunity to address this gathering. As
the fourth of five ``congressional perspectives'' on the
program this morning, I'm reminded of the old Congressman Mo
Udall quote: ``Everything has been said but not everyone has
said it.''
First, I want to thank you all for your efforts. I am
pleased that so many of our nation's science, business, and
government leaders have once again gathered to discuss this
most pressing of issues challenging the United States.
Perhaps the greatest success of the ``Gathering Storm''
report thus far is the tremendous awareness and urgency it
has raised among the American people.
It was only a few years ago, in 2005, that Rep. Vernon
Ehlers, Rep. Sherwood Boehlert, and I went to the White House
to urge the administration to make this a priority.
With the support of the councils of National Academies of
Science and Engineering, we announced a national summit on
science, technology, engineering, and manufacturing at the
Department of Commerce which helped lead to the creation of
the Committee on Prospering in the Global Economy of the 21st
Century.
I want to thank Norm Augustine and the other members of the
committee who helped educate me to the critical importance of
this as I served as Chairman of the Appropriations
Subcommittee funding these programs.
I appreciate President Bush for laying out the American
Competitiveness Agenda in his 2006 State of the Union and his
support for more funding this year.
Congress followed suit and adopted many recommendations
from the ``Gathering Storm'' report into the America COMPETES
Act which was signed into law last year.
I appreciate the leadership of Science Committee Chairman
Bart Gordon and Ranking Member Ralph Hall in the House, as
well as Sen. Lamar Alexander in the Senate for seeing this
bill through.
It is rare in Washington that good ideas move so far, so
fast. And it is in many ways a testament to the people in
this room who tirelessly worked to educate Congress, the
Administration, business community, and the American people.
There is so much more work to be done. We have been
successful in raising public awareness of these issues, but
we have barely begun to turn the page in meeting our
workforce and innovation demands.
I worry that we still graduate half the number of
physicists that we did in 1956--before Sputnik spurred our
last ``great awakening'' in science and engineering.
I worry that one-third to half of those we graduate with
science and engineering degrees are foreign students; and
most of them will return to their home countries rather than
applying their skills in the U.S.
I worry that U.S. patents are down and our companies are
spending more on tort legislation than on research and
development.
I worry that tests still show that one-third of U.S.
students lack the competency to perform the most basic
mathematical computations.
I worry that half of the money we made available for grants
for college students in STEM fields is going unused.
I worry that our edge in aerospace research is in danger.
Our historic prominence in automobiles and electronics
manufacturing has long since eroded; we cannot afford to lose
our aerospace leadership.
I worry about losing competitiveness with China--they may
even beat us back to the moon.
I worry about the country my children and grandchildren
will live in if we fail to deal with this.
But you don't need me to rattle off any more statistics.
The real experts will help put these trends and developments
in context later today.
Instead, I'd like to talk about a different, yet
inextricably linked, issue that is further undermining our
competitiveness. To turn Udall's phrase, I would like to talk
about something that hasn't been said, in hopes that everyone
will say it.
While we are working hard to stave off the ``Gathering
Storm,'' we are losing sight of the tsunami right off our
coasts--a tsunami of debt. Former Comptroller General David
Walker calls this tsunami powerful enough to ``swamp our ship
of state.''
This is particularly relevant as we consider the state of
our nation's competitiveness. If we can't pay for our current
obligations, how can we begin to afford the resources we will
need to compete globally in the twentyfirst century?
These two efforts go hand-in-hand.
America is $9 trillion deep in federal debt, and the
Government Accountability Office has estimated $54.3 trillion
in unfunded promised benefits if we don't change our current
course. That's trillions, with a ``T''.
The Social Security and Medicare Trustees reports issued
last month only reinforce the dire condition of our fiscal
health. Both reports make very clear that we must address
these tremendous shortfalls very soon.
The U.S. dollar is dropping like a rock--it lost 15 percent
against the Euro last year.
Gasoline reached $120 per barrel this week.
What will happen when the well runs dry and we no longer
have money for the vital technology programs that we're
discussing today?
How will we remain competitive when there is no money to
fund science and math education initiatives? Our children
can't compete in the global marketplace if we can't provide
U.S. students with a first-class education.
How will we remain competitive when there is no money to
fund medical research? Without discretionary funding to
develop cutting-edge technology, advance research, and
perform clinical trials, we will not be able to make critical
strides toward cures for cancer, Alzheimer's, autism, and
other devastating diseases.
How will we remain competitive when there is no money to
fund our infrastructure?
How will we remain competitive when there is no money to
pay for the National Science Foundation and NASA? America
will no longer be able to provide leadership and inspiration
to the rest of the world.
These bleak scenarios only scratch the surface of how
concerned we should be about America's future. These are the
realities we face.
Sadly, much of this falls on deaf ears in Washington. So
many bright people delude themselves into thinking that we
have a long-term plan to bring our finances into order.
The long-term has arrived. The next President will have to
address this.
It reminds me of the refrain from songwriter Paul Simon's
``The Boxer'': ``Man hears what he wants to hear and
disregards the rest.'' That could describe Congress's and
Wall Street's reaction, or lack thereof, to the financial
crisis staring America square in the face.
We can't afford to put off reform anymore. With every year
that Congress prolongs making the difficult decisions to deal
with this runaway mandatory spending--the portion of the
federal budget available to fund discretionary programs
decreases.
And just so we're clear: nearly every science, technology,
research, manufacturing, and competitiveness program we
discuss here today is funded through discretionary dollars.
In 1962, mandatory spending--Social Security, Medicare,
Medicaid, and debt interest payments--comprised less than
one-third of the federal budget. Today it's doubled to over
two-thirds of the budget.
The Office of Management and Budget projects that in less
than 5 years, non-defense discretionary spending will fall to
less than 15 percent of the federal budget. And the
competitiveness programs we're working so hard for are but a
small fraction of that.
Because mandatory programs get funded first, we will have
to fight harder for fewer dollars to fund this important
initiative.
Without mandatory spending reform, we simply won't be able
to fund the necessary increases in competitiveness programs
without significant cuts in other discretionary programs.
Clearly, this is a pressing economic issue, as the first
baby boomer has just signed up for promised Social Security
benefits and our nation's longterm IOUs are coming due.
Just recently, Moody's Investment Service indicated that
the U.S. triple-A bond rating will be at risk by 2018.
Standard and Poor's Investment Service indicated that it may
be as early as 2012; and if present trends continue would
plummet to junk-bond status by 2025.
What will that mean to our economy?
Should the U.S. lose its AAA rating in a few years, the
cost of borrowing for both the Treasury and for U.S. private
businesses would significantly increase. It would also
increase the likelihood of a devastating capital flight. This
is a very real risk to our economic growth and global
competitiveness.
Again, this debt has very real implications. More than $2.6
billion a day is needed to fund our budget shortfall, which
has left nearly 40 percent of our domestic economy in foreign
hands.
These IOU's are held by foreign countries--with significant
shares held by non-democratic countries like China and Saudi
Arabia. We should care that countries that do not share our
democratic values have growing leverage over the U.S.
Borrowing hundreds of billions of dollars on the Chinese
and Saudi credit cards puts not only our future economy, but
also our national security at serious risk.
Ironically, the Chinese will be some of our greatest
economic and technology competitors in the twenty-first
century. How well will we be able to compete when we depend
on their credit to fund our programs? They have become our
banker.
This is also a moral issue. Last month, Pete Peterson
penned an editorial that ran in Newsweek. He ends by quoting
Dietrich Bonhoeffer, the German pastor who was instrumental
in the resistance movement against Nazism. Bonhoeffer said,
``The ultimate test of a moral society is the kind of world
it leaves to its children.''
I can't help but wonder what sort of future today's
partisan Washington is leaving to our children and
grandchildren.
Fortunately, we still have options--if we act soon.
I am truly impressed by the bipartisan and broad ranging
coalition that the ``Gathering Storm'' report has assembled
in its cause. I believe we can replicate this success in
addressing entitlement reform, tax policy, and fiscal
solvency. We need to replicate the ``Gathering Storm'' effort
to deal with the issue of our debt.
For the past year, Congressman Jim Cooper, a Democrat from
Tennessee, and I have been working closely together on the
Cooper-Wolf SAFE Commission Act. It has since garnered over
80 bipartisan cosponsors, including Republican leadership in
the House as well as the chairs of the Democratic Blue Dog
Coalition.
The Heritage Foundation, Brookings Institution, Concord
Coalition, and former Comptroller General David Walker helped
us draft this and it is supported by David Broder and David
Brooks.
Modeled after the base-closing process, the bill would
create a bipartisan 16-member commission to review
entitlement spending, tax policy, debt, and all other federal
spending.
The Commission will look beyond the Beltway for solutions,
holding at least 12 town meetings--one in each of the
nation's Federal Reserve districts--over the span of 12
months in order to hear directly from the American people.
Everything must be on the table--including tax policy.
If anyone has another viable plan to address our
entitlement tsunami, we are anxious to hear it. But it has to
be able to pass. Doing nothing is not acceptable.
And just like the base-closing process, the SAFE Commission
Act would require and up-or-down vote on the Commission's
proposal--ensuring that Congress finally considered a
comprehensive solution to this great challenge.
So far, Rep. Cooper and I have reached out to every Member
of Congress, the President and his potential successors,
Fortune 500 leaders, small business owners, think tanks,
thought leaders, and the religious community.
And today I'm reaching out to you--our science, technology,
engineering, manufacturing and workforce development leaders.
I ask for your support in this endeavor so that it may put
us back on track financially, just as the ``Gathering Storm''
report spurred us to fix our nation's education and
competitiveness programs.
William Wilberforce, who, in his first speech in the
British Parliament in 1789 describing the evils of the slave
trade, concluded by telling his colleagues,
``Having heard all this you may choose to look the other
way, but you can never again say that you did not know.''
Not one of us can say we do not know about the nation's
long-term financial outlook.
We know, and it's on our watch to fix.
This must also be a part of this year's presidential
debate. We need to make the next president understand that
entitlement reform.
And the media needs to do a better job covering it. We
should insist on a presidential debate devoted to these
issues.
I am confident that, with your support, we will succeed and
it may well lead to a renaissance in America--a renaissance
in innovation, education, and economic development.