Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent that I be permitted to speak as in morning business for up to 25 minutes. Mr. President, building on a series of…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I ask unanimous consent that I be permitted to speak as in morning business for up to 25 minutes.
Mr. President, building on a series of speeches I have given over the past few years and in the tradition of a former Member of this body, Senator Fritz Hollings of South Carolina, I hope to provide my colleagues and the American people with regular updates on our catastrophic national debt. Unfortunately, given the lack of action to address this coming tsunami, I believe President Obama and Congress need to be reminded of the fiscal realities in which we find ourselves. Senator Hollings came down to the Senate floor every few weeks with a poster updating the national debt, and today I renew his tradition, and I will continue it until we do something about this unsustainable financial crisis.
One of my grandchildren's favorite stories is ``The Emperor's New Clothes'' by Hans Christian Anderson. In the tale, an emperor goes about the land wearing a nonexistent suit sold to him by a new tailor who convinced the monarch the suit is made of the finest silks. The tailors--two swindlers--tell the emperor that the threads of his robes will be so fine that they will look invisible to those dimwitted or unfit for their position. The emperor and his ministers, themselves unable to see the clothing, lavish the tailor with praise for the suit because they do not want to appear dimwitted or incompetent.
Word spread across the kingdom of the emperor's beautiful new robes. To show off the extraordinary suit, a parade was formed. People lined the streets to see the emperor show off his new clothes. Again, afraid to appear stupid or unfit, everyone pretends to see the suit. It is only when a child cries out ``the emperor wears no clothes'' does the crowd acknowledge that the emperor is, in fact, naked.
Much like the emperor, America's elected leaders know we face a fiscal train wreck, but we are choosing to ignore our current economic reality. I am here to tell my colleagues and President Obama, the emperor has no clothes and we are naked in terms of dealing with our deficits and national debt.
As shown right here on this chart, get the book out. I am sure you have it. Read it. That is where we are right now. The irony is that the American people know we are naked, and they are coming to Washington to let us know we are naked, and so does the rest of the world, and our credibility and our credit today are at risk.
I have this chart, what I refer to as the ``Wheel of Misfortune.'' This lays out quite clearly what our national debt is today.
One of the reasons I ran for the Senate back in 1998 was I wanted to come to Washington and reduce the national debt and balance budgets, which is something I did as the mayor of the city of Cleveland and something I did as Governor of the State of Ohio.
When I came to the Senate in 1999, our gross national debt stood at $5.6 trillion or 61 percent of the GDP. Today, as you can see from the chart behind me, the gross national debt is nearly $11.8 trillion. I understand the President is going to ask us to increase our debt limit to $12 trillion and, quite frankly, I believe he is going to be asking us to raise the debt limit to more than $12 trillion.
This is an increase of more than 100 percent in 10 years. Much of this increase has come recently. In fact, from 2008 to 2009 alone, the Federal debt will increase 22 percent, boosting the country's debt-to- income ratio--our national debt as a percentage of GDP--from 70 percent last year to 86 percent this year. We haven't seen this kind of GDP debt since the Second World War. It was 65 years ago during the Second World War that we saw these kinds of numbers.
By the way, this does not include our unfunded Medicare and Social Security obligations which the Peterson Foundation recently tagged at $56.4 trillion. This is the equivalent of a $483,000 debt per American household or $184,000 for every man, woman, and child in America today. Those are unfunded liabilities.
It doesn't take an economist to realize our course is unsustainable. President Obama and this Congress are fully aware of this reckless fiscal path. Yet they continue to spend and borrow,
spend and borrow. Our Federal Government is the worst credit card abuser in the world. We talk to our kids about not abusing their credit cards. What kind of example do we set? You know what. We are putting the tab on the credit of our children and grandchildren.
Like the boy who cried ``the emperor has no clothes,'' the American people see through this sham. There were a bunch of them here this weekend who saw through the sham. A recent poll conducted by the Peterson Foundation showed that after their personal job, the most pressing concern of Americans is the national debt. Americans are cutting back, folks, in their own family. They are making tough decisions. They know they haven't been living within their means.
Some people are saying: Why are they paying attention to this finally? Well, they are finally realizing in their own families they need to redo the way they are doing things, and they are asking themselves: Why isn't our Federal Government doing the same thing we are doing in our households? It is no wonder they are looking at government's reckless spending with disapproval and wondering why we are not doing the same thing they are doing. They are mad as hell, and they aren't going to take it anymore.
The media is also finally starting to pay attention to this issue. Recently, the Washington Post ran an article by Fred Hiatt, their chief editorial writer, acknowledging that our long-term fiscal path is unsustainable, as well as an editorial taking the administration to task for lacking a plan on how to start digging our economy out of this fiscal crisis.
Additionally, Newsweek published an article by Fareed Zakaria where he outlines what he describes as ``the disease of modern democracy: the system cannot impose any short-term pain for long-term gain.'' We are unwilling to pay for it or do without.
The first one, this Newsweek article, is called,
There is a Silver Lining.
The crisis has forced the United States to confront bad
habits developed over the past few decades. If we can kick
those habits, today's pain will translate into gains.
The other is a Washington Post article entitled ``No Laughing Matter. Why the U.S. Needs to Get Serious About Long-Term Budget Deficits.''
Mr. President, I ask unanimous consent to have printed in the Congressional Record the articles to which I previously referred.
Mr. President, now is the time to take the first step toward fiscal responsibility and making good on our promises by enacting meaningful, comprehensive tax and entitlement reform. The recent pay-as-you-go legislation passed by the House isn't going to get the job done. We know that. This Band-Aid relies on smoke and mirrors and exempts the 2001 and 2003 tax cuts, patching the alternative minimum tax, updating physician payments in Medicare, and modifying the estate tax. It is intellectually dishonest. Even the Budget Committee chairman in the Senate, Senator Conrad, calls this pay-go that came out of the House insincere. If Congress is going to reenact statutory pay- go, then it should apply to everything, not just to what is convenient.
We need real comprehensive reform. I am pleased to say it appears as though President Obama is finally starting to get it. In an interview with the Washington Post, President Obama endorsed the idea of creating a commission where--here is what he said:
Everything is going to be on the table when it comes to
examining our tax and entitlement systems and presenting
long-term solutions to place the United States on a fiscally
sustainable course.
He went on to say:
What you end up having to do in terms of structural reforms
realistically is you probably have to set up some sort of
commission or mechanism that reports back with the prospect
of maybe locking in a pledge for action, post election.
I know we have talked about this on occasion, about this commission and setting it up and trying to get the administration to commit to it so we can let the American people know we are sincere about doing something about this debt and balancing our budget.
For the past three Congresses, I have been calling for such a commission. This Congress, I am proud to say, Senator Lieberman has joined me as an original cosponsor to create the commission now.
Similar to the BRAC process, the Save America's Future Economy Commission--we call it SAFE--would break the legislative logjam in Washington by creating a bipartisan, bicameral committee to draw up policy prescriptions for the government's long-term budget shortfalls that would then go before Congress on an up-or-down vote. The legislation is similar to legislation introduced by Congressmen Jim Cooper and Frank Wolf in the House, and today they have 69 cosponsors. It is vital--it is vital--to ensuring the solvency of entitlement programs for future generations.
It is my understanding that Pete Peterson and David Walker of the Peterson Foundation have endorsed this legislation along with the Heritage Foundation, the Brookings Institute, the Business Roundtable, and a host of other former CBO Directors who said it is time for us to do something about the problem, and they understand we will not get it done with the regular order of business. We have to have a commission come back with a recommendation, put it on a fast track, send it to the House, send it to the Senate, and let us either vote up or down as we do with the commissions we have set up on closing bases.
I am sure many of my colleagues are familiar with this legislation. I know David Walker has met with both Republican and Democratic legislative leaders or directors regarding this legislation.
Continuing down our current path, folks, is unsustainable. It is unsustainable, and it is immoral. For too long we have clothed ourselves in economic falsehoods, pretending they would protect us from the harsh economic realities. Folks, time is running out. The world sees that the emperor, in fact, has no clothes. I am calling on President Obama to follow through on his comments about the need for a commission and support the SAFE Commission Act.
OMB Director Peter Orszag has understood our fiscal crisis in the past and called for the creation of an entitlement commission, but since joining the administration he has stopped pushing for a commission, instead focusing just on health care reform. The bottom line is health care reform is but one of the major issues that needs to be addressed to respond to our fiscal crisis. We must also reform the Tax Code to encourage personal savings, investment, job creation, and economic growth. A lot of Americans are not aware of this fact, that we spend $240 billion a year paying our taxes; that is, to pay for professional help and keeping track of all of the papers we need to have when we prepare to pay our Federal income tax.
I think the current health care debate in Congress is a perfect example of why a piecemeal approach doesn't work. If we dealt with the fiscal crisis, it would be a lot easier for us to deal with health care.
There is a new poll out just today, AP, that says half of Americans are more concerned about tackling our debt than our health care reform, education, and climate change. Did my colleagues hear that? Over half of them say deal with the fiscal crisis. The reason I believe we are having such a darn difficult time dealing with health care and why we are not going to pass any kind of climate change legislation is that the people of this country know we have a fiscal crisis and they want us to contend with that before we deal with these other issues.
I think the American people know we can't afford the health care system we now have, and we must find a way to be more responsible. Think of this: We spend $2.2 trillion on health care in this country. The Medicare trust fund will be insolvent in 2017, and we have to reform the way we pay physicians under the program, which experts say will cost us $280 billion over 10 years. Furthermore, the States are already overburdened by the cost of their Medicaid programs.
We gave the States $87 billion in the stimulus bill. I can tell you in ordinary circumstances, many States usually come to Washington with a tin cup. I can guarantee you that the Governors of this country are going to be down here with a large bathtub asking us to fill it because of the problems they confront.
In other words, they can't now take care--well, they can now because they got the $87 billion, but once that runs out, they are going to be down here saying: We can't handle the current system as it is. How can we expand Medicaid when we can't take care of the Medicaid Program we now have? With the financial crisis we have in this country, we have to be careful of taking on something we can't afford, particularly when we can't afford to pay for what we already have.
I am surprised that in the President's speech last week he didn't talk about the fact that by 2017--everybody needs to understand this-- the money coming in for Medicare would not be adequate to take care of the people who are out there who are eligible for Medicare. It is part of what I call that unfunded liability I talked about earlier.
The Peterson Foundation recently commissioned an in-depth health care study conducted by the Lewin Group, and I urge my colleagues to take a close look at this analysis and see the principles the Peterson Foundation lays out to determine a fiscally responsible health care reform bill.
I am not the only one calling for Congress to be fiscally responsible when considering health care reform. In order for health care reform legislation to be fiscally responsible, it must, one, pay for itself over a 10-year period; two, not add to the deficit beyond a 10-year period; three, bend the cost curve down to reduce health care spending; and four, significantly reduce current unfunded obligations. That is what we should be talking about.
President Obama and Congress must act. We all came to Washington to serve, and we have a moral responsibility to leave this place better than what we found it. How will we look our children and grandchildren in the eye knowing we have mortgaged their future at a time when we know they are going to have to work harder than we have to maintain the standard of living we enjoy.
God has blessed me with three children and seven grandchildren. I am constantly worried about what kind of America they are going to be living in. I know darn well the competition we face today worldwide is a lot more fierce than anything I experienced during my life here. I know because of that competition they are going to have to work harder. They are going to have to work smarter. It would be very cruel for us, on top of that, to lay this terrible burden on their shoulders and say: We weren't willing to pay for it or do without, so you take care of it. It is your problem. You handle it.
I was pleased to hear President Obama echo this last Wednesday during his joint session of Congress, the same sentiment I have just made. He stated--and I quote the President of the United States:
I understand that the politically safe move would be to
kick the can further down the road--to defer reform one more
year, one more election, one more term. But that is not what
the moment calls for. That is not what we came here to do. We
did not come here to fear the future. We came here to shape
it. I still believe we can act, even when it is hard.
President Obama's words ring true in light of the fiscal challenges we face as a nation today. And they should get the first priority. Until we start on a commission, Congress, the administration, the American people, and the world will know the Emperor has no clothes. We are naked in terms of realizing and dealing with our fiscal crisis. Now is the time to act.
Mr. President, I suggest the absence of a quorum.