Mr. Speaker, I ask unanimous consent that all Members be given 5 legislative days to revise and extend their remarks. Mr. Speaker, once again it is an honor and a privilege to come to the floor of the House of Representatives and to anchor…
Mr. Speaker, I ask unanimous consent that all Members be given 5 legislative days to revise and extend their remarks.
Mr. Speaker, once again it is an honor and a privilege to come to the floor of the House of Representatives and to anchor this Congressional Black Caucus Special Order in partnership with my coanchor, the distinguished gentleman from Nevada (Mr. Horsford), where for the next 60 minutes members of the Congressional Black Caucus will have the opportunity to speak directly to the American people about an issue of great consequence and great significance for our country, for our economy, for our future, and for our well-being, and that is the debt ceiling.
Now, Mr. Speaker, this is a Yogi Berra moment. It is deja vu all over again.
Time and time and time again we have been forced to come to the floor of the House of Representatives and urge our colleagues on the other side of the aisle not to plunge this country into a painful default and risk the full faith and credit of the United States of America for the first time in the history of the Republic.
Whenever we have been forced to have this conversation, we are always put into a position where we need to clarify what the debt ceiling is really all about because it has been subject to a lot of misrepresentation. The debt ceiling is not a forward-looking vehicle that is designed to give the President the opportunity to spend more; it is a backward-looking vehicle designed to give the President the opportunity to pay bills that the Congress has already incurred: bills that were incurred during the previous decade, bills that were incurred during the 8 years of the Bush administration during which time our good friends on the other side of the aisle were in control of both the House and the Senate, and we will go into that in greater detail as we move forward.
Let's have an honest conversation about the realities that we face concerning the debt in this country, in excess of $17 trillion. There is reason for us to be concerned about it, but let's not manipulate the facts as to how we got ourselves into this situation.
I am pleased that we have been joined by a very distinguished Member of the Congress and of the freshman class. In fact, we affectionately refer to him as the ranking member of the freshman class of the Congressional Black Caucus in the 113th Congress, and I am very pleased to yield to my good friend, the gentleman from New Jersey (Mr. Payne).
I thank the distinguished gentleman from New Jersey for walking us through some of the episodes that the American people have been subjected to as a result of the extreme behavior that has been articulated and enacted, in fact, as part of the agenda put forth by the majority over the last two terms.
It is time, Mr. Speaker, to end the irresponsibility, end the recklessness, end the extremism, and end the brinksmanship so we can get back to doing the business of the American people with a fiscally responsible, sustainable course; but one that recognizes that here in this Congress, time and time again we have inflicted wounds on the economy and on the American people. We did it last spring in advance of sequestration taking effect. We were warned by independent economists that if you allow sequestration to take effect, $85 billion in random cuts spread out without reason across the economy, it would cost us approximately 750,000 jobs, but yet it happened.
Then we were warned that it would be problematic if you allowed the government to shut down. Nonetheless, some people couldn't help the recklessness, the irresponsibility, the extremism, and so the government was shut down for 16 days. Standard & Poor's estimated that it cost us $24 billion in lost economic productivity.
Yet here we are again, a Yogi Berra moment, deja vu all over again, confronting an unnecessary, manufactured crisis. Just lift the debt ceiling, consistent with what has happened time and time again across Democratic and Republican administrations.
Mr. Speaker, I yield now to the coanchor of the CBC Special Order, the distinguished gentleman from the Silver State, my good friend, Representative Horsford.
Mr. Speaker, I thank the distinguished gentleman for pointing out some of the catastrophic consequences that the American people will be forced to endure if we fail to raise the debt ceiling and force a default and threaten the full faith and credit of the United States of America for the first time in the history of the Republic.
I just want to go over some of the things that would be at stake as a few of my colleagues have already laid out, but it bears reemphasis:
Social Security payments owed to the American people will be jeopardized by a failure to raise the debt ceiling;
Veterans benefits will be jeopardized by a failure to raise the debt ceiling;
Mortgage interest rates could increase as a result of a failure to raise the debt ceiling;
Automobile loan interest rates could increase as a result of a failure to raise the debt ceiling;
Credit card payments as a result of an increase in interest connected to debt that is held on American Express or MasterCard or Visa, or any of the other credit cards that the American people have, could increase as a result of a failure to raise the debt ceiling.
This is not an esoteric concept. This is something that will have a real impact on the American people. That is why we need a debt ceiling increase consistent with what every Congress and every American President has done since the founding of this country.
I want to read into the Record, and then perhaps have my good friend react to it, a Presidential letter that relates to this debt ceiling issue, and it reads in part:
This country now possesses the strongest credit in the
world. The full consequences of a default--or even the
serious prospect of default--by the United States are
impossible to predict and awesome to contemplate. Denigration
of the full faith and credit of the United States would have
substantial effects on the domestic financial markets and the
value of the dollar in exchange markets. The Nation can ill-
afford to allow such a result.
This is a letter that was written on November 16, 1983, by President Ronald Reagan, addressed to then-Senate Majority Leader Howard Baker. President Reagan, I believe, my good friends on the other side of the aisle, have deified him as a ``fiscal warrior,'' a ``true conservative.'' Yet we know that Ronald Reagan raised the debt ceiling 18 times during his Presidency, and in this letter to Senator Baker lays out in bold, uncompromising terms the consequences of a failure to raise the debt ceiling.
This is not a partisan issue. We as Democrats are not standing here on the floor of the House of Representatives because we want to beat up the other side. We are here to defend the best interest of the American people--east, west, north, south, rural America, urban America, and suburban America--because the consequences of a failure to raise the debt ceiling will hurt everybody.
If the distinguished gentleman from Nevada could just react to the notion that this is somehow a partisan issue that needs to be discussed so that President Obama is being fiscally irresponsible by requesting that Congress do its constitutional duty.
I thank the distinguished gentleman for a very thorough explanation and for the illustration as it relates to the state of denial that, I think, some individuals within this Chamber, Mr. Speaker, or throughout the Capitol are in as it relates to the real consequences of a default and what it really means to threaten the full faith and credit of the United States of America.
Now, this denial syndrome is not really a strange concept. It is something that, unfortunately, I have had to familiarize myself with since being sworn in as a Member of Congress on January 3 of 2013.
Weather patterns are shifting. Global warming appears to me, based on the scientific evidence, to be a reality, yet there are people in this Congress who persist in denying that climate change is a reality. In advance of sequestration, notwithstanding the fact that independent economists warned that randomly spreading out cuts across the American economy, given the fragile nature of the economic recovery, would be a harmful thing and would threaten hundreds of thousands of jobs moving forward, there were people who denied that sequestration would be a tough thing for the American people to have to absorb. Yet, at the end of the year, wisdom prevailed because people saw that it actually was something that was problematic for the American people and our economy.
I guess, a long, long time ago, there were people who denied that the Earth was round, who believed that it was flat. So the denial syndrome is something that throughout time has been commonplace as it relates to individuals who want to articulate a particular agenda. I understand that, Mr. Speaker, but it is a dangerous game to play--to deny the reality of the catastrophic impact that would occur as a result of a default on our debt for the first time in our history. It would be another self-inflicted wound, as my distinguished friend from Nevada has indicated.
I was interested in a study that I came across a few days ago that I wanted to highlight and bring to the attention of the American people, and perhaps my colleague can react to it.
There is a new study, the Times reported, from the Peterson Institute for International Economics, a Washington, D.C.-based research group, that indicated that all of the theatrics--all of the drama, all of the brinksmanship--that occurred in this Congress last year around the government shutdown and the potential debt ceiling default and whether we would be able to come together and reach an agreement--have cost us about $150 billion in lost economic productivity. It shaved off about a percentage point in economic growth, and it may have cost us approximately 750,000 jobs. That is not our saying it; that is an independent research group, the Peterson Institute for International Economics. So there is a price to pay for the theatrics, and that is why we have come to the floor of the House of Representatives today to say we need a clean debt ceiling increase and that we need to do it now.
Secretary Lew has indicated that his ability to use extraordinary measures will run out by the end of the month. Mr. Speaker, I recognize that there are some on the other side of the aisle who are in disbelief as it relates to that statement. We have heard individuals make the representation that that can't be accurate. There is a logical reason why in this particular instance the capacity for the administration to use extraordinary measures to get us beyond the debt ceiling cap is only weeks in this particular instance and not months as it has been in the past. It is because the Treasury of the United States in February and in March and in April and, perhaps, even into May, returns a lot of money--billions of dollars--to the American people who have filed taxes and are owed money in connection with a tax return.
I believe that we would all conclude it is a good thing for the American people who are owed money by the Federal Government to be able to get that money back in return. That is why, in February, the capacity at this moment for extraordinary measures to be used is extremely limited. It is because we don't want to short-circuit the American taxpayer. It is bad enough that we are threatening to short- circuit Social Security beneficiaries or veterans and others, but now we are potentially risking withholding money from the American people that belongs to them. We hear that refrain all of the time, but that is what we are faced with right now.
Let me yield to my good friend, Representative Horsford.
I thank my good friend and colleague for that thorough explanation again as to why there is such urgency in terms of our acting now.
Throughout my time here in the Congress, we consistently hear about strict constructionism and adherence to the
Constitution. The 14th Amendment of the Constitution reads in part: The validity of the public debt authorized by law shall not be questioned. That is a constitutional principle, and it is the reason the brinksmanship that we have seen time and time again is so reckless and threatens the well-being of the American people.
Earlier in my remarks, I referenced this being a ``Yogi Berra moment,'' that great Yankee catcher having once made the observation that he feels like it is deja vu all over again. There is another contemporary, urban philosopher I want to quote. Her name is Mary J. Blige. She said: No more drama.
I think that the American people are tired of drama and theatrics. If they want theatrics, they can go to Broadway in New York City. If they want drama, you have got Hollywood, but Congress is here to do the business of the American people, not to entertain, but to do the business of the American people. The matter before us that, hopefully, we will deal with this week--not with unnecessary ideological demands that we attempt to inflict on the American people--in order to do what our constitutional responsibility says Congress should do is, again, a clean debt ceiling.
I want to explain as best I can to those who are interested in understanding how we arrived at this moment. When you hear characterizations about what is at stake, why we can't just simply raise the debt ceiling without going through the drama and the theatrics, the representation that is made, which seems reasonable to many, is that we have a $17 trillion-plus debt. That is a very significant number, and we can't just simply give the President the unfettered ability to continue to drag this country further down a debt hole. That is the argument that is advanced by many, Mr. Speaker.
It is just fundamentally inaccurate. The debt ceiling is not a forward-looking vehicle designed to give the President the ability to spend more money.
It is a backward-looking vehicle simply designed to give the President the capacity to pay bills that the Congress has already incurred. And if you actually were to inspect what those bills actually were, many Americans would be surprised to know that it was incurred often by those same individuals who now claim the mantel of fiscal responsibility.
And so let's go through this chart. What it does is illustrates both the projected debt under current policies, largely enacted during the administration of George W. Bush, and what the debt would have been without these factors.
So the top line is an illustration of what the current debt is and what it is projected to be over time in advance of 2019 as a result of things that this Congress has already done that were not paid for, and the lowest line on the chart is an illustration of what the debt would be had these things not be done, Mr. Speaker.
What is interesting is that a significant part of the debt, as this chart illustrates, resulted from the war in Iraq, a completely unnecessary war, chasing down weapons of mass destruction that did not exist. Lies were told to the American people and hundreds of billions of dollars unnecessarily spent and debt incurred under the previous administration.
The war in Afghanistan was inappropriately prosecuted. Even if it was, in the beginning, a necessary one in response to the tragedy on 9/ 11, it was inappropriately prosecuted because we were distracted in Iraq. We didn't pay for that war either. It is responsible for the debt burden that we now have.
The Bush-era tax cuts. A tax cut in 2001 largely and disproportionately benefited the wealthy and well-off, not paid for. It is responsible, in part, for the debt burden that we now confront.
Another tax cut enacted by this Congress in 2003 largely benefiting the wealthy and the well-off was not paid for and responsible, in part, for the debt that we have incurred.
Of course, there was the economic downturn. That occurred in 2008. It resulted, in part, from the failed policies of the previous administration.
And we allowed some on Wall Street to run wild and to plunge us into the worst economic collapse since the Great Depression. That, in part, is responsible for the debt that we have incurred. We had to bail out Fannie Mae and Freddie Mac. There was the TARP bailout.
Then, of course, there were the recovery measures enacted in response to this horrible collapse of the economy inflicted upon the American people.
These are the policies that are largely responsible for the debt that we find ourselves in, and that is why we find it a bit curious that President Obama is often blamed and we have got to have this drama connected to the debt ceiling, when, in fact, much of the debt, the bills that he is trying to pay now, he wasn't even responsible for. In fact, when a lot of these policies were enacted, the current President of the United States was in the Illinois State Legislature, yet you want to blame him for the out-of-control spending. It is not just factually accurate.
I will yield to the gentleman from Nevada.
I thank the distinguished gentleman.
As you have pointed out--I think this was very important--in terms of the explosion of the public debt that has taken place over the last decade or so, the most significant factor, as this chart illustrates, is the Bush-era tax cuts.
And so the question, then, that many people back home in my district are asking is, What was it all for? Because now we know that income inequality has exploded out of control. The middle class is being left behind.
What was it all for?
Well, we were told, based on a very stale, old philosophy, that these type of tax cuts help to generate economic activity. They create jobs. Okay.
In the previous 8 years prior to the Bush administration, during the 8 years of the Presidency of Bill Clinton, the tax rate for the highest income bracket was 39.6 percent, and 20.3 million jobs were created during those 8 years. And then we have a new President who comes in and, by the way, he inherits a surplus. And then immediately, as a result of these reckless policies, foreign and domestic, creates deficit after deficit after deficit. That didn't happen under this President. It happened under the previous President.
But the American people, the people whom I represent back at home, say, What was it all for? A tax rate of 39.6 percent under the administration of President Clinton and 20.3 million jobs created. We get tax cuts in 2001 and 2003 as a precursor to the recession, and during the 8 years of the previous administration we lost 650,000 jobs here in America.
What was it all for? We lost jobs. Income inequality has grown. You add it to the debt. And yet folks on this side of the aisle are supposed to be fiscally irresponsible.
Let's just have a reasonable, evidence-based conversation. That is all we want. That is what the American people are asking for.
And so as we prepare to close, let me just yield to my good friend for any parting remarks.
I think that is a very appropriate question. We are going to have to have a broader conversation about some of our policies that have resulted in the exportation of middle class American jobs to other parts of the world; and for the life of me, I haven't been able to figure out why anyone in Washington thinks that that is a good idea.
We have had an economic recovery under this President, and I believe more than 7 million private sector jobs have been created, but we still have a long way to go. And we certainly cannot afford to engage in the type of policies that, as you have pointed out, have led to the transfer of American jobs overseas.
Why? Because we are incentivizing companies to ship jobs abroad as opposed to incentivizing American companies to keep jobs here at home in the great United States of America. And I certainly hope that that is something that can be reversed as we move forward and enter into a discussion about some of the agreements that will be pending before this Congress.
I thank my good friend for his very thoughtful and comprehensive remarks and analysis of the situation that we find ourselves in and his very clear-eyed plea that we in the Congress simply do our job and raise the debt ceiling to avoid a default and threatening of the full faith and credit of the United States of America.
The 14th Amendment of the United States Constitution states, in part, that the validity of the public debt of the United States enacted into law shall not be questioned.
No more drama. No more theatrics. No more brinksmanship. No more extremism. Let's raise the debt ceiling and get back to doing the business of the American people.
Mr. Speaker, I yield back the balance of my time.