Mr. Speaker, I thank the gentleman from South Carolina (Mr. Spratt), the ranking member on the Committee on the Budget. The people in the audience may wonder, what is the problem? Why are you getting so excited about this issue? Well, the…
Mr. Speaker, I thank the gentleman from South Carolina (Mr. Spratt), the ranking member on the Committee on the Budget.
The people in the audience may wonder, what is the problem? Why are you getting so excited about this issue? Well, the problem is that, within another couple weeks, this fiscal year will have concluded, and according to the White House, the Congressional Budget Office and pretty much anyone who studies these numbers, we will have spent $422 billion more than we took in, a $422 billion deficit.
Now when President Bush took office, they estimated for this fiscal year we would have a $397 billion surplus. So, more than an $800 billion reversal has occurred just this year. The real impact is not going to be felt so much by the Members of Congress, those of us in our fifties and sixties, some of us; the real impact is on those who are in their twenties and thirties or just starting out raising a family, acquiring a home, looking forward to a bright future.
I do not think there has been any generation that has left a more challenging future for its children than our generation, the baby boom generation. It did not have to happen. But when Members consider a $422 billion deficit, that is 132,000 times more than the average young person is ever going to earn in their lifetime. It is an enormous figure.
Of course, all that contributes to a cumulative debt. It will be $6.7 trillion. And given the policies that the majority has put into place, recommended by the President, it will be a $13.3 trillion public debt by 2014, in 10 years.
Again, not our problem for those in the baby boom generation who will be retiring, doubling the number of people dependent on Social Security and Medicare; it will be primarily the problem of the next generation. But imagine what fiscal irresponsibility, to take all of the political credit for cutting taxes, for giving people everything they want and then passing the bill on to our children.
This election, in fact, I would suggest is really about that next generation. Even though they may not be the ones primarily voting, they are going to be the ones most adversely affected.
We had a hearing just last week. The gentleman from South Carolina (Mr. Spratt) convened it. We brought in some young people that very well represented their age group, and we shared with them some numbers, that, in fact, the average college graduate now has a debt of $19,000. That is a student loan debt of $19,000. People in their twenties face an unemployment rate of 9 percent and a third lack health insurance. So, obviously, there is going to need to be more investment in education and making higher education more affordable, more investment in health care, making health insurance more affordable for the working class.
Clearly, there is a need to keep interest rates down, and yet what is going to happen, according to the Congressional Budget Office, if we make permanent all of these tax cuts, if we keep spending on defense primarily, but if we keep spending at the rate that this administration and the House and the Senate of the same political party obviously have been spending, and those are reasonable assumptions, that within a little more than a decade, there are only going to be three programs in the Federal Government; there will be
Social Security, Medicare and defense, and interest on the public debt.
That interest we estimate, by 2014, is going to be $350 billion, more than a thousand dollars per person, and if the President's policies are all implemented as he wants, it will be over $400 billion per year for nothing, to pay off the interest on the debt that the next generation's parents incurred. And they are going to get nothing back.
Where are they going to find the money to educate their own children and make health insurance affordable? Where are they going to find the money to send their kids on to college? I do not know. I do not know where they find the money for public transportation, health research or any of the things that have made this country great, but those are the issues that this deficit is all about. That is why we are making such a big deal about it. It is so wrong, so irresponsible.
We will have spent a couple hundred billion dollars in Iraq. We will have spent money on homeland security, maybe $30 billion a year. But those are not the principal reasons we have the deficit. About 60 percent of this deficit, way over the majority of the deficit, is attributable to tax cuts, to a policy that has been irresponsible from the very beginning. There is nothing wrong with giving people child tax credits. There is nothing wrong with accelerating depreciation in plant and equipment and so on, but there is something wrong when the average 20-year-old gets about $300 from a tax cut, and that is about 1 percent of what millionaires will get out of this tax cut. That is wrong.
This tax cut did not go to those people who needed it the most; it went to those people who needed it the least. And it is so doubly wrong to be paying for it on the backs of the working class by borrowing from Social Security and Medicare trust funds, by sending the debt to our children's generation and then retiring on Social Security and Medicare, leaving them to pay for our Social Security and medical costs, leaving them to pay the interest on the debt we accumulated and leaving them with virtually no resources to invest in their own children's education, health care, transportation, law enforcement and the like. It is just unbelievable how irresponsible this economic policy has been.
We would never treat our own children like this, but somehow, as a country, despite all our rhetoric to the contrary, this body has left a debt on the backs of our children that we know they can never, ever recover from, and it did not have to happen. That is why we are on the floor today urging this administration, urging this House of Representatives to do the right thing, not to continue to make permanent tax cuts that cannot be paid for, that are not necessary to stimulating this economy; not to continue a policy that is based upon turning the debt over to the next generation. It is irresponsible, it is un-American, and it is wrong.
Mr. Speaker, I thank the gentleman from South Carolina (Mr. Spratt) for clarifying the context in which this Special Order was made. I know that the gentleman supported President Bush, the 41st President's policy of PAYGO. If we are going to cut taxes, we have to show how we are going to pay for it.
We have got to balance the budget. President Bush the 41st set us on to that path of fiscal responsibility. President Clinton, in the 1993 Balanced Budget Act, made it work. He put tight spending limits. He made sure that if we cut taxes, then we are going to offset it so that we can continue to keep that balanced budget. And, boy, it worked. For 8 years it worked. And I know how strongly our ranking member on the Committee on the Budget supported that policy.
But now I know that the ranking member has supported just as strongly trying to sustain that policy; and yet for some reason, the other side, apparently, the majority of this Congress, feels that that policy, even as successful as it was, should not be continued.