Mr. Speaker, I am happy to be here representing the Progressive Caucus and talking about our fiscal situation now that I think a lot of people out there are worrying about, confused about, don't know how it's really going to affect them,…
Mr. Speaker, I am happy to be here representing the Progressive Caucus and talking about our fiscal situation now that I think a lot of people out there are worrying about, confused about, don't know how it's really going to affect them, wondering what the heck we're doing. Sometimes Members of Congress who aren't part of the negotiations are wondering what's going on too. But what I want to talk about today are the things that are at stake for ordinary people in our country, the things that are on people's minds as we deal with these economic issues that face our country.
I am Congresswoman Janice Schakowsky, and I represent a district, a
very diverse district, in Illinois, diverse in every way--economically, certainly by race and ethnicity--and I think in many ways a microcosm of the country. I know that we're getting a lot of calls from our constituents. The calls that I'm getting were reaffirmed by a poll that I saw on Tuesday in our National Journal Daily on page six that says: ``Poll: Entitlement cuts feared most in cliff talks.'' It goes like this:
As President Obama and congressional leaders race to avert the fiscal cliff, Americans remain concerned that whatever budget deal they strike will cut too much from Medicare and Social Security, according to the poll. More of the Americans surveyed are worried about such cutbacks than seeing their tax bills rise, the latest United Technologies/ National Journal Connection poll has found.
I was looking at who was involved in the poll. In total, 35 percent of Americans are worried it will cut too much from government programs like Medicare and Social Security; 27 percent--that's eight points less--that it will raise taxes on people like you; 15 percent, it won't meet its target for reducing the Federal deficit and debt; 13 percent, it will allow for too much Federal spending. Only 13 percent were worried it will allow for too much Federal spending in the next 2 years.
But when I looked at, for example, women, 40 percent of women are most worried about those cuts in Social Security and Medicare and other government programs. Forty-six percent of people whose income is $30,000 or less, that's what they're really, really worried about; that's the thing they're worried about most.
So most Americans, that is their top concern--not really so much that their taxes are going to go up and not really so much about the deficit. They're worried about the cuts in the programs that mean so much to their lives.
So that's really what I wanted to talk about today. If any Members are listening in their offices and they want to come down and talk about the fiscal cliff, as it's called--many of us don't see it as a cliff, nor as a slope, that we actually have time to set the problem straight. That's what most economists are saying, that if we go a few weeks into January, it's not the worst thing so that Americans shouldn't panic about this. But if you want to come down and talk about that, I am really happy to do that.
I wanted to welcome one of my colleagues, Hank Johnson, here to the floor today to add his thoughts. I know he had another something he wanted to talk about this afternoon, and I welcome you. Thanks for coming down, Congressman Johnson.
I think, actually, you have done a service to make people understand that there are those who are deeply offended by it and that we should all learn what to say so as not to offend people.
Thank you very much. I appreciate both--you know, sometimes as legislators we like to think we're always right, and sometimes we make mistakes, inadvertent mistakes. And coming to the floor to actually clear the air I think is really commendable, and I appreciate that.
And also, your talk about the decisions that were made in Wisconsin-- you know, government is to serve the people, the best interests of the American people. And right now, we're trying to figure out how are we going to, in a fair way, ask Americans to be able to fund the programs that we need, to fund the services that we need as a country, to make sure that our roads are there and drivable, to fund our military so that we can be safe and strong, to help States to fund their law enforcement, et cetera, all those things that are important to Americans, and as I mentioned earlier, including things like Medicare and make Medicaid.
Budgets aren't just a bunch of numbers on a piece of paper, and government policies aren't just documents. But, in many ways these are moral statements about who we are as a country. I think we have to ask, are we really a poorer country today than we were 70 years ago when Social Security went into effect, when Social Security went into effect to say that we're not going to let older people end up in the poorhouse or out on the street, that we're going to have an insurance policy that they pay into, that everyone pays into during your working life, so that we can ensure that when people reach the age of 62, 65, 67, that they're going to be able to retire with some level of dignity?
At the time that Social Security was passed 70 years ago, there was a three-legged stool. One was this new program, Social Security, to provide retirement benefits that you paid for; two, private pensions, that was kind of
the common normal then. Many of those private pensions were won because workers were able to collectively bargain and get pensions for their family. The third were savings, savings for people.
So between all of that, we thought we'd be able to see a country now where the elderly were lifted out of poverty and they had some semblance of security.
Well, are we really poorer today than when we made that decision that we're not going to let old people end up in the poorhouse? That was a decision on how to fund a program that has never once missed a monthly check ever. In the 70 years plus, never ever has Social Security missed a monthly check. So it's been a program that works really, really well.
And I just want to point out that Social Security helps middle class families, not just older people. I have two grandchildren who get a Social Security benefit. Why? Because, tragically, their mother died. So it is an insurance policy for all families.
The other great thing about Social Security is that unlike many pension programs, there's actually a cost-of-living adjustment. You don't get it every year, as seniors know. There really hasn't been an increase in the economy so much in certain years, but it has been a success, a treasure to our country.
Some people want to put Social Security on the table as part of this discussion to reduce the deficit that we face.
I yield to the gentleman.
Let me just say that right now we're paying very low interest because people do have confidence in our American economy and in those Treasury notes and it is a good, safe, and solid investment.
And I yield to the gentleman.
Let's talk about that for a minute.
It seems that there are those on the Republican side of the aisle who are willing to go to the mat to protect tax cuts for the very wealthiest Americans, people who make $250,000 and more. Of course, our proposal is to say that the first $250,000 of income for everyone, even if you make $500,000 a year, on the first $250,000--I think we all agree that we should extend those tax cuts. It's for the dollars above $250,000 that some of our colleagues are saying, no, we are not going to ask those people even to pay a penny more than they were.
Yet they're saying the only way that we will consider that, the only way that we will consider taking a little bit more from the wealthiest, is to go to the poorest.
I'm not talking about children. The poorest adults are people over 65 years of age and persons with disabilities. Their median income is $22,000 a year. The median income for older Americans is $22,000 a year. Really? Somehow this is a fair balance to ask the wealthiest Americans--the top 2 percent--to pay a little bit more, but darn it, we're not going to do it unless we get those poorest people through their Social Security, through their Medicaid, through their Medicare to pay a bit more? It doesn't seem right to me.
Especially for Medicare. They're talking about that.
I think it's something like $850 billion that would come out of the Medicaid fund. I know.
Yes, and go to private insurance companies.
Let me just say one area in which I disagree a bit with you. Most Americans support these programs. I'm talking about huge percentages of Americans--Republicans, Democrats, Independents--who say, no, we don't think that Medicare, Social Security, Medicaid ought to be cut. We don't think so.
So I think, in terms of the role of government, most Americans see that it's important that when it comes to education, when it comes to infrastructure, when it comes to public safety, when it comes to health care, government cannot do it all. Americans aren't saying, just take care of me. From cradle to grave, I want you to take care of me. No. Americans are willing to work hard and play by the rules, but they see an important role for government. If we cut government too much, in some ways, we kill the goose that laid the golden egg. Here is what I mean:
It is true that the Internet really did come from research that was done by government. Look at the billions and billions--I don't know-- maybe trillions of dollars, and then look at the advance of the Internet and everything that led from that--bio research, talking about curing diseases. Then, of course, the money that comes from that for the pharmaceutical industry, et cetera, mostly comes from the National Institutes of Health, the Cancer Institute, et cetera, in coming up with the cures and the medications. That's government research. I mean, look at NASA and the space research. It was really the Federal Government, in many ways, that developed the aviation industry. So we'd better be careful about cutting government too much.
Think about the potential in the energy industry if we just help to promote some of these clean, renewable energy technologies.
One of the things on this cliff is the end of the wind energy production tax, which has been so incredibly successful in helping build this wind industry that is ready to take off but still needs a bit more support. This means clean energy to my State, Illinois, and the Middle West, where we've got lots of wind--it's free. And investing in wind energy--if that expires, we're going to lose 7,000 jobs in Illinois alone because of the failure to help invest in the wind energy industry.
That was Eisenhower; wasn't it?
Along rail lines, along highways, of course, that's the engine of commerce that keeps not only our wheels turning, but the stores--everything going, all of the infrastructure.
You were talking about how government helps to prime the pump. So government spends money, and it spins out and often becomes commercialized. There are three ways that we can really deal with our economy right now to make it stronger: We can raise revenue, that's raising taxes; we can cut spending; and the third--that's not talked about enough--is the issue of growth in the economy, jobs. Jobs, jobs, jobs. That's what grows the economy.
I am so proud that our President, as part of this overall deficit reduction plan, has recommended spending about $50 billion on jobs. They would spend money on infrastructure, infrastructure spending that's supported by both business and labor because it is so important. And it's kind of a no-brainer. If you spend money that will create jobs, you now have people, one, who are not having to get unemployment insurance or food stamps. They are working and can support their families, so we get them off public support. And, two, now they're paying taxes. They're going out and they're buying stuff, and businesses are going to have to hire more people because they're buying holiday presents for their kids. They're buying winter coats now. So there is an economy through growth. That is an underrated portion when we talk about how do we save our economy.
I have been circulating a letter among our colleagues, Representative Johnson, saying we ought to encourage investment, that we ought to encourage spending on jobs in this deficit reduction, this economic growth package.
Some people say it didn't create any jobs. Well, I think
the testimony is that many of our colleagues, almost all of our colleagues, showed up at the ribbon cuttings.
It actually created millions of jobs.
You were talking about a difference in philosophy and even economic philosophy. There are those who call that top 2 percent the job creators. Well, if that's true, then where are the jobs? Because most of the growth, almost all of the growth in income over the last many years has gone to the wealthiest Americans where, for ordinary Americans, their income has remained flat.
When we have a situation in this country where the top 1 percent of Americans, 1 percent, control as much wealth as the bottom 90 percent, that's not a healthy situation. I don't want to moralize about it. It's just not a healthy situation.
I have to tell you, I introduced legislation that actually would increase the taxes on people starting at a million going up, ratcheting up, different tax brackets up to a billion dollars.
And I've got a lot of very rich people who say, yeah, that's fair. That's right.
But let me just say this: the other philosophy, though, is that if you have a robust middle class of consumers who will actually have enough money in their pockets, middle class people, hopefully even including those who aspire to the middle class have more money in their pockets, that that is what's going to drive the economy. They're going to go out, and they're going to spend the money, and that's going to spread throughout the economy.
Whereas, the wealthiest Americans may buy another yacht, but probably are just going to accumulate that kind of money and really don't do nearly what the middle class does to make a robust economy for everyone. When we all do better, we all do better.
That was a lot of jobs that would have gone down.
And all the money's been paid back to the United States Treasury.
Part of the solution.
Can I just ask, Mr. Speaker, how much time we have remaining.
I want to say a few things about organized labor.
I'm old enough, Congressman Johnson, when I was growing up, one person could work in the steel mills on the south side of Chicago, tough job, but you could not only make a decent wage that put you in the middle class; you could buy a car, you could have a little house, modest house, and you could even afford to send your kids to college. You had health care benefits. You had a pension, a private pension. And that was the normal. That was the normal in the United States. You worked hard, often really hard, but you could, you know, make a wage that would afford you a good, middle class life.
I think there's a lot of people who think that, well, unions, that is so 20th century. You know, that was yesterday. We don't need them anymore today. But I want to say that if we have a low-wage economy-- you know, some of the companies that are coming back to the United States, you know what they're saying, that the differential in wages between the United States and Bangladesh is insignificant enough that they might as well come back and make their products in the United States.
Let me end with this since we just have a couple of minutes. As we face all these negotiations that are going on, I think there's a couple of bottom lines. One--and the President has been very clear--we are
going to have to ask the wealthiest Americans to pay a bit more.
And, number two, I think we ought to say that those programs that help people have a decent retirement--Social Security, Medicare, Medicaid, as well--that that is the wrong place to go in order to balance our budget. We don't have to go to the poorest people. We can make those programs more efficient. We can cut the costs of those programs, but we don't have to reduce the benefits and further impoverish people who aren't making a lot of money right now.
For me, those are sort of bottom lines for the deal that we want to make. All of us are in this together. We should all see each other as our brother's and sister's keepers. With that kind of philosophy in mind, I think we can come up with some sort of an agreement that serves our country, that serves its people, that is just and fair and helps us go forward.
Do you have a final word?
Thank you. I yield back the balance of my time.