Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, as ranking member of the Budget Committee, I am concerned about where we are as a nation, as we struggle to get our house in order.…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, as ranking member of the Budget Committee, I am concerned about where we are as a nation, as we struggle to get our house in order. The chairman and cochairman of the Debt Commission, Erskine Bowles, Senator Alan Simpson, have told us we are facing the most predictable financial crisis in our Nation's history. When asked when we could have a financial crisis, we are talking about another recession, a double dip, or maybe worse, maybe a worldwide cataclysm from excessive debt--hopefully not--but that is what they told us we are facing, the most predictable crisis in history.
We have gone 714 days in this Congress without passing a budget as we are required to do. The Budget Act requires Congress to pass a budget by April 15, and we have not achieved that. That is particularly problematic at a time of national crisis.
I see my colleague Senator Corker from Tennessee here, who has worked very hard with some constructive bipartisan efforts to do something about the debt trajectory we are on. But I
guess I want to first ask him, as a highly successful mayor of Chattanooga, received great plaudits around the country and within the State for his leadership, he had to deal with real numbers, real expenditures, and real budgets. As a very successful businessman, he has had the same challenge. So I guess I would ask him for his perspective, having been in the Senate now several years, what he thinks if we as a corporation, a mayor, or a nation, facing the most severe debt crisis perhaps in its history, that we have not had a budget and do not have a plan. I guess my first question, Senator Corker is, how, from a businessman, a former mayor who had to run a city and balance your budget, what is your perspective?
I thank the Senator for his work. I think the legislative statutory cap on spending is something I have worked with Senator McCaskill on, you have worked with her on, and has potential to help us deal with the crisis we are in.
I will agree with the Senator, and I truly feel the American people have a right to be angry with Congress, because Congress has run up the largest deficits in history. We are on a trajectory that every witness we have had before the Budget Committee, and some fabulous witnesses outside of the government, all say it is an unsustainable path that places our Nation at risk. We have no real plan to deal with it. We should never have been in such a deep hole. So I think people have a right to be upset with us.
Senator Isakson, I know, is one of Georgia's most successful and effective businessmen. He has been involved in running the Education Department in the State of Georgia. I guess I would ask the Senator as a businessman, and as an American citizen, how do you feel about where we are? Do you think we are in a serious crisis that requires us to alter our business-as-usual approach, do we have to take tough decisions, or is it something we sort of hold off and maybe things will get better in the future?
I couldn't agree more. I have been a long supporter of the biennial 2-year budget. I do believe it can work. It has a large amount of bipartisan support in the Congress. It can help us. I see Senators Blunt and Barrasso. I believe Senator Blunt was here first. He has been involved in the leadership of the House of Representatives for many years. He is already showing himself to be a very wise and valuable contributor to our debate.
First, I would like to ask him, does he think the American people have a right to be unhappy with their leadership when they wake up and find that we have had $1 trillion deficits for 3 years in a row and will virtually average a $1 trillion deficit for the next 10 years and there is no plan in the Senate except the President's budget that he submitted to us, that has the deficits increasing in years 7, 8, 9, 10 to $1.2 trillion in the tenth year? Is this an unsustainable path? Don't the American people have a right to be upset with us and demand that we stop business as usual?
I am not aware of it. We are now 715 days without a budget. This is particularly problematic since we are facing such an acknowledged debt crisis. The Secretary of the Treasury Geithner came before the Budget Committee. I asked him a number of questions. I asked him about the Rogoff and Reinhart study that says when our debt reaches over 90 percent of our economy, 90 percent of GDP, it causes the economy to slow down, be dragged down by that debt 1 percent of GDP. So if it was going to increase it 3 percent, it would increase it 2; and this amounts to, another study says, 1 million jobs. One percent of GDP growth is 1 million new jobs added. So it is very serious.
I asked him was that true. By the way, I think my colleagues are aware that we are past 95 percent of GDP today. We are over the 90 percent mark, and by September 30, we are projected to be 100 percent. So we are well above the number. The true number is not the public debt but the gross debt, and the gross debt would be 100 percent by the end of September.
Mr. Geithner said, yes, he agrees with the study that shows it pulls down the growth, and added: It is in many ways more serious than that because it could lead to a debt crisis, the kind of thing Erskine Bowles, the President's choice to head the debt commission, has warned could happen. We have a responsibility to lead the Nation that avoids us undertaking a crisis that we can see coming. We have a clear and present danger to the American Republic, this debt.
Mr. Bowles, a businessman, President Clinton's Chief of Staff, the choice to head the debt commission by President Obama, told us we are facing the most predictable debt crisis in our history, and it could happen within 2 years. I think this is really serious.
We have to change business. I think the momentum from the American people in this past election was basically a statement saying, we don't know what the problem is; it is all convoluted. But I believe as the Senator indicated at the beginning, the American people have a right to say: Get it together and fix this problem.
It is a very serious crisis. The President submitted a budget to the Congress 2 months ago. I am hoping and expect that if he makes big changes in his plan for the future, we will see that in real numbers and not just a vague vision. A vision gets too close to being a dream. It gets too close to being of vapors. We are in a real situation with real money.
I have been a very aggressive critic of the President's budget. I believe it is the most irresponsible budget ever presented to Congress. We are facing a systemic, deep, long-term crisis. Everybody knows it. His budget raised taxes $1.7 trillion. His spending was even more. In the net projection over 10 years, he would increase the debt of America $3 trillion more than the current trend we are on. Instead of taking us off the trend, it accelerates the trend. It was a stunning development.
For example, at a time when inflation is 2 percent or so--according to the experts, at least, low inflation--he is proposing in his budget that the State Department have a 10.5-percent increase, an 11-percent increase for education, a 9.5-percent increase for the Energy Department, and a 60-percent increase in the Transportation Department to fund high-speed rail with no money to back that up. It is stunning to me that we could have those kinds of increases proposed in a formal written document--four volumes--that the President is required to submit that I have on my desk back in the office. And he makes no projections in that document to change any of the unsustainable problems we have with Medicare, Social Security, Medicaid--zero reform.
I understand he may talk about that this afternoon. I hope he will. But I believe he should go further--if he is going to propose changes-- in that we need a new budget. We need to see what the numbers are. That is what Congressman Ryan and the House Republican Budget Committee have done. They have produced a real budget that can be analyzed and scored, as we call it, by the Congressional Budget Office.
If he is going to make changes in his plans for the future, I truly believe the President should talk more than about vision and dreams for the future but give us real numbers.
Senator Barrasso, an orthopedic surgeon, has served in the legislature in Wyoming and has been a tremendous advocate on many issues, none more important than the health care debate we had.
I say to Senator Barrasso, as someone who has not been too long in Washington and has already been elected to the leadership in the Republican Party--well deserved as a result of your proven acts--how do you feel we are handling the American people's money? What thoughts does the Senator have?
(Mr. FRANKEN assumed the chair.)
Well, did you do that?
I agree with the Senator, that is common sense.
Alabama Governor Dr. Bentley, a fine physician, announced that we are going to have to cut through the rest of the year in the discretionary spending 15 percent because we have a constitutional amendment that says the budget has to be balanced. Of course, we do not have that in Washington. But what would the Senator say if someone--the American people--asked you: Well, Senator, I hear the President is proposing an 11-percent increase in education, a 10-percent increase in the Energy Department, a 10-percent increase in the State Department, $60 billion for the Transportation Department, at a time when we are going broke and spending money the likes of which we ought never to have spent before? How would the people in Wyoming react to that?
I think that is right. We are talking about, is this a huge reversal from what we got just 2 months ago because it did not address Medicare, Medicaid, Social Security that now we hear he might be addressing.
The Senator mentioned the debt commission. They spent most of the last year studying and hearing experts, becoming exceedingly concerned about the future. Mr. Erskine Bowles, who was chosen by President Obama to head that commission, when he first saw the President's budget, said: It is nowhere near what is necessary to avoid a fiscal nightmare.
This is really serious. The budget the President submitted here was rejected by his own Chairman, saying: It is nowhere near what is necessary to avoid a fiscal nightmare. Since then, he has followed up to say: This is the most predictable crisis the Nation has ever faced. He said: Not just for our grandchildren, it could impact us now.
So I ask the Senator: Don't you think, if the President is going to make a speech and announce a change in his policy, he should--as the House budget people have done--submit a budget to the Congress that can be analyzed by the Congressional Budget Office, scored, and we can actually use it as part of the discussion about how to bring debt under control?
Absolutely. I just have to say, let's be frank about it. We had one budget submitted to both Houses of Congress from the President just 2 months ago, and it was very irresponsible and has gotten no support that I can see anywhere. But the House is on track, it looks like, to pass a budget this week that will be forward-looking and substantive and alter the debt trajectory we are on, put us on a path to prosperity, because the biggest and really, to me, only real threat to our economic vitality and our ability to bounce back from this recession is the debt we are carrying.
But I have to acknowledge the Senator's former colleague, Senator Simpson, and Erskine Bowles said this about Paul Ryan's proposed budget in the House: that it is ``a serious, honest, straightforward approach to addressing our nation's enormous fiscal challenges''--our ``enormous fiscal challenges.''
All right. They go on to say this, and I think it is relevant, as the Senator suggested, to the President's speech this afternoon. They go on to say: Going forward, anyone who issues an alternative plan to Chairman Ryan's should be held to the same standard when offering their own solutions. We simply cannot back away from these issues.
I know that is a firm, strong statement. I know it is probably different from what we are going to hear from the President, which is ``speech'' and ``vision'' and ``hopes.'' But doesn't the Senator think we do have a right? Aren't they correct--this bipartisan commission, appointed by the President--aren't these leaders correct to say: We expect you, Mr. President, to fulfill your statutory duty to submit a real budget, and if you have changed it from the one you submitted earlier, submit us a new budget.
I think the American people get it. I think the American people understand that the driving issue of our time is the debt that threatens every good and hopeful wish we have for the future of our country.
Senator Coats, who is one of our finest Members of the Senate--he left us, served as Ambassador to Germany, spent a number of years in Europe, and then came back and has been reelected.
Let me ask him, fundamentally, this question. Pete Domenici--you served with Pete--served with a Democratic wise lady, Alice Rivlin, on another debt commission. He testified before the Budget Committee recently: I have never feared more for my country. That was a deep, personal statement from Pete Domenici, who chaired the Budget Committee in the Senate previously. I ask the Senator, what are you hearing from your constituents, and what is your belief at this time in history about the dangers we face?
Really?
Mr. President, I thank the Senator from Indiana. I guess I have been critical of the President. Many people say it is political. I feel as though any President should look the American people in the eye at this point in history. I called on him before the State of the Union Address, over 2 months ago now, that he should tell the American people we are in this financial crisis, and that--the reason we are talking about reducing spending is because we have no choice. We can't spend $3.7 trillion and take in $2.2 trillion. We cannot sustain the debt course we are on, as every witness, Republican and Democratic, has told us. But I do believe it is a responsibility for the President of the United States, who can see this clear and present danger to our future, to at least join in and say we have to do something about it. He didn't do that at the State of the Union. He hasn't done it since. So maybe today that will be a big change, if we get that.
I do believe the Senator from Indiana is exactly right. He has the responsibility under the Budget Act to send us a responsible budget that changes what we are doing and puts us on the right track. If he wants to do it all by even more tax increases than he submitted already, which was $1.7 trillion in his budget proposal, so be it. Put it out there. Let's talk about it. But don't deny we are in a crisis.
Senator Isakson understands finance better than anybody in this Senate. He lived through and provided leadership during the huge financial crisis. It looks as though we have moved debt from the private sector to the sovereign government sector, and that is why we are being warned we could have a similar type crisis, which is what I
understand Secretary Geithner to have meant and Erskine Bowles and Alan Simpson to have meant.
I thank the Senator from Georgia for his leadership. I know he wants nothing more than what is best for America. I would be glad to have the Senator share his thoughts at this time.
Mr. President, let me ask the Senator one more question. Let's take the Ryan budget. I think it is far more realistic. It is the one that is, as was referred to by Erskine Bowles and Alan Simpson, a serious, honest, straightforward approach to addressing our Nation's enormous fiscal challenges. It is long term. It deals with Medicare, Social Security, discretionary spending.
I am optimistic about the future. If we were to put ourselves on that course and send the word to the American people, the American business community, the world financial community that we have gotten our house in order, is that the kind of budget that could unleash growth that we haven't seen in years now?
I think the most important thing--and I don't want to be too negative--is to tell the American people the truth that every expert we have asked has said you could have a crisis sooner than you think. We should avoid that.
Congress and the President should acknowledge it and say that we understand it and we are going to take steps to avoid it. But I have a sense that the United States is still a productive nation. The Senator from Georgia is attuned to the business community in Atlanta. They are still willing to work hard and invest and take risks to be more productive and create jobs. But this confidence the Senator mentioned-- if we restore that confidence, is the Senator optimistic we can bounce back?
I thank the Senator.
Mr. President, our country requires us to stand and be counted. ``Nothing comes from nothing,'' as Julie Andrews sang in that wonderful song. Things have to be paid for. When you borrow money, you pay interest on it. Interest under the budget the President has sent to us last year was $200 billion--$207 billion, I think. In the 10th year, that budget, as scored by the CBO, is imposing on the American economy a $940 billion, 1-year interest payment. I know the Senator is familiar with Georgia. Alabama's general fund is less than $2 billion. Our education budget is less than $8 billion. We are talking about imposing on the American people an annual interest payment of $940 billion. The Federal highway fund is $40 billion, and Federal aid to education is $70 billion. This is going to crowd out everything.
That is why we are on an unsustainable path. We need the President to engage, and I hope today he will initiate his engagement, in which he tells the American people we can't continue this way. Would the Senator care to close it out?
Mr. President, I yield the floor.