Mr. Speaker, I thank my friend for yielding. The gentleman was focusing on one of the gravest problems our Nation has ever faced, one of the gravest threats to our children's and our grandchildren's well-being, because those debt payments…
Mr. Speaker, I thank my friend for yielding. The gentleman was focusing on one of the gravest problems our Nation has ever faced, one of the gravest threats to our children's and our grandchildren's well-being, because those debt payments the gentleman is talking about, the interest payments, they are like a tax that
can never be repealed until our Nation one day, we hope and pray, will return to a surplus. We had a couple years of surplus under President Clinton, but, sadly, those days are gone. Now we have plunged deep back into debt.
As the gentleman points out, the debt now is $7.7 trillion. We all as Blue Dogs have signs like this outside of our office doors so that anybody who visits our offices here in Washington or back home, and for me that is Nashville, Tennessee, can see exactly the hole that we have dug for our Nation's future and how much it is per person, $26,000 per person. So I appreciate the gentleman's focus on this grave problem.
Blue Dogs have been great leaders on this issue. We will talk in a few moments about the 12 step plan that the Blue Dogs have put forward to try to rescue our Nation from this debt binge that we have been on. It is kind like the 12 step plan for Alcoholics Anonymous, 12 steps to get out of a problem that so many Americans are unwilling to face up to and recognize.
Before we do that, I would like to take a moment to give our friends in Congress and across the country some key dates so they can write these down and look at the deficit and the debt from a little bit different perspective.
Date number one is last year, 2004. Why is that significant? Because the auditor for the United States of America, David Walker of the GAO, said it was ``arguably the worst year in American fiscal history.'' That is pretty grave news. If you had a company and your auditor said you have been through one of the worst years in history, you would probably be facing bankruptcy. That is what the U.S. auditor said about last year. Most people do not know about that. That news should get out.
Take the year 2005, this year. What did we do about the deficit and the debt? Well, the Republican majority rammed a budget through this body, $2.6 trillion, in a record-setting 2 hours. That is from start to finish, from the first moment we could look at the document to final passage vote, never get to see it again, $2.6 trillion in 2 hours. If that is not financial mismanagement and irresponsibility, I do not know what is.
The next date is 2009. That is the date when we will be spending more money on interest on the national debt than we will on all regular domestic government in America. Due to the deficits and the debts that the Bush administration has accumulated, our debt burden will be so great by then, by the last year of the Bush administration, we will have to spend more money to our creditors than we will on our citizens. In a sense it will be a better deal then to be a creditor of this country than to be a citizen of this country. That is an outrage. That is the first time in American history that has ever happened.
Another key date is the year 2012. That is when the Chinese, if current rates continue, will own all of our debt. In fact, a firm in Connecticut has predicted by February 9, 2012, the Chinese will own all of our foreign debt. That is another outrage. The Chinese are not necessarily the friendliest holders of this debt. To be financially beholden to them is really a national security risk.
Another key date is 2017. That is the date we will have the first honest deficits in America, because that is the date the Social Security surplus will diminish down to zero. Then the true size of the deficit will be unveiled, because, as the gentleman knows, the deficit last year was not $412 billion, like most people think, which is still an all time U.S. record. The deficit was $569 billion, because the Social Security surplus was $155 billion last year, and it was used to hide the true size of the deficit.
Another key date is 2035. That is when Standard & Poor's, the bond rating agency, says that American debt will become junk bond debt because we will have so little financial credibility in the markets. That is not from a government official, that is from the official business rating agency.
Finally, probably the worst number of all, this is truly so hard to believe that I think it needs a chart to display it, the General Accounting Office says that by the year 2040 it will take all revenues collected by the Federal Government just to pay interest on the debt. In other words, by the year 2040, just 35 years from now, there will be no money left, not one red cent, for any of our national defense needs, for any Social Security, for any Medicare, for any anything. It will take all of that money just to pay interest on the debt. That is an outrage, and it is a particular outrage if our only creditor then is the Chinese government.
We are clearly on a road to ruin. We have to change our course. We need to change our course immediately. Sadly, this Congress is not doing that. They need to follow the Blue Dog 12 step plan.
I appreciate the gentleman's great leadership on this issue as one of our leading Blue Dog Members.
The gentleman is exactly correct. We are the greatest Nation on Earth, we are the greatest Nation in the history of the world, and that will probably end well before 2040 if we keep on the current path.
The gentleman is exactly correct. And it is terrible to deliver such tough news to the American people, but the GAO is telling us the truth, in a nonpartisan fashion, as the gentleman indicates. And this bad news is not 35 years off. As I indicated earlier, the GAO has already said that the year 2004, last year, was ``arguably the worst year in American fiscal history.'' They are saying that is only going to get worse still on the path that we are on, on the high deficit, high debt path we are on.
Mr. Speaker, if the gentleman will yield, what the gentleman from Tennessee is talking about is the debt. We are not even talking about the deficit yet, but debt. Again, our Nation is spending $13 billion a month, over $13 billion a month simply paying interest on the national debt. That is $444 million a day, that is $18 million an hour, that is $308,000 a minute, or $5,100 a second.
On top of that, we have the deficit, and the gentleman from Tennessee talked about this a little bit. It is hard now to think back that we had a balanced budget in this Nation from 1998 through 2001.
Just 5 years ago.
Mr. Speaker, the gentleman is focusing on the problem, and I think the American people are hungry for more facts, more real information about the situation we are in. I would like to encourage them to look on the Web site of an institution called the Cato Institute. It is here in Washington, D.C. It is not a Democratic group. If anything, they are mainly Republican, but they issued a report on May 3, 2005. It is by Stephen Slavinski, and it talks about how under this Republican-only government, because Republicans run the White House and the Senate and the House of Representatives, we have seen the biggest spending binge since Lyndon Baines Johnson in the 1960s.
It is not just defense-related. If we look at nondefense spending programs, it is the biggest spending binge since Richard Nixon. Most Americans do not know this, and they do not know that we just went through arguably the worst year in American fiscal history. So I appreciate the gentleman sharing the message.
Several of our colleagues have arrived, and it is probably appropriate at this time to recognize them.
Mr. Speaker, I appreciate the gentleman yielding. There are several ways out of this terrible dilemma that we are in an as a Nation.
First, we have to acknowledge that we have Republican cosponsors for our proposal. Particularly the Republican Study Committees deserves great thanks for their lending a hand to our proposal. A number of us have cosponsored their proposals. The solution out of this has to be bipartisan.
Our 12-point plan includes the following elements: It includes a balanced budget amendment to the Constitution of the United States. Remember, that was part of the Republican Contract with America, but somehow they have forgotten about it these last 10 years. We need to have a balanced budget amendment to the Constitution.
The gentleman is correct. Our balanced budget amendment would completely protect Social Security so it would not in any way be endangered by this. It would also require a three-fifths majority of this House in order to raise the debt limit. So it would really do a lot to control the spending binge we are on.
Another key element of the plan is, pay as you go. In other words, this Congress could no longer buy on credit. We would take up the national credit card, cut it up, put it away.
Alan Greenspan, the Chairman of the Federal Reserve, says this is probably the single most important policy reform we could undertake. Why does he say that? Because we had it for 12 years and it worked brilliantly. We had it in place from 1990 to 2002. And under Republican leadership they let it expire, so the pay-as-you-go principle no longer operates. We need to reinstate PAYGO.
The gentleman is exactly correct. And if you cut taxes, you have to make up the lost revenue, either through spending cuts or other taxes. And it is an important way to live within your means, by cutting up the credit cards so you are no longer borrowing more than you can afford. It is a key principle.
Another element of the Blue Dog spending plan is to put spending caps on spending, so that we live within our means; so that we live within our own budget; so that the budget does not become a joke, as it so often does within this House.
Another element of the Blue Dog reform plan is to require our Federal agencies to live within their means and get their fiscal houses in order, because so many Federal agencies are not auditable. They do not know how to account for the money that they are charged with, and it is very important that they live within their means just as any family or business has to do in this country.
Exactly.
They would be pretty much out of business if they were a public company in this country, and they are all large enough to be giant public companies. And the Federal Government simply cannot find $24 billion. They do not know where it went.
This is an outrage. And guess what the worst offending Federal agency happens to be? The U.S. Pentagon. And it is not because we are at war. Even during peacetime, the Pentagon has not been able to account for the money it is spending.
That has been true in the past. We hope that is not true today.
We have heard their excuses for too long. So this would freeze them until they learned how to behave and learned how to count the money they are entrusted with.
Another key element of the plan is that Congress has to tell taxpayers back home how much we are spending, because right now many bills go through this body with a voice vote, with no cost estimate. So we are proposing, just as a place to start, not that this is a perfect number, but any bill that spends more than $50 million we will have to have a recorded vote on so that the taxpayers back home will
know who voted for what; so there is finally some accountability in this body.
A recorded vote so that people back home can tell how we behave up here.
I would be delighted to yield to the gentleman from New York.
That was some 3 weeks ago we had the budget resolution. They rammed it through here in 2 hours.
The gentleman asks an interesting question. I am on the Committee on the Budget, and we were only allowed 2 hours from first glance of the document, and this is a complex document, any document would be that spends $2.6 trillion, and 2 hours later, final passage and you never see it again.
That is an outrage to ram through a budget like that. No responsible board of directors in America, no responsible businessman or woman would tolerate that situation, yet it has become commonplace in the U.S. House of Representatives under Republican leadership.
And lest this be viewed as partisan, check again the Cato Institute report. They say that government accountability has suffered terribly under our all-Republican government because there are no checks and balances any more. There is nobody calling them to task, and so we have got to restore fiscal sanity to this Nation.
Another key element of the Blue Dog spending plan is to set aside a real rainy day fund. We know that emergencies and tragedies are going to occur. Let us set aside a little money in advance so that not everything becomes an emergency here.
We spend tens, sometimes hundreds, of billions of dollars a year here because it is a so-called emergency. And some of them are. But in the most recently past emergency supplemental bill of $82 billion, a lot of that was for our troops in Iraq, and we are all for that; but a lot of it was for other stuff that powerful Congressmen and Senators snuck in the bill because they knew they could get away with it.
The gentleman is exactly correct. The other elements of the Blue Dog reform plan, point number seven, would be let us have real votes, recorded votes, on raising the debt ceiling for this country.
A lot of Americans think we vote on that here. Well, we used to, in the good old days. But now, under Republican leadership, if you voted for Speaker Hastert, you also voted to make debt ceiling votes disappear. They no longer happen anymore.
And to put it in perspective, it took the first 204 years of our Nation's history to run up the first $1 trillion in debt, and now we are doing it about every year or two. That is an outrage. And no one is recorded in their votes when we do that. Every year or two it is another trillion; we raise the debt ceiling. And that vote has simply disappeared.
Sadly, Mr. Speaker, the gentleman is exactly correct.
In the little time we have remaining, let me make sure we finish the remaining Blue Dog points here.
We have to admit that Congress likes to spend money on its own pet projects. It is called earmark spending. We do not ban that, but we require a written justification for every project, so that things like Senator Charles Grassley's $50 million indoor rain forest in Iowa would no longer happen without written justification. The Wall Street Journal reported ``it would be cheaper to fly everyone in Iowa to a real rain forest rather than build a fake one somewhere in Iowa.''
Another key element of the Blue Dog reform plan is to give us the 3 days that we have under House rules to read these bills so that we have a chance to know what is going on; so we have a chance to share with our constituents back home what is in these bills so we can get their ideas. That is the best way to represent them, instead of ramming things through here, like our budget 3 weeks ago in 2 hours, or other legislation they rammed through in 1 day under what they call the martial law rule. That is not a pejorative; that is what they call it, a martial law rule for running our democracy.
Another key element of the Blue Dog reform plan is let us get an honest cost estimate for every bill. I mentioned earlier let us have a recorded vote for the larger bills, but we need to know what each bill costs so we have some idea what we are spending.
Most Americans back home are probably shocked that after 200-plus years of this great democracy, we still do not know what bills cost.
Finally, we need to make sure that each piece of legislation fits within the budget, so we do not routinely bust the budget. Last year, I think four or five of the appropriations bills busted the budget.
Finally, Congress needs to make sure that we do a better job of keeping tabs on government programs. This Congress has failed miserably, and even the most partisan Republican would admit that. Most of the oversight subcommittees have been abolished. They
do not exist anymore. There is no one to hold hearings to make sure that the taxpayers' money is being well spent. Those are the key points in the 12-point Blue Dog reform plan.
We have bipartisan support for this. Many of the elements are shared with the Republican Study Committee Plan. Many of us have also supported their reform efforts. We need to work together to form a bipartisan majority, much as our Senate colleagues did to avert the nuclear showdown on judicial nominations, get the sensible center of this Congress to come together and do the right thing for the American taxpayer.
We are so close because if just 10 or 20 of the Republicans would break from their leadership, they could do as the CATO Institute report suggests, start reforming the budget process in this House. All it takes is 10 or 20 renegades on their side to stand up for the American taxpayer. We can get budget reform. It may be the Republican Study Committee that does it. It may be the Mainstream Republicans, or the Tuesday Group that does it, but I believe the Blue Dog Democrats will be there to make sure that sensible fiscal policy is restored to this Nation.
I appreciate the gentleman holding this special order.