Mr. Speaker, I thank my good friend, the gentleman from South Carolina (Mr. Spratt). I appreciate your leadership on these vitally important issues. I think many patriotic Americans wonder what those moments are in American history when we…
Mr. Speaker, I thank my good friend, the gentleman from South Carolina (Mr. Spratt). I appreciate your leadership on these vitally important issues. I think many patriotic Americans wonder what those moments are in American history when we really do reach a turning point; and to be honest with you, in all the congressional debates there are very few real turning points. But I would like to suggest, as the gentleman has already suggested, 1993 was a turning point when this Nation literally reversed its fiscal policy and finally set our Nation on track towards reaching surpluses which many Americans had given up on ever seeing again.
And I would like to suggest that this year, 2003, is another such turning point, as we dig deeper into the hole of deficits and plunge future generations into what is likely to be a permanent and unresolvable debt load.
Our friend, the gentleman from Virginia (Mr. Scott of Virginia), has already pointed out this chart, and I would like to suggest that this should be on everyone's screen saver, on every computer in America as we put the deficit in perspective.
They were relatively inconsequential in the Carter years, the Nixon/ Ford years. But then with President Reagan we plunged into a sea of red ink which many Americans thought was irreversible. Then in the crucial budget vote in 1993, suddenly we got an upturn, even developing a surplus.
But then again, another pivot point in American history under George W. Bush and his budgets, we are reaching even graver levels of deficit and debt.
I think the gentleman will recognize that many of our constituents just have an instinctive feeling that, well, the President is a Republican and, therefore, he is conservative and, therefore, his budget must be conservative.
Mr. Speaker, does the gentleman from South Carolina think that deficits of this magnitude are conservative?
As I recall, the gentleman has already said these are about to be the largest deficits in history. Is that conservative?
As I recall, the gentleman has said that the deficit for fiscal year 2004 is supposed to be about $300 billion, not counting the war in Iraq, not counting the war in Afghanistan, not counting the war on terrorism, not counting other important problems that need to be solved in our Nation. So the deficit may well be $400 or even $500 billion.
A temporary deficit is one thing. As we know, sometimes a deficit is appropriate to stimulate the economy, but what we are talking about are permanent structural deficits in our economy.
The gentleman is so correct. And a huge deficit like that hurts our economy. It creates higher interest rates. It hurts the employment statistics. And as I think most of the world knows, under the Clinton years we had the most robust economy in the history of this Nation or the history of the world. Surpluses helped us. Fiscal discipline helped us. That is important for us to realize now as we are returning to the era of massive budget deficits.
The gentleman from South Carolina (Mr. Spratt) has displayed great leadership, but I worry so many folks back home find these numbers too large to be comprehended. They are confused. They are over-burdened in their daily lives. They are worried about the war. They are worried about unemployment. They do not know really how to grapple with numbers of this magnitude. But this chart shows it better than anything else, this sea of red ink that we are passing on to the next generation.
President Bush mentioned in his State of the Union that each Congress, each President should take care of its own problems, but this budget is not doing that.
Mr. Speaker, I do. It was a very close vote. As I recall, it was by a one-vote margin the Clinton budget was passed.
Mr. Speaker, as I remember, zero. In fact, they excoriated the President's budget saying that it would lead to depression and other crises in the economy.
Mr. Speaker, many Members were defeated for having done the courageous thing, for having been a profile in courage.
Mr. Speaker, they are few and far between in this budget. It is a massive document of some 20,000 pages, I suppose. It contains many crippling cuts to our programs. Our colleague from North Carolina mentioned several of them in the education area. There are so many features that I hope the public will be aware of and we will try to bring out in the debate.
One feature that is particularly concerning to me is an unconstitutional provision that is in the President's budget. It is little known. It is on page 318 of the analytical prospectus of the second or third volume of the budget. It actually says, if Congress has not completed its business by October 1 of
this year, the budget will automatically revert to the President's budget; whereas, the Constitution of the United States gives that power exclusively to the Congress of the United States, not to the White House.
And that allows this administration, with a handful of Senators, to clog up the budget process, and then automatically, without a single vote taken by this body, turn over the budget to this administration. That is one of the most radical proposals I have ever heard mentioned in public policy debates. And yet it is in this President's budget.
That is why I asked, as I mentioned to the gentleman from South Carolina earlier, this is not a conservative budget. There is a radical budget. This is an irresponsible budget that is leading our Nation perhaps on the road to ruin. No American wants to see that.
It is the responsibility of a two-party system to point out problems. And certainly Democratic budgets in the past have sometimes not been perfect, but we can be proud of this record of actually achieving a budget surplus for the first time in American history, I think, since before the Depression, 3 straight years of surplus were achieved. And that is an important record of achievement that we need to continue, not a road with this massive flood of red ink.
Mr. Speaker, if the gentleman would yield, the gentleman is so correct. He made an extremely important point a moment ago. So many people in the other party feel that deficits do not matter, deficits do not matter; and I think that philosophy is not only wrong, it could lead our Nation into serious economic trouble for decades to come.
I would like to suggest to the gentleman, I even heard some of my colleagues across the aisle say that deficits are a good thing. There is an article today in the New York Times quoting a leader in the other party saying that a deficit is a good thing because they shrink the size of government; and I would suggest that sort of philosophy is not only not conservative, it is one of the most radical approaches to government that I have ever heard of, to pretend that red ink of this volume and dimension does not matter and that it could actually be a good thing.
As the gentleman from Virginia so wisely pointed out, that puts a debt tax, an unrepealable tax on future generations for all time in the amount of $12 billion forever just due to the debt we are running up this year. That is an irresponsible fiscal policy. That is a radical fiscal policy. It is not a conservative fiscal policy.
I think that is what so many of our constituents back home are failing to realize because these numbers are so large, the problems seem so vast, they are preoccupied with the war and with their own personal situation, that when they are presented with a multitrillion dollar budget, it is hard to take it seriously, when, in fact, we are reaching a turning point in American history, and we do need to take action, we need to bring these problems to the American people's attention so that they can respond and call for fiscal responsibility and fiscal sanity because we are not seeing enough of that today in Washington, D.C.
I would like to commend the gentleman from South Carolina and the gentleman from Virginia for their comments.
The gentleman is an excellent economist, and another great economist is our own Federal Reserve chairman, Alan Greenspan, who said, History suggests that an abandonment of fiscal discipline will eventually push up interest rates, so deficits do matter, crowd out capital spending, lower productivity growth, and force harder choices on us in the future.
We should be listening to Alan Greenspan. We should be listening to the gentleman from South Carolina and the gentleman from Virginia because deficits do matter. They are hurting this economy, and we need to return to the fiscal discipline that we saw in the previous administration and live within our means because our Nation is embarking on long-term structural deficits today that we may never be able to erase.