Restoring Accountability And Fiscal Discipline
Thank you very much, Mr. Ross. I assume the number you referred to are from the IG reports and the requirement that we have a hearing on them. I want to talk about the government of the United States from a business standpoint, because the…
Thank you very much, Mr. Ross. I assume the number you referred to are from the IG reports and the requirement that we have a hearing on them.
I want to talk about the government of the United States from a business standpoint, because the Congress of the United States is failing the constituents, the shareholders of our country. Every day, to whoever is watching C-SPAN, every day the Congress is failing in its primary responsibility as a third branch of government, as the legislative branch, to oversee the executive branch. And then you have the judicial branch that interprets the laws that are passed here, but Congress has completely abdicated its oversight responsibility under the Constitution of the United States of America as one of three separate but equal branches.
And so I come to this not as a Democrat or a Republican but as a businessperson. My family has been in business in Tennessee for over 100 years, and I know a little bit about accountability, about audits, about responsibility for money that is entrusted to one from another. Now, the Congress of the United States takes money away from all of us, Members of Congress included, in the form of taxation, an involuntary removal of money from our pockets through the form of taxation to the government. The government, as it relates to the Congress here in the Capitol, is supposed to oversee the money it appropriates to any administration. That is our primary responsibility, other than national security, of course. But if we remove that, we are supposed to look out for the taxpayers.
This is the people's House. We are the primary representatives of the people in the national government here in the U.S. House of Representatives. The only branch of the Federal Government, the only office I know of that one cannot be appointed to. When someone who serves here dies or resigns, no one is appointed. It is a special election. And very seldom are there 435 Members here, because somebody has died or resigned for some reason, to seek another office or do something else, but there is no appointment here.
So this is the only office I know of in the whole constellation of offices, State and Federal, where no one can be appointed. Everyone who sits in this House is elected by his or her peers, his or her constituents. So it is a special responsibility that we have, and this responsibility is not being discharged.
Now, the reason I say that is because the last year we have from the GAO of the auditors determinations as to whether or not the executive branch of the government, all the Federal agencies, are able to produce an acceptable audit, in other words to tell us as representatives of the people, we who took money away from people involuntarily in the form of taxes, whether we appropriated it to this or any other administration, what did you do with it? I think that is one of the most basic responsibilities we have to our citizens and to our constituents.
This GAO report for the fiscal year 2004, the last one we basically have, we have one later, 2005, but it is still incomplete, asks the Department of Agriculture if they could produce an audit? No. Department of Defense? Could they produce an acceptable audit? No. Department of Education? No. Department of Health and Human Services? No. Department of Housing and Urban Development, HUD? No. Department of the Interior, which are all the national parks, can they produce an audit? Can they tell us what happened to the money we appropriated? The answer was no. The Department of Justice. The Department of Justice. The answer: No. Department of State. No. Department of Transportation. No. Department of Veterans Affairs. Mr. Ross talked about the veterans. The answer to, can you tell us what happened to the money that was appropriated to your department, was no. AID, Agency for International Development. No. NASA. No. Nuclear Regulatory Commission, in charge of nuclear stuff in this country. The answer to, can you tell us what happened to the money, was no. Office of Personnel Management, in the White House. No. Can't tell us. Small Business Administration. No.
In short, 16 of 23 Federal agencies could not produce an acceptable audit. What has Congress done about it? Virtually nothing. This is an abdication of one of the primary responsibilities of every Member of this House. Not Democrat, not Republican, but every Member who holds his hand up and says I promise to support the Constitution and all the rest.
The people of this country, the shareholders of America, ought to demand at the very least that we can tell them what happened to the money that we took from them, and this government can't do it.
The problem is, we have a friendly administration, a compliant Congress. Nobody wants to embarrass anybody else. I understand that. But what we have created here is a situation where this government is violating every business principle I know. There is not a private business in this country where one can go to the comptroller and say, here is a $5,000 expenditure, can you tell me what this is for, and get the response, I don't know; or I can't answer that question.
Nobody would tolerate that. Nobody would put up with it. Yet that is what our shareholders, the American citizens, are witnessing every day, day after day, here in Congress. There are no hearings. There is no oversight. It is horror stories coming out of whether it be no-bid contracts for Iraq, whether it be no-bid contracts for Katrina. Money is leaving this place through a fire hose and nobody is asking the administration what happened to it. And if they asked them, they couldn't tell them. That is where we are tonight.
It is intolerable as a business person. And again, we have a responsibility as Members of Congress. I don't care whether you are Republican or Democrat, we have a responsibility as Members of Congress to answer to our constituents, our shareholders, the citizens of this country, this is what we did with your money. We appropriated to whatever Department one wishes to choose, and we held them accountable for it. What did you do with the money?
Well, we don't have that. We have a situation where there is no oversight, for an obvious reason: we have one-party government here. What we want to do and what I want to do is simply for lack of a better term audit the books. Before we ask the American people for one more red dime, we ought to find out what is happening to the money we are already taking away from them, and that is what the Blue Dog Coalition is all about. That is
what we want to do. We want to call people in and say you got this and this appropriation, what happened to the money? It is that simple. And if you can't tell us, you don't get it next year.
According to the GAO in fiscal year ending 2004, 16 of 23 Federal agencies, and 19 of 24 in fiscal year ending 2005, according to the GAO, couldn't produce a clean audit. I wish I had made this up, but I didn't. It would be easier to stomach. But nothing is asking.
So we filed a bill that says when the inspector general of any Department identifies either, one, an unacceptable audit, in other words they can't tell you what they did with the money; or, two, they identify in government talk a high-risk program, what that really means is a program that was enacted that doesn't work. Our bill says when either one of those two events occurs, Congress must hold a public hearing on that within 60 days so that the American people will have some means to find out just exactly what is going on in this town, because right now there are no hearings. There is no oversight. There is no subpoena power. There are no subpoenas being issued to call people in and say, give us your books and tell us what you did with the money. That is not happening here.
It is understandable. It is politics and I understand that, but the American people deserve better than that. They deserve better than that, not just from the Democrats but from the Republicans as well. They ought to be demanding. Even though it is a Republican administration, it doesn't matter. We are a separate but equal branch of government charged with this responsibility. We ought to hold the executive branch accountable.
The citizens of this country, the shareholders in this deal, they are getting shortchanged every single day because it is not happening. If it was happening, you would not have these reports. It got worse in 2005 from 2004. That is because nobody is asking them what did you do with the money. If they asked the administration, they couldn't tell them. That is an intolerable situation from a business standpoint, not just from politics, but from a business standpoint.
I congratulate and appreciate you doing this hour tonight because this is something that the consequences, and I will be quiet because Mr. Cardoza has just joined us, but the consequences of this continuing borrowing of money from people who are not a U.S. interest are creating a financial vulnerability which is nothing short of a national security matter.
It is not hard to imagine. China, Communist Red China, has acquired over $300 billion worth of our paper. It is not a stretch of anybody's imagination to understand that they may be interested in something Iran is doing that is not in our best interest, that they may make a move in Taiwan. I made the tongue-in-cheek statement here one night that it is getting to the point that if China attacks Taiwan, we have to go to China and borrow the money to defend Taiwan.
That is a national security matter that is real. It is not a scare tactic. This is real, as it relates to the vulnerability that is created by us financing our government with foreign investment. That is number one.
Number two, as you said earlier, Mike, we are transferring our tax base to interest. There is no country that has ever been successful with no infrastructure investment by the government and no human capital investment, human capital being education and health care. No country in the history of the world has been strong and free with an unhealthy, uneducated population. The more we transfer the tax base to interest and away from investment in infrastructure and the human capital of our citizens, our shareholders, the more we are creating a vulnerability in this country which is a national security matter.