Madam President, I heard the remarks of my colleague from California, and I just cannot let the record stand that President Obama took over in the worst circumstances of our time. Really? The debt of this country was around $10 trillion…
Madam President, I heard the remarks of my colleague from California, and I just cannot let the record stand that President Obama took over in the worst circumstances of our time. Really? The debt of this country was around $10 trillion when President Obama took office. In just 3\1/2\ years, that debt has almost doubled. We are now over $15 trillion and will soon be hitting the $16 trillion debt ceiling limit in just 3\1/2\ years. We are in a debt crisis not from the previous administration, we are in a debt crisis because we are spending too much, we are borrowing too much, and the President keeps talking about more taxes.
Just last Friday, the President came out and said: ``The private sector is doing [just] fine.'' It is government that is in a crisis. Well, yes, government is in a crisis. The private sector
is not doing just fine, and the government crisis is not caused because we are losing government jobs.
The government crisis is caused because we are spending too much, and we are going into debt that is unsustainable in this country.
For the millions of Americans who are out of work in this country, the President's assessment of the private sector must be like salt poured in a wound. My goodness, we have seen job numbers of over 8 percent unemployment since the President took office. The last 3 months have been not so good. We are still over 8 percent, and we went up a little bit to 8.2 percent in May.
So to the nearly 13 million Americans who are unemployed and the millions more who are underemployed or have left the labor force altogether because they have lost hope--Mr. President, things are not fine, and the private sector is not fine in this country, and the middle class is bearing the brunt.
On top of the unemployment rate for those who are in poverty conditions, the people who hold jobs are also losing ground. On Monday, the Federal Reserve reported that the median net worth of American families fell 39 percent between 2007 and 2010. We have not seen these levels since 1992.
During the same period, incomes also dropped sharply. Average household income fell 11 percent to $78,500, down from $88,300. The hardest hit? Families in the rapidly diminishing middle class. While these statistics are troubling, there is a concern that cannot be measured in dollars and cents; that is, that families are losing faith in a secure future. There was a time when every generation had a better quality of life and expected a better quality of life for their children than their parents had. That is not the case today.
In 2010, 35 percent of families said they did not have a good idea of what their income would be just for the next year. That was 31.4 percent in 2007, 35 percent now. So the number of families who are losing the faith that their children are going to have a better life than they have had is diminishing.
How could they be confident? The job creators in the private sector are the ones under siege. I cannot believe the President of the United States is so off base as to say the private sector is doing fine. Just this week, the National Federation of Independent Business released its monthly survey of small business optimism. Survey results continue to be historically low and consistent with the subpar performance of gross domestic product.
According to this survey, levels of hiring and spending remained depressed in May. We all know that. More important, so did plans for the future. The same report states that expectations for increasing future sales continued to be weak in May, far below readings recorded in any other similar period since 1973.
Many small business owners are reluctant to expand their businesses or hire more workers. Small business owners who expect the economy to further deteriorate outnumber those who think there will be an improvement. Small businesses are our Nation's primary job creators. Small business provided 55 percent of all jobs in the private sector.
Small business has created two of every three net jobs in the United States since the early 1970s. So I would say to the President of the United States, it is small business that is the economic engine of America, not government. That is the fundamental disagreement we have with this administration.
We must spur the private sector to create income, growth, and security in this country. The private sector is not doing fine. What should we be doing to help Americans get back to work? We need to address what is causing the uncertainty. Why are businesses not hiring? Because government spending that serves to crowd out the private sector is increasing. There are tax increases being talked about by the President constantly.
So they are looking at looming tax increases, burdensome regulations that they see coming by the bills, such as this, out of the U.S. Government. Those regulations hamper job growth in this country.
Then, on top of all that, on top of the talk of new taxes, on top of the burdensome regulations our small businesses face every day, in bigger numbers every day, it is the health care law that was passed 2 years ago this December.
If we want people to be hired, we cannot saddle our entrepreneurs and small businesses with new taxes, more regulations, and the cost, the overwhelming burden of the Obama health care plan.
President Obama, in an interview yesterday, dismissed questions from a small business owner about the negative impact of the health care law and what it is already doing to small businesses. Anybody who has paid their part of insurance, if they are lucky enough to be covered, knows that the premiums have increased and the coverage has decreased in anticipation of the Obama health care law, adding the new burden and cost on insurance companies, hospitals, doctors.
The costs of doing business in health care are increasing in anticipation of that health care law taking full effect in the next year. I have heard so much opposition in my home State when I travel around from small businesses that are just throwing up their hands and saying: I cannot provide the government-approved health care for my employees, which is going to mean I will have a new tax burden for every one of them as they then have to go on the government plan and fend for themselves.
Even families are going to have to do it or they will have to pay a tax. It is not just a good plan, it is the government-approved plan. So if they provide 35 percent of their employees' premiums, which is what they can afford, but the government requires more than that, they will still have to pay the fine. The small businesses are saying: I am going to pay the fine because that is my only alternative. Those with more than 50 employees, will have costly new Federal regulations to comply with. The financial penalty is so great we are seeing businesses stop at 49 so they will not have more workers and therefore have a bigger responsibility.
I received a letter from a small business owner in Arlington who said it best: ``Did Congress and the President know they were going to freeze our country's businesses' ability to help grow this economy when they passed this bill?'' I will point out that not one Republican in the House or Senate voted for this bill in Congress. So I would have to say to my small business constituent in Arlington: This was the Democrats in Congress and the President's bill. Not one Republican would support it because of the fear of exactly what is happening; that is, small business owners are losing faith that they will be able to grow, and that is what is causing the economic crisis we are in with unemployment over 8 percent.
A small business owner in Corpus Christi, TX, who has 34 employees told my office that his company's cheapest option for health insurance would boost premiums by 44 percent over last year. How can they do it? It is happening everywhere. I hear it everywhere I go. Clearly, this is not the incentive our economy needs right now.
We need government to get out of the way of the job creators in this country not block their path with miles of regulations, new burdens and costs--new regulations, new costs--and then the talk of new taxes which is prevalent everywhere.
Our best hope is that the Supreme Court will see this has a constitutional problem. Then we can start again and take a step-by-step reform. That will do what all of us want to do. Everyone in Congress and the President had the same goal; that is, to have more Americans with affordable coverage and options.
But that is not the bill that was passed, and it is why Republicans could not possibly support it, because they saw the burdens on families, on businesses, and they knew it was not going to encourage hiring, which is what we need in this country. We have a chance to start a process that will be positive. We need to do something to spur small business in this economy.
One thing that could be done, which is in discussions right now, is the Keystone XL Pipeline, which would create a $7 billion, shovel- ready, privately funded project that would transport over 700,000 barrels of oil from Canada
to the United States. It has been estimated it would create 20,000 construction jobs and as many as 100,000 jobs at refineries and other businesses.
By the way, we would be trading with a friendly partner, Canada, so we would not have to import more from unfriendly parts of the Middle East, and we would also be able to know that these are privately funded jobs, not one government cent. In fact, it would create taxes being paid to the government because people would be working, and that is the way we should be growing our revenue in this country.
But the President suggested a different solution. He said the answer is not to spur the private sector because they are doing just fine. He said let's spend more money bailing out the States because they are having a hard time. They are having a hard time. We can do something for the States, and it is not bailing them out with more borrowed Federal dollars that will continue to weigh down the dollar itself. No. We can do something for State governments; that is, stop sending Federal mandates that we do not pay for that we require them to do, put a moratorium on Federal mandates on States today. Let's start repealing these Federal mandates we are requiring States to absorb. It is killing their economies.
Medicaid and the lack of flexibility in Medicaid is the biggest expense most States have. It is a Federal mandate unpaid for and inflexible, not the choice States could make to cover the people who need the help. We can help the States but not at the expense of our dollar and our debt.
So the President is suggesting more spending and bailing out States, and we are offering a solution that says let's create jobs in the private sector. Keystone XL is ready to go right now, private sector, 100,000 future jobs, not one penny from the Federal Government.
Let's take these Federal regulations and let's put a moratorium on them right now and free our small businesses to be the entrepreneurs that built this country. It was the entrepreneurs who built this country in freedom. This country has been a magnet for people coming from all over the world because they could do their research in freedom. They could grow in freedom. They could keep the fruits of their labor and give their kids a better chance than they had, which they could not get in their home country. That is what built this country.
We can get right back there, but it is not by borrowing more, spending more, taxing more, and regulating our small businesses out of existence. We can do something positive, and it is time we got started.
I yield the floor.