I yield myself such time as I may consume. At the end of the day, the Republican budget developed by our Budget chairman, Paul Ryan, is a jobs bill. We know America faces an unemployment crisis today greater than at any time during the…
I yield myself such time as I may consume.
At the end of the day, the Republican budget developed by our Budget chairman, Paul Ryan, is a jobs bill. We know America faces an unemployment crisis today greater than at any time during the Depression. We know roughly 23 million Americans can't even find a full-time job. We know that while government spending has rebounded and how other factors have rebounded in this economy, what we know is that jobs haven't rebounded. In fact, there are fewer jobs in America today than when this President took his oath of office.
So we're going to talk about this budget and its impact on America's economy. The truth of the matter is, if you like the way our economy is going, if you think this is the best we can do, stick with the President's budget and stick with the Democrats' budget. It stays the course. But if you think we can do better for American hardworking taxpayers and jobseekers, there is a choice of two futures.
Mr. Chairman, it's a privilege to serve as the vice chairman of the Joint Economic Committee, the lead Republican for the House and Senate. I'd like to acknowledge the contributions that my fellow House Republicans, such as Dr. Burgess, Mr. Campbell, Mr. Duffy, Mr. Amash, and Mr. Mulvaney make as members of the Joint Economic Committee.
We are here as a matter of law. Established in 1946 as the congressional counterpart to the President's Council of Economic Advisers, the Joint Economic Committee has provided timely insight on economic issues to the Congress for more than half a century. We helped lay the intellectual groundwork for the Kennedy tax cut in 1964, and its 1980 report plugging in the supply side established the credibility of supply-side economics and paved the way for the Reagan tax cuts in 1981. The Joint Economic Committee examines economic developments and evaluates economic ramifications of policies being considered by the Congress, such as this budget, and work by the JEC Republicans received national attention during the debate over President Obama's plan to nationalize health care in the 111th Congress.
Since the Humphrey-Hawkins Full Employment and Balanced Growth Act of 1978, the Joint Economic Committee has performed an important function in this, the annual budget process. Advising Members of Congress on the potential economic impact of the policies set forth in the President's budget and the budget resolution we consider today, it's for this purpose we come to the House floor this evening.
Well, let's begin our assessment of the House budget by discussing some very key economic principles.
Real growth in the economy, which is the foundation for creating jobs along Main Street for hardworking Americans, comes from the private sector and not from government. The Joint Economic Committee examined for the last 40 years the relationship between changes in government spending and jobs along Main Street and private payroll employment. And what's clear is that there is not a tight relationship; there's an inverse relationship.
As Federal Government spending grows, jobs along Main Street shrink. Likewise, when the Federal Government takes a smaller share of resources from Main Street, more hardworking taxpayers find jobs as payroll employment increases. And this chart shows--the blue being Federal Government spending and the red being jobs along Main Street-- every time Washington grows, Main Street shrinks.
My colleagues across the aisle argue that Federal spending should increase when private job growth plummets, but even during periods of sustained increases in Federal spending and investments, jobs along Main Street have remained low or negative. And put simply, Federal spending doesn't create jobs. Only when Federal spending subsides do jobs grow.
Next, there's a very close economic relationship, though, between what we call private nonresidential fixed investment growth. What that means is, when businesses invest in building and software equipment technology, jobs along Main Street grow. This chart shows, again, since 1971, in blue the private investment, businesses software, equipment, and building; in red, job growth along Main Street. And it shows almost a nearly identical correlation.
So, in the end, growing jobs in America depends upon more investment in America, not Federal Government spending, more investment that creates those jobs. In spite of that evidence, 40 years of proven evidence, the White House, President Obama, and Congressional Democrats have only pushed us deeper and deeper into debt.
We have to remind ourselves that both the debt we hold to the public and our gross Federal debt are reaching new post-war levels. They've never been this high since World War II.
Publicly held Federal debt roughly doubled to nearly 70 percent of the size of our economy in just the 4 years leading up to 2011. The same can be said of the gross Federal debt, again, reaching 100 percent of our economy--dangerous levels: dangerous levels to the economy, dangerous levels to our credit rating, dangerous levels to our investment. According to the President's latest budget estimates, this gross debt isn't expected to go under 100 percent for years and years. In fact, he proposes a budget that never balances. The President proposes a budget that takes us deeper and deeper and deeper into debt and hangs an anchor around America's economy.
There is a better solution, and the model is right in front of us. All you have to do is compare President Obama's spending-driven approach to the economy and look at the last serious recession, that which President Reagan had to tackle. Despite bailouts and Cash for Clunkers and auto bailouts and stimulus and deficit-spending in the trillions of dollars, you can tell this recovery continues to struggle. A good comparison is the Reagan recovery because that recovery was fueled by Main Street, by private investment and free enterprise, just the opposite of President Obama and congressional Democrats.
The White House's current focus on massive increases in Federal spending, expanding government beyond imaginable levels to encourage growth has been a failure. Meanwhile, the smaller government, free- market approach utilized by the Reagan administration proved to be much more successful.
Looking at the comparisons between the two, at this same point in the recession, President Reagan's increase in jobs was up almost 10 percent; President Obama's is less than a third of that. The unemployment rate had dropped 3.5 percent at this point in the recovery under President Reagan. It's less than half of that under President Obama.
In average growth, how did the economy grow under the free-market, less-spending approach of President Reagan? It grew by 6 percent. President Obama's record is about a third of that.
These policies by this President and this Democrat Congress of the past 2 years, prior to Republican control, has failed. The point of the matter is government needs to get out of the way. We need to cut government spending. We need to hold the line and reform our terrible tax system. We need to free our small businesses from the oppressive level of regulation coming out of Washington.
Mr. Chairman, in a moment I'm going to talk about the tax reality. We're going to talk about how the current budget that we've living with today inflates our prices and damages real business. But at this time, I have a number of key speakers from the Joint Economic Committee in our conference that I want to get to.
So at this point I reserve the balance of my time.
Mr. Chairman, I am pleased to yield 4 minutes to the gentleman from Wisconsin (Mr. Duffy), one of the key new members of the Joint Economic Committee who understands you can't tax your way back to a strong economy or to a balanced budget.
I yield the gentleman an additional 30 seconds.
Mr. Chairman, I'm pleased to yield 3 minutes to the gentlelady from North Carolina (Mrs. Ellmers), who serves on an important Small Business Committee and who is a nurse and understands our health care challenges in America.
I yield the gentlelady an additional 30 seconds.
Mr. Chairman, I am pleased to yield 3 minutes to a key member of the Joint Economic Committee and of the Energy and Commerce Committee, one of the most knowledgeable on health care, a physician who has delivered more than 3,000 babies, the gentleman from Texas (Mr. Burgess).
I yield the gentleman an additional 30 seconds.
I am pleased to yield 3 minutes to the gentleman from South Carolina (Mr. Mulvaney), again, another key freshman member of the Joint Economic Committee and also a member of the Budget Committee who understands, again, what it takes to get this terribly sluggish economy back on track.
I yield the gentleman from South Carolina an additional 30 seconds.
Mr. Chair, I yield myself the balance of my time.
President Obama made two key promises to the American public. The first was that he would reduce the deficit by half in his first term of office. The second is that he would fix this broken economy in 3 years.
Let's take a close look at those promises, looking first at the economy. This is hard to believe--and I hope those at home are sitting down--but after all of the bailouts, after all the stimulus, after all the Cash for Clunkers, the deficit spending, the housing bailout, everything the President wished for and got in increased spending, we have fewer Americans working today than when this President took office. Think about it: there are fewer Americans working after all the President's economic policies have gone full bore. It's failed the American public in such a way that there are fewer people working today than when this President took the oath of office.
Look at the stimulus. This chart shows he promised the American public if you'll just borrow and spend nearly a trillion dollars of interest, our economy will recover. In fact, he promised right now our unemployment rate would be around 6 percent. It's far above that at nearly 8\1/2\ percent. But that doesn't tell the whole picture because so many Americans have given up hope and so many Americans don't even look for a job anymore. They've just dropped out. We have the fewest people in the workforce in almost three decades. They've just given up that much. Our unemployment rate is really nearly 16 percent. It's a little above it, as a matter of fact.
This is an unemployment crisis. The President's policies--no question, he inherited a poor economy, to say the least. His policies have failed. He's made it worse for about 23 million Americans who can't even find a full-time job these days.
If you want more of the same, stick with the President's budget, stick with the Democrats' budget. They deliver more of the same in an economy that is struggling like it hasn't since the Depression, and millions of Americans just can't find work no matter how hard they try.
The President promised he would reduce the deficit and cut it in half in his first term. He should have been able to do that. Instead, he has increased it by almost half. This is the fourth trillion-dollar deficit in a row.
He proposes to spend so that we're the largest government in American history, larger even than World War II when they dropped everything to win the war. He wants a government bigger than that and deficits that go as far as the eye can see.
Republicans believe we ought to have a choice of futures. When you look at the debt that's being piled on America in the future, let me put that in real terms. We have two young boys, and one is in third grade and one is in seventh. They make our family a joy. I think about what all this means to them, and you may be thinking about it for your kids or your grandkids. All that red ink this President has piled up and the future of America with this debt, today a baby born in America, their fair share of the debt is about $47,000. A baby born today owes Uncle Sam a new Lexus.
If we don't change our ways by the time they're 13, they'll owe Uncle Sam a second Lexus. By the time they're 22 when they've finished college and they're getting ready to start their life, they'll owe Uncle Sam a third Lexus.
The good news is young people don't actually buy luxury sedans for the Federal Government, but they pay the price another way. For all that debt, they pay the price in a sluggish economy, in higher taxes, in higher interest rates. So that young person starting their life after all that schooling and pursuing their dreams in America, they'll have a harder time finding jobs--there will be fewer of them--and they'll keep less in their paycheck as a result of this. That's the future if we stay the course with this President and Democrats in Congress.
Republicans believe there is a better future for America. The Republican budget does just that. It restores a healthy economy for America in a commonsense way. It gets our financial house in order. It starts limiting this out-of-control spending. It starts to take away all the waste and abuse, sunsetting obsolete Agencies, stopping this wasteful spending from stem to stern in the Federal budget. It starts to tighten the Federal Government's belt and budget.
In addition to putting our financial house in order, it shrinks the size of government. It makes it affordable again for America. Not only do we balance the budget; the goal of the Republican budget is to pay off our debt.
Think about it: our goal is not to just break even again. It's to start to whittle down and pay off those huge amounts of debt that we owe to so many in this world. It tackles important issues like Social Security, Medicare, and Medicaid. It preserves them for every generation once and for all.
Last year, America had to borrow $142 billion from China and other foreign investors just to pay Social Security for our seniors. We know Medicare goes bankrupt in 12 years unless we act. If we don't act today, Medicare ends itself as we know it. It ends itself.
Republicans have a commonsense proposal to preserve those important programs, to make them sustainable for every generation; and we do it without raising taxes.
We know you can't take more from people and hope to grow the economy. We know that Washington ought to tighten its belt before we ask hardworking taxpayers to tighten theirs. We know that taxing professionals and small businesses, taxing our local energy companies who manufacture here in the United States, we know that taxing companies that are creating jobs in America is the wrong way to go.
We're going to offer, and are offering, not just a choice of two futures; we're offering some hope to a country that despairs it will ever see a balanced budget again. We're offering hope to a country that right now has a second-rate economy and that some parts of the world make fun of, frankly. We're going to offer hope to businesses who want to compete again both in their community and around the world because today what they tell us is they're not adding jobs. With this debt hanging over us, with all the talk of new taxes and new regulation, they're not adding those jobs. Why would they?
The Republican budget makes sure that we don't balance our budget on the backs of America's small businesses. We know the problem isn't that government doesn't take more of what you earn; the problem is that the Federal Government spends too much. We offer a Path to Prosperity to America. It's the only responsible budget that will be offered to this debate. I wish I could say the Senate will take it up; but for 3 years, they've refused to give a budget to the American people.
We're going to change the trajectory of America, we're going to change the future of America, and we're going to give hope back by passing the Republican budget.
I yield back the balance of my time.