Concurrent Resolution On The Budget For Fiscal Year 2012
Madam Chair, on behalf of the Joint Economic Committee, I yield myself as much time as I may consume. This country is starved for truth-tellers, people in Congress who will just tell them what the problems are that this country faces, give…
Madam Chair, on behalf of the Joint Economic Committee, I yield myself as much time as I may consume.
This country is starved for truth-tellers, people in Congress who will just tell them what the problems are that this country faces, give them options and help them make the right choice, people who are strong enough to lead and bold enough to lead at a time when the country needs leadership. When it comes to the budget, when it comes to the economy where the President has failed, House Republicans will lead.
The Paul Ryan budget helps spur job creation in America today. It stops spending money the government doesn't have. It lifts the crushing burden of debt. This plan puts the budget on the path to balance in paying down the debt over the long term, and it puts the economy on the path to prosperity.
Let's talk about the economy. It is the number one concern of most people, and the debt and deficit have a lot to do with it.
We are undergoing one of the worst recoveries we've seen in a long time. It is two to three times slower than the Reagan recovery, and there is reason for that. We were told by the President and congressional Democrats that if we just spent money, spend it in the stimulus and spend it in increased deficits, that the economy would recover. And they were wrong. After spending hundreds of billions of dollars on the stimulus, we have 2 million fewer jobs in America today than when the stimulus began. We have fewer jobs today than when all that spending took off.
We were told if Congress passed all the stimulus bills that our unemployment rate today would be 6.8 percent. It's 8.8 percent. And it's only that low because so many people have given up simply looking for work anymore. They've lost hope. And then finally, for those who say we just spend more to create this economy, they were off, their predictions, by 7 million American jobs.
It's time to stop listening to the economists who got it wrong and start listening to economists who got it right.
Let's take a look at what spending has done to our economy in America. Here is a chart. It looks back on the last 40 years in America, and it tracks Federal Government spending against job creation along Main Street, not government jobs but jobs in the private sector, the small-, medium-, and large-sized businesses that our economy depends upon. The blue line is government spending. The red line represents jobs along Main Street. You can tell with the blue line. Look at how different job creation is. In fact, over each of these four decades, not only is there no correlation between Federal spending and jobs along Main Street, but it's a negative correlation in each of the 4 decades. As government spending goes up, jobs along Main Street go down.
Look at this next chart. We also went back the last four decades in America and asked about private business investment. What happens when companies large and small buy new equipment, buy new software, buy new buildings, and invest back in the economy? Here is the chart. The blue is the private, fixed investment from business. The red is job creation along Main Street. As you can tell, it's a very close correlation.
In fact, there is no substitute in America for private investment in the economy--no substitute, no rebates, no stimulus, no shovel-ready projects. Nothing is a substitute for creating jobs like getting businesses to invest back in their workforces, in their workplaces and in the economy.
Recently, I had the Joint Economic Committee take a look at the economic studies over the last 40 years of our competitors around the world, competitor countries that got themselves into debt trouble but that worked their way out of it. You would be interested in the results of this
study, and there are three key points to it.
One is that the countries that were most successful in getting their debt down, in getting ahold of their financial paths, didn't do it by raising taxes. That didn't succeed. They did it by reducing spending. That's how they best and most successfully got ahold of their debt. There were 21 times that 10 different of our global competitor countries got a handle on their debt successfully by reducing spending.
The second takeaway from this study, called ``Spend Less, Owe Less, Grow the Economy,'' was that countries that got ahold of their debt the right way also grew the economy as well. Economists agree that the countries that get their financial houses in order grow their economies over the long term. What this study shows is that, with our competitors, if you get a handle on your spending the right way, you grow your economy in the short term as well.
Here is Canada. Neighboring Canada got themselves in financial trouble. Their economy was growing at a paltry pace, less than 1 percent a year. They lowered their debt as a nation by about 12 percentage points, and their economy took off. For almost 16 years, they've averaged economic growth of almost 3\1/2\ percent.
Sweden, another developed country with an economy like ours, actually had an economy that was shrinking. It was actually contracting. They got ahold of their financial house and put that in order as well, reducing their debt by more than 11 percentage points. Their economy took off, growing 3\1/2\ percent a year, on average, for almost a decade. New Zealand did the same.
You may say, Look, we're not Canada; we're not New Zealand; we're not Sweden. Yet 26 times, nine of our competitor countries around the world that lowered their debt by reducing spending grew their economies strongly, not just in the long term but in the short term. They didn't grow them a little. Those countries rocketed to the top quarter of economic growth in the world. Countries that reduce their spending and do it the right way grow their economies.
Here is a third and another, again, telling point about this, which is that not all spending cuts are the same. When it comes time to grow the economy, not all spending cuts are the same.
What these economists showed is that the nations that grew their economies the most successfully undertook cuts that were large, credible and difficult to reverse. So they made cuts in savings that mattered, and the cuts in savings that grew their economies made sense. They shrunk their Federal workforces. They right-sized them to what they could afford. They eliminated duplicate programs, obsolete programs--as a business would--programs that waste money. They reduced subsidies to corporations which were interfering in the free marketplace. Finally, they tackled their entitlement reforms in health care and in pensions. What is interesting is that, even if the reforms they made in their entitlements didn't affect their current beneficiaries and even if they phased those reforms in over time, the reforms sent the right signals to the marketplace.
Then what happened in each of these countries is that businesses, in no longer facing higher taxes because of all that spending, felt comfortable getting to reinvest back into their workforces, back into their countries' economies. Households like ours, in no longer facing higher taxes to pay for all these spending sprees, felt more comfortable buying larger ticket items, like cars and houses. As we know, when businesses invest, jobs along Main Street grow. It has been made clear time and time and time again, like businesses, countries that can get ahold of their debt, that can do it the right way and that can put themselves on financially sound paths grow. America's economy can grow as well.
The budget resolution presented tonight by Chairman Paul Ryan meets the test that spending reductions must be large, credible and difficult to reverse once made to boost our economy:
The Ryan budget attacks the medical entitlements that are driving Federal spending higher. It attacks corporate welfare by phasing out government guaranties to Fannie Mae and Freddie Mac. It eliminates subsidies for green energy, and it reduces agriculture subsidies by $30 billion over the next decade. The Ryan budget rolls back non-security discretionary spending to its 2008 levels and then freezes it for 5 years.
It adopts a number of the recommendations from the President's own fiscal commission to eliminate waste and to achieve real savings in our budget. It eliminates agencies and programs identified by our own government as wasteful and duplicative. That alone will save over $100 billion in the next decade.
It reduces the Federal workforce. It right-sizes the Federal workforce by 10 percent over the next 5 years by attrition, simply by hiring only one new Federal employee for every three employees who leave or retire. Together, that saves almost $400 billion.
The Ryan budget envisions a pro-growth tax reform that lowers the top income tax rate for both individuals and companies to 25 percent and makes us competitive again in this world.
The Ryan budget is a fiscally responsible plan that accelerates economic growth and job creation. It is a game-changer for this Nation and tells the truth about our challenges, and addresses them with ideas and proven solutions that move us forward.
Madam Chair, I reserve the balance of my time.
Madam Chair, I yield myself 30 seconds.
I would remind the listeners that it was Democrats who fought the prescription drug program for our seniors; who last year slashed a half-trillion dollars from our seniors programs, which will hurt our local hospitals, our nursing homes, our hospice programs. They're going to drive 7 million American seniors out of their Medicare Advantage plan. And yet they failed to lead to preserve Medicare for every generation once and for all. They failed; we're going to lead.
At this time I would like to yield 3 minutes to a new member of the Joint Economic Committee, the gentleman from South Carolina (Mr. Mulvaney).
I yield the gentleman an additional minute.
Yielding myself 30 seconds, I would remind our colleagues that are Democrats that Congress slashed a half trillion dollars from our seniors' care, including nursing homes, just last year. I will also remind our colleagues that Medicare is insolvent. The biggest threat to our seniors today is to do nothing.
Democrats and the President failed to lead. Republicans are not only going to preserve Medicare as it is today for those 55 and older, but for the younger generation, we are going to give them the choices and the options to preserve that program for them for their entire life.
Madam Chair, I yield 5 minutes to a new member of the Joint Economic Committee who understands that government doesn't create jobs, it is the private sector that creates jobs, the gentleman from Wisconsin (Mr. Duffy).
I yield the gentleman 1 additional minute.
Yielding myself 30 seconds, I can't help but think many Democrats are eager for everyone else to sacrifice. What about government? Why can't government sacrifice a little? All of those obsolete agencies and all of those wasteful programs, the money they spit away on stimulus programs and to bail out anyone who needs it. Maybe it is time for shared sacrifice, and it can start with the big, fat, bloated Federal Government.
At this time, I'd like to yield 5 minutes to a physician who has delivered more than 3,000 babies in his life, is a valued member of the Joint Economic Committee, and expert on health care and many of our health care entitlements, the gentleman from Texas (Mr. Burgess).
I yield the gentleman 1 additional minute.
Madam Chairman, I reserve the balance of my time.
Madam Chair, I yield myself 30 seconds.
I would remind our listeners that it was our Democrats who fought the prescription drug program that has been so critical for seniors to buy their medicine. They slashed half a trillion dollars from Medicare to pay for the new ObamaCare plan, and they did nothing to preserve Medicaid for our seniors.
The exaggerations today that are flying through this Chamber really are shameful. What the Republicans are intent on doing is preserving Medicare for every generation. We are not going to bury our heads in the sand.
I yield myself an additional 15 seconds.
The Democrats have failed to lead on these important entitlement programs. They had their chance. They failed. The Republicans will lead, and we will preserve those programs.
Madam Chair, how many Americans really think this country is heading in the right direction? How many Americans, middle class Americans, believe that these deficits, trillion-dollar deficits, can go on and on as far as the eye can see? Although Americans believe that they have better lives and opportunities than their parents, how many of them question whether their children will have the same opportunities in America today?
You know, we can't continue to go down this path, and that's what the Ryan Republican budget is all about, a new direction for America where we no longer hide our heads in the sand and ignore the problems facing America.
Paul Ryan and the Republican budget tell the truth to the American public about how serious a problem we face as a Nation. It offers real commonsense solutions to address them. It gives them ideas that work, solutions that work. It creates economic growth and job creation by fostering the right business climate for growth in America.
It tackles our spending, dangerous spending deficits, by reducing those over time, implying and imposing discipline on our Federal Government. So they have to live within the same means our families and small businesses have to. It provides real security for our seniors and Medicare and Medicaid and Social Security.
More importantly, it offers hope for young people who don't think those programs will ever be around again. Paul Ryan and the Republican budget offer some hope that they don't have today, and it repeals this terrible ObamaCare and gives America hope again.
I strongly support this budget.
I yield back the balance of my time.