Mr. Speaker, I yield myself such time as I may consume. (Ms. SLAUGHTER asked and was given permission to revise and extend her remarks.) Mr. Speaker, as of yesterday, the national debt hit $7,444,423,020,967.95. It translates to over…
Mr. Speaker, I yield myself such time as I may consume.
(Ms. SLAUGHTER asked and was given permission to revise and extend her remarks.)
Mr. Speaker, as of yesterday, the national debt hit $7,444,423,020,967.95. It translates to over $25,000 owed by each and every one of us. The national debt is growing so fast, $1.6 billion every single day, that the last seven digits on the national debt clock in New York City are flipping faster than can be seen by the human eye.
No one is spared this heavy economic burden, not even America's children. In fact, today every child born in America comes into this world owing a birth tax of $25,255 which is their share of payment on a national debt that they had no part in creating.
To my friends on the other side of the aisle that fought with such fervor and passion against the so-called death tax, I ask, where is the moral indignation when it comes to the birth tax which is levied on this Nation's most innocent Americans, its children?
This is a moral issue. The Federal Government cannot continue to borrow 20 cents of every dollar it spends, run up historic deficits, and add to the Federal debt without seriously harming the economy for generations yet unborn.
Today, Mr. Speaker, the House will consider a measure to raise the debt ceiling for the third time in 3 years. The debt ceiling is a statutory limit, imposed by law on the total amount of debt that the United States of America can incur. It currently stands at $7.384 trillion. At the beginning of President Bush's first term, Congress was told that the debt ceiling would not need to be raised until the year 2008 at the earliest. However, if we count the $800 billion increase provided for under S. 2986, the bill to be considered later today, the debt limit will have been raised by more than $2 trillion since President Bush took office.
On this day, with Americans coming together in Little Rock, Arkansas, to open the Bill Clinton Presidential Library, I find myself waxing nostalgic for the budget policies of the 1990s: the PAYGO rules, the spending caps and other critical budget policies that set our Nation's budget on a path to historic surpluses and allowed us to pay down the national debt for 7 straight years. It was not easy but it was the right thing to do.
Last night in the Committee on Rules, my colleague, the gentleman from California (Mr. Thompson), offered an amendment to S. 2986 to help us get on the path of fiscal discipline. The Thompson amendment, co- authored with the gentleman from Texas (Mr. Stenholm), one of this body's most thoughtful Members on budget issues, would have allowed this body to restore the PAYGO rules and spending caps that were allowed to lapse in 2002. Regrettably, the Thompson amendment was rejected and my colleagues are being denied the opportunity to restore some budget discipline.
Mr. Speaker, our national deficit keeps hitting historic highs, $413 billion by the end of September, and no end in sight, particularly as we are spending $5 billion a month on the war. At this rate, deficits will continue for years to come, adding several trillion at a minimum to the colossal debt we have already incurred. In fact, the Congressional Budget Office analysis indicates that at the current rate of deficit spending, by the year 2014 the debt ceiling will have to be raised to $14.5 trillion.
Chronic budget deficits also undermine the economic security of Americans. As the government's appetite for money increases and it consumes more and more of the capital available in credit markets, more Americans will face higher interest rates and find it harder to finance their homes, their education, and their businesses.
Moreover, there is cause for alarm when we look at how this debt is being financed. I have serious concerns about how this Nation will maintain its sovereignty as foreign governments and nationals continue to bankroll us.
Today, the Japanese hold over $600 billion in U.S. debt paper and the Chinese hold between $225 and $275 billion. When 90 percent of new debt is purchased by the likes of the Bank of China and Japanese interests, how can we be sure that we have the resources to provide for the national defense? How do we ensure our independence when foreign governments who do not share our Nation's values or views on foreign policy issues buy up our bonds?
I strongly believe that the level of foreign holdings is a grave and gathering threat to our Nation's sovereignty.
Mr. Speaker the closed rule before us today only allows an hour to debate the national debt. That is simply not enough time to debate an issue that affects every man, woman and child, living and unborn, in this country. Moreover, the majority's refusal to let the Simpson- Stenholm PAYGO amendment come to the floor for a vote is foolhardy. Without a major change in course, we are on the path to debt for generations to come.
[From the Washington Post, Nov. 17, 2004]
Soaring Ceilings
This week the lame-duck Congress will have to raise the
federal debt ceiling. For several weeks the Treasury
Department has
been doing the governmental equivalent of scrounging for
spare change in the couch cushions to pay its obligations.
Now, with the election safely past and Treasury at the limits
of its ingenuity, lawmakers will do the inevitable and
increase the government's borrowing authority by as much as
$800 billion--raising the debt ceiling to more than $8
trillion.
This will be the third time in three years that the debt
limit has been increased, for a grand total of more than $2
trillion during President Bush's first term. The last hike
was nearly $1 trillion, but it took less than 18 months for
the government to hit the newly raised ceiling. By way of
comparison, the entire federal debt in 1980 was less than $1
trillion;
There will be some noisy debate about this, only partly on
point. The debt limit, as now defined, both overstates and
understates the problem of the national debt. It overstates
the problem by including not only what an ordinary person
would think of as ``real debt''--the $4.3 trillion the
government has borrowed--but also money the government
essentially owes itself. These are the ``trust funds'' to
finance future obligations, such as Social Security and
Medicare, that the government ``borrows'' from to pay its
current bills. To the extent this reflects a debt, it's of a
different sort from a Treasury bond. But if this is a debt,
the ceiling understates the problem because the trust fund
IOUs the government issues to itself don't come close to
reflecting the full cost of its future commitments to those
programs.
This much is beyond question: The government is living far
beyond its means. The deficits it racks up year after year
impede economic growth, burden future generations and force
the United States to rely on foreign governments and
investors. Since Mr. Bush took office, foreign holdings of
U.S. debt have grown from 30 percent to 43 percent of the
total, and 90 percent of the new debt has been purchased by
foreigners. Meanwhile, as the government has to pay more
interest on its debt, it has less for health care, education
and other programs. According to the Congressional Budget
Office, the government's interest payments are expected to
more than double between 2003 ($153 billion) and 2010 ($319
billion); interest costs will account for almost 10 percent
of federal spending in the next decade.
``We owe it to our children and grandchildren to act now,''
Mr. Bush said in his first State of the Union address. He was
speaking about his plan to pay off over the next decade the
entire $2 trillion in government debt held by the public.
Now, instead of being eliminated, debt held by the public--
real debt--is on track to reach $6.5 trillion by 2011. How do
Mr. Bush and all the lawmakers who have enabled his
irresponsibility plan to explain that to the grandchildren?
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 4 minutes to the gentleman from Massachusetts (Mr. McGovern), a member of the Committee on Rules.
(Mr. McGOVERN asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 5 minutes to the gentleman from Texas (Mr. Stenholm).
(Mr. STENHOLM asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield myself 1 second just to say that President Bush, in his first State of the Union said, ``We owe it to our children and grandchildren to act now,'' speaking about his plan to pay off in the next decade the entire $2 trillion in government-debt held by the public.
Mr. Speaker, I yield 5\1/2\ minutes to the gentleman from South Carolina (Mr. Spratt).
(Mr. SPRATT asked and was given permission to revise and extend his remarks.)
Mr. Speaker, may I inquire how much time remains on each side.
Mr. Speaker, I yield 3 minutes to the gentleman from Oregon (Mr. Blumenauer).
Mr. Speaker, I yield 3 minutes to the gentleman from California (Mr. Thompson).
Mr. Speaker, I yield 2 minutes to the gentleman from Oregon (Mr. DeFazio).
Mr. Speaker, I yield 1 minute to the gentlewoman from the District of Columbia (Ms. Norton).
Mr. Speaker, I yield myself the balance of my time.
I will be calling for a no vote on the previous question so we can change the rule and add the Stenholm amendment to reinstate pay-as-you- can-go programs in our budget process.
This amendment was offered in the Committee on Rules last night and defeated on a straight party-line vote. I want to emphasize that this no vote will not in any way prevent or block the consideration of the underlying bill to increase the debt ceiling, but a yes vote will block us in voting to restore the pay-as-you-go provisions in the budget process. I urge a no vote on the previous question
Mr. Speaker, I ask unanimous consent that the text of the amendment be printed in the Record immediately prior to the vote on the previous question.
Mr. Speaker, on that I demand the yeas and nays.