Mr. President, would the Senator yield for a question about the previous chart? Mr. President, as I understand it, this figure here reflects the amount of annual growth rate of employment under the Bush administration. At four-tenths of 1…
Mr. President, would the Senator yield for a question about the previous chart?
Mr. President, as I understand it, this figure here reflects the amount of annual growth rate of employment under the Bush administration.
At four-tenths of 1 percent.
We should compare that with the job growth that has taken place in all of these previous administrations. This is the smallest amount until we get back to Herbert Hoover, is that correct?
Right. It is a matter of very great concern. This chart is a dramatic demonstration that this so-called economic recovery has not really produced jobs, which, after all, is one of the main purposes that we seek in terms of the workings of the economy.
Will the Senator yield for a question?
Isn't it the case that the VA, in providing health care for veterans, can use its bargaining position with the pharmaceutical companies to get lower drug prices and therefore is in a better position to provide more extensive coverage for the veterans as a consequence? But on the Medicare for our seniors--I remember the Senator opposing that provision so strongly here on the floor--it is prohibited that Medicare enter into this bargaining with the pharmaceutical companies, bulk purchasing, in order to get lower prices on the drugs?
Madam President, will the Senator yield?
If I understand that chart correctly, the people up to the 50th percentile in the last 5 years have actually fallen behind. They have not had an increase, they actually have had a decrease in their real weekly earnings. Is that correct?
Then beyond that, while there has been some increase, it is far less than what occurred in the previous 5 years of the Clinton administration? Is that right?
Of course, that helps to explain what people are thinking about the economy. I know our distinguished colleague from Michigan talked earlier about the increase in health care costs, the increase in tuition costs, education costs, and the increase in energy costs. That is one side of the squeeze on the middle class and working America. But this is the other side of the squeeze on the middle and working Americans. They are being squeezed down in their earnings and they are being squeezed from the other direction by the increase in costs. So they are really caught in a vise. Their income is not as good and key costs are going up--and at a rather rapid rate. Will the Senator agree with that?
Will the Senator yield?
As I understand it, we have had this tremendous runup in the debt. We are just saddling this burden on the next generations.
One of the things that has happened and needs to be underscored, at least as I am informed, is that the amount of the debt that we are borrowing from overseas has escalated tremendously. In fact, we have borrowed more from overseas--in other words, foreign-held debt--under President George W. Bush than all of the previous Presidents combined.
It is not only that we are incurring the debt and the problems that go with that in terms of the future burden, but more of that debt is being held externally by people overseas rather than being held internally. Before, we were paying it to ourselves. It meant working people were paying money to people who held the Government bonds, but at least it was all within the country. Now there is a tremendous tariff on working people to send this money overseas to the debt that is being held abroad.
Isn't that the case?
If the Senator will yield, as the Senator points out, we have become dependent, as Tennessee Williams said, on ``the kindness of strangers.''
On the one hand, we say we are the world's superpower. In many respects, that is quite true. However, economically, the foundations are weakening. They are not as solid and as strong as they once were.
In the last years of the Clinton administration we were running surpluses and paying down the debt. The Bush administration came in and made these very excessive tax cuts at a time when we moved into a war footing. We have never done that before in this country. When we have gone into a war footing we have always concerned ourselves with how to meet the budgetary demands of the war. That did not happen here. All of a sudden we have switched from running surpluses to running these large deficits, year after year after year. The projections are that they will go out into the future as far as the eye can see.
The Bush people say: We will lower the deficit a little bit. As long as we are running the deficit, we are still building up the debt. We are adding to the debt every step of the way. As we noted previously in our discussion, more and more of that debt is being held overseas. To the extent that happens, we are subject to the kind of leverage that others have.
The United States has gone from being the world's largest creditor nation; now we are the world's largest debtor nation.
If the Senator will yield, furthermore, we have an opportunity to strengthen the economy in so many ways, including addressing the Social Security system which can be done with a number of relatively sensible steps.
The Bush administration, of course, has been pressing this privatization. For the moment, they have been beaten back on that and people are turning their attention elsewhere, but it is very clear they have not given up.
The President, at the end of June, said:
If we can't get it done this year I'm going to try next
year. And if we can't get it done next year, I'm going to try
the year after that.
The majority leader in the House of Representatives says:
If I'm around in a leadership role come January [this
coming January], we're going to get serious about it
[privatizing of Social Security].
And the chairman of the House Ways and Means Subcommittee on Social Security said that privatization would be a top priority in the Congress in 2007.
The American people have to understand this is still very much on the agenda of this administration and its supporters.
Now they want to abolish the estate tax. Why not keep the estate tax and devote the revenues from the estate tax to strengthening the Social Security system? Then there would be a better retirement for everybody.
Will the Senator yield on that point?
In fact, the administration states the problem in such a way I think to sort of panic people, and then use that panic to push them toward the privatization of the Social Security system.
For example, the administration says the Social Security system is bankrupt. The Social Security system is not bankrupt. The Social Security system, at the moment, is taking in more money than it pays out in the trust fund. Of course, the administration then borrows that money to cover its deficits. That is a separate issue. But there is more flowing into the system than is flowing out. That will last until about 2020.
After that, they will start paying out more than flows into the fund, so they will start drawing down the fund. And they can continue to pay out all the benefits until 2046--in other words, 40 years from now, under the projections; of course, the projections are all problematic because it depends a lot on how the economy functions--but under their best projections, before they draw the fund down. At that point, they will still be able to pay 75 to 80 percent of the benefits from what is coming in to the Social Security trust fund. So the worst scenario is a 20- to 25-percent shortfall 40 years from now.
Now, there are many things you can do now, next year, the year after, with an administration that really wants to support the Social Security system, to take care of that problem. The magnitude of that problem is not out of bounds in terms of being able to address it.
But it has been dramatized as though it is an immediate crisis I think to sort of help scare and panic the American people and then have them be more open to these privatization proposals, which, as the able Senator from Rhode Island points out, would be to shift people from a guaranteed benefit--where they are told, as they are with Social Security: You are going to get so much a month and that is guaranteed to you--to a defined contribution plan, where you do not know what you are going to get.
The people who worked at Enron and WorldCom thought they had wonderful retirements. They had these 401(k)s and everything--they thought they had company plans--they thought they had wonderful retirements, and they were going to be living quite well in their retirement years, and it all collapsed. But they still have----
Their Social Security, with its guaranteed benefit every month. So at least they have that basic form. People need to understand how important Social Security is to more than half of Americans who get more than 50 percent of their retirement income from Social Security. And 20 percent of retired Americans get more than 90 percent of their retirement income from Social Security.
So Social Security is really essential to providing that base. In fact, it has helped to lift the seniors out of poverty. It used to be that the age group most in poverty was the elderly. Because of Social Security, essentially--and other things--but because of the
improvements we have made to it now, that is the age group least in poverty. So we have made a substantial change. But Social Security is essential to achieving that.
And I do not know why the administration put it out there. The country rejected it, clearly. And it was reflected by Members of Congress from both parties who said: No, no. And now they continue to talk about coming back to this issue and privatizing. They have not given up on privatizing the Social Security system.
If the Senator will yield further, I think this does much to help explain the anxiety that Americans are feeling about the workings of their economy.
Now, as the Senator so ably showed earlier, working people are being pressed from two directions. Their wages are not going up to keep pace with inflation, and key costs are increasing. That is compounded by the fact that the retired people are in a state of anxiety because they are constantly being told: Social Security will not be there for you-- although I think that is a false cry.
Furthermore, as the increase in educational costs indicates, younger people--not yet in the workforce but moving in that direction--see the opportunities for education and training not opening up but closing down. Senator Stabenow pointed out earlier, we have the most significant cuts in Federal aid to education that we have experienced since the Federal Government began to try to provide assistance in that area.
So through every age group, as they look at the situation, they find themselves being constrained, to deny them the opportunity--the young people--to get an education. Working people are being squeezed badly. And our retired citizens are kept in a constant state of agitation about the safety and the security of their retirement income.
I think that explains why you are getting all these articles now in the major periodicals and in the major newspapers about this sort of anxiety that is running through the society about the workings of our economy. And when they look at it, it is very clear what is happening: the benefits are all being--as that chart indicates--focused right up at the top of the income and wealth scale. And everyone else is left in a state where they are really quite concerned about their future.