Madam President, we had an election a few months ago. In that election, the American people sent a message, a message that they were concerned about the debt, concerned about our kids and our grandkids and how this debt is going to be…
Madam President, we had an election a few months ago. In that election, the American people sent a message, a message that they were concerned about the debt, concerned about our kids and our grandkids and how this debt is going to be handed down to future generations.
I am not only concerned about that, I am concerned about the imminent threat that this debt poses for our economy and for our people. We are spending about $10 billion a day. Of the $10 billion a day we are spending, we are borrowing about $4 billion.
How big is one billion? It is hard for most of us to fathom how big one billion is. One billion seconds ago I was in high school. One billion minutes ago, Jesus was alive. One billion hours ago, we were in the Stone Age. But $1 billion ago, at the rate the government spends it, was only a few minutes ago.
The government is spending money like there is no tomorrow. We had an election and we thought as voters we sent a message to this place. But it is not getting through. The President gave us a budget. His proposal for 10 years is to spend $46 trillion. How big is $1 trillion?
I mean, it is hard to fathom $1 billion, much less $1 trillion. One trillion dollars, it is hard to imagine. It boggles the mind. If we had thousand-dollar bills and I stacked them in my hand, a stack of thousand-dollar bills 4 inches high would be $1 million. But if I want to have $1 trillion in hundred-dollar bills, it would be 67 miles high.
Why do these numbers mean anything to us? Why does the deficit or the debt mean anything to us? Because it is stealing from our future. We have to do something about it. I think I agree with the Senator from Alabama, that it is a threat to our future, that we could have a crisis come upon us where we cannot manage our debt.
How do we pay for our debt? We can either tax people--most of us think we are already taxed enough already. We are not willing to pay more than 40 percent of our income for taxes. We can borrow. But we borrowed an enormous amount. We now owe the Chinese $800 billion, the Japanese $700 billion. The list goes on and on. We owe the Russians nearly $200 billion. We owe Mexico $20 billion. The list goes on and on.
Where we were once a great nation that exported goods to the world, our No. 1 export is our debt. But what happens when foreign countries quit buying our debt or when the interest we have to pay them exceeds what we are able to pay? Most of the estimates on what we will be paying or the President's estimates are saying we will have a 3\1/2\- percent interest rate. I remember 1979, though, when interest rates went to 21 percent.
If that happens, interest will consume the budget, and we will have very little left for anything else. As it is, the course we are on, if we do nothing, if we just keep spending the way we are spending, entitlements and interest consume the whole budget within a decade. That is with conservative estimates on interest. Imagine what happens if interest rates begin to rise such as they did in the 1970s, and some are predicting this can happen.
Recently, we have been hearing in the newspapers that some members on the other side of the aisle, members of their leadership, are saying: Well, this is all well and good, but those over here, we are mistaken that there is any problem with Social Security. They say Social Security is not adding anything to the debt. They say Social Security is not adding one penny to the debt.
I am pretty new here. But Washington math that says we are not adding to the debt with Social Security is flatly wrong. I have a couple charts with me. Over here is what we bring in, in Social Security taxes, payroll taxes, FICA taxes. Here is what we spend on Social Security recipients. This is what we bring in, this is what we spend.
We are now, for the first time, spending more than we take in. Well, the other side will tell us, they will say: Well, it is not so bad. We have interest payments that fill in the difference. They say Social Security is fine, has all these surpluses. If we go to the Social Security Office, we will find a stack of paper. These are Treasury bills. They are nonnegotiable. They cannot be traded to anyone. We own them, and we pay ourselves interest on the Social Security surplus.
How do we pay the interest? We borrow it from China. So to make up this difference, for them to say Social Security is on solid footing and that we are simply paying and spending the interest it brings in, it is a lie. The interest is paid by borrowing from China. We are borrowing nearly $2 trillion a year.
The Senator from Alabama showed us the statistics. Even though the deficit, official deficit, will be like $1.5 or $1.6 trillion, the debt limit, if we watch closely, in a month, will go up $2 trillion--all kinds of things they do not count, off-budget items, money they borrowed from places.
The truth is, we have to wake up and say our entitlements are unsound. Nobody wants to hear that. People say: You cannot be elected by saying that. Well, guess what. It is the truth. If we do not speak the truth to our problems, we will eventually and ultimately encounter a crisis in our country, and I am for averting that crisis.
I think the President has abdicated in his leadership. We have this enormous problem, and he is giving us $46 trillion worth of spending, annual deficits of $1 trillion that go to the end of time, and he has abdicated his duty. The entitlement system is broken. I did not break it. I am not responsible for the baby boom. We have all those people who were born after the war, and they are retiring.
It just happened. We have fewer workers. Once upon a time, we had over 50 workers for every retiree. It worked. Once upon a time, people lived with an average life expectancy of 65. Social Security worked in the beginning, worked for many years. We are now down to less than three workers for one retiree. It is not working. We have a huge number of people retiring.
It is nobody's fault. But what we want is leadership. Where is the leadership in Washington to say the entitlements are broken and we have to do something about it? It may not be popular, but can we not say someone should lead? The President is failing us and is not leading. We need leadership. How do we fix Social Security? Here is what happens if we do nothing. Look at the red ink. It piles on. This year alone, we will have to borrow $37 billion to pay for Social Security. It goes up to over $100 billion within a decade.
How do we fix Social Security? It is very simple. Everybody knows it, but everybody wants to be quiet. No one wants to say it. I will say it. The age for Social Security will have to gradually rise. I have said it. I have said it repeatedly. I do not want it, necessarily. I do not want to have to do the things we have to do. But someone has to stand and say it has to be done.
We can do it gradually. We can raise the age or allow the age to rise slowly for those 55 and under, and we can fix Social Security by doing that. That alone fixes at least half or more of the problem. We let it rise gradually on the younger people.
There is an alternative. If we stick our heads in the sand and say: Do nothing; we are not touching Social Security; we are not touching Medicare; we are afraid to lead; Wait and let the President lead someday, if we do that, the system is run into the ground. It is a problem.
What happened in Greece when they ran into a debt crisis? They changed the age of eligibility for their entitlements overnight. That is much more difficult. When you are 67 and all of a sudden someone tells you, you do not get it for another year, and you planned on it, that is very difficult.
But what if we say gradually, to those my age and younger, tell them they will have to make adjustments because we do not have enough money. You know what, I think young people already realize it. These young people here, if they are listening to this debate, they know Social Security is broken, Medicare is broken. It will not be there for them unless we fix it. So we need to be the responsible adults. We need to fix these problems and they can be.
Next week, I and a couple other Senators will present a fix for Social Security that fixes Social Security in perpetuity. That is a long time, forever. We will fix Social Security by allowing the age to rise gradually on younger people, and, by saying to those who will retire, the younger people, again, that they may not get as much out of it as some other people get. Basically, there will have to be some testing that says, when you are in a higher income bracket, your Social Security payments will not rise as rapidly as some others will.
It is the only way we fix it. But those two changes fix Social Security forever, if we are willing to do it. The question is, If we speak boldly, if we lead, is that a detriment or an asset? I, personally, think it is the right thing to do, but I also think it is an asset. I think the people will understand, when we lead, we have to make difficult choices.
We have been kicking the can down the road, borrowing and borrowing and borrowing. I think we are coming to a point in time where it has to end. It is going to end either voluntarily and gradually, if we can promote a solution, or it can end with a bang. A bang is a crisis. I do not want that to happen. I want it to happen gradually, in a very rational and reasonable manner. I think we can do it.
But I think what we are finding from the other side and from the President is a failure to lead. I propose that we have new leadership, and we are going to need new leadership if we are going to get this debt under control.
At the very least, we need to have this conversation. I am glad we are having it.
I yield the floor.