Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, a week or so ago, I was being interviewed by CNN. I think it was a couple days after the jobs report had come out for the month of May.…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, a week or so ago, I was being interviewed by CNN. I think it was a couple days after the jobs report had come out for the month of May. The reporter who was interviewing me was commenting on those job numbers--which I think were disappointing to all of us--and asking me if we were back in the soup, were we heading back into a recession. Instead of continuing to recover from a
really deep, awful recession, an awfully hard, tough recession, would we go back into the soup? And I said to her that I know there are people in my State and across the country who are still hurting, still suffering. People have lost jobs, and in too many cases people have lost their homes and are fearful of losing their health care and not being able to maybe send their son or daughter back to school. And I said that I realize we still have more pain in our country, more than any of us would like.
But, I said, maybe there are four things we should keep in mind:
No. 1, let's not talk ourselves back into a recession, which we have the ability to do. Our hair is not on fire. Let's continue to make sure we are looking at the underlying fundamentals of the economy, and while they are not universally up or upbeat, the underlying fundamentals are not entirely bad either. Our energy costs are way down. We are not just the Saudi Arabia of coal, we are the Saudi Arabia of natural gas. We are now a net exporter of oil, and we are seeing significant reductions over the last half-dozen or so years in our dependence on foreign oil, from about 60 percent of the oil we use being from foreign sources to approaching 40 percent. So the movement is right.
Another underlying factor is the cost of health care in this country. For years we have seen double-digit increases in the rate of health care costs in this country, and last year health care costs in this country rose by only 4 percent. That is a positive factor as we try to be more competitive with the rest of the world.
Another factor is the difference in labor costs between our country and other countries with which we compete, one of them China and another, believe it or not, Vietnam--a very low-cost producer of manufactured products. What we have seen in those other countries-- Vietnam, China, and some of the other Asian countries--is that their wage levels have come up, and our wage levels in this country have pretty much remained the same. As a result, the inducements for companies here, particularly manufacturing companies, to move offshore their manufacturing operations have diminished from where they were a couple of years ago.
I think those are all encouraging factors, again, to lay the groundwork for a sustained economic recovery, if our friends in Europe can work their way through, navigate their way through their problems in places such as Greece and Spain. So it is not all bad news. It is not all bad news.
In the near term, what should we do? Again, No. 1, not talk ourselves back into a recession. No. 2, prepare to hit a home run. From a guy who likes baseball a lot, we need to hit a home run. I don't think we will hit a home run here in this Chamber, in this building, in this city before the election.
But the best thing, in my view, we can do for the economy is to adopt a bipartisan, comprehensive deficit reduction deal, much like that proposed by the deficit commission led by Erskine Bowles, former Chief of Staff to President Clinton, and by former U.S. Senator from Wyoming, Republican Alan Simpson--the so-called Bowles-Simpson Deficit Reduction Plan. That plan provides for $4 trillion to $5 trillion in deficit reduction over the next 10 years--$3 on the spending side for every $1 on the revenue side. That actually lowers both corporate and individual tax rates. It lowers the rates and bottoms the base of income that is taxable, eliminating half of our so-called tax exemptions, tax breaks, tax deductions, tax credits, and tax loopholes.
That is how we end up with lower rates both on the corporate and individual sides, and also actually creating revenue: $1 for every $3 of spending reduction. That is a home run. I don't know if we are going to hit that home run before the election, but sometime between the day after the election and, hopefully, by the end of the year we will adopt something similar to that and provide certainty: One, can we govern? Yes, we can. Two, can we be fiscally responsible? Yes, we can. Three, can we provide certainty with respect to our Tax Code? Yes, we can. I think the adoption of that kind of plan answers all those questions with, yes, we can. And we are.
But while we prepare to hit a home run, I don't think we ought to wait around until the end of the year to do something. In the meantime, we need to hit a lot of singles. So rather than hitting a home run with runners on base, let's see if we can't hit some singles and maybe some doubles and score some runs for the economy.
I spend a lot of time, as my colleagues will tell folks, on how to create a more nurturing environment here for job creation and job preservation. How do we do that? Our friend, John Chambers from West Virginia, a native of West Virginia--as am I--who now heads up Cisco, a big technology company, likes to say the jobs of the 21st century will go to those States and those countries that do two things especially well: One, a productive workforce--students who can read, write, think, do math and science coming out of our high schools, coming out of our colleges and universities, into the workforce; and, the States and nations that do another thing very well; that is, create a world-class infrastructure; broadly defined, roads, highways, bridges, transit, rail, port, airports, waterways, water treatment, broadband--all of the above, broadly defined infrastructure.
In addition to that, there are a number of other things we can do to provide a nurturing environment, and they include cost-effective regulations, commonsense regulations, access to leaders like us.
Another positive development in job creation and job preservation is access to capital, the ability to actually borrow money for businesses, large and small, at reasonable rates; the ability to export into foreign markets and to get financing for those exports if they need it; incentives to do basic research and development that actually can be commercialized and create products that we can sell around the world. Those are some of the things that actually contribute to a nurturing environment--not all, not the only things, but some of them.
The other thing that we can do in terms of hitting singles and doubles is some things that we have done in this Chamber this year, and I want to mention a few of those. They include actually doing something about our aviation infrastructure.
When we passed the Federal Aviation Administration reauthorization earlier this year, we not only provided for a source of revenues-- provided by the general aviation community and the civilian airlines here, the sorts of revenues to upgrade, modernize, and improve airports--but we also provided money to bring an analogue air traffic control system into the 21st century, arguably a digital system. So that is one in terms of a more nurturing environment.
No. 2, I actually said the idea that in the past, if someone comes up with an idea--like this young woman who is typing down my words on the floor today. If she comes up with a good idea and goes to the Patent Office--in the past she could go to the Patent Office and say: I have a great idea--maybe for a better machine than the one she is taking down my words with here today--and she files for a patent on that machine. A year later, I show up at the Patent Office and say: No, that was really my idea, and I thought of it first. She just filed first, but I really had it first. I end up going and litigating with her, and it may string out for months, years, and provide a lot of uncertainty. I don't have a patent, but I just want to be bought out and basically paid off. Maybe I had the idea first, but in a lot of cases I didn't, and I want to be given something of financial consequence so I will go away.
We have changed that with the law we passed here and the President signed that says: Whoever files first--if she files first for that new machine, it is her patent. It is an important thing for us to do with respect to providing certainty for innovation and creativity.
Another thing we did that I think is a smart idea is we said: We are having a hard time selling our goods and services in places such as South Korea, Panama, Colombia, and a lot of other places around the world. We negotiated in the Bush administration--with George W. Bush-- and further in the Obama administration, free-trade agreements with South Korea, Panama, and with Colombia. They have been approved by the Senate, agreed to by the President, and they are now the
law of our land and the lands of those free countries.
What does it mean for us and South Korea, a place where they sold to us last year 500,000 cars, trucks, and vans; a country we sold 5,000 cars, trucks, and vans to? That is going to change, and their ability to keep our vehicles out will phase out over time, and we will have the opportunity to sell our vehicles there just as they have the ability to sell their vehicles here.
We will have the ability to sell poultry products. We raise a lot of poultry on the Delmarva Peninsula in Delaware. We will have the ability to sell poultry products into countries such as Panama and Colombia without impediment and tariff barriers to keep them out.
So the idea to provide better access to foreign markets, we have done that at least with respect to those three, and we are trying to negotiate now something called the Transpacific Partnership, which would allow a number of countries in this hemisphere--including us and maybe Chile and a couple other countries south of us, maybe even Canada and Mexico--to create a trading partnership with countries such as Malaysia, Australia, New Zealand, Vietnam, and a couple of other countries over there.
I am told the Japanese are interested in being part of that as well. That could be an enormous new global partnership that would enhance trade between all the countries that are a part of it.
Another piece of legislation for a single that we have hit over here is something called the JOBS Act. You may recall that IPO onramp-- initial public offering--for changing the shareholder threshold, raising it from 500 shareholders to 2,000, something I worked on. The IPO onramp will make it easier for companies, if they want to go public, to do so.
John Carney, a Congressman from Delaware, worked on that in the House and did a very nice job. But that is legislation endorsed by the President, supported by Democrats and Republicans, now the law of the land--another single, maybe a double, I don't know--where middle-sized companies and smaller companies that want to grow either remain privately held or become publicly traded.
Other potential singles and doubles are the postal legislation that Senator Lieberman, Senator Collins, Senator Brown, and myself and others have worked on to try to save the Postal Service, which is losing $25 million a day in the 21st century. We have a pretty good idea on how to stem that hemorrhaging and how to help them help themselves become sustainable again in a break-even operation. That legislation, a bipartisan bill, passed the Senate and was sent over to the House awaiting action. We need for the House to take up that legislation. If they do, that is something that can help save and preserve 7 to 8 million jobs and affect a significant part of our country.
Another potential double--maybe even a triple--is transportation legislation and the 2 or 3 million jobs that flow from that. A lot of transportation projects in my State and 49 other States are literally grinding to a halt because of the inability, in this case, of the House to agree with bipartisan legislation that we passed in the Senate to fund and to go forward with transportation projects in all 50 States that nobody is arguing with. They are not bridges to nowhere. They are actually smart ideas, and a lot of them involve State funding as well, but they need some Federal help.
We passed it in the Senate, and the House has sort of gone to conference with it. But we are having a tough time getting to yes. If they do, that is a double or triple with runners on base, 2 to 3 million jobs.
Those are things that we can do to actually enhance and nurture the environment for economic growth, for job creation, job preservation in this State.
There is one more single or double I want to talk about, and it is the agriculture legislation. We have an agriculture bill that has been brought out of committee by a big bipartisan vote. It would enable us to do what I think we need to do in a lot of areas of our government; that is, get better results for less money. I like to say in everything we do, everything I do, I know I can do better. I think the same is true of my 99 colleagues. I believe that is true of most Federal programs. One of our challenges is to figure out how to get better results for everything we do.
Today we had a very interesting hearing on the Medicaid Program and how to get better results for less money with respect to Medicaid and how we reduce improper payments--mistakes and so forth--and how we reduce fraud losses, which are about 10 percent of what we spend in Medicaid and Medicare. But a recurring theme for me and for the subcommittee I lead on Federal financial management in the Senate is how do we get better results in almost everything we do for less money or better results for the same amount of money? That is not a Democratic idea, it is not a Republican idea, it is not a liberal idea or a conservative idea. It is just a smart idea.
In a day and age of these trillion-dollar deficits--and deficits are coming down, but it is still too high. While we wait to do that big deal, hit that home run with something like the Bowles-Simpson Deficit Commission recommendation later this year, we need to continue to hit singles in terms of reducing spending taxpayers' money in a smart and more cost-effective way.
That brings us to the legislation that has been before the Senate this week, and that is the Agriculture bill. Believe it or not, in Delaware, our little State, we have 300 million people in about 100 miles from one end to the other, north-south, right here on the Mid- Atlantic between Washington, DC and New York City. For us, agriculture is still a big deal. We don't have a lot of cows--we have some. We don't have a lot of hogs--we have some. What we have a lot of is chickens. We have a lot of chickens.
For every person who lives in my State, there are 300 chickens. As you go from north to south, the chickens have us outnumbered even more than 300 to 1.
Eighty percent of our agricultural economy in Delaware is poultry related. The poultry industry doesn't need a lot or ask for a lot in terms of support or investment from the Federal Government. But we raise a lot of corn and soybeans in Delaware, and so we care about agriculture and we care about the farm bill. Other parts of the country care about it even more, maybe, than we do. But I want to talk about it for a few more minutes before I head back to my office.
I am here today to say that the farm bill that has been before us this week, when compared to the ones that have come before it in recent years, makes great strides toward reforming a process that was too often--and I think rightly--criticized as regressive and, unfortunately, wasteful.
All told, the bill that has been brought to the floor--a bipartisan bill. Great kudos to the chairman of the Agriculture Committee in the Senate, Debbie Stabenow of Michigan, and the Ranking Republican Senator, Pat Roberts from Kansas. They have done great work in steering this legislation through committee, again with strong bipartisan support, and bringing it to the Senate floor, saving the Federal Government almost $24 billion over the next 10 years compared to what we would otherwise be spending under current law.
The legislation eliminates wasteful spending by getting rid of the so-called direct payments program, which too often gave money to farmers even when farmers didn't grow anything or even own the land. But I think the bill is also humane, and this legislation is not unfair to our farmers. I believe it embraces the Golden Rule of treating other people the way we want to be treated, and that includes farmers and farm families and taxpayers.
But instead of continuing the direct payments program that has prevailed for years, this legislation institutes a new crop insurance program, a long sought after goal by those of us wanting to make progressive changes to farm law.
Instead of giving money to farmers who, again, sometimes don't grow even a single crop in a year, this legislation only helps farmers when they actually experience a loss on the crops they are actually growing.
For a lot of people in this country, that would just sound like common sense. But in Washington, DC, and across the country, it is an uncommon approach to farm legislation. This is a much smarter approach.
In the end, the new crop insurance program, the Agriculture bill before the Senate this week, still would give farmers the security they need to continue farming. There is a lot of uncertainty in farming. Is it going to rain? Is it going to be cold? Are we going to have hail? Are we going to have drought? There is a huge amount of uncertainty, and it is important for us--to the extent that we can reasonably do that--to reduce uncertainty and lack of predictability for all kinds of businesses. It is hard to do that. We don't control the weather; we don't control the temperature--well, indirectly maybe. But to the extent that we can help provide some certainty, security, and predictability for the farmers at a lower cost to the taxpayers, we ought to do that.
I think this committee has pretty well thought that through and figured out a way to do crop insurance--an old program--with a new approach, a smarter approach that is good for farmers and, I think, good for taxpayers.
Another thing this legislation focuses on is nutrition and how we can encourage farmers to grow and people to eat more healthful foods as part of their daily diets.
We live in a country where, sadly, one-third of the American people are overweight or on their way to being overweight, and maybe on their way to being obese--about one-third of us. The trend is not good.
In terms of cost for health care, it is killing us: Medicaid costs, dialysis, diabetes, hospitalization, loss of limbs, loss of eyesight, and for our ability to fund Medicare, again, the same kind of challenges and hardships in the ability for us to compete with the rest of the world when we are so much heavier than they are. We know the four major cost factors in health care are, No. 1, weight; No. 2, tobacco; No. 3, high blood pressure; No. 4, high cholesterol. If we could do a better job on all those fronts, we would be off to the races on our health care costs. We are making some progress bringing health care costs down.
Believe it or not, this agricultural legislation is part of the solution because it, among other things, encourages us to eat a diet that is more healthy for us. This bill doesn't mandate what people eat, but it helps to encourage and provide ways to make healthier foods available, nutritious foods available in places such as health deserts. There are some communities, some cities around the country, where the only grocery store they have in their community is a convenience store. There is nothing wrong with convenience stores, but if that is the only place one can buy fruits and vegetables, and they don't have them-- maybe bananas if one is lucky--that is not good.
This effort, along with the First Lady Michelle Obama, will be reducing those food deserts. It includes support for programs that help farmers produce fruits and fresh vegetables. In our State, we raise not only corn and soybeans, we raise a lot of fruits and vegetables, most notably watermelons, but we do a few lima beans and other products as well. We grow most of those in the summer, some in the fall and the spring, but we will be able to bring it to market in ways that benefit farmers and consumers and also support programs such as Farm to School, where we actually bring fresh fruits and vegetables from our farms to schools to feed our students.
We also talk a lot around here, as my colleagues know, about reducing our dependence on foreign oil. As I said earlier, dependence on foreign oil in this country has dropped from about 6 years ago; a half dozen years ago, 60 percent of our oil was from foreign sources; now we are turning down toward 40 percent. We hopefully will be there in another year or two. But this legislation, the agriculture bill, actually helps move us in that direction where we are lessening our dependence on foreign oil.
It includes legislation I joined Senator Stabenow in introducing earlier this year that would support the expansion of products made in country from bio-based material, such as the renewable chemicals made from plant material which can be used to displace petroleum and our plastics.
The DuPont Company, which is a major employer in our State--frankly, one of the great companies in this country for the last 200 years and around the world--does great work, exciting work not only in figuring out how to use corn, get more yield off an acre of land--as much as 300 bushels off an acre of land. Thirty years ago, a farmer was doing good if an acre was getting 50 bushels. Now DuPont has these experimental farms where they are getting 300 bushels off an acre of land, so we can feed ourselves and fuel ourselves. Not only that, we can take the corn--the cornstalks, the leaves, the corncobs--and turn that into cellulosic ethanol. We can also take the byproduct of some of the vegetables and some of the plants we are raising to create carpeting, as attractive as the carpeting in this Chamber, and clothing. One of the great growth businesses for DuPont, at least, is using plant life to create carpets and not to have to depend on petroleum to do that. It is very exciting. It reduces our dependence on oil, particularly on foreign oil.
It also creates new jobs in communities across our country, including my State and I suspect including Minnesota, where our Presiding Officer is from.
Another key investment this bill continues, although it is at a somewhat reduced Federal level from what we saw in the 2008 farm bill, is the agricultural bill's investment in conservation. Conservation and the preservation of agricultural lands are the key to the future of agriculture in every State but are especially important in a little State such as Delaware. These investments are also particularly critical to regions such as the Chesapeake Bay to our west, which Delawareans and Marylanders and Virginians especially are working hard to restore and to protect.
I might mention, if I could, in terms of conservation, we had a big problem in our State. People like to come to Delaware. We have great beaches, Cape Henlopen and Lewes and Rehobeth and Dewey and Bethany on down to Fenwick Island. People come to our State a lot of times because they want to retire there, maybe have a beach house in the summer and then decide they want to live in Delaware. We have had a lot of demand for housing in the southern part of our State crowding out some of our agricultural land. We are concerned about what does that do for open spaces and preserving our agriculture land.
When I was privileged to be Governor, initially proposed by Mike Castle, our previous Governor, we wrote a program to preserve our agricultural land. We have invested a fair amount of tax dollars in Delaware, with broad support from people who live in the suburbs and the cities as well as farmers, to preserve the farmland and we have preserved a lot of it. I am very proud of that. One of the best ways to preserve farmland is to make sure farmers can make money off the land they are farming. If they are able to make a good income in good years and bad years, if they have ways to get extra sources of income from the farms--which include raising corn that can be turned to a cellulosic biofuel and help fuel our country or provide the materials that are needed to create carpeting or clothing or to be a place we can build maybe windmill farms or solar energy and deploy those and harvest that as well as crops, those are ways to supplement the income of our farmers and promote conservation.
Beyond that, the bill we are looking at does focus some good attention, appropriate attention, on encouraging and nurturing conservation. I mentioned earlier, we have about 1 million people in Delaware and about 300 chickens for every person. About 60 percent of the cost, I am told, of raising a chicken is the cost of feed. In recent years, the cost of feed, including the cost of corn, has risen dramatically. Our new pages who are here for a 3-week period are anxious to know how much it costs to feed a chicken. We can actually take a chicken from the time it comes out of an egg and in about 7 weeks or so it is ready to actually go to market. But what do we feed them in the meantime? We feed them a lot of corn and we feed them a lot of soybeans. We have seen the cost of corn go from maybe a couple bucks for a bushel of corn to rise to as much as maybe $7 or $8 a bushel of corn. We have seen soybeans go from about $5 a bushel to as high as $12 or $13 a bushel. It is hard
to pay that kind of money for corn and soybeans to feed chickens, to raise chickens, and make money. We have lost a major poultry integrator in our State and other places because of the difficulty in feeding the chickens with the high cost of corn and soybeans. About 60 percent of the cost of raising a chicken is corn and about another 20 percent is soybeans. It is a tough business when those prices have doubled and actually tripled. They are coming back down. We are working hard to bring them down, but they increased a strain on the poultry business and made a very profitable business in some places unprofitable.
That is why Senator John Boozman of Arkansas and I have introduced an amendment to the bill we hope to be adopted, folded into the bill, that makes a priority at USDA research to improve the efficiency, the digestibility and nutritional value of food for poultry and livestock, including corn, soybean meal, grains, and grain byproducts. By improving the feed that is used to raise our chickens, and I might add other livestock, hogs and cattle and so forth, we can provide the poultry and the livestock industries with a great variety of feed choices to use in their operations which will ultimately help provide relief to those producers that rely heavily on their commodities in their operations and still provide healthy food.
Let me go back to where I started; that is, to ask then how do we get better results with less money in everything we do or maybe for the same amount of money? I think that every day I am here. I know many of my colleagues do as well. The bill before us, the agriculture bill, seeks to answer that question in a number of ways. They do help us get better results for less money, not just a better result for the taxpayer but I think maybe a better health result, reducing somewhat this upward trend toward obesity, making sure people who are not eating the kind of healthy foods they need, particularly fruits and vegetables, have access to fruits and vegetables. On both those counts, this legislation helps not just to serve farmers who are literally the lifeblood of this country but the rest of us too, including taxpayers.
I will wrap up where I started. I asked the sort of rhetorical question of how is the economy doing, and we are still struggling. To some extent, it is better than it was, but we know folks are having, in some parts of the country, including some parts of my State, a tough time finding a job, keeping a job, being able to keep their house and make sure their kids can go to college, make sure they have health care. We know there are challenges. We should be ever mindful of that.
I would say, though, in terms of moving out of the recession, the underlying fundamentals of the economy are not all bad, and we should keep that in mind. One of the surest ways to talk ourselves into another recession--having just come out of the Great Depression, we can now talk ourselves into depression. We can talk ourselves into a recession. We don't need to do that. We have seen consistent job growth in the private sector side for over 24 months, manufacturing jobs for over 30 months. We need to keep a balanced view, knowing there is still work to be done.
In baseball parlance, I was talking to a guy up here who follows the Minnesota Twins, the Presiding Officer pretty much. My guess is he is joined by the former Governor and now Senator from North Dakota. My guess is he might be a Twins fan too. I am not sure.
I got a thumbs up.
We pull for the Phillies. I pull for the Tigers as well, for some reason I will not bore everyone with today.
But we need to hit a home run to get the economy moving, and in my view the home run is bipartisan, comprehensive, balanced deficit reduction, not unlike the Bowles-Simpson Commission recommendation. When the elections are over, we can move and pass something along those lines before the end of the year. For me, that is a home run with men on base.
In the meantime, there are a bunch of things we do to get singles, doubles, and get the economy moving to create that nurturing environment; do what needs to be done and finish with our transportation legislation to keep 2 or 3 million people working. The House has been less willing to help us find a good compromise, and they need to--as well as postal legislation, which supports an industry of 7 or 8 million people.
We passed bipartisan legislation 2 months ago, and we are still waiting for the House to move the bill 8 months after they reported the bill out of the committee. We need to get on with that. If they do that and we get a good compromise on a bipartisan bill on transportation, we preserve 2 or 3 million jobs, free a lot of money for transportation all over the country. That would be great. On the postal side, help the Postal Service rein in its deficits, move toward self-sufficiency and make sure there are 7 or 8 million jobs remaining there and the industry is strengthened.
The last thing we need to do is find a way, focus every day on how to get better results on everything we do. How do we do that? Not just defense spending, defense projects, not just education, not just transportation, not just environment, not just agriculture but all of the above.
This bill doesn't help us rein in the growth in some other areas, but it sure does in respect to agriculture. It saves us about $24 billion above what we would otherwise spend over the next 10 years. I think that moves us in the right direction, in terms of healthy Americans, to be a trimmer, less-obese population, and a healthier population by virtue of eating our spinach and our broccoli and a lot of other vegetables and fruits that are making us healthier and maybe a little bit leaner than we would otherwise be.
I think that pretty well wraps up what I wanted to say today. I think maybe I should yield the floor to my friend from North Dakota, a recovering Governor and a good man. I am happy to yield the floor for him at this time.