Do I understand that Senator Biden and I have 10 minutes to divide among ourselves? What I would like to do is have maybe 5 minutes to talk on your amendment, and then Senator Biden and I wish to welcome some special guests. I thank the…
Do I understand that Senator Biden and I have 10 minutes to divide among ourselves?
What I would like to do is have maybe 5 minutes to talk on your amendment, and then Senator Biden and I wish to welcome some special guests.
I thank the Senator.
I will say a word, if I can, in support of Senator Murray's amendment to fully fund No Child Left Behind.
In 1995, the Congress passed, with the urging of many Governors, unfunded mandate legislation that said Congress and the Federal Government should not tell the States what to do and then not provide the money to do it. The Federal Government should not be taking money away from States without providing an offsetting amount of revenue for the money taken off the table for the States.
If we fail to adequately fund No Child Left Behind, yet at the same time mandate higher performance requirements in classrooms, whether it is in Delaware, Washington, New Hampshire, South Carolina, or in New Mexico, we are putting in place an unfunded mandate. I have been visiting a number of schools in my State over the last couple of weeks. What I have asked is, what have you done with the extra money we have given you as a result of No Child Left Behind? I got some interesting answers.
A lot of the money is being invested especially in title I increases, in early childhood. We are seeing some remarkable results. These children who are doomed to fail, instead of going on to failure, have age 3 and age 4 quality prekindergarten programs, and age 5 full-day kindergarten programs, and extra learning time that follows beyond that, and there are remarkable results.
By the time these kids are in the third grade, they are doing basically as well as the kids coming from places where we expect success. We are cutting in half our revenues to special education. I urge my colleagues to support the amendment proposed by our colleague from Washington to fully fund No Child Left Behind.
I will add a few comments to that, if I may. Every minute, the Bush administration spends $991,000 more than it takes in--every minute. During the 2 minutes I have been talking, we have spent about $2 million more than we are taking in.
In 2001, the first year I was here, and when George Bush was President, he said:
We can proceed with tax relief without fear of budget
deficits.
He was wrong.
He said:
Our budget will run a deficit that will be small and short-
term.
He was wrong.
In 2003, he said:
Our current deficit is not large by historical standards
and is manageable.
He was wrong.
Now he says:
The deficit will be cut in half over the next 5 years.
He is wrong again.
My friends, our budget deficit this year is going to be about a half trillion dollars. When you actually take away the surplus funds from Social Security that mask the Federal budget deficit, it is even larger than that. While there is a little downtrend starting this year for a couple years in the budget deficits, the real budget deficit, the operating deficit, is about $450 billion. Then it climbs steadily up. The boomers, my generation, will begin to retire, and we are looking at a budget deficit for 2014 of about $785 billion. That is three-quarters of a trillion dollars. Those are operating deficits, not debt.
I wish we had a chart of the debt. We do.
In 1962, I was a 15-year-old kid growing up in Danville, VA. It is hard to see the red ink down there on the chart because it wasn't very much. It was less than a trillion dollars; it was a couple hundred billion dollars. In 1982, we hit $1 trillion. In 2003, last year, we exploded up to about $6.8 trillion. You can see this leveling off from about 1998, 1999, and 2000. That is what happened in the last administration and in the very beginning of this administration.
What happens now, starting in 2003, is the debt--real debt, how much we are borrowing as a country from the Bank of China and banks in Japan, and from people all over the world--goes from where it is today, about $7 trillion, to in 2014 some $15 trillion.
There are going to be about 29 or so babies born in Delaware today. They are going to be facing something I call a birth tax. Some of my colleagues on the other side talk about a death tax, which is their term for the estate tax. I am talking about a birth tax. For every baby born in my State today, they will face a debt of $35,000 apiece when they come into the world. So do their brothers and sisters and parents and grandparents. By 2009, it is going to be over $35,000. That is the kind of welcome to the world we are giving children in my State, and other States as well.
The fastest growing entitlement program in the Federal budget is not the Medicare plan or Social Security or Medicaid. The fastest growing entitlement program in our Federal budget is servicing our national debt, as you can see from the last chart I shared with you.
In 2009, our Federal Government will spend some $1.5 billion per day in interest on our national debt. In 2009, the Federal Government will spend more money servicing the debt than we spend on the entire defense for our country.
I will say that again. In 2009, we are going to spend, if we stay on this track, more money servicing the Federal Government's debt than on defending our Nation.
Let's get real. I don't have the time to go through this entire chart, but this is instructive. The debt we are going to have this year--about $521 billion--is actually more than all of our nondefense discretionary spending. We could get rid of the EPA, the housing programs, the education programs, and homeland security on the appropriations side--everything but defense--and we would still have a deficit of about $55 billion or $56 billion.
There will be a vote later this week, beyond the vote on the Murray amendment. I think it will be offered by Senator Feingold of Wisconsin. It speaks to getting real. There was a time not too long ago when we were real. When somebody came to the floor and said, I want to raise spending by some magnitude, they had to come up with an offset. If they wanted to raise spending, they had to cut spending someplace else or raise revenue by that amount. Similarly, if I or anybody else wanted to come here and say, let's cut taxes by some amount of money, we had to come up with an offset. That is common sense in my State. That is just common sense. We used to do business that way here.
A couple of years ago, those pay-as-you-go rules lapsed. We need to reinstate them. We have the opportunity to do that this week. In an hour or so, we are going to vote on the Murray amendment to avoid an unfunded mandate and make good to those kids born in Delaware today and around the country so they are not saddled with a huge debt to face for the rest of their lives, and to give them a chance to be successful in school and in life.
I thank my colleague for yielding. I thank Senator Feingold and others on our side and the other side of the aisle for their work.
This is an important amendment. He is right. I don't know whether it is the most important amendment offered on this resolution, but it may well be. I would like to take a couple of minutes and look back a few years to some of the things that have been said by folks in our country and actually outside of our country.
I would like for us to go back to 2001, the first year George Bush was President. What he said was:
We can proceed with tax relief without fear of budget
deficits.
We found out he was wrong.
A year or so later, he said:
Our budget will run a deficit that will be small and short
term.
I am sorry to say he was wrong again.
In 2003, he said:
Our current deficit is not large by historical standards
and is manageable.
That, too, is wrong.
This year, he is saying to us:
The deficit will be cut in half over the next 5 years.
Unfortunately, if we look more closely at what is going to happen over the next 5 years and beyond, the deficit may be trimmed a little bit, but it is going to begin to explode when my generation of baby boomers starts to retire in 5 or 6 years.
I want to share with my colleagues another quotation that occurred several years before these. It was not by an American but a fellow from Great Britain, Dennis Healy. In the late 1970s, he was Chancellor of the Exchequer. There was something he called the ``theory of holes.'' The theory of holes
goes something like this: When you find yourself in a hole, stop digging.
We are in a hole. We are in a huge hole. The hole of debt is almost $7 trillion, up from about $1 trillion in 1982. It is actually pretty modest compared to the hole we are going to be in in 2014. This red line represents money that we owe somebody. Those somebodies are going to want to be repaid. Do some of the people lending money to Uncle Sam live in this country? A lot of them don't. A lot of them live around the world. As they see this red ink accumulate, and as they see a nation not only living beyond its means financially through our Federal deficits but a nation that buys a lot more from overseas than we certainly sell to other countries, my fear is that what may well happen is those other countries will lend us so much money, but in order to continue to loan us more money, they are going to want a little higher interest rate--maybe significantly higher--as our creditors. If we begin to pay higher interest, we know what kind of adverse effect that can have on the economy of this country.
Look at one other chart. This is about the year 1999, 2000, when the budget deficits turned into surpluses. Now we are back in the soup. This is what the deficit looks like. In 2004, it is about $600 billion. The reason this looks higher than some of us are used to is because this is the real operating deficit, when you take away the mask that is provided by Social Security. Social Security is going into the surplus, and it makes the operating deficit look smaller because we operate under a unified budget. After dropping down, it picks up to about three-quarters of a trillion dollars. That is 1 year. It will be over a quarter of a trillion dollars in 2014.
A week or so ago Alan Greenspan was before the Banking Committee. He was testifying. During the course of his testimony, and following his testimony, we had the opportunity to ask him questions. I asked him questions about the potential of interest rates rising and what that might do to the economy. He expressed that could happen and, in fact, it would be a chilling one for the American economy.
We also talked about the proposal before us today that Senator Feingold is offering, this pay-as-you-go notion; the idea that if I wanted to raise spending further above the baseline of spending already built into our budget, I would have to come up with an offset. The idea is that if I wanted to lower revenues, cut taxes in some area, I would come up with an offset to equal out that effect.
I asked Chairman Greenspan--there are different approaches to pay-go. One, I call it pay-go ``lite,'' where it would only affect the spending side. If I had a spending increase I wanted to make, I would have to come up with the offset. I said, How about the other side of a pay-as- you-go, on the revenue side? I was trying to get him on the record to say that the pay-as-you-go should be applied both on the spending side and the revenue side.
This is what he said: What worked in the past is what we ought to do now. That is what he said. What worked in the past is what you, the Congress, ought to do now. What worked in the past? It was a pay-as- you-go approach that applied to both spending and revenues. Frankly, it worked real well in the past. It is not the only thing that worked well, but it was helpful. We have the opportunity to put it back into place. We ought to do it.
My dad, when I was a kid growing up, would say to my sister and me when we would do some foolish stunt and not show any forethought: Just use some common sense. My guess is, if we were on the floor today and I asked Senator Feingold, or Senator Conrad, or the Presiding Officer, to go back to your childhood and think about things your parents used to say to you, you could all think of something they would say to you to try to drum into your heads. My dad would say more times than I would care to remember: Just use some common sense.
When we have an annual budget deficit that is approaching $600 billion, when we have a national debt that is now at about $7 trillion, I think a good test of common sense is, when any Senator wants to raise spending to make this situation worse, or any Senator wants to cut the revenue base to make this situation worse, we ought to say: How are you going to pay for it? If I don't have a good answer, we should not do what I want to do--either raising spending or cutting revenues. In my dad's words, that would be using common sense. We need some common sense. This amendment will provide that.