I thank my colleague from Arizona for his learned words and eloquent words, quoting, Madam Speaker, Shakespeare. I'll begin by quoting Yogi Berra, that great fount of wit, wisdom, and good old American common sense. More recently, Yogi…
I thank my colleague from Arizona for his learned words and eloquent words, quoting, Madam Speaker, Shakespeare. I'll begin by quoting Yogi Berra, that great fount of wit, wisdom, and good old American common sense. More recently, Yogi Berra said, When you come to a fork in the road, take it. We find ourselves as Americans right now certainly in a fork in the road--a fork in the road as a Nation. Either we must act boldly or some would say we face financial Armageddon. Unemployment is at 9.2 percent. Investment is down. Hiring is sluggish. The American people are anxious about where they're going to find jobs, where they're going to send their kids to school. People in southern Indiana ask me all the time what they're going to do as we fall further into the financial abyss. Our national debt is over $14 trillion--and growing.
We know we're not in the mess because the American people are taxed too little. We're in this mess because Washington spends too darned much. And we want to address that. So, as the President stands at this fork in the road, having no plan and refusing to lead, we know that we here in Congress must lead. We must act. We must, as we say in the United States Marine Corps, we must have a bias for action. Well, that's why we put forth this Cut, Cap, and Balance Act of 2011. It's a responsible action.
I'll briefly outline its finer points. First, it cuts total spending by $111 billion in fiscal year 2012. No changes to Social Security, no changes to Medicare, no changes to veterans' benefits. And considering the size and scope of the massive debt crisis we face in this country, it proposes a very modest cut of $111 billion next year--certainly a manageable down payment as we work to address this leviathan debt we face. It caps total Federal spending in the future as a portion of our economy--that is the cap component of this cut, cap, and balance plan-- and brings down by the end of the decade our Federal spending to less than 20 percent as a proportion of our economy. That's the post-World War II average. Very sensible, very responsible. And then, finally, it balances our budget. It does so through a balanced budget amendment that will come up for a vote later, subject to the normal super majority requirements in each House of Congress. This works in 49 of the 50 States across this great Nation. It will work here in Washington, too. If we have the courage to pass it.
The cut, cap, and balance plan will restore confidence. It will restore confidence in investors around this world, people who are right now eyeballing this body, wondering whether or not we're going to pass a bold plan to address our financial situation and therefore maintain our high AAA credit rating. It will restore confidence in those who create jobs--the entrepreneurs, the innovators, the investors across the fruited plains whom people rely on for their family incomes. It will show them that we understand Washington has a problem, and we are prepared to address it in a very specific way.
Finally, this will calm down, this will restore confidence among those we represent. Yeah, we have a deficit in Washington. And it's not just a financial deficit. It's a leadership deficit. We need to show the American people we understand our Federal Government must balance its books, just like American families and businesses are making hard decisions and balancing their own books during this difficult time.
The President stands at this fork in the road. No plan, no action, no leadership. And he characteristically refuses to choose a path. We have laid out a path. The path is one of leadership. The path is one of choosing. I believe that to lead is to choose. We must choose. I encourage the members of this body, my esteemed colleagues, to choose the Cut, Cap, and Balance Act of 2011.
I thank the gentleman from Arizona.
Just an observation here. I know our President said earlier today that we had--frankly, we don't need a constitutional amendment to do our jobs. He was referring, of course, to this debt limit debate and our insistence here in the House that we get some serious spending cuts in conjunction with that debt limit and come up with a plan to get our debt under control in the longer term.
My response to this idea that we don't need a constitutional amendment to do our jobs, first I look to the Constitution itself. Article V of the Constitution, the first phrase there is pretty clear. ``The Congress, whenever two-thirds of both Houses shall deem it necessary, shall propose Amendments to this Constitution.''
I would say it's our duty, when we deem it necessary, to go ahead and propound constitutional amendments to solve various problems here that we think need to be addressed within our Federal Government. First, we are duty-bound to put forward such a solution. Second, history bears out many examples where institutionally or culturally or historically the time has arisen for certain improvements in our way of government.
So we've put forth some fine amendments like, say, the 19th Amendment, which gave women the guaranteed right to vote. I think that's a fine thing. I think it was important that Congress put forth amendments to guarantee women's right to vote so that we would do our job. It was necessary. It was necessary to put forth that amendment, just as it's necessary to put forth a constitutional balanced budget amendment.
I guess the final thing I would say is it's necessary that we pass a constitutional balanced budget amendment as part of this Cut, Cap, and Balance Act of 2011 because it's the only viable plan we have on the table right now. What is the President's plan to get our budget back into balance? I ask that time and again. I have not seen any sort of acceptable answer.
So we need to bind the hands of our political class. I think this Cut, Cap, and Balance Act, which my colleagues have been speaking to over recent minutes, is a very responsible direction to go, and I ask for the consideration of my friends across the aisle as well.
I thank my colleague from Arizona.
He said a couple of things that I would like to pivot off of. They certainly struck a chord with me. First, the notion that markets deal with perception, as opposed to always reality. I thought it was a brilliant example of Fort Knox, should the gold be taken, the press release versus the actuality of that gold being taken.
It reminded me of a conversation I had just today on the airplane as I headed backed to Washington from my southern Indiana district. I was sitting next to someone who dealt in the financial markets, and I asked him a fairly pointed question. I said, you know, the media, in recent days, in recent weeks, has really sort of ratcheted up attention, even anxiety with respect to the debt limit debate and whether or not the debt ceiling is, in fact, going to be raised, what is going to be attached to a debt ceiling vote.
And I certainly understand this. I take this vote very seriously and have factored into my calculus of voting for and against various measures, the interest rate response we might see.
But the funny thing is there hasn't really been much of an interest rate response. For all the hemming and hawing about what might happen should we not raise the debt ceiling by August 2, there hasn't been an interest rate response. And I find that amazing.
And so I asked my friend why he thought that was, and he put forth one idea. He said certainly, Todd, that these are complicated matters, and there are all different things that factor into them. But in his professional opinion, one reason was that we finally have a group of people in Washington that are taking very seriously this notion we ought not spend more money than we bring in. That's pretty powerful.
I'm proud, as a new Representative, to be part of this group of people supporting the cut, cap, and balance measure that would bring our spending under control. So we ought to be proud. That's an early victory. The markets, at least, believe we are serious about getting this spending under control. I hope we can play this out and prove that we are serious.
The other thing that my colleague from Arizona said that struck a chord with me was this notion that statesmen look not just to the next election, they look to the next generation.
There was a group of people back 150 years ago that entered politics. It was around the 1850s, and they entered politics certainly looking to the next generation. It was their belief that every man, woman, and child should be entitled to the fruits of their labor. They weren't partisans. In fact, they were Know-Nothings. They were independents, some Democrats. They came together with this notion, though, that everyone should be entitled to the fruits of their labor.
Well, when we continue to spend money we don't have, oftentimes on things we don't need, and kick the debt forward another year, another 5 years, another 10 years, another generation or two down the road, ladies and gentlemen, we are committing the fruits of the next generation's labor to pay off our current debt.
Madam Speaker, I think this is wrong. I think this cut, cap, and balance plan is a viable plan, a specific plan to stop this practice so that everyone, my four children, everyone else's grandchildren and great grandchildren, will not be paying off our future debts.
So again, I urge consideration and support of this cut, cap, and balance plan. And for those who are unable to support it, I would ask them to put forth a specific plan of their own, one that will get our spending under control and put this Nation back on the right fiscal course.