I thank the ranking member. Mr. Chairman, we all know that we are in unprecedented economic times that call for unprecedented action. The bill we have under consideration is certainly unprecedented because of the size itself. $825 billion.…
I thank the ranking member.
Mr. Chairman, we all know that we are in unprecedented economic times that call for unprecedented action. The bill we have under consideration is certainly unprecedented because of the size itself. $825 billion. That is just for now, without the add-ons we expect over in the Senate.
This measure will have an unprecedented impact on the deficit by increasing it by hundreds of billions of dollars over the next few years. In turn, this dramatic rise will trigger large-scale borrowing from the future incomes of our children and our grandchildren.
These add-on deficits will cause the Nation's debt to soar to a level at which we will owe interest payments of more than $750 billion per year by the year 2019, according to the Congressional Budget Office. Those numbers assume that the stimulus package actually works--and we don't know for certain that it will work.
I raise these points because with spending numbers this high, we need to get it right. While there are certainly some good qualities to this bill, there are also numerous elements thus far, including spendout rates noted by CBO, that raise questions about the stimulus impact of the bill. Currently, there are estimates on the job creation potential of the bill that show only about 10 percent of the funds creating jobs. If those estimates are accurate, the question arises as to where the other funds are going.
Some analyses show that the lion's share of the monies in this bill are destined for expansion of an assortment of government programs that have nothing to do with economic stimulus. Moreover, these programs are ones that are funded each year through the normal appropriations process, and will be funded again in 2010.
That tells me that we are using this bill to expand the funding scope of certain programs in order to make room for additional spending in the 2010 cycle. We are calling this extra spending ``emergency'' spending so we will not have to find a way to pay for it. Whether we call it emergency, or something else, the deficit effect is still the same, and our children will pay for it.
Many of these programs already have large, unexpended balances. For example, there's $5 billion for public housing. Yet, we have close to $7 billion in unexpended public housing balances.
Many of the proponents of this bill talk of the need to rebuild the Nation's highway and bridge infrastructure, and speak of the job creation potential of these activities. Yet, the highway portion of this bill contains less than 4 percent of the total funding.
I am very supportive of legitimate stimulus that results in net economic activity and job creation. For that reason, I offered an amendment in the full committee designed to ensure that all stimulus funds would produce net economic activity and not supplant existing funds. I also cosponsored an amendment with Mr. Frelinghuysen that would have moved some $60 billion to transportation, flood control, and environmental restoration projects.
Ladies and gentlemen, our children and grandchildren are going to pay for this debt.