Madam Speaker, today we find ourselves debating a bill that could result in the United States of America defaulting on our debts. It seems that the Republican majority of the 113th Congress has decided to continue the practice of governing…
Madam Speaker, today we find ourselves debating a bill that could result in the United States of America defaulting on our debts. It seems that the Republican majority of the 113th Congress has decided to continue the practice of governing from one manufactured crisis to another.
H.R. 807, the Pay China First Act, is a part of this majority's campaign of playing politics with our national economy at a time when the number one priority of this Congress should be putting Americans back to work.
Madam Speaker, we raise our nation's debt ceiling to pay the bills that our nation has already accrued. The Republican majority's insistence on using the debt ceiling in their crusade against a short- term deficit crisis that doesn't exist, has already harmed our nation's recovery.
This bill, which the Republican majority knows full well has no chance in the Senate, is nothing more than political posturing at its worst. It is nothing more, Madam Speaker, than an attempt by the Republican majority to wash their hands of the calamitous effects their economic policies are having on the American people who want nothing more than their Congress to stop playing politics and get about the work they were elected to do.
Instead, the Republican majority has continued their crusade of irresponsible spending and tax cuts which disproportionally affect those who need it the most.
The number one priority of the 113th Congress should be putting Americans back to work and supporting policies that promote growth.
Madam Speaker, the people of Brooklyn's 9th Congressional district, whom I have the honor of representing in this body, are tired of the 113th Congress undermining the recovery our nation needs. This bill is not worthy of the American people.
Madam Speaker, I submit an article in today's New York Times that, using analysis from leading public and private-sector economists, lays out the harm that the majority's focus on irresponsible spending cuts is having on our struggling economy.
[From the New York Times, May 8, 2013]
Economists See Deficit Emphasis as Impeding Recovery
(By Jackie Calmes and Jonathan Weisman)
Washington--The nation's unemployment rate would probably
be nearly a point lower, roughly 6.5 percent, and economic
growth almost two points higher this year if Washington had
not cut spending and raised taxes as it has since 2011,
according to private-sector and government economists.
After two years in which President Obama and Republicans in
Congress have fought to a draw over their clashing approaches
to job creation and budget deficits, the consensus about the
result is clear: Immediate deficit reduction is a drag on
full economic recovery.
Hardly a day goes by when either government analysts or the
macroeconomists and financial forecasters who advise
investors and businesses do not report on the latest signs of
economic growth--in housing, consumer spending, business
investment. And then they add that things would be better but
for the fiscal policy out of Washington. Tax increases and
especially spending cuts, these critics say, take money from
an economy that still needs some stimulus now, and is getting
it only through the expansionary monetary policy of the
Federal Reserve.
``Fiscal tightening is hurting,'' Ian Shepherdson, chief
economist of Pantheon Macroeconomic Advisors, wrote to
clients recently. The investment bank Jefferies wrote of
``ongoing fiscal mismanagement'' in its midyear report on
Tuesday, and noted that while the recovery and expansion
would be four years old next month, reduced government
spending ``has detracted from growth in five of past seven
quarters.''
That period roughly coincides with the time that Mr. Obama
and Congressional Republicans have shared governance since
Republicans took control of the House in 2011, promising an
immediate $100 billion in spending cuts. Republicans did not
get that much then, but the series of budget compromises with
the president since--while not so great as they wanted--will
soon reduce annual discretionary spending for domestic and
military programs to the lowest level in half a century.
As for revenues, Mr. Obama forced Republicans to acquiesce
in January to higher taxes from wealthy Americans. But worse,
in the macroeconomists' view, both parties agreed not to
extend a two-year-old cut in Americans' payroll taxes for
Social Security, reducing their spending money.
In all this time, the president has fought unsuccessfully
to combine deficit reduction, including spending cuts and tax
increases, with spending increases and targeted tax cuts for
job-creation initiatives in areas like infrastructure,
manufacturing, research and education. That is a formula
closer to what the economists propose. But Republicans have
insisted on spending cuts alone and smaller government as the
key to economic growth.
The results, Mr. Obama has taken to saying, despite his
complicity, are ``self-inflicted wounds.''
``The only way the problem does get fixed is if both
parties sit down and they say, `How are we going to make sure
that we're reducing our deficit sensibly?' '' he said last
week at a news conference. ``How are we making sure that
we're investing in things like rebuilding our airports and
our roads and our bridges, and investing in early childhood
education, basic research--all the things that are going to
help us grow?''
Mr. Obama added, ``I cannot force Republicans to embrace
those common-sense solutions.''
Speaker John A. Boehner stood by the Republicans' policies
during a session Tuesday with reporters. ``After four years
of mediocre job creation, it's obvious that we don't need
more tax hikes and more government spending,'' he said. ``We
need smarter policies to make America more competitive and
expand opportunities for everyone in our country.''
``We're the ones pushing this town to do the right thing
when it comes to the economy and jobs,'' Mr. Boehner added.
The Federal Open Market Committee, which sets policy for
the central bank, noted signs of improvement in the private
sector last week in a statement. ``But fiscal policy is
restraining economic growth,'' it added, echoing public
comments that Ben S. Bernanke, the Fed chairman, has made for
months. In April, the International Monetary Fund said the
United States would achieve further growth ``in the face of a
very strong, indeed overly strong, fiscal consolidation.''
Thursday will capture as plainly as any day lately the
differing approaches of Mr. Obama and Republicans toward the
economy and government's role.
Mr. Obama plans to travel to Austin, Tex., to visit
technology students, workers and entrepreneurs and promote
his ideas to support efforts like theirs--the kind of
initiatives that Republicans have blocked.
House Republicans expect to pass a measure that would allow
the Treasury to ``prioritize'' debt payments if Congress and
Mr. Obama cannot agree this year to increase the nation's
debt ceiling so the Treasury can keep borrowing money to pay
all creditors. Under the bill, as tax receipts came in, the
first priority would be paying creditors--like China,
Democratic opponents argue--and second would be Social
Security checks. But the measure would likely die in the
Democratic-controlled Senate.
The ``prioritization'' proposal first arose in 2011 from
among the most conservative House Republicans, those who were
driving hardest against the White House on raising the debt
ceiling and expressing unconcern about default, but it has
now become mainstream in the House ranks.
Economists and financial analysts generally dismiss the
idea as unworkable if not dangerous, and count on Democrats
to block it. Gregory Daco, a senior principal economist at
IHS Global Insight, said the Republicans' proposal was the
kind that caused his clients to ignore the fiscal policy out
of Washington, and rely instead on the Fed to buttress the
recovery.
``Whenever I talk to our customers or clients, they sort of
brush off everything that's related to fiscal policy,'' Mr.
Daco said. ``The view is, 'Oh, it doesn't matter.' That's
what I hear a lot.''
``What we try to convey is that it does matter,'' he said.
``It is important in terms of growth. It's also important in
terms of confidence.''
He noted that the economy was much stronger than Europe's
largely because the United States initially opted for
stimulus measures and allowed deficits to increase when the
recession and financial crisis hit five years ago. European
governments pursued austerity policies to cut their debts,
further stalling economic activity and in turn inflating
deficits.
The more recent austerity policies here are helping to
bring annual deficits down, as a new report of the
Congressional Budget Office shows, after four years of
trillion-dollar shortfalls. Yet many analysts would prefer
that the measures had been timed for when the economy is
strong and unemployment below 7 percent.
``While I agree that the U.S. must get its fiscal house in
order,'' Jerry Webman, chief
economist at OppenheimerFunds, wrote, ``I join the likes of
the I.M.F. in cautioning that too much austerity, too soon,
is likely counterproductive.''