[Congressional Record Volume 141, Number 137 (Wednesday, September 6, 1995)]
[House]
[Page H8584]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                      BALANCING THE FEDERAL BUDGET

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Michigan [Mr. Smith] is recognized for 5 minutes.
  Mr. SMITH of Michigan. Mr. Speaker, I rise to address the House 
regarding the budget, the debt ceiling that we are now approaching, and 
why that is important to the American people in an expanded economy for 
the United States and an expanded job market.
  First let us look at the overspending of the Federal Government. Back 
in 1947 the Federal budget represented 12 percent of this country's 
gross domestic product. Today it represents almost 22 percent of the 
gross domestic product. The Federal Government is expanding at an 
alarming rate.
  The Government has not relied on the political negatives of 
increasing taxes to afford this increased spending, but rather has 
decided that it is more politically wise to continue borrowing. Our 
Federal debt today is $4.8 trillion. Our Federal debt after two world 
wars was only $340 billion. We are increasing spending at an alarming 
rate and you know most people in America say we do not care how 
Government keeps its books; what we want is better jobs and a better 
economy.
  Here is why it is important. Here is why how we keep our books 
affects those jobs and affects the economy of this country. Government 
this year is borrowing 42 percent of all of the money lent out in the 
United States. Think what that extra demand does for the pressure to 
increase interest rates.
  Alan Greenspan, the Chairman of the Federal Reserve, suggests that if 
we are able to balance our budget, we will see interest rates drop 
between 1\1/2\ and 2 percentage points. He says if that happens, the 
stimulation to the economy and the jobs in this country will be greater 
than we have ever seen before in our history. He says the flip side is 
that if we do not do it, we will give our children a lower standard of 
living and less expectations to have a good life than we have had. That 
will be the first time in history.
  How do we achieve a balanced budget with a group of politicians that 
sit in this Chamber and the one on the other side of the Capitol that 
are used to expanding programs, that are used to going back home with 
pork barrel projects, cutting the ribbons and
 getting their pictures in the paper and being on television, bringing 
more good programs to the people back home, and they have discovered 
that it enhances their chances of being reelected. The challenge is 
great today for these Representatives to say if we want a good future 
for our kids and not leave the kids the mortgage of our overindulgence 
and overspending, we are going to have to cut back on some of those 
programs.

  Mr. Speaker, I ask everybody in the United States to look at this 
predicament, to encourage their Members in Congress that it is 
important that we all tighten our belts. A group of us, 156 of us, have 
signed a letter to the President saying that we are not going to vote 
to increase the debt ceiling unless we are on an absolute glide path to 
a balanced budget. Now, that means passing legislation that limits 
spending, that changes some of the entitlement programs, that has 
appropriation bills that get us on that glide path to a balanced 
budget. It is important.
  We met with Secretary Rubin. We have now introduced legislation to 
give the President authority and flexibility to prioritize in the event 
that debt ceiling is reached. It is important, Mr. Speaker. I hope we 
are able to stick together to hang tough, to do what is good for 
America, to disregard the pollsters, to disregard the special interest 
lobbyists that are pushing for more and more spending, and do what is 
necessary to give this country and our children and our grandchildren a 
good future.


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