[Congressional Record Volume 143, Number 27 (Wednesday, March 5, 1997)]
[House]
[Page H730]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          INFLATION DOES EXIST

  (Mr. DeFAZIO asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. DeFAZIO. Mr. Speaker, the fix is in. The American people are not 
yet aware of it. If we look on the front page of the Washington Post we 
see it: ``Greenspan Backs Panel to Rule on Inflation Levels.''
  The dirty little back room deal that is about to be cut here between 
the White House and the Republican leadership is to pay for tax cuts 
for the wealthy, capital gains, business as usual at the Pentagon, and 
still balance the budget.
  How do we do that? We do that through the magic of the CPI. We define 
away inflation and tell those seniors whose cost of health care is 
doubling at twice the rate of inflation every year, oh, it is better. 
It might cost more, you might not be able to afford it, but we are 
going to reduce your cost of living because it is better health care; 
that does not count as inflation.
  We are going to say to the middle class whose taxes are going to go 
up if they lose indexation, oh well, yes, your taxes went up, but you 
know, that is because inflation does not really exist.
  If inflation does not really exist, why are Alan Greenspan and the 
other members of the Federal Reserve Board paying themselves and their 
staff healthy 5 and 6 percent salary increases every year? That must 
not have anything to do with inflation.
  It is time to play straight with the American people. Let us not 
politicize the CPI and stick it to seniors, the middle class, and 
children once again.

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