[Congressional Record Volume 143, Number 133 (Tuesday, September 30, 1997)]
[Senate]
[Pages S10216-S10217]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              THE DEFICIT

  Mr. HOLLINGS. In his book ``Breaking the News,'' Jim Fallows writes: 
``If the public is confused, alienated, pessimistic or hostile to 
government, that is only partly the public's fault. . . .'' And he goes 
on to say, ``Journalism should lead the public by pointing out 
realities.''
  So I briefly point out a reality, Mr. President, to the Congress here 
this

[[Page S10217]]

afternoon. In ``The Economic and Budget Outlook'' of the Congressional 
Budget Office--the authority with respect to budgetary figures such as 
the balanced budget, deficits and surpluses--we find on page 34, Mr. 
President, the reality that while, yes, a unified deficit is listed as 
$34 billion, the actual deficit for the year 1997 that ends at midnight 
tonight is $177 billion. That is the deficit. The media should report 
this, the reality, and not the fraudulent unified deficit. We are 
spending $177 billion more than we are taking in.
  The unified deficit is $34 billion because they count the surpluses 
from the airports, the highway trust funds, Social Security, and the 
military and civil service pension funds--billions of dollars moved 
over. But that does not obscure the fact, nor it should not obscure the 
fact, that as of this fiscal year, when we are all talking about 
wonderful reductions in deficits, we are running a real deficit of $177 
billion.
  Now, Mr. President, 5 years out when we all say, ``Oh, we have a 
balanced budget for the first time since Lyndon Johnson,'' and everyone 
is running around shouting ``balance!'' there will be no balance, 
according to the Congressional Budget Office. In the year 2002, the 
deficit, rather than being in balance, will be $161 billion. And that 
assumes optimistically that 95 percent of the domestic cuts occur in 
the last 2 years.
  I can assure the distinguished Senator from North Carolina that the 
deficit will be bigger 5 years out than it is today, at the end of this 
fiscal year. Looking at the figures across the board for the next 5 
years, I see that the CBO forecasts next year's deficit to be $210 
billion; the year following that, 1999, the deficit will be $226 
billion. Go across the board and you will find out the so-called 
balanced budget actually increases the national debt by $1 trillion.
  Now why is that dangerous? That is dangerous because you cannot avoid 
the interest costs on the national debt. The national debt is now in 
excess of $5.3 trillion, and going up to over $7 trillion in the next 
10 years.
  Mr. President, the Congressional Budget Office estimates that even 
with low-interest rates we will spend $358 billion in the next year 
just servicing the national debt. This amounts to almost $1 billion a 
day. This is $1 billion a day we cannot spend on new roads or schools. 
The first thing the Government does every day is borrow another $1 
billion to pay interest on the national debt. Now, if you managed your 
family finances or your business this way, you would not last long; but 
we are doing it.

  All this reminds me of Denny McLain. He was convicted earlier this 
year of using his company's pension fund to pay off his company's debt. 
You see, we passed the Pension Reform Act of 1994, and when Denny 
violated that act, he was sentenced to 8 years in prison. If you can 
find what prison he is in, tell Denny he made a mistake. He should have 
run for the Senate: instead of getting a prison sentence, he would have 
gotten the Good Government award. That is what we are doing around 
here--stealing from the American people's pension funds. And we are 
patting each other on the back. This is a sweetheart deal. Both parties 
are agreeing to lie to the American people so that we can proclaim the 
budget is balanced.
  The truth of the matter is, we have a deficit now, and we will still 
have one in 2002. This year's much-ballyhooed budget deal increases 
spending $52 billion and cuts revenues $95 billion. Now, how can you 
balance anything by increasing your spending and cutting your revenues? 
You can't. But that is what we are claiming. It is Rome all over again, 
and we are trying to make the people happy with bread and circuses. 
Only today, the Congress' circuses are spending increases and tax cuts 
and shouts of ``balance, balance, balance.''
  I yield the floor, Mr. President. I thank the distinguished Presiding 
Officer and my colleague from North Carolina.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. FAIRCLOTH. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded and that the time be equally divided.
  The PRESIDING OFFICER (Ms. Snowe). Without objection, it is so 
ordered.

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