[Congressional Record Volume 148, Number 122 (Tuesday, September 24, 2002)]
[House]
[Pages H6531-H6532]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        CAN WE AFFORD THIS WAR?

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Texas (Mr. Paul) is recognized for 5 minutes.
  Mr. PAUL. Mr. Speaker, a casual analysis of the world economy shows 
it rapidly deteriorating into recession, with a possible depression on 
the horizon. Unemployment is sharply rising with price inflation 
rampant, despite official government inflationary reports. The world's 
stock markets continue to collapse, even after trillions of dollars in 
losses have been recorded in the past 2 years. These losses already 
have set historic records.
  With government revenues shrinking at all levels, we find deficits 
exploding. Our national debt is currently rising at a $450 billion per 
year. Confidence in corporate America has shrunk to levels usually 
reserved for governments alone.
  Government spending in all areas is skyrocketing, much of it out of 
the control of the politicians, who show little concern. Yet we are 
expected to believe our government leaders who say that we are 
experiencing a recovery and that a return to grand prosperity is just 
around the corner. The absence of capital formation, savings and 
corporate profits are totally ignored.
  Evidence abounds that our $350 billion DOD budget and the $40 billion 
spent on intelligence gathering and our immigration policies have 
failed miserably in protecting our homeland. In spite of the rhetoric 
and new legislation attacking our civil liberties, we are as vulnerable 
to outside attack as before.
  Our military is drastically smaller than a decade ago, and we are 
spread around the world and involved in world conflicts more than we 
have ever been before.
  We have run a huge current account deficit for 15 years and massively 
expanded our money supply. No one should be surprised that the dollar 
is weakening and the commodity, natural resources and precious metal 
prices are rising.
  Oil prices are over $31 a barrel, and predictions are that they can 
easily go up another $15 to $20 if international tensions grow.

[[Page H6532]]

  But the only talk here in the Nation's Capital is about when, not if, 
we must initiate a war that even the administration admits could cost 
$200 billion. Some are not even embarrassed to gloat about the 
political benefits for those who preach war over those who prefer 
negotiations, diplomacy and containment. The fact that the Arab nations 
are overwhelmingly opposed to an attack on Iraq and are joined by the 
European Community is of no concern to those who demand war regardless 
of any circumstance.
  Eighty percent of the American people now report that they believe 
that a war with Iraq will increase the chances of our suffering from a 
new terrorist attack. If this is true, we become less secure with an 
attack on Iraq, since little has been done to correct the deficiencies 
in the intelligence gathering agencies and our immigration policies.
  No credible evidence has been produced that Iraq has or is close to 
having nuclear weapons. No evidence exists to show that Iraq harbors al 
Qaeda terrorists. Quite to the contrary, experts on this region 
recognize Hussein as an enemy of the al Qaeda and a foe to Islamic 
fundamentalism. Many other nations pose much greater threats to world 
peace. Yet no one is clamoring for war against them. Saddam Hussein is 
now weaker than ever.
  Reports are now appearing that we are negotiating with allies to 
share in the oil bounty once Iraq is occupied in order to get support 
for our invasion from various countries around the world.
  Our national debt is over $6 trillion and is increasing by nearly 
half a trillion dollars a year. Since Social Security funds are all 
placed in the general revenues and spent and all funds are fungible, 
honest accounting, of which there has been a shortage lately, dictates 
that a $200 billion war must jeopardize Social Security funding. This 
is something the American people deserve to know.
  Since there are limits to borrowing and taxing, but no limits to the 
Fed printing money to cover our deficit, we can be assured this will 
occur. This guarantees that Social Security checks will never stop 
coming, but it also guarantees that the dollars that all retired people 
receive will buy less. We have already seen this happening in providing 
medical services. A cheap dollar; that is, an inflated dollar, is a 
sinister and deceitful way of cutting benefits.
  Rest assured, a $200 billion hit on the economy will have economic 
consequences, and the elderly retirees on fixed incomes, and especially 
Social Security beneficiaries, will suffer the greatest burden of 
policy, reflecting a belief that our country is so rich that it can 
afford both guns and butter. Remember, we have tried that before.
  The tragedy is that once the flaw in policy is discovered, it is too 
late to prevent the pain and suffering, and only finger pointing 
occurs. Now is the only time we can give serious attention to the true 
cost of assuming the burden of an endless task of being the world's 
policeman and starting wars that have nothing to do with defense or 
national security.
  A nation suffering from recession can ill afford a foreign policy 
that encourages unnecessary military action that will run up huge 
deficits. Congress ought to pause a moment, and carefully contemplate 
the consequences of the decisions we are about to make in the coming 
days.

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