[Congressional Record Volume 149, Number 64 (Thursday, May 1, 2003)]
[Senate]
[Pages S5640-S5641]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              THE ECONOMY

  Mr. NELSON of Florida. Mr. President, I rise to speak about the 
depleted condition of our national economy and what we ought to do.
  It is timely to point out that next week this Chamber, the U.S. 
Senate, will consider legislation raising the debt limit; that is, the 
limit set by law under which the Federal Government can borrow money 
that is a debt obligation of the United States. That debt limit is 
approximately $6.3 trillion. Next week, we will consider the House bill 
which has been sent to us to raise that by the largest amount ever in 
the history of the Union, almost $1 trillion. Specifically, $984 
billion will be the vote that we will cast next week to raise the debt 
limit.
  The Federal Government has to pay its obligations. So by law we have 
to raise the debt limit so that the Federal Government can pay its 
obligations. But it is illustrative of the fact that the national debt 
is growing larger and larger, and we are adopting fiscal policies that 
add to that national debt each year by increasing the deficit financing 
that we engage in by the budgets we adopt and then all of the 
legislation with which we implement those budgets--the tax cuts, the 
spending bills, financing the war, all of those necessary expenditures. 
But a fiscal policy has been advocated by the White House, one of 
dropping off over the next 10 years tax revenues by some $720 billion. 
And what is likely to pass the Senate is the commitments that were made 
several weeks ago that that level will be in the range of $350 billion 
over 10 years instead of the level passed by or to be passed by the 
House of Representatives in the range of about $550 billion over 10 
years.
  Is any elected official not for tax cuts? Of course, we are. But that 
is not the decision with which we are confronted. What we are 
confronted with is, what do we do to better stabilize a sick economy 
and to get our economy moving again? Almost unanimously, the 
economists--I say almost unanimously because it is probably a ratio of 
9 to 1 among the economists, including statements issued yesterday by 
the Chairman of the Federal Reserve, Alan Greenspan--are basically 
saying: Watch out. If you deficit finance, long-term interest rates are 
going to go up. It is going to depress the economy coming out of this 
near recession. It is going to be difficult for us to get the economy 
moving again.
  That is particularly true of the financial condition in which we find 
ourselves now. In the first 6 months of this fiscal year, the 
Government has had to go out and deficit spend to the tune of $250 
billion. Annualized, that means we will deficit finance, if that trend 
holds up, a half a trillion dollars.
  What does deficit financing mean? That means we are going to adopt 
budgetary policies of spending and tax revenues by which we are going 
to spend a half a trillion dollars, $500 billion, more than we have 
coming in in tax revenue. And you wonder why the stock market is 
languishing so much. The stock market is a reflection of the American 
people's confidence in the future of the economy and economic activity. 
So is it any wonder the stock market just keeps kind of languishing 
along? Do people have the confidence we are going to come out of these 
economic doldrums and get the economy moving again? I think you see how 
they are voting with their pocketbooks on the stock market. The people 
do not have that confidence. Why should they if, in this year, we are 
going to spend a half trillion dollars more than we have coming in in 
tax revenue?

  This leads me, then, to next week. Next week, in addition to taking 
up the debt ceiling bill of raising the debt almost a trillion dollars 
more so we can pay our bills, we are also going to take up the tax 
bill. The tax bill, as presented to this body, is at least going to be 
$350 billion. There are many in this body who would like that tax bill 
to be even more over a 10-year period.
  To me, it is not wise fiscal policy if that causes our deficit 
financing to go up continually, just like we are seeing in this present 
fiscal year. If that debt keeps getting added to the national debt, 
then it won't be too long--another couple years--and we will be right 
back here asking to raise the debt limit from about $7.3 trillion--
another trillion dollars--up to about $8.5 trillion. That is not sound 
fiscal policy.
  That is not going to bring us back on the road to economic recovery. 
What we can do is balance interests. We can have some tax cuts that 
will get the economy moving again, that will provide economic growth, 
that will provide jobs so we get more dollars into the economy and 
circulating to offset the sickly economy, offset the lack of economic 
activity, some of which has been brought on by September 11 but some of 
which has also been brought on by an economic policy that is embracing 
deficit financing.
  I will never forget over two decades ago when I was in the House of 
Representatives. One of the most prolific writers and great speakers 
who had articulated balanced budgets suddenly changed his tune and 
started speaking the message that we will not worship at the shrine of 
balanced budgets anymore. Well, in the early 1980s, that kind of 
worship didn't work. The fiscal policies adopted in the early 1980s 
were so out of whack with the deficits annually soaring up to as high 
as $250 billion in 1 year, finally those policies had to be reversed--
not once but three times.
  Now we have a situation that is double the annual deficits ever 
experienced

[[Page S5641]]

in the 1980s. We best get about the process of getting our economic and 
fiscal house in order if we want America to have the economic 
prosperity our citizens should enjoy.
  Mr. President, I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Sununu). The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. McCONNELL. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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