[Congressional Record Volume 153, Number 143 (Tuesday, September 25, 2007)]
[House]
[Page H10889]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BUSH ECONOMIC RECORD
The SPEAKER pro tempore. Under a previous order of the House, the
gentlewoman from New York (Mrs. Maloney) is recognized for 5 minutes.
Mrs. MALONEY of New York. Mr. Speaker, the President says his
policies are working to make the economy strong and that all Americans
are benefiting. But evidence of a slowing economy is building, and
anxiety over the state of the economy remains high.
The credit crunch, the worsening housing slump, market volatility and
weak consumer confidence point to a gathering storm that could drag
down the economy, taking thousands of American jobs with it.
Risks in the housing market and weak business investment point to the
growing uncertainty of which way the economy is heading. We are facing
a tsunami of defaults and foreclosures in the subprime market which
could have broader implications for the overall economy.
RealtyTrac reported that foreclosures in August increased 36 percent
since July and 115 percent since this time last year. Expectations are
that the next 18 months will be even worse as many subprime loans reset
to higher rates.
The ability of American consumers to keep spending may be flagging
with the cooling housing market. Consumer spending has been propping up
the economy, but high energy prices and a worsening housing slump could
force consumers to cut back, putting the economy at even greater risk.
American families are understandably worried about the future because
the economy is weakening even before many have shared in the gains from
the economic growth we have seen so far.
Employee compensation has lagged far behind productivity in this
recovery. Some workers are beginning to see some gains in their
paychecks after inflation, but they still have a great deal of lost
ground to make up. Median family income has actually fallen by nearly
$1,000 since President Bush took office.
The divergence between the ``haves'' and the ``have nots'' in the
Bush economy stands in marked contrast to the second term of the
Clinton administration when real wage gains were strong up and down the
wage ladder, to the wealthy, to the poor, to the middle class.
And our economic foundation is simply not on solid ground. The
administration is responsible for the three largest budget deficits on
record, including a $413 billion deficit in 2004. The gross Federal
debt is now almost $9 trillion, or my colleagues listening tonight,
each of us owes $29,000 per person. Every citizen in America owes
$29,000 to the Federal debt.
Our current account deficit with the rest of the world, the broadest
measure of our trade deficit, rose to a record smashing $856 billion in
2006, the largest ever in the history of our country. The amount of
Federal debt owned by foreigners has more than doubled under President
Bush, with Japan and China alone holding nearly half of our $2.2
trillion debt. We have become a Nation of debtors vulnerable to the
economic and political decisions made half a world away.
Despite 4 years of economic expansion, job growth has been modest.
Wages are barely keeping pace with inflation. Employer-provided health
insurance coverage is declining, and private pensions are in jeopardy.
These are the economic barometers that matter most to American
families.
Democrats in Congress are taking action to restore a sense of
economic security to the middle class and ensure long-term economic
growth for our Nation. We started by presenting a realistic budget plan
that adheres to PAYGO principles for bringing down the deficit but that
does not shortchange our national defense or our citizens. We are not
going to spend money we do not have.
Our priorities include providing health care for millions more
uninsured children as we did tonight, adding 10 million uninsured
children, providing coverage for them, making investments in veterans'
benefits, and restoring crucial funding for first responders and local
law enforcement.
In order to spur innovation that will keep America number one,
Democrats will increase funding for cutting-edge research, invest more
in math and science education, and make college more affordable.
We also have a plan to expand renewable energy and energy efficiency
to reduce global warming and dependence on foreign oil.
And Democrats want to bring tax relief to those who need it most, by
shielding 19 million middle-income American families from the
alternative minimum tax.
Mr. Speaker, after 6 years of irresponsible policies, Democrats are
working hard to get our economic house back in order.
____________________