[Congressional Record Volume 155, Number 152 (Tuesday, October 20, 2009)]
[House]
[Pages H11484-H11485]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    U.S. DEFICIT BIGGEST SINCE 1945

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from North Carolina (Mr. Jones) is recognized for 5 minutes.
  Mr. JONES. Madam Speaker, I would like to share with the House 
tonight some writings from the October 16, 2009, CNNMoney.com. The 
title is, ``U.S. Deficit Biggest Since 1945.''
  ``The Obama administration on Friday said the government ran a $1.42 
trillion deficit in fiscal year 2009. That made it the worst year on 
record since World War II, according to data from the Treasury and the 
White House Office of Management and Budget. Tax

[[Page H11485]]

receipts for the year fell 16.6 percent overall, while spending soared 
18.2 percent. Consequently, the annual deficit rose 212 percent to the 
record dollar amount of $1.42 trillion, from $455 billion a year 
earlier.''
  I continue to read from this article:
  ``As a result, the country is very near to breaching its so-called 
``debt ceiling,'' currently set at $12.1 trillion. Lawmakers, however, 
are expected to vote to raise that ceiling this fall.''
  I further share with the House:
  ``In August, the OMB projected a 10-year deficit of $9 trillion, 
assuming President Obama's 2010 budget proposals are put in place. A 
deficit of that magnitude means the debt held by the public would 
approach 82 percent of gross domestic product. That's double the 41 
percent recorded in 2008.
  ``The 10-year forecast as well as the longer-term outlook are 
considered unsustainable. The GAO further cautioned that the yawning 
deficit problems should be addressed sooner rather than later. The 
longer action to deal with the Nation's long-term fiscal outlook is 
delayed, the larger the change will need to be, increasing the 
likelihood that they will be disruptive and destabilizing.''
  Madam Speaker, I wanted to share that tonight with the House because 
whether you be a Republican, which I am, or a Democrat, this country 
needs to understand that no longer can it take care of the world, 
because we can't even take care of our own Nation.
  I want to make reference just briefly to a book that I read a couple 
of years ago that I would recommend to each Member of Congress. And if 
I could buy it for each Member of Congress, I would, but I cannot. It 
is called ``Day of Reckoning'' by Pat Buchanan. The book ``Day of 
Reckoning'' reminds America what has happened to other great nations, 
whether it be England, Spain or France. These nations went down the 
road where they believed in building empires around the world and 
making everybody be like they are. They all collapsed in a matter of 
years. Rome is probably the best example of a nation that felt that it 
could go and create other entities around the world, and they failed, 
as well.
  So, Madam Speaker, in closing, I would like to ask unanimous consent 
to put the entire article from CNNMoney.com into the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from North Carolina.
  There was no objection.
  Mr. JONES. Madam Speaker, I thank you very much. And I hope that we 
in Congress, as we debate not only the health bill, but other bills, 
determine how we're going to pay for it. Is it fair for our 
grandchildren to pick up the debt of those of us today who are 
irresponsible to our responsibility of maintaining a frugal government?
  And with that, Madam Speaker, as I always do, I want to ask God to 
please bless our men and women in uniform. I want to ask God in His 
loving arms to hold the families who have given a child dying for 
freedom in Afghanistan and Iraq. And Madam Speaker, I want to ask God 
to please give wisdom, strength and courage to the President of the 
United States. And I ask three times, God please, God please, God 
please continue to bless America.

                   [From CNNMoney.com, Oct. 16, 2009]

                    U.S. Deficit Biggest Since 1945


 Obama administration closes the books on fiscal 2009: Falling revenue 
        plus soaring spending leads to a $1.42 trillion deficit

     (By Jeanne Sahadi)
       The Obama administration on Friday said the government ran 
     a $1.42 trillion deficit in fiscal year 2009.
       That made it the worst year on record since World War II, 
     according to data from the Treasury and the White House 
     Office of Management and Budget.
       Tax receipts for the year fell 16.6% overall, while 
     spending soared 18.2%. The rising unemployment, the economic 
     slowdown and the extraordinary measures taken by lawmakers to 
     stem the economic meltdown that hit in fall 2008.
       Consequently, the annual deficit rose 212% to the record 
     dollar amount of $1.42 trillion, from $455 billion a year 
     earlier.
       As a share of the economy, the deficit accounted for 10% of 
     gross domestic product, up from 3.2% in 2008. As breathtaking 
     as that may be, it's still not in the same stratosphere as 
     the 1945 deficit, which hit 21% of GDP.


                      Perfect deficit cocktail mix

       Fiscal year 2009, which ended Sept. 30, had all the right 
     ingredients for a recordbreaking deficit.
       While tax revenue overall took a big hit, corporate 
     receipts led the way, falling 55%. Individual income tax 
     revenue fell 20%.
       At the same time spending jumped in large part because of 
     the various economic and financial rescue measures 
     undertaken. The Treasury and the OMB noted that the $700 
     billion Troubled Asset Relief Program and the $787 billion 
     American Recovery and Reinvestment Act, not all of which has 
     been used, accounted for 24% of the deficit total.
       As a result, the country is very near to breaching its so-
     called debt ceiling, currently set at $12.1 trillion. 
     Lawmakers, however, are expected to vote to raise that 
     ceiling this fall.
       At the end of September, the country's total debt--which is 
     an accumulation of all annual deficits to date plus other 
     obligations--stood at $11.9 trillion.


                           The long-term view

       In August, the OMB projected a 10-year deficit of $9 
     trillion, assuming President Obama's 2010 budget proposals 
     are put in place.
       A deficit of that magnitude means the debt held by the 
     public would approach 82% of gross domestic product. That's 
     double the 41% recorded in 2008.
       Most budget experts blanch at the thought, especially given 
     that the country's fiscal future was already a source of 
     concern before the economic crisis because of expected 
     shortfalls over time in funding for Medicare and Social 
     Security.
       The financial and economic meltdowns of the past year have 
     accelerated the strain on federal coffers. So much so that 
     now the 10- year forecast as well as the longer-term outlook 
     are considered unsustainable, according to deficit experts 
     William Gale and Alan Auerbach.
       In a report this week, the Government Accountability Office 
     noted that the deficits born from the financial crisis are 
     not the biggest crux of the problem.
       ``While a lot of attention has been given to the recent 
     fiscal deterioration, the federal government faces even 
     larger fiscal challenges that will persist long after the 
     return of financial stability and economic growth,'' the GAO 
     said.
       The GAO further cautioned that the yawning deficit problems 
     should be addressed sooner rather than later.
       ``The longer action to deal with the nation's long-term 
     fiscal outlook is delayed, the larger the changes will need 
     to be, increasing the likelihood that they will be disruptive 
     and destabilizing.''
       The Obama administration is promising to put a plan in 
     place to lessen the deficit when the economy recovers.
       ``It was critical that we acted to bring the economy back 
     from the brink earlier this year. As we move from rescue to 
     recovery, the president recognizes that we need to put the 
     nation back on a fiscally sustainable path,'' said OMB 
     director Peter Orszag in a statement. ``As part of the FY2011 
     budget policy process, we are considering proposals to put 
     our country back on firm fiscal footing.''

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