[Congressional Record Volume 155, Number 152 (Tuesday, October 20, 2009)]
[House]
[Page H11487]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HALLOWEEN BUDGET SCARE
The SPEAKER pro tempore. Under a previous order of the House, the
gentleman from South Carolina (Mr. Inglis) is recognized for 5 minutes.
Mr. INGLIS. Madam Speaker, tonight I want to talk about where we are
with the budget deficit.
Just in time for Halloween, we are looking at scary numbers: an
annual deficit of $1.42 trillion, accumulated debt of $13 trillion.
It's a real fright. So, what does it compare to in our history?
Well, here we have a chart that shows the historical debt levels of
the United States. This is debt owed to the public, not
intergovernmental debt. But what it shows is that after World War II
there was a substantial amount of debt owed to the public; in fact, it
was over 100 percent of our gross domestic product. Since then, it has
gone down nicely, and that's a good thing. But here, lately, you can
see the trajectory over there of where we're headed to, another
dangerously high level of debt; again, an accumulated debt right now of
$13 trillion, and this year will throw on 1.42 trillion from this
year's annual deficit.
But the historical debt level gives us a little bit of comfort
because it shows that after World War II we had a higher percentage of
debt than we do now. But there is a big difference between the debt
after World War II and the debt today. As you can see here, the
comparison of our creditors on this debt is what's really telling and
what, again, just in time for Halloween, is rather frightening.
In 1945, 95 percent of the debt was owed to the U.S. public; only 5
percent of it we were looking at back then was foreign investment. Now,
then, in 2009, that $13 trillion debt that I was just talking about,
the U.S. public owns only 54 percent of that debt. China owns 11
percent, other foreign countries, 35 percent.
So the very scary thing is that, unlike World War II where we had a
higher percentage of debt compared to GDP but we owed it to ourselves,
now with this $13 trillion debt, we owe it to foreign countries, not to
ourselves.
The very sad thing for me as a member of the Republican Study
Committee is that if we had enacted the conservative budgets that we
proposed since 2005, we would be, right now, $613 billion to the
better, because over those years, we proposed here on this House floor
the most conservative budget alternatives offered. Had they been
enacted, we would have been looking at $613 billion less than what we
are looking at now by way of debt.
Now, from here, it gets even scarier, because this chart shows the
effect of President Obama's proposed budget in 2010. As you can see,
government spending as a percentage of GDP--that's what this chart is
showing is government spending as a percentage of GDP--you can see it
taking off at a trajectory that truly is frightening. The Republican
alternative budgets, as you can see there, show a trend line down so
that we would be moving away from government spending as a percentage
of GDP. It would actually be declining over the years to come.
So, the question for us as Americans is: How are we going to cope
with the fact that we've got a $13 trillion accumulated debt? First
thing we could do is cancel the unspent part of the stimulus package;
that's $787 billion. Only 13 percent of it has been spent. Surely we
can cut that out. The next thing we can do is make sure we do no harm
in health care, and that means avoiding yet another government program
like Medicare and Medicaid that involve cost shift. That means that
private sector employers and people covered by their own insurance will
have to make up for the shortfall created by the cost shift that comes
from these underpaying government programs. But even in their
underpayment, they create an enormous government deficit problem.
So, Madam Speaker, the message I think to all of us, Republicans and
Democrats, the President and the Congress, is to come together to
figure out a way to get this trajectory down, to not be looking at this
kind of government spending that takes off, but rather to bring that
down.
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