[Congressional Record Volume 157, Number 86 (Wednesday, June 15, 2011)]
[Senate]
[Pages S3802-S3804]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              THE ECONOMY

  Mr. ISAKSON. Mr. President, last night, between 6 and 7 o'clock, I 
did a telephone townhall meeting in Georgia. We had a little over 3,000 
people on the call, and I was able to handle 16 questions. As I 
listened to the answers I was giving to the questions, I was struck by 
what a real problem we have in Washington. Washington is making things 
worse. Georgians are frightened for their jobs, the value of their 
homes, and the education of their children. They are uncertain about 
everything. As you give answers about what is happening in Washington, 
you realize Washington is making it worse.
  I wish to give a couple of examples based on my experience. First of 
all, let's talk about legislation for a second. We have high 
unemployment--9.1 percent. We have people without jobs or 
underemployed. We have a law called the Workforce Investment Act or 
WIA. I am on the subcommittee that overseas it and the Education 
Committee. We have basically had an agreement on expansion of the 
reauthorization for the Workforce Investment Act for months, but it 
still languishes in committee because there are arguments over labor 
provisions that some want to be added to it.
  Here we are, a nation in trouble, and we cannot pass the Workforce 
Investment Act, which is intended to help the very problem we have.
  Secondly, I am on the Health, Education, Labor, and Pension 
Committee, which does the reauthorization of the Elementary and 
Secondary Education Act--the fundamental foundation of training and 
improving our kids for the jobs of the 21st century. It has gone 4 
years without reauthorization, and it languishes in committee because 
of a lack of willingness to bring it forward. Our children remain 
educated and taught and motivated under a law now expired for 5 years. 
That is not right, when we should be educating our children and 
training workers.
  We in Washington are doing nothing. On the Commerce Committee, on 
which I serve, we are over the FAA

[[Page S3803]]

committee and reauthorization of the Federal Aviation Administration, 
which is critical to economic development. That conference committee 
continues to languish. What are the arguments? They are about changes 
in labor law.
  We need to get the job done in Washington and go to work. We need to 
understand that the American people are in trouble and are hurting. Our 
job is to provide answers, not to make it worse.
  I wish to talk about a second feature--about regulation for a 
second--or strangulation, if you will. I have told this story before on 
the Senator floor, and I will tell it again. On January 3 of this year, 
I was in a cafe for breakfast and to meet with some businessmen. I 
walked in the front door and Steve Hennessy of Hennessy Cadillac and 
Land Rover in Atlanta called to me and came running across the floor. I 
thought he was going to give me a bear hug, but he said: Johnny, 
yesterday, I fired a salesman and hired two compliance officers. This 
financial regulation in the Dodd-Frank bill is strangling my 
productivity and raising my cost of doing business.
  We have to recognize that regulation has consequences. It is not our 
job to eliminate risk in the marketplace. It is our job to mitigate 
risk so people will take risks, in terms of seeking rewards, which is 
what the capitalistic system is based on.
  I will talk about a few other regulations that are causing 
significant problems in our recovery. The qualified residential 
mortgage rule that is being promulgated now by the six regulators will, 
if it goes into effect on August 1--and they have put the effective 
date off now--probably constrict the real estate market, which is 
already suppressed by 70 percent, by another 40 percent. It is going to 
take capital and risk capital and credit away from the Americans who 
are, in fact, buying homes today. In fact, in order to mitigate risk 
and try to eliminate it, it requires lenders to hold a 5-percent risk 
retention until the loan matures. It says you cannot loan anybody less 
than 80 percent--more than 80 percent, and if you have anything more 
than that, you cannot even have a private mortgage insurance policy to 
guarantee the money. So you are going to flood every buyer left to 
where? Through FHA, which is exempt from the Dodd-Frank bill, or Fannie 
Mae and Freddie Mac, which are going out of business, which means you 
will shift more of the burden of mortgage financing on people who are 
already overstressed.
  Regulatory intent should not do that. My dairy farmers in Georgia are 
looking at a rule where milk is being categorized where it is going to 
have to be contained in tanks and reservoirs that now meet the 
standards of petroleum. That is higher investment and no additional 
profit for the country. That is protracted. Water--the EPA wants to 
take ``navigable'' from in front of the word ``water,'' in terms of the 
Clean Water Act, so the government doesn't regulate just navigable 
waters but every water.
  Credit. Credit is becoming nonexistent for Main Street. I am a small 
business guy. I was in a small business in Georgia for 33 years. A lot 
of small businesspeople use their credit cards to manage their cash 
flow over time. Because of the credit bill passed a couple years ago, 
they don't have the flexibility to do that anymore. Bank credit is 
suspended primarily because banks are being run by the FDIC under cease 
and desist orders or, if they are extending credit alone, they are 
extending it to the extent that a borrower can put that much money in 
the bank. When you constrict credit, you suppress small business. When 
you suppress small business, you suppress 72 percent of the employment 
in the United States.

  I commend Senator Corker for his remarks about an hour ago on the 
floor of the Senate because he focused on the big problem we have; that 
is, debt and deficits. It is kind of disappointing to me we have spent 
more time on the SBA act, which has been pulled now--it was on the 
floor the beginning of last month--than we have spent on all the 
appropriations bills in the last 3 years of this Congress. We debated 
amendments, we protracted the debate but still nothing happened. We 
ought to be talking about debt reduction, about deficit reduction, and 
a long-term plan, over time, to amortize the debt of this country to a 
reasonable level.
  We have a debt ceiling vote that is confronting us, and I have heard 
the political statements made by people in both parties that there is a 
game of chicken being played right now, with some saying we are going 
to push it right up to August 2 and force a vote. If we don't get it, 
we will run the risk of America's credit going up in cost and 
uncertainty happening. Others are saying we are not going to do 
anything on a debt ceiling increase period until we have to at the last 
minute.
  That is not the way to run a business. That is not the way to expand 
credit. That is not the way to run a country. We ought to be sitting 
down at the kitchen table of Washington, DC, in the Senate 
reprioritizing the way we spend money to begin to rein in our 
expenditures, lower our deficit and lower our debt.
  I bet in the last couple of years every family in America, as every 
family in Georgia, has had to sit around their kitchen table and 
reprioritize their expenditures. Things have changed. Their nest egg 
may have shrunk. Their equity may be suppressed. Their job may be in 
trouble. We have all had to do it. I have had to do it. Almost 
everybody in America has had to do that. Why doesn't the government do 
it? At a crisis moment of $14 trillion in debt, with no ceiling above 
it; with a deficit of $1.5 trillion, $300 billion more than 
discretionary spending, why aren't we sitting around that kitchen 
table?
  The questions I heard last night during my tele-townhall meeting made 
it clear to me Washington is making things worse. The American people 
want to be confident that we will address the debt and the deficit 
problem; that we are working on it and not that we are putting it off 
to a drop-dead date and then play chicken politics in the Senate.
  People don't mind regulation that is fair, but they do mind 
regulation that is suppressive and that suppresses jobs. They don't 
mind having legislation debated in Washington on the floor of the 
Senate, one way or another depending on your position, but to leave it 
languishing in committees and not even bringing it up is not right. So 
my challenge--for me and for every Member of the Senate, and for this 
administration and for the President--is for us to lead.
  We have a clock winding down on a debt ceiling increase that will be 
important for this country. But without substantial reform of the way 
we do our business and a game plan for a downpayment on our debt and 
deficit, and without an indication we are going to work together and 
have shared sacrifice, there is nothing at all we can do in this 
government except cause things to be worse. I don't want to be a part 
of that.
  My last comment is this: I was 39 years old in 1983. A report was put 
out by the board of the Social Security Administration saying it was 
going broke in 2004. President Reagan and Tip O'Neill got together and 
said: We can't let that happen.
  President Reagan said: I don't want it to go broke, but I am not 
going to raise the tax.
  Tip O'Neill said: I don't want it to go broke, but I am not going to 
cut the benefit.
  They went to the actuaries and said: What do we do?
  The actuaries said: Put out the eligibility.
  So they changed the law and said if you are an American born after 
1943 you can't get Social Security at 65; you have to wait until you 
are 66. I am 66. They put my Social Security off a year. I didn't miss 
it. They also made Social Security actuarially sound until 2050. Only 
in the last 2 years has that date come down, and it has come down 
because of unemployed Americans at age 62 taking discounted early 
Social Security and putting more pressure on the system.
  We could fix Social Security tomorrow just like they did in 1983 and 
not take a penny away from anybody. We could move the eligibility out 
to be more reflective of life expectancy. I know Medicare is the big 
political football and everyone wants to say the Republicans are trying 
to kill Medicare, and the Democrats love to say they are trying to 
protect it. Heck, I want to protect it. I have nine grandchildren. The 
rest of my life is about those grandchildren. I want to see to it they 
have a country that is as free, as productive, and safe, and that the 
benefits

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are there for them that have been there for me. It is important we save 
Medicare, but we can't save it by looking the other way or by taking it 
off the table. We can't demonize a Democrat or a Republican for making 
a constructive decision to save Medicare.
  Instead of trying to make it the political issue of the 2012 
election, we should make it the personal issue of each Senator. We 
should sit around that kitchen table, work together, and try to find a 
meaningful solution to a problem that saves Medicare for future 
generations, and also doesn't cause an escalation in our debt and 
deficit. We are capable of doing it, but we have not demonstrated a 
will to do it.
  I challenge my colleagues to do the same thing, and I challenge my 
colleagues to do one other thing--to hold a tele-townhall in the next 
couple of weeks. Talk to 3,500 of the citizens in your State and listen 
to the questions they are asking. They are scared, they are worried, 
and they feel threatened, and Washington is making it worse.
  Madam President, I yield the floor, and I suggest the absence of a 
quorum.
  The PRESIDING OFFICER (Mrs. Hagan). The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mrs. HUTCHISON. Madam President, I ask unanimous consent the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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