[Congressional Record Volume 157, Number 181 (Tuesday, November 29, 2011)]
[Extensions of Remarks]
[Pages E2120-E2121]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       PROPOSING A BALANCED BUDGET AMENDMENT TO THE CONSTITUTION

                                 ______
                                 

                               speech of

                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                      Thursday, November 17, 2011

  Ms. McCOLLUM. Madam Speaker, I rise in strong opposition to H.J. Res. 
2, legislation that would have a devastating effect on the U.S. 
economy, national security and the well-being of millions of Minnesota 
families and businesses.
  A constitutional amendment that requires Congress to balance the 
federal budget every year--regardless of economic conditions--would 
severely damage the U.S. economy. Such a requirement would force 
Congress to cut spending, raise taxes or both, even when the economy is 
in recession. That is the exact opposite of what economists recommend 
in order to escape recession and stabilize a weak economy.
  According to new analysis by Macroeconomic Advisers--one of the 
nation's preeminent private economic forecasting firms--a balanced 
budget amendment would destroy millions of American jobs. Had a 
balanced budget amendment been in effect today, their analysis 
concluded that ``the effect on the economy would be catastrophic.'' 
Assuming the Republicans used spending cuts instead of tax increases to 
balance the budget this year, the cuts would have totaled approximately 
$1.5 trillion. Macroeconomic Advisors determined cuts of this magnitude 
would throw 15 million more Americans out of work, double the 
unemployment rate from 9 percent to approximately 18 percent, and cause 
the economy to shrink by 17 percent instead of growing by an expected 2 
percent.
  What House Republicans are not telling the American people is that 
Congress has the opportunity to propose and pass a balanced budget each 
year. House Budget Committee Chairman Paul Ryan could have proposed a 
balanced budget this year--fiscal year 2012--but he did not. The budget 
proposed by House Republicans delivers another tax cut windfall for 
America's wealthiest individuals by making the Bush-era tax cuts 
permanent. To make matters worse, their budget preserves expensive tax 
breaks to oil companies and corporations shipping jobs overseas. 
Instead of proposing a fiscal year 2012 budget that puts us on a more 
sustainable fiscal path, House Republicans chose to continue the same 
reckless tax policies that have added trillions to our national debt.
  In times of recession and weak economic growth, Congress needs the 
ability to assist struggling families with unemployment insurance and 
to promote economic recovery by sustaining demand through investments 
in areas such as transportation infrastructure. In a strong U.S. 
economy, Congress has the responsibility to reduce expenditures and 
balance the budget as was done in 1998, 1999, 2000, and 2001 under 
President Clinton.

[[Page E2121]]

  Instead of spending two days debating this purely political measure, 
the House should be focused on debating and passing legislation to 
create American jobs--including President Obama's American Jobs Act.
  I urge my colleagues to join me--and 270 national organizations 
including AARP, Paralyzed Veterans of America, Easter Seals, AFL-CIO, 
and the National Committee to Preserve Social Security and Medicare--in 
strongly opposing H.J. Res. 2.

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