[Congressional Record Volume 162, Number 66 (Thursday, April 28, 2016)]
[Senate]
[Pages S2531-S2533]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            ECONOMIC GROWTH

  Mr. COATS. Mr. President, today's announcement by the Bureau of 
Economic Analysis that our economy grew, once again, an anemic rate of 
0.5 percent during the first quarter of the year is more than 
discouraging but not surprising. Whether it is burdensome regulations, 
whether it is a broken Tax Code, or whether it is a continued plunge 
into national debt, the Obama administration's policies have been and 
will continue to be a deadweight on our economy.
  The President continues to make big promises and insists his policies 
are effective, but the facts speak for themselves. Under President 
Obama, the median household income has decreased during his presidency 
and remains 6.5 percent below its prerecession level. If this were an 
average post-1960s recovery, individuals would have nearly $2,700 more 
in their wallets. Instead, they have received a decrease of $3,000 per 
year in their income. This is unacceptable.
  While the President continues to say the economy is improving, it is 
clearly not reaching its potential or anywhere close to its potential. 
At some point, you have to acknowledge the policies aren't working. 
Here we are 8 years from the beginning of the recession, and the 
president in the White House insists that his policies are working: 
Hang in there with us, folks. Things are going to get better.
  Then these statistics come out that things are not only not getting 
better, but are getting worse. We are not only not moving closer to the 
average level of recovery after a major recession, but we are moving 
further and further away from it.
  Our current annual growth rate in this recovery is less than 2 
percent. In 2016, with this quarter's report, we are off to a very weak 
start. But if this were an average recovery, we would be seeing an 
annual growth rate of somewhere around 3\1/2\ to 4 percent.
  I served previously in Congress in the Reagan years, and the growth 
rate during the Reagan recovery was 4.5 percent, which is well more 
than double what it is today. I have seen firsthand how pro-growth 
policies turn a dismal economic situation around, but I haven't seen it 
here in Washington under President Obama. Where I have seen it is in my 
home State of Indiana.

  In 2005, under the policies of a Democratic administration, which 
clearly weren't working, Indiana faced a $200 million deficit, and our 
State had not balanced its budget for 7 years, even though the State 
constitution requires that we do that.
  Under the leadership of former Indiana Governor Mitch Daniels and 
current Governor Mike Pence, Indiana has reduced spending, cut taxes, 
and paid off its debt. As a result, instead of a $200 million deficit, 
we have a $2 billion surplus today. We enjoy a triple-A credit rating 
from all the credit rating agencies, and we have been listed in index 
after index as the State to go live thanks to our low taxes and because 
we are business friendly, family friendly, and tax friendly.
  The contrast between this body and the State that I represent is 
dramatic because of the differences in our policies. By the numbers and 
indexes, it is clear that this Federal economy under the policies of 
this administration is simply not making any progress. I think we see 
that playing out in the upcoming election for the next President. It 
has become a major campaign issue, and we hear both parties talking 
about it.
  Over the past 2 years, in Indiana, private employment has grown by 
nearly 130,000 jobs, reflecting the results and success of Indiana's 
pro-growth policy. Employers are taking notice of our healthy business 
climate and coming into the State to establish new businesses. I think 
the resurgence of growth is proof that sound economic policy works.
  I have seen how it works in Indiana, and I am simply not willing to 
accept the stagnant rate of growth here without trying to do something 
about it. I don't think anything is going to change since there is no 
indication from the White House or even from our colleagues across the 
aisle here that they are willing to at least debate this issue and put 
the policies that bring about economic growth into place.
  In order to boost economic growth, we need to reverse the failed 
policies of this administration by overhauling our Tax Code, strip away 
unnecessary government regulations, give employers the certainty they 
need in order to grow their businesses and create jobs, follow the lead 
of States like Indiana, Ohio, and others that have turned their 
economies around and bring the prosperity to the people of those 
States.
  Congress can take action to encourage our economy to grow, but we 
need a partner in the White House willing to cut the redtape, willing 
to enact pro-growth reforms and put in place a real plan to reduce the 
debt.
  I hope I don't have to come down here to discuss another quarter of 
anemic rate of growth. The American people simply pay the bills, pay 
the mortgage, send the kids to college, and put aside money for the 
future. That is not happening, and it needs to change. Hopefully, we 
can take a lesson from what we have learned on these quarterly 
reports--that the policies in place are simply not doing the job.
  With that, I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. SULLIVAN. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SULLIVAN. Mr. President, I am glad to see that my good friend 
from Indiana was on the floor talking about an important issue that the 
administration certainly won't talk about. To be honest, not many 
Members of this body talk about it nearly enough. As my colleague from 
Indiana mentioned this morning, the U.S. Commerce Department came out 
with some big news. They said that the U.S. economy grew at 0.5 percent 
GDP growth the first quarter of 2016. That is one-half of 1 percent. 
That is a horrible number.
  I am going to make a prediction. I don't think anybody in the media, 
if they are still up there, is going to talk about this issue. Nobody 
talks about this issue. In the old days, it didn't matter if there was 
a Republican or a Democratic administration. If the U.S. economy was 
growing at 0.5 percent GDP--which essentially means it is not growing 
but has instead stopped--then almost certainly the Secretary of the 
Treasury would come out and say: Don't worry, America. We have this; we 
have a plan.
  We know that 0.5 percent GDP growth is horrible for everybody, 
especially working-class families. At the very least the Secretary of 
Commerce would have come out and said: We know you are hurting, 
America, but don't worry. We have a plan. In previous administrations, 
that is what would have happened, and it wouldn't matter if the 
President was a Democrat or a Republican.
  But I don't think we heard a peep out of this administration this 
morning. We have not heard from the President, the Secretary of the 
Treasury, or the Commerce Secretary. Nobody came out and spoke, and 
don't count on it. I don't think they will be talking about this 
number. They even seem to be satisfied with this number--0.5 percent 
GDP growth. They certainly don't want the American people talking about 
it because this is not a good number.
  This is a really important issue for our country. This is an 
important issue for every single American, and yet we have an 
administration that doesn't want to talk about this issue because it is 
a big problem for them. It is a big problem for all of us. We can't 
grow the U.S. economy.
  Some of my colleagues have come down to the Senate floor often to 
talk about what they view as moral imperatives. I respect everybody in 
this body, but there is a lot of talk about moral imperatives and 
nobody talks about this issue as a moral imperative. In my

[[Page S2532]]

view, growing the economy and providing opportunities for Americans has 
to be the No. 1 moral imperative of this body and of the Federal 
Government. We should be talking about it, but we are not, and one of 
the reasons we are not talking about it is because there is no doubt 
that the Federal Government--the Obama administration--is failing the 
American people in this regard by any serious measure. This is not a 
debatable topic.
  The Obama administration's record on economic growth has been one of 
the worst in U.S. history. Let's take a look at this chart. Is it any 
wonder why the President or Secretary of the Treasury didn't come out 
and talk about these numbers this morning? The numbers are abysmal, and 
they are their numbers. Remarkably, when the President does talk about 
the economy, he has taken to bragging about the U.S. economy because we 
are doing better than Europe. Look at the press. When the President 
talks about the economy, he talks about how we are doing better than 
Europe. After today's news, he won't even be able to brag about that 
because 0.5 percent GDP growth is not better than Europe. If the 
President is actually comparing his record to another country, he needs 
to remember that the only country that matters is America. That is the 
only measure he should be looking at--not Europe, not Japan, and not 
Brazil. He should be looking at our country.
  How has he done historically relative to every other President--
Democrat or Republican? If we take a look at this chart, we can see the 
answer. These are facts. We are not debating anything. These are just 
the numbers. Real GDP growth, as I mentioned, is 0.5 percent growth 
this quarter. But if you look at some history here, from 1790 to 2014, 
the average real GDP growth for the United States has averaged about 
3.7 percent. That includes Democrats and Republicans over 200-plus 
years. That is what made us great. Historically, we have had almost 4 
percent GDP growth. That is what made the United States great.
  I keep talking about GDP growth, but in essence, gross domestic 
product is an indicator of the economic health of our economy and how 
it is growing. It is an indicator that measures the opportunities that 
exist in the United States.
  Like I said, we had almost 4 percent growth throughout American 
history. The President's numbers in the last 7\1/2\ years: 1.36 percent 
GDP growth. Here we see it on the chart. This is Kennedy, Johnson, 
Nixon, Ford, Carter, Reagan, Bush 41, Clinton, Bush 43, and President 
Obama.
  The red line is important. That is 3 percent GDP growth. That is 
considered pretty good--not great but pretty good. Take a look. 
President Obama has never hit that. He has never actually hit that in 
one quarter, ever. By any measure, these numbers are abysmal.
  So what are we looking at? The Obama era has been a lost decade of 
growth. Again, compared to any other period, even the Great Depression 
period, these numbers represent lost opportunity, stagnant wages, and 
middle-class families struggling. Yet the administration never talks 
about it.
  If we can't grow our economy, who is hurt the most? It is the most 
vulnerable. It is the working poor. It is the elderly. It is the young 
people. It is our pages right here who want a positive future. These 
are the people who are hurt. Yet if we grow our economy--if we got to 
Reagan levels or Clinton levels or Johnson levels of 4, 4.5, 6--we 
could take care of so many of the challenges our country faces.
  So what has happened is--and we know the media certainly helps the 
administration deal with this--we don't talk about it. The President 
might compare our economy to Europe. That is pretty weak. Instead, we 
define the problem down. Many people may have heard this term, ``the 
new normal.'' That is a term they are now using in Washington, ``the 
new normal.'' So what does that mean? It means we can't grow at 3 
percent anymore. Look at the chart. We have never hit 3 percent, ever. 
So let's just define it now. We are not going to shoot for traditional 
levels of robust American growth like 4 percent. Again, the historic 
average is 3.7 percent, for 200 years, Democrats and Republicans. We 
are just going to say: Well, it is a new time in the history of our 
country--secular stagnation. This is the new normal.
  If Americans believe this or accept this or our young people do, we 
are in big trouble.
  So we talk about the new normal or we are silent, like what happened 
today. No one came out--not one person from the Obama administration 
explained how we are going to get out of this rut. They are silent 
because there is no way to sell 0.5 percent GDP growth--to anybody. The 
American people are smart, and they know they are being sold a clunker. 
The economy is a clunker right now, and it has been one for almost 8 
years.
  Again, it is important to understand just how bad this record is, in 
terms of U.S. history. Let me give a few more statistics. In 85 years, 
for which the Bureau of Economic Analysis has calculated the annual 
change in real GDP, there is only one 10-year stretch, and it is right 
here--the entire Obama administration--when the annual GDP growth never 
hit 3 percent. Even during the Great Depression, it was only a 4-year 
stretch. So 10 years, starting with the Bush-era recession. The 
President talks about the recession, but that was almost 8 years ago. 
We need to get over that and grow this economy.
  During the last 10 years, real annual growth of GDP peaked in 2006 at 
2.7 percent. It has never been that high again. In the 25 quarters 
since the recession ended, real GDP growth has totaled just 14.3 
percent. So that is what we grew our economy by--the total growth of 
our economy. In comparison, other recoveries--again, Democrat, 
Republican--since 1960, that lasted much more than a year, real GDP 
growth for the whole economy grew on average of 27 percent. So we have 
14 percent Obama, 27 percent over the comparable period for the 
average--Kennedy, Johnson, Nixon, Ford, Carter, Reagan. If real GDP 
growth in the Obama years had grown at that average, our GDP would be 
$1.8 trillion higher. Think about that--$1.8 trillion, almost $2 
trillion higher. Think about what families could do with that kind of 
money if we divided that by American families.
  In the Reagan recovery, real GDP growth grew a total of 34 percent. 
The economy expanded by 34 percent. So, again, Obama, 14 percent; 
average, 27 percent; Reagan, 34 percent. He grew it at an average rate, 
and the economy grew at about 4.8 percent, so almost 5 percent GDP 
growth. Look at the comparison here. If the 8 years of President Obama 
grew at the rate that President Reagan's recovery took place, we would 
be seeing almost $3 trillion more in terms of the size of our economy, 
higher annual aftertax income of almost $5,000 per American, and of 
course millions and millions of more jobs.
  The President talks about the unemployment rate going down, but what 
he doesn't talk about is the reason it is going down is because people 
are leaving the workforce. We have the highest rate since the mid-1970s 
of workforce participation. Why? Because we are not growing the 
economy.
  I know I am throwing a lot of numbers out, but what this chart 
reveals is something much more important than numbers. This chart goes 
to what the American dream is all about; that is, progress. That is 
progress. When you are an American, you expect progress. You expect 
growth. You don't expect this. This is not progress. We are hearing it 
and we are seeing it.
  The American dream was founded on progress. There is opportunity. You 
have the opportunity to take advantage and move up the ladder.
  A recent poll came out and said 13 percent of Americans--13 percent--
think their kids are going to have a better economic future than they 
had. That is the death of the American dream, and this chart explains 
why. The young people right here, through hard work--only 13 percent of 
Americans think you are going to have a better future than we had.
  That is the essence of the American dream. We all used to think our 
kids would have a better future. Now 13 percent do. It shows that 
people are losing faith in the American dream because of these numbers.
  It gets worse in terms of the unequal growth. I was talking about 
1.36 percent is the average growth rate for the Obama administration. 
In actuality, about 20 percent of the population in

[[Page S2533]]

regions of the country--mostly on the east and west coasts--are doing 
pretty good. Twenty percent are growing at about 5 percent GDP growth. 
Eighty percent of America--the rest of the country--is not growing at 
all--zero growth.
  I believe this is a surrender. I believe this body is not talking 
about it enough. The White House wants to ignore it. It is a surrender 
of America's greatness. It is a surrender of our future. It is a 
surrender of our kids' future.
  We need to do something about it. If we stay at these levels of 
growth, issues like infrastructure, issues like military spending, 
issues like social spending, even social cohesion are going to be much 
harder to address, but if we grow--back to traditional levels of 
American growth--the future is going to be bright again like it has 
been for 200-plus years in the United States.
  We don't have to continue down this path. We can make decisions in 
this body--the right decisions--in order to right this sinking ship of 
an economy, but the first step is to admit we have a problem. The first 
step is to recognize we have a big problem.
  The President and his Cabinet will not do this. As a matter of fact, 
there was a recent New York Times article where the President was 
talking about how this is actually pretty good growth--again, dumbing 
down expectations, the new normal. Did they say anything today? No. But 
the American people know we have a huge problem. We see it reflected in 
polling and our politics with people losing work, stagnant wages, 
historic levels of failed businesses. More small businesses are failing 
now.
  The PRESIDING OFFICER. The time of the Senator has expired.
  Mr. SULLIVAN. Mr. President, I ask unanimous consent for 2 more 
minutes.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  Mr. SULLIVAN. Mr. President, we need to realize that what we are 
doing here is part of the problem. Look at this chart. We are 
overregulating every aspect of our economy. What we need to do is start 
focusing on ways that Washington can be a partner in opportunity, not 
the center of regulations that focus on small businesses.
  Let me conclude by saying, although I have highlighted the challenges 
we have right now and the lack of focus by the administration, this is 
something all of us in this body--Democrats and Republicans--should be 
working on together. Nobody wants 1.36 percent GDP growth. Nobody wants 
0.5 percent GDP growth. We need leadership now to tackle these 
challenges and to get America back on track. We have to grow this 
economy. We have to continue progress. We must do better for our 
children and restore the American dream, but first we need a White 
House that recognizes the problem. Unfortunately, today we saw that is 
not the case.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts.

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