[Congressional Record Volume 166, Number 215 (Friday, December 18, 2020)]
[Senate]
[Pages S7683-S7685]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Unanimous Consent Request--S. 4999
Mr. HAWLEY. Mr. President, I am here on behalf of the millions of
working people in this country who are out of time, who are out of
luck, and who are just about out of hope. I am here on behalf of the
millions of working people who have borne the worst of this pandemic,
the people who got sent home back in March and April and May, when
other businesses got to stay open, and when companies like Amazon and
Facebook were making billions of dollars. These are the workers who
lost their jobs, the workers who lost their pay, the workers who were
told: Too bad for you.
These are people who right now are missing shifts at work to try to
care for kids who are distance learning because of COVID, who are
trying to care for a relative who may be sick. These are the people who
are always asked to make it work, who are always asked to hold it
together and, you know what, they do.
These are proud people, the working people of our Nation. These are
strong people. These are the people who have rallied to this Nation's
defense in every hour of need, in every moment of danger, who have sent
their sons and daughters to go fight our wars, who have given their
time and their talents and their treasure at every opportunity for this
Nation.
And now they are in need. They are the backbone of this Nation, and
they are in crisis. I am talking about the 8 million Americans who have
fallen into poverty since this summer; 12 million families--working
families--who are now behind on their rent; the 35 percent of working
families in America who have had to go ask for food assistance in the
last couple of months because of this pandemic. Those are the people I
am talking about.
I am talking about people like Susan, who is a single mother, a
working mother, from my State in Northeast Missouri, where she lives.
She wrote to me the other day, and she is trying to home school her
kids who are home because of COVID. She doesn't have internet because
she is in a rural part of the State. She doesn't have broadband. She is
trying to feed her family. She is trying to stay up with her job, but
she has to miss shifts at work because she has got kids at home whom
she is trying to home school and supervise. Now she has fallen behind
on her rent. She told me, and these are her words:
I am not asking for handouts. I am just asking for a chance
to get back on my feet.
Earlier this week, a friend of mine down in Southeast Missouri, the
boot heel of Missouri, in a town called Charleston, was helping to
distribute food to families in need. He said that there were 30 church
groups--30--who lined up to come get food for their congregations, and
over 60 families--this is a small town--there were over 60 families who
stood in line, and as they were loading food into the trunks of
people's cars, many of them were crying.
What these people ask for, what these Americans ask for is not for
government to solve all their problems. It is not for government to
give them a handout. It is a chance to get back on their feet, a chance
to provide for themselves, a chance to recover when they have been
asked, again, to sacrifice so much.
That is why the least this body can do is to provide direct relief to
every working American who needs it. That is what we did back in March
that every Senator voted for: $1,200 for every working individual,
$2,400 for working couples, 500 bucks for kids and dependents. It is
the least that we can do. It should be the first thing that we could
do.
As these negotiations drag on and on, fixated and focused and hung up
on who knows what issues, let's start with this. Let's send a message
to working families that they are first, not last; that they are the
most important consideration, not some afterthought. Let's send that
message today.
Surely, we can agree that the working people of this country deserve
relief, and if we are going to spend hundreds of billions of dollars on
bailing
[[Page S7684]]
out this, that, and the other, surely, surely, we could start with
reasonable, modest relief to the working people in need in this Nation.
What I am proposing is what every Senator has supported already this
year. What I am proposing is modest compared to the scope of the need.
What I am proposing will give working folks in my State and across this
country a shot--a shot--here before Christmas at getting back up on
their feet, getting back to work, and getting back in a position to be
able to provide for themselves, these folks who are the backbone of
this Nation.
I am here today to ask that this body take up and pass this relief
measure: $1,200 for individuals, $2,400 for couples, $500 for kids.
Mr. President, as in legislative session, I now ask unanimous consent
that the Senate proceed to the immediate consideration of my bill at
the desk; I further ask that the bill be considered read a third time
and passed, and that the motion to reconsider be considered made and
laid upon the table.
The PRESIDING OFFICER. Is there objection?
The Senator from Wisconsin.
Mr. JOHNSON. Reserving the right to object, Mr. President. First of
all, I want to say to my colleague from Missouri that I certainly share
and I think every Senator in this Chamber shares his concern for people
who are hurting because of this COVID pandemic. Businesses have closed.
People are on unemployment. People are in need through no fault of
their own.
This is an act of God, and that is one of the reasons why I certainly
supported the CARES Act. That was over $2 trillion. In total, this body
has passed well over $3 trillion, 15 percent to 16 percent of last
year's GDP in terms of financial relief.
My comments here are really not directed specifically at the proposal
of the Senator from Missouri because he makes many good points. We do
have working men and women, we have households that--again, through no
fault of their own--are struggling, and we need to provide financial
support. I think my comments are, in some respect, more general from
the standpoint of how we have done that.
As I have explained to my colleagues in conference, by and large, the
initial need packages here were a shotgun approach. We had to move
fast. We had to do something big. We had to make sure that markets
wouldn't seize, that financial relief could be sent to people very
quickly, and so we passed over $3 trillion in financial relief. I knew
it would be far from perfect. It was far from perfect.
But now we have had a lot more time, and anything we consider for
this additional package that we are considering now that is being
debated, that is being discussed, that is being negotiated, ought to be
far more targeted.
One of the reasons we are currently $27.4 trillion in debt, which is
about 128 percent of last year's GDP--if we do this bipartisan deal,
another trillion dollars, we will be $28.4 trillion in debt in the next
3 or 4 months. That is 132 percent of GDP.
When I came to the Senate, we were a little over $14 trillion and our
GDP was over $15 trillion, and we were actually below 100 percent of
GDP.
I know I am using a lot of numbers right now, and I am going to use
more because that is part of the problem.
One of the reasons we are $27.4 trillion in debt is, we only speak
about need; we only talk in terms of compassion. We all have
compassion. We all want to fulfill those needs. We just don't talk in
numbers very often. We don't analyze the data. We don't take a look at
what we did in the past and see, did it work or didn't it work? What
was spent well? What was wasted?
So I didn't have enough time to do charts. It would be a little bit
easier. But let me go through numbers, and I will go through slowly so
that people can understand at least my perspective of why I am so
concerned about our Nation's debt and the fact that we are mortgaging
our children's future. I think we need to be very careful about
mortgaging it further when we aren't doing it in a targeted fashion
So, again, before the COVID recession hit, in December 2019, we hit a
record number of people employed in this country. There were 158.8
million people employed. That was a record. Our economy was humming.
Because of President Trump's administration, they put forward a
reasonable level of regulation and competitive taxes. That brought back
the entrepreneurial spirit that supercharged the economy. We were at
3.5 percent unemployment. When I took econ, 5 percent was considered
full employment. We were at 3.5 percent unemployment.
Then, COVID hit and, by April, we had gone from almost 159 million
people employed in this country to just a little over 133 million
people, so that was a reduction in employment of a little more than 25
million people--again, from 159 million to 133 million, 25 million
fewer people employed in this Nation.
Now, the good news: Even though the pandemic is still not over and
the vaccine is being delivered, and it is being administrated--I think
the end is in sight--we have already gained 16 million people employed,
so now employment stands at 149.7 million people; 150 million people
are employed--down about 9 million jobs--9 million.
I want you to keep those numbers in mind because they are important.
Our unemployment rate stands at 6.7 percent. By the way, the number of
people unemployed, according to the Bureau of Labor Statistics, which
has a little bit different calculation, is about 10.7. So, in this,
somewhere between 9 million and 11 million people are currently
unemployed.
Now, in the CARES Act--again, which I supported because we had to
provide relief--we did provide economic impact payments, which Senator
Hawley wants to just duplicate--no changes, no modifications, no
further targeting. Those economic impact payments were about $275
billion to 166 million people. Remember, 25 million people lost their
jobs, but we sent our checks to 166 million people, averaging about
$1,673 per person. What may be a more relevant figure is how many
households we sent those checks to. We sent them out to about 115
million households at about $2,400 per household.
So, again, $275 billion to 115 million households--that was about 4.5
more households than the number of jobs lost. Today, with only 9
million jobs lost, not only--I mean, that is a big number, a big
number. I am not minimizing that. With 9 million jobs lost, if we just
repeat it--send out to another 115 million households--that is 12.6
times the number of jobs lost. And if we double it, it goes from $275
billion to $550 billion. That is half a trillion dollars.
I know a trillion doesn't sound like much anymore. It seems like
hundreds of billions seem more, but now that we are dealing in $1
trillion or $2 trillion, it is pocket change apparently.
I think it is important to ask: Well, how was that money spent? Did
it really--was it really spent on essentials? Was this money really
needed? Was there any hope, actually, of that money being stimulative
to our economy?
Well, we have one study from the Federal Reserve Bank of New York.
They issued it on October 13 of 2020. What they did is, since 2013,
they have been sending out in the internet a national survey to 1,300
households called the Survey of Consumer Expectations, and with COVID,
they decided to send out two special surveys--one in June and one in
August.
Here is what those survey results said. Of the $2,400 per household
in the June survey, 18 percent of that $275 billion was spent on
essential items; 8 percent was spent on nonessential; 3 percent, on
donations, for a total of 29 percent spent. This is what they call the
marginal propensity to consume, 29 percent. Of the other 71 percent,
equally divided, 36 percent of that was saved, so our Nation's savings
rate increased, and 35 percent went to pay off debt--credit card debt.
They also asked the same question about what happened to the
unemployment payments. Very similar results: 24 percent of those
unemployment payments--the plus-up to $600 per week to stay on
unemployment benefits--24 percent was spent on essential consumption, 4
percent on nonessential, 1 percent on donations for, again, the same
percent: 29 percent was the marginal propensity to consume from the
unemployment payments; 71 percent, for savings and for debt repayment.
They also looked ahead, assuming that we are going to do another
round
[[Page S7685]]
of stimulus checks. This time they asked their respondents: How would
you spend $1,500 if you got a check? This time respondents said that
they would spend about 14 percent on essential consumption, 7 percent
on nonessential, 3 percent on donations, for a total of 24 percent that
would be the marginal propensity to consume--24 percent--and 76
percent, again, on savings and debt repayment.
So I don't think you can take a look at these direct payments to
individuals as stimulative. Obviously, 18 to 24 percent was spent on
essential items. We ought to figure out how to provide that money so
that people can spend it on essentials. Again, that is only 18 to 24
percent maximum.
I do want to talk a little bit about past stimuli. I personally don't
believe they do much to stimulate the economy. I think the best way to
stimulate the economy is, again, what this administration has done:
Lower regulation to a reasonable level--nobody argues for no
regulation; we need a reasonable level--and have a competitive tax
system.
I fear, in the next administration, we may just repeat the mistakes
of the Obama-Biden administration, and here is the proof of their
mistakes. Again, remember those employment numbers: a record of about
159 million, currently 150 million people, being employed. Well, back
during the great recession, prior to that, we did have employment of
about 146 million people in January 2008. By December 2009, that had
dropped to 138 million people employed. But when President Obama took
office, he had total control of Congress--a filibuster-proof majority
here in the Senate--and, within a month, they enacted the American
Recovery and Reinvestment Act--$787 billion of proposed spending. In
February of 2009, there were 141.6 million Americans working--141.6--
and the unemployment rate was 8.3 percent. Again, it continued to dip
to December 2009 when it got down to 138 million. It took us 3 years
from February 2009 to get back to 141.6 million Americans working, and
that is with an $800 billion--roughly, $800 billion--stimulus package
that did not work, but it further mortgaged our children's future by
another $800 billion.
I wish these things worked. A quick aside: Part of that American
Recovery and Reinvestment Act--again, Democrats had total control, with
a filibuster-proof majority in the Senate. Do you know how much they
plussed-up State unemployment benefits to help the unemployed, those
8.3 percent of Americans? They plussed it up by a whopping $25 per
week, and now they are arguing that $300 per week, which I believe is
the current proposal, isn't enough. It kind of makes you wonder,
doesn't it?
So, in summary, kind of reviewing these numbers, we currently are at
6.7 percent unemployment. I don't recall ever, in U.S. history, when we
have even begun to think that we should even spend $100 billion to
stimulate an economy at 6.7 percent unemployment.
But this is different. We have underemployed; we have families in
need. There is no doubt about it. I completely support some kind of
program targeted for small businesses so they can reemploy and so they
can reopen to restore capital. Their life savings have been wiped out.
I have proposals. They have been ignored.
So what I fear we are going to do with this bipartisan package and
what the Senator from Missouri is talking about is the same thing--a
shotgun approach. We will not have learned the lessons from our very
hurried, very rushed, very massive earlier relief packages. We will
just do more of the same--another trillion dollars. It takes our debt
from $27.4 trillion to $28.4 trillion in a couple of months with doing
virtually no revisions, no improvements and, similar to what the
Senator from Missouri is talking about in terms of these economic
impact payments, no revisions at all--just spend another $275 billion
and send it out to 115 million households when we are currently at
about 9 million fewer jobs than we were in a record economy before the
COVID recession.
So, for all those reasons, I not only object to what Senator Hawley
is proposing here, but I am certainly lodging my objection to what is
barreling through--the train has left the station--on the package being
negotiated right now that is way too big, that authorizes more money,
even though we have $600 billion there just for repurposing, no new
authorization required. There are 52 Republicans who supported it, but
that is not good enough. We have to throw another $300 to $400 billion
on top, which is $300 to $400 billion more that we are mortgaging our
children's future without reforms and without targeting. So I object.
The PRESIDING OFFICER. Objection is heard.
The Senator from Missouri.
Mr. HAWLEY. Mr. President, I thank the Senator from Wisconsin for his
perspective, which I always appreciate, and, of course, I appreciate
working with Senator Johnson on some of the issues.
On this issue, I am afraid we are just going to have to differ, and I
just want to say this: Nothing could be more targeted and no relief
could be more important than relief for working people. The Senator is
right; this body has spent trillions of dollars this year alone on
COVID relief. We are getting ready to spend, apparently, another
trillion dollars more. Yet working people are told they may be last--if
they get relief at all.
I don't think the American people understand that. I know people in
Missouri don't understand it, and I would just urge Members of this
body: Go home and try explaining that to the people of your State. Go
ahead. Just try it. Try telling them why this body can bail out the
banks. We bailed out the banks to such a tune that now they have money
left over. Now we are going to take money back because we spent so much
on Wall Street and the banks in the first part of this year. That is
right.
In fact, now I understand that my Democratic colleagues don't want to
shut down all of the bank money. Who knows what we might be able to do
with that in the future? Oh, they are fine. They are more than fine.
They are doing great. Now Wall Street is doing great. Big tech, they
are doing great; the big multinational corporations, fantastic. Working
people--working people are living in their cars. Working people can't
go to the doctor. Working people can't pay their rent. Working people
can't feed their children. They should be first, not last.
And it is no answer for this body to tell them: Go get in an
unemployment line. Really? That is the response? Go get in an
unemployment line.
No, the working people of this country, frankly, deserve better. They
deserve to be the top priority just like they have made this country
the top priority in their lives and their families.
This is not the end of this fight. I am here right now on this floor.
Senator Sanders will be back in a matter of hours to ask again for the
same measure. Again, I have been proud to partner with him on this
effort, and I will keep working with whomever it takes for however long
it takes until we get the working people of this country relief.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. TILLIS. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Kennedy). Without objection, it is so
ordered.