[Congressional Record Volume 167, Number 192 (Tuesday, November 2, 2021)]
[Senate]
[Pages S7580-S7581]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Government Spending
Mr. THUNE. Mr. President, in all of the time I have been in
Washington, in both the House and the Senate, I have seen Republicans
in control, in the majority, and I have seen Democrats in the majority.
I have been on both sides of that, and I have seen Republican
Presidents and Democrat Presidents. But one thing that doesn't change
is that, when Democrats get power in Washington, they want to expand
government, they want to grow government, they want to spend money.
If you just look throughout history, at least since the time I have
been here, that is just a fact. We have already seen them this year--
since the President came to power and the Democrats have had narrow
majorities in the House and Senate, which they have interpreted somehow
as being a mandate, but is a dead-even U.S. Senate--push through on a
partisan basis a $1.9 trillion spending bill which expanded government.
There is a $1.2 trillion infrastructure bill that has passed the Senate
in a bipartisan way, on which there was some agreement, and it is still
awaiting action in the House of Representatives.
Already--already--in this new administration, that represents over $3
trillion in spending, which is on infrastructure and some core hard
infrastructure with respect to the bipartisan bill.
The other bill was of a lot of things that the Republicans felt
weren't necessary, particularly after the five bills we passed last
year in 2020 in response to the pandemic.
By the way, every one of those was on a bipartisan basis. So a lot of
spending went on in responding to the pandemic--trillions and trillions
of dollars.
The first thing that happened when the Democrats came to power was
that they passed another $2 trillion, and then an infrastructure bill.
So we have already got over $3 trillion spent at a time when we have
$30 trillion in debt--and growing by the day. Yet the Democrats' now
proposal is to spend $3.5 trillion. Some on their side want to spend up
to $6 trillion to grow and expand the government.
So I guess it doesn't come as any surprise that that is what
Democrats do. When they gain power, when they get majorities, they want
to grow; they want to expand government; they want to spend more money
and raise taxes to do it. It is almost like kind of a rite of passage
in that, if you are going to be a good Democrat, this is what you do.
As I said before, you know, after last year, in coming through the
pandemic at a time when the country had to and both sides agreed to
address the concerns and the needs that were out there--to keep people
employed, to keep businesses operating and workers employed, to support
our healthcare industry, to support our schools--there were enormous
amounts of money that went into the economy last year.
You would think that when the Democrats took power this time that
they might want to dial it back and just think about seeing how the
economy reacts before going on a full-blown effort to grow and expand
government once again, but what we saw right out of the gate,
immediately--and, again, in a very partisan way--was a $2 trillion
spending bill.
I say that again because we all know that the amount of debt that we
have today dwarfs, eclipses, anything--anything--in history even close
to what we are talking about. Even if you go back to the thirties and
the big expansion of government then--and, by the way, I think part of
this is that President Biden was convinced that he could be the next
FDR. And to do that, you have got to spend lots of money. And so trying
to find stuff to spend it on has been a challenge. They have come up
with a big list, and a list, again, that would be financed with a lot
of tax increases that, I think, would be incredibly harmful to the
economy.
But what I want to talk about briefly this morning is just what has
happened as a result of the spending that has already occurred and
what, I think, is going to happen if the massive amount of spending
they want to do from here forward actually happens.
Like I said, we will do everything we can to stop it. I think it is
just an absolutely disastrous prescription for the economy right now
and as to what people are already experiencing in their daily lives.
Last week, we learned that economic growth for the third quarter had
fallen short of expectations, largely driven by a deceleration in
consumer spending and supply problems of goods and labor.
Meanwhile, American families continue to deal with what is rapidly
becoming a serious, long-term inflation problem that is attributable,
in many respects--again, as I will get to later--to the amount of
spending and the number of dollars that have been flooding the economy.
Last month, consumer prices rose at the fastest pace in 30 years. A
recent estimate from the chief economist at Moody's Analytics suggested
that an average household is having to spend an additional $175 a month
on basics, thanks to inflation--175 bucks a month.
That may not sound like much to a wealthy Democrat politician, but
that is a lot of money for an ordinary American family. Having $175 a
month can be the difference between putting something away in savings
and living paycheck to paycheck. It can be the difference between
whether or not you can afford braces for your child or whether you have
the money to replace a broken appliance or to make a needed car repair.
Our inflation problem has gotten to the point that it has overtaken
wage growth. Inflation is growing faster than wages, which means that
many American families have received a de facto pay cut. The growth in
wages isn't keeping up with the increase in costs in their lives.
So how did we end up here?
As I said, a lot of the problem traces back to this past March, when
the Democrats decided to pour a lot of unnecessary government money
into the economy under the guise of COVID relief. By the time the
President and the Democrats took office in January, Congress had passed
no fewer than five bipartisan COVID relief bills--the most recent of
them in December. The December COVID relief bill that we passed
contained almost $1 trillion in funding and met, essentially, all of
the pressing COVID needs the country was facing.
But that didn't matter. That didn't matter to the Democrats. Now that
they were in charge, they were eager to take advantage of the
opportunity the
[[Page S7581]]
COVID crisis presented to push their Big Government agenda. So they
decided to pass another ostensible COVID bill less than 3 months after
the December bill and before a lot of money from the December bill had
even been disbursed.
They gave $129 billion to schools, even though schools had spent just
a small fraction of the $68 billion they had already been given.
They created a staggering $350 billion slush fund for States, despite
the fact that the majority of States already had the money that they
needed to deal with the pandemic, and many, many States were operating
in a surplus situation.
They extended enhanced unemployment benefits until September of 2021,
despite the millions--literally millions--of available job openings;
and they made part of the unemployment compensation tax-free, creating
incentives for Americans to stay on unemployment instead of returning
to work.
Among other things, they provided an additional $21 billion in rental
assistance, none of which has yet been needed.
In short, their so-called American Rescue Plan flooded the economy
with a lot of unnecessary government money, and the results were
predictable: inflation.
The definition of ``inflation'' is too many dollars chasing too few
goods and services, and that is exactly the situation the Democrats
created. They sent too many dollars into the economy, and the economy
overheated as a result.
You don't have to take my word for it. Here is what former Obama
economic adviser Jason Furman had to say recently when discussing our
current inflation problem:
The original sin was an oversized American Rescue Plan. It
contributed to both higher output but also higher prices.
That was from Jason Furman, Obama's economic adviser.
That quote from Mr. Furman appeared in a recent New York Times
article that also noted:
But some economists, including veterans of previous
Democratic administrations, say much of Mr. Biden's inflation
struggle is self-inflicted. Lawrence H. Summers is one of
those who say the stimulus bill the president signed in March
gave too much of a boost to consumer spending . . . Mr.
Summers, who served in the Obama and Clinton administrations,
says inflation now risks spiraling out of control and other
Democratic economists agree there are risks.
So what are congressional Democrats doing in response? Well, they are
planning to flood the economy with even more government dollars. That
is right. Instead of keeping a sharp eye on government spending to make
sure our inflation situation doesn't get worse, Democrats are planning
to double down on the strategy that got us into this position in the
first place.
Democrats are trying to finalize a new--now it is $1.75 trillion--
tax-and-spending spree, the so-called Build Back Better plan, on top,
as I said, of the $1.9 trillion spending spree from earlier this year.
And I say $1.75 trillion, but Democrats have only arrived at that
number through a combination of shell games and budget gimmicks. The
real cost of this proposal over 10 years is going to be way, way
higher--way, way higher; some estimates in the $4 trillion range.
So, once again, Democrats want to flood the economy with government
dollars, including billions for such priorities as tree equity--tree
equity--and environmental justice programs at well-funded colleges and
universities. That is right--Ivy League schools that don't have
problems financially, where students pay tens of thousands of dollars
in tuition every year, will get tax credits if they teach courses on
environmental justice.
Mr. President, I ask unanimous consent that I be able to complete my
remarks before the vote begins.
The PRESIDING OFFICER (Mr. Padilla). Is there objection?
Without objection, it is so ordered.
Mr. THUNE. Mr. President, I am forcibly reminded that the definition
of ``insanity'' is the doing the same thing over and over again and
expecting different results. What exactly do Democrats think is going
to happen to inflation if they pass this $1.75 trillion legislation? Do
they think that if one round of excessive government spending triggered
inflation, another round of excessive government spending is going to
cure it? Do they think that dumping more fuel into an already
overheated economy is somehow going to put out the inflationary fire?
If they do, they have got another think coming.
The only thing Democrats' latest spending spree is going to do is
make our inflation problem worse. We are already looking at serious
inflation lasting well into next year. Add Democrats' Build Back Better
spending spree to the mix, and we could be looking at a very, very long
period of inflated prices and reduced spending power for American
families.
Democrats were warned that their March spending spree could spur
inflation; they passed it anyway. So I don't have a lot of hope that
Democrats are going to heed concerns about inflation, even coming from
their own economists, when it comes to their current tax-and-spending
plan, but I and every other Republican will stand firm against this
reckless tax-and-spending spree and will continue to urge our
Democratic colleagues to rethink their spending agenda before inflation
soars out of control and American families have to suffer the
consequences.
I yield the floor.
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