M. Speaker. The resolution provides for consideration of the Senate amendment to H.J. Res. 45, the debt limit and statutory PAYGO resolution. The rule makes in order a motion offered by the Majority Leader or a designee that the House concur in the Senate amendment. The rule waives all points of order against the motion except those arising under clause 10 of House rule 21 and provides one hour of debate on the motion. The rule divides the question between concurring in the matter preceding title I of the Senate amendment and concurring in titles I and II of the amendment. The first portion of the question shall be considered as adopted. If the second portion fails, then the House will be considered to have made no disposition of the Senate amendment.
M. Speaker, this vote is both historic and difficult. It's historic because it's reinstating the Pay-As-You-Go law, or PAYGO. This is one tool in the effort to reduce the deficit and return fiscal common sense back to our budget. And it's difficult because this resolution includes a $1.9 trillion increase in the debt limit.
Let me begin with the debt limit. None of us are eager to increase the debt limit, but we have a responsibility to take action. The Treasury Department has informed Congress that the United States will reach the current statutory limit on the national debt on February 11th. That's next Thursday. If the debt limit is not increased before that date, Treasury will not be able to meet the obligations of the U.S. government.
Simply, Mr. Speaker, if we don't act then we will default. I can't think of a more reckless or irresponsible act. Defaulting is not an option. If the United States defaults, investors will lose confidence that the U.S. will honor its debts in the future. They would likely demand higher interest rates to compensate for the higher risk of purchasing Treasury securities. This would increase the cost of federal borrowing, result in even greater budget deficits, and require higher taxes and fewer government services. A greater portion of U.S. wealth would be transferred to overseas creditors - to China, India, and Saudi Arabia. It's also possible that those creditors would demand that the U.S. borrow in other currencies rather than dollars - putting in peril the very value and stability of the American dollar. It's clear that the responsible course of action is to raise the debt limit.
It's also clear that we're in this position because of the policies that have been implemented over the past decade. Ten years ago, we had a budget surplus. Since then, our country was attacked and the worst recession in our lifetimes took a severe economic toll on our nation's economy. But we also had 2 wars that were unpaid for, tax cuts that were unpaid for, and a prescription drug benefit that was unpaid for. Yes, Republicans and Democrats have had to increase the debt limit because of these policies and events. Unfortunately, we have to do so again today.
Now, I know there will be those who want to use this vote as a way to demagogue this issue. There will be those on my side of the aisle who will detail how the policies of the last 8 years put us in this position and there will be those who use this debate to claim that this recession is the fault of Democrats. M. Speaker, it is my hope that nobody in this Chamber would put our nation at such financial and economic risk for such petty politics.
My friend and Massachusetts colleague, Congressman Neal, said it best in the Rules Committee last night. If you voted to go to war in Iraq or Afghanistan, if you voted for the tax cuts, or if you voted the Recovery Act - then you have to vote to raise the debt ceiling.
The American people don't want us to point fingers at each other; they want us to take action. They want us to solve our nation's problems. And they want us to do so in a constructive manner. The blame game isn't what they want.
Increasing the debt limit is a responsible action, but it doesn't address the underlying problem - the problem of the deficit.
And that's where statutory PAYGO comes in. Statutory PAYGO requires all new policies reducing revenues or expanding entitlement spending enacted during a session of Congress be offset - that means paid for, Mr. Speaker - over five and ten years. In plain English, we have to pay for what we buy. While it's not the only step we can take, this is a solid step towards fiscal discipline. And I would note that the Statutory PAYGO Act establishes points of order in the House only to the extent it does so explicitly.
Why is this legislation - why is PAYGO - so important? Because our fiscal health and long-term economic prosperity depend upon it. We must find a balance between short-term deficit spending to speed along our economic recovery with longer-term fiscal discipline.
Dick Cheney famously said that deficits don't matter. Well, I believe they do matter and I'm glad to hear that my Republican friends now agree with Democrats that deficits do matter. I trust that, at the end of the day, they will vote that way too.
But whether you vote for this resolution or not, you must at least admit that President Obama and Democrats are facing this problem head on. We are making sure we responsibly meet our financial obligations; we are instituting PAYGO so that we pay for the programs that we are funding; and we expect President Obama to formalize a debt commission soon. These are important steps.
I urge my colleagues to do the right thing, to vote for this rule and for this resolution. I reserve the balance of my time.
M. Speaker, we've had an enlightening debate here today. The differences between Democrats and Republicans couldn't be clearer. And this debate couldn't come at a better time.
My friend from Texas pointed out that Republicans oppose spending for programs like Medicare and Social Security and that they favor tax cuts for the wealthy, for corporations that include Wall Street firms and big banks.
My friend from Texas and his colleagues say they don't support PAYGO and they don't support increasing the debt limit. I guess that means they'd rather play politics rather than act responsibly to fix the problems that this country faces.
President Obama said fixing this economy would not be easy and it wouldn't happen overnight. And that's clear. He took office and we implemented a bold plan to jumpstart the economy. And in the 4th quarter, we saw the U.S. economy grow at a 5.7% rate. Mark Zandi, co-founder f Moody's Economy.com and former McCain economic advisor said, quote: -We're headed in the right direct… the recovery has begun. I think prospects are that job growth will continue and we will have enough job growth to bring up unemployment and then good things will happen- end quote.
Instead of working together to fix the economy, my Republican colleagues have decided to try and use this recession for political gain. They obstructed and opposed all efforts to jumpstart the economy. They voted against the recovery act, against the jobs creation bill, and - except for one brave vote - against the health care bill that will, according to CBO, reduce the deficit.
Instead, they've dusted off their tired, old standbys - corporate tax cuts and privatization of Social Security and Medicare. Unfortunately, they are stuck in the past and are simply repeating the mistakes that put us here in the first place.
We were elected to do the responsible thing, to do what's right. We were elected to solve problems and to make this country and this world a better place. Democrats say we cannot default on our debt, and that we will reduce that debt through PAYGO, bending the cost curve on health care, and freezing spending. I believe we need to look at all parts of federal spending including wasteful and unnecessary spending at the Defense Department, but it's clear we need to prioritize our spending.
In fact, Democrats say we're going to cut capital gains taxes - something the Republicans have been touting for years - but Republicans are opposing that too, simply because President Obama is the one proposing it.
M. Speaker, there's a time and place for politics. I get that. But, to paraphrase John McCain, sometimes you have to put country first. It's unfortunate that my Republican colleagues would rather play politics instead of acting responsibly to attack our country's problems.
I urge a -yes- vote on the previous question and on the rule.
With that, I yield back the balance of my time and move the previous question.
