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Senate the Senate Met at 2 P.M E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 111 CONGRESS, SECOND SESSION Vol. 156 WASHINGTON, MONDAY, SEPTEMBER 20, 2010 No. 126 Senate The Senate met at 2 p.m. and was appoint the Honorable MARK R. WARNER, a Mr. LEVIN. Mr. President, I yield the called to order by the Honorable MARK Senator from the Commonwealth of Vir- floor. R. WARNER, a Senator from the Com- ginia, to perform the duties of the Chair. The ACTING PRESIDENT pro tem- monwealth of Virginia. DANIEL K. INOUYE, pore. The Senator from Arizona is rec- President pro tempore. ognized. PRAYER Mr. WARNER thereupon assumed the f The Chaplain, Dr. Barry C. Black, of- chair as Acting President pro tempore. fered the following prayer: f PRINCIPLES FOR ECONOMIC Let us pray. RECOGNITION OF THE ACTING GROWTH How can we say thanks to You, gra- MAJORITY LEADER cious God, for the things You have Mr. KYL. Mr. President, I would like done for us? You shower us with The ACTING PRESIDENT pro tem- to speak a bit about the two competing undeserved blessings, and You brought pore. The Senator from Michigan is philosophies of economic growth. The Your salvation to our fragile planet. recognized. first version I will discuss is the so- The voices of 10 million angels couldn’t f called Keynesian economics, which has been the basis of the Obama adminis- express our gratitude. You alone de- SCHEDULE serve our praise. tration’s economic policy since Janu- We ask now that You would inspire Mr. LEVIN. Mr. President, today in ary 2009 and, I would add, with little to and guide our lawmakers in their work the Senate, there will be a period of no success in reviving our economy and today. Send out Your light to lead morning business until 3 p.m., with reducing unemployment. them to Your holy purposes. Lord, Senators permitted to speak therein Keynesian economics relies on the keep them from the fatigue of doubt, for up to 10 minutes each. Following theory that in recessionary times, in- depression, and despair as You lead morning business, the Senate will re- creased government spending can take them to the buoyancy of hope. By Your sume consideration of the motion to the place of private sector activity, sustaining grace may their hearts be proceed to S. 3454, the Department of hence the administration’s nearly $1 steadied, purged of self, emptied of Defense authorization bill. trillion stimulus package, the Cash for strain and stress, and filled with peace As previously announced by the ma- Clunkers Program and a litany of other and poise. We pray in Your merciful jority leader, there will be no rollcall government programs, transfer pay- Name. Amen. votes during today’s session of the Sen- ments, and temporary tax credits. This ate. The next vote will occur at 2:15 f administration’s insistence on enacting p.m. tomorrow, Tuesday, September 21. these temporary Keynesian policies to PLEDGE OF ALLEGIANCE That vote will be on the motion to in- stimulate consumption is misguided The Honorable MARK R. WARNER led voke cloture on the motion to proceed and has ultimately failed. the Pledge of Allegiance, as follows: to the DOD authorization bill. As the Wall Street Journal editorial- I pledge allegiance to the Flag of the f ized in a piece called ‘‘The Obama United States of America, and to the Repub- Economy:’’ lic for which it stands, one nation under God, MEASURE PLACED ON THE Never before has government spent so indivisible, with liberty and justice for all. CALENDAR—S. 3793 much and intervened so directly in credit al- f Mr. LEVIN. Mr. President, I under- location to spur growth, yet the results have APPOINTMENT OF ACTING stand that S. 3793 is at the desk and been mediocre at best. In return for adding PRESIDENT PRO TEMPORE due for a second reading. nearly $3 trillion in Federal debt in 2 years, The ACTING PRESIDENT pro tem- we still have 14.9 million people unemployed. The PRESIDING OFFICER. The pore. The clerk will read the title of What happened? clerk will please read a communication the bill for the second time. Well, I will mention three problems to the Senate from the President pro The bill clerk read as follows: with Keynesian economics that I think tempore (Mr. INOUYE). A bill (S. 3793) to extend expiring provi- help to answer that question. First of The bill clerk read the following let- sions and for other purposes. all, someone without a job is not going ter: Mr. LEVIN. Mr. President, I object to to be fooled into spending more money U.S. SENATE, any further proceedings with respect to because of a one-time payment that he PRESIDENT PRO TEMPORE, or she received from the Federal Gov- Washington, DC, September 20, 2010. the bill. To the Senate: The ACTING PRESIDENT pro tem- ernment. People only change their Under the provisions of rule I, paragraph 3, pore. Objection is heard. The bill will spending habits when they know they of the Standing Rules of the Senate, I hereby be placed on the calendar. will have a greater consistent income ∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. S7187 . VerDate Mar 15 2010 22:02 Nov 24, 2010 Jkt 089060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\RECORD10\RECFILES\S20SE0.REC S20SE0 mmaher on DSK69SOYB1PROD with CONG-REC-ONLINE S7188 CONGRESSIONAL RECORD — SENATE September 20, 2010 over time, such as when they receive a and getting the economy back moving spending; thus, leaving resources in the raise at work. In fact, the evidence has again. private sector. It also means not rais- shown that people either save one-time Well, Treasury Secretary Geithner ing taxes on anyone, especially in these rebates or shift future consumption was testifying before the Congress difficult economic times—certainly not forward but do not permanently in- about the possibility of imposing pen- on the very employers that we count crease their work effort or incentive to alties on China because of its currency on to hire more workers. Who employs invest, which is what is needed to policies. According to an article in Fri- 25 percent of our workplace? Small jump-start economic growth. day’s Washington Times—on the front businesses. Who would bear the brunt Second, Keynesian economics as- page: of tax increases in the upper two sumes the government has the fore- While taking his toughest stance to date brackets? Small businesses. So the last sight to determine in advance which on China’s need to speed up the pace of cur- thing we should be doing is raising spending programs would best create rency reform, Treasury Secretary Timothy taxes on anyone, most especially our economic growth. Well, the obvious F. Geithner echoed China’s point that doing small businesses to which we are look- problem with this assumption is, Con- that by itself will not eliminate the gigantic ing to produce more jobs. $230 billion trade deficit with China or re- gress does not spend taxpayers’ money There is plenty of evidence that the wisely. We see time and time again store millions of manufacturing jobs lost in the recession. economic theory I am talking about how straightforward pieces of legisla- works in practice. We have abundant Continuing to quote from the article: tion get loaded up with special projects evidence of what works and what does ‘‘Americans also must save more and in- which are costly and of questionable not. A recent study was conducted by value to the public. This has been one vest more while consuming less of the world’s bounty,’’ he said, ‘‘to bring a better Harvard economists Alberto Alesina of the problems with the stimulus balance to trade.’’ and Silvia Ardagna, who recently stud- package. He is right. America does need to ied more than 100 fiscal adjustments in Third, if the problem is lack of con- 21 separate countries over the past 40 sumption and Americans are too broke save more and invest more. That is the way you restore not just the manufac- years. The countries are all in the to spend, how can the government OECD. These are the more economi- spend for us? We are the government. turing jobs lost in the recession but a lot of the other jobs as well. cally advanced countries of the world. It is our tax money that is being spent. The fiscal adjustments that led to We have to pay it back if it is bor- Reporting on the same story in an- other newspaper, Secretary Geithner is economic expansions were generally rowed. based around spending cuts. By con- The authors of a textbook entitled quoted as saying: We are concerned . that the pace of ap- trast, the adjustments that led to eco- ‘‘Economics: Public and Private nomic recessions were based around Choice,’’ write: preciation has been too slow. The most im- portant things we can do to make manufac- tax increases. Thus, spending cuts, not There are no free lunches. Regardless how turing stronger in the United States are tax hikes, appear to be the more effec- they are financed, activities undertaken by going to be about the policies we pursue in tive strategy for deficit reduction. the government will be costly. When govern- the United States. Using data from more than 90 dif- ments purchase resources and other goods and services to provide rockets, education, I think he is right and that the poli- ferent OECD countries, Alesina and highways, health care, and other goods, the cies we have to pursue are the policies Ardagna also compared the relative resources used by the government will be un- of savings and investment—exactly benefits of spending increases and tax available to produce goods and services in what he said.
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