March 2, 2010 CONGRESSIONAL RECORD — HOUSE H1011 Mr. ROE of Tennessee. Just a very focus on economic issues that affect Street speculation that drove our econ- short comment. This weekend, Dr. Americans who either make up the omy and drove the global economy off GINGREY, Mr. Speaker, I had three middle class or are striving to enter the cliff and put us into this deep hole friends, people I know, diagnosed with the middle class. We all know that our that we have been digging ourselves some very serious illnesses. It just hap- country has historically been at its out of. pened. These three men that I know ex- best when we have had a large middle So as millions of middle class fami- tremely well, all of them, are getting class and our economic policies reflect lies look to us and ask when their re- the highest quality care anywhere in middle class values, and that is why covery effort will bring relief to their the world, and they don’t have to go far when we decided to settle upon our town on their street, they deserve to from home to get it. I think one of the founding principles, we decided that we know what we are going to be doing to things that the American health care wanted to fight for families by pro- spur job creation, insist on fair execu- system has brought to us are new inno- viding them access to quality, afford- tive compensation, and end speculation vations, lengthening of our life span, able health care; to provide them and on Wall Street. and the procedures that are done today their children with the type of world Now, one of the things that we know to extend and improve the quality of class education they will need to com- is that it is very common for politi- life. I am glad to hear no longer, and I pete in a global economy; to make sure cians and groups across the political heard it for a year, and it was very that we have a fair wage system for all spectrum to try to claim the populist bothersome and troublesome to me, to employees in this country; to make mantle. But let me tell you, and I am hear the other side talk about how bad sure that our trade policies provide a going to let my colleagues expand on health care was in America. We cer- level playing field to American work- this, the Populist Caucus that we all tainly have a problem getting health ers and American manufacturers who came together to found was not based care at an affordable price to all of our compete with trading partners who upon a bunch of people running citizens, there is no question that is just frankly don’t quite live up to our through the streets with torches and pitchforks asking for blood. We are true, but the care that everyone gets is standards, whether it is child labor, ex- there because the problems of the mid- good care. ploitation of workers, environmental I can tell you that I have done it my- issues, those are the types of issues dle class are real. The concerns of our self for people who couldn’t pay. And I that we want to focus on as we chart a constituents reflect the concerns of would stand here and hear people talk, new future for this country to promote America, and we want to come to- and I am one of the few people on this and expand the middle class that we all gether and talk about serious answers to real problems to help change the House floor who had to get up and go to are so proud to have been a part of. lives of middle class Americans. the emergency room at 3 in the morn- One of the things that we talked So with that, I am going to yield to ing and see a patient who doesn’t have about as we were trying to dig our- selves out of the greatest economic cri- my colleague from Ohio before I yield health insurance and try to work him to my colleague from Wisconsin to talk through a system and get them care. It sis since the Great Depression was what type of a blueprint for recovery about some of the critical economic isn’t easy. We can do better, and we issues she is hearing about from her sure can do better than this bill right we wanted to offer to the American people that was going to be a reflection constituents and why this Populist here. Caucus response is so critical moving Mr. GINGREY of Georgia. I thank Dr. of the values that we grew up with and give a strong message that, after a forward. ROE for being with me tonight, Mr. Ms. SUTTON. I thank the gentleman bailing out Wall Street, the American Speaker. There are 14 health care pro- for yielding, and for your strong lead- taxpayers deserved help on Main viders on the Republican side. Ten of ership of the Populist Caucus and the Street, and that it was not unreason- them are M.D.s. There are five M.D.s mission that we are on to restore the on the Democratic side. We have two able to ask the very people on Wall promise of the middle class, to stand doctors in the Senate. We probably Street who got us into this mess to up for the middle class, and to stand up have 500 years in clinical experience in help pay for the tab on helping bail out for those who aspire to the middle the aggregate. Let us help. Main Street. class, to make our country work for I am proud to be joined by my In closing, I want to refer to my col- those folks who are aspiring to the friends, the gentlewoman from Ohio league who was here a number of years middle class. ago, Dr. Roy Rowland, a member of (Ms. SUTTON) and the gentleman from We are not something that is com- this body when the Democrats were in Wisconsin (Mr. KAGEN), but one of the plicated. The Populist Caucus believes the majority. Back in the early 1990s, things that I want to talk about at the that strong, immediate action must be Dr. Rowland, a family practitioner beginning is the things that we hear taken to create jobs in the United from Dublin, Georgia, he had a bipar- over and over back in our district, be- States and to put an end to the exces- tisan bill back then that he worked cause all of us have been out talking to sive greed of Wall Street that brought very closely on with his Democratic our constituents, going to town hall us to the brink of disaster. And so I am colleagues and his Republican col- meetings, Congress on Your Corner and proud to join with you, Representative leagues, and he presented that bill. I the other events, and the one thing I BRALEY and Representative KAGEN, to think it was called the Bipartisan hear from my constituents over and stand up and speak to the American Health Reform Act of 1994, and he of- over is this question: When do I get my people about the fight we are waging fered that in lieu of HillaryCare. Unfor- bailout? on their behalf because that’s what tunately, the Democratic majority This is a legitimate question that being a populist is really about. didn’t accept it. Don’t make the same Americans deserve an answer to from When I go home, as when you go mistake this time, Mr. President. Let’s Democrats and Republicans, because if home, I hear all about the need to fa- do it in a bipartisan way and in a you are somebody who has lost your cilitate employment opportunity for small, incremental way. job or you’ve lost your home or you’ve the people that I represent in northeast lost your business or you’ve lost your f Ohio. All they want is a government health care coverage during this crisis, that will work with them and for them, BLUEPRINT FOR RECOVERY you need to know what is my Federal to facilitate those jobs, jobs, jobs that The SPEAKER pro tempore. Under Government doing to help me out. So are so needed out there. We have heard the Speaker’s announced policy of Jan- when we talk about our response, we recently that there is a recovery under- uary 6, 2009, the gentleman from Iowa are going to do it by talking about way, and there are some signs of recov- (Mr. BRALEY) is recognized for 60 min- these three core values: The Populist ery, and we have certainly seen a lot of utes as the designee of the majority Caucus wants to find a blueprint for re- signs of recovery on Wall Street, but leader. covery that is going to spur job cre- there can be no such thing as a jobless Mr. BRALEY of Iowa. Mr. Speaker, I ation; it is going to implement fair recovery, and we have started to hear was very proud to found the Populist compensation for executives who that term bounced about. Caucus with a large group of my helped put us in this problem; and, fi- The Populist Caucus is here to say friends in the Democratic Caucus to nally, bring an end to excessive Wall that there is no recovery if our folks

VerDate Nov 24 2008 03:41 Mar 03, 2010 Jkt 089060 PO 00000 Frm 00039 Fmt 4634 Sfmt 0634 E:\CR\FM\K02MR7.075 H02MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1012 CONGRESSIONAL RECORD — HOUSE March 2, 2010 don’t have jobs, because this is not just In the words of Teddy Roosevelt, who, that, the Populist Caucus has put for- about a country that stands up for the on August 31, 1910, in his speech enti- ward a blueprint for America’s future, well-to-do. This is the People’s House. tled, ‘‘The New Nationalism,’’ set for- and I yield back my time. This body is about making sure people ward the idea of the progressive move- Mr. BRALEY of Iowa. Well, that’s a have opportunity, ordinary people have ment and the Populist Caucus—and I great segue because we not only are opportunity. And what we will discuss, will quote him in part because it was a talking about values; we are talking and when we look back a little bit, it very long speech: about solutions. We’re talking about becomes apparent that the economy, ‘‘Exactly as the special interests of legislation that is going to help us cre- even before the excesses of Wall Street cotton and slavery threatened our po- ate jobs by generating new revenues, came to their full fruition, even before litical integrity before the Civil War, not putting this on the back of the the economy was not working for ordi- so now the great special business inter- middle class, but helping the people nary Americans, we saw a decade of ests too often control and corrupt the who got us into this mess assume some flat wages in this country while we men and methods of government for of the responsibility. And I think one continued to see skyrocketing health their own profit. We must drive the of the cornerstones of our blueprint for care costs. We saw the GDP rise, and special interests out of politics; that is recovery is this issue of fair compensa- we saw productivity rise in this coun- one of our tasks today. Every special tion. And my good friend from try, but the American people who were interest is entitled to justice, full, fair Vermont, Congressman PETER WELCH, doing the work were not sharing in the and complete. And now mind you, if has introduced a bill called Wall Street prosperity. there were any attempt by mob vio- Bonus Tax Act. I am going to let him lence to plunder and work harm to the explain what that bill does and how it b 2100 special interests, whatever it may be, helps achieve this blueprint for recov- So we look forward to developing that I most dislike. And the wealthy ery by putting some incentives for Wall policies—and that’s what the blueprint man, whomsoever he may be, for whom Street to help rebuild Main Street. is all about—that will help deliver sus- I have the greatest contempt, I would Congressman WELCH, I yield to you tainable, quality jobs for the American fight for him, and you would if you at this time. people that will fairly compensate were worth your salt. He should have Mr. WELCH. Thank you very much. I them and put an end to the excessive justice, for every special interest is en- appreciate the opportunity to speak and disparate compensation that those titled to justice, but not one is entitled about trying to get jobs to start going at the top of the food chain have been to a vote in Congress, to a voice on the up along with the stock market. taking for far too many years at the bench, or to representation in any pub- You know, it was only 1 year ago in expense of everyone else. lic office. The Constitution guarantees one week that Wall Street, the stock And so with that, I yield back to the protection to property, and we must market was crashed to its lowest level gentleman. And I thank you again for make that promise good; but it does in years. In that past year, it has re- your leadership; it’s been stellar on not give the right of suffrage to any covered; but while it has recovered, un- this subject. I look forward to the mis- corporation.’’ We the people have employment is still hovering in the sion ahead. rights, corporations don’t. range of 10 percent, underemployment Mr. BRALEY of Iowa. I thank the Now, over the short period of history is in the range of 17 or 18 percent. gentlewoman for yielding. that we’ve been here in Congress, be- There are over 27 million Americans I think one of the things that we’ve ginning in 2006, with Representatives who are seeking work or not working heard a lot about, Dr. KAGEN, is we’ve SUTTON and BRALEY and WELCH, we enough, and we are not going to have heard people try to explain what went took forward some ideas that we gath- an economic recovery until those folks wrong on Wall Street and this concept ered from people. And everywhere I go are back to work. that sometimes big financial institu- in Wisconsin, Mr. BRALEY, people are How did this happen? It happened, we tions are just too big to fail. Now, I telling me the same thing: We want our know, because of the excessive lending, don’t know how it is up in northeastern money back, we want our jobs back. reckless lending largely engineered by Wisconsin; but in Iowa, if something is For too long, our jobs have been Wall Street firms that stood to gain an too big to fail, it’s just too big. So shipped overseas. Instead of our values awful lot of profit. What happened? We, maybe you can help enlighten us a lit- being shipped overseas, it’s been our the American taxpayer, had to bail out tle bit about some of the economic jobs. And here on my left is a short pic- Wall Street, $750 billion. People didn’t policies that we pursued as a country ture of where the jobs have gone. want to do it, but they had a gun to the before Barack Obama became Presi- During the previous administration head of the American economy, and the dent that have contributed to the enor- under George Bush, just before Presi- collateral damage of inaction would mous challenge we have faced this past dent Obama came into office in Janu- have been much more havoc to people’s year in trying to stabilize the economy ary, we had lost 700,000-plus jobs; this pensions, to unemployment, and to before we moved on to a broader re- January, 2010, 20,000. We are moving up Main Street. But 1 year later, Wall sponse to real meaningful financial re- in the right direction. And, yes, we Street is back, but lending by Wall form. need to generate more jobs, but how Street to our small businesses has gone Mr. KAGEN. I thank the gentleman did we get into this mess that started down, not up. If we are going to get for yielding and for putting together really back in 1910 and we’re not done jobs back, if we are going to get people the Populist Caucus. yet? We’ve had two wars at the same back to work, we need our banks—and Once again, as Mr. BRALEY has point- time without paying a dime for it; it tends to be our local banks—to start ed out, we’re populists because we are we’ve had two tax cuts to the rich doing some lending. They have been standing with our feet on the factory without paying for a penny; we’ve had doing the job, but Wall Street hasn’t. floor. We don’t have our heads sitting a $400 billion handout to the big drug What they’ve been doing in the past in a board room on a corporation on companies on Wall Street without pay- year—and quite successfully, they’re Wall Street. We do not share their val- ing a nickel for it. And then at the tail very good at it—is returning to the ca- ues. We have those working class val- end of the last administration we had a sino economy. They’ve made an enor- ues that ordinary people have. looting of the United States Treasury mous amount of money by buying and This battle that we’re in now, this of nearly $1 trillion while they fed selling derivatives, commodities, and battle for America’s future to create their friends on Wall Street, again, currencies. And how did they do it? the jobs that we need to work our way without paying a single dime for it. With the help of the American tax- through today’s troubled times and Well, in Wisconsin, much like in Ohio payer: one, the $750 billion TARP work our way back into prosperity, and everywhere else across the coun- transfer; second, the open window at this battle that we’re in didn’t just try, including Iowa, we have a saying, the Federal Reserve where those banks start 10 years ago, it just didn’t begin you know, there is no free lunch, we had access to 0 percent interest money. with 10 years of net zero job creation. I have to pay our bills. Now, they’ve been so successful that will take us back a century because it’s So we have to pay our bills, we have they have set aside this past year for really not 2010, it’s 1910 all over again. to live within our means; and to do their bonus pool $150 billion.

VerDate Nov 24 2008 03:41 Mar 03, 2010 Jkt 089060 PO 00000 Frm 00040 Fmt 4634 Sfmt 0634 E:\CR\FM\K02MR7.077 H02MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 2, 2010 CONGRESSIONAL RECORD — HOUSE H1013 They had three choices as to what where folks make their money by decisions that we’ve lost that Amer- they could do with that money: one, showing up for work, by investing in ican ingenuity. they could have added it to their bal- their community, by hard work for the Well, we haven’t lost it, we all know ance sheets, strengthened it in order to long term, by being satisfied with a that. This is the greatest country in basically fight another day so that if steady and sustainable rate of return the history of the world and our econ- there was a downturn, they would be and profit—which we need in a capi- omy is the strongest. And, yes, we are able to absorb it themselves and not talist economy—by treating their being challenged right now, but this is come hat in hand to the taxpayer. Sec- workers right and by paying our fair when we are at our best. And that’s the ond, they could have lent it out. If share? That’s the question. exciting part. This is a moment for us you’re getting 0 percent interest The Populist Caucus is very strongly all to come together, put our arms money from the Fed, you’ve got a local united in the view that hard work around each other and say, what’s small business or a young family try- should be rewarded, that entre- great about America? Our worth ethic, ing to buy their first home and you preneurs, job creators, people who our ingenuity, our technology, our in- lend it out at 5 or 6 percent, most peo- make money because they invest in novation, this is what makes it. But we ple would say that’s a pretty good re- their economy, because they invest in have to recognize that some of these turn. They didn’t do that. their workers, that is to be rewarded policies—certainly when this adminis- The third thing that they could do— and encouraged. In fact, we have to do tration started, a mere 13 months ago, and unfortunately they did do—is de- it if we’re going to have an economy we were losing 720 jobs per month. cide to put that money in their pocket that works and expands rather than an That’s incredible. Now we are in a with a bonus. That’s good for them, but economy that is based on flipping place where fortunately it’s moving in it certainly hasn’t been good for the trades, about speculation, and financial the right direction—I think it was American economy. engineering. 20,000 or 30,000 jobs per month. Now, So our legislation, the Wall Street So this Wall Street Bonus Act would that’s not good, we want to gain, we Bonus Act, is very simple. It says that put some money into lending and help want to be at 100,000-plus; but, boy, all those bonuses on Wall Street that our small entrepreneurs. And I am very that is certainly moving in the right went to banks that received taxpayer grateful that we have the strong sup- direction, and that is what I am glad to assistance through the TARP program, port of so many Members of Congress see. those bonuses above $50,000 would be for this. b 2115 taxed at 50 percent. And every single I yield back. dollar that was collected would then be Mr. BRALEY of Iowa. Well, I thank Now, I come from a State, Florida, made available to the Small Business you for those very insightful com- which had 15 years of incredible pros- Administration to work with our local ments. perity, a lot of growth. For the people banks that have been making loans to I think everything that we talked in my community, their property val- lend to our job-creating small busi- about earlier on why we formed the ues went up, and their businesses were nesses around the country. So we Populist Caucus, to promote and ex- expanding. All good. The American would be taking a dividend for and on pand the middle class by emphasizing Dream was happening over and over behalf of the taxpayers who basically economic principles, that will create and over again. Yet, when the banks put that money up in the first place, policies that help that to happen. We stopped lending, as we’ve been talking and we would be specifically making know that small businesses make up a about, well, guess what? The merry-go- that money available for lending with huge part of the middle class. We also round stopped, and a lot of people are a partnership of the SBA and our small know that they are a huge driving en- hurting right now. They are hurting banks. gine for creating new jobs in our econ- psychologically; they are hurting emo- Now, this is important for a couple of omy. tionally; they are hurting physically. reasons: number one, the money that That is why I am happy to recognize The worst thing, as I know the gen- was made on Wall Street, that $150 bil- my good friend from Florida, RON tlelady from Ohio talks about, is not to lion bonus pool, yes, it was smart peo- KLEIN, who has been a strong advocate have that job, not to have that ability ple buying and selling and trading de- for small businesses during his time in as a provider, a man or woman of a rivatives, but the question for us is, Congress and is going to be sharing household, to bring that paycheck when we put taxpayer dollars to work, with us some of the things that we can home, to get up in the morning and is it good for the American taxpayer? work on together to try to create the know you’re going to do something Is it good for the Main Street econ- types of incentives that will help small productive and to make that example omy? And, obviously, if it just goes businesses take the risk with sound for your children. We want to make into the pockets of the Wall Street economic principles and lead us on a sure that people have that opportunity, traders, it does a lot of good for them, path of job recovery. and that’s what we are working toward but no good for our broad economy; With that, I would yield to my friend. right now. and our fundamental responsibility is Mr. KLEIN of Florida. Well, I thank Well, as to this ‘‘spur job creation’’ to help people get back to work. the gentleman from Iowa. And as al- part of the Blueprint for Recovery, The second is that the bonus culture ways, it’s great to be here with our there are two points I want to bring up: really is very destructive because what friends from the Midwest and from the One is the ‘‘buy American’’ concept. it encourages is placing a big bet, bet South. We represent the whole coun- It’s real simple. Every opportunity, red, bet black, if you win, you make a try, and it’s such a great thing to be when it comes to sourcing goods, serv- lot of money, if you lose, as we’ve seen, here, as we all got elected a couple of ices, and things like that, needs to be the banks can come to the taxpayer years ago and we have learned and lis- done in the United States. If there is and get bailed out. And people are furi- tened very closely to what people are anything that we can certainly pro- ous about that, rightly so. So it is time saying back home. mote, it’s our providing those goods for us to make a basic statement here I know the gentleman from Wis- and services—our local businesses. that will reward investment, will re- consin talked about jobs and sort of Your neighbor down the street, one you ward hard work, but we’re not going to where we’ve come from, and I know the go to a church, to a synagogue, or to a have the taxpayers be on the hook for gentlelady from Ohio did the same supermarket with or one you coach people who want to gamble. thing. The ‘‘where we’ve come from’’ Little League with is someone who The final thing really is this: we face part didn’t just start in the last 13, 14 works in the community. We want to a question about what business model months; unfortunately, it has been give that businessperson and his or her we want America to follow. Do we want going on for a long time. A lot of that employees or the people he works with a business model where you make was decisions made in some cases by an opportunity to be that source for money by financial engineering, by government, sort of incentivizing big government contracts and everything having the quickest computer trading decisions to send business overseas, en- else—not to go overseas. We all under- program, by a lucky bet on a specula- courage that through tax policy, and stand the issue of free trade and all tion? Or do we want a business model some of it has just been people making that, but free trade is fair trade, and

VerDate Nov 24 2008 03:41 Mar 03, 2010 Jkt 089060 PO 00000 Frm 00041 Fmt 4634 Sfmt 0634 E:\CR\FM\K02MR7.079 H02MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE H1014 CONGRESSIONAL RECORD — HOUSE March 2, 2010 we want to make sure that, in this Iowa (Mr. BRALEY) just talked about, is achieving the types of results you’ve country, we are doing everything we something which, I think, we all under- just talked about. can to promote our businesses first. stand—the lifeblood of our economy. I hope you can enlighten us further It’s real simple. I think most Ameri- That is access to capital, to bank on this. cans get it. I think we’ve gotten a lit- loans—to small business loans. Mr. KLEIN of Florida. I’ll just con- tle off track over this thing, but that’s One thing I can say about this Con- clude. There is so much more that ev- a principle we need to pass and support gress is that I am really proud of the eryone wants to say here, and there is and hold to. efforts that have been brought about so much to add. That’s what’s getting Second— through this Congress to make SBA, exciting about this work we’re doing Mr. BRALEY of Iowa. Will the gen- Small Business Administration, loans here. tleman yield on that? much easier to get. At this point, they Small businesses are the lifeblood of Mr. KLEIN of Florida. Absolutely. are 90 percent guaranteed by the gov- our economy. I mean many parts of our Mr. BRALEY of Iowa. I think there is ernment. If you are a qualified veteran, country do not have a lot of Fortune a big misperception that our trading 95 percent is guaranteed. These are 500 companies. Those are great compa- partners and our competitors in the good quality loans, but these aren’t nies, and they add a lot of value to our global economy don’t have any ‘‘buy loans that are made by the govern- country, but small businesses are going Chinese’’ trade policies or ‘‘buy Japan’’ ment. They are made by banks, and to be the businesses that get us out of trade policies; is that true? they are guaranteed by the govern- this downturn, and we are beginning to Mr. KLEIN of Florida. Absolutely. see some good things. Bank lending is We all understand the real game ment. better than it was, but we need to en- here, and it’s not just about what they We need to get our banks to start fo- courage and find ways to make sure call ‘‘tariffs.’’ You may have heard of a cusing on making these loans and that the banks are lending so our small ‘‘tariff.’’ That’s a tax. If you bring other commercial loans. We are not something into a country, there is a asking banks to make ridiculous loans businesses can buy up some inventory, tax to make it less competitive. Well, like some of those that took place be- can buy up that capital equipment there are a lot of other ways to stop fore which were not properly they need—a little deferred mainte- our wonderful American goods from collateralized. Yet, for good, credit- nance—and hire more people. That’s going to other countries. They have worthy people, there are loads of small the bottom line. I just want to thank the gentleman lots of obstacles. It goes on in the auto businesses that have long histories in for having this ‘‘spur job creation’’ be- industry all the time with emissions our local communities. They know the cause, I think, this is a huge part of and lots of things that just make it loan officers at the banks, and they can how we are going to get our country practically impossible for us to sell. work together and make loans happen. Now, we can’t force someone in One of the ideas being suggested is to back on track. Korea to buy one of our cars, but we take some of the payback money from Mr. BRALEY of Iowa. Well, I think should give him that choice. If we have some of the big banks that paid some one of the things we know is that, in the best products, consumers will buy of this money back and start bringing order to spur job creation, you have our products, just like some products it down to the local level—to Main got to be able to have revenues that come into this country, and consumers Street, to small banks, to community will help people create jobs through in- make a choice. Right now, there are a banks. We’re not just talking about centives that will help them take that lot of things going on to stop our prod- giving them the money like it hap- risk. One of the important things that the ucts from going to other countries. pened before. Instead, it’s an incentive Mr. KAGEN. Will the gentleman to make the loans. If they make the Populist Caucus’ Blueprint for Recov- yield for a question? loans, then they get discounts on the ery does is it talks not only about how Mr. KLEIN of Florida. Sure. interest rates. This is what we have to you change behavior through the poli- Mr. KAGEN. In Wisconsin, we have do. cies you implement but also how you got a number of companies which have Mr. BRALEY of Iowa. Will the gen- transfer some of the burden from Main run into problems with regard to ‘‘buy tleman yield for another question? Street, which has been suffering so American.’’ We have buy American Mr. KLEIN of Florida. Absolutely. much in this recession, to the very clauses in our government contracts Mr. BRALEY of Iowa. One of the speculators whose wild gambling, today. Yet Miller Electric Company, things that is frustrating to many which is what most economists call which makes the finest welding appa- Americans is they just don’t under- what they were doing, drove us over ratus in the world, put in a bid for a stand how their government can actu- the cliff. shipbuilding company, a government ally help stimulate economic develop- That is why one of the key elements contract for the Navy. This foreign- ment. of this ‘‘ending speculation’’ piece is owned shipbuilding corporation down One of the best examples of this is, one of the bills introduced by another in the South decided, instead of buying when I first came to Congress, I served vice Chair of the Populist Caucus, Con- American, they would use a loophole, on the Small Business Committee. I gressman PETER DEFAZIO, who intro- and they bought something from a was fortunate enough to chair the Con- duced his Let Wall Street Pay for the competitor from Germany. tracting and Technology Sub- Restoration of Main Street Act. This is Can you explain how this bill, this committee, and this is when the pre- a very simple concept that existed in Buy American Improvement Act, vious administration was in control of this country for almost 60 years, and it would close the loopholes in these con- the executive branch. As I talked to worked very successfully, including tracts? people on the committee, it shocked during the Great Depression. Mr. KLEIN of Florida. That’s exactly me to learn that the former adminis- What it says is that, if you are trad- what it will do. I thank the gentleman trator of the Small Business Adminis- ing in excessive transactions on Wall for that example. tration saw it as his job to bring about Street, we are going to ask you to pay I have an example in my community, the end of the Small Business Adminis- a small transaction fee on those high- a company called Cross Match. It’s a tration. Many of the policies were de- volume trades so that we will have an technology company. They make fin- signed to contract the agency whose incentive to keep you from engaging in gerprint equipment and things like sole purpose was to try to stimulate excessive speculation that puts all of that. They were bidding for a census small business growth and develop- us at risk. His transaction fee is esti- contract, and a company that was ment. mated to create somewhere between sourcing it through a Korean company So, when we are talking about how $100 billion and $150 billion in new reve- came in with all sorts of—not machina- we create capital and provide economic nues that can be used for two basic tions—I would say, loopholes. This bill incentives for small businesses, we purposes: closes the loopholes, and I think that’s have come a long way in 3 years to get One is job creation, which is what we exactly what we are all interested in. to the point where this agency is try- all agree is going to create a huge em- The second thing I want to touch on, ing to fulfill its basic purpose, and I phasis for an economic recovery, be- if I can, which the gentleman from think that is going to be critical for cause when people go back to work,

VerDate Nov 24 2008 03:41 Mar 03, 2010 Jkt 089060 PO 00000 Frm 00042 Fmt 4634 Sfmt 0634 E:\CR\FM\K02MR7.081 H02MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 2, 2010 CONGRESSIONAL RECORD — HOUSE H1015 they not only pay Federal taxes and re- gency that the previous Congress did gresswoman ROSA DELAURO and co- duce our burden at the Federal Treas- when Wall Street was in trouble. Well, sponsored by one of the vice chairs of ury; they pay State and local taxes, Main Street is in crisis, and we need to the Populist Caucus, our friend from too, to help relieve the burden on our understand that we can rebuild this Minnesota, KEITH ELLISON, the Na- States and cities. This is how you cre- country. We may not see housing start tional Infrastructure Development ate economic incentives to change cor- to pick up this summer in the way that Bank Act. porate behavior from excessive specu- some would like, but we can rebuild What it does is it creates an oppor- lation, and this is also how you provide our infrastructure, and we can reinvest tunity to take advantage of existing new revenues to stimulate economic in the existing building stock, whether infrastructure needs by identifying development and help to reduce the that’s municipal, commercial, or resi- about 47,500 jobs and $6.2 billion of po- deficit. dential, through major retrofit pro- tential economic activity that are cur- I am going to ask one of our newest grams. rently ready, willing, and able to be members and youngest members of the It puts people to work in rebuilding acted upon, but because we have not Populist Caucus, our good friend from America’s competitive advantage, be- had the opportunity to marry private Virginia, TOM PERRIELLO, to talk about cause what you understand, Mr. development with public infrastructure the importance of having a bill like BRALEY, from your experience in Iowa projects, we are missing an oppor- this to guide us in a new direction for and around this country is that we tunity to stimulate job growth through economic recovery and what that have to reinvent America’s competi- this National Infrastructure Bank. means to the people in his district of tive advantage. We will outcompete So I would ask my colleagues who Virginia. the world, but we cannot do it solely support investments in infrastructure With that, I’ll yield to my good through supporting the financial sec- improvements that cross the spectrum friend. tor. We have to start building things, from expanding access to energy cre- Mr. PERRIELLO. Well, thank you making things, and growing things ated by wind in the Midwest, by build- very much for that news and for the again. We can still do that better than ing out our ability to transfer that en- news from our friends in the house of anyone in the world, but we need a ergy and electricity throughout the lords—I mean the Senate—that has trade policy, and we need a workforce country, by building out our world just come this way. It’s very, very ex- development strategy. We need an eco- broadband, by investing in roads, citing because we, as a caucus, have nomic development strategy that un- bridges, and public improvements, how been fighting so hard to shift the focus derstands that those are things we can this type of an investment develop- ment bank would make a difference in from speculation on Wall Street to job still do. There are sectors, like the en- their districts. creation on Main Street. We under- ergy sector, in which we can I am going to yield to my friend from stand that two out of every three new outcompete the world, but everyone jobs in this country are coming from Ohio. else is not playing for second place. Ms. SUTTON. I thank the gentleman small business. Now, they may not They are looking to do the same thing for yielding. make the headlines. It may mean you we are trying to do, but we can do it Infrastructure creates such ripple ef- have lots and lots of small businesses, better. fects in our economy and spurs eco- but that’s the engine of our growth. This is our time. This recession right nomic development and opportunity One thing we still do better than any here, that we are starting to crawl out for the people that we represent. Every other country in the world is innovate. of, is an opportunity for us to reinvest, time I go home, people beg, Please, We are better entrepreneurs. We are to rebuild that competitive advantage please, invest in our Nation’s infra- really good at this. It’s within our and to reemploy America in the work structure. We know that the need is small businesses that we see this inno- that so many in this room have worked tremendous. vation taking place, and we need to so hard to do. There are families out One of the bills, in addition to the make sure that we are giving the kind there right now who are proud, hard- National Infrastructure Bank bill, of support that small businesses need, working people who are looking for which I think we should talk about whether that’s through direct lending, jobs. We can work together across the more, but you mentioned Representa- whether that’s through the suspension aisle to make this happen, but we must tive DEFAZIO’s bill, the bill entitled of capital gains tax for small business have that commitment to basic com- Let Wall Street Pay for the Restora- to bring nontraditional lenders in, or monsense things, like making sure we tion of Main Street Act. I think this is whether that’s providing the infra- don’t miss this summer’s building sea- also a bill that deals with infrastruc- structure and the workforce develop- son. We have that time, and we must ture, because when we get the money ment that allows those small busi- have a deep sense of urgency because I from those transaction fees of those nesses to flourish. We also need to un- know people out on Main Street do. risky trades that are something that derstand that the phrase ‘‘buy Amer- Mr. BRALEY of Iowa. I appreciate we would really like to have cut back ican’’ should not be seen as bad lan- the gentleman’s comments about in- on, we are going to use it to invest in guage. vesting in infrastructure because most infrastructure and all the good that I think it’s timely that we look at of what I learned about the need for in- goes with it. this extension because, while there are frastructure improvements came when But we also have in that bill, and I many policies out there which may I was working for the Poweshiek Coun- think it is important to tell people, seem fancy, sometimes we have to get ty Secondary Roads Department to that part of the revenue that would back to the basics. We are within help pay my way through college. come in in addition to that huge weeks of the new building season’s be- One of the things that I learned was amount going to invest in Main Street, ginning, the spring building season that, as you try to create opportunities you know, Main Street, after all, is leading into the summer building sea- for transportation improvements that who bailed out Wall Street, and we son. There are thousands of small busi- are going to move goods, services, and didn’t do it because we were fans of nesses around this country that have people, you see a lot of trickle-down their behavior. We did it so they would held on and have taken losses for 2 that happens from the Federal Govern- start lending. As we discussed, they years, whether it has been the con- ment, to the State government, to the didn’t start lending, so we need to con- struction firms, the engineering firms, county government, to the city govern- tinue to push until things are right. the supply stores that have supplied ment as right-of-ways are transferred But also in that bill, there is a part of those guys, or whether it has been the after they are abandoned for bigger and the revenues raised that are going to diners where folks have gone to eat. If better infrastructure improvements go to deficit reduction. So we often we are not building anything in this like four-lane highways. hear this argument that it is all about country, we will not continue this path the deficit. of recovery that we have worked so b 2130 Well, it is about jobs and the deficit. hard to lay out. One of the cornerstones of our blue- In order to get rid of the deficit, people This is a chance, and we need to act print for recovery that deals with job do have to have jobs. Frankly, obvi- here in Washington with the same ur- creation is a bill introduced by Con- ously people need to have jobs, because

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We are about businesses once again to have access to into infrastructure, we also take a $2.1 trillion to $2.2 trillion behind in the credit they need to generate the piece of that money and let Wall Street our investment in our infrastructure, economic activity and generate the help to pay down some of the deficits our roads, our bridges, our schools, our jobs. that were created by helping Wall wastewater treatment plants. What Don’t think for a minute that the Street get out of the mess that they good would it be if we generate several Federal or State government can em- were in. million jobs, even 10 million jobs, when ploy you and work our way through So, back to the other bill that you we manufacture things and then we this recession with government-spon- mentioned, which is critically impor- don’t have the railroads or have the sored jobs. We can’t do that. So it is tant, and you asked how important it highways and the water infrastructure the role of government to set up a sys- was back in Ohio, in my district. It to transmit our goods to the world’s tem wherein you are rewarded for your just can’t be overstated. Just yester- marketplace? So we are indeed several work rather than your wealth. By fo- day, I received a whole list of infra- trillion dollars behind in our infra- cusing on our transportation and infra- structure projects that are ready to go structure development. structure needs, we can begin to gen- that need funding. I will just point out one of the facts erate millions and millions of jobs to The thing about infrastructure is about the American Recovery and Re- do just that. We want people to stay in that we all know that it can’t be ig- investment Act that few people realize. their own homes once again, rather nored indefinitely, right? But often- Apart from the fact that it was the than have this foreclosure crisis come times we come to a place where we largest tax cut in American history, back and bite us. Mr. BRALEY of Iowa. I appreciate don’t address it until a crisis occurs. little known is the fact that the trans- those observations. I want to engage a portation and infrastructure invest- And that doesn’t make any sense ei- couple of my colleagues in a conversa- ment, which was only 4 percent of that ther. So if we can put people to work tion about behavior modification on doing that work that we know has to amount of money we invested in Amer- Wall Street. I am going to start with be done and spur greater economic de- ica, generated 25 percent of the jobs. my friend from Vermont, because he Nearly 900,000 people are working be- velopment and recovery, why wouldn’t served on the Oversight and Govern- cause of that American Recovery and we do that? ment Reform Committee in the last Reinvestment Act of 2009. It put people This National Infrastructure Bank Congress when we had the hearing with legislation is a critical component of back to work in our infrastructure. the CEOs of AIG, trying to explain why taking the idea, the concept that we all And that multiplier is significant. For they stood by and watched as their know makes sense, and really maybe every person working in transpor- London financial services division that is what the Populist Caucus rep- tation, that money turns over many drove this economy off a cliff by engag- resents more than anything; it is about times over. ing in excess and speculative trading in the common sense. People know what So let me just see if I get this high-risk credit default swaps and com- we need to do for our country, to straight, if I understand where we are plex derivatives. strengthen the middle class and put going with our ideas about rewarding Now, one of the things we learned people to work rebuilding our infra- people or encouraging people with the during that hearing from the economic structure. Other countries are building taxation code. experts who study those high-risk in- their infrastructure. They are invest- If you are sitting in a boardroom on vestments was that long before any of ing massively in their infrastructure, Wall Street and you are rewarding us came to Congress, Congress was con- because they know the value that it yourself for your failure with the tax- fronted with the issue of how we pro- creates beyond the jobs that are put payers’ money, according to the Popu- vide some type of oversight of this forth just in doing the construction. list Caucus, we would like to put a sig- highly complex and evolving market- With that, I yield back to the gen- nificant tax on that bonus and use that place, which at that time in the late tleman. revenue and put it back into the Amer- 1990s was a small fraction of the $100 Mr. BRALEY of Iowa. I think that is ican economy to generate small busi- trillion marketplace it has become. a great opportunity to talk about the ness activity through the SBA, put it But what was most shocking to me as importance, because when I served on back into people’s hands. they testified was when they said Con- the Transportation and Infrastructure We do believe that people are more gress was trying to decide what are Committee in the 110th Congress, our important than profits. We should in these products. In a way, they are like chairman, the legendary JIM OBER- fact reward work rather than wealth. If an insurance product, because they are STAR, always reminded us that our I understand the transfer tax on Wall an agreement to pay upon a contingent global competitors are investing mas- Street speculators, it is one-quarter of future event. But they are really not sive amounts in infrastructure develop- one penny of each dollar being traded insurance, because otherwise we could ment. on nanosecond trades. This is not going regulate them through the State insur- The European Union had a 5-year, $1 to be a fee or a transfer tax placed on ance commissioners. Then they said, trillion infrastructure development those who are speculating for the long- Well, these are kind of like stock trad- plan. You look at China, which has just term investment. It is going to exclude ing, so we can have this regulated by passed the United States as the leading any tax-favored retirement accounts, the Securities and Exchange Commis- consumer of automobiles, and you look any HSA, Health Savings Account, any sion. But it is really not a stock trans- at the ribbons of concrete that have Education Savings Account, and would action. been poured in that country to respond exclude the first $100,000 of your in- So, what is it? Well, about 10 percent to growing consumer and commercial come generated from your investment of these products, those experts testi- demand for transportation. in America’s future on our American fied, if you remember, Mr. WELCH, were If we are competing with these people exchanges. real insurance products. And these in a global market, Dr. KAGEN, we have Some people have pushed back economists testified the other 90 per- to make similar types of commitments against that Wall Street transfer fee by cent were pure gambling, people trying so that our infrastructure system can saying then people will trade overseas. to make money by turning over trans- make us competitive. I know from vis- In London, which is the most active actions, betting on the come that at iting your district in northeast Wis- trading floor in the world, they do have some point when those commitments consin, it is a very spread out and re- a transfer fee twice what we are sug- came due, they would be able to gen- mote area in some parts of your dis- gesting. erate a profit without adding anything trict, yet the constituents that you So, again, the idea is we want to use of value, other than risk and a possible represent in those areas depend just as the Tax Code to reward people for their payment in the future.

VerDate Nov 24 2008 03:41 Mar 03, 2010 Jkt 089060 PO 00000 Frm 00044 Fmt 4634 Sfmt 0634 E:\CR\FM\K02MR7.084 H02MRPT1 smartinez on DSKB9S0YB1PROD with HOUSE March 2, 2010 CONGRESSIONAL RECORD — HOUSE H1017 So, why is it necessary, when we are they went to their sales department with people that are having these real talking about ending excessive specula- and had them contact trusted inves- big problems, they can’t make their tion, to get to the very core, not only tors, pension funds, and said, We’ve got mortgage payments. It’s not like of how you do that with a tax policy some AAA products here. You ought to they’re totally out of it. They may and with a transfer fee, but also how buy them. It’s going to be a good re- have had a job that was earning $50,000 you deal with the financial oversight of turn for your pensioners. And they sold a year, and they lost it, and now the marketplace to make sure this them. Then they went to their trading they’re earning $35,000. Or, maybe a never happens again? room and they said, You know what? two-income household that they want Mr. WELCH. Well, I appreciate that. These are junk. How do we know? We to stay there. And we, as Americans, You know, really what it is about is sold them. And they bet short against want them to stay there, if they can. whether banking is going to be an ac- the instruments they’d just sold long. We don’t want abandoned houses. It tivity that is about lending money to That would not happen at People’s just puts more pressure on the local businesses, small businesses, families, Trust in St. Albans, Vermont. They streets and the local community. to buy their first home, or it is going couldn’t even imagine doing that, sell- At this event over the weekend—it to be a mechanism for financial specu- ing something that wasn’t worth in- was running for 5 days, 24 hours a day— lation. And it is really two totally dif- vesting in. They couldn’t do it. And I and all the major lenders were there, ferent models. know that every single one of us, Re- except for one. It was really inter- I want to just take up on what you publican and Democrat, have local esting; 5,500 people were in this build- were saying. We need a banking sys- bankers who’ve met that standard, ing at one time. I’d never seen any- tem. We need a strong banking system. where the goal is to serve the commu- thing like this. And they had the lend- We need local bankers who are actually nity. And they know that their respon- ers sitting across the table, here to engaged in their community, who can sibility with this trust that they have here, and they were actually ironing make judgments about who is good for of depositor money is to put it to good out one after another. One guy had an a loan. I want to give you an example work to build the economy. 11 percent mortgage. It was reduced to of the local bank and the Wall Street Wall Street has a different point of 51⁄2 percent. His payment went from operation. view. Not that they’re not necessary; $2,100 to $1,300. And I asked him, Can In St. Albans, Vermont, we have a they obviously are. But when they are you make do? He said, Yes. I’m keeping small bank, People’s Bank. The presi- helpful, they see that the work that my house. I’m sleeping tonight. My dent of that bank, Rick Manahan, his they do should be in service of the children know they have a place, a roof desk is in the entry of the bank. If you work that Main Street does. You know, over their head tonight. walk in, you see all the teller windows. that’s why with the reforms that we Well, this has been frustrating, but There is a big vestibule area, the public must implement, whether it’s a bonus help is on the way. Help is on the way. area. His desk is there. People do not tax, whether it’s a Consumer Product And I think that the model has now have a hard time asking Rick what is Safety Commission, whether it’s tight- been created. It’s working in different going on. He knows the folks in his ening up on the lending regulations parts of the country. But I’m really community. and derivative trading, all of that, the gratified to see that some people in His bank and his board of directors bottom line is really very simple: Is south Florida were given that oppor- see a good day’s work when, at the end the banking system going to be there tunity. There’s a lot more to work of the day, they have been able to au- to serve us, or are we going to be there through in all of our communities, but thorize a loan to a local business—it to serve the financial engineering of I’m starting to see some success, and might be a retailer, it might be a con- the banking system? That’s the ques- that’s part of how our recovery is going struction company—knowing that that tion that this Congress faces and to happen, by putting the necessary business is going to use that money to America wants an answer to. I yield pressure for people to get together and help create a local job. Or it is a young back. make this work. family getting started. They have to Mr. BRALEY of Iowa. I thank the Mr. BRALEY of Iowa. And that’s why make a tough underwriting decision. gentleman for your comments. We are the Blueprint for Recovery we’ve been But they know that family, and they just about out of time so I’m going to talking about that the Populist Caucus know they are going to do their level ask my friend from Florida for some has put forward—real solutions, con- best to be good for it. At the end of the closing comments, especially on this crete solutions, that are going to help day, a house has been sold, a family critical issue that affects the middle us get out of this mess, by ending ex- has got a new place to live, and they go class homeowners, and that’s the mort- cessive speculation on Wall Street, home and sleep pretty good at night, gage foreclosure crisis. making sure that we have a fair com- knowing that they have made a real Mr. KLEIN of Florida. I want to pensation system for the people who contribution in the community. thank the gentleman. Just sort of as an have gotten us into this mess, and The other model, just to give you an add-on to what we’re talking about, we spurring job creation with things like example, one of our most esteemed all know that homeownership in the the Wall Street Bonus Tax Act, the Na- Wall Street banks, is Goldman Sachs. United States is crucial. It’s crucial for tional Infrastructure Development Act, people knowing where to plant their in- the Make Wall Street Pay for the Res- b 2145 vestment. They’re working hard over toration of Main Street Act, and the They have the best and brightest of the years to make sure they have a Buy American Improvement Act. folks doing the work there. But here’s place to live, and hopefully it will in- These four commonsense bills will one of the things that they did—and it crease in appreciation. But that same make an enormous impact on the qual- was very successful for them making description that Mr. WELCH just gave ity of life for middle class families. money. They bought a mortgage origi- us about banking practices, in some They also represent true populist poli- nation company in the South. They cases resulted in, unfortunately, a cies that are about building America hired 26, 30-year-old young people to go whole lot of people getting in way over up, not tearing it down. It’s about giv- out, knock on doors, and sell mort- their heads, a whole lot of lending that ing voice to the legitimate concerns of gages. Generally, subprime mortgages shouldn’t have never been lent in the the American people who made this that people couldn’t afford and didn’t first place, and the foreclosure situa- country great. need. They then brought those mort- tion is really bad in many places. With that, I thank my colleagues, gages back to New York, and they bun- I witnessed something over the week- and I yield back the balance of our dled them into products that they then end in West Palm Beach. In the West time. sold. Palm Beach Convention Center a group f But before they sold them, they got came into town and said, We are going the best and brightest MBAs to knock to bring together the lenders who, in MESSAGE FROM THE SENATE on the doors of the rating agencies and many cases, have not been answering A message from the Senate by Ms. persuade the rating agencies that these the phone, the line is busy or people Curtis, one of its clerks, announced toxic instruments were AAA. Then haven’t been getting answers, along that the Senate has passed without

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