Pillars of Prosperity phần 10 ppt

Speaker, no one can deny that welfare programs haveundermined America’s moral fabric and constitutional system.Therefore, all those concerned with restoring liberty and protect-ing civil

The Shrimp Importation Financing

Financ-The United States’ domestic shrimping industry is a vital socialand economic force in many coastal communities across theUnited States, including several in my congressional district Athriving shrimping industry benefits not only those who own andoperate shrimp boats, but also food processors, hotels and restau-rants, grocery stores, and all those who work in and service theseindustries Shrimping also serves as a key source of safe domesticfoods at a time when the nation is engaged in hostilities abroad.Given the importance of a strong shrimping industry to somany Americans, it seems strange that the federal governmentcontinues to burden shrimpers with excessive regulations Forexample, the federal government has imposed costly regulations

on this industry dealing with usage of items such as by-catchreduction devices and turtle excluder devices (TEDS) The manda-tory use of these devices results in a significant reduction in theamount of shrimp caught by domestic shrimpers, thus damagingtheir competitive position and market share

Many members of Congress have let the National Marine eries Service, which is the lead federal agency with responsibility

Fish-to regulate the domestic shrimp industry, know of their ure with the unreasonable regulatory burden imposed upon theindustry In response, the agency recently held briefings with

displeas-House and Senate staffers as well as industry representatives todiscuss how the agency’s actions are harming shrimpers.

However, even after hearing firsthand testimony from industryrepresentatives and representatives of communities whoseeconomies rely on a thriving shrimping industry, the agencyrefuses to refrain from placing regulatory encumbrances upon thedomestic shrimping industry Therefore it is up to Congress toprotect this industry from overzealous regulators The ShrimpImportation Financing Fairness Act provides this protection byplacing an indefinite moratorium on all future restrictive regula-tions on the shrimping industry

Seven foreign countries (Thailand, Vietnam, India, China,Ecuador, Indonesia, and Brazil) have taken advantage of thedomestic shrimping industry’s government-created vulnerabili-ties These countries have each exported in excess of 20 millionpounds of shrimp to the United States in the first six months of thisyear These seven countries account for nearly 70 percent of allshrimp consumed in the United States in the first six months ofthis year and nearly 80 percent of all shrimp imported to this coun-try in the same period!

Adding insult to injury the federal government is forcingAmerican shrimpers to subsidize their competitors! In the lastthree years, the United States government has provided more than

$1.8 billion in financing and insurance for these foreign countriesthrough the Overseas Private Investment Corporation (OPIC).Furthermore, the U.S current exposure relative to these countriesthrough the Eximbank totals some $14.8 billion Thus, the UnitedStates taxpayer is providing a total subsidy of $16.5 billion to thehome countries of the leading foreign competitors of Americanshrimpers! Of course, the American taxpayer could be forced toshovel more money to these countries through the InternationalMonetary Fund (IMF)

Many of the countries in question do not have free-marketeconomies Thus, the participation of these countries in UnitedStates-supported international financial regimes amounts to adirect subsidy by American shrimpers to their international com-petitors In any case, providing aid to any of these countries indi-rectly grants benefits to foreign shrimpers because of the fungibil-ity of money

In order to ensure that American shrimpers are not forced tosubsidize their competitors, the Shrimp Importation FinancingFairness Act ends all Eximbank and OPIC subsidies to the sevencountries who imported more than 20 million pounds of shrimp inthe first six months of 2002 The bill also reduces America’s contri-

bution to the IMF by America’s pro rata share of any IMF aid

pro-vided to one of those seven countries

Mr Speaker, it is time for Congress to rein in regulation-happybureaucrats and stop subsidizing the domestic shrimping indus-try’s leading competitors Otherwise, the government-manufac-tured depression in the price of shrimp will decimate the domesticshrimping industry and the communities whose economiesdepend on this industry I, therefore, hope all my colleagues willstand up for shrimpers by cosponsoring the Shrimp ImportationFinancing Fairness Act „

Oppose the Federal Welfare State

Congressional Record—U.S House of Representatives

February 13, 2003

Mr Speaker, no one can deny that welfare programs haveundermined America’s moral fabric and constitutional system.Therefore, all those concerned with restoring liberty and protect-ing civil society from the maw of the omnipotent state should sup-port efforts to eliminate the welfare state, or, at the very least,reduce federal control over the provision of social services Unfor-tunately, the misnamed Personal Responsibility, Work, and Fam-ily Promotion Act (H.R 4) actually increases the unconstitutionalfederal welfare state and thus undermines personal responsibility,the work ethic, and the family

H.R 4 reauthorizes the Temporary Assistance to Needy lies (TANF) block grant program, the main federal welfare pro-gram Mr Speaker, increasing federal funds always increases fed-eral control, as the recipients of the funds must tailor their pro-grams to meet federal mandates and regulations More impor-tantly, since federal funds represent resources taken out of thehands of private individuals, increasing federal funding leavesfewer resources available for the voluntary provision of socialservices, which, as I will explain in more detail later, is a moreeffective, moral, and constitutional means of meeting the needs ofthe poor.

Fami-H.R 4 further increases federal control over welfare policy byincreasing federal mandates on welfare recipients This bill evengoes so far as to dictate to states how they must spend their ownfunds! Many of the new mandates imposed by this legislation con-cern work requirements Of course, Mr Speaker, there is a soundargument for requiring recipients of welfare benefits to work.Among other benefits, a work requirement can help welfare recip-ients obtain useful job skills and thus increase the likelihood thatthey will find productive employment However, forcing welfarerecipients to work does raise valid concerns regarding how muchcontrol over one’s life should be ceded to the government inexchange for government benefits

In addition, Mr Speaker, it is highly unlikely that a fits-all’’ approach dictated from Washington will meet the diverseneeds of every welfare recipient in every state and locality in thenation Proponents of this bill claim to support allowing states,localities, and private charities the flexibility to design welfare-to-work programs that fit their particular circumstances Yet, thisproposal constricts the ability of the states to design welfare-to-work programs that meet the unique needs of their citizens I alsoquestion the wisdom of imposing as much as $11 billion inunfunded mandates on the states at a time when many are facing

“one-size-a fisc“one-size-al crisis

As former Minnesota Governor Jesse Ventura pointed out in erence to this proposal’s effects on Minnesota’s welfare-to-workprogram, “We know what we are doing in Minnesota works Wehave evidence And our way of doing things has broad support inthe state Why should we be forced by the federal government to

ref-put our system at risk?’’ Why indeed, Mr Speaker, should anystate be forced to abandon its individual welfare programsbecause a group of self-appointed experts in Congress, the federalbureaucracy, and inside-the-beltway think tanks have decidedthere is only one correct way to transition people from welfare towork?

Mr Speaker, H.R 4 further expands the reach of the federalgovernment by authorizing approximately $10 million dollars fornew “marriage promotion’’ programs I certainly recognize howthe welfare state has contributed to the decline of the institution ofmarriage As an OB-GYN with over 30 years of private practice Iknow better than most the importance of stable, two parent fami-lies to a healthy society However, I am skeptical, to say the least,

of claims that government education programs can fix the rooted cultural problems responsible for the decline of the Ameri-can family

deep-Furthermore, Mr Speaker, federal promotion of marriageopens the door for a level of social engineering that should worryall those concerned with preserving a free society The federal gov-ernment has no constitutional authority to promote any particularsocial arrangement; instead, the founders recognized that peopleare better off when they form their own social arrangements freefrom federal interference The history of the failed experimentswith welfarism and socialism shows that government can onlydestroy a culture; when a government tries to build a culture, itonly further erodes the people’s liberty

H.R 4 further raises serious privacy concerns by expanding theuse of the “New Hires Database” to allow states to use the data-base to verify unemployment claims The New Hires Databasecontains the name and social security number of everyone law-fully employed in the United States Increasing the states’ ability toidentify fraudulent unemployment claims is a worthwhile publicpolicy goal However, every time Congress authorizes a new usefor the New Hires Database it takes a step toward transforming itinto a universal national database that can be used by governmentofficials to monitor the lives of American citizens

As with all proponents of welfare programs, the supporters ofH.R 4 show a remarkable lack of trust in the American people.They would have us believe that without the federal government,

the lives of the poor would be “nasty, brutish and short.” ever, as scholar Sheldon Richman of the Future of Freedom Foun-dation and others have shown, voluntary charities and organiza-tions, such as friendly societies that devoted themselves to helpingthose in need, flourished in the days before the welfare stateturned charity into a government function.

How-Today, government welfare programs have supplemented theold-style private programs One major reason for this is that thepolicies of high taxes and inflationary Federal Reserve moneyimposed on the American people in order to finance the welfarestate have reduced the income available for charitable giving.Many over-taxed Americans take the attitude toward private char-ity that “I give at the (tax) office.”

Releasing the charitable impulses of the American people byfreeing them from the excessive tax burden so they can devotemore of their resources to charity is a moral and constitutionalmeans of helping the needy By contrast, the federal welfare state

is neither moral nor constitutional Nowhere in the Constitution isthe federal government given the power to level excessive taxes onone group of citizens for the benefit of another group of citizens.Many of the Founders would have been horrified to see modernpoliticians define compassion as giving away other people’smoney stolen through confiscatory taxation In the words of thefamous essay by former Congressman Davy Crockett, this money

is “Not Yours to Give.’’

Voluntary charities also promote self-reliance, but governmentwelfare programs foster dependency In fact, it is in the self-inter-est of the bureaucrats and politicians who control the welfare state

to encourage dependency After all, when a private organizationmoves a person off welfare, the organization has fulfilled its mis-sion and proved its worth to donors In contrast, when peopleleave government welfare programs, they have deprived federalbureaucrats of power and of a justification for a larger amount oftaxpayer funding

In conclusion, H.R 4 furthers federal control over welfare grams by imposing new mandates on the states, which furthersunconstitutional interference in matters best left to state and localgovernments, and individuals Therefore, I urge my colleagues tooppose it Instead, I hope my colleagues will learn the lessons of

pro-the failure of pro-the welfare state and embrace a constitutional andcompassionate agenda of returning control over the welfare pro-grams to the American people „

Oppose the Spendthrift 2005 Federal Budget Resolution

Congressional Record—U.S House of Representatives

March 25, 2004

Mr Speaker, I once again find myself compelled to vote againstthe annual budget resolution (H Con Res 393) for a very simplereason: it makes government bigger Like many of my Republicancolleagues who curiously voted for today’s enormous budget, Icampaign on a simple promise that I will work to make govern-ment smaller This means I cannot vote for any budget thatincreases spending over previous years In fact, I would have ahard time voting for any budget that did not slash federal spend-ing by at least 25 percent, a feat that becomes less unthinkablewhen we remember that the federal budget in 1990 was less thanhalf what it is today Did anyone really think the federal govern-ment was uncomfortably small just 14 years ago? Hardly It oncetook more than 100 years for the federal budget to double, now ittakes less than a decade We need to end the phony rhetoric about

“priorities” and recognize federal spending as the runaway freighttrain that it is A federal government that spends $2.4 trillion inone year and consumes roughly one-third of the nation’s GDP isfar too large

Neither political party wants to address the fundamental yetunspoken issue lurking beneath any budget debate: What is theproper role for government in our society? Are these ever-grow-ing social services and defense expenditures really proper in a free

country? We need to understand that the more governmentspends, the more freedom is lost Instead of simply debatingspending levels, we ought to be debating whether the depart-ments, agencies, and programs funded by the budget should exist

at all My Republican colleagues especially ought to know this.Unfortunately, however, the GOP has decided to abandon princi-ple and pander to the entitlements crowd But this approach willbackfire, because Democrats will always offer to spend even morethan Republicans When Republicans offer to spend $500 billion

on Medicare, Democrats will offer $600 billion Why not? It’s allfunny money anyway, and it helps them get reelected

I object strenuously to the term “baseline budget.” In ton, this means that the previous year’s spending levels representonly a baseline starting point Both parties accept that each newbudget will spend more than the last, the only issue being howmuch more If Republicans offer a budget that grows federalspending by 3 percent, while Democrats seek 6 percent growth,Republicans trumpet that they are the party of smaller govern-ment! But expanding the government slower than some would like

Washing-is not the same as reducing it

Furthermore, today’s budget debate further entrenches thephony concept of discretionary versus nondiscretionary spending

An increasing percentage of the annual federal budget is rized as “nondiscretionary” entitlement spending, meaning Con-gress ostensibly has no choice whether to fund certain programs

catego-In fact, roughly two-thirds of the fiscal year 2005 budget is sumed by nondiscretionary spending When Congress has no sayover how two-thirds of the federal budget is spent, the Americanpeople effectively have no say either Why in the world should theAmerican people be forced to spend $1.5 trillion funding programsthat cannot even be reviewed at budget time? The very concept ofnondiscretionary spending is a big-government statist’s dream,because it assumes that we as a society simply have accepted thatmost of the federal leviathan must be funded as a matter of course

con-NO program or agency should be considered sacred, and no ing should be considered inevitable

fund-The assertion that this budget will reduce taxes is nonsense.Budget bills do not change the tax laws one bit Congress can passthis budget today and raise taxes tomorrow—budget and tax bills

are completely separate and originate from different committees.The budget may make revenue projections based on tax cuts, butthe truth is that Congress has no idea what federal revenues will

be in any future year Similarly, the deficit reduction supposedlycontained in the budget is illusory The federal governmentalways spends more in future years than originally projected, andalways runs single-year deficits when one factors in raids on fundssupposedly earmarked for Social Security The notion that today’sbudget will impose fiscal restraint on Congress in the future islaughable—Congress will vote for new budgets every year with-out the slightest regard for what we do today

Mr Speaker, my colleagues have discussed the details of this

budget ad nauseam The increases in domestic, foreign, and

mili-tary spending would not be needed if Congress stopped trying tobuild an empire abroad and a nanny state at home Our interven-tionist foreign policy and growing entitlement society will bank-rupt this nation if we do not change the way we think about theproper role of the federal government „

A Token Attempt to Reduce Government

Spending

Congressional Record—U.S House of Representatives

June 24, 2004

Mr Speaker, I support H.R 4663, the Spending Control Act of

2004, because I believe those of us concerned about the effects ofexcessive government spending on American liberty and prosper-ity should support any effort to rein in spending However, I hold

no great expectations that this bill will result in a new dawn of cal responsibility In fact, since this bill is unlikely to pass the Sen-ate, the main effect of today’s vote will be to allow members to

fis-brag to their constituents that they voted to keep a lid on ing Many of these members will not tell their constituents thatlater this year they will likely vote for a budget busting, porkladen, omnibus spending bill that most members will not evenhave a chance to read before voting! In fact, last week, many mem-bers who I am sure will vote for H.R 4663 voted against cuttingfunding for the National Endowment for the Arts (NEA) LastNovember, many of these same members voted for the greatestexpansion of the welfare state since the Great Society If Congresscannot even bring itself to cut the budget of the NEA or refuse toexpand the welfare state, what are the odds that Congress willmake the tough choices necessary to restore fiscal order, much lessconstitutional government?

spend-Even if this bill becomes law, it is likely that the provision inthis bill allowing spending for emergency purposes to exceed thebill’s spending caps will prove to be an easily abused loopholeallowing future Congresses to avoid the spending limitations inthis bill I am also concerned that, by not applying the spendingcaps to international or military programs, this bill invites futureCongresses to misplace priorities, and ignores a major source offiscal imprudence Congress will not get our fiscal house in orderuntil we seriously examine our overseas commitments, such asgiving welfare to multinational corporations and subsidizing thedefense of allies who are perfectly capable of defending them-selves

Congress already has made numerous attempts to restore fiscaldiscipline, and none of them has succeeded Even the much-her-alded “surpluses” of the nineties were due to the Federal Reservecreating an economic boom and Congress continuing to raid thesocial security trust fund The surplus was not caused by a suddenoutbreak of fiscal conservatism in Washington, D.C

The only way Congress will cease excessive spending is byrejecting the idea that the federal government has the authority andthe competence to solve all ills, both domestic and international Ifthe last century taught us anything, it was that big government can-not create utopia Yet, too many members believe that we can solveall economic problems, eliminate all social ills, and bring aboutworldwide peace and prosperity by simply creating new federalprograms and regulations However, the well-intended efforts of

Congress have exacerbated America’s economic and social lems Meanwhile our international meddling has failed to createperpetual peace but rather led to perpetual war for perpetualpeace

prob-Every member of Congress has already promised to supportlimited government by swearing to uphold the United States Con-stitution The Constitution limits the federal government to a few,well-defined functions A good start toward restoring Constitu-tional government would be debating my Liberty Amendment(H.J.Res 15) The Liberty Amendment repeals the SixteenthAmendment, thus eliminating the income tax, the source of much

of the growth of government and loss of individual liberty TheLiberty Amendment also explicitly limits the federal government

to those functions it is constitutionally authorized to perform

If Congress were serious about reining in government, it wouldalso eliminate the Federal Reserve Board’s ability to inflate the cur-rency Federal Reserve policy enables excessive governmentspending by allowing the government to monetize the debt, andhide the cost of big government through the hidden tax of infla-tion

In 1974, during debate on the Congressional Budget Reformand Impoundment Control Act, Congressman H.R Gross, a liber-tarian-conservative from Iowa, eloquently addressed the flaws inthinking that budget process reform absent the political will to cutspending would reduce the size of government Mr Speaker, Iwould like to conclude my remarks by quoting Mr Gross:

Every Member knows that he or she cannot for long

spend $75,000 a year on a salary of $42,500 and remain

solvent Every Member knows this government cannot

forever spend billions beyond tax revenue and endure

Congress already has the tools to halt the headlong

flight into bankruptcy It holds the purse strings No

President can impound funds or spend unwisely unless

an improvident, reckless Congress makes available the

money

I repeat, neither this nor any other legislation will

pro-vide morality and responsibility on the part of Members

of Congress „

Praising Private Space Exploration

Congressional Record—U.S House of Representatives

June 25, 2004

Mr Speaker, I rise to congratulate and commend the designers,builders, sponsors, and pilot of SpaceShipOne on the occasion ofits successful flight out of earth’s atmosphere on June 21, 2004.What is most remarkable about SpaceShipOne, of course, is that it

is the first privately-financed and privately built vehicle to leavethe Earth’s atmosphere

SpaceShipOne was designed and built by Burt Rutan andpiloted by test pilot Michael W Melvill It was launched success-fully from Mojave California, reaching a height of 100 km (62miles) above the Earth’s surface Remarkably, SpaceShipOne isentirely privately-financed, chiefly by Microsoft cofounder Paul G.Allen

According to the designers and financers of SpaceShipOne, themission of this project is to demonstrate the viability of commer-cial space flight and to open the door for private space tourism.The successful completion of SpaceShipOne’s maiden voyagedemonstrates that relatively modest amounts of private fundingcan significantly increase the boundaries of commercial spacetechnology It constitutes a major leap toward their goal anddemonstrates that private capital and private enterprise can beapplied to enormous success all on its own Those associated withthis project represent the best of our American traditions, embod-ied in our enterprising and pioneering spirit

Their success should also be read as a cautionary tale for all of

us in government If only the United States had a taxation policythat limited government and thereby freed up more private capi-tal, there is no telling how many more like Burt Rutan, Paul Allen,and Michael Melvill would be able to do great things to the bene-fit all of mankind This not just in space exploration, but in med-ical research, alternative energy research, and any number of the

problems that continue to perplex mankind Private enterprisedepends on results and success and therefore private capital isalways targeted much more wisely than are monies confiscated bygovernments

With this successful maiden voyage, SpaceShipOne is now theleading contender for the $10 million Ansari X Prize, which is to beawarded to the first privately financed three-seat aircraft thatreaches an altitude of 62 miles and repeats the feat within twoweeks I wish all those involved in this remarkable project the best

The never-ending political squabble in Congress over taxingthe rich, helping the poor, “Pay-Go,” deficits, and special interests,ignores the most insidious of all taxes—the inflation tax Simplyput, printing money to pay for federal spending dilutes the value

of the dollar, which causes higher prices for goods and services.Inflation may be an indirect tax, but it is very real—the individu-als who suffer most from cost of living increases certainly pay a

“tax.”

Unfortunately no one in Washington, especially those whodefend the poor and the middle class, cares about this subject.Instead, all we hear is that tax cuts for the rich are the source ofevery economic ill in the country Anyone truly concerned about

the middle class suffering from falling real wages, ment, a rising cost of living, and a decreasing standard of livingshould pay a lot more attention to monetary policy Federal spend-ing, deficits, and Federal Reserve mischief hurt the poor whiletransferring wealth to the already rich This is the real problem,and raising taxes on those who produce wealth will only makeconditions worse

underemploy-This neglect of monetary policy may be out of ignorance, but itmay well be deliberate Fully recognizing the harm caused byprinting money to cover budget deficits might create public pres-sure to restrain spending—something the two parties don’t want Expanding entitlements is now an accepted prerogative of bothparties Foreign wars and nation building are accepted as foreignpolicy by both parties

The Left hardly deserves credit when complaining aboutRepublican deficits Likewise, we’ve been told by the vice presi-dent that Ronald Reagan “proved deficits don’t matter”—a tenet

of supply-side economics With this the prevailing wisdom inWashington, no one should be surprised that spending anddeficits are skyrocketing The vocal concerns expressed abouthuge deficits coming from big spenders on both sides are nothingmore than political grandstanding If Members feel so stronglyabout spending, Congress simply could do what it ought to do—cut spending That, however, is never seriously considered byeither side

If those who say they want to increase taxes to reduce thedeficit got their way, who would benefit? No one! There’s no his-toric evidence to show that taxing productive Americans to sup-port both the rich and poor welfare beneficiaries helps the middleclass, produces jobs, or stimulates the economy

Borrowing money to cut the deficit is only marginally betterthan raising taxes It may delay the pain for a while, but the cost ofgovernment eventually must be paid Federal borrowing meansthe cost of interest is added, shifting the burden to a different groupthan those who benefited and possibly even to another generation.Eventually borrowing is always paid for through taxation

All spending ultimately must be a tax, even when direct taxesand direct borrowing are avoided The third option is for the Fed-eral Reserve to create credit to pay the bills Congress runs up

Nobody objects, and most Members hope that deficits don’t reallymatter if the Fed accommodates Congress by creating moremoney Besides, interest payments to the Fed are lower than theywould be if funds were borrowed from the public, and paymentscan be delayed indefinitely merely by creating more credit out ofthin air to buy U.S Treasuries No need to soak the rich A gooddeal, it seems, for everyone But is it?

Paying for government spending with Federal Reserve credit,instead of taxing or borrowing from the public, is anything but agood deal for everyone In fact it is the most sinister, seductive

“tax” of them all Initially it is unfair to some, but dangerous toeveryone in the end It is especially harmful to the middle class,including lower-income working people who are thought not to bepaying taxes

The “tax” is paid when prices rise as the result of a ing dollar Savers and those living on fixed or low incomes arehardest hit as the cost of living rises Low- and middle-incomefamilies suffer the most as they struggle to make ends meet whilewealth is literally transferred from the middle class to the wealthy.Government officials stick to their claim that no significant infla-tion exists, even as certain necessary costs are skyrocketing andincomes are stagnating The transfer of wealth comes as saversand fixed income families lose purchasing power, large banks ben-efit, and corporations receive plush contracts from the govern-ment—as is the case with military contractors These companiesuse the newly printed money before it circulates, while the middleclass is forced to accept it at face value later on This becomes ahuge hidden tax on the middle class, many of whom never object

depreciat-to government spending in hopes that the political promises will

be fulfilled and they will receive some of the goodies But prise—it doesn’t happen The result instead is higher prices forprescription drugs, energy, and other necessities The freebiesnever come

sur-The Fed is solely responsible for inflation by creating moneyout of thin air It does so either to monetize federal debt, or in theprocess of economic planning through interest rate manipulation.This Fed intervention in our economy, though rarely evenacknowledged by Congress, is more destructive than Memberscan imagine

Not only is the Fed directly responsible for inflation and nomic downturns, it causes artificially low interest rates that servethe interests of big borrowers, speculators, and banks Thisunfairly steals income from frugal retirees who chose to save andplace their funds in interest bearing instruments like CDs

eco-The Fed’s great power over the money supply, interest rates,the business cycle, unemployment, and inflation is wielded withessentially no Congressional oversight or understanding Theprocess of inflating our currency to pay for government debtindeed imposes a tax without legislative authority

This is no small matter In just the first 24 weeks of this year theM3 money supply increased $428 billion, and $700 billion in thepast year M3 currently is rising at a rate of 10.5 percent In the lastseven years the money supply has increased 80 percent, as M3 hassoared $4.1 trillion This bizarre system of paper money world-wide has allowed serious international imbalances to develop Weowe just four Asian countries $1.5 trillion as a consequence of achronic and staggering current account deficit now exceeding 5percent of our GDP This current account deficit means Americansmust borrow $1.6 billion per day from overseas just to finance thisdeficit This imbalance, which until now has permitted us to livebeyond our means, eventually will give us higher consumerprices, a lower standard of living, higher interest rates, andrenewed inflation

Rest assured the middle class will suffer disproportionatelyfrom this process

The moral of the story is that spending is always a tax Theinflation tax, though hidden, only makes things worse Taxing,borrowing, and inflating to satisfy wealth transfers from the mid-dle class to the rich in an effort to pay for profligate governmentspending, can never make a nation wealthier But it certainly canmake it poorer „

Raising the Debt Limit: A Disgrace

Congressional Record—U.S House of Representatives

November 18, 2004

Mr Speaker, Congress is once again engaging in fiscal sponsibility and endangering the American economy by raisingthe debt ceiling, this time by $800 billion One particularly trou-bling aspect of today’s debate is how many members who wontheir seats in part by pledging never to raise taxes, will now votefor this tax increase on future generations without so much as asecond thought Congress has become like the drunk who prom-ises to sober up tomorrow, if only he can keep drinking today.Does anyone really believe this will be the last time, that Congresswill tighten its belt if we just grant it one last loan? What a joke!There is only one approach to dealing with an incorrigible spend-thrift: cut him off

irre-The term “national debt” really is a misnomer It is not thenation’s debt Instead, it is the federal government’s debt TheAmerican people did not spend the money, but they will have topay it back

Most Americans do not spend much time worrying about thenational debt, which now totals more than $8 trillion The number

is so staggering that it hardly seems real, even when economistsissue bleak warnings about how much every American owes—currently about $25,000 Of course, Congress never hands each tax-payer a bill for that amount Instead, the federal government usesyour hard-earned money to pay interest on this debt, which is likemaking minimum payments on a credit card Notice that the prin-cipal never goes down In fact, it is rising steadily

The problem is very simple: Congress almost always spendsmore each year than the IRS collects in revenues Federal spendingalways goes up, but revenues are not so dependable, especiallysince raising income taxes to sufficiently fund the governmentwould be highly unpopular So long as Congress spends more

than the government takes via taxes, the federal government mustraise taxes, print more dollars, or borrow money.

Over the last three years, we have witnessed an unprecedentedexplosion in federal spending The national debt has actuallyincreased an average of $16 billion a day since September 30, 2003!Federal law limits the total amount of debt the Treasury cancarry Despite a historic increase in the debt limit in 2002 andanother increase in 2003, the current limit of $7.38 trillion wasreached last month So Congress must once again vote to raise thelimit Hard as it may be for the American people to believe, manyexperts expect government spending will exceed this new limitnext year!

Increasing the national debt sends a signal to investors that thegovernment is not serious about reining in spending Thisincreases the risk that investors will be reluctant to buy govern-ment debt instruments The effects on the American economycould be devastating The only reason why we have been able toendure such large deficits without skyrocketing interest rates is thewillingness of foreign nations to buy the federal government’sdebt instruments However, the recent fall in the value of the dol-lar and rise in the price of gold indicate that investors may beunwilling to continue to prop up our debt-ridden economy Fur-thermore, increasing the national debt will provide more incentivefor foreign investors to stop buying federal debt instruments at thecurrent interest rates Mr Speaker, what will happen to ouralready fragile economy if the Federal Reserve must raise interestrates to levels unseen since the 1970s to persuade foreigners to buygovernment debt instruments?

The whole point of the debt ceiling law was to limit borrowing

by forcing Congress into an open and presumably somewhatshameful vote when it wants to borrow more than a preset amount

of money Yet, since there have been no political consequences formembers who vote to raise the debt limit and support the outra-geous spending bills in the first place, the debt limit has becomemerely another technicality on the road to bankruptcy

The only way to control federal spending is to take away thegovernment’s credit card Therefore, I call upon my colleagues toreject S 2986 and, instead, to reduce government spending It istime Congress forces the federal government to live within its

constitutional means Congress should end the immoral practice ofexcessive spending and passing the bill to the next generation „

on American stock exchanges is easily understood when one siders the costs Sarbanes-Oxley imposes on businesses According

con-to a survey by Kron/Ferry International, Sarbanes-Oxley cost tune 500 companies an average of $5.1 million in complianceexpenses in 2004, while a study by the law firm of Foley and Lard-ner found the Act increased costs associated with being a publiclyheld company by 130 percent

For-Many of the major problems stem from Section 404 of Oxley, which requires Chief Executive Officers to certify the accu-racy of financial statements It also requires that outside auditors

Sarbanes-“attest to” the soundness of the internal controls used in preparingthe statements—an obvious sop to auditors and accounting firms.The Public Company Accounting Oversight Board defines internalcontrols as “controls over all significant accounts and disclosures

in the financial statements.” According to John Berlau, a WarrenBrookes Fellow at the Competitive Enterprise Institute, the defini-tion of internal controls is so broad that a CEO possibly could befound liable for not using the latest version of Windows! Financialanalysts have identified Section 404 as the major reason whyAmerican corporations are hoarding cash instead of investing it innew ventures

Journalist Robert Novak, in his column of April 7, said that,[f]or more than a year, CEOs and CFOs have been

telling me that 404 is a costly nightmare [and] ask

nearly any business executive to name the biggest

men-ace facing corporate America, and the answer is apt to

be number 404 a dagger aimed at the heart of the

economy

Compounding the damage done to the economy is the harmSarbanes-Oxley does to constitutional liberties and due process.CEOs and CFOs can be held criminally liable, and subjected to 25years in prison, for inadvertent errors Laws criminalizing honestmistakes done with no intent to defraud are more typical of policestates than free societies I hope those who consider themselvescivil libertarians will recognize the danger of imprisoning citizensfor inadvertent mistakes, put aside any prejudice against privatebusinesses, and join my efforts to repeal Section 404

The U.S Constitution does not give the federal governmentauthority to regulate the accounting standards of private corpora-tions These questions should be resolved by private contractsbetween a company and its shareholders, and by state and local reg-ulations Let me remind my colleagues who are skeptical of the abil-ity of markets and local law enforcement to protect against fraud: themarket passed judgment on Enron, in the form of declining stockprices, before Congress even held the first hearing on the matter My

colleagues also should keep in mind that certain state attorneys eral have been very aggressive in prosecuting financial crimes.Section 404 of the Sarbanes-Oxley Act has raised the costs ofdoing business, thus causing foreign companies to withdraw fromAmerican markets and retarding economic growth By criminaliz-ing inadvertent mistakes and exceeding congressional authority,Section 404 also undermines the rule of law and individual liberty.

gen-I therefore urge my colleagues to cosponsor the Due Process andEconomic Competitiveness Restoration Act „

The Republican Congress Wastes Billions Overseas

Congressional Record—U.S House of Representatives

July 20, 2005

Mr Speaker, I rise in strong opposition to this foreign relationsauthorization bill Something has gone terribly wrong with ourforeign policy when we feel we must take almost $21 billion out ofthe pockets of the American taxpayer and ship it overseas Imag-ine what the Founders of this country would say if they wereamong us to see this blatant disregard for the Constitution and forthe founding principles of this country This bill proceeds from theview that with enough money we can buy friends and influenceforeign governments But as history shows us, we cannot The tril-lions of dollars we have shipped overseas as aid, and to influenceand manipulate political affairs in sovereign countries, has notmade life better for American citizens It has made them muchpoorer without much to show for it, however

Now we have a Republican-controlled Congress and WhiteHouse, and foreign spending soars It was not that long ago whenconservatives looked at such cavalier handling of U.S tax dollars

with consternation Now it seems that they are in a race with theLeft to see who can spend more

What is wrong with this bill? Let me just mention a few of themost egregious items In the name of promoting “religious liberty”and “fighting anti-Semitism” this bill will funnel millions of dol-lars to the corrupt Organization for Security and Cooperation inEurope (OSCE) and its Office of Democratic Institutions andHuman Rights (ODIHR) This unaccountable international organ-ization is at the forefront of the manipulation and meddling in theinternal affairs of other sovereign states, and has repeatedly dis-honored itself through politically-biased monitoring of foreignelections The OSCE does not deserve a penny from the Americantaxpayer, but this bill will make sure that the lavishly paid bureau-crats that staff the organization will be able to maintain their stan-dard of living—at our expense With regard to religious liberty,privately funded voluntary organizations have been shown to bemuch more effective in promoting tolerance This is mainly truebecause these are true grassroots organizations with a stake intheir countries and communities, rather than unelected interna-tional bureaucrats imposing politically correct edicts from above This bill spends a total of $4.5 billion on various United Nationsactivities, UN peacekeeping, and U.S dues to various internationalorganizations Forcing the taxpayer to continue to underwritethese organizations, which do not operate in our best interests, isunconscionable

This bill continues to fund organizations such as the NationalEndowment for Democracy, which as I have written before hasvery little to do with democracy It is an organization that uses U.S.tax money to actually subvert democracy, by showering funding

on favored political parties or movements overseas It underwritescolor-coded “people’s revolutions” overseas that look more likepages out of Lenin’s writings on stealing power than genuineindigenous democratic movements The NED used American tax-payer dollars to attempt to guarantee that certain candidates over-seas are winners and others are losers in the electoral processesoverseas What kind of message do we think this sends to foreignstates? The National Endowment for Democracy should receive nofunding at all, but this bill continues to funnel tens of millions ofdollars to that unaccountable organization

I am also very concerned about several of the amendments tothis legislation First, the extremely misleading UN “reform” actwas slipped into this bill even though it was already passed onthe floor as a separate bill As I have written about this terriblelegislation, “it will give the United Nations unprecedented newauthority to intervene in sovereign states.”

Another amendment will create a chilling “Active ResponseCorps,” to be made up of U.S government bureaucrats and mem-bers of “nongovernmental organizations.” Its purpose will be to

“stabilize” countries undergoing “democratic transition.” Thismeans that as soon as the NED-funded “people’s revolutionaries”are able to seize power in the streets, U.S funded teams will bedeployed to make sure they retain power All in the name ofdemocracy, of course

Mr Speaker, this is a shameful day for the U.S Congress We aretaking billions out of the pockets of Americans and sending themoney overseas in violation of the Constitution These are billionsthat will not be available for investment inside the United States:investment in infrastructure, roads, new businesses, education.These are billions that will not be available to American families, totake care of their children or senior relatives, or to give to theirchurches or favorite charities We must not continue to spendmoney like there is no tomorrow We are going broke, and bills likethis are like a lead foot on the accelerator toward bankruptcy „

So-Called “Deficit Reduction Act”

Congressional Record—U.S House of Representatives

November 18, 2005

Mr Speaker, as one who has long urged my colleagues to cutspending, and who has consistently voted against excessive andunconstitutional expenditures, I am sure many in this body expect

me to be an enthusiastic supporter of H.R 4241, the Deficit tion Act After all, supporters of this bill are claiming it dramati-cally reforms federal programs and puts Congress back on theroad to fiscal responsibility.

Reduc-For all the passionate debate this bill has generated, its effects

on the federal government and taxpayers are relatively minor.H.R 4241 does not even reduce federal expenditures! That’sright—if H.R 4241 passes, the federal budget, including entitle-ment programs, will continue to grow H.R 4241 simply slowsdown the rate of growth of federal spending The federal govern-ment may spend less in the future if this bill passes than it other-wise would, but it will still spend more than it does today To putH.R 4241 in perspective, consider that this bill reduces spending

by less than $50 billion over ten years, while the most recent

“emergency” supplemental passed by this Congress appropriated

$82 billion to be spent this year

H.R 4241 reduces total federal entitlement expenditures by onehalf of 1 percent over the next five years For all the trumpetingabout how this bill gets “runaway entitlement spending” undercontrol, H.R 4241 fails to deal with the biggest entitlement prob-lem facing our nation—the multibillion dollar Medicare prescrip-tion drug plan, which actually will harm many seniors by causingthem to lose their private coverage, forcing them into an inferiorgovernment-run program In fact, the Medicare prescription drugplan will cost $55 billion in fiscal year 2006 alone, while H.R 4241will reduce spending by only $5 billion next year Yet some Housemembers who voted for every expansion of the federal govern-ment considered by this Congress will vote for these small reduc-tions in spending and then brag about their fiscal conservatism totheir constituents

As is common with bills claiming to reduce spending, themajority of spending reductions occur in the later years of theplan Since it is impossible to bind future Congresses, this repre-sents little more than a suggestion that spending in fiscal years

2009 and 2010 reflect the levels stated in this bill My fiscallyresponsible colleagues should keep in mind that rarely, if ever,does a Congress actually follow through on spending reductionsset by a previous Congress Thus, relying on future Congresses tocut spending in the “out years” is a recipe for failure

One provision of the bill that undeniably would have benefitedthe American people, the language opening up the ANWR region

of Alaska and expanding offshore drilling, was removed from thebill As my colleagues know, increased gas prices are a top concern

of the American people Expanding the supply of domesticallyproduced oil is an obvious way to address these concerns, yet Con-gress refuses to take this reasonable step

Mr Speaker, some of the entitlement reforms in H.R 4241 areworthwhile For example, I am hopeful the provision allowingstates to require a co-payment for Medicaid will help relievephysicians of the burden of providing uncompensated care, which

is an issue of great concern to physicians in my district Still, I amconcerned that the changes in pharmaceutical reimbursement pro-posed by the bill may unfairly impact independent pharmacies,and I am disappointed we will not get to vote on an alternativethat would have the same budgetary impact without harmingindependent pharmacies

I also question the priorities of singling out programs, such asMedicaid and food stamps, that benefit the neediest Americans,while continuing to increase spending on corporate welfare andforeign aid Just two weeks ago, Congress passed a bill sending $21billion overseas That is $21 billion that will be spent this fiscalyear, not spread out over five years Then, last week, Congresspassed, on suspension of the rules, a bill proposing to spend $130million on water projects—not in Texas, but in foreign nations!Meanwhile, the Financial Services Committee, on which I sit, hasbegun the process of reauthorizing the Export-Import Bank, whichuses taxpayer money to support business projects that cannotattract capital in the market Mr Speaker, the Export-ImportBank’s biggest beneficiaries are Boeing and communist China Ifind it hard to believe that federal funding for Fortune 500 compa-nies and China is a higher priority for most Americans than Med-icaid and food stamps

H.R 4241 fails to address the root of the spending problem—the belief that Congress can solve any problem simply by creating

a new federal program or agency However, with the federal ernment’s unfunded liabilities projected to reach as much as $50trillion by the end of this year, Congress no longer can avoid seri-ous efforts to rein in spending Instead of the smoke-and-mirrors

gov-approach of H.R 4241, Congress should begin the journey towardfiscal responsibility by declaring a 10 percent reduction in realspending, followed by a renewed commitment to reduce spending

in a manner consistent with our obligation to uphold the tution and the priorities of the American people This is the onlyway to make real progress on reducing spending without cuttingprograms for the poor while increasing funding for programs thatbenefit foreign governments and corporate interests „

Consti-What Congress Can Do About Soaring Gas Prices

Congressional Record—U.S House of Representatives

First: We must reassess our foreign policy and announce somechanges One of the reasons we went into Iraq was to secure “our”oil Before the Iraq war oil was less than $30 per barrel; today it isover $70 The sooner we get out of Iraq and allow the Iraqis tosolve their own problems the better Since 2002 oil production inIraq has dropped 50 percent Pipeline sabotage and fires are rou-tine; we have been unable to prevent them Soaring gasolineprices are a giant unintended consequence of our invasion, pureand simple

Second: We must end our obsession for a military confrontationwith Iran Iran does not have a nuclear weapon, and according to

our own CIA is not on the verge of obtaining one for years Iran isnot in violation of the Nuclear Nonproliferation Treaty, and has aguaranteed right to enrich uranium for energy—in spite of theincessant government and media propaganda to the contrary.Iran has never been sanctioned by the UN Security Council Yetthe drumbeat grows louder for attacking certain sites in Iran,either by conventional or even nuclear means Repeated resolu-tions by Congress stir up unnecessary animosity toward Iran, andcreate even more concern about future oil supplies from the Mid-dle East We must quickly announce we do not seek war withIran, remove the economic sanctions against her, and accept heroffer to negotiate a diplomatic solution to the impasse An attack

on Iran, coupled with our continued presence in Iraq, could hikegas prices to $5 or $6 per gallon here at home By contrast, a sensi-ble approach toward Iran could quickly lower oil prices by $20 perbarrel

Third: We must remember that prices of all things go upbecause of inflation Inflation by definition is an increase in themoney supply The money supply is controlled by the FederalReserve, and responds to the deficits Congress creates Whendeficits are excessive, as they are today, the Fed creates new dol-lars out of thin air to buy Treasury bills and keep interest rates arti-ficially low But when new money is created out of nothing, themoney already in circulation loses value Once this is recognized,prices rise—some more rapidly than others That’s what we seetoday with the cost of energy

Exploding deficits, due to runaway entitlement spending andthe cost of dangerous militarism, create pressure for the Fed toinflate the money supply This contributes greatly to the higherprices we all claim to oppose

If we want to do something about gas prices, we shoulddemand and vote for greatly reduced welfare and military spend-ing, a balanced budget, and fewer regulations that interfere withthe market development of alternative fuels We also shoulddemand a return to a sound commodity monetary system

All subsidies and special benefits to energy companies should

be ended And in the meantime let’s eliminate federal gas taxes atthe pump