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[Page: S10404]  GPO's PDF
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   Mr. JEFFORDS. Mr. President, I rise today to discuss the state of our economy. I was heartened to read in this morning's Washington Post that the administration is finally acknowledging our economy is in trouble. Of course, it came as the Republican National Committee was writing a memo to send to its campaign, reporting that internal polling shows the economy is the most important issue to voters. Surprise. It seems the Bush administration is more interested in responding to recent poll numbers than responding to the economic indicators that have been staring them in the face for more than a year.

   The economic statistics are most troubling. Business investment is down. The annual growth of business investment is 7.6 percent, the weakest business investment trend under any administration in the past 50 years. Consumer confidence is down. Between January of 2001 and August of 2002, consumer confidence dropped by nearly one-fifth. The stock market is down, as everyone knows. Between January 2001 and September 2002, stocks listed on the New York stock market exchange and the Nasdaq markets lost $5.2 trillion in market value, a loss of more than 35 percent, or more than $9 billion per day.

   The 23 percent average annual decline in the S&P average index under the current administration is the sharpest decline since the Hoover administration. Last month was the worst September performance for the Dow Jones industrial average since 1937.

   The Congressional Budget Office said last Friday the Federal Government 2002 deficit will hit $157 billion. This onslaught of red ink is truly remarkable. It is being driven by the largest percentage drop in individual tax revenues since 1947. That is over 50 years ago.

   Let me give the folks a little Yankee economic wisdom. People pay less in taxes when their earnings go down. We are now spending Social Security revenues to balance our budgets for the first time since 1997. Ninety-four percent of the surpluses projected when President Bush took office have already disappeared. That is a $5.3 trillion drop in just 2 years. If the past is any guide, we can expect higher interest rates in the future as the Government competes with the private sector for capital.

   With all of this, I was stunned to receive a letter from the Congressional Budget Office late Friday which indicates even more layoffs of American

[Page: S10405]  GPO's PDF

   I quote the letter of October 11, 2002, from the Director of CBO regarding the amendment being proposed by the other body:

   With the amendment, CBO would reduce its estimate of 2003 obligations and outlays under a full-year continuing resolution by $4.1 billion and $1.1 billion, respectively.

   I am convinced that we need more leadership from the White House on the issue of jobs for American families. Our attention is constantly being diverted by the White House talk of war. Unemployment in September stood at 8.1 million Americans. This does not count those who have given up hunting

   for work. That is 1 million more unemployed as compared to a year ago. Families whose unemployment benefits have long since run out are focused on how they will pay their rent or make their mortgage payments or, even worse, where they will get their very next meal.

   Construction jobs are good jobs. Each $1 billion spent on highway projects creates 47,500 full-time jobs. These jobs help the entire economy, not just the transportation sector. The cut in funding highlighted by the CBO letter means nearly 200,000 Americans will not find gainful employment, which they could find if it was better handled.

   According to the Department of Transportation , our network of highways contributes, on an average, one-quarter of the yearly productive growth rate in the United States.

   To quote the Department of Transportation :

   This highlights the highway network's importance to maintaining economic growth.

   The White House needs to listen to its own transportation department. The U.S. Department of Transportation says for each $1 billion invested in highways, almost 8,000 direct on-site highway construction jobs are created. For each $1 billion invested, around 20,000 supply industry jobs are created. For each $1 billion invested, around 15,000 jobs are supported within the general economy as highway construction employees spend their wages.

   I say to the White House, devote at least some attention away from Iraq and to getting Americans back to work. I urge the White House to support funding in the continuing resolution which allows us spending at the rate of $31.8 billion, equal to last year's level.

   As chairman of the Environment and Public Works Committee, I will work with the congressional leadership to assure maximum funding possible for the reauthorization of the transportation bill.

   I feel sad today when I look at the economy and think what it could be or should be; yet we are spending all our time on an important issue, no question, about the status of Iraq. But I hope this body will turn its attention now to economics and the problems we are having and those that will lie ahead if we do not take action now.

   I yield the floor and suggest the absence of a quorum.

   The PRESIDING OFFICER. The clerk will call the roll.

   The bill clerk proceeded to call the roll.

   Mr. DASCHLE. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

   The PRESIDING OFFICER. Without objection, it is so ordered.

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