Representative John Yarmuth on President Biden’s Fiscal Year 2022 Budget Request

C-SPAN: “HOW CAN WE SPEND $6 TRILLION AND ALL THE OTHER MONEY PRESIDENT BIDEN WANTS TO SPEND? HOW CAN WE AFFORD IT?”

REP. JOHN YARMOUTH: “WE CAN AFFORD IT BECAUSE WE DETERMINE HOW MUCH MONEY IS IN THE SYSTEM. THE FEDERAL GOVERNMENT IS NOT LIKE ANY OTHER USER OF CURRENCY, NOT ANY LOCAL STATE OR GOVERNMENT.

WE ISSUE OUR OWN CURRENCY AND WE CAN SPEND ENOUGH TO MEET THE NEEDS OF THE AMERICAN PEOPLE.

THE ONLY CONSTRAINT BEING THAT WE DO HAVE TO WORRY ABOUT INFLATION FROM ASPEN — FROM THAT SPENDING.

WE HAVE SO MUCH DEBT AND OUR GRANDCHILDREN, IT IS GOING TO BE ON THEIR BACKS. THAT IS NOT THE WAY IT WORKS.

THE MAKING NEED AN EDUCATION ON HOW THE MONETARY SYSTEM DOES WORK.

I REMEMBER WHEN PAUL RYAN WAS CHAIR OF THE BUDGET COMMITTEE AND EVEN BEFORE THAT, ALL OF THESE FORECASTS ABOUT GLOOM AND DOOM ABOUT HOW WE ARE GOING TO IQ THAT DEBT AND INTEREST RATES WILL CROWD OUT OTHER SPENDING.

WE BASICALLY DOUBLED THE NATIONAL DEBT FROM THE RECESSION IN 2009 UNTIL LAST YEAR BEFORE THE PANDEMIC.

NONE OF THE THINGS THAT PEOPLE WANT WOULD HAPPEN, HAPPENED. WE DID NOT HAVE INFLATION.

WE HAD RECORD LOW INTEREST RATES. THE DOLLAR WAS TRADING WITH NORMAL LEVELS, VIS-A-VIS, OTHER CURRENCIES.

A LOT OF ECONOMISTS HAVE BEGUN TO SAY MAYBE WE HAVE BEEN THINKING ABOUT DEBT IN AN ENTIRELY DIFFERENT WAY.

EVEN FED CHAIR JAY POWELL HAS BASICALLY SAID WE HAVE THE PHYSICAL SPACE TO DO WHAT WE NEED TO DO RIGHT NOW TO MAKE THE INVESTMENTS WE NEED TO MAKE TO BUILD THE KIND OF ECONOMY FOR THE FUTURE WE ALL HOPE WE WILL HAVE.”

C-SPAN: “WHY ARE PEOPLE WRONG ABOUT THIS? HOW SHOULD WE BE THINKING ABOUT DEBT AND DEFICIT?”

REP. JOHN YARMOUTH: “I DON’T GET ANY ROYALTIES BUT I WOULD FLOG A WORK CALLED “THE DEFICIT MYTH.”

IT HAS BECOME A BESTSELLER. SHE SAYS IF YOU LOOK AT THE NATIONAL DEBT, $20 TRILLION RIGHT NOW, SHE SAID DON’T THINK OF IT AS DEBT. 

THINK OF IT AS THE MONEY THE GOVERNMENT HAS INVESTED IN THE COUNTRY OVER OUR HISTORY MINUS TAXES. THAT IS WHAT IT IS. 

THE 20TH TRILLION DOLLARS DID NOT EXIST — THE $20 TRILLION DID NOT EXIST BEFORE THE FEDERAL GOVERNMENT ISSUED THEM. 

THE FEDERAL GOVERNMENT HAS THE ABILITY TO CREATE FINANCING AND THAT IS WHAT WE WILL CONTINUE TO DO. 

THE THING I AM SO IMPRESSED ABOUT FROM THE BIDEN ADMINISTRATION IS THAT THEY ARE REVERSING DECADES AND DECADES OF OUR ASKING QUESTIONS IN THE WRONG ORDER. 

HISTORICALLY, WHAT WE HAVE DONE IS SAID WHAT CAN WE AFFORD TO DO? THE RIGHT QUESTION IS, WHAT DO THE AMERICAN PEOPLE NEED US TO DO? 

THAT BECOMES THE FIRST QUESTION. ONCE YOU ANSWER THAT, YOU SAY HOW DO YOU RESOURCE THAT NEED? 

THAT IS NOT JUST MONEY, THAT IS ALSO CAPACITY. 

FOR INSTANCE, THERE IS A $225 BILLION INVESTMENT IN CHILDCARE IN THE AMERICAN FAMILIES PLAN. 

YOU CAN’T JUST SAY WE’RE GOING TO GET $225 BILLION TO PEOPLE TO PAY FOR CHILDCARE BECAUSE THERE IS NOT ENOUGH CAPACITY. 

SO YOU MAKE A FALSE PROMISE AND SUBTRACT THE PRICE AND JACK THE PRICE OF EXISTING CHILDCARE EVEN HIGHER.

YOU HAVE TO SPEND PART OF THAT MONEY ON BUILDING CAPACITY SO THERE IS ENOUGH CHILDCARE TO SERVICE THE PURPLE WHO NEED IT. 

AGAIN, THERE ARE DIFFERENT WAYS OF THINKING ABOUT MONEY. 

I UNDERSTAND WHY MOST PEOPLE DON’T UNDERSTAND THIS CONCEPT. 

THEY THINK OF IT IN THEIR OWN FRAMEWORK WHICH IS WITHIN THEIR HOUSEHOLD WHICH IS YOU CAN’T BORROW SO MUCH MONEY YOU CAN’T PAY BACK. 

THAT IS NOT THE POSITION THE GOVERNMENT IS IN.”

 

C-SPAN: “ARE YOU SAYING WE CAN JUST PRINT MORE MONEY AND THERE ARE NO CONSEQUENCES?”

 

REP. YARMOUTH: “THERE COULD BE CONSEQUENCES IF THERE IS TOO MUCH INFORMATION. I WILL GIVE YOU A HYPOTHETICAL. WE COULD SAY WE ARE GOING TO GIVE EVERY AMERICAN FAMILY AT $200,000 VOUCHER TO BUY A HOUSE. WE COULD DO THAT, BUT WHAT WOULD HAPPEN? THERE IS NOT ENOUGH HOUSING SO THE PRICES WOULD GO THROUGH THE ROOF. YOU WOULD BE CREATING A FALSE PROMISE. MEANWHILE, YOU DRIVE UP FEE-MARKET TO AN UNSUSTAINABLE LEVEL. THERE IS A LIMIT TO HOW MUCH MONEY WE CAN EJECT INTO THE ECONOMY. THE THING ABOUT THE RESCUE PLAN, AND THIS IS WHERE KEVIN HERN MAKES A MISTAKE, HE SAID $6 TRILLION FOR THE AMERICAN FAMILY PLAN AND JOBS PLAN. IT IS NOT THAT MUCH, BUT THAT IS OVER EIGHT TO 10 YEARS. THE $6 TRILLION BUDGET THE PRESIDENT PROPOSED ACTUALLY WOULD HAVE BEEN $5.7 TRILLION IF YOU HAD NO AMERICAN JOBS PLAN OR RESCUE PLAN. ONLY $300 BILLION IS IN FISCAL YOUR 22. — FISCAL YEAR 22. THESE ARE NUMBERS THAT ARE VERY LARGE BUT SPREAD OUT OVER A NUMBER OF YEARS. THAT IS WHY I THINK THE FED CHAIR AND OTHERS HAVE SAID WE HAVE TO FISCAL SPACE TO DO THIS BECAUSE INJECTING THIS OVER A PERIOD OF TIME WILL NOT CAUSE THE KIND OF INFLATION THAT IS DANGEROUS.”

 

 

 

00:05:43

THERE COULD BECAUSE —

00:05:46

THIS HEADLINE IS ON FOX NEWS’S WEBSITE AND THEY ARE QUOTING THE TAX FOUNDATION THAT THEY SAY FOUND THE PRESIDENT’S BUDGET WOULD CAUSE THE ECONOMY TO SHRINK BY 1% OVER THE NEXT 10 YEARS AND COST THE ECONOMY 60 500,000 — 65,000 JOBS.

 Show Less Text

00:07:34

I DON’T KNOW HOW YOU SHRINK THE ECONOMY WHEN YOU ARE ADDING THAT MUCH MONEY TO IT. I WOULD LIKE TO READ THAT ANALYSIS.

00:07:41

WILL YOUR BUDGET MIRROR PRESIDENT BIDEN’S BUDGET IN EVERY WAY?

 

NOT IN EVERY WAY. WE ARE MEETING WITH ALL OF THE COMMITTEE CHAIRS AND VARIOUS CAUCUSES TO GET THEIR INPUT AS TO WHAT THEY WANT TO SEE IN A BUDGET RESOLUTION. ON A SEPARATE TRACK, WE ARE TRYING TO DECIDE WHAT WOULD GO INTO THE RECONCILIATION INSTRUCTIONS THAT WILL BE PART OF THAT. RECONCILIATION INSTRUCTIONS, THAT IS THE PROCESS BY WHICH YOU CAN PASS SOMETHING IN THE SENATE WITH A SIMPLE MAJORITY. THOSE DECISIONS HAVE NOT BEEN MADE. SUSPECT THAT A LOT OF WHAT IS IN THE PRESIDENT’S BUDGET WILL FIND ITS WAY INTO THE BUDGET RESOLUTION. THERE WILL BE SOME DEFINITE CHANGES. OUR MEMBERS ARE INDEPENDENT THINKERS.

 

DO YOU SUSPECT THE PRESIDENT’S AND FOR STRUCTURE PROPOSALS MAKE IT INTO THE BUDGET — INFRASTRUCTURE PROPOSALS MAKE IT INTO THE BUDGET?

00:08:47

WE ARE ASSUMING THERE WILL BE NO BIPARTISAN AGREEMENT IN THE SENATE. WE ARE PROCEEDING AS IF THE AMERICAN JOBS PLAN AND AMERICAN FAMILY PLAN WILL BE IN THE RECONCILIATION INSTRUCTIONS WE SENT TO THE SENATE. WE INSTRUCTED OUR OWN COMMITTEES TO DO THAT. IF THEY COME UP WITH A BIPARTISAN DEAL, LET’S SAY IT IS $1 TRILLION, WE WOULD TAKE THAT OUT OF THE RECONCILIATION INSTRUCTIONS. NEITHER PROCESS PRECLUDES THE OTHER. WE HOPE THE SENATE DOES REACH AN BIPARTISAN AGREEMENT — REACH A BIPARTISAN AGREEMENT AND THE REST OF IT BE DONE BY RECONCILIATION.

Leave a Reply

Your email address will not be published. Required fields are marked *