Sen. Bob Graham: “That document just underscores what the consequences will be if we do not adopt this amendment. I assume the logic of…”

“That document just underscores what the consequences will be if we do not adopt this amendment. I assume the logic of that statement of the consequences of adopting this amendment is that we should not adopt this amendment and that we should not balance the budget; that we should continue to do the easy thing, which is to let our children and grandchildren pay our costs. Finally, if there ever was a year in which we should be substantially reducing the deficit, it is 1994. Most of the arguments against this amendment have been predicated on extreme years of fiscal stress on our Nation: Times of war, times of depression or recession. This is neither a time of war nor a time of depression or recession. In fact, this is a time of booming economic growth. Unemployment has fallen sharply, down nearly a full percentage point since 1993. Housing starts rose 25 percent between July and December. Spending for durable equipment is expanding at its fastest pace since 1972. Inflation is low, prices rose just 2.7 percent in 1993, the smallest increase since 1986. Last month, for the first time in more than 4 years, consumer prices were virtually flat. The economy is so strong that the Federal Reserve has raised interest rates and threatens to do so again. If we cannot balance our budget, if we cannot show some serious movement in deficit reduction in a year like 1994, when are we ever going to do it?”