Kent Conrad: “I want to start by putting in perspective where we are in the fiscal condition of the country as we consider this…”

“I want to start by putting in perspective where we are in the fiscal condition of the country as we consider this request from the President for $87 billion for Iraq. I think it is important for us first to recognize we already face next year a record budget deficit of $535 billion. But that really understates the seriousness of the problem because, on top of that, under the President's proposal, we will also be taking $160 billion of Social Security trust fund money to pay for other things. That gives a total operating deficit for next year approaching $700 billion. Some have said, well, it is really relatively small as a share of our gross domestic product. That is not correct. Fairly measured, the operating deficit next year is the biggest we have had since World War II. If we look at the Social Security trust fund, if we back that out and we treat it the same way in 1983, what we see is the deficit as a percentage of GDP is the biggest it has been since World War II. This is a huge deficit, however measured. The President has told us these deficits will be small and short term. Wrong again. They are not small; they are huge by any terms, dollar terms or GDP terms. Beyond that, they are long lasting. In fact, according to the President's own analysis, they go on and on and on, and they get worse as the baby boom generation begins to retire. Just over the next decade, we see an ocean of red ink.…”