Hoyer: PAYGO Is Key To Economic Recovery

By Benny Martinez - University of New Mexico/Talk Radio News Service

House Majority Leader Steny Hoyer (D-Md.) said Monday that following the rules of PAYGO is crucial to keeping the U.S. from falling even further into debt.

In a speech given at the Brookings Institute in Washington, D.C., Hoyer discussed various fiscal responsibilities of the Obama administration, and said programs like PAYGO "are essential, but they are not enough."

The Majority Leader applauded President Barack Obama for creating a bipartisan fiscal commission and appointing former White House Chief of Staff Erksine Bowles and ex-Senator Alan Simpson (R-Wyo.) to chair it.

"Given the seriousness of our situation, the commission must come to a consensus, and Congress must act on its proposals at the end of the year," Hoyer said.

Hoyer attributed the success of PAYGO to its role in creating a projected economic surplus during the Clinton administration. Hoyer also recognized that the decision by the Bush administration to abandon PAYGO "paved the way for record borrowing and threw us back in the red."

Hoyer said that he remains confident that the character of the U.S. will serve as the backbone of economic recovery, but reminded those in attendance that it will not happen overnight.

"It will take bipartisan trust, presidential leadership and public spirit," Hoyer said. "If we are unable to raise our heads even for a moment above the daily partisan fight, if the collapse comes, we will deserve it."

PAYGO Passed And Antitrust Legislation Is Next, Says Pelosi

By Benny Martinez - University of New Mexico/Talk Radio News Service

Speaker of the House Nancy Pelosi (D-Calif.) said Thursday that PAYGO will soon be at President Barack Obama's desk.

"Today we [passed] on the floor of the House Pay-As-You-Go," Pelosi said. "Remember this: this is a very important day and judge Congress by its adherence to this important legislation. We owe it to our children and our grandchildren."

Under PAYGO, the government will be required to offset spending by making cuts elsewhere.

Pelosi said that a jobs bill remains a high priority. The House's version was passed in December of 2009 and is currently awaiting Senate approval.

Next on the agenda is legislation to deny antitrust exclusions for insurance companies. In an effort to disrupt collusion and price fixing, Pelosi said that legislation should be passed next week while efforts with a larger health care reform bill stall.

"When signed into law [antitrust legislation] will increase competition, give consumers more choices and, we believe, lower costs for health care in our country," Pelosi said.

Pelosi Supports President's Pay-As-You-Go Method

By Courtney Ann Jackson-Talk Radio News Service

The acceleration of President Obama's pay-as-you-go initiative, a method that would require Congress to use current revenues for capital items instead of borrowing funds by issuing bonds, and health care reform are important steps in turning the economy around, according to U.S. Speaker of the House Nancy Pelosi (D-Calif.). Pelosi and other legislators met with the President earlier this week as he announced the details of the PAYGO initiative.

The U.S. operated under the PAYGO method throughout the 1990’s. Pelosi credited it for leading to the balanced budgets and eventual surplus of the Clinton administration. 

“Democrats are coming together around this concept. For many years it has been the central organizing purpose of the blue dogs: fiscal discipline, fiscal responsibility...But I want you to know that there are initiatives from all sectors of our caucus which support pay as you go,” said Pelosi today during a press conference.

Pelosi said she was enthusiastic about “accelerating the (PAYGO) discussion” as a tool to improve the economy and initiate healthcare reform in the U.S.

The Speaker touched upon what kind of healthcare model Congress will pursue.

“It should be administratively self-sufficient. It should be a real competitor with the private sector and not have an unfair advantage. When you say the words public option and that is the term of art we will be using, you have to say right next to it: level playing field.”

She said Congress will soon consider legislation on the supplemental appropriations bill for Iraq, Afghanistan, Pakistan, and pandemic flu. The House will also consider legislation to give the Food and Drug Administration legal authority to regulate how cigarettes and other tobacco products are produced and distributed.  Committee work will be focused on the pillars of the President’s agenda which were in the budget. They include: health care, education, energy, reducing the deficit, lowering taxes, creating jobs, and turning the economy around.

Hoyer: Democrats Back Pay-As-You-Go Rule Reinstatement

During a meeting with reporters, House Majority Leader Steny Hoyer (D-Md.) expressed his party’s commitment to reinstating a pay-as-you-go policy that would require Congress to offset spending by cutting an equal amount of funding elsewhere.

Hoyer described PAYGO as a vital tool for rebalancing the U.S. budget.

“The speaker and I met with President last week.  One of the points he made which I strongly agree is that pursuing fiscal responsibility and balance is one of our most important objectives,” said Hoyer.

Hoyer said that he plans on introducing the legislation that would reinstate PAYGO sometime next week.

PAYGO was effectuated in the 1990s, but ended in the early days of the George W. Bush administration. Hoyer blamed Republicans for ending the policy in order to afford tax cuts for the wealthy that occured during Bush’s two terms.