ALTERED. AND WE HAVE HAD THIS EXPERIENCE BEFORE OF A VERY
           AGGRESSIVE APPETITE TO REDUCE TAXES ONLY TO DISCOVER THAT WE
           RUN INTO A RECESSION, EXPERIENCED VERY SIGNIFICANT FEDERAL
           BUDGET DEFICITS, THEN THE CONFIDENCE OF THE AMERICAN PEOPLE
           ABOUT THE FUTURE TENDS TO ERODE A BIT AND YOU HAVE A FURTHER
           ECONOMIC CONTRACTION. I WOULD SAY TO THE SENATOR FROM WEST
           VIRGINIA, ONE OF THE THINGS THAT I THINK IS VERY IMPORTANT IS
           TO THE EXTENT THAT THERE WOULD BE TAX CUTS FOLLOWING REDUCTION

           IN FEDERAL DEBT AND SHORING UP SOCIAL SECURITY, I HOPE THAT IT
           WILL BE TRIGGERED BY THE ACTUAL EXPERIENCE OF A SURPLUS.
           BECAUSE IF YOU DON'T HAVE A MECHANISM TO TRIGGER IT, WHAT WILL
           HAPPEN ULTIMATELY IS YOU WILL EXPERIENCE AN ECONOMIC SLOWDOWN
           -- NO ONE HAS REPEALED THE BUSINESS CYCLE AND WE WILL CONTINUE
           TO HAVE EXPANSIONS AND CONTRACTIONS -- AND WHEN YOU HAVE A
           SLOWDOWN, WE WILL THEN EXPERIENCE SIGNIFICANT BUDGET DEFICITS.
           

           MR. BYRD: THEN IT WOULD BE INCUMBENT UPON US TO MAKE DIFFICULT
           DECISIONS AND ACT TO INCREASE THE REVENUES AGAIN. WELL, I JOIN
           WITH THE SENATOR. I THINK HE PERFORMS A GREAT SERVICE IN
           CALLING TO OUR ATTENTION AND TO THE ATTENTION OF THE AMERICAN
           PEOPLE THE OPTIONS WE FACE. AND I HOPE THAT CONGRESS WILL THINK
           LONG AND CAREFULLY ABOUT WHAT WE DO. WE ARE IN A HAPPY
           SITUATION. BUT WHO KNOWS HOW LONG THAT SITUATION WILL REMAIN
           HAPPY?

           I SEE ALAN GREENSPAN DOWN IN THAT ENGINE ROOM, AND HE IS
           ENTITLED TO A GOOD MANY COMPLIMENTS FROMLL OF US FOR THE GOOD
           WORK THAT HE HAS DONE DONE, THE VISION THAT HE HAS DISPLAYED.
           BUT I JOIN WITH THE SENATOR AND I HOPE HE WILL HELP TO LEAD US
           AS WE MOVE FORWARD IN THE COMING DAYS AND USE HIS GOOD
           ECONOMICS. I THINK I HAD ABOUT ONE SEMESTER OF ECONOMICS WHEN I

           WAS IN HIGH SCHOOL, AND THAT'S ABOUT IT. BUT THE SENATOR FROM
           NORTH DAKOTA HAS HAD EXCELLENT TRAINING, A FINE EDUCATION IN
           THAT FIELD AND I'M GOING TO CONTINUE TO LISTEN AND TO LOOK TO
           HIM FOR LEADERSHIP AS WE GO FORWARD. I THANK HIM VERY MUCH.
           

           MR. DORGAN: MR. PRESIDENT, I THANK THE SENATOR FROM WEST
           VIRGINIA. AND I RAISED THIS ISSUE TODAY ONLY BECAUSE IT WILL BE
           ONE OF PERHAPS FIVE OR SIX SIGNIFICANT ISSUES WE WILL DEBATE IN
           THE COMING MONTHS. AND I DO NOT THINK THAT MY IDEA IS
           EXCLUSIVELY GOOD AND THERE ARE NO OTHER GOOD IDEAS OUT HERE. I
           HAVE GREAT RESPECT FOR OTHERS IN THIS CHAMBER WHO MIGHT
           DISAGREE STRONGLY WITH MY VIEW OF THESE ISSUES. BUT I WANT TO,
           AS WE BEGIN THIS DEBATE, AT LEAST STAKE OUT THE GROUND THAT
           SOME OF US WOULD FEEL STRONGLY ABOUT, OF DEBT REDUCTION AND

           OTHER RESPONSIBLE ACTIONS IN FISCAL POLICY. AND I LOOK FORWARD
           TO THIS. THIS HAS BEEN A TOUGH SIX OR SEVEN WEEKS, AS WE'VE
           STARTED THIS SESSION, BECAUSE OF THE IMPEACHMENT TRIAL. MOST OF
           US COME HERE RELISHING THE IDEA AND FOSTERING THE APPETITE FOR
           DEBATE ABOUT PUBLIC ISSUES THAT REALLY MATTER TO THIS COUNTRY
           AND ECONOMICS AND HEALTH CARE AND EDUCATION. AND SO I LOOK
           FORWARD TO IT IN THE COMING DAYS AND WEEKS.
           

           MR. BYRD: MR. PRESIDENT, WOULD THE SENATOR YIELD?
           
           

           MR. DORGAN: YES.
           

           MR. BYRD: I DON'T WANT TO PROLONG THIS, BUT WOULD HE RESPOND TO THIS QUESTION?
           HOW DO OUR MASSIVE TRADE DEFICITS PLAY INTO THIS WHOLE UATION?
           
           

           MR. DORGAN: WELL, AS THE SENATOR KNOWS, I'VE FELT VERY STRONGLY
           ABOUT OUR TRADE DEFICIT. THE ONE AREA OF OUR ECONOMIC
           PERFORMANCE THAT IS VERY TROUBLING IS THE AREA OF TRADE
           INDEBTEDNESS THAT CONTINUES NOW TO MUSHROOM AND INCREASE. IN
           FACT, JUST IN THE LAST WEEK WEEK, WE SAW AN ANNOUNCEMENT THAT
           WE HAVE EXPERIENCED THE LARGEST TRADE DEFICIT IN THE COUNTRY'S
           HISTORY. AND THOSE DEFICITS, INCIDENTALLY, ARE NOT THE
           MERCHANDISE DEFICITS. THE MERCHANDISE DEFICITS, WHICH I'M MOST

           CONCERNED ABOUT, BECAUSE THAT REFLECTS THE DEFICITS IN TERMS OF
           THE GOODS THAT YOU PRODUCE -- NOT SERVICES, GOODS YOU PRODUCE
           -- AND THAT DESCRIBES SOMETHING ABOUT THE HEALTH OF THE
           MANUFACTURING ECONOMY. AND I DON'T THINK YOU CAN REMAIN A WORLD
           ECONOMIC POWER UNLESS YOU HAVE A VIBRANT, STRONG MANUFACTURING
           SECTOR. I AM VERY CONCERNED ABOUT THE TRADE DEFICITS. AND I
           HAVE SPENT A GREAT DEAL OF TIME TALKING TO OUR TRADE AMBASSADOR
           AND THIS ADMINISTRATION. I THINK OUR TRADE POLICIES NEED
           ADJUSTMENT. IT'S NOT THAT I DON'T BELIEVE WE SHOULDN'T HAVE
           EXPANDED TRADE AROUND THE WORLD. OF COURSE WE SHOULD. BUT THIS

           COUNTRY NEEDS TO STAND  FOR ITS ECONOMIC INTERESTS IN A
           THOUGHTFUL AND USEFUL WAY TO ITS OWN ECONOMIC FUTURE. WE NEED
           TO STAND UP FOR OUR INTERESTS WITH RESPECT TO THE CHINESE AND
           THE JAPANESE AND THE EUROPEANS AND OTHERS, TO SAY THAT OUR
           MARKET IS OPEN TO YOUR GOODS, IT'S WIDE OPEN. BUT ONLY ON THE
           CONDITION THAT TRADE BETWEEN OUR COUNTRY AND YOURS IS FAIR. THE
           FIRST 25 YEARS AFTER THE SECOND WORLD WAR, WE COULD HAVE
           FOREIGN POLICY MASQUERADING AS TRADE POLICY OR THE REVERSE, AND
           WE COULD BEAT ANYBODY ON THE GLOBE IN INTERNATIONAL TRADE WITH

           ONE HAND TIED BEHIND OUR BACK. BUT THAT'S CHANGED. WE FACE
           FORMIDABLE COMPETITORS IN INTERNATIONAL TRADE. AND THE
           CORPORATIONS WHO DO THE BUSINESS AROUND THIS WORLD NOW KIND OF
           EXTRACT THEMSELVES FROM NATIONALIST INTERESTS AND THEY'RE
           SIMPLY INTERESTED IN GETTING ON A PLANE AND FINDING OUT WHERE
           CAN I PRODUCE THE CHEAPEST AND WHERE CAN I SELL FOR THE BEST
           PRICE. AND OFTEN THAT MISMATCH MEANS YOU CAN PRODUCE MORE
           CHEAPLY IF YOU FIND A THIRD WORLD COUNTRY IN WHICH YOU CAN
           PRODUCE AND DUMP CHEMICALS INTO THE STREAMS AND POLLUTANTS INTO
           THE AIR AND PAY KIDS 14 CENTS AN HOUR AND YOU DON'T HAVE ALL OF

           THE ENCUMBRANCES YOU HAVE PRODUCING IN AN INDUSTRIALIZED
           COUNTRY. AND THEN YOU PRODUCE WHATEVER IT IS YOU'RE PRODUCING
           AND YOU SHIP IS TO CHICAGO OR PITTSBURGH OR FARGO. WELL, THE
           DILEMMA WITH ALL THAT IS THE BIFURCATION OF PRODUCTION AND THE
           MEANS TO PURCHASE PRODUCTION CREATES THIS TRADE DEFICIT AS
           BETWEEN OUR COUNTRIES. AND THE TRADE DEFICIT IS A VERY SERIOUS
           ECONOMIC PROBLEM. IT IS THE ONE BLEMISH THAT EXISTS ON THIS
           COMPLEXION OF GOOD ECONOMIC NEWS. AND WE MUST BEGIN TO ADDRESS

           IT. I KNOW THAT MOST PEOPLE WANT TO IGNORE IT. THEY DON'T WANT
           TO TALK ABOUT IT. INTERESTINGLY ENOUGH, SOME OF THE ECONOMISTS
           IN THIS TOWN WHO HAVE ALWAYS SAID THAT NAFTA WAS A GOOD THING
           AND FREE TRADE IS A GOOD THING AND W.T.O. AND GATT AND ALL OF
           THESE THINGS THEY WANTED DONE, THEY SAID, YOU KNOW, OUR TRADE
           DEFICIT, THAT'S JUST A FUNCTION OF THE FISCAL POLICY DEFICITS.
           YOU WON'T HAVE A TRADE DEFICIT IF YOU EVER GET THE BUDGET
           BALANCED. WELL, GUESS WHAT'S HAPPENED?
           IN FACT, WE SHOULD GET THEIR NAMES. I SHOULD GET THEIR QUOTES
           AND BRING THEM TO THE FLOOR, SOME OF THE BEST ECONOMISTS IN

           TIME WHO HAVE SAID THAT. I REALLY SHOULD DO THAT, I GUESS, AS A
           PUBLIC SERVICE TO SAY, WELL, WHAT ABOUT THIS NOW?
           WE HAVE ESSENTIALLY BALANCED THE FISCAL POLICY BUDGET AND THE
           TRADE DEFICITS ARE AT RECORD HIGHS. SO CAN YOU TELL ME WHAT
           SCHOOL YOU WENT TO AND WHERE YOU LEARNED THIS AND MAYBE WE
           COULD REWRITE THE TEXTBOOK?
           BECAUSE THE ANSWERS ARE APPARENTLY NOW WRONG. SO THOSE ARE THE
           THINGS HAT WE NEED TO HAVE A THOUGHTFUL DISCUSSION ABOUT. AND I
           APPRECIATE THE SENATOR FROM WEST VIRGINIA RAISING THE ISSUE. HE
           AND I COSPONSORS, COAUTHORED A PIECE OF LEGISLATION THAT IS NOW

           LAW THAT CREATES A TRADE DEFICIT REVIEW COMMISSION. THAT
           COMMISSION, I BELIEVE, HAS ITS MEMBERSHIP NOW APPOINTED JUST IN
           THE LAST WEEK OR TWO. AND THAT COMMISSION WILL BEGIN MEETING
           AND BEGIN SIFTING THROUGH ALL OF THESE POLICY AREAS AND
           HOPEFULLY WILL MAKE RECOMMENDATIONS TO CONGRESS IN AN
           EXPEDITIOUS WAY THAT WILL ALLOW US TO GET SOME NEW IDEAS AND
           SOME NEW NFRPBLG AND NEW PERSPECTIVES ON THIS -- ENERGY AND NEW
           PERSPECTIVES ON THIS VERY CRITICAL ISSUE. AND THE SENATOR FROM
           WEST VIRGINIA, SENATOR BYRD'S, MMITMENT TO PASSING THAT TRADE
           DEFICIT REVIEW COMMISSION LEGISLATION, WHICH IS, AS I SAID, NOW

           LAW AND HAS NOW CREATED THAT COMMISSION IS VERY IMPORTANT AND
           VERY HELPFUL TO THIS COUNTRY. MR. PRESIDENT, I YIELD THE FLO
           FLOOR. AND I MAKE A POINT OF ORDER THAT A QUORUM SUPPORT

           PRESENT. A SENATOR: MR. PRESIDENT?
           
           

           THE PRESIDING OFFICER: THE CLERK WILL CALL THE ROLL.
           
{END: 1999/02/22 TIME: 14-00 , Mon.  106TH SENATE, FIRST SESSION}