Madam Speaker, thank you. I will obey that edict and stick to my speech.
I was speaking about the common-sense idea of a dollar-for-dollar law. I would love to be the originator of the law, but it came into place during the Clinton era in the United States of America. Members will recall that during that time, the American government had racked up massive debts, so Congress passed a law called the PAYGO law requiring the U.S. administration to find a dollar of savings for every new dollar of spending.
What happened? The American government balanced its budget for the first time in half a century. It paid off $400 billion of debt. We are always being told that when we balance budgets and pay off debt, as the Liberals say, it will just shrink the economy. Actually, the economy underwent one of the most spectacular expansions in American history, with unemployment dropping to its lowest level in the postwar period. Inflation stayed low, and the American government was able to restore its solvency and its financial foundation.
The bad news is that when the law lapsed, the U.S. government went right back into deficit and has not emerged ever since. Why is that? It is proof that politicians need legal limits on their spending; otherwise, they will find it impossible to control themselves. They will want to spend more and more of other people's money to aggrandize themselves and buy votes. We need to impose legal limits on government spending, the same limits that every other Canadian imposes on themselves.
That is one common-sense idea that would cap the cost of government while the economy and the taxpayer catch up. The solution is not only to control spending, but to ensure that the size of government grows more slowly than the size of the private economy. We know that all prosperity flows from the production of goods and the free exchange of product for payment, investment for interest and work for wages. That is the miracle of the free market economy.
Let me talk a little about this incredible miracle. I was in a coffee shop the other day. I walked up, bought a cup of coffee, paid for it and said thanks. Do members know what the lady said back to me? Does anyone want to guess?