Job Report Confirms Need for Stimulus to Have Immediate Impact on Economy
WASHINGTON, DC — Ways & Means Ranking Member Dave Camp (R-MI) stated today that the nation’s miserable job report should serve as an extreme warning to Members of Congress to get the stimulus package refocused on immediate job creation instead of spending billions on pet projects.
“The massive amounts of government and deficit spending in the stimulus package moving through Congress do not, will not and cannot impact our economy anytime soon,” said Camp. “As the non-partisan Congressional Budget Office noted, half the money will not be spent for at least another two years. We need to stimulate the economy now. Families need jobs today, not in two or three years.”
Camp went on to say that, “The President was absolutely correct when he called for a stimulus bill that relied substantially on tax cuts. Tax cuts are the fastest way to inject needed resources into the economy and put more money back in the hands of working Americans. The Speaker and Democrat leaders in the House, however, failed to listen to the President and produced a bill that was nearly 80 percent spending and debt.
“As the American people know, Congress is heading in the wrong direction with this stimulus package. I urge the Senate to reverse course and refocus the bill on measures that will immediately impact our economy without adding unnecessary levels of debt to be paid for by our children.”
Last week, the non-partisan Congressional Budget Office issued an analysis of the House stimulus package. In the report, CBO confirmed tax cuts make their way into the economy faster than government spending. Specifically, CBO stated:
“Reductions in federal taxes [would] have most of their effects…in 2009 and 2010.”
“Purchases of goods and services, either directly or in the form of grants to states and local government …would take several years to complete.”
“[M]any of the larger projects initiated…would take up to 5-7 years to complete.”
In stark contrast to the spending bill the Speaker produced, Republicans offered a substitute focused solely on tax cuts. According to the peer-reviewed research of Dr. Christina Romer, the President’s pick to head the Council on Economic Advisors, the GOP plan would create 6.2 million jobs over the next two years.
“Our tax cuts create twice the jobs at half the cost,” said Camp. “Conversely, what Democrat leaders of Congress are proposing is twice the spending and half the jobs. It makes no sense and the American people should demand better.”