The nation needs jobs, millions of them. Congress needs to
tackle this problem immediately. But instead of creating jobs, protecting
families and addressing the true causes of the deficit, some members of
Congress are making families pay for billions in tax giveaways for millionaires
and corporate special interests.
We need leaders to
work together to get our economy back on track and protect struggling families.
Proposed cuts to the Federal Budget would not only put holes
in safety net programs at a time when they have never been more necessary but would
also threaten our fragile economic recovery. Now is not the time to sacrifice jobs, schools hospitals and public safety.
Instead Congress must spend money to create jobs.
The Economic Downturn
The deficit has ballooned largely because of the economic
downturn. Tax revenues have shrunk because unemployed people who don’t have
income, don’t pay income taxes. Sales tax revenue has also fallen as consumers
have reduced their spending. But at the same time, government expenses have
risen as more people are forced to rely on safety net programs. The bailouts
and Stimulus Bill also boosted spending.
Shrinking the deficit through cuts in spending at a time
when the economy is still fragile just weakens the recovery. The result is
likely to be further reductions in revenue, increased safety net expenditures,
and potentially larger deficits. We are seeing this unfortunate scenario play
out in the U.K. and Germany,
two nations that were held up as paragons of virtuous deficit cutting just
months ago.
Luckily, the U.S.
did not make that mistake. The federal government has not yet made large cuts
in spending and our recovery, while tepid, continues even as it is challenged
by rising oil and food prices, the Japanese economic situation, the ongoing
crisis in the housing market, and other adverse factors. Strengthening the
economy and creating jobs is the nation’s top priority. Deficit reduction must wait until the economy
is back on a sound footing.
Job Creation
What the nation needs most are jobs, over 11 million of
them, just to get the unemployment rate down to the pre-recession level. But even if jobs continue to grow at
February’s pace (the fastest growth in eight months), it would take over 10
years to reach that point. Unemployed workers cannot wait 10 years. The nation
cannot continue to rely on “the market” and corporate decision-makers.
Congress
must enact a program of job creation that could include projects like these.
- Public investments in
infrastructure such as roads, railroads, bridges, and schools, and in green
jobs like weatherization of residences.
- A public jobs program
to hire people directly.
- Additional money for
state and local governments to preserve jobs and fund social programs.
- A tax credit for
private businesses to encourage and reward hiring.
We need leaders with the moral courage to protect families,
stand up to reckless politicians’ irresponsible cuts, and defend the American
dream.
For more on the impact of deficit cutting in Germany
and the U.K.,
see David Leonhardt “Why
Cuts Don’t Bring Prosperity,” New
York Times February 23, 2011
