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Legislation News & Report (TM) TheWeekInCongress.com (TM) Editorial July 29, 2011 Edition Volume 8 Number 21
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TheWeekInCongress.com Editorial
What About Jobs?
Those paying attention to the current debt crisis and the four efforts to solve the problem seem to be focused solely on the warnings about the US credit rating if the nation defaults on it's debts next week .
It is a valid and scary possibility although it is not likely to happen. But the credit risk fear has drawn attention and due to it's unlikeliness the issue avails itself to those who would assert that the default would be insignificant. They can make their statements without any fear of being proven wrong.
It seems that the mania and politicizing over the huge public debt has overlooked a few things, though; particularly whether or not the economy will rebound as a result of the government spending less. If we take Speaker Boehner's plan considered today in the House we have an average amount of cuts presented to total about $3 billion over ten years. Other plans require more cuts.
Cutting the budget that much comes to reduced spending amounting to $300 billion per year over ten years. Not much when you consider that recent budgets range around $3 trillion per year. A drop in the bucket until you consider that the money is directly or indirectly attached to jobs and that presents either a contradiction or, perhaps, just how it goes on Capitol Hill when politics enter the arena.
We began the year with little more than complaints that the President has not provided jobs. While the President and the past three Congresses have done little else but try to increase employment, we now see that businesses, even those with fat pockets from downsizing are not hiring because Americans are not spending.
With the intensity that spending cutters have brought to the public eye, it seems that the original problem of joblessness has been cast aside. We have heard that the cuts will reduce taxes and therefore that money will remain with taxpayers and they will spend it more wisely than the government. Turns out they are more likely to save it.
So this whole process is risky not so much because if Congress doesn't succeed the country will suffer economically, but because if they do succeed at this complicated economic juncture, removing that much money from the economy means higher unemployment with the hopes that those who pay less or lower taxes to fuel a smaller government will spend it so others can earn it and pay taxes back to the Treasury.
It's not at all about the budget cutting proposals on the Hill. Republicans have placed the issue on the front burner and Americans have taken it up. The question remains if the government's traditional role of providing work, either in the bureaucracy or outside of it, is something to be tampered with at this time?
R. McElroy
All Rights Reserved. © 2011 TheWeekInCongress.com(TM) No reproduction, language translation or distribution of all website content without written permission from TheWeekInCongress.com.(TM)
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Let’s Help Lawmakers With Their Impossible Task By Lee H. Hamilton
"Lawmakers need to treat their constituents more like adults, not always agree to their requests. They need to explain the problem and its possible solutions, and then make a decision. "
Recently, the Pew Research Center released a poll
gauging public sentiment on the nation’s three big entitlement programs:
Social Security, Medicare, and Medicaid. Most Americans believe the
programs are in trouble and need to be completely rebuilt or changed
substantially. But an even stronger majority wants the programs’ benefits
to be left alone. |
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