Jobs & the Economy

The number one priority for Congress should be to create jobs and improve economic growth. Small business creates 70% of all new jobs, yet they are not hiring now because of the uncertainty coming out of Washington and a shortage of available capital.

Uncertainty:

Congress has proposals to increase the cost of energy and health care for small businesses-  both are large expenses that could wind up closing businesses that are barely staying alive during this economic crisis. They are also discussing increasing income tax rates, this in addition to the recent increase in the minimum wage. Employers are worrying about how they will meet these expenses and are therefore reluctant to add new employees. I oppose the proposed health care reform, the Cap and Trade Bill, and the tax increases because I believe they will hurt businesses and stifle growth.

Shortage of Capital:

Congress has negatively affected access to capital by increasing the deficit to an unprecedented $1.7 trillion this year. Instead of stimulating the economy, the Federal Government is borrowing every available dollar, leaving less for the private sector. Even businesses with stellar credit and a good track record are having trouble raising funds to grow their companies. Japan tried this same sort of “stimulus” in the 1990’s and kept their country in a prolonged recession for twenty years. We need to focus on creating jobs and lowering taxes in order to ensure a sustainable economic recovery. History has shown us that no country has ever spent their way out of a recession.

TARP, Stimulus Package and the Budget:

I would not have voted for the current stimulus package, TARP, or the current budget. These bills will result in an unprecedented $1.7 trillion deficit this year alone or 13% of GDP. The last time the United States incurred this much debt in one year was during World War II. Much of the stimulus package was wasted on pork projects that will not put people back to work or benefit economic recovery. For example, the money set aside for public works programs and “shovel ready” infrastructure projects only accounts for 7% of the entire stimulus package. This spending will inevitably lead to higher taxes or lower economic growth – not recovery.