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|Working for a New Approach for Economic Recovery|
|News Releases - Business & Economy|
|Written by Sen Chuck Grassley|
|Monday, 17 October 2011 12:31|
Friday, October 14, 2011
During his weekly video address, Senator Chuck Grassley discusses taking a new approach to encourage economic recovery and job creation, given bipartisan opposition to the President’s proposal for a new $447 billion spending plan.
Click here for audio.
Here is the text of the address:
This week, there was a bipartisan opposition in the Senate to the President’s proposal for a new $447 billion spending plan. The President’s first big stimulus bill, enacted in 2009, didn’t keep the unemployment rate down, and it’s unclear how this second massive one would create and sustain jobs. It also would raise taxes, and whatever the details of the tax increase, there’s plenty of evidence that raising taxes in a struggling economy makes things worse. Plus, since World War II, every dollar in new taxes has resulted in $1.17 in government spending. That’s the opposite direction that we should be headed. The emphasis has got to be on reducing spending, not increasing taxes and a license for more spending. In fact, what the President wants to do is pay for temporary programs with permanent tax hikes, so it’s clear that this would lead to more government spending long past what he says would be an economic stimulus. People at the grass roots know that growing deficits and debt are getting in the way of America’s economic recovery. And pessimism about Washington’s ability to act in a fiscally responsible way by spending less is a damper on the economy.
So, instead of a proposal that emphasizes higher taxes and more government spending, it’s time for a new approach. Private-sector employers need certainty. They need to know higher taxes and more burdensome regulations aren’t just around the corner. They need an international trade agenda that opens new doors sell U.S. products and services. This week’s action on three trade agreements are a start, but these agreements have been delayed unnecessarily for years now, and the rest of the world is moving ahead without us. The administration needs to move forward on other trade initiatives without delay. Affordable energy is needed, too. It’s time to ramp up production of traditional energy sources here at home and to expand alternative and renewable energy sources
Washington needs to give employers confidence and encourage the entrepreneurial spirit of big and small businesses nationwide.
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