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Rep. Lois Capps: We’re Putting Our Nation’s Economy Back to Work
America is facing the most serious economic crisis since the Great Depression. We’ve lost 3.6 million jobs since the recession began in December 2007, including 600,000 in the last month alone. The situation is particularly severe in California, with an unemployment rate that has nearly doubled in the last year, soaring to 9.3 percent. California leads the nation in foreclosures and our state budget, always a problem, is even worse off as revenues have plummeted. As the economy has slowed, more families are turning to state and local government for assistance.
Clearly, this recession is bad and getting worse. Economists across the spectrum agree that fast action by the federal government is critical for putting people back to work and getting our economy moving again. That’s exactly what the newly passed economic recovery legislation, the American Recovery and Reinvestment Act (HR 1), is intended to do.
Working closely with President Obama, Congress developed legislation that is a carefully calibrated mix of targeted tax cuts and investments in infrastructure, education, energy and health care that will put money in people’s pockets right away and create jobs fast. The intent is not only to restore the strength of our economy in the short-term but to lay the foundation for long-term economic growth.
Here are a few of the most important features of the bill:
» $500-$1,000 tax cuts for 95 percent of American workers. These targeted tax breaks will help middle-class families struggling in these challenging economic times.
» More than $100 billion in transportation infrastructure investments, so we can finally rebuild some of our worst roads and most dangerous bridges. We will also invest significantly in public transportation and alternative transportation, like bike paths, light rail, and clean-energy buses that run on natural gas or electricity.
» Nearly $8 billion in aid to the state of California to help it address its huge budget deficits. This economic crisis is devastating for states and local communities — particularly California — facing deep cuts to education, law enforcement, health care and other critical services.
» Programs to weatherize more than 75 percent of federal buildings and improve the energy efficiency of 2 million homes, saving consumers and taxpayers billions on our energy bills. Our proposal also doubles America’s renewable energy-generating capacity over three years.
» The package also contains a series of provisions to help families and communities that have been hurt by this economic downturn, including training workers and helping them find jobs. It also extends unemployment benefits for more than 500,000 Californians, and increases food-stamp benefits for 2.4 million Californians. Not only will these steps provide relief to American families, they will help jumpstart our economy: these funds will be spent quickly, creating jobs and spurring economic growth.
There are a few points to note about this economic recovery proposal. First, the tax cuts are temporary and targeted to encourage consumer spending and to ensure that these dollars are put back in the economy right away. And they aren’t going to the wealthiest among us, like so many of the tax cuts did in the last eight years. Second, about 75 percent of the spending will take place within the next 18 months to ensure we start putting people back to work right away. And third, many of these investments are intended not only to save or create 3 million to 4 million jobs, but also to help us meet some long-term challenges facing our country.
The energy initiatives are a perfect example of this forward-thinking approach. The bill funds jobs in weatherization programs to make our houses and schools more energy-efficient. It also creates jobs with a plan to upgrade our electricity grid so it can carry energy more efficiently and from different sources, like wind farms. And it gives support to alternative-energy companies that will hire workers to expand the use of wind, solar and other forms of clean, renewable energy. The end result will be some 500,000 jobs created, reducing energy bills for millions of Americans, and increasing the production of clean energy created here in America. In addition, the use of fewer fossil fuels from foreign sources will increase our national security and protect our environment. This is all pretty common-sense stuff and we should have been doing it years ago.
Some of my Republican colleagues have attacked the cost of our economic recovery plan and offered up their own ideas. I guess it’s good that they have rediscovered fiscal responsibility after having blindly supported President George W. Bush’s reckless economic policies, which doubled the national debt in the last eight years. But more important is what the plan’s opponents are offering as an alternative — basically, more tax cuts. Essentially, more of the same snake-oil economics that put us in this mess in the first place.
My Republican colleagues have to recognize that we are in a recession — a huge recession. We are losing tens of thousands of jobs every week. Virtually every economist, even Mark Zandi, a former economic adviser for Sen. John McCain’s presidential campaign, has said immediate and bold action, including large spending by the federal government, is required to stop the slide.
We need to work together to meet this crisis, Republicans and Democrats and Independents. As we craft policies, however, to bring our economy back to life, it’s important to remember that this recession didn’t “just happen.” It is the result of economic policies willfully pursued for some time — and with special vigor over the last eight years — that wishfully proclaimed tax cuts mostly benefiting the wealthy and relentless deregulation were the solution to every economic problem. We are now paying the price for that failed strategy with a doubling of the national debt since 2000, increased income disparity, a crashing housing market, decimated retirement savings, millions of jobs lost, and small businesses hard pressed to get loans to expand or even survive.
It’s important that we not repeat the same mistakes that got us in this mess in the first place, and that we start moving this country in a new direction. The American Recovery and Reinvestment Act will help us take those critical steps.
Rep Lois Capps, D-Santa Barbara, represents Santa Barbara County’s South Coast in the 23rd Congressional District.
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» on 02.12.09 @ 02:21 AM
You’re such a dear sweet woman that the Democrat pit bull schtick you try to pull just isn’t convincing.
But you know darned well that this spending orgy is a laundry list of Democrat porkulus and not legitimate stimulus. Blame W all you want but the fact of the matter is that, as The One reminds us all the time, “I won.” And you Democrats have convincing majorities and need no Republicans to pass anything. But by going that route, the biggest spending increase in U.S. history is now 100%, completely, without a doubt owned by you.
But at least you’re going to cut taxes for 95 percent of all Americans. I can hardly wait. Can you give me the date?
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» on 02.12.09 @ 05:06 AM
Since the days of FDR (and before) politicians have feathered their nests by spending the people’s money while making them believe they were giving away a gift.
The problems we are facing today are a direct result of policies encouraging the lending of money to people who could not afford it based on the presumptive notion that everybody deserves to own their own home regardless of their ability to pay. Doubtless, you supported these policies.
I am appalled at the blatant way in which you try to take credit while at the same time you use the opportunity to bash your competition. All this is tied up within a totally self serving press piece.
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» on 02.12.09 @ 05:42 AM
Ditto to Lois, Lois, Lois.
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» on 02.12.09 @ 06:03 AM
Mark Zandi, a former economic adviser for Sen. John McCain’s presidential campaign is quoted in today’s Wall St. Journal:
Printed in The Wall Street Journal, page A1
By GREG HITT and JONATHAN WEISMAN
The package dwarfs the military budget and exceeds the cost of the entire Iraq war since the invasion of 2003.
“It’s a good plan, but I don’t think it’s good enough,” said Mark Zandi, chief economist at Moody’s Economy.com, who crafted the economic models used by the White House and congressional Democrats to project the economic boost of the plan. “Three million additional jobs are doable and likely; four million I think will be a stretch.”
The compromise preserved $1.1 billion for a national “comparative effectiveness” study of health-care practices to try to determine the best treatments, devices and procedures for almost any ailment or disease. That information would then be disseminated to physicians nationally, perhaps on new medical computer systems also being funded.
Advocates of the study, including the president, say it will improve health care in all corners of the country and bring more uniformity to treatments. But opponents have warned it’s the first step toward a government prescription to doctors of what they can and can’t do for patients.
By the way, Lois, earlier this month did you attend taxpayer supported Democratic retreat at the Kingsmill Resort and Spa in historic Williamsburg, Va.?
Source: http://thehill.com/leading-the-news/500k-spent-on-dem-caucus-retreats-2009-02-03.html
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» on 02.12.09 @ 06:18 AM
Thank you so much for this outline of solutions not only to our nation’s woes, but those right here in California. That our Board of Supervisors had the foresight to recently approve a wind farm in Lompoc says we are not just bringing “water to the thirsty,” but teaching us all to “dig our own wells.”
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» on 02.12.09 @ 06:42 AM
This foolish women was a huge welfare package for the liberal tax and spend machine..Capps has No business experience-
She is a nurse????????????????
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» on 02.12.09 @ 06:54 AM
Get rid of the pork and the enlargement of the government from this bill. We have enough financial problems. Adding pork to this spending bill for things that should go through normal “appropriations” processes only makes things worse. Adding how many goovernment jobs will just permanantly increase our national budget/debt.
If a company ran itself like the government, it would end up like… the auto industry or Wall Street.
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» on 02.12.09 @ 07:06 AM
Perfect…socialism is taking root via the libs never-waning quest to give everything to everyone.
“The problem with socialism is that you eventually run out of other peoples money.” Margaret Thatcher.
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» on 02.12.09 @ 07:34 AM
Congratulations to Rep. Capps for summarizing the benefits of the stimulus bill. A package that will furnish a vast panoply of financial aid for citizens and businesses alike. A cure all? No. A necessary step - absolutely, given the financial crisis our country faces.
Let’s focus on solutions, not stereotypes or kneejerk reactions. Santa Barbara County and the 23rd Congressional District have important renewable energy resources - wind, solar, and wave power. Let’s garner some of the stimulus money for our local communities for projects that create jobs and promote an energy independent environment. Time for action not rhetoric.
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» on 02.12.09 @ 08:11 AM
Don’t try to B.S us Capps. Why is this different than the fear mongering that led us into Iraq? Why are the lies of Obama (there are no earmarks in this bill) any different than the Bush administration lies? What is the big hurry? Are you hoping we won’t notice all of the pork and earmarks if you scream crisis like chicken little to try to ram this behemoth through?
The first chunk of money did nothing, yet the markets seem to be holding and even improving, that is until the government starts meddling at which point they plunge. Leave it alone ! You’ve done enough damage. If you’re going to do something, how about paying everyone’s mortgage with huge chunk of money? Now that would be stimulus!
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» on 02.12.09 @ 08:31 AM
The economy is so bad and yet you have been there the whole time doing nothing to fix the problem. Sitting back collecting tax payer money and jerymandering your district so you can get reelected. How can you sit on your high horse and blame others when you are at the top? Your are the definition of government waste.
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» on 02.12.09 @ 09:57 AM
Ms. Capps makes so many mistakes in this Democratic Party press release that it’s hard to know where to start. Let me start with her statement that economists across the spectrum agree that we need to spend a trillion dollars to get the economy going again. Nothing could be more wrong. All Keynesian economists believe this. The problem is they cannot produce evidence that fiscal stimulus through deficit spending has ever worked. In fact it hasn’t ever worked. Now, tax cuts? Those have worked.
Ms. Capps, you can’t create jobs by giving some people other people’s money. Even if the government borrows the money and spends it, once the money runs out, there will be no lasting jobs. And, since government workers are supported by taxes (transfer payments) those aren’t “jobs” in the economic sense. Real jobs create the wealth to pay taxes to support government.
I do agree with you that the Bush years were a disaster. But then, his snake oil was the same used by Democrats for many, many years. So, what is the snake oil that caused this mess? Thanks to the Fed for creating the bubble, thanks to Barney Frank who supported Federal guarantees of risky subprime loans, and thanks to you for not doing anything about it.
Let’s make a bet. I’ll bet the stimulus makes things worse. I’ll bet we end up with stagnation like the Japanese who had the same problem in the ‘90s. They treated it with massive government spending and their economy went nowhere for almost 15 years. Another fine mess you have got us in.
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» on 02.12.09 @ 10:00 AM
Capps is a fool..
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» on 02.12.09 @ 10:03 AM
Funny how certain people forget the Carter years! Remember the Carter unemployement - appears Rep Lois Capps does not.
This is a real Christmas tree for the Democrats.
I hope our grandchildren can work long enough to pay the tax bill.
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» on 02.12.09 @ 11:22 AM
The democrats waste your money like drunk sailors, and try to put fear in the average folish tax-payer..the Libs really believe we are DUMB…The spin is in..Scare the public..
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» on 02.12.09 @ 01:23 PM
Unbelievable, they still can’t stop blaming Bush. Well I agree, the Bush tax cuts were a failure for the same reason the democrat stimulus debacle will fail. None of these idiotic attempts by government to “intervene” in the economy are designed to create wealth, only to increase shopping sprees. Wealth creation happens when value is added, not when value is exchanged. Most value added to an economy is done when things are built. Consumer spending for things built elsewhere actually drains wealth and we’ve been doing that for a long time now and borrowing to make up the difference. Much of that borrowing has been hidden by population growth. The credit meltdown killed borrowing, the population increase (aka illegal immigration) is reversing and now the true value of our economy is being realized. We are now realizing that a “service” economy is at best “maintenance” and at worst retracting. If the government wanted to fuel wealth creation it would do whatever it takes to get manufacturing back on American soil by American companies and that includes energy production (oil, coal, nuclear). They chose not to do that but to continue the same stupid over regulatory method of job killing it has practiced for four decades (yes, both parties are at fault), believing we can spend our way to wealth by buying foreign products and energy. The result will be devastating inflation and a prolonged depression into the next decade. However, I would be remiss if I left the Wall Street crooks out of the equation. Spineless acquiescence to the legalism of the last four decades and using the cover of free trade to stay in business has allowed the greatest manufacturing economy in the world to dwindle to number four. Who has benefitted from this? Follow the money. Lawyers, politicians and corporate CEOs have bloated their wealth while robbing an apathetic and economically ignorant middle class. I guess it all boils down to this, Lois can blame Bush and we can blame Lois but we are the culprit. In a free society practicing a free market economy the individual has the responsibility to make good choices and hold others accountable for theirs. It also means taking your lumps when you make bad choices and not running to “nanny” to lessen the pain, whether you are a home owner or a corporate CEO. The current debacle only highlights our desire to bury our heads in the sand and allow the government to kick our bear naked ass.
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» on 02.12.09 @ 02:06 PM
Where were all you anti-Lois folks at the last election? Remember, Lois is in a gerrymandered district that has a HUGE public payroll (fed, state, county, education, etc. etc. etc.) and historically those on the public payroll tend to vote for more government spending (duh). It’s gonna take a lot to dislodge her.
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» on 02.12.09 @ 07:43 PM
Lois,
While we all may disagree on how we got into this economic mess, Ed Mazria and his 2030 Stimulus Plan is a great way to help get us out. Instead of throwing trillions at the economy, Ed’s plan incentivizes individuals (through government underwritten low interest mortgage rates) to invest in clean solar energy technology and energy efficiency improvements that reduce the energy usage of operating homes and businesses (buildings and servicing them consumes almost 50% of our nations energy).
The plan to get $25K to $50K into the hands of homeowners and businesses is to offer them a lower interest government backed mortgage if they lower their energy demands by purchasing new energy saving and generating technology. All of this happens at the individual and local level. Think about it, if one could get a lower interest mortgage (say 3.5% instead of the normal 4.5%) but only if I borrow to invest in $50K worth PV solar upgrades and reducing the energy use of my home, I beleive thousands of people would take advantage of that opportunity. Do something for yourself, improve your home or business and reduce our nations burgeoning energy demand. So in two months one’s mortgage rate is about the same as before, however their energy bill is a fraction of what it was previously and they have cut the energy demand of their home or business by 30% to possibly 80% for probably the next 20 to 30 years. This appears to be a WIN-WIN scenario and employs thousands of architects, engineers, contractors, solar energy companies and general construction laborers all over the country.
Lois if you have not yet seen this 2030 Stimulus plan, you should take the time to check it out ONLINE. Ed spoke at UCSB a few weeks ago about it, an article was written about the lecture and plan in the Noozhawk last week, and Ed has been in Washington lobbying officials recently to help them see the light.
TAX CUTS
Also for those of you who do not understand the idea of a dynamic economy, its involves the concept of lowering taxes to increase revenue. On the surface this may sound counter-intuitive however it has been proven that when taxes are lowered all people are motivated to do more business than usual. The slight reduction in individual tax rates are more than offset by the extraordinary amount of business that is done and more taxes are generated overall for the government….that is why tax cuts work. It’s all about a dynamic model not a static one.
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» on 02.13.09 @ 05:38 AM
Unlike most of the comments, Lois I think you are doing a great job. I would also like to challenge the others to point out the so-called pork or earmarks in this package. You can go to Obama’s website and actually read all of the details behind the spending and tax cuts. This is far better than the previous stimulus package. It makes up for the past years of focusing too little resources on education, our infrastructure, alternative energy, affordable healthcare and the environment. If anything most economists believe it is too small. In addition, the tax cuts to the middle class are the right focus. The trickle-down tax cuts for the rich that Bush utilized did not work. For the past eight years we have watched 95% of population experience a decrease in their standard of living and net worth at the expense of the rich. This economy will only improve when the majority of Americans participate in the recovery. This stimulus package is a good start. Thank You.
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» on 02.13.09 @ 07:58 AM
Hey, Good Job, the Prophet Obama is even better than I thought if he’s got the complete porkulus bill already posted on his Web site. I’m impressed. Because Congress is voting on it today and it’s not even available for them to read yet.
Guess I shouldn’t be surprised B.O. is just another corrupt Chicago politician and the vote is usually known ahead of time.
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» on 02.13.09 @ 11:09 AM
Hey Hank! The stimulus bill has been posted for weeks. Be sure you do your research. The changes have been posted as they occur. I wish that you and others would not come off so sour about the election. You lost. Now it is time to try and work together. The name calling is not constructive because America is a lot of trouble thanks to the policies of your guy for the past 8 years. Why not step back for a period of time, admit you were wrong and let us try something else? You might be surprized to find it actually worked.
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» on 02.13.09 @ 11:11 AM
Lois is honest, caring, easy to talk to, involved in constituent, district and national affairs.
How does that compare with Tom De Lay, Duke Cunningham, Elton Gallegley (who wanted to retire, but was “arm-twisted” into running again to keep his seat “Republican”), or Jerry Lewis?
Reality check time for Lois-haters. Republicans were in control of Congress for twelve of the last fourteen years, and the White House for the last eight.
ALL the unbalanced, deficit and pork-ridden, earmark-larded budgets which went through without a single Bush veto his first seven years were 100% “Republican” deficit budgets. Lois Capps, in the minority party, had little to do with them.
During that time, the Cheney faction convinced GW to anesthesize ALL regulatory/enforcement arms of the federal government as “anti-free market”. Okay.
But that also meant that after Katrina, FEMA was not ready. When bank, auto,
insurance, finance, home-lending executives, drove their companies, and the national economy, off a cliff, from uncontrolled avarice and fraud, the SEC and FTC were not there. When the Chinese shipped tainted pet food and children’s toys to us (and milk to their own people), Customs was not there. When companies shipped germ-laden spinach, salsa, peanut butter, to Americans, the FDA was not there. When the wars in Iraq and Afghanistan went 500% OVER budget estimates Rumsfeld gave GW and Congress, due to fraud-riddled contracts, the GAO was not there.
It wasn’t Lois Capps or Barrack Obama who drove our domestic economy and our
international reputation over the cliff. It was 12 years of profligate spending by
the Gingrich-Hastert-Frist-Cheney-Rove-Bush contingent who all called themselves
“Republicans”.
Now Lois and Obama are stuck trying to clean up the mess following incontinent/incompetent political mis-rule the American People just voted OUT of office for years of failure and corruption.
Let’s at least give Lois and the president a chance to show whether their Economic Stimulus Plan and TARP-2 can actually deliver. That much, they deserve.
If not, then in two years, Lois and Obama will take responsibility for their failures.
But until then, we’re all still in Rove-Cheney-Bush national clean-up mode. So back
off, huh?
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» on 02.13.09 @ 11:46 AM
I’d like to mimic the comments of “Good Job” ... I don’t know if Nookhawk readers generally lean conservative or if there’s just a small vocal group of you, but comments like “Capps is a fool” and “Obama is an idiot” (from a previous column) seem to be the norm here.
Let’s get real, folks ... For most of the last eight years, the Republicans have been in charge of all branches of government (including the Supreme Court), and look where we are at right now. Obama was handed this nightmare, and he just trying to do what he can to get us out of it. I mean, where was all your rage when Bush added more to the national debt than ALL PRESIDENTS IN HISTORY COMBINED, huh? Yet, you have the audacity to say that the “democrats waste your money like drunk sailors?” And to AN50, who writes “Unbelievable, they still can’t stop blaming Bush.” ... yeah, I mean, Obama has been in office for two entire weeks, and we are still blaming Bush? How dare we. No, what’s unbelievable is that you guys are NOT still blaming Bush.
Regarding the stimulus in general, I don’t have all the answers. And quite frankly, it seems that no one does. However, I can tell you that conservative philosophies of tax cuts for the wealthy and deregulating everything certainly aren’t the answer. Most economists (including Nobel Prize winning ones) say that the stimulus is too small. And the general consensus is that tax cuts are the worst thing to do right now, because people will either save them or use them to pay down debt.
If you’re looking for idiots and fools, I can give you a big list ... and the liberals aren’t on it.
[Editor’s note: Actually, Noozhawk readers run the gamut from conservative to liberal and everything imaginable in between, including some odd combinations that seem contradictory to me. But I want to emphasize that Noozhawk truly welcomes all points of view. Partisanship doesn’t offend us, but please be respectful. Thanks.]
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» on 02.13.09 @ 01:29 PM
... must be a Republican mouthpiece: According to U.S. News & World Report’s Paul Bedard, hardly anyone knows what’s in the bill the House passed earlier today. “We’re receiving E-mails from Capitol Hill staffers expressing frustration that they can’t get a copy of the stimulus bill agreed to last night at a price of $789 billion.”
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» on 02.14.09 @ 10:45 AM
This will bankrupt our country, and the welfare program will be passed on to out grandchildren—Remember government does nothing well..
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» on 02.14.09 @ 04:13 PM
I don’t like passing on debt to the next generation, but at this point we have to do what it takes to get the economy going again. Bush was a disaster and it will take awhile to dig out from this mess. Thanks for your work Lois.
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» on 02.16.09 @ 09:21 AM
For those of you lefties who really do believe the “O” is the savior, 12 years of Republican rule and 8 years of a Republican White House brought us nothing but Democrat style spending, un-targeted tax cuts and a return of the GOP to the country club oligarchs. So why in the hell are you Lois supporters, who cannot get over blaming the other side for the mess we’re in so enthralled with a more-of-the-same plan put forth by Obama? If you can clearly point out the failure of the GOP’s economic policies, then why do it again? Do you honestly believe that just because Democrats are spending like drunken sailors and handing out un-targeted tax cuts that it is miraculously going to work now? The GOP had the ball and dropped it on their big toe, which is why they lost in 2006. So now the Dems pick up the ball and the first thing they do is copy the GOP and drop it on their own big toe and expect a different outcome. I guess we can only blame the morons running government so much, after all we elected these idiots so we get what we pay for.
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