Doyle votes for economic recovery plan

On Wednesday, the House of Representatives will debate the American Recovery and Reinvestment Act, legislation designed to rebuild our economy and put Americans back to work. As we all know, President Obama and the new Congress took their oaths of office in one of the bleakest economic climates in recent memory. In the last year alone, the United States shed 2.6 million jobs—the worst year since 1945. We are in the midst of the worst housing market since the Great Depression, and turmoil in the financial markets has threatened the savings and retirements of millions of Americans.

All of those facts speak to the urgency of this recovery plan. Without it, economists expect more Americans to lose their jobs, more small businesses to shut their doors, more homeowners to face foreclosure, and the recession to be much longer and deeper, and the impact on the budget deficit more severe. That is why passing the American Recovery and Reinvestment Act is the top priority of the Obama Administration and the 111th Congress.

Immediate Boost, Long-term Growth
The $825 billion recovery package of tax cuts and investments will create 3 to 4 million jobs and combines the following elements:

• immediate and direct tax relief for 95% of working families, as well as for job-creating small businesses;
• job-creating projects to rebuild and modernize our roads, bridges, and schools;
• targeted investments in 21st-century energy, health, and information technologies to spur long-term economic growth and lower costs;
• aid to states to protect vital services, like healthcare, education, and local law enforcement; and
•  aid to boost economic activity most quickly and help those hardest hit in this recession, including extended unemployment insurance, increased food stamp programs, and an increased Supplemental Security Income benefit for low-income seniors and disabled individuals.

The spending authorized by the recovery package will take effect quickly; the Office of Management and Budget estimates that 75% of its funds will be spent within 18 months. Critical elements that will be spent in that time and thereby have the most stimulative effect on the economy include the following:

• tax cuts for individuals and job-creating businesses, totaling $275 billion;
• extended unemployment benefits, temporarily increased food stamp benefits, and health insurance subsidies for workers who have lost their jobs, totaling more than $100 billion; and
• aid to states in danger of cutting vital services, totaling more than $160 billion.

Backed by Economists Across the Spectrum
That projection has been backed by a economists representing a broad, bipartisan consensus—most recently, by Mark Zandi, chief economist for Moody’s Economy.com and former advisor to Senator John McCain’s presidential campaign. Zandi’s analysis found that the recovery plan will meet its job-creation goal of 4 million jobs, leading to an unemployment rate 2.2% lower than if we did nothing. More than 90% of jobs created will be in the private sector.  Zandi also supports the composition of the package, saying that “the mix of tax cuts and spending increases in the stimulus package is designed to provide both quick relief and a substantial boost to the struggling economy.”  [Zandi Analysis, 1/21/09]

Building for the Future
But the recovery plan also invests for the long term, ensuring that America will come out of this recession with a more robust and globally competitive economy and a basis for sustainable growth. The plan includes a number of investments that will grow our economy and save money in the long term:

• an expansion of broadband Internet access to bring commerce opportunities to small businesses in every community in America, which has been shown to provide a ten-fold return for every dollar invested;
• a significant investment in science facilities, research, and instrumentation to develop energy technologies that will help end our foreign oil dependence and strengthen our export market;
• development of a smart grid to transmit American renewable energy;
• repairs to and modernization of our crumbling national infrastructure;
• expanded assistance for worker training and college education, including increased Pell Grants and tuition tax credits; and
• a computerized healthcare information system that will save money and lives.

Provisions like these mean that the American Recovery and Reinvestment Act is not just a response to an economic emergency—it’s a wise foundation for the future.

Unprecedented Accountability
The recovery plan will include several important layers of accountability. It will include no earmarks or pet projects. Investments funded, total costs, and program managers will all be posted publicly on a website created by President Obama. And the Government Accountability Office, Inspectors General, and a new Accountability and Transparency Board will review all funding decisions, striving to prevent waste and fraud. Taxpayers need to know that their money is being spent to get us out of this recession, not squandered or siphoned off. The recovery plan’s accountability provisions give them that assurance.