Nearly two-thirds of Americans say that job creation should be Washington’s top priority. Yet the new majority in the House has spent months on phony debates that are more about gaining political advantage than about helping our economy.
The good news is that, even as Washington has taken its eye off the ball, manufacturers have shown a path toward an economic renewal. Although U.S. manufacturing was in decline during the run-up to the Great Recession, it has bounced back noticeably. Last year alone, manufacturers added 152,000 new jobs, and the sector has now seen 21 straight months of growth. Let’s not write any obituaries for manufacturing in our country or our state.
On Tuesday, I toured MICRO Stamping Corporation in Somerset, which employs about 250 New Jerseyans.
This month, I am visiting manufacturers across central New Jersey. These companies employ our neighbors in the manufacture of a wide range of products: everything from medical devices to specialty inks.
My hope is to hear ideas for concrete, actionable steps that Congress can take to build upon the recent resurgence in manufacturing and put more Americans back to work: things like supporting new infrastructure investment, closing tax loopholes for outsourcers, expanding science education, and providing businesses with incentives for new hiring. I hope you’ll share your ideas, too, either by sending an e-mail at holt.house.gov or calling me at 1-87-RUSH-HOLT.
America’s middle class was founded on the strength of our manufacturers. It’s time to rebuild that foundation and renew our manufacturing sector.Sincerely,
Member of Congress
Category Archives: great recession
By Star-Ledger Editorial Board
Sunday, July 17, 2011
We’re used to politicians stretching the truth, but this is getting ridiculous. For months now, congressional Republicans have refused to support any debt ceiling and budget deal that would raise taxes on the wealthy because, these economic wizards tell us, the rich are “job creators.”
Tax increases would discourage these job genies from expanding their businesses. Unemployment, already at 9.2 percent (which says something about the job-creation myth, doesn’t it?), would get even worse, they insist. The problem with this economic philosophy? It’s garbage.
Even Warren Buffett, one of the richest men in the world, knows that: “The rich are always going to say, ‘Just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you.’ But that has not worked the last 10 years, and I hope the American public is catching on.”
The American public, it seems, is catching on, even if Republicans want to twist the truth about that, too. Speaker of the House John Boehner keeps insisting, “The American people don’t want us to raise taxes.” House Majority Leader Eric Cantor says, “This economy is ailing and we don’t believe, nor do the American people believe, raising taxes is the answer.”
Think again. Americans believe Congress should raise taxes on the wealthy.
A new Quinnipiac survey asked voters if they support a budget deal with only budget cuts or a blend of cuts and taxes on corporations and the rich. Only 25 percent said cuts only. Sixty-seven percent want cuts and a tax increase on the wealthy.
Republican leaders are not only misrepresenting what the American people want, they’re covering up Republican numbers, too. In a recent Gallup poll, only 26 percent of Republicans favored lowering the debt with cuts alone. In just about every poll — ABC News, Washington Post, Bloomberg, Reuters — Americans want spending cuts and they want the wealthy to pay a larger share.
But maybe the American people are wrong. Let’s check the history. Did giving the wealthy a break with the Bush tax cuts of 2001 and 2003 help create jobs? Uh, no. From the end of the 2000-01 recession, just when the first Bush tax cuts took effect, until the beginning of the Great Recession, the economy grew at a slower pace than in any postrecession recovery period since World War II. Pay, adjusted for inflation, fell. And it took 39 months to get the number of jobs back to where it was before the 2000-01 recession.
Despite the same promises of jobs, the economy limped along. And the additional tax cut in 2003 didn’t rev it up, either.
President Bill Clinton faced vociferous opposition to his 1993 budget plan, which raised the top tax rates from 31 percent to 39.6 percent. Republicans called it the “Kevorkian Plan.”
So, what happened? Unparalleled economic growth. The nation’s unemployment dropped from 6.9 percent to 4 percent. The deficit shrank, and in 1998, the federal government boasted a surplus for the first time since 1969.
It seems the economy can survive a tax hike on the wealthy after all. And the tax hike did wonders to reduce the deficit as well, as designed.
More evidence: During the 1950s and early 1960s, when America experienced sustained growth, marginal tax rates on the rich were the highest they’ve ever been — 91 percent for the top bracket. (Even President Ronald Reagan, the Republican economic poster boy, raised taxes after he cut them.)
But Republicans keep chanting the same nonsense — without offering historical evidence to back it up. Instead, they want to bring the nation to the brink of default while protecting corporations (who are sitting on billions in profits) and fat cats — while everyday Americans are squeezed by high gas and food prices, plunging home prices and lower wages.
Let’s call the job-creator stuff what it is: a myth.
>Hat Tip to Facebook friend Rocca Mazza for pointing out this article from the Financial Times “The crisis of middle-class America”.
“Outstanding reporting published in the Financial Times on the crisis of middle class America. This is real, a must-read story. The story looks deeply into a few typical middle class families being financially suffocated by the economy with stagnated wages and increasing bills to pay. At some point, somethings got to give.
One family has an autistic son whose future they fear in such an uncertain landscape.
“….in the past few years the Freemans have been running low on optimism. ‘I guess the penny dropped in the last 18 months when we finally realised that it’s always going to be like this – we are never going to be able to retire on our savings,’ says Connie. ‘As for Andy,’ she says, referring to her painfully shy but acutely observant son, ‘the future really frightens me. If you’re young, it’s bad enough nowadays. But for a kid with autism?'”
This story also illustrates that while the wealthy become wealthier the poor are becoming poorer: “…..the annual incomes of the bottom 90…”
Here is a video link that accompanied the article, it is well worth the watch.