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House Passes Economic Recovery Bill |
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Hoping to put the brakes on an economy spiraling downhill and out of control, the House today passed (244-188) an $825 billion economic recovery package that could create or save as many as 4 million jobs. Said President Barack Obama, shortly before the vote:
When we it comes to rebuilding our economy, we don’t have a moment to spare.
With the jobless rate at 7.2 percent and expected to worsen for much of the year, and the loss of 2.6 million jobs last year—the biggest one-year job loss since 1945—AFL-CIO President John Sweeney says:
It would be impossible to overstate the trouble our economy is in. The American Recovery and Reinvestment Act is absolutely essential to turning around this downward economic spiral. This is no time for weak excuses—Congress must act decisively to create jobs and rescue the economy.
The bill includes $550 billion for investments such as ready-to-go infrastructure projects, help for states that are facing record budget shortfalls that threaten vital services such as education and health, and assistance for the nation’s tens of millions of unemployed workers. It also provides $275 billion in targeted tax relief for families and businesses.
The Senate is expected to vote on its version of the recovery package next week. But the Senate bill is more heavily weighted toward tax cuts rather than job-creating investments. As reported by the Senate Finance and Appropriations committees, it contains $365 billion in targeted investments and some $500 billion in tax cuts.
(Click here to tell senators to pass the American Recovery and Reinvestment Act now.)
In a letter to House members, AFL-CIO Government Affairs Director Bill Samuel says the bill’s $550 billion in targeted investments will create new jobs and prevent others from vanishing.
Investments in infrastructure and energy would provide millions of good-paying jobs that cannot be off-shored, while helping us move toward a cleaner, greener future. Investments in schools would help us educate our children and help struggling school districts make up for budget shortfalls caused by the collapse of their property tax base. States and localities would be better able to meet budgetary pressures caused by increasing demand on the important programs they administer.
A study by the Congressional Budget Office (CBO) shows the bill will provide immediate help to the economy. Says House Speaker Nancy Pelosi (D-Calif.):
According to the CBO, about two-thirds of the plan’s recovery investments will come on the first 18 months…[it] will create jobs, help end the recession sooner, provide tax relief to millions of Americans and make critical long-term investments to lay the foundation for a stronger economy.
Click here for a detailed summary of the bill.
Today’s vote mostly broke along party lines despite Obama’s call for bipartisanship, including traveling to Capitol Hill yesterday to meet with Republican House and Senate leaders.
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Here is a more realistic and critical perspective on this bill, from the WSWS.
House of Representatives passes Obama “stimulus” bill
By Patrick Martin
29 January 2009
http://www.wsws.org/articles/2009/jan2009/stim-j29.shtml
“The US House of Representatives on Wednesday passed economic legislation proposed by the Obama administration in a 244-188 vote that was largely along party lines. Twelve conservative “Blue Dog” Democrats voted against the $819 billion bill, while not a single Republican voted for it.”
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The White House issued a written statement after the House vote, claiming, “This recovery plan will save or create more than three million new jobs over the next few years.” Even if this were true, and there are many reasons to doubt it, that would be a drop in the bucket. Given the rapid acceleration of layoffs this week, there are now predictions in the financial press that one million jobs could be eliminated in January alone. At that pace, more than Obama’s promised three million new jobs will be wiped out by the spring.
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The political position of the American ruling elite stands as follows: One of its two parties favors a relative pittance of emergency relief, out of fear that the explosive growth of mass misery and suffering will produce a political explosion. The other party is so besotted with greed that it would prefer to defy public opinion and precipitate a direct confrontation with the working class rather than permit even the slightest expansion of federal spending on social services.
…
Millions of working people voted for the Democrats and Obama because, within the framework of the US political system and its two officially backed parties, that seemed the only alternative. The Democratic campaign and the corporate-controlled media succeeded in generating considerable illusions in Obama’s vague promises of “hope” and “change,” and in the prospect of the first African-American president.”
So who were the Democrats who voted no or laid off the bill?
They should be opposed next election. Also for every member who voted no or failed tyo vote they should have their sallary stopped and their outrageous healthcare coverage terminated.
Who in the hell do they think they are. The country is in shambles and they oppose recovery efforts. Modern day Nero’s.
As a working person, I have seen evidence of a recession for years now. The recent awakening of the rest of the country to the harsh reality that working families are struggling mightily causes me to shake my head in utter disbelief. There are many theories as to the hows and whys of our current financial crises, but politics aside, corporate greed has contributed greatly to our nation’s misery. Pandering to the investors and the stock market,many companies fund the huge salaries and perks at the top by cutting their workers’ wages,benefits, and retirement security. When you’re living paycheck to paycheck, cutbacks and unexpected expenses can put your finances in the hole quickly.
Just what is a job? Is it any position that pays a wage? In those statistics, are those who make minimum wage and work less than 20 hours a week working multiple jobs counted? Or are these the scarce full time, benefit-paying, pension earning positions that can sustain a family of four? When these workers are self-employed, working in direct sales, for instance—they don’t ever show up on the radar because they don’t qualify as unemployed if an entire product line ceases to exist and they lose their business.
If my hours get cut, I’m simply out the money. There’s nowhere else for me to go and replace that income; if I couldn’t qualify for my benefits by hours worked, I certainly couldn’t afford the COBRA co-pay to keep my medical coverage. Rent and utilities have to be paid, prescriptions have to be bought, and then maybe even some groceries if there’s enough left over.
Most of my co-workers will admit that they are one or two paychecks away from financial ruin. The cost of living has risen and our wages have been stagnant. There is no disposable income for extras; it is getting more difficult to put aside money for college or home ownership. I am willing to bet that most families have more debt than savings, and that trying to stay afloat without going bankrupt is a growing concern.
So, yeah, we’ve stopped spending. The credit cards are maxed out, the savings went to cover the rising rent and utilities, and there’s no money for a latte or a haircut or other little luxury. Will a stimulus save us from ourselves? Hardly. Will it give temporary relief? Absolutely.
Conservatives if it was not so serious, I would laugh. Tax cuts, How will tax cuts help people with no wages? It will not. It will only help those elite wealthy few! Let us see the names of the Democrats that crossed the aisle… Time for recalls!
Republicans seem to have no trouble feeding failed bankers and real estate gougers already fattened wallets, yet have trouble, on a wholesale scale, with providing some relief to working people. I suppose some credit should be given to the Republicans for promoting the Socialist agenda with the partial nationalization of the banking system.
Every once in a while the point is made that when we vote we should give consideration to a candidates stance on issues that matter most to working people. This vote is reason enough to never look again to any member of the Republican party as a friend to the working person. Every Representative, Republican or Democrat, that took this stance should be voted out of office.
As with most bills that Congress proposes this one has the obligatory ‘pork’. Some of the money destined to be spent if this bill passes will neither stimulate the economy nor create jobs.
And then there are the ‘tax cuts’. These always amaze me. When the government cuts taxes that means their income decreases. But while they’re cutting taxes they’re increasing spending. Make sense? Not to me.
We don’t even have the money that’s to be spent as a result of this bill. That means more borrowing. Anyone have any idea who really owns the USA anymore? My guess is it ain’t us!
Once again our illustrious politicians are throwing good money after bad!
The phrase “don’t sacrifice the good in pursuit of the perfect” is often used to alibi applying Band-aids to fix a heart attack.
The economic stimulus package is an exception! Although it may not be the “perfect” package it needs to get passed NOW!
Too many working class families are hurting! Too many are enduring hardship! We need jobs and we need help maintaining other essential human needs! We’re not asking for handouts. Those of us who are able to work want to work! (And please, please, please remember this: after the current economic crisis has passed, the wealthy will still be wealthy. It will have been working class families, and only working class families, who suffered.)
The GOP vote against the stimulus package was not all that surprising. We’ve seen that bunch in action for far too long. They do not even try to hide their disdain for those of us who do an honest day’s work.
11 phony Blue Dog Democrats or Blue Dog wannabes deserted us and voted with the same people who have been shafting us. Their excuse? They say they vote their conscience! Huh? While they are voting their conscience, who is voting our conscience?
The malfeasant 11 need to be told to get into line. Should they fail to do so, voters in their districts need to band together and vote their collective conscience and replace them with real Democrats!
Lastly, this stimulus package is only a beginning. We’ll need more job-producing legislation. Don’t be swayed by the “big government is bad” crowd. Hell, where does the pay for Congress come from? Yup, that’s right…the government of the people! What’s more, tens and tens of millions of US workers work at jobs that receive some federal funding. Highway workers, police and fire fighters, defense industry workers, health care workers, teachers, transportation workers, all government employees (including Congress and Congressional staffers) postal workers, our military, forestry workers, and on, and on and on, rely on government spending for their jobs.
Don’t get hoodwinked by the “big government is bad” hate-mongers. Besides, they really relish big government as long as it is their rich and powerful corporate and Wall Street benefactors who are on the receiving end of government handouts.
Now it’s our turn! And we’re not aking for handouts. We’re simply asking for a helping hand