Economy

“America is the land of opportunity.  Congress needs to keep it that way by keeping taxes low, making sure regulations are limited and based on common sense, and ensuring Americans have the freedom to make the decisions that are best for themselves and their families.  We must have competent government that spends within its means and is accountable to those who are paying the bills—the taxpayers.”

Economy in recession…

Our economy is weakened, job losses are mounting, and people are suffering as a result.  Unfortunately, many of the economic measures put in place over the past year focus on increasing the role of the federal government in business and financing it with taxpayer funds.  The fundamental relationship between government and its citizens is being altered.

Rescuing small businesses…   
 
While the federal government can encourage economic growth and help those who have lost their jobs, we cannot borrow and spend our way back to prosperity.  Instead, we should first focus on helping small businesses, which created 60 to 80 percent of new jobs over the last ten years.  In Texas alone, small businesses now account for 98.7 percent of the state’s employers.  The most effective way to help them is to lower or eliminate taxes like the death tax, make health care more affordable, and reduce regulation.

Federal spending spree…

In addition to being too heavy-handed, the government has been on a spending spree with few results to show for it.  The 2009 stimulus, which I voted against, is a good example.  While President Obama claimed the stimulus bill would create 3.5 million jobs, the nation has lost a total of 2.7 million since it went into effect.  In fact, according to White House data, 49 states and the District of Columbia have lost jobs since the stimulus was enacted.  

There is some discussion by the President and the Democratic leadership about another stimulus and funding additional government programs to create jobs.  I am afraid this “second stimulus” will be as ineffective as the first.

Deficit is swelling and debt is skyrocketing…

Spending more than you take in is deficit spending, and the federal deficit was three times higher in 2009 than it was in 2008.  In fact, the U.S. government tied an all-time deficit spending record in August 2009.  Long-term deficits will drive up interest rates for consumers, raise prices of goods and services, and weaken America’s competitiveness and economic security.

When there is a deficit, the government must borrow the money it needs to pay its bills.  This borrowed money constitutes our national debt, which currently stands at $12 trillion and is growing at rates that have not been matched since World War II.  

In early February 2010, the debt ceiling was raised to $14.3 trillion – roughly the size of the entire U.S. economy. It is the fifth such increase in the past year-and-a-half alone.  Each American’s share of that debt is $46,319.  Each household’s share is $121,982.

Growing our economy…

Deficit spending that leads to a doubling of the debt is no solution to jump-starting our economy, creating jobs, or running the government.  It is my hope that Democrats and Republicans can come together to bring real fiscal responsibility and do what’s right for families, for small businesses, and for our country’s future.  But, ultimately, it will be you and other hard-working Americans that strengthen the economy and bring our country to prosperity.  Congress needs to make policies that recognize and reward America’s natural entrepreneurship rather than stifling it.