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TO: Constituents of Virginia’s Fourth Congressional District
FR: Congressman Randy Forbes
RE: Economic Recovery and Job Creation: An Issue Brief for Constituents
DT: October 8, 2010
All -
Americans across the country are concerned about the state of our economy in the United State and are asking when or whether we can recover. Specifically, many are interested in what kind of relief can be made available to small businesses across America so they can begin creating jobs for American families. I've prepared this short brief to inform you of the latest economic outlooks, as well as specific solutions I have introduced, cosponsored or supported to put us on a path of economic recovery and to create jobs. Please share this information with other individuals who may be interested.
- Randy
SITUATIONAL OUTLOOK
- According to a monthly report by the Labor Department, unemployment is at 9.6 percent and nearly 15 million Americans are looking for jobs. A total of 27 states reported higher unemployment rates in August, nearly double the 14 that saw increases in July.
- The nonpartisan Congressional Budget Office (CBO) estimates the cost of the “stimulus” bill will reach $814 billion and interest on the debt for the bill will be at least $347 billion.
- Since the passage of the “stimulus” bill:
- Nearly 3.6 million jobs have been lost. 283,000 jobs were lost in June, July and August 2010. 95,000 jobs were lost in September alone.
- The unemployment rate has risen over 2 percentage points.
- Only 45% of people between the ages of 16 and 24 years old have a job. Prior to the passage of the stimulus, employment among 16 to 24 year olds had never slipped below 47.5 percent.
- According to a recent survey of small business owners by Citigroup Inc., only 17% had plans to hire additional employees.
- This year’s projected annual deficit of nearly $1.3 trillion is forecasted to be the second of three years with deficits surpassing a trillion dollars.
- Current leadership in Congress is poised to impose the largest tax increase in U.S. history. This $3.9 trillion tax hike will affect every taxpayer.
ANALYSIS
We cannot borrow and spend our way back to a growing economy. Real economic growth comes from generating income for American families, and income comes from increasing commerce and growing jobs. When our nation’s small businesses – who employ half of our nation’s private work force – are not hiring, it impedes economic growth. Washington needs to abandon deficit spending and stimulus quick-fixes and instead return to economic principles that promote recovery and encourage the creation of much-needed new jobs.
PROPOSED SOLUTIONS
Direct-Impact Solutions
Make tax cuts permanent
Implementing lasting tax cuts will help to restore economic freedom in the United States and put our country on the path to a brighter future. I have cosponsored the Economic Freedom Act (H.R. 5029), which would reduce taxes for American businesses and families.
Decrease burdensome regulations on small businesses
In our current economic situation, we must show our small businesses that we support them by continuing pro-growth policies like lowering taxes, simplifying the tax code, and reducing burdensome regulations.
Lower the debt
Our national debt is expected to reach 93.1% of our GDP this year. Economic experts say even a 1 percent increase in GDP can create almost one million jobs. We must make a commitment to decreasing the national debt, which is why I have introduced a bill to cut government spending by 40% over the next five years.
Indirect-Impact Solutions
Develop lasting energy solutions
We need a bold initiative that will encourage investment in new forms of energy, thus ending our dependence on oil and creating thousands of new energy jobs for Americans. I have introduced the New Manhattan Project for Energy Independence, which would create a national challenge for lasting energy solutions.
Enforce Immigration Laws
A study by the Center for Immigration Studies found that when immigration laws were enforced in the workplace, wages increased for American workers by 7.7 percent on average. We need to enforce immigration laws so that American workers do not have to compete with illegal immigrants for jobs.
I’d like your thoughts on these solutions. Email me here or read more on my website.
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