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Stimulus.
Omnibus. Debt. Deficit. GDP. TARP. In the midst of today’s economy, it
is confusing and daunting enough to navigate our personal financial
situations, let alone master the many terms that impact our nation’s
economy. Yet, Americans recognize that as consequential as our personal
financial decisions are now, so too are the financial decisions being
made by our leaders in Washington.
So consequential, in fact, that the impacts and costs of the policy
choices made in Washington will be felt by Americans both in the coming
years as our nation works towards economic recovery and for generations
to come.
This week, Congress – without my support – gave
final approval to a budget that will create the largest deficit in
history that will result in more debt in the next ten years than the
entire amount of debt accumulated by the federal government from 1789 to
today. And, throughout the course of the last year, the federal
government has saddled the American taxpayer with the task of bailing
out huge corporations, propping up failing quasi-government
organizations, and providing hundreds of billions of dollars in
“stimulus” programs – many of which will have little or no positive
impact on the economy. Jobs, home values, and personal wealth have all
faced losses over the last year and a half.
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Over the past 12
months, the number of unemployed Americans has increased by about 5.3
million, to 13.2 million as of March 2009.
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There is an
almost 10 month supply of houses on the market as of February. Five to
six months of supply is usually consistent with a balanced market. Home
prices have fallen more than 30% from 2006.
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The average
household net worth with persons between 45 and 54 years old has fallen
by more than 45% during the past 5 years, dropping to $94,200 this year
from $172,400 in 2004. For seniors, the decline in wealth was nearly 50%
in 2009.
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The ratio of
household debt to the U.S. gross domestic product has reached 100%. That
ratio did not reach 50% until the mid-1980s, and did not reach 70% until
2000. This means that if you added up the personal debt of everyone in
the United States, it matches the amount we produce every year.
"But voting against these proposals won’t chart a course to a new
economic future for America" |
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A record number
of Americans are filing for personal bankruptcy. For example, the
Bankruptcy Court for the Eastern District of Virginia, which is located
in Richmond, saw 619 bankruptcy filings in January 2009. That is a 145%
increase from January 2008, which had only 251 filings. In February
2009, there were 755 filings, or a 172% increase from February 2008.
Congress has made many attempts to solve these issues through bailout
and stimulus packages. I am one of only 17 of 435 Members of the House
of Representatives who voted against every one of these bills, however,
primarily because these proposals lacked accountability, transparency –
and most importantly – effectiveness. But voting against these proposals
won’t chart a course to a new economic future for America. To understand
how to begin solving America’s economic challenges we need to know where
we have been and where we are going. Through the course of this two-part
series, we will look first at the attempts of Congress over the last
year to address the economic crisis and second at the principles that
have made America great and how those principles can guide us towards
solutions for economic recovery.
Especially at this time, your input and feedback is critical in my
decision-making process. After reading this
booklet, please send me your personal experiences and thoughts on
how economic issues are impacting your family by emailing me through my
website,
http://randyforbes.house.gov.
Click
the cover below to download a copy of the booklet, Finding America's
Compass: A Look at Where We have Been by Congressman Forbes.
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