Economy
The recession between 2007 and 2009 was the most severe economic contraction since the 1930s. While there has been some renewed growth in the economy since then, it has been in the face of persistently high levels of unemployment and lingering weakness in the housing market in Connecticut and throughout the rest of the country.
Over the past several years, Senator Lieberman has played a leading role in the U.S. Senate’s efforts to halt the economic slide and restoring the country to a path of economic stability and growth. He supported the Emergency Economic Stabilization Act (EESA) -- also known as the Trouble Asset Relief Program (TARP) -- which played a key role in stabilizing our financial markets through capital injections into a number of financial institutions and the purchase of troubled assets to clean up banks’ balance sheets. Senator Lieberman also helped secure passage of the American Recovery and Reinvestment Act (ARRA) in early 2009. This bill included a variety of critical measures to stabilize the economy, including: (1) tax cuts that have benefited over 100 million families; (2) expansion of federal aid to states for healthcare, education, and unemployment benefits, (3) infrastructure investments to improve Connecticut’s roads, bridges, and transit options; and (4) investments in energy efficiency and renewable energy.
A study by economists Alan Blinder of Princeton and Mark Zandi of Moody’s Economy.com estimated that without the passage of TARP and ARRA, our economy would have 8.5 million fewer jobs, and the nation’s Gross Domestic Product (GDP) in 2010 would have been about 11.5 percent lower. The economy would also likely have been sucked into a deflationary spiral that could have easily turned into another Great Depression instead of the recession from which we are slowly beginning to recover.
The Federal Budget and National Debt
Senator Lieberman understands the dire fiscal situation our country currently faces and continues to work with colleagues on both sides of the aisle to find a comprehensive solution to our growing budget deficits and staggering national debt. Right now, our total public held debt stands at about $11.48 trillion, which is about 76% our 2011 Gross Domestic Product (GDP) of $15.08 trillion. We desperately need to establish an ambitious, responsible, and realistic fiscal goal for stabilizing the debt. Public debt at 60% of GDP is an internationally recognized standard for stabilizing the debt in the short term. But we must also seek ways to reduce the debt further in the long term, towards the historical level of around 40% of GDP.
The effort to address this fiscal crisis is particularly important as we approach the next vote on raising the debt ceiling later this summer. And for the first time in the history of our country, Standard and Poor downgraded the fiscal outlook for the United States from “stable” to “negative.” Senator Lieberman knows that if we do not act now to reign in federal spending, there will be lasting consequences in terms of the strength and productivity of our economy, the tax burden on future generations of Americans, and our financial standing around the world. In the short term, our debt also risks causing higher interest rates and inflation as the purchasing power of the dollar depreciates.
Senator Lieberman understands that if we do not act now to reign in federal spending, there will be lasting consequences in terms of the strength and productivity of our economy, the tax burden on future generations of Americans, and our financial standing around the world. In the short term, our debt also risks causing higher interest rates and inflation as the purchasing power of the dollar depreciates.
Senator Lieberman believes that any long-term solution to this problem has to be a balanced and bipartisan one that includes both spending cuts and revenue increases. As such, he is committed to working with anyone who is serious about trimming our excess debt, and he applauds everyone—Republican or Democrat—who has at least put forward deficit reduction proposals in an effort to move the discussion forward.
As we approach the deadline for going over the fiscal cliff, Senator Lieberman will continue to work with anyone who is willing to forge a bipartisan solution to one of America’s most difficult challenges – getting our fiscal house in order.
Creating Jobs
Senator Lieberman has continued to support a number of initiatives to spur economic growth, create jobs, and support America’s manufacturing base. He has consistently led the bipartisan effort to provide needed funding for the Manufacturing Extension Partnership (MEP), a leading public-private program for helping small and medium-sized American manufacturers use innovation to grow their businesses, increase their profitability, and expand into new markets globally.
Another example of an initiative that Senator Lieberman has supported to strengthen the economy includes the renewal of the U.S. Export-Import Bank’s (Ex-Im) lending authority and gradually increase in the bank’s lending cap from $100 billion to $140 billion. Ex-Im provides direct loan, credit financing, loan guarantees, and credit insurance to assist in financing the export of U.S. goods and services to international markets. The bank does not compete with private sector lenders, but rather the bank assumes credit and country risks that the private sector is unable or unwilling to accept. Ex-Im also helps level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. Over the past 77 years, Ex-Im has supported more than $456 billion of U.S. exports, primarily to developing international markets.
But while Senator Lieberman has supported these efforts to jump start our economy, he has repeatedly stressed that government actions alone are not enough. For America to regain its economic strength - creating new jobs that pay good wages – the private sector must regain its vitality. For that to happen, Washington must figure out how to reduce the federal deficit and the national debt and pursue pro-growth, fiscally responsible, business-friendly tax policies that will provide a solid foundation for new and existing businesses and the next generation of American entrepreneurs.
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