Economy

Strengthening Our Economy and Creating Jobs

Far too many Fifth District residents find themselves out of work or are worried about losing their job.  That is why my highest priority remains supporting initiatives that create jobs and promote economic development in our communities.

I believe that Congress must show much greater urgency in helping the millions of workers who have lost their jobs through no fault of their own and have not been able to find a new one in this persistently difficult economy.  There are many commonsense and traditionally bipartisan steps that we should take in order to help get our economy moving again and help people get back to work. 

The American Jobs Act

In his address to Congress in September, President Obama put forward a number of important measures designed to address the unacceptably high unemployment rate.  The President strongly endorsed an infrastructure bank, similar to what Senator Kerry proposed earlier this year.  Such an initiative has been supported by theU.S. Chamber of Commerce as well as labor unions, and it could immediately put people to work rebuilding our roads, bridges, railways, and broadband lines. 

The President also rightly proposed an extension of unemployment benefits, which serve as a lifeline to those who have lost their jobs in this difficult economy through no fault of their own.  With unemployment persisting in double digits in Lowell and Lawrence, an extension of these benefits is very much needed to help families stay in their homes, put food on the table, and avoid potentially larger financial hardships which have consequences for our economy at large. 

These initiatives have been supported by many of my Republican colleagues over the years because of their proven effectiveness and they should be embraced again at this time.  In fact, Goldman Sachs predicted the American Jobs Act would increase GDP by 1.5 percent in 2012. Mark Zandi, chief economist at Moody’s Analytics, estimated the bill would add 1.9 million jobs next year, and decrease unemployment by a full percentage point.

I also appreciated that the President has insisted that the American Jobs Act be fully paid for and not add to our debt.  I remain disappointed that the Republican controlled House has indicated that it will not even allow a vote on the President’s Jobs Bill and is instead content to continue their troubling track record of not putting forth a single comprehensive jobs bill since taking power in January.  People need jobs, they need them now, and Congress should not delay any further.

Direct Hires

I recently introduced the Helping Individuals Return to Employment (HIRE) Act which would provide grants to help areas of the country that are experiencing persistently high unemployment rates put residents back to work improving their community.  Similar to the New Deal-era Works Progress Administration, this grant program would enable areas of the country that have battled high unemployment for more than two years like Lowell, Lawrence, Methuen, and Haverhill, employ people who are desperately seeking work and opportunity. 

My bill would establish a grant program through the Department of Labor to allow the hardest hit communities around the country to hire unemployed workers for projects benefitting the community.  Eligible grantees can include local governments, workforce investment boards, and non-profit organizations located in, or primarily serving, hard hit areas. 

While there are many other steps that we must take to improve our economy and jobs outlook such as reducing our deficit and passing the American Jobs Act, far too many Fifth District residents who find themselves out of work simply cannot afford to wait any longer.

Small Business 

From the woman who runs a business out of her home, to the firm with 200 employees that designs high-tech products for the Defense Department, our small businesses serve vastly divergent markets and have differing needs.  Historically, small businesses help bring economies out of recession, are highly motivated to be innovative, and create a significant percentage of new jobs.  Please visit my small business page detailing steps I have taken to support small businesses in the Fifth District.

Renewal Community Tax Incentives

I have been spearheading efforts in Congress for a long-term extension of tax incentives that help foster economic development in cities in the Fifth District.  The Renewal Community (RC) credit rewards employers who operate in designated hard-hit communities or who hire employees from those communities, creating a ripple effect of economic growth throughout the region.

In Lawrence, RC wage incentives have helped American manufacturers like New Balance Athletic Shoe and Polartec maintain operations in the United States, employing hundreds of workers.  At the Riverwalk Complex, the Lupoli Companies have invested over $100 million using RC incentives, drawing over a hundred companies and bringing more than 2,000 new jobs to Lawrence. 

In Lowell, the RC Commercial Revitalization Deduction has leveraged over $50 million dollars in private investment and created hundreds of new jobs at projects such as the Boott Cotton Mill, the American Textile History Museum, Wannalancit Mill and in the JAM district.  These are just a few of many examples. 

Click here to read more about why the effort to reauthorize the Renewal Communities program is so critical to our local economy.

R&D tax credits

Massachusetts is one of the top research and development economies in the world, ranking first among states for patents, R&D, and Small Business Innovation Research (SBIR) awards per capita, according to the Journal of New England Technology.  I am a strong supporter of making the federal R&D tax credit permanent, and have consistently cosponsored legislation and called on House and Senate leaders to make these credits permanent.  As one Fifth District company wrote to me, “The R&D tax credit greatly helps smaller companies like mine as it helps level the playing field when competing in the global market.  We are able invest more into R&D knowing that the short term cost is less and the return on investment will be quicker, and that in turn helps us to grow here.” 

Supporting Domestic Manufacturing

I recently hosted a town hall meeting in Lawrence with local employers, and workforce development specialists to discuss ways to grow the domestic manufacturing base and promote policies that keep jobs in the United States rather than having them sent overseas.  Approximately 75 people attended the town hall meeting including manufacturers, interested citizens, and even a gentleman who wanted to start a small manufacturing business, but needed help getting it off the ground.

I believe that for too long multinational corporations have fueled the idea that we don’t need to make things in America anymore, that we can invent things here but let our global competitors make them overseas.  That idea ignores the very real dangers to our economy and our well-being of simply ceding manufacturing to other countries.  The success of many Massachusetts manufacturing companies, like New Balance and Polartec who participated in the town hall on Monday, demonstrates that manufacturing jobs can stay here, but we need to pursue policies at the federal level that support the needs of these employers.

In the House of Representatives, I am supporting a series of legislative proposals as part of the Make it in America Agenda which provide tax incentives, workforce training, and other support for the production of goods and services in the United States as opposed to overseas. 

I held the town hall at New Balance, which is the last athletics shoemaker to make sneakers from first stitch to final product in the U.S and which employs 800 Massachusetts workers.  You can click here to read more about what was discussed at this important town hall meeting or click here to view the YouTube video of the meeting