GOP See Economic Crisis as Ripe Cause for the Very Same Policies That Got Us Here in the First Place

You may have heard that the U.S. economy is in a bit of a pickle, hemorrhaging millions of jobs under the protracted Bush recession, with millions more on the line if nothing is done. Most Americans and most elected officials in Washington have deemed this pickle severe enough to warrant an economic recovery plan of unprecedented boldness. But some in Washington insist on viewing the worst recession since the Great Depression through the same partisan lens as they always have, devoid of any sense of urgency and coming to the table with nothing but the same old ideas that got us in this mess to begin with.

In December, then President Elect Barack Obama wasted no time after the election outlining a major jobs and economic recovery plan that will create or save three to four million jobs, strengthen our middle class, and improve the economy in the near and long term by making sound investments in state fiscal relief, health care, energy efficiency, transportation and schools. And the Democratic leadership has been working every since to set the plan into motion.

And then there's the Congressional Republicans, still stuck in the past and in their well worn, special interest driven ideology. They're not about to let two electoral defeats in a row and the worst economic crisis in our lifetimes spur any sort of reevaluation of their failed conservative economic philosophies of corporate protectionism and 'trickle-down' economics. Hey, if it ain't broke...well. They see the worst economic crisis in more than 70 years as a ripe opportunity to promote the same old, discredited policies which got us into this crisis in the first place:

"Jon Kyl (Ariz.), a member of the Senate Republican leadership team, said he hadn't studied the list of proposed cuts, but that he favored reducing corporate and capital gains taxes, and providing more generous small-business incentives. And, he said, "These changes should be permanent, rather than just temporary.'" [Washington Post, 1/6/09]

"Rep. Tom Price of Georgia, incoming chairman of the conservative Republican Study Committee, said House Republicans were not likely to support the emerging Democratic package and would instead push for their own version of a stimulus measure urging a suspension of capital gains taxes on new stock share purchases and a cut in the corporate tax rate from 35 percent to 25 percent. [CQ, 12/22/08]

What a textbook case of upside-down priorities. Slashing capital gains taxes and taxes on stock dividends would favor only the well-heeled in this country who need relief the least - an economic prescription proven to have virtually no stimulative effects on the economy - at the expense of job generating and saving policies like state fiscal relief and investments in new energy technology and in upgrading our nation's infrastructure .

States for example, most of which required to balance their budgets, face vexing choices in an economic downturn: raise taxes, cut services or layoff employees or some combination of all three -- all of which are counter cyclical, making a bad economic situation worse and accelerating the downward spiral. State fiscal relief provided by the federal government not only can stave off such choices - but is among the most stimulative elements of an economic recovery plan.

According to Mark Zandi, the widely respected economist who advised Senator John McCain during the campaign, every dollar invested in public services creates a $1.38 in economic activity in our communities. As for helping those individuals and families most impacted by this crisis Zandi concludes that every dollar spent on unemployment benefits, our domestic economy grows by $1.63. And for every dollar spent on food stamps our economy grows by $1.73.

For nearly 8 years Republicans got to try it their way - one tax giveaway to the wealthy and well connected and corporate America after another -- and yet look where we are today: 8 years of the worst economic performance than any eight year span since records on such things have been kept. An abysmal performance where ideas like the ones we are hearing today - tax cuts for business and upper incomers - didn't work.

In December, after having discussions with the Obama transition team and Congressional leaders, Americans United for Change, along with AFSCME, SEIU, MoveOn.org Political Action, USAction and ACORN - pulled a broad cross section of more than 30 groups together to form the Campaign for Jobs and Economic Recovery to lead the fight to pass the Obama jobs and economic recovery plan. We have conducted hundreds of events across the country, we have held meetings with members of Congress in their districts, we have written and placed hundreds of letters to the editor, we have produced web videos, initiated phone and email campaigns and just launched the first paid ad of the campaign in Ohio urging Senator George Voinovich to back the Obama jobs plan as the President Elect was in Cleveland touring a manufacturing plant and promoting his plan.

We had hoped that this activity would not have been necessary - that members of Congress would have learned that what has been tried for the past eight years - Bush style "trickle down economics" - doesn't work. And that they would have gotten the message from the election and from the wisdom of the Obama plan that it is time to make important investments that will stimulate the economy now and prepare it for the future.

Sadly, the need is clear.

"Oh my God," was Republican Leader John Boehner's 3-word dismissal of the House Leadership's draft of the Obama jobs and economic plan. Yes, no better way to show how serious Republicans are taking this economic crisis than through juvenile wise cracking.

Comments

[RoloTomassi]

Their faith-based ideology doesn't allow for failure, so therefore, for as long as they embrace this ideology and insist upon demonizing all other approaches [which is also a primary characteristic of their political "belief system"], they are unable to even see the fallacy of their policies--by their definition, all that is wrong originates others whilte their actions are infallible.

And while we are not collectively responsible for ultra-conservative tunnel vision, we are responsible for maintaining a system where two political parties effectively lock out all others, and that has brought us to a place where partisan politics has stunted our growth as a democratic republic.

If we do not evolve politically to include more political parties as viable players in the process, we will be relegated to a permanent inferior global status, forever playing catch-up to more democratic, progressive nations.

[slarabee]

I think though that their obstructionist tactics and the talking heads of the party like "Rush" saying he hopes Obama fails will only serve to further alienate them from the public. 2010 will tell the tale.

[dignityandhonor]

F Boehner. Anyone so consistently and eerily tan can't be trusted.

[Navision]

Part two

WE THE PEOPLE, cannot allow Congress and the Corporate Monopoly Money Players, play with this loaded gun.

Once, we the people let them know we are not going to tolerate this anymore they will get the message.

Please join me in the Grass Roots effort to send a clear message to Congress and the Banks, that
America is our country niot theirs to rape, burn, and pillage.

Do we as Americans have the guts to do this and take "OUR COUNTRY BACK"

Comments please.............

[Oldchef]

The Republicans don't see their job as bringing the country as a whole through this crisis in good shape, they see their job as bolstering their base (the wealthy and well-connected), and as an opportunity to destroy the unions once and for all. They don't seem to be able to grasp the fact that our economy is driven by consumer spending, and if consumers have no money to spend, or are afraid to spend what little they do have, the economy suffers. We need good paying jobs for the workers so they have money to spend. The Republicans' record of net job losses has exacerbated the already declining economy. The stock market has been their gauge for the health of the economy, but it was inflated by tricky securities (remember "junk bonds"?), not real, tangible products; $100K houses in 2001 were somehow deemed worth $300K by 2004, but it's the same house. Meantime wages for most were stagnant, or worse, workers were asked to take cuts while company executives made millions. Reaganomics didn't work in the 1980s, it was even worse under Bush, as the "smart boys" figured out even more toxic "securities" than the 1980s "junk bonds". It was an open invitation to the financial crooks to step in and run a massive fraud on the entire world, and the Republicans want to give them even more encouragement? Boehner and McConnell need to be laughed off the floor for the damn fools they are.

[Navision]

Why have we the American people allowed the banks to act in such a corrupt manner. It is high time that
the gun they have been holding to our head, be taken from them and the gun put to their head.

It was deemed by Republicans back in the the late 80's, after the S & L crisis that Lending Institutions
should not sell securities.

Lending Institutions, take in deposits and lend money. The loans they lend are sold in the Secondary Market, passing the risk to someone else. The securities they sold I feel are the real crux of the problem,
they sold more securities, than what really existed. Mortgage backed securities are a scam.
Worthless pieces of paper.

While the economy may have still had downturn, most likely would not have been as deep as this
depression. And yes, it is a depression not a recession. Home prices have fallen, wages are starting
to fall, but yet we are saddled with hyper-inflation.


My suggestion is: the main culprit are the 9 main banks, Bank of America, Wachovia, Citigroup, Chase,
Wells Fargo. If you personally have a checking account and/or savings account, contact your bank
tell them you are monitoring their lending practices, and if you do not hear within 20 days that they are
starting to lend, you will immediately close your account and move your money to a local community bank or credit union.


I

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[JohnFromCensornati]

Why would they change? The people they represent have done quite well over the last 8 (or 30) years. I won't claim that I have the answer to how we get out of our current mess, but it's a sure bet that the GOP doesn't have it. It's very disappointing that BHO believes that their input is important. It isn't.