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Rep. Steve Israel

Rep. Steve Israel

Posted: December 15, 2008 12:51 PM

Saving the Economy Requires a Mix of Medicines


If the holiday season is getting too festive, sit with me at a House Appropriations Committee hearing with three State Governors about the effect of the economy on state and local budgets.

Last Thursday, Governors John Corzine (D-NJ), Jim Douglas (R-VT), and Jim Doyle (D-WI) testified about massive budget cuts, social disruption, and economic dislocation. It was the policy version of "It's A Wonderful Life," where states and localities are becoming Pottersville.

One of the most prominent prescriptions for America's ailing economy has been infrastructure investments. But during the hearing, Governor Corzine made the following point:

Unless we help the states plug the hole in their operating budgets, any good we do through infrastructure stimulus will be canceled out by cuts in social services and the safety net.

To put it another way, you can spend $400 billion over several years on new roads and bridges, but if the states cut $400 billion from their operating budgets in the same space of time, we're running in place.

I believe that infrastructure investments are essential to rebuilding America's economy and creating jobs. And, I have cosponsored legislation to create a National Infrastructure Development Corporation. But infrastructure isn't the sole strategy for dealing with a spiraling economy.

The federal government needs to provide expedient relief to state operating budgets. That means fully funding educational programs, reducing state matching requirements for federal grants, and restoring revenue sharing.

We can rebuild our infrastructure and repair state and local budgets at the same time. It's time to listen to our state and local officials and "plug the hole" Governor Corzine talked about.

If we hear and act on their advice, we can craft a bill that will keep local services moving, ensure education doesn't suffer, prevent climbing state and local taxes, and create jobs and revenue to boost our ailing economy.

Follow Rep. Steve Israel on Twitter: www.twitter.com/repsteveisrael

If the holiday season is getting too festive, sit with me at a House Appropriations Committee hearing with three State Governors about the effect of the economy on state and local budgets. Last Thurs...
If the holiday season is getting too festive, sit with me at a House Appropriations Committee hearing with three State Governors about the effect of the economy on state and local budgets. Last Thurs...
 
 
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12:54 PM on 12/16/2008
Look within your own house to fix the problem..Look to the federal reserve system and banks who make tons of money , then take it out of circilation causing this credit problem on purpose..Next is world bank to fix the problem which is what they wanted in the first place..They cant win if we dont play..Few cannot control the many if we dont let them..Simplify..No credit..Happiness is not external things its internal
10:08 AM on 12/16/2008
The government solution when times are good: spend more. The government solution when times are hard: spend more. I'm detecting a pattern.
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jeffrey678
You don't happen to make it. You make it happen.
09:59 AM on 12/16/2008
IT WILL NOT WORK. We continue to export our income base overseas with trade agreements and outsourcing. If we lose manufacturing what will the service industries service. In upstate NY hospitals, entire school districts, and community colleges have closed .
10:08 AM on 12/16/2008
Manufacturing is an industry of the past. Fuggetaboudit.
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HUFFPOST SUPER USER
Phideaux
08:42 AM on 12/16/2008
"Mix of medicines..." Hmmm, sounds like chemotherapy. Here's hoping there's some good antiemetics to go along with it; we're going the need them.
10:17 PM on 12/15/2008
Thanks for the post. They're talking about a 5 billion cut here in Washington state. We need help
10:09 AM on 12/16/2008
When you don't have money, cutting your budget is a good idea.
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Kassandra
Idiot savant artistic genius
09:29 PM on 12/15/2008
I just want at the assurance that Bush' brilliant idea of limiting Medicare/Medicaid to hospital only visits (in other words if you're dying) is not taken seriously and will not be implemented.

GAWD these people have broken EVERYTHING
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RedneckDem
The top 1% stole my made in china bootstraps
07:37 PM on 12/15/2008
There also must be resolutions that no illegals or even legal temp workers for these jobs, which will ensure that contractors pay a living wage for these projects. Since we forgot to dot our i's and cross our t's in the bank bailout, we definetely can't allow these large contractors to say that no one want to work.
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Kassandra
Idiot savant artistic genius
09:32 PM on 12/15/2008
I certainly hope so, This is all about bringing the US into "parity with 50cent an hour wages the world over.
as for the illegals, if they're hanging around expecting to get these "jobs Americans won't do", there's going to be some trouble, I reckon.
10:10 AM on 12/16/2008
What's a "living wage"? You're lucky to get "any wage".
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cadsuch
A 70 retired construction worker/truck driver
06:38 PM on 12/15/2008
Steve. Our economy is ailing because our people are ailing. We have spent too much of the last 3 decades worshiping at the alter of trickle down. And when we do what trickle down say to do, those rich folks that got that tax break, are more then willing to put money into the campaign fund of the politician that say he will do more of the same.

Our government has declared war on people. We listened to the media tell us that the "new" economy is called the information economy or the service economy. And we knew it was crap then and we are all going to pay a huge price because our economy is getting ready to prove that it was crap.

We can't jump start, or kick start or bail out an economy that has no one putting value into it. People who work for a living at a job that puts value into our society, pay the taxes that our local and state governments need, to pay as they go.

But you guys can't shuffle papers fast enough or bail out the banks or bail out the brokerage houses or bail out the big three and expect to make the economy that needs people working, function the way it needs to function.
10:11 AM on 12/16/2008
No they aren't suffering because of "trickle down". They are a suffering because of their greed.
06:35 PM on 12/15/2008
Trillions in Public work/energy/health/infrastructure.

Start with Federal properties ordering solar wind and eff upgrades.

Stop giving banker money they horde.
10:11 AM on 12/16/2008
Don't waste money on solar. Build nuke plants.
03:07 PM on 12/16/2008
So we can have More Mushroom clouds???
02:47 PM on 12/15/2008
Want a solution to many of our economic problems? Read this:

http://www.the401kmortgage.com/
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Vinca
01:38 PM on 12/15/2008
I HEARD A C-SPAN CALLER, TODAY READING AN ARTICLE THAT SHE SAW YESTERDAY IN, PARADE MAGAZINE< IN WHICH< TOLD ABOUT YHE HUGE SUMS OF MONEY WE'VE GIVEN AWAY, TO PACKISTAN, ISRAEL, AND 3 OR 4 COUNRIES,