Taking Responsibility: Republicans Continue Recovery Obstruction

Since the Republican Conference of the U.S. House of Representatives is largely made up of individuals who believe their party lost the 2008 elections because they did not run far enough to the right, it is not surprising that their leaders are now attempting to block efforts to clean up the mess their far right philosophy created. There appears to be no factoid or morsel of misinformation they are unwilling to utilize to make the case to do nothing other than provide still more tax cuts to their business friends.

The recent editorial by the senior Republican on the House Appropriations Committee, the so-called "King of Pork" from California's Inland Empire, is a good case in point. Rep. Jerry Lewis's argument is that spending in other people's districts doesn't create jobs, but he attempts to make it appear that he has factual support for that argument by making assertions that are flatly untrue.

His first argument is that estimates of job creation under the package do not calculate the impact of government borrowing as well as the impact of the spending. That is simply not the case. Projections by economist Christine Romer--now head of President Barack Obama's Council of Economic Advisors--as well as those of other macroeconomic forecasters include the overall impact of the proposal measuring the effect on credit markets, prices, consumer demand, and job creation.

Rep. Lewis apparently unwittingly puts his finger precisely on the problem that the U.S. economy now faces. The government is being forced into the role of borrower of last resort because the economic mismanagement of recent years has left so much of our private sector in such tatters that the rest of the private sector will not extend the credit necessary for the economy to function. It is regrettable that we are where we now find ourselves, but we should have thought of that a few years ago.

Lewis also makes totally false arguments about the cost of job creation. He claims that if the package creates only 3 million jobs, the cost per job of an $825 billion package would be $275,000. The Romer analysis, however, indicates that by the fourth quarter of 2010 the smaller package first put forward by the White House would have created 3.6 million jobs. That analysis also shows that in addition to the jobs created in 2010 the package would create substantial additional numbers of jobs in 2009, 2011, and 2012, making the annual cost per job a small fraction of the figure used by Lewis.

While Romer and Jared Bernstein--now Vice President Joe Biden's chief economic advisor--used very conservatives estimates of job creation, another estimate by Mark Zandi, the Chief Economist at Moody's Economy.Com, projects that a somewhat smaller package than the one now under consideration by Congress would produce nearly than 15 million additional man years of employment between now and the end of 2012. That works out to about $50,000 per man year of work. It should also be noted that the plan will produce a substantial number of additional jobs beyond 2012.

It is unfortunate that government cannot turn on the spigots of job creation more rapidly, and that the damage already done to households and businesses cannot be repaired more quickly. Those were facts that Rep. Lewis and his House Republican colleagues should have weighed more thoughtfully when they blocked a smaller stimulus package in September. Had it been passed and implemented then, money would now be flowing and the precipitous drops in monthly employment that we are now enduring might have been significantly softened.

What seems to be the real message being put forward by House Republicans is that government should hand out additional tax cuts to businesses and then sit on the sidelines. It is time for the loyal opposition to recognize their responsibility for the mess in which we now find ourselves and begin to find ways to be part of the solution rather than prolonging the agony in which millions of jobless Americans and at-risk families are now suffering.

Scott Lilly is a Senior Fellow at the Center for American Progress Action Fund. This article first appeared on the Center for American Progress Action Fund website.

Comments

[Girl28]

Oh, so this is the guy that republicans on the AC360 blog were citing when they said were paying 275,000 for every job created with the stimulus package. This is a great article.

[Disdain]

Not to burst your bubble but NAFTA was signed into law by President Bill Clinton on 12/8/993 not President Bush. In 1999 when President Clinton signed the Gramm-Leach-Bliley Act that deregulated the banks and forced them to doled out mortgages to people that could ill afford it.

How about an investigation into the likes of Nancy Pelosi, Maxine Waters and Barney Frank, Gregory Meeks who led the charge to prevent republicans from going after Freddie Mac and claiming that there was absolutely nothing wrong with them! If you don’t believe me watch C-SPANN 2 on you tube. These same assets previously owned by Freddie Mac have caused the demise of many such as Merrill Lynch. The camera does not lie! These same geniuses now have the solution to the problem! Give me a break! Here see for yourself!
http://www.youtube.com/watch?v=_MGT_cSi7Rs&eurl=http://www.lonelyconservative.com/tag/barney-frank/&feature=player_embedded

[research]

Love to Burst your bubble:

Unfettered trade and deregulation are the core religion of the GOP conservatives.

Own it.

[Wake-up]

How are you not getting this... REGULATION has crashed this market and the market always (and always will) find ways around it... that's cool, it's called free market capitalism which has given us the greatest system in the history of civilization... and you want to let Politicians call all the shots... take ownership of the market...

Again research, name one thing the Gov. does well?

[den1953]

The fundamentals of the economy are strong more people are buying houses then ever,the Sadam Iraq regime are going to blow us to kingdom come sound familier that was only 4 years ago. Maybe these Reb. AHOLES need a refresher course on how to run this country aparently they forgot who got elected in Nov. time to take the gloves off Dems. screw these idiots come hell or high water at least try to get this country right. These Reps. have wined enough there going to blame Dems. no matter what happpens.

[RichardD]

GOP members in the House and Senate appear to have taken in so much "pork" for their respective constituencies during the Bush Administration that many of them, collectively have developed a case of "tricky-NO-sis". It is an indication that do not understand the diet the country needs, not themselves.

[wrabbitt]

One would think that the GOP saw what happened to those that stand in the way of progress, Remember when "W" said that his tax cuts would create jobs? Well, the members of Nafta have received most of Americas jobs. So, that part of his plan works but, what country was he working for? We the people have expected the GOP to block the stimulus package because they don't want too many people to realize that they are the problem and not part of the cure.We already showed our love for the GOP at the polls in November! Guess we didn't get rid of enough of the old farts!The GOP has done everything it can to stop progress in congress,whats wrong can't they figure out how to get rich off this package? Are they representing us? Or do they still got their heads buried in the sand, and letting lobbyists tell them what to do? Congress needs to wake up or in November they will be unemployed as a lot of Americans are, And, what good is a tax break if you don't have a job? Someone explain that to me!

[neckozihp]

Ok, I'll give it a try...wrabbitt. A tax cut for those large and small companies that employ others, will stimulate the economy. Have you ever been offered a job from someone that is poor?
Businesses don't get to vote. They are taxed and regulated so much they can't breath. Look at the automobile industry for instance. Some regulation is necessary, but too many regulations limit creativity, ingenuity, free market principles of consumer demands on what is made rather than the government deciding what type of car we should drive. Allowing for success AND failure in business will help in the long run. (NO MORE BAIL OUTS!!!) Don't we all learn better from our own mistakes?

Cutting unnecessary government spending (do we REALLY need all those government ran programs)? I would rather cut taxes i.e. eliminate federal and income taxes for a period of time
(several months)--in essence, making the government learn to function with less. Rather than spend $ we don't have (thus adding to the national debt) with a 'stimulus package'. Thinking in simple terms, isn't it going to cost a great deal to print checks and distribute (mail ?) such a stimulus package to the American people? It seems to me 'common sense' would be to allow people and businesses to keep more of their money to spend as they see fit, rather than the government dictate how the money is spent.

[Disdain]

Not to burst your bubble but NAFTA was signed into law by President Bill Clinton on 12/8/993 not President Bush. In 1999 when President Clinton signed the Gramm-Leach-Bliley Act that deregulated the banks and forced them to doled out mortgages to people that could ill afford it.

How about an investigation into the likes of Nancy Pelosi, Maxine Waters and Barney Frank, Gregory Meeks who led the charge to prevent republicans from going after Freddie Mac and claiming that there was absolutely nothing wrong with them! If you don’t believe me watch C-SPANN 2 on you tube. These same assets previously owned by Freddie Mac have caused the demise of many such as Merrill Lynch. The camera does not lie! These same geniuses now have the solution to the problem! Give me a break!

Here see for yourself!
http://www.youtube.com/watch?v=_MGT_cSi7Rs&eurl=http://www.lonelyconservative.com/tag/barney-frank/&feature=player_embedded

The republicans do not have the vote to block this bill so the democrats are free and clear to waste another 900 billions of taxpayers money and come back for more. If the R had any sense they would step completely aside and the dems finish off this nation all by their lonesome!

As for the tax issue, I am still trying to figure how the government can give tax cut to people who do not pay any. Can't help you there!

[garymc8]

The rich don't pay taxes yet bush gave them more than anybody. By the way, the taxes they are cutting are payroll taxes and everyone with a job pays them. Republicans leave us no choice, you are either blithering idiots or very disingenious obstructionists, but your policy of deregulation got us here, NOT DEMOCRATS.

[garymc8]

One is a choice the other a treatment.

[Disdain]

That may well be. However in this particular instance, a democrat signed the bill deregulating the banks . And to add insult to injury, they, the democrats, insisted on defending Freddie when the republicans wanted to regulate them in 2004 because of all of the irregularities in their books. These toxic loans ended up being purchased by other banks. These banks are now paying the price for any and by default US. I am not throwing this in a vacuum. Watch them in their own words!

Own that.

[garymc8]

DISTORTION

[garymc8]

ELECTORAL VOTES ARE WHAT MATTER. OBAMA BEAT MCCAIN 2 TO 1 . TYPICAL REPUBLICAN CHERRY PICKING TO MAKE THE DISHONEST POINT.

[research]

80% of Americans have rejected Raygun, Bush GOP, conservative economics.

How many lies and deceptions from the GOP

should we take before stop taking them seriously?

Only 51 Senators are needed to override the Filibuster.

The Dems will be blamed,

if the GOP succeed in obstructing and corrupting Obama's Stimulus plan.

[DuganS1]

It appears the Obama administration is following the economic ideals of Reagan and Bush II with his continued support of the banks, increased deficit spending, and more large tax cuts. The only difference thus far seems to be some moderate protectionist rhetoric against China and an increase in social spending programs which appears in the stimulus.

[research]

Try to confuse the issue now Dugan?

Difeicit spending if the GOP speciality.

large tax cut were supposed to be for those making less than 250k.

The difference is Hoover giving to the banks

versus

FDR investing in infrastruture.

But you knew that, right?>

[lagumbo]

People don't just listen to republicans lies. They will put anything out their and have they media spin it for weeks to get you to beleive them. This is what they do. They wouldn't know the truth if it hit them in the head. But they count on you to beleive the spin. Haven't we had enough of that. Most of their s and the media spin can be checked out on the web. Do your own research, please.

[mnyegele]

I agree with Weribe. The GOP is acting like a bunch of spoiled brats. But let's not sit at the sidelines. We need to contact Obama through whitehouse.gov and express our support for his American Recovery and Reinvestment Act. Then we need to write to our Congressional representatives.
The biggest obstacle is the Senate. We need to demand procedural reforms. Eliminate the 60 vote rule to get measures to the floor to a vote. Eliminate the filibuster. We don't have time to waste on obstructionist games. If the GOP in the Senate begins the same old same old, then Team obama needs to resort to the nuclear option. We must get Obama's measures passed ASAP.

[jackwaddington]

What the republican­s/conserva­tive fail to realize is that capitalism has finally imploded. The economy is never going to recover. We have to find a new way to behave in a non capitalist system. It will be scary but (if we are to survive as a species) we'll find a way; and we'll be so surprised we never thought of it before (actually some of us--very few--did).

[EasyCheese]

What, are you posting this everywhere? So what is this grand system I see you talking about?

[jackwaddington]

I've written a book about all this don't know that i can mention it's title on this blog. From another tack, the United States has done it's damnedest to destroy any political system that was not capitalist. Start with Iran 1953 then Chile with the CIA assassination of Allende. All this is now coming back to haunt you/us.

[Car84]

Here's a factoid or morsel that the author seems to miss: Republicans don't have the votes to obstruct. Okay, they don't have 60 Dems in the Senate. But they do have the likes of RINO Sens Snowe and Collins, and probably slippery McCain.

[liberalOrgonian]

It is time to make insurance cover birth control.
Insurance covers Viagra. If men had babies birth control would already be covered by insurance.
Another example, if women had the majority voting block, things would be different.

[Car84]

Viagra isn't birth control.

In any event, if Viagra was not already covered by insurance, you'd have to admit that including it in this bonanza bill WOULD be a form of stimulus.

[Wake-up]

Ok... that's funny...

[MJinCanada]

Exactly. Viagra isn't birth control. It's about men controlling their bodies for their tired limp egos and that is apparently okay.

Birth control is about women controlling their bodies for their health and economic welfare and for some peculiar right-wing male reasoning, that's wrong.

[websmith]

The problem with the economy is that this year's entire GDP is already owed to a private bank and foreign countries. You don't need to listen to a lot of agenda serving, statistic quoting, rationalizations to figure it out.

What you need to do is listen closely to Pelosi when she says that the economic problem is because the population is too large while she, Feinstein, Reid, Menendez, and others are working to give millions of illegal aliens amnesty and drastically increase the number of green cards and H-1B visas as California has gone broke trying to take care of them. That may give you pause to consider whether a little obstruction of government borrowing and spending was what we needed as this legislation gave trillions of borrowed money to the banks that accomplished nothing and the previous legislation gave trillions of dollars to fight a war against a country that did nothing to us. Perhaps what Pelosi meant was that there are too many Americans in this country to serve her agenda.

You may want to slow things down a bit and consider that that $300 borrowed check you're going to get is buying your freedom.

http://ewebsmith.com/Finance/economicproblem.html

[Brion]

It strikes me that as most of the stimulus money will not be spent for several years, urgency to authorize it might be somewhat disingenuous?

[youngat80]

What is the source of your information? What is your definition of several?

[Car84]

The point is that the spending is not nearly as immediate as a tax cut would be. The impact of a tax cut for individuals can occur as soon as the next pay check. Spending for infrastructure takes time. It may take several years (defined perhaps as never in some cases) if environmentalists block projects.

[EasyCheese]

I thought this was pretty common knowledge.

[MJinCanada]

Are you referring to the fake CBO report? As other people here have mentioned, there are loads of public projects in the planning stages, but no money and no credit available from the financial institutions that have already been bailed out. Yes, it takes a few weeks to do the paperwork and get the construction bids -- but then you have workers earning good money to make sure bridges don't fall down and levees and dams don't break.

[Weribe]

When President Obama spoke of “putting away childish things”, I believe that he was speaking to those who have enabled the looting and economic devastation of our country the past 8 years. I saw that statement as an indictment of the behavior of the relatively few whose actions have been unethical and immoral, and sometimes illegal. They are the ones in both the government and corporate worlds who have done everything possible to enhance the wealth of the few at the expense of the many.

And, they are the ones today who are still acting like spoiled children rather than participating in solutions. They are the officials at Citi who had still planned on taking possession of a $45M private plane (that is, until someone in the Obama administration had a discussion with them). They are the obstructionist Republicans who choose to be against whatever, rather than participate in intelligent discussions about solutions to our immense problems. They are the Madoffs of the world, who have looted and stolen from so many. They are the ones who must put aside childish actions and either grow up or get out of the way. We cannot afford or tolerate them any longer.

[ente]

Give some thought to this possibility, that it may not matter all that much what the Republicans say.Are they liars , self serving , hypocritical, yes but you already knew that.Of course most of you who are going on about this apparently believe Obama is the tooth fairy!As for the article you know your not in serious territory when the author talks about turning on the spigots of job creation.Yeah jobs miraculously materialize once you turn on these spigots!Apparently what creates jobs is the state throwing around vast sums of money and calling it stimulus.Also let's be honest does , anyone really take those bogus studies that purport to show that spending X number of dollars will create Y number of jobs in the future seriously?You know that's a con job,right?

[oldguru]

Hello? If the state gets some money to spend on the jobs that are now on hold because of lack of money, I will bid the job. If I get the job, I will hire a crew ( who are now drawing unemployment) to do the job. I will pay them, they will buy stuff and pay taxes. If I don't get the job, someone else will.
This is not rocket science.

[EasyCheese]

You forgot to mention that these workers of yours will probably be getting little pay. Therefore under Obamas tax plan, they WILL NOT PAY TAXES.