by Christina Lovato, University of New Mexico-Talk Radio News Service
Congressman Bob Latta (R-Ohio) discusses the economic stimulus package and how its become a wish list for many. (19:17)
“The President asks for action swift and bold. That is what we are doing,” said Speaker of the House Nancy Pelosi (D-Calif.) during her weekly news conference.
The Speaker drew special attention to the economic stimulus package, indicating that the first crucial step is to create jobs immediately which will ultimately promote economic stability. Pelosi did not address any specific or special concerns regarding what President Obama will or will not do regarding tax cuts.
“The American people are in a desperate situation, they expect and demand action to relieve the economic crisis that they’re experiencing in their own families,” Pelosi noted.
Speaker announced that there will be a meeting tomorrow led by President Obama. The meeting will take place at the White House with Congressional leaders to discuss the recovery package in greater detail.
During a pen and pad session, House Majority Leader Steny Hoyer (D-Md.) stated that the meeting will also be attended by House Minority Leader John Boehner (R-Ohio), Senate Minority Leader Mitch McConnel (R-Ky.), and Senate Minority Whip John Kyl (R-Ariz).
Ohio Governor Ted Strickland offered his support for the upcoming economic recovery plan and made the case for fiscal relief in individual states.
“I think Ohio is similar to many other states…my first two year budget was the slowest growth budget that Ohio had in 42 years. We were very frugal with the people’s resources,” said Strickland during a teleconference hosted by Campaign for Jobs and Economic Recovery Now.
“In spite of that fact, over the last few months I have had to reduce over 1.9 billion dollars in our current budget.”
The Governor stated that without immediate federal assistance, Ohio would be faced with a 7.3 billion dollar deficit in 2011.
“In order for us to have a balanced budget in 2010 and 2011 without federal assistance I would have to cut state government spending by 25%,” a notion that Strickland described as impossible.
Governors Dave Patterson (D-N.Y.), Jim Doyle (D-Wis.), Jon Corzine (D-N.J.), Deval Patrick (D-Mass.), Jennifer Granholm (D-Mich.), Jim Doyle (D-Wis.), and others have joined Strickland in calling for state assistance.
“We have got to have this help. It must come from the Federal Government because states do need to have a balanced budget, it will require additional borrowing…and the deficit will increase. There is no doubt about that,” commented Strickland.
“But I believe the President Elect is correct in saying the greatest threat is in doing nothing and allowing this recession to become ever deeper,” he concluded.
Benefits provided by the Consolidated Omnibus Reconciliation Act (COBRA) are supposed to allow laid off workers retain their previous health insurance for an additional year and a half, however, COBRA’s high premium costs have proved to be too expensive for many Americans. This outcome, in the words of Families USA Executive Director Ron Pollack, adds up to a ‘tragic rouse’.
“COBRA health coverage is great in theory, but lousy in reality,” said Pollack during a
“For the vast majority of workers who are laid off, they and their families are likely to join the ranks of the uninsured.”
Pollack stated that paying COBRA costs on average consumes nearly 84% of a worker’s unemployment insurance. According to Families USA, the national average for monthly unemployment benefits average $1278 dollars, whereas the average cost of COBRA premiums is $1069.
Pollack went on to explain that in 41 states, including the District of Columbia, family coverage premiums consume 3/4 of unemployment benefits and that in 9 of these states Cobra premiums either match or exceed the benefits.
“In Arizona, the average monthly insurance benefit is 937 dollars, compared to average Family COBRA premiums in that state of 1084 dollars. In other words, the Cobra premium would absorbs 116% of unemployment insurance income,” said Pollack.
“In Alaska it consumes 132%…in Louisiana 115%, Mississippi similarly 155%, in Alabama 114%, in Delaware 105%, in West Virginia 104%, in Florida 102%, and in South Carolina it’s 100%.”
To counteract this situation, Pollack recommends providing subsidies for Cobra’s premiums as well as temporary health safety net coverage through medicaid, steps that Pollack believes will be included in the upcoming economic recovery package.
House Speaker Nancy Pelosi (D-Calif.) muses on the advantageous situation the Democrats are in, and pledges that there will be no recess until legislation for an economic recovery package is prepared (1:04)
House Speaker Nancy Pelosi (D-Calif.) discussed the economic recovery package and described the advantageous situation Congressional Democrats have found themselves in.
“We have to think differently about this. We’ve been so used to an uphill fight, but now we have arrived. We have a strong 80 vote majority in the House, we have a Democratic President in the White House,” said Pelosi during her first weekly press conference of the 111th Congress.
“His economic recovery package, almost sight unseen, is supported by 79% of the American people, so we have the opportunity to move…not hastily, but quickly. ”
The Speaker promised that the details will be dealt with by the appropriate committees in the following weeks and promised that a bill will be drafted before Congress goes into recess.
Pelosi blamed the Bush tax cuts for upper class Americans as the largest contributor to the deficit and stated,
“Put me down, as clearly as you possibly can, as one who wants to have those tax cuts for the wealthiest in America repealed.”
The Speaker also touched on the recent situation in Gaza.
“We will have on the floor, hopefully tomorrow, a resolution about what is happening on the Middle East middle east. I spoke with Prime Minister Olmert Saturday… and expressed to him concerns that we have over collateral damage that is happening in the Gaza Strip.
Pelosi went on to say that she still defends Israel’s, and the right of any country, to defend itself.
The Campaign for America’s Future hosted a conference call to discuss an economic recovery package to help America get out of its recession.
“It will take at least two years of expanded spending to get this economy going,” said Robert Borosage, Co-Director for the Campaign for America’s Future. “We can’t go back to the high-consumption, stagnant income, high-debt model of the past.”
The plan called for $900 billion to go towards to expanding public investment. Borosage also called for better health care policies, an increase in regulation of the financial sector, and more investments in a greener infrastructure.
Maya Macguineas, president of the Committee for a Responsible Federal Budget, spoke on a conference call regarding the U.S. Budget Watch stimulus policy guide that was released today. Before the financial crisis that began earlier this month, both presidential candidates had budget plans that would increase the deficit by over $200 billion a year. U.S. Budget Watch believes that Fiscal Year 2009 would see a $1 trillion budget deficit if either plan of the presidential candidates were enacted. Macguineas said that with the revised proposals, Senator John McCain’s stimulus plan would cost over $52 billion and Senator Barack Obama’s would cost $188 billion. However, Macguineas stated that “we will have a stimulus package to prop up the economy” and that it isn’t necessarily a bad thing. The necessary steps must be taken to stabilize the economy but to keep a stimulus package as “free of political pork as possible.” Without a clean and temporary plan, she said, America may find itself in the middle of a “government debt bubble.”
Dr. Mitchell claims that fiscal policy cannot restore the economy and goes on to argue against Keynesian theory in general.
