Rep. Bob Latta (R-Ohio) says that since the stimulus package was passed the U.S. has lost 3 million jobs. (0:09)

 

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By Sam Wechsler – Talk Radio News Service

The American Recovery and Reinvestment Act of 2009 has been successful in providing and saving jobs in the transportation sector, Senate Majority Whip Dick Durbin (D-Ill.) said Wednesday. He also pointed out that we are only four months into a two year recovery plan, so most results aren’t yet perceptible.

Durbin says the government has provided checks for $60.4 billion and has allocated $234 billion of the total $787 billion stimulus package. Ed Wytkind, president of the Transportation Trades Department of the AFL-CIO, said that an historic $48 billion of the stimulus will be spent on transportation.

“I wish the recession would end tomorrow but we have to be patient…for those who say ‘accelerate payments,’ I have the same basic feeling myself. But I just know from human and government experience that haste does make waste. Let’s make sure these funds are well invested and well spent,” said Durbin.

Wytkind discussed the multiplier effect that occurs when the transportation industry spends money that simultaneously benefits other sectors of the economy, such as the steel and lumber industries.

Wytkind criticized former President George W. Bush’s administration for neglecting to use the transportation industry as a mode for job creation. “The fact is that Americans are hurting, our members are hurting, because of eight years of do-nothing economic policies. [President Obama and the new Congress] are wedded to turning around an economy that is reeling,” said Wytkind.

“John really needs to get home and listen to people in his district,” says Ohio Democratic Party Chairman Chris Redfern. Redfern says that locals are pleased that stimulus dollars are being invested in Ohio and that jobs will be created and retained. (0:28)

 

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Democratic National Committee National Press Secretary Hari Sevugan says Rep. John Boehner (R-OH) lied about the lack of jobs that are being created in his home state by the stimulus package “to score some cheap political points.”
(0:42)

 

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House Minority Leader John Boehner (R-Ohio) accuses Vice President Joe Biden and President Barack Obama of lying to Americans about why the stimulus package hasn’t reversed the nation’s spiraling unemployment rate. Boehner says that we should focus on tax relief to help families and small businesses to keep what they earned in order to reduce the impact of the financial crisis. (1:07)

 

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By Celia Canon – Talk Radio News Service

During an address on Latin America and the economic crisis at the Brookings Institute yesterday, Chilean President Michelle Bachelet discussed her country’s comparatively strong economy, explaining that the 1980’s economic crisis in Latin America taught the region to take measures to insulate itself from global financial crises.

“This time in Latin America, fundamental [institutions] were better and policy responses were swift,” Bachelet said. “Central banks move quickly to offset the lack of liquidity in dollars using either sovereign funds or international reserves accumulated during the commodity boom earlier this decade.”

Chile’s current financial stability is largely due to the fact that it has moved away from American policies in recent years, eschewing the Washington Consensus, a set of American recommendations to Latin American states on how to rebuild their economies in 1989. The recommendations focused on maintaining a free market economy with little to no government involvement.

“This approach of no regulation is an approach that we have come to call in Chile the ‘Paradigm of Passivity,’ ” Bachelet said. “The crisis has taught us what we should have known all along: that the state is not and cannot be passive when it comes to economic activity or financial regulation.”

The Chilean president added: “When I talk about not being passive, I’m not talking necessarily about [an] interventionist state. I’m not calling for a government involved in all sectors of the economy or prone to over-regulating markets.”

Bachelet also compared Western states and Chile with regard to the policies implemented to reduce the impact of the global financial crisis.

“Unlike the U.S. and much of Europe, in 2009, tax payers have not have to pay the burden of bailing out” national companies, said Bachelet.

Additionally, the Chilean government has produced its own stimulus package, which aims to maintain the population’s purchasing power, rather than bail out industries.

“This [stimulus] package was designed to inject resources directly into the pockets of the most deprived families to promote employment by increasing public investment, and by granting subsidies to youth employment and to encourage private investment with temporary tax rebates,” Bachelet said.

Bachelet, a moderate socialist, is currently in Washington, D.C. to meet with President Barack Obama in hopes of increasing bilateral ties and improving trade partnerships. During her speech, she was quick to empathize with the Americans, echoing Obama’s frequent calls for an economic restructuring to lead to “lasting prosperity.”

States should not “go back to the same situation that we were in before, because that would mean we haven’t learned the lessons of the crisis,” Bachelet said.

By Courtney Ann Jackson-Talk Radio News Service

Business and political leaders are joining forces to ensure the creation of more green jobs in the United States. Vice President Joe Biden headlined Wednesday’s Green Jobs Summit hosted by the Senate Democratic Steering and Outreach Committee. Summit participants, including Senate Majority Leader Harry Reid (D-N.V.) and Sen. Debbie Stabenow (D-Mich.), are investing in clean energy and committing the U.S. to generating a stronger, environmentally friendly economy. 

“We have to act fast and we have to think of the future we want to build,” said Biden.
“The best part of building a clean energy economy [is that it] not only puts us on the path to a greener and more sustainable future but it necessitates the jobs that are going to get us there.”

Biden noted that the U.S. has to be competitive in the creation of a clean energy economy and become a leader in the twenty-first century. According to Biden, that means energy efficiency can not become an issue that gets put aside during the next four years. 

The Vice President also said we have a moral challenge to make certain that the younger generations inherit a safe and clean planet. 

“I am more optimistic about the place we are today. I’m more idealistic about what we can do today than I was when I was a 29 year old kid elected to the United States Senate in 1972. The slope is really steep but the opportunity is gigantic.”

The American Recovery and Reinvestment Act, the $787 billion dollar plan to stimulate the U.S. economy, was signed into law by President Obama in February 2009 and includes a three year extension of the renewable energy production tax credit which will be used to establish future investments in wind, geothermal, and biomass energy.

Mark Gertler, a Professor of Economics at New York University, discusses the efforts the Federal Reserve will possibly have to make with the stimulus package. (0:30)

 

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Jared Bernstein, Chief Economic Advisor to the Vice President, touts the recent decrease in job loss as a sign of the Recovery Act’s success (0:27)

 

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By Michael Ruhl, University of New Mexico – Talk Radio News Service

President Barack Obama
Photo by Michael Ruhl

Today President Barack Obama announced a new effort to stimulate tomorrow’s economy by reviving higher education through expanding Pell Grants and removing barriers to success. The public face for his new initiative is to be Dr. Jill Biden, wife of Vice-President Joe Biden and Community College Professor.

Obama’s plan, detailed at opportunity.gov, would help the unemployed go back to school to build new skill sets, with the goal of helping them gain future employment through specialized technical training.

“The idea here is to fundamentally change our approach to unemployment in this country, so that it’s no longer just a time to look for a new job, but is also a time to prepare yourself for a better job,” Obama said. “Our unemployment system should be not just a safety net, but a stepping stone to a new future.”

Among the barriers to success that the President wants to break down are state programs in which a worker might lose temporary financial support if they were to enroll in an education program. Obama said that in some places a worker may be unemployed, but may not qualify for federal assistance to get an education because of the salary they had a year ago but no longer make. The President said that he is committed to working with states to change these laws.

The President said that knowledge is the most valuable skill that one can sell. He encouraged all Americans to aim for getting at least 1 year of higher education, whether it is a community college, a four year school, vocational training or an apprenticeship.

“By 2020, America will once again have the highest proportion of college graduates in the world,” Obama said optimistically.

This announcement came on the same day as the release of April’s unemployment statistics, which saw the loss of more than half a million jobs. The unemployment rate for April was 8.9 percent, up from 8.5 percent in March and 8.1 percent in February. April’s numbers have already surpassed both the White House’s and the Federal Reserve’s projections for all of 2009, which were 8.1 percent and 8.8 percent, respectively.

Acknowledging that unemployment is as its highest rate in 25 years, the President urged patience, reminding us that the economic problems didn’t happen overnight, and couldn’t be fixed immediately.

“We’re still in the midst of a recession that was years in the making and will be months or even years in the unmaking,” Obama said. He continued, “We should expect further job losses in the months to come.”

Obama said that the Economic Stimulus Package is yielding real results, manifest in higher consumer spending and home sales, and an increase in construction spending. He praised the Recovery Act, and said, “Because of this plan, cops are still on the beat and teachers are still in the classroom; shovels are breaking ground and cranes dot the sky; and new life has been breathed into private companies.”

Fixing the economy and reforming education are two goals Obama has set for his administration. He said that in the weeks to come he would start working towards more education initiatives.