Democrats' "Recovery Summer" Gets Hotter
“[The stimulus bill] is a crucial first step in a concerted effort that we have to jumpstart the economy. It will create jobs immediately, and it will also lay the foundation for economic stability as we go forward.”
–Speaker Nancy Pelosi (CQ, 1/22/2009)
BACKGROUND
On August 4, 2010, the New York Times published an op-ed by Treasury Secretary Tim Geithner titled, “Welcome to the Recovery.” For most Americans living outside the Democrats’ utopian fantasy, this “recovery” is anything but welcomed. In the wake of further economic downturn and nearly 10 percent unemployment, Democrats continue to ignore the economic hardships of America’s families and business owners, choosing instead to stifle economic growth by increasing taxes and regulations, while creating a permanent class of dependents.
Democrats’ definition of successesful recovery
Lack of Job Creation: On August 6, 2010, the Bureau of Labor Statistics reported that the economy lost 131,000 jobs in the month of July, and the unemployment rate was unchanged at 9.5 percent.
More Jobs Lost: On August 12, 2010, the AP reported, “The economy is looking bleaker as new applications for jobless benefits rose last week to the highest level in almost six months…First-time claims for jobless benefits edged up by 2,000 to a seasonally adjusted 484,000, the Labor Department said Thursday. That's the highest total since February. Analysts had expected claims to fall. Initial claims have now risen in three of the last four weeks and are close to their high point for the year of 490,000, reached in late January. The four-week average, which smooths volatility, soared by 14,250 to 473,500, also the highest since late February.”
Shrinking Economy: On August 10, 2010, Federal Reserve officials met and expressed concern about the lack of growth in the economy. According to an August 11, 2010 Wall Street Journal article, “The Fed noted that high unemployment, modest income growth, lower housing wealth and tight credit were holding back household spending. Meanwhile, lending by banks ‘has continued to contract,’ the Fed said, while construction remains weak and employers remain reluctant to increase payrolls.”
Record Foreclosures: On August 12, 2010, the AP reported, “The number of U.S. homes lost to foreclosure surged in July…Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, foreclosure listing firm RealtyTrac Inc. said Thursday.”
Creating Dependents, Not Jobs: On August 11, 2010, the Atlanta Journal-Constitution reported, “Thirty thousand people turned out in East Point on Wednesday seeking applications for government-subsidized housing, and their confusion and frustration, combined with the summer heat, led to a chaotic mob scene that left 62 people injured.” The federal assistance program is a Section 8 voucher program that assists tenants who cannot afford to pay rent at the fair market value. According to a local official, the demand for low cost housing has increased due to job loss.
More Deficit Spending: On August 11, 2010, the Obama administration announced that it would spend an additional $3 billion to help unemployment homeowners through two foreclosure-prevention programs. Also, on August 11, the Wall Street Journal reported, “The U.S. government spent itself deeper into the red last month, paying nearly $20 billion in interest on debt and an additional $9.8 billion to help unemployed Americans. Federal spending eclipsed revenue for the 22nd straight time, the Treasury Department said Wednesday. The $165.04 billion deficit, while a bit smaller than the $169.5 billion shortfall expected by economists polled by Dow Jones Newswires, was the second highest for the month on record. The highest was $180.68 billion in July 2009.”
For more information or questions please contact Ja’Ron Smith at 6-0979.
For additional information, contact:
The House Republican Conference Policy Office
