Djou blames spending, stimulus for lethargic economy in GOP address
House Republicans this weekend continued to blame Democrats for a
lethargic economy, charging that last year’s stimulus bill has hobbled
the country with debt while failing to prevent the job losses that
supporters promised.
“For every problem facing our nation, the answer
from Washington has been to spend and spend, and — if that doesn’t work — spend some more,” Rep. Charles Djou (R-Hawaii), said Saturday,
delivering the Republicans’ weekly radio address.
from Washington has been to spend and spend, and — if that doesn’t work — spend some more,” Rep. Charles Djou (R-Hawaii), said Saturday,
delivering the Republicans’ weekly radio address.
{mosads}”The current administration in Washington told us
that borrowing and spending billions would create jobs ‘immediately’
and keep unemployment from exceeding 8 percent. They were wrong.
Instead, we’ve lost millions of jobs and unemployment remains near 10
percent.”
that borrowing and spending billions would create jobs ‘immediately’
and keep unemployment from exceeding 8 percent. They were wrong.
Instead, we’ve lost millions of jobs and unemployment remains near 10
percent.”
The message is an indication that, despite repeated
GOP criticisms of healthcare reform, finance reform, climate change
proposals and a host of other issues championed by Democrats this
Congress, Republicans are focusing most intently on the struggling
economy — a theme they intend to drive home straight into November’s
midterm elections.
GOP criticisms of healthcare reform, finance reform, climate change
proposals and a host of other issues championed by Democrats this
Congress, Republicans are focusing most intently on the struggling
economy — a theme they intend to drive home straight into November’s
midterm elections.
Fueling their argument, the Congressional Budget
Office (CBO) on Thursday projected the 2010 budget deficit to top $1.3
trillion this year. That, combined with troubling signs in the housing
market, CBO warned, forecasts a long, slow road to full recovery.
Office (CBO) on Thursday projected the 2010 budget deficit to top $1.3
trillion this year. That, combined with troubling signs in the housing
market, CBO warned, forecasts a long, slow road to full recovery.
“The considerable number of vacant houses and
underused factories and offices will be a continuing drag on
residential construction and business investment,” said CBO Director
Doug Elmendorf, “and slow income growth as well as lost wealth will
restrain consumer spending.”
underused factories and offices will be a continuing drag on
residential construction and business investment,” said CBO Director
Doug Elmendorf, “and slow income growth as well as lost wealth will
restrain consumer spending.”
Democrats have defended their track record, arguing the recession was a product of failed Republican policies they’ve
been fighting to overturn. House Majority Leader Steny Hoyer
(D-Md.) this week blamed GOP leaders for obstructing Democratic efforts
to kick-start hiring, most recently when Senate Republicans blocked a
small-business lending bill that had already cleared the House.
been fighting to overturn. House Majority Leader Steny Hoyer
(D-Md.) this week blamed GOP leaders for obstructing Democratic efforts
to kick-start hiring, most recently when Senate Republicans blocked a
small-business lending bill that had already cleared the House.
“As Democrats fight for fiscal discipline and a
strong economy,” Hoyer said, “Republicans are advocating for a return
to the exact same agenda that created enormous deficits and drove our
economy into the deepest recession in a generation.”
strong economy,” Hoyer said, “Republicans are advocating for a return
to the exact same agenda that created enormous deficits and drove our
economy into the deepest recession in a generation.”
Djou on Saturday floated an alternative proposal,
urging Democratic leaders to consider a GOP bill that would immediately
eliminate $1.3 trillion in federal spending. Sponsored by Reps. Paul
Ryan (R-Wis.) and Jeb Hensarling (R-Texas), the bill would cut unspent
stimulus funds while freezing government salaries and federal hiring.
urging Democratic leaders to consider a GOP bill that would immediately
eliminate $1.3 trillion in federal spending. Sponsored by Reps. Paul
Ryan (R-Wis.) and Jeb Hensarling (R-Texas), the bill would cut unspent
stimulus funds while freezing government salaries and federal hiring.
That plan, Djou said, would “demonstrate to
taxpayers at home and allies abroad that America is serious about
getting its fiscal house in order.”
taxpayers at home and allies abroad that America is serious about
getting its fiscal house in order.”
Djou also
highlighted the coming battle over the Bush tax cuts, which are set to
expire at the end of the year. Backed by President Obama, Democrats are
pushing a plan to extend those cuts for all but the wealthiest families
— those earning more than $250,000 a year. Republicans, meanwhile, want
the cuts to continue for everyone.
highlighted the coming battle over the Bush tax cuts, which are set to
expire at the end of the year. Backed by President Obama, Democrats are
pushing a plan to extend those cuts for all but the wealthiest families
— those earning more than $250,000 a year. Republicans, meanwhile, want
the cuts to continue for everyone.
“We will not have real economic growth if we keep raising taxes on small businesses,” Djou said.
The
Joint Committee on Taxation recently estimated about 3 percent of
the nation’s businesses — big or small — would be affected by the hike
if the high-income cut was allowed to expire.
Joint Committee on Taxation recently estimated about 3 percent of
the nation’s businesses — big or small — would be affected by the hike
if the high-income cut was allowed to expire.
Conjuring a theme that’s familiar to anyone who followed the 2008 elections, Republicans are calling for a new direction.
“If we keep doing the same things, we’re going to get the same dismal results,” Djou said. “It’s time to change direction.”
On the issue of deficit spending, though,
Republicans are battling not only Democrats, but also their own
legislative history. The $700 billion Wall Street bailout, for
instance, was championed by the Bush administration and passed with
the support of GOP leaders in both chambers of Congress.
Republicans are battling not only Democrats, but also their own
legislative history. The $700 billion Wall Street bailout, for
instance, was championed by the Bush administration and passed with
the support of GOP leaders in both chambers of Congress.
On healthcare reform, the Republicans have some
skeletons as well. Medicare’s prescription drug benefit, pushed by a
GOP-led Congress in 2003, is projected to cost $373 billion through
2013 — none of it offset by spending cuts or revenue hikes elsewhere in
the budget.
skeletons as well. Medicare’s prescription drug benefit, pushed by a
GOP-led Congress in 2003, is projected to cost $373 billion through
2013 — none of it offset by spending cuts or revenue hikes elsewhere in
the budget.
David Walker, the former U.S. Comptroller General,
said the prescription drug bill was “probably the most fiscally
irresponsible piece of legislation since the 1960s.”
said the prescription drug bill was “probably the most fiscally
irresponsible piece of legislation since the 1960s.”
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