Hoyer: PAYGO Is Key To Economic Recovery

By Benny Martinez - University of New Mexico/Talk Radio News Service

House Majority Leader Steny Hoyer (D-Md.) said Monday that following the rules of PAYGO is crucial to keeping the U.S. from falling even further into debt.

In a speech given at the Brookings Institute in Washington, D.C., Hoyer discussed various fiscal responsibilities of the Obama administration, and said programs like PAYGO "are essential, but they are not enough."

The Majority Leader applauded President Barack Obama for creating a bipartisan fiscal commission and appointing former White House Chief of Staff Erksine Bowles and ex-Senator Alan Simpson (R-Wyo.) to chair it.

"Given the seriousness of our situation, the commission must come to a consensus, and Congress must act on its proposals at the end of the year," Hoyer said.

Hoyer attributed the success of PAYGO to its role in creating a projected economic surplus during the Clinton administration. Hoyer also recognized that the decision by the Bush administration to abandon PAYGO "paved the way for record borrowing and threw us back in the red."

Hoyer said that he remains confident that the character of the U.S. will serve as the backbone of economic recovery, but reminded those in attendance that it will not happen overnight.

"It will take bipartisan trust, presidential leadership and public spirit," Hoyer said. "If we are unable to raise our heads even for a moment above the daily partisan fight, if the collapse comes, we will deserve it."

Pelosi: Dems, GOP Not Seeing Eye To Eye After Summit

By Benny Martinez - University of New Mexico/Talk Radio News Service

Speaker of the House Nancy Pelosi (D-Calif.) emphasized Friday that there are still many issues that Democrat and GOP members do not see eye to eye on.

Starting from scratch is an idea that was suggested numerous times by GOP leaders at the summit, but Pelosi reiterated “you just can’t do it.”

“There are certain things that, unless you do them together, it doesn’t have the impact, it doesn’t have the synergy, it doesn’t hold the insurance companies accountable,” the Speaker said during a press conference.

According to Pelosi, another issue that is not being met with support from both sides of the aisle is the denial of health coverage to patients with pre-existing medical conditions. Pelosi said this is something that “Democrats stand fully behind and Republicans don’t have it in their bill.”

Pelosi commented on the possible use of reconciliation in the Senate to pass legislation.

“What you call a complicated process is called a simple majority,” Pelosi said. “That’s what we’re asking the Senate to act upon.”

Pelosi said that there is some bipartisan support in Congress for health care reform, saying that Wednesday’s vote to remove the anti-trust exemption for insurance companies shows this.

Clinton: For Every Dollar We Spend, We Must Show Results

By Benny Martinez - University of New Mexico/Talk Radio News Service

Secretary of State Hillary Clinton told the House Foreign Affairs Committee Wednesday that the State Department’s FY2011 budget request has increased to $52.8 billion, a $4.9 billion increase over 2010.

$3.6 billion will be directly allocated to supporting efforts for what Clinton referred to as “frontline states”; Afghanistan, Pakistan and Iraq.

“These figures are more than numbers on a page,” Clinton said. “They tell the story of challenges we face and the resources we need to overcome them.”

Clinton said that the investments in these nations will focus on security, developing democratic institutions and ensuring that the right personnel are adequately trained in order to take full advantage of these investments.

“For every dollar we spend, we have to show results,” she said.

In her opening statement, Clinton said there will be an increase in civilian presence in Afghanistan, and continued efforts to develop institutions and increase economic opportunities.

Regarding Pakistan, Mrs. Clinton said investments will concentrate on combating and diluting extremism. Iraqi investments will be allocated toward reducing our military presence and increasing our civilian presence.

Clinton also emphasized that despite a $2.6 billion dollar investment in Iraq, the Department of Defense’s budget for the country will decrease by nearly $16 billion, “a powerful illustration of the return on civilian investment.”

The Mrs. Clinton expressed optimism over the State Department’s budget request, saying it “will help build the foundations of peace, stability and prosperity in these ‘frontline states.'”

Bernanke: Job Market Remains Quite Weak

By Benny Martinez - University of New Mexico/Talk Radio News Service

Chairman of the Federal Reserve Ben Bernanke told the House Financial Services Committee Wednesday that he anticipates a moderate pace to economic recovery, but still has doubts regarding the weak state of the job market.

“Some recent indicators suggest that the deterioration in the labor market is abating,” Bernanke said. “Job losses have slowed and the number of full-time jobs rose modesetly...and claims for unemployment insurance have continued to trend lower.”

Record-low interest rates remain a necessity to boost the economy on a national level, he said. But Bernanke explained that his biggest concern about the economy is the job market. He estimated that the unemployment rate will plateau between six and seven percent by 2012, about one percent higher than an ideal five percent, which is necessary to reacquire a sustainable economy.

“[The jobs market] remains quite weak, with the unemployment rate near 10 percent and job openings scarce,” Bernanke said.

To add to his short-term unemployment concerns, Bernanke said the nation's long-term unemployment rate is an issue.

“Of particular concern...is the increasing incidence of long-term unemployment,” Bernanke said. “More than 40 percent of the unemployed have been out of work for six months or more, nearly double the share of a year ago.”

Jobs Bill Sees Bipartisan Support, Say Senate Democrats

By Benny Martinez - University of New Mexico/Talk Radio News Service

Legislation aimed at improving the sluggish employment situation in the U.S. has been met with bipartisan support and should not experience difficulty getting through the Senate, said Senator Sheldon Whitehouse (D-R.I.).

Joined by Senators Benjamin Cardin (D-Md.) and Jeff Merkley (D-Ore.) at a press briefing Monday, the trio emphasized that the provisions in the jobs bill have seen strong support from both sides of the aisle.

“It’s a good start,” Senator Cardin said. “Leaders particularly picked those provisions that enjoy strong bipartisan support.”

Employer tax credits for new hires, the extension of the Highway Trust Fund, higher tax refunds for small businesses and the Build America Bonds program are key provisions of the bill, according to the three Senate Democrats. They added that the legislation seeks to maintain and create 1.3 million jobs for Americans.

“Each of these provisions has established bipartisan support and at this point, there is no reason beyond politics to obstruct any of these measures,” Whitehouse said.

The three agreed that these provisions serve as a first step in the right direction, but at the same time acknowledged that more needs to be done.

“[This] is a group of four ideas with broad bipartisan support, and then there will be another package a few weeks from now, and then another package,” Merkley said. “This way, we can end the paralysis that has been so deadly in the dialogue in this city.”