Western Caucus GOP’ers Predict “Cap And Tax” Disaster

By Mariko Lamb, Talk Radio News Service

“Cap and Trade is a jobs killer,” Sen. John Barrasso (R-Wyo.) said in a bicameral Western Caucus hearing on the impact of Cap and Trade on jobs Thursday. He urged the Obama administration to “get their priorities straight,” and start creating jobs.

Bill Kovacs, Senior Vice President of the Environment, Technology, and Regulatory Division at the U.S. Chamber of Commerce, said the Waxman-Markey bill will promote regulatory chaos, foster lawsuits, do great harm to the economy, and ultimately not reduce carbon emissions in the atmosphere.

President and CEO of the Black Chamber of Commerce, Harry Alford pointed to a recent study by Charles RIvers Associates which concluded the Waxman-Markey bill will lead to higher energy and transportation costs fir businesses and consumers, a fall in household disposable income and consumption, decline in purchasing power, a fall in wages and returns on investments, net job loss and a decrease in the U.S.’ ability to compete internationally.

"There are two jobs destroyed for every green job created,” Former GOP Rep. Dick Armey (R-TX) argued. “Global warming might be, in fact, one of the most hyped fictions in America today.”

Armey added that the “most treasured umbrella objective in public policy” right now is to “create the illusion of a crisis and then... demonstrate the need for their policies of government growth and income redistribution as a resolution of the crisis." Armey went on to describe global warming as a “high-profile [fiction] designed to serve the political purposes of the majority party.”

House Majority Leader: Republicans Are Consistent With Being Consistently Wrong

By Justin Duckham-Talk Radio News Service

House Majority Leader Steny Hoyer (D-Md.) offered a biting rebuttal to complaints levied by congressional Republicans that the Democrats have botched the recovery of the U.S. economy.

"Republicans are consistent with being consistently wrong," Hoyer quipped during a pen and pad session with reporters Tuesday.

The Majority Leader pointed to the economic program pursued by the Democratically controlled Congress in 1993, noting that although Republicans issued warnings of job loss and and out of control deficits, the economy faired quite well.

"Exactly the 180 degree opposite happened. Deficits were eliminated [and] we created 20.8 million jobs," Hoyer said.

Hoyer contrasted the 1993 economic program with the one proposed by the GOP controlled Congress in 2001.

"[Congressional Republicans] indicated that if we adopted their economic program...our economy would explode: creation of jobs, elimination of the deficit, and that our economy would be in very good shape,” Hoyer said. “What happened? Exactly the opposite."

"Our policy worked, [the Republicans'] policy failed," Hoyer added. "The American public decided they needed a change and they asked us to get the economy moving again."

The Majority Leader also touched upon Rep. Charles Rangel's (D-N.Y.) proposal to apply a surtax to individuals making over $280,000 in order to help cover the cost of health care reform. If adopted, Hoyer noted that he does not expect the proposal to harm small businesses.

"I don't know many small businessmen or women who are making $280,000, so I'm not sure that very many small businesses are going to be affected by this."

Post-Recess: Senate Takes Their Turn On Energy/Climate Discussion

By Courtney Ann Jackson-Talk Radio News Service

The energy and climate debate is making its way to the Senate, just two legislative days after the House passed the Waxman-Markey energy bill. The Committee on Environment and Public Works heard from White House and other government officials Tuesday. They highlighted the importance of making the U.S. a leader in the clean energy market, reducing the effects of global warming, and creating new jobs in the process.

“Clean energy is to this decade, and the next, what the Space Race was to the 1950s and ‘60s. America is behind,” said EPA Administrator Lisa Jackson. “American businesses need strong incentives and investments now in order for this nation to lead the twenty-first century global economy.”

Other officials present included: Energy Secretary Steven Chu, Agriculture Secretary Tom Vilsack and Department of the Interior Secretary Ken Salazar.

Chu said that he applauds the House for passing the clean energy bill and said he looks forward to working with the Senate to pass “comprehensive energy legislation.” He also noted that denial of the climate change problem will not change the outcome but comprehensive legislation that caps and then reduces carbon emissions will.

Committee Chairwoman Sen. Barbara Boxer (D-Calif.) said, “I expect you will hear fierce words of doubt and fear and worse from the other side of the aisle regarding our legislative efforts to move forward with clean energy jobs legislation. This is consistent with a pattern of “No we can’t.” I believe this Committee, when the votes are eventually taken on our bill, will reflect our President’s attitude, which is “Yes, we can, and yes, we will.”

Sen. Jim Inhofe (R-Okla.) agreed that the bill will pass through their committee but he does not believe it will pass on the Senate floor. He said the Senators will have more time to review the many points of the legislation than House members did prior to their June 25 vote.

Gov. Haley Barbour (R-Miss.) also testified Tuesday and stressed the importance of informing the public about the facts of energy policy.

“The gigantic effect of energy policy on American life means Congress should work particularly hard to ensure Americans know the facts about the policies Congress is considering. To the contrary, the House of Representatives added more than 300 pages of its 1200 page energy bill a few hours before it was brought to the floor and passed. That is just the opposite,” said the Governor.

Is The Recovery Act Really Helping?

By Celia Canon- Talk Radio News Service

Secretary of the Treasury Timothy Geithner

Treasury Secretary Timothy Geithner testified on the financial situation and on the American Recovery and Reinvestment Act today.

Geithner said that “There are important indications that our financial system is starting to heal.”

Signs that we are on the right path include ”New securities issuance has started to revive, Spreads for AAA credit card receivables asset-backed securities (ABS) have fallen about 330 basis points from there peak. There has been more issuance of consumer ABS in the past two months than in the preceding five moths combines,” said Geithner.
loans of similar types, duration and interest rates.”

Starting with the subprime mortgage crisis in 2007, “Unexpected losses experienced by major banks on mortgage-back securities set off a vicious cycle” as Geithner describes.

As a result, the government implemented the American Recovery and Reinvestment Act (ARRA) in February 17, 2009.

The act provides transparency and accountability so that taxpayers know where every dollar is going. Additionally, the ARRA “is giving 95% of working Americans a tax cut, creating or saving 3.5 million jobs, providing nearly 4 million students with a new higher education tax and helping 1.4 million Americans purchase their first home by providing $6.5 in tax credits,” said Geithner.

In terms of lending, which was significantly cut as banks lost their capital, Geithner said “The recovery program included any substantive increasing guarantees and a reduction in fees for small businesses lending programs, and we’ve seen lending under those programs increase 25% since the Recovery Act was passed.”

Sen. Christopher Dodd (D-Conn.), Chairman of the Senate Banking Committee, mitigated these arguments by saying, “I think the picture remains mixed after losing some 5.1 million jobs since the recession began.”

Geithner concurred, and added “In many parts of the country, many people don’t feel it’s getting better yet, they don’t really feel that the availability of credit is improving.”

“Treasury is continuing to look into additional metrics that gauge the markets more broadly, as well as additional economic metrics, to determine the effectiveness of the current strategy and whether additional or different steps are needed,” Geithner said.

Just a Spoonful "Economic Medicine"

By Courtney Ann Jackson-Talk Radio News Service

The Recovery Act is doing just as its name promised, according a press conference Wednesday from the office of Vice President Joe Biden. Biden released his first of a series of quarterly reports to President Barack Obama Wednesday morning.

In an on background conference call, a senior administration official from the Vice President’s Office said the American Recovery and Reinvestment Act has shown “early progress providing immediate financial relief for American families.”

The recession has been broad-based, causing unemployment to rise across the country. However, the Recovery Act has been responsible for creation of 150,000 new jobs so far, across all 50 states, including those in areas where it is most needed. “There are programs targeted to specific high unemployment
areas,” the official said.

The report discussions on state fiscal stabilization funds highlights Wisconsin’s application. It is is a good example of how states are “ramping up,” according to the official.

“The report find the anticipated funds are already having an effect on economic and job growth as private sector companies step up to meet expected demand for their projects under the act and state governments adjust their spending plans and they expect to received additional funds,” the
official said.