Economic Recovery

I became interested in economics while growing up in Minnesota and Wisconsin. Due to a changing industry and job base, my family found itself in a very difficult economic climate. My father had to secure a job several hours away from home and only returned on Wednesday’s and weekends.

This experience led me to major in economics, studying Labor Economics, graduating with honors, and eventually going on to receive a law degree from the University of Minnesota Law School. I came to understand how acting proactively in an economic downturn could bring an economy back to a position of stability and prosperity. While I have not practiced law, I have found over the years that my law degree has informed my decisions in virtually all business and advocacy work I have undertaken.

I know that the economy impacts the quality of life for everyone, and believe that the actions of government determine, in large part, whether these cyclical downturns will be short-lived, or catastrophic.

Our district is struggling with the challenges of a recession that has swept the country leaving rising unemployment and falling real estate values in its path. National unemployment in January 2010 was 9.7%, a 2.6 percentage point increase over the previous year, while California’s unemployment rate is at 12.4% and is forecasted to remain in double digits through 2010. Sales of previously owned U.S. homes fell at the fastest pace on record in December 2009, falling 16.7 percent. January 2010 sales are down 33.4% from December.

While there are mixed messages regarding the economy and its recovery, these statistics indicate that we are a long way from economic health. Small businesses, retirement security, and the financial markets must be addressed, and addressed quickly, with sound policies that focus on the middle-class, as well as establishing mechanisms for long-term growth and prosperity.

I support the American Recovery and Reinvestment Act which is intended to create or save up to 3.5 million jobs, cuts taxes for 95 percent of Americans, and invests in renewable energy and infrastructure. The act will provide Congressional District 24 with up to $187,700,724—an amount that has the potential of creating hundreds of new jobs. Obama recently announced that to date this Act has created or saved approximately 2 million jobs.

I recognize, however, that this alone is not enough. I support future legislation that will respond quickly to economic crises as well as provide the effective mechanisms for long-term growth. By creating and retaining skilled American jobs, investing in working families, restoring American innovation that will drive new industries, utilizing our regional strengths encourage public-private partnerships, I am confident we will provide our economy the boost it needs. I also accept the fact that these strategies must be put in place with fiscal discipline that is enforceable.

In principle, I stand behind the following measures for economic recovery and growth:

  • Investing in working families by supporting the expansion and extension of middle class tax cuts (e.g. child tax credit)
  • Investing in our small businesses by increasing access to small business capital though use of Small Business Administration micro-loans
  • Establish a mechanism for federally directed emergency small business lending
  • Expand federal procurement set asides for small businesses
  • Expand the Small Business Innovation Program to include innovative technologies and companies
  • Expand the Small Business Innovation Program to include small business participation in federal and private projects
  • Allow Bush tax cuts that exclusively benefit the top 1% to expire while retaining and expanding middle class tax cuts
  • Expand funding for workforce development
  • Close tax loopholes that encourage companies to ship jobs overseas and delay tax liability
  • Allow automatic enrollment in company retirement plans
  • Temporarily eliminate penalties for emergency retirement plan withdrawals
  • Incentivize private investment in innovative technologies and companies
  • Expand graduate education and research programs in the sciences and technology
  • Support public-private partnerships that capitalize on the presence of colleges and universities in our community
  • Enforce fiscal discipline by closing the budget gap and reigning in long-term healthcare costs
  • Make ‘pay-as-you-go” rules enforceable
  • Require discretionary spending caps

Monday, September 06, 2010
   
Text Size