Yes

by Jude Coyle

Created on: September 19, 2011

There's an old saying: To make money, one must spend money. Should Congress approve the American Jobs Plan? Absolutely.

Unemployment is currently at 9.1%. That means that there are about 42,000,000 people collecting unemployment. There are more who have part time jobs or have fallen from the Unemployment roles because they are no longer eligible and have given up looking.

Unemployment can only grow at this point as State governments battle to bring out of control budgetary holes back to manageable levels. That means that State workers, like teachers and first responders, will lose their jobs. Cutting expenses causes jobs to be lost and provides less money to replenish the economy. Part of the American Jobs package is to help the States retain those workers.

On August 1, 2007, the I-35W bridge over the Mississippi River in Minneapolis collapsed causing the death of 13 motorists. It happened at rush hour, when people were returning home from work. Approximately 140,000 vehicles crossed it daily. 

Part of the American Jobs package is to begin a infrastructure bank. Over the last few decades, when Congress was asked about infrastructure programs, more conservative members claimed that the repair and replacement of roads, bridges, etc., should fall under the jurisdiction of the States. The same conservative movement cut funding to the States. Obviously that is an equation for deterioration, and currently there are thousands of bridges considered to be dangerous. The most unfortunate fact about the collapse of the I-35W bridge is that it was the first of what could be many if we don't do something soon. 

People can be put to work immediately in schools all over the country. I was angry to learn that the grammar school my children attended doesn't have a gym, a lunch room or an efficient heating system. Further investigation made me thankful that that was the only problems they faced. Reports from all over the country showed schools with ceilings that leaked and floors with holes in them, and broom closets that were being used as classrooms. With a little time and a few bucks, almost immediately our children could be learning in a safe atmosphere that is more conducive to learning. The American Jobs Act will address this issue.

There are tax breaks for middle and low income workers, as well as tax breaks for employers who hire the long term unemployed. Every extra buck added to the economy is one more contribution towards our economic health. Give me a tax break. If my paycheck provides me another five dollars, I'll spend it either at the gas station or the grocery store. According to even the most conservative economist, the easiest way to spur the economy is to put money in the pockets of people who need it the most.

The opponents of the American Jobs Act say we need to cut taxes and regulations, and balance the Federal budget. They aren't talking about giving tax breaks to the poor or middle class, but to the top 2% of earners. The theory is that they will hire more workers, and that those tax breaks will trickle down to the lower economic classes. Ronald Reagan ran on this theory in the 1990's. George H.W. Bush called it 'voodoo economics,' saying he didn't understand the math. How could cutting taxes create a larger tax base? Reagan argued that it would create jobs and that those new employees would pay more taxes. Whereas it is true that when there are more people employed in good paying jobs, more taxes are paid into the system. It doesn't follow that cutting taxes creates jobs. Reagan cut taxes his first year in office. A recession followed almost immediately. Within a year, Reagan raised taxes, saying that 'Trickle down economics doesn't work.' He raised taxes several more times before his eight years were up.

George W. Bush cut taxes and regulations. With that and two unfunded wars, it is no surprise that the markets collapsed on September 8, 2008, just two months prior to the 2008 Presidential election. 

One of the reasons for the collapse was a product called 'an adjustable rate mortgage', or an ARM. The idea was that anyone could buy a house with a lower mortgage payment. Supposedly as wages increased, so would the mortgage. Only wages weren't increasing. The banks who sold these mortgages figured that if houses were lost because the new homeowners couldn't come up with the difference at the mortgages increased, the economy would be strong enough to absorb the losses. It wasn't.

My point is simply this. If someone had been paying attention to the regulations on the books, these mortgages would never have been allowed. 

The only time in the history of the U.S. that the rich paid less taxes was just prior to the Great Depression when tax levels for the upper 2% were at 24%. The Stock Market crashed on October 29, 1929. As with the crash of 2008, it took about six months before the middle and lower class workers began losing jobs. At that time it was believed that the economy was a sentient creature that would turn around on its own accord. President Herbert Hoover decided to wait it out.

Three years later Franklin Delano Roosevelt ran for the Presidency. He promised to do whatever he could to create jobs. Immediately after his election, he created his alphabet program. One program, the Civilian Conservation Corp., or C.C.C., was considered the single most successful jobs program in history. Young men lived in a paramilitary like setting. They worked at planting forests, building roads and other facilities for our National forests. It was disbanded in 1942 when C.C.C. members were drafted to fight in WWII. FDR created many other programs through which huge infrastructures programs were implemented. One was the Hoover Dam. Another program brought electricity to the South. The only time in his long Administration that he seemed to be losing the battle for an improved economy was later when he was talked into balancing the budget. It wasn't until we entered WWII, when the government began spending on war materials and building an army, that we finally pulled out of the Great Depression completely.

The greatest economic growth happened when the top 2% paid 90% taxes. That was when Republican President Dwight D. Eisenhower was President. It was under his leadership that the Interstate Highway System was created. 

The markets were first regulated under Theodore Roosevelt. He implemented Anti-trust laws. This meant that huge companies couldn't create monopolies and squeeze out the competition. Other regulations were put into place with the sole purpose of protecting the little guy. The Federal Reserve protects people from unscrupulous bankers and markets, and the Environmental Protection Agency attempts to keep our water, air and soil free of contaminants. 

My point is this: The American Jobs Act was created for the benefit of the little guy. It will save thousands of existing jobs as well as create 1.2 million more. It isn't a solution, but it is a start, and maybe enough to kick start growth. If we sit here, and wait for the taxes, regulations and spending to be cut, we will be waiting for a very long time before the economy corrects itself.

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