House Democratic Caucus Press Conference with Rep. Pelosi (D-CA), Rep. Hoyer (D-MD), Rep. Clyburn (D-SC), Rep. Emanuel (D-IL, Rep. Larson (D-CT) and Rep. Edwards (D-TX)

Interview

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REP. PELOSI: Gentlemen. Good afternoon, we're all back. Democrats have returned for the second session of this Congress reinvigorated and ready to tackle the problems challenging our country.

We come back to this new direction Congress focusing on the economy. It has been clear for the past few weeks that all sectors of the economic -- all shades of opinion in the economic world are saying to us that a stimulus is needed to avoid a downturn or to worsen the situation. We've tried to work in a very bipartisan way and I hope that that will bear fruit in another week or so.

We've had meetings with members of the leadership and chairs of the committee have met and spoken with by phone -- the leadership of this administration, Secretary Paulson, independent of the administration meeting with, and speaking with Chairman Bernanke -- tried to recognize the independence of the Fed to coordinate a monetary ease and some fiscal discipline on our part, to put forth a stimulus package that will be timely, that will be temporary and will be targeted to middle and low income families so they can spend the money to inject demand into the economy, create jobs, ease the pain in their lives. This, of course, occurs at the same time as we have the subprime crisis. And the downturn in housing has contributed to consumer -- lack of consumer confidence.

Democrats are about confidence, our own confidence that we can work together in a bipartisan way to get the job done, our own confidence in our record of accomplishment in 2007. And what we know that we need to do, working in a bipartisan way, to instill confidence in America's consumers and to restore confidence in our markets. So again, the process is bipartisan. The policies are trying to find common ground on some initiatives that can be quickly passed into law, signed by the president, to make a difference in the lives of the American people.

I join my colleagues here also in urging the president to release the funds for the veterans. He has another 24, 48 hours to do that. Mr. Edwards has joined us -- members of the leadership. He has been the leader in the Congress, the champion for veterans to pass the biggest increase in veterans benefits in the history of the Veterans Administration.

With that, I'd like to yield to the distinguished Majority Leader who has joined us now, Mr. Hoyer.

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REP. PELOSI: Pleased to take any questions you may have.

Q: Do you know when you might come up with a proposal or will we only see one after you have a joint proposal with the Bush administration? How will it work?

REP. PELOSI: That would be our hope. In the letter that Senator Reid and I sent to the president last week, we said it was our hope that before everyone started getting out there with one package or another, we could find our common ground and expedite bringing legislation to the floor. And that is what we hope to do.

Our meeting, as Mr. Hoyer -- I think you mentioned it didn't you Mr. Hoyer, that we would be meeting -- I think it's in the public domain, next week with the president. So, it won't be long. And hopefully, by the time we go to the meeting everyone will be ready to come to terms so we can come out of that meeting with a legislative proposal that can quickly pass and be signed by the president.

Q: Mr. Hoyer talked about -- used the word recession and things. Do you think that we are in a recession or headed toward a recession? What's your assessment?

REP. PELOSI: Last December 5th, and some of you know this because you covered our meeting, we had a meeting with a wide range of economists who came in and talked about the condition of the economy. We have hesitated to say that we are in a recession because we do not want to contribute to any lack of confidence on the part of the American people, whether they are consumers or their confidence in the markets. But we do know that whether technically it qualifies as a recession -- we do know that in the households of America there is great hardship and concern about the economy.

So whether it is or isn't, we want to head off what might be that prospect. Since we met December 7th, some of the indicators have not been good: five percent unemployment, a downturn in consumer spending, since that time. So what I hear in my conversations with Secretary Paulson and with Chairman Bernanke and others is that there is an urgency for us to do something and to do something now.

Again, it's about confidence and I think nothing would restore more confidence in the American people than if we could come up with a bipartisan initiative right away that says we are working together. As we sat around that table December 7th with all of those economists, I couldn't help think of the tables -- the kitchen tables, the dinner tables of America's families and the concerns they have. We tried to have our discussion be relevant to their needs, to some of the issues my colleagues referenced: whether they have a job, the cost of health care, the cost of gasoline, food, education for their children. And that's what we hope to use, the best thinking inside the Congress and outside in a bipartisan way, the Congress and the White House, the Fed in its independent way with monetary ease, and the Congress and the White House with a fiscal impetus to make that a more comfortable dinner for those families in America.

Does anyone else want to say anything?

Q: You don't want to unveil a package right now, but the three major Democratic candidates for president have already unveiled their own stimulus packages in quite some detail. And I'm wondering what role those packages and those candidates might have in coming up with a product that you ultimately unveil?

(Off mike.)

REP. : And we enjoyed it.

REP. : And when they become president we're going to work with them.

REP. PELOSI: Well I haven't had a chance to subject their proposals in every detail, but I do know that they are something that would meet the criterion that would be timely, that it would be temporary and it would be targeted to the middle class. As Mr. Emanuel said, we're putting the middle class first. So again, we want the best thinking wherever it may occur and respect the hard work that went into the proposals that they have. But we will be working in a bipartisan -- when we finish this meeting we're going to be meeting with the Republican leadership of the House to see where we can find our common ground. And then we'll meet with the president to take this to a place where it will change the lives of the American people.

Q: (Off mike) -- there's a slew of economic data that refers to employment -- (inaudible) -- end of the month. At some point, if those readings are good and the Fed does something -- (inaudible) -- is there a chance that a stimulus will not be needed? I mean, will that (put a halt to the process?)?

REP. PELOSI: Well we would hope not to need a stimulus package, but every indicator is that we do. And let me say, just because we pass a package on that day and the president signs it the next, it does take a little time for it to have its impact on the economy. And so, the decision has been made to proceed with the stimulus package. We can't wait too much longer and we don't have any reason to believe from our conversations with the administration, that they believe there's any reason to wait any longer.

REP. HOYER: I would just add, in talking to the chairman of the Federal Reserve, it is his view that we need to move ahead in partnership on this issue. Obviously, he's indicating he's going to play his role. And we both -- everybody here, I think, has talked to him about playing a role that we can play. Again, I think what the Speaker has indicated, together, working in a positive, bipartisan fashion, we can make a difference for the working men and women of this country and for our economy.

REP. PELOSI: And in their homes -- again, whether this technically qualifies as a recession, it is a serious downturn in the economic life of America's families. The American people need a stimulus package and we are determined to go forward with it.

Ron.

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Q: Madam Speaker, do you expect your Republican partners to insist on some kind of incentive for businesses, for upper income investors, and are there policies or proposals along those lines that you're considering?

REP. PELOSI: Well, we want the package to be a stimulus, that's a criterion that it has to meet. And as I said, beneath that: timely, temporary and targeted. So, the CBO came out yesterday with a report -- was it yesterday or the day before? It was reported upon yesterday, as to what worked in the past. And I think that gives us some guidance as to whether these will be truly stimulus.

This package is not going to be all things to all people. It is not a panacea, cure-all. We're in this situation, as Mr. Hoyer said, because of the economic policies of pres -- the Bush administration.

We are talking also about what we have done in a bipartisan way to pass an ovation agenda to keep America competitive -- our commitment to competitiveness, to keep us number one, to innovate -- to innovate, to grow our economy, to create jobs. Much of the agenda that we passed was passed with strong bipartisan support, even though it may not have had the support of the leadership, Republican leadership of the Congress. So we have this in the context of what we're doing about innovation, what we're doing about energy, the approach we're going to take to health care, what we're going to do about education to grow our economy, create jobs and have security and confidence for the American -- economic confidence for the American people.

So some of those things might more aptly apply in other legislation. But in terms of stimulus, do they do what they're suppose to do? What's -- because it all costs money and if we're spending money what are we getting for it? And what we want to get for it is a revitalization of the economy, a stimulus to the economy. Again, to put money in the hands of people who will spend it, inject demand into the economy, create jobs and add vitality.

Another piece of it will be what we do about subprime. It may not be part of the stimulus package, but will run in tandem because the downturn in housing, of course, has resulted in some of the downturn in consumer spending, as well. So, we have a lot of challenges ahead.

The stimulus will not meet all of the -- in our caucus, for example, we just had a caucus that -- we're late because it went over because people had so many ideas about what they might have in a stimulus package. The ideas are all excellent. We have to subject them to the standard; should they be part of a stimulus package or should we wait another day? And I think the same applies to some of the suggestions that you have made.

Q: Will that be PAYGO, subjected to PAYGO?

REP. PELOSI: (Off mike.)

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