DeLauro Holds Economic Forum, Focuses on Strategy for Job Creation and Long-Term Growth
Statement
DeLauro Holds Economic Forum, Focuses on Strategy for Job Creation and Long-Term Growth
Congresswoman Rosa L. DeLauro (CT-3) hosted an economic forum on moving our economy forward and how Connecticut and the country can get out of this recession, create jobs and develop plan for long-term growth. Unemployment in CT is at 6.1%. The second highest in New England behind Rhode Island.
"Families in Connecticut and across the country continue to struggle with rising costs, weakened retirement security, and increased unemployment. That is what this forum is about, starting the conversation about what we need to do to get our economy moving again," said DeLauro. "Part of that is a new job creating recovery package to invest in our middle-class, our small businesses and strengthen our economy as a whole. The recovery package should include increased federal funds for bridges and other transportation projects, and becoming more energy efficient, as well as additional funds to the states and localities to prevent cuts in critical programs, a permanent tax cut for lower- and middle-income families, an extension of unemployment benefits, and increased money for food stamps."
A panel of experts joined DeLauro. This includes Ed Deak, Ph.D., Professor with the Department of Economics, Fairfield University; Jamison Scott, Board Member and former President of New Haven Manufacturing; President, Air Handling Systems; Nicholas Perna, Sr., Economist, Perna Associates, LLC; and David Kooris, the CT Director for the CT-NJ-NY Regional Plan Association, to help start the conversation on how we can create and keep jobs in Connecticut.
Below is the text of DeLauro's remarks opening the forum.
"I want to welcome everyone and thank you all for joining our Economic Forum this morning.
"We are very lucky to be joined today by Professor Ed Deak from the Economics Department of Fairfield University, Jamison Scott from Air Handling Systems and the New Haven Manufacturing Association, Nicholas Perna, Senior Economist with Perna Associates and David Kooris Connecticut Director of the Regional Plan Association. Please welcome them.
"In a moment I will tell you a little more about their work before giving them the floor to get this conversation started. It is great to see so many friends and familiar faces here today - such a diverse crowd, representatives from the worlds of economic development, labor, business, workforce development, education, and the public sector. It is a testament to the impact and the urgency of our current economic trials.
"We come together at a critical moment for Connecticut and its residents. Our state already faces a $300 million mid-year budget gap. Incomes for workers across the board have flat lined or declined. Unemployment in Connecticut is 6.5% in August - the second highest in New England. Higher than the national average. Housing prices in the state continue to tumble, particularly in New Haven, with no clear end in sight.
"And this could be just the tip of the iceberg. Connecticut's construction industry, for example, actually saw employment grow during the first half of 2007 by 1.8 percent, and has contracted by only 1 percent in 2008 so far. But now, we wait for the other shoe to drop, with new homes and other projects declining, significant job losses are on their way. In the second quarter of 2008 we have seen the shedding of construction jobs.
"The same thing is happening across the nation contributing to the crash of the stock market and the major anxiety we all feel about the prospect of a long and deep recession.
"So how do we get our economy moving again? How do we help Middle Class families threatened every day by foreclosure, soaring prices, and the breakdown of our financial markets? How do we help Connecticut businesses struggling to keep the lights on, maintain their equipment or meet payroll? How do we create jobs at a time when they are rapidly disappearing?
"There are no easy answers. But I do know that our national leaders must act responsibly, quickly and thoughtfully - to get it right and to get our economy back on track.
"And so, that is what I hope we can discuss here today - how we can work together to reverse these daunting trends, jumpstart our economy and ensure Connecticut's economy grows and prospers in the years ahead.
"For so long, I have said that government does not create jobs in and of itself, but instead creates an environment where job growth is possible and our communities thrive. But conditions have changed - our economy is in deep trouble - and the free market alone cannot fix its problems, as we have seen with the financial crisis nationally. I have come to believe that now is the time for the federal government to play a more active role in creating jobs, investing in our communities, and promoting economic expansion.
"These serious challenges did not appear overnight. And we will not solve them overnight with a one-size-fits-all answer. The critical recent action by the federal government to get the credit markets moving again must be coupled with economic recovery measures that address both short-term needs, dealing with the high unemployment rate, as well as long-term needs, namely job creation by investing in our transportation, roads - the infrastructure of our economy and in new energy.
"On Monday, Chairman Bernanke testified before the Budget Committee where I pressed on what the shape and size of a successful economic recovery package might look like - the potential impact of targeted investments in our economy. During the next two weeks Speaker Pelosi and the US House of Representatives will hold a series of hearings about just what that kind of economic recovery package should look like.
"Ultimately, we will need to look beyond Democratic and Republican labels to get this done for the American people. I think there is an understanding that this moment requires bold solutions that will drive economic growth and job creation directly.
"For me that starts with an investment strategy to create jobs through ready-to-go transportation and energy projects, maintaining highways, rebuilding bridges, transit, and water systems. Investing in alternative energy and school repair - all to create good jobs that cannot be outsourced while spurring economic growth, and putting our nation on a better path, not just today but for the future.
"At the same time we must help states and localities who are facing massive mid-year budget shortfalls. We must prevent cuts to the critical services our communities rely on everyday, from police and firefighters and schools to health care services for children and seniors and to on-going state and local building projects. We have a responsibility to do everything we can to keep further cuts and higher fees from hitting middle class families at a time when they can least afford it.
"Finally, we should consider additional funds in food stamps and for the extension of unemployment benefits - effective programs that will quickly push significant funds back into our economy while creating a critical safety net for those who fall out of work.
"Let me be clear: we are ready make this happen. I believe we can bring a powerful new package for a vote in the House by early November - if we get the cooperation of the Administration.
"Still, even from there, we will have a long way to go with a lot of work and sacrifice ahead. Many years of stagnant wages and bad debt have put us on a very treacherous path. At its roots this crisis came out of market deregulation and a tearing down of the walls between commercial banks, investment firms and insurance companies. The system that allowed this to happen is obsolete. It is time to invest in an upgrade.
"More than 75 years ago, in the darkest days of the Depression, FDR spoke about the danger of doing nothing - the paralyzing power of the status quo standing in the way of reform. He warned: many, of faint heart, fearful of change, sitting tightly on the roof-tops in the flood, will sternly resist striking out for it, lest they fail to attain it.'
"With our economy at stake today we cannot afford to wait. It is time to respond and, as Roosevelt did that day, demand' bold persist experimentation,' to steer our economy in a new direction and bring relief to millions of families in need."
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