Deficit Spending will not Expand the Economy

Floor Speech

DEFICIT SPENDING WILL NOT EXPAND THE ECONOMY -- (House of Representatives - January 22, 2009)

Mr. FLEMING. Mr. Speaker, I stand today in agreement with the gentlewoman from North Carolina, the gentleman from Texas, and the gentleman from South Carolina. As this body considers whether to burden future generations of Americans with more debt in the name of improving the economy, it is imperative that we look at the facts.

The proposed legislation will create or save 3 million jobs. At $825 billion, the economic stimulus bill, in its current form, will spend $275,000 per job. Additionally, deficit spending will not expand the economy. If that were true, then the current $1.2 trillion deficit, the largest in history, would already be rescuing the economy. We wouldn't need another $825 billion.

Trade groups state that every $1 billion in highway ``stimulus'' can create 35,000 new construction jobs. But Congress must borrow that $1 billion out of the private sector, costing the private sector the same number of jobs. Any type of effective stimulus cannot create jobs for some while costing jobs for others.

Ladies and gentlemen, we do not need to continue down the path of wasteful spending. If we are going to steady the U.S. economy, we must stimulate American enterprise while returning to the practice of making fiscally responsible decisions on behalf of the American people.

END

Source