Dems Embrace Stimulus 2.0 as Debt Hits New Highs

November 1, 2011

FYI, a similar version of this release below went out to the following districts: Jason Altmire (PA-04), John Barrow (GA-12), Sanford Bishop (GA-02), Tim Bishop (NY-01), Leonard Boswell (IA-03), Bruce Braley (IA-01), Lois Capps (CA-24), Russ Carnahan (MO-03), Kathy Castor (FL-11), Ben Chandler (KY-06), David Cicilline (RI-01), Gerry Connolly (VA-11), Jim Cooper (TN-05), Jim Costa (CA-21), Mark Critz (PA-12), Henry Cuellar (TX-28), Peter DeFazio (OR-04), John Garamendi (CA-03), Raul Grijalva (AZ-07), Brian Higgins (NY-27), Jim Himes (CT-04), Ruben Hinojosa (TX-15), Kathy Hochul (NY-26), Tim Holden (PA-17), Rush Holt (NJ-12), Steve Israel (NY-02), Bill Keating (MA-10), Ron Kind (WI-03), Larry Kissell (NC-08), Rick Larsen (WA-02), David Loebsack (IA-02), Jim Matheson (UT-02), Carolyn McCarthy (NY-04), Mike McIntyre (NC-07), Jerry McNerney (CA-09), Michael Michaud (ME-02), Brad Miller (NC-13), Bill Owens (NY-23), Frank Pallone (NJ-06), Ed Perlmutter (CO-07), Gary Peters (MI-09), Collin Peterson (MN-07), Chellie Pingree (ME-01), David Price (NC-04), Nick Rahall (WV-03), Loretta Sanchez (CA-46), Kurt Schrader (OR-05), Heath Shuler (NC-11), Adam Smith (WA-09), Betty Sutton (OH-13), John Tierney (MA-06), Paul Tonko (NY-21), Niki Tsongas (MA-05), Pete Visclosky (IN-01), Tim Walz (MN-01), John Yarmuth (KY-03)

Capps Embraces Stimulus 2.0 as Debt Hits New Highs
California Democrat Pushes for Billions More in Spending as Debt Reaches the Size of the Entire American Economy

Washington — As the federal government’s debt continues to grow and soon exceed the size of the entire American economy, Lois Capps is pushing hard for nearly half a trillion dollars in additional failed stimulus spending. In the wake of the failure of the first failed attempt, it is disappointing that Capps would push for more stimulus spending that would require tax hikes or additional borrowing, making a bad economy worse.

“As America earns the dubious distinction of having a debt burden larger than the entire economy alongside countries like Greece, it is incredible that Lois Capps would push for even more stimulus spending,” said NRCC Communications Director Paul Lindsay. “Capps’ addiction to government spending continues to make economic recovery even more difficult for the small businesses and middle-class families in California who remember all too well how the first stimulus failed to create the jobs that were promised.”

The national debt is about to exceed the size of the entire American economy, a dubious distinction alongside countries like Greece which should not be emulated:

“As a result, the gross national debt, which is what the federal government owes both to outside creditors and its own trust funds (notably Social Security), won’t reach 100% of the economy for another month or two. It’s a mere $14.9 trillion…“A debt-to-GDP ratio of 98% is bad enough. It puts the U.S. closer to rarified territory — countries that owe more than they produce in a year.

“Japan is at the head of the class with a 220% debt-to-GDP ratio. Italy, being watched closely now for signs that the European debt crisis based in Greece could be spreading, is around 120%.

“Even the troubled 17-nation eurozone is better off than the U.S. in this regard, with a ratio under 90%. So much for U.S. economic leadership.”

(Richard Wolf, “National debt nears size of U.S. economy,” USA Today‘s The Oval Blog, 10/29/11)

Regardless, House Democrats have begun to jump on board, with 93 Democrats now cosponsoring President Obama’s stimulus retread plan:

“More than 90 lower-chamber Democrats have officially endorsed the president’s jobs bill in the past week – a stark jump over a short span that came after Democratic leaders welcomed members to sign on at the party’s weekly caucus meeting last Tuesday.” (Mike Lillis, “Obama jobs bill picks more than 90 House cosponsors,” The Hill, 10/30/11)

Capps has joined her colleagues as a cosponsor for the President’s second stimulus plan. (H.R. 12, Introduced 10/21/11)

Lois Capps should recognize that families in California can no longer afford to pile more government debt onto their children and grandchildren. Instead, despite the skyrocketing debt her first failed stimulus perpetuated, Capps is hopping on board as a cosponsor for President Obama’s Stimulus 2.0 retread.

Dems Embrace Stimulus 2.0 as Debt Hits New Highs http://ow.ly/7fAPw #madeinwdc

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John Barrow for Congress