House GOP Caucus Recovery Summer

8/8/2019 House GOP Caucus Recovery Summer

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Recovery Summer Summary

How Democrats Described It:

April 14, 2010 House Speaker Nancy Pelosi saidthere is mounting independent evidencethat the Recovery Act and other job-creation efforts are spurring an American economicrecovery.

June 17, 2010 The White House declared, This summer is sure to be a Summer of EconomicRecovery it is becoming clear that it could quite possibly be the most active season yet

when it comes to recovering our economy.

June 17, 2010 Vice President Joe Biden told reportersThursday that the Recovery Act isworking and predicted that this summer will be the most active period of job creation since the

stimulus bill was passed by Congress early last year.

June 18, 2010 President Obama claimedthat his trillion dollar stimulus was creatingprogress all across the country. Businesses are beginning to hire again. He also said that theeconomy is now growing at a good clip, and he gave credit to Democrats in Congress.

August 4, 2010 The administrations hopefulness continued through the summer withTreasury Secretary Geithners New York Times op-ed titled, Welcome to the Recovery, in whichhe assured us that the American economy is on a path back to growth.

August 24, 2010 Rep. Debbie Wasserman Schultz (D-FL) said on Fox News On the Record,"The president's economic policy is working all over the country. I mean, you only have to look at

results.

August 27, 2010 - Rep. Chris Van Hollen (D-MD) told Politico, "Today we are moving in the

right direction."

How the American People Experienced It:

9.6%: The national unemployment rate for August. Its been above 9 percent for 16 consecutive

months.

43: The number of states where unemployment rates are higher now than when the presidentsstimulus measure became law.

16.3%: The unemployment rate for African Americans.

12%: The unemployment rate for Hispanic Americans.

283,000: The number of jobs lost in June, July and August 2010.

16.7%: The rate of underemployment in August. This accounts for the unemployed, those

unable to find full-time work and those discouraged from looking for work.

14,860,000: The number of unemployed Americans looking for work in the month of August.

8%: President Obama said unemployment would remain below this point if the stimulus was

passed.

3,582,000: The number of gross jobs lost since the Democrats stimulus was signed into law.

1.6%: GDP growth during the second quarter; slower and less than forecast by most

economists.

422,061: The number of bankruptcy filings in the 2nd quarter, the highest level since 2005.

1 in 6: The record number of Americans receiving benefits from government anti-povertyprograms.

27.2%: The decline in sales of existing homes in July, the largest monthly drop in four decades.

1963: The last time sales of new homes were as low as they were in July 2010 (276,000).


4/15

Democrats Recovery Summer Heats UpJuly 1, 2010

In politics, you can say all sorts of things that have no relationship with reality.

Thomas Sowell

BACKGROUND

In 2009, Democrats enacted a $1.138 trillion stimulus plan (including the cost of interest), promoting it as being necessary tocreate jobs. Recently, Democrats kicked off what they are referring to as the Recovery Summer. The recovery summer

consists of a six weeks long promotional tour by Democrat leaders to attempt to highlight what they believe to be successes

from their stimulus bill. According to Politico, David Axelrod, President Obamas senior adviser, stated, This summer will be the

most active Recovery Act season yet[G]iving the American people a first-hand look at the Recovery Act in their own backyards

and making it crystal clear what the cost would have been of doing nothing. While Democrats attempt to convince themselvesthat spending the nation into bankruptcy is a successful recovery, with nearly 10 percent unemployment, most Americans know

all too well that the Democrats stimulus is anything but a success.

DEMOCRATS DEFINITION OF SUCCESSESFUL RECOVERY

Lack of Job Creation: The Bureau of Labor Statistics recent jobs report indicates that the national unemployment rate for

June is at nearly 10 percent with 125,000 jobs lost. The African American unemployment rate is at 16.5 percent and theHispanic unemployment rate is at 12.5 percent.

Increase in Home Foreclosures: On June 10, 2010, CNNMoney.comreported, Bank repossessions hit a record monthly

high in May, according to RealtyTrac, the online marketer of foreclosed properties. Lenders took back 93,777 properties, up 1

percent from the previous month's record and 44 percent from the same period a year earlier.

Plunge in New Home Sales: On June 22, 2010, theAPreported, Sales of new homes collapsed in May, sinking 33 percent

to the lowest level on record

Stifled Economic Growth: On June 23, 2010, the Wall Street Journalreported, Verizon Communications Inc. Chief

Executive Ivan Seidenberg, current head of one of the nation's most influential business groups, slammed the Obama

administration for decisions he said create an increasingly hostile environment for investment and job creation Mr.Seidenberg also heads the Business Roundtable, a group made up of the chief executives of the nation's largest listed

companies, employing over 12 million people.

Increase Taxes for the Middle Class: Rather than reducing the size of government, the Democrats would fund the

expansion of government by imposing higher costs on middle class taxpayers. On June 22, 2010, theAPreported that House

Majority Leader Hoyer stated, "[W]hat to do with the expiring Bush tax cuts in the coming weeks, we need to have a seriousdiscussion about their implications for our fiscal outlook, including whether we can afford to permanently extend them"

Ongoing GSE Bailout: As of May 2010, taxpayers lost $145 billion bailing out Fannie Mae and Freddie Mac. According to theCongressional Budget Office, the taxpayers liabilities are expected to be nearly $400 billion. Yet, the Democrats continue to

protect the failed government sponsored enterprises and refuse to rid the taxpayers of the failed firms liabilities.

Excessive Government Spending: According to theAnnual Report on the Public Debt, issued by the Treasury Department

in June 2010, by 2015 the public debt is estimated to rise above $19.6 trillion with the ratio of debt to GDP rising above 102

percent.

Record Deficit: In a June 2010 report, the CBO projected the federal debt would reach 62 percent of GDP by the end of this

year, the highest percentage since shortly after World War II.

For more information or questions please contact Daris Meeks at 6-0979.


5/15

Democrats Recovery Summer SizzlesAugust 2, 2010

The consumers suffer when the laws of the country prevent the most efficient entrepreneurs from expanding

the sphere of their activities.

Ludwig von Mises

BACKGROUND

With national unemployment at nearly 10 percent, African American unemployment at 16.5 percent and Hispanic unemployment

at 12.5 percent, most Americans, trying to keep food on the table, know the Democrats economic policies have failed. Many

economists are predicting a double-dip recession, yet Democrats, again ignoring the pleading of Americas small business

owners, march religiously down the path of more regulations, higher taxes, and more restrictions on freedomall of which arehostile to private sector job creation and economic growth. The latest assault on the economy was the Democrats financial

services reform legislation, signed into law by President Obama on July 21, 2010. In a June 28, 2010 letter to members of

Congress, the U.S. Chamber of Commerce, representing over three million businesses (i.e., job creators), expressed its strong

opposition to the Democrats latest job killing venture. The letter stated, [The bill] would unnecessarily affect companies that

had nothing to do with the financial crisis, and would not create the efficient, liquid, and transparent capital markets Americaneeds to fuel long-term economic growth and job creation[The bill] would exacerbate flaws within the existing regulatory

structure, increasing uncertainty, reduce the availability of credit, and likely cause unintended harm throughout the economy.

While small business owners prepare for the impact of the 2,315 page regulatory monstrosity, Democrats are trying desperately

to convince the American people to ignore reality.

A SUCCESSESFUL RECOVERY?

Increased Foreclosures: President Obama set aside $75 billion to fund the failed Home Affordable Modification Program. On

July 27, 2010, Bloombergreported, About 18.9 million homes in the U.S. stood empty during the second quarter as surging

foreclosures helped push ownership to the lowest level in a decade.

Ruined Livelihoods: On July 19, 2010, CNNMoney.comreported, Automakers GM and Chrysler were pressured to closehundreds of dealerships quickly by the Treasury department without regard for the job losses that would result, according to a

government watchdog [Special Inspector General for TARP] report out SundayThe audit also found that dealerships weren't

axed as money-saving ventures for the manufacturers but for far more amorphous reasons. The auto team did not consider

cost savings to be a factor in determining the need for dealership closures

Increased Cost of Bailouts: On July 21, 2010, Reutersreported, Increased housing commitments swelled U.S. taxpayers'total support for the financial system by $700 billion in the past year to around $3.7 trillion, a government watchdog said on

Wednesday. The Special Inspector General for the Troubled Asset Relief Program said the increase was due largely to the

government's pledges to supply capital to Fannie Mae and Freddie Mac and to guarantee more mortgages to the support thehousing market.

Decreased Confidence in the Economy: On July 26, 2010, theAPreported, Americans' confidence in the economy eroded

further in July amid worries about a job market that has proven stubbornly stagnantThe Conference Board, a private researchgroup, said Tuesday that its Consumer Confidence Index slipped to 50.4 in July, down from the revised 54.3 in JuneThe

decline follows last month's nearly 10-point drop, from 62.7 in May, which marked the biggest since February

Decelerating Economy: On July 30, 2010, Bloombergreported, The U.S. economy slowed in the second quarter as a

scarcity of jobs eroded consumer spendingGross domestic product grew at a 2.4 percent annual pace, less than forecast...



6/15

Democrats Recovery Summer Gets HotterAugust 13, 2010

[The stimulus bill] is a crucial first step in a concerted effort that we have to jumpstart the economy. It will

create jobs immediately, and it will also lay the foundation for economic stability as we go forward.

Speaker Nancy Pelosi (CQ, 1/22/2009)

BACKGROUND

On August 4, 2010, the New York Timespublished an op-ed by Treasury Secretary Tim Geithner titled, Welcome to the

Recovery. For most Americans living outside the Democrats utopian fantasy, this recovery is anything but welcomed. In the

wake of further economic downturn and nearly 10 percent unemployment, Democrats continue to ignore the economichardships of Americas families and business owners, choosing instead to stifle economic growth by increasing taxes and

regulations, while creating a permanent class of dependents.

DEMOCRATS DEFINITION OF SUCCESSESFUL RECOVERY

Lack of Job Creation: On August 6, 2010, the Bureau of Labor Statistics reported that the economy lost 131,000 jobs in the

month of July, and the unemployment rate was unchanged at 9.5 percent.

More Jobs Lost: On August 12, 2010, theAPreported, The economy is looking bleaker as new applications for jobless

benefits rose last week to the highest level in almost six monthsFirst-time claims for jobless benefits edged up by 2,000 to a

seasonally adjusted 484,000, the Labor Department said Thursday. That's the highest total since February. Analysts had

expected claims to fall. Initial claims have now risen in three of the last four weeks and are close to their high point for the yeaof 490,000, reached in late January. The four-week average, which smooths volatility, soared by 14,250 to 473,500, also the

highest since late February.

Shrinking Economy: On August 10, 2010, Federal Reserve officials met and expressed concern about the lack of growth inthe economy. According to an August 11, 2010 Wall Street Journalarticle, The Fed noted that high unemployment, modest

income growth, lower housing wealth and tight credit were holding back household spending. Meanwhile, lending by banks has

continued to contract, the Fed said, while construction remains weak and employers remain reluctant to increase payrolls.

Record Foreclosures: On August 12, 2010, theAPreported, The number of U.S. homes lost to foreclosure surged inJulyLenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009,

foreclosure listing firm RealtyTrac Inc. said Thursday.

Creating Dependents, Not Jobs: On August 11, 2010, theAtlanta Journal-Constitutionreported, Thirty thousand peopleturned out in East Point on Wednesday seeking applications for government-subsidized housing, and their confusion and

frustration, combined with the summer heat, led to a chaotic mob scene that left 62 people injured. The federal assistance

program is a Section 8 voucher program that assists tenants who cannot afford to pay rent at the fair market value. Accordingto a local official, the demand for low cost housing has increased due to job loss.

More Deficit Spending: On August 11, 2010, the Obama administration announced that it would spend an additional $3

billion to help unemployed homeowners through two foreclosure-prevention programs. Also, on August 11, the Wall Street

Journalreported, The U.S. government spent itself deeper into the red last month, paying nearly $20 billion in interest on debt

and an additional $9.8 billion to help unemployed Americans. Federal spending eclipsed revenue for the 22nd straight time, theTreasury Department said Wednesday. The $165.04 billion deficit, while a bit smaller than the $169.5 billion shortfall expectedby economists polled by Dow Jones Newswires, was the second highest for the month on record. The highest was $180.68

billion in July 2009.

For more information or questions please contact JaRon Smith at 6-0979.


7/15

Democrats Recovery Summer Gets Even HotterAugust 19, 2010

I'm absolutely confident that the policies that we put in place are sending the economy and the American publicin the right direction.

Vice President Joe Biden, (NPR, April 28, 2010)

BACKGROUND

While Democrats are absolutely confident the economy is headed in the right direction, many Americans disagree. In anothersign of the Democrats disconnect with average Americans, on August 16, 2010, Gallupreported, [R]oughly one in four

Americans employed full or part time is currently worried about being laid off in the near future. That is nearly double the rate

seen in August 2008, just prior to the start of the Wall Street financial crisis that sent consumer confidence and perceptions of

the job market tumbling. Below are several reasons why Americans know they cannot trust Democrats successful recoveryrhetoric.

A SUCCESSESFUL RECOVERY?

Where Are the Jobs?: On August 19, 2010, Reutersreported, New U.S. claims for unemployment benefits unexpectedly

climbed to a nine-month high last week, yet another setback to the frail economic recovery. Initial claims for state

unemployment benefits increased 12,000 to a seasonally adjusted 500,000 in the week ended August 14, the highest since mid-November, the Labor Department said on Thursday.

No Jobs, Increased Bankruptcies: On August 17, 2010, CNBCreported, U.S. bankruptcy filings have reached the highest

level since 2005, government data released on Tuesday show, as the economy slows and the unemployment rate hovers just

below double digits. There were 422,061 bankruptcy filings between April and June, according to the Administrative Office ofthe U.S. Courts, up 9 percent from 388,148 in the prior three-month period, and up 11 percent from 381,073 a year earlier. For

the year ended June 30, there were 1.57 million bankruptcies, up 20 percent from 1.31 million a year earlier. Consumerbankruptcies rose 21 percent to 1.51 million, and business bankruptcies rose 9 percent to 59,608. Quarterly filings surpassed

400,000 for the first time since a record 667,431 bankruptcies were begun in the fourth quarter of 2005 when Congressoverhauled federal bankruptcy laws and made it harder for people and businesses to file. The article indicates that the current

increase in bankruptcy filings is due principally to job losses.

No Jobs, Creating Dependents: On August 5, 2010, FoxNews.comreported, The number of Americans receiving federal aid

through the Supplemental Nutrition Assistance Program, commonly known as food stamps, soared to a record 40.8 million inMay[A]ccording to U.S. Department of Agriculture figures, the number of people on the food stamp rolls has been growing to

record levels for 18 straight months. Nearly $5.5 billion in aid went out to beneficiaries in May alone. The number of May

recipients marked a 19 percent increase from a year agoThe USDA projects that next year's enrollment will reach about 43.4

million.

No Jobs, More Homes Lost: On August 16, 2010, the Wall StreetJournalreported, In June, the number of homeowners

whose government loan modifications were canceled, because they didn't make their payments or couldn't provide qualifyingdocuments, was double the number of borrowers who entered the program. If more homes that represent a "shadow supply"

of delinquent loans and foreclosures hit the market, home prices could tumble further.

No Jobs, Missed Opportunities: On August 16, 2010 theAPreported, Homebuilder confidence dropped for the thirdstraight month in August as the struggling economy and a flood of cheap foreclosed properties kept people from buying new

homes. The National Association of Home Builders said its monthly index of builders' sentiment about the housing market fell to13, the lowest reading since March 2009. The index is adjusted for seasonal factors. Readings below 50 indicate negativesentiment about the market. The last time the index was above 50 was in April 2006. Fewer people are buying new homes,

even though prices have stabilized in the past year and those who have good credit can qualify for the lowest mortgage rates in

decades. The market is struggling because jobs are scarce and credit is tight. And many analysts predict home prices are likely

to drop again in the fall.



8/15

Democrats Recovery Summer FailsAugust 31, 2010

We have managed to acquire $13 trillion of debt on our balance sheet, and in my view we have nothing toshow for it.

Senator Michael Bennet, (D-CO), (Greenely Gazette, August 21, 2010)

BACKGROUND

As Democrats try to sell their Recovery Summer, more Americans are becoming concerned about the state of the nationseconomic health as they feel the impact on their family budgets. An August 24, 2010 Reuters IPSO Pollshowed that the

economy is a core concern for Americans, with almost three-quarters (72 percent) of Americans 'very concerned' about jobs.

The poll also showed that 62 percent of Americans now think the country is on the on the wrong track. With unemployment

hovering near 10 percent and a housing market that continues to deteriorate, it is clear that the Democrats economic policieshave failed.

RECOVERY SUMMER?

Increased Jobless Claims: While the nations unemployment rate has stood at or above 9.5 percent for the past 12 months,

on August 26, 2010, the Bureau of Labor Statistics delivered more troubling news. In its weekly uninsured claims report, BLS

indicated that the four week moving average of initial unemployment claims rose by 3,250 to 486,750. According to Dow JonesNewswire, This increase is the highest level since November 28, 2009Other economic indicators also point to sluggish growth

in the months ahead. Recent data showed new and existing home sales plunged in July and durable-goods orders remained

weak, heightening concern that broader economic activity is deteriorating.

Where are the jobs? On August 26, 2010, theAssociated Pressreported, The jobs crisis is putting more Americans at risk oflosing their homes. One in 10 households has missed at least one mortgage payment, and more than 2 million homes have

been repossessed since the recession began. Few expect the outlook to improve until companies start to hire steadily again and

layoffs ease.

GDP Downgraded: On August 27, 2010, FoxNews.comreported, The Commerce Department is revising downward the

economic growth from April to June to 1.6 percenta decline from the original 2.4 percent forecast and much slower than the

3.7 percent of the first quarter 2010.

Record Deterioration in Housing Market: On August 24, 2010 theAssociated Pressreported, Sales of previously occupiedhomes in the United States fell 27 percent in July, the weakest showing in 15 years, the National Association of Realtors saidTuesday. It was the largest monthly drop in the four decades that records have been kept.

Failed Home Foreclosure Mitigation Plans: On August 21, 2010, the LA Timesreported, Just as the housing marketrecovery has stalled, so has the Obama administration's main program to ease home foreclosures. Only 36,695 homeowners

received permanently lowered mortgage payments in July through the much-criticized Home Affordable Modification Program,

the smallest increases since December, administration officials said Friday. And the number of people dropping out of theprogram continued to soar. Overall, nearly half the homeowners who entered the program since it launched in March of last

year have dropped out.

Low Consumer Confidence: On August 31, 2010, Bloombergreported, The rebound in U.S. home prices probably slowed,

while consumer confidence languished near a five-month low, indicating threats to the economic recovery are mounting,

economists said before reports todayRecord foreclosures, unemployment near a 26-year high and a plunge in sales followingthe end of a government tax credit will probably pressure home values in coming months. Further erosion in home equity may

undermine Americans confidence and limit consumer spending, which accounts for about 70 percent of the economy.



9/15

Democrats Recovery Summer MathExcessive Spending + More Regulation + Higher Taxes = Fewer Jobs

September 1, 2010

Jobs must be our Number One focus in 2010.President Obama, State of the Union address, January 2010

BACKGROUND

As Democrats Recovery Summer comes to an inglorious end, it is worth examining the policies that have achieved an

unemployment rate that has stood at or above 9.5 percent for 12 straight months coupled with a $2.2 trillion deficit. Given the

track record of the economic meddling of the Democrats, Americans are rightly fearful that the country cannot withstand moreof these destructive policies. Whether environmental regulation, financial reform, or health care restructuring, the sum total of

Democrats efforts is decreased confidence in the economy and jobs lost. Economics 101 teaches that expanded capacity andgrowth (i.e. job creation) comes from increased investmentby the private sectornot deficit spending by the government.

Democrats instead borrow more dollars, raise taxes, and burden entrepreneurs. The results are not surprising.

ISSUES OF CONCERN

Financial Re-RegulationKills Jobs: Democrats and White House officials were euphoric about passage of the [Wall

Street Reform and Consumer Protection Act], according to the New York Times. This attitude may have seemed outlandish to

members of the Business Roundtable (BRT), an organization of 170 companies that generate more than $6 trillion in revenues

and employ 12 million people. One month before the July 2010 passage of the law, the BRT, in conjunction with the BusinessCouncil, sent a report to President Obamas Director of the Office of Management and Budget warning that the laws margin

requirement on over-the-counter derivatives could be expected to reduce capital spending by $5 billion to $6 billion per year,leading to a loss of 100,000 to 120,000 jobs. This dour assessment supplemented George Mason University Professor Joshua

Wrights research indicating the laws credit restrictions would reduce net new job creation in the economy by 4.3 percent

(about 60,000 fewer jobs every year).

Environmental RegulationKills Jobs: The Obama administration has spared no energy exerting executive authority over

the environment. This expansion of power is not without costs. The House Committee on Small Business heard testimony last

month regarding the Environmental Protection Agencys (EPA) proposed rule to regulate disposal and management of CoalCombustion Residuals, one of which, coal ash, is a critical component in the production of ready-mix concrete. The owner of

Bross Construction, a small, family-owned business testified: [T]he lowered costs of producing ready mix concrete allow us to

invest scarce resources elsewhere, such as employee benefits, updated equipment and an expanded workforce. Referring to

the increased liability exposure from EPAs needless designation of the ash as hazardous, Jeffrey Bross stated, [T]his can

translate into financial destruction for our business and our employees. More damaging, however, is the administrationsdeepwater drilling moratorium in the Gulf of Mexico, which administration officials estimated would cost roughly 23,000 jobs,

but went ahead with the ban, according to the Wall Street Journal.

Health Care ReformKills Jobs: Only five months after Obamacare was signed into law, the fruits of Democrats labor are

becoming apparent. Governmental efforts to remake the health care sector are having an immediate effect. August 20, 2010HealthAlliance Hospital (Leominster, MA) cuts 50 jobs August 24, 2010HealthMarkets (North Richland Hills, TX) lays off 70 employees, expects to trim 180 more August 25, 2010Childrens Hospital (Minneapolis-St. Paul, MN) eliminates 200 to 250 jobs

This list is not exhaustive, and the circumstances of the employers are not disparate. All three organizations attributed thedecisions to lower reimbursement from health plans and government programs or related legislative developments.

TaxesA Thought Experiment: The Joint Committee on Taxation estimates a $3.9 trillion tax hike is set to take effect on

January 1, 2011, if Democrats do not pass legislation extending expiring tax cuts. In addition to reduced expensing limits andhigher tax rates on dividends and capital gains, the increased individual income tax rates will directly impact the 75 percent of

small businesses owners that file under individual rates (akapass-through entities). Any guess what this change will do to

employment prospects?

For more information or questions please contact Jon Hiler at 3-4847.


10/15

Recovery SummerDemocrats Claims vs. Americas Realities

September 1, 2010

Welcome to Recovery

Treasury Secretary Tim F. Geithner, (Op-Ed, August 3, 2010)

CLAIM #1 A January 2009 report authored by Christina Romer, President Obamas chief economist, and Jared

Bernstein, Vice President Bidens chief economist and economic policy advisor, predicted that the $814 billion stimulus bil

would keep unemployment below 8 percent.

AMERICAS REALITY: Since the stimulus was signed into law, the unemployment rate reached a 27 year highof 10.2 percent. Currently, the unemployment stands at 9.5 percent and has not dropped below 9.5 percent in12 months.

CLAIM #2 On February 17, 2009, President Obama stated, [W]hat makes this recovery plan so important is not justthat it will create or save 3.5 million jobs over the next two years...It's that we are putting Americans to work doing the

work that America needs done...

AMERICAS REALITY: Since the presidents stimulus was signed into law, 3.6 million jobs have been lost andthe economy has experienced a net loss of nearly 2.6 million jobs. There are currently 15 million Americans

unemployed and looking for work. Millions more have given up looking for a job and are no longer included inunemployment statistics.

CLAIM #3 On July 1, 2009, President Obama stated, The Recovery Act [stimulus plan] was designed to make sure

that local school districts didnt layoff teachers and firefighters and police officers, and its done its job.

AMERICAS REALITY: On August 6, 2010, Speaker Pelosi called members of the House of Representativesback from their district work period to approve a $26.1 billion federal bailout for states. The bailout included $10

billion to be used for teacher salaries and state education budgets. Speaker Pelosi stated, Democrats will returnnext week to save or create hundreds of thousands of jobs for our teachers, nurses, firefighters and police

officers Its clear that the Democrats original stimulus plan failed to do its job.

CLAIM #4 On September 24, 2009, Vice President Joe Biden stated, In my wildest dreams, I never thought it [the

stimulus plan] would work this well.

AMERICAS REALITY: According to the Bureau of Labor Statistics, the rate for underemployment in July 2010was 16.5 percent. Gallupsmonthly measure was even higher. According to Gallup, underemployment was 18.4

percent in July 2010. Gallup'sunderemployment measure includes both Americans who are unemployed andthose working part time but want full-time work.

CLAIM #5 On July 2, 2010, President Obama stated that the economy is headed in the right direction.

AMERICAS REALITY: While the unemployment rate stands at nearly 10 percent, on August 19, 2010, theDepartment of Labor reported that the initial claims for unemployment benefits rose to 500,000, up 12,000 from

the previous week. On August 26, 2010, the Department of Labor delivered more troubling news. In its weeklyuninsured claims report, the Department of Labor indicated that the four week moving average of initialunemployment claims rose by 3,250 to 486,750. According to Dow Jones Newswire, this increase in the four

week moving average is the highest level since November 28, 2009.



11/15

Recovery SummerDemocrats Claims vs. Americas Realities (Pt. 2)

September 2, 2010

Everybody agrees that the recession is over.

Larry Summers, (ABCs This Week, December 13, 2009)

CLAIM #1 On October 31, 2009, President Obama stated, The Recovery Act is saving and creating jobs all across the

country.

AMERICAS REALITY: According to the Bureau of Labor Statistics data,forty-three states currently have higheunemployment rates than when the Democrats approved their $814 billion stimulus plan in February 2009. Two

states currently have the same unemployment rate as in February 2009.

CLAIM #2 On December 1, 2009, House Speaker Nancy Pelosi stated, The Recovery Act is likely producing evenmore jobs and higher economic growth than originally thought.

AMERICAS REALITY: On August 9, 2010, the Navy Timesreported, The few jobs being created in a stagnanteconomy do not seem to be going to veterans, as the unemployment rate for former service members rose in

July to 8.4 percent overall and to 11.8 percent for Iraq and Afghanistan-era veteransThe situation for veterans

remains worse than it was one year ago, according to the Labor Departments Bureau of Labor Statistics, whichreports that in July 2009 the unemployment rate for all veterans was 7.9 percent and that the rate for people

who served since September 2001 was 9.8 percent.

CLAIM #3 On September 3, 2009, Vice President Joe Biden stated, [T]here's a growing consensus: The Recovery Act

is, in fact, working.

AMERICAS REALITY: On August 24, 2010, the National Association of Realtors announced that the sale ofpreviously occupied homes dropped 27.2 percent in the month of July 2010. According to theAssociated Press,this represents the largest monthly drop in four decades.

CLAIM #4 On July 2, 2010, President Obama, in a speech regarding the dismal unemployment numbers for June2010, stated, Make no mistake about it, we are headed in the right direction.

AMERICAS REALITY: The Commerce Department, on August 27, 2010, revised its estimate for economicgrowth in the April-to-June period to 1.6 percent. Gross domestic product growth was previously estimated at

2.4 percent. This anemic growth will not prevent the unemployment rate from rising and raises the prospect of a

double dip recession.

CLAIM #5 On August 24, 2010, Vice President Joe Biden, speaking on the economy, stated, But there isnt any

doubt, we are moving in the right direction.

AMERICAS REALITY: On August 27, 2010, Reutersreported, Federal Reserve Chairman Ben Bernanke saidon Friday the economic recovery has weakened more than expected and the Fed stands ready to act if needed to

spur slowing growth. Rather than touting a strong economic recovery, Bernanke stated, The committee isprepared to provide additional monetary accommodation through unconventional measures if it provesnecessary...



12/15

Recovery SummerDemocrats Claims vs. Americas Realities (Pt. 3)

September 3, 2010

The Recovery Act has worked.

House Speaker Nancy Pelosi, (SFGate, June 5, 2010)

CLAIM #1 The Democratic-led Congress continues working to create American jobs and strengthen the economy because

we must bring down the unemployment rate and restore American job security. Speaker Pelosi

AMERICAS REALITY: Since the nearly $1.2 trillion stimulus plan became law in February 2009, the unemploymentrate reached a 27 year high of 10.2 percent. On September 3, 2010, the Bureau of Labor Statistics reported that the

nations unemployment rate for August 2010 rose from 9.5 percent to 9.6 percent. Unemployment has been above

nine percent for 16 consecutive months.

CLAIM #2 On January 22, 2009, Speaker Pelosi stated,[The stimulus plan] is a crucial first step in a concerted effort that

we have to jumpstart the economy. It will create jobs immediately, and it will also lay the foundation for economic stability as

we go forward.

AMERICAS REALITY: On August 17, 2010, Reutersreported, U.S. bankruptcy filings have reached the highest levelsince 2005There were 422,061 bankruptcy filings between April and June, according to the Administrative Office ofthe U.S. Courts, up 9 percent from 388,148 in the prior three-month period, and up 11 percent from 381,073 a year

earlier. For the year ended June 30, there were 1.57 million bankruptcies, up 20 percent from 1.31 million a year

earlier. Consumer bankruptcies rose 21 percent to 1.51 million, and business bankruptcies rose 9 percent to 59,608.Quarterly filings surpassed 400,000 for the first time since a record 667,431 bankruptcies were begun in the fourth

quarter of 2005...

CLAIM #3 On March 10, 2009, Speaker Pelosi stated, The choices that were made in it [stimulus plan] were to create jobs,jobs, jobs and jobs and jobs as soon as possible and jobs over a period of time to stabilize the economy.

AMERICAS REALITY: On August 5, 2010, FoxNews.comreported, The number of Americans receiving federal aidthrough the Supplemental Nutrition Assistance Program, commonly known as food stamps, soared to a record 40.8

million in MayBut according to U.S. Department of Agriculture figures, the number of people on the food stamp rollshas been growing to record levels for 18 straight months. Nearly $5.5 billion in aid went out to beneficiaries in May

alone. The number of May recipients marked a 19 percent increase from a year ago.

CLAIM #4 On May 5, 2010, House Speaker Nancy Pelosi stated, It is all about a four-letter word: jobs, jobs, jobs, jobs. Weare all about jobs.

AMERICAS REALITY: On August 30, 2010, the USA Todayreported, Government anti-poverty programs that havegrown to meet the needs of recession victims now serve a record one in six Americans and are continuing toexpandMore than 50 million Americans are on MedicaidThat's up at least 17 percent since the recession began inDecember 2007Close to 10 million receive unemployment insurance, nearly four times the number from 2007.

CLAIM #5 On January 8, 2009, Speaker Pelosi stated, [F]iscal discipline will be part of everything that we do. And fiscal

discipline requires us not only to rein in the spending, but to account for it and to make sure we're getting the results the

American people or the taxpayer has paid for.

AMERICAS REALITY: The Congressional Budget Office (CBO) predicts that 2011 will be the third straight year of $1trillion deficits. According to estimates from the CBO and the Census Bureau, each Americans share of the

governments public debt burden is projected to increase by $250,560 over the next 40 years. The national debt iscurrently over $13 trillion.



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As Democrats Promote Recovery Summer, Their Energy Policies Destroy U.S. JobsSeptember 9, 2010

Even as the Democrats much-hyped Recovery Summer continues to demonstrably fizzle, the Obama administration andDemocrats on Capitol Hill are intent on killing American jobs through misguided energy policies. Below are a few of theways Democrats have or plan to hamstring job creation in the U.S.:

Higher Taxes on American Energy: WashingtonDemocrats have not been coy about their desire to tax Americanenergy, which would undermine the nations anemic economic recovery and send jobs overseas. President Obamas

climate czar, Carol Browner, floated the prospect of Congress voting to approve climate change legislationa nationa

energy taxduring a lame-duck session after the November 2, 2010 elections. Labor unions and well-heeledenvironmentalists are now stepping up lobbying efforts across the country to push for a lame-duck national energy

tax bill. So what exactly do Americans have to look forward to in a lame-duck national energy tax? According to an

analysis by the Heritage Foundation, a bill similar to the House-approved cap-and-tax legislation would cause thefollowing negative consequences:

Cumulative gross domestic product (GDP) losses of $9.4 trillion between 2012 and 2035;

Single-year GDP losses reaching $400 billion by 2025 and ultimately exceeding $700 billion;

Net job losses approaching 1.9 million in 2012 and 2.5 million by 2035;

1.4 million manufacturing jobs lost by 2035;

An increased cost of $829 a year for energy utilities for a family of four;

Gasoline prices would increase 58 percent; and

Average household electric rates will increase by 90 percent.

Just before leaving town for the August district work period, House Democrats voted to approve the CLEAR Act. The

CLEAR Act would increase the cost of energy, increasedependence on unstable sources of foreign oil, and killthousands of American jobs, according to IHS Global Insight. It imposes new taxes on oil and natural gas produced

domestically on all federal drilling leases. The tax would be $2 per barrel of oil and 20 cents per million British

thermal units of natural gas. Those costs would eventually be passed on to American consumers of energysmallbusiness owners, families, and farmers. It is estimated that the tax would total $22 billion in ten years, and the taxes

would eventually climb to $3 billion per year. Of course, this new tax would only apply to American energy, giving a

distinct advantage to foreign oil and gas companies and jeopardizing American energy jobs. The legislation iscurrently awaiting consideration by the Senate.

Latest Lame (Duck) Idea, theNational Renewable Energy Standard: Under pressure from environmentalistsand liberals within his caucus, Senate Majority Leader Harry Reid (D-NV) said this week that a job-killing renewable

energy standard (RES) is absolutely still in the mix for a lame-duck session of Congress.

A national RES is a federal mandate requiring electric providers to derive a certain amount of their production fromrenewable sources (typically wind, solar, geothermal, and biomass). Most incomprehensibly exclude nuclear power (a

greenhouse gas neutral technology) from the list of approved renewable sources. The cap-and-tax bill, approved by

the House of Representatives, included a federal RES calling for a 20 percent renewable energy and energy efficiencystandard by 2020. Last year, the Senate Energy and Natural Resources Committee approved a less stringent RES.


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Many Republicans have expressed concerns with a national RES:

Higher Electricity Prices: A national RES would likely cause electricity prices to spike. The Heritage

Foundation estimates a 36 percent increase in energy prices for households and a 60 percent increase fo

industry. The RES would not necessarily preempt state renewable electricity standards (at least 29 statehave one), but would, instead, force utility companies to comply with both state and federal programs.

Many state programs include resources that would not be eligible under the federal standard. If

renewable energy was currently cost effective and efficient, there would be no need to federally mandateand subsidize it. A national RES would do just that, putting the current renewable energy market under

the control of an extremely inefficient bureaucracy.

Further Drags Down the Economy, Kills Jobs: According to the Heritage Foundation, a national RES

would cut national income (GDP) by $5.2 trillion between 2012 and 2035, cut income by $2,400 per yearfor a family of four, and reduce employment by more than one million jobs.

Regional Disparities: Members may be concerned that a RES would impose a uniform federal standardon states despite varying sources of renewable resources. For instance, southeastern states would be

especially hard hit. In addition, forcing a RES on states that lack renewable energy supplies wouldtransfer wealth between states in the renewable energy market. A RES would also disproportionallyaffect low-income states that have yet to invest in renewable energy, and whose budgets are already

being stretched by the economic downturn.

Out of Control EPA: The Environmental Protection Agency (EPA) has waged a non-stop assault on U.S. jobs andcompetitiveness. In 2009, the EPA issued an endangerment finding stating that six greenhouse gases, including

carbon dioxide, threaten public health and welfare under the Clean Air Act. This finding was intended to pave the

way for EPA regulations on greenhouse gas emissionsanother backdoor national energy tax. Due to politicalpressure, the EPA has attempted to minimize the economic impact of the endangerment finding for small business

entities by issuing a tailoring rule. The tailoring rule temporarily raises the pollution thresholds in the Clean Air Act.

However, the tailoring rule stands on uncertain legal ground, and it expires in 2016. Afterward, an unaccountableEPA could inflict a massive amount of economic pain by increasing the costs of energy for all consumers, including

businesses and farms.

Another job-killing EPA action includes reconsidering national air standards for ground-level ozone, the primaryconstituent of smog. The EPA has proposed to significantly tighten the standards that were adopted less than two

years ago, without new data prompting this reconsideration. The EPA estimates that its new ozone proposal could

add as much as $90 billion per year to the high costs of operating a business. Those costs would be passed on toconsumers.

The EPA has also taken job-killing actions against agriculture, the coal industry, and many other sectors of the U.S.economy. These misguided policies come at a cost of thousands of U.S. jobsfar too high a price to pay for political

favors as the economy attempts to recover in spite of Democrats failed economic agenda.

Increased regulation, mandates, and higher taxes on the U.S. energy sector adds up to fewer jobs at a time when almost10 percent of Americans are out of work. It is clear that the Democrats Recovery Summer is a failure. To create jobs,

the Obama administration should jettison their onerous regulation of American energy production and instead pursue ajob-creating all-of-the-above energy plan.

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Staff Contact: For questions or more information, please contact Adam Hepburn at 6-2302.


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Recovery Summer by the Numbers

September 3, 2010

$1,161,000,000,000: The total cost of the Democrats stimulus. CBO estimates the cost of the bill will reach $814

billion and interest on the debt for the bill will be at least $347 billion.

9.6%: The unemployment rate for the month of August.

283,000: The number of jobs lost in June, July and August 2010.

16.7%: The rate of underemployment in August. This accounts for the unemployed, those unable to find full-time

work and those discouraged from looking for work.

14,860,000: The number of unemployed Americans looking for work in the month of August.

7.9%: The level at which President Obama claimed unemployment would peak if the stimulus was passed.

3,582,000: The number of gross jobs lost since the Democrats stimulus was signed into law.

33.6: The average number of weeks that job seekers have been unemployed.

8,860,000: The number of Americans who are working only part-time because they cannot find full timeemployment.

2,370,000: The number of unemployed Americans who want work, but who have stopped looking because of the

state of the economy.

6,249,000: The number of Americans unemployed and searching for work for more than 27 weeks.

1,259,000: The number of job seekers that are new entrants to the workforce and have yet to find a job.

26.3%: The unemployment rate among job seekers between the ages of 16 and 19.

16.3%: The unemployment rate among African Americans.

12%: The unemployment rate among Hispanics and Latinos.

1.6%: The lethargic level of GDP growth in the second quarter of 2010down more than 2 percent from the first

quarter of 2010 and 3.4 percent below the fourth quarter of 2009.

698,000: The number of manufacturing jobs lost since the stimulus was signed into law.

45.4%: The percentage of people between the ages of 16 and 24 years old with a job. Prior to the stimulus,employment among 16 to 24 year olds had never slipped below 47.5 percent.

Staff Contact: Andy Koenig, [email protected], (202) 226-2302

First, and most obviously, the economy is doing much better today than it was when I last

testified to the JEC in October 2009. At that point, we were just beginning to see the signs ofrecovery.

Christina Romer, Chair of the Presidents Council of Economic Advisors, July 14, 2010

Documents

House GOP Caucus Recovery Summer