[Congressional Record Volume 156, Number 157 (Friday, December 3, 2010)]
[Senate]
[Pages S8448-S8449]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNEMPLOYMENT INSURANCE
Mr. BROWN of Ohio. Mr. President, I thank the senior Senator from
Montana, who laid out exactly why his efforts to extend the Bush tax
cuts to the middle class up to $250,000 and to not extend them beyond
that is the exact right public policy. It is good fiscal policy. It is
good economic policy. It is good for our country. It is exactly the
right thing to do. I thank him for his explanation of including the
earned-income tax credit, which is the best tax incentive to help
people who are working hard, playing by the rules, making $20,000 to
$30,000 a year, get a much fairer tax--really encouraging work the way
the IETC does.
I also thank the chairman of the Finance Committee, the senior
Senator from Montana, for including the unemployment insurance in this
because 85,000 Ohioans have lost their unemployment insurance. These
are people--or many of them are, as I have read letters on the Senate
floor and will read a couple today--who have worked for 20, 30, 40
years and simply can't find a job.
There are five people applying for every one job opening in my State
and in this country. It is so important that these people continue to
get some assistance. In spite of what some of my Republican colleagues
suggest, unemployment insurance is insurance, not welfare. Their
employer, on their behalf, pays into the unemployment insurance fund in
their States. When they lose their jobs, because it is insurance, they
should get assistance. It is like fire or health insurance. You don't
want to use it, but you want it to be there if you need it. That is why
it is so important. I appreciate Senator Baucus's discussion of why
this is the right policy.
Before I read some letters from people about unemployment benefits, I
want to talk about why that is the right policy. The Bush tax cuts
primarily went to the wealthy in 2001 and 2003. As Senator McCaskill
said, it was an experiment. For 10 years, we tried to see if this
worked. I didn't support that when it passed in the House many years
ago because I thought they were tilted toward upper income people and
not focused on the middle class. So it was an experiment in many ways
where major tax breaks were given to the rich, and according to the so-
called trickle-down economic theory, they would hire people and much
would trickle down and they would provide jobs and strengthen the
middle class.
What we saw during the Bush 8 years as the main thrust of the
economic policy was the tax break for the rich. That was the stated
policy; that if we cut taxes enough on the wealthiest Americans, it
would drive the economy forward. But we know that in those 8 years of
the Bush administration there was a 1 million net job increase, not
enough to provide jobs to keep up with the growing population or not
enough to provide jobs for the kids coming out of high school or those
leaving the Army or those coming out of college.
So it is clear the experiment failed. They cut taxes for the rich and
there was only a 1 million increase in jobs. It didn't work.
Look at the 8 years before that, the Clinton years--and these are
facts, not opinions--where President Clinton did a mix of tax cuts, tax
increases on the wealthy and spending cuts, and he balanced the budget.
We ended up with a 22 million job increase with that economic policy,
which we want to follow today, versus a 1 million job increase, which
was not even enough to keep up with the growing population with the
Bush economic policy.
It is clear what this means--not to mention what Senator Baucus
pointed
[[Page S8449]]
out too. We are, in essence, borrowing $700 billion from the Chinese to
pay for these tax cuts. That is where we borrow a lot of money. We are
talking about borrowing $700 billion and putting it on a credit card
for our children and grandchildren. The pages sitting here will get to
pay off that $700 billion in tax cuts for the rich, and then the $700
billion is given to the wealthiest taxpayers. So they want to borrow
from China, charge it to our children and grandchildren, and give it to
millionaires and billionaires.
What kind of moral policy, let alone the bad economic policy, is
that? It is bad fiscal policy to do anything but tax cuts for the
middle class. It is bad economic policy. It is not fair to our children
and grandchildren.
Also, I will make a comparison in this bill between unemployment
benefits, extending and maintaining unemployment benefits to the 85,000
families in Ohio who found out 2 days ago their unemployment insurance
was no longer. Some of those families will lose their homes, and a
father will have to sit down with his 12-year-old daughter and say:
Honey, we are going to lose this house and move somewhere else. The
child will say: What school district are we going to be in, Dad? He
would say: I don't know yet.
We know the hardship this will create if we don't extend these
benefits. These people want to go back to work and they are trying to
find jobs, but there are not enough jobs out there. They need money for
gasoline to drive around and look for jobs, and they need all these
things just to stay alive and have a decent standard of living. But
take the money in the unemployment extension--as John McCain's chief
economic adviser during his 2008 campaign said, $1 put into
unemployment benefits of a person in Zanesville or Lima or Hamilton,
OH, that father or mother, that man or woman will spend that money
because they need to. They need to buy shoes for their kids, food for
themselves; they need to heat their homes and put gas in their cars.
That money will be spent. Every dollar you put into unemployment
generates $1.60 in economic activity, and that will create jobs.
Conversely, a dollar in tax cuts for the wealthy--a dollar that goes
to a millionaire--what are they going to buy that they are not already
buying? They meet their needs. They have millions of dollars at their
discretion to do it. They are not going to buy more food or go to a
fancy restaurant or take an extra vacation. They have the money they
need. That $1 going to the wealthy, according to the analysis of John
McCain's chief economic adviser, ends up generating about 30 cents in
activity and creating significantly fewer jobs.
I want to read a couple of letters from people in my State of Ohio
about what this legislation means in terms of unemployment benefits.
This is from Shanata from Montgomery County, in the Dayton area:
I have been out of work since February and have been
receiving unemployment benefits. I am 36 years old and have
been working since I was 16.
This is par for the course in the letters we get. These people have
been working hard since a very young age.
I have applied for 100 jobs in the past month alone, and
have found absolutely nothing. If unemployment stops, I will
have even less. I am in school full-time, but I know that I
can't return in January since I will have absolutely no way
to pay my bills. Unemployment is not allowing me to go on
trips, eat out every day, shop 'til I drop, or anything else
frivolous. I just need to keep a roof over my head and food
in me and my daughters' stomachs. Please work diligently to
help extend unemployment for those who will have nothing
without it.
This is Dagney from Lorain County, my home county, between Cleveland
and Toledo:
Please, Senator, please do everything you can to get the
unemployment extension passed. I have been unemployed for
more than a year and have not found a job yet. We are two
months behind on our mortgage and I am so afraid we are going
to lose our house. We have exhausted our savings and my
husband is off work too due to an accident. I am so worried.
Please help us.
This is from Carol from Summit County, in Akron:
I am writing for myself and thousands of other unemployed
Ohioans whose unemployment benefits are running out. We need
help.
Mr. President, again, 85,000 families lost their benefits in my State
alone three nights ago.
I am 61 years old and have been on unemployment since June
2010 and my benefits run out December 20. There are no
extensions at this time and there are no jobs for a senior
citizen with over 40 years of work experience. Believe me, I
have tried everything from Walmart to McDonalds. I have no
savings and lost what little retirement I had a couple years
ago with many others. I'm not asking for a handout--just some
help until the job market picks up out here. Please encourage
Congress to provide at least one more extension--without it,
many Ohioans will be destitute. I never thought when I was
raising my family as a single mom that I would find myself in
this position at this age.
I know my colleagues want to do the right thing. I believe even those
who vote no on everything that I believe in, I think they want to do
the right thing. I just wonder--I know they get letters like this
because every one of us--whether you are in Missoula or in Eugene or in
Dayton, every one of us gets letters from constituents in our States
who are hurting, even in States that have pretty good economies. I
don't know if they don't read them or if our colleagues never meet
people like this. I assume our colleagues probably don't visit food
pantries as I do, but some of my other colleagues do and hear the
stories. I don't know that I have been to a food pantry in the last 2
years where I don't hear a volunteer--and most of them are staffed by
all volunteers--or a paid director say: You know, see those people over
there? They used to bring food in, and now they are picking up food.
That is the story I hear time after time.
I don't think my colleagues are hard hearted or callous. I just
wonder if they know, or if they are hearing from, people like Carol and
Shanata and Dagney, or if they are not visiting food pantries and
stopping at a union hall and talking to an out-of-work carpenter or a
laborer who hasn't been called to a worksite for 7 or 8 months.
I have said to the majority leader that I think we should stay here
until New Years. I would rather be home with my family; family is very
important to me. But if we don't continue these unemployment benefits,
we are going to ruin the holidays for those 85,000 Ohioans--and that
number keeps growing--so we don't deserve much of a holiday either if
that is the best we can do.
I yield the floor and suggest the absence of a quorum.
The ACTING PRESIDENT pro tempore. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. BINGAMAN. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
Mr. BINGAMAN. Mr. President, I ask unanimous consent to speak as in
morning business for up to 20 minutes.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
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