[Congressional Record (Bound Edition), Volume 147 (2001), Part 16]
[House]
[Pages 23283-23284]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           ECONOMIC STIMULUS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Washington (Mr. McDermott) is recognized for 5 minutes.
  Mr. McDERMOTT. Mr. Speaker, the 8 million unemployed in this country 
must be watching the debate on economic stimulus in this House and in 
the other body with amazement and sadness. They are hardworking 
families who have struggled to pay their bills, and they now find 
themselves without work. They have worked hard, played by the rules, 
trying to build a better future for themselves and their families, and 
then have been laid off, both before and after September 11.

                              {time}  2230

  They are 137,000 workers in the transportation industry, 136,000 in 
the hospitality industry, 57,000 in the communications industry, 
226,000 in manufacturing, 14,000 in retail, 44,000 in the service 
sector, 30,000 people in my district at the Boeing company, and in 
finance and real estate, another 24,000.
  The overall jobless rate in this country shot up from 4.9 percent in 
September to 5.4 percent in October. In Washington State, it went from 
5.1 percent to 6.1 percent. That is a 20 percent increase in a month. 
Now, this does not reflect everything, because there are many families 
who are denied benefits because the rules have been changed over the 
last few years. And they, although they contributed, do not have access 
to these benefits, or they find it virtually impossible to find 
employment under the present economic conditions.
  This week, with several of my colleagues, we introduced H.R. 3741, 
the Putting Americans First Act, which will at once provide a short-
term enhanced safety net for those who lost their jobs. This bill 
empowers the States to expand unemployment coverage for 26 weeks, 
provide COBRA coverage, that is to cover premiums for health care and 
also to aid the State Medicaid benefit programs. It also addresses the 
needs of States whose welfare loads are increasing. Because every time 
we have a 1 percent increase in unemployment, the welfare load goes up 
between 5 and 15 percent.
  I urge my colleagues to go home to their States, talk to their 
people, and they will find out that these are the problems that are 
bothering them. People in this country are hurting and they are 
mourning. They are having trouble paying their rent, they are having 
trouble paying their heating bills, they are having trouble putting 
clothes on their kids and paying for schools, and certainly they are 
not ready for a medical emergency.
  Many States, however, are finding their own budgets in shambles 
because of the recession and because of tax bills that we passed in 
this House which took away some of their revenue. We have a situation, 
as described in The New York Times today, where 30 States are 
considering tax hikes or wide-spread cuts in benefits. Connecticut, 
this week, is $300 million in debt, and they are working in their 
legislature. Our legislature is working on a $1.2 billion cut. Infusing 
Federal money into these State programs through unemployment insurance 
and Medicaid will help the States continue some of the most important 
programs.
  Now, if we look at it, some States, Illinois, New York, North Dakota, 
West Virginia, Texas, do not even have enough money for 6 months of 
unemployment benefits, not even in their local funds. If we do not put 
some money in from the Federal Government, they are going to have to 
cut lots of people off. There are an additional 17 States that have 
less than a year.
  Now, crafting an economic stimulus package has been exceedingly 
difficult because it cuts to the heart of the difference between the 
Democrat and Republican core values. Here is the Republican argument: 
Corporations and entrepreneurs are the driving force in this country. 
They create the jobs. Tax incentives and cuts and rebates will directly 
help those groups, who will stimulate the economy.
  However, the reason corporations are not investing right now to 
create more jobs is not because they do not have enough cash on hand. 
Let us not kid ourselves. Lots of large companies have

[[Page 23284]]

cash. The reason they are not investing right now is because there is a 
lack of demand. If these companies manufacture products, not enough 
people buy them. The best way to create jobs is to provide unemployment 
insurance to laid-off workers so that they can buy the necessities of 
their life.
  Why is it we are told by our colleagues on the other side of the 
aisle that we do not have the money for these benefits for people? They 
say, well, we are just out of luck. But when we passed the budget here 
and we passed a stimulus package out of the House of Representatives, 
we could find $25 billion to give back taxes to the major corporations 
of this country, who have been paying them since 1986. We had the 
money.
  We should pass this bill and help these people at Christmas time. It 
is the American way.

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