[Congressional Record (Bound Edition), Volume 147 (2001), Part 17]
[House]
[Page 24230]
[From the U.S. Government Publishing Office, www.gpo.gov]



           TRULY STIMULATIVE ECONOMIC STIMULUS PACKAGE NEEDED

  The SPEAKER pro tempore (Mr. Schrock). Under a previous order of the 
House, the gentleman from Texas (Mr. Hinojosa) is recognized for 5 
minutes.
  Mr. HINOJOSA. Mr. Speaker, I rise today in support of an economic 
stimulus package that will benefit the growing number of unemployed and 
uninsured Americans and will thus be truly stimulative, while also 
fiscally and socially responsible.
  As a long-time businessman, I can tell you that an economic recession 
results from a lack of demand for the goods and services that 
businesses produce. Our Nation is not suffering from a recession 
because businesses lack available workers, technology or equipment, but 
because they lack demand for their products.
  However, the House has passed an economic stimulus bill composed 
largely of tax cuts and payments from large corporations that would do 
nothing to increase demand for their products and would have no 
stimulative effect in the near future.
  If we are to stimulate the economy and end the recession, Congress 
must pass an economic stimulus bill that creates new jobs and provides 
assistance to unemployed workers. In doing so, we not only provide 
assistance to those in need, but we truly stimulate the economy by 
putting money into the hands of those people who are most likely to 
spend it immediately. This approach increases demand for goods and 
services, causing businesses to employ more workers and invest in more 
capital.
  Mr. Speaker, some of the cash-rich multinational corporations that 
would receive billions of dollars from the House-passed economic 
stimulus bill have publicly stated that they have no plans to increase 
the amount they invest in plants, in workers and in new products. 
Writing large checks to these corporations does not stimulate the 
economy.
  However, I can assure you that there are many vital projects in 
Congressional districts such as mine that are ready to be funded and 
would create badly needed jobs now. This kind of real economic stimulus 
would greatly improve the economy, the infrastructure and quality of 
life for countless Americans. Additionally, there are large numbers of 
unemployed workers who are anxious to enter the labor market and to 
earn money that they can spend on basic needs right now, providing an 
immediate stimulus to the economy.
  Let us look at this employment chart. As you can see, Mr. Speaker, 
Hidalgo County, which is in my South Texas Congressional district, has 
seen its unemployment rate decrease substantially in recent years from 
the nearly 20 percent rate of unemployment in the past. However, even 
during the 10 year period of prosperity, from 1990 to the year 2000, 
and during the same period of lowest national unemployment, Hidalgo 
County's unemployment rate did not fall into a single digit.
  Let us look at this Hidalgo County population growth chart. As the 
recession deepens and the population continues to explode, as shown in 
this chart, thousands of workers are likely to join the tens of 
thousands who are already desperately looking for jobs. These people 
constitute a potential source of economic stimulus should they be 
brought into the workforce to earn and spend their money.
  If we do not reverse the course that the House of Representatives has 
taken, the exploding population and high unemployment rate in counties 
such as Hidalgo County will stretch available resources. If thousands 
of unemployed workers do not receive assistance, they will lack the 
basic necessities to receive health care, to send their children to 
school and to obtain housing and transportation. This situation only 
spirals downward to make it even more difficult for a large segment of 
the population to enter the workforce and fully contribute to the 
Nation's economy.
  Congress has a chance to do something meaningful for the economy and 
the people of this Nation. Our economy is in recession because of 
insufficient demand. Creating jobs by funding needed projects and 
providing assistance to unemployed workers puts money in the pockets of 
people who will put it back into the economy immediately, stimulating 
demand and giving the economy an immediate boost.
  However, writing a $1 billion check to a multinational corporation 
with over $8 billion in unused cash on its books does not increase 
demand, it does not stimulate the economy, and it is not fiscally 
responsible. In fact, firms that are faced with reduced demand for 
their products will lay off workers, regardless of how much cash they 
have.
  In closing, Mr. Speaker, funding for any stimulus package will now 
come directly from the Social Security trust fund. Therefore, the 
stakes are incredibly high. We must pass the most socially and fiscally 
responsible economic stimulus possible. We must ensure that every 
dollar we spend goes to those who need it most, and to those who will 
most quickly and efficiently put it back into the economy.

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