Cantor says Obama’s economic programs are not working
Rep. Eric I. Cantor, R-7th, delivering the response to President Barack Obama's weekly radio and video address, said today that Obama's economic programs "have not produced jobs, have not produced prosperity and have not worked."
Obama had said in his address that the $787 billion stimulus program must be given a chance to work before consideration is given to a second such jolt for the still-ailing economy.
"We must let it work the way it's supposed to, with the understanding that in any recession, unemployment tends to recover more slowly than other measures of economic activity," the president said in his recorded message.
Cantor, the GOP whip in the House of Representatives, said Republicans have offered an alternative economic plan that would have revitalized small businesses and helped middle-class families.
The Henrico County resident urged the listening audience to call their congressional representative and the president and "let them know that you think Washington should stop the reckless spending, stop the careless borrowing and stop the war on the middle class."
As the second ranking Republican in the House, Cantor has become one of the leading critics of Obama and the stimulus.
"This is now President Obama's economy and the American people are beginning to question whether his policies are working," Cantor said.
He said tax rates should be reduced so taxpayers will see "an immediate increase in their income."
"We believe Washington must stop targeting America's small businesses and instead should empower them by allowing employers to take a tax deduction to free up funds to retain and hire new employees," he added.
The Associated Press contributed to this report.
Reader Reactions
“that’s how the Bush people engineered this fiscal disaster”...LOL…Sure Bush spent like a drunken sailor, in an overreaction perhaps, but you’re blind as a bat if you don’t see any fault with the democrats. You’re saying this crash had no help from barney frank or the other leftists, who do every thing they can to increase the amount of government spending every chance they get, except when it comes to defense? The only way to cut spending (assuming you see it as a problem) is to starve it with tax cuts. Neither party has spending discipline, but the dems are worse. They gave us medicare, welfare and social security. Look up the spending for your self some time on those programs. The Dems have been chipping away at the Reagan solution for 29 years now, and it’s finally had an effect. Barney & co.‘s subprime lending was welfare un-reform, becuase a government-backed mortgage is welfare to a borrower in default. Their relentless push for government interference with the free market (i.e. proping up unions at GM and turning it into an unsustainable retirement community) are the actions of saboteurs who hate capitalism. Bush might have weakened against the onslaught, but he didn’t want it to happen. - democrat congressmen are people who would want to see this country lose a war just to further the political battle for their nanny-state agenda. They fought the surge. They fought unsuccessfully against the tax cuts which revived the economy in the early 2000s, they made sure the cuts never got made permanent, and now we see the results of looming massive tax hikes in a year and a half when they expire.
Tax cuts or letting people keep their own money is not what caused this economy.Those that thnk otherwise might want to do a little research on
the sub-prime meltdown.
Even Obama must know tax cuts stimulates the economy and creates more permamnent jobs as he heralds the ‘enormous’ tax cut included in his spending bill.Isn’t evryone enjoying their $12 a week?Hate to tell you but you’ll probably have to give it back on April 15.
If Obama would cut personal and corporate taxes, reduce capital gains tax, and STOP spending or wasting taxpayer dollars , the economy would roar back into life.Right now everybody who could invest is too uncertain about future tax increases to be motivated to invest.So we all sit here with our money under the mattress.
Under JFK, under Ronald Reagan, AND under George W. Bush tax revenue and economy grew at a steady pace AFTER tax cuts,proving the most vital part of the American economy is the American consumer,NOT the government.
Government or Fortune 500 companies?
I vote government put us in this situation, both the left and the right.
Year Gross Debt in Billions
1910 2.6
1920 25.9
1930 16.2
1940 43.0
1950 257.4
1960 290.5
1970 380.9
1980 909.0
1990 3,206.3
2000 5,628.7
2001 5,769.9
2002 6,198.4
2003 6,760.0
2004 7,354.7
2005 7,905.3
2006 8,451.4
2007 8,950.7
2008 9,985.8
2009 (est.)12,867.5
2010 (est.)14,456.3
2011 (est.)15,673.9
2012 (est.)16,565.7
2013 (est.)17,440.2
2014 (est.)18,350.0
That’s right kids…uncle obama will make it okay…here drink some more koolaid on your way to Jonesboro
If Cantor can make people beleive the stimilus that is a 2 year plan has failed in 6 months while saying the money has not even gotten into the ecomomy, and hope that logic flies…all I can say is “good luck with that”. They would be better served to point out the benefits of the tax cuts that were included in the package. The way they are playing this game they will not receive any of the credit when the ecomony turns around. The Republican party does not have a strategy in dealing with this President, and they are setting themselves up to be eviserated in 2010.
“Massive tax cuts are needed” ... LOL… that’s how the Bush people engineered this fiscal disaster. And Cantor was on board (including the bailouts) until the day Bush left office.
Counsel from such as these may safely be ignored…
Kant,
Think of it this way. Consumers weren’t the only ones addicted to debt. Fortune 500 companies routinely operated their businesses with commercial paper and short term borrowing. If this dose of reality forces them to live off their cash flow, it changes everything.
Gone are the days when businesses used all their cash to buy back stock and pay dividends.
If both businesses and consumers start to live within their means, that is a very good thing.
massive tax cuts are needed - not just income tax - and Obama will never be able to bring himself to admit it. He believes in central planning.
Anon, your points are right as far as they go but they don’t go very far. Yes the ‘savings’ rate is ‘up’ but that means people and businesses are desperately trying to reduce their debt burden due to decreased availability of credit, reduced
wages and hours and business activity.
The shoes yet to fall are housing, commercial real estate and the effects of declining incomes and credit intensity in the US economy.
Item. 3.1 million homes expected to be foreclosed on this year. Number of people upside down on their home loans.
22.5 million. Given the first figure the second figure can only be expected to grow as banks have to start disposing of the massive stock of REO they are accumulating.
Item: work week at lowest levels on record, unemployment still rising with no end in sight. Incomes down. Tax revenue down, deficits up.
Item: commercial real estate securitization market gone. Refinancing impossible, prices and rents collapsing.
FDIC ‘watch’ list numbers 300 banks and the biggest like BofA, Wells Fargo, Citi are zombies living on only as long
as the FDIC guarantees their debt and the accounting rules are not enforced.
Item: Structural deficits combined with Obama’s insane efforts to expand government programs are causing record fiscal deficit while, due to shrinking world trade and consumer demand our trade deficit is shrinking. Result more
Treasury debt supply, less foreign demand. At some point this excess supply will choke even the Fed’s ability to buy it.
Kant,
The credit bubble has already collapsed - happened last November. Now there is a mountain of “free” money floating around the world and the Treasury is taking advantage of it. Businesses have absolutely stopped borrowing and are paying back loans just to prove they can. Large multinationals are bragging that they can live off their cash flow. Unheard of a year ago! This creates an international cash surplus.
The US savings rate has more than doubled in 9 months. If we can’t break open our mortgage piggy-bank every 3 years, we’ll have to start saving the old fashioned way.
The government can sell Treasuries at incredibly low interest rates because of this pile of “cash on the sidelines”. The market is telling us that these are good investments. And itt drives doom-sayers absolutely crazy.
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