Economic Stimulus Package

Floor Speech

ECONOMIC STIMULUS PACKAGE -- (House of Representatives - January 29, 2008)

The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Massachusetts (Mr. McGovern) is recognized for 5 minutes.

Mr. McGOVERN. Mr. Speaker, our economy is at a crossroads. Low- and middle-income families are struggling to make ends meet. Rising food, energy, and housing prices combined with slow job creation and lower wages are straining our economy. The Federal Reserve continues to act, but it is clear that Congress must enact a temporary, targeted, and timely economic stimulus package. The American economy needs a quick stimulus, and low- and middle-income Americans need swift action as our economy works through these difficult times.

I rise to commend the bipartisan leadership of Speaker Pelosi and Leader BOEHNER who, along with President Bush, crafted an economic stimulus package that will not only provide the assistance our economy needs, but also will provide a helping hand to the American families currently struggling with the slowing economy.

It is refreshing to see Republicans and Democrats come together and put partisanship aside and develop this critical legislation together. The American people should be proud of this effort, and I am pleased to have supported this important first step earlier today.

Mr. Speaker, while important, the stimulus package this House voted on today is simply a first step in the road toward stimulating our economy. Speaker Pelosi deserves incredible credit for negotiating the inclusion of a refundable tax rebate that will be delivered to anyone earning $3,000 or more and the inclusion of a $300 per-child rebate. Again, this is a good start.

Yet there are millions of Americans who will not benefit from this current stimulus package because they do not file income taxes. Any American who has exhausted or will exhaust their unemployment will not receive the help they need. States struggling with higher health care costs will be forced to balance their budgets on the backs of low-income individuals because there is no Medicaid assistance included in this package. And most importantly, a temporary extension of the food stamp program is sorely missing from this economic stimulus package.

Experts across the political and ideological spectrum agree that we must develop a plan that helps the most vulnerable people and households and that allows currency to flow. Former Reagan economic adviser, Martin Feldstein; former Clinton Treasury Secretary, Lawrence Summers; the Congressional Budget Office; economists at Goldman Sachs; and the chief economist at Moodys.com all agree that food stamps give the biggest bang for the buck and should be part of an economic stimulus.

According to the Congressional Budget Office: ``The vast majority of food stamp benefits are spent extremely rapidly. And because food stamp recipients have low income and few assets, most of any additional benefits would probably be spent quickly.''

Administrative costs of such an increase are negligible, meaning that the majority of this stimulus will go directly into the economy. A 10 percent temporary increase in food stamps would result in an increase of almost 50 cents per day per person or $14 per month in the food stamp benefit. That may not seem like much, but an extra 50 cents a day can make the world of difference for someone struggling to feed themselves.

More importantly, a temporary increase in food stamp benefits would generate $1.73 in economic activity for every dollar in cost, and we know that a temporary increase in food stamps can be delivered quickly and will be spent right away.

Mr. Speaker, this bipartisan economic stimulus package is not perfect. But as I said earlier, it is a good first step. The Senate has a chance to make some improvements in this bill, most notably targeted and temporary increases in food stamps and unemployment insurance. I, for one, hope the United States Senate acts responsibly by including these important programs in their version of the stimulus package.

It is critical that this stimulus package move quickly, but it is just as critical that it include stimulus that jump- starts the economy and gives assistance to those who truly need it.

And if the Senate includes funding for these critical programs, I strongly urge all my colleagues to support it, and I urge President Bush to then sign it into law. It is the right thing to do for our economy, and it is the right thing to do for the millions of low-income Americans who will not benefit from this stimulus package as it is currently written.

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