WASHINGTON - U.S. Rep. John Spratt (D-SC) issued the following statement on the President's economic policies. The President is scheduled to speak today in Milwaukee about the state of the economy.
"The President speaks today in Milwaukee about the state of the economy, at a time when the Conference Board has just reported a six percent drop in consumer confidence. Job anxiety is cited as the major cause. The Administration continues to claim that a recovery in the job market is just around the corner, but ordinary Americans have yet to see it. What Americans see instead is an economy that has lost 3.2 million jobs in the private sector. Reinforcing this news, the Census Bureau reported last week that the poverty rate has risen for the second year in a row, and median household income has declined to a level below that of 1998 in inflation-adjusted dollars.
"The Administration's tax cuts have not created jobs as promised, but they have created huge deficits that will stifle growth in the future and burden our children and grandchildren with debt. A projected surplus of $5.6 trillion has vanished, replaced by a deficit next year of more than a half trillion dollars. The Administration dismisses these deficits as "manageable," but economists say otherwise. Chronic deficits reduce the nation's pool of saving and raise the cost of capital, which restricts productive investment. Meanwhile, deficits and debt service make it harder for the nation to attend to our priorities, such as Social Security, homeland security, and education.
"When Democrats spelled out our plan for a faltering economy, we stressed short-term stimulus and long-term balance. The Administration's polices have brought us neither."