Shifting Standards on Stimulus

By Congressman Pete Olson (R-TX)

Earlier this year, the new Administration and the Democratic majorities in the House and Senate joined together to craft an $800 billion economic stimulus package, the goal of which was to reinvigorate our slumping economy. At the height of hope and change sweeping Washington, DC, it was promised that this enormous amount of government spending would put us back on sure economic footing.

At the time, it was promised that the stimulus package would be timely, targeted, and temporary. All three have proved to be inaccurate. It isn’t timely when you consider that less than 10% of the stimulus funds have been distributed. It has not been targeted when reports indicate that funds have gone to states that don’t need it at the expense of those who do. (Several recent headlines have implied the bulk of the funds are going to states that favored the current President last fall.) And it is certainly not temporary. There is nothing temporary about the mountain of debt we have piled onto generations of Americans. Perhaps they are referring to it as temporary in light of that fact that now the idea of a second stimulus is being floated.

It should also be noted that the stimulus was not bipartisan. Every single Republican in the House voted against it, and all but three Republicans in the Senate (one of whom is now a Democrat) opposed it as well. There was little time to read or debate the legislation. Members received access to the text of the bill after midnight and voted on it early the following afternoon. Additionally, Republicans were not allowed to offer amendments to the legislation.

The stimulus package was sold to the American public on job creation. In February, the Obama Administration predicted that unemployment would peak at 8.5% as the bill took effect. Today it stands at 9.5% with little signs of improvement anytime soon.

In April, Vice President Biden announced $4 billion in Department of Energy (DOE) stimulus funding for Smart Grid Initiatives. The goal of the funds was to “create good jobs that will drive our economic recovery.” At the time, DOE released a notice of intent stating that job creation was a primary criterion for receiving funds. However, the final DOE guidelines issued on June 26 shifted job creation from being a criterion for selection to merely a reporting requirement. Why DOE took the focus away from job creation - only they can answer. That is why I asked my colleagues to join me in sending a letter to Vice President Biden seeking answers to this confusing shift in priorities.

Democrats made the case that a short term injection of enormous amounts of money would stimulate our economy in the short term to secure long term economic stability. Sadly, their plan is failing miserably.

The federal deficit just broke the trillion dollar mark for the first time in history and 75% of Americans have rightly concluded that the stimulus spending isn’t working. President Obama himself has admitted that his deficit spending is unsustainable, and the American people agree wholeheartedly.

My Republicans colleagues and I have a plan to get this nation back on track. We want to repeal the remaining spending portion of the President’s “stimulus” package - saving taxpayers $460 billion. We want to maintain the tax relief and unemployment benefits included in the stimulus bill and block any further TARP funds - saving taxpayers $150 billion. Government spending doesn’t create wealth; it either redistributes it or destroys it.

Targeted tax and unemployment relief will help Americans get back on track. We shouldn’t be reaching deeper into the pockets of the American family and small business. Reckless spending in the name of economic recovery has the potential to cripple our system for generations to come without even achieving the goal of job creation.

Rep. Pete Olson (Biography) represents the 22nd Congressional District in Texas and serves on the House Transportation & Infrastructure, Science & Technology and Homeland Security Committees.