Debt Day: A Reminder That Spending Won’t Turn the Economy Around
April 26, 2009 

WASHINGTON, D.C.— This coming Sunday, April 26, is Debt Day— the day that the tax revenue collected by the federal government runs out and the government starts using borrowed money to pay for its programs. This means that all of the money spent by Washington the rest of this year will either be borrowed from other countries or borrowed from future generations through taxes, increasing our federal debt dramatically. This is the earliest that debt day has ever occurred.

Emergency Economic Stabilization Act

Last fall, the government took unprecedented action to prevent the collapse of the financial services sector of our economy and to stabilize the credit markets.  It is hard to judge whether that effort has been successful because we can never know what would have happened to banks and businesses all around the country had action not been taken.  But it was clear that the entire economy – every industry and sector – depended on access to credit.

So far, however, implementation of the program has been disappointing.  Former Treasury Secretary Paulson shifted the original focus from taking toxic assets out of the market to directly infusing capital into banks and eventually to providing loans to the automobile industry.  It took months to fill the newly created Special Inspector General to provide oversight, and although the Treasury lists who receives funds on their website, they have not demanded reports from the recipients on how the funds are being used.

I recently voted against releasing the second half of the bailout funds.  The Senate failed to pass the resolution, however, so the money was released.  The Obama Administration will have a great deal of flexibility in how to use those funds. 

I believe that Congress should also continue to fully and thoroughly investigate what actions and set of circumstances led to the current market crisis.  Without a fuller understanding and clear accountability for how the money is used, I am very skeptical about spreading more taxpayer money across troubled industries.   

Link to Department of Treasury: http://www.treasury.gov/initiatives/eesa/

Massive Spending Bill Passes - $787 billion   
Thornberry Votes NO Citing Concerns About Pork Barrel Spending And Social Engineering In Bill

Washington, DC – “Congress today passed the largest spending bill in the history of our country with only 90 minutes of debate and with very little time to review the 1,000 plus pages in the bill,” said Congressman Mac Thornberry.  “The bill does very little to help small businesses create jobs, but it does a lot to grow the size and intrusiveness of government.”

“In fact, the bill is a step backwards in several key areas: It removes requirements that anyone receiving a contract paid for with funding from the bill must use the government's E-Verify program in order to ensure taxpayer money is not used to hire illegal workers; it will increase business’ health care costs and raise the possibility of additional class-action lawsuits against health care providers; it sets the stage for the government rationing of health care,” noted Thornberry.  “These additions have nothing to do with stimulating the economy, and may actually slow our economic recovery.”

Among the many spending programs unrelated to job creation, Thornberry cited as examples:

• $2 billion for the Neighborhood Stabilization Fund, providing funds to organizations such as ACORN, which has
been accused of practicing unlawful voter registration in recent elections

• $1.3 billion for Amtrak, including $450 million for a new rail security grant program not included in either the
House-passed or the Senate-passed bills

• $8 billion for a High Speed Passenger Rail Program, after the House did not include any funding for the
program and the Senate included $2 billion, which will fund at least one project from Las Vegas to Los Angeles

• $170 million for the National Oceanic and Atmospheric Administration to research the cause, effects and ways
to mitigate climate change

• $200 million for Americorps and other paid “volunteerism” programs

• $400 million for NASA to accelerate climate research missions

• $1 billion for expenses in conjunction with the 2010 decennial census

"When American families are hurting there is something fundamentally wrong with a bill that spends more on a pork barrel railroad project between Los Angels and Las Vegas, than it does in helping people in Michigan, the state with the highest unemployment in the nation,” said Congressman Thornberry.

“This bill reflects the belief that government knows best and that taxing or borrowing money for bigger government is the best way to turn back this recession.”

“I respectfully disagree because history and economics demonstrate that this solution will not work.  Rather than more government, more debt, and more spending, we need fast-acting tax relief for working families and small businesses.  The most recent data shows that small businesses created 60 to 80% of the net new jobs in the U.S. in each of the last ten years,” concluded Congressman Thornberry.  “This bill spends hundreds of billions more on pork and unnecessary and unwise social engineering projects than it provides in job creating incentives, tax cuts and stimulus to job creating small businesses.” 
 

 Thornberry Votes No on Massive Spending Bill   
Says Congress Needs to Take Action to Encourage Job Creation
WASHINGTON, D.C. –Congressman Mac Thornberry (R-Clarendon) today issued the following statement after the House voted to pass H.R. 1, the economic stimulus bill.
“I agree that we need action to encourage economic growth and job creation, but it has to be focused on those that create the most jobs— small businesses,” Congressman Thornberry said.  “Sixty to eighty percent of jobs are created by small businesses. Any attempt to save or create jobs must focus on that vital part of our economy,” Congressman Thornberry said.

The bill costs more than $800 billion – enough to write every man, woman, and child in the United States a check for $2,700— and it spends money on more than 150 federal programs, ranging from the National Endowment for the Arts to the renovation of the Department of Agriculture’s headquarters. While some of these programs may be beneficial, their effectiveness at helping grow the economy is questionable.

“All of us are very concerned about the state of our economy.  It is appropriate, in my view, for Congress and the Administration to take action that will encourage job creation and economic growth, but we will not borrow and spend our way back to a growing economy,” Congressman Thornberry concluded.

To view the full text of H.R. 1, please click here.