WASHINGTON, D.C. – Representative Tom McClintock (R – CA) delivered the following remarks today on the House floor about stimulus spending and unemployment:
Repeating the Lesson
House Chamber, Washington, D.C.
July 20, 2010
When the stimulus bill became law, unemployment stood at 8.2 percent. Today, eighteen months and hundreds of billions of dollars later, unemployment is 9.5 percent.
This spending binge hasn’t made things better – it has made things demonstrably worse – because before government can put money into the economy, it first takes that money out of the economy. We see the job created when government puts the money back, but we don’t see the jobs that are lost because government first took that money out of the economy.
When we borrow trillions of dollars, we crowd out the same capital pool that would otherwise have been available for businesses to create jobs. And so those jobs don’t get created and the ranks of the unemployed grow.
These are the same policies that turned the recession of 1929 into the depression of the 1930’s. Do we really want to repeat this lesson?