Dem Reps. Counter GOP Narrative That Cutting Spending Creates Jobs

Rep. Earl Blumenauer (D-OR)
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Without a whimper, Democrats have allowed Republicans to build the reality that, in the current economic environment, government spending costs jobs, while austerity creates jobs. While Republicans tout a “cut and grow” Congress, most Democrats are running away from the idea that spending can do any good at all.

Not all of them though. In a “Dear Colleague” letter, Rep. Earl Blumenauer (D-OR) is trying to build opposition among his colleagues to the Republican Study Committee’s call for dramatic spending cuts on the grounds that they will lead to major job losses.

“In truth, these reductions in funding for Amtrak, New Starts and high speed rail cut right to the bare bone at a time when our nation desperately needs to invest in new infrastructure and the jobs that come with it,” he writes. “Not only do the Republican proposed cuts drastically slow down any future economic growth, they’ll end up cutting jobs in existence right now — increasing unemployment at a time when most Americans think we should be doing the opposite.”

Adopting some of the GOP’s own rhetoric, Blumenauer says these transportation infrastructure cuts will “destroy” tens of thousands of jobs a year.

As noted in posts here and here, Republicans are in a bit of a bind over just these sorts of programs. They’ve enjoyed bipartisan support in the past, and even GOP members acknowledge they create jobs.

You can read the entire letter below.

February 7, 2011

Dear Colleague,

While most of us in Congress are focusing on creating jobs and rebuilding our economy, last week the Republican Study Committee (RSC) put out a proposal that actually cuts jobs and imposes further uncertainty on America’s construction industry. While reducing the deficit is a worthy goal, the proposal itself would have a disastrous impact on America’s economy.

The Republican Study Committee’s list of proposed cuts to programs that invest in rebuilding and renewing America is a recipe for economic disaster. Supporters of the proposal claim it would simply trim so-called “wasteful” spending. In truth, these reductions in funding for Amtrak, New Starts and high speed rail cut right to the bare bone at a time when our nation desperately needs to invest in new infrastructure and the jobs that come with it. Not only do the Republican proposed cuts drastically slow down any future economic growth, they’ll end up cutting jobs in existence right now–increasing unemployment at a time when most Americans think we should be doing the opposite.

Estimates from a 2009 study done by the Political Economy Research Institute suggest that the Republicans’ proposed $2 billion cuts to New Starts would destroy nearly 46,000 jobs. That’s 46,000 manufacturing and construction jobs that would otherwise put skilled Americans to work building new infrastructure that contributes to more efficient, accessible communities across the country.

Cutting Amtrak funding by $1.6 billion as the RSC proposes would destroy 36,000 jobs per year. Worse, these cuts would dramatically undermine Amtrak’s ability to transport people across America as well as support workers traveling to and from their jobs, and would add congestion to our highways, more commuting time to the workday and more dependence on foreign oil. There are many small towns across the country that depend on Amtrak to bring tourists and business into the town, and to provide an easy link to more populated areas. Cutting Amtrak service means leaving many of these small towns stranded.

Finally, cutting intercity and high-speed rail grants by $2.5 billion would directly eliminate yet another 36,000 construction jobs as new railway projects all across the country are shut down. Yet this figure surely underestimates the likely job losses, as shutting down these projects would also result in thousands of layoffs at factories that build the materials required for new transit lines. In addition, these cuts would add more congestion to highways by reducing alternatives to driving.

Our nation’s infrastructure is crumbling and Americans are hungry for work. During a time of record deficits, it’s more important than ever to invest wisely and spend money efficiently. The current Republican proposals not only fail to do that, they strip away important resources that keep our nation moving and keep people employed. By targeting these most basic investments in infrastructure, these proposals fly in the face of sound economics and threaten to undermine the foundation of our prosperity.

I hope that you will join me in opposing these cuts.

Sincerely,

Earl Blumenauer James Moran
Member of Congress Member of Congress

Albio Sires Emanuel Cleaver
Member of Congress Member of Congress

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