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Strong Signs of Recovery

April 16, 2010
Blog Post
The Democratic-led Congress continues working to create American jobs and strengthen the economy--because we must bring down the unemployment rate and restore American job security. Congressional Republicans continue to vote in lock step against job creation, tax cuts and recovery efforts and instead support the special interests--Wall Street banks, Big Oil and insurance companies. Those economic policies brought us the Bush recession with Americans facing job losses of nearly 800,000 a month and the economy contracting by more than 6 percent. Until all Americans are back to work, more must and will be done on behalf America's middle class and working families, but there is mounting independent evidence that the Recovery Act and other job-creation efforts are spurring an American economic recovery:

Fortune (4/16/10):

The economy has made a sharp U-turn in the past couple of months, and better days for American businesses and workers are around the corner... three [American business titans including Warren Buffett] tell me that in the past four to eight weeks, they've seen a real change in their businesses, and that indicates better news for the nation's economy.

Newsweek (4/9/10):

America is coming back stronger, better, and faster than nearly anyone expected--and faster than most of its international rivals.

Business Week (4/8/10):

When you take it all together, the response [to the recession] was massive, unprecedented, and ultimately successful," says Mark Zandi, chief economist at Moody's Economy.com.

...

Even Obama critics such as Phil Swagel, assistant Treasury secretary for economic policy under George W. Bush, acknowledge that White House policies have been successful... "their economic policies, including the stimulus, have helped move the economy in the right direction.

JOBS

In January 2009, before we enacted the Recovery Act, Americans lost 779,000 jobs in one month alone. A year later, job losses have turned to jobs gains of 162,000 in March, including 17,000 in manufacturing--a complete reversal from what President Bush left behind.

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ECONOMIC GROWTH

In the 1st quarter of 2009 starting before President Obama took office, America's GDP fell by 6.4%. By the end of the year, our economy grew by 5.6%--the fastest three-quarter swing in almost 3 decades. 12 points in less than 12 months.

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HOUSEHOLD WEALTH

Since the Recovery Act took effect, Americans regained nearly 30 percent ($5 trillion) of the $17.5 trillion in household wealth wiped out during the last 18 months of the Bush Administration.

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STOCK MARKET

The Dow is at an 18-month high of over 11,000, an increase of more than 4,000 points--or 70%--in just over a year of the Obama presidency.

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MANUFACTURING

America's manufacturing base has grown for 8 straight months--now at the highest level in six years--with manufacturing jobs being created three months in a row.

CONSUMER SPENDING & RETAIL SALES

Consumer spending is up five months in a row, with household purchases on track to expand at a 3.4 percent pace this quarter, the best performance in three years. Retail sales soared 1.6 percent in March, for the third consecutive month of growth.

Learn more about recent legislative action on the economy:

ENACTED INTO LAW

HIRING INCENTIVES TO RESTORE EMPLOYMENT (HIRE) ACT, a bipartisan bill to create 300,000 jobs with tax incentives for businesses that hire unemployed Americans, unleash tens of billions of dollars to rebuild our infrastructure, and strengthen small businesses with tax credits and accelerated write-offs so they can expand and hire. (Signed into law 3/18/10)

CONTINUING EXTENSION ACT, extending for two months emergency unemployment benefits and help with health insurance for people who have lost their jobs through no fault of their own, as well as Medicare payments to physicians, satellite TV reception to customers without other TV options, flood insurance, and small business loans. Unemployment benefits are extended through June 2 with the rest through May 31. (Signed into law 4/15/10, after Senate Republicans blocked for three weeks)

PASSED BY HOUSE AND SENATE

AMERICAN WORKERS, STATE, AND BUSINESS RELIEF ACT, a package of tax incentives to spur business innovation and tax cuts for families with kids headed to college and disaster relief for states, combined with economy-boosting unemployment benefits and health care for Americans hit by the recession. (H.R. 4213 passed House 12/9/09 by a vote of 241-181 and Senate amended 3/10/10 by a vote of 62-36; House and Senate are working on an agreement focusing on replacing the current pay fors that were used in health insurance bill)

IN THE SENATE -- PASSED BY HOUSE

SMALL BUSINESS AND INFRASTRUCTURE JOBS TAX ACT, extends the successful Build America Bonds to help finance the rebuilding of schools, hospitals, roads, bridges, and rail lines; targets tax incentives to spur investment in small businesses and for entrepreneurs looking to start a new business; and extends aid to States to provide subsidies to employers, including small businesses, who hire unemployed workers that is on-track to put over 160,000 Americans back to work. (H.R.4849 passed House 3/24/10 by a vote of 246-178)

DISASTER RELIEF AND SUMMER JOBS ACT, provides disaster-stricken communities with aid to rebuild their homes, infrastructure and local economies, adds approximately 300,000 summer jobs opportunities for young people, and extends Recovery Act provisions to make small business loans more available. (H.R. 4899 passed House 3/24/10 by a vote of 239-175, 1 Present)

JOBS FOR MAIN STREET ACT, to create and save jobs with targeted investments to boost small business, to rebuild highways and transit, and to hire and retain teachers, police, and firefighters; paid for by redirecting TARP funds from Wall Street to Main Street; with emergency aid for the unemployed. (H.R. 2847 passed House 12/16/09 by a vote of 217-212)

This spring, Congress will also likely consider legislation to spur lending for small businesses so they can expand and hire, make American homes more energy efficient creating jobs and saving families money, and strengthen innovation to unleash American productivity in the new industries of the 21st Century.