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A stronger economy means stronger job growth

by Doug Pike

While some “experts” are starting to talk about an economic recovery, I know many Pennsylvania families who are still hurting. The jobs just aren’t there for them, or so many others who are looking for work. These families are struggling to hold onto their homes and avoid bankruptcy.

It is time for Washington to act. President Obama and Congress have made a good start, but much more needs to be done. They must take additional bold, smart actions to create jobs and growth.

First, the good news. Thanks to the investments and targeted tax cuts in last year’s Economic Recovery Act, nearly 2 million Americans have jobs who would otherwise be unemployed. This $800-billion jolt to the economy was absolutely the right thing to do, as it channeled new spending to specific priorities that strengthened our economy, such as transportation upgrades, clean energy investments, scientific research, and housing modernization. The tax relief it provided helped working families pay their bills, gave first-time home buyers a break, and encouraged businesses to hire new workers and to invest in innovative technologies like renewable energy.

Yet there is so much more that needs to be done. Congress and the Obama administration need to spur a new wave of job creation in America. This plan needs to include three key points.

The first step to making our economy steadily stronger is to end the tax incentive for companies to ship jobs overseas. Let’s export U.S. products—not U.S. jobs.

Second, our international trade policies are key to revitalizing our economy. President Obama recently issued a bold plan to double U.S. exports by 2015. To do this, the administration needs to get tough and stop China from manipulating the value of its currency. This manipulation has flooded our country with artificially under-priced imports, and has devastated our manufacturing base. We need to level the playing field.

Finally, our economy cannot be strong for the long term unless Congress and the President steadily reduce federal deficits. Barring this action, at some point in the future, lenders will raise interest rates to a point that stifles business investment, explodes mortgage rates – and makes it extremely difficult for the government to bear the interest cost on its own debt.

Last year’s Senate vote to stop purchasing additional F-22 fighters that the Pentagon did not ask for demonstrated the kind of discipline that’s needed. To pursue fiscal responsibility, I support the mission of President Obama’s recently appointed, bipartisan budget commission.

Simply put, rebuilding U.S. economic strength and creating new jobs depends on a combination of smart and tough policies that will help put America back to work and encourage long-term fiscal responsibility. This would be a breath of fresh air after the Bush-era, let-the-good-times-roll policies that enabled this disaster in the first place.

The writer, a former editorial writer at The Inquirer, is a Democratic candidate in the 6th Congressional District.

May 7, 2010 at 8:15 am

--Doug Pike

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