October 13, 2011
Nearly one month ago, House Republicans outlined more than a dozen areas of potential agreement with President Obama on a jobs agenda. While House Republicans search for common ground with a seemingly unwilling president who is focused on re-election, one thing remains explicitly clear: House Republicans will not continue the same failed “stimulus” spending policies that the president is once again advocating. President Obama’s call for $140 billion in new stimulus spending argues that Washington should double-down on failed deficit spending and the American people should somehow expect a different result. But results speak for themselves and many Americans are now worse off than before the original stimulus was enacted.
Things Have Gotten Worse Since the President’s Stimulus: Numerous economic metrics show that the situation for people struggling to put food on the table has become increasingly dire since the $1.2 trillion stimulus was signed into law in February 2009. For many average Americans, the stimulus spending hasn’t made their circumstances better, it’s made them worse.
- Household Income Declines Faster than During the Recession: According to an October 10 report from Sentier Research, based on U.S. Census Bureau data, median annual household income has fallen significantly more during the economic recovery period from June 2009 to June 2011 than during the recession lasting from December 2007 to June 2009. During the recession, real median annual household income fell by 3.2 percent, from $55,309 in December 2007 to $53,518 in June 2009. During the economic recovery period, real median annual household income fell by an additional 6.7 percent, from $53,518 in June 2009 to $49,909 in June 2011.
- Weekly Earnings Grew During the Recession, Now Falling During Recovery: According to the Bureau of Labor Statistics, average weekly earnings for employed workers—which actually grew during the recession—have declined since the president’s stimulus. Inflation adjusted weekly earnings grew by 3.9 percent from the fourth quarter of 2007 when the recession began to the second quarter of 2009 when it ended. Since the end of the recession, weekly earnings have fallen by 2.3 percent under President Obama’s stimulus policies.
- Unemployment Has Climbed Far Past Levels Promised by the White House: The unemployment rate for the month of September was 9.1 percent—the same rate as August and the second highest monthly level in 2011. Only 2 out of the last 30 months have seen unemployment below 9 percent (February and March 2011). From March 2009 (the month after the failed $1.2 trillion “stimulus” was enacted) to September 2011, unemployment has averaged 9.4 percent. Prior to the enactment of the “stimulus,” the White House promised that unemployment would not rise above 8 percent if the bill became law.
Instead of Replicating Failed Policies, Republicans Have a Pro-Growth Plan: Unlike the president and Congressional Democrats, House Republicans will not replicate failed stimulus spending policies and expect different results. House Republicans have a Plan for America’s Job Creators that will reduce government red tape and provide lasting certainty for job creators so they can put Americans back to work. House Republicans have and will continue to send pro-growth legislation to the stagnant Senate. Republicans are listening to job creators, moving bills to create jobs, and reaching out to the president with ideas to grow the economy.
For additional information, contact:
The House Republican Conference Policy Office