Loebsack Pushes for New Job Growth, Middle-Class Help, and Local Economic Development in the 2nd District

Press Release

LOEBSACK PUSHES FOR NEW JOB GROWTH, MIDDLE-CLASS HELP, AND LOCAL ECONOMIC DEVELOPMENT IN THE 2nd DISTRICT

Loebsack Participates in Congressional Hearing on Economic Recovery, Focuses on Investments in Local Projects

Today Congressman Dave Loebsack participated in a House Education and Labor Committee hearing where witnesses testified the American economy could slip into a deeper recession unless immediate action is taken to stem the tide of rising unemployment and falling family incomes. During the hearing Congressman Loebsack focused on strategies - including investments in infrastructure and broadband connectivity - to create good-paying jobs here in Iowa in order to put our economy back on track.

"Our economy is in crisis, and reports on what we can expect in the coming months in the absence of action are troubling," said Congressman Loebsack. "This is why I am continuing my efforts to work with my colleagues in Congress to develop an effective economic rescue plan that will quickly create new jobs, protect family incomes, and encourage local economic growth here in Iowa. Based on what I have heard both from folks back home and experts here in Washington, for any package to work it must include investments in infrastructure, education, technology, and examine the many benefits of energy efficiency."

During the hearing economists predicted that, based on past recession trends unemployment could soon reach eight percent or higher, and middle-class families' incomes could drop by more than $2,000 this year. Over the past year, the number of out of work Americans has increased by 2.2 million. They join more than 2 million workers who have been unemployed longer than 27 months.

To address this troubling news, Congressman Loebsack is focusing his attention on creating an economic recovery package that will create new jobs, help middle class families, and spur economic growth in our local communities. To gain expert input on what an effective recovery package should include, he asked the witnesses participating in today's hearing their experience on the benefits of investments in infrastructure and broadband connectivity, particularly on how investments like these could help local communities here in the Second District struggling during the current economic crisis. Specially, Congressman Loebsack asked the following questions:

1. To Dr. Robert Pollin, Professor of Economic and Co-director, Political Economy Research Institute, University of Massachusetts - Amherst: There has been some discussion that investment in infrastructure is not an effective short term economic stimulant. Your testimony outlined the benefits of investments in infrastructure, educational services, and green jobs. Can you elaborate on how these investments can indeed work quickly enough, and can you discuss how measures like the 21st Century Green High-Performing Public School Act which I helped author and provides funds for schools to repair their facilities using green technology, can help spur local economic growth?

2. To Chris Hansen, President, American Electronics Association: Representing the 2nd District of Iowa, I understand the importance of investments in our rural areas, particularly investments in broadband connectivity, and I am fully supportive of increasing investments into small businesses and telemedicine particularly, especially given the health care shortages in Iowa and across the country. Can you elaborate on why you believe investment in broadband connectivity can help create jobs quickly and produce the results we need?

3. To Jared Bernstein, Director of the Living Standards Program, Economic Policy Institute: You cite combined sewer overflow systems as one example of investment in public infrastructure. I am particularly interested in your thoughts on this issue because several cities in the 2nd District of Iowa, which I represent, have combined sewer overflow sewer separation problems. One example is in Ottumwa, Iowa. Can you elaborate on how investment in combined sewer overflow systems might help stimulate our economy?

In September, Congressman Loebsack supported the passage of an economic rescue and job creation package to help head off a deeper recession. It would have created good-paying jobs by investing in new energy technology and infrastructure. The bill would have also provided access to job training and helped working families with grocery and health care bills. Unfortunately, the legislation did not garner enough support in the Senate to move forward in the legislative process following passage in the House.

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