Op-Ed: Like America's Indomitable Spirit, Recovery Is Working

Op-Ed

Source: The News Journal

By Sen. Ted Kaufman

The American economic recovery has a long way to go. Millions of workers have lost their jobs, and far too many more jobs will be lost in the coming months. But congressional action earlier this year to pass the $787 billion American Recovery and Reinvestment Act (ARRA, "the stimulus") is working.

As I began my service as a U.S. senator this past winter, it looked as though America was about to enter another Great Depression. The economy and stock market were in free fall. The credit markets remained frozen. First-quarter gross domestic product contracted by 6.1 percent. Americans were losing jobs at a rate of 600,000 and more -- the population of a large American city -- per month and losing their homes at record foreclosure rates. It is no exaggeration to say we were standing at the precipice.

Today, while far too many Americans continue to suffer economic hardship, we seem to be turning the corner. This country is on the way back. The stock market since March has rebounded sharply (as one Wall Street analyst said, "Stocks were priced as though we were entering a depression, but it turned out only to be a recession.") Renewal and hope are at our doorstep, knocking, asking for a rebirth of optimism and a dynamic American economy moving forward again.

When Sen. Tom Carper and I started traveling the state to highlight parts of the ARRA, a member of the local media remarked, "Boy, great to finally hear some good news." We will continue to see setbacks and unemployment continue to climb for months to come. The mixed news of the last few weeks are a microcosm of the challenges we face. First, we received two consecutive positive reports on the state of our economy: we learned that the decline in gross domestic product slowed significantly last quarter, followed days later by the first drop in the national unemployment rate since April 2008. It was the first time in almost a year we've received good news about the nation's economy -- if just a bit.

But then we learned consumer confidence fell and retail sales for the back-to-school season were down sharply. This shows the uphill climb still ahead of us, and the continued need for action on all levels.

Restoring our economy -- and putting Delawareans back to work -- is what motivates me every day. And in keeping with the "good news" spirit, below are some of the Recovery Act's bright spots that have contributed to the recent positive reports, a solid step toward a restored American economy.

First, we are putting money back where it belongs: in the pockets of working families. Since April, Delawareans have seen bigger paychecks thanks to tax cuts -- nearly $90 million. Despite all the attention given to the worthy and desperately needed projects included in it, the biggest part of the Recovery Act -- more than one-third -- is the tax cuts provided to 95 percent of working Americans.

The ARRA also provided $155 million in direct relief to Delaware's state government, which helped Gov. Jack Markell and the General Assembly cope with a record deficit and retain teachers, police and firefighters who might have lost their jobs.

The smallest portion of the Recovery Act is the funding that Sen. Carper and I have traveled the state to announce. Readers of The News Journal have seen articles about:

* A health clinic that specializes in low-income care being expanded into a new community, providing more services at a time when 14,000 Americans are losing health coverage each day.
* $5 million to pay for almost two dozen new police officers, allowing budget-constrained chiefs to avoid choosing between retaining an officer and upgrading old equipment.
* 350 jobs created at the Amtrak shops and train stations, saving money by refurbishing old and broken cars that had been collecting dust in Bear. These workers are decreasing our dependence on foreign oil while expanding a reliable rail system for the entire Northeast Corridor.
* Tens of millions of dollars for our schools and students with learning disabilities, so our children will be prepared to compete in an increasingly global economy.

ARRA funds also are helping to modernize desperately out-of-date water systems in Sussex County, improve our National Guard and Air Force bases, and expand the use of energy-efficient technology across the state. The Recovery Act hits every sector of our state and touches every citizen many times over.

It's been only 160 days since President Obama signed the act, and since then unemployment has finally ticked down, banks are regaining their footing and the stock market has rallied nearly 50 percent.

The economic challenges we face were years in the making. Remember, in 2000, we had a federal budget surplus of $236 billion with a projected surplus over the next 10 years of $5.6 trillion. Instead, we increased the national debt by more than $4 trillion during the subsequent eight years. And the financial system has been in peril or the economy in recession since 2007. These economic problems will not be solved overnight.

But I find it to be unquestionable that the Recovery Act is working and, along with the indomitable spirit of the American worker and people, is helping to bring America's economy back from the brink.

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