The loss of 125,000 jobs in the month of June and a sustained unemployment rate near 10% shows the total failure of massive deficit spending by Democrats as an attempt to pull the nation out the worst economic turndown since the Great Depression, according to House Republican Conference Secretary John Carter (TX31).
"The June jobs report shows that the Obama stimulus has not only failed, but is now pushing the nation back into an even deeper recession," says Carter. "The Democrats have spent the Treasury dry and put us on a pathway to national bankruptcy like Greece. Do they really think that kind of fiscal irresponsibility will convince employers to start hiring again?"
Carter says Congress needs to halt all further payouts from the stimulus, move aggressively to recapture funds already given spent, and start cutting government expenses and taxes to stimulate economic growth. The former judge says the nation also needs to beware the massive pending tax increase in January due to Democrats' failure to renew the tax cuts passed when Republicans still controlled Congress.
"It is essential that we immediately renew the tax cuts due to expire in December to avoid a potential death blow to the economy," says Carter. "A huge tax increase in the middle of a downturn is a recipe for turning a recession into a depression. And that's exactly what President Obama and Speaker Pelosi seems to be cooking up."