With new homes sales plummeting to an all-time low, House Republican Conference Secretary John Carter says the American economy must make a dramatic change of direction to avoid a financial meltdown in 2011.
"The evidence of disastrous July homes sales, record high foreclosures, and continued unemployment near 10 percent closes the case that the Obama stimulus and massive federal deficits are not lifting us from recession, but are actually dragging the economy down further. It is a formula for a major economic crisis by next year unless we start implementing commonsense fiscal policies for this country."
The former Texas judge says the pending January cuts in consumer paychecks due to expiring tax cuts and health insurance cost hikes, coming on the heels of the turndown in the real estate market, may push the nation's economy over the brink. Carter says the pending economic blows are the direct result of Democrat passage of their controversial healthcare takeover and their refusal to renew the tax cuts passed under the former Republican majority House and Senate.
"There is good news in all this, however," says Carter. "With the voting public now aware of these economic policy failures, we can start turning this economy around in very short order under a new Congress in January with initial steps that are quite clear."
Carter says Congress should boost consumer take home pay by repealing the new healthcare law to cut insurance premiums, and by renewing all the tax cuts passed over the last decade. The new House and Senate should also lift the Obama Administration moratorium on Gulf Coast oil industry jobs, return all unspent stimulus dollars to reduce the federal deficit, and let the free market finally get back to work.