Hearing of the House Budget Committee - Opening Statement of Rep. Chris Van Hollen, Hearing on CBO's Budget and Economic Outlook

Hearing

Today Maryland Congressman Chris Van Hollen, Ranking Member of the House Budget Committee, made opening remarks at the House Budget Committee hearing on the Congressional Budget Office's (CBO) Budget and Economic Outlook. Below are his remarks as prepared for delivery:

"Thank you, Director Elmendorf and your team.

"This report is a good news, bad news story.

"The good news is that the economy has now added 8.2 million new private sector jobs over the last 46 months and the CBO projects continued economic growth.

"The bad news is that CBO projects very sluggish growth in the job market this year. Indeed, it projects the average unemployment rate this year to be slightly higher than the December rate of 6.7 percent. Page 3 of the report sums up this mixed report when it states, "economic growth is projected to be solid in the near term, but weakness in the labor market will persist.'

"In other words, if this Congress continues to do nothing to boost job growth, we will be treading water in the job market this year. But we can change that result if we act.

"We can and must do more to create jobs. Putting Americans back to work will help millions of families and boost our overall economy -- it's also the fastest and most effective way to reduce our deficit. Instead of partisan bickering and a one-note agenda that strips affordable health care from millions, Congress must focus on jobs.

"That means smart investments in education, infrastructure, and research and development. It also means a minimum wage that ensures that people who work full-time and year-round aren't living in poverty. We need an economy where everyone benefits from the fruits of their labor, not one where the rules are rigged to help only those at the very top.

"We also need to reinstate the extended unemployment benefits program while long-term unemployment remains high. While we work on job growth, we must ensure that Americans who are out of work through no fault of their own are not left out in the cold. Congress must immediately renew the expired Extended Unemployment Compensation program. If Congress fails to act, 4.9 million Americans will have lost their benefits over the course of the year. The program also creates jobs during times when the labor market is weak. You have indicated to me that the program raised total employment by 200,000 jobs by the end of this year.

"Finally, I am glad to see that our short-term deficit outlook continues to improve. While your projections reflect the progress we've made in getting our fiscal house in order, we must continue to work to put our long-term budget on a more sustainable trajectory. That effort should reflect a balanced approach that includes both spending and revenue measures, such as closing special interest tax loopholes."

Source