Flying the False Flag of Economic Stimulus
Speech by Wade Henderson on October 24, 2001.
Good Morning. I'm Wade Henderson, Executive Director of the Leadership Conference on Civil Rights, the nation's oldest and largest civil rights coalition. Today, I join my colleagues in representing a broad, new coalition for working families on a matter of utmost importance to all of us who are concerned with maintaining crucial domestic programs at this time of extraordinary international crisis.In the aftermath of the September 11 tragedy, the attention of most Americans is rightly turned to important questions of national security. But America's national security interests encompass far more than even the crucial task of protecting our citizens and property from attack. Our national security, and indeed, our homeland defense, must also include protecting the nation's economic and social infrastructure, which has been badly shaken by the combination of cyclical economic decline and the resulting loss of jobs and economic dislocation caused by the terrorist attacks.
The National Civil Rights Community supports the President's call for a war on terrorism. But it's especially important now?perhaps more than ever before, that at the outset of this war ? truth about the economy and how to repair it must not become among its first casualties.
Just a few short months ago, The Fair Taxes for All Coalition of which the Leadership Conference is a member, warned the nation of the harm that would come from the passage of the President's highly touted tax bill earlier this year. And now, since the passage of the "Economic Growth and Tax Relief Reconciliation Act of 2001," it has become abundantly clear that the legislation failed miserably in its intended goals. It failed first in stimulating economic growth; and second, it failed to provide tax relief for most Americans. In fact, only in one area did the Tax Bill achieve what many predicted it would: it squandered a once-in-a-lifetime budget surplus on an unwise tax cut that benefited primarily the wealthy; and it continues to threaten the Medicare and social security trust funds.
Without a doubt, the horrible and tragic events that have engulfed our country since September 11, have changed the priorities of the American people. Whatever may haven the arguments for the earlier round of tax cuts, the current circumstances demand their re-evaluation. They must not be made permanent and they must not be implemented at an earlier date. In fact, we believe that the earlier round of tax cuts should be repealed immediately and the resources made available to meet the real needs of the nation and Americans everywhere.
Most economists agree that we need spending increases at this time, not reductions in domestic spending. But what do we get instead? We get what The Washington Post calls the "False Flag of Economic Stimulus" in which the House of Representatives is being asked today by its Republican Leadership to approve another large tax cut mainly for the non-needy, thereby necessitating cuts in or inattention to vital domestic needs. We agree with The Post when it goes on to say that in the short run, the bill would do little to life the economy, and in the long run, it could do considerable fiscal harm.
My colleagues have already talked about the specific programs that the American people need and want like strengthening the unemployment insurance program to allow lower-wage and part-time workers to qualify; or providing extended health benefits to those, who through no fault of their own, now find themselves in need and without the essential coverage. Instead, I'll close with a gentle reminder for Congress about the importance of "perspective" from one of our greatest presidents, Harry Truman.
It was Truman who, when looking at an economy not unlike our own, observed that: "It's a recession when your neighbor loses his job; it's a depression when you lose your own."
These are wise words to Congress, which itself facing an uncertain future. Thank you.
