Saturday, November 16, 2024
37.0°F

GOP wants economy to slow before election

| January 14, 2014 6:00 AM

As we face a new year, several policy issues that affect millions of low income Americans are facing congressional resolution. Extended unemployment, increasing the minimum wage and dealing with food stamps all need to be decided.

Extending unemployment for 1.3 million people who lost it last Monday (4.9 million by the end of the year) stands at the top of the list. The Republicans argue that we can’t afford it unless we offset the spending with cuts in other areas. But, taking $20 billion out of the economy will lower GDP and cost additional jobs.

According to a study done by the Labor Department during the Bush Administration, for every dollar spent on unemployment benefits, two dollars are pumped back into the economy.

Much of the conservative opposition to extending unemployment is due to the erroneous belief that it encourages sloth. There is no study, despite Rand Paul’s statements to the contrary, that supports that thesis.

The Republican enthusiasm for cutting food stamps is a real mind-bender when you consider that they are in favor of subsidizing rich farmers. Don’t farmers benefit from people buying food?

The minimum wage is another head-scratcher. It will enable low income workers to earn a more reasonable living and pump more activity into the economy at no cost to the taxpayer.

Couple these with resistance to expanded Medicaid in most Republican-controlled states and, for a realist, it might appear that the Republicans want the economy to significantly slow down before the next election.

BOB WYNHAUSEN

Sandpoint