David Hoffman for US Senate
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Create Jobs / Stimulate the Economy
Roughly 17 million Americans are unemployed; 7.6 million have lost their jobs since the recession began in December of 2007. In October, unemployment eclipsed 10% for the first time since 1982; In Illinois, the seasonally adjusted unemployment rate was 11%. Those that are not unemployed, are suffering drastic cuts in hours and pay.
As a result, more than 10% of American families can’t make the minimum payment on their credit cards, more than 12% of mortgages are in default or in foreclosure, more than 4000 families file for bankruptcy each day and the economic crisis has cleaned out more than $5 trillion from pensions and savings.
The private sector will always be the primary driving force in job creation; however, I believe that all levels of government have a responsibility to help put Americans back to work. During this time of economic distress, the government must be a catalyst for job creation. Using all tools available to the federal government to increase lending to small- and medium-size businesses is the key to creating jobs as quickly as possible. I also support (i) establishing a new job creation tax credit, to provide incentives to businesses, organizations, and state and local governments who hire new workers; (ii) an increase in direct investment in public works and other infrastructure projects, policies that stimulate innovation, investments in clean energy; and (iii) a focus on improving the skills of our workforce with expanded educational opportunities.
While not perfect, I would have voted for the stimulus bill. I believe the bailout and stimulus package helped to avoid a more severe economic downturn and possibly a depression. The recovery package is just starting to take effect and generate positive benefits, and we need to allow time for the stimulus to work. However, after nine months, merely 30% of the stimulus money has actually been distributed. We need to get the stimulus funds out of Washington much more quickly to help the intended recipients – ranging from small contractors and businesses to state and local governments – save and create jobs.
Additionally, we need to make it easier for small businesses to expand, as they account for more than 65% of the new jobs created in America over the past 15 years. I support several proposals put forth by President Obama including a short-term moratorium on capital gains taxes on investments made in small businesses. But the critical issue is how difficult it remains for small business to get access to credit. Small businesses need to be able to obtain affordable market loans – right now – which can be done by providing government incentives that actually originate small business loans, and by increasing affordable lending programs. Federally regulated banks in solid financial shape could get up to a two percent interest subsidy for five years or less on loans to small businesses. As an additional element of the stimulus program, the interest subsidy could be granted to banks originating small business loans during a 12 to 18 months timeframe. The program would act as an incentive for banks to resume making small business loans. Small business must have access to credit so that they can continue their critical role in the job market.
We must also be creative about investing in our nation’s infrastructure. America’s infrastructure was aging before the 2008 crisis. A report by the American Society of Civil Engineers gave our physical infrastructure (roads, bridges, levees, and mass transit systems) a D- grade and suggested that $2.2 trillion worth of repairs would be required to be in good standing. Now is the time to undertake the rebuilding and repairing of our infrastructure and put thousands of people back to work. Government has traditionally financed roads, schools, hydro-electric dams and similar physical infrastructure needs through the use of private contractors; stimulus funds have and should continue to be used to accelerate these projects.
Additional measures such as the creation of a quasi-public “National Infrastructure Bank,” proposed by the Center for International and Strategic Studies (proposed in the Senate in 2007 by Senators Dodd and Hagel) can be utilized to attract private investment to key infrastructure projects, such as alternative energy, electricity grid modernization, the development of high speed rail and renewal of mass transit in large cities. By combining expertise in project evaluation with a portfolio of public and private sources of capital the National Infrastructure Bank can more efficiently allocate resources to infrastructure projects that will employ thousands of Americans. Moreover, they will likely be employed for extended periods of time as they construct not only specific projects, but create industries for the future.
I also support government incentives to encourage energy conservation and the use of alternative energy. Particularly in this time of economic downturn, there is tremendous opportunity to simultaneously stimulate the economy and introduce clean energy alternatives. Policies that promote implementation of energy saving improvements to our homes, offices and factories – such as the Business Solar Investment Credit, Residential Solar Investment Credit and New Clean Renewable Energy Bonds – as well as research and development grants that support technological innovation are critical to catalyzing growth in the clean energy industry. Not only do these programs support our goal of improving our environment, but they facilitate reduction in our dependence on foreign oil and will generate jobs in a burgeoning new industry for American workers.
Finally, expansion of government-funded educational opportunities is an essential component of reducing short- and long-term unemployment by improving the capabilities of our workforce. In the short term, a variety of programs at all levels of government can help retrain workers who have lost jobs in sectors that may not return, for jobs of the future. Studies have shown that acquiring additional years of schooling (particularly technical training) can result in as much as 10-15% increase in earnings. Among programs that provide such assistance are the Workforce Investment Act, Trade Adjustment Assistance Act, and the $2,500 tuition tax credit from the stimulus package. I will work to ensure that these programs continue to have adequate funding.
Through these steps the government can create the favorable economic conditions necessary for sustainable private sector job growth.
As a result, more than 10% of American families can’t make the minimum payment on their credit cards, more than 12% of mortgages are in default or in foreclosure, more than 4000 families file for bankruptcy each day and the economic crisis has cleaned out more than $5 trillion from pensions and savings.
The private sector will always be the primary driving force in job creation; however, I believe that all levels of government have a responsibility to help put Americans back to work. During this time of economic distress, the government must be a catalyst for job creation. Using all tools available to the federal government to increase lending to small- and medium-size businesses is the key to creating jobs as quickly as possible. I also support (i) establishing a new job creation tax credit, to provide incentives to businesses, organizations, and state and local governments who hire new workers; (ii) an increase in direct investment in public works and other infrastructure projects, policies that stimulate innovation, investments in clean energy; and (iii) a focus on improving the skills of our workforce with expanded educational opportunities.
While not perfect, I would have voted for the stimulus bill. I believe the bailout and stimulus package helped to avoid a more severe economic downturn and possibly a depression. The recovery package is just starting to take effect and generate positive benefits, and we need to allow time for the stimulus to work. However, after nine months, merely 30% of the stimulus money has actually been distributed. We need to get the stimulus funds out of Washington much more quickly to help the intended recipients – ranging from small contractors and businesses to state and local governments – save and create jobs.
Additionally, we need to make it easier for small businesses to expand, as they account for more than 65% of the new jobs created in America over the past 15 years. I support several proposals put forth by President Obama including a short-term moratorium on capital gains taxes on investments made in small businesses. But the critical issue is how difficult it remains for small business to get access to credit. Small businesses need to be able to obtain affordable market loans – right now – which can be done by providing government incentives that actually originate small business loans, and by increasing affordable lending programs. Federally regulated banks in solid financial shape could get up to a two percent interest subsidy for five years or less on loans to small businesses. As an additional element of the stimulus program, the interest subsidy could be granted to banks originating small business loans during a 12 to 18 months timeframe. The program would act as an incentive for banks to resume making small business loans. Small business must have access to credit so that they can continue their critical role in the job market.
We must also be creative about investing in our nation’s infrastructure. America’s infrastructure was aging before the 2008 crisis. A report by the American Society of Civil Engineers gave our physical infrastructure (roads, bridges, levees, and mass transit systems) a D- grade and suggested that $2.2 trillion worth of repairs would be required to be in good standing. Now is the time to undertake the rebuilding and repairing of our infrastructure and put thousands of people back to work. Government has traditionally financed roads, schools, hydro-electric dams and similar physical infrastructure needs through the use of private contractors; stimulus funds have and should continue to be used to accelerate these projects.
Additional measures such as the creation of a quasi-public “National Infrastructure Bank,” proposed by the Center for International and Strategic Studies (proposed in the Senate in 2007 by Senators Dodd and Hagel) can be utilized to attract private investment to key infrastructure projects, such as alternative energy, electricity grid modernization, the development of high speed rail and renewal of mass transit in large cities. By combining expertise in project evaluation with a portfolio of public and private sources of capital the National Infrastructure Bank can more efficiently allocate resources to infrastructure projects that will employ thousands of Americans. Moreover, they will likely be employed for extended periods of time as they construct not only specific projects, but create industries for the future.
I also support government incentives to encourage energy conservation and the use of alternative energy. Particularly in this time of economic downturn, there is tremendous opportunity to simultaneously stimulate the economy and introduce clean energy alternatives. Policies that promote implementation of energy saving improvements to our homes, offices and factories – such as the Business Solar Investment Credit, Residential Solar Investment Credit and New Clean Renewable Energy Bonds – as well as research and development grants that support technological innovation are critical to catalyzing growth in the clean energy industry. Not only do these programs support our goal of improving our environment, but they facilitate reduction in our dependence on foreign oil and will generate jobs in a burgeoning new industry for American workers.
Finally, expansion of government-funded educational opportunities is an essential component of reducing short- and long-term unemployment by improving the capabilities of our workforce. In the short term, a variety of programs at all levels of government can help retrain workers who have lost jobs in sectors that may not return, for jobs of the future. Studies have shown that acquiring additional years of schooling (particularly technical training) can result in as much as 10-15% increase in earnings. Among programs that provide such assistance are the Workforce Investment Act, Trade Adjustment Assistance Act, and the $2,500 tuition tax credit from the stimulus package. I will work to ensure that these programs continue to have adequate funding.
Through these steps the government can create the favorable economic conditions necessary for sustainable private sector job growth.
