Congressman Sander Levin

Jobs, Manufacturing and the Economy

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In his State of the Union Address, the President said, "Our economy is undergoing a period of uncertainty." But for millions of people across this country, our economic difficulties are very, very certain indeed.

The economic stimulus package passed in the House is an important bi-partisan first step in addressing the serious economic challenges facing our entire nation. The expanded, progressive tax rebate provisions will provide tax relief to 117 million middle class families - 35 million more than the President’s initial proposal.

Yet what is seriously overlooked by the President and Congressional Republicans is that long-term unemployment is now twice as high as it was in the last recession. And nearly 1.3 million more people are expected to exhaust their unemployment insurance (UI) benefits in the first half of this year. These figures refute the argument being heard from some Republicans that extending unemployment compensation would undercut searching for work by the unemployed, whose desire to continue hard work for their families is apparently not trusted by those critics.

We can help these workers - laid off through no fault of their own - while they look for a new job and effectively stimulate the economy at the same time.

Economists widely agree that extending unemployment benefits is one of the most simulative approaches that can be undertaken, as it puts money into the economy immediately. For every $1 spent on extended unemployment benefits, $1.64 is generated in increased economic activity.

Extending unemployment insurance makes good sense for these families struggling with the high costs of housing, energy, education and health care, and it will give a boost to our economy. We must learn from past recessions when we waited far too long to extend UI and act now.

The full attention of Congress on domestic and international economic issues is long overdue. From health care to tax policy to international trade, I believe the federal government must become a more active partner in addressing the national manufacturing jobs crisis.

We must also implement federal policies that address the manufacturing jobs crisis and help to create good paying jobs. The Michigan Congressional Delegation recently joined together in sending the Congressional Leadership a letter detailing our priorities in the areas of trade policy, health care, worker re-training, economic development and other advanced technology investments that we agree are critical to Michigan's future.