Congressman Sander Levin

Getting our Economy Back on Track

Families in Michigan and around the country are struggling as a result of the economic recession. The U.S. economy has lost over 500,000 jobs every month for the last four months. There are over 12 million people currently out of work, and more than 4 unemployed people for every 1 job available. In Michigan, the unemployment rate is among the highest in the country, at 11.6%. As they lose their jobs, many Americans have also lost their health insurance. Others have lost their homes to foreclosure. Increasing volatility in the stock market has had a devastating impact on workers and retirees’ investments.

In the face of rising job loss, I have been fighting for an additional extension of unemployment insurance benefits. Literally hundreds of unemployed workers -- many unemployed for the first time -- have contacted my office with personal stories of their efforts to find another job. Extending unemployment insurance is an important step to helping these workers and their families, but it also provides a needed boost to our economy. Experts estimate that for every $1 spent on unemployment benefits, $1.64 is generated in new economic activity.

On November 20th, Congress approved an extension of unemployment benefits. On top of the 13 week extension passed in June, this legislation [H.R. 6867] provides 7 more weeks of extended benefits in every state and 20 more weeks in states – including Michigan – with high unemployment rates.

In addition to the unemployment benefit extension, Congress and President Bush were able to reach agreement this year on a number of economic stimulus measures, including the issuance of recovery tax rebates, a foreclosure crisis bill to help prevent families from losing their homes, and the $700 billion economic stabilization plan to help unfreeze credit markets.

However, as the job market continues to deteriorate, the need for further action is clear. We must act not only to soften the hardest blows of the economic downturn by increasing aid for basic needs like food, heating assistance, health care, and foreclosure prevention, but also to safeguard and create jobs. President-elect Barack Obama has made clear his commitment to strong and decisive action that will focus on creating and saving middle class jobs.

To meet these ends, some of the economic stimulus items under consideration are: job creation through investment in our nation’s crumbling infrastructure, food assistance, aid to states with shortfalls in health care funding, tax cuts for American families, and additional help for the U.S. auto industry. Though it will not be a part of the initial stimulus package, updating our health care system will also be a fundamental component of restoring our long-term economic strength and competitiveness.

The Democratic Leadership in Congress is working with President-elect Obama’s economic team to craft a recovery package that will address our economic challenges head on in a way targeted to help middle class families. This will be the first item on the agenda when the 111th Congress convenes for business early next year.