Jobs and the Economy

More and more Coloradans are feeling the pinch of a tightening economy. Gas prices have sky-rocketed, housing values have dropped, and credit card interest rates have gone through the roof. Our economy is in trouble, in part, because the federal government's short-sighted economic and fiscal policies are fundamentally flawed. In the last seven years we have endured an administration that weakened government oversight of the sub-prime mortgage industry, instituted trade and tax policies that too often reward corporations for moving plants overseas, failed to change an energy policy that is hostage to more than $100-per-barrel oil, and allowed health care costs to outpace income for all but the most wealthy Americans. The Bush Administration and Republican Congress compounded the problem by permitting the federal budget to spiral into red ink and failing, in my opinion, to chart the right course in international affairs. The war in Iraq is costing taxpayers nearly $2 billion a week, the American dollar is losing value and the Chinese and Saudi Arabians among others, own our debt.

I believe finding a prosperous path forward requires a focus on the fundamentals. Getting the fundamentals right—a fair trade policy, a balanced federal budget, tax relief that is targeted to middle-income workers, a new energy policy, and ending the war in Iraq—are all part of the solution. We also need to get serious about competing with China and India, and expanding opportunities for Colorado workers in a global economy. We will slip behind unless we invest in math and science education for our kids, and support research and development at home.

As a Member of Congress I have not been silent on these issues. I have supported numerous trade agreements that have benefited Colorado without disadvantaging American workers, but I have opposed those, like the Central American Free Trade Agreement (CAFTA), that have not included provisions addressing the unfair advantage of countries with lower environmental and labor standards.

I have also led efforts to reduce federal spending and support a new energy economy that will help relieve our dependence on foreign oil. I have co-sponsored and supported tax provisions to discourage corporations from moving headquarters and plants overseas in order to secure unfair tax advantages. I am also the author of bipartisan legislation (the American Manufacturing Works Act of 2003 (H.R. 2908)) to encourage research and investment in homegrown manufacturing, because white-collar jobs are not the only jobs supporting our economy.

Despite my efforts, Americans are right to be worried. Key economic indicators suggest that our economy has been weakening over the last seven years:

• Real median household income is down by nearly $1000 since 2000. The average family has less money in their pocket than it did seven years ago.
• The economy lost 260,000 jobs since the first of the year. As of December 2007, the national unemployment rate reached a troubling 5%. There are 1.2 million more unemployed workers today than when President Bush took office in 2000.
• Housing prices have also gone down by a record 6.5 percent annually, and are likely to fall another 10 to 15 percent before they reach bottom. The housing slide is the worst we have seen since the Great Depression.
• Home foreclosures and late payments rose in December 2007 to their highest levels since records have been taken.
• According to the Commerce Department, the share of national income going to wages and salaries remain at the lowest level on record since 1929. The share of national income captured by corporate profits, in contrast, is at its highest level since 1950.
• The number of Americans living in extreme poverty has increased by 3.3 million since 2000.
• According to the Department of Labor wholesale inflation was up 6.3 percent for all of 2007, the largest increase in 26 years.

Behind these statistics are real people - Coloradans who are having a harder time making ends meet, finding it more difficult to save for college or retirement - and who rightly ask why politicians in Washington can't seem to put aside partisan bickering long enough to focus on reviving our economy.

That is why I believe it is time to put partisanship aside, and really focus on making fundamental changes that will provide the foundation for new heights of American prosperity. (See also: Taxes, Budget, and Fiscal Responsibility)

Investment in New Energy

America must continue to lead the next wave of technological innovation in renewable energy. We are on the cusp of exploiting the great economic opportunity present in new and sustainable energy resources. Every country in the world is aching for new technologies to help fuel their economies, mitigate the impact of climate change, clean up their cities, and reduce their own dependence on oil. America should lead this global energy revolution. In fact, a recent study completed by the American Solar Energy Society found that, in 2006, renewable energy and energy efficient technology industries generated 8.5 million new jobs, nearly $970 billion in revenue, more than $100 billion in industry profits, and more than $150 billion in increased federal, state, and local government tax revenues.

In short, new renewable energy sources are going be an economic boom for those who take advantage of the opportunity, and Colorado is uniquely poised to be at the center of this "green" technology. We are the home of the National Renewable Energy Laboratory (NREL), the nation's leader in the research and development of renewable resources. Colorado ranks fourth in the nation for solar potential, and fourth among Western states for geothermal development site potential. Our state also has potential for energy development in wind and biomass resources. We have a highly educated labor force and state and local governments interested in the development of alternative energy resources. What we need is a national energy policy that reflects this potential and leadership in Washington that recognizes the promise Colorado offers. In the Senate, I will push for an Apollo-like program designed to boost our commitment to renewable energy. (See also: Energy Security and a New Economy)

Investment in Education and Infrastructure

Our second investment must focus on basic infrastructure. America has fallen behind many countries when it comes to equipping our workforce with the education and training necessary for global competition in the 21st Century. Our national transportation infrastructure, including our aviation system is aging to the point of obsolescence.

The infrastructure problems nationwide are also present here at home. A recent report by the Metro Denver Economic Development Corporation found that Colorado is 15th worst in the country for highway performance and that the state has reduced its investment in transportation infrastructure from 12.7 percent in 1980 to only 6.2 percent today. The state's investment in education is also dismal. We are 48th in support for higher education, 44th in support for K-12 education, 42nd in student-teacher ratios, and 32nd in high school graduation rates. The report also notes that our productivity has decreased in comparison to other states.

So our infrastructure needs attention - whether it is in new transportation systems or school construction - we cannot afford to let basic investments in the building blocks of the economy go unfunded. That does not mean government spending should go unchecked, nor does it mean that the entire responsibility for these investments should fall on federal tax payers, but it does mean that we have to place a higher priority than we have done on so far on transportation, school construction, and aviation safety.

Americans are very talented and competitive people. We do not need massive government programs getting in the way of individual talent or trying to direct consumer behavior. But pretending that federal, state and local governments have no place in partnering with the private sector to address these needs is misguided and out-dated thinking. (See also: Education, Transportation)

Investment in Stimulating the Economy

Our third investment should be an immediate, but temporary stimulus package to ease the risk of a serious recession. I have supported an effective short-term stimulus package that includes the following:

1. Tax cuts and credits for lower and middle income families. Unlike tax cuts for the wealthiest Americans, tax cuts and credits for lower and middle income families are effective in helping those most impacted by the slowing economy get back on their feet. They also help to stimulate a slowing economy because families in need are likely to immediately use the money to pay for things they otherwise may not afford.
2. An effective response to the housing crisis. We need to take steps to help Americans deal with the consequences of the declining value in housing and accompanying credit issues. I believe that we should pass a first-time homebuyer tax credit that would help people who are having trouble getting financing to purchase a home, and that would help builders trying to sell their properties. The implementation of a refinancing credit to offset closing costs associated with refinancing into a fixed mortgage would also help many families avoid foreclosure.
3. Extend unemployment insurance. Long-term unemployment is more than twice as high now as on the eve of the last recession. Under current law, unemployment insurance lasts for 26 weeks. I believe we should extend unemployment insurance by 13 weeks to provide temporary help to those unemployed due to economic downturn, and temporary stimulus for an economy that needs the investment of those unemployed dollars.
4. Help to Small Businesses. The implementation of front-loaded and temporary accelerated depreciation for small businesses will give businesses an immediate infusion of cash to help them through this economic slow-down.

These investments are needed, but other steps are necessary as well. Unless we bring the war in Iraq to a close, free our nation from dependence on foreign oil, bring the costs of health care down, balance our federal budget, and reform our immigration and trade policies, we are not going to see an expansion of American opportunity in the years ahead. Instead, we will witness an erosion and decline in our economic strength.

As your Senator, I will fight to make sure that does not happen to Colorado or America.