Senate Republican Leader Mitch McConnell Weekly Republican Address TEXT PODCAST VIDEO 01/31/09

Senate Republican Leader Mitch McConnell delivers the Weekly Republican Address, responding to President Barack Obama's weekly address. Sen. McConnell lays out the problems with the stimulus plan ... PODCAST OF THIS ARTICLE

FULL TEXT TRANSCRIPT:

“This is Senate Republican Leader Mitch McConnell. Earlier this week, President Obama came to Capitol Hill to speak with members of my party about his plan for an economic recovery bill. The President said that a stimulus package is needed to revive the nation’s troubled economy, and to help the millions of Americans who’ve been affected by it. And Republicans in Congress agree.

“Every day brings more news of layoffs, home foreclosures, and shuttered businesses. The Labor Department this week reported job losses in all 50 states in the month of December. In California alone, almost 80,000 people are newly out of work. And across the country, employers are cutting to the bone even at businesses that most Americans never thought were vulnerable.

“A problem that started on Wall Street is reaching deeper and deeper into Main Street. And the President is counting on members of Congress to come together in a spirit of bipartisanship to act. Unfortunately, the plan that Democrats in Congress put forward this week falls far short of the President’s vision for a bill that creates jobs and puts us on a path to long-term economic health.

“Turning aside Republican ideas, Democratic lawmakers in the House of Representatives produced a massive bill that many analysts say is unlikely to create new jobs or boost the economy anytime soon. Most of the infrastructure projects it includes won’t impact the economy for at least another year. Permanent spending would be expanded by about $240 billion, an increase that would lock in bigger and bigger deficits every year. And the bill is loaded with wasteful spending:

* $20 million for the removal of fish-passage barriers.
* $25 million to improve All Terrain Vehicle trails.
* $34 million to renovate the Department of Commerce building in Washington.
* And $600 million to buy new cars for government workers.

“The task for Democrats in the House was to craft a stimulus plan that was timely, targeted, and temporary. Apparently, they didn’t get the memo. The bill they presented – and which House Democrats approved this week along a party line vote – looks more like a $1 trillion Christmas list.

“At a time when Americans are worried about holding onto their jobs and their homes, and learning to live with less, politicians in Washington shouldn’t be spending taxpayer dollars on new cars for government workers or sprucing up federal buildings in Washington. And that’s why Republicans are suggesting a simpler, more targeted plan that gets right at the heart of the economic crisis.

“Most economists agree that falling home values are the underlying cause of the recent downturn. Republicans think we need to fix this problem before we do anything else. So first, we propose providing government-backed, 4% fixed mortgages to any credit-worthy borrower. The availability of these low-interest loans would increase demand for houses significantly. And low interest mortgages would boost household income. The average family would see its monthly mortgage payment drop by $466 a month, or $5,600 a year. Over the life of a 30-year loan, that’s a savings of $167,760.

“Next, in order to get money into the economy quickly, Republicans would cut income tax rates for working Americans right away. The federal government currently imposes a 10% tax on married couples for income up to $16,700. Republicans would cut that rate in half, putting about $500 into the pocket of every working family. Income between $16,700 and $67,900 is now taxed at 15%. Republicans would cut that rate to 10%. This would put another $1,100 into the pockets of working couples. Single filers would get similar rate reductions. But either way, everyone who works and pays income tax would see an immediate increase in pay.

“Republicans are committed to working with President Obama to steer Americans out of the current economic troubles. We believe the best way to do that is to stabilize housing prices, cut your mortgage payments, and let you keep more of what you earn. And as Congress considers the best way forward, on behalf of the American taxpayer, these are the principles Republicans will pursue.

“Thanks for listening.”

President Obama Weekly Address 01/31/09 PODCAST VIDEO TEXT

Remarks of President Barack Obama, Weekly Address, Saturday, January 31st, 2009

PODCAST OF THIS ARTICLE MP3, 4 mb FULL STREAMING VIDEO MPEG4, 45 mb.

This morning I'd like to talk about some good news and some bad news as we confront our economic crisis.

The bad news is well known to Americans across our country as we continue to struggle through unprecedented economic turmoil. Yesterday we learned that our economy shrank by nearly 4 percent from October through December. That decline was the largest in over a quarter century, and it underscores the seriousness of the economic crisis that my administration found when we took office.

Already the slowdown has cost us tens of thousands of jobs in January alone. And the picture is likely to get worse before it gets better.

Make no mistake, these are not just numbers. Behind every statistic there's a story. Many Americans have seen their lives turned upside down. Families have been forced to make painful choices. Parents are struggling to pay the bills. Patients can't afford care. Students can't keep pace with tuition. And workers don't know whether their retirement will be dignified and secure.

The good news is that we are moving forward with a sense of urgency equal to the challenge. This week the House passed the American Recovery and Reinvestment Plan, which will save or create more than 3 million jobs over the next few years. It puts a tax cut into the pockets of working families, and places a down payment on America's future by investing in energy independence and education, affordable health care, and American infrastructure.

Now this recovery plan moves to the Senate. I will continue working with both parties so that the strongest possible bill gets to my desk. With the stakes so high we simply cannot afford the same old gridlock and partisan posturing in Washington. It's time to move in a new direction.

Americans know that our economic recovery will take years -- not months. But they will have little patience if we allow politics to get in the way of action, and our economy continues to slide. That's why I am calling on the Senate to pass this plan, so that we can put people back to work and begin the long, hard work of lifting our economy out of this crisis. No one bill, no matter how comprehensive, can cure what ails our economy. So just as we jumpstart job creation, we must also ensure that markets are stable, credit is flowing, and families can stay in their homes.

Last year Congress passed a plan to rescue the financial system. While the package helped avoid a financial collapse, many are frustrated by the results -- and rightfully so. Too often taxpayer dollars have been spent without transparency or accountability. Banks have been extended a hand, but homeowners, students, and small businesses that need loans have been left to fend on their own.

And adding to this outrage, we learned this week that even as they petitioned for taxpayer assistance, Wall Street firms shamefully paid out nearly $20 billion in bonuses for 2008. While I'm committed to doing what it takes to maintain the flow of credit, the American people will not excuse or tolerate such arrogance and greed. The road to recovery demands that we all act responsibly, from Main Street to Washington to Wall Street.

Soon my Treasury Secretary, Tim Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families. We'll help lower mortgage costs and extend loans to small businesses so they can create jobs. We'll ensure that CEOs are not draining funds that should be advancing our recovery. And we will insist on unprecedented transparency, rigorous oversight, and clear accountability -- so taxpayers know how their money is being spent and whether it is achieving results.

Rarely in history has our country faced economic problems as devastating as this crisis. But the strength of the American people compels us to come together. The road ahead will be long, but I promise you that every day that I go to work in the Oval Office I carry with me your stories, and my administration is dedicated to alleviating your struggles and advancing your dreams. You are calling for action. Now is the time for those of us in Washington to live up to our responsibilities.