202.225.0773 "BIG DEAL" IS FOUNDATION FOR "LONG-TERM AUSTERITY, PAIN AND SUFFERING" Why I Voted "No" On The Budget Deal Statement By Congressman Jesse L. Jackson, Jr.      

The result of the "Big Deal" that House Speaker John Boehner, Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell negotiated will result in long-term austerity, pain and suffering for many Americans.

Welcome to Austere America! The era of austerity has begun! Democrats were faced with two draconian choices: (1) vote "against" the package and the result would be a job killing default according to House Speaker Boehner; or (2) vote "for" the package and, from my perspective, the result will be a job killing austerity. The budget negotiators absolutely concluded a "Big Deal." It's a "game changer." The United States is about to become the austere Japan of the 1990s and the austere Great Britain of 2011. Budget deficits and debt will go up - not down. Unemployment will go up - not down.

Suffering by the American people will go up - not down. Economic growth will remain stagnant or slow at best and will not address the need for jobs for the unemployed. In short, I predict the result of this agreement will be the opposite of the current spin. While all Democrats agree that reducing the deficits and taming the debt is something that must be dealt with in the future, the immediate issue is not "deficit reductions" but "job reductions" (i.e., creating enough jobs for 17 million unemployed Americans). Reducing federal spending in a weak economy is the exact opposite of what is needed now! Republicans and conservative Democrats preposterously argue "tax and budget cuts will equal more jobs and more tax revenues" - the "Laugher" Curve. The biggest tax cuts in history in 2001 and 2003 resulted in the loss of 600,000 private jobs over eight years. To stimulate the economy, the Congress passed and the President signed a $757 billion stimulus package that kept us out of another Great Depression, but it was unable to rescue unemployed workers from the current Great Recession. The Republican argument reminds me of the man whose house caught on fire and when he couldn't put it out with a garden hose he concluded, “Water doesn’t put out fire.” Water does put out fire, but you have to have enough of it to fit the size of the fire, and you have to put it in the right place. Some argue - because of the possibility of default - the President and Democrats had no alternative.

I disagree. First, even the threat of using Section 4 of the 14th Amendment by the President (which he took off the table) would have strengthened his negotiating hand. Second, he could have fought for an alternative strategy of invest, grow and build which would have put Democrats on our turf and on the offense instead of on the Republicans turf and on the defense - and such a plan would create jobs, reduce deficits and debt. The most vulnerable Americans will again suffer the most under this agreement. This is a very bad and sad day for America! -30- Frank E. Watkins Press Secretary/Director of Communications Congressman

Jesse L. Jackson, Jr. 2419 Rayburn HOB Washington, DC 20515-1302 Office 202.225.0773 FAX 202.225.0899 E-Mail frank.watkins@mail.house.gov

Home