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Money Matters: Take Action on Economic Stimulus. Military Budget Cuts--Becoming Thinkable? - 11/20/08

Money Matters FCNL’s Budget Interest Group 11/20/08

I. Welcome Back from the Election
II. The Lame Duck Session
a. Take Action on Economic Stimulus!
III. Military Budget Cuts – Becoming Thinkable Again?

Welcome Back from the Election!

We’ve been busy at FCNL, preparing for our Annual Meeting this past weekend and planning for the 111th Congress and the next administration.

Here’s what we know so far about the makeup of the new Congress: Senate: 58 Democrats (including independents Joe Lieberman [CT] and Bernie Sanders [VT], who caucus with the Democrats), 40 Republicans, and 2 (races in Minnesota and Georgia) still undetermined House: 256 Democrats, 175 Republicans

President-Elect Barack Obama won 53 percent of the popular vote or 365 electoral votes (Sen. John McCain [AZ] won 46 percent of the popular vote or 173 electoral votes).

This certainly was a historic election, largely decided by economic concerns! A new report by the Economic Policy Institute suggests that the 2008 election marked a new era of thinking about economic issues.

The Lame Duck Session

Both the House and Senate are back in Washington this week for a lame duck session to appoint committee members and discuss proposals to stimulate the economy. It is increasingly unclear that they’ll actually do anything to help the economy.

The Auto Industry Bailout The energy bills passed earlier this year offered the auto industry some incentives to develop more fuel-efficient cars. Now carmakers are requesting more money (around $25 billion) with fewer strings attached to keep their factories open. The auto industry bailout has been hotly debated in Congress. Congressional leaders seem inclined to fund such a bailout by using some of the money already allocated for the Troubled Asset Recovery Program, and to attach some conditions that would require automakers to increase accountability, transparency, and perhaps fuel efficiency.

The Reid/Byrd Economic Recovery Act of 2008 Introduced by Senate Majority Leader Harry Reid (NV) and Senate Appropriations Committee Chairman Robert Byrd (WV), the proposed recovery act includes many of the stimulus provisions that FCNL has been supporting, including a temporary increase in food stamps, an extension of unemployment insurance, aid to states for Medicaid, and money for infrastructure development. It is important that the Senate pass a stimulus during the lame duck session to help people struggling through the recession.

• Food stamp benefits are not keeping pace with the rising cost of food, and food stamps are the most effective economic stimulus — one dollar spent on food stamps creates $1.73 in economic stimulus. Read more.
• 2.7 million people have been jobless for 27 weeks or more and are currently depending on unemployment insurance to stay afloat. These people will lose their unemployment insurance benefits in December unless Congress acts quickly. Jobs simply aren’t available. According to a recent Bureau of Labor Statistics survey, there is only one job available for every three people looking for work. Read more.
• The Reid/Byrd bill would create 635,000 jobs, many of them in needed infrastructure development.

The Reid/Byrd bill was introduced Monday night, and the Senate is expected to vote on it Thursday or Friday.

Take action on economic stimulus now.

Call your senator at 800-473-6711

Military Budget Cuts – Becoming Thinkable Again?

According to a recent article in the Boston Globe, a senior Pentagon advisory board has advised President-Elect Barack Obama that the current military budget is “not sustainable.”

A similar article released by Taxpayers for Common Sense confirms that Obama has pledged to review military spending for possible cuts.

Rep. Barney Frank (MA), chair of the House Financial Services Committee, has called for a 25 percent reduction in military spending as part of an economic recovery program.

FCNL is responding to the debate on military spending with a new coalition campaign, Our Nation’s Checkbook, to bring public attention to our lopsided budget priorities and advocate for redirecting military spending to human needs. At our annual meeting last weekend, FCNL urged constituents to talk to their congress members about budget priorities. Look for more updates on Our Nation’s Checkbook in future issues of “Money Matters.”