I don't disagree that the government has a place in the marketplace. Those who believe the invisible hand directs all aspects of all things free-market aren't familiar with history. But those who believe that bringing our country to financial ruin will mean future prosperity also don't know their history.

We should pray for help!

February 9, 2009

Dear Mr. Sampson:

Thank you for contacting me with regarding an economic stimulus package to assist middle-class Americans. I appreciate hearing from you on this important issue.

Day after day, the economic news in our nation grows bleaker. The national unemployment rate recently surpassed 7 percent, with more than 126,000 people unemployed in Connecticut alone. Each day, more and more families in our state find themselves struggling to stay in their homes, as the rising tide of foreclosures erodes house prices. These grim facts, coupled with rising health care and energy costs and a sagging stock market, have many middle-class Americans deeply concerned. They see their retirement savings plummet, their ability to access credit drying up, and their ability to send their children to college becoming ever more difficult.

I believe that helping the middle class is the best way to jump-start our economy. As you may be aware, Senators Harry Reid (D-NV) and Robert Byrd (D-WV), introduced a $100 billion economic recovery package geared toward helping hard working Americans in November of 2008. Regrettably, this measure met substantial opposition and was not taken up by the full Senate, though Congress was able to pass legislation providing for an additional 7 weeks of emergency unemployment benefits to all states, and an additional 13 weeks on top of that to states deemed "high unemployment states." Regrettably, Connecticut is one of these states, with an unemployment rate of 7.1 percent. This small step was designed to help the millions of Americans who find themselves facing the worst job market in 17 years.

Fortunately, with the commencement of the 111th Congress and the inauguration of a new President, the focus has shifted from partisan bickering to finding real solutions to the problems facing the American people. On January 28, 2009 the House of Representatives passed the American Recovery and Reinvestment Act, a bill which represents a serious investment in the future of the United States. The House-passed legislation contains $526.5 billion in spending on important initiatives such as infrastructure improvements, renewable energy, and other programs to create jobs. The bill's spending also makes critical down-payments on our nation's future economic health, updating our nation's energy grid, education and health care systems. The legislation also contains important funding for housing and direct aid to states with severely strained budgets, such as Connecticut. Additionally, families who are dependent upon food stamps and unemployment insurance to make ends meet will see an extension of this aid. This bill also has a substantial package of middle-class tax breaks, which will further provide fast economic relief to 95 percent of working families. Altogether, the House legislation will cost a total of $819 billion. The Office of Management and Budget (OMB) predicts that the funds from this critical legislation will be pumped into the economy quickly, with 75 percent of the spending injected into the economy within 18 months of passage. So while the costs are high, I believe that the economic benefits of this legislation will be substantial, aiding million of Americans in weathering our current downturn and mitigating an ever worse economic environment.

The Senate expects to take up the American Recovery and Reinvestment Act in the coming weeks. The package, which has been primarily worked on by the Senate Appropriations and Finance Committees is similar in size and scope to that passed by the House, though some key differences do exist. As the Senate begins consideration of the measure, please be assured of my strong commitment to not only investing in the middle-class which is the backbone of our economy, but also investing in our future so that economic growth benefits all Americans. I look forward to working with my colleagues to passing this bill, and working with the House to create a final package that achieves these goals in the most transparent, effective manner. Please be assured that I will keep your views in mind throughout the bill's consideration by the Senate.

Thank you again for contacting me. If you would like to stay in touch with me on this or other issues of importance, please visit my website at http://dodd.senate.gov/ and sign up for my regular e-mail alerts. Please don't hesitate to contact me in the future if I may be of assistance to you in any way.

Sincerely,

CHRISTOPHER J. DODD
United States Senator

Dear Mr. Coman:

Thank you for contacting me in support of a second economic recovery package - one that would go further to assist financially hard-pressed families, preserve crucial public services, and boost our nation's economy.

I share your concerns, and I strongly support passage of a comprehensive federal economic stimulus package to help jumpstart our economy. Unemployment in Connecticut is on the rise and prices for food, energy, child care, and other basic necessities are squeezing already tight family budgets. As you mentioned, many states are already facing serious budget shortfalls that have forced them to cut back on vital services, such as health care, education, child care, and assistance programs for elderly and disabled Americans, among others. The effects of the current credit and liquidity crisis in the financial sector are spilling over to Connecticut and affecting the ability of our businesses to finance their operations and meet their payroll.

Most recently, in November 2008, Congress, with my support, approved the Unemployment Compensation Extension Act (P.L. 110-449), which was signed into law by the President. This statute will provide seven additional weeks of unemployment benefits for those who have exhausted their unemployment insurance benefits. This measure will also provide 13 more weeks of unemployment benefits for workers in states - like Connecticut - with high unemployment, defined as a three month average of six percent or higher.

We must do more. We need a stimulus package that includes spending on "shovel-ready" infrastructure projects, rebate checks for lower and middle income households, aid to state and local governments, and assistance for people with their health care and energy costs. The stimulus will need to be a large sum of money, because, in a $14 trillion dollar economy, it will take a big push to help turn the ship around.

First, we must immediately put people to work refurbishing our roads, highways and bridges. For too long, we have postponed spending on this crucial priority. In addition to refurbishing our 20th century infrastructure, we must also fund the innovative, 21st century public transportation projects that can start to take more cars off the road, ease congestion and reduce greenhouse gas emissions. Second, in order to provide relief to struggling, working families and stimulate badly needed consumer spending, we should provide taxpayers with an immediate, refundable tax rebate check. The rebate checks should be targeted at lower and middle income households, which are more likely to spend the income. They should be larger for families with children, and they should also go to retirees and disabled veterans that would otherwise not receive a rebate check because they do not earn a paycheck. Third, we should temporarily increase the percentage of federal Medicaid matching funds to the states, which could help significantly to plug the state budget shortfalls and ensure that our most needy patients continue to receive the same high quality of care.

It is important to understand that the government alone does not have the ability to "fix" the economy. It is the determination, the creativity, and the genius of the American people that has always been the reason for our country's remarkable successes. These are the factors that will ultimately restore our economic prosperity, but at the same time the government can give the American people and businesses a helping hand, including by helping to create the right environment and incentives for the technologies and the industries of tomorrow to flourish.

In periods of previous economic difficulty, members of both parties have worked together to help facilitate a strong economy and a balanced budget. President-elect Obama has expressed a strong willingness to work in a similar bipartisan manner. With this spirit of bipartisanship members of both sides of the political aisle can come together and work for the American people to restore our prosperity. With sound leadership and firm resolve, there is no challenge the American people cannot overcome.

Thank you again for sharing your views and concerns with me. I hope you will continue to visit my website at http://lieberman.senate.gov/ for updated news about my work on behalf of Connecticut and the nation. Please contact me if you have any additional questions or comments about our work in Congress.

Sincerely,

Joseph I. Lieberman

UNITED STATES SENATOR

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