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Joint Economic Committee Democrats Chairman - Senator Martin Heinrich (D-NM)

Press Center

Mar 10 2020

At Weekly Democratic Presser, Vice Chair Beyer Emphasizes Economic Impact of the Coronavirus

“Yes, among many other things,” Beyer said when asked whether Democrats are considering direct cash payments to those affected as part of a fiscal response

WASHINGTON—Today, at the House Democratic Caucus weekly press conference, Congressman Don Beyer (VA-8), the Vice Chair of the U.S. Congress Joint Economic Committee (JEC) emphasized that the coronavirus isn’t just a public health crisis, but also an economic one.

After the press conference, when asked whether Democrats are considering direct cash payments to those affected as part of a fiscal response, Beyer said, “Yes, among many other things,” before explaining why the payroll tax cut President Trump is proposing will do very little to stimulate the economy.

Reporter: Some economists are calling for direct cash payments to people who’ve been affected by the virus. Is that something that’s on the tables?

Beyer: Yes, among many other things. Part of the dilemma with the payroll tax cut is that if you’ve lost your job, or you’re in the gig economy, or many other things, [then] you’re not going to get anything. Or if you’re with so many Americans making $25,000 or less, then it ends up being like $10 a week, [which is] not enough to really do anything. So among the many things that we must consider to get the stimulus going again, direct payments will at least be part of that.

Below are Congressman Beyer’s remarks as delivered.

The outbreak of the coronavirus is a public health crisis that has infected tens of thousands of people in the U.S. and abroad.

In Virginia, there are already five confirmed cases, two in my district. I found out a good friend of mine in D.C. is in the hospital right now with coronavirus.

These people, their families and everyone else who has been infected by this virus are very much in my thoughts.

Our overwhelming concern is about public health—lives are at stake—and this appears to be the most serious public health crisis in our lifetimes.

President Trump’s incompetent leadership on the coronavirus is really hurting our response, which in turn is hurting the economy.

As the number of cases proliferates and fear spreads, markets have plunged into chaos, and there are even more ominous signs that more might be coming.

Treasury bonds are now trading below 1 percent yields, that zero threshold is in sight, and it’s a strong indicator of possible recession.

Businesses are suffering, too, because of the coronavirus’s impact on supply chains.

Consumer spending, which as you all know has been a main engine of economic growth, is likely to fall as Americans are forced to cut back on their usual activities.

Service industries will be particularly hard hit.

The effects could ripple through the economy.

Goldman Sachs is now predicting ZERO economic growth for the second quarter.

Former Federal Reserve Chair Janet Yellen has said that the coronavirus “could throw the United States into a recession.”

The Federal Reserve has little room left to cut interest rates after the cuts last year to compensate for the damages of President Trump’s trade wars and what they did to farmers, businesses and consumers.

Stopping all this depends on stopping the spread of the disease. That is where the priority must be.

Last week, we passed an $8 billion emergency bill to address, principally, the public health emergency, with investments for treatment and research.

Now we are in talks to figure out what we need to do next to further strengthen the response and prevent this outbreak from getting even worse.

So focusing on economic symptoms first is the wrong approach. If we just want to protect the economy, the very first thing we have to do is protect public health and the people directly impacted by the coronavirus.

This means workers who have to stay home because of a quarantine, because their child is ill or because their child’s school is closed, and make sure that they receive sick pay. We don’t want people to have to choose between a paycheck and preventing the spread of the disease.

It also means that people can get tested and, if necessary, get treated for coronavirus without having to fear about crushing medical debt. The last thing we want is people not to get tested because they can’t afford it, not to get treated because they’re afraid they can’t afford it.

It also means that ensuring that workers who are laid off because of the virus have access to unemployment benefits.

It means making sure that people, especially kids, who depend on social services for food—I think about all the kids on the Route 1 corridor in Alexandria, these kids depend on school breakfasts and school lunches—that they don’t go hungry.

It means supporting small businesses that are having to make do without employees and without customers.

That’s why we included some low-interest loans to small businesses in the emergency bill last week, but more can be done and there are a lot of good economic proposals out there.

The American people understand that there is a serious and growing threat to the economy, but they are still mostly concerned about getting sick.

Let’s be clear—the most important thing President Trump could do to protect the economy would be to lead an effective response to the coronavirus outbreak. His performance on public health and what happens to the economy are deeply intertwined.

That’s why I’m so concerned.

The White House has been discussing emergency measures, but so far the President’s economic efforts have consisted of bluff, bluster and confusing the public health messaging.

In a crisis as serious as this one, we need competent leadership.

One more thing before I turn it over to my colleague Dr. Ruiz.

27 million Americans don’t have health care coverage in this economy. Among the lower quarter, mostly our retail workers or food service workers, 50 percent don’t have health care and 43 million don’t have paid sick leave.

Bottomline: These are the folks who could make this epidemic truly disastrous if they are not paid for when they get sick, if they are not compensated for when they lose their jobs.

Bottomline: If we want to protect public health, if we want to protect the economy, from the coronavirus and future outbreaks, we need to make sure that all Americans have access to quality, affordable health care and paid sick leave.

We’ve been talking about paid sick leave for years and it’s really unfortunate that it takes a crisis like this to finally get the attention of the White House.

With that, let me turn this over to one of the most distinguished physicians in the U.S. House and in our country who has been giving us lots of good advice along the way—Dr. Ruiz.

Thank you.

Congressman Beyer is currently serving his third term in the U.S. House of Representatives, representing Northern Virginia suburbs of the nation’s capital. In addition to his role as Vice Chair of the JEC, Beyer serves on the House Committee on Ways and Means and the House Committee on Science, Space and Technology.

Mar 06 2020

Vice Chair Beyer: Despite Strong Jobs Numbers, the Road Ahead is Uncertain

Washington, D.C.—Today, Congressman Don Beyer (D-VA), the Vice Chair of the U.S. Congress Joint Economic Committee, released the following statement in response to the Bureau of Labor Statistics report that nonfarm payroll employment grew by 273,000 in February and the unemployment rate was 3.5 percent.

“It’s difficult to celebrate given the coming impact of the coronavirus, which may soon make this report irrelevant. The outbreak will pose a substantial threat to both public health and the economy if the administration is not able to contain it. We need to focus on the immense challenges ahead.

“The President’s ineffective response to the coronavirus has shaken the economy. The stock market is extremely volatile and to many people frightening, after suffering the worst weekly drop since the financial crisis. Businesses have more questions than answers right now because the President only offers obfuscation.

“The Fed took surprising action by cutting interest rates before its March meeting, and Congress passed an emergency supplemental bill that includes provisions that help small businesses—but we don’t know yet whether that will be enough to stabilize the economy. In the end, neither the Fed nor Congress will be able to overcome the President’s misinformation and missteps.

“In the manufacturing industry, which is in a recession, we’ve lost 5,000 jobs since the beginning of the year. Add to that the impact that the coronavirus and the trade wars are having on supply chains and we’re likely to see job growth in manufacturing that’s even more disappointing.

“In addition, although the President talked about a ‘blue-collar boom’ in the State of the Union, in recent months it’s been more like a bust. But by now we should know that the fact that the President says something doesn’t make it so. Wage growth has been slower than expected, and was again modest in February, and if it wasn’t for states that have increased the minimum wage, as a result of pressure from Democrats, many workers would be making even less.

“Americans are having to do more with less—and many work more than one job to make ends meet. Their wages aren’t keeping up with the costs of housing, health care and child care. In addition, too many Americans have yet to see anything trickle down from the President’s tax cuts for corporations and the rich, which will add $1.9 trillion to the national debt.”

Congressman Beyer is currently serving his third term in the U.S. House of Representatives, representing Northern Virginia suburbs of the nation’s capital. In addition to his role as Vice Chair of the JEC, Beyer serves on the House Committee on Ways and Means and the House Committee on Science, Space and Technology. 

Mar 04 2020

Vice Chair Beyer to Mnuchin: Immediately Release “Internal Projections” Supporting Trump Tax Cut Claim

Washington, D.C.—Today, in a letter to Treasury Secretary Steven Mnuchin, Congressman Don Beyer (D-VA), the Vice Chair of the Joint Economic Committee, demanded the immediate release of what the Trump cabinet official said were “internal projections” supporting his claim that the Trump tax cuts will pay for themselves.

Although Mnuchin testified at a hearing of the Subcommittee on Financial Services and General Government of the U.S. House of Representatives House Appropriations Committee that “this is just math,” estimates from the nonpartisan Congressional Budget Office show that the 2017 tax cuts will add $1.9 trillion to the national debt.

“As Vice Chair of the U.S. Congress Joint Economic Committee, I request that you release these important internal projections immediately,” Beyer wrote. “They are at odds with every reputable study about the effect of Public Law 115-97 on the economy and, if your calculations are correct, they could reshape our understanding of the relationship between taxes and economic growth. It is critical that Congress have access to this potentially revolutionary research.”

Full text of letter is below and here.

March 4, 2020

The Honorable Steven T. Mnuchin
Secretary of the Treasury
U.S. Department of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

On Wednesday, March 4th you testified to the Subcommittee on Financial Services and General Government of the U.S. House of Representatives House Appropriations Committee that “internal projections” showed that Public Law 115-97 (previously known at the “Tax Cuts and Jobs Act”) is boosting economic growth to such a degree that new federal tax revenues will exceed the revenues lost as a result of the tax cuts – that the tax cuts would pay for themselves. You said that this was “just math.”

As Vice Chair of the U.S. Congress Joint Economic Committee, I request that you release these important internal projections immediately. They are at odds with every reputable study about the effect of Public Law 115-97 on the economy and, if your calculations are correct, they could reshape our understanding of the relationship between taxes and economic growth. It is critical that Congress have access to this potentially revolutionary research.

As you know, several non-partisan organizations have estimated the effect of the 2017 tax cuts on economic growth and tax revenue. These estimates take into account the various channels by which tax cuts could, in theory, boost economic growth such as increasing labor supply by reducing marginal tax rates on labor or increasing productivity reducing the marginal tax rate on investment.

Important examples of this research include:

  • The Joint Committee on Taxation estimated in December 2017 that Public Law 115-97 would cost $1.5 trillion over 10 years without incorporating macroeconomic feedback and $1.1 trillion after incorporating macroeconomic feedback.
  • The Congressional Budget Office in April 2018 estimated that the tax cuts would cost $1.9 trillion both without incorporating macroeconomic feedback and after incorporating macroeconomic feedback along with debt service costs.
  • Private-sector forecasters such as Moody's and Goldman Sachs estimated that Public Law 115-97 would only increase GDP at the end of the ten-year budget window by less than a percentage point--well short of the amount needed for the tax cuts to pay for themselves. 

Data available since passage of the Public Law 115-97 further undermine the case that it will pay for itself. Total federal revenue in 2018 was $275 billion (7.6 percent) below pre-Public Law 115-97 projections. If the law were already producing economic growth sufficient to pay for itself, then revenue would have stayed at least constant.

Proving the research of these institutions wrong would be real news and it would reshape every aspect of federal spending and tax policy. Given the far reaching implications of Treasury’s internal projections, it is vital that they be released to Congress and the public immediately.

Sincerely,

DON BEYER
Vice Chair, Joint Economic Committee

Mar 03 2020

Vice Chair: Fed Interest Rate Cut Is No Substitute for Presidential Leadership on Coronavirus

Washington, D.C.—Today, Congressman Don Beyer (D-VA), the Vice Chair of the Joint Economic Committee, released the following statement on the Federal Reserve’s decision to cut interest rates by half a percentage point in response to concern that the coronavirus may hurt the U.S. economy.

“I welcome the Fed’s timely and aggressive action. It’s critical for the President to be equally aggressive in his efforts to protect public health, turning from complacency and denial to a coordinated, full-bore response. The Fed’s actions alone won’t calm markets and stabilize the economy – it will require presidential leadership and a level of competence that the administration has thus far failed to demonstrate.

“So far, the President’s failure to respond effectively to the coronavirus has put us at greater risk.

"Just yesterday, the CDC removed from its website the number of people who have been tested for the virus. When lives are at stake, the public needs more information from government – not less – that’s accurate, and not pseudoscience from the President.

“The President’s lack of leadership on the coronavirus won’t just hurt our health, it’s very likely that it will hurt our economy. The stock market already has suffered the worst weekly drop since the financial crisis. Businesses are at risk because their supply chains are interrupted – including the supplies of key medicines and medical supplies. In addition, markets for American exports are affected, as are imports from Asia at U.S. ports. Economists predict that the outbreak could have a substantial impact on GDP.

“Ironically, our public health and our economy are at risk in part because of our country’s failure to provide quality, affordable health coverage and paid sick leave to everyone. People without paid sick leave will go to work when, from a public health standpoint, they should stay home. This puts others at risk, multiplying the rate of infection. It’s time for us to realize that family-friendly policies, both quality, affordable health coverage and paid sick leave, are essential to maintaining public health and for safeguarding our economy.

“Instead of a president who plays politics when it comes to the human and economic impact of the virus – as the President did last week during his press conference – we need one who will actually lead. The coronavirus doesn’t care about the President’s pride or poll numbers.

“Ultimately, the lack of leadership coming from the President could make a bad situation worse, which would result in even more lives at stake. But it’s hard to be surprised by his ignorance and inaction since this is a president who wants to put Americans’ health at risk by cutting the National Institutes of Health and the Centers for Disease Control budgets by billions.”

Feb 25 2020

At Hearing on Improving Family Stability, Beyer Pushes for Family-Friendly Policies

Washington, D.C.— Today, at a Joint Economic Committee (JEC) hearing on improving family stability, U.S. Congressman and JEC Vice Chair Don Beyer (D-VA) probed witnesses about the economic challenges facing families and what can be done at the federal level to support them.

“Some say that the stability of American families is just a matter of marriage and morals, but economic challenges are an overwhelming factor. We’re not returning to a ‘Leave-It-To-Beaver’ America, so it’s best that we focus on supporting families in whatever form they take,” Beyer said.  

“Family-friendly policies such as affordable childcare, paid family and medical leave and the earned income tax credit are essential for families to survive and thrive,” Beyer continued. “We need to strengthen and streamline these policies so they better reflect the reality of families.”

Read Beyer’s written opening statement here. Excerpts from the statement are below.

Fact 1: Teen pregnancy is at a record low.

  • “Between 1991 and 2015, the teen birth rate dropped by almost two-thirds, thanks in part to the Affordable Care Act.”

Fact 2: Declining marriage rates largely are a result of economic challenges.

  • “If you’re struggling financially, your wages haven’t gone up or you’ve lost your job—getting married is neither feasible nor practical.”

Fact 3: Americans want to get their economic footing before marriage.

  • “Young Americans today want to get their economic footing before they get married. They correctly understand that they must get an education or training to achieve financial success. If they wait longer to get married, it’s not because they are anti-marriage. It’s because they are pragmatic.”

Fact 4: Traditional family structures are not the only path to success.

  • “It’s true, that as people delay marriage, there are more babies born to unmarried parents. That holds across demographic groups and race. And it’s true in the United States and elsewhere.”
  • “It’s also true that fathers today spend significantly more time caring for their children than in previous generations—in fact, three times the amount as in 1965.”

Fact 5: Real challenges facing families are economic.

  • “Forty-four percent of workers earn just $18,000. And many are working two and three jobs.”

Fact 6: We should invest in proven programs.

  • “Increase the minimum wage. Expand the EITC. Provide affordable, quality child care. Protect nutritional supports. Ensure workers have real bargaining power—to negotiate wage increases, predictable hours and better working conditions.” 

Fact 7: We need “family-friendly” policies like paid leave

  • “I’m pleased and encouraged that federal workers will be able to take 12 weeks paid leave to care for a newborn or adopted child. We should expand that same policy to workers in the private sector.”

Fact 8: Government policies need to catch up to the way Americans live.

  • Finally, part of the challenge for families is that our government hasn’t kept pace with the way people are living their lives. For example, the share of multigenerational households is growing, but our policies haven’t changed.”

Congressman Beyer is currently serving his third term in the U.S. House of Representatives, representing Northern Virginia suburbs of the nation’s capital. In addition to his role as Vice Chair of the JEC, Beyer serves on the House Committee on Ways and Means and the House Committee on Science, Space and Technology. He represents the largest number of federal employees of any member of the House.

Feb 20 2020

Vice Chair Beyer: Economic Report of the President Ignores Major Economic Challenges

Congressman Don Beyer (D-VA), Vice Chair of the Joint Economic Committee, issued the following statement after the White House released its 2020 Economic Report of the President.

“Like the Administration’s recently released budget, this report rests on a shaky foundation of rosy growth forecasts that are far higher than those from CBO, the Federal Reserve and private forecasters.

“In other important ways, it appears disconnected from reality. It does not mention climate change once in 435 pages. Nor does it devote even a paragraph to the huge budget deficits and massive long-term debt which are the result of the Republican tax giveaway to large corporations and the wealthy.

“The report also minimizes the negative impacts of rising market concentration on workers’ bargaining power and their wages. Many economists, including work from the Council of Economic Advisers during the Obama administration, have shown that wage growth has been constrained by a small number of large companies dominating key sectors of the economy. Yet, this administration appears determined to come down on the side of large corporations and the wealthy, no matter what the data tell us.

“Ironically, Acting CEA Chair Tomas Philipson undercuts the President’s ludicrous claim that China bears 100 percent of the cost of his trade war. Philipson acknowledged today that the Administration’s trade policies have created uncertainty and slowed investment and growth. Perhaps this was simply an effort to explain away the modest 2.3 percent GDP growth in 2019.

“Now, the administration needs to change its policies that are harming Americans.”

Congressman Beyer is currently serving his third term in the U.S. House of Representatives, representing Northern Virginia suburbs of the nation’s capital. In addition to his role as Vice Chair of the JEC, Beyer serves on the House Committee on Ways and Means and the House Committee on Science, Space and Technology. He represents the largest number of federal employees of any member of the House.

Feb 14 2020

Vice Chair Don Beyer Releases Report on the Economic Status of Black Americans

WASHINGTON, DC—Congressman Don Beyer (D-VA), Vice Chair of the Joint Economic Committee, today released a new report examining recent economic progress and remaining challenges facing the Black community in America.

“The data captured in this report show significant changes affecting African Americans which include both progress and areas where significant disparities remain,” said Beyer. “In the latter category, the unemployment rate for Blacks is almost twice what it is for Whites, which is unacceptable. Closing persistent, and in some cases, growing gaps between the economic experiences of White Americans and Black Americans is vital to helping our society overcome its history of racial discrimination.”

The report shows that Black Americans have made substantial progress, for example:

  • Black college graduation rates more than doubled from 1990 to 2018.
  • By 2017, the share of Black women enrolled in college exceeded the share of White men enrolled.
  • Incarceration rates for Black Americans fell by nearly one-third between 2007 and 2017.
  • The gap in life expectancy between non-Hispanic Blacks and Whites decreased between 2006-2010, though progress since has stalled.

Yet glaring inequities persist:

  • The Black unemployment rate remains twice as high as the White unemployment rate (6.0 percent vs 3.1 percent in January 2020).
  • The median net worth for White families is nearly 10 times greater than for Black families.
  • Black households earned just 59 cents for every dollar White households earned in 2018.
  • Fewer than half of Black families own their home compared to nearly three-fourths of White families.

Congressman Beyer is currently serving his third term in the U.S. House of Representatives, representing Northern Virginia suburbs of the nation’s capital. In addition to his role as Vice Chair of the JEC, Beyer serves on the House Committee on Ways and Means and the House Committee on Science, Space and Technology.

Feb 07 2020

Vice Chair Beyer: Overall Jobs Gains Mask Weakness in Manufacturing

Congressman Don Beyer (D-VA), Vice Chair of the Joint Economic Committee, issued the following statement after the Bureau of Labor Statistics reported that nonfarm payroll employment grew by 225,000 in January and the unemployment rate was 3.6 percent.

 “I’m happy to see the economy continued to add jobs at a healthy rate in January, thanks to the dynamism of American businesses. More people are returning to the workforce and that’s another positive.  

“But, there are storm clouds on the horizon, including slowing global growth and uncertainty surrounding the economic impacts of the coronavirus. The president’s ill-conceived trade war has hurt the global economy and helped push American manufacturing into recession. Even with the strong overall employment gains in the past few months, manufacturing job growth has stalled, with the sector adding no jobs over the past four months and just 6,000 over the past half a year.

“The president claimed in his State of the Union speech that we are experiencing the “best” economy in American history. However, job growth has slowed dramatically under President Trump. In the first three years of his administration, 1.5 million fewer jobs, or 42,000 per month, have been added than in the last three years of the Obama presidency. This inconvenient fact was omitted from the president’s address.

“Many people, even those working, are being left behind. The Republican tax cuts have ballooned the budget deficit, making it harder to invest in America’s future and exacerbating inequality.”

Congressman Beyer is currently serving his third term in the U.S. House of Representatives, representing Northern Virginia suburbs of the nation’s capital. In addition to his role as Vice Chair of the JEC, Beyer serves on the House Committee on Ways and Means and the House Committee on Science, Space and Technology. He represents the largest number of federal employees of any member of the House.

Press contact
Harry Gural
(202) 224-2675

Jan 30 2020

Rep. Beyer Says GDP Report Shows that Brief Sugar High Is Over

WASHINGTON—Congressman Don. Beyer (VA-08), Vice Chair of the U.S. Congress Joint Economic Committee, issued the following statement after the Bureau of Economic Analysis (BEA) released its initial estimate of fourth quarter gross domestic product (GDP), showing that GDP grew at annual rate of 2.1 percent in the fourth quarter of 2019, the same rate as in the previous quarter. Overall, real GDP increased 2.3 percent in 2019, compared to a 2.9 percent increase in 2018.

“The president and his team promised that his tax cuts would lead to GDP growth of three to six percent. It’s now clear that they haven’t come close. We’ve now had three straight quarters of modest economic growth. Three straight quarters where business investment has fallen. Manufacturing has contracted for three of the last four quarters. Whatever short-term boost to the economy resulted from the tax cuts has worn off.

“The Republican tax law added nearly $2 trillion to the national debt but delivered little sustained benefit. Our country faces pressing economic challenges and instead of addressing those challenges, the president and Republicans in Congress chose to give very large tax cuts to those who didn’t need them and run up the deficit. We should have invested in roads and bridges and in education to prepare the next generation to compete in today’s global economy.

“While the Republican tax law did little to boost growth, the administration’s trade policies are actually slowing growth and costing consumers money. According to the Congressional Budget Office’s latest forecast, the administration’s tariffs will reduce real GDP by 0.5 percent this year and reduce average household income by nearly $1,300. It’s time for the administration to face this reality and change policy.”

Beyer is currently serving his third term in the U.S. House of Representatives, representing Northern Virginia suburbs of the nation’s capital. In addition to his role as Vice Chair of the JEC, Beyer serves on the House Committee on Ways and Means and the House Committee on Science, Space and Technology. He represents the largest number of federal employees of any member of the House.

 

Press contact
Harry Gural

(202) 224-2675

Jan 28 2020

Rep. Don Beyer Statement on CBO Report

Congressman Don Beyer (VA-08), Vice Chair of the U.S. Congress Joint Economic Committee, issued the following statement after the Congressional Budget Office (CBO) today released its “Budget and Economic Outlook: 2020 to 2030.”

“Treasury Secretary Steven Mnuchin just said he still thinks the GOP tax cuts will pay for themselves. What began as a wildly unrealistic political promise has now turned into economic gaslighting. CBO’s new forecast shows just how little growth we got for the Republican tax cuts, and confirms that our children will be paying for these tax breaks for the wealthy for years to come.”

CBO forecasts a deficit of $1 trillion in 2020 and average annual deficits of $1.3 trillion between 2021 and 2030. Real GDP growth will average just 1.7 percent per year between 2021 and 2030. Deficits are projected to reach 5.4 percent of GDP by 2030. Federal debt held by the public is forecast to climb to 98 percent of GDP in 2030, up from 79 percent in 2019.

Press contact
Harry Gural
Harry_Gural@jec.senate.gov
(202) 224-2675