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

Press Center

Mar 24 2016

Op-ed: Another Tough Day for the Prophets of Economic Doom (The Huffington Post)

By Rep. Carolyn B. Maloney

It’s been six years ago to the day since the Affordable Care Act (ACA) was signed into law. This anniversary serves as another reminder that the law is working and that the prophets of doom were wrong... again.

For years now Republicans have claimed almost daily that economic disaster was just around the corner. We were headed toward hyperinflation, the collapse of the dollar and the loss of jobs. But as I noted in a column a year ago, real economic events have proven the Republicans wrong time and time again.

By almost any measure, the state of our economy is stronger than when President Obama took office. The economy has grown in 24 of the last 26 quarters. The unemployment rate has been cut in half to 4.9 percent, down from a high of 10 percent in October 2009.

Ever since the Affordable Care Act was passed by Congress, Republicans have predicted doom and wasted time by voting upwards of 60 times to repeal it. They have wailed over and over again that the ACA would be a “job killer.” That it would cause full-time workers to be cut back to part-time jobs. That small businesses would be devastated. And that health care spending would go through the roof and bankrupt us all. Once again, the prophets of doom were wrong. Not just wrong. But spectacularly wrong.

Let’s start with their prediction that the ACA would be a job killer, and let’s highlight the facts.

Starting with the month the ACA became law in 2010, businesses have created 14.3 million jobs over 72 consecutive months of private-sector job growth. That’s the longest streak of private-sector job creation on record.

How about small businesses? Job growth has also been strong for them, as they have added jobs every single quarter since the ACA became law - creating 7.8 million jobs.

The gloomy predictions that the ACA would push Americans into part-time work has also proven to be piffle. Since 2010, 12.6 million full-time workers have been added while the level of part-time employment has remained the same.

And the predictions of soaring costs have been just as wrongheaded. The ACA has been successful in “bending the cost curve.” Private health insurance spending per enrollee had been going up an average of almost 7 percent per year from 2000 to 2005. Since its enactment, these costs have leveled with increases on average of only around 1 percent each year.

In fact, according to the non-partisan Congressional Budget Office, repealing the ACA would increase the nation’s budget deficit by an estimated $137 billion over a 10-year period.

And to be fair, the success of the ACA can’t simply be measured in economic terms. The ACA has also saved lives.

When the rate of uninsured was near its peak, a study conducted at Harvard Medical School found that “nearly 45,000 annual deaths are associated with lack of health insurance.” Then after the ACA was passed, the rate of uninsured dropped like a stone. Twenty million people have gained quality health insurance coverage. The percentage of the population without health insurance is now under 10 percent. That is the first time this has happened in our nation’s history. Access to affordable health care saves lives.

And driving this improvement are the ACA’s common-sense fixes to what was a broken system. An immensely popular change is that young people are now able to stay on their parents’ plan. Another critical improvement is that people who have what the insurance industry calls a “pre-existing condition” no longer have to worry that they will be left high and dry, without insurance and without recourse.

The ACA also helps people change jobs without worrying about being left uninsured. The familiar problem of sticking with a job that was a bad fit - just because it provided benefits - is no longer an epidemic. Families who simply couldn’t get health insurance through their employer can now get it. And for those who can’t afford it, there are subsidies to help them get the coverage they need.

Overall, the ACA is one of the most successful and important pieces of legislation in a generation. It’s time for the prophets of doom to acknowledge the error of their ways and admit that they were wrong. Let’s celebrate the success of the Affordable Care Act and build on this accomplishment, not try and tear it down.

Mar 17 2016

Data Show GDP, Jobs Grow Faster Under Democratic Presidents

By virtually every major measure of economic achievement, the economy has performed better during recent Democratic administrations than during Republican ones, according to a short report released Thursday by JEC Democrats.

Mar 04 2016

Maloney Echoes Warren Buffett: Don't Bet Against America

February Jobs Report Extends Record Streak of Job Growth

Congresswoman Maloney says: “The jobs indicator arrow continues to point skyward. The creation of 230,000 jobs last month is ample evidence that, as Warren Buffett says, you shouldn’t bet against America... This record of consistent growth, however, does not mean our work is done. We know that many Americans are still struggling to regain the economic status they held before the Great Recession. That’s why Congress should step in to help the economy grow even more by investing in infrastructure, coming to grips with our broken immigration system, increasing the minimum wage and making higher education more affordable."

Mar 04 2016

Maloney Issues Response to Economic Report of the President

JEC Ranking Member Maloney releases the Democratic response to the “Economic Report of the President”. The annual report and the committee’s response are required by statute.The Democratic portion of the report puts the seven-year recovery in context, demonstrating how it has taken place in the wake of the worst economic catastrophe since the Great Depression. The response also contains a macroeconomic overview, a section on the global economy, a discussion of long-term economic challenges and appropriate policy solutions.

Mar 02 2016

Economic Report of the President Hearing Statement

Thank you, Mr. Chairman, for calling today’s hearing.

Dr. Furman, thank you for appearing before the Committee today to answer questions about the current state of the U.S. economy.

I share the overall assessment of the Economic Report of the President, that under the leadership of President Obama the nation’s economy is back on track after what was the worst recession since the Great Depression.

We have just completed the best two years of private-sector job growth since the 1990s. 

We have recorded the fastest two-year drop in the annual average unemployment rate in 30 years.

The unemployment rate has been cut in half.

As you can see in this chart, we’re in the midst of the longest streak of private-sector job creation in history – with a record 71 straight months of growth and the creation of 14 million private-sector jobs.

There are some who disparage these achievements, claiming that the Obama recovery pales in comparison to “average” recoveries – as if the economic meltdown during the last years of the Bush administration was an “average” recession.

Is the loss of almost 9 million American jobs “average”?

Is the loss of homes for 9 million Americans “average”?

Let’s remember, when George Bush left the oval office, the economy was in a death spiral.

•           In the final quarter of 2008, GDP shrunk at a staggering 8.2 percent annual rate, the   worst quarterly economic performance in more than 50 years.

•           Housing prices were collapsing. 

•           U.S households lost nearly $13 trillion.

Dr. Furman, last year you told us that this recession was like an economic heart attack. You said the share of wealth lost in the early days of this recession was about five times as large as the loss in wealth that triggered the Great Depression.

Thanks to the bold action of President Obama, Democrats in Congress and the Federal Reserve, we have steadily climbed back from this recession.

•           As you can see in this chart, U.S. GDP has grown in 24 of the past 26 quarters. Real GDP has grown by 14.5 percent since the start of the Obama administration.

•           The auto industry – written off for dead by some – has already added nearly 640,000 jobs since 2009.  And it is now exporting more than 2 million units per year.

•           Average housing prices have rebounded to 2007 levels.

•           And household wealth is more than $17 trillion higher than before the recession.

This recovery has occurred despite efforts by many Republicans in Congress. First, they opposed stimulating the economy. 

In fact, every single one of them in the House voted against the Recovery Act.

They demanded budget cuts at exactly the time when economic theory says government should increase spending to boost demand.

The Report notes that the economy faces long-term structural challenges – first of all, the baby boomers are retiring.

That alone will decrease labor force participation and slow the growth of GDP. We also face the devastating effects of offshoring of American jobs and job losses due to automation and technological change.

These challenges are not a surprise. They have been on economists’ radar for years.

So, what should we do?  I agree with your assessment that we need to rebuild the nation’s crumbling infrastructure, invest in early childhood education, implement paid leave, achieve equal pay for equal work and make college more affordable.

I want to close by looking at economic inequality, one of the central issues of our time, and the focus of the first and fourth chapters of the Economic Report of the President.

The U.S. experience has diverged from other advanced countries. Since 1987, the share of income going to the top 1 percent in the United States has been greater than in every other G-7 country – every single year.

We need to recommit ourselves to policies that expand opportunities and narrow inequality.  These policies will pay dividends in the future and help us create an economy that is even more robust – an economy where the benefits of growth are shared across the income spectrum. 

As you note, giving all people a fair shot will strengthen our economy by boosting productivity and accelerating growth.

Dr. Furman, thank you again for appearing before the Committee today. I am eager to hear your perspective on the economic challenges and opportunities ahead.

 

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Feb 18 2016

Fashion Industry Creates High-Value Jobs Across the U.S.

From Big Cities to Small Cities, Fashion Jobs Are Economic Drivers

As the 2016 Fall/Winter Fashion Week winds down in New York City, a new report released Thursday by JEC Ranking Member Maloney found that the multi-trillion dollar industry employs 1.8 million people nationwide in jobs that include designers, market research analysts and computer systems developers. These high-value, high-paying jobs spark innovation, raise productivity and benefit other industries in the same geographic area.

Feb 09 2016

Maloney Hails President's Forward-Thinking 2017 Budget

JEC Ranking Member Maloney said Tuesday the President’s Fiscal Year 2017 budget proposal "embodies the best of what America can be. The plan puts the middle class first with investments that ensure everyone has a chance at economic opportunity and security.