NEW ULM - First District Congressman Tim Walz isn't a big fan of mammoth government spending or economic bailouts. He voted against the financial industry bailout bill, and the auto industry bailout because of bloat in the proposals and lack of protection for taxpayers who pony up the funds.
But with tens of thousands of job layoffs announced on almost a daily basis, the nation is badly in need of an economic "life preserver," he said. That's why he voted for the American Recovery and Reinvestment Act proposed by President Barack Obama that is speeding through Congress this week.
"I never thought I'd use the word 'depression' in anything other than a historical context as it applied to the United States," said Walz in a conference call with reporters Wednesday.
"I think many of us over the past few months have come to very sobering conclusion that our failed economic policies of the past have put us in a serious situation. We lost 70,000 jobs just yesterday; we lost over 2 1/2 million just in the last year of President Bush's administration; and we've run our national debt up, doubled it to $11 trillion. We've seen pain across southern Minnesota and across the country in terms of people who have already lost their jobs, of businesses that are contracting, and people who are worried about what's next."
Walz agrees with President Obama that the country needs middle class tax cuts, investment in infrastructure and the creation and preservation of jobs to help get the economy back on its feet.
Congress is moving at political light speed to pass a stimulus bill this week. Walz said the bill, which he is leaning toward, but not definitely supporting, will not be a solution but a "life preserver" to keep the economy afloat and give the private sector time to recover. It will provide leverage to help the private sector as it recovers and starts creating new jobs.
Walz said he is disappointed with a lot of the bill's provision, especially the amount of deficit spending that will be involved, and suspension of any mechanism for getting a handle on deficit spending, such as "pay as you go" provisions that pay for new government spending with either offsetting revenue increases or spending cuts.
"Once you suspend pay-go, everything becomes an emergency," Walz said.
Walz is supportive of the infrastructure investment in the bill. He said it should have been more. He really would have liked a smaller package that focused on roads, bridges, schools and other building projects that would have easier for the public to understand, and better able to show results.
"It's not enough, but it's the bill we could get," said Walz. "The $62.5 billion for infrastructure should reinvigorate the contractors and engineering firms."
Walz said the implementation of the stimulus is a big concern for him. He wants to see oversight of the details.
Walz will be hosting listening sessions on the economy today and Friday in Mankato, Rochester and Luverne. He'll be meeting with school district, city, township and county officials to discuss the American Recovery and Reinvestment Act.
The Mankato Economic Recovery Listening Session will be held at 9:30 a.m. at the South Central College, Conference Center A, 1920 Lee Boulevard in North Mankato.
The Rochester session will be 1:30 p.m. Thursday at the Rochester Public Library Auditorium, 101 2nd St., SE, Rochester.
The Luverne session will be 1 p.m. Friday at the Blue Mound Conference Center in Luverne.