/PRNewswire/ -- The 500-member Coalition for a Democratic Workplace (CDW) today (January 7) released a letter it delivered to every member of the 111th Congress. In the letter, CDW urged members of the Senate and House "to oppose all efforts to pass any provision included in the Employee Free Choice Act (EFCA H.R. 800/S. 1041 in the 110th Congress)."
"We wanted to take the opportunity to remind members of Congress of the overwhelming opposition from the business community, their constituents and union households to this anti-worker legislation," said Brian Worth with the Coalition for a Democratic Workplace. "This bill is a job-killer and fundamentally undemocratic."
The letter also stated:
"This legislation poses not only an assault on an individual's
right to privacy, but a direct threat to economic growth and job
creation. Particularly at a time of economic uncertainty, Congress
should not enact measures that threaten our economic
competitiveness, including the Employee Free Choice Act.
Furthermore, this legislation would have a particularly
devastating impact on small employers who are the primary source
for new jobs in our economy."
President-elect Obama's Administration and the new Congress will face its first true test early next year in the form of the anti-worker Employee Free Choice Act -- that allows unionization without secret ballots for workers. This Act, more aptly titled the Employee "Forced" Choice Act, is nothing short of a full-frontal assault on American democracy and worker privacy. Backed by union special interests and their Congressional allies, the anti-worker bill would effectively strip employees of the right to vote in private when deciding whether or not to join a union.
"It's ironic that members of Congress, all of whom were just elected by secret ballot, would even consider legislation that would remove that right for millions of American workers," added Worth.
CDW survey data indicates that support for maintaining private ballots in union organizing cuts across party lines. By a significant majority, Democrats, Republicans and Independents support maintaining a worker's right to cast their vote in private. Even among union households, a significant majority (69%) oppose the Employee Free Choice Act. And 76% of union voters say having a federally supervised secret ballot election is the best way to protect workers' rights when organizing a union.
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Thursday, January 8, 2009
Republican National Committee: As Former Sen. Tom Daschle Faces Senate Confirmation Hearings, a Reminder of His Past on Health Care
/PRNewswire-USNewswire/ -- The following was released today by the Republican National Committee:
Today, The U.S. Senate Will Hold Hearings For President-Elect Obama's Health And Human Services Nominee, Former Sen. Tom Daschle (D-SD):
Daschle Will Be Testifying At His Senate Confirmation Hearing On Thursday. "Obama's choice to lead the reform effort, former Senate Majority Leader Tom Daschle, testifies at his Senate confirmation hearing on Thursday -- beginning a process to change the nation's healthcare that could be one of the most ambitious and expensive undertakings of the Obama presidency." (David Alexander, "Obama Building Grassroots Support For Health Reform," Reuters, 1/7/09)
Obama Announced That Daschle Will Serve As The "Lead Architect" On Health Care Reform In Addition To His Role As Health And Human Services Secretary:
Obama Announced That Daschle Will "Be The Lead Architect" Of Health Care Reform In Addition To Serving As HHS Secretary. Obama: "I've asked Tom to serve not just as my secretary of Health and Human Services, but also as my director of White House -- of my White House Office of Health Reform. As such, he will be responsible not just for implementing our health care plan, he will also be the lead architect of that plan." (Barack Obama, Press Conference, 12/11/08)
Obama Said No One Is "Better Suited To Lead This Effort" Than Daschle. Obama: "I can think of no one better suited to lead this effort than the man standing beside me today. Tom Daschle is one of America's foremost health care experts." (Barack Obama, Press Conference, 12/11/08)
DASCHLE WAS MAJOR PLAYER IN FAILED CLINTON HEALTH CARE PLAN
Daschle "Played A Major Part" In Advocating Sen. Clinton's Doomed Health Care Plan Of 1993:
Daschle "Played A Major Part" In The Failed Clinton Attempt To Reform Health Care In 1993. "He also devotes a section of the book to 'What Went Wrong And Models For Making It Right,' with a heavy concentration on the Clinton plan. 'I think it's important that we learn the lessons of the past,' he said ... Daschle is well aware of those lessons, having played a major part in the failed campaign for universal health care and learned many of the mistakes that were made from a Capitol Hill perspective." (Erin McPike, "Daschle Warm To Obama Health Role," CongressDaily, 6/5/08)
The Clinton Administration Expected Daschle To Help "Carry The Ball" On Their Health Care Platform. "[Sec. Lloyd] Bentsen and [Sec. Donna] Shalala, joined by the members of the economic team argued against the proposed price ceilings on insurance premiums. Those so-called premiums caps would be viewed, correctly, as proxies for price controls -- and Congress despised price controls. They argued that the alliances were too regulatory, the overall plan too bureaucratic. And they said that Medicare cuts were too extreme and would cause severe problems, both in urban states like New York and rural ones like South Dakota. These, Bensten knew well, were potential time bombs for the Senate Finance Committee, where Democratic senators from those states, Pat Moynihan and Tom Daschle, were expected to carry the ball for the President." (Haynes Johnson and David Broder, The System, 1996, p. 161)
Daschle Was One Of Only Two Democrats On The Senate Finance Committee That Held "Out For The Clinton Plan" Against Other Health Care Proposals In Congress. "[Rep. Jim] Cooper had told [Rep. Mike] Synar that his co-sponsor, Senator John Breaux, was convinced that only two Democrats on Finance -- Majority Leader George Mitchell of Maine and Senator Tom Daschle of South Dakota, Mitchell's protg and 1995 successor as leader of the Senate Democrats -- would hold out for the Clinton plan." (Haynes Johnson and David Broder, The System, 1996, p. 336)
Daschle Was Considered A "Foot Soldier" For The Clinton Health Care Reform Effort, During The Time When The Senate Had Become "Increasingly Hostile To Bi-Partisanship." "The Senate environment was also increasingly hostile to bi-partisanship. Something new-and destructive- was at work. ... It was true that in the clash over health care reform, some senators acted out assigned roles -- or roles others suspected them of playing. Jay Rockefeller thus was regarded by other Democrats as the foot soldier for the First Lady; Tom Daschle of South Dakota as the foot soldier for the Senate Majority Leader Mitchell; Mitchell as the foot soldier for the President's bill..." (Haynes Johnson and David Broder, The System, 1996, pp. 382-383)
Daschle Pushed For A Vote On The Clinton Plan Despite Opposition In The Senate:
Daschle Pressed For A Vote On The Clinton Plan "To Force Accountability" Among Those Opposed To The Plan. "Tom Daschle of South Dakota, Mitchell's deputy and soon to be his successor as Democratic leader, was as devoted as anyone to passage; but he conceded in conversations with us that August, because the Democrats lacked consensus on whether to fight or let the issue fade, 'there is a belief that to have it trail off may be the best approach.' Daschle was among the senators who argued they needed 'to force accountability,' to 'force the Republicans to vote on something.' In the end, though, his was a minority view. 'There is a feeling,' Daschle added, 'that we are putting as many Democrats on the line as Republicans' by pressing for a vote on the unpopular bill, and that feeling was even stronger among House Democrats. In recalling his private conversations with House Democratic leaders, Daschle remembered, 'They were just really worried about crawling out there on a limb as they've done in the past this close to an election. The votes weren't there for that.'" (Haynes Johnson and David Broder, The System, 1996, p. 515)
DASCHLE'S WORK FOR LOBBYING FIRM CREATES POTENTIAL CONFLICT OF INTEREST
Daschle Is An Adviser For Washington, D.C. Lobbying Firm, Which Has Earned Millions Lobbying For Health Care Industry:
Daschle Is A "Special Policy Adviser" For Prominent D.C. Lobbying Firm, Which Has Earned More Than $16 Million Representing The Health Care Industry During Daschle's Tenure. "Barack Obama's expected pick of former Senate Majority Leader Tom Daschle to be secretary of health and human services bumps up against the president-elect's pledge to rid the White House of special interests. The former Democratic senator from South Dakota is a special policy adviser for the lobbying law firm Alston & Bird. And in his three years there, the firm has earned more than $16 million representing some of the health care industry's most powerful interests before the department he's in line to lead." (Chris Frates, "Daschle Lobby Ties Bump Obama Vow," Politico, 12/1/08)
Daschle's Work As A Paid Adviser "Appears To Run Counter To Obama's Pledge 'To Free The Executive Branch From Special Interest Influence'" Since According To Obama's Team, Political Appointees Are Not "Permitted To Work On Regulations Or Contracts Directly And Substantially Related To Their Prior Employer For Two Years." "Daschle is not himself a lobbyist. But he has advised the firm's clients on health care issues, according to the firm's website. His work as a paid adviser appears to run counter to Obama's pledge to 'free the executive branch from special interest influence.' No political appointee, Obama's transition team has declared, 'will be permitted to work on regulations or contracts directly and substantially related to their prior employer for two years.' As health and human services secretary, Daschle would oversee myriad regulations, ranging from the drugs that can come to market to Medicare and Medicare reimbursements." (Chris Frates, "Daschle Lobby Ties Bump Obama Vow," Politico, 12/1/08)
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Today, The U.S. Senate Will Hold Hearings For President-Elect Obama's Health And Human Services Nominee, Former Sen. Tom Daschle (D-SD):
Daschle Will Be Testifying At His Senate Confirmation Hearing On Thursday. "Obama's choice to lead the reform effort, former Senate Majority Leader Tom Daschle, testifies at his Senate confirmation hearing on Thursday -- beginning a process to change the nation's healthcare that could be one of the most ambitious and expensive undertakings of the Obama presidency." (David Alexander, "Obama Building Grassroots Support For Health Reform," Reuters, 1/7/09)
Obama Announced That Daschle Will Serve As The "Lead Architect" On Health Care Reform In Addition To His Role As Health And Human Services Secretary:
Obama Announced That Daschle Will "Be The Lead Architect" Of Health Care Reform In Addition To Serving As HHS Secretary. Obama: "I've asked Tom to serve not just as my secretary of Health and Human Services, but also as my director of White House -- of my White House Office of Health Reform. As such, he will be responsible not just for implementing our health care plan, he will also be the lead architect of that plan." (Barack Obama, Press Conference, 12/11/08)
Obama Said No One Is "Better Suited To Lead This Effort" Than Daschle. Obama: "I can think of no one better suited to lead this effort than the man standing beside me today. Tom Daschle is one of America's foremost health care experts." (Barack Obama, Press Conference, 12/11/08)
DASCHLE WAS MAJOR PLAYER IN FAILED CLINTON HEALTH CARE PLAN
Daschle "Played A Major Part" In Advocating Sen. Clinton's Doomed Health Care Plan Of 1993:
Daschle "Played A Major Part" In The Failed Clinton Attempt To Reform Health Care In 1993. "He also devotes a section of the book to 'What Went Wrong And Models For Making It Right,' with a heavy concentration on the Clinton plan. 'I think it's important that we learn the lessons of the past,' he said ... Daschle is well aware of those lessons, having played a major part in the failed campaign for universal health care and learned many of the mistakes that were made from a Capitol Hill perspective." (Erin McPike, "Daschle Warm To Obama Health Role," CongressDaily, 6/5/08)
The Clinton Administration Expected Daschle To Help "Carry The Ball" On Their Health Care Platform. "[Sec. Lloyd] Bentsen and [Sec. Donna] Shalala, joined by the members of the economic team argued against the proposed price ceilings on insurance premiums. Those so-called premiums caps would be viewed, correctly, as proxies for price controls -- and Congress despised price controls. They argued that the alliances were too regulatory, the overall plan too bureaucratic. And they said that Medicare cuts were too extreme and would cause severe problems, both in urban states like New York and rural ones like South Dakota. These, Bensten knew well, were potential time bombs for the Senate Finance Committee, where Democratic senators from those states, Pat Moynihan and Tom Daschle, were expected to carry the ball for the President." (Haynes Johnson and David Broder, The System, 1996, p. 161)
Daschle Was One Of Only Two Democrats On The Senate Finance Committee That Held "Out For The Clinton Plan" Against Other Health Care Proposals In Congress. "[Rep. Jim] Cooper had told [Rep. Mike] Synar that his co-sponsor, Senator John Breaux, was convinced that only two Democrats on Finance -- Majority Leader George Mitchell of Maine and Senator Tom Daschle of South Dakota, Mitchell's protg and 1995 successor as leader of the Senate Democrats -- would hold out for the Clinton plan." (Haynes Johnson and David Broder, The System, 1996, p. 336)
Daschle Was Considered A "Foot Soldier" For The Clinton Health Care Reform Effort, During The Time When The Senate Had Become "Increasingly Hostile To Bi-Partisanship." "The Senate environment was also increasingly hostile to bi-partisanship. Something new-and destructive- was at work. ... It was true that in the clash over health care reform, some senators acted out assigned roles -- or roles others suspected them of playing. Jay Rockefeller thus was regarded by other Democrats as the foot soldier for the First Lady; Tom Daschle of South Dakota as the foot soldier for the Senate Majority Leader Mitchell; Mitchell as the foot soldier for the President's bill..." (Haynes Johnson and David Broder, The System, 1996, pp. 382-383)
Daschle Pushed For A Vote On The Clinton Plan Despite Opposition In The Senate:
Daschle Pressed For A Vote On The Clinton Plan "To Force Accountability" Among Those Opposed To The Plan. "Tom Daschle of South Dakota, Mitchell's deputy and soon to be his successor as Democratic leader, was as devoted as anyone to passage; but he conceded in conversations with us that August, because the Democrats lacked consensus on whether to fight or let the issue fade, 'there is a belief that to have it trail off may be the best approach.' Daschle was among the senators who argued they needed 'to force accountability,' to 'force the Republicans to vote on something.' In the end, though, his was a minority view. 'There is a feeling,' Daschle added, 'that we are putting as many Democrats on the line as Republicans' by pressing for a vote on the unpopular bill, and that feeling was even stronger among House Democrats. In recalling his private conversations with House Democratic leaders, Daschle remembered, 'They were just really worried about crawling out there on a limb as they've done in the past this close to an election. The votes weren't there for that.'" (Haynes Johnson and David Broder, The System, 1996, p. 515)
DASCHLE'S WORK FOR LOBBYING FIRM CREATES POTENTIAL CONFLICT OF INTEREST
Daschle Is An Adviser For Washington, D.C. Lobbying Firm, Which Has Earned Millions Lobbying For Health Care Industry:
Daschle Is A "Special Policy Adviser" For Prominent D.C. Lobbying Firm, Which Has Earned More Than $16 Million Representing The Health Care Industry During Daschle's Tenure. "Barack Obama's expected pick of former Senate Majority Leader Tom Daschle to be secretary of health and human services bumps up against the president-elect's pledge to rid the White House of special interests. The former Democratic senator from South Dakota is a special policy adviser for the lobbying law firm Alston & Bird. And in his three years there, the firm has earned more than $16 million representing some of the health care industry's most powerful interests before the department he's in line to lead." (Chris Frates, "Daschle Lobby Ties Bump Obama Vow," Politico, 12/1/08)
Daschle's Work As A Paid Adviser "Appears To Run Counter To Obama's Pledge 'To Free The Executive Branch From Special Interest Influence'" Since According To Obama's Team, Political Appointees Are Not "Permitted To Work On Regulations Or Contracts Directly And Substantially Related To Their Prior Employer For Two Years." "Daschle is not himself a lobbyist. But he has advised the firm's clients on health care issues, according to the firm's website. His work as a paid adviser appears to run counter to Obama's pledge to 'free the executive branch from special interest influence.' No political appointee, Obama's transition team has declared, 'will be permitted to work on regulations or contracts directly and substantially related to their prior employer for two years.' As health and human services secretary, Daschle would oversee myriad regulations, ranging from the drugs that can come to market to Medicare and Medicare reimbursements." (Chris Frates, "Daschle Lobby Ties Bump Obama Vow," Politico, 12/1/08)
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Obama Ignores Economic Experts on Stimulus Plan
/PRNewswire-USNewswire/ -- President-elect Barack Obama and the new 111th Congress will soon be rolling-out an economic stimulus plan. The stimulus package will no doubt cost taxpayers hundreds of billions of dollars, and there is no guarantee it will achieve its goal of rescuing most Americans from the failing economy.
One free, easy and guaranteed method to stimulate the U.S. economy is to channel federal infrastructure funds to our nation's nearly 27 million small businesses. U.S. Census Bureau statistics show 98 percent of all U.S. firms have less than 100 employees. These firms create over 85 percent of all new jobs and employ over 56 percent of all private sector workers.
So far President-elect Obama has completely ignored this simple, quick and cost effective method of stimulating the national economy.
In a recent appearance on CNN's Late Edition with Wolf Blitzer, two of America's top economic experts, Laura Tyson and Carly Fiorina agreed that directing federal infrastructure funds to small businesses was a foolproof and easy way to create millions of jobs and immediately boost the failing economy. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President-elect Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.
This method of stimulating the nation's failing economy would be virtually free to taxpayers and would have an immediate positive effect on the economy. It could be implemented immediately, because it would be based on existing federal programs designed to direct federal funds to small businesses. The Small Business Reauthorization Act of 1997 stipulates that a minimum of 23 percent of all federal prime and sub-contracts be awarded to small businesses.
Since 2002, over a dozen federal investigations have found fraud, abuse, loopholes, and a blatant lack of oversight by federal officials, which have allowed billions of dollars in federal contracts earmarked for small businesses to wind-up in the hands of Fortune 500 firms. Additionally, ABC, CBS and CNN, along with most of the nation's largest newspapers have reported the dramatic abuses in these programs.
It has been estimated that as much as $100 billion a year in federal small business contracts are diverted to Fortune 500 firms and other large businesses. If these funds were redirected to the middle class economy as Congress originally intended with the passage of the Small Business Act of 1953, there would be a significant, undeniable and immediate impact on the national economy.
If President-elect Obama is searching for the most cost effective and immediate way to stimulate America's faltering economy, legislation to direct federal infrastructure funds to America's small businesses should be implemented as soon as possible.
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One free, easy and guaranteed method to stimulate the U.S. economy is to channel federal infrastructure funds to our nation's nearly 27 million small businesses. U.S. Census Bureau statistics show 98 percent of all U.S. firms have less than 100 employees. These firms create over 85 percent of all new jobs and employ over 56 percent of all private sector workers.
So far President-elect Obama has completely ignored this simple, quick and cost effective method of stimulating the national economy.
In a recent appearance on CNN's Late Edition with Wolf Blitzer, two of America's top economic experts, Laura Tyson and Carly Fiorina agreed that directing federal infrastructure funds to small businesses was a foolproof and easy way to create millions of jobs and immediately boost the failing economy. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President-elect Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.
This method of stimulating the nation's failing economy would be virtually free to taxpayers and would have an immediate positive effect on the economy. It could be implemented immediately, because it would be based on existing federal programs designed to direct federal funds to small businesses. The Small Business Reauthorization Act of 1997 stipulates that a minimum of 23 percent of all federal prime and sub-contracts be awarded to small businesses.
Since 2002, over a dozen federal investigations have found fraud, abuse, loopholes, and a blatant lack of oversight by federal officials, which have allowed billions of dollars in federal contracts earmarked for small businesses to wind-up in the hands of Fortune 500 firms. Additionally, ABC, CBS and CNN, along with most of the nation's largest newspapers have reported the dramatic abuses in these programs.
It has been estimated that as much as $100 billion a year in federal small business contracts are diverted to Fortune 500 firms and other large businesses. If these funds were redirected to the middle class economy as Congress originally intended with the passage of the Small Business Act of 1953, there would be a significant, undeniable and immediate impact on the national economy.
If President-elect Obama is searching for the most cost effective and immediate way to stimulate America's faltering economy, legislation to direct federal infrastructure funds to America's small businesses should be implemented as soon as possible.
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Financial Reforms Being Neglected by Policy Makers Could Be More Effective Than Emergency Measures
/PRNewswire/ -- RCF, Inc. announces Housing and the Financial Crisis: Overlooked Perspectives, a study calling for more attention to financial fundamentals in combating the nation's economic woes. Time, not government measures, will be needed to work off the excesses of the housing boom. Fiscal policy has become an emergency tool of choice but is blunt and takes time. Non-punitive bank-type regulation of financial intermediaries, and measures to achieve debt transparency, could bring a quicker end to the recession.
"Fears that housing foreclosures will prolong the credit crisis are exaggerated," says Dr. George Tolley, President of RCF and co-author of the study. "Although foreclosures and subprime lending have received media attention, the untold story of the housing problems goes much deeper." The study appears in Economic Insights, a newsletter published on behalf of the Chicago Economic Observatory that analyzes current events affecting the U.S. and Chicago economies.
The study points out that foreclosures have affected less than 1% of all houses in the U.S. Alarmist discussion that mortgage indebtedness exceeds market value for up to one in six homes ignores the fact that most homeowners realize that home values are likely to recover. Many home buyers with questionable credit and speculators who counted on price appreciation are out of the market by now or soon will be.
The housing boom that ended in 2006 has left a bloated housing stock that will be a drag on growth for several years. Overly easy credit led young households to purchase homes at an earlier point in their lives. More than one million first-time home buyers own homes now who would have bought at a later time if it had not been for the housing boom.
Housing is normally one of the main shock absorbers in combating recessions, but this tool is not available for the current downturn. In the past, in combating recessions, Fed monetary policy lowered interest rates as a chief tool. Today, because of past housing excesses, we have too much housing supply and can expect little response from changes in already low interest rates.
Emphasis is shifting from monetary policy to stimulus payments, unemployment benefits, infrastructure projects and green jobs. These are less flexible than monetary policy and require more time to take effect. The moves now being proposed to stimulate the economy could actually lead to inflation as the economy recovers. Once again, attention to long-run financial reform is being neglected as a way of working ourselves out of the present problems.
The co-authors of the study are George Tolley and Ella Revzin, both at RCF Economic and Financial Consulting, Inc., a Chicago-based economic consulting firm. Tolley is also Professor Emeritus of Economics at the University of Chicago.
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"Fears that housing foreclosures will prolong the credit crisis are exaggerated," says Dr. George Tolley, President of RCF and co-author of the study. "Although foreclosures and subprime lending have received media attention, the untold story of the housing problems goes much deeper." The study appears in Economic Insights, a newsletter published on behalf of the Chicago Economic Observatory that analyzes current events affecting the U.S. and Chicago economies.
The study points out that foreclosures have affected less than 1% of all houses in the U.S. Alarmist discussion that mortgage indebtedness exceeds market value for up to one in six homes ignores the fact that most homeowners realize that home values are likely to recover. Many home buyers with questionable credit and speculators who counted on price appreciation are out of the market by now or soon will be.
The housing boom that ended in 2006 has left a bloated housing stock that will be a drag on growth for several years. Overly easy credit led young households to purchase homes at an earlier point in their lives. More than one million first-time home buyers own homes now who would have bought at a later time if it had not been for the housing boom.
Housing is normally one of the main shock absorbers in combating recessions, but this tool is not available for the current downturn. In the past, in combating recessions, Fed monetary policy lowered interest rates as a chief tool. Today, because of past housing excesses, we have too much housing supply and can expect little response from changes in already low interest rates.
Emphasis is shifting from monetary policy to stimulus payments, unemployment benefits, infrastructure projects and green jobs. These are less flexible than monetary policy and require more time to take effect. The moves now being proposed to stimulate the economy could actually lead to inflation as the economy recovers. Once again, attention to long-run financial reform is being neglected as a way of working ourselves out of the present problems.
The co-authors of the study are George Tolley and Ella Revzin, both at RCF Economic and Financial Consulting, Inc., a Chicago-based economic consulting firm. Tolley is also Professor Emeritus of Economics at the University of Chicago.
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Without Large-Scale Recovery Package, Economy Could Shut Down, Economists Tell Lawmakers
/PRNewswire-USNewswire/ -- A large scale economic recovery package is needed to create jobs quickly, provide relief for workers and families, help states facing severe budget shortfalls, and invest in innovation and emerging industries, a bipartisan panel of economic experts and scientists told lawmakers on Capitol Hill January 7. Economists warned that, unless comprehensive action is taken, the economy will shed another 3 million jobs in 2009, real Gross Domestic Product could drop by $750 billion, and the unemployment rate will top 10 percent.
The Democratic Steering and Policy Committee, along with House committee chairs, convened the forum in the first days of the 111th Congress to brief lawmakers on the latest economic outlook and components that should be included in the upcoming economic recovery package.
"We must pass an economic recovery and jobs package no later than mid-February, in my view," said House Speaker Nancy Pelosi (D-CA). "This forum will demonstrate to the American public the need for this job and economic recovery package. We look forward working in the days ahead with our President-elect so we have legislation before we observe President's Day this year."
"Economists across the board agree that innovative strategies to create jobs and invest in our future are the only way to revive and grow our economy - and that workers and families can't afford to wait," said U.S. Rep. George Miller (D-CA), the co-chair of the Democratic Steering and Policy Committee and the chairman of the House Education and Labor Committee. "If we act swiftly and make wise decisions, we can tackle many challenges at once: rebuilding our economy and the middle class, improving our infrastructure and energy-independence, and regaining the competitive edge that will fuel discovery and opportunity for generations to come."
"We are holding this extraordinary hearing because of extraordinary times; indeed, we are convening as the economy falls deeper into crisis. We are shedding jobs at a staggering rate, retirement accounts are draining, the housing market has collapsed, the financial market is in turmoil, and the credit markets are nearly frozen. A crisis requires more than the band-aid of past efforts, but rather, we must act boldly to get our economy back to sustained job and income growth," said Congresswoman Rosa DeLauro (CT-3), the co-chair of the Democratic Steering and Policy Committee. "This forum today brought together a broad spectrum of economists and scientists who agree that we need to move quickly with a significant economic recovery package."
"This economy is shutting down," said Dr. Mark M. Zandi, the chief economist and cofounder of Moody's Economy.com, who predicted that the economy stands to lose 500,000 jobs a month for the foreseeable future. While both spending and tax cuts should be including in a package, spending provides a higher rate of return than tax cuts. Each dollar spent yields a return of $1.50 in economic growth; while each dollar in tax cuts yields $1 return.
"In my view, the goals of the economic recovery plan should be to strengthen traditional safety nets; increase purchasing power, especially among the bottom half; create as many new jobs as quickly as possible; get the long-term unemployed and the poor into many of those jobs," said Robert B. Reich, a Secretary of Labor under the Clinton administration and a professor at the University of California at Berkeley, who estimated that a stimulus of at least $900 billion over two years is needed. "The danger is not that the federal government will do too much but, rather, that it will do too little."
"While fixing the credit markets is necessary for sustained economic growth, it will not bring the economy back to full employment," explained Martin Feldstein, a professor of economics at Harvard University and the chief economic advisor to former President Ronald Reagan. "Because monetary policy is not effective, reviving the economy requires a major fiscal stimulus from tax cuts and increased government spending."
The panelists agreed that both immediate and long-term strategies are needed to jump-start the economy and spur long-term growth.
"We need to secure our overall competitiveness, otherwise we could create new jobs now only to lose them to foreign competition later," said Norman R. Augustine, the chair of National Academies' Rising Above the Gathering Storm report committee.
"What are most needed are elements that create real, sustained growth in the economy. We need to bolster existing high-growth innovation areas, and we will need to create new areas," said Maria T. Zuber, a professor of geophysics at the Massachusetts Institute of Technology. "One path ahead is clear: the country is at the cusp of a revolution in energy science and technology."
Overall, the panel's recommendations included:
-- Providing aid to states and local governments to maintain jobs and
vital aid programs;
-- Expanding unemployment insurance and extending jobless benefits;
-- Investing in existing, shovel-ready infrastructure projects, including
highways, roads, bridges, schools, levees, water and sewage systems,
and the electricity grid to get Americans back to work quickly and
effectively;
-- Investing in science, technology and other emerging industries to
support research and drive innovation and sustainable growth;
-- Creating a green economy by investing in energy-independence and
building a "green" jobs corps;
-- Providing tax cuts for lower- and middle-income families to increase
purchasing power;
-- Improving job training programs and support for unemployed and lower-
workers; and
-- Ensuring that economic recovery package is transparent and accountable
to the American public.
The forum built on committee hearings held during the 110th Congress to examine the need for an economic stimulus plan. The chairs of those committees, including the chairmen of the Science and Technology, Budget, Energy and Commerce, Ways and Means, Education and Labor, Appropriations and Transportation and Infrastructure Committees, all participated in today's forum.
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The Democratic Steering and Policy Committee, along with House committee chairs, convened the forum in the first days of the 111th Congress to brief lawmakers on the latest economic outlook and components that should be included in the upcoming economic recovery package.
"We must pass an economic recovery and jobs package no later than mid-February, in my view," said House Speaker Nancy Pelosi (D-CA). "This forum will demonstrate to the American public the need for this job and economic recovery package. We look forward working in the days ahead with our President-elect so we have legislation before we observe President's Day this year."
"Economists across the board agree that innovative strategies to create jobs and invest in our future are the only way to revive and grow our economy - and that workers and families can't afford to wait," said U.S. Rep. George Miller (D-CA), the co-chair of the Democratic Steering and Policy Committee and the chairman of the House Education and Labor Committee. "If we act swiftly and make wise decisions, we can tackle many challenges at once: rebuilding our economy and the middle class, improving our infrastructure and energy-independence, and regaining the competitive edge that will fuel discovery and opportunity for generations to come."
"We are holding this extraordinary hearing because of extraordinary times; indeed, we are convening as the economy falls deeper into crisis. We are shedding jobs at a staggering rate, retirement accounts are draining, the housing market has collapsed, the financial market is in turmoil, and the credit markets are nearly frozen. A crisis requires more than the band-aid of past efforts, but rather, we must act boldly to get our economy back to sustained job and income growth," said Congresswoman Rosa DeLauro (CT-3), the co-chair of the Democratic Steering and Policy Committee. "This forum today brought together a broad spectrum of economists and scientists who agree that we need to move quickly with a significant economic recovery package."
"This economy is shutting down," said Dr. Mark M. Zandi, the chief economist and cofounder of Moody's Economy.com, who predicted that the economy stands to lose 500,000 jobs a month for the foreseeable future. While both spending and tax cuts should be including in a package, spending provides a higher rate of return than tax cuts. Each dollar spent yields a return of $1.50 in economic growth; while each dollar in tax cuts yields $1 return.
"In my view, the goals of the economic recovery plan should be to strengthen traditional safety nets; increase purchasing power, especially among the bottom half; create as many new jobs as quickly as possible; get the long-term unemployed and the poor into many of those jobs," said Robert B. Reich, a Secretary of Labor under the Clinton administration and a professor at the University of California at Berkeley, who estimated that a stimulus of at least $900 billion over two years is needed. "The danger is not that the federal government will do too much but, rather, that it will do too little."
"While fixing the credit markets is necessary for sustained economic growth, it will not bring the economy back to full employment," explained Martin Feldstein, a professor of economics at Harvard University and the chief economic advisor to former President Ronald Reagan. "Because monetary policy is not effective, reviving the economy requires a major fiscal stimulus from tax cuts and increased government spending."
The panelists agreed that both immediate and long-term strategies are needed to jump-start the economy and spur long-term growth.
"We need to secure our overall competitiveness, otherwise we could create new jobs now only to lose them to foreign competition later," said Norman R. Augustine, the chair of National Academies' Rising Above the Gathering Storm report committee.
"What are most needed are elements that create real, sustained growth in the economy. We need to bolster existing high-growth innovation areas, and we will need to create new areas," said Maria T. Zuber, a professor of geophysics at the Massachusetts Institute of Technology. "One path ahead is clear: the country is at the cusp of a revolution in energy science and technology."
Overall, the panel's recommendations included:
-- Providing aid to states and local governments to maintain jobs and
vital aid programs;
-- Expanding unemployment insurance and extending jobless benefits;
-- Investing in existing, shovel-ready infrastructure projects, including
highways, roads, bridges, schools, levees, water and sewage systems,
and the electricity grid to get Americans back to work quickly and
effectively;
-- Investing in science, technology and other emerging industries to
support research and drive innovation and sustainable growth;
-- Creating a green economy by investing in energy-independence and
building a "green" jobs corps;
-- Providing tax cuts for lower- and middle-income families to increase
purchasing power;
-- Improving job training programs and support for unemployed and lower-
workers; and
-- Ensuring that economic recovery package is transparent and accountable
to the American public.
The forum built on committee hearings held during the 110th Congress to examine the need for an economic stimulus plan. The chairs of those committees, including the chairmen of the Science and Technology, Budget, Energy and Commerce, Ways and Means, Education and Labor, Appropriations and Transportation and Infrastructure Committees, all participated in today's forum.
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Georgia Housing Leaders Call on Congress to Help Main Street
(BUSINESS WIRE)--The Georgia housing industry called on Congress January 7 to address the housing crisis that is at the root of the nation’s recession. Rick Porter, owner of Richport Properties, Inc.; Kenny King, president of Kingsland Corp.; and Kurt Cannon, owner of Rabun Builders, Inc. and the president of the Home Builders Association of Georgia, urged Congress to enact bold measures that will stimulate the housing market and, in turn, revive the local, state and national economies.
“Housing is central to our economy and is an engine of production that can lead us out of the recession,” said Porter. “But it is crucial for Congress to enact a major stimulus package to stop the decline in home values, stem the tide of foreclosures, stabilize financial markets and re-ignite consumer demand.”
To get the Georgia economy moving again, the housing industry is urging Congress to support enhancements to the home buyer tax credit and provide below-market, 30-year fixed-rate mortgages for home purchases.
Specifically, the legislation should include:
1. A 10 percent tax credit for all qualified home buyers capped at 3.5 percent of FHA, Freddie Mac or Fannie Mae loan limits (equaling $10,000 to $22,000 depending on geographic market). All primary home purchases through December 31, 2009, would be eligible. Repayment would be required only if the home was sold within three years. And the credit would be available at closing, making it easier for buyers to use it as a downpayment;
2. A below-market, 30-year fixed-rate mortgage for home purchases. The second component of the stimulus plan would provide qualified home buyers with 30-year fixed-rate mortgages at 2.99 percent interest on contracts closed until June 30, 2009 and 3.99 percent interest on closings between June 30 and December 31, 2009; and
3. Continued measures to reduce foreclosures and keep people in their homes.
The housing industry representatives cited a similar plan with both a tax credit and a mortgage rate subsidy that was enacted in 1975 when the nation was also in the midst of a recession. That successful stimulus plan jump-started the depressed economy, and the effects continued in communities across the country long after the measure expired.
“We’ve been in business for about 20 years, and we’re currently working on a project of 23 units which we began back in 2005,” explained Kenny King, president of Kingsland Corp., out of Snellville. “In all my years in home building, this project is probably our best product in our best location, but in this market, we can’t turn the units over. We sold three in 2007, and only four in 2008 – we’ve got 16 left and we don’t know how we’ll sell them. Consumer confidence is basically ‘zero.’ We need stability and confidence brought back to the housing market to end this extended recession.”
Kurt Cannon, owner of Rabun Builders, Inc., from Clayton, and the current president of the Home Builders Association of Georgia, builds second-home and retirement properties. “Our business is basically just shutting down. Last year we only did 25 percent of what we should have done, and now we are finishing up projects without any others lined up. Over the past three months, I’ve talked to between 70 and 80 builders around the area, and I keep hearing the same story over and over again. Builders with high credit ratings, with decades of good credit, current on their payments, are suddenly told by their banks that they have to pay off their loans in 10 days or the bank will foreclose. Of course, they end up foreclosing and the bank just ‘fire-sales’ the neighborhood. It’s the same story all around. We must stop the bleeding.”
“When the housing industry is in a crisis, the entire community is affected,” continued Porter. “Retailers, manufacturers, service providers and even the local government are affected. Most important, local residents suffer.”
“Three million home building-related jobs across the country have been lost as a result of the slowdown in housing production, which represents $145 billion in lost wages and $4.9 billion in lost purchases,” said National Association of Home Builders (NAHB) economist Bernard Markstein. “Deterioration in these jobs has now spilled over into virtually all sectors of the U.S. job market and the economies of states like Georgia.”
"We are leaving no stone unturned in our efforts to convince Congress to quickly enact a robust housing stimulus program. There’s no question that stopping the decline in home values and restoring demand for housing is the fastest and most effective way of reviving the economy," Porter said.
The housing leaders in Georgia are part of a new coalition called Fix Housing First, consisting of more than 600 organizations, home building companies and manufacturers advocating for this major stimulus package to stem the decline in home values, stabilize financial markets and re-ignite consumer demand. To learn more about Fix Housing First, go to www.fixhousingfirst.com.
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“Housing is central to our economy and is an engine of production that can lead us out of the recession,” said Porter. “But it is crucial for Congress to enact a major stimulus package to stop the decline in home values, stem the tide of foreclosures, stabilize financial markets and re-ignite consumer demand.”
To get the Georgia economy moving again, the housing industry is urging Congress to support enhancements to the home buyer tax credit and provide below-market, 30-year fixed-rate mortgages for home purchases.
Specifically, the legislation should include:
1. A 10 percent tax credit for all qualified home buyers capped at 3.5 percent of FHA, Freddie Mac or Fannie Mae loan limits (equaling $10,000 to $22,000 depending on geographic market). All primary home purchases through December 31, 2009, would be eligible. Repayment would be required only if the home was sold within three years. And the credit would be available at closing, making it easier for buyers to use it as a downpayment;
2. A below-market, 30-year fixed-rate mortgage for home purchases. The second component of the stimulus plan would provide qualified home buyers with 30-year fixed-rate mortgages at 2.99 percent interest on contracts closed until June 30, 2009 and 3.99 percent interest on closings between June 30 and December 31, 2009; and
3. Continued measures to reduce foreclosures and keep people in their homes.
The housing industry representatives cited a similar plan with both a tax credit and a mortgage rate subsidy that was enacted in 1975 when the nation was also in the midst of a recession. That successful stimulus plan jump-started the depressed economy, and the effects continued in communities across the country long after the measure expired.
“We’ve been in business for about 20 years, and we’re currently working on a project of 23 units which we began back in 2005,” explained Kenny King, president of Kingsland Corp., out of Snellville. “In all my years in home building, this project is probably our best product in our best location, but in this market, we can’t turn the units over. We sold three in 2007, and only four in 2008 – we’ve got 16 left and we don’t know how we’ll sell them. Consumer confidence is basically ‘zero.’ We need stability and confidence brought back to the housing market to end this extended recession.”
Kurt Cannon, owner of Rabun Builders, Inc., from Clayton, and the current president of the Home Builders Association of Georgia, builds second-home and retirement properties. “Our business is basically just shutting down. Last year we only did 25 percent of what we should have done, and now we are finishing up projects without any others lined up. Over the past three months, I’ve talked to between 70 and 80 builders around the area, and I keep hearing the same story over and over again. Builders with high credit ratings, with decades of good credit, current on their payments, are suddenly told by their banks that they have to pay off their loans in 10 days or the bank will foreclose. Of course, they end up foreclosing and the bank just ‘fire-sales’ the neighborhood. It’s the same story all around. We must stop the bleeding.”
“When the housing industry is in a crisis, the entire community is affected,” continued Porter. “Retailers, manufacturers, service providers and even the local government are affected. Most important, local residents suffer.”
“Three million home building-related jobs across the country have been lost as a result of the slowdown in housing production, which represents $145 billion in lost wages and $4.9 billion in lost purchases,” said National Association of Home Builders (NAHB) economist Bernard Markstein. “Deterioration in these jobs has now spilled over into virtually all sectors of the U.S. job market and the economies of states like Georgia.”
"We are leaving no stone unturned in our efforts to convince Congress to quickly enact a robust housing stimulus program. There’s no question that stopping the decline in home values and restoring demand for housing is the fastest and most effective way of reviving the economy," Porter said.
The housing leaders in Georgia are part of a new coalition called Fix Housing First, consisting of more than 600 organizations, home building companies and manufacturers advocating for this major stimulus package to stem the decline in home values, stabilize financial markets and re-ignite consumer demand. To learn more about Fix Housing First, go to www.fixhousingfirst.com.
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Wednesday, January 7, 2009
Snowe, Kerry, Landrieu Tout Bipartisan Bill to Provide Immediate Tax Relief for American Small Businesses
Senator Olympia J. Snowe (R-Maine), the Ranking Member of the Committee on Small Business and Entrepreneurship, Senator John Kerry (D-Mass.), the outgoing Chairman of the Committee, and Senator Mary Landrieu (D-La.), the incoming Chair, today introduced the Small Business Act of 2009. This bipartisan legislation provides immediate tax relief for small businesses making vital investments in new equipment to further weather the current economic storm.
"Expensing has long served as a critical tool to grow the economy and create new jobs. At a time in which we find ourselves in a recession and our nation's small businesses are having trouble finding capital to make job-creating new investments, we simply cannot allow this tax incentive to expire," Senator Snowe said. "By increasing small business expensing and establishing a five year carryback for net operating losses, this measure will pack a powerful punch and assist America's 26 million small firms that represent 99.7 of all employers."
"This law has helped small businesses acquire the tools they need to thrive and grow," said Senator Kerry. "Extending the provision isn't only justified, it's sorely needed in an economic climate where small businesses are hurting."
"It is my hope that Congress will move quickly on this legislation to ensure that our nation's small businesses can weather the current economic downturn," Senator Landrieu said. "By increasing the expensing limits and extending the net operating loss carryback period, we can provide timely and much needed relief to our small businesses."
Last year, Congress passed and the president signed into law the Economic Stimulus Act of 2008, which allowed American small businesses to expense up to $250,000 of their investments, including the purchase of new equipment through 2009. The Snowe-Kerry initiative would extend Section 179 of the tax code, increased small business expensing, through 2010 and establish a five year carryback for net operating losses.
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"Expensing has long served as a critical tool to grow the economy and create new jobs. At a time in which we find ourselves in a recession and our nation's small businesses are having trouble finding capital to make job-creating new investments, we simply cannot allow this tax incentive to expire," Senator Snowe said. "By increasing small business expensing and establishing a five year carryback for net operating losses, this measure will pack a powerful punch and assist America's 26 million small firms that represent 99.7 of all employers."
"This law has helped small businesses acquire the tools they need to thrive and grow," said Senator Kerry. "Extending the provision isn't only justified, it's sorely needed in an economic climate where small businesses are hurting."
"It is my hope that Congress will move quickly on this legislation to ensure that our nation's small businesses can weather the current economic downturn," Senator Landrieu said. "By increasing the expensing limits and extending the net operating loss carryback period, we can provide timely and much needed relief to our small businesses."
Last year, Congress passed and the president signed into law the Economic Stimulus Act of 2008, which allowed American small businesses to expense up to $250,000 of their investments, including the purchase of new equipment through 2009. The Snowe-Kerry initiative would extend Section 179 of the tax code, increased small business expensing, through 2010 and establish a five year carryback for net operating losses.
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FRC Urges Support for Broadcaster Freedom Act
/PRNewswire-USNewswire/ -- Today, Congressman Mike Pence (R-IN), Congressman Greg Walden (R-OR) and Senator Jim DeMint (R-SC), introduced the Broadcaster Freedom Act. The bill strips the FCC of its authority to reinstitute the so-called "Fairness Doctrine," effectively codifying the status quo and protecting free speech.
Tony Perkins, President of Family Research Council, had this to say:
"Americans are entitled to the free exchange of ideas and an independent press that supports such an exchange. A vigorous national debate on issues of the day is one of the hallmarks of democracy. I commend these Congressional leaders for their work to protect the airwaves from government controls.
"This act will protect broadcasters from those who seek to intimidate and silence any political opposition. Government regulation of political talk and thought goes against every ideal of this nation. I wholeheartedly support the Broadcaster Freedom Act and urge Congress to act in support of the First Amendment and a free press."
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Tony Perkins, President of Family Research Council, had this to say:
"Americans are entitled to the free exchange of ideas and an independent press that supports such an exchange. A vigorous national debate on issues of the day is one of the hallmarks of democracy. I commend these Congressional leaders for their work to protect the airwaves from government controls.
"This act will protect broadcasters from those who seek to intimidate and silence any political opposition. Government regulation of political talk and thought goes against every ideal of this nation. I wholeheartedly support the Broadcaster Freedom Act and urge Congress to act in support of the First Amendment and a free press."
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Congress Should Stimulate Economy With $500 Billion in Private Investment By Temporarily Reducing U.S. Business Taxes on Foreign Earnings
/PRNewswire-USNewswire/ -- The quest for cash to jumpstart the ailing U.S. economy could be alleviated if congress would revisit the 2004 successful economic stimulus measure that enabled U.S. businesses to invest $360 billion of foreign earnings at a temporary, reduced tax rate of 5.25%. In a new study commissioned by the American Council for Capital Formation (ACCF), renowned economist Dr. Allen Sinai of Decision Economics, Inc. analyzed the benefits that would occur based on an estimated $545 billion of repatriations, similar to the 2004 American Jobs Creation Act (AJCA). Sinai concludes that the U.S. economy would see a substantial boost in investment in plants and equipment and R&D, leading to higher U.S. GDP and job generation. He also projects nearly $140 billion in tax revenue over five years for the U.S. Treasury - money it would not otherwise receive.
"Unlike many of the stimulus proposals that bear a high price tag, this is a virtual free lunch that congress, the new administration and taxpayers can easily digest," said ACCF President and CEO Mark Bloomfield. "This temporary tax reduction can provide a lift to the U.S. business sector, significantly improve the financial position of nonfinancial corporations, and help relieve the tight credit and liquidity restraint for a number of companies."
Sinai's quantitative study concludes that temporarily reinstating an 85% dividends-received-deduction for repatriated foreign subsidiary earnings would lead to the following economic benefits:
-- Increased U.S. GDP, peaking at an additional $110 billion in 2010
-- Reduction in outstanding debt, which would improve credit availability
-- An average annual increase of $56 billion in new investment over the
next 5 years
-- Increased U.S. R&D spending by approximately $7 billion per year over
the next five years
-- Job generation within the U.S. economy peaking at 614,000 in 2011
-- Nearly $140 billion in tax revenue over five years from initial cash
investment and residual economic activity
ACCF also pointed to a survey of U.S. companies that utilized the 2004 AJCA and found, on average, that 25% of the funds repatriated were used for U.S. capital investment, 23% for hiring and training of U.S. employees, 15% for U.S.-based R&D, and 13% for U.S. debt reduction. Another survey indicated repatriating companies increased their total investments in the United States by over $230 billion compared to prior years.
"This temporary tax reduction would provide much needed cash flow for capital spending, R&D, strengthening corporate balance sheets, new jobs and produce gains for the overall economy," said ACCF Senior Vice President and Chief Economist Margo Thorning. "This is a true win-win alternative to placing further strains on the federal budget and Federal Reserve."
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"Unlike many of the stimulus proposals that bear a high price tag, this is a virtual free lunch that congress, the new administration and taxpayers can easily digest," said ACCF President and CEO Mark Bloomfield. "This temporary tax reduction can provide a lift to the U.S. business sector, significantly improve the financial position of nonfinancial corporations, and help relieve the tight credit and liquidity restraint for a number of companies."
Sinai's quantitative study concludes that temporarily reinstating an 85% dividends-received-deduction for repatriated foreign subsidiary earnings would lead to the following economic benefits:
-- Increased U.S. GDP, peaking at an additional $110 billion in 2010
-- Reduction in outstanding debt, which would improve credit availability
-- An average annual increase of $56 billion in new investment over the
next 5 years
-- Increased U.S. R&D spending by approximately $7 billion per year over
the next five years
-- Job generation within the U.S. economy peaking at 614,000 in 2011
-- Nearly $140 billion in tax revenue over five years from initial cash
investment and residual economic activity
ACCF also pointed to a survey of U.S. companies that utilized the 2004 AJCA and found, on average, that 25% of the funds repatriated were used for U.S. capital investment, 23% for hiring and training of U.S. employees, 15% for U.S.-based R&D, and 13% for U.S. debt reduction. Another survey indicated repatriating companies increased their total investments in the United States by over $230 billion compared to prior years.
"This temporary tax reduction would provide much needed cash flow for capital spending, R&D, strengthening corporate balance sheets, new jobs and produce gains for the overall economy," said ACCF Senior Vice President and Chief Economist Margo Thorning. "This is a true win-win alternative to placing further strains on the federal budget and Federal Reserve."
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Tuesday, January 6, 2009
New Ocean Monuments Give President Bush a Blue Legacy
/PRNewswire-USNewswire/ -- President Bush today designated 3 new marine national monuments in the Pacific Ocean totaling more than 195,000 square miles, an area greater than Oregon and Washington combined. Together with Papahanaumokuakea Marine National Monument, which was established in 2006 in the northwestern Hawaiian Islands, President Bush will have designated monuments protecting 335,561 square miles of ocean, a larger area of the world's marine environment than protected by any other person in history.
"This historic action by President Bush protects some of the world's most unique and biologically significant ocean habitat," said Joshua S. Reichert, Managing Director of the Pew Environment Group. "Together with the Hawaii marine monument established two years ago, this marks the end of an era in which humans have increasingly understood the need to conserve vanishing wild places on land but failed to comprehend the similar plight of our oceans. It comes none too soon."
The largest of the protected areas surrounds the Northern Mariana Islands and includes the Mariana Trench, the deepest canyon on earth. The Mariana Islands monument alone protects 95,000 square miles, encompassing areas believed to harbor some of the oldest known life on the DNA tree. By itself, this monument is the third largest marine reserve in the world. Among its diverse and remarkable underwater features are the second known boiling pool of liquid sulfur (the first pool was discovered on Io, one of Jupiter's moons); huge, active mud volcanoes -- one more than 31 miles across; and highly acidic hydrothermal vents that provide a unique natural laboratory for the study of ocean acidification and its effects on coral reefs and shallow-water sea life.
A marine mammal survey in the area found 19 species, including several rare species of beaked whales. The land areas shelter the endangered Micronesian megapode, which is the only bird known to use volcanic heat to incubate its eggs, threatened fruit bats, more than a dozen species of migratory seabirds with breeding populations numbering over 200,000 and giant coconut crabs -- the largest land-living arthropod in the world.
For the past two years, the Pew Environment Group's Global Ocean Legacy Program has worked with the Bush Administration as well as citizens and elected officials in the Commonwealth of the Northern Marianas to promote the concept of a large-scale marine reserve in the waters surrounding the Mariana Islands. More than 200 local businesses and 6,000 citizens signed petitions supporting world-class marine monument designation.
In partnership with the islands' business community and Friends of the Monument, a local organization promoting the Mariana Trench Marine National Monument, the Pew Environment Group helped organize more than 100 public meetings to vet the proposed monument in open forums. It also developed the first comprehensive scientific profile of the biological and geological resources contained within the proposed monument site, plus an assessment of the potential economic benefits of monument designation to the Marianas economy.
"We are proud that President Bush has recognized the importance and richness of the Mariana Island waters," said Ike Cabrera the Chairman of the Saipan-based Friends of the Monument. "We can now share with the world this special place our people have long cherished."
These remote and beautiful islands and waters have a rich history. Wake Island and Saipan were the sites of important battles in WWII, and islands in the Mariana Archipelago harbored some of the last Japanese holdouts of the war.
"We will gain immeasurably more from having these places kept safe than we would from plundering in the short term whatever commercial resources they might contain," said Reichert. "In his efforts to balance competing interests, the president weighed the long term benefits to the marine environment and to the American people of protecting these places before they are ruined, and decided they are worth more intact than whatever commercial benefits might be derived from fishing, drilling or mining them. The President's decision is a tribute to common sense."
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"This historic action by President Bush protects some of the world's most unique and biologically significant ocean habitat," said Joshua S. Reichert, Managing Director of the Pew Environment Group. "Together with the Hawaii marine monument established two years ago, this marks the end of an era in which humans have increasingly understood the need to conserve vanishing wild places on land but failed to comprehend the similar plight of our oceans. It comes none too soon."
The largest of the protected areas surrounds the Northern Mariana Islands and includes the Mariana Trench, the deepest canyon on earth. The Mariana Islands monument alone protects 95,000 square miles, encompassing areas believed to harbor some of the oldest known life on the DNA tree. By itself, this monument is the third largest marine reserve in the world. Among its diverse and remarkable underwater features are the second known boiling pool of liquid sulfur (the first pool was discovered on Io, one of Jupiter's moons); huge, active mud volcanoes -- one more than 31 miles across; and highly acidic hydrothermal vents that provide a unique natural laboratory for the study of ocean acidification and its effects on coral reefs and shallow-water sea life.
A marine mammal survey in the area found 19 species, including several rare species of beaked whales. The land areas shelter the endangered Micronesian megapode, which is the only bird known to use volcanic heat to incubate its eggs, threatened fruit bats, more than a dozen species of migratory seabirds with breeding populations numbering over 200,000 and giant coconut crabs -- the largest land-living arthropod in the world.
For the past two years, the Pew Environment Group's Global Ocean Legacy Program has worked with the Bush Administration as well as citizens and elected officials in the Commonwealth of the Northern Marianas to promote the concept of a large-scale marine reserve in the waters surrounding the Mariana Islands. More than 200 local businesses and 6,000 citizens signed petitions supporting world-class marine monument designation.
In partnership with the islands' business community and Friends of the Monument, a local organization promoting the Mariana Trench Marine National Monument, the Pew Environment Group helped organize more than 100 public meetings to vet the proposed monument in open forums. It also developed the first comprehensive scientific profile of the biological and geological resources contained within the proposed monument site, plus an assessment of the potential economic benefits of monument designation to the Marianas economy.
"We are proud that President Bush has recognized the importance and richness of the Mariana Island waters," said Ike Cabrera the Chairman of the Saipan-based Friends of the Monument. "We can now share with the world this special place our people have long cherished."
These remote and beautiful islands and waters have a rich history. Wake Island and Saipan were the sites of important battles in WWII, and islands in the Mariana Archipelago harbored some of the last Japanese holdouts of the war.
"We will gain immeasurably more from having these places kept safe than we would from plundering in the short term whatever commercial resources they might contain," said Reichert. "In his efforts to balance competing interests, the president weighed the long term benefits to the marine environment and to the American people of protecting these places before they are ruined, and decided they are worth more intact than whatever commercial benefits might be derived from fishing, drilling or mining them. The President's decision is a tribute to common sense."
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