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Senator Joe Lieberman
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Economy

The U.S. economy has experienced a dramatic decline since the end of 2007. After a deep and protracted recession, economic indicators are currently mixed. Some recent signs of growth in the economy are contrasted by the persistence of high levels of unemployment and lingering weakness in the housing market in Connecticut and throughout the rest of the country.

Senator Lieberman has played a leading role in the U.S. Senate in halting the economic slide and restoring the country to a path of economic stability and growth. In the fall of 2008, with the nation’s financial markets in turmoil because of the collapse of the housing market and the looming failure of certain major U.S. financial institutions, Senator Lieberman supported the Emergency Economic Stabilization Act (EESA), also known as the Trouble Asset Relief Program (TARP). TARP played a key role in stabilizing our financial markets through capital injections into a number of financial institutions and the purchase of troubled assets to clean up the banks’ balance sheets. Senator Lieberman also helped secure passage of the American Recovery and Reinvestment Act (ARRA) at the beginning of 2009. This bill included a variety of critical measures to stabilize the economy, including: (1) tax cuts that have benefited over 100 million families; (2) expansion of federal aid to states for healthcare, education, and unemployment benefits, (3) infrastructure investments to improve Connecticut’s roads, bridges, and transit options; and (4) investments in energy efficiency and renewable energy.

A recent study by economists Alan Blinder of Princeton and Mark Zandi of Moody’s Economy.com estimates that without the passage of TARP and ARRA, our economy would have 8.5 million fewer jobs than it currently does, and the nation’s Gross Domestic Product (GDP) in 2010 would be about 11.5% lower. The economy would also likely have been sucked into a deflationary spiral that could have easily turned into another Great Depression instead of the recession from which we are slowly beginning to recover.

Creating Jobs

Senator Lieberman has supported a number of initiatives to spur economic growth, create jobs, and support America’s manufacturing base.

Senator Lieberman has consistently led the bipartisan effort to provide needed funding for the Manufacturing Extension Partnership (MEP), a leading public-private program for helping small and medium-sized American manufacturers use innovation to grow their businesses, increase their profitability, and expand into new markets globally.

Examples of other initiatives that Senator Lieberman has supported to strengthen the economy include the Worker, Homeownership, and Business Assistance Act, which was signed into law on November 6, 2009 (P.L. 111-92) and the Hiring Incentives to Restore Employment Act (HIRE Act), which was signed into law on March 18, 2010 (P.L. 111-147). Among other provisions, the Worker, Homeownership, and Business Act: (1) extended the availability of eligibility for the homebuyer tax credit to reduce the inventory of unoccupied homes, spur construction, and support the housing market; (2) extended small businesses’ ability to carry back their net operating losses for tax purposes to help them preserve capital and save and create jobs; and (3) expanded the availability of the net operating loss carry-back deduction to businesses and firms with gross receipts greater than $15 million for the same reason. The HIRE Act is designed to stimulate job growth and put out of work Americans back to work by doing several things: (1) allowing employers to take a payroll tax credit of 6.2 percent for hiring workers who have been unemployed for at least 60 days; (2) providing employers an additional $1,000 tax credit for each such newly hired worker the employer retains for 52 weeks; (3) allowing small businesses to write-off up to $250,000 of new investments through 2011; and (4) extending the Build America Bonds program for school construction and energy projects.

But while Senator Lieberman has supported these efforts to stop the recession from getting worse, he has repeatedly stressed that government actions alone cannot fully revive the economy. For America to regain its economic strength - creating new jobs that pay good wages – the private sector must regain its vitality. For that to happen, Washington must figure out how to reduce the federal deficit and the national debt and pursue pro-growth, fiscally responsible, business-friendly policies that will provide a solid foundation for new and existing businesses and the next generation of American entrepreneurs.

The Federal Budget and National Debt

Senator Lieberman understands the dire fiscal situation our country currently faces and he continues to work with colleagues on both sides of the aisle to find a comprehensive solution to our growing budget deficits and staggering national debt. Right now, our total public debt stands at $14.34 trillion, which is about 98% of our 2010 Gross Domestic Product (GDP) of $14.66 trillion.

The effort to address this fiscal crisis is particularly important as we approach the next vote on raising the debt ceiling later this summer. And for the first time in the history of our country, Standard and Poor downgraded the fiscal outlook for the United States from “stable” to “negative.” Senator Lieberman knows that if we do not act now to reign in federal spending, there will be lasting consequences in terms of the strength and productivity of our economy, the tax burden on future generations of Americans, and our financial standing around the world. In the short term, our debt also risks causing higher interest rates and inflation as the purchasing power of the dollar depreciates.

Senator Lieberman believes that any long-term solution to this problem has to be a balanced and bipartisan one that includes both spending cuts and revenue increases. As such, he is committed to working with anyone who is serious about trimming our excess debt, and he applauds everyone—Republican or Democrat—who has at least put forward deficit reduction proposals in an effort to move the discussion forward.

Accordingly, Senator Lieberman lent his support to a legislative proposal that was introduced a few months ago by Senators Bob Corker (R-TN) and Claire McCaskill (D-MO), which will require automatic, across-the-board spending cuts in the absence of adequate Congressional action. He decided to cosponsor the Commitment to Government Prosperity Act, because it is bipartisan, it covers all federal expenditures, and it has a tough enforcement mechanism. This legislation also requires that federal government spending return to its 40 year average of 20.6 percent of our GDP over a set number of years.

As we approach the debt ceiling vote later this summer, Senator Lieberman will continue to work with anyone who is willing to forge a bipartisan solution to one of America’s most difficult challenges – getting our fiscal house in order.

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Senators Introduce Revised Cybersecurity Legislation, S.3414

The five co-sponsors of bipartisan cybersecurity legislation introduced new, revised legislation July 19, 2012; to protect our national security, economic security, and life-sustaining services from increasingly commonplace cyber-attacks.

The co-sponsors - Homeland Security and Governmental Affairs Committee Chairman Joe Lieberman, ID-Conn., Ranking Member Susan Collins, R-Maine, Commerce Committee Chairman Jay Rockefeller, D-W.Va., Select Intelligence Committee Chairman Dianne Feinstein, D-Ca., and Federal Financial Management Subcommittee Chairman Tom Carper, D-Del. – offered the revised Cybersecurity Act of 2012 in a good faith effort to secure enough votes to address the immediate threat of attack from foreign nations, hacktivists, criminals, and terrorists against the nation’s most critical cyber systems. More information: here.