Government shutdown hurt the economy

By Richard Trumka and Ken Sagar

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Last month, we saw Washington at its worst. Republican leaders, including Rep. Tom Latham of Iowa, driven by the Tea Party, recklessly shut down our government and brought our nation to the brink of default. Ignoring voices of reason from working families across Iowa, some of our leaders in Congress listened to shouts of “shut it down” and inflicted unnecessary damage to our economy.

The shutdown cost 120,000 jobs in the first two weeks of October and will reduce economic growth by at least 0.25 percent in the fourth quarter. In Iowa, it directly impacted 7,715 state federal workers, and put thousands of more in harm's way.

Thankfully, reason prevailed, Republican leaders relented and Congress appointed negotiators to work on a new budget agreement.

Before we get caught up in another news cycle where extremists convince us we shouldn't invest in our future, it is worth noting that a congressional budget is a vision that outlines our priorities as a nation. A good budget invests in America. A good budget properly funds its obligations and promotes the creation of well-paying jobs. It doesn't bargain away protections for our seniors and it isn't balanced on the backs of working families.

Budget austerity in the Tea Party Congress has slowed annual economic growth by 0.7 percent, cost 1.2 million jobs, and increased the unemployment rate by 0.8 percent, according to Macroeconomic Advisers.

It is important to remind Washington politicians about what working families need.

First, Congress should repeal the sequester it created, not replace it. The sequester's dumb across-the-board cuts have hurt everything from education to child care to medical research.

Repealing the sequester would generate 800,000 jobs by this time next year, says the Congressional Budget Office.

Most important, policymakers in Washington must reject proposals to cut Social Security, Medicaid, or Medicare benefits, vital programs that have shielded the elderly and vulnerable from poverty.

Instead, Congress should raise new revenue by repealing the tax subsidies that encourage corporations to send jobs overseas and ending special tax breaks for the wealthiest Americans.

By rebuilding our infrastructure, education and manufacturing base, we can create good jobs and provide relief to our struggling working and middle class.

Congress also needs to pass comprehensive immigration reform, so that 11 million aspiring Americans are no longer second-class citizens and the rights of all workers are protected. Hardworking immigrants contribute to our communities and would increase our economic growth, support benefit programs and create jobs.

Richard Trumka is president of the AFL-CIO. Ken Sagar is President of the Iowa Federation of Labor AFL-CIO. Comments: lance@iowaaflcio.org