Washington, D.C. – Today, Senator Bob Casey (D-PA), Chairman of the Joint Economic Committee (JEC), released the following statement on a letter sent to the Joint Select Committee on Deficit Reduction outlining specific policy recommendations and their economic impact:
“The JEC is a bicameral Congressional Committee that advises Congress on economic policy and examines the effects of legislative policies on the economy. My role as Chairman of this Committee is to make sure my colleagues understand the various impacts that different pieces of legislation can have on the nation’s economic well-being.
“Guiding the Committee’s work has been the realization that policymakers must simultaneously accomplish two key objectives: incentivizing and strengthening economic growth in the short-term while also putting in place policies that will get the nation’s fiscal house in order in the medium- and long-term. That is precisely the challenge in front of the Joint Select Committee, as you work to identify at least $1.5 trillion in budget savings between 2012 and 2021 while ensuring that any short-term fiscal contraction does not harm the still-fragile economic recovery. Meeting this deficit-reduction target will be a critical step in the continuing efforts at reducing our long-term deficit.
“To better understand the impact of different deficit-reduction alternatives, the JEC compared a balanced, 10-year $1.5 trillion deficit reduction package with less fiscal contraction in 2013 than in later years to automatic spending cuts of $1.2 trillion over 10 years with the cuts beginning in 2013. The analysis finds that automatic cuts would lead to economic growth 0.5 percentage point lower than under the balanced approach. I hope this information is helpful to the Joint Select Committee and highlights the need to put forward a balanced package of savings for Congress to vote on.
“With all of this in mind, my letter to Joint Select Committee on Deficit Reduction outlines some specific initiatives that support the recovery and create jobs, while helping to reduce the deficit and boost the economy. With such an important task before them, I hope that the Joint Select Committee puts aside partisan politics to take action that will spur job creation and put Americans back to work.”
Click here to read the full text of the letter.
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