Following a mostly health care-dominated week on Capitol Hill, both the House and Senate left D.C. with unfinished work in their chambers. The House has in its chambers a bill from the Senate to fully fund the Federal Aviation Administration. This vital government agency hasnt been completely funded since 2007. This bill is unresolved because the House of Representatives is at odds with the Senate over labor provisions.
The Senate has in its chamber a bill from the House that would extend for one month unemployment benefits, COBRA health benefits and a delay in cuts in the DRs reimbursement payments. This bill pits the Senate against the House because the Senate wants the bill paid for and the House wants to add the price tag of the bill to the deficit. The price of a one-month extension of these programs is approximately $10 billion. These programs are now set to expire April 5, while the Senate and House are on their two-week recess.
The Senate has scheduled a procedural vote on the unemployment bill on Monday, April 12, the first day they return from their recess. If 60 Senators vote to move the debate forward, then the Senate could conclude the bill by weeks end. If unamended, the bill would go straight to the POTUS for his signature. However, the Senate GOP is not likely to support this vote unless they can be guaranteed an opportunity to offer an amendment that would provide for the cost of the bill to be paid for with unspent stimulus funds.
Much can be learned from our history as to how to control our debt, reduce unemployment and cut government spending. If we look back at the roaring 20s we will see a very similar scenario to where this county is now. Unemployment was 11.7 percent and we had entered into an unpopular war. Our debt was out of control and the industrial income had fallen almost 25 percent. Instead of passing stimulus packages, creating huge government programs and creating TARP bailout bills, President Harding, along with Calvin Coolidge implemented their own stimulus package. This package embodied cutting income and corporate tax rates, and slashing government spending. By the end of this presidency, unemployment was 2.4 percent, annual earnings per employee rose 34 percent and the national debt was cut by almost a third.
When the Senate returns from their two-week recess, GOP Senators will be prepared to try to teach some lessons from the roaring 20s. One of these lessons is that the government must reduce its spending. But given the expiration of this highly explosive government program, will they be successful in teaching one of the lessons from the 20s or will they buckle to the pressure?
Elizabeth B. Letchworth is a retired, former (4 times elected) United States Senate Secretary for the Majority and Minority. She is founder of GradeGov.com.
