Bush Pressures Senate on Economic Stimulus
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KANSAS CITY, Mo. — With a new negative jobs report in hand, President Bush is relying on his bully pulpit today to get the Senate to go along with a White House-backed economic stimulus package.
Mr. Bush is in the nation’s heartland pressuring Congress to boost the sagging economy with a plan of tax rebates for millions of people and tax breaks for companies. His latest try comes as the fragile partnership that led to an economic recovery deal in the House appears to be unraveling in the Senate.
In Washington, the Labor Department reported that nervous employers cut 17,000 jobs in January — the first such reduction in more than four years and a fresh sign that the economy is in danger of stalling.
That report ended Mr. Bush’s repeated claim — made most recently in his State of the Union address — that “America has added jobs for a record 52 straight months.”
The unemployment rate dipped slightly to 4.9%, from 5%, as the civilian labor force shrank slightly.
Job losses were widespread. Manufacturers, construction firms, and a variety of professional and business services eliminated jobs in January — reflecting the toll of the housing and credit debacles.
“Our economy has a solid foundation, but the U.S. is going through a period of economic uncertainty,” the White House said in a statement on the administration’s economic record.
“Wages have risen, but so have the costs of food, gasoline, and health care,” the statement said. “In addition, the downturn in the housing sector and the volatility of the financial markets are leaving many Americans feeling uncertain.”
A few hours after the new jobs numbers were issues, Mr. Bush stopped by the headquarters of Hallmark Cards Inc. to give his comments a real-life business context. It was his third such event in two weeks, following visits to a lawnmower plant in Maryland and a helicopter company in California.
The Commerce Department reported yesterday that consumer spending was up just 0.2% in December, the weakest pace in six months. Also, the Labor Department reported that the number of laid-off workers filing applications for unemployment benefits increased by 69,000 to 375,000 last week, more than triple what economists had been expecting.
And overall, the economy nearly stalled in the fourth quarter of last year with a growth rate of just 0.6%, capping its worst year since 2002.
Both the president and Congress are anxious to show some action to a frustrated public.
The House quickly adopted a $161 billion economic stimulus plan this week that would send between $600 and $1,200 rebates to more than 100 million Americans in hopes they would spend the money quickly and give the flagging economy a shot in the arm.
Senate Democrats are pushing to add elements to the House plan that they say will add a bigger boost, including smaller rebates that would go to more people such as low-income older Americans, wealthier taxpayers, and disabled veterans, plus heating aid for the poor. The Senate plan, estimated to cost $204 billion, also would extend unemployment benefits.
Mr. Bush’s argument that the Senate should adopt the House package and get money into people’s hands fast does not go over well in a chamber that says it has a role to play.
The Senate majority leader, Harry Reid, Democrat of Nevada, said yesterday that Democrats have spoken on how the package can be improved. He said their bill was on track to be completed by February 15.
The Senate minority leader, Mitch McConnell, Republican of Kentucky, warned that the proposed add-ons were troublesome. “The stimulus train is grinding to a halt here in the U.S. Senate,” he said.
All parties have competing pressures — to get legislation done quickly, which is rarely done in Washington, and to manage to compromise when so many ideas are being championed.
The president, capping three days of travel, is not just trying to help everyday folks. His agenda also has featured five Republican fundraisers in four states. The events are expected to generate $4.7 million for the party and its candidates.
Today, Mr. Bush will raise money for Rep. Sam Graves, Republican of Montana, who is in a tough re-election race. Mr. Graves will also be with Mr. Bush when the president tours the Hallmark site.