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Dear Friends:
As our economy struggles with the most serious downturn since the Depression, the new Congress and President have a fresh opportunity to restore confidence in our economy and bring back regulations designed to prevent the type of free-wheeling activity that helped create this financial crisis.
We are in unprecedented times. We have seen a loss of more than 1.1 million jobs and the evaporation of $8 trillion in wealth as financial markets have declined and foreclosure rates have soared. The federal government has taken steps to help Wall Street, but we now need to turn our attention to Main Street. As President-elect Obama and the 111th Congress prepare to be sworn into office, we need both short-term and long-term solutions that will restore our nation's economic growth and vitality.
The first order of business needs to be a dramatic and substantial economic stimulus package. We must act quickly to help lift our nation out of its current economic morass. Economists widely agree that during a recession we need to spend money to keep Americans employed. Investments in infrastructure during such a period create jobs and provide the capital that is badly needed to improve our communities.
President-elect Obama has called for an economic stimulus package that will create 2.5 million new jobs in the first two years. On January 6, after the 111th Congress is sworn in, it will start work immediately to craft an economic stimulus package that President-elect Obama can sign as soon as he becomes President. The economic stimulus package also is likely to include tax cuts for middle-class Americans, investment in new energy-related technology, help for those facing foreclosure, and help to states for their growing Medicaid costs.
We also need to do something for our small businesses, which are the heart of our economy. Small businesses employ about half of our nation's workforce and they are finding it increasingly difficult to access capital. There is support for an economic stimulus package that would include greater access to the Small Business Administration's (SBA) loan programs and to micro loans that would help small businesses weather these difficult economic times.
On December 8 we will return to Washington to consider a bailout for the automakers. There will be no blank check for the U.S. auto industry. The automakers must come up with proposals that would assure the financial viability of their companies and the industry as a whole. Such a plan will require major concessions from all parties involved. A failure of one or more of the "Big Three" -- GM, Ford and Chrysler -- could have a very serious ripple effect on our economy. More than 4 million jobs are at stake, so I will be carefully reviewing the proposals from the auto industry.
Over the next few months, the new Congress and President are committed to restoring confidence in our economy. The key to our success will be the creation of new jobs and bold action to stabilize the financial and housing markets. It is not an easy task, but it is one that I am committed to making sure succeeds.
Best wishes.
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