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McCollum blames stock drop on Tea Party

Rep. Betty McCollum said that she blames Thursday’s precipitous stock market tanking on the Tea Party.

A statement from McCollum, a Democrat who represents St. Paul and its suburbs, says the nation is in danger of falling into a “Tea Party recession:”

“Today, the stock market tumbled 512 points, wiping away billions of dollars from the retirement and education savings of middle class Americans. Every American should be concerned about the very real possibility of sliding into a ‘Tea Party recession.’

“Tea Party Republicans took the entire U.S. economy hostage over the debt ceiling increase and used this crisis to force trillions in cuts at a time when more, not less investment in the U.S. economy is needed. The destructive default politics and machete budget cutting of the Tea Party Republicans in Congress is exactly the wrong medicine for the ailing U.S. economy. 

“The Republican obsession with slashing government investment is totally counterproductive. The Tea Party’s default crisis created enormous, unnecessary uncertainty in global markets. Congress should have raised the debt ceiling months ago and spent the summer working together in Congress on a growth agenda for the country.

“Congress needs to restore confidence in the markets. Now is the time for President Obama and Congress — Democrats and Republicans — to focus 100 percent of our energy on strengthening and growing America’s economy and creating jobs.”

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Comments (19)

  1. Submitted by dean braun on 08/05/2011 - 10:42 am.

    Mccollum, get real. Blame Obama and his 600+ regulations in July alone. what is wrong with you democrats. Nothing is ever your fault.

  2. Submitted by Ray Schoch on 08/05/2011 - 10:58 am.

    Name three of those regulations, Dean.

    Democrats who have caved to the radical right wing agenda are, in fact, equally responsible for the current economic and political malaise. There ain’t no free lunch, nor are there tax-free civilized societies.

    I might not agree with Mrs. McCollum on every issue, but she’s right on target that what’s needed is MORE investment in the society, not less.

  3. Submitted by dan buechler on 08/05/2011 - 11:13 am.

    #1 wants us to go back to unbridled capitalism with wild swings and a wealthy looters going off rich and scot free. How soon we forget past mistakes. I agree with my representative here.

  4. Submitted by dean braun on 08/05/2011 - 11:47 am.

    Ray (#2), Do you have internet? Look them up under regulations; FDA, FAA, FCC, EPA and any other agency you can thhik of.

  5. Submitted by Dennis Tester on 08/05/2011 - 12:32 pm.

    The last real job Betty had was selling lipstick at the cosmetics counter at Dayton’s. I don’t think her views on how the economy works should be given any credence.

  6. Submitted by Tim Walker on 08/05/2011 - 01:17 pm.

    Dean (31, #4):

    To think that these 600+ regulations “belong” to Obama requires one to believe that there were zero such regulations in place prior to Jan. 20, 2009.

    And that is an insane, non-reality-based belief.

  7. Submitted by dan buechler on 08/05/2011 - 01:59 pm.

    #4 you did not name anything in particular. If you are a tea person we know it is popular to point at regulations and say they hinder growth. However on to something else and I will give you facts. Obama receieved 69,498,215 votes. The current House republicans recieved less than 1/2 that at 30,799,391 votes. The tea party does not have a national headquarters or an official governing body. It is sometimes six people gathered in a living room. 152,175 people have signed a tea party petition to repeal the Affordable Health Care Act. It could well be a paper tiger but the media continues to pay a large amount covering it.

  8. Submitted by Bernice Vetsch on 08/05/2011 - 03:05 pm.

    Betty McCollum is absolutely correct. We cannot continue to put an obscene level of military spending on a Chinese credit card without taxing our citizens to pay the bill.

    And we cannot continue to ignore the infrastructure we can’t “afford” to update and maintain because we refuse to tax enough to pay for what benefits each and every one of us, especially businesses that need good roads and bridges and high-speed rail, new sources of clean energy and well-educated, healthy employees.

    And Dennis T., study up, will you?

  9. Submitted by greg copeland on 08/05/2011 - 04:30 pm.

    Hey Betty about those jobs you and the President keep talking about…13.9 million Americans are officially jobless, the July 2011 U. S. Unemployment Rate is 9.1%!

    Betty at the rate new jobs are now being created by the obama administration, it will only take six and half more years; yes only until 2018, to return all these jobless American workers to the ranks of the employed…only one year after obama completes his second term, unless he should lose his job next year.

  10. Submitted by Kent Herschbach on 08/05/2011 - 09:22 pm.

    Rep. Mccollum should be commended for her brave act of standing up to Wall St. and Obamma, and voting against the unConstitutional so called debt ceiling bill. Our two Senators that voted in favor, should resign immediately in shame. Article I sec 8 states that only congress shall have the power of the purse. Too big to fail banks, have been blackmailing Congress made the mistake of giving in to them on TARP. Kent

  11. Submitted by William Pappas on 08/06/2011 - 07:34 am.

    Betty is absolutely right on. Had the debt ceiling been extended and the congress focused on growth and jobs issues rather than slashing jobs this drop would never have occurred. It will be impossible to jump out of this recession on an austerity budget. Replacing more and more social security benefits and medicare coverage with tax cuts for the rich not only takes our seniors closer to outright poverty, it removes one of the most stimulative programs at the worst time. Obama’s stimulus spending was not enough, too focused on tax cuts and too generous to banks. Nothing the republicans and Tea Party types are advocating will stablize the economy or safegaurd against future runs on the market by regulating the banking and investment industry. How does the right wing fantasy of tax cuts for millionaires still have credibility. It has never worked in our history. When attempted at times of recession it has alwasy precipitaed huge economic calamity. Unbelievable.

  12. Submitted by Patrick Tice on 08/06/2011 - 09:12 am.

    The Tea Party recession is a real possibility, but it could end up just being a decade of stagnation as government-haters continue to make effective governance impossible. The latest goofy manifestation is the so-called “pledge” mentality; true believers had better sign the stupid things if they hope to get the TP’s blessing. In fact what is needed is open minded and creative thinking fed by data and focused on problem solving. The Tea Party stands for non of that – its philosophy of “taking a stand” in support of its rigid dogma is certain to drain the civility out of any discussion. The bond rating companies and our bondholders see this dynamic and conclude – correctly – that the United States will have difficulty following a rational course in its budgeting and many other areas of national life and governance.

  13. Submitted by Marcia Brekke on 08/06/2011 - 01:21 pm.

    The more “The American People” learn about the TP, the less they like them, as noted on MSNBC and the Strib this morning.

    If only Fox News would follow Murdoch’s British paper into extinction, the better informed “The American People” will be! (I used quotation marks around “TAP” because this is the group Republicans constantly cite as the people they represent, when in reality they represent The Tea Party American People.)

  14. Submitted by greg copeland on 08/06/2011 - 01:39 pm.

    Betty’s rant won’t put 13.9 million jobless Americans back to work.

    In July 2011 117,000 got new jobs, 193,000 jobless left the work force and the unemployment rate fell .1% to 9.1%. After a decade in Congress will Rep. Betty McCollum take any responsibility for these economic facts?

    Betty we are all waiting on your first plan to put jobless Americans back to work…perhaps you could share here on MinnPost before your next rant or cup of tea.

  15. Submitted by Sheryl christina on 08/06/2011 - 10:11 pm.

    Marcia #12:

    As if MSNBC or the strib have credibility.

  16. Submitted by Rod Loper on 08/08/2011 - 06:38 am.

    In the aftermath of the crash of that helicopter
    in Afghanistan, I await th Tea Party’s response
    to plsns to cut and privatize military pay and benefits. I am sure they are for it. I am sure Betty is against it. They know the price of everything and the value of nothing.

  17. Submitted by Bernice Vetsch on 08/08/2011 - 06:36 pm.

    Mr. Copeland: As long as the furthest-right-of-the-Tea-Party-Right have a strangle-hold on both the Dems and their own party, we won’t have enough REVENUE to make the public investments that are needed to cure our economy.

    Their goal, unfortunately, is the Grover Norquist one of decimating government until it is unable to help any American get OR create jobs.

  18. Submitted by Carol Flynn on 08/08/2011 - 08:10 pm.

    Rep. McCollum is the strongest voice for my beliefs these days. Keep up the fight.

  19. Submitted by Tom Anderson on 08/08/2011 - 09:57 pm.

    And today’s drop?

    How is it that a couple handfuls of Representatives in one third (the minority third) of our Congress are responsible for anything? Doesn’t Rep. Ellison’s Progressive Caucus have more members than the Tea Party?

    Is finger pointing considered compromise or is Betty! too busy talking to listen to the President of the United States?

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