Kline attacks Democrats on economy

WASHINGTON, D.C. — As unemployment numbers continued to climb this week, Rep. John Kline, R-Minn., accused the Democrats of focusing on a “government takeover of health care” at the expense of the economy.

“In their haste to put Washington bureaucrats in charge of vital medical decisions, Democrats have failed to deliver on their economic promises,” Kline said in a statement. “The American people were promised jobs and economic recovery. Instead, they’re getting bigger government and less freedom.”

The unemployment rate in the U.S. hit 10.2 percent in October, which marks a 26-year high.

The administration has said, however, that the economic picture would have been worse without the $787 billion stimulus package that it has claimed saved or created about 640,000 jobs.

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Comments (3)

  1. Submitted by James Hamilton on 11/06/2009 - 06:28 pm.

    More constructive criticism from the right. Did Kline miss the Bachmannalia yesterday and now feel left out?

  2. Submitted by Richard Schulze on 11/06/2009 - 06:57 pm.

    Rational consumer behavior suggests that the consumer bears two types of debt — Long Term mortgage debt against his asset which his his major source of savings; Short term installment debt (which with credit cards is infinite in length) used to purchase depreciating assets. As long as the value of his housing asset rose, he could in essence borrow against his increasing equity, purchasing on what the Brits used to call the Never-Never plan short lived assets. From time to time he could convert this credit card debt into home equity loans.

    However, when the value of his housing asset decreased (and equity shrank), he changed his consumption patter, paid down his installment loans and created what had been thought to be an extinct bird — actual savings.

    This “unpatriotic” failure to immolate himself with hot new installment debt has had certain effects. First, the retail market crumbled, stores closed, commercial property owners found their properties in a downward value cycle, and banks raised the Cap Rates at which they valued commercial property — driving down prices in the market up to thirty percent as the Cap rates climbed from 6% to 9% Second, the drop in sales lowered the demand for product, hitting manufacturers in the gut, both in America and abroad.

    We will not see permanent relief until the supply of housing equals the number of qualified buyers. At that point there will be a more orderly increase in housing prices, consumer confidence will increase.

  3. Submitted by Thomas Edman on 11/06/2009 - 08:12 pm.

    Why is this news?

    I don’t mean that ironically. I seriously ask: when does a press statement by Kline, or any other member of the MN congressional representation, merit coverage?

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