Dean's Blog

The following originally appeared as an op-ed in the The Ely Times. -Staff

I don't need to tell Nevadans that our economy is struggling.

Congress can help hasten an economic recovery by embracing pro-growth policies that place more money in the pockets of Americans. At the same time, we need to assist those who have lost their jobs and need help.

Unfortunately, Congress recently passed a $1.1 trillion dollar spending bill that invests in big government instead of the American people. Getting our economy back on track will require three things: the stabilization of our financial institutions; recovery of our housing market; and putting the federal government's fiscal house in order.

The roots of our economic troubles are found in the volatility of the stock markets and our banking institutions. In response, Congress passed a $700 billion bailout of our financial institutions. I was the only member of the Nevada delegation who opposed this legislation because it made taxpayers responsible for Wall Street greed without solving our economic troubles. Solutions to this problem exist that do not place current taxpayers and future generations at risk or push our country further in debt. Congress should instead pass legislation that protects the taxpayer, assists with bad assets, and allows the market to correct itself.

Housing is a major economic engine for our state and a key part of the solution for creating jobs and growth in our country. Housing normally accounts for 16 percent of our economy, but the industry has lost more than 3 million jobs recently. Nevada has had the highest foreclosure rate in the nation for 23 straight months. About 7.3 percent of all housing in Nevada has received one foreclosure notice. Clark County has almost 9 percent of its properties affected. Washoe County has seen a 153 percent increase in foreclosures since 2007. Nationwide, six million homes are vacant. Clark County has a 25,000 home inventory -- an estimated four-year supply.

Moreover, the housing industry generates significant tax revenue for federal, state and local governments and represents nearly $5 billion in consumer spending. Reestablishing a healthy housing industry should be a top priority. In Congress, I twice offered an amendment to expand the first time homebuyer tax credit to all homebuyers to help increase home sales; however, this measure was defeated largely along party lines.

It is also critical Washington puts its financial house in order. The U.S. Department of Treasury estimates that we will borrow more than $2 trillion this year alone. Unfortunately, the economic stimulus plan will do little to help our ailing economy. If deficit spending were the answer, the projected $1.2 trillion deficit for this year would certainly get our economy back on track.

Congress should consider proposals that balance the budget, reduce spending, and lower the deficit as a road map to economic recovery. Both parties agree that action is needed to get our economy moving and generate jobs, but any stimulus package should be responsible, deliberate, and act with purpose -- not waste taxpayer dollars on political paybacks to special interests.

Responsible fiscal policies will help strengthen the dollar and keep inflation at bay. This legislation actually spends more on new government programs than it does on our basic infrastructure needs and shovel ready jobs.

While our economic outlook is grim for the near-term, this is not the first time our nation has gone through a difficult period. Our economy is complex. While economists' debate the factors that have contributed to the current crisis and offer solutions; history offers little evidence that deficit financed "stimulus" spending leads to economic recovery. It is no secret that the health of our economy hinges upon job creation. But Congress missed a real opportunity to hasten our economic recovery. There is still time to get these policies right and deliver the right solutions for Nevadans and the American people.