By Bill Hammond
Published: 10-16-08
In the days before and weeks since the Emergency Economic Wall Street Rescue measure was approved by Congress and signed into law by the Administration global markets continue to experience erratic fluctuation. America is facing its toughest financial struggle in generations and economists warn of a protracted market correction. Beyond the dollars and cents the affect on the livelihood and dignity of Americans is now linked with our economy.
Those impacted most by this devastating financial crisis are our hardest working men and women. Americans daily are being laid off from work. The unemployed now face a shrinking job market. Inability to earn a paycheck impacts their lives in destructive ways. Soon decisions on whether to buy groceries or pay the electric bill are no longer a distant concern.
Predatory lenders put into motion the mortgage crisis that eventually spiraled into the decimation of revered banking institutions. Economists investment professionals and government officials are crystal clear on why the global economy is flagging – too many people want something for nothing. On both Capitol Hill and Wall Street politicians and bankers seem to have an abundance of excuses and a short supply of accountability.
The recently passed rescue plan will provide the injection of resources that Treasury Secretary Paulson and Fed Chairman Bernanke believe will pull our economy away from the brink of collapse and also provide more accountability for Wall Street. A rescue was needed but it is absolutely shameful that pork barrel incentives which will account for $112 billion over the next five years were added to the final version in return for voting for this emergency measure.
Only time will tell the depth to which this crisis will affect our national economy. Here in Texas we are fortunate to have been buffered from some of the most dire financial impact because our state leaders’ commitment to fiscal responsibility. In news reports and business publications media outlets have noted stark differences between the economies of Texas and California.
California’s economic woes provide the most fitting microcosm of our national crisis paying for project after project with billions in bond debt. Today California faces a $15.2 billion budget deficit. Most recently California put the federal government on notice that it may ask for its own federal bailout as a result of the “spend now pay later” attitude so prevalent among its government financial institutions and consumers.
In a few short months the Legislature will convene in Austin and hold in the balance our state’s economic security for the next biennium. Lawmakers must continue to exercise the fiscal restraint that has thankfully led to a multi-billion dollar budget surplus. Our job growth continues to flourish and our housing market remains steady; however Texans will soon feel the constraints of this economic downturn. Our state must willing to lend a hand to our citizens by lowering taxes and easing their financial burdens; however never put ourselves in the position to need a handout from the federal government.
Bill Hammond is the President and CEO of the Texas Association of Business a broad-based bipartisan organization representing more than 140000 small and large businesses and 200 local chambers of commerce.
