Today, Congressman Jerrold Nadler (D-New York), spoke out against mandatory sequestration that would result in massive job losses and against the Republican bill that would not adequately address the looming crisis.

“The simple truth is that no one – not the president, not the Congress, not anyone – ever wanted or expected the sequestration to take effect.  Why?  Because we have a jobs problem, and the spending cuts demanded by mandatory sequestration are a huge jobs killer,” said Nadler.  “Put another way, if we don’t stop it, sequestration will be responsible for killing 2.6 million American jobs.  So we simply must stop the sequestration mandated spending cuts,” continued Nadler.

To see video of Congressman Nadler’s remarks, click here.

Congressman Nadler’s prepared statement follows:

“I rise in strong opposition to HR 6365. 

“While there is wide bipartisan agreement that getting control of our debt is a critical long-term goal, there is also agreement that unemployment is unacceptably high and that our economy remains in need of major efforts to spur job growth. 

“As we grapple with these issues, there are two significant events approaching at the end of the year that many have argued could send our economy careening off the so-called fiscal cliff:  1) expiration of the Bush-era tax cuts, particularly those targeted toward the middle class, and 2) the start of unparalleled, across-the-board $1.2 trillion spending cut triggered by last summer’s Budget Control Act sequestration provision. 

“On the tax question, we are where we’ve remained for years now – the President and Democrats agree that we can’t afford to foot the bill for tax breaks for the wealthiest among us, while the Republicans continue to be beholden to the don’t-tax-even-millionaires-and-billionaires plan. 

“But on sequestration, there is rare agreement.  The simple truth is that no one – not the president, not the Congress, not anyone – ever wanted or expected the sequestration to take effect.  Why?  Because we have a jobs problem, and the spending cuts demanded by mandatory sequestration are a huge jobs killer.

“In 2013 alone, sequestration would require that defense and discretionary domestic programs each incur an across-the-board $54.7 billion cut.  Republicans have been spending a lot of time talking about the effects this steep cut would have on defense-related jobs.  And they are right.  According to the Economic Policy Institute, these cuts would result in the loss of 1.3 million defense jobs in just the first three years. 

            “But, Mr. Speaker, that is not the end of the story.  The Republicans completely ignore the almost identical job loss from the mandated domestic spending cuts – also about 1.3 million jobs lost in three years, according to EPI. 

“Put another way, if we don’t stop it, sequestration will be responsible for killing 2.6 million American jobs. 

“So we simply must stop the sequestration mandated spending cuts. 

“But this bill won’t do that – at least, not really.  HR 6365 still mandates 1) draining tens of billions of dollars of federal spending next year, 2) reducing the already draconian spending caps as outlined in the BCA, and 3) doing all this without adding one single dollar of additional revenue.  So the outcome is the same – the Republicans would still kill a couple of million American jobs. 

“Talk about driving off a cliff. 

“But we won’t hear about that from the Republicans, as they are too busy dancing as fast as they can to rewrite their role in setting up this self-made disaster in the first place. 

“During last summer’s debt ceiling debate – another game of chicken where Republicans held our economy hostage – Republicans demanded a dollar-for-dollar spending cut in order to raise the debt limit so our nation wouldn’t, for the first time ever, default on our debts.  Sure, there was the charade of reaching compromise through the so-called super committee.  But it should come as no surprise to anyone in this chamber that we are where we are today.  Republicans wanted deep cuts that would kill millions of jobs, and we now stand on the brink of implementing them.   

“Basic economics tells us that, if you want to support jobs and build the economy, government must not reduce spending during recessions.  In good times, when unemployment is low, government should build surpluses to pay down the debt.  In bad times, when unemployment is high, government should run deficits to make up for slowed private sector spending and to spur job growth.  That is why what President Clinton did in the 90s – balancing the budget and beginning to pay down the national debt during a good economic time – was so good, and why what President Bush did – enacting huge tax cuts and running large deficits during a time of low unemployment, when he should have been paying down the national debt – was so devastating.   Now, when we suffer from high unemployment, proposed spending cuts – particularly those of the magnitude Republicans are proposing – would be disastrous.  When unemployment is down to five percent, then we can thing about spending cuts.  Now we must spur employment, and not enact these job-killing spending cuts.

“Mr. Speaker, it is imperative that we stop the misguided and self-made disaster that sequestration, or equivalent spending cuts, will bring.  But HR 6365 won’t do it.  I urge a NO vote.”

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