Economic and Fiscal Policy

By Elaine (Dugger) Shaw

Our budget priorities must reflect our values: 1) maintaining a balanced budget; 2) using surplus revenue to shore up Social Security and pay down our debt to keep interest rates low; and 3) investing in critical economic and social infrastructure programs such as new economy technology, key commercial and transportation systems, education, and preventative health care.

I believe that when we have a surplus, the money should be returned to hard working Americans in the form of tax cuts after setting aside adequate reserves to meet unanticipated emergencies such as economic downturns and national emergencies. However, we absolutely should not have tax cuts that would result in deficit spending and a raid on the Social Security trust fund. This is both irresponsible and dangerous. As we saw in the 80's, economic recovery based on tax cuts and deficit spending does not work.

With the economic and social uncertainty of September 11th still with us, it is essential that our infrastructure, such as our water and transportation systems, be modernized and made secure against any terrorist threat. Moreover, it makes economic sense to invest in such infrastructure improvements because they create jobs and stimulate the economy.

I support an investment plan that would bring federal credit support and pension fund investments to help fund infrastructure projects of public benefit, such as affordable housing, transportation improvements, and research in technology. I also support a federal revenue sharing program to help out states and communities facing a budget crisis. This would provide the funding needed to prevent a disruption of essential services in these communities such as education, health care, and public safety.

During hard economic times, we must provide relief to unemployed workers through extended unemployment benefits, improved health care services, and access to job retraining programs. This will improve and prepare our work force for the future, as opposed to merely providing temporary and ineffective short-term relief.

We must also help the agriculture industry. Our district is home to some of the most important agricultural land in the country. Yet the agriculture industry is under severe economic pressure. We must ease the regulatory burdens and open our area to international markets so that family farmers can compete in the new global economy.

The need to protect Social Security is immediate and important. The current administration is taking money from the Social Security surplus to pay for a permanent tax cut. This is wrong. The longer we wait to act, the more money will be needed to maintain today's benefit structure. This will gouge other areas of the economy and disrupt economic progress. Retirees should be allowed to enjoy their retirement without being hounded by financial insecurity.

We must also protect pensions, individual retirement savings accounts and other retirement plans from fraud and abuse. As we all saw in the Enron scandal, failure to protect our 401k's can financially ruin retirees. I am in favor of increased corporate accountability for the accuracy of corporate financial statements. We must ensure auditor independence and quality and prohibit other conflicts of interest in the boardroom. Finally, the rules governing investment in and divestment of company stock must be the same for executives as it is for employees.

Now is the time for a leader with real world economic experience. With my experience as a finance lawyer, I understand the complex economy of today, and I will work to demand fiscal responsibility for your money in Washington.