|UNEMPLOYMENT RATE HITS RECORD LEVEL; NEUMANN CALLS FOR NEW FOCUS ON JOB CREATION|
|WAUKESHA, Wis. – In a troubling sign that economic recovery remains out of reach, the U.S. unemployment rate today was reported at 10.2 percent – a 26-year high. Gubernatorial candidate Mark Neumann responded to the number, noting the government approach to leading the nation out of the recession through raising taxes and increasing government spending is failing the people of Wisconsin and the nation.
“You cannot tax and spend your way out of a recession,” Neumann said. “It simply does not work and these numbers prove this approach is actually making things worse.Record budget deficits are a barrier to economic improvement.”
Neumann stated that, as Governor, he will focus on reducing government spending and cutting taxes to leave more money in the hands of private citizens, who will then make the choice to either save or spend it. If they save it, it will be the much needed capital for investments in Wisconsin and nationwide. If they spend it, the purchase of goods and services translates into more jobs.
“It may sound like Economics 101, but clearly our current leaders at the state and federal levels need to take a refresher course in economic development, because we are heading in the wrong direction,” Neumann noted.
Neumann has a record of achievement in balancing government budgets. As a member of the US House of Representatives in the mid-1990s, Neumann led the charge to control spending, which then allowed for significant tax cuts and a balanced federal budget for the only time since 1969.
“We understood that controlling government spending and cutting taxes would lead to job growth and economic development, and it did,” Neumann stated. “In fact, when I left Congress 11 years ago, the budget was balanced and we were actually paying off federal debt, which effectively provided added capital for private sector investments. It led to a strong economy with tens of thousands of jobs being created.”
Neumann pointed out the issue comes down to a fundamental difference in approach toward restoring jobs.
“Right now, politicians believe higher taxes on private citizens and having the government spend it will somehow lead to job creation,” Neumann said. “That is absolutely the wrong approach, and one I will work to correct as Governor.
“The anger we see as we travel across Wisconsin is compounded by the fact that the politicians are spending all their time and effort on growing government bureaucracy viahealth care reform rather than focusing on what they can do to encourage job creation,” Neumann added. “It is long past time to start addressing the number-one issue that is devastating communities across this great state and nation – how to turn the tide of job losses.”