WASHINGTON, D.C. — Congresswoman Loretta Sanchez (CA-47) Thursday questioned the Chairman of the Federal Reserve Ben Bernanke at a Joint Economic Committee (JEC) hearing on the status of the economy. Though the economy is still growing, it is not growing as fast as expected, partially due to threats to the global economy such as the crisis in Europe and high gas prices, which have effectively reduced household purchasing power.
Rep. Sanchez asked Chairman Bernanke what alternative steps could be taken, in place of an expiration of the Bush tax cuts, to right our nation’s fiscal path.
“Tax cuts for the top 2% of earners have significantly raised our deficit and have put us more in debt throughout the last ten years. If these tax cuts are irresponsibly extended another year, I want to know alternative measures to raise the revenues our nation needs,” said Sanchez. “Chairman Bernanke responded that a balanced approach is needed from Congress to right our fiscal path. The Chairman and I agree that Congress should act soon to increase certainty in the markets. Congress must raise revenues and reduce spending to avoid severe fiscal contraction.”
Rep. Sanchez also asked Chairman Bernanke to respond to comparisons between our economic outlook and the crisis in Greece.
“Comparisons are frequently drawn between the crisis in Greece and our own economic condition. However, Chairman Bernanke assured me that the United States’ economy is infinitely more robust than that of Greece. Our deep financial markets and independent monetary policy do well to buffer us. That being said, the current situation is not sustainable and so Congress needs to put the federal budget on a path to sustainability.”