BY JUSTIN LEIGHTY, Truth Staff
jleighty@etruth.com
GOSHEN -- When U.S. Rep Mark Souder decided to talk to the Goshen Chamber of Commerce today about the economic stimulus package, he didn't realize the president would be speaking a few miles away.
"When we set this up we didn't realize we were going to be upstaged," the third-district Indiana Republican said. "It's an amazing thing when a president comes in."
Though he opposes the size and scope of the stimulus package, Souder voiced hope that Obama's presence would mean good things for the RV industry when the treasury announces Tuesday how the second part of the economic recovery package, last year's $700 billion "bailout" package, will be used.
"I strongly oppose the stimulus package," but wants credit freed up to support the industry, Souder told a packed room of local business people and elected officials. "This is what we need in Elkhart County, not some announcement we're going to spend a couple million dollars on some bridge or road. We need people back to work."
He said of discussions over the stimulus plan and in spending the rest of the bailout money, "This is really scary stuff we're debating right now. How socialistic are we going to become in dealing with the crisis?"
Road construction would only touch on the edges of the local employment problems and would do nothing to get at the heart of the problem, he said. It's also only a tiny portion of the president's stimulus plan, which amounts to anywhere from $800 billion to $1.5 trillion, Souder said.
Souder's criticisms of the plan are:
* Why now? He believes it's timed politically, within Obama's first 100 days in office. He also believes it's too soon, only 40 days since the economic recovery package took effect, to tell what's working and to do as much good as possible. "We should wait 'til we get the credit market open" to leverage the stimulus.
* The package is just too big. It will drive the government to finance the budget with $3 trillion in bonds this year. "We're going to drive up the interest rates which is going to set us back again in the RVs." It could also cause collapses across the entire economy, he said, all in the name of stimulus.
* While there's a public perception that the stimulus package is a huge road-building package, the infrastructure spending (not counting digital infrastructure) totals only $52 billion: $30 billion for highways and roads, $13 billion for rail projects, $6 billion for water and sewer projects and $3 billion for airport projects. "I'll be shocked if our district gets 20 to 50" million dollars, he said. The limit is to keep construction costs from skyrocketing, but would only pick up slack of idled construction workers, not create a significant amount of jobs. He said the spending is valuable, but not a stimulant.
* Souder said he's in favor of extending unemployment compensation because of the need of workers in this area. "If there's no job, it doesn't do any good to tell people to get a job." However, it doesn't serve as an economic stimulus.
* Of the huge amount in the bill, "80 percent of this package doesn't even get spent this year," he said.
While job creation is necessary, he said the trick is to do it in a way that grows the economy enough to pay the tax burden created in the process. "It would be better not to have a bill than a bad bill."
He also said he philosophically disagrees with the president. In a discussion with the Republican caucus, Obama was "incredibly persuasive -- except if you're a conservative," Souder said. The president conceded no stimulus package in the U.S. has worked against a recession, Souder said, but argued this is more like the depression.
"It is absolutely unclear whether this is the forerunner to a great depression or whether it's a recession," Souder said.
It's become political fodder to play up economic concerns, the congressman said. "The problem is that this constant 'Woe-is-us' panic drives you deeper," Souder said.
The stimulus plan has him worried that it could actually delay a recovery.
"I believe we're very close to turning and I'm worried we're going to mess it up," Souder said.
Vince Turner, chairman of the chamber, said after Souder's address, "What the congressman is doing, he's asking questions that need to be asked." He agreed especially with Souder's first concern. "My question would be, 'What's the rush?'"
Local businessman Jim McKee said, "I hope that the stimulus package will work, but I have great concerns. Until they can finance these RVs, I don't think much is going to change here."
The idea of the package sounds nice, McKee said, "but I don't think it's going to fix it."
David Hess, Elkhart County auditor, came to the meeting wondering "how the mechanics of this will work. It could be a nightmare," he said. After Souder's presentation, he didn't feel any better about the stimulus package.
"I don't know if I know any more than I did," Hess said.