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Long before he became one of the right’s most vocal critics of the idea that government spending could help boost the flagging economy, Rep. Paul Ryan offered a forceful, full-throated defense of stimulus spending — when then-President George W. Bush wanted it in 2002.
Ryan has denounced the 2009 Recovery Act signed by President Obama as “a wasteful spending spree” and “failed neo-Keynesian experiment,” and – as The Huffington Post pointed out this morning — dismissed as “sugar-high economics” the idea that government spending, through measures like payroll tax cuts and unemployment benefits, can help shore up a faltering economy.
But in 2002, when then-President Bush was seeking a roughly $120 billion package of tax cuts, tax incentives for business and unemployment benefits to jump-start the economy, Ryan offered a vigorous defense of the plan. “What we're trying to accomplish today with the passage of this third stimulus package is to create jobs and help the unemployed,” Ryan said in video that aired today on Up w/ Chris Hayes. The remarks came during a House debate on the measure on Feb. 14, 2002.
Ryan’s comments reveal a strikingly different economic analysis than the one he has become known for in recent years as the “intellectual leader” of the Republican Party and, now, Mitt Romney’s running mate. In 2002, Ryan argued that unemployment would remain at elevated levels even after the economy began to recover, and that aggressive stimulus would be a necessary and effective antidote.
“What we're trying to accomplish here is the recognition of the fact that in recessions, unemployment lags on well after a recovery has taken place,” Ryan said at the time. “We have a lot of laid-off workers, and more layoffs are occurring. And we know, as a historical fact, that even if our economy begins to slowly recover, unemployment is going to linger on and on well after that recovery takes place.”
Ryan’s advocacy of stimulus spending wasn’t limited to Washington, either. When he returned home to face constituents, he used similar language to make the case for the Bush stimulus bill. “You have to spend a little to grow a little,” Ryan told constituents at a town hall in Wisconsin in January 2002, according to the Journal-Times, a local newspaper. “What we're trying to do is stimulate that part of the economy that's on its back."
And as New York Magazine’s Jonathan Chait pointed out this morning, Ryan made the case for Keynesian stimulus in the form of income tax cuts in 2001, arguing for tax cuts that were “fast, deeper, retroactive to January 1st, to make sure we get a good punch into the economy, juice the economy to make sure that we can avoid a hard landing.”
Republicans have also repeatedly mocked calls by congressional Democrats to include renewed economic stimulus spending, such as a payroll tax holiday, as part of plans to reduce the deficit. Democrats have argued that short-term stimulus spending would help produce long-term revenue by boosting economic growth. Ryan has criticized that thinking, but in his 2002 remarks, he made exactly the same case: that short-term stimulus spending would produce budget surpluses.
“We've got to get the engine of economic growth growing again, because we now know because of recession, we don't have the revenues that we wanted to, we don't have the revenues we need, to fix Medicare, to fix Social Security. To fix these issues we've got to get Americans back to work,” Ryan said. “Then the surpluses come back, then the jobs come back. That is the constructive answer we're trying to accomplish here on, yes, a bipartisan basis.”
Ryan also argued in 2002 for helping workers pay for their health insurance and extending unemployment benefits. Since Obama has been in office, Ryan has voted against extending unemployment insurance.
“It's more than just giving someone an unemployment check,” Ryan said of the Bush stimulus bill. “It's also helping those people with their health insurance while they've lost their jobs and more important than just that unemployment check, it's to do what we can to give people a paycheck.”
Ryan called such measures “time-tested, proven, bipartisan solutions to get businesses to stop laying off people, to hire people back, and to help those people who have lost their jobs,” and urged congressional Democrats to break ranks and join Republicans in supporting the president’s plan.
“I've just recently read in our local Capitol Hill newspaper that members from the majority party in the other body want stimulus. They're breaking with their party leadership and asking for stimulus legislation to pass because in their home states they have a lot of people who are losing their jobs,” Ryan said. “I urge members to drop the demagoguery and to pass this bill to help us work together to get the American people back to work and help those people who've lost their jobs.”
:: Sal Gentile is segment & digital producer for Up w/ Chris Hayes. Follow him on Twitter at @salgentile. ::
Leave a Comment:
The only way to comment on Ryan's passionate defense of stimulus spending is to say WOW!. That is classic cynical, phoney, cash induced lying. There isn't a shred of honesty or integrity in a candidate who espouses liberal values when in Janestown, and Ayn Rand's values when talking to the Koch Brothers.
Those weren't Liberal values. Up until 08 those were universal values. There was nothing particularly controversial about this back then. Only since the ascendancy of the so-called Tea Party and the election of Obama has the GOP gone stark raving mad.
My question is: How do we convince the Republican voters that these are the people that cannot be trusted? This whole election process is heartbreaking. Obviously, the Republican party is willing to disenfranchise voters who may lean toward the left in order to gain the Whitehouse.
The total disrespect and contempt for the democratic process that the Republican party display is appalling.
That was the best made case for stimulus I've ever seen!!!! Obama should get the transcript of this and use Ryans words verbatim if they are ever in the need to defend Obama's stimulus bill.
Even more damaging in this video than Ryan making the case to pass a stimulus bill is him stating how unemployment / jobs recover at a much slower pace than an economic recovery.
It's too bad more people dont pay attention to DETAILS prior to voting. If they did, Ryan's performance this week would have just permanently sunk an already heavily leaking Romney ship.
I've had 12 hours to cool down from my initial anger and I am now just thinking of funny things. I an now thinking of Ron Popeil selling the stimulus like he would sell a slice and dice gadget, with Paul Ryan doing the same thing.
The newest GOP bumper sticker "You're gonna love my nuts!" :54
I applaud your decision to discuss poverty and the poor on your show this morning. This is a real issue that is for the most part absent from the campaigns and the news media.
If I were in charge of the DNC's advertisements, I would hire Vince from the Sham Wow to pitch Ryan's Medicare plan. He would have his headset on and talk about the $716 Billion dollar theft of funds from our seniors, the closing of hundreds of nursing homes, the refusal of more than 1/6 of doctors to accept medicare patients, and the shuttering of a quarter of our hospitals. They are all lies.
Vince would offer a Graty for signing up to Ronmey's plan (shipping and handling extra).
No active Republican politician can stand for what they really believe anymore, unless they are extreme right wing teabaggers. Their strategy since Obama's inauguration has been to ensure his is a failed presidency no matter what the cost, which means lying, and if necessary going against the best interests of their constituency. These are definitely the most despicable lot of politicians I have seen in my lifetime. He even kind of looks like Joseph Goebbels, doesn't he?
Yes he does Tony. Brownbackistan is a real place. It is in Kansas. Ryan is an apostle of Brownback. We have to stop them.
One of the things that is lost in talk about stimulus, is the base line from which you are stimulated. Deficit spending obviously stimulates the economy. But if we want growth that means ever increasing deficits. That is not sustainable. Keynes himself thought that stimulus was only justified if you de-stimulated the economy during periods where the economy was booming. We are running trillion dollar deficits. The economy is VERY stimulated from what would be a natural economy. Keynesian economics is aobut evening out the business cycle not creating jobs just because we want them.
Companies are sitting in trillions of dollars that should be reinvested in jobs for Americans which would stimulate the economy via the private sector. Since they aren't recycling that money the economy is being de-stimulated by the very private sector the right worships so. Since they are unwilling to spend, the amount of money in circulation is decreasing. When the right rails against government spending increases (even going so far as to scare people with the specter of runaway inflation), they are either stupid, or they have a plan to kill the economy dead. During times like this government must be the spender of last resort in order to make up for the private sector's hoarding of cash.
I believe they are not investing because people are not buying. Demand is low. Demand is low partly because their 401k and home equity has gone down. We cannot grow forever. This is a developed country we just don't need to develop it more. That is the big problem and no one talks about it because it can't be solved. We have to transition to a sustainable economy.
@Don Re: #5.2
You said:
"I believe they are not investing because people are not buying. Demand is low. Demand is low partly because their 401k and home equity has gone down."
I agree.
You said:
"We cannot grow forever."
I read your posts, and don't understand why you come to this conclusion.
You said:
"This is a developed country we just don't need to develop it more."
Being "developed" means what? I think this includes infrastructure, education, opportunity.
Our infrastructure is crumbling, our education system is a disgrace, the opportunity is limited only to those who already have access to wealth.
You said:
"We have to transition to a sustainable economy."
As long as the population is increasing, the economy must grow. The way I interpret your statements is that by "sustainable economy" you mean stagnant.
Agree we have to maintain what we have and we are not. Back in the 50's we needed highways and airports and schools. There are limits to everything. Natural resources will continue to dwindle. Nothing can grow forever. Seems common sense to me. Eventually pop will out grow the supply for food. Limiting pop growth is one of the first things we need to do.
Tony Pirog,
#5.1 - 'Companies are sitting in trillions of dollars that should be reinvested in jobs'
I think Don Matthews hit the bull's eye, for the most part, regarding employment. Private sector companies, contrary to what many may think, generally don't add to staff to magninimously provide employment, and then hope customers will buy their product or service. There may be an element of that in new ventures or new product lines, but even then, the smart plan involves some market research.
If there's no demand, or growth in demand, real or projected, jobs won't appear. Public sector work such as roads and bridges? Sure, that results in jobs, but the benefit part of cost/benefit isn't as tangible, and for that matter, the ARRA doesn't appear to have allocated a significant fraction to roads and bridges. Certainly, the guarantee of being well below 8% (whetever the administration said to the public with its passage) hasn't happened.
F&B666
The end of the Paul Ryan 2002 clip should be followed by, "I'm Barrack Obama and I approve this message.
It is crazy honesty that is unprecendetated. Gaffes should be traded off just like prisoners were traded in WW2. Biden is a real honest person who speaks his mind. Ryan has a script. Ryan has a joke about Obama needing a teleprompter to speak to sixth graders. Well Romney needs a teleprompter too. I despise Romney and everything he pretends to stand for.
LOL... you got that right!!!!
Speaking of gaffes... it's like the Republicans are completely unaware of the effect that social media is having on political campaigns. No longer can gaffes be swept under the rug. Within minutes of them happening, they are on the internet.
But what's worst of all is their doubling down on their lies even after they are caught. They're like confused squirrels running back and forth across the street when they see a car coming not knowing which curb to hop up on to get to safety.
So much fun.
Tax cuts are a form of economic stimulus and the Bush Administration’s tax cut stimulus was over $1 trillion each year, for eight years. (The Bush tax cut stimulus was well over $10 trillion for the last decade…and might have prevented the nation’s deficit.) Therefore, how can Republican leaders say that the Obama Administration’s stimulus of $800 billion for one year was too much? In the meanwhile, the GOP says they want to keep the $700 billion worth of Bush-tax cuts for people earning over $250K as if ‘it’ is ‘worth’ something to the economy. This is bubblehead economics!
The Obama Administration’s stimulus was carefully planned to be given to people of income levels, who would spend it, and Local and State Governments who needed it for educational and public service initiatives and needs. The Bush Administration’s tax cut stimulus was given mostly to the wealthy, and might as well, have been thrown out the windows of New York Times Square on New Years Eve! (Without any guarantee that the wealthiest would invest the amount given in our economy and would not put it in their personal savings here, or overseas.)
I think the differences between the two major parties handling of the nations tax money, shows that the Obama Administration has shown restraint in its Executive financial power.
you have to be veeeeeeeerrrrrrrrrryyyyyyy anti Obama to vote for those pair of chameleons...
The 2002 Ryan video is a bombshell. And we thought Romney was the biggest phony on the planet.
Bill it is like Ryan is just selling Medicare like he is selling a vacuum cleaner. Who in their right mind would believe that conservative Republicans are all of a sudden the defenders of Medicare. That is preposterous.
Goose meet gander. One of the reason that candidates from Congress are often unsuccessful is that their past voting record will jump back up and bite them in the butt. Mr. Ryan will obviously deny the equivalence in the two stimulus packages and nuance his way out of this. The reality, though, is that hypocrisy is boundless in this campaign. I actually agree with the 2002 Paul Ryan. And that stimulus (like the 2009 stimulus) shortened the pain of a recession.
Frank from Detroit has told the story. The new? story is that Ryan and Romney are the same person -- they not only revise history over and over again, they revise themselves over and over again and this makes it absolutely necessary that they not be elected. They are deceivers. Deception is a form of lying. This election cycle is exhausting and after 4 years of a Congress that has let the American electorate wander through economic calamity, this sort of manipulation is intolerable. The ID law has openly been promoted as a way for these yahoos to get elected to ensure that this deception continues in the Republican Party, moving it from the Congress to the White House.
One of the best shows. Congrats to Sal Gentile for digging up the video on Paul Ryan, being a Kensyian until he became Randy. I appreciated all the segments, voting suppression, poverty (Tanya Wells was extremely erudite in explaining her predicament). Appreciated segment on where did the stimulus go with Michael Grunwald. Keep it up. It seems like the Obama administration has a lot it could sell the public by advertising it, but didn't. Whereas the GOP which doesn't have good stuff to sell uses advertising principles to sell us stuff that doesn't do us any good and can do us harm.
I seem to remember President Obama saying almost exactly the same thing
“I urge members to drop the demagoguery and to pass this bill to help us work together to get the American people back to work and help those people who've lost their jobs.” Paul Ryan 2002
But Paul Ryan was more interested in defeating President Obama and legislating away women's rights - suddenly he doesn't want to get the American people back to work.
Ryan has adopted his current extreme obstructionist mode despite his personally expressed beliefs in the efficacy of stimulus spending. So, he is willing to knowingly allow the destruction of American lives to further his career. Put simply, this is evil.
You are truly the most moronic person ever.
You can see the destruction wrought by the current administration and yet you call Ryan evil.
It is hard to imagine romney winning this election fairly. How will Americans react when SCOTUS awards the election to him? Will they resort to 2nd amendment remedies? Will they revolt? I was discussing this topic with friends and was surprised and encouraged to find out that my fellow[canadian] citizens will support the American people if they decide to "take their country back". I am talking about real, practical and timely support.
Re: #14
After the 2000 election I did nothing.
After the 2004 election I did nothing.
If the 2012 election is won by Romney/Ryan, I will not resort to 2nd amendment remedies. And will not support anything like that.
I will however make my voice heard and will participate in peaceful civil disobedience.
2002 - tax cuts
2009 - billions in spending
Nuff said, next!
2002 to 2009 - trillions in spending AND ineffective tax cuts. Voted for by Ryan and signed by President Bush.
Enough said and the bartender cut you off.
No disrespect for the Olympics, but they were not worth missing five episodes of UP. Great show this morning; not sure it beat Saturday's though.
I can't wait to see how Steve ( my hero) will deal with Paul Ryan. I don't think he will be talking about P90X or cross-training.
The only way to beat Offshore Willy and Ryanocchio is to take their words and throw them right back in their moronic(thanks Sandy Lester) faces. The only thing these right wingers can do when confronted with facts is resort to name calling and changing the subject.
like others have posted, "Wow" are the only words I can come up with. Now I'm sorry I missed the show. But don't worry, I've posted it on my FB page and will share it with others who NEED TO SEE THIS! Thanks Chris Hayes for this GREAT REPORT!
It's SAD that our politics has come down to "making sure that President Obama is a one term president..." And who suffers with this kind of strategy? WE ALL DO (except for the politicians). Vote the TEA PARTY BUMS OUT!!! It's our only "HOPE".
This got nothing to do with Paul Ryan. It only give us a look into the American political mind...Majority of Americans are illiterate and Dumb when it comes to political stuff...with the right Spiner/propagandist, Osama Ben Laden could have run for office and won political office in the US in Present time. For the record I am not comparing or calling Mr. Ryan ben Ladin but I just trying to state how deep the stupidity goes in The US.
Guys like Ryan and Romney understand how stupid the mass is and you can manipulate them to do whatever you want as long as you have a good 30 seconds Political AD. They will vote against their own interest any day of week.
Imagine Mr. Ryan with his millionaire MOM in a retirement community advocating for the safe Keeping of Medicare.....Mr. Paul Ryan Mother does not need Medicare...but congressman Ryan knows that american are not able to have that simple thought.
It is tragedy....
Democrat Represents Industrialist VS Republican that Represents Wall Street
So who represent the people?
I think this guy represents the people:
Kudos Chris. Far as I'm concerned, you've already earned your salary for the rest of the year. Great to see the Tea-hadist's darling exposed as a bigger hypocrite than Romney-hood! One can only hope that the teabaggers' 15 minutes are almost up
Today's program(Aug.19) was to me the most valuable 2 hours I have ever spent watching a news program. It should be played on Democratic campaign commercials over and over again. Thank you Chris for the outstanding work you do.
The RNC, ALEC, Koch Bros et al owe the people of our country TRILLIONS OF DOLLARS for the wasted time, energy, impoverishment, stress, financial fraud, and damages of the past 3 years.
I look forward to Michael Grumwald's return to UP! This show is well-researched, socially relevant, and intellectually stimulating! I include only the categorical term "socially" because I think any time we act as a group, whether it's economic, political, environmental, or other; it's social.
Ryan turns out to be the very best Etch A Sketch running mate for Romney. Romney obviously can pick em.