McClintock talks national economy during Tahoe stump
TAHOE CITY, Calif. – Deficit spending policies implemented by President Barack Obama over the past two years are an example of robbing Peter to pay Paul, said U.S. Rep. Tom McClintock in a Tuesday speech at Lake Tahoe.
While some may tout the benefits individuals receive with stimulus checks or landing a job underwritten by federal funds, that money is taken from businesses, McClintock said, which in turn will not be able to improve and create jobs in the process.
“The net of income transfers is always zero,” said McClintock, R-Calif., during the First Tuesday Morning Breakfast Club at Granlibakken Conference Center.
McClintock represents California’s 4th District, which comprises El Dorado, Placer, Nevada, Sierra, Plumas, Lassen and Modoc counties.
McClintock – who champions reigning-in federal spending levels rather than advocating for tax cuts – downplayed the partisan nature of the nation’s economic debate, noting that spending ballooned under the George W. Bush administration and has been amplified under the guidance of the current administration.
“Expenditures under Bush more than doubled from what they were under Clinton,” he said.
McClintock said cutting marginal taxes and curtailing federal spending are important to widespread prosperity.
“Voters are more riveted to economic issues, which means after an initial period of difficulty, the economy will rebound after the necessary steps are taken,” he said. “However, this is a period of momentous decision making.”
Maia Schneider, director of community development for Tahoe Forest Hospital, asked McClintock about the financial industry while asserting that banks have stopped lending to small businesses, stagnating job growth in the private sector.
The federal government has sent mixed messages to banks, McClintock responded. On one hand, bankers are encouraged to lend to small businesses and prospective homeowners. However, the government has proposed stringent regulations while vowing to punish irresponsible lenders.
Steve Teshara, principal of Sustainable Community Advocates, asked the congressman his thoughts on the Lake Tahoe Basin Prosperity Plan – a collaborative effort to identify ways to bring economic vitality and stability to the region.
McClintock praised the overall effort, but also expressed reservations.
“I’ve seen a summary of the plan,” he said. “Some elements are good and some elements have serious flaws.”
Elements that rely on public subsidies have serious flaws, McClintock further elaborated.