Jobless numbers bring out political differences on economy

WASHINGTON - Unemployment figures showing even more Americans out of work have prompted suburban Republicans to claim stimulus efforts haven't worked while Democrats maintain the job market is often the last to rebound at the end of a recession.

The most recent unemployment reports show the U.S. economy lost 263,000 jobs in September, raising the national unemployment rate to 9.8 percent. According to the U.S. Labor Department, 15.1 million Americans are now out of work and 7.2 million jobs have been eliminated since December 2007 when the recession began.

Democrats say the fundamentals of the American economy have shown encouraging strengthening, like the growth of the U.S. service sector in September, for the first time in more than a year.

But the economic stimulus package can't fix the economy overnight, they add.

"While a full recovery is not expected to be quick, I am confident that in the months ahead the great American economic engine will continue to gain strength," said Sen. Roland Burris, a Chicago Democrat, as part of a Daily Herald survey of area members of Congress.

Burris expressed his support for extending unemployment benefits, a measure that passed the House on Sept. 22. The plan before the Senate would provide an additional 14 weeks of unemployment compensation and 20 weeks in the hardest hit states with unemployment topping 8.5 percent.

Illinois' unemployment rate in August was 10 percent, higher than the national average then of 9.6 percent, according to the Bureau of Labor Statistics. September state figures are expected later this month.

Rep. Bill Foster, a Batavia Democrat, argued that actions taken have already limited job losses in Illinois.

"Unemployment in the four largest counties in the 14th District peaked in June but since that time, because of the actions we took, more jobs were created - not lost - and the unemployment rate decreased," he said.

According to the Labor Department Web site, unemployment in Illinois rose from 6.7 percent in July 2008 to 10.4 percent in July 2009, but decreased to 10.0 percent in August.

But for Sen. Dick Durbin, a Springfield Democrat, "inadmissibly high" unemployment rates show that "the stimulus has not done enough".

He blamed the banking system, saying financial institutions have been sluggish in responding to business needs. "We need to be more aggressive to the banking sector," Durbin said.

Not surprisingly, suburban Republicans say the answer lies in less, not more, government intervention. Rep. Peter Roskam, a Wheaton Republican, said lowering individual taxes and taxes on small businesses would boost consumption and encourage job creation.

Hinsdale's Republican Rep. Judy Biggert agreed. "Proposals for more job-killing tax hikes on energy and massive new spending on government-run health care only further undermine growth and add to the economic uncertainty of American families and small businesses," she said.

Some Democrats, like Evanston Rep. Jan Schakowsky, have also evoked the idea of tax exemptions. An extension of tax credits for first time buyers, a measure the stimulus package has created, and a tax credit for new hires, are being discussed, she said.

Meanwhile, Rockford-area Republican Rep. Donald Manzullo believes the nation's export policies need updating. He said the current "unwieldy" system prevents U.S. companies from selling goods overseas, hampering American manufacturing and job growth.

"American manufacturing workers take a hit every time a U.S. company loses a sale to a foreign company," said Manzullo.

He praised Commerce Secretary Gary Locke's proposed reforms to simplify license requirements for U.S. closest allies and partner nations.

Biggert also underlined the importance of reforming the export system. Specifically, she said that the pending free-trade agreement with Colombia would immediately lower tariffs, boost exports, and create good manufacturing jobs in Illinois at companies like Navistar and Caterpillar.

The free-trade pact with Colombia, signed in 2006, has been held up by Congressional Democrats concerned about human rights violations.

But while Republicans and Democrats debate how best to spur the economy, one high-profile economic figure recently expressed doubts that the situation is going to improve anytime soon.

Former Federal Reserve Chairman Alan Greenspan predicted the national jobless rate would pass 10 percent in the next months and stay there for a while.