81R13366 BPG-D
By: Davis, Wendy S.R. No. 447
R E S O L U T I O N
WHEREAS, Since this recession began, a staggering number of
Americans have lost their jobs, and the heavy burden of
unemployment is causing the economy to weaken further; and
WHEREAS, The American Recovery and Reinvestment Act signed by
President Barack Obama on February 17, 2009, appropriates $787
billion in federal funds to jumpstart economic recovery; the
stimulus package is designed to help economically devastated cities
and states, to create or save some 3.5 million jobs, and to invest
in infrastructure, green energy, and technological innovation; and
WHEREAS, In order for the stimulus funds to have the greatest
impact and to maximize the creation and preservation of jobs, they
should be spent, as much as possible, on domestic materials, goods,
and services; and
WHEREAS, The Congressional Budget Office has noted that the
most effective type of fiscal stimulus is one that directs money to
people who are most likely to spend it quickly; thus, when a
stimulus allows a United States household to purchase the items it
needs, demand in this country is increased, and the initial
stimulus sets in motion further periods of economic consumption in
a process known as a "multiplier" effect; the degree of stimulus
provided depends on how much of the resultant spending goes to
purchase domestically produced goods, because if the additional
consumption is satisfied by imported goods, the income of foreign
producers rises, and the stimulus is essentially exported; and
WHEREAS, The number of American workers drawing unemployment
aid jumped to a record high of nearly five million in early February
2009, and this labor market deterioration is sending the economy
into a deeper spiral; in order to maximize the effectiveness of the
stimulus package at this crucial moment, it is imperative that the
funds be spent domestically whenever practicable, using American
tax dollars to amplify aggregate demand and create the greatest
number of American jobs possible; now, therefore, be it
RESOLVED, That the Senate of the 81st Texas Legislature
hereby express its intent that funds provided to the State of Texas
by the American Recovery and Reinvestment Act be spent, as far as
practicable, on domestic goods, materials, and services.