DeMint: Stimulus Debate May be Hurting Economy

Sen. Jim DeMint (R-S.C.) indicated that he thought the debate over the economic stimulus package before Congress may actually be having a negative effect on the economy.

DeMint told a group of conservative bloggers that “uncertainty” is at the root of the United States’ economic problems, and that consideration of the spending package is only increasing the amount of uncertainty in the economy.

“What we have now is uncertainty, and uncertainty is what causes recessions,” DeMint told bloggers at the Heritage Foundation. “Right now, everybody’s waiting to see if the government will help them. Everyone’s locked down, and the government is creating more uncertainty.”

DeMint, a particularly fiscally conservative lawmaker, has been an opponent of the stimulus package, as well as the bailouts for troubled automakers and the American financial system. DeMint said Tuesday that he prefers tax cuts as a method to stimulate the economy, a traditionally Republican issue.

On taxes, DeMint said uncertainty over what will happen to income and corporate tax rates after cuts passed during the Bush administration are set to expire is also fueling economic uncertainty.

“This is not change you can believe in — this is business as usual as I’ve ever seen it in Washington,” DeMint said.

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