Stock values plunged during President Obama’s nationwide address Monday and the markets closed after dropping 634 points, renewing fears of a recession. Iowa Senator Chuck Grassley says last week’s downgrading of the country’s credit rating came immediately on the heels of an agreement to raise the debt ceiling.
Grassley says, “It ought to serve as a wakeup call for Congress and the president in forcing us to take more meaningful action to reduce deficit spending and the resulting debt.” In the past two-and-a-half weeks, stocks have lost 15-percent of their value, while Monday is now considered the worst day for the stock market since the financial crisis hit in the fall of 2008.
“Fiscal irresponsibility in the town of Washington is hurting the economy,” Grassley says. “It’s also diminishing opportunities for our children and grandchildren. Obviously, we need timely action for fiscal responsibility and policies that will help generate economic activity.”
Grassley, a Republican, says the nation’s rising unemployment numbers need to be addressed right away, in his words, “It’s all about jobs.” “One of the reasons things aren’t moving along the line of hiring people is we have so much uncertainty about taxes,” Grassley says.
“We have export activity picking up a little bit but we need more congressional activity to promote export initiatives.” He says government regulations are “overly burdensome,” especially on domestic energy production. Grassley says small businesses need more help, in particular, as he says they’re responsible for creating 70% of all new jobs.