Published December 04, 2008 11:39 pm -
Loebsack in area to gather ideas on how to help economy
Congressman visits with community members and local officials in Bloomfield
By MARK NEWMAN Courier staff writer
BLOOMFIELD — U.S. Rep. Dave Loebsack is seeking input from those on Main Street impacted by what’s happening on Wall Street and beyond.
U.S. Rep. Dave Loeback is making the rounds in the Second Congressional District this week. He’s hoping to gather information and ideas from southern Iowans on how to help a weakening economy.
“In recent weeks and months, we have a new administration, a new congress and a change in the economy,” said Loebsack while meeting with community members and local officials Thursday at Bloomfield Main Street.
One local issue he is well aware of, he said, is improving Highway 63.
“The economic stimulus plan is going to have infrastructure as the key component,” said Loebsack. “But I cannot say for certain if there will be a vote [in Congress] next week.”
He said good roads and a larger utility capacity are important to for growing businesses.
But, pointed out one resident, will better roads really be enough to help local businesses survive? Someone needs to provide economic incentives for small businesses, he was told.
Loebsack said he would rather do that than “rewarding” corporations that relocate overseas with tax incentives. But the bill being drafted in the House may not have as much tax relief as small business owners may want.
“Tax policy, [including] small business [assistance], will be a part of the package. But I know infrastructure is going to be the focus,” he said.
The immediate goal is not necessarily a booming economy.
“If we can prevent the economy from slipping any further, and the unemployment rate from going any higher, that’s [going to] help small businesses, too. That’s why we want that stimulus package: Economic recovery,” Loebsack said.
Russ Mikels, the local General Motors auto dealer, told Loebsack he was feeling the pinch as the economy slowed down. But not only is he selling fewer vehicles, the trouble GM is having at the corporate level is impact him, too.
When he sells a vehicle to a customer for $5,000 less because of a GM rebate, he then applies to GM for the rebate. But whereas it used to take a week or two to get that money, the company is now telling some dealers to wait three weeks.
In some cases, he said, the more cars he sells in a short period, the worse off he is. The government should help the automakers, which directly or indirectly employs million of Americans, Loebsack and Mikels agreed.
Loebsack said he would support helping the Big 3 in Detroit, especially if they are willing to concentrate more on fuel efficient cars that could help reduce dependence on foreign oil.