[Congressional Record Volume 153, Number 42 (Monday, March 12, 2007)]
[House]
[Page H2404]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           U.S. SERVICES INDUSTRY ESSENTIAL TO GLOBAL ECONOMY

  The SPEAKER pro tempore. Pursuant to the order of the House of 
January 4, 2007, the gentleman from California (Mr. Dreier) is 
recognized during morning hour debates for 5 minutes.
  Mr. DREIER. Madam Speaker, when we look at the issue of globalization 
and the rapid economic rise of countries like India and China, critical 
questions about the continued competitiveness of the U.S. economy are 
understandably raised. Are there industries where we still have a 
comparative advantage? Can we compete with countries that have more 
than a billion people? Will the power of our innovation maintain our 
global economic leadership? These are complicated questions that demand 
a thorough analysis of our economy, our strengths and our weaknesses 
and the policies we are pursuing. I have explored some of these very 
issues in recent weeks from some remarks I have been making here in the 
House.
  Actually, as we look at the very positive indicators we have in the 
U.S. economy, we are thriving because of our engagement in the 
worldwide marketplace. Because of the complexity of these issues, we 
need a rigorous, open and honest debate. But today I want to talk about 
an economic issue that is not at all complicated, Madam Speaker; a 
matter of benefits that is so clear and widespread that it may be the 
one single globalization issue that is too simple to refute, and that 
is the issue of our services industry.
  Services have become absolutely crucial to our economic growth, 
employment and international trade. This sector represents nearly 80 
percent of both economic output and private employment in this country. 
Services are essential inputs into the production of virtually all 
products that we make, sell, buy or consume. The price and quality of 
services influence cost and productivity in all other sectors of the 
economy, including manufacturing and agriculture.
  Because our economy has come to rely on efficient, innovative and 
effective services, the industry has grown to become the largest part 
of our economy. In fact, services account for 78 percent of private 
sector GDP, or in excess of $8.5 trillion.
  This tremendous growth can be seen in our workforce as well. Since 
1993, the services sector has added roughly 25 million new jobs to our 
economy, and the Bureau of Labor Statistics predicts that virtually all 
new employment in the United States over the next half decade will be 
in the area of services.
  While the issue of job creation is absolutely critical to the 
strength of our economy, the issue of job quality is absolutely 
critical to standards of living. Again, the services industry is at the 
cutting edge, creating jobs that pay very well. Services jobs pay an 
average of $51,045 annually. In many service industries, ranging from 
professional services, management services, wholesale trade, 
transportation and warehousing, financing, insurance, information 
services and others, the average compensation levels are significantly 
higher than that. These are the types of jobs that constantly offer the 
opportunity to learn new skills, develop expertise and continue to 
climb the economic ladder. These are not the hamburger-flipping jobs 
that the service industry has been maligned for in the past. These are 
high-quality, high-paying jobs that offer the chance of advancement and 
an ever-increasing quality of life, and they are the backbone of our 
economy.
  Just as the service industry has thrived here at home, it is 
tremendously competitive in the worldwide economy as well. Madam 
Speaker, U.S. financial services, express delivery, telecommunications, 
entertainment, audio-visual services and IT are achieving exceptional 
success around the globe. With 95 percent of the world's consumers 
outside of the United States, their presence in foreign markets is 
crucial for their global competitiveness.
  Today, the U.S. is the world's largest service exporter. U.S. 
services exports have reached nearly $400 billion annually, with a 
trade surplus of about $66 billion. Our services companies have built 
this record, even though faced with high and complex barriers in many 
key foreign markets. The service sector remains one of the most tightly 
closed and controlled industries within our trading partners around the 
world. The removal of these barriers is crucial to our continued 
competitiveness.
  As services become more liberalized, they will have an even more 
powerful effect on the competitiveness of our entire economy. When it 
comes to the issue of globalization, services are a clear example of 
American competitive advantage and global leadership.
  Some facets of the globalization debate involve complex issues and 
challenges that require a great deal of careful consideration and 
analysis for us to fully understand them. But the U.S. service industry 
stands out as a clear, irrefutable example of how the U.S. economy 
thrives through global engagement, and it is a powerful and compelling 
indicator of how much our economy has to gain by expanding that 
engagement with the rest of the world's consumers, producers, workers 
and investors.
  Madam Speaker, I urge my colleagues on both sides of the aisle to 
continue to pursue an economic agenda that empowers U.S. companies and 
entrepreneurs to harness the power of the worldwide marketplace to grow 
our economy right here at home.

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