[Congressional Record Volume 156, Number 107 (Tuesday, July 20, 2010)]
[House]
[Page H5723]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
UNCERTAINTY--THE ENEMY OF JOB CREATION
The SPEAKER pro tempore. The Chair recognizes the gentleman from
Florida (Mr. Stearns) for 5 minutes.
Mr. STEARNS. Good morning, Mr. Speaker.
With the United States unemployment rate steadily hovering around 10
percent, Americans are continuing to ask, ``Where are the jobs?'' The
response to this jobless crisis from congressional Democrats and the
Obama administration seems to be focused on higher taxes, increased
government spending, and more government mandates and regulation. All
of this has led to great uncertainty in the business community,
especially among small businesses which employ over half of all private
sector employees.
In a recently released letter, the U.S. Chamber of Commerce explains
how the current policies of the administration and congressional
Democrats are not working. The high spending and high tax agenda has
created an atmosphere of uncertainty. As the Chamber's letter correctly
states, ``Uncertainty is the enemy of growth, investment, and job
creation. Through their legislative and regulatory proposals--some
passed, some pending, and others simply talked about--the congressional
majority and the administration have injected tremendous uncertainty
into the economic decision-making process and business planning. This
is why banks are reluctant to lend and why American corporations are
sitting on well over a trillion dollars. It is why America's small
businesses and entrepreneurs, the engines of innovation and job
creation, are starving for capital and are either struggling to survive
or simply unable to expand. In the process, we are also eroding our
competitive position globally, as other nations take steps to cut
taxes, reduce regulations, and restrain the appetites of big
government. For all of these reasons, the known and unknown costs that
come with expanding operations and adding to payrolls in the United
States are simply perceived to be too high.''
As the Chamber's letter highlights, the continued expansion of the
Federal Government into all areas of our economy is stunting economic
growth and prohibiting private sector job creation. The Democrats'
congressional agenda includes one piece of job-killing legislation
after another. The new health care law includes thousands of expensive
and burdensome mandates and hundreds of billions of dollars in business
taxes and penalties. It contains thousands of pages of new regulations
to be followed by individuals, employers, health care providers and
States.
The House passed climate change bill, the cap and trade bill, would
create nearly 1,500 new regulations and mandates and carry a price tag
of well over a trillion dollars, according to the Chamber. Furthermore,
the Environmental Protection Agency is engaging in an unprecedented
level of regulatory action by moving forward with 29 major economic
rules and 173 major policy rules.
The list keeps going. The recently passed financial regulatory reform
legislation creates 243 new formal rule-makings by 11 different Federal
agencies, 47 studies and 74 reports. It is really no wonder American
businesses are hesitant to expand and hire.
In addition to the regulatory uncertainty, the Federal Government's
appetite for spending needs to be controlled. American families and
small businesses are simply making tough choices in this economic
climate but Federal spending continues to soar. The Federal Government
is spending $31,000 per household, the highest ever, and running up a
$1.5 trillion deficit in 2010, the largest deficit since the end of
World War II.
Recent yearly budget deficits have reached unprecedented levels,
accounting for 11 percent of the GDP. By comparison, the historical
average budget deficit is only 2.9 percent of the GDP. In 2008,
publicly held debt as a percentage of the GDP was about 21 percent,
nearly five points below the post-war average. Under President Obama's
budget, this figure would more than double to 90 percent of the GDP by
the year 2020. This continued structural debt poses serious economic
risks to this country. As the Chamber's letter notes, ``By crowding out
available capital for business expansion and eventually triggering
increases in interest rates and inflation, rising deficits and debt add
to uncertainty, inhibit growth, and smother job creation.''
The way out of this recession and toward job creation is to get
Federal spending under control and enact policies that free up capital
and encourage businesses to grow. We need to reduce uncertainty and
restore confidence in our economy. We cannot do this if the
administration and congressional Democrats continue to impose more and
more burdensome mandates and increase taxes on job creators. It's time
to reduce the unnecessary meddling of the Federal Government and let
the American entrepreneurial spirit flourish.
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