[Congressional Record Volume 156, Number 154 (Tuesday, November 30, 2010)]
[House]
[Pages H7645-H7649]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    RENEWING AMERICAN EXCEPTIONALISM

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Indiana (Mr. Pence) for 5 minutes.
  Mr. PENCE. Mr. Speaker, I rise today, the day after I had the 
privilege of speaking at one of the storied venues in American public 
life. The Detroit Economic Club for 75 years has been a place where 
American leaders of every political persuasion and philosophy have come 
to talk about the economy of this Nation. I had the real privilege of 
being able to address that gathering yesterday, and I want to express 
my appreciation to the organizers and the board for that. But I thought 
I might reflect for a few minutes this morning on my comments because 
what I sought to do at the Detroit Economic Club yesterday was really 
broaden the debate here in Washington, DC.
  We live in no ordinary times. Our economy is struggling in the city 
and on the farm. Unemployment is at a heartbreaking 9.6 percent 
nationally; 42 million Americans are on food stamps; and America has 
seen better days. After years of runaway Federal spending, borrowing 
and bailouts by both political parties, I believe there is a better 
way. I believe that we can renew American exceptionalism by returning 
our national policy to the principles and practices that made this 
economy and our economy the freest and most prosperous in the history 
of the world. I believe if we return to the practice of those 
principles, as I said yesterday in Detroit, that we can restore and 
rebuild our economy.
  Fiscal discipline is where it all begins, though. We have to put our 
fiscal house in order, and clearly the American people on November 2 
sent a deafening message to policymakers here in Washington, DC. that 
they want a government that lives within their means again. 
Fortunately, there is no shortage these days of ideas about putting our 
fiscal house in order: admirable suggestions of the President's Debt 
Commission that we will learn more about this week; the Republicans' 
Pledge to America; there are thoughtful proposals and blueprints by 
Members of Congress in both political parties, and I commend them all.
  On my part, I have coauthored legislation to establish a 
constitutional spending limit amendment. I think it is time that we 
limited Federal spending to 20 percent of our economy in the 
Constitution of the United States of America. We have a saying back in 
Indiana, Mr. Speaker, that good fences make good neighbors. I think we 
ought to use the Constitution of the United States in the years ahead 
to put fence lines around spending to give this and future Congresses a 
clear guideline of just how much of the American economy this 
government can consume, and to give them an incentive for growth.
  But let me say, fiscal discipline alone will not be enough to bring 
jobs and prosperity back to America. We need an agenda for growth, and 
that is what brought me to Detroit yesterday. What I described and 
sought to describe were the building blocks, the traditional

[[Page H7646]]

American building blocks of growth, an incentive-based agenda. I think 
it is five-fold. First is sound monetary policy. Second is not only tax 
relief but tax reform. Third is access to all American resources in 
energy. Fourth is regulatory relief and reform. And finally, it is 
expanded international trade. S-T-A-R-T. I believe that it is a 
prescription for a fresh start in the American economy. And what I 
expanded on yesterday was my belief that if we will in this next 
Congress which will gather just weeks from now, if we from both ends of 
Pennsylvania Avenue will repair to these ideas and seek to advance not 
the arguments that are happening in Washington even at this very hour 
at the White House, do we preserve tax rates, do we let some tax rates 
expire and become tax increases, but rather how do we really pursue 
policies that will release the trapped energy in this economy.
  Some experts suggest that there is more than $2 trillion in profits 
on the sidelines in this economy. I believe in pursuing sound monetary 
policy at the Fed, having them focus on price stability and by 
preserving all current tax rates but then embracing tax reform like a 
flat tax. I believe the time has come to abandon our progressive tax 
rates and have the same flat rate, after a generous allowance, on 
individuals and businesses. What could be more fair that the more money 
you make, the more money you pay to the government, but everybody pays 
the same flat rate.
  We need to develop an all-of-the-above energy strategy that gives the 
American people access to new technologies, new resources that are in 
our own making and in our own reach. We need to bring regulatory reform 
to lessen the burden on small business owners and family farmers that 
regulatory red tape provides. I think it is time for regulatory PAYGO, 
Mr. Speaker. I think if we are going to raise regulation in one area, 
we ought to lower it in another. And how about a 10-year timeline on 
any new regulations. And, of course, expanded trade has to be a 
critical part of any growth agenda.
  With that, I would send any of those that are looking into my Web 
site at MikePence.house.gov, I would love to have them take a look at 
our speech at the Detroit Economic Club yesterday. I hope that it 
starts a conversation in this and the next Congress about growth 
because I believe that as we put our fiscal house in order, it is 
imperative that we return to the practices and principles that have 
made this the most prosperous nation in the history of the world, and I 
believe with all my heart will make this Nation the most prosperous 
nation for decades and decades to come, so help us God.

  Renewing American Exceptionalism: An Agenda for Economic Growth and 
               Prosperity, Mike Pence, November 29, 2010


                         Detroit Economic Club

       Thank you, L. Brooks Patterson, for that kind introduction 
     and heartfelt thanks to Beth Chappell and all the members of 
     the Detroit Economic Club for hosting me. For 75 years, the 
     Detroit Economic Club has been a premier venue for leaders 
     interested in saying something significant about our economy 
     and I am genuinely grateful to be able to join the ranks of 
     those who had the privilege to ``say it here.''
       And it's great to be in Detroit--home to Motown, the Lions 
     (you know who this Colts fan was cheering for on 
     Thanksgiving) and the ``Car Capital of the World.''
       My father ran a chain of gas stations so, like most 
     Americans, I have had a life long love affair with the 
     automobile. Try to imagine America without the Ford Mustang, 
     the Chevrolet Corvette, or the Dodge Charger.
       Being from Indiana, I am especially proud of the role that 
     Hoosiers have played and continue to play in this unique 
     American industry. And it all started here in Detroit. 
     America owes a debt to the ingenuity and entrepreneurism of 
     this great city. You helped define the character of a nation.
       But Detroit and America have seen better days and I come to 
     this storied podium to say after years of runaway federal 
     spending, borrowing and bailouts by both political parties, 
     that there is a better way, a way we can renew American 
     exceptionalism by returning to the principles and practices 
     that built this great city and this great country and can 
     build it again.
       We live in no ordinary times. Our economy is struggling in 
     the city and on the farm. Unemployment is at a heartbreaking 
     9.6 percent nationally and nearly 13 percent in Michigan. 
     Nearly 42 million Americans on food stamps. A housing crisis 
     and dismal GDP growth.
       And it seems that those in authority have no idea what to 
     do about it. Some in the administration call it the ``new 
     normal.'' (like we haven't heard that before) In the 70's 
     they called it a national ``malaise.''
       With more than 15 million people still looking for work, 
     President Obama and Democrats in Congress have tried to 
     borrow and spend the country back to prosperity resulting in 
     trillion dollar plus annual deficits and a nearly $14 
     trillion national debt. To this runaway federal spending they 
     added a government takeover of health care, attempted a 
     national energy tax and approved one bailout after another.
       In September 2008, when the Bush Administration proposed 
     that Congress give them $700 billion to bail out Wall Street, 
     I was the first Member of Congress to publicly oppose it. I 
     didn't think we should do nothing, I just thought it was 
     wrong to take $700 billion from Main Street to bailout bad 
     decisions on Wall Street. I warned that passing TARP could 
     fundamentally change the relationship between the government 
     and the financial sector and so it has.
       Dodd-Frank codified ``too big to fail'' for some Wall 
     Street firms and made taxpayers the first line of defense 
     against failure. And we continue to bailout Fannie and 
     Freddie to the tune of about $150 billion, with more 
     expected, despite the fact that many of us have been fighting 
     for years to get them off the Government's books. The 
     partnership between the federal government and Fannie and 
     Freddie socializes losses and privatizes profits with 
     taxpayers getting the short end of the stick.
       And, even though I am proud of the American automotive 
     tradition and Indiana's ongoing role it, I even opposed 
     bailing out GM and Chrysler. While the administration has 
     been busy making the point that GM is on the rebound and 
     taxpayers are being repaid, most Americans know that it still 
     would have been better if GM had gone through an orderly 
     reorganization bankruptcy without taxpayer support.
       Taxpayer funded bailouts are no substitute for economic 
     policies that will create real consumer demand. I have no 
     doubt that American automakers and autoworkers can compete 
     and win in a growing American economy.
       To restore American exceptionalism, we must end all this 
     Keynesian spending and get back to the practice of free 
     market economics. The freedom to succeed must include the 
     freedom to fail. The free market is what made America's 
     economy the greatest in the world, and we cannot falter in 
     our willingness to defend it.
       Even though our economy is struggling and America seems at 
     a low point, I believe we can restore our economy but it will 
     take vision and courage to do it. And everything starts 
     with putting our fiscal house in order.
       The good news is there is no shortage of plans for fiscal 
     discipline in Washington these days. We have the Pledge to 
     America, the president's Debt Commission, and over time we've 
     had budgets, blueprints, outlines, and thoughtful proposals 
     from Members of Congress, and blue-ribbon panels.
       For my part, I believe the answer is a Spending Limit 
     Amendment to the Constitution. Since World War II the federal 
     government has operated on an average of just under 20 
     percent of gross domestic product. But, in the past three 
     years, Federal spending has climbed to nearly 25 percent of 
     GDP. Left unchecked, and accounting for no new programs, 
     federal spending will reach 50 percent of GDP by 2055.
       We should remember what Ronald Reagan said, ``No government 
     ever voluntarily reduces itself in size.'' We must have a 
     mechanism that forces Washington as a whole to make the hard 
     choices necessary to reform our nation's addiction to big 
     spending and unsustainable entitlements. By limiting Federal 
     spending to 20 percent of our nation's economy in the 
     Constitution, except for certain conditions such as a war, we 
     will create a framework for this and future Congresses to 
     live within our means and have the incentive to grow the 
     economy.
       To grow the economy we must shrink the size of the federal 
     government but fiscal discipline alone will not be enough to 
     bring jobs and prosperity back to America.
       We need a new agenda for economic growth and that is 
     principally what brings me to Detroit to discuss today.
       As Margaret Thatcher said in equally challenging economic 
     times (1977):

     . . . Of course we're not going to solve our problems just by 
     cuts, just by restraint . . . it was not restraint that 
     started the Industrial Revolution . . . It wasn't restraint 
     that inspired us to explore for oil in the North Sea and 
     bring it ashore. It was incentive--positive, vital, driving, 
     individual incentive.

       What was true for England in the 1970's, is true for 
     America today. Permitting people to enjoy the fruits of their 
     labor is what built our cities, conquered our frontiers, and 
     made America the most prosperous nation in the history of the 
     world.
       The new Republican majority in Congress must embrace a bold 
     agenda for economic growth built on timeless free market 
     practices and reform.
       So what are the building blocks of an incentive-based, 
     growth agenda? I submit they are the following:

       Sound monetary policy;
       Tax relief and reform;
       Access to American energy;
       Regulatory reform;
       Trade

       ``S.T.A.R.T.'' You could call it a prescription for a fresh 
     start for the American economy. Some of these are new ideas. 
     Some are timeless. Taken together, they will put us

[[Page H7647]]

     back on track for job creation and prosperity.
     Sound Monetary Policy and a Restoration of Free Market 
         Principles
       Sound monetary policy is the foundation of our prosperity. 
     A strong dollar means a strong America.
       The American people know we cannot borrow and spend our way 
     back to a growing America and sent a deafening message of 
     restraint to Washington D.C. on November 2nd. But it doesn't 
     look like the administration got the message and neither did 
     the Federal Reserve. During 2008 and 2009, the Fed pushed 
     well over $1 trillion into the financial system in an attempt 
     to rein in unemployment through more government stimulus, yet 
     the national jobless rate has been well above 9 percent for a 
     record-tying 18 straight months. The Fed's second and latest 
     round of ``quantitative easing,'' known as QE2, actually 
     seeks inflation in an effort to bring down unemployment. 
     Printing money is no substitute for sound fiscal policy. And 
     while there is no guarantee that this policy will succeed in 
     reducing unemployment, it is near certain that the value of 
     the dollar will be diluted. As economist Larry Kudlow says, 
     the Fed can print money, but it can't print jobs.
       I do not lay the blame solely at the feet of the Federal 
     Reserve. The problem for the Fed began in 1977 when Congress 
     imposed a dual mandate, which requires that the central bank 
     pursue price stability and maximum employment in executing 
     its policies. Too often, this conflicting mandate has pit 
     short-term hopes for job gains against long-term costs to 
     the economy. QE2 is an example of what happens when the 
     Fed involves itself too much in macroeconomic meddling.
       A couple weeks ago, I introduced legislation to end the 
     dual mandate and return the Fed to its original, single 
     mandate--price stability. Treasury Secretary Timothy Geithner 
     recently said the administration will oppose any effort to 
     end the dual mandate arguing that it was ``very important to 
     keep politics out of monetary policy''. But Congress created 
     the dual mandate in 1977 and getting the Fed back to its 
     original mission of price stability is precisely how we get 
     politics out of monetary policy.
       It's time that the Federal Reserve focus exclusively on 
     price stability and protecting the dollar. And it's also time 
     that policymakers in Washington D.C. embrace the kind of 
     reforms that will promote real growth.
       Before I move on, I would like to note that in the midst of 
     all that has happened recently--massive government borrowing 
     and spending, quantitative easing--a debate is starting anew 
     over an anchor for the global monetary system.
       My dear friend, the late Jack Kemp probably would have 
     urged me to adopt a gold standard here and now. Robert 
     Zoellick, President of the World Bank, encouraged that we re-
     think the international currency system, including the role 
     of gold and I agree. The time has come to have a debate over 
     gold and the proper role it should play in our Nation's 
     monetary affairs.
     Tax Relief and Reform: Flat Tax
       The first principle of a tax system in a free society must 
     be certainty. Uncertainty is the enemy of our prosperity. For 
     too long on tax policy, uncertainty has been the order of the 
     day.
       To end the uncertainty that is stifling investment, 
     innovation and growth, we must preserve current tax rates and 
     promote permanent tax reform.
       For starters, of course, Congress must permanently extend 
     the 2001 and 2003 tax rates to ensure no American faces a tax 
     hike on January 1st, and I have introduced a bill with Sen. 
     Jim DeMint to do just that. Most Americans know that higher 
     taxes won't get anybody hired. Raising taxes on job creators 
     won't create jobs.
       But, preventing a tax increase is not enough. If the 
     current tax rates were sufficient to get this economy moving 
     again, it would be and it's not.
       The time has come for Congress and this administration to 
     take bold action to simplify our tax system and lower 
     people's taxes.
       The tax code has grown too large and complex. It has 3.8 
     million words. The forms are dizzying. And nothing about it 
     seems fair.
       People are taxed on their income. Then after they pay their 
     bills, they take the leftover money and put it into savings 
     or an investment. If their savings or investments make any 
     money, they are taxed again. If they buy stock in a company, 
     the company pays taxes on its profits. Then it takes those 
     profits and provides a dividend to shareholders and it is 
     taxed again. The final outrage occurs at death, when your 
     estate pays taxes once again on all the money you'd 
     previously paid taxes on while living.
       All I really know about economics is what you tax you get 
     less of and what you subsidize you get more of. We need a tax 
     system that will encourage income, savings, investment and 
     growth, but our tax code does the opposite. It punishes 
     savers and investors by taxing them twice and in some cases 
     more times than that.
       To promote income, savings and investment, we need a system 
     built on the principle that income should be taxed once and 
     just once. We need a fair and effective method of taxation 
     that will make doing your taxes easy and remove the confusion 
     of the present tax code.
       In an upcoming study written by the legendary Dr. Art 
     Laffer, Wayne Winegarden and John Childs, they found the cost 
     of compliance with today's tax code to be over $540 billion 
     annually and that individuals and businesses spend 7.6 
     billion hours on their taxes.
       Just imagine if Americans were putting that time and money 
     into enjoying their lives or growing their businesses. The 
     Laffer study predicts that by simplifying the tax code and 
     cutting complexity costs in half, our economy would grow $1.3 
     trillion more over ten years than if we maintain the status 
     quo. That means each person in this country would be 
     approximately $4,200 wealthier. And that's just from 
     simplifying our tax code by half.
       But we can do better than that. How about a system where 
     you could file your taxes on a BlackBerry, or a system where 
     you might even be able to file a return with 140 characters 
     or less? How would you like to tweet your taxes?
       We can create a twenty-first century American tax system 
     that will provide government with the revenue it needs 
     without discouraging growth or placing an undue burden of 
     compliance on our citizens.
       There is one system that meets all of these criteria: the 
     best option, the most pro-growth option is a flat tax. I 
     believe it is time that America adopted a flat tax and 
     scrapped the current system once and for all.
       A flat tax would release enormous amounts of capital into 
     the system, and it would operate under a simple principle: 
     what you take out of the economy is taxed, like wages and 
     business income, and what you put into the economy is not, 
     like savings and investments.
       Individuals and businesses would pay taxes at the same 
     rate. Individuals would pay taxes on their wages or salary 
     after receiving a basic income exemption and an exemption for 
     any dependents, including children and elderly family members 
     and others who you care for in your home. Imagine how easy 
     this would be for people. Gross income minus a generous 
     standard deduction minus any dependent exemptions and you've 
     got your taxable income. Apply the rate and your taxes are 
     done. Everyone pays the same rate, and the more money you 
     make, the more you pay. It's fair, simple and effective.
       If you are a business, you pay tax on your gross income for 
     the year minus one hundred percent of your expenses: rent, 
     wages, fuel, supplies, etc. Depreciation is no longer 
     necessary because the entire cost of investment spending can 
     be deducted in one year.
       The flat tax eliminates all of the credits and deductions 
     and special preferences and tax loopholes that Congress and 
     an army of lobbyists have built into the tax code over time. 
     These fuel special interests and generally benefit one 
     person, business or industry over another. Our tax system 
     should not pick winners and losers, but should treat every 
     business, small and large, with the same basic rules.
       Instead, everyone would be on a level playing field with 
     certainty as to your taxes. A taxpayer would either subtract 
     his basic and dependent exemptions or business expenses and 
     end up with taxable income. It would reduce compliance costs 
     by hundreds of billions of dollars.
       Following the principle of only taxing once, it eliminates 
     the AMT, the capital gains and dividends taxes, and the death 
     and gift taxes.
       And this is hardly radical. A flat tax is in use in more 
     than twenty countries around the world, and they have been 
     proposed and supported by various legislators and economists 
     in America over the past 30 years, such as Robert Hall and 
     Alvin Rabushka, Dick Armey, Steve Forbes, Art Laffer, Jack 
     Kemp and Richard Gephardt. We don't think about it, but we 
     already use flat taxes in America as taxes for Social 
     Security, Medicare taxes, sales and property taxes.
       It may come as a surprise to many, but even the New York 
     Times wrote favorably about a flat tax saying, ``. . . every 
     dollar of income would be taxed once and only once. The plan 
     would subsidize saving, and create an exemption that would 
     protect the poor. [I]t is perfectly simple.'' The Gray Lady 
     was right.
       And a flat tax will make America more globally competitive. 
     New York City is still the financial capital of the world, 
     but for how long will that be true? The Wall Street Journal 
     recently reported that in New York City in 2011, the combined 
     federal and state tax rate will be nearly 54 percent. With 
     government taking more than half of your money, is that an 
     incentive to work hard or to take your business elsewhere?
       A global economy means New York is now competing to keep 
     businesses and capital from moving to Beijing or Bangalore. 
     Right now, our corporate tax rate is 15 points higher than 
     the rest of the world. And more than twenty countries with 
     growing economies have a flat tax in place for businesses and 
     individuals.
       Hong Kong instituted its flat tax in 1947 and has no tax on 
     capital gains or dividends. Its tax code is short, to the 
     point, and effective, and Hong Kong is a wealthy, thriving 
     city with a growing economy and government surpluses. Russia, 
     Czech Republic, and Ukraine all have flat taxes. The hard 
     truth is the future is flat. The world is going flat 
     everywhere but in America, and to lead the next American 
     century, our nation needs to lead in capital formation and 
     tax reform again.
       And a flat tax will mean jobs. According to one study by 
     the Heritage Foundation, the flat tax would result in 
     tremendous economic growth with GDP potentially growing

[[Page H7648]]

     by as much as 7 percent within 3 years and nearly 1.5 million 
     jobs being created.
       Not that this should come as a surprise. If you look back 
     at history, the Kennedy, Reagan and 2001/2003 tax reforms 
     were all followed by strong economic growth. The flat tax 
     goes beyond these tax cuts and provides not just lower taxes 
     but a greatly simplified system.
       After the Kennedy tax cuts, the top rate went from 91 
     percent to 70 percent. Economic growth soared: unemployment 
     went down by more than 2 percent and tax receipts increased 
     by 33 percent.
       Two decades later, President Reagan's across-the-board tax 
     cuts brought America back from a devastating recession. In 
     1981, unemployment was at 7.6 percent nationally. The Dow 
     Jones was at 777. Mortgage interest rates were over 20 
     percent. By 1987, the prime rate was down to 8.2 percent. The 
     Dow was up to 3,000 by the end of Reagan's term, and 17 
     million new jobs were created. That's real growth. It created 
     true opportunity and improved the lives of average Americans.
       And after the 2001 and 2003 Bush tax cuts, the economy 
     again grew, as did government revenues by $785 billion from 
     2004 to 2007, a record. There is an indisputable historical 
     case to be made that tax relief and reform creates jobs and 
     incentivizes growth in our economy.
     American Energy
       A source of American greatness observed since our founding 
     has been our abundant natural resources. As Daniel Webster 
     said, in words inscribed in the chamber of the House of 
     Representatives:

     Let us develop the resources of our land, call forth its 
     powers, build up its institutions, promote all its great 
     interests and see whether we also in our day and generation 
     may not perform something worthy to be remembered.

       A policy for developing American energy must be a component 
     of any plan for growth. We must embrace an all-of-the-above 
     energy policy that promotes energy independence in an 
     environmentally responsible manner. An all-of-the-above 
     energy policy should not mean subsidizing all-of-the-above. 
     It means allowing all types of energy to be developed and 
     compete honestly in a free marketplace.
       We can and should wisely use these resources to better the 
     lives of our citizens. Our environment can be protected while 
     we increase energy production, encourage greater efficiency 
     and conservation, and promote the development and use of 
     alternative fuels, and innovative new technologies like we're 
     seeing developed right here in Detroit.
       It also is time for a nuclear energy renaissance in 
     America. The regulatory process for new applications can be 
     accelerated, and we can safely store and recycle spent 
     nuclear fuel. Nuclear energy not only means a source of clean 
     emissions-free energy; it also means construction jobs, 
     manufacturing jobs, and science-based economic growth.
       Developing our own sources of energy here at home will 
     provide certainty about our future, ensure that energy 
     remains affordable and create jobs.
     Regulatory Relief and Reform
       Next, to restore incentive and encourage growth we must 
     reduce the regulatory burden on our economy. There is a place 
     for regulations that ensure safety and soundness and protect 
     people from danger, but our regulatory structure has grown 
     out of control.
       Today we have too many regulations and too many regulatory 
     authorities that have expanded the reach of the federal 
     government too far. These regulations add billions to the 
     cost of doing business and in their wake they kill jobs.
       Take the requirement from ObamaCare that businesses must 
     file with the IRS a form 1099 for any purchases from a vendor 
     for goods or services over $600 in a year. Seriously, that is 
     in the law. Of course, this is ridiculously burdensome and 
     just adds to the redtape that small businesses face across 
     the country. It should be repealed immediately.
       According to the Small Business Administration, the average 
     small business faces a cost of $10,585 in federal regulations 
     per employee each year. These small employers represent 99.7 
     percent of all businesses and have created 64 percent of all 
     new jobs over the past 15 years.
       Imagine if small businesses could put the $10,000 per 
     employee they spend each year on federal regulations directly 
     back into new jobs.
       Ronald Reagan once said ``A government bureau is the 
     nearest thing to eternal life we'll ever see on this earth.'' 
     It's time to change that, at least when it comes to 
     regulations.
       I propose that any existing regulation with an economic 
     impact of $100 million or more must be reviewed and if still 
     necessary, re-promulgated every ten years to allow for public 
     comment and a reassessment of the cost of the regulation. 
     Instead of eternal life, these regulations will get ten 
     years.
       After ten years, there is no reason not to review, 
     modernize, improve and reduce the cost of existing 
     regulations.
       Further, I believe that all new regulations that impose an 
     economic cost on families, businesses or local governments 
     should be subject to a regulatory ``paygo'' procedure before 
     implementation. If government wants to issue a new regulation 
     that is going to impose an economic cost, then it needs to 
     reduce another regulatory burden elsewhere so that there is 
     no new burden on the economy.
       Some regulations, and some bills that have passed Congress, 
     however, impose costs that are too great and can never be 
     offset and must be repealed.
       ObamaCare, Dodd-Frank, TARP, and Section 404 of Sarbanes-
     Oxley fall in that category. Also, Congress must override the 
     EPA's endangerment finding so that regulatory cap and trade 
     cannot be forced on the American people against their will.
     Increased Trade
       As most Americans know, trade means jobs, and that is 
     especially true in places like Indiana and Michigan where we 
     grow food that the world consumes and make cars and other 
     products that are used around the globe. Encouraging free 
     trade lowers barriers to entry for our goods, and that in 
     turn allows U.S. companies to create more jobs.
       Protectionism and closing our doors to other countries does 
     not help us, or people in the rest of the world. We must 
     support expanded free trade to renew American exceptionalism 
     and create jobs.
       Despite the president's stated objective of doubling 
     American exports in the next five years, trade has largely 
     been ignored by Democrats in Congress and the administration 
     in recent years. With a new Republican majority in the House, 
     I am hopeful that the free trade agreements with Panama, 
     Colombia and South Korea can move forward. We need to get 
     those deals done, and done right, but it should not end 
     there. We must promote increased trade at every opportunity 
     around the world. When the world ``buys American,'' Americans 
     go to work.
     Renewing the Character of the Nation
       Finally, to renew American exceptionalism, we must 
     recognize that our present crisis is not merely economic but 
     moral in nature. At the root of these times should be the 
     realization that people in positions of authority from 
     Washington to Wall Street have walked away from the timeless 
     truths of honesty, integrity, an honest day's work for an 
     honest day's pay and the simple notion that you ought to 
     treat the other guy the way you want to be treated.
       As strongly as I believe in the economic policies in this 
     address, I know we will not restore this nation with public 
     policy alone. It will require public virtue. `When the 
     foundations are being destroyed, what can the righteous do?' 
     As we promote policies to restore American exceptionalism, we 
     must also reaffirm our nation's commitment to the values that 
     have made our prosperity possible. As we seek to build 
     national wealth, we must renew our commitment to the 
     institutions that nurture the character of our people--
     traditional family and religion.
     Conclusion
       In 1977, my brother and I went backpacking through Europe 
     and found our way to West Berlin. I will never forget the day 
     I walked past the barbed wire and tank traps that barricaded 
     the Berlin Wall, passed through security at Checkpoint 
     Charlie and took my first steps into a wider understanding of 
     the world.
       Standing in West Berlin I saw the energy, bustling streets 
     and glass towers of a big city built on freedom and free 
     market economics. The strassen were filled with stores, 
     people, and bustling commerce.
       When we crossed through Checkpoint Charlie, past the harsh 
     glare of uniformed East German guards, everything changed. 
     The excitement and energy of West Berlin gave way to the dour 
     reality of Soviet controlled East Berlin.
       The buildings were drab--concrete block tenement 
     structures. Damage from World War II was still evident in 
     many buildings. The cars were vintage 1950's and people all 
     seemed to be wearing the same colorless apparel. It was a 
     gray, harsh reality.
       In that moment, I saw the difference between East and West, 
     between a free market economy and a planned economy run by 
     the state. Freedom and personal responsibility contrasted 
     with socialism and decline.
       The problem with our economy today is that, after years of 
     runaway spending and growth of government under both 
     political parties, America is on that wall between West and 
     East. No longer the vibrant free market that built cities 
     like Detroit but not yet overtaken by the policies that have 
     engulfed Europe in a sea of debt and mediocrity.
       To restore American economic exceptionalism, we have to 
     decide that we believe in it again and turn and pursue a free 
     market economy again with all our hearts.
       We have to choose. Ronald Reagan said it best:

     You and I are told we must choose between a left or right, 
     but I suggest there is no such thing as a left or right. 
     There is only an up or down. Up to man's age-old dream--the 
     maximum of individual freedom consistent with order--or down 
     to the ant heap of totalitarianism.

       I choose the West. I choose limited government and freedom. 
     I choose the free market, personal responsibility and 
     equality of opportunity. I choose fiscal restraint, sound 
     money, a flat tax, regulatory reform, American energy, 
     expanded trade and a return to traditional values.
       In a word, I choose a boundless American future built on 
     the timeless ideals of the American people. I believe the 
     American people are ready for this choice and await men and 
     women who will lead us back to that future, back to the West, 
     back to American exceptionalism. Here's to that future. Our 
     best days are yet to come.
       Thank you.

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