[Congressional Record Volume 157, Number 81 (Tuesday, June 7, 2011)]
[Senate]
[Pages S3567-S3568]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
JOB CREATION
Mr. MORAN. Mr. President, on Friday of last week, the U.S. Department
of Labor released a dismal update on our Nation's economy. Not only did
our Nation's unemployment rate rise to 9.1 percent, but the number of
Americans looking for work increased to 14 million, and those who have
been jobless for at least 6 months climbed 45.1 percent.
It is clear the current economic policies are not working in our
favor. In fact, I suggest they are working against us, creating an
environment of uncertainty and hampering job growth in America. When
the message coming from Washington, DC, is more taxes, more regulation,
and more intrusion in the free market system, it is no wonder
businesses are not hiring additional workers.
Americans are looking for leadership to get our economy back on its
feet so they can find a job and provide for their families. In a recent
survey, 90 percent of Americans said the economy is in bad shape and,
by a margin of 2 to 1, Americans said our economy is on the wrong
track. I couldn't agree more. Changing the course of our economy will
require Washington, DC, changing its course.
Instead of creating barriers to job growth, Congress and the Obama
administration should be implementing policies that encourage job
creation. History shows that sustainable economic growth starts with
the private sector. So Congress and the administration have a
responsibility to create an environment where businesses can flourish
and start hiring again, and that starts by pursuing a series of
progrowth policies.
First, in my view, Congress must rein in government regulation and
stop passing burdensome mandates that come at the expense of that job
creation. As I tour manufacturing plants and other businesses in my
home State of Kansas, owners often ask: What is the next thing coming
from Washington that will put me out of business? Jobs in this country
are undercut with each new government regulation because it drives up
the cost of doing business, erodes our global competitiveness, and
limits the access to credit that businesses need to grow. Rather than
hiring new employees, businesses are spending their resources on
complying with these burdensome regulations and costly mandates--from
the EPA's effort to regulate carbon to the mandates imposed by the new
health care law.
According to the Small Business Administration, the smallest
businesses--those with less than 20 employees--spend 36 percent more
per employee than larger firms to comply with Federal regulations. That
is roughly $10,585 per employee to comply with all Federal regulations,
and very small firms are burdened even more per employee.
Small business, as we know, is the backbone of the American economy.
Those businesses employ half our private sector workers and have
generated 65 percent of new jobs over the last 20 years. So it makes no
sense to drive up their operating costs with additional government
regulations because that leaves them with fewer resources to hire new
workers.
Second, Congress can spur economic growth by replacing our convoluted
and burdensome Tax Code with one that is fair, simple, and certain.
When businesses know what to expect, they can better plan for future
expenses and will invest in their companies, grow, and hire new
workers.
Unfortunately, Congress is often too shortsighted when it comes to
tax policy. A 1-year or 2-year extension of tax cuts does not give
businesses the certainty they need to plan for that future. Employers
have to make decisions about the future of their business today, and
given the fact that their taxes will rise in the near future, they are
reluctant to hire new workers or expand their business. If we are
serious about creating jobs in this country, we have to give our
country's job creators the ability to plan for the future and a Tax
Code that encourages investment.
Third, Congress must open foreign markets for American manufactured
goods and agricultural products. Across the country, thousands of
Americans depend upon exports for jobs, including more than one-quarter
of all manufacturing workers in Kansas. By increasing our Nation's
exports, we will create jobs and opportunities for all Americans
without raising taxes or increasing the Federal budget. We should be
exporting our manufactured goods and agriculture products, not our
jobs.
Unfortunately, trade agreements with Colombia, Panama, and South
Korea, for example, have been stalled for 4 years, and each day that
passes, we risk losing more of our market share to our competitors.
During this delay, Colombia has moved forward on trade deals with
Canada, Chile, the European Union, Brazil, and Argentina. On July 1, a
pending agreement between the European Union and Korea will go into
effect. We cannot afford to sit on the sidelines while other countries
continue to move forward in their trading relationships with our
trading partners.
Together, the trade agreements with Colombia, Panama, and South Korea
are worth an estimated $13 billion in U.S. exports. The agreement with
Korea alone is worth $11 billion and would create an estimated 70,000
new jobs for Americans.
It is past time for the President to send Congress implementing
language for these trade agreements so we can open more markets for
American goods and agricultural commodities. When American businesses
are given the opportunity to compete on a level playing field for these
markets, they will succeed and more jobs will be created here at home.
Fourth, the United States, to remain competitive in the global
market, must develop a comprehensive energy policy that allows for
ample energy supply that is both affordable and reliable. Rising gas
prices and recent events in the Middle East have again demonstrated the
importance of having access to a reliable energy supply. Higher energy
prices are not only threatening
[[Page S3568]]
our global competitiveness, they are also hampering our economic
recovery. I don't know how we can expect our economy to recover when
energy prices are what they are. But when employers have access to
reliable energy supplies, they can spend their resources on hiring new
workers rather than on those escalating energy costs.
In my view, no single form of energy can provide the answer. To meet
our country's energy needs, we must develop traditional sources of oil,
natural gas and coal, encourage the development of renewable energy
sources such as biofuels, wind, solar, geothermal and hydropower and
expand the use of nuclear energy, as well as encourage conservation.
A recent report from the Congressional Research Service found that
our country's resources are far greater than those of Saudi Arabia,
China, and Canada combined. In fact, our combined recoverable oil,
natural gas, and coal supplies are the largest on the planet. Yet, in
2009, the administration canceled 77 oil and gas leases in Utah and
last year suspended 61 leases in Montana. The administration has also
restricted access to oil and gas exploration in the eastern Gulf of
Mexico and off the Atlantic coast--although these two areas hold
commercial oil reserves of 28 billion barrels and up to 142 trillion
cubic feet of natural gas. More production of energy in the U.S. means
more jobs in the U.S. and more U.S. workers at work and lower energy
costs for businesses and their employees.
Finally, Congress must reduce government spending to bring about this
economic growth. I think the debate on government spending is often
seen as some philosophical discussion or a partisan political bickering
opportunity here in Washington, DC. But the reality is out of control
government borrowing and spending has very real consequences for the
daily lives of Americans. Our failure to balance the budget will result
in increased inflation, higher interest rates, fewer jobs, and a lower
standard of living for every American. But this reality has not yet
sunk in here in Washington, DC, despite several recent warnings.
At the end of April, Standard & Poor's, one of the world's big three
credit rating agencies, downgraded our Nation's future financial
outlook from ``stable'' to ``negative.'' S&P said our country has
``very large budget deficits and rising government indebtedness--and
the path to addressing these is not clear.''
Furthermore, just last week another credit rating agency, Moody's--if
we needed another reminder--warned that our failure to reduce our
growing deficit could prompt them to downgrade their outlook on our AAA
rating to negative. Without a ``credible agreement on substantial
deficit reduction''--this is Moody's talking--this could happen as soon
as next month. This would have a devastating impact on our already
struggling economy.
Reducing our Nation's debt will require us to work together to craft
a serious plan. President Obama's proposal to balance budgets in part
by raising taxes on businesses, in my view, would only make our
economic circumstances worse.
Washington does not have a revenue problem; it has a spending
problem. It is time for us to work together and pass a responsible
budget to reduce our deficit this year, next year, and far into the
future. The plan should include significant spending reductions, a
balanced budget amendment to restrict Washington's future ability to
borrow money that would put us right back in the mess we are in today,
and should address our long-term unfunded mandates.
As John Adams once quipped: ``Facts are stubborn.'' And the facts
tell us that Washington must change direction if we are to grow our
economy and put people back to work. The failed economy we are
experiencing and the financial collapse around the corner is the most
expected economic crisis in our lifetime. We know what is going to
happen if we do not act, and it would be immoral for us to look the
other way or to kick the can down the road because the politics of
these issues are too difficult to deal with.
Americans deserve leadership here in our Nation's Capital to confront
these challenges and not to push them off to the next generation of
Americans. If we do so, if we confront these issues correctly in a
responsible way, businesses will succeed, profits will be made,
employees will be hired, and Americans will again be able to live and
pursue the American dream.
Mr. President, I yield the floor.
Mr. ISAKSON. Mr. President, I ask unanimous consent to speak in
morning business for up to 10 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
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