Transcript of Speaker of the House John
Boener
Liberating America’s Economy
Washington, Sep 15 -
In remarks to the Economic Club of Washington, DC today,
House Speaker John Boehner (R-OH) called for bipartisan action on “Liberating
America’s Economy,” saying private-sector job creators have been “slammed by
uncertainty from the constant threat of new taxes, out-of-control spending, and
unnecessary regulation from a government that is always micromanaging, meddling,
and manipulating.” Following are Speaker Boehner’s remarks as prepared for
delivery:
Remarks by House
Speaker John Boehner (R-OH)
Economic Club of Washington, DC
As
Prepared for Delivery
September
15, 2011
“President
Rubenstein, members of the board, honored guests -- thank you for the
opportunity to be here with you today to talk about jobs and the state of our
nation’s economy.
“We all know
the economy is stalled, and it’s been stalled. And it’s not because the
American people have lost their way. It’s because their government has let
them down.
“Last week the
president put forth a new set of proposals. The House will consider them,
as the American people expect. Some of the president’s proposals offer
opportunities for common ground.
“But let’s be
honest with ourselves. The president’s proposals are a poor substitute for
the pro-growth policies that are needed to remove barriers to job creation in
America...the policies that are needed to put America back to work.
“If we want job
growth, we need to recognize who really creates jobs in America. It’s the
private-sector.
“This building
is named in memory of President Ronald Reagan, who recognized that private
sector job creators are the heart of our economy. They always have been.
“That was the
America I was raised in. My father and grandfather were small businessmen.
They ran a tavern in Cincinnati that my grandpa started in the 1930s. I
worked in that tavern growing up.
“I ran a small
business myself. I know what it takes to meet a payroll, hire workers, and
create jobs in the private sector.
“There’s a
fundamental misunderstanding of the economy that leads to a lot of bad decisions
in Washington, D.C.
“The reality is
that employers will hire if they have the right incentives, but the incentives
have to outweigh the costs. Businesses are not going to hire someone for a
$4000 tax credit if government mandates impose long-term costs on them that
significantly exceed the temporary credit. In recent years, such mandates
have been overwhelming.
“Private-sector
job creators of all sizes have been pummeled by decisions made in Washington.
“They’ve been
slammed by uncertainty from the constant threat of new taxes, out-of-control
spending, and unnecessary regulation from a government that is always
micromanaging, meddling, and manipulating.
“They’ve been
hurt by a government that offers short-term gimmicks rather than fundamental
reforms that will encourage long-term economic growth.
“They’ve been
hampered by a government that offers confusion to entrepreneurs and job creators
when there needs to be clarity.
“They’ve been
undercut by a government that favors crony capitalism and businesses deemed ‘too
big to fail,’ over the small banks and small businesses that make our economy
go.
“They’ve been
antagonized by a government that favors bureaucrats over market-based solutions.
“They’ve been
demoralized by a government that causes despair when we need it to provide
reassurance and inspire confidence.
“My worry is
that even after all of this, much of the talk in Washington right now is
basically about more of the same. More initiatives that seem to have more
to do with the next election than the next generation. . .initiatives that seem
to be more about micromanaging economic decisions than liberating them.
“I think the
American people are worried about this too.
“I can tell you
the American people -- private-sector job creators in particular --- are rattled
by what they’ve seen out of this town over the last few years.
“My worry is
that for American job creators, all the uncertainty is turning to fear that this
toxic environment for job creation is a permanent state.
“Job creators
in America are essentially on strike.
“The problem is
not confusion about the policies. . .the problem is the policies.
“The anger many
Americans have been feeling in recent years is beginning to turn into fear. .
.fear of our future.
“That bothers
me, and it should bother all of us.
“America is a
land of opportunity. Always has been.
“Our economy
has always been built on opportunity. . .on entrepreneurs, innovators and
risk-takers willing to take a chance -- because they’re confident if they work
hard, they can succeed.
“Over the past
few years, government has made people less confident -- not more confident --
that they can succeed.
“More and more
Americans are realizing this, and they’re speaking out about it.
“I’ve spent the
past 4-5 weeks traveling through my district and across this country, listening
to the people outside of Washington who are the key to making our economy work.
“My message to
Washington today on their behalf: this isn’t that hard. We need to
liberate our economy from the shackles of Washington. Let our economy
grow!
“We need to
trust in the good judgment of the American people.
“The instinct
in government, always, is to get bigger, more intrusive, more meddlesome.
And that instinct is directly at odds with the things that make the American
economy move.
“Job creation
in America is facing what I would call a triple threat from government.
The first aspect of this threat is excessive regulation.
“During the
Joint Session of Congress last week, I hosted about a dozen job creators from
the private sector in as my guests in the House gallery -- all of them with a
common story: they’re trying to help create more American jobs, but the
government is getting in their way.
“We all know
some regulations are needed. We have a responsibility under the
Constitution to regulate interstate commerce.
“There are
reasonable regulations that protect our children and help keep our environment
clean.
“And then there
are excessive regulations that unnecessarily increase costs for consumers and
small businesses.
“Those
excessive regulations are making it harder for our economy to create jobs.
“Over the last
couple of months we’ve seen two vivid illustrations.
“Last month
federal agents raided the Gibson Guitar factories in Tennessee.
“Gibson is a
well-respected American company that employs thousands of people. The
company’s costs as a result of the raid? An estimated $2-3 million.
Why? Because Gibson bought wood overseas to make guitars in America.
Seriously.
“The other
example is in South Carolina, where the Boeing company recently completed a
plant that will create thousands of new full-time jobs for American workers --
only to be sued by a federal agency that wants to shut it down.
“Let make sure
I have this straight: under current rules, American companies are free to create
jobs in China, but they aren’t free to create them in South Carolina?
“At this
moment, the Executive Branch has 219 new rules in the works that will cost our
economy at least $100 million.
“That means
under the current Washington agenda, our economy is poised to take a hit from
the government of at least $100 million -- 219 times.
“I think it’s
reasonable to ask: is it wise to be doing all of this right now?
“The current
regulatory burden coming out of Washington far exceeds the federal government’s
constitutional mandate. And it’s hurting job creation in our country at a
time when we can’t afford it.
“Government’s
threat to job creation has two other components.
“One is the
current tax code, which is discourages investment and rewards special interests.
“It strikes me
as odd that at a time when it’s clear that the tax code needs to be
fundamentally reformed, the first instinct out of Washington is to come up with
a host of new tax credits that make the tax code more complex.
“The final
aspect of the threat is the spending binge in Washington. It has created a
massive debt crisis that poses a direct threat to our country’s ability to
create jobs and prosper.
“There are some
people in this town who still deny this. . .who still deny that the debt is a
threat to jobs.
“But if you
talk to anybody outside of Washington who has to meet a payroll, they’ll tell
you that out-of-control spending in Washington is one of the things that
concerns them the most about our future.
“In New York
City back in May, I warned that if we don’t take action soon, the markets will
do it for us.
“Last month,
the markets took action, in the form of a downgrade and the possibility of
future downgrades that caused the markets to tumble.
“It’s going to
keep happening, until we act.
“The
responsibility for fixing this toxic environment for job creation is a
bipartisan one.
“The situation
was created by Washington’s inability to let our economy work.
“It was created
by government intrusion and micromanagement.
“We have a
responsibility to work together in the coming months to remove these barriers
and liberate our economy.
“This is what
the American people are demanding of us.
“Everything we
do in the weeks and months to come needs to start with asking: are we addressing
these problems? Or are we making them worse?
“The Budget
Control Act of 2011, signed into law last month, establishes a Joint Select
Committee of Congress for the purpose of identifying $1.5 trillion in deficit
reduction.
“Many have
expressed doubts about the Joint Committee’s chances of success.
“The skepticism
is understandable. A Joint Select Committee is, after all, no substitute
for a president who continues to control most of the arms of government.
“But I think
the Joint Select Committee has a huge opportunity.
“It has a
chance to lay the foundation for economic growth, by dealing with some of the
obstacles that are standing in the way.
“The Joint
Committee’s mission is deficit reduction, and that has everything to do with
jobs.
“As the
co-chairman of the Joint Committee, Jeb Hensarling, said last week at the
Committee’s first meeting:
“ ‘Our debt
threatens our jobs. . .Speak to any Fortune 500 CEO or small business person.
It is clear that our debt hangs like the Sword of Damocles over their hiring
decisions. . .It should be obvious that deficit reduction and a path to fiscal
sustainability are themselves a jobs program.’
“The Joint
Select Committee can tackle tax reform, and it should.
“It’s probably
not realistic to think the Joint Committee could rewrite the tax code by
November 23. But it can certainly lay the groundwork by then for tax
reform in the future that will enhance the environment for economic growth.
“The Committee
can develop principles for broad-based tax reform that will lower rates for
individuals and corporations while closing deductions, credits, and special
carveouts in our tax code. And I hope it will.
“Yes, tax
reform should include closing loopholes. Not for purposes of bringing more
money to the government. But because it’s the right thing to do.
“And if we’re
going to tackle tax reform, we should do it all.
“Making
short-term fixes in exchange for long-term flawed policy is not tax reform.
“Tax reform
should deal with the whole tax code, both the personal side and the corporate
side, and it should result in a code that is simpler and fairer to everyone.
“Tax increases,
however, are not a viable option for the Joint Committee.
“It’s a very
simple equation. Tax increases destroy jobs. And the Joint Committee
is a jobs committee. Its mission is to reduce the deficit that is
threatening job creation in our country.
“We should not
make its task harder by asking it to do things that will make the environment
for job creation in America even worse.
“I hope the
president will meet this standard when he puts forth his recommendations for the
Joint Committee next week.
“When it comes
to producing savings to reach its $1.5 trillion deficit reduction target, the
Joint Select Committee has only one option: spending cuts and entitlement
reform.
“The Joint
Committee can achieve real deficit reduction by reforming entitlements and
taking real action to preserve and strengthen Social Security, Medicare, and
Medicaid.
“There is a
myth that spending reforms aren’t ‘real’ unless they happen this year.
“That myth is
built on a healthy skepticism that spending cuts made today are going to be
implemented tomorrow.
“But it is a
myth nonetheless, and we need to make sure it doesn’t stop us from doing what
needs to be done.
“Most of the
entitlement reforms in the House GOP budget are phased in over time. And
that’s the way the Joint Committee should do them as well.
“Modest changes
in spending programs today can have large effects tomorrow.
“Gimmicks,
however, are unacceptable. As I told the president’s economic team during
the debt limit negotiations: we’re just not doing that anymore.
“Deficit
reduction shouldn’t just be about quantity; it should be about quality.
“A billion
dollars in imaginary savings from war spending that was never going to happen is
not the same as a billion dollars in savings that strengthens our entitlement
programs.
“There are
plenty of skeptics about the Joint Select Committee’s ability to accomplish its
mission, and that’s to be expected.
“There are
always skeptics.
“There were
skeptics last spring when I said in New York that we should have spending cuts
larger than any debt limit hike we gave the president.
“But it
happened.
“And this can
happen, too.
“The Joint
Committee can succeed, and it must succeed. And with success, it can help
to lay the foundation for economic growth and job creation in America.
“If the Joint
Committee does its work correctly – addressing the structural problems in our
entitlement programs that have put us in danger of more job-destroying
downgrades, and setting the stage for fundamental tax reform that will help to
support private investment – it will have begun to remove some of the biggest
barriers to job creation that exist in our country today.
“As the Joint
Committee does its work, there is a lot of other work in Washington that also
needs to be done.
“As I mentioned
earlier, there are 219 major regulatory actions in the works by the federal
bureaucracy right now. We know seven of them will each have an economic
impact of $1 billion or more.
“The biggest is
an EPA rule that could have an impact of as much as $90 billion.
“The president
acted wisely by halting the implementation of this rule. I would urge the
White House to build on it by disclosing to the American people the cost
estimates for the remaining 212 ‘economically significant’ rules it has planned.
“I would also
urge the president to call a Cabinet meeting, and tell every member of his
Cabinet: ‘Until further notice, I don’t want anything that gets in the way of
private-sector job creation. And I want you to report back to me in a
month with how you’ve done.’
“The members of
the president’s Cabinet are not doing their jobs if they aren’t constantly
focused on removing impediments to job growth.
“If they’re not
focused on that, they should be fired.
“In the House,
Majority Leader Cantor has put together a fall legislative schedule that
reflects the concerns we’ve heard from job creators across America about
unnecessary federal regulations that are hampering job growth.
“Earlier I
mentioned the situation in South Carolina with Boeing.
“Today the
House is working on a measure that will prevent the federal government from
meddling in that situation, and similar ones.
“The Senate
needs to follow the House in passing this bill, and we need to send it to the
president’s desk.
“The NRLB bill
is one of a whole series of measures we’re working on this fall to reduce the
burden of excessive regulation on job creators.
“We’ll pass the
REINS Act, which would require congressional review for any new regulation that
has a major impact on the economy. House committees have identified dozens
of job-crushing regulations that are keeping our economy from producing jobs.
“We’ll repeal
the ‘3 percent withholding rule,’ which serves as an effective tax increase on
those who do business with the government.
“We’ll stop
excessive federal regulations that inhibit jobs in areas as varied as cement and
farm dust.
“We’ll work on
other reforms such as removing barriers to increased domestic energy production
and removing barriers to trade, many of which are in the House GOP jobs agenda
at Jobs.GOP.gov.
“The United
States Senate needs to act, too. The Senate cannot continue to sit idle on
jobs and the budget.
“The House has
passed an array of bills already this year to remove barriers to job creation,
and those bills are piling up in the Senate.
“The Senate
hasn’t produced a budget, either. It must.
“There are a
few other things I want to mention that we can do in the weeks and months ahead
to free our economy and bolster confidence among our job creators.
“One is very
simple. Both parties can boost confidence and reassure job creators by
being clear: there will be no shutdown of the federal government, and we aren’t
willing to default on our debt. The United States will meet its
obligations to its citizens and to its creditors.
“In Congress,
I’ve been clear about these goals since the day I was elected Speaker. And
we’ve been true to our word.
“Another thing
we can do is in the area of transportation and infrastructure.
“I’m not
opposed to responsible spending to repair and improve infrastructure. But
if we want to do it in a way that truly supports long-term economic growth and
job creation, let’s link the next highway bill to an expansion of American-made
energy production.
“Removing some
of the unnecessary government barriers that prevent our country from utilizing
its vast energy resources could create millions of new jobs.
“There’s a
natural link between the two: as we develop new sources of American energy,
we’re going to need modern infrastructure to bring that energy to the market.
“We can also
boost confidence and reassure job creators by sending a balanced budget
amendment to the states.
“One of the
most important things we did in the Budget Control Act last month -- in addition
to requiring a vote in both houses of Congress this fall on a balanced budget
amendment -- was establish caps on future spending.
“These caps are
designed to hold back the growth of government while our economy expands and
creates jobs.
“To ensure
those spending caps are set in stone, we should ratify a balanced budget
amendment.
“If the
president truly wants to make a difference and change the dynamic in Washington,
he should announce his support for a balanced budget amendment and call on the
Congress to send one to the states without delay.
“And lastly, if
we want to create a better environment for job creation, politicians of all
stripes can leave the ‘my way or the highway’ philosophy behind.
“The
all-or-nothing approach is not a workable mindset if we’re serious about getting
our economy on its feet again.
“Our economy is
facing a broad-based, systemic crisis.
“As such, it
will require everyone coming to the table with their best ideas first and
leaving politics at the door, with the courage to listen to each other’s
critiques and questions.
“It means
ending the name-calling, the yelling, and the questioning of others’ motives.
“Leadership is
about ending that nonsense, buckling down, and getting to work.
“Thomas Edison
once said that ‘opportunity is missed by most people because it is dressed in
overalls and looks like work.’
“We have an
opportunity in front of us. The trick is to recognize it, and believe in
it, and act on it.
“We know the
challenges we face as a nation, and we have a chance to confront them.
“If we put
election-year politics aside this year and focus on our work, we’ll leave our
country in a better place.
“Getting it
done will require a serious effort by both parties.
“There are some
in both parties who would rather do nothing.
“They’d prefer
to sit this one out, waiting to be dealt a better hand down the road, after the
next election.
“That’s not
what I was elected to do.
“This is the
hand we’ve been dealt.
“Instead of
ducking from the challenge, we should rise to the occasion, and liberate our
economy from the shackles government has placed on it.
“I’m ready.
And for the sake of our country, and our economy – I hope all of us are ready.
“Thank you for
listening. I look forward to your questions.”