U.S. Chamber Proposes Recovery and Jobs Plan in Annual State of American Business Report

Donohue: "We must make absolutely sure that we don't smother the spirit of enterprise or stamp out the risk-taking that powers the American dream"

WASHINGTON, DC—Unveiling the U.S. Chamber of Commerce's annual State of American Business report to the news media and a web-based audience of thousands of businesses, Chamber President and CEO Thomas J. Donohue today called for swift and significant action to jump start the troubled U.S. economy.

Anticipating rising unemployment and steep declines in the nation's GDP through the middle of 2009, Donohue declared, "We have two choices. We can bemoan our fate and keep telling each other how bad things are. Or we can get right down to the business of reviving the economy, restoring growth and job creation, and putting Americans back to work."

Donohue outlined four strategies for addressing current economic difficulties, including: ensuring that public and private sector safety nets are sufficient to see Americans through difficult times; quickly passing a significant economic stimulus package that will boost liquidity, consumption, and investment; avoiding trade isolationism and tax increases; and seizing the opportunity to enact broader reforms to bolster U.S. competitiveness.

The Chamber President and CEO urged Congress and the new Administration to "take great care" in all the policies they consider. "If a proposal would add to the burdens already facing employers – if it would pile on costs, regulations or lawsuits – then it should be delayed, changed or rejected. Jobs and recovery must come first in 2009"

Donohue also emphasized the critical role that business will play in the recovery. "If we want recovery and long-lasting prosperity, then attention and care must also be paid to the 25 million small, medium and large businesses that actually create the nation's wealth."

While urging passage of a substantial stimulus program, Donohue warned against a large, permanent expansion of government. "The nation must avoid a big and permanent expansion of government payrolls and powers. We don't need and can't afford another New Deal. The 2008 election was all about change. It's not change if you go backwards to the policies and approaches of the 1930s."

Donohue also warned of the dangers of isolationism and tax increases. He asserted that now is the best time to move forward with a Doha deal and expand global engagement and investment, while also boosting export assistance for small companies and strengthening Trade Adjustment Assistance. He also called for a renewed commitment to school reform, increased production of all forms of domestic energy, sensible changes to the regulations governing capital markets, and a major public and private sector initiative to rebuild America's infrastructure.

Donohue said the Chamber "sees many opportunities to work constructively with the new administration and Congress," but warned that "we will not hesitate to vigorously fight wrong-headed proposals when necessary." Specifically, he mentioned union-backed measures such as card check, trial bar efforts to expand lawsuit abuse, and unworkable regulatory approaches to climate change.

"We are concerned about the difficulties facing the country, but we are not fearful," Donohue said in closing. "America has always been a can-do nation with an unmatched capacity to tackle big problems. The Chamber intends to help rekindle this can-do spirit in 2009 and get the country moving again."

"We must make absolutely sure that we don't smother the spirit of enterprise or stamp out the risk-taking that powers the American dream," he concluded.

The State of American Business Report and Mr. Donohue's remarks can be viewed at: www.uschamber.com/sab

The U.S. Chamber is the world's largest business federation representing more than
3 million businesses and organizations of every size, sector, and region.

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