Free Enterprise and the 20 Million Jobs Challenge: An Agenda for Economic Recovery, Remarks

Remarks by
THOMAS J. DONOHUE
President and CEO, U.S. Chamber of Commerce

Business Council of Alabama Annual Meeting
Birmingham, Alabama

December 4, 2009

As Prepared for Delivery

Introduction

Thank you very much, Phil, and good afternoon everyone.

Both Phil and Donna have provided outstanding leadership to their respective organizations. You are lucky to have them.

Let me begin by echoing Governor Riley in congratulating everyone on the partnership between the Business Council and the Chamber of Commerce Association of Alabama.

This partnership boasts 65,000 companies representing a million employees.

It will help ensure that the Alabama business community speaks with a united voice on the major issues.

It means you will successfully leverage efforts on grassroots lobbying, legislation, and supporting pro-business candidates.

And it means you will be an even more powerful force for economic growth and job creation in the state of Alabama.

Everyone in this room—local and metro chamber executives, board members, business leaders, and U.S. Chamber regional manager Debbie Carrothers—all deserve credit for making this happen.

But two people in particular standout.

I've known Billy Canary for a long time. I stole him from the White House in 1991 to work for me at American Trucking Associations. He eventually ended up running the place.

You couldn't ask for a better leader. He's smart, tenacious, and knows politics like the back of his hand.

His greatest strength is forging relationships—few people do it better or with better results. He knows how to craft win-win deals and he always keeps his word.

Ralph Stacy brings to the table a highly professional organization, years of valuable experience, and a passionate commitment to the success of the chamber movement across this state.

This partnership—and the unity of vision, purpose, and resources it brings—couldn't come at a better time.

The national economy is still on the ropes. States are struggling to balance budgets while maintaining services. Congress has more on its plate than at any time in recent memory.

The stakes couldn't be higher for business or the country.

In times like these, the business community must heed Benjamin Franklin's advice: We either all hang together, or we all hang separately.

The Jobs Challenge

What must we unite around? One urgent priority stands head and shoulders above the rest—creating jobs.

America will need 20 million jobs in the next decade to replace those lost during the recession and to keep up with a growing population.

Alabama will need to create 286,000 of them.

The $64,000 question is—how do we do it? And, who will do it?

It won't be the government. It can help blunt the sharp edges of a recession, but it can't create the jobs needed for long-term, sustainable growth. Only the private sector can do that.

However, the government can help by setting the right policies.

The U.S. Chamber has developed a comprehensive roadmap on how to create the jobs we need for a vibrant economy and a high standard of living.

We sent our ideas to the White House before it held its Jobs Summit yesterday.

Here's our plan.

Doubling U.S. Exports

It starts by doubling U.S. exports in five years … and then doubling them again.

Don't forget: 95% of the world's customers live outside U.S. borders.

What many don't realize is that America's markets are among the most open in the world, while other countries hide behind protectionist barriers.

The best way to lower and eliminate those barriers—and create opportunities for American businesses—is through free trade agreements.

We have three excellent agreements being held hostage by special interests in Congress today—Korea, Colombia, and Panama.

These countries are important friends and allies of the United States. Their markets represent huge opportunities for U.S. exporters large and small. In fact, 97% of U.S. exporters are small businesses.

We need to get on with it. These countries will not wait forever. Their patience is wearing thin as we continually move the goalposts for ratification.

In the meantime, they are negotiating deals with our competitors that will give businesses in those countries an advantage over ours.

How does delay make any sense, especially when we desperately need the good-paying jobs generated by exports? It doesn't.

Recently, the Chamber issued a study which shows that another half-million Americans could soon lose their jobs if we fail to move forward on these trade deals—and, if we continue to insist upon wrong-headed ideas like "Buy American."

On the other hand, if we approve the Korea agreement, for example, we could boost exports by $10 billion a year and create tens of thousands of jobs. It's a no-brainer!

And while we insist that foreign markets open themselves up to American goods and services, we must also insist that all agreements are reasonably and fairly enforced—by both parties.

Few states understand the importance of global engagement better than Alabama.

Governor Riley, state agencies, and businesses from all across Alabama have been model partners with TradeRoots, the U.S. Chamber's national trade education program.

TradeRoots is the nation's only permanent program to teach Americans from all walks of life about the importance of trade. It also helps small businesses seize export opportunities.

Working together, we have developed the Export Alabama Trade Alliance, which unites key local, regional, and state bodies to promote trade and exports.

And it's working. From 2004-2007, merchandise exports from Alabama rose almost 60%, beating the national average by 18%.

Today Alabama exports more than $14 billion a year in manufactured goods.

Not only is Alabama exporting more overseas, it is attracting more foreign investment—thanks to smart public policies like low taxes and reasonable regulations.

That's why companies like ThyssenKrupp, EADS, and Hyundai [HUND-DAY] have chosen to set up shop in your great state.

Thanks to his outstanding leadership, Governor Riley became the first recipient of the TradeRoots International Leadership Award earlier this year.

Other states will need to follow Alabama's lead if we are to meet our goal of doubling exports in five years.

We can—and must—do it.

Infrastructure Investment

Another major part of our jobs-creating program is to help rebuild and modernize the physical infrastructure of our country.

We can do that by expanding both private and public sector investments in our transportation, energy, water, and broadband systems.

The private sector is prepared to pour billions of dollars into new infrastructure projects if government would clear away many of the costly, time-consuming regulatory, legal, and financial hurdles.

When it comes to public investment, Congress and the White House must not kick the can down the road any further on reauthorizing major highway and transit legislation.

Infrastructure investment is not an elective activity for Congress—it's a fundamental responsibility.

We've known since 2005 that the current highway bill was going to expire last September.

We cannot put it off any longer—not just because it will be a huge jobs creator, but because poor road conditions are a safety hazard, the cost will rise the longer we wait, and planners need certainty when executing complex projects.

And, we simply can't let the system deteriorate any further.

The latest report by the American Society of Civil Engineers gives our overall system
a "D." Roads get a "D-." This is a disgrace and completely unacceptable.

This is primarily a problem of political will … and the Chamber is here to make sure members of Congress summon the courage to do the right thing, and do it quickly.

Healthy Capital Markets

One of the largest complaints you hear from small businesses is the current lack of credit.

If they don't have credit, how do they make the investments needed to create jobs and help get the economy moving again?

For generations, America has been better than any other country at connecting an investor and a person with a new idea.

We must strengthen this system with intelligent regulations while avoiding harmful new rules that will hinder innovation and job creation.

We must also recognize that current policy discussions in Washington are adding to the uncertainty that discourages financial institutions from lending and businesses from investing.

Capital is the seed corn of every small business and at the heart of the creation of every single job. We need to strengthen our capital markets and make them the most competitive, transparent, attractive, and fair in the world.

One thing that would help accomplish that would be too restrain excessive spending.

This administration's budget would increase the cumulative federal deficit by nearly $9.3 trillion over the next 10 years. By 2019, the level of debt held by the public would reach an astronomical 82% of GDP.

Where will it stop? When will it end?

Projected budget deficits are clearly unsustainable, and could drain capital markets of funds that are badly needed for innovation, new business start-ups, and other job-creating investments.

Taxes, Regulations, and Lawsuits

Alabama has learned a valuable lesson that folks in Washington sometimes don't grasp—if you want businesses to create jobs, opportunities, and prosperity, then politicians need to help create the right environment.

This is especially when it comes to taxes, regulations, and lawsuits.

Under current plans, American entrepreneurs will see their taxes rise well beyond today's high rates.

Unless Congress acts, a wide range of further automatic tax hikes will take place next year.

Can anyone think of worst time to increase taxes?

In fact, if we let the 2001 and 2003 tax cuts expire, it will result in the largest tax increase in U.S. history by several orders of magnitude.

Instead, we must begin retooling the tax code to reward achievement, encourage investment, and compete globally.

Congress is also weighing a slew of burdensome new rules, regulations, and mandates. And they hardly ever pass up an opportunity to help the trial bar create new lawsuits.

When you add it all up, the combined burden of such requirements could not only damage new job creation, but also jeopardize existing jobs.

Education and Workforce

But creating new jobs is not enough. We must have adequately trained workers to fill them.

Nearly a third of American students fail to graduate from high school, and those who do are often ill-prepared for college or jobs in the modern economy.

It's time to refocus on the basics of learning, while also reforming our training programs so that they prepare workers for jobs that are actually going to exist.

We must change the way we train our teachers, strengthen standards and accountability in the classroom, and encourage a spirit of innovation throughout our education system.

We've seen some encouraging signs from the administration on this issue. It's "Race to the Top" grant program could be a major catalyst for education innovation across the country and we strongly support it.

Other Agenda Items

That's our agenda for creating 20 million jobs in the next decade.

On top of that, there are some other things we should do if they can be done right.

For example, the U.S. Chamber is fighting for a good health care bill … one that expands affordable coverage, truly reduces costs, reforms our broken medical malpractice system, and preserves and strengthens the employer-provided system.

But we don't like what we're seeing from Congress. For example, in the Senate they say their bill would actually reduce the deficit.

If you believe that, I've got some land across the way in Florida I'd like to sell you!

We're fighting for a sensible energy bill and an international climate change agreement that will reduce global emissions; provide an abundant supply of affordable, diverse, and clean energy; and spur the development and deployment of technology—without bankrupting our economy.

Unfortunately, the House hasn't passed anything like that, and the Senate isn't likely to, either.

The Waxman-Markey bill would create a massive federal bureaucracy with nearly 400 new regulations and more than 1,000 new mandates.

It would drive up energy costs, reduce GDP, and do little to ensure that renewable or alternative energy sources would be brought online quickly enough to replace the fossil-based energy it restricts.

It's a bad bill and we were right to oppose it.

We're advocating for reasonable, clear, and common sense reforms to financial regulations … regulations that provide investor protections, untangle the thicket of overlapping agencies, reduce the multiple layers of regulation, and strengthen our capital markets.

We're also fighting against some things …

We're opposing any legislation that will delay economic recovery …

We're fighting big labor's agenda to turn back the clock in this country 50 years, starting with card check …

After we thwarted their bill in the Senate, the unions came back knocking on doors with a compromise.

They said, OK, maybe we won't end the secret ballot in unionization votes, but let's have binding arbitration where a government arbitrator from Washington could come into your company and ram a first contract down your throat.

Our answer to that is not just "no," but "hell no!"

And we're opposing unprecedented levels of government spending, taxes, debts, and regulations.

I could give a separate speech on each of these topics, but I won't. I'll look forward to any questions you might have about them during the discussion period.

Free Enterprise Makes It Possible

There is one thing we absolutely must do if we hope to revitalize our economy, create jobs, provide opportunities to our citizens, and remain a global leader … Commit ourselves to a free enterprise system.

A system based on freedom of choice and individual initiative, with open trade, free capital markets, and reasonable levels of taxation and regulation.

Only a strong private sector powered by free enterprise can create the 20 million jobs we need.

That's why the Chamber has launched a positive, forward looking campaign to defend, protect, and advance the free enterprise system.

We must create a political imperative where any time an elected official makes a decision or casts a vote, he or she stops to weigh its impact on the economic system so vital to our prosperity.

Free enterprise built the strongest economy and the greatest country the world has ever known. It can lead us to an even brighter future.

We hope we can count on your continued support as we move this campaign forward in an effort to win the hearts of minds of our fellow citizens.

Conclusion

The compelling need for economic recovery is why free enterprise is so important, and why your new partnership is so important.

The business community must stand together on the big issues.

Your partnership will make you an even more powerful force in Alabama. You'll soon find that when you are at the top of the flagpole there is no one else to shoot at.

The Chamber learned this lesson recently when we started pushing back against the forces who thought that they had bought themselves a government.

Which is why it's more important than ever that we stick together. That we fight for what we believe in. That we do so with high integrity. That we confront our adversaries with facts and good manners and never back down from what we know is right.

We'll never claim that free enterprise is a perfect system, just the best one ever devised by man. It has helped lift hundreds of millions out of poverty around the world and holds the key to our future prosperity.

It is worth keeping. It is worth fighting for.

It deserves our greatest passion, our highest level of commitment, and all of the energy we can muster.

I'm optimistic about America's future. I can't help it, I'm Irish.

I'm optimistic we'll emerge from this recession stronger than ever …

I'm optimistic that we can and will tackle the big challenges before us just as Americans of past generations tackled theirs …

I'm optimistic that given a fair chance an individual with an idea, a lot of hard work, and a little luck can achieve the American Dream … and if he or she tries and fails, they can get right back up and try again.

I'm even optimistic that the Crimson Tide will defeat the Gators tomorrow in the SEC Championship game—Roll Tide!

All of these things are possible if we preserve the free enterprise system and if we stick together.

Thank you very much.

# # #