Entries in Growth Policies (5)
Dec. 22, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement responding to the Bureau of Economic Analysis' downward revision of economic growth:
"First at 2.5 percent, then 2 percent, and now revised downward to an anemic 1.8 percent, the economy in the third quarter has once again fallen way short of the government's rosy projections. The Bureau initially exaggerated the actual growth number by 38 percent. This means revenues to the Treasury will again fall short of expectations, blowing an even larger hole in the deficit than projected. This reveals once again that the only way out of our mounting debt problems are dramatic spending cuts, because the growth everyone was hoping for is simply not there.
"The pot of gold Obama promised the American people at the end of the rainbow has turned out to be filled with lead. This is nothing more than Obama's economic humbug, just in time for the holidays."
Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at email@example.com to arrange an interview with ALG President Bill Wilson.
Americans for Limited Government is a non-partisan, nationwide network committed to advancing free market reforms, private property rights and core American liberties. For more information on ALG please call us at 703-383-0880 or visit our website at www.GetLiberty.org.
AUSTIN -This week Gov. Rick Perry unveiled his Cut, Balance and Grow economic plan to help get America working again. The video, "Rick Perry: Cut, Balance and Grow," details the plan, which provides taxpayers with the choice of a simple, 20 percent flat tax rate, cuts federal spending, ends earmarks and includes a federal Balanced Budget Amendment.
To view the video, please visit http://www.rickperry.org/news/video-rick-perry-announces-his-plan-to-cut-balance-and-grow/.
Gov. Rick Perry is the only candidate in this campaign that has a proven record of job creation. During Gov. Perry's tenure, Texas has added more than one million net new jobs, while the rest of the nation has lost nearly 2.5 million jobs.
Testifies before Joint Economic Committee about ways to strengthen U.S. manufacturing sector
WASHINGTON – Congressman Charles F. Bass (NH-02) testified before the Joint Economic Committee today about the important role that manufacturing plays in New Hampshire’s economy and why excessive and overly burdensome government regulations inhibit growth in this vital job sector.
“With our diverse economy, low tax rate, and high-skilled workforce, New Hampshire is leading the way in innovation and production. But this success is threatened by overly burdensome federal regulations, fees, and taxes that inhibit growth and expansion among our state and nation’s top job creators: small businesses. For the U.S. manufacturing sector to remain competitive in the global marketplace, we must make it easier for businesses to create jobs, rather than allowing the federal government to pick winners and losers in the economy.”
Bass’ official opening statement, as prepared for the record, follows:
“Good morning. Thank you for the opportunity to testify before the Committee today.
“New Hampshire is an excellent example of a state with a diverse economy and manufacturing sector. We have low unemployment, a high-skilled workforce, and a lower tax rate than most states that contributes to the success of our state’s economy. I hope that this New Hampshire perspective, as well as my prior experience in the business world, in which I helped to expand several small businesses in New Hampshire including a company that manufactures architectural products, will be useful.
“In New Hampshire, manufacturing makes an important contribution to our state’s economy. Whether it is BAE Systems manufacturing advanced products that protect our troops, GT Solar manufacturing photovoltaic systems, Smiths Medical manufacturing medical devices for the hospital, emergency, home and specialist environments, Hitchiner manufacturing complete-to-print, high-volume, complex thin-wall investment castings, or Timken manufacturing anti-friction bearings, these activities are critical to our state’s economy and employment.
“New Hampshire manufacturers account for over 11 percent of the total output of the state and employ 10.5 percent of the workforce, approximately 31,200 jobs. Furthermore, manufacturing compensation is 67 percent higher than the average annual compensation of other nonfarm jobs in the state. In 2009, total output for manufacturing was $6.6 billion, with the computer and electronic sector leading with $1.9 billion.
“As in New Hampshire, U.S. manufacturing still remains a success story today. While we need to continue to ensure its global competitiveness, it is not in need of micromanagement from government. We have the most productive manufacturing labor force in the world. Even though manufacturing as a percent of gross domestic product has been steadily falling and payroll employment as a share of total U.S. employment has been declining over the past 60 years, labor productivity has grown to historic highs.
“By comparison to other countries, such as China, our closest contender, the productivity of Chinese manufacturing workers is only 12 percent of its American counterpart – meaning that 11 to 12 million U.S. manufacturing workers produce nearly the same amount of product as 100 million Chinese workers, according to the Manufacturers Alliance.
“While there has been much legitimate concern about the outsourcing of jobs, the counterbalance of in-sourcing enables foreign direct investments to create wealth, employment, and exports for the United States. In fact, according to the National Association of Manufacturers, one in 12 U.S. manufacturing jobs is currently employed by a foreign-owned business and, according to the office of the United States Trade Representative, nearly one-quarter (23.3 percent) of all manufacturing workers in New Hampshire depend on exports for their jobs.
“The manufacturing changes we have witnessed over the past several decades have resulted not from an unfair playing field with our trading partners, but from the massive transformation resulting from innovation and technological advancement. This trend in the United States is parallel to the changes we’ve seen in the global manufacturing industry as well when measured as a percent of global gross domestic product.
“The United States is manufacturing more sophisticated goods with hundreds of parts that come from dozens of countries throughout the world. Manufacturing more technologically-advanced and innovative goods requires more highly-skilled labor, and according to the Heritage Foundation, there has been a 44 percent increase in the number of workers employed in the U.S. manufacturing sector with an advanced degree.
“However, I’m deeply concerned about the current regulatory burden on U.S. businesses, and considering that manufacturing comprises 57 percent of total U.S. exports, this puts us at a serious disadvantage to competition abroad. According to the National Association of Manufacturers, costs resulting from high corporate taxes, increasing health care and pension costs, federal regulations, and tort litigation have resulted in overall cost increases for U.S. manufacturers of nearly 18 percent over major trading partners.
“On the other side of the equation, regulatory costs that taxpayers pay are increasing too. According to a study out of the Washington University’s Weidenbaum Center, the federal regulatory budget is expected to grow 4.3 percent this year and three percent next year.
“As our economy continues to recover from this recession, we must give businesses, including manufacturing, a chance to grow and create jobs without burdensome interference from the federal government. Our guiding principle should be a government that spends less on the pathway to sound economic policy, not just for one sector, but for the economy as a whole.
“As of 2010, manufacturing contributed to 95 percent of New Hampshire’s exports, and from 2003 to 2010, manufactured goods exports increased 135 percent, which was above the national average of a 70 percent increase. Small businesses, the economic engine of our state, comprise 88 percent of New Hampshire’s exporters as of 2009, and account for 42 percent of total state exports.
“The majority of people in New Hampshire and across the nation are employed by small businesses, but the excessive government regulations and fees on small businesses discourage expansion and job growth. A study from the Committee on Oversight and Government Reform found that small manufacturers bear a massive regulatory burden of $26,316 per employee, more than double the burden on large manufacturers.
“Yet this is only a fraction of the cost that all small businesses in the private sector pay when it comes to regulatory burden. When considering small businesses at large, the total cost hits $1.75 trillion, according to the Small Business Administration’s most recent estimate, 36 percent more than what large businesses pay. That exceeds the gross domestic product of Canada, is three times New Hampshire’s gross state product, and rivals California’s gross state product, the largest state economy in the United States.
“What is good for the manufacturing industry is good for all businesses in the U.S. Our trading partners are not gaining ground on U.S. manufacturing because our manufacturing sector is declining; they are gaining ground because our current economic policies are failing U.S. manufacturers and businesses in the U.S.
“We cannot use targeted and excessive regulations and policies that actively engage in picking winners and losers in the economy in order to compete globally. If we wish to continue to attract and retain innovative and successful companies, we need to reform many of the federal policies that are hampering U.S. companies.
“Thank you and I look forward to your questions.”
Some smart-growth advocates are pointing to the results of the 2011 Community Preference Survey---which suggested people enjoy dense urban living---as proof that smart growth policies are benefiting the public.
"There is good reason to be generally skeptical of supposed evidence for or against a given position that is obtained through surveys. Talk is cheap. Action, on the other hand, is a far better measure of an individual’s preferences — in this case, a snapshot inventory of where people actually choose to live. According to the most recent American Housing Survey from the Census Bureau (an imperfect comparison, yes, but an interesting one), 29 percent of occupied housing units were located in central cities in 2009 (27.3 percent of occupied housing units were located in cities with at least 100,000 residents). I have yet to see anyone seize on the apparent disparity between the two reports and claim that this is evidence that many current residents of dense cities would rather live in less dense suburban, small town, or rural settings."
Alaska State Rep. Bob Lynn (R-Anchorage) has proposed a bill that would allow anyone 18 years and older with a military ID to drink alcohol in Alaska.
Policy Analyst Michelle Minton praises Lynn for injecting some common sense into the debate over the drinking age.
"The current age limit has created a culture of hidden drinking and disrespect for the law. Regardless of whether a person is in the military or simply an adult civilian, he or she ought to be treated as such. If society believes you are responsible enough to go to war, get married, vote, or sign a contract, then you are responsible enough to buy a bottle of beer and toast to living in a country that respects and protects individual rights. It is long past time the law caught up with that reality."
Google recently unveiled a "YouTube Copyright School" for YouTube users.
"In the ongoing copyright debates, areas of common ground are seemingly few and far between. It’s easy to forget that not all approaches to combating copyright infringement are mired in controversy. One belief that unites many stakeholders across the spectrum is that more efforts are needed to educate Internet users about copyright. The Internet has spawned legions of amateur content creators, but not all of the content that’s being created is original. Indeed, a great deal of online copyright infringement owes to widespread ignorance of copyright law and its penalties."