I want to thank my friend from Texas. Thank you so much for allowing me to join you on the floor today. I spent my entire adult life running my own business, so this is something that I've had the opportunity--or maybe the misfortune--to…
I want to thank my friend from Texas. Thank you so much for allowing me to join you on the floor today.
I spent my entire adult life running my own business, so this is something that I've had the opportunity--or maybe the misfortune--to deal with firsthand. I found it interesting that, just a few weeks ago, on October 25, Politico ran an article which said right here: ``Regulations: Top Issue for Small Businesses.'' In fact, they cite a Gallup Poll that, indeed, 41 percent of small business owners said that government was somehow related to the biggest problem facing their companies. More small business owners view the costs of complying with government regulations as a bigger problem than any other issue.
I've heard this time and time again.
Just recently, I was up in northern Wisconsin, in Rhinelander, Wisconsin, where three other Members of Congress and myself held an all-day session with the timber industry. We invited Chief Tidwell, from the U.S. Forest Service, to come in to talk about harvesting timber in our national forests. I had a timber manager come up to me who harvests timber up in the Wisconsin North Woods.
She said to me, Congressman, I want to show you something. If I do a timber sale here that's regulated by one of the counties here in northern Wisconsin, this is the contract that I have to fill out to harvest timber. That's the county contract.
Then she said, But do you know what, Congressman? If the State of Wisconsin manages that timber sale, the contract gets about twice as long, and I have to manage that contract. However, if the Federal Government manages the timber sale, this is the contract that we have to fill out for the Federal Government.
There are pages and pages and pages of bureaucrat red tape just to allow them to harvest timber that's owned by the taxpayer.
So I thought, after hearing a lot of these things and after having run my business, that maybe what this country needs more than anything--and I certainly support Congressman Davis' REINS Act. I think it's exactly the right thing to do. But I'll take it a little step further.
You and I together put together a bill called the Regulatory Moratorium and Jobs Preservation Act. This bill simply does one thing. It says that the government can't promulgate any new rules until unemployment goes below 7.8 percent, because you and I know full well, in talking to all the businesses in our own districts, that unemployment and regulatory environment are connected. They're linked together.
Now I will have colleagues from the other side of the aisle say to me, Well, Congressman, you know full well that this is all about demand, that demand is causing the problem; and without demand, people aren't going to hire. And I would say back that every single page of regulation, every single page of trying to comply, every single page has to be responded to by some business owner, and that means that response will have a direct cost to it.
As you pile on cost after cost after cost, there have been 24,000 new rules promulgated on the American business owner since 2004, nearly 1 million pages of new regulations. Every single page, page after page after page, adds costs. And every single time the cost of any good or service goes up, there are fewer customers that can afford that product, so demand must go down. So every time we add a new regulation, costs go up, demand goes down.
Finally, we've come to a new end game here with over 9 percent unemployment. So we wanted to connect our bill to unemployment so that we can show the American people, prove to the American people the empirical evidence that if we would put a hold on new rules and regulations, if we would inject certainty in this regulatory environment where business owners knew what future costs were going to be, they could measure future costs because they know that government won't promulgate a new rule, they will begin to hire again. That new confidence will be there, a new certainty will be there, and unemployment will go down.
Then, here's what I suspect will happen: As unemployment goes down, the American people will demand from Congress that we extend this rule until unemployment reaches 6 percent, or we get to full employment as we find this out.
Now, this rule does not remove a single safety net. This rule does not remove anything that's already there. I have heard people say, Well, you are just trying to destroy the environment, as if I don't want to breathe clean air, as if I don't want to drink clean water, as if I want my grandchildren to swim in lakes and streams that are polluted. It's ridiculous on its face. I want to breathe clean air like every American. I want to drink clean water like every American. I want to eat safe food like every American. And this bill will do nothing to remove any of those protections whatsoever. What it will do, though, is stop the administration from, by executive fiat, creating rules and regulations that haven't been created by this Congress. It will stop.
I was listening as my colleague from Kentucky was speaking, and I was struck by something. I was struck by this: Article I, section 1 of the United States Constitution says, ``All legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives.'' Now, that word ``all,'' three simple letters, is pretty inclusive. ``All,'' it means all of them. And what the REINS Act does, it says that any rule that gets promulgated, the Congress, the duly elected Representatives of the citizens of the United States, get to say whether that makes a law or not. We get to say because the Constitution gave us, the Members in this body and the Members in the U.S. Senate, the authority to execute legislative power, not some Federal agency. And this REINS Act will reel it in.
My bill and your bill, Representative Carter, will extend this control by the Congress, and it will simply return the
power back to our legislative, duly elected Members of Congress.
I couldn't agree more. As a matter of fact, unemployment has never been lower since the day President Obama was sworn into office.
I'm a freshman Member of Congress. I had the privilege of sitting in this Chamber for the President's State of the Union address. And the President said in that State of the Union address that he was going to ask for a regulatory review of the executive branch. He wanted to know what they were going to be doing, and he would make jokes about some of the ridiculous regulations.
And what we've done now--we've got one more President who's followed the traditions of dozens of Presidents who have ordered another study. In the meantime, the American people suffer while we study something that we already know. This is not so much about whether the government can create jobs. It's about whether the government is obstructing job creation, which is exactly what's happening. And that's why we decided to pick that number.
I think there is something salient here that we really need to hit on. We, you and I, believe, as do many of our colleagues and, more importantly, small business owners and large business owners alike believe that this type of bill will actually increase employment. The very interesting point about this is it doesn't cost the taxpayer a penny. What this will cause is businesses that have now been putting their money in the bank and have been holding it because of fear, we will unleash that money back into the private sector to create jobs and get this economy going, and not a single penny of taxpayer dollars will be expended as a result of this. This is a simple thing.
You know, since the President talked to us back in January, over 70,000 pages
have been added to the Federal Register. Seven thousand pages. 539 rules have been deemed significant under Executive Order 12866. Stop and think about these numbers: 116.3 million hours of annual paperwork burden being added. And all of this continues to create that uncertainty. Why would you as a business owner spend any money when you have no clue what that future cost will be.
And just recently, I was talking to some friends of mine in my district at Thilmany Pulp and Paper Company in Kaukauna, Wisconsin, the hometown where my roofing company is; and they were sharing with me their concerns about the EPA clean-air ruling and a new rule called Boiler MACT. They said if that rule was promulgated, Wisconsin's paper industry would be decimated. But what is really most troubling is the fact that this is a revision of a rule that they just put in place a few years ago. So the entire paper industry in Wisconsin had to upgrade their boilers, spend millions of dollars of investment; and then a few years later the EPA came back and said, whoops, we made a mistake, we need to move the bar up again.
And rightfully so, these business owners are calling their Congressman. This time it's me. I'm sure you've heard from them in your own district, asking: Well, if we spend another $50 million or $60 million, what assurance do we have that the EPA won't move the bar next year? And then we have to spend it again and again and again. At what point is clean air clean air? And that's the problem.
I'll tell you, it would be very simple, when you start talking in the millions and millions of dollars, it's very simple to lose thousands and thousands of jobs. This is exactly where our national economy is at right now. There has been an onslaught of regulations dumped on the American entrepreneur.
Let's talk a little bit about access to credit. I've been very critical about the Dodd-Frank bill. I understand the intent was to get at Wall Street, and I appreciate the intent of getting at the things that caused our economic crisis back in 2008.
But what actually happened is it got at Main Street. So small business banks in my hometown of Appleton, they are now spending money and investing money and hiring regulatory analysts when they ought to be hiring commercial lenders. You know, most jobs created in this country are created by small businesses. But in reality, it's really small businesses under 5 years old, businesses that need access to credit.
I often wonder would someone like Steve Jobs be able to emerge in this type of environment today, building computers in his garage. I'm sure there's some rule against that now. You can't imagine. I chuckled the other day when I saw a famous television host on MSNBC standing with her hard hat by the Hoover Dam saying we need big projects like this; we need big thinking like this. Franklin Roosevelt ushered in these great programs to create jobs and generate energy. This was the boom day of the American mind. I had to chuckle thinking there'd be no way with the current EPA that you could ever, ever build the Hoover Dam today. It just wouldn't happen. The environmental rules alone wouldn't allow for it.
I thank the gentleman for yielding.
I just thought it would be interesting, the President was in here just a few weeks ago with his jobs bill, and I was struck--I actually came into the Chamber with the intent of not really being critical but to try to find out what is it that we could agree on so we could maybe, for the good of the American people, move those things forward. But I was struck that the President didn't mention energy a single time.
Now, we've lost millions of jobs in the energy sector. Just recently, the President decided to punt on Keystone, the TransCanada pipeline which would have created thousands of jobs by even the lowest estimate, thousands of high-paying union jobs. Fully, labor was supportive of it, and he decided to kind of punt on that and not let jobs.
It seems like the President's jobs plan is really at the regulatory agencies where, since he's been sworn into office, employment has increased 13 percent. While the private sector is shedding millions of jobs, the President has decided to hire thousands of people at Federal regulatory agencies. Now, I guess it is may be so they can implement the 3,573 new rules that have been put in place since January 2010.
We have to get to a place where we understand the connection between employment, the connection between costs and jobs, and just American competitiveness. How in the world can we have businesses compete in this day and age when there's a constant onslaught from the Federal Government?
I thought I might read a quote from CNBC. We asked several CEOs leading up to the President's speech what bold steps President Obama could take to reduce the 9.1 percent unemployment rate. John Schiller, chairman and CEO of Energy 21 said:
If the government would get out of the way from a
regulation standpoint and let us, 21, do what we do good,
you'll see us continue to hire and grow this economy. I think
that's a message from across the board.
And I believe it is a message. For some reason, it just doesn't seem like the executive branch fully understands how this economy actually works. Obstacle after obstacle after obstacle, layer upon layer of new rules and regulations, and each one of them hurting job growth and employment in this country.
David Park, President and CEO of Austin Capital, said:
Regulations have companies running scared. They are coming
at businesses, and some new regulations are already taking a
toll while others will soon. This could be a real deterrent
to future entrepreneurs.
And since most jobs are created by entrepreneurial companies under 5 years old, the difficulty of actually even forming and starting a company today is burdensome, and it's hugely complex, all because of this endless stream of control and regulations as if Washington, D.C., as if you and I, Judge, have all the answers. We don't have the answers. The answers are found in the private sector. The answers are found in the citizens of this great country.
Recently, we passed a bill just the other day on ballast water. I sit on the Transportation Committee, and I noticed while reading the bill that the Federal Government was going to promulgate rules for ballast water for ships that come into the United States and traverse throughout the Great Lakes. Now, my home is in Appleton, Wisconsin, just near Lake Michigan, just south of Green Bay, Wisconsin.
We have the Port of Green Bay there, and the concern was--I was reading the bill--that the Federal Government exempted themselves, that they were creating a whole new level of bureaucracy, red tape and rules that they were going to promulgate on private shipping companies but not on themselves. So a Federal science ship or an EPA vessel could traverse the whole globe and not have to manage ballast water the same way that everybody else did. So I added an amendment, and this body passed it, that said that if the Federal Government is going to promulgate rules on private shipping companies, they have to live by those same rules themselves. It's high time that the Federal Government begins to treat the government the same way they treat the private sector. I think if we start doing that type of thing, some of these problems will begin to go away.
Yes. There's a companion bill that is going through the Senate right now. It's the identical piece of legislation. It was crafted by Senator Ron Johnson, a colleague of mine from the great State of Wisconsin. We thought it would be good for us to do a project together. We talk quite often, and the idea of attaching the moratorium to unemployment was Senator Johnson's idea. I thought it was a terrific idea. And he now has a companion piece of legislation. He told me that there are more than 20 cosponsors in the U.S. Senate.
And this bill now has over 70 cosponsors here in the House of Representatives, and it continues to move forward. I'm very optimistic that we're going to be able to pass this bill through this Chamber and send it on over to the United States Senate where I hope reason will rule the day, that they will see this doesn't remove a single safety, it doesn't restrict any safety or put something out of the way that's currently in place. It just says let's give the American entrepreneur, the American job creator, some breathing space. Let's give them some room to just have some certainty for the time being, until unemployment starts to get going and the engine of our economy starts moving again.
And I hope that, and I challenge the United States Senate, after we send this piece of legislation over to them, that with most haste that they go ahead and pass it. And if they can't pass it, let's for sure let the U.S. Senate have a chance and Members of that Chamber to vote on it. They kind of have a method over there where they can protect Members from having to make tough decisions. They just table a piece of legislation and don't even vote on it. And I would challenge the Senate majority leader that when we send H.R. 2989 over there, that they would actually bring it to a vote, and let's have our U.S. Senate stand up and say whether they agree with this or not and have them go officially on the record about whether they believe that regulations are a problem in this economy or not.