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Governmental Affairs - Federal Issues
Archive
10/26/04 - Update on the Global Sourcing Debate
U.S. Chamber of Commerce President & CEO Thomas J. Donohue's column:
Last April, we issued a report called Jobs, Trade, Sourcing, and the Future of the American Workforce. Our goal was to bring some balance to what had been a one-sided attack on global sourcing -- an attack that was leading many Americans to believe that a mass exodus of jobs was under way and that isolationist trade policies were needed to protect those jobs. The report was well received and has helped change the terms of the debate.
When dealing with the issue of global sourcing, we need to traffic in facts, not fear. The easy, reactionary response is to try to lock down our borders. The right response is to welcome trade and strengthen our economy so we create better jobs for Americans. By lowering the cost of doing business, by eliminating the fear of frivolous lawsuits, by training our workers for the jobs of tomorrow, by reinforcing our infrastructure -- that's how we allow small businesses to grow and add jobs right here.
The fact is that our nation enjoys a substantial $60 billion annual surplus in services trade -- indicating that far more "white collar" service work is imported from other countries to the United States than vice versa. Moreover, America's open markets have attracted 6.4 million jobs that are directly created by foreign-owned companies, and even more jobs have been created indirectly.
Conversely, even the most drastic forecasts envision only a small fraction of our jobs being outsourced in the future. Unemployment as of last month stands at 5.4%. That's lower than the average rate of unemployment in the 70s, 80s, and 90s. Within the service sector, employment in professional and technical services has grown by 205,000 since the end of last summer. The positive statistics go on. And the fact is, opponents of trade are misguided or just flat out wrong. We lose more jobs in this country because of policies that foster an unfriendly business environment, than we do to outsourcing.
I'm proud to say that we're helping get the facts through to policymakers. For years we've been hard at work educating lawmakers on what's hurting our economy: junk lawsuits, rising health care costs, inadequate training, a crumbling infrastructure, and other issues we've worked on aggressively. Despite the spin, this is where the focus must continue to lie.
Fortunately, although anti-trade legislation can be made to sound like a good idea, some lawmakers are doing what is best for the country, not what's politically expedient in the short term.
As of mid-September, 196 legislative proposals to block global sourcing have been introduced in 40 states. Only four have been signed into law. In Congress, our pro-business allies have rejected several harmful proposals that would have shut off opportunities for or lowered the competitiveness of companies already facing a fiercely competitive international market.
We're making progress in moving the focus back where it belongs, on helping businesses grow, not putting the brakes on them. Read our report at http://www.uschamber.com/government/issues/labor/sourcing.htm
10/19/04 - Where We Stand on Legal Reform
U.S. Chamber of Commerce President & CEO Thomas J. Donohue's column:
Last week, the U.S. Chamber Institute for Legal Reform and the National Chamber Foundation held the fifth annual Legal Reform Summit in D.C. Much has changed since our first summit. Five years ago, trial lawyers didn’t have much to fear from the business community. Today, the Institute for Legal Reform -- working closely with our National Chamber Litigation Center, the Chamber lobbying and policy team, and many good partners in Washington and across the country -- is successfully challenging the trial bar on all fronts.
We are focused on finding a solution to our nation's myriad litigation problems, and representing the business community in high-profile political battles being waged by unscrupulous trial lawyers. We must also remain united. To do that we will continue to educate America's small businesses to ensure that they understand that legal reform is their fight too -- it’s not just about the big companies. Lawsuit abuse hurts companies of all sizes, and 68% of litigation costs, or $88 billion a year, is borne by small businesses.
It's a tough battle -- the attacks are coming in from all sides. We've made massive progress on the federal level, bringing class action reform further through Congress than ever before. Although the battle to pass the Class Action Fairness Act will continue, this year we brought it all the way to the floor of the Senate -- something the conventional wisdom said could never happen. And we're continuing to keep the issue front and center on the federal level during this election cycle.
Many of our most important achievements have been on the state level. The annual surveys we have released ranking states according to their legal environments have clearly established legal reform as an economic driver. Combined with intensive lobbying and communications, these rankings have helped us win major tort reforms in the lowest ranking states. Last year, landmark reforms were passed in Texas. We’re making progress in West Virginia and Illinois. And this year, we scored a major victory in Mississippi, the state with the worst legal environment, as legislation was enacted that included important provisions regarding venue, joint and several liability, caps on non-economic damages, and innocent seller protections.
Our revolutionary strategy to educate voters during election campaigns has also been a tremendous success. We are pleased that, over the last several years, dozens of pro-legal-reform candidates have been elected to office, helping to ensure fairness at the state level. The balance of power on a number of state supreme courts has clearly shifted, due in part to our comprehensive efforts.
Here’s the bottom line: For the first time, the business community is challenging America’s litigation explosion in a comprehensive and coordinated way.
For the first time, our adversaries know they have a real fight on their hands.
For the first time, business can point to more than just minor successes around the edges, but also to fundamental changes in the legal landscape across the nation.
So where do we go from here? We must begin by recognizing the compelling truth that our adversaries are as tough as they have ever been. They are organized. They are relentless. They have unlimited funds and they retain impressive political clout.
Only a united effort by the business community can stand up to them. We must have the legs and the courage to take on the really tough fights and never back down.
10/5/04 - In Case of Emergency
U.S. Chamber of Commerce President & CEO Thomas J. Donohue's column:
Being prepared for an emergency could make or break your business' viability. It also has implications for national and economic security. Collectively, the small business community must take steps for surviving a disaster. That's the message the Chamber delivered late last month when it hosted an event that launched “Ready for Business,” a new government Web site devoted to small business disaster preparedness.
It seems lately that natural disasters are occurring with more frequency and intensity. While the quadruple hurricane threat in the southeast this season may be an anomaly, the fact remains that a single natural disaster can cost millions of dollars in damages to families and businesses, as well as to suppliers and customers located far from where disaster strikes.
As the primary engines of U.S. economic growth, small businesses need to keep going after a disaster. By providing information through its online Small Business Center and by directing companies to outside resources such as Ready For Business, the U.S. Chamber is helping businesses help themselves in case of disaster.
Ready for Business, which can be found at Ready.gov, provides practical steps owners and managers of small and medium-sized businesses can take to safeguard their employees and assets, while preparing for business continuity in the event of disasters -- whether it be a hurricane, a terrorist attack, or anything else that could threaten continuity of operations.
The site gives detailed, step-by-step instructions on all steps of the planning process. Visit the Ready for Business Web site at http://www.ready.gov.
For more resources and tools to help you run
your business, go to http://www.uschamber.com/sb/learn
Contact the Salem Chamber:
For additional information on the Chamber's business advocacy efforts, please contact
Jason
Brandt at 503-581-1466, ext. 304.