White House, Big Business, Continue War of Words
In a letter to the U.S. Chamber of Commerce, White House chief of staff Rahm Emanuel and White House senior adviser Valerie Jarrett say the "stakes are far too high for us to be working against one another. That is why we were surprised and disappointed at the rhetoric we have heard from some in the business community – rhetoric that fails to acknowledge the important steps this Administration has taken every single day to meet our shared objectives."
The letter goes on to address concerns voiced by the Chamber – and possible areas of common ground — about exports, tax cuts and economic growth, small business hiring incentives, restoring fiscal health, reducing waste and ensuring accountability, reviewing regulations.
“We will not, however, accept a return to the lax regulation of the financial industry that contributed to the worst economic crisis since the Great Depression,” Emanuel and Jarrett write. “And we will not stand by while oil and gas companies continue to fight needed changes to the outdated regulations that are partially responsible for one of the worst environmental crises in American history.”
You can read the White House letter HERE.
Earlier today, Chamber president and CEO Tom Donohue said in a speech that “taken collectively, the regulatory activity now underway is so overwhelming and beyond anything we have ever seen, that we risk moving this country away from a government of the people to a government of regulators.”
The Chamber also wrote an open letter to the White House (you can read it HERE) that stated that “Uncertainty is the enemy of growth, investment, and job creation. Through their legislative and regulatory proposals — some passed, some pending, and others simply talked about — the congressional majority and the administration have injected tremendous uncertainty into economic decision making and business planning. This is why banks are reluctant to lend and why American corporations are sitting on well over a trillion dollars. It is why America’s small businesses and entrepreneurs, the engines of innovation and job creation, are starving for capital and are either struggling to survive or unable to expand.”
The letter urges Democrats to create a “Growth and Jobs Tax Policy”; restore fiscal health; expand trade and exports; rebuild and expand US infrastructure; and ease the regulatory burden.
Of this latter issue, the Chamber writes that there “must be a recognition by the administration and Congress that the regulatory burden they have imposed on the U.S. economy has reached a tipping point. Unless the cumulative impact of existing regulations, newly mandated regulations, and proposed regulations is seriously addressed, the economy will not create the jobs Americans need. We will lose even more jobs. They will simply disappear or be sent offshore….Each time a new regulatory proposal is even floated in Washington, investors in the potentially impacted industries close their wallets. Uncertainty forces them to do so.”
At the White House briefing, ABC News asked White House press secretary Robert Gibbs for a response to Donohue’s words, as quoted above.
Responded Gibbs: “I think it is ironic to make a statement like that as companies report, as Intel did today, record sales; when corporate profits are up 65 percent from where they were two years ago. Look, the Chamber of Commerce has a different approach to certain issues, but we have different responsibilities. The president — we have not in any way instituted a regulatory structure that is in danger of doing anything like that. Again, many of the things that they talked about in their letter that they sent were how do you have tax cuts for economic growth; 25 different tax cuts were contained in the Recovery Act. The notion that they would like to see increased investment in infrastructure is something that the president has talked about for years. So I'm — I don't — I don't think that what — I don't think what they're saying in that letter squares very well with what's going on in — in the business world in this country right now. Is business investment based on the fragility of the economy? Is it governed by that? Of course. But I don't think that that is — it's certainly not a surprising thing.”
Gibbs also went on to guess that the Chamber gives more than 80 percent of its campaign contributions to Republicans.
-Jake Tapper
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“takes” or “stakes” in the first graf?
Posted by: Nick | July 14, 2010, 3:09 pm 3:09 pm
Let’s make something VERY clear, Tom Donohue is not actually talking and defending small businesses. Predominantly his members are all big corporations that are paying large amounts to the Chamber of Commerce to do their dirty work. Tom has said it himself that, that’s job is to do the dirty work of corporations.
He could care less about what happens to small businesses, Tom Donohue(and chamber of commerce) as well as everything other corporation is trying to threaten the government with a smile on their face with more tax cuts, less regulation and more trade or else they will make sure more Americans lose their jobs and/or stay unemployed. As the article noted how corporations have increased in profits by 65%. And as always the U.S. government will do anything and everything for these companies because they feel their at the mercy of them to create job growth in America. Its a political and corporate game.
Posted by: Sourma | July 14, 2010, 3:26 pm 3:26 pm
“Predominantly his members are all big corporations that are paying large amounts to the Chamber of Commerce to do their dirty work. ”
You’re entitled to your own opinion, but your not entitled to your own facts. The Chamber has over 3 million members. It’s mathematically IMPOSSIBLE that their membership is “predominately big business”. Nothing could be further from the truth. The GREAT MAJORITY of his members are small business owners.
The Chamber works to advance the interest of all business, big & small. They’ve been very busy the last 18 months, as this is the most hostile administration towards business in the modern era, and one needs look no than today’s retail spending number for proof of just that.
Posted by: Lincoln's Ghost | July 14, 2010, 4:02 pm 4:02 pm
The Chamber is an ultra-conservative organization primarily funded by a handful of giant corporations, though it does have other members.
The Chamber proposes deregulation of business, tax cuts for the wealthy, free trade agreements, a reduced corporate income tax, expanded offshore drilling and logging in national forests and the privatization of waterways and roads.
In other words, they want to reinstitute and expand the policies that got us into the mess we are currently trying to recover from.
Posted by: Flash Override | July 14, 2010, 4:31 pm 4:31 pm
“We will not, however, accept a return to the lax regulation of the financial industry that contributed to the worst economic crisis since the Great Depression,” Emanuel and Jarrett write.
How stupid do you have to be to believe that tripe?
We don’t have to return to lax regulation because we will still have lax regulation because the regulated write the bills. Who doesn’t understand that?
Posted by: Foghorn Leghorn | July 14, 2010, 4:43 pm 4:43 pm
“Let’s make something VERY clear, Tom Donohue is not actually talking and defending small businesses.”
When you don’t have the facts I guess making something up is the easiest argument. Small business is the largest employer in this country and that is the majority of members that the Chamber represents. This administration is trying to bury every business with so many regulations and mandates that it is becoming impossible to grow or even stay in business.
Posted by: TucsonWilly | July 14, 2010, 4:51 pm 4:51 pm
Let’s hope the chamber will mount a significant offensive against the administration in a couple of years.. they tend to hedge their bets, when the chips are down.
Posted by: Dontget818 | July 14, 2010, 4:53 pm 4:53 pm
This is simple and straightforward…..the Chamber is right. The Obama admin is not doing much, to foster business, or job creation, in general.
The rhetoric aside, the facts are the facts.
Posted by: Rick McDaniel | July 14, 2010, 5:05 pm 5:05 pm
I think that the Obama people would like to appear to represent the consumers.. but it’s a stretch to say that their concern is genuine. So far as businesses go, I hate to hear them whining.. they have jobs, good jobs and are living the American Dream..often at the expense of their low end employees giving up wages and benefits of all variteties.
Posted by: Dontget818 | July 14, 2010, 5:11 pm 5:11 pm
Posted by: Charlie | Jul 14, 2010 4:44:10 PM
I can’t argue with that – the 4% to 5% unemployment during the “neo-con” years proves the your implied improvement to 10% unemployment is because of the confidence business has in this administration and congress.
The Dems have been in charge since 2006 except for the White House in 2006 to 2008. Look at what has happened since they gained control.
Since you must be a Clinton fan also, can you explain why there was growth when he was in office when the Reps had control of both Houses from 1995 to 2005 except for the Senate in 2001? The quick answer was he worked with the Reps because he had to and knew he could only get passed what they would approve.
But then again when you have all of the power you blame the other party. When you have the White House and not the Houses you take credit for a robust economy. I really suggest you look at the last 10 years or so before making statements.
Posted by: TucsonWilly | July 14, 2010, 5:18 pm 5:18 pm
Yes, Obama Administration, everyone around you is bewilderingly stupid, nonsensical and uninformed, because we judge you by you actually do instead of what you say. I think we’re all getting the picture of the contempt you hold us in, and I think we’ll take appropriate action in 2012.
Posted by: Chiara | July 14, 2010, 5:20 pm 5:20 pm
According to New York Times reporter David Brooks, “Only 6 percent of Americans believe the last stimulus created jobs, according to a New York Times/CBS News survey. ”
It is possible that the current stimulus has created 3 million temporary jobs of one month duration each. No more.
Posted by: austin | July 14, 2010, 5:20 pm 5:20 pm
The reason why Big Business is painting a bad picture of the Obama administration is because Obamaand the democrats want to regulate the unjust policies they force on Americans and will not allow them to continue to have a tax holiday while the rest of America carries the tax burden.Big business has mainly and will more then like continue to be republican backed. Whats bad is republican elected officials and campaigns try to pass that party as the one that is most in touch with the average Americans. Average Americans make less… way less than 200,000 a year. Republican strategies benefit those that make considerably more than that. If you make 200,000 or less a year your best interest would be to vote democratic.Dems try to create safety nets for Americans. Republicans are self centered risk takers
Posted by: TV | July 14, 2010, 5:48 pm 5:48 pm
Posted by: david | Jul 14, 2010 5:27:30 PM
I need the name of your broker – my stocks are down about 15% within the time the Dems gained control. I guess when the market drops after 3 years of Dems controlling Congress it doesn’t count.
I say blame both parties and a public that could not stop laying out their credit cards and having McMansion dreams.
As far as people buying houses and all of the associated toys that they could not afford on credit I have absolutely no empathy. I was and always will be amazed at how crazy consumers were at buying $5k TV’s, $50k cars, boats, vacation homes, etc when they could barely make the payments.
I bought what I could afford and didn’t buy what I couldn’t afford. I could have purchased as much as I wanted with a credit score in the top 1% (maybe that is how I got it?) Guess what? $0 debt, two great homes and very little overhead and most all of the toys – but then again I was not then and am not not expecting someone to bail me out. I also work about 60 – 70 hours a week. And before you start – I grew up in the shadow of a refinery under the flight path of planes landing less than 2 miles away at a msjor airport, I have been on my own since I was 17, paid for my own college as I attended so I did not have debt when I graduated (didn’t qualify for any special programs) did not/will not inherit any money and have worked my butt off for what I have earned and just waited instead of paying huge interest payments.
I call it personal responsibility but maybe that is not PC anymore.
Posted by: TucsonWilly | July 14, 2010, 6:15 pm 6:15 pm
“I guess when the market drops after 3 years of Dems controlling Congress it doesn’t count”
Why should it? The market is up since Obama took office. You want to include the stock bubble bursting in your chosen time-frame…right-wingers love to cherry-pick their statistical samplings. You know the disaster in the Gulf happened within 3 months of Scott Brown taking office?
Posted by: Skip | July 14, 2010, 8:08 pm 8:08 pm
I stated since the Dems were in office as a sarcastic response to what I assumed was your sarcastic offer of since Obama became President the market has gone up. My point was neither party is doing anybody any favors and neither are those who thought buying everything in sight with no way to pay for it.
Posted by: TucsonWilly | July 14, 2010, 8:44 pm 8:44 pm
The Dems have been in charge since 2006 except for the White House in 2006 to 2008. Look at what has happened since they gained control.
Posted by: TucsonWilly | Jul 14, 2010 5:18:55 PM
——————
No, it looks like you started it. So according to you neither party is doing us any good eh? How many times did you vote for George Bush?
Posted by: Skip | July 14, 2010, 8:55 pm 8:55 pm
Skip,
My apologies, I had just finished reading another post and responded to you on that point that way, my mistake. (Still doesn’t mean I like your point however :)
To answer your question – both times and would I vote for him a third, no. Would I vote for Obama – no, he does not pick people to be around him that understand both sides of the issues. It is not to say they are not smart people just never lived outside government or academia and it shows. I am also not saying that he should have conservatives in his office, but he does need people who are not complete idealogs. He also needs to learn to speak in “we’s” because he is the head of a team (which includes all citizens)and can not and is not doing it on his own as any experienced CEO will tell you. Rhetoric and hope are nice but thay are not a strategy for success.
I really do not believe that there are many good candidates out there, too many are those who have been in office as a career. A career politician will get you nothing but politics and not solutions – and some times the best solution is to do nothing. I don’t know what you do for a living but running even a small business like I do and having to deal with all the regs and now new social programs being brought about gives one a much different prospective. While at one time there was confidence and you took a chance on a new employee, you do not do that any more. The costs are too high and the future is so questionable it is better for the company to do nothing, hire part time when needed or use contractors.
I have a black coffeee cup on my desk so every morning I am reminded that I must keep the company in the black to support those working with me. It is not something that I take lightly.
My choice now is do I continue and build the business and hire people, or do I cash in, spend time between the States and my place in Mexico and work on charity causes? I can do either, but not if I do not have confidence that small business will be left alone and allowed to grow and support families without the fed dictating every single thing I try and do.
Posted by: TucsonWilly | July 14, 2010, 9:57 pm 9:57 pm
“We will not, however, accept a return to the lax regulation of the financial industry that contributed to the worst economic crisis since the Great Depression,” Emanuel and Jarrett write.
That’s good to know.
But hey, Emanuel and Jarrett, is a 10% minimum down payment on the purchase of a house included in the financial regulation bill?
Huuummmmm?
Wouldn’t that be sound regulation?
Posted by: Noz | July 15, 2010, 10:27 am 10:27 am
I can’t believe Tom actually admits to doing the ‘Dirty work’ of big corporations!
Posted by: car service lax | July 16, 2010, 6:19 pm 6:19 pm