Another round of the U.S. Chamber vs. Obama
After getting heat from big business trade groups for being out of touch with corporate America, the White House has emphasized it wants input from businesses on how to create jobs and help companies grow. Today the U.S. Chamber of Commerce obliges at a jobs summit.
The Chamber, one of Washington's largest lobbying groups, is hammering its case again this afternoon that new regulations coming from lawmakers are standing in the way of job growth. Why aren't companies hiring? The Chamber says a big factor is all the uncertainty surrounding new rules. They say the financial reform bill will trigger 533 rulemakings, 60 studies and 93 Congressional reports.
The Chamber's also citing a poll by the Lombardo Consulting Group of 300 small business owners who completed an online survey, showing that 57 percent feel the administration "does not have a clear plan for creating jobs." The Chamber also cited that 68 percent of those polled said new rules and are expanding government "far too much, resulting in a weaker U.S. economy and fewer jobs."
Meanwhile, the White House has its own take on jobs today with a report set to be unveiled at 11am estimating that the president's stimulus package from last year has saved or created 3 million jobs, according to analysis from the White House Council of Economic Advisers.
There's a great deal of debate over what's actually impeding companies from hiring more. Many economists cite broader uncertainty that goes well beyond anything happening in Washington. Companies aren't sure whether the economy can sustain a strong recovery. There's still some nervousness around securing credit from banks. And the bottom line is that consumer spending remains low, so there's not much incentive for companies to ramp up production quite yet.
The Chamber says that to dispel some of the uncertainty being created by Washington, lawmakers need to clarify what will happen to the Bush administration tax cuts set to expire this year and how regulators and agencies will implement new rules regarding health care and Wall Street.
As a bit of background, there's nothing new about the tension between the White House and the Chamber. The White House has leaned more toward dealing directly with CEOs -- inviting them over for intimate meals, appointing them to various councils -- rather than working through usual channels like the Chamber.
Jia Lynn Yang
July 14, 2010; 7:30 AM ET
Categories: Financial regulation , Job creation , U.S. Chamber of Commerce
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