Hey Washington, Focus on Economic Growth

by Sean Hackbarth, ChamberPost Today, the market is releasing a lot of built-up pessimism. The dip in the unemployment rate in July is nothing to cheer about since tens of thousands left the job market, too discouraged to continue looking for a job.  On Friday, Standard and Poor's lowered the federal government's credit rating. A CNN poll finds 60% of the public thinks "the economy is still in a downturn and getting worse." Then we have LA Times reporting today that U.S. companies are looking beyond America for growth.

All this points to a "very weak" economy.

But I refuse to be pessimistic. America has what it takes to rise above her current difficulties. We need to let loose the free enterprise system by instituting pro-growth policies to get people to believe in America again. A growing economy will spur businesses to invest and hire more workers, build consumer confidence, and boost tax revenues to reduce the national debt.

We know what policies are needed. In the July issues of Commentary, historian John Gordon Steele offered solutions to anemic economic growth and job creation
First, we should develop the tremendous natural resources available in the U.S.:

Opening up exploration and drilling in areas where it is now forbidden would create hundreds of thousands of jobs, significantly increase economic growth, and do wonders for the country’s balance of trade, reducing oil imports dramatically. The Bakken tight-oil field in North Dakota has already given that state the lowest unemployment rate in the country.

Second, we must stop lawsuit abuse:

Reforming the American legal system to promote growth, instead of lawyers’ incomes and special-interest-group agendas, would have a highly positive effect on GDP growth and job creation.

Third, we must reduce stifling taxes and regulations.

For more pro-growth ideas, last week, Chamber President and CEO, Tom Donohue listed "five steps officials in Washington should take immediately to spur faster hiring in America’s private sector."

Let me conclude with Steele writing, "there is really no alternative to pursuing policies that encourage economic growth through private action by liberating the forces of the free market." The economic signs are as plain as day. Our leaders need to make economic growth a priority and advance the right policies to accomplish that.

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