In this week's address, Rep. Diane Black (R-TN) discusses legislation passed by the House in a bipartisan vote to protect taxpayers by preventing fraud and abuse in ObamaCare. Learn more about the No Subsidies Without Verification Act (H.R. 2775) and become a Citizen CoSponsor here. 

Speaker Boehner announced today that Rep. Diane Black (R-TN) will deliver the Weekly Republican Address tomorrow, Saturday, September 14. Here's a behind the scenes look at Rep. Black delivering the address, in which she will discuss legislation the House passed this week to prevent fraud and abuse in the president's health care law. You can learn about the bill and become a Citizen CoSponsor here, and watch the address here tomorrow.

Policy Feature Issue: August Jobs Report

On Friday, the Bureau of Labor Statistics (BLS) released its August monthly jobs report.  Though nonfarm payroll employment increased by 169,000 in August, the unemployment rate decreased only slightly to 7.3%.[1] The August jobs report suggests that our country’s anemic economic recovery shows no signs of improving.  Although overall nonfarm employment grew during the month of August, the civilian labor force shrunk, and labor force participation decreased for the second straight month, to the lowest point since 1978.

Facts You Need to Know:

• The unemployment rate remained essentially unchanged from July, decreasing slightly from 7.4 percent to 7.3 percent.[2]  The number of unemployed persons decreased slightly from 11.51 million in July to 11.31 million in June.[3] 
• Long-term Unemployment (those unemployed for more than 27 weeks) increased slightly from 4.25 million to approximately 4.29 million Americans in the month of August.[4]
  
• The Labor Force Participation Rate, which identifies the number of people who are active participants in the labor force (relative to the total population), decreased from 63.4% in July to 63.2% in August.[5]  The Labor Force Participation Rate is currently at its lowest level since August, 1978.[6]  The Employment-Population Ratio, a metric which establishes the raw employment rate, decreased slightly from 58.7% in July to 58.6% in August.[7]
• Average hourly earnings for all employees increased by 5 cents to $24.05.  In the last year, average hourly earnings have increased by 52 cents (2.2 percent).[8]
  

Why Does a “Pro-Growth” Agenda Matter?

• Labor force participation has reached its lowest level in 35 years.  A historically low labor force participation rate is a significant barrier to economic growth.  In order to facilitate strong long-term growth, labor force participation must be higher in order to encourage business expansion.  Economic growth is necessary to broaden the tax base and increase revenue organically.
• Especially concerning is the fact that the labor force continues to shrink.  In August, 115,000 less Americans reported that they were employed, while the number of Americans not in the labor force increased by 516,000.  This means that less people have jobs, while an increasing number of people simply give up looking for work.  As a result, the unemployment rate decline that occurred in August is highly misleading.
• In addition, an increase in the number of long-term unemployed Americans is a worrying sign considering the large number of Americans who dropped out of the workforce in August.  A large group of institutionally unemployed Americans is a serious barrier to a strong recovery, and the potential for this population to become part of a perpetually unemployed class of Americans is a significant risk.
• The Bureau also posted revisions to the June and July job creation projections.  With the revisions, employment gains in June and July combined were 74,000 less than previously reported.[9]  The revisions to the June and July jobs reports show that job creators are struggling to create enough jobs to match demand based on population growth. 

The most recent jobs report shows lackluster job growth, a shrinking workforce, and long-term joblessness are hallmarks of the new normal in President Obama’s economy. Americans want a strong economy and a more secure future, and the House Republican plan lays the groundwork for one with new jobs and expanded opportunity. 

In this week's address, Rep. Mike Fitzpatrick (R-PA) discusses the struggles of American small business owners and the roadblocks they face from Washington. From President Obama's unaffordable health care law to delaying construction of the Keystone XL Pipeline, the policies stifling job creation must stop. House Republicans offer a plan to break down the roadblocks hurting our economy and put Americans back to work. Check it out.

In this week's address, Rep. Shelley Moore Capito (R-WV) urges the President and Senate Democrats to support the bipartisan, House-passed delay of the individual mandate in the president's health care law. You and your family deserve the same relief the President recently gave to big businesses by delaying their employer mandate - it's only fair.

Americans want a step-by-step, common-sense approach to health care reform. Republicans promote health care reforms that focus on lowering health care premiums for families and small businesses, increasing access to affordable, high-quality care, and promoting healthier lifestyles – without adding to the crushing debt Washington has placed on our children and grandchildren.

The following are the key elements of the Republican alternative offered during the debate on ObamaCare. This is not an exhaustive list of all health reform proposals.

• Lowering health care premiums. GOP proposals will lower health care premiums for American families and small businesses, addressing Americans’ number-one priority for health care reform. Lower premiums—CBO has estimated previous proposals to lower premiums up to 10% for coverage through small businesses, 8% in the individual market, and 3% in the large employer group—are a result of financing state-based reforms that lower premiums, ending junk lawsuits, and increasing competition and access to insurance products for small businesses and individuals.
• Establishing Universal Access Programs to guarantee access to affordable care for those with pre-existing conditions. GOP proposals create Universal Access Programs that expand and reform high-risk pools and reinsurance programs to guarantee that all Americans, regardless of pre-existing conditions or past illnesses, have access to affordable care – while lowering costs for all Americans.
• Ending junk lawsuits. GOP proposals help end costly junk lawsuits and curb defensive medicine by enacting medical liability reforms.
• Prevents insurers from unjustly cancelling a policy or instituting lifetime spending caps. GOP proposals prohibit an insurer from cancelling a policy unless a person commits fraud or conceals material facts about a health condition. GOP proposals also make it illegal for an insurance company to deny coverage to someone with prior coverage on the basis of a pre-existing condition. The proposals also prohibit insurance plans from instituting lifetime spending limits.
• Encouraging Small Business Health Plans. GOP proposals give small businesses the power to pool together and offer health care at lower prices, just as corporations and labor unions do.
• Encouraging innovative state programs. GOP proposals reward innovation by providing incentive payments to states that reduce premiums and the number of uninsured.
• Allowing Americans to buy insurance across state lines. GOP proposals allow Americans to shop for coverage from coast to coast by allowing Americans living in one state to purchase insurance in another.
• Promoting healthier lifestyles. GOP proposals promote prevention & wellness by giving employers greater flexibility to financially reward employees who adopt healthier lifestyles.
• Enhancing Health Savings Accounts (HSAs). GOP proposals create new incentives to save for future and long-term care needs by allowing qualified participants to use HSAs to pay premiums.

House Republicans know that in order to spur economic growth and create jobs, we need to fight back against an out-of-control federal government that's making life tougher for hardworking Americans.

That's why this week we've introduced several bills that make sure our government works for the American people, not against them.

Policy Feature Issue: Regulations Burdening Families and Businesses

Federal regulations have an enormous impact on families, small businesses, and the overall economy, yet the costs they impose are difficult to comprehend.  Costly regulations touch many aspects of our lives: the price we pay for groceries, the cars we drive, and the appliances we are allowed to use in our kitchens.  As Americans continue working to recover from the economic downturn, the Federal government should support private businesses and industries in their efforts to expand and create jobs without the burden of red tape.  However, the Obama Administration has used the regulatory process as a back-door means of implementing its policy agenda.  To that end, the number of regulations that are yet to come from Obamacare, Dodd-Frank, and the President’s climate change agenda will only continue to increase costs and tie the hands of job creators, stifling economic growth.

Facts You Need to Know:

• The major rules issued by the Obama Administration in FY2012 alone “imposed more costs on the economy than all the [major rules] issued during the entire first terms of Presidents Bush and Clinton, combined.”^[1]
• 2012 was the costliest year on record for federal regulations, with costs of up to $19.5 billion—more than double the regulatory costs of the next most expensive year.^[2]
• The number of “economically significant” rules—those imposing an annual impact on the economy of at least $100 million—issued by the Obama Administration is higher than any point in the past decade.^[3]
• By the end of 2012, the Code of Federal Regulations had grown to 174,545 pages—20% longer than it was a decade ago.^[4]
• During the first seven months of 2013, the Federal government “published $61 billion in compliance costs, and 84.9 million annual paperwork burden hours . . . .”^[5]  
• The Administration’s recently-released regulatory agenda could impose regulatory costs of up to $133 billion.[6]
• The flood of regulations is expected to continue as the Administration issues its vast regulatory scheme to implement Obamacare, the Dodd-Frank Act, and the President’s climate change agenda.
• In 2012, for example, financial service regulators issued the largest number of major rules, as a result of the regulations required by the Dodd-Frank Act.[7]
• Since the Dodd-Frank Act was enacted, it has imposed $15.5 billion in direct compliance costs and has produced regulations that require more than 58.5 million hours of paperwork to comply.[8] 
• The EPA issued the most costly regulations in 2012, many aimed at reducing carbon emissions.[9]
• “[T]hrough just July 31, 2010, a full 3,833 pages of Federal regulations had already been issued under [Obamacare].”[10]

What Does this Mean for Families and Businesses?

• Regulatory costs equal $14,678 per family—or 23.2% of a family’s average income.  In a typical family’s budget, this is second only to the amount allocated for housing.^[11]
• New fuel standards issued by the EPA and the Department of Transportation will make cars more expensive to produce, forcing drivers to pay an estimated $1,800 more per vehicle.[12]
• The FDA has proposed that a menu labeling law created by Obamacare be unnecessarily applied to grocery stores and delivery restaurants.  This would force Americans to pay more for basic necessities by “impos[ing] a $1 billion initial cost on grocery stores” and “hundreds of millions of dollars more in recurring costs.”[13]
• Estimates indicate that Obamacare will reduce employment by 800,000 in 2021.[14]
• Long run projections estimate that the cost of complying with just six regulations issued by the EPA could result in the loss of as many as 9.748 million jobs.^[15]
• The cost of regulatory compliance is 36% higher for small businesses than it is for larger businesses.^[16]
• “A study sponsored by [the Small Business Administration] . . . concludes that environmental regulations act as barriers to entry for small firms.”^[17]

In this week's address, Majority Leader Eric Cantor unveils a plan to stop to government abuse among federal agencies. From the IRS targeting political and religious groups to wasting millions of taxpayer dollars on extravagant conferences, the waste and abuse of power must stop.

The House will vote next week on a variety of bills holding Washington accountable to you. You can follow along and become a Citizen Cosponsor.

The Chicago Tribune came out with an article today entitled, “In Galesburg, Few Signs of a U.S. Recovery Taking Hold,” featuring the same town in which President Obama delivered one of his speeches yesterday.  And as the President continues to deliver the same prepared remarks – offering no new ideas – towns like Galesburg are suffering. Below are a few takeaways from the Chicago Tribune article and what the pundits are saying about the President's speech.

• Galesburg still hasn’t recovered from the closing of a Maytag plant over a decade ago, despite promises from this administration to put America back to work.
• The median income of former Maytag employees fell from $40-$50k to $30-$40k over the past decade.
• Disposable income has been erased in Galesburg.
• The middle class is rapidly disappearing.
• Economic uncertainty is still a very real problem in this country.

What They Are Saying About Obama’s Speech – The Same Speech, Nothing New, We’ve Heard It Before.

“The country has seen white house economic road shows before. This one is called a better bargain for the middle class. It follows winning the future, we can't wait, and middle-class jobs and opportunity. The names change but the themes do not.” (CBS This Morning, Major Garrett, 7/25/13)

“In eight years, through two presidential campaigns and in the White House, Obama has repeatedly cribbed his own 2005 speech.” (Obama then and now: Eight years later, the speech is the same, Zeke Miller, Time, 7/25/13)

“I didn’t hear anything new (in Obama’s speech).” (MSNBC’s Morning Joe, Chuck Todd, 7/25/13)

“The president told an audience that sat behind the podium, in standard Obama ‘12 formation, to hear many of the same themes he deployed against Mitt Romney.” (Obama's new bid to 'get back in the groove', Glenn Thrush and Carrie Budoff Brown, Politico, 7/24/13)

“You could be forgiven if you thought you had heard President Obama’s speech on the economy today before. Because you have.  For most of the 2012 campaign.” (Meet President Obama's new economic message. Same as his old economic message, Chris Cillizza, Washington Post, 7/24/13)

“The economic themes Obama spoke of Wednesday were strikingly similar to address at Knox College eight years ago as a young Illinois senator.” (Obama: Washington took its eye off economic ball, Darlene Superville, Associated Press, 7/24/13)

Policy Feature Issue: The Real Economic Progress Report

Yesterday, President Obama pivoted back to jobs for the 17^th time since he took office.  In an effort to tout his economic record, the President has refocused his efforts by pointing to declining unemployment.  But in reality, the President has presided over the weakest economic recovery since World War II, exacerbated by his own policies.  In fact, the President’s economic policies, in addition to Obamacare and the administration’s regulatory agenda are putting the weakest economic recovery since World War II in jeopardy.

The Current State of Jobs and Unemployment:

• Although the unemployment rate currently sits at 7.6 percent, its use as an indicator of labor force and labor market dynamics is significantly flawed.  If factors such as the number of people “marginally attached” to the labor force as well as discouraged workers are taken into account, the unemployment rate would be about 9.1 percent.[1]
• When taking into account people who are employed part-time for economic reasons, the true unemployment rate is approximately 14.3 percent.[2]  This signals not only that there is a large portion of the population who have simply given up on finding a job, but that there is an even larger “BLS-defined employed” population who have had to settle for part-time work due to weak economic conditions.
• Though the President argued that in the past 40 months, 7.2 million jobs had been created, this statement misrepresents the strength of actual job growth.  Average job growth over this period stands at 180,000 jobs created per month.  In other recoveries, private sector job growth averages 288,000 jobs per month.^[3]  However, in order to keep pace with population growth, the economy must create 107,000 per month.  This means that a large proportion of these 7.2 million jobs have only been sufficient enough to keep up with population growth.[4]  A stagnant Employment-Population Ratio (EPR), which currently sits at 58.7 percent, confirms that current job growth is only barely sufficient to keep up with the growth of population.
• According to Joint Economic Committee (JEC) estimates, the current recovery has created four million less private sector jobs than the average of other post-World War II recoveries.^[5]  The fact is that despite the President’s rhetoric, he has presided over a recovery significantly weaker than the average of other recoveries. 

• A more accurate measure of the long-term strength of an economic recovery is the Labor Force Participation Rate (LFPR), which better identifies who is and is not working.[6]  The current LFPR stands at 63.5 percent.  However, as recently as March and April of this year, labor force participation was at its lowest level since May, 1979 at 63.3 percent.[7]  The drop in labor force participation signifies that declining unemployment misrepresents actual trends.
• Under the Obama Administration, a new class of perpetually unemployed persons has begun to develop.  Since the President took office, the average duration of unemployment has climbed from 19.8 weeks to 35.6 weeks.[8]  The number of long-term unemployed (those jobless for more than 27 weeks) is approximately 4.3 million.[9]  In January, 2009 there were 2.7 million long-term unemployed.
• In addition, the President’s regulatory agenda has the potential to hurt job growth by overburdening business and industry.  A study from the National Economic Research Associates found that EPA regulations could cost as many as 887,000 job-equivalents annually from 2013-2034, a loss of $416 per year in labor income per household.[10]

The Current State of the Middle Class:

• The weakness of the economic recovery poses a significant barrier to the well-being of our nation’s Middle Class.  As of May 2013, disposable income per person has risen by only 2.3 percent since the end of the recession, meaning that real disposable income has increased by only $745 per person in the last four years.[11]  According to Joint Economic Committee estimates, in an average recovery since 1960, an individual would have $3,604 more in disposable income over the same period.[12]
• A recent report by the House Energy and Commerce Committee found that, “consumers purchasing health insurance on the individual market may face premium increases of nearly 100 percent on average, with potential highs eclipsing 400 percent based upon plan and age.  Meanwhile, small businesses can expect average premium increases in the small group market of up to 50 percent, with potential highs over 100 percent.”[13]  Premiums could increase as much as 73 percent for those who will be able to keep their employer-sponsored insurance.[14]  Those individuals who were uninsured prior to the enactment of the bill and are now forced to purchase healthcare could see their premiums skyrocket, as the average yearly cost for a new customer in the individual market will grow from $1,896 to $3,708.[15]  The mandate and penalty system of Obamacare is inherently regressive – despite the subsidies that Obamacare provides, individuals and families with limited incomes will still take a larger hit in their disposable income as a result of these premium increases.

The Current State of Youth:

• The President’s economic agenda has done little to better the employment situation of the nation’s youth.  Unemployment among young people aged 16-19 is at 24 percent, and 13.5 percent among young people aged 20-24.[16]  Unemployment among 20-24 year-olds is essentially unchanged from 13.7 percent a year ago.
• Obamacare will also have an extremely detrimental impact on young people in terms of premium increases.  Premium rates for young people could increase by as much as 413% based upon the type of plan they receive.

Conclusion

In reality, the President’s policies have not made the economy stronger.  One could argue instead that his policies have made the economy and America worse off overall.  Individuals who have been out of the workforce for more than six months are having a harder time finding the work they need to support themselves.  Families are continuing to struggle to pay the bills as their healthcare costs look likely to increase.  Young people, especially those under 25, are experiencing high and levels of unemployment that are not improving.  The President’s answer to these problems is more regulation and more mandates.  Yet for the millions of Americans without work, it is of little consequence.  In order to truly improve the economy, the President must focus instead on unleashing the private sector, reining in out of control spending and making strategic reforms to our entitlement programs.

Today the President heads to Illinois to make his 19th pivot (read them all here) to jobs and the economy since taking office. Below are a few facts and figures on what the Obama Economy has produced for the middle class to date. 

Economic Facts 

 The latest jobs report continues to show the economy plodding along at a very sluggish pace.

• In June, the unemployment rate was at 7.6 percent.
• The number of unemployed workers is 11.8 million. 
• The number of workers working part-time for economic reasons is 8.2 million. 
• Since the President took office, the average duration of unemployment has almost doubled from 19.8 weeks to 35.6 weeks. 
• President Obama's 'economic recovery' has produced 3.95 million fewer jobs than the average economic recovery.

Middle Class

Obama's economic policies have not been kind to the middle class

• Most recent Labor Department statistics show median earnings have fallen 4 percent since the recession ended, after adjusting for inflation.
• Gas Prices are up 19 cents from a year ago.
• Per capita disposable income has increased by only 2.3% since June 2009, well below the average for an economic recovery.

Manufacturing and Construction

When in doubt, the President seems to always turn to manufacturing and the housing market, unfortunately for the President, those markets haven’t done so well either under his Administration:

• Since Obama Took Office, we have lost 742,000 construction jobs. 
• Since Obama Took Office, we have lost 592,000 manufacturing jobs.  

Health Care

Finally, the President is expected to harp on rising health care costs and his plan to lower them for the middle class. As we have seen since 2010, the President's health care law has only hurt the middle class.

• The individual health insurance market may face premium increases of nearly 100 percent on average, with potential highs eclipsing 400 percent.
• Small businesses can expect average premium increases in the small group market of up to 50 percent, with potential highs over 100  percent.

 What They Are Saying About the President’s Pivot to Jobs – We’ve Seen It Before

“If President Barack Obama's new focus on the economy sounds familiar, that's because he's done it before.” (Obama’s latest economic push has familiar feel, Julie Pace, AP, July 22, 2013)

“We've seen this movie before. But will the ending be any different this time?” (Obama’s economic roadshow: Will more speeches matter?, Devin Dwyer, ABC News, July 22, 2013)

"President Obama will once again try to refocus the public’s attention and the political debate on the economy this week." (Obama pivots to the economy..again, Mary Bruce, ABC News, July 23, 2013)

"So what does the president do? He does what he does when things are going poorly: He hits the campaign trail with recycled rhetoric." (A stalled economy, a President out of steam, Jennifer Rubin, Washignton Post, July 22,2013)

Today, the President travels to Illinois to make his 19th pivot to jobs and the economy taking office.

DECEMBER 2009:  SIREN: White House plans 'very hard pivot to jobs' next month - Politico

JANUARY 2010:  “A sustained and relentless focus over the next several months on accelerating the pace of job creation, because that’s priority number one.” - Remarks by the President at the House Democratic Caucus Retreat

APRIL 2010:  Obama to Focus on jobs, rural economy in two-day Midwest trip - Bloomberg

MAY 2010: Democrats shifting focus back to jobs creation – New York Times

JUNE 2010: Obama, Biden declare 'recovery summer' - Politico

SEPTEMBER 2010: Obama launches a “hail-mary pass to stimulate the economy and create new jobs. – Miami Herald

DECEMBER 2010:  “We now have to pivot and focus on jobs and growth.” - News Conference by The President

JANUARY 2011: The White House has quickly pivoted to jobs  after the President’s State Of the Union – NBC News

APRIL 2011:  Obama’s day: turning back to jobs – USA Today

AUGUST 2011: Obama’s jobs pivot – Huffington Post

AUGUST 2011:  Obama ‘pivots’ to jobs – but what can he do? – Yahoo News

SEPTEMBER 2011: President Obama pivots to jobs – and dares GOP to follow – Politico

JUNE 2012: Obama to revisit economic debate – Wall Street Journal

JULY 2012: The jobs pivot: With the economy struggling, how does President Obama make the case to be reelected? - MSNBC

FEBRUARY 2013: Stung by media’s focus on liberal agenda, Obama pivots back to economy – National Journal

FEBRUARY 2013: Obama will pivot back to jobs in State of the Union – Associated Press

APRIL 2013: In Mexico visit, Obama to pivot from security to economy – Wall Street Journal

MAY 2013: Obama pivots to jobs tour at end of scandal filled week – ABC News

JULY 2013: Obama will pivot back to attacking Republicans on the economy in a series of policy speeches - Buzzfeed

This week the President has decided to once again shift his focus back to jobs and the economy. Welcome to the conversation, Mr. President!

House Republicans have never lost our focus on jobs. We have a plan to secure the future for all Americans by expanding opportunity, not expanding government.