October 31, 2011

Jobs 

 

Doing Business in the U.S. Getting Harder Under President Obama:  According to the World Bank, “Doing Business” in the U.S. is getting considerably more difficult under the watch of the Obama Administration. As reported by the Wall Street Journal, “In 2007, the U.S. ranked third in the ‘ease of starting a business’ category. This year it ranks 13th. On the ‘paying taxes’ front we’ve dropped to 72nd place from 63rd. The cost of starting a business, measured as a percentage of per capita income, has doubled to 1.4% from 0.7% in 2007. On ‘ease of registering property’ the U.S. has dropped to 16th from tenth. In the ‘trading across borders’ category, we’ve dropped nine spots to 20th. In 2007, the ‘cost to import,’ as measured in dollars per container, was $625. Today it’s more than doubled to $1,315.”

 

Spending

 

U.S. Debt Set to Surpass GDP for the First Time Since WWII:  Ford the first time since World War II, U.S. debt is set to surpass U.S. gross domestic product (GDP) by the end of this month.  According to the Treasury Department, total outstanding U.S. was $14.94 trillion on October 27.  The Bureau of Economic Analysis reported that U.S. GDP in the second quarter of 2011 was $15.012 trillion.  With upcoming Treasury auctions scheduled in the final week of the month, GDP will almost certainly be surpassed by national debt in early November.

 

Medicare

 

Social Security and Medicare Growing; Medicare Faster:  In his testimony to the Joint Select Committee on Deficit Reduction, CBO Director Douglas Elmendorf explains “spending for Social Security, which totaled 3.3 percent of GDP in 1971, will equal 4.8 percent in 2011 and is projected to continue growing over the next 10 years, reaching 5.4 percent in 2021.  Medicare spending (excluding offsetting receipts) is projected to grow even faster, relative to the overall economy, from 0.7 percent of GDP in 1971 to 3.7 percent in 2011 and 4.1 percent in 2021.”

 

The Republican Plan for Job Creation and Growth

 

House Republicans have a plan to restore confidence and certainty to the economy and create jobs.  For more information on the House Republican Growth Plan, click here: http://www.gop.gov/indepth/jobs.

If you have any questions or would like to submit an idea for next week’s “Tri-Facta,” please contact david.rosenfeld@mail.house.gov.