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House Financial Services Committee Chairman Michael G.
Oxley (R-OH) is pleased with the comeback the American economy
has mounted over the past few months, and he knows just
who to thank.
"We have the largest investor class in the world and
these people get it," Rep. Oxley said at the American
Council for Capital Formation's June 24 Capital Formation
Forum. The Congressman noted that during the 23 years
he has served in the House of Representatives the percentage
of Americans owning stock has nearly tripled, rising from
19% to 52%.
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ACCF President Mark Bloomfield, Chairman Michael G. Oxley
and ACCF Chief Economist Margo Thorning. |
"We lost $7 trillion in market capitalization. It was a
tough period." Chairman Oxley said of the recent economic
recession. "Through 9/11, the technology bubble, corporate
scandals, these folks stayed put, [American investors] didn't
bail."
The fact that the economy, just a short time later, is once again
growing and creating jobs demonstrates an important lesson, according
to Rep. Oxley: "We can grow out of our problems."
That is one of the reasons why he is frustrated by recent efforts
to regulate the dispensation of stock options.
"We need regulation, but smart regulation. We can't over
regulate the markets," the Chairman said.
While Rep. Oxley does not believe that stock options were at
the root of the corporate scandals that plagued companies like
Enron, WorldCom, Global Crossing and others, he understands that
the public's appetite for greater corporate accountability needs
to be satisfied.
"If you think expensing was the problem, which I don't,
then [Rep. Richard H.] Baker's (R-LA) bill is a nice solution,
because it requires expensing for the top five executives."
Chairman Oxley worries that overburdening, entrepreneurs, which
rely heavily on stock options as a method of compensation, is
a direct attack on a valuable component of the U.S. economy.
"I get tired of people asking me, 'Where are the new jobs
going to come from?' They are going to come from someone's
head, that's where," Chairman Oxley said. "That
being the case, our job is to set the rules, have a reasonable
approach to the regulatory side, and get the hell out of the way."
Despite the fact that Rep. Oxley believes the "good guys"
are losing momentum on the options front, he is heartened by the
fact that Rep Jim DeMint's (R-SC) free-trade message led him to
victory in a recent Senate primary. (South Carolina Democratic
Senator Ernest Hollings will not seek reelection once his term
expires in 2005.)
"Protectionists need to change their ways," Rep. Oxley
said, exulting in the fact that political firestorm over outsourcing
has finally subsided. "You might as well try and keep the
tides from coming in," the Chairman said of those who oppose
free trade.
Rep. Oxley cited an automobile manufacturing plant in western
Ohio, which exports to 72 countries and counts Japan as its largest
market, as a model of free trade.
"That's the way it is supposed to be," Rep. Oxley said.
"We need a vibrant growing Europe and Japan because we are
in a global marketplace. That's just a fact."
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New Study Shows Costs of McCain/Lieberman
On
June 8, 2004, United for Jobs and the American Council for Capital
Formation released a study by Charles River Associates which demonstrates
the true costs to the American consumer of S. 139, the McCain-Lieberman
"Climate Stewardship Act." The study also provides
a state-by-state breakdown of economic impacts of the legislation.
In releasing the study, Dr. Margo Thorning, Senior Vice President
and Chief Economist for ACCF, said, "This legislation is
very costly, and comes at a time when our nation can least afford
it. By increasing the costs of energy, McCain-Lieberman
will lead to reduced economic output, fewer jobs and reduced household
income."
Among the key findings of the study:
- Household purchasing power would be reduced by as much as
$2,255 per family
- More than 600,000 U.S. jobs would be eliminated
- Electricity costs would be increased by 43%
- U.S. economic output reduced -- Gross National Product would
decline by 1.7%
Karen Kerrigan, President of the Small Business Survival Committee
and Co-Chair of United for Jobs said, "America's economy
is intrinsically linked to the availability and affordability
of energy. In order to build a strong economy and create
more jobs, we need reliable and affordable energy supplies.
By dramatically increasing the cost of energy for consumers and
businesses, McCain-Lieberman would have the opposite effect."
The study was commissioned from Charles River Associates by United
for Jobs and the American Council for Capital Formation.
Dr. Margo Thorning of ACCF also serves as an economic advisor
to United for Jobs.
United for Jobs (www.unitedforjobs2004.org) is a project of the
National Black Chamber of Commerce, Small Business Survival Committee,
Small Business Survival Committee and USA Next, a grassroots organization
of the United Seniors Association.
The full study can be accessed online at www.unitedforjobs2004.org
and www.accf.org.
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Sen. John F. Kerry (D-MA) Addresses ACCF
Forum
Presumptive
Democratic-presidential nominee and Massachusetts Senator John
F. Kerry addressed the American Council for Council Formation
at a Capital Formation Forum in December 1987.
For nearly thirty years the ACCF and the ACCF Center for Policy
Research have provided policymakers from both political parties
with an opportunity to discuss timely tax and economic issues
with company and association leaders. For more information
about the ACCF visit us online at www.accf.org.
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Rep. Charles B.
Rangel to Address ACCF in July
Representative
Charles B. Rangel (D-NY), Ranking Member, House Ways and Means
Committee and a member of the Joint Committee on Taxation, will
address an ACCF breakfast forum on July 15, 2004.
Rep. Rangel is a veteran of the ACCF's Capital Formation Forum
series, having addressed these sessions man times over the years.
Last year the Democratic leader on the House Ways and Means Committee
addressed ACCF members in April. The cost of the war in
Iraq along with President George W. Bush's budget proposal were
two of his primary concerns.
"We don't know the cost of rebuilding," Representative
Rangel said. "But sometimes when I hear what we're going
to do in Iraq, I can't wait to file my amendment to add my congressional
district."
Make sure to join us on July 15 to hear what Rep. Rangel has
to say about Iraq, the U.S. economy and the upcoming presidential
election. For more information or to register for this event,
please contact the ACCF at 202-293-5811 or mburrell@accf.org.
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Newsweek, Washington Post Columnist
Robert Samuelson Speaks to ACCF
Newsweek
and The Washington
Post columnist Robert Samuelson addressed the American Council
for Capital Formation's May 11 Capital Formation Forum in Washington
D.C. Mr. Samuelson discussed a variety of topical issues
with members of the ACCF, including the economy, the upcoming
presidential election and international relations.
Mr. Samuelson is an award winning columnist and author.
He writes a biweekly column for Newsweek and The Washington Post.
His columns are also syndicated to more than 75 newspapers worldwide.
In addition to analyzing and reporting socioeconomic issues in
his columns, Mr. Samuelson has written two books: The Good
Life and Its Discontents: The American Dream in the Age of Entitlement and Untruth: Why the Conventional Wisdom
Is (Almost Always) Wrong.
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125th ACCF Policy Evening Draws Top Policymakers,
Media
For
more than 20 years ACCF policy evenings have attracted leading
policymakers, diplomatic officers, administration officials, and
journalists. The ACCF hosted its 125th policy evening in
June. For more information about the ACCF's economic policy
evenings please visit us online at www.accf.org.
June dinner guested included Rep. Charles Bass (R-NH); Rep. Max
Sandlin (D-TX); Sen. Thad Cochran (R-MS); Nikhil Deogun, deputy
Washington bureau chief, The Wall Street Journal; Dr. Harvey
S. Rosen, member, President's Council of Economic Advisers; John
Parker, Washington bureau chief, The Economist; John M.
Grau, executive vice president and chief executive officer, National
Electrical Contractors Association; Thomas W. Rose, director of
public policy, TXU Business Services; Mark Bloomfield, president,
American Council for Capital Formation; Rep. Jim Davis (D-FL,
pictured at left) and Michael E. Kirst, director of government
and international affairs, Westinghouse Electric Company.
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