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Blog: Question of the Week: Creating Jobs


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These questions are culled from phone calls, letters, faxes and e-mails sent to Rep. Gallegly's Camarillo, Solvang, and Washington offices. Each week Rep. Gallegly adds another question and answer. Please add your comments.

May 6, 2011

Question: Private employers added 244,000 jobs in April, but the unemployment rate rose and an estimated 13.7 million people are still looking for work. What can Congress do to help private employers create more jobs?

Answer: One of the most important ways Congress can stimulate job creation is to reduce unnecessary federal regulations. Last year, the Obama Administration estimated that federal regulations cost our economy $1.75 trillion. To put this into perspective, that is approximately the amount of income taxes collected by the federal government.

The problem is getting worse. During 2009 and 2010, federal agencies proposed more than 130 new major rules, each of which are estimated to cost the economy at least another $100 million.

Unfortunately, too many of these federal regulations are unnecessary and overly burdensome to employers. Overregulation increases consumer prices as businesses pass along the cost of complying with unnecessary regulations. It is also a significant drag on economic growth. Employers are forced to divert time and money to comply with unnecessary regulations rather than concentrating on product development and investing in employees.

I am a cosponsor of H.R. 10, the Regulations From the Executive in Need of Scrutiny (REINS) Act of 2011, which will require that Congress approve any new regulation that would cost the economy more than $100 million. The House Judiciary Committee, of which I am a senior member, is continuing to develop more proposals that will reduce unnecessary regulations on employers, allowing them to focus on creating more jobs.

For more information on my positions on economic issues, please see my Economy issues page.

For previous Questions of the Week chronologically and by topic, please see my Questions of the Week page.

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