Special Edition: The State of American Business

Today, the U.S. Chamber of Commerce issued The State of American Business 2009 report. It's not a news flash to say that these are difficult and troubling times for millions of American businesses, workers, and families. The nation is in a recession, credit remains tight, jobs are scarce, and confidence is low. And there are more difficult months ahead. But if we collectively make the right decisions, then our nation has an extraordinary opportunity to emerge from this crisis stronger than ever.

The bad news first--Chamber economists anticipate that the fourth quarter of 2008 will show a GDP decline of at least 5%. We expect GDP to decline by more than 3% in the first quarter of 2009. Joblessness will continue to increase, with the unemployment rate possibly reaching 9% later in the year. Policymakers must respond by putting economic recovery and job creation at the top of the agenda. The early days of the Obama administration will be critical for American workers and businesses as Congress and the new president work out the details of a very large stimulus package. The Chamber is encouraged that new tax relief measures could be included in the stimulus bill and looks forward to working with President Obama to ensure that they are targeted to spur economic growth and job creation. We are cautiously optimistic about proposals to increase investment in our crumbling infrastructure networks, fund new energy technologies, and institute a national health care information technology system.

Now the good news--no matter what our current problems, we must not forget that the United States still has the strongest, most competitive economy in the world. This is due in large part to our strong entrepreneurial spirit. Americans aren't afraid to take a risk; when we fail, we simply pick ourselves up and try again. Our nation's advantages are numerous--we have the best universities, the most productive workers, and the most innovative companies. This is a strong foundation to build upon.

The burden now falls on our lawmakers to unleash the potential of our businesses and workers by enacting smart, pro-growth policies. Passing a major stimulus package is an important first--but hardly the only--step. Next week, I will outline the major ways that we must reform our economy to make it even more productive and prosperous in the years ahead.

We are living in a time of great change and uncertainty. If recent history has shown one thing, it's to never bet against America.

To learn more about The State of American Business, visit uschamber.com/sab.