E&W Blog

The Committee held its first workforce hearing of the 119th Congress which contrasted the Biden-Harris administration’s heavy-handed mandates with President Trump’s promises to enact pro-growth policies. 

Too many businesses are struggling to fill the millions of open positions in the United States. This ongoing worker shortage was exacerbated by Democrats’ COVID policies that rewarded Americans for staying home—and out of the workforce. Democrat “stimulus” spending hampered job creation, fueled a massive inflation crisis, and made more Americans dependent on the federal government.
Chairman Tim Walberg (R-MI) kicked off the hearing by pointing out, “[A]s a result of the Biden-Harris administration’s reckless spending spree, American families and businesses were rocked by record-high inflation, which hit a 40-year high in 2022. Workers saw their standard of living decline as inflation outpaced average wage growth.” 

Workers and job creators are hopeful for pro-growth economic policies that will unleash the ingenuity and entrepreneurial spirit of the American workforce. Under the Biden-Harris administration, workers, job creators, and families got a job-killing and inflation-driving regulatory blitz.
The Committee’s Vice Chairman Rep. Burgess Owens (R-UT) discussed franchising and the American Dream, “I understand firsthand the passion of an entrepreneur who wants to craft and control his own future.” Ms. Rosanna Maietta, President and CEO, American Hotel and Lodging Association, said, “The franchise model in our industry is the epitome of the American Dream.” But the Biden-Harris joint employer rule would have added “more uncertainty and burdensome regulations to an already stressed small business owner exacerbates the challenges that they have day to day. … Last year alone operating costs [rose] twice as fast as revenue. More uncertainty creates even greater stress for many owners who are questioning whether they can stay in business.”  
Rep. Messmer (R-IN) asked Dr. William Beach, Senior Fellow in Economics, Economic Policy Innovation Center, if the burden of regulation, which has grown significantly since 1980, has reduced economic growth. Dr. Beach said, “It most definitely has.” Keep in mind, a recent study from the American Action Forum found that the Biden administration issued a staggering $1.8 trillion in cumulative regulatory costs over four years, far exceeding any preceding administration on record. 
Rep. Mark Harris (R-NC) also highlighted the harm of regulations and cited Dr. Beach’s testimony: “Regulations function as a hidden tax, siphoning resources away from productive use. Businesses must redirect capital toward compliance instead of expanding current operations and researching new technological breakthroughs.” 
It’s not all bad news. Rep. Mary Miller (R-IL) asked Ms. Elizabeth Milito, Executive Director, National Federation of Independent Business Small Business Legal Center, if it’s true that small business optimism surged since President Trump’s election. Milito said, “Yes, it’s very true. The Trump effect is real. It surged in 2018 too. Small business owners are anxious for President Trump to get started on his regulatory roll back. As the Chairman said in his opening statement, President Biden’s policies hampered job creation. ... My members are very happy and are looking forward to blue skies ahead.” 

Democrats used the hearing to complain about the Trump administration’s efforts to root out waste, fraud, and abuse. This shows how out of touch they are given that recent polling indicates 77 percent support a “full examination of all government expenditures”; 72 percent agree there should be a government agency “focused on efficiency”; and 70 percent say government is “filled with waste, fraud, and inefficiency.”

Bottom line: The Biden-Harris administration’s overregulation negatively affected American workers and job creators. The Trump administration and congressional Republican policies will get the economy and workforce back on track.