House Budget Committee hearing: U.S. Economic Outlook

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The Congressional Budget Office's report generated a fair number of sound bites. I going to watch the 2 and a half hour testimony and just update this thread as I go. Feel free to chime in at any time.

In Paul Ryan's, the Budget Committee Chairman, introductory comments stated that the three challenges to be overcome to get the economy going again are: tax reform, regulatory reform, and energy development. Tax reform; I can see how that is a major issue. Regulatory reform; maybe, is that really one of the top three challenges the nation faces? Energy development; now why would the chairman of the Budget Committee think energy development if one of the top three economic challenges? Are we talking national interests here or personal interests?

 

[Bombur]

The Congressional Budget Office's report generated a fair number of sound bites. I going to watch the 2 and a half hour testimony and just update this thread as I go. Feel free to chime in at any time.

In Paul Ryan's, the Budget Committee Chairman, introductory comments stated that the three challenges to be overcome to get the economy going again are: tax reform, regulatory reform, and energy development. Tax reform; I can see how that is a major issue. Regulatory reform; maybe, is that really one of the top three challenges the nation faces? Energy development; now why would the chairman of the Budget Committee think energy development if one of the top three economic challenges? Are we talking national interests here or personal interests?

Those are the three pillars of Republican politics. Lower taxes, get rid of regulation, and drill baby drill.

 

[Meister]

The Congressional Budget Office's report generated a fair number of sound bites. I going to watch the 2 and a half hour testimony and just update this thread as I go. Feel free to chime in at any time.

In Paul Ryan's, the Budget Committee Chairman, introductory comments stated that the three challenges to be overcome to get the economy going again are: tax reform, regulatory reform, and energy development. Tax reform; I can see how that is a major issue. Regulatory reform; maybe, is that really one of the top three challenges the nation faces? Energy development; now why would the chairman of the Budget Committee think energy development if one of the top three economic challenges? Are we talking national interests here or personal interests?

Those are the three pillars of Republican politics. Lower taxes, get rid of regulation, and drill baby drill.

I agree with 2 of your 3 pillars.
Lower taxes, DON'T over regulate, and drill baby drill.
Those would be a good recipe for a recovering economy.

 

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Ryan, in his opening questioning of Douglas Elmendorf, Director of the Congressional Budget Office, stated that because the opportunity was missed by not passing the Ryan budget for the last three years and completely gutting entitlements we have the budget problem we do today. So if Ryan and the Congressional Republicans had been able to perform the Draconian cuts to entitlements three years ago would this country be so much better off? Whose policy is good for the country and whose is not?

 

[Mr. H.]

The Congressional Budget Office's report generated a fair number of sound bites. I going to watch the 2 and a half hour testimony and just update this thread as I go. Feel free to chime in at any time.

In Paul Ryan's, the Budget Committee Chairman, introductory comments stated that the three challenges to be overcome to get the economy going again are: tax reform, regulatory reform, and energy development. Tax reform; I can see how that is a major issue. Regulatory reform; maybe, is that really one of the top three challenges the nation faces? Energy development; now why would the chairman of the Budget Committee think energy development if one of the top three economic challenges? Are we talking national interests here or personal interests?

Those are the three pillars of Republican politics. Lower taxes, get rid of regulation, and drill baby drill.

The oil and gas industries are really the only two bright spots in this lethargic economy. Why is unemployment in North Dakota under 3%.

The concern stems from the government's reluctance to embrace hydraulic fracturing on public lands, as well as their implementation of the Endangered Species Act. Outright bans on drilling the eastern Gulf, the OCS, and ANWR are also of concern. And there is a real threat to tax policy with regards to IDC's and Percentage Depletion.

Obama may imbrace natural gas in his flowery speeches, but he's out to kill hydrocarbons period.

 

[Bombur]

The Congressional Budget Office's report generated a fair number of sound bites. I going to watch the 2 and a half hour testimony and just update this thread as I go. Feel free to chime in at any time.

In Paul Ryan's, the Budget Committee Chairman, introductory comments stated that the three challenges to be overcome to get the economy going again are: tax reform, regulatory reform, and energy development. Tax reform; I can see how that is a major issue. Regulatory reform; maybe, is that really one of the top three challenges the nation faces? Energy development; now why would the chairman of the Budget Committee think energy development if one of the top three economic challenges? Are we talking national interests here or personal interests?

Those are the three pillars of Republican politics. Lower taxes, get rid of regulation, and drill baby drill.

The oil and gas industries are really the only two bright spots in this lethargic economy. Why is unemployment in North Dakota under 3%.

The concern stems from the government's reluctance to embrace hydraulic fracturing on public lands, as well as their implementation of the Endangered Species Act. Outright bans on drilling the eastern Gulf, the OCS, and ANWR are also of concern. And there is a real threat to tax policy with regards to IDC's and Percentage Depletion.

Obama may imbrace natural gas in his flowery speeches, but he's out to kill hydrocarbons period.

It would be great for the economy in the short term to get all of the oil and natural gas out of the ground ASAP. In the long run that doesn't make a lot of sense. Price of oil and natural gas will only go up over time relative to inflation.

 

[nodoginnafight]

The oil and gas industries are really the only two bright spots in this lethargic economy. Why is unemployment in North Dakota under 3%.

Becuase they have 37 people living there. When a new convenience store opens it cuts unemployment by 23%.

Isn't the oil industry a big component in the gulf coast region - how's the unemployment rate in mississippi, louisianna, alabama???

Energy development goes well beyond oil and gas (and drill baby drill). Or at least it should. Energy costs are killing Americans and it gives them a lot less to spend on other things.

The oil companies are actually a big part of the problem. It's not a lack of oil or the cost of oil overseas that is causing ultra high gasoline prices. In april of 2006 the average price of a gallon of gas was $2.60 and the cost of a barrel of oil was $70. In May of 2007 a barrel of oil cost $63 and a gallon of gall was $3.07.

Oil companies have bought and shut down refineries (200 since 1980) and while the demand for gas has risen - not a single new refinery has been built since 1976.

Oil companies have reduced refining capacity in order to drive up the price of gas.

We don't need more oil - we need alternative sources of energy and we need to use anti-trust laws to de-centralize the control of energy supplies from exploration to end user.

 

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Information from Rep. Hollen's questions:

• No part-time employment increase due to the ACA, in other words people are not being forced from full-time to part-time employment.
• Over the near and long terms the ACA reduces national deficits, which in turn spurs economic growth.
• ACA will boost the demand for goods and services over the next few years, the net boost for goods and services will boost the demand for labor (page 125)

[I am sure none of that is new to anyone given this country's extremely liberal bias media who tries to make the Republicans look bad at every opportunity. ]

Rep. Hollen also pointed out that revenue is currently about 19% of GDP, one of the lowest ratios in history. The extra cost of the baby boomers will put a strain on the economic system. The "no new taxes", no tax increase on anything/anywhere, pledge will force drastic cuts from somewhere such as defense or R&D.

 

[Mr. H.]

The oil and gas industries are really the only two bright spots in this lethargic economy. Why is unemployment in North Dakota under 3%.

Becuase they have 37 people living there. When a new convenience store opens it cuts unemployment by 23%.

Isn't the oil industry a big component in the gulf coast region - how's the unemployment rate in mississippi, louisianna, alabama???

Energy development goes well beyond oil and gas (and drill baby drill). Or at least it should. Energy costs are killing Americans and it gives them a lot less to spend on other things.

The oil companies are actually a big part of the problem. It's not a lack of oil or the cost of oil overseas that is causing ultra high gasoline prices. In april of 2006 the average price of a gallon of gas was $2.60 and the cost of a barrel of oil was $70. In May of 2007 a barrel of oil cost $63 and a gallon of gall was $3.07.

Oil companies have bought and shut down refineries (200 since 1980) and while the demand for gas has risen - not a single new refinery has been built since 1976.

Oil companies have reduced refining capacity in order to drive up the price of gas.

We don't need more oil - we need alternative sources of energy and we need to use anti-trust laws to de-centralize the control of energy supplies from exploration to end user.

Looks to me like refining capacities have remained constant over the past 7 years...

U.S. Refinery Utilization and Capacity

If we don't need more oil, why are we importing 10 million barrels every day?

U.S. Total Crude Oil and Products Imports

There are literally thousands of entities involved in the exploration, drilling, transportation, refining, distribution, and marketing of oil and gas.

Oil and Gas Industry Players

What purpose would anti-trust laws serve?

 

[RandomVariable]

The Congressional Budget Office's report generated a fair number of sound bites. I going to watch the 2 and a half hour testimony and just update this thread as I go. Feel free to chime in at any time.

In Paul Ryan's, the Budget Committee Chairman, introductory comments stated that the three challenges to be overcome to get the economy going again are: tax reform, regulatory reform, and energy development. Tax reform; I can see how that is a major issue. Regulatory reform; maybe, is that really one of the top three challenges the nation faces? Energy development; now why would the chairman of the Budget Committee think energy development if one of the top three economic challenges? Are we talking national interests here or personal interests?

Those are the three pillars of Republican politics. Lower taxes, get rid of regulation, and drill baby drill.

I agree with 2 of your 3 pillars.
Lower taxes, DON'T over regulate, and drill baby drill.
Those would be a good recipe for a recovering economy.

My primary concern with energy development being one of the three pillars of economic growth is that it is only one industry. Granted it might have been the industry which contributed to the most to Ryan's campaign but as a nation all industries should be part of a growing economy.

 

[nodoginnafight]

Looks to me like refining capacities have remained constant over the past 7 years...

They've "been constant" since they finished closing the last of the 200 in 2007.
So with the demand going up, why no new refineries since 1976?

The supply of oil isn't what is driving the price of gasoline so high - it is the lack of refining capacity. So why "drill baby drill" to get more oil when we cannot refine all that is available to us now?

 

[nodoginnafight]

Those are the three pillars of Republican politics. Lower taxes, get rid of regulation, and drill baby drill.

I agree with 2 of your 3 pillars.
Lower taxes, DON'T over regulate, and drill baby drill.
Those would be a good recipe for a recovering economy.

My primary concern with energy development being one of the three pillars of economic growth is that it is only one industry. Granted it might have been the industry which contributed to the most to Ryan's campaign but as a nation all industries should be part of a growing economy.

The price of energy touches every aspect of the American economy imho.

 

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I agree with 2 of your 3 pillars.
Lower taxes, DON'T over regulate, and drill baby drill.
Those would be a good recipe for a recovering economy.

My primary concern with energy development being one of the three pillars of economic growth is that it is only one industry. Granted it might have been the industry which contributed to the most to Ryan's campaign but as a nation all industries should be part of a growing economy.

The price of energy touches every aspect of the American economy imho.

As does many other industries. As a national leader, in this case chairman of the House Budget Committee, one can not say, "This one particular industry is the most important for the growth of the nation." OK, well which is number 2? Number 3? Number 429th?

I do agree that energy policy is extremely important and a strategic asset of this country.

 

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[I just posted this in another thread but since it is from the hearing I will also post it here.]

As chance would have it I am watching the House Budget Committee Hearing of the 2014 Economic Outlook. The Congress Budget Office did an assessment of the immigration reform bill which passed the Senate last year and determined that the effects would be reduced deficits and a stronger economy and "lead to higher output per person in this country." The reason is the composition of the new people would be younger, skilled labor who would be paying into the system and not collecting benefits for several years to come.

 

[nodoginnafight]

My primary concern with energy development being one of the three pillars of economic growth is that it is only one industry. Granted it might have been the industry which contributed to the most to Ryan's campaign but as a nation all industries should be part of a growing economy.

The price of energy touches every aspect of the American economy imho.

As does many other industries. As a national leader, in this case chairman of the House Budget Committee, one can not say, "This one particular industry is the most important for the growth of the nation." OK, well which is number 2? Number 3? Number 429th?

I do agree that energy policy is extremely important and a strategic asset of this country.

I agree. I'm not sure energy is #1, but the high cost of energy is a tremendous drag on the economy.

 

[Bombur]

The price of energy touches every aspect of the American economy imho.

As does many other industries. As a national leader, in this case chairman of the House Budget Committee, one can not say, "This one particular industry is the most important for the growth of the nation." OK, well which is number 2? Number 3? Number 429th?

I do agree that energy policy is extremely important and a strategic asset of this country.

I agree. I'm not sure energy is #1, but the high cost of energy is a tremendous drag on the economy.

This is true in both the short and the long term.

 

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The price of energy touches every aspect of the American economy imho.

As does many other industries. As a national leader, in this case chairman of the House Budget Committee, one can not say, "This one particular industry is the most important for the growth of the nation." OK, well which is number 2? Number 3? Number 429th?

I do agree that energy policy is extremely important and a strategic asset of this country.

I agree. I'm not sure energy is #1, but the high cost of energy is a tremendous drag on the economy.

This might be a really bad analogy but I think that more than the cost of energy being the problem it is the money flow in the energy industry. With energy when people buy gas for example that goes up into a very small pool of people/organizations. With bread for example, one buys a loaf of bread from the supermarket, who bought it from the wholesaler, who bought it from the the baker, who bought the grain from... Along the way everyone pays some tax on each transaction. With energy the monies are taxed a couple times and then disappears into the land of tax exempt/invisible billions. It is like the water cycle except someone is hoarding all the water. So it is not the high cost of energy which is a drag on the economy per se but the fact that the high cost is money out of the system.

 

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Something Rep. Pascrell (D-NJ) just worked out. The so-called jobs lost because of the ACA do not add to the unemployment rate. If they were 'unemployed' at the time then there is one less person unemployed. If they were employed then that position would be replaced by someone who was unemployed. Either way I don't see how it reduces the labor market, at least not the number of individuals working.

 

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I am still working my way through the hearing. Question about the unemployment insurance extension bill from Rep. Lee (D-CA). Chairman of the CBO Elmendorf stated that passing the bill would result in a 1/4 increase in GDP for the year, add "a couple hundred thousand people to the ranks of the employed", and some people below the poverty line would end up above the poverty line.

 

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Rep. Flores (R-TX) was amusing when he was trying to ask about the "23 million jobs lost" because he knew it was a lie and would be corrected. He kept trying to rephrase it in a way so that he won't and just gave up. He did give an answer as to way government regulation was harming the economy so much, "one of the reasons labor participation rate is so low is because employers have decided that they can't hire those types of employees and where they stand so their employee base is given up." Could this possibly be related to other legislation currently be considered? Or should I say blocked?