Rubio: “This new post-industrial economy creates very real opportunities. The problem we face is that we’re facing the full brunt of the challenges, but we’re not capitalizing on enough of those opportunities. And one of the reasons why is because our institutions, our laws and Washington D.C. has not caught up to that reality.”
U.S. Senator Marco Rubio
Bloomberg’s “Street Smart”
March 11, 2014
Senator Marco Rubio: “There’s this notion out there that our economic problems are directly linked to the downturn in the 2007 economy and the ramifications of that thereafter. And that’s certainly a part of it. But my argument is that what we’re facing here is much deeper than that. It has to do with systemic changes in the very nature of our economy. It’s a global economy. Automation is real. And the result is that people have found jobs that they once relied on to get to the middle class, those jobs have been outsourced or those jobs have been turned into machines. And so my argument is the 21st century isn’t just about challenges, it’s also about opportunities. This new post-industrial economy creates very real opportunities. The problem we face is that we’re facing the full brunt of the challenges, but we’re not capitalizing on enough of those opportunities.
“And one of the reasons why is because our institutions, our laws and Washington D.C. has not caught up to that reality. We’re still trying to treat this like a cyclical downturn as opposed to what it is — and that is a change in the very nature of our economic lives.”
Rubio: “I think that the fundamentals of what it takes to grow the economy and create opportunity are never going to change. They’re based on three things: expanding markets, encouraging innovation and encouraging investment. And so my question now is in a globally competitive economy, where there are more countries than ever trying to do what we’ve done in the past, how do we position America to be able to successfully compete? And so what we need, for example on the tax code, is a tax code that encourages companies to invest their profits back in the U.S. You look at the balance sheets of American corporations, they’ve never been healthier in terms of cash. But they’re holding on to a lot of that cash — by some estimates four to five trillion dollars, which is shockingly the same as the size of the German economy, the fourth largest economy in the world.
“So if we had a corporate tax rate that encouraged, and a corporate tax code, that actually told companies, ‘The more you invest, the less you’re going to pay in taxes,’ that would encourage the creation of new businesses, the expansion of existing ones. The same with innovation. We have a regulatory framework that discourages innovation. It actually, in many instances, favors incumbent companies at the expense of those who might compete against them and create brand new ideas.
“And as far as market access is concerned, we need to open up more of our strategic advantages to sale, like natural gas and oil, but also free trade. I mean, we are only four percent of the world’s population. If we want to dramatically grow the size of our economy, we have to sell to the other 96% of the world. And as more and more countries move toward free trade, it places our products at a competitive disadvantage.”