WASHINGTON, Feb. 24 (UPI) -- Business may drive U.S. economic growth but the federal government plays a critical role in sustaining that growth, President Barack Obama said Wednesday.
"(Government) has a vital, if limited, role to play in fostering sustained economic growth," Obama said before the Business Roundtable in Washington. "Throughout our history, it has done so in three ways," establishing rules of the marketplace, making investments in goods that serve the general welfare but are too expensive for individuals or firms to buy on their own and providing a social safety net that guarantees a basic level of security.
"(We) have arrived at a juncture in our politics where reasonable efforts to update our regulations, or make basic investments in our future, are too often greeted with cries of 'government takeover' or even 'socialism,'" he said. "Not only does that kind of rhetoric deny our history, but it prevents us from asking hard questions about the right balance between the private and public sectors."
Obama repeated several economic themes he voiced during recent business comments, including taking steps to unfreeze credit and provide small businesses tax incentives easier access to loans. He also repeated his proposal to collect fees from entities that received bailout funds to recoup all of the taxpayer money included in the bailout.
Obama expressed pleasure that the U.S. Senate passed a bill that would provide a series of tax credits for small businesses that hire more workers.
Beyond the immediate requirements of economic recovery, Obama said, laying a foundation for a more competitive United states is critical.
Improving the nation's competition stature starts with investments in innovation, education, a 21st century infrastructure and government reform, he said, adding. "we are making investments that will lead to new products and services that will help America compete on the world stage."
The president noted he set a goal of doubling U.S. exports over the next five years, which would support 2 million jobs.
He warned, however, "we simply cannot cede more jobs or markets to unfair trade practices. ... Other countries ... have been able to align the interests of workers, businesses, and government around trade agreements that open new markets and create new jobs. We must do the same."
Obama also called for a move to clean technology, expressed gratitude for the congressional passage of pay-as-you-go legislation and called for healthcare reform before discussing tax issues, or as he put it, "the best for last."
Obama said he made three tax-related promises during his campaign -- a tax cut for 95 percent of Americans, a move to tax people making more than $250,000 at rates from the 1990s and end tax incentives for companies that send jobs overseas.
"(As) president of the United States, my interest is to reward -- or at least not disadvantage -- companies who are creating more jobs and doing more business within the borders of this country," Obama said. "That's not anti-business, it's pro-America, and I don't apologize for it."
