Jul 5, 2016

The Innovation Initiative Fulfills the Promise of the JOBS Act

Washington, D.C. – House Majority Leader Kevin McCarthy (CA-23) spoke on the House floor today in favor of two Innovation Initiative bills, H.R. 4845, the Supporting America’s Innovators Act, and H.R. 4855, the Fix Crowdfunding Act.

Full remarks are below or watch online here.

“I thank the gentleman for yielding, and I want to take this moment to not only thank the subcommittee chair but thank the ranking member and Congressman McHenry (NC-10) for their bipartisan work on this bill and bringing it to the floor. 

“Mr. Speaker, it is clear that many—too many—communities are still trying to pull themselves up after the past eight years of economic stagnation. Some have succeeded, but the current system has left millions of people behind with a long road of recovery left to go.  

“Now, the House is not blind to it, and we recognize like so many others that an anti-competitive state is depriving us of our ability to prosper. That is why we started the Innovation Initiative and why this bill is so important.  

“Four years ago, Congress came together to pass the JOBS Act—a bill that provided small businesses and entrepreneurs more ways to raise capital investment. Now, this wasn’t a banker’s bill. It was a bill that opened the door for members of our communities to invest in ideas that could create good-paying jobs, provide goods and services, and increase the quality of life for the American people in their community.  

“After all, it is small businesses that have created two-thirds of all net new jobs since the 1970s. But while small businesses remain the cornerstone of our economy, the federal government has made it harder and harder to start one. 

The entry of new businesses in the United States has declined by nearly 44 percent since the late 1970s. Starting a business has been especially hard in the recent years. The policies today after seven and a half years under President Obama are not a roadmap for those looking for a better way.  

“The JOBS Act was a good start to creating a more dynamic economy. But it was never followed through after the bill’s initial success. These bills today are targeted fixes to restore the original spirit of the JOBS Act: To harness innovation and bring together millions of Americans with potential new businesses through crowdfunding. These new businesses could become the next Apple or Under Amour. They could revitalize the most downtrodden communities who were hardest hit by the recession and faced the slowest recovery. 

“Now, a couple weeks ago I was in Baltimore visiting a cyber-security startup. The work they do to protect cyber networks is growing more important by the day, and by engaging with a changing world—using the power of innovation to improve our security—this startup also lifted up the community and helped it to thrive. 

“Today, ZeroFOX has ushered in a new era for their South Baltimore community. That community is part of the future, helping our country become a better place. This is the power of the innovation economy. This is what we are voting for to support. This is how America has a better and brighter future.  

“I yield back.”