The Good, the Bad, and the Unworkable
The Good
Last week, Vaughan-Bassett Furniture in Galax announced that they have purchased, and will re-open, the old Webb factory and also expand their current facility. Roughly 115 new jobs will be created as part of the expansion, in addition to the opening of the Albany Industries plant last fall. Together they may add 450 jobs in Galax. This announcement is welcome news for the Ninth District and illustrates Vaughan-Bassett’s commitment to its community and American manufacturing. To their credit, when many American manufacturers left for overseas or were forced to shut their doors, Vaughan-Bassett stayed put and succeeded right here in Virginia. Vaughan-Bassett’s success proves that there’s still a place for quality products “Made in the USA.”
The Bad
However, just when it appears the economy is on the upward swing, we get bad news. Late last week, Kroger announced the closings of the Bluefield Beverage plant and a grocery store in the Bluefield area. In total, 164 jobs are expected to be impacted. Today’s uncertain economic climate is making it difficult for some businesses to keep their doors open even as the economy starts to move again. Predictability from government will make it easier for companies to invest in the United States and keep valuable jobs here at home.
The Unworkable Rhetoric of the State of the Union
Much like President Obama’s 2010 and 2011 speeches, last week’s State of the Union speech was filled with lofty rhetoric, platitudes, and vague promises. While he talks a good game, the actual results -- three years of failed economic policies and stifling government overreach -- leave a lot to be desired.
For example, in his speech, the President said colleges and universities have to do their part to keep costs (i.e. tuition) down for those seeking higher education or he would cut their federal funding. Controlling costs is made more difficult for many institutions because the boilers they use are being targeted by the Boiler MACT (maximum achievable control technology) rules. The money to comply with these regulations has to come from somewhere, most likely tuition increases or pay cuts for university employees. Purdue University and the University of Notre Dame both testified before the House Energy and Commerce Committee that these rules would be expensive and difficult to comply with in the time allowed. Regrettably, while the President says one thing about the costs of higher education, his energy policies continue to push those costs higher.
President Obama also said, “this country needs an all-out, all-of-the-above strategy that develops every available source of American energy.” While I wholeheartedly agree with this statement, the President’s actions do not. For example, his Administration recently rejected the Keystone XL pipeline permit, which would bring safe, reliable energy from our trusted Canadian allies while creating thousands of American jobs. Permits for mining and oil exploration have been held up, and a steady of stream of unworkable, burdensome regulations like Boiler MACT and Utility MACT continue to flow. We have an abundance of reliable and affordable energy sources right here in the United States, and we need our government to be less of a hindrance in accessing them.
Unreasonable regulations, like the Utility MACT rule that targets coal-fired power plants, are contributing to higher energy costs, hurting America’s fragile economy. Just last week, FirstEnergy Corp. announced that they will retire six coal-fired power plants in Ohio, Pennsylvania and Maryland in 2012 because of the costs associated with EPA regulations. Approximately 530 jobs will be affected. By the same token, last year Appalachian Power announced that they will be forced to retire coal-powered units in Southwest Virginia, impacting jobs in our area as well.
Of course, there is one energy source especially near and dear to Southwest Virginia that President Obama failed to mention in his speech -- coal. No reference of coal as part of the President’s energy plan was particularly disappointing and speaks volumes about his past record and future intentions. Since taking office, the President and his EPA have, in my opinion, waged a war on coal, holding up mining permits and making it more difficult to produce and use coal.
In the United States, more electricity is generated by coal than any other single source. If we want to keep energy affordable for hardworking families and small businesses, we need to access and use our domestic coal here at home. The President’s blueprint features an economy built on American manufacturing. However, America’s manufacturers need affordable energy to make competitive products and create jobs. Coal, as well as natural gas, must be a part of this equation. The Ninth District’s backyard has an abundance of coal and natural gas ready to help power America’s economic recovery.
February Traveling Staff Office Hours
To better serve you, throughout the month of February, members of my staff will be holding traveling office hours around the Ninth District. If you would like to request assistance with a federal agency or voice your opinion on a legislative issue, my staff will be available in various locations. A complete schedule of upcoming office hours can be found on my website.
As always, if you have questions, concerns, or comments, feel free to contact my offices. You can call my Abingdon office at 276-525-1405 or my Christiansburg office at 540-381-5671. To reach my office via email, please visit my website at www.morgangriffith.house.gov.
