Scalia talks about the trump administrations economic Recovery Efforts in the wake of the coronavirus pandemic. This event hosted by the Heritage Foundation was held by videoconference. I would like to introduce a great friend of the Heritage Foundation and wonderful member of the administration to work with. It is fitting that we have with us today secretary of labor eugene scalia. A secretary he plays a Critical Role in the american recovery from covid19. The Labor Department has a central role in overseeing the new federal programs created to help workers and their families respond to the coronavirus. Secretary scalia has been an outstanding advocate for protecting American Workers during the crisis and removing unnecessary regulatory burdens that will hinder our recovery. Donald trump has called them one of the most qualified people ever confirmed as secretary and we are truly honored to have him with us today. Secretary scalia, thank you for joining us today for the release of this important report, the floor is yours. Thank you for that introduction and its a pleasure to join us the Heritage Foundation releases the thoughtful final report of its Recovery Commission. At the start of this year americans enjoyed a recordsetting economy though it wasnt the economy the Congressional Budget Office had predicted in the summer of 2016. Back then the cbo said by february of this year we would have an Unemployment Rate of 5 and would have created 1. 9 million jobs. In fact in february unemployment was 3. 5 in our economy created 1. 9 million jobs but 7 million since january of 2017. Wage growth had been at or above 3 for 19 straight months. As donald trump says in his state of the Union Address this was a bluecollar boom. Workers in the bottom 10 of income saw higher average wage growth than those in the top 10 . By january of 2020 low income earners had seen a 15 pay increase since the president took office. In his state of the union speech donald trump explained how we got there, quote, from the instant i took office i moved rapidly to revive the us economy, cutting a Record Number of job killing regulations and enacting historic and recordsetting tax cuts fighting for fair and reciprocal trade agreements. Donald trumps policy decisions led to a vibrant prosperous economy, when we all enjoyed until a few months ago. Then in a matter of days life changed completely. The coronavirus sent the nation into hibernation, shops and factories closed, freeways and airports were emptied, society itself was halted. Bars and restaurants, concert halls, sports stadiums, even places abortion fell silent. Many thousands of american lives were lost in little more than 2 months, 40 million unemployment claims were filed. The president was right to recognize as a nation weve been plunged into an experience comparable to war. Like the first or Second World War combating the virus required a nationwide mobilization of government and of the ingenuity, knowhow and productive capacity of american industry. There is been a foreign line in hospitals and Nursing Homes and a homefront as men, women and children across the country stay home to protect fellow americans as during war, we pulled together to achieve National Objectives and had occasion to consider what makes this nation great and distinct from others such as china. This institution, the Heritage Foundation is dedicated to preserving american exceptionalism and the principles on which it rests including limited government, individual freedom and free enterprise. I still recall during the Reagan Administration being a speechwriter for a future hysteric fellow by william bennett. In coming to massachusetts avenue to hear from speakers on topics of the day. I even recall a Panel Discussion who president reagan might nominate if he got a Second Supreme Court appointment after sandra day oconnor. I heard some terrific prospects mentioned. Today im grateful to have been invited to join your ongoing discussion about americas heritage and its future. I said a moment ago about the battle with coronavirus we pulled together to achieve National Objectives. That is true. We are living in highly partisan times but in march donald trump and congress shaped 3 major pieces of legislation that reflect a broad, deep plan with the impact of the virus, this included paid sick leave for Small Business employees with coronavirus so they would leave the workplace without hesitation to slowly spread. That was fully reimbursed to the employer through tax credits. Included the patriot protection program. Forgivable loans to Small Businesses to help them cover rent, utilities and payroll. The program kept millions of workers on payroll and attached to their employer so they and the employer can get back to work as the country reopens. The same legislation, the cares act provided Economic Impact of 1,200 to american taxpayers plus 500 for dependent children. That concluded substantial employment benefits, 600 a week on top of what states pay for unemployment as well as benefits for independent contractors and selfemployed who ordinarily dont receive unemployment compensation. Partly as a result of these programs americans are in a different position today than in our last economic downturn. The personal saving rate was 33 , the highest ever recorded since at least 1959 and many times higher than the 6. 7 at the end of the Great Recession in june of 2009. As we reopen those savings will revitalize our vast economy. And we all reopen, or economic reopening is starting well. The Labor Department issued an extra ordinary jobs report that showed may unemployment dropped a point and a half, added 2. 5 million jobs. That report came as a surprise to many observers and some were annoyed. Many of these people work for major media and for some of them good news can be bad. This is severe innocent in election years privilege for this crowd millions of americans going back to work is perilous. In the New York Times headline saying, quote, falling jobless rate could imperil aid underpinning the recovery. You and i think it is good when coronavirus cases drop but the New York Times, that is risky as in this headline from the lead story in a recent sunday edition, quote, new cases in us slow posing risk of complacency. The Washington Post found a new problem. For weeks theyve been complaining there were not enough coronavirus tests but now in the headlines of their lead story they say, quote, as testing expands, a new problem arises, not enough people to test. And fairness the Mainstream Media can also find good news where most people would think it is bad like this report from the bbc, quote, 27 Police Officers injured during largely peaceful antiracism protests. I hope you will forgive this digression. I think you will. The new jobs report was unexpected, in an important sense it was not a surprise. We came into our current economic difficulty by a completely different path. It was selfimposed and purposely shortterm. It did not result from an economic weakness. The economy had been very strong. Comparisons the Great Depression have always been misplaced. Our circumstance is different. Now, how probably and safely reopen the better our prospects of regaining the economy we had until march, thats reflected in numerous surveys showing that 85 percent90 of americans who were put out of work believe their job loss was temporary. In a sense many of these jobs werent lost. Many of the jobs were still there waiting for economies to reopening workers to return. With them a job support does show this reopening began earlier and more robustly than expected and the survey period for that report was midmay. We know that many many jobs have been refilled in the months since. In the month of may we turned the corner against the virus. Now as we look ahead allow me to identify some principles that should guide us. For starters, we know our job is not done. Millions of americans remain out of work. The Unemployment Rate, 13. 3 in may, the defendant of labor will continue to work with the states to help them get unemployment payments to workers who are entitled to them. Likewise the virus is not gone and continued precautions are essential to continued reopening. These past months weve learned volumes about the virus and how to contain it. We must keep practicing those lessons including hygiene, distancing and masks, our discipline since march won us the ability to reopen. It and when us the ability to jettison discipline with getty abandon. The increase in cases weve seen in some locations results from several factors including increased testing. It does not indicate weve reopened too early but it does confirm we must remain vigilant. That includes in the workplace. The Department Occupational Safety and Health Administration has been helping workers and employers prepare for coronavirus since january. To date the Agency Issues in 17 different guidance documents for specific industries. General guidance for all employers and workers. The industry specific guidance covers workplaces from Nursing Homes and meatpacking plants to construction and curbside pickup. Each document tailored to the particular risks and precautions for that work environment. From my discussions with employers it is clear Business Leaders have never been as focused on worker safety as they are now. That said, we know there always some businesses or managers who will give safety short shrift. We have existing regulations and Statutory Authority to deal with that. We are fielding and investigating worker complaints including complaints of retaliation for raising safety concerns. We will not hesitate to bring enforcement action where necessary. What we wont do it this time is adopt an unnecessary emergency room specific to Infectious Diseases or coronavirus. Last week the federal court of appeals in washington rejected a lawsuit trying to force us to do that. Osha in its history has never been as focused on a single workplace risk as it is now on coronavirus. The amount of guidance we are providing in our investigative activities are unprecedented. But we do not believe that for every new challenge there must be a new federal rule. Rather, we believe we already possess the Enforcement Authority we need, and our current approach is the best means to protect workers and give employers guidance and confidence in the steps to be taken to provide a safe workplace and satisfy their obligations. The court of appeals unanimously agreed our effort is, quote, reasonable. As businesses reopen safely, we are also focused on helping workers make the transition back to work. The additional 600 Unemployment Benefits provided in thes act was an important measure to support workers who in many cases were being denied a government order, the ability to earn a living. In a Great Recession of 20082009, conditional federal unemployment benefit was 25 a week, not 600. Concern has invoiced by many, including the Heritage Foundations Recovery Commission that 600 benefit when combined with the unemployment benefit paid by the states will deter americans from returning to work as jobs become available. A worker receiving 600 on top of state Unemployment Benefits receives an income that annualized it between 50,000, and 55,000 dollars. In massachusetts this means a worker on unemployment currently has an annualized income of as much as 74, 000 in shovel states. That figure is 60, 000. A university of chicago study found 68 of workers are receiving Unemployment Benefits greater than the weekly wages they received prior to layoff. Most americans want work, not an unemployment check and if a worker receives suitable work including offered to safely return to his prior job he is ineligible to receive further benefits. The labor from has been reinforcing these requirements with the states including in a letter i sent to governors earlier this month. That said, when congress wrote for cares act in march, it scheduled a 600 plus 2 end july 3, 01, a point by which we expect the economy to be deep into the process of reopening. Congress recognized in an opening economy with millions of jobs becoming available that measure would no longer be called for. The cares act is an admirable piece of legislation, it enhanced Unemployment Benefits, provided valuable support to millions of americans with the extraordinary circumstances that caused the 600 benefit in march will no longer be present come august, different policies will be called for. At the heart of those policies should be recognition the single best thing for American Workers is creating conditions for a vibrant economy. We dont have to look too far to see thats true or what those policies are now we just have to look back to february this year. Four months ago, unemployment was at 3. 5 , wages were rising, and were rising faster for lower wage workers. Since 2018, there have been more vacant jobs than americans looking for jobs. In february that 1. 2 million more vacancies than workers looking for work. When i spoke to businesspeople the concern they mention most often was fighting skilled workers they could hire to sustain growth. The labor market was a sellers market. It was a workers market. Many good things came from that, perhaps the best, i know the president joins me in this, was it provided more opportunity for americans who historically had had less. Ever can american unemployment was at an alltime low in the trump economy and the poverty rate was the lowest ever recorded. In records going back to the 60s. The words of a wall street journal news story last week, precoronavirus we had, quote, the best africanamerican job market on record. We also saw a record low unemployment for hispanic americans, Asian Americans and workers who dont have a high school degree. Unemployment for adult women hit a 67 year low. In this trump economy employers make stepped up efforts to hire men and women who served in our armed forces and stepped up efforts to hire men and women who had served their time in the criminal Justice System. Helping men and women reenter the workforce in the kernel Justice System was a focus not just of the president in his first step act, it was in interest of employers too who were growing their businesses and giving Second Chances to workers that in a different economy they would not have had. This trump economy is one where businesses wanted to help train workers frustrated by lack of Vocational Education in high schools and often dubious value added for 4year colleges, businesses were charging forward on their own or in cooperation with Community Colleges establishing apprenticeships and other Training Programs that conferred needed practical skills workers could use to succeed in that workplace and in the labor market at large. Business is no better than government what skills are and will be needed in the workplace. In a tight job market, the trump economy, they were leading the way. States were responding too. As demand for workers pressed against unnecessary obstacles to their livelihood like ops occasional occupational licensing laws that impede competition, make it harder to fill vacancies and especially hard for military spouses to find work as our soldiers are restationed from one base to another. In red states and blue, demand for workers was lowering these barriers. This was the story and workplaces across the country when i became labor secretary last september and as labor secretary, one of the most painful aspect of the coronavirus has been watching it up and the labor market. A labor market that had so incentivized american businesses to extend jobs, benefits, and opportunity to men and women who havent had enough opportunities in the past. That is the economy donald trump built in the economy we will bring back. We will do so through the principles and policies that delivered that economy the first time, that includes tax relief and vigilance against unnecessary regulatory burdens so that american businesses could flourish and create the jobs while providing unprecedented opportunities to so Many Americans just a few months ago. Thats why in our last Cabinet Meeting donald trump signed his executive order on regulatory relief to support economic recovery. Ordering federal agencies to take additional steps to ensure regulatory fairness and these regulatory burdens and why the president has been discussing reduction in the payroll tax and other tax relief to incentivize the job growth that can make our job market a sellers market again. These are principles we are already pursuing in the Labor Department. In the same week as the president s order we took four notable regulatory actions. One of those by itself will save 3. 2 billion. How . Simply by letting employers give workers information about their retirement accounts online rather than by mail. Workers and retirees who do want to get information by mail can still do so but millions more will find it convenient to have the Information Online and that will save a lot of money as well by the way and a lot of trees. The last three months have been a period of exceptional and essential government intervention. With Families First coronavirus contact in the cares act donald trump and congress enacted a swift, sweeping bipartisan plan for protecting American Workers in our economy from the measures necessitated by the virus. There is now discussion of a possible final bill later this summer. The Senate Minority leader has described his ambitions for an additional bill that is rooseveltian. For me that statement called to mind two monumental statutes from the new deal era outside the federal trade commission. On each statue a powerfully built horse is straining to charge forward but is being held back by a giant musclebound man. The statues were titled man controlling trade. I still recall driving by with my father and him commenting ruefully that the statues showed, his words government restraining the beast of freetrade. I was young but understood my father to be expressing some skepticism the trade is actually such a terrible beast and now with hindsight and understanding the view of the constitution of the man who became Justice Scalia i appreciate that there was more to his comment. The founders of this country were principally concerned to restrain government, not with creating a hulking government to restrain free enterprise. The genius of our constitution is the autonomy it allows people and the ways it checks and limits government so that private individuals and institutions may thrive. A number of restraints by the government are essential of course, so our government relief programs but for all weve been forced to ask the government to do recently we must not mistake Government Programs for the Economic Growth and opportunity that come only from the private sector and we must not forget that it was limiting government, not expanding it that delivered the extraordinary prosperity we enjoyed so recently and to which we all want to return. Thank you all, congratulations and the release of your final report