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Small Business and the International Economy (Classic Reprint)

Small Business and the International Economy (Classic Reprint)

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Excerpt from Small Business and the International Economy

The committee met, pursuant to notice, at 10:07 a.m., in room 2359-A, Rayburn House Office Building, Hon. John J. LaFalce (chairman of the committee) presiding.

Chairman LaFalce. The Small Business Committee will come to order.

The Committee on Small Business meets today to hear from the Under Secretary of the Treasury for International Affairs, Dr. Lawrence Summers.

The critical importance of exchange rate and macroeconomic policies for U.S. business operating at home and abroad cannot be underestimated. In most big businesses, most multinational corporations, they are able to deal with these issues. Small businesses very often cannot really participate and deal with them, or handle them quite as well. Yet it has a profound impact on small businesses as well as large businesses.

That is why I feel it most appropriate and necessary that the small business community be as concerned about these issues as the big business community. That is why we are having the hearing today. It is propitious, too. The Senate Banking Committee had a hearing on this issue yesterday, I understand.

The 1988 Omnibus Trade Act requires, in a provision that I authored, that the Treasury report to the Congress every 6 months on foreign exchange market developments. Treasury has been called upon by statute to provide an evaluation of the factors in the United States and other economies that underlie conditions in the currency markets including bilateral trade and capital flows.

Yesterday, Treasury released its most current report, and we look forward to hearing from Dr. Summers on the Treasury's evaluations of these current developments.

There are many issues that we wish to go into. I will not read my entire opening statement at this point in time. I will ask unanimous consent that it be put into the record.

Without objection, so ordered.

[Chairman LaFalce's statement may be found in the appendix.]

Chairman LaFalce. I would ask the ranking minority member if she has any statements she wishes to make?

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