On Wednesday, President Donald J. Trump began his second trip abroad by traveling to Warsaw, Poland for bilateral meetings and to deliver an address to the people of Poland. President Trump also spoke about energy security with European leaders attending the Three Seas Initiative Summit. President Trump met first with the President of Poland, Andrzej Duda. The two affirmed the enduring friendship and alliance between Poland and the United States, as demonstrated by the close partnership and cooperation between our two countries in many different spheres, particularly within NATO on security issues. President Trump and President Duda then held a joint press conference in the Royal Castle Courtyard. President Trump thanked the Polish people and President Duda for the warm welcome he received in Warsaw. The President praised the vital military relationship between the United States and Poland and applauded Poland for meeting NATO spending benchmarks. President Trump also congratulated President Duda for Poland's recent election to the U.N. Security Council beginning in January and highlighted the importance of healthy economic relations between the two countries. “Our strong alliance with Poland and NATO remains critical to deterring conflict and ensuring that war between great powers never again ravages Europe, and that the world will be a safer and better place. America is committed to maintaining peace and security in Central and Eastern Europe,” President Trump emphasized. The President then joined European Heads of State attending the Three Seas Initiative Summit, where he expressed the United States' support of the Three Seas Business Council, an effort to boost the initiative's ability to better connect and thereby transform the region. He expressed hope that the summit would open a new energy frontier, improving countless lives across the region and throughout the world “With the expanded trade and new infrastructure, we will unleash incredible energy innovation that is safe, responsible, and environmentally friendly. The United States supports a commonsense approach to protecting natural resources — one that responsibly balances economic growth, job creation, and energy security,” President Trump said. The President also emphasized the importance of diversifying energy sources, supplies, and routes to ensuring Europe’s energy security. Noting that the United States can contribute to this diversification, President Trump noted that the United States will never use its energy to coerce and will work to keep others from doing so as well. President Trump also met with President Kolinda Grabar-Kitarovic of Croatia to discuss issues of mutual interest and ways to deepen already strong United States-Croatia relations. President Trump welcomed Croatia's efforts to promote energy security and diversification, and expressed support for timely completion of the Krk Island liquefied natural gas facility. After his meeting with the President Kolinda Grabar-Kitarovic, President Trump gave remarks to the people of Poland in Krasiński Square. He welcomed stronger ties of trade and commerce with the growing Polish economy, hailed the rich people-to-people ties between our Nations, reaffirmed the United States’ ironclad commitment to Article 5, and called for a strong and united Europe, which, together with the United States, forms the greatest “community of nations” the world has ever known. “Our two countries share a special bond forged by unique histories and national characters. It's a fellowship that exists only among people who have fought and bled and died for freedom.” President Trump then departed Poland for Hamburg, Germany, where he will attend the G20 summit.
Under the healthcare bill currently being considered by the Senate, spending on Medicaid, the healthcare program that covers 75 million Americans, would increase from $393 billion this year to $464 billion in 2027—and that’s adjusting for inflation. Yet Democrats are claiming this is a “cut” to the program. Only in Washington would anyone have the nerve to claim an 18 percent increase in government spending on top of inflation is a “cut.” The reality is that the Senate’s healthcare bill, like the legislation passed by the House of Representatives, strengthens and reforms Medicaid. Medicaid has seen out of control spending growth: twenty years ago, spending on the program was under $200 billion annually; within a decade, it is expected to top $1 trillion in total spending. The Senate bill would refocus the program on the people it was designed to serve, who need the most help: the disabled, the elderly, and pregnant mothers and their children. It would give states the flexibility they need to serve those populations and come up with cost-saving, quality-improving innovations. It would also fix the flawed incentives that have driven out of control spending on Medicaid, while ensuring states have the resources they need to protect their vulnerable populations.
On Wednesday, President Donald J. Trump hosted a tribal, State, and local energy roundtable at the White House. He was joined by Governors Paul LePage, Kim Reynolds, Pete Ricketts, and Bill Walker, along with State and tribal leaders from around our great country. President Trump stated his Administration’s intent to roll back harmful regulations that prevent State, local, and tribal communities from accessing vital energy resources. These regulations hinder economic growth that would create jobs and could be used to fund roads, schools, and infrastructure. It is President Trump’s hope that the roundtable will allow for more cooperation between local governments and the Trump Administration in order to unleash America’s energy potential. The President stated his intent to “usher in a golden age of American energy dominance.”
We have a once-in-a-generation opportunity to do something big. President Trump has made tax reform a priority, and we have a Republican Congress that wants to get it done. This is something that Democrats should support too because it’s good for the American people. The President is going to seize this opportunity by leading the most significant tax reform legislation since 1986 – and one of the biggest tax cuts in American history. The President has focused on three things since his campaign: job creation, economic growth, and helping low and middle-income families who have been left behind by this economy. He understands that there are a lot of people in this country that feel like they work hard and still can’t get ahead. They are sick of turning their paychecks over to Washington and having no idea how their tax dollars are spent. They are frustrated by a tax code that is so complicated that they can’t even do their own taxes. That’s why tax reform is such a big priority for this President. He cares about making the economy work better for the American people. We are going to cut taxes for businesses to make them competitive, and we are going to cut taxes for the American people – especially low and middle-income families. In 1935, we had a one-page tax form consisting of 34 lines and two pages of instructions. Today, the basic 1040 form has 79 lines and 211 pages of instructions. Instead of a single tax form, the IRS now has 199 tax forms on the individual side of the tax code alone. Taxpayers spend nearly 7 billion hours complying with the tax code each year, and nearly 90% of taxpayers need help filing their taxes. We are going to cut taxes and simplify the tax code by taking the current 7 tax brackets we have today and reducing them to only three brackets: 10 percent, 25 percent, and 35 percent. We are going to double the standard deduction so that a married couple won’t pay any taxes on the first $24,000 of income they earn. So in essence, we are creating a 0 percent tax rate for the first $24,000 that a couple earns. The larger standard deduction also leads to simplification because far fewer taxpayers will need to itemize, which means their tax form can go back to that one simple page. Families in this country will also benefit from tax relief to help them with child and dependent care expenses. We are going to repeal the Alternative Minimum Tax (AMT). The AMT creates significant complications and burdens by requiring taxpayers to do their taxes twice to see which is higher. That makes no sense; we should have one simple tax code. Job creation and economic growth is the top priority for this Administration, and nothing drives economic growth like capital investment. Therefore, we are going to return the top tax rate on capital gains and dividends to 20 percent by repealing the harmful 3.8 percent Obamacare tax. That tax has been a direct hit on investment income and small business owners. We are going to repeal the death tax. The threat of being hit by the death tax leads small business owners and farmers in this country to waste countless hours and resources on complicated estate planning to make sure their children aren’t hit with a huge tax when they die. No one wants their children to have to sell the family business to pay an unfair tax. We are going to eliminate most of the tax breaks that mainly benefit high-income individuals. Home ownership, charitable giving, and retirement savings will be protected – but other tax benefits will be eliminated. This is not going to be easy. Doing big things never is. But one thing is for certain: I would not bet against this President. He will get this done for the American people. Gary Cohn is the chief economic advisor to President Donald J. Trump and Director of the National Economic Council
THE VICE PRESIDENT: Good morning. AUDIENCE MEMBERS: Good morning. THE VICE PRESIDENT: Selamat pagi. (Laughter.) Vice President Kalla, thank you. Thank you for joining us this morning. Thank you for your kindness and your hospitality. It was an honor to meet with you yesterday to discuss the economic partnership between the United States and Indonesia. I look forward to forging a strong relationship with you in the years ahead for the benefit of both of our nations. Thank you again. (Applause.) And thank you all for being here today — Ambassador Joe Donovan, Minister Ignatius Jonan, Brian Arnold, members of the American Chamber of Commerce in Indonesia, members of the Kadin, distinguished leaders of the business community, honored guests. It is my great honor to be here in Indonesia today on my first trip to Southeast Asia as Vice President of the United States of America. I just spoke to the President earlier this morning, and I bring greetings from the President of the United States of America to all those gathered here and to the people of Indonesia, President Donald Trump. Before I go any further, let me take a moment to address the terrorist attack that happened in Paris yesterday. This is just the latest reminder that terrorism can strike anywhere at any time — something that the people of Indonesia and the United States know all too well. As President Trump said yesterday in the face of this great evil, “We have to be strong and we have to be vigilant. Today, the people of Paris have our condolences and our prayers. The people of France are on our hearts today. And the people of Indonesia can be confident in the wake of this latest attack: We will not relent in our effort to end terrorism and the threat it presents to both of our peoples, and I pledge to you our continued cooperation against terrorism in the uncertain days in which we live Thank you for letting me address that issue first. But let me also, on a lighter note, let me say it is a particular honor for me to be here on Kartini Day. (Applause.) Kartini was a pioneer of the women’s movement here in Indonesia, and her example that has inspired Women’s Emancipation Day is an inspiration not only to this region, but to the wider world. It’s heartening to see Indonesia’s commitment to empowering women through education and to ensuring that they have the opportunity to lend their voices and their talents to building Indonesia’s future. In fact, there are three great examples in the room and more that are worth mentioning on this Kartini Day. I’ve had the great privilege to spend time with your Foreign Minister Retno — (applause) — who I believe will be visiting Washington, D.C. in the coming weeks, and we look forward to continued productive discussions. Also I just finished conversations this morning with two of the most prominent women in Indonesia, speaking about expanding and strengthening our relationship between our two countries — Mari Elka Pangestu, the former minister of trade and minister of — economy. (Applause.) Thank you, Mari. And the vice chair of Kadin and the CEO of Sintesa Corporation, the distinguished Shinta Kamdami. Shinta is here, thank you so much. (Applause.) Would everyone join me in recognizing these and every other successful woman who is leading in public and private life on this Kartini Day? (Applause.) Yesterday morning on President Trump’s behalf, I had the great privilege to meet with President Joko Widodo, my friend Jokowi, to reaffirm the United States’ enduring commitment to our strategic partnership with Indonesia. We had a frank and open conversation. We discussed how our nations — the second- and third-largest democracies in the world — can further strengthen our partnership for our mutual benefit, a point I reiterated in my afternoon meeting with Vice President Kalla and several government ministers. And yesterday I met with ASEAN Secretary General Minh and the permanent representatives as a sign of the United States’ strategic partnership with ASEAN and our steadfast commitment to the Asia Pacific as a whole. It was my privilege in that moment to inform the Secretary General and the permanent representatives that President Donald Trump will attend the U.S.-ASEAN Summit, the East Asia Summit, and the APEC Leaders Meeting in Vietnam and the Philippines this November. (Applause.) I hope you all see this as what it is — a testament of the tremendous value that President Trump places on this vitally important region of the world. Our history here stretches back for generations, and our shared past is the foundation of our shared future, a future of security and prosperity for all our nations and the world. And the United States’ economic relationship with Indonesia is central to that future. As the crossroads of the Asia Pacific, Indonesia has a long-shared, strong commercial bond with the United States and our business community. American companies have done business in Indonesia for decades. And American products and services have greatly contributed to Indonesia’s economic development and quality of life in recent years. And the American Chamber of Commerce in Indonesia has been there every step of the way. Since 1971, the American Chamber of Commerce, AMCHAM, in Indonesia, has brought together U.S. and Indonesian companies to invest in this country and invest in our shared future. Today AMCHAM boasts more than 250 business members, and your hard work has helped to strengthen the relationship between the United States, Indonesia, and the broader Southeast Asia region. And the same goes to all the businesses that are so well represented here today, companies like Microsoft, Coca-Cola, JPMorgan Chase, Freeport, and really every business here. You've done yeoman’s work promoting trade and economic growth on both sides of the Pacific. Your businesses create jobs, drive innovation, and open up opportunity in both of our countries. And thanks in no small part to your hard work, the stage is set for an even stronger partnership between the United States, Indonesia, and Southeast Asia. The truth is American companies see tremendous potential throughout this region. Across all 10 members of ASEAN, of which Indonesia is the heart, the United States exports more than $100 billion a year in goods and services, supporting nearly 550,000 jobs back in the United States. And combined ASEAN’s member nations are the top destination in Asia for U.S. investment. At nearly $274 billion, the investments here are more than the investments in China, India, and Japan combined. These numbers show the incredible — thank you — that's a very impressive number. (Applause.) This incredible economic bond is testament in these numbers to the bond between the United States and Southeast Asia. And today on President Trump’s behalf, I have the honor to be here — along with Vice President Kalla and with American and Indonesian businesses — as they sign historic agreements that will draw our nations even closer together to the benefit of jobs and opportunities for both of our peoples. All told these companies are signing no fewer than 11 major deals worth more than $10 billion, and it’s happening today. (Applause.) From Lockheed Martin upgrading Indonesia’s air force, to GE and Applied Materials building electronic infrastructure, to ExxonMobil’s sale of liquefied natural gas, these deals represent the tremendous excitement that American companies feel about opportunities here in Indonesia. President Trump and I are grateful — grateful to these businesses. This is truly a historic day for the U.S.-Indonesia partnership, but the best is yet to come. Would everyone please join me in thanking these pillars of prosperity for the steps that they're taking today to create jobs and opportunities on both of our countries? (Applause.) Despite the big announcements today, the truth is the United States and Indonesia can do much more, we believe, to improve our trade relationship. Last year our two-way trade with Indonesia totaled about $30 billion, but American exports have actually fallen by more than 30 percent in the last four years. And it’s not for lack of trying — whether its extending electricity to communities that lack it, or building infrastructure, connecting Indonesia’s 17,000 islands, American businesses are ready and willing to drive Indonesia’s growth to an even greater extent. As President Jokowi and I discussed yesterday, we can and will do more to expand commerce and opportunity between Indonesia and the United States. Our goal is simple. We seek trade with Indonesia that is both free and fair. We seek to create a win-win trading relationship for both of our nations and all of our people. (Applause.) To that end, we will work President Jokowi to reduce barriers to trade and investment and to create a truly level playing field where all our businesses have equal opportunity to market access. As many of you know, U.S. companies face many barriers and difficulties in the Indonesia market. These include intellectual property challenges, the lack of transparency, or requirements to manufacture, or include local content before being able to sell products to the Indonesian market. Just a few examples. While we appreciate President Jokowi’s efforts to undertake economic reforms, especially easing business regulations, the truth is, I say respectfully, there’s much more that must be done to improve the business and investment climate in Indonesia. And with all of your help today, we're committed to helping to support that. As members of the business community, you can help us identify the barriers we need to break down, the areas where we can make the most progress for our nation’s mutual benefit. President Trump and I value your continued input on these issues, and we look forward to working with each one of you as we move forward to a system that maximizes jobs, growth, and a brighter future for Indonesia and the United States of America. (Applause.) The truth is that a stronger American economy means a stronger economy for Indonesia, as well, and for all of our trading partners. The United States is the driver of global growth, and under President Donald Trump, we're going to be driving global growth like never before. I promise you. (Applause.) President Trump and our administration are working around the clock to pass an agenda of lower taxes, less regulation, better infrastructure, and a renewed focus on American energy. I’m sure the businesses gathered here — from America will be glad to know that tax reform is going to be one of our top priorities. I don't have to tell you how the American tax code harms the business community at home and abroad. Our corporate tax rate is actually one of the highest in the developed world. It’s 10 percent higher than the tax rate here in Indonesia. President Trump has a plan to slash the corporate tax rate, reform the tax code to make it simpler, flatter, and fairer. And rest assured, our tax reform plan will make the strongest economy in the world stronger still, and that will benefit all of the businesses that are represented here today. The same is true of President Trump’s decisive action to cut through regulations and red tape that have been strangling American enterprise and companies that do business in our country. The President has already ordered every agency in Washington, D.C. to find two regulations to get rid of before issuing any new ones. (Applause.) And President Trump has already signed a dozen bills turning back the last administration’s burdensome mandates, and he’ll continue to work Congress, as we slash through red tape. Make no mistake about it, under President Donald Trump, the era of over-regulation and over-taxation is over. A new era of jobs and growth in the American economy has begun, and it will benefit America first, but it will benefit a growing economy will all of our trading partners, including Indonesia. (Applause.) Now, these are only a few of the President’s policies. I could go on today, but I won’t. I appreciate the feedback I received from so many of you at our roundtable about what our administration could continue to do to promote growth and opportunity. But rest assured, President Trump’s agenda is going to renew America’s reputation as the premier investment destination in the world to the benefit of our people and to the benefit of all with whom we do business. Now, I don't need to tell all of you in this nation of Islands that President John F. Kennedy was right that a rising tide will lift all boats. And as America grows, all of our partners, including Indonesia, will grow with us. (Applause.) Indonesia and Southeast Asia are vitally important to America’s economic future, and in the United States you have no better partner and no better friend. Together with Indonesia and with all the businesses represented here, we're going to work to deepen our bond and build on the foundation we stand on today. I’ll leave Indonesia in a just a few hours. As I do, I’ll depart here deeply impressed by everything that I’ve seen. Indonesia’s commitment to freedom, the rule of law, to human rights, and religious diversity has made a profound impact on me and my wife and our two daughters. Just yesterday I had the honor and the privilege to visit Indonesia’s national mosque, where the grand imam guided me and my family on a tour of that beautiful place. As I know Vice President Kalla, as the chairman of the Indonesian Mosque Council, would agree, Indonesia’s tradition of moderate Islam is an inspiration to the world. As we stood in that courtyard, the grand imam pointed to the spires of the Catholic cathedral just rising over the wall. It’s a testament to Indonesia’s commitment to tolerance and religious freedom. In your nation, as in mine, we know that religion unifies, not divides. It gives us a foundation for hope and a brighter future for all of our people. And I commend the people of Indonesia for your example. You're inspiring the world. (Applause.) With the leadership of President Trump and President Jokowi, I have faith — faith that the friendship between the United States and Indonesia will grow; faith that our strategic partnership will grow; and faith that our example of freedom, security, and prosperity will grow for the benefit of our people, and for the benefit of the world. Thank you all for having me today. It’s been a great, great honor to be with you. (The agreements are signed.) END
After one month in office, President Donald J. Trump is already achieving results for the American people. Jump starting Job Creation: President Trump is looking out for American workers that Washington has left behind. Signed a Presidential Memorandum ordering the United States to withdraw from the Trans-Pacific Partnership negotiations and agreement Hosted the CEO of Intel to announce Intel’s plan to invest $7 billion in a United States factory that will create 10,000 American jobs Signed a Presidential Memorandum to clear roadblocks to construction of the Keystone XL Pipeline Signed a Presidential Memorandum declaring that the Dakota Access Pipeline serves the national interest and initiating the process to complete construction Signed a Presidential Memorandum ordering that all new pipeline construction and repair work use materials and equipment from the United States Signed legislation, House Joint Resolution 38, to block the burdensome Stream Protection Rule from causing further harm to the coal industry Signed legislation, House Joint Resolution 41, to eliminate a costly regulation that threatened to put domestic extraction companies and their employees at an unfair disadvantage Saving Taxpayers Money: President Trump is fighting to save Americans’ hard-earned tax dollars. Saved Americans $700 million on a new batch of F-35 fighters Capped the cost of Boeing’s next-generation Air Force One fleet at millions below that which was agreed to by the Obama administration Restoring Public Safety: President Trump will work to reduce the threats of crime and illegal immigration to public safety. Signed an Executive Order to enhance the safety and security of the United States by, among other things, constructing a wall on the southern border Signed an Executive Order to make sure Federal immigration laws are faithfully enforced throughout the country and that Americans’ tax dollars do not go to jurisdictions that obstruct the enforcement of immigration laws Signed an Executive Order that directs the Attorney General to develop a strategy to more effectively prosecute people who engage in crimes against law enforcement officers Signed an Executive Order that establishes a task force, led by the new Attorney General, to reduce crime and restore public safety in communities across America Signed an Executive Order that re-focuses the Federal Government’s energy and resources on dismantling transnational criminal organizations, such as drug cartels Getting Government Out of the Way: President Trump understands that excessive regulations stifle job-creation and harm our businesses. Signed an Executive Order instructing Federal agencies “to minimize the burden” of the Affordable Care Act Required that for every new Federal regulation, two existing regulations be eliminated Directed the Commerce Department to streamline Federal permitting processes for domestic manufacturing and to reduce regulatory burdens on domestic manufacturers Signed an Executive Order expediting the environmental review and approval processes for domestic infrastructure projects An America First Foreign Policy: The President’s first priority is the safety and security of the American people. Department of the Treasury sanctioned 25 entities and individuals involved in Iran’s ballistic missile program Signed a Presidential Memorandum directing the Secretary of Defense to work with other Cabinet members to develop a plan to defeat ISIS Called or met with more than 30 foreign leaders Draining the Swamp: President Trump has taken action to ensure that all members of his Administration are working for the American people. Signed an Executive Order establishing new ethics commitments for all Executive branch appointees, putting in place a five-year lobbying ban and a permanent ban on lobbying for foreign governments, so appointees serve the American people instead of their own interests Put in place a hiring freeze for Federal civilian employees to stop the growth of a bloated government Keeping His Promise to Defend the Constitution: President Trump promised a Supreme Court justice in the mold of the late Justice Antonin Scalia. Nominated Judge Neil M. Gorsuch to the Supreme Court because of his consistent record defending the Constitution Helping Women Succeed in Business: President Trump knows the country cannot reach its potential unless every American has a chance to prosper. Launched the United States-Canada Council for Advancement of Women Entrepreneurs and Business Leaders President Trump has spent the last 30 days fulfilling promises and helping the American people. He’s looking forward to the many more successful months and years of action to come.
President Trump promised to make women’s empowerment a priority. Earlier this week, President Trump and Canadian Prime Minister Trudeau took the first steps toward making that a reality by creating the United States-Canada Council for Advancement of Women Entrepreneurs and Business Leaders. “In order to create economic growth and lots of very good, well-paying jobs, we must ensure that our economy is a place where women can work and thrive.” President Trump wants to pave the way for women to bring their unique perspectives and strengths to the business world, and to harness the full potential of female entrepreneurs in our economy to make America great again. Stand with President Trump and Prime Minister Trudeau to support empowering female leaders.
Today, the President granted commutation to 330 individuals. The President has now granted commutation to a total of 1,715 individuals, including 568 people who had been sentenced to life in prison. The vast majority of these men and women are serving unduly long sentences for drug crimes. With today’s action, the President has granted more commutations than any president in this nation’s history and has surpassed the number of commutations granted by the past 13 presidents combined. The President set out to reinvigorate clemency, and he has done just that. In 2014, the President directed officials at the Department of Justice to undertake an ambitious effort: encourage federal inmates serving sentences imposed under outdated laws to apply for clemency. With assistance from the Clemency Project 2014 and volunteer attorneys throughout the country, federal inmates applied for clemency in staggering numbers. The Deputy Attorney General and the Pardon Attorney – and their respective offices – worked vigorously to review these applications. Less than three years later, the President has now granted commutation to more than 1,700 individuals, the overwhelming majority of whom were serving sentences under outdated and overly harsh drug sentencing laws. Many of these individuals were assisted by Clemency Project 2014, and many will be assisted by the Stanford Justice Advocacy Project in their reentry efforts. The President’s vision could not have been realized without this support. To the President’s 1,715 commutation recipients and 212 pardon recipients – you have been granted a second chance because the President sees the potential in you. After reviewing each of your stories, the President concluded that you have taken substantial steps to remedy your past mistakes and that you are deserving of a second chance. You and your stories have been essential to the President’s successful exercise of his clemency authority. Stories of rehabilitation and growth, of families reunited, and lives turned around – these are the stories that demonstrate why our nation is a nation of second chances. As the President has written to you , your example will influence whether someone in similar circumstances will get his or her own second chance in the future. Make the President proud with how you use your second chance. Neil Eggleston is Counsel to the President.
At the White House FinTech Summit in June 2016 , Cabinet Secretaries and senior officials from across the Administration engaged with stakeholders about the potential for fintech to further myriad policy goals, including small business access to capital, financial inclusion and health, domestic growth, and international development. At the same event, industry and other stakeholders conveyed the need for a framework that articulates the U.S. government’s perspective on fintech. Today, after sustained stakeholder engagement, we are proud to publish a whitepaper, A Framework for FinTech , that takes our work one step further to provide that perspective. This whitepaper expresses the forward-leaning posture of this Administration to innovation and entrepreneurship , generally, and fintech in particular. Policy Objectives and FinTech Principles This document sets forth Administration policy objectives that reflect widely-shared values and practical expectations for the financial services sector and the U.S. government entities that interact with the sector. It then provides ten overarching principles that constitute a framework policymakers and regulators can use to think about, engage with, and assess the fintech ecosystem in order to meet these policy objectives. Similarly, industry and other stakeholders can use the framework to understand how they can contribute to a well-functioning and inclusive financial system, and to examine their products and services against articulated principles. The ten principles encourage stakeholders to: think broadly about the financial ecosystem; start with the consumer in mind; promote safe financial inclusion and financial health; recognize and overcome potential technological bias; maximize transparency; strive for interoperability and harmonize technical standards; build in cybersecurity, data security, and privacy protections from the start; increase efficiency and effectiveness in financial infrastructure; protect financial stability; and continue and strengthen cross-sector engagement. Federal Government Engagement Federal policymakers and regulators have accomplished a lot in the fintech space. Executive agencies across the government – including the Department of Commerce (Commerce), the Small Business Administration (SBA), the Department of State (State), the Department of the Treasury (Treasury), the U.S. Agency for International Development (USAID), and others – and independent regulators have engaged with stakeholders across the industry through events, Requests for Information (RFIs), whitepapers, technical assistance and research, and informal outreach and conversations, to better understand the industry and determine the appropriate role for government in fintech development. The White House FinTech Summit , the Office of the Comptroller of the Currency’s (OCC) Responsible Innovation initiative, the Consumer Financial Protection Bureau’s (CFPB) Project Catalyst , the Securities and Exchange Commission’s (SEC) Fintech Working Group, Commerce’s Open for Innovation events , Treasury and USAID’s Financial Inclusion Forums, and Treasury’s whitepaper, Opportunities and Challenges in Online Marketplace Lending , are just a few examples. The Road Ahead Significant work remains, however. The United States should continue developing a policy strategy that helps advance fintech and the broader financial services sector, achieve policy objectives where financial services play an integral role, and maintain a robust competitive advantage in the technology and financial services sectors to promote broad-based economic growth at home and abroad. Additionally, policymakers, regulators, and the private sector should continue engaging with one another to foster innovation in fintech while protecting consumers and the financial system. This whitepaper is both a product of ongoing public-private cooperation and a roadmap for future collaboration. As the fintech ecosystem continues to evolve, this statement of principles should serve as a resource to guide the development of smart, pragmatic, and innovative cross-sector engagement. Adrienne Harris is a Special Assistant to the President for Economic Policy. Alex Zerden is a Presidential Management Fellow.
As the President wrote this week in the journal Science, the last eight years demonstrate that carbon emissions can decline while the economy is growing. This is in contrast to centuries old reality that increased economic output entailed increased carbon emissions. Emissions did, in fact, drop during the Great Recession. But due to trends in the energy system and policies pursued by President Obama, carbon pollution has continued to fall while our economy has recovered from that shock. From 2008-2015, U.S. CO2 emissions from the energy sector fell by 9.5 percent while the economy grew more than 10 percent. The decoupling of carbon pollution and economic growth in the United States is underway, and recent data from the International Energy Agency suggests that this trend is going global, as emissions have stayed flat in 2014 and 2015 while the global economy grew. When the Paris Agreement took effect in December 2015, the world took an important step toward avoiding the most dangerous impacts of climate change. But Paris alone is not enough to avoid average global surface temperature increases that climate scientists say are very risky — additional policies that reduce CO2 emissions are needed, in the United States and elsewhere, to ensure that these damages are avoided. Moreover, as we consider the interaction of climate change mitigation policies and the economy, it is important to remember that the counterfactual to serious mitigation is not free – the absence (or even delay of effective climate policy can be very costly over time. The figure below graphs estimates of the annual economic damages from climate change, expressed as a fraction of global gross domestic product (GDP), from mid- to late-century, under different climate policy scenarios. We can think of this as a “climate damage cost” that world nations will pay each year as the climate changes, in terms of lost economic output. This cost includes impacts of increased temperature on agricultural productivity, sea level rise, and deaths and illnesses related to heat, pollution and tropical diseases. In the reference curve (in blue), no action is taken to address climate change. Each of the other curves incorporate different assumptions about how much emissions mitigation the world will achieve, and how quickly. If countries meet their individual nationally-determined contributions (INDCs) agreed to in Paris and go no further, moving the world from the blue to the purple curve, we can avoid significant economic damages. To move to the red curve, countries must meet the Paris INDCs and continue to decarbonize beyond 2030 at about the same rate represented in the INDCs. If we achieve net-zero global GHG emissions in 2080, we can reduce climate damage impacts on the level of global GDP from more than 4 percent to less than 1 percent by 2100. Failing to make investments in climate change mitigation could leave the global economy, and the U.S. economy, worse off in the future. And the estimates graphed above are uncertain and may be conservative; they do not account for damages that are difficult to monetize (such as increases in the frequency and intensity of extreme weather), or for the possibility that we may cross critical greenhouse gas concentration thresholds that cause catastrophic damages (such as the melting of Greenland ice sheets and associated sea-level rise), or for the chance that climate change will reduce the rate of economic growth in some countries, rather than just the level of output. We may have become used to reading about the predicted physical impacts of climate change, like inundated coasts and lower crop production. But the economic impacts, and their fiscal consequences, will be severe, as well. For example, the U.S. Office of Management and Budget recently estimated that a reduction in annual global economic output of 4 percent—well within the range of what economic models suggest could happen by 2100 without further climate action—could translate to lost U.S. federal tax revenue of $340 to $690 billion per year (about 0.5 percent of expected U.S. GDP in 2100). In deciding how much to reduce carbon pollution, and how quickly to act, countries must weigh the costs of policy action against estimates of avoided climate damages. But we should be clear-eyed about the fact that effective action is possible, and that the economic and fiscal costs of inaction are steep.