the way, so our economy can turn -- return to creating jobs. thank you so much for listing. >> on newsmakers, maryland representative chris van hollen, ranking member of the house budget committee, and a member of the joint deficit reduction committee, talks about how the joint committee is doing with this task of identifying $1.20 trillion in budget cuts and other budget, spending, congressional, and political issues. "newsmakers" sunday at 10:00 a.m. and 6:00 p.m. eastern on c- span. >> the house meets on monday at 2:00 p.m. with the first roll- call votes of the week expect it -- expected after 6:30. members will consider a federal spending plan for november bid watch live coverage of the house on c-span. at 3:30 p.m. eastern monday, the senate will begin debate on a bill that aims to crack down on china's currency manipulation. then they will proceed to consider six nominations,

including henry floyd of south carolina to be a u.s. circuit judge for the poor circuit. votes will follow. you can see the senate live on c-span2. >> get regular updates of what is on the c-span networks on twitter. get a quick program information, including which events are live. it is easy to sign up. the latest, most instant information of what to watch on c-span networks now on twitter. >> fcc chairman julius genachowski links u.s. economy and jobs growth with broadband high-speed internet. this is about 35 minutes. >> i would like to say thank-you to chairman genachowski for allowing us to put on this event.

we are very excited to be talking about these topics and how they can help us to put forward. i have had the pleasure of knowing him for several years and have been very excited about the initiatives he has been pushing. we also have warren brown, the owner and founder of the washington d.c. area business with seven locations throughout the metro area. they are great example of how can work together to spur new growth for local businesses by leveraging technology in driving people from the on-line world into the on-line world. once again, thank you to those who are watching from a web cast votes on tv and streaming. i would like to speak for just a moment about living social and the roots of what it has. the company has been around for

over four years at this point. we started as a small business, and we have been able to grow to nearly four thousand employees worldwide, of which about 2000 are in the u.s.. we have over 40 million members and we are live in 589 markets worldwide, helping to drive local commerce on a global and international scale. we also are continuing to go and hire between 1005200 employees per month. we think we have a model -- between 150 and 200 employees per month. we help small businesses attract and retain new customers, which is the number- one problem for many small businesses out there. this evolution of local commerce which is being fuelled by innovations in broadband and

growth is really what living social is driving toward. not only are we a growing enterprise, but we have the capability to allow small businesses to grow in conjunction with us. much about our growth in the future relies on having a local, real-time, mobile economy common and the mobile device becomes a local interaction machine for consumers and small businesses out there. i am very excited for everything we are able to do and how the country and the technology industry can continue to push ahead to drive growth that really has impact in the real world of local businesses and local jobs. i would like to introduce warren brown to talk a little bed about k club and everything it has done for him. [applause] >> good morning, everyone.

we just had a successful run at last week with 700 vouchers sold last tuesday and wednesday. cakelove is my bakery, founded in 2002. has seven locations throughout the d.c. area. we have retail store fronts that people come into and place orders. we get a lot of orders online through our online store. we do a lot of our business, communication online processing of bills through the computer and with broadband. it is essential for us as a business to continue to run and operate efficiently and with low-cost by using broadband services. i can remember when we first started back in 2002, dial-up was the way i had to use the computer to go on line.

it just took so much time to get everything done. i was not able to grow the business in an efficient way. sometimes processing payroll took four hours. i know it sounds crazy, but it did. i only had 13 or 14 people. now things are much faster. it has to do with the ability to jump online and do what i need to do in a reasonable amount time. the internet is very important for us to be able to market as well through social media like facebook and twitter. it is also just a matter of being able to stream music in the shop so that the staff feels happy and satisfied, being able to communicate via e-mail with all my different stab about things that are changing on a daily basis, keeping up with orders and operations -- with all my different staff. it is just as important as the

phone, the mixer, and the cash register. we rely on it every day. the faster and more reliable is that each of the shops, the more i am able to grow my business. that is really all i have. i would like to turn it over to chairman genachowski and welcome his remarks. [applause] >> thank you, tim and warren. you two just sum up everything i am here to say. thank you for opening up doors at living social. congratulations to all of you on your remarkable success. it has been barely two years since leaving social offered its first deal for a restaurant here in chinatown. i had a chance to seek him get

started even earlier added tiny -- i had a chance to see tim get started even earlier. leading social has attracted more than 40 million subscribers. it created a product of real value to consumers and to businesses, particularly small businesses, helping them expand their sales, lower their costs, and put people to work. living social itself has created nearly 2000 american jobs in just the last couple of years. it is no accident that i am giving this speech here. for starters, we got an unbelievable deal on the room rental, but the bigger reason i am here is that living social's story is part of a larger story. it is the same story we just heard from more and brown, who is using online tools to expand his cakelove bakery from one

store to seven, even in this tough economy, and allotting more and more customers and hiring more and more people. it is the story of detroit, where entrepreneurs are turning autoparts warehouses into tech centers and business incubators. the lions are not the only comeback story. it is the story of blue valley beats, a small business in nebraska that has nearly tripled its work force banks to e- commerce. it is the story of broadband, high-speed internet, wired and wireless, and how it is transforming our economy and the way we live, boosting opportunity all over the country and driving our global competitiveness. for two years in this job, have been speaking about how broadband is indispensable infrastructure for america in the 21st century. i have not been alone on this. each of my colleagues in the fcc has done the same.

we have refocused the agency on broadband and accomplished a great deal to help drive our broadband economy. today i would like to address and pick topics. first, why broadband is so vital to our near-term economic recovery and long term prosperity. second, how positive developments in the broadband economy give a strong reason for optimism about our economic future, and third, what we must broadband access and adoption. we're in a pivotal moment in our country's history. our nation faces tremendous economic challenges. millions of americans are struggling. most families include someone who has been unemployed during this downturn.

some worry about our country's future, worry that it will not be as bright as our past. it is also true the u.s. economy is strong and growing, opening new doors to opportunity every day. wireless broadband is thriving in private investment in infrastructure is on the rise. new broadband enabled industries, and with them, new jobs, are opening their doors every day in growing numbers on mobile platforms, as well as in homes, businesses, schools and hospitals. broadband is a great spot in our overall economy and helps light a path to broad economic health and widespread opportunity. that broadband internet is transforming our world is

something living social knows well because you're on the cutting edge. facebook, twitter, iphone tablets, the kindle, the cloud, just five years ago, these things either did not exist or we had never heard of them. now it is hard to imagine life for business without them. they're fundamentally american innovations rolled out here and being exported to the rest of the world. these exciting new products and services built on today's high- speed communications infrastructure bear the stamp innovated in the usa. there is far more innovation ahead of us than behind. we will not just be talking into our devices. they will be talking to each other. cars will be equipped with sensors that can automatically take evasive action to avoid accidents. when an accident causes major delays, your alarm clock will be

notified to wake you up early so that you can get to work on time. people with chronic diseases will have wireless devices that can notify doctors of a sudden change in condition. the changes ushered in the high speed internet are at least as promising as those ushered in by electricity. instead of appliances on the electric grid, it is now applications on the information grid. tom friedman and michael mandelbaum recently wrote, we're at the most profound point of reflection for innovation and commerce since the gutenberg printing press. our ability to meet this moment and seize the opportunities of this new communication technology is critical to our economic recovery and our economic future. [no audio]

investment in basic scientific research and development, laws that encourage entrepreneurship while safeguarding consumers, and the building in continue modernizing of our infrastructure. these pillars are inter-related. improving infrastructure support education and entrepreneurship, and vice versa. innovation and economic success have always been tied together in the u.s. railroads and roadways connect to each other, unleashing economic growth. telephones to the same. we did not get here by chance. we got here by choice. there are times those elements of the infrastructure formed the connective tissue of the modernizing economy. today, it is brought in an internet. abroad and infrastructure consists of the fiber, the cables, the -- broadband

infrastructure consists of the fiber, cables and network. $8 trillion our exchange to read these wired and wireless networks each year. if you -- are exchanged over these wired and wireless networks each year. if you shut down the internet, you would shut down the economy. over the past 15 years, even taking into account the recent difficult economic times, the internet has enabled as much economic growth as the industrial revolution generated in its first 50 years. in the u.s., the internet accounted for 8% of gdp growth from 1995-2009. since 2004, it has accounted for 15%, so it is only growing. since world war ii, technological innovation has been responsible for over half of our economic growth. in the digital age, broadband is

our innovation. it creates a previously unimaginable ability to engage in collaboration, which as stephen johnson has shown, is the way many break through conventions come about. broadband substantially boosts productivity, a key driver of sustainable economic growth. cloud computing is about to take this to the next level. i recognize that the positive link between innovation, productivity and job creation can sometimes seem counterintuitive. the destructive impact of high speed internet is as undeniable as the lost jobs at video stores, newspapers and yellow pages. but the key fact is that the internet is creating more jobs

than it is eliminating. mckinsey recently concluded a broad ban internet creates 2.6 jobs for everyone lost. two 0.6 jobs created for everyone lost. these are real jobs being created right now. companies like amazon.com apple and google have been adding jobs by the thousand. newer businesses like lincoln and twitter are adding jobs at an even faster pace, and at the same time, creating a broader job base by providing services that help people and businesses connect. recent study by university of maryland researcher put some numbers around the job creation leverage of internet companies. facebook employs a big number of people, standing alone. the developers building applications for the facebook platform means facebook is responsible for the creation of

182,000 jobs. many of these jobs are software and other engineering jobs, and that is great, because we will not succeed in the hyper- connected, hyper-competitive 21st century economy if we're not educating, attracting and employing world-class engineers. as important, many jobs being created by the broadband economy are not engineering jobs, and are not just in silicon valley and other tech centers. broadband is unable in job creation and different skill levels all over the country. the -- is enabling job creation at different skill levels all over the country. living social is proof of this. there are great engineers, and in just the last three years, living social, and grew pond and others have created street level -- groupon have created street

level sales jobs in over 200 areas. this is a point is too often overlooked. the way in which broadband internet is a catalyst for small business. consider ebay and amazon. they employ nearly 50,000 people directly. again, that is great. it is a small percentage of the small business jobs they are facilitating. more than 1 million entrepreneurs and growing, a large percentage of which are small business is selling products on these platforms that help them generate revenue to hire and pay employees. there are platforms for very, very small businesses, including one that is already generating $400 billion in annual sales. a coalition announced the

creation of 100,000 new broadband-enabled call center jobs in the next two years. all over the country, many onshore, not overseas. many of these jobs create meaningful employment opportunities for those with disabilities, seniors, veterans and stay at home parents. pioneers have had the vision to use broadband to defy old barriers and create at home jobs for people with disabilities and others. last month, when announcing 1000 new at home jobs at his company, accent marketing seo said point blank, broadbent makes all of this -- broadband makes all of this possible. it is reassuring to know that the internet is creating jobs at a faster rate than it is replacing them, but there is no guarantee of where those jobs

will be in a global economy. the world is connected. capital can flow anywhere, and jobs will follow. i hear this directly from my counterparts overseas. our global competitors want to be centers of broadband innovation and job creation in the 21st century, and they're focused on that. to make sure that the u.s. is getting a full and growing share of jobs, we have got to get our broadband infrastructure right. if we do not, we will still have a job losses, but the new jobs will increasingly be created in other parts of the world. our infrastructure will not a loan guarantee that we remain the world's economic leader. fiscal and housing problems must be addressed. our education must be improved. but a lack of broadband infrastructure will guarantee that we lose ground in the 21st century. taking the right steps in broadband can generate jobs and economic growth even as the

country tackles other issues. fortunately, we're well positioned to lead in the broadband economy. we lead in broadband innovation over all and we gained the lead in mobile, a fast-growing and critically important sector. we have the highest number of three-g subscribers, and thanks to successful sbc auctions ended digital tv transmissions -- sec auctions and a digital tv transmission, we are well- positioned to be the envy of the world. there are now more than 500,000 mobile apps, and app sales are projected to be worth billions of dollars by 2015.

just a few years ago, they did not exist. we're creating jobs and opportunity here now with huge potential for the future. the u.s. was the first to free up unlicensed white space. the first release of high- powered unlicensed spectrum, a powerful new platform for innovation. we took another step forward, announcing the testing of the first white space database. u.s. companies will have a head start in the spectrum. we will be in a position to export to the world. the promise of the broadband economy today is reflected by the private investment it is attracting. despite the slow economy, private investment is increasing substantially in both broadband infrastructure and in companies at the edge of the broadband networks.

broadband providers invested tens of billions of dollars in wired and wireless networks in the first half of 2011, a touch of diligent -- a double-digit increase from 2010. venture-capital investment in internet start-ups has returned to its highest level since 2001, attracting more than $2 billion in the most recent quarter. a new study estimates that investment in four-t mobil broadband networks already under way will add up to $150 billion in gdp growth, creating 771,000 new jobs. at construction jobs to the broad band-powered job creation by catalog earlier. since i became chairman, the sec has taken another -- a number of steps to promote the broadband economy. we set out a vision and ambitious strategic agenda for

seizing the opportunities of high-speed internet and assuring u.s. leadership in the global broadband economy. last year, we adopted a strong and balanced framework to preserve internet freedom and openness. we said these widely supported rules of the road would increase certainty and predictability in the marketplace, unleashing new innovation across the broad band economy. and as he had seen, they have -- you have seen, they have. we have lifted unnecessary regulations, streamlined processes and adopted a shot clock to speed mobile broadband deployment. we are connecting more schools, hospitals and libraries to fast, affordable internet. we have taken steps to empower consumers and promote competition. we have gotten a lot done, but there is more to do. in our country, we overwhelmingly rely on the

private sector to build out our broadband infrastructure, and that is the right course. government has a limited but essential role to play to facilitate private investment and invent -- innovation, and insure that caps are addressed. -- gaps are addressed. it must insure that the programs it manages are feasible. it must take smart steps to promote broadband literacy. consistent with these principles, the fcc is pursuing an ambitious agenda to mobilize america, connect america and empower america. we need to close four broadband gaps. first, we need to close the spectrum gap. spectrum is of course the invisible infrastructure on which mobile communications run. demand for spectrum is rapidly

outstripping supply. smartphones are now the majority of phones being purchased, and that percentage is increasing at a rapid rate. tablets are taking off. compared to the standard phones we upgraded from not that long ago, the demand smartphones has placed on spectrum is not double, not triple, but 24 times more. for tablets, it is 120 times as much. failure to free up more spectrum will stifle innovation and result in growing consumer frustration with congested networks and dropped connections. the spectrum crenshaw is the single biggest threat to one of the most promising parts of our economy. the steady the predicts the creation of 771,000 new jobs as a result of four-g deployment also warns that insufficient spectrum could cause the u.s. to go from leader to lagger in the

global competition to claim the benefits of four-g technology. 150 carriers in 50 countries have four-g deployment conditions, and if those countries overtake us, the number of new jobs will be cut in half or worse. there is much we need to do to free of spectrum for mobile broadband, but the single biggest step we can take is voluntary incentive options to allocate spectrum from older uses to flexible mobile broadband. under this proposal, spectrum licensees like broadcasters would voluntarily supply spectrum into an auction in exchange for a share of the proceeds from that option. it is an incentive-based approach grounded in market principles that would free up large swaths of spectrum while preserving a strong and healthy tv business and generating $25 billion for taxpayers. this proposal enjoys broad

bipartisan support. companies representing $1 trillion in revenue have supported it. more than 110 of the nation's leading economists have endorsed it, including nobel prize winners and former members of both republican and democratic administrations. it has even been supported by a number of tv station owners who recognize that the auctions would be a win-win. it is exactly the kind of step congress can take to help unleash investment, create jobs, and raise billions of dollars that could go both to deficit reduction and to fund the mobile broadbent public safety network -- broadband public safety network recommended by the 9- eleven commission that is still not build. this bill still has not become a lot. a spectrum crunch looms and the costs of delay are significant and growing every day. the second broad band gap we

need to close is the deployment gap. right now, about 20 million americans could not get broadband at home even if they wanted to. the infrastructure simply is not available in their communities. we cannot afford to have tens of millions of americans left out of the broadband economy. that is why we are moving to modernize universal service fund for broadband. last century, our century made a bold commitment to achieve universal access to the predominant communications technology of the time, analog telephone service. now, subsidizing the past is standing in the way of advancing the future. earlier this year, the fcc launched a proceeding to modernize this outdated program from telephone to broadband, transitioning wasteful spending to an efficient connect america fund. the reforms we are pursuing would both boost the broadband economy by extending broadband including mobile broadband to underserved areas, and

meaningfully create jobs. we're in the homestretch of our process now, with extensive focus an engagement by each of my colleagues on the commission, and a commitment to get this reform done. we are also committed to taking further steps to accelerate broadband bill down. unnecessary regulation at the federal, state and local levels can increase costs by as much as 20% and slow down the build out of these high-speed networks. i encourage congress and the relevant agencies to implement the did once concept, laying broadband fiber and other infrastructure whenever there is road construction or repair. one congressperson has proposed legislation on this. another concept that can pay dividends for our economy, alter high-speed networks and centers of intensive information, collaboration and innovation. we call for a least one anger

institution in every american -- anchor institution in every american city. it could be an important part of our national effort to close the broadband deployment gap. third, we need to close the broadband adoption gap. nearly 100 million americans, almost one-third of our population, are signed up for broadband at home. that is about a 68% adoption rate. it is true across the country. it is true here. compared to 90% adoption rate in, for example, south korea or singapore. broadband adoption, as you all know, is increasingly necessary for participation in our economy. 80% of fortune 500 companies now to all of their postings on line and require online applications. teachers what all of their students to be able to access the internet for homework or research papers, but over 50% of

kids in low-income or minority communities do not have broadband at home. a high school student from florida wrote us that she did her homework by parking outside the local library at night and connecting to its y 5. -- wi-fi. we need a better solution, and we need to close not only the adoption gap, but the related broadband skills gap. many tech positions, entry- level and more advanced, are staying open for months on end, even in this down economy. 63% of hiring managers say a talent shortage is the primary reason. indeed.com aggregate's data about job listings. according to their data, there are 12 large metropolitan areas in which the ratio of job postings to unemployed people is 1-1. a job open for every person who is unemployed.

these jobs are not getting killed because too many job- seekers do not have the right skills. as the ceo of linked in wrote earlier this month, when companies expand, they pay more taxes and consumer services, enabling other companies to expand an open up opportunities for others to be hired. while some until jobs require engineering or extensive computer software expertise, many open positions require only basic digital skills, knowing how to use a computer, how to search, how to process a basic internet transaction, basic digital literacy. other jobs require skills or certifications that can be got an on-line in relatively short time, like training for entry- level positions in the health care industry or being certified in the use of microsoft office. last week, with the fcc

engagement and support, two companies announced significant new programs to increase affordable access to broadband in the home and to digital skill training. i have challenged other service providers across the country to step up and take concrete steps to promote broadband adoption while also working with us on new approaches to programs that can and should be reformed to support broadband access. we need to tackle all of these challenges with a real sense of urgency because the costs of delay are significant and growing every day. if we mobilize america, connect america and empower america, we will grow our economy and create new jobs, boosting con to events in our ability to compete and thrive in this chamber -- confidence in our ability to compete in thrive in this changing world. a powerful indicator of the growing significance of the tech sector came a few weeks ago when apple surpass exxon mobile as the most valuable company in the world. of course, in the mid-1990's,

everyone thought apple's best days were behind them. but not steve jobs. in an interview back then, he said, "the cure is to innovate our way out of our current predicament." well, that is the right prediction -- prescription for our country. now is not the time to think small or look backward. we need to think big and build the future like we have always done. i have spoken today about the many ways in which that is already happening in the broad band economy. american entrepreneurs an innovator small and large indenting, investing in creating new jobs and opportunities today. let's build on the successes, accelerate them, and address the threat that could slow down our great american engine of innovation. that requires smart policies to extend broadband infrastructure everywhere to everyone, to seize the opportunities to expand our invisible infrastructure,

spectrum, and to empower u.s. entrepreneurs to out-innovate the world. we can do this. america can do this. thank you. [applause] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2011] >> the fcc national broadband plan is still awaiting approval in congress. it seeks nationwide adoption of

high-speed internet service, greater availability of high speed connections for wireless devices, and subsidies for rural broadband service. on good news makers," maryland representative chris van holland, ranking member of the house budget committee talks about how the committee is doing with its task of identifying 1.2 trillion dollars in budget cuts and other budget, spending and political issues. "news makers," sunday at 10:00 a.m. and 6:00 p.m. eastern on c- span. >> which part of the u.s. constitution is important to you? that is our question in this year's student can competition, open to middle and high school students. make a video documentary, and tell us the part of the constitution that is important to you, and why. be sure to include more than one point of view.

there is $50,000 in total prices and a grand prize of $5,000. for all of the details, go to c- span.org. >> now, get regular updates of what is on the c-span network with twitter. it program information, including which events are live and links to help you watch. it just go to twitter and hit follow. the latest and most instant information of what to watch on c-span, c-span to and c-span 3, now on twitter. >> this week on "the communicator's," a one hour interview with sanjiv ahuja, the ceo of lightsquared. he discusses the science, engineering, cost and political challenges of building a broadband network, as well as