nine months ago, people thought we were crazy. some have thought we were crazy the whole time. here is the reality. we know why we are here. we don't significance of this. we -- we know the significance of this. foundinghat when their fathers pledged their lives and sacred honor, their midnight runs to plant signs all over god's green earth -- [applause] the firstpledged three of those things, they meant it. every one of you has given some or all of the above. i am ambled the by that. i'm a guy that nine months ago, most of you would not have known

from a hole in the ground. yet here i stand. this was closer than many people anticipated it would be. votesow, not 50% of the are in, but we are not going to win the race and that is ok to read we have conceded the fact will have mcconnell the votes to win. that's the conversation we wanted to have. this is not what drew us to this race. i want to start, first of all, by analogy my family. whooduce, for those of you have never met them in person. this is my beautiful wife. [applause]

i shouldn't have turned around like that. that was a big mistake. i was doing great, actually. until i turned around and looked at her. i am so blessed by an extraordinary wife. an extraordinary mother. somebody who has poured herself into this in ways that have truly been above and beyond. i am blessed by nine beautiful children. awesome children. attentive, well behaved. able to act as if i am still interesting when they have heard the same thing 400 times. they are extraordinary. [applause] this is jonah over here. raise your hand.

olivia. sophia. grace. madison. mckinsey. lydia. isaac on the end. dan the man. [applause] this is not a path that any of us sought out. it is amazing how things unfold and turn out to be ways you will never would have anticipated. we have been as best as we have obedient to what we were supposed to be doing. we find ourselves standing before you, nine months after starting an adventure we couldn't have imagined. the people we have seen and places we have gone -- it is starting to sound like a dr.

seuss book. the places we have been. old places you'll go. we have driven over 40,000 miles in the last nine months. we have seen every corner of kentucky. live in ansed to extraordinary state, we really are. the people of kentucky -- [applause] the commonwealth of kentucky, the beauty of kentucky. it is exceptional. we have been blessed to interact with them to the group -- the degree we have. i will tell you this. this was never about winning a single seat. it was not. it was never about winning a single seat. this was never about becoming some new version of the same old inca read that was never what this race was about. this was about the heartbeat of

america. discussion a lot of about how this is some sort of schism, a battle for the heart and soul of the republican party. some of you have heard me discuss how this is so much bigger than this. this is about -- a battle for the heart and soul of the political process. this is a function of who was in charge. of and by andl be for the people. we be people have exercised an extraordinary voice here. we have come out -- look at the energy in this room. involvedou have been in the political process. you don't typically have this much fun, this big a crowd, this much excitement when you are in the wrong side of the equation in a campaign. you really don't. [applause]

it is not that fun. come on now. in seriousness, i am seeing some of the same people wearing the same hat that they were wearing at fancy farm many months ago. these are the kinds of things that give me -- the faces i am seeing in this room. the people i have met. the friendships i have developed, i am grateful for. this whole race has largely been about exercising our right to vote. exercising our right to have our voices he heard. it is about choices and competition. there'sng you -- i know a lot of disappointment -- nobody more than myself. i poured my life into this for the last nine months. i have given it everything i have. i have been blessed by the fact that so many of you, including those behind me on the stage, have done the same. but i am asking you to take the higher road.

bd bigger person. -- be the bigger person. returnee scorn and and that he of others with the midi -- with dignity. [applause] if we as voters, as a party, as citizens of this great nation -- if we returned fire for fire, then we will burn our great to the ground. we deserve that are than that. don't return fire for fire. don't burn this great nation to the ground. thomas jefferson noted there is nothing that gives one man such advantage over another as to

remain always cool and unruffled under every circumstance. my challenge to each of you, it's this effect to this race and every race -- specific to this race into every race, my challenge to you is to remain cool. to remain unruffled. we know when we will not forget that we have been lied about. we have been boxed out. we know we have been vertical -- ridiculed. by us i mean every one of us in this room. and yet we have held up our heads high through this process. you could feel good about that. you have held your head high. we have fought on. we fought on because we are fighting for a higher purpose than ourselves. we fought on because this is bigger than one race.

this is bigger than one senate seat. this is bigger than just another political contest. this is bigger than anything we have been involved in perhaps for many of us on a number of fronts. this is about the future of the united states of america. this is what this has been about. [applause] the attacks we have received, been on the receiving end of, have made our opposition smaller people. it has cheap and there are compos mentis. it has weakened the foundation of their platform. it has eroded our faith in the political process and our political leaders. this in fact has undermined the very pillars of our great nation. when threads are pulled from a tapestry, it distorts the

beauty. it damages the integrity. it is difficult to restore. difficult but not impossible. beingt not succumb to defined by the pettiness of others. we must be better than that. we must be bigger than that. week, and i mean every single one of us in this room started with me, we must model for our fellow citizens and the generations to come what dignity and respect look like. we must demand a better than that. we are better than that. we must do this because america is worth it. americans worth it. -- america is worth it. [applause] there is something powerful about one nation under god,

indivisible. our actions and reactions do not weaken that power. do not sully the beauty of that power. do not cheapen the value of that unique influence in the world. we have long been a beacon of light in the dark world. we continue to be. beacon noteak in -- flicker because of our response to the smallness of others. may that be can burn brighter than ever. on burnthat beac brighter than ever. this is my challenge to you tonight. do not let history show that the torch when the dark on our watch because we chose to repay lies with lies. to repay featured with heady to repay hatred with

hatred or pettiness with pettiness. go up with your heads high. greatour faith in our nation renewed, restored, encouraged. appreciation for the exceptionalism of america and a commitment to fight for its preservation. maybe -- may we be bigger than this. may god continue to shine his andr on our great land continue to bless the united states of america. [applause]

>> we love you. >> thank you. the love is mutual. i see the distance people have come. the effort they have poured in. so many of you have put so much of yourself into this. it will never be forgotten. i will ask you to understand that what is at stake for our nation is significant. this race is not done for the state of kentucky. i want to make very clear to each of you assembled that i have no intention whatsoever in this race or any other race i am aware of at this time in the state of supporting the democrat platform over that of the republican platform. i have no intention of doing that. [applause]

there is much that ails us as a nation. as a state. as communities. as individuals. in our homes, our schools, our churches. the fabric of the station is being stretched and we know that. it is not going to help if we find ourselves into being -- contributing to the shredding of the fabric. my challenge is, rise up. go out of here boldly. be part of the solution for this great nation. we need solutions and it saddens chanceay there is no the solutions will come from the democratic party. there is zero chance, certainly at the national level. that means the only chance for our nation as it currently exists and given the current structure is that the solutions must come from within the republican ranks. that is the nature of things.

to that end, be part of the solution. the -- but this be an inspiration for those of you younger than me. those of you from my same generation. let us be the ones who rise up. who stand up. somebody needs to. the somebody is always somebody. somebody -- sometimes the somebody is you during just as the somebody was me in this instance. take this challenge and run with it. walk out of here, run out of here, keep your heads up. stay engaged. support the solutions this party needs and the state needs and this party needs. don't feel you have to disburse. this is a good look of -- good-looking group of people. stay here. share stories. i know some of you do have tight time frames, but before you do,

introduce yourself to at least one person you do not know. take a moment to introduce yourself to one person you have not met. ask them why they are here. ask them what drew their attention to this. take that away. we are the tapestry. we are the fabric of america. we are the future of america. i think you for being here. i think you for your support. you for being here and i thank you for your support. thank you very much. [applause] [applause] mcconnell will face

the democratic nominee. the louisville paper says that several hours before the polls group, a political action announced it would begin airing ads prickle of ms. grimes. nearly $600,000 over the next two weeks. she spoke with her supporters in lexington. >[applause] >> thank you.

thank you. good evening, kentuckians. [applause] kentuckians, it is an honor to stand before you as your nominee. [applause] you for the overwhelming in thence that you have campaign we together are running. and the race we will win in november. [applause] we will take this fight to mitch mcconnell and hold him accountable for his 30 years of failed leadership. [applause] together, we will make history and kentucky will finally get a senator who puts people above

partisanship. one that will work 24 hours a day, seven days a week, 365 days a year to improve the lives of kentuckians. help them find jobs. make it a better place to live. [applause] we celebrate the support, the overwhelming support we have received all across the commonwealth of kentucky. senator mcconnell thinks he is old of -- he is above all of us here. literally flying around the state the night before the been andwhile we have will continue to be on the ground in every corner of the commonwealth of kentucky. [applause] recently in a 10 day, 50

county bus tour where the energy and enthusiasm was contagious. democrats, republicans, it and independents coming together and embracing our vision. ending theout gridlock, the obstruction, the extreme partisanship in washington dc that mitch mcconnell championed. on behalfu.s. senator of the commonwealth of kentucky that will work to grow the middle class, create jobs, and help create a better commonwealth of kentucky. [applause] as we stand here tonight, i have each of my family members. my husband, andrew. my parents. my sisters. ashley, who celebrate a birthday tonight.

[applause] and amy. dr. and mrs. grimes. my grandmother, who could not be with us tonight but is one of the fiercest kentucky woman i know. she taught me anything i can set my mind to, i can accomplish. each and every one of you. my aunts and uncles, cousins throughout the commonwealth. you have been with me as i have sought to be the change i believe we need. i am forever grateful. i want to thank the governor. governors brown and collins and carol and patton. they have been a part of this campaign. collins has traveled everywhere on the bus tour with me. [applause] fellow constitutional

officers, members of the house and senate who have been with us every step of the way. to my hard-working talented staff who has led, under the direction of campaign manager jonathan hirsch. you have an unwavering commitment to help us move this state and nation forward. most importantly, to each and tonighte of you here and joining us across the television screen. it is because of you, your prayers and persistence. you are getting out to work each and every day. is why we stand here tonight with a brighter future of touch with the possibility of a brighter future that awaits us in november. [applause] my three thank opponents in today's primary

election. and to matt bevin who led a spirited campaign against senator gridlock. [laughter] for stepping forward. i know it is not easy being a candidate. trust me, i know. but i believe our great democracy is at its past when that it's best when people step forward to have an exchange of ideas. kentuckians toe join us in our common cause. a fresh, independent voice in washington that finally put kentucky, not washington partisanship first. [applause] will make a change. we celebrate here tonight, but

make no mistake. our work continues tomorrow. let us have no allusions -- illusions about what is ahead of us and what lies ahead. millions of d.c. lobbyist insider dollars and out-of-state political action committees. mitch mcconnell is going to try to buy his way back to washington dc with deceitful, untruthful, negative nasty ads that will try to distort and distract from his failed record. he wants this campaign to be about anything but his record. about a man who has been in washington dc now 30 years in the senate? he has no record to run on? it can only be on attacks and misleading information that he runs a campaign. [applause]

mcconnell would have you believe that president obama is on kentucky's ballot. know that senator mcconnell has been in washington a little bit too long. [applause] so out of touch that he can't all the difference between soup jersey and the university of kentucky. let me set the record strai ght for our senior senator. president obama is not on the 2014 election ballot. nothing about this election will change who was in the white house, but we can change who is is in washington dc and put somebody for the common love of kentucky --

commonwealth of kentucky. this race isnell, between you and me. that is the name that appears on the ballot. [applause] as you said so many years ago, priority tober one make sure senator mcconnell does not see another term. [applause] mitch mcconnell, he wants to tell you who i am. he has said -- he claims kentucky will be lost if we trade in his seat for a kentucky woman he believes will sit on the back bench. i am here to tell you tonight,

my fellow kentuckians, i am not an empty dress or a rubber stamp. i am not a cheerleader. i am a strong kentucky woman who is an independent thinker. the decisions i make will be aret her breast -- what ou vesbest for the people of kentucky. next senator, i will answer to the people of the state. i will not answer to the president no matter who he or she might be. [applause] as a proud kentucky woman, i will speak for myself and in no kentucky woman, mitch mcconnell,

will sit on the back bench. [applause] know washington is broken. it is not working for kentucky. it is mitchrs, mcconnell at the center of the gridlock. kentucky is tired of a senator who proudly calls himself the dr. of no. the guardian of gridlock. we deserve a senator for the state.of cap -- this [applause] it is not about party control. differentt two very visions for the commonwealth of kentucky. one that wants to take us forward where we deserve to be. yet there that wants to hold us

back as he has for the past three decades. mitch mcconnell stands on the wrong side of every issue out there for kentuckians. when it comes to increasing the minimum wage, he has voted against it 15 times. never gone without a pay raise for himself. worth on thes net backs of hard-working kentuckians that cannot afford it. he says it is the last thing he will put his name to. one i am the senate, it is the first thing we put our names to. senate, itm in the is the first thing we put our names to. it is not a minimum wage, it is a living wage. each and every kentucky and deserve to live the american dream. when it comes to the wyndham -- women, he is on the wrong side of every issue, voting against

the violence against women act. the lilly ledbetter act. up to protecttand kentucky past women against violence, you don't deserve to be you a -- as your next united states senator, all work to make sure that kentucky women get equal pay for equal work. $.79 on every dollar is not acceptable. [applause] and let's get the record straight. on mitch mcconnell's watch, not mine, that we have lost thousands of jobs. it is on his watch, not mine, that we've gone without the necessary funding to implement clean coal technology.

it's on mitch mcconnell's watch, someine, that overburdened regulations have been imposed on the commonwealth of kentucky. this election will be about holding you, senator mcconnell, accountable for all that has happened on your watch. the three words that scare itator mcconnell the most, is pro-coal kentuckians. i don't agree with the president 's war on coal. i think it is wrong for kentucky. we cannot afford to have six more years of mitch mcconnell in washington dc either. as kentucky's next united states senator, i will fight to make sure that coal has a long-term place in our national energy policy, that would actually have the funding to implement clean coal technology and we restore

aal to its rightful place as fine american export. anything that you hear to the contrary from mitch mcconnell is a lie, kentuckians. when it comes to the veterans of this state, 350,000 veterans that we have in the commonwealth, the fourth-largest in the nation, mitch mcconnell voted against him as he votes against making permanent without to hire heroes act. i will continue to champion an advocate on behalf of our kentucky heroes and mark to make that act permanent. [applause] and for our american working men and women, mitch mcconnell doesn't want you to have a voice. that collective bargaining is a fundamental

right for our american workers. i will have none of the right to justlegislation, it's another name for union busting. it is labor that has lifted millions out of poverty. [applause] job thatomes to the you know we so desperately need here in the commonwealth of where senatornow mcconnell has been. his votes have been on the wrong side of every issue. got the admission as he went to the eastern part of the state just a month ago, told eastern kentuckians whose unemployment is nearly twice the national average, 14%, in response to what will you do to help bring jobs back to the state? he said, and i quote, it's not his job to bring jobs to the commonwealth of kentucky.

we can't afford to have a senator who doesn't believe, as i do, it is a number one priority to help put hard-working kentuckians back to work. this race is about someone who, for 30 years, has never put forth a jobs plan, doesn't believe in his disposability, and won't fight for the people of the commonwealth of kentucky, and someone who is the only candidate in this race who has a jobs plan that we developed together. mcconnell, i will rise every morning and go to bed every night with the burden on my back of helping to put kentuckians back to work. that's the job of united states senator. [applause] it is making sure the

boilermakers in eastern kentucky who cannot put their suitcase in a yard sale because they might , has a to go find work way forward. it's the mother of a six month old who doesn't know how she's going to be able to provide for her young daughter because of a 16 day government shutdown that mitch mcconnell caused. mistake, there is no silver bullet that will solve all of our economic woes, but it is about two things. one, having a senator that believes it is their job to help grow the middle class and put kentuckians back to work, and the senator has a plan to get us there. it's about doing the right rings with the proper investment. kentuckians, together we will get there. then let me tell you, this election comes down to one

thing. if you think that washington is working for you, that they are in touch with you and your years, that the last six you would like to have them read duplicated, then you keep that senior senator in washington until 2020. but if you are like the majority of kentuckians and you think that washington isn't working for this state, that mitch inonnell is out of touch washington, and we want to have a better six years, then i invite kentuckians all across the commonwealth to join our campaign. together we will rid kentucky of a man who hasn't worked for us in washington, won't work for us in washington, and replace us with a fighter who will. we must do better. we can do better, and together, we will do better.

thank you. god bless each of you and the commonwealth of kentucky. [applause]

>> what i'm trying to say is fraud kills. and it is nonpartisan fraud, and we got to do something about it. we don't have unlimited budgets and money that gets wasted on a building that's ever going to be have helped some people here in the united states. you keep seeing this again and again. i'm very proud to work for this administration. and i think it is important that , inspectorize general's are independent. important that the people see that the government

does care, and there are a lot at the stateople and the pentagon that care about wasting money. american taxpayer dollars are spent on reconstruction in afghanistan. 8:00 on c-span's q&a. >> in a few moments, the head of the house financial services committee, congressman jeb hensarling of texas. minutes, embers of congress hear from the head of the fec about communications issues. >> on the next washington journal, we will look at the immigration issue in congress with republican representative louie gohmert of texas, a member of the judiciary committee. by a member ofed the armed services committee. she will take your questions

about veterans health care, defense programs, and u.s. policy toward ukraine and syria. minutes, embers of congress hear from the head of theand brian bergsten, deputy editor of the m.i.t. technology review, will discuss the significance of breakthrough technologies from the past. live onon journal is c-span every day at 7 a.m. eastern with her calls and weeks. >> now, the head of the house financial services committee, republican representative jeb hensarling of texas. he spoke at the heritage foundation for a little less than an hour, continuing his opposition to the export import bank. >> welcome, ladies and gentlemen. 10 years ago, tom delay famously observed that after several years of her couple can control, there was no fat left to cut in the federal budget. it was a statement that was

memorable for two reasons. face, it was on its absurd. anybody from right to left can't agree there is stuff left to cut. it underlinedly, a fundamental truth about how washington, d.c. works today. for every single dime in that federal budget, was spoken for by some washington special interest which would lobby intently to make sure it went forward. washington, d.c. is not broken. it is a well oiled machine, making sure that those powerful enough to hire a lobbyist get a tax loophole or it vantage in the spending control code or regulatory preference that helps prevent competition. the heritage foundation was founded 40 years ago to dance and served public policy and educate lawmakers on what those policies are. increasingly over the last 10 years we were gone to a number of congressman's office and find that after our educational visit, a team of lobbyists would lined up and say here is how

business is actually going to work in washington. that's why we started heritage action several years ago, to make sure that the voice of millions of taxpayers was represented in washington along well-financed special interest. earlier this year we held our conservative policy summit and featured bills like the higher education reform and opportunity act. we are also big believers that the only way to have a reform agenda is to be willing to take on the sacred cows in washington who believe in tax reform and spending reform and believe in reform to the regulatory code. that is why we are thrilled to have our speaker here today. hensarling is former chairman of the republican studies committee, and he currently serves as chairman of the financial services committee where he has been unafraid to ask difficult questions such as

if private creditors are unwilling to engage in the transactions at the export import bank, it begs the question, why should the american people? we are firm believers that more these questions need to be asked. that is why we are thrilled to welcome chairman jeb hensarling to speak with us today. [applause] >> thank you for the kind introduction. i must admit listening to it, people or hearing it for the first time, they might conclude this guy cannot keep a job. anyway, please know how thrilled i am to be speaking from the the visiondium and of ed fuller is alive and well today. of few organizations across this great republic of ours that have done more to strengthen and invigorate the cause of liberty.

that my former house collie, jim demint, continues to lead that fight, and although you may think about him as a senator, to me he will always be a house guy. homerday i flew in from my in dallas. some of you know that i live in dallas. i work in washington dc. was getting ready for this beach, i recall the time, probably seven years ago, that i got stuck in washington on a weekend. it doesn't happen often. it happens occasionally. to seeingn are used me on the weekend, so i called home. my now 12-year-old, then 50, i spoke to her on the phone and we were chatting a little bit. she finally said daddy, what day is it? sorry it's saturday, i'm i'm not home. she said that's funny, daddy, it's saturday here, too.

the things they teach in kindergarten. so we continued to chat a little bit longer. after while she said daddy, where exactly are you? i said you know, daddy works in washington, d.c. she said daddy, is washington dc part of america? at a time observe when the federal government has clearly grown too big, too powerful, too arrogant, too expensive and intrusive, that an innocent child's question about washington geography of a number of years ago remains a very searing western about washington principles today. i think it seems to all that most liberals tend to equate their country with their government. enlighten centralized,

centralize government to control and decide all questions and disputes. elitevernment of the whose principal purpose incidentally is to redistribute incomes and ensure equality of outcomes. to them, washington, dc is fair america. but we conservatives know differently. the genius of america is not to be found in washington corridor doors of power and favor. no, instead, we know that the true america it is in the founding and enduring bedrock principles of our republic. namely faith, limited government and unlimited opportunity of individual freedom, and of course free enterprise. more and more americans today are experiencing the failures of liberalism boss washington and the broken promises of obamacare to the abuses of the irs to an economy of strength -- treating paychecks and growing food stamp dependency. i believe the moment is right to make the case to the american our republic cost

bedrock principles are not just a matter of heritage or birthright, but they remained a vision for a better future for us and our children. it's a vision of road and not austerity. it is one of hope and opportunity, not hesitation and dependence. it is a vision where honest men and women who work hard and play by the rules have an opportunity to succeed regardless of the circumstances of their birth. it's a vision that accepts no limit to how far we can go because ladies and gentlemen, we are americans. [applause] but before we can seize this moment, our movement must have a frank discussion and an understanding that one of our bedrock is, the principle of free enterprise. how we think about it and act upon it is the subject of my talk today.

nost, there's probably better discussion in the principles to be found in that which is contained within milton friedman's classic work, capitalism and freedom, and of course i cannot be more happy to see the great repressor's photo in the room when i first walked into the heritage. with a washington dc address would only read capitalism and freedom and understand it. even though i have a lost all hope, this weekend i saw my former senator phil gramm, and former texas a&m economics professor, and i recalled something he once told me. he talked economic to aggies and i've taught it to members of congress. aggies are smarter. member ofggie and a the house, i could not agree more. whether it is through a public-private partnership, industrial policy or chronic capitalism, regrettably a great

deal of economic activity that masquerades today as free enterprise is not. for the sake of our republic, our movement must unmask the imposters and come down clearly on the side of free enterprise. i must confess i never really liked the phrase crony capitalism. issuggests that capitalism corrupt. when a free enterprise system is actually the most there and moral economic system ever devised by the mind of man. no other economic system has ever lifted more people out of poverty. there's never been a better housing or health care program, antipoverty program, then the american free enterprise system. there is no other system that allows people to earn their success through merit, to hard work and creativity, personal responsibility, and individual initiative. no other system generates greater share prosperity. this is the economy than most

americans want to work in. i think about it a main street competitive economy. crony capitalism and something different. with chronic capitalism, success is arranged typically through government granted favors to those that have the best political connections. crony capitalism slows economic growth and redistributes income. it can actually read corruption and undermines the legitimacy of both our state and our free enterprise economy. it's what i call the washington insider economy, but regardless of its name, for generations it has been a threat to our conservative principles. consider this. the same year the founders rejected freedom for tyranny, the wealth of nations was published. adam smith repeatedly warned against businesses that use political connections and influence to manipulate government into doing their bidding. people of the same trade show me even for merriment and

diversion. is ahe conversation conspiracy against the public for some contrivance to raise prices. later he warned, the proposal of any new law and regulation ought always to be listened to with neverprecaution and ought to be adopted until after having been long and carefully examined , not only with the most scrupulous, but with the most suspicious attention. someone, anyone, in the obama administration would have had some much-needed suspicious attention to solyndra. smith's warnings from two centuries ago demonstrate that seek fromsinesses government special treatment not available to others. are why business interests not necessarily freedom centers.

to support business does not necessarily support re-enterprise. our nation's original patriots understood this. that's one it through three shiploads of tea into the boston harbor in 1773. they did not do it because it raise taxes but because it created tax-free status to the favored east india company, giving it a virtual monopoly. you might say the east india company wasn't early government-sponsored enterprise. -- was an early government-sponsored enterprise. main street competitive economy relies on hard work, creativity, perseverance and a uniquely american can-do optimism to create wealth and hope. the washington insider economy, in contrast, provides earmarks, regulatory barriers, tax preferences and of course political influence. the main street competitive

economy is exemplified by people like wayne williams lives in the fifth congressional district of texas that i have the privilege of representing. four yearsng nearly in the navy, he came to mesquite, texas, got a job at the local ford dealership. to earn some extra money he started repairing cars on the weekend. he built a reputation for good, solid work at a fair price. many, wayne dreamed of someday being his own boss. he sold his pickup truck and his a small loan from a local bank and opened his own repair shop in 1972. today williams paint and body has 21 employees in the business has been so successful that lane and his wife evelyn were able to pass it on to their children. that is what is so great about our country. wayne told me i was just a poor country boy who wanted my family to have better than i had.

and thanks to wayne's hard work and the main street competitive economy, they do. washington insider economy, on the other hand, is exemplified by people like chris, the founder and former ceo of the now bankrupt solyndra, who personally lobbied for $535 million taxpayer backed loan guarantee. when it arrived, he famously sent an e-mail to fellow solyndra executives calling the bank ofministration the washington. regrettably, when washington is the bank, taxpayers usually end up losers as well. you may recall the loan did go bad and the so-called bank that we got we also had to provide another bailout. as governor romney famously told the president, you don't just pick winners and losers, you pick losers. theye mainstreet economy,

are not expecting a government bailout and not looking for subsidy, earmark, or tax reference or any kind of legislative advantage. the good folks in the main street competitive economy simply wanders a test to depend on how hard they work in their hometowns, not who they know in washington dc. confusion between the two economies is cause many to be a success with suspicion in the term makes it easier for liberals to mislead our fellow countrymen and call for bigger government in order to legislate fairness. fornd gentlemen, i believe far too long conservatives have shied away from talking about fairness. seemingly content to yield its value to the left, is we do at our own peril. all americans have the right to expect their government will treat them fairly, and that means everyone plays by the same rules. not one set of rules for the lyrically well-connected and another set for everyone else. [applause]

let's look at just a few examples of how the washington insider economy is unfair to hard-working american taxpayers in the main street competitive economy. the tax code. need i say more? it is mind numbingly complex. cost americans roughly $225 billion a year simply to comply with it. it's a disgrace. we all know it. you ask why. perhaps the biggest reason is because washington loves to use the tax code to pick winners and losers. from professional sports leagues to broadway producers to the president's own energy -- green energy cronies. they receive preferential treatment not available to hard-working shopkeepers on main street. ladies and gentlemen, that's not

fair. it's time for action. let's turn the american people's frustration and resentment with our unfair tax code into a groundswell for fundamental tax reform. today come i call upon every republican in congress to agree to scrap the code. we may have to tell some people on k street no so we can help every american and tell them yes. [applause] be in fair tax or flat tax, let's not just say we're for fundamental tax reform, let's actually vote on it. subsidies. in addition to our unfair tax code, there is the washington collection of crony subsidies. unfair burdens on taxpayers which is especially damaging given our nations spending driven debt crisis. as my friend and heritage scholar steve moore recently pointed out and report, business

subsidies are very small and inconsequential part of the budget. the reality is the subsidies are a large mountain of cash that has amounted to more than $20 billion in direct income transfers to corporate america. fortune 100each company received about 200 million dollars in such handouts from hard-working american taxpayers. that, ladies and gentlemen, is indefensible. there is the byzantine array of subsidy programs and mandatory target price programs that constitute the farm program. the beneficiaries of these programs like to hide behind the image of the sainted, iconic family farmer. in 2012, median farm household incomes exceeded the median u.s. household income by 34%. in fact, the median income of households associated with commercial farms was over

$208,000 per year. nowhere in america, and certainly not in the fifth district of texas, is in income over $200,000 considered poor. in addition to the iconic family farmer, there is the iconic symbol of apple pie. american as apple pie. but isn't it embarrassing to think that baked into every american apple pie is soviet style sugar? this washington insider sugar program is a sweet deal for about 5000 sugar growers whose lobby is inordinately powerful in our nations capital. for the millions of hard-working taxpayers and consumers of the main street competitive economy who are forced to pay for it. i proudly stand before you as the son and grandson of farmers. i grew up working on my dads poultry farm. my very first job was cleaning out chicken houses.

wonderful training for serving in congress. i can tell you everyone worked hard on the poultry farm. there were some good times and some tough times, but i know firsthand, you can farm in america without taking a taxpayer subsidy. to reign in the e.p.a. so i call upon all republicans in congress. let's make the next farm bill the last farm bill and let's have a conservative farm program and once and for all let's allow all americans the freedom to farm. [applause] now, i'm sure you've been as troubled as i have recently to like "lawmakers push to have a congressional

earmark ban." it just goes to show that a earmark-free washington is eternal vigilance. as my friend said earmarks are he gateway to spend in washington. power triumphs over merit. secrecy over transparency and special secret triumph over the national interest. i call upon all republicans in congress to leave the earmark ban in place. [applause] let's turn to g.m., wall street, fannie, freddie, the washington insider economy is turning us into a bailout nation. few americans have been interested in occupying wall street. they're just tired of bailing it out. we certainly don't want a telling us rnment

we're too big to fail. if we lose our able to fail, we will soon learn our able to succeed. and how is it in america that bailouts and chrysler the u.s. w bailouts were fine. but thousands were left holding the bag. no discussion of bailouts would be complete without mentioning bailouts of all freddie and fannie mae. these virtual monopolies allowed them to monopolize their losses and restore their losses. 's time to end the boom/bust

bailout cycle in the united states of america. and i say this to my friends in the housing industry, think i may have a few left. the best housing program in america, it's not a subsidy and it's not a federal guarantee. it's a growing economy that's the housing program that works. it's time for the republican party to live up to its pledge to end the reign of fannie mae and freddie mac. to end the almost 2 $200 billion bailout and that's exactly ha the pass act does and i certainly want to thank all those who are associated with the heritage foundation for their good work to help further this legislation. for ss act it stands protecting american tax acts. it will end these crony corrupted giants once and for

all. it's time for action. i call on every republican in congress to support the path act today. [applause] the last issue i wish to discuss with you today is the federally charter export bank. the authorization ends in september. given that i suspect fewer than one out of 1,000 have ever heard of the bank and given that relative to the other 10,000 federal programs, agencies and departments it's of relative modest size, it kind of begs the question, why is this an important debate? why is this organization an important matter? it's an important matter because i do not know of a better poster child of the economy in corporate welfare export/import bank.

it's demise would be bad for the economy. i believe it's a defining issue for our economy and for our movement. the reauthorization debate goes to the heart of the question. which economy do we believe in? st tax payers would be surprised to learn that a government-run bank takes their hard earned money and lend it out to china and russia. it also lends the money to the saudi arabia and the united emirates. independent even lends taxpayer money to the likes of the congo which has a history of human rights abuses. i doubt too many taxpayers would be proud of this. as many of you know they

arguably serve the purpose of supporting u.s. jobs through the expansion of u.s. exports. supporters of the x.m. bank pushed forward ms. jenny fulton. i have no doubt she's a fine lady, a good businesswoman. i bet you she export as good pickle. but when it comes to dollars and not pickles ms. fulton and small business owners like her are a very small part of x.m. the real beneficiaries are the multibillion dollar corporations like g.m., ford and boeing. that's because more than 60% of their financing benefited just 10 large corporations last year. roughly half to business supports boeing aircrafts alone. earning the bank its common nickname the bank of boeing.

does anyone doubt that these mull fi billion dollar companies would do just fine without the corporate welfare? don't get me wrong, i like and expect these companies. and i especially like in respect the jobs that they create. but i think most hard working taxpayers would be scratching their heads if not throwing a fit at the prospect of their government using their money to support a boutique export credit agency for some of the largest and deep pocketted corporate titans in america. now, again although few americans have ever heard of the export/import bank, i suppose the bank will remedy that situation as we get closer to the end of their organization. i have in doubt you'll hear from exmple -- exmple m. x.m. is not showing you both sides of the ledger.

rather than actually creating net new jobs x.m. simply shifts production from one sector of the economy to the other. that's precisely why the government accountability office has reported that government programs like the export/import bank may largely shift production among second pors within the economy rather than raise the overall level in the economy. or if the professor from may onuniversity sum it up, at best the x.m. bank creates jobs in industries by destroying jobs in nonexport industries if you were to ask delta arealines they would point out that x.m.'s news has kill as many as ,500 jobs because the bank subsidies their foreign competitor. caterpillar went to an iron/ore

mining project that went to australia's single richest citizen. they said they would no longer be able to compete with its australian competitors due of the x.m. subsidy. this is how jobs are created? another american competitor feeling the sting of x.m. is valero energy in my native texas. they are lending $640 million to bailed new refinery in turkey. refining jobs and under mining the strength of the u.s. refining infrastructure so president o to the of x.m. you will also hear from the

x.m. bank. we make money for the taxpayers. well if that were the only test perhaps we should go out as a government and purchase a profitable hamburger chain and rename it uncle sam's burgers and fries. if ruined by the federal government it would assuredly not remain profitable and more importantly i do not believe that our comports with our vision of the proper role of government in a free society. besides the x.m. bank supposed profitable operation is suspect. their money to use then there would be an argument that would show a $200 million loss instead of a gain. e see that the bank's programs currently shows on its budget. this means that the programs cost the american taxpayers far

more to operate and deliver far less revenue as a return than the bank claims. does this remind everybody of that counting game ks fannie and freddie mapped back in the late 1990's and early 2000? think about it. even if they were making money as it claims, you know what, fannie and freddie made money until they didn't. the national flood insurance program made money until it didn't. social security utesed to make money until it didn't. history teaches us that sooner or later every government insurance almost without fail will fail. the next argument you will hear from x.m. is we feel in financing gaps. what gaps? er 98% of all american exports are without the

export/import bank. every every other is perfectly capable. does x.m. mean they're providing financing where the private sector won't? doesn't that kind of beg the question if the private sector won't undertake the risk? why is x.m. forcing the taxpayers to do so? the next argument about k.m. comes directly from president obama. as long as our global competitors are providing financing for our exports we've got do the same. it kind of sounds like the very same argument i hear from my 10-year-old and my 12-year-old. everyone else is doing it, daddy. i've never found that argument to be terribly persuasive. if other countries want to czyz the products they sell -- z the products they sell us maybe we

should pay them not copy them. if we're on the hook with the rest of the world, the truth is that only a little more than 1/3 of the export-import banks book of business is used to compete with or foreign competitors export subsidies. here's an interesting one. it's the reauthorization debate begins to heat up. some of the banks beneficiaries are running ads claiming that president ronald reagan was one of the banks biggest fans. >> well, ladies and gentlemen, the truth is president regan tried three times to zero out the banks direct lending program and he actually succeeded in reducing its organization by 50%. on x.m. listen to the gipper "is it fair to ask taxpayers to help pay billions for export cities to a handful of america's biggest corporation and the resounding answer there

the aud was -- audience: no. >> president regan would be proud. whaps what's most disturbing is the political lending that which is id logically base and crony based. the bank is mandated to support specific sectors. as a green energy quota. it permits almost no assistance for gold projects. and a mandate to physically support sub sahara africa. >> it has a small businessman date as well. in other words as milton freeman says x.m. substitutes the jum of bureaucrats for that of the marketplace. then there's the banks more crony based political lending. again, last year more than 60% of x.m.'s financing benefited. they didn't have a strong political presence in this

own. ecently avegoa received a lone while bill richardson simultaneously sat on the spanish company's advisory board on x.m. as well. ladies and gentlemen, some things don't pass the smell test. $10 million in loans to benefit selindra. as i read the history it almost got its hat selindra start at an obama fundraiser. i have no doubt that they will support it. they're only too happy as part of the political process. democrats are always happy to zwi corporate america as long

as they can rell late it, control and reward the friends. le lem take ownership. let us proudly stand for fairness. let us proudly stand for the main street competitive economy. today i call upon every republican in congress to simply let x.m. expire. exit american taxpayer x.m. [applause] it's a smart and fairway to promote american exports is with a conservative agenda, fundamental tax reform, strong free trade agreements, a free zone and american led independents led by the the pipeline. washington is a target-rich viral. and although i have not run out

of examples i'm sure i am running out of time and perhaps your patience. so what's the cost of a export/import bank and the rest of the washington insider economy? academic studies suggest as high as 7% of g.d.p. cost. that means the average annual cost can range from $1 trillion to $3.5 trillion. there's even a far greater cost. the true cost is that too many americans now believe that the system -- the snm america is rigged that it's unfair that free enterprise really doesn't work or can't work for them. you know how the argument goes. 1% say it's a 99% vs. country. he greed of the few have

improv rished many. to suspect is something to be suspect, something to be vilified. we have become very familiar with their narrative. our narrative must be that free enterprise is fair. only free enterprise is moral. only free enterprise is empowers of the common man and woman. it's the only economic citizens that frees ordinary people. like my constituent lane williams to build his own successful business and leaving it to his children. another such person is christian yorget. and aped communist escaped to the u.s. the immigration officer asked him why are you here? he replied with one of the few english words he knew? freedom.

to make ends meet and learn english, he took a job at a new york city limo driver. today over a quarter century later, he's a silicon valley c.e.o. who raised $13 million for his cloud based analytic platform. ladies and gentlemen, that's america. and that's the main street competitive economy. the most amissing thing that america has given me is the freedom to build somethng from nothing, he said. free do that's what this debate is about. and ladies and gentlemen, isn't that what almost every debate n the federal city is really about at its core? it's a debate whether we should continue to be the free republicans. or whether we are december stinned to become a social welfare state of the 21st century. the answer to that question lies collectively in the hands of our movement and our party.

it is our opportunity and it is our imperative to reform the corporate welfare state. it is right. it is necessary. for then and only then will we have the moral authority and the popular support to reform the social welfare state and that is the entire point of my talk today. so this is a call for action for republicans and conservatives today reject the washington insider economy. let the democrats embrace it. let's embrace its fairness, its empowerment and when we do america's future will be one of unparalleled freedom and growth. we're all children who will be bound by the size of their dreams. a future where you succeed because of your ability and ambitions not because of who you know in washington. at the owned the day, his

future is not in my hands as one loan member said to the hourps. it is in the hands of the great citizens of this great republic. we remember the quote "people the only sure reliance for the preservation of liberty. let us all leave this hall today and be about the preservation of liberty." thank you very much. [applause] >> apparently i just volunteered to take a few

questions. es, sir? >> you mentioned about global competitiveness in x.m. category. the free market might dictate that the jobs here in the united states because of attractive things because they haven't fixed our tax code, haven't reduce our regulatory burden, having reduced the cost of litigation which makes making things in the u.s. more expensive than other places. what do you think the imply cases can be after we source things anywhere and will that keep the x.m. bank? >> i think roughly over 1/3 of x.m. goes to meet supposedly competitive cities of other who is export. i would say that there are still great advantages for businesses to be in america. i'm happy to see that there is a resurgence of manufacturing

and again over 98% of u.s. exporters finance without the benefit of export/import. i'm not sure again that two wrongs make a right. i'm also not sure how i tell wayne williams in mesquite texas because he doesn't do paint and body work for people in china or russia why is it that the federal government will subsidy a small business that exports but won't subsidy a subsidies a business that's serving the economy in mesquite, texas. i want us to be the envy of the nation. as chairman of the house services committee it's our goal to produce the most liquid, most innovative transparent capital market the world has ever known. i want america to have every competitive advantage but the competitive advantage comes from the freedom, the hard work, the ingenuity of the

american people. again, i respect those who have a different opinion. i have a number of friends on the other side of this debate kind of why we have these debates. but again i don't want to get -- i don't want to force the tax pay dwrorse be engaged in a subsidy arms race. i don't think that's the way we help our export industry. yes, sir? >> thank you, plch. i apologize i'm going to bring the question a little more domestic for a moment. a big part of your speech was freedom. looks at it from a domestic standpoint, how much of a threat on freedom do you see operation choke point? >> as it's cracking down on domestic bazes across the board. >> well, the short answer is a lot. i think one of the great threats to our freedom is how much power has been yielded

from the female their government. and then how much power has been yielded from article one of the constitution to article two. and then to the bowls of the bureaucracy of article two that are not transparent, are not accountable. you know, my job contract comes up for renewle every two years. if people don't like me they have the opportunity to vote against me. i still hold town hall meetings where i assure you my constituents are quite good at holding me accountable. that's not the case in something that's like operation choke point. clearly had congress wanted this done, congress would have acted. it's a reminder of what a threat it is to have a freedom who has a president that has the phone or pin but doesn't have a copy of the cushion. so the short answer is a lot.

so you got the short answer and the long answer. yes, sir. it better be a good one because i was informed it's the last one. >> i'll try. are you considering running for speaker? >> i was happy to see johnny manziel drafted by the cleveland browns -- [laughter] listen, i'm flattered when people ask the question. i am not -- it's not something i've as pyred too. it's not something i'm thinking about. it's not something that i'm working on. i see no reason whatsoever why it is in the interest of the republican party tor conservative movement to really be thinking about leadership races. , i haven't been shermanesque. i'm not sure there is an opportunity i want to

foreclose. i have a small property in henderson county. i may want to run for county commissioner one day. it's not something i'm thinking about. it's not something i'm work on at the moment. -- i'm working on at the moment. so again, i don't find that to be in our best interest. i just get up in the morning trying to figure out what i can do to make a difference, to make a difference for the cause of freedom. i will say this again. i'm not going to be shermanesqued. and i'm not a betting man. i would anticipate although there are no guarantees in life that i would -- once again have the opportunity to serve as chairman of the house financial services committee and that would please me to know but again, i will get up every morning trying to figure out what i can do to make a difference for the cause of freedom because i love this untry deerly and -- dearly

and as a father of a 10-year-old and 12-year-old i'm not inl different to their future. thank you for being here and the patriot all work done. thank you very mufment -- much. [captioning performed by national captioning institute] [captions copyright national able satellite corp. 2014] >> and later on that element of the democratic party shrunk to

nothing. and as it did, i was without a home. i remained generally without a political home. but, you could obviously fairly call me a neocon serve active. > charles krauthammer on c-span at 8:00. his book available at your favorite book seller. >> the house foreign affairs committee at a 10:00 a.m. on the schoolgirls abduction from boko haram. and debra jones will be speaking in washington about the growing violence in libya. since the fall of muammar gaddafi. live coverage begins at 12:30 astern.

what i'm trying to say is fod kills, ok? and it's not partisan, frog. we don't have unlimited budgets. and money gets wasted on a building that's never going to be used. it could have helped some people here in the united states. and you keep say seeing this again and again and again and again. i'm very proud to work for this administration. and i think it's important that people realize i was pointed by the president. and inspector generals are independent. and -- but it's important that the people see that the government does care and they a lot of people care about wasting money. sunday night at

8:00 on c-span's q&a. >> the head of the federal communications committee tom wheeler told members of the congress on tuesday that the fcc was following a court decision. they could allow internet con ten providers. scombr the proposal is in responds to the decisions and their net neutrality rules. this is two and a half hours. we'll call to order the subcommittee on >> chairman of the federal communications committee mr. wheeler. we're delighted that you would make time and spend with us on this important day with so much

going on on the telecommuniques world. >> six months ago this subcommittee worked with a compliment of fcc commissioners. today and let me welcome mr. wheeler back. we need to review the record of ction and celebive inaction. . given some of the most recent actions, i fear that we may be heading into rough waters. and his colleagues. first, i urged them to head the words of congress which it has spoken contrary to congressional intent. second, even though semmingly committees. and going to have a significant impact on the project place. in some my advice was that they

must approach their duty with hill mary and destrength. mied a invite was ignored in december we had yet to know that the d.c. court of apiece would speculate as to whether the congress is leaving. sadly, we now know the answer. the item the committee adopted last week. he's long for a good idea. willingness ated to consider regulating. the rules that find they're rooses in we're designed to mast ter world of phone and no nop apply. the network and boy it's the only service. the modern communication landscape bear noss

resemblance. an application of title two is at best a forfeit. we're or to give the bureaucrats the authority to second guess business decisions we should all pause and consider the prospect of the f.c.c. as a rate setting authority over internet access and what that means for invocation in the network. we should regulate the internet. the recassfication under fightle two will harm consumers, curtail innovation nd stall innovation. other ittee is playing

they laid the foundation for the internet that we know today. the selectionive inaction of the f.c.c. is equally troubling. the federal communications commission has failed to complete its review of broadcast properties. it's been six years, ikes years that the commission would last learn of this statutory mandate. the chairman is now announced that the was strapped. with standing the steal record. the f.c.c. also moved forward to make major tchinings the regulations that government media ownership anyway. the doctor changes to it a tribution rules that determine how to have the ownership rule.

the it would begin couning oward the local ownership cat. these pronouncements will force them to look for another job and something that's in the smaller markets. they do not bring ben it ins drawing into question how this change can serve the public interest. 's been an on going priority of our subcommittee. i'm march 11 of this year. i continued to be troubled by the fcc. n march the aff restricted which is long been blessed by the committee. it's action was no debayed by the commissioners nor is it subject to any kind of vote.

recent press reports ledged projectings -- projects from republicans for as long as 24 hours. the concern raced by these reports is only come pound by revelations that is substantially refused for vote. until closing minutes of the evening before. her name is commission commission dnd they will fewer than 12 hours. and the item come tains more he said "the process make him today is flawed." the committee has o bined in the past.

he it's necessary for a easy decision making. perhaps chairman fellow commissioners withed a equal and y'all time. the evolution of technology and has nalogue to forever aered the lives. the issues i just mentioned and many more. all sives in their impacts on our lives and the committee. going forward. i hope working together we can move forward in a direction that protects the success, this critical sex tor of this mmittee has chinaed and jobs creation unincumbered by yeg latory overcheech.

>> her opening statement. >> thank you. good morning to all of my colleagues and welcome back to the committee chairman wheeler. before we do -- a deep dive into the specifics of the chairman's proposal as well as so many other major issues that are before the f.c.c. i think that it would be well for us to step back and appreciate what i believe is one of the most consequential investments in human history. his was was dreamed up it's an spern story. it's the product of american genius, the internet. one word but it is -- it really - takes one breath away.

it's not only in an invention it has reshaped lives, committee hearing around the world. and our thinking and our debate today really should be viewed, i think through the prison. now, in the 21st century. continuum of a change. it's successful. it's open. they empower individuals. entire fields of learning. growing not only our committee but economies around the world and serving humanity and countless ways. all of this has taken place and here we are in the second century. the 21st

this is huge. it is not what is behind during number one. during number three. where are the prices right. this is huge. this is something. these decisions are going to affect everyone ingle america going forward just as it has in the pars and it will continue to. innovators gulator, , we have to get this high. america can nth lose. lose. it's been our leadership that as comminned the dizz cal age. actually i don't there there should be the time. of the internet. >> so the question is, how do

we see the future? at least any many view that's what he thinking. i want open nbc, free accessible these are also the hallmark of our demock si. that's why this has been an export nair export of our country. i know what don't want. i don't want this to become an auction selling stout best in bitting and pieces. others can't pay they get stuck in a slow lane. some giant company blocking content so that they can swell keep the others stymied. t's a of what can be on your hands. i want every day to be

essentially the fourth of july in america innovation. >> it just keeps bursting. i see them every day looking forward. 10 years. on a ld all be thinking grand scale. >> this growth should be with everyone. we need smart, savey regulations leagtory decision. nd a congress that's vigilant. so what should the f.c.c. do? i think from all the argses you read. there's a be bait. i think that we have to have a clear understanding of what . nt down of

that is going at look like and there's more on top of all this. can anyone here piece together an at&t consumer these are massive decisions and massive he says that are moving my penis forward. plch, i understand you to conducted a hero. and to be debated and questions asked. so as i said earlier, every person in the country will be affected by the outcome of these desyses that are before

us. a commission and before us. i look forward to questioning chairman wheeler today. two very important letters. whun sine by more than is00 venture rapt list. they support against and access fee. and the other signed by morgan. is 100 internet companies small and large that support a free nd open an internet. >> with that i'll yield back what i do don't have. >> thank the gentlemenle, lady and they have opening comments. >> oversight is the first week

of more nimble. hearing heard lots of to address issues of national important tans. and to insure that commission process focuses jobts. those he's oversight hearing with. when in a way that benefits consumers, and i thank you for coming today. k you for coming today. there's a lot to discuss. in the six he hazardsed the media ownership, the i.p. transition, university service and the intent of options in net neutrality. >> i appreciate his offense. in on some of these, i have concerns. chairman wheerl started off his charpemanship with an issue that this subcommittee has been lots of times working to watch in a bipartisan mariner.

i was disappointed to see some to failures. media reports being circulated are not his -- midnight the evening before the boat. and you know what seems to be as much as hours. regardless of political filiation they must be given advocate and a time let us all elp because of the story and not imblah matic of the new operations pro see your. you will complete the 20 so of ean yeah owner shim with changes that effectively changed bar. under its media.

these abcs in the absence of the require media ownership. they do raise significant uestions about the will make decisions. and lastly, i'm having trouble by me. by 19 serchingry relationship ringses. and adopted -- and that was the network of the past. the internet has flowished under the control light touch. and suck saysing that too. the title is unappropriate. and atemps to reclassify, it's ort. nobody wans the service to look ke it did in 1984 and we shouldn't wish internet access

o return to it either. responsible actions that do benefit consumers job creation and our economy. i yield the balance of my time to be split between mr. bart. >> thank you chairman, for yielding. welcome chairman wheeler. thanks for being here. the communications and the technology sa vibrant, dynamic and productive structure of our economy. they have had a chance to evolve because they have not not had the regular regulation. we've seen time and again that it serves as a catalyst for

increased innow vacation job creation and and they would further they're growth. we would be remissed to see how regulatory restrain has been a fun mental component of the wwe. that's why i'm concerned about some of -- particularly broadcast, telecommuniques with the communications act. this policy would result in failed websites downgrade and poor customer service less the and on one of aterches. out comes. antiquated regulation. f.c.c. from the flying through. i yield back the balance of my

time. >> and i yield to mr. barton. p. with that i yield back the balance of my time. >> we just welcome chairman wheeler and the question for the committee today is, are we soon going to be calling him mr. wheeler dealer? >> i yield back to the gentleman. >> thank you. chairman. turn to the gentleman from california. mr. waxman for opening comments. >> thank you, plch and i want to welcome back chairman wheeler. to ensure that each front low ban spectrum is put through its highest economic value. you had a hard job because you

needed to balance four potentially conflicting objectives. one maximizing the amount of spectrum made for action. two promote competition. three, create bands of unlikely spectrum spirib -- your plan will create three channels beach front. the vision of new super wi-fi can now become a reality. >> i also want to commend you for promoting competition by reserving spectrum for competitive carriers. it would be an enormous setback if the incentive action turns the wireless market dominated by verizon and at&t. this action is the best and

possibly the last chance the f.c.c. has to invigorate competition. i would have preferred if you would have reserved more spectrum. but i realize the pressures you were urn around you need to ecure three votes. by the way you may hear arguments today that you like the opportunity to promote competitions. these are nonsense and express the language of the statue. >> last week you launched the f.c.c.'s third attempt in 10 years to protect the open internet. you didn't need to're. ou made a wise decision to solicit comment. this comes to love you. the time has come to end the gal gymnastics and top the lobbing bage. at&t and izon

comcast fled with the fcc not to use it. and then after fcc did what they wanted verizon sued the agency for lack of authority. when this time you need a different approach. you should use your title to authority as a backstop for authority to protect the open enter net. if you want to proceed as your main legal thee row that's fine. >> you shouldn't wear down the open internet rules to fit ix. on 7 and they should do it as an independent basis of authority. the f.c.c. has lost two rulings in scour. you don't have to use between weak rules and a weak legal case. you could issue strong thrules

have a strong legal case if you use a belt an suspenders approach to the next rule. i look forward exploring this issue with you further and the question before in the meantime i want to yield the balance of my time to can it's congresswoman. >> thank you very much for yielding time and welcome chairman wheeler. the f.c.c. certainly has a lot on its plate. the commission is considering rules. the a.w.s.-3 action. and two very significant mergers. i'm confident the fcc will be able to demonstrate that kit walk and chew gum at the same time this subcommittee should also do its par. for one i joined a calling if for chairman to hold oversight arings on the two proposed emergenciers. and on at&t and directv.

those are one of the largest energiers in history. americans including many in my district are seeing the trend towards consolidation and how ey hear phrases like paid -- and what is going on? what does all this mean for them for competition and for the economy. it has been encouraging that so many are speaking up. i was one who saw the fcc should have taken more time. the committee should propose. but we are where we are. the proposal has certainly improved over the last few weeks. it is still far from perfect. paid ose a ban on privatization. i look forward to hearing you today and i yield back the balance of my time.

>> and with that, you've heard from us or at least a few of us up here, plch, and we're de-- mr. chairman and we're delighted to have you here. go ahead. thank you, mr. chairman and member of the commefment as you pointed out it's been about six weeks. what i wanted to do is highlight some of the things that we have done in that period and then engage in a dialogue with you. as has been evidenced by a lot of these comments up here. wouldn't the principle responsibilities of the commission is dealing with the spectrum crunch. yeah, we have take an significant step forward in terms of getting more spectrum out to the market. e had the h-block. we have opened a new hundred

gahertz swath in the 5 gigahertz ban. they have an incredible bat that it enables. have begun the spectrum sharing. and we announced yesterday that you know, in accord with the mandate of this committee and congress to auction off three spectrum that we will begin the action on november 13th and we will finish as per your mandate february 27. february 22, 156789ed a also established a new set of holding rules which have been praised by everybody from public interest groups to small

operators to large operators as was co mened by mr. waxman. and we have begun the insensitive action process. you mandated us as you said with a nontriveyag task. and we have taken the first important steps to that. on the question of universal service and what's going on there, we have fulfilled the pledge that i made to this committee last time you were together to eliminate the infamous quan tell regression analysis. and we're seeking comments on what its replacement should be. we have funded the connect merica fund to provide connect tiffity, to $5 more who do not have eak access. that's about a third of the total. and we're seeking input on

multiple as technology increases, do we higher bandk about width? how do we best deal with the mobile component of broad band delivery in connect america. support broado band for greater return alliers, those are proceedings we have under way. we have made some significant area ofalso in the public safety. theook a good chunk out of --st i wouldn't be surprised if we show up at the incentive auction requirement or at least taken a huge bite out of