By Thomas Donohue - January 12, 2012

Each year, ahead of the president’s State of the Union address, the U.S. Chamber of Commerce takes stock of the state of American business. As we begin 2012, the state of American business is gradually improving—but it is doing so weakly, slowly, and insufficiently to put our nation back to work. While everyone was pleased to see unemployment inch down to 8.5% last month, let’s not forget that it was 5% in December 2007. We’re still down 6 million jobs since the recession hit, and there are more than 23 million Americans who are either unemployed, working part time, or who have given up looking for jobs. Our nation’s highest priority must be to put these Americans back to work.

To achieve this goal, our economy has to grow much faster than it is today. But government policies and Washington politics are undermining business and slowing our recovery. While the federal government expands its powers, costs, obligations, and debt at a record pace, businesses are buckling under uncertainty and are paralyzed by an onslaught of new regulations and taxes.

Without question, we must embark on a concerted, coordinated effort to accelerate economic growth and create jobs. We can do it if our leaders in Washington work with each other and with the business community to clear away the impediments that are standing in the way of a stronger economy. Our leaders must make 2012 a year of urgent action, not delay and dithering.

The Chamber is advancing an ambitious, practical, commonsense American Jobs and Growth Agenda that will spur our economy and create millions of jobs—without raising taxes or adding to the deficit. Here’s how:

America should make strong investments in natural resources and infrastructure. We are the on the cusp of an energy revolution that could employ millions of Americans, reduce our dangerous dependence on foreign sources, generate billions, and reinvigorate U.S. manufacturing. To realize that potential, we must remove barriers to our vast domestic resources and strengthen our supply through key energy infrastructure projects like the Keystone XL pipeline. At the same time, let’s modernize our overall infrastructure system by passing multiyear transportation funding bills and knocking down roadblocks to $250 billion in private capital.

America should expand global commerce through trade, investment, and tourism. Ninety-five percent of the world’s customers live outside the United States. We’ll lose access to lucrative global markets—and sales and jobs—without a bold, forward-looking trade agenda. We need to attract more foreign investment to the United States, which already supports five million direct jobs in America. And by drawing as many global travelers to our shores today as we did in 2001, we could realize $860 billion in economic stimulus and create 1.3 million new jobs.

America should maintain and advance its competitive edge. We can’t allow our ideas, innovations, and jobs to be stolen by foreign rogue websites. Nor can we allow our workforce to fall behind. A competitive workforce requires major improvements to our public K-12 education system and high-skilled visa reform to ensure that foreign nationals educated in America put their skills to work in our economy. And to keep our businesses thriving and competitive, we’ve got to modernize a regulatory system that is currently suffocating business expansion and stifling job creation. Likewise, our antiquated tax code must be reformed to lower rates for individuals and corporations, while broadening the overall tax base.

Finally, America should reassert its economic leadership by reining in government spending and curbing deficits and debt. That requires serious entitlement reform. Entitlements already consume over 55 percent of federal outlays. And without reform, they will soon devour the entire budget.

Our nation has challenges. But we also have ideas, assets, and opportunities. Now we need leaders who are ready to seize them and solve America’s problems. We need leaders willing to confront reality, not ignore it. We need leaders who understand that Americans can have big differences in philosophy but still find common ground. And we need leaders who will act with urgency—election year or not.

The business community has a responsibility to lead as well. We must not lose the spirit of enterprise and risk-taking that have served the country and our economy so well. And if government starts removing the impediments that are stifling growth and jobs, then it will be incumbent on business to start taking a few more risks and making some new investments.

The state of American business is one of readiness—we’re ready to invest, to compete, and to hire. But we need Washington leaders to be our partners in this effort. The only way out of the problems we face is to drive economic growth from one end of the country to the other. So let’s go do it.