GAINING ECONOMIC MOMENTUM
“The good economic news keeps coming,” read a recent headline in the Wall Street Journal. That positive statement is a welcome shift amidst challenging economic times. But our efforts to strengthen the economy are far from over, and the jobs picture has not yet brightened enough.
In May, Congress passed a $350 billion jobs and economic growth package to put Americans back to work and stimulate our economy. The legislation provided tax relief to hard working families and contained a number of provisions to help individuals and businesses. Our strategy was simple - when Americans keep more of their hard-earned dollars, they’ll put that money back into the economy, boosting commerce and jobs creation. By reducing taxes, we did the right thing at just the right time for the American economy.
Throughout the summer and now into the fall, reports from Wall Street to Main Street have reflected an improved economy. On Wall Street, stock market values have increased by $2 trillion in the last year. Disposable personal income is up by 3.8 percent and families are spending it on Main Street. Retail sales showed a 12.1 percent annualized increase over the summer, meaning Americans are spending the extra money in their paychecks from the tax relief we passed earlier this year.
Another important economic indicator signaling a strengthening economy is the rise in new housing starts. This summer we experienced a 17-year-high of 1.87 million units, and homeownership is at record levels with a 68 percent ownership rate.
Orders of manufactured goods continue to increase and shipments of durable goods increased this summer. More manufacturing output means more jobs for Americans. The Labor Department recently reported that employers created 57,000 jobs in September - the first increase in eight months. And jobless claims are at their lowest point this year.
All of this has led to stronger economic growth. In the second quarter, the gross domestic product grew by 3.3 percent and third quarter numbers are expected to top four percent.
Creating Jobs
But we need to do more. The economic growth has not yet translated into the broad job creation we would like to see. Fortunately there are a number of items on Congress’ agenda that will help put more Americans back to work. The Senate is working to enact additional legislation to create and retain jobs and further accelerate economic growth.
Two other items of critical importance are class action litigation reform and a bill to rein in runaway asbestos lawsuits. Class action reform will help victims receive their just financial due while ending abuses and helping businesses focus on growth and jobs rather than fighting expensive lawsuits. Additionally, it will help reduce the “hidden litigation tax” on U.S. consumers that inflates the cost of goods and services and stifles job creation. Asbestos lawsuits have already accounted for the loss of an estimated 138,000 jobs. Asbestos litigation reform will create new jobs by allowing companies to divert dollars from legal battles costs toward new investment. Both of these reforms help protect jobs and ensure fairness for Americans.
Energy Policy
But one of the most immediate actions Congress can take on the jobs front is finalizing the energy bill. Since I came to the Senate 10 years ago, we’ve tried to pass a comprehensive energy policy. This year, we finally passed a bill in both the House and Senate, which is currently in a conference committee where differences between the bills will be resolved. The final legislation is expected to create upward of 500,000 new jobs and save even more. Construction of new pipelines, and investment in new technologies, such as clean coal technology, will create new jobs in math, engineering, physics, science and related fields. An affordable and stable energy supply for Americans will fuel our economy and, even more important, release our nation from the grip of Middle East dependence.
As we move into the holiday season, when Americans spend more money on gifts and traveling to visit loved ones, Congress is keeping an eye on the fragile recovery, and will continue to make efforts to create stability in the economy.
October 24, 2003