Economic Recovery

CONGRESSIONAL RECORD
SENATE
June 3, 2004
ECONOMIC RECOVERY

Mr. McCONNELL. Mr. President, this week marks the 1-year anniversary of the Jobs and Growth Act of 2003, a bill signed into law on May 28 last year. And now, a year later, we see by every conceivable economic measure of prosperity and well-being the Bush recovery is roaring ahead.

The Bush recovery has American families on the right course. The Bush recovery has American businesses, services, manufacturing, and exports all moving ahead at full steam.

The Bush recovery has workers' income rising, their job opportunities expanding, and their take-home pay increasing. A record number of workers are working. The Bush recovery is broad, it is growing, it is substantial, and it is a record of achievement of which any President would be justly proud. But the remarkable aspect of the Bush recovery is not what it has obtained but what it has overcome.

Go back to January 2000, when President Bush was still Governor Bush. The Dow Jones industrial average peaked at 11,723. That was the peak in January of 2000. The Dow Jones industrial average peaked at 11,723. Two months later, it lost one-fifth of its total value. A couple of months later, in March of that year, Nasdaq peaked. But by the end of 2000, tech stocks had lost more than half of their value. By the fall of 2000, the economy had slipped into recession.

Again, this all occurred while President Bush was still Governor Bush of Texas.

President Bush took office with an economy already stalled, a stock market tanking, and 8 months later America suffered an unprecedented terrorist attack, on September 11. We are all aware of the toll of lives from that tragic day, but few appreciate the full effect on our freedom and on our prosperity. Planes were grounded for days, and new, expensive security measures were imposed. Business in America came to a screeching halt, each one collectively seeking to reassess the risk and the opportunity of all their endeavors, not only here but overseas. Average Americans took stock of the threats and warnings out there and acted cautiously for the sake of their loved ones.

As our freedom to act without fear was diminished, so, too, was the economic activity that is a reflection of that freedom. A new world of uncertainty was created by 9/11, and while many have completely forgotten the attacks even occurred, their full ramifications are felt today, not only militarily and politically but economically as well.

Despite all that, America is back and stronger than ever, and much of that strength can be traced back to the Jobs and Growth Act of 2003. By letting workers, families, and businesses keep more of their own money, that legislation, along with the President's 2001 tax relief, laid the foundation for economic growth and job creation, not only now but for years to come.

Mr. President, 111 million individuals and families will receive an average tax cut of $1,586; 49 million married couples will have an average tax cut of $2,602; 43 million families with children will receive an average tax cut of $2,090; 14 million elderly individuals will see their taxes fall on average by $1,883, and 25 million small business owners will receive an average tax cut of $3,001.

This tax relief has prompted the growth of a surging, vital economy. Since the President signed that bill, the stock market is up 18 percent, increasing America's capital base by more than $2 trillion. Real business investment in equipment and software is up 14 percent annually, the fastest third-quarter increase since the late 1990s. More manufacturers have been reporting increased activities and new orders than any other time in the last 20 years, and real GDP grew at a 5.6-percent annual rate, the fastest in nearly 20 years.

As tax relief has prompted a surging economy, families have benefited in the last year. Real disposable personal income rose at an average annual rate of 3.9 percent, household wealth hit a record high of $44 trillion, and home ownership has risen .4 percentage points to a record high of 68.6 percent.

With families stronger and businesses growing, the Bush recovery is building strong momentum in the jobs market. In just the last year, over 1 million new jobs have been created for America's workers. The unemployment rate fell from 6.1 percent to 5.6 percent. That is lower than the average unemployment rates in the 1970s, the 1980s, and the 1990s. If that were not enough, State unemployment rates fell in 47 out of 50 States.

America is headed in the right direction. Looking at this chart, since President Bush signed the Jobs and Growth Tax Relief Act last May, the 5.6-percent increase in GDP is the best in 20 years; 1.1 million new jobs since last May; 800,000 new jobs this calendar year alone; the stock market rebound, up 18 percent since the President signed the tax relief bill. Home ownership is up to 68.6 percent, an alltime high since the President signed the tax bill. Disposable income is up 3.9 percent-more take-home pay. All of this has occurred since President Bush signed the Jobs and Growth Tax Relief Act last May.

We have had an extraordinary period of economic growth. Some say the economy should be growing faster, but their solution is to lock up the brakes and whip a u-turn. That is what an agenda of more taxes, more regulation, and more Government spending would do.

Under President Bush's leadership, America is finally headed in the right direction. The economy is picking up steam, and families, businesses, and workers across America are reaping the benefits. This is not the time to turn backward.

I yield the floor.