Signs Show Economy in Full Recovery
SIGNS SHOW ECONOMY IN FULL RECOVERY
In my first few months as the Congressman for Ohio's Third District, I was among the Congressional Members who worked with President Bush to act quickly and decisively to get the U.S. economy moving by passing the Jobs & Growth package of 2003. The country endured a recession, prolonged by the 9/11 terrorist attacks, but now we have entered a growth phase, at least in part, spurred by the President's Jobs & Growth package.
Despite the economy's positive growth media critics and political opponents have done everything possible to talk down the economy. In a recent Op-Ed, the Wall Street Journal referred to this as the "Rodney Dangerfield Economy-it simply gets no respect." Yet, we have now clearly reached the point in the economic recovery where even the most ardent critics must credit the actions of Congress and the President for pulling the economy through the past few challenging years.
A perusal of one day's headlines from the business section of a recent USA Today amplifies the facts of an improving economy. Here's a smattering of the headlines.
Intel sales rocket to record
Grad job outlook brighter
Major spending spree gives retailers biggest gains in a year
Merrill Lynch sees its earnings ignite
Dazzled by data, economists see blue skies ahead
The headline "Dazzled by data, economists see blue skies ahead," refers to surging consumer spending, rising factory orders and improvements in the job market-sparked by 308,000 new jobs created in March, nearly three times the predicted number-predictions of a 6% GDP growth-following 4.1% GDP growth in the final quarter of 2003. The government is also reporting factories and retailers are building up inventories and trying to keep pace with demand for goods. The Federal Reserve Bank said factory shipments in some regions have hit the highest levels since 1999.
Business confidence is improving. In a survey by PNC Financial Group, 88% of business owners said they were optimistic about the next six months and 21% said they were planning to add full time employees.
Since the 1976 presidential campaign, we became familiar with the term, "misery index." It is the sum of the inflation and unemployment rates. At the current 7.1% rate, the "misery index" is the lowest any presidential incumbent running for reelection has faced.
This month there is evidence that our state's economy is participating in the recovery at a more rapid pace. While the national unemployment rate remained essentially flat at 5.7%, the rate in Ohio is on par with the national rate at 5.7% in March, down from 5.9% in February.
To further spark our state's manufacturing base I hosted a Congressional Forum on Manufacturing in Dayton in late April. I was joined by Representative John Boehner, (OH-8), Representative David Hobson (OH-7), Representative Rob Portman (OH-2) and Representative Phil English (PA-3); and CEOs as well as other representatives from many of Ohio's most important manufacturing companies for an in-depth look at the issues and challenges currently facing America's manufacturers. Topics included: Tax policy issues, medical coverage costs, regulatory burdens, Chinese trade practices, research & development, raw materials, education & training, and other ways to stimulate growth in manufacturing and additional job creation. Look for my report, on the Congressional Forum on Manufacturing, in these pages soon.
The economic facts speak for themselves: inflation remains at manageable levels, unemployment is currently below the average rate of the 1970s, 80s, or 90s-and Congress and the President are working hard every day to create new jobs; leading to a low "misery index." The economic uncertainty that stemmed from the September 11 attacks on our country slowed our economic recovery for a while but now, as the headline said; "Economists see blue skies ahead."