Another Month of Strong Economic Gain

Another Month of Strong Economic Gain

The economy keeps moving forward at a steady pace thanks to the Bush economic stimulus package, which I have supported, and Congress passed. These polices mean American families can now keep more of the money they earn. The result of which is several months of consistently good economic reports.

Again in June the growing economy added jobs, marking the tenth consecutive month of job growth. During the past 10 months our economy has recovered from the recession and the aftershocks of 9/11. During this time frame the growing economy has created over 1.5 million new jobs. When the Federal Reserve met in late June, they noted, "Labor conditions have improved."

New claims for unemployment insurance have dropped to their lowest level since October 2000. Indeed, this continues a year-long downward trend. New claims for unemployment insurance are now at 310,000. Economists consider 400,000 a "neutral" labor market, anything below that indicates an expanding labor market. Claims have now been below the 400,000 mark for 40 consecutive weeks.

American families are taking home larger paychecks. The Bureau of Labor Statistics reports that in the past year real hourly compensation, in the non-farm business sector, has risen by 2.1 percent. By comparison, the average growth in the 1990s was 1.5 percent.

Gasoline prices have now fallen for several consecutive weeks. During this time period, my House colleagues and I passed a comprehensive energy bill - for the second time. It is incumbent on the Senate to pass the energy bill, this time, and send it to the president's desk. When America has a long-term plan for energy independence, American families will have true energy and economic security. But for the time-being we have a respite from the record prices of late spring.

Homeownership is at an all-time record high at 68.6 percent of all families. More people are participating in the "American Dream" than at anytime in the nation's history. Families are able to participate in the "American Dream" because housing values have increased by 7.7 percent in the year ending in the first quarter of 2004, and are up more than 40 percent over the last five years.

Corporate profits are on track to post a significant improvement in the second quarter of 2004 compared to 2003. Recently there were more IPOs (initial public offering) on the NYSE (New York Stock Exchange) than any week since May 1998. The end result of higher corporate profits may include: new investments in equipment; hiring of additional personnel; increased pay for current employees or dividends for shareholders - to mention a few possibilities - all of which are healthy for the economy and further its long-term health.

In fact, with the full effects of the Jobs and Growth Tax Relief of 2003 now taking full effect, an Associated Press headline read, "Economy Set for Best Growth in 20 Years." The report continues, "Many analysts are forecasting that the overall economy, as measured by the gross domestic product, will grow by 4.6 percent or better this year, the fastest in two decades."

This economic growth we are experiencing is the scenario envisioned when my colleagues in Congress and I passed the Jobs and Growth Tax Relief of 2003, and when President Bush signed it into law.