U.S. Department of the Treasury

(Archived Content)

FROM THE OFFICE OF PUBLIC AFFAIRS

Last week we heard some good news about the effects of tax relief on the American economy. The Department of Labor reported that our economy added 126,000 new jobs in October. And over the past three months, there were 286,000 new jobs. The unemployment rate fell to 6 percent. The four-week average for jobless claims has declined in six of the past seven weeks. And manufacturers reported that orders and shipments are both rising.

This news comes one week after we heard that economic output rose at a 7.2 percent annual rate in the third quarter, the fastest pace of growth in nearly 20 years. ISMs manufacturing index advanced to 57.0 in October, its highest level since January 2000. The non-manufacturing index rose to 64.7, the second highest level on record. Factory shipments were up 1.4 percent in September and new orders by 0.5 percent. Construction expenditures rose 1.3 percent in September for a fourth increase in a row.

America's economy is getting stronger every day. American companies are investing. Americans are buying homes at a record pace, and homeownership is near record levels. Stock market values have risen, adding about $2 trillion in wealth for investors since the beginning of the year.

New Mexico's economy is changing, becoming much more diversified, with more high-tech production and tourism. Although New Mexico's unemployment rate is 6.1 percent, the same as the national average (as of September), the jobless rate did not increase as much in New Mexico as it did nationally. In fact, employment has increased in the past few years and the unemployment rate is lower than it was in some of the national boom years of the late 1990s. According to the New Mexico Department of Labor, construction is now the state's fastest growing industry, having not long ago been one of the state's weakest. As of September 2003, employment in the construction industry was up 6.6 percent from a year ago.

We can all be encouraged, but we cannot be satisfied. These are early signs of progress. Now we must turn this progress into broad and lasting gains for all Americans.

The most important thing we can do to help those looking for work is to make sure our current economic growth results in more new jobs. President Bush has proposed a six-point economic plan to encourage companies to expand and hire workers. We must bring health care costs under control, reform our civil courts to end the junk lawsuits hurting small businesses, cut needless regulations so that small business owners can focus on pleasing their customers, instead of pleasing bureaucrats. We must pass a national energy policy to ensure an affordable and reliable supply of energy to our economy, promote free trade agreements that bring good jobs to America, and make tax relief permanent, so the gains we have seen do not disappear when tax relief is scheduled to go away.

To turn this six point plan for job creation into reality, we need to work with Congress. Let me close by saying its an honor to work closely with Congresswoman Heather Wilson. Heather is an important ally to me, as well as the President, as we work to implement his agenda to strengthen the economy and create jobs.

The tax relief of the past two years was based on a principle that when Americans keep more of their own earnings, they spend more and invest more and move the economy forward. We're now seeing that happen. Our economy is on a rising road, and now we must take the remaining steps to ensure that our economy becomes a lasting expansion, and our prosperity extends to every corner of America.

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