Joe Pitts, June 4, 2004

Last week, CBS Marketwatch.com posted a column by Chris Pummer criticizing the media for excessive negativity on the economy.

"To hear Big Media tell it the U.S. economy is in a fragile state of 'recovery'... In fact the economy has been in a state of rip-roaring 'expansion' -- the strongest in 20 years -- yet the media persists in painting a dreary picture," said Pummer.

We all know how it works: a negative story about an economy teetering on the edge of recession makes for more suspenseful television than a story on people finding jobs and the economy growing.

The fact is that if you look hard enough, you are likely to find someone going through tough times, regardless of how well the economy is doing. These stories are important to remind us that there are always people in need, always the chance that we could face similar difficulties.

However, the lead story about our economy should read: the American people, allowed to keep more of their own money because of tax relief, have overcome recession, a major terrorist attack, corporate scandal, and high oil prices to lead our economy to a period of sustained growth unseen in 20 years.

It’s dramatic, focused on the efforts of everyday working families, and, best of all, true.

The United States Department of Commerce recently announced that our economy grew at a rate of 4.4 percent during the first three months of this year.

Job numbers released today confirm that this growth has lead to expansion of the workforce as well.

The economy created 248,000 jobs in May, according to the report released by the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The May increase in payroll employment follows gains of 346,000 in April and 353,000 in March. Overall, the economy has created 1.2 million jobs so far this year.

Before release of the jobs report, Stephen Stanley, chief economist at RBS Greenwich Capital in Greenwich, Connecticut told Bloomberg news, "The floodgates have opened. Executives have finally decided that this expansion is for real."

The highest overhead costs for business owners is labor costs. People are a big investment for employers. When employers start hiring, they are confident that they will have the business, the income, in the future to cover the costs of keeping them around.

But the government doesn’t mandate this. Government does not impose economic growth on the American people. The government doesn’t get up everyday and go to work. And no government faces the choice of which college to send its children to. The American people make all these choices. That’s why we work to have the ability to make more of these choices.

The right policies allow the American people to spend and save and invest their own money. Any economy policy must take this into consideration.

Wherever possible, resources and decision-making belong directly in the hands of individuals. Whether it’s more control over retirement savings, health care resources, or unemployment benefits, families should have the choice of how to use resources to best meet their needs. The government’s one-size fits all approach doesn’t work. And it is highly wasteful.

Tax relief allows the American people to use more of the money they make. In each of his first three years, President Bush worked with Democrats and Republicans in Congress to reduce or accelerate reductions in the taxes paid by American families and small business owners.

In addition, the President has proposed a six-point plan to encourage economic growth and job creation by: making tax cuts permanent, reducing the cost of health care and making it more affordable, reducing unnecessary regulations, curbing frivolous lawsuits, ensuring a reliable, affordable supply of energy, and opening foreign markets to U.S. products and services.

Each week, the House works through a different aspect of this plan in what we have called the "Competitiveness Agenda." We have made substantial progress and will continue to work hard to improve our economy and expand access to opportunities for each and every American family.

There is still work to do. But I believe we are well on the way to a stronger, healthier economy.

Congressman Joe Pitts, a Republican, represents Pennsylvania's 16th Congressional District, which includes Lancaster County and parts of Chester County and Berks County.