Terry Everett, July 12, 2004

The latest barometer of the direction of the national economy was released earlier this month and it continues to reflect a steady trend of job creation. The national economic numbers show very clearly that the nation is returning to work and that President Bush's policy of tax relief and job growth is bearing fruit.

On July 2, the U.S. Department of Labor's Bureau of Labor Statistics announced that non-farm payroll employment rose by 112,000 in June while the national unemployment rate remained at 5.6 percent. Taken together with data for the last ten months, the American economy has added a total 1.5 million jobs.

Our national economic engine is no longer in idle. The current unemployment rate of 5.6 percent is down from the peak of 6.3 percent a year ago. Furthermore, at 5.6 percent, the unemployment rate is below the average of the 1970's, 1980's, and 1990's. Employment for the last 12 months is up in 44 of the 50 states and unemployment rates have fallen across all levels of education, race, and age.

The Wall Street Journal reported on July 2 a continued positive economic outlook noting, "The U.S. Economy will enjoy steady expansion for the rest of this year, thanks in part to industrial growth taking off, with unemployment falling and the inflation rate abating, according to a midyear survey of 55 forecasters..." A similar July 6 Associated Press article noted that the U.S. economy is "set for best growth in 20 years."

To understand how far we've come in the last four years, we must recall where we were and how we got there. The American economy has been pummeled repeatedly since 2000. The collapse of the dot-com industry signaled a recession as President Clinton prepared to leave office. Within months, a succession of major corporate scandals hit the national headlines, slowing the engine that drives our economy with the loss of billions in pension funds and a down-surge in investor confidence. Then some six months later came the 9/11 direct attack on our nation, killing over 3,000 innocent Americans. This had a devastating impact on the nation's financial center in New York City.

It is amazing that such a coming together of disastrous events did not throw America into economic depression. Frankly, it very likely could have had it not been for the quick action on the part of President Bush and Congress to pass a series of substantial tax relief bills designed to ease the burden on small business and taxpayers. Liberals howled claiming that such relief amounted to handouts to the rich while doing nothing to help the working man. Such policy was doomed to fail they claimed. The facts show President Bush was right on target as consumer confidence is now at its highest level in two years and the economy has grown by a substantial 3.9 percent since January.

Incredibly, many liberals including Senators Kerry and Edwards, are calling for a roll-back of this beneficial tax relief for small business and many American taxpayers. Apparently, they think anyone who earns a paycheck or creates a job is "wealthy" and does not deserve relief. Such a reversal would be catastrophic to our economic recovery. Now is not the time to go backward.

Congressman Terry Everett, a Republican, represents Alabama's Second Congressional District, which includes the state capitol, Montgomery.