Job Growth Jumps; Bush Economic Plan Sound

War to Mobilize Democracy, LLC ^ | September 3, 2004 | Andrew L. Jaffee

[forty_years]

The Labor Department reported this morning that the U.S. unemployment rate dropped to 5.4% in August, down from 5.5% in July, and that our economy created 144,000 new jobs in August. July job creation was revised upward to 73,000 from the 32,000 initially reported. 78,000 new jobs were added in June. Looks like the July numbers were a blip and we’re getting back to the torrid pace of job creation of May (248,000), April (346,000), and March (353,000). After President Bush’s stirring speech last night and the good economic news, just how will Senator Franken-Kerry put a negative spin on things?

Just what kind of job creation record does Kerry have? Well, none. He was shilling for the Vietnamese communists while serving in the U.S. Senate. Monsieur Kerry is the King of Flip-Floppers. He plans to raise taxes on all Americans earning more than $200,000 per year, if elected. In other words, Kerry plans to stifle the American economic engine. And Kerry holds President Bush responsible for a recession that started under Bill Clinton. Some economic record.

Based on Gross Domestic Product (GDP) alone, the U.S. has resoundingly recovered from the post party-like-it-is-1999 recession. From Bureau of Economic Analysis (BEA) statistics, I prepared the chart shown below. Note the negative growth during 2000, while Bill Clinton was president, but the steady increase in GDP less than a year after Bush took office. I’d say Bush’s tax cuts have certainly helped. Last night, the president laid out sound economic policy for his second term in office.

Last night, the president said,

To create jobs, my plan will encourage investment and expansion by restraining federal spending, reducing regulation, and making tax relief permanent. To create jobs, we will make our country less dependent on foreign sources of energy. To create jobs, we will expand trade and level the playing field to sell American goods and services across the globe. And we must protect small business owners and workers from the explosion of frivolous lawsuits that threaten jobs across America.

Curbing federal spending is a great idea, if the president sticks to it. His plan to spend $400 to $500 billion on prescription drug benefits to seniors has good intentions, but comes at too high a price. The best solution would be to eliminate the protections from the free market that American drug manufactures now enjoy. Nonetheless, I’m still willing to give Bush the benefit of the doubt. In a country as diverse and complex as the U.S., no one president can be all things to all people.

Reducing federal regulations is a must, as long as it doesn’t cause the next ice age (a la too much environmental deregulation). I’m currently developing a new medical device for sale in the U.S. It has to have FDA approval before I can market it. Because of deregulation, approval came in 30 days as opposed to the 3 months it would have taken in the past. The FDA has started allowing third-party accredited companies to perform preliminary due diligence, testing, and approval of devices, and then make a recommendation to the FDA. This saves the government and medical device manufacturers time and resources, and speeds the approval process. The money I paid to the third party was much less than the time and money I would’ve spent trying to figure out all the federal regulations myself. I benefited, the third party benefited, and so did the FDA.

Making tax relief permanent will benefit everyone. As a small business owner, I paid less tax this year and last year. Some of the money I saved went into my SEP-IRA and the rest I reinvested in my business. What could be better for our economy? Clinton was able to balance the budget because the American economy was booming and tax revenues were high. Slick Willy rode the coattails of Ronald Reagan’s tax cuts and deregulation. Sure tax cuts lower government revenues in the short term, but balancing the budget will only occur if American entrepreneurs actually have revenues to be taxed.

Making the U.S. less dependent on foreign energy sources should be obvious to everyone. Do you want the money you pay at the gas pump to go into Saudi Arabian and Iranian coffers? I don’t. Contrary to what Kerry and his eco-terrorists would claim, President Bush has already done a lot to pursue alternative energy sources:

The President believes research and development of clean energy resources will help make America’s energy future more secure. Through his budgets since 2001, the President has launched important initiatives to develop the next generation of clean and affordable energy production, including $1.7 billion over five years to develop hydrogen and fuel cell technologies, $1.4 billion through FY 2005 for clean coal research, and additional funding for nuclear and fusion power research. The President’s FY 2005 budget provides significant funding to build and operate FutureGen, the world’s first zero-emissions coal-fueled power plant and expand research on hydrogen and fuel cell technologies. The President's FY 2005 budget also includes $228 million for the Hydrogen Fuel Initiative, a $73 million increase over FY 2004 funding, to develop the technologies to produce, store, and distribute hydrogen for use in fuel-cell vehicles, electricity generation, and other applications. Hydrogen-powered fuel cells will be able to power cars, trucks, homes and businesses while producing virtually no pollution or greenhouse gases. The FY 2005 budget also includes $7.2 billion over ten years in energy tax incentives for alternative and renewable fuels, energy conservation and efficiency, and emissions-free energy.

President Bush is absolutely right in saying, “frivolous lawsuits… threaten jobs across America.” Notice that Franken-Kerry’s running mate, John Edwards, has been silent on this issue. He keeps playing up the fact that his father was a textile mill worker. But Edwards hasn’t spent much time mentioning that his personal net worth is estimated at between $20 million to $50 million. He made most of this loot as a lawyer by suing people and companies. In other words, Edwards has helped to increase insurance and other costs for the common man. In fact, he has opposed legislation that would’ve tried to put limits on the sue-happy trial lawyers. When companies are sued, how do you think they cover the costs of litigation and settlements? They pass these costs on to the consumer by increasing the prices of their products and services. Litigation is one of the reasons health insurance premiums keep increasing every year.

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Election 2004 Coverage

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Speaking last night, the president also mentioned retraining American workers with 21st century skills, allowing employees to invest some of their social security savings, and helping increase home ownership. These are great ideas. Let’s face it, the world is changing and people need the skills to keep up with the rapid pace of technological innovations. I certainly want to be able to control some of my social security nest egg. Rather that than let Congress piss my money away on pork. Finally, people who own homes feel more in control of their lives -- and they’re certainly more likely to take care of property that they can call their own.

There are a number of reasons why Bush must win in November. He’ll certainly be more friendly to our economy that Kerry, who is the “most liberal member of Senate.” More importantly, Bush has the balls to fight and win the war against Islamist terrorists, while the senator doesn’t. Kerry believes the war on terror should be a “law enforcement operation” and that the “threat of terrorism is exaggerated.” After 9/11, the Bali bombing, the Madrid bombing, etc., he wants to use police against al-Qaeda? Monsieur Kerry is more interested in keeping the UN, France, and Germany happy than he is in defending the U.S. A weasel for American president? God protect us from John Kerry.

[george wythe]

U.S. unemployment rate dropped to 5.4% in August, down from 5.5% in July, and that our economy created 144,000 new jobs in August. July job creation was revised upward to 73,000 from the 32,000 initially reported. 78,000 new jobs were added in June.

More bad news for Kerry.

5.4% unemployment rate. Clinton was re-elected with 5.6% unemployement rate back in 1996.