It is a great pleasure to welcome Commissioner Abraham before the JEC once again. As I pointed out last month, the Bureau of Labor Statistics (BLS) is one of the most objective, professional, and respected statistical agencies in the world. I would also like to welcome the ranking minority member, Senator Bingaman. I look forward to working with Senator Bingaman, and the other members of the committee on both sides of the aisle, over the next 2 years.

      The employment data released this morning reflect the continuation of the business cycle expansion that began in 1991. The unemployment rate was basically unchanged, while payroll employment rose 271,000. The employment-population ratio also increased to a historically high level. Overall, the employment data released this morning are very welcome. However, other BLS data released in the last month continue to show stagnation or declines in middle class earnings, reflecting a problem that has persisted through most of this business cycle expansion.

      Another important statistical series produced by the BLS is the Consumer Price Index (CPI). Last December the Boskin Commission released its report on the CPI, and this report has generated much controversy. The final Boskin Commission report took about 2 years to complete, so there is no reason Congress should rush to implement its recommendations before carefully considering them.

      To date, the debate has been framed by the Boskin Commission report, but additional information and analysis is needed for balanced decision-making. For this reason, I have requested an in-depth BLS study of the technical issues raised by the Boskin Commission. It is my hope that this BLS study could be completed by this summer. In fairness to BLS and to the many millions of Americans that could be affected by policy changes in this area, I would hope that Congress would receive and digest the forthcoming BLS study before hasty actions are taken.

      If the Boskin Commission recommendations were implemented, about 1 trillion dollars of additional taxes and benefit restraint would result over the next 12 years. According to a JEC analysis, about 40 percent of the direct budget effects would result from tax increases on primarily middle class taxpayers. Congress must decide whether the policy mix resulting from a CPI revision is appropriate.

      In closing, I would like to say that I look forward to working with my JEC colleagues on both sides of the aisle, and with the BLS and other statistical agencies, over the next two years.

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