Economic Development

Economy

After faltering due to an unprecedented combination of the terrorist attacks, recession, and corporate scandals, economic indicators are showing significant improvements. Positive data continues to be reported for home sales, unemployment and overall job growth even in light of on-going and impending financial obligations to fight terror abroad and restore and revitalize the Gulf Coast.  The tax cuts my colleagues on the Ways and Means Committee and I have worked on have helped grow the economy.

The American economy has enjoyed over two years straight of monthly of job growth since May 2003, creating nearly 5 million new jobs. The national unemployment rate dropped from 6.1% in August 2003 to 4.9 in August 2005, the lowest level since September 11, 2001. June 2005 also marked the largest drop in long term unemployed since 1983.

Simultaneously, real GDP has expanded through 14 consecutive quarters, growing 4.4% in 2004, one of the strongest annual performances of the past 20 years.

Other key economic indicators paint an equally promising long term forecast for our economy. Despite some regional sector losses, manufacturing industrial production is up 3.8% over the past year and 9.2% over the past 2 years. New home sales are at record high boosting homeownership rates to 69% nationwide and a remarkable 73% in Kentucky. High energy prices remain a real concern for all Americans. Prices are finally starting to stabilize from post-Katrina highs as affected supplies are being restored.

The Federal Reserve’s current monetary policy direction of tightening the money supply and steady increasing rates to their goal of neutrality is further evidence that the economic condition in the US is experience growth in various sectors.

While there are positive signs I believe much can be done to continue by ensuring that the American people continue to drive this development by making the tax cuts permanent.  My work on the Ways and Means Committee will work to address maintaining a the lowered rate on Capital Gains as well as provisions that are important to American families including continuing the child tax credit and ending the marriage penalty and the death tax. 

The American economy has always been a resilient force we are a strong and innovative people who can handle periods of setbacks and our economy reflects that spirit.