For Immediate Release
Office of the Press Secretary
January 30, 2004
Strong Economic Growth Shows President's Policies Are Working
In Focus: The Economy
On January 30, 2004, President Bush met with economists to
discuss current economic conditions and his six-point plan for
economic growth and jobs, including the need to make the tax cuts
permanent.
The American economy grew at a strong pace of 4.0 percent during the
fourth quarter of 2003, continuing the exceptionally strong growth seen
in the third quarter and well above the historical average. Economic
growth in the second half of 2003 was the fastest in nearly 20 years.
The President's policies will continue to provide substantial stimulus
for jobs and growth over the coming year.
President Bush's Actions Are Helping to Fuel Our Economic Recovery
The President's Jobs and Growth tax relief package helped fuel the
strong improvement in the economy during the past two quarters. It
raised the level of economic activity, which increases incomes and
living standards for American workers. Other recently released data
confirm that the economy is strong and growing stronger:
Housing construction in 2003 was the strongest in 25 years. Initial
claims for unemployment insurance continue to fall and, for 3
consecutive weeks, have been below 350,000, a level consistent with a
slowly declining unemployment rate.
Growth in factory orders remained solid in the fourth quarter after a
very strong third quarter.
More manufacturers are reporting increased activity and new orders
than at any time in 20 years.
The composite index of leading indicators has increased about 3.5
percent over the last 9 months'the fastest 9-month increase in nearly
20 years.
Consumer confidence is at its highest level in 18 months and is
rising. Consumers' expectations about employment are at their highest
level in nearly 20 years.
Recent employment numbers show that the Nation has gained over a
quarter million new jobs since last summer, but there is still much
more to be done for America's workers.
America suffered a series of shocks that slowed the economy, including
a sharp drop in the stock market beginning in 2000, the terrorist
attacks of 9/11, revelation of corporate scandals that shook investor
confidence, and the war in Afghanistan and Iraq. President Bush acted
promptly to help America's workers by providing tax relief to put more
money in families' pockets, and encourage businesses to grow and invest
and keep and create jobs. Tax relief brought substantial savings to
families and helped fight back the effects of the recession. Without
the President's tax cuts, as many as 2 million additional Americans
could have lost their jobs.
The President's tax relief agenda has resulted in significant benefits
for all Americans. Since 2001:
More than 105 million American taxpayers have seen their income
tax bills reduced.
Over 23 million small business taxpayers have
additional tax savings to invest in new equipment, to expand
facilities, and to hire more workers.
More than 33 million married
couples are benefiting from marriage penalty relief.
Over 26 million
families have benefited from the increase in the child tax credit from
$600 to $1,000.
The President has also outlined a six-point plan for building on the
success of his jobs and growth agenda to create even more job
opportunities for America's workers including:
Making health care costs more affordable and predictable;
Reducing the burden of lawsuits on our economy;
Ensuring an
affordable, reliable energy supply;
Streamlining regulations and
reporting requirements;
Opening new markets for American products;
Enabling families and businesses to plan for the future with confidence
by making tax reductions permanent.
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