BUSH TAX CUTS KICK IN!! gdp best in 19 years!! awesome!!!

[rainstorm]

WASHINGTON (AP) - The economy grew at a blistering 7.2 percent annual rate in the third quarter in the strongest pace in nearly two decades. Consumers spent with abandon and businesses ramped up investment, compelling new evidence of an economic resurgence.

The increase in gross domestic product, the broadest measure of the economy's performance, in the July-September quarter was more than double the 3.3 percent rate registered in the second quarter, the Commerce Department reported Thursday.

The 7.2 percent pace marked the best showing since the first quarter of 1984. It exceeded analysts' forecasts for a 6 percent growth rate for third-quarter GDP, which measures the value of all goods and services produced within the United States.

"This is a gangbuster number. Everything came together for the economy in the third quarter," said Mark Zandi, chief economist at Economy.com. "The key challenge now is jobs," he said.


(AP) The economy grew at a blistering 7.2 percent annual rate in the third quarter in the strongest pace...
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On Wall Street, stocks were mixed. The Dow Jones industrials were down 2 points, while the Nasdaq was up 2 points in morning trading.

President Bush's spokesman, Scott McLellan, told reporters aboard Air Force One en route to Columbus, Ohio, that "today's numbers are another positive sign" that the president's strategy for boosting the economy by cutting taxes "is working, getting more money into people's pockets."

"While the economy is moving in the right direction, because of the actions that we have taken, there is more work to be done," McLellan said. "We need to contine to act and build upon the steps we have taken to get our economy growing so we can continue to translate growth into job creation."

The economy's recovery from the 2001 recession has resembled the side of a jagged cliff; a quarter of strength often has been followed by a quarter of weakness. But analysts are saying that pattern could be broken, considering increasing signs the economy finally has shaken its lethargy and is perking up.

Near rock-bottom short-term interest rates, along with President Bush's third round of tax cuts, have helped the economy shift into a higher gear during the summer, economists said. The next challenge is making sure the rebound is self-sustaining, they said.


(AP) After posting a decline in September, the Conference Board's Consumer Confidence Index jumped to...
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Democrats, however, argue that the tax cuts contributed to a record budget deficit in the recently ended 2003 fiscal year and have done little to spur significant job growth.

"This has largely been a jobless recovery," said Sen. Kent Conrad, D-N.D.

Although the nation's payrolls grew by 57,000 in September - the first increase in eight months - the economy needs to add a lot more jobs than that each month to drive down the 6.1 percent unemployment rate, analysts have said.

The administration has argued that as economic growth improves, meaningful job creation will follow. Bush will be counting on that as he heads into the 2004 presidential election season.

In other encouraging economic news from the Labor Department, new claims for unemployment benefits last week dropped by 5,000 to 386,000, a sign that layoffs are slowing. U.S. workers' wages and benefits went up by 1 percent in the third quarter, up slightly from a 0.9 percent increase in the previous quarter.


(AP) New-home sales edged down in September but nevertheless registered their third-highest level on...
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Economists believe the economy will grow at a slower - but still healthy - 4 percent rate in the final quarter.

In the third quarter, consumers ratcheted up their spending at a brisk 6.6 percent annual rate. That was the biggest increase since the first quarter of 1988 and was up from a 3.8 percent pace in the second quarter.

Consumers in the third quarter spent lavishly on big-ticket items, such as cars, boosting such spending by a whopping 26.9 percent rate. And, they also spent briskly on "nondurables" such as food and clothes, which grew at a 7.9 percent pace, the strongest showing since the first quarter of 1976.

While consumers have been the main force keeping the economy going, there are more signs that businesses are starting to do their part.

Especially encouraging was the 15.4 percent growth rate in spending by businesses on equipment and software in the third quarter. That marked the largest increase since the first quarter of 2000 and was up from a 8.3 percent growth rate in the second quarter.

Sustained turnarounds in capital spending and in hiring are crucial to the economy's return to full throttle. Economists said business wants profits to improve and wants to be sure of the recovery's vigor before it goes on a spending and hiring spree.

The red-hot housing market, powered by low mortgage rates, also contributed to the strong showing on third quarter GDP. Investment on residential projects grew at a 20.4 percent rate, the biggest increase since the second quarter of 1996, and more than three times the 6.6 percent growth rate seen in the second quarter.

Federal government spending, which grew at a 1.4 percent rate, was only a minor contributor to GDP in the third quarter. Spending on national defense was flat. But in the second quarter, military spending on the Iraq war - which grew at a whopping 45.8 percent rate - helped to catapult economic growth.

A better trade picture in the third quarter also contributed to GDP growth.

[wx247]

Not saying it is Bush's tax cuts or not, but why did it take so long to kick in?

[rainstorm]

9/11 had something to do with it. delayed the recovery. also remeber, the tax cut in the 1st year was puny. they are just now starting to take effect.
more cuts are needed.

[ameriwx2003]

What is also needed is to reel in the huge deficit:):)

[JetMaxx]

I take all the credit for the jump in consumer spending (just knew buying that new car in August would spark the economy

[blizzard]

I have to agree that the government needs to get moving on the jobless rate. I know in Northern Minnesota thousands of jobs have been eliminated since the Bush administration took over. (Not that that has anything to do with it). But the unemployment rate has gone through the roof under the Bush administration.

[ColdFront77]

I don't see it mentioned in this thread -----> "GDP" = "Gross Domestic Product"

[rainstorm]

unemployment hasnt gone through the roof. it is rather low considering we went through a recession. thank god gore wasnt elected. there would not have been a tax cut, and the economy would be in a free fall. the economy was tanking before clinton left office. highest gdp growth in 19 years!! thanks president bush!!

[blizzard]

unemployment hasnt gone through the roof. it is rather low considering we went through a recession. thank god gore wasnt elected. there would not have been a tax cut, and the economy would be in a free fall. the economy was tanking before clinton left office. highest gdp growth in 19 years!! thanks president bush!!

Tell that to all the unemployed workers who have lost their jobs since Bush took the Reigns. You are sadly mistaken on the unemployment figures. A large reason for the recession was corporate greed, cutting jobs, benefits, wagees, etc. to line the pockets of the CEOs.

[Derek Ortt]

That just proves that the American Communist Party was merely whining as the economy would actually show signs of growth in the private sector

[rainstorm]

unemployment hasnt gone through the roof. it is rather low considering we went through a recession. thank god gore wasnt elected. there would not have been a tax cut, and the economy would be in a free fall. the economy was tanking before clinton left office. highest gdp growth in 19 years!! thanks president bush!!

Tell that to all the unemployed workers who have lost their jobs since Bush took the Reigns. You are sadly mistaken on the unemployment figures. A large reason for the recession was corporate greed, cutting jobs, benefits, wagees, etc. to line the pockets of the CEOs.

do you think corporate greed started the day bush took office? the economy was tanking during clinton. thank god bush had the vision to give a tiny portion of peoples money back to them. and by the way, corporations create jobs, not the govt. corporate greed? how about govt greed? the politicians never tire tire of stealing the money form hard working people and giving it away to people that dont earn it. GOVT GREED IS THE PROBLEM!!

[blizzard]

Well I guess I can agree with you on the Gov't Greed point. Definately needs to be looked into.

But as a point was made earlier, tax cuts helped those of us with jobs, we also need to get moving on helping these unemployed get meaningful work.

[WXBUFFJIM]

The jobless rate makes me sick. Just think, we as Americans can't lose jobs like in California's small businesses for instance. Likewise states like California and Maryland have a huge budget deficits to deal with and fix. Cutting taxes maybe ok for the American people when it comes to living. My main problem is the budget deficits and lack of employment in some areas in this country and it maybe a reality in more places than many thing. One issue after another, but that's what we face in today's world.

Jim

[Rainband]

That just proves that the American Communist Party was merely whining as the economy would actually show signs of growth in the private sector

American communist party??? What are you talking about

[stormchazer]

Not saying it is Bush's tax cuts or not, but why did it take so long to kick in?

Most economist will say it takes 2 to 3 years for the increase in capital to effect economic growth. It took two years after Reagon tax cut for the economic expansion in the 80s

[stormchazer]

I have to agree that the government needs to get moving on the jobless rate. I know in Northern Minnesota thousands of jobs have been eliminated since the Bush administration took over. (Not that that has anything to do with it). But the unemployment rate has gone through the roof under the Bush administration.

Increased from 4.5% to 6%. Not overwhelming. Economist say that 95% employment is considered full employment with the other 5% being between jobs or training for new careers.

[stormchazer]

unemployment hasnt gone through the roof. it is rather low considering we went through a recession. thank god gore wasnt elected. there would not have been a tax cut, and the economy would be in a free fall. the economy was tanking before clinton left office. highest gdp growth in 19 years!! thanks president bush!!

Tell that to all the unemployed workers who have lost their jobs since Bush took the Reigns. You are sadly mistaken on the unemployment figures. A large reason for the recession was corporate greed, cutting jobs, benefits, wagees, etc. to line the pockets of the CEOs.

Reading straight from the Democrat playbook?

[stormchazer]

Well I guess I can agree with you on the Gov't Greed point. Definately needs to be looked into.

But as a point was made earlier, tax cuts helped those of us with jobs, we also need to get moving on helping these unemployed get meaningful work.

In any economic recovery, employment is usually the last thing to come around. Businesses want to make sure consumer confidence is steady before expanding hiring.

[rainstorm]

Why Democrats are wrong on taxes
Cal Thomas (archive)


October 30, 2003 | Print | Send


The Bush administration's prophecy that its tax cuts would produce an economic recovery is coming true. The New York Times - whose editorial page tirelessly campaigns against any and all tax cuts and sees government as our salvation from virtually every problem - carried an item last Monday (Oct. 27) that must have caused the newspaper's editorial staff to suffer the journalistic equivalent of shock and awe.

In a front-page story about the fastest pace of economic growth in four years, there was this rare (for The Times) admission: "Most of that growth stemmed from a sharp rise in consumer spending, driven largely by a continuing boom in mortgage refinancing and checks that were mailed out as part of the recent tax cut." (emphasis mine)

Low interest rates and tax cuts are the twin strategies of the Bush administration for restoring the economy following the post-9/11 recession. They appear to be working.

Yet the Democratic presidential candidates are sticking to their predictable and tired themes of class warfare, dollar envy and economic stupidity as they clamor for eliminating the tax cuts and raising taxes again on "the rich."

In a Wall Street Journal essay last Monday (Oct. 27), Democratic presidential candidate Sen. Joseph Lieberman argued for his "tax reform " proposal, which is a convoluted and complicated revision of the already undecipherable tax code. Lieberman would raise rates for "the wealthiest" and lower them for the "middle class." Since "the rich" already pay the largest percentage of taxes, Lieberman's plan simply fuels the liberal notion that success deserves to be penalized and failure subsidized. Under Lieberman's plan, the top tax rate would increase 5 percentage points to 43.6 percent. This would send many wealthy (and some who just want to be wealthy, but aren't there yet) back to their tax shelters from which they are only now beginning to emerge. These shelters, along with a reluctance to sell stocks when they are high because of previously large capital gains taxes (also lowered under the Bush administration and Republican Congress), would again deprive government of revenue.

Republicans won't fully prevail on the economy as a political issue until they overcome their own addiction to spending. The newly minted New York Times conservative columnist David Brooks properly chastised those "reformist" Republicans who came into office as part of the "Gingrich revolution" in 1994 only to mimic the very people they replaced. In a column last Tuesday (Oct. 28), Brooks faults congressional Republicans for "the same pork barrel politics that marked the last decadent days of the Democratic majority."

Tax cuts are not only a winning political issue, they are a winning economic issue, but only if Republicans can again demonstrate thrift and personal responsibility instead of behaving like Democrat-lite.

Retirees, many of whom live mostly on dividends from investment income, are noticing the first uptick in those dividends in three years. Their dividend checks, as opposed to quarterly notices of losses that they had been receiving, are likely to persuade many of them that President Bush deserves a second term. The reduction in the capital gains tax is bringing many groundhogs out of their investment holes. Many stockholders are trading stocks (and paying taxes on profits) for the first time in several years. If there are no more terrorist attacks (a big if) between now and the 2004 election, and if the tax cuts continue to boost the recovery, Democrats will lose their central campaign issue and their major reason for asking voters to change leadership horses.

Democrats are wrong about taxes, but Republicans are wrong about spending. If Republicans can control themselves, their position as the majority party will be secure (and so will the economy) for years to come.

[stormchazer]

Why Democrats are wrong on taxes
Cal Thomas (archive)


October 30, 2003 | Print | Send


The Bush administration's prophecy that its tax cuts would produce an economic recovery is coming true. The New York Times - whose editorial page tirelessly campaigns against any and all tax cuts and sees government as our salvation from virtually every problem - carried an item last Monday (Oct. 27) that must have caused the newspaper's editorial staff to suffer the journalistic equivalent of shock and awe.

In a front-page story about the fastest pace of economic growth in four years, there was this rare (for The Times) admission: "Most of that growth stemmed from a sharp rise in consumer spending, driven largely by a continuing boom in mortgage refinancing and checks that were mailed out as part of the recent tax cut." (emphasis mine)

Low interest rates and tax cuts are the twin strategies of the Bush administration for restoring the economy following the post-9/11 recession. They appear to be working.

Yet the Democratic presidential candidates are sticking to their predictable and tired themes of class warfare, dollar envy and economic stupidity as they clamor for eliminating the tax cuts and raising taxes again on "the rich."

In a Wall Street Journal essay last Monday (Oct. 27), Democratic presidential candidate Sen. Joseph Lieberman argued for his "tax reform " proposal, which is a convoluted and complicated revision of the already undecipherable tax code. Lieberman would raise rates for "the wealthiest" and lower them for the "middle class." Since "the rich" already pay the largest percentage of taxes, Lieberman's plan simply fuels the liberal notion that success deserves to be penalized and failure subsidized. Under Lieberman's plan, the top tax rate would increase 5 percentage points to 43.6 percent. This would send many wealthy (and some who just want to be wealthy, but aren't there yet) back to their tax shelters from which they are only now beginning to emerge. These shelters, along with a reluctance to sell stocks when they are high because of previously large capital gains taxes (also lowered under the Bush administration and Republican Congress), would again deprive government of revenue.

Republicans won't fully prevail on the economy as a political issue until they overcome their own addiction to spending. The newly minted New York Times conservative columnist David Brooks properly chastised those "reformist" Republicans who came into office as part of the "Gingrich revolution" in 1994 only to mimic the very people they replaced. In a column last Tuesday (Oct. 28), Brooks faults congressional Republicans for "the same pork barrel politics that marked the last decadent days of the Democratic majority."

Tax cuts are not only a winning political issue, they are a winning economic issue, but only if Republicans can again demonstrate thrift and personal responsibility instead of behaving like Democrat-lite.

Retirees, many of whom live mostly on dividends from investment income, are noticing the first uptick in those dividends in three years. Their dividend checks, as opposed to quarterly notices of losses that they had been receiving, are likely to persuade many of them that President Bush deserves a second term. The reduction in the capital gains tax is bringing many groundhogs out of their investment holes. Many stockholders are trading stocks (and paying taxes on profits) for the first time in several years. If there are no more terrorist attacks (a big if) between now and the 2004 election, and if the tax cuts continue to boost the recovery, Democrats will lose their central campaign issue and their major reason for asking voters to change leadership horses.

Democrats are wrong about taxes, but Republicans are wrong about spending. If Republicans can control themselves, their position as the majority party will be secure (and so will the economy) for years to come.

Plain old Economics man!!