DEOP's Blog

President Signs Jobs and Growth Tax Relief Reconciliation Act of 2003

“The benefits of the Jobs and Growth Act will also go to investors. The top capital gains tax rate will be reduced by 25 percent, which will encourage more investment and risk-taking, and that will help in job creation.”

“…reducing the tax rate on dividends will also increase the wealth effect around America and will help our markets.”

“This law reflects a common sense economic principle: The best way to have more jobs is to help the people who create new jobs,..”

“When people have more money, they can spend it on goods and services. And in our society, when they demand an additional good or a service, somebody will produce the good or a service. And when somebody produces that good or a service, it means somebody is more likely to be able to find a job.”

“Increased hiring happens gradually, but we're on the path to greater job creation across this country.”

“The bill I'm going to sign provides opportunity for millions of Americans across this country. And the more opportunity there is, the more likely it is somebody is going to find work in this country.”

“Yet other steps are also needed. We must hold federal spending to a responsible level.”

“Our country must get a handle on rising health care costs.”

“We're aggressively implementing higher standards in our public schools so that every child -- every child -- learns to read and write and add and subtract.”

“We're building on the strengths of our economy so that everybody who wants to work can find a job in this great country.”

REALITY CHECK:

1) The stock market (DJIA) - the average yearly increase during the bush administration is less than 1% per year. Going back to Roosevelt, this is better than only Carter (-1%) & Nixon (-2%)

2)The unemployment rate was 3.9% in December 2000, the month before bush took office. It is now 5.5%.

3)Total employment has grown at a slower pace than under any President since Eisenhower, except for 1 - bush #1.

By JEANNINE AVERSA,

AP

Posted: 2008-07-03 09:03:42

FULL ARTICLE @ http://news.aol.com/story/_a/employers-cut-jobs-for-six

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WASHINGTON (AP) - Employers cut payrolls by 62,000 in June, the sixth straight month of nationwide job losses, underscoring the economy's fragile state. The unemployment rate held steady at 5.5 percent.

The latest snapshot of business conditions, released by the Labor Department on Thursday, showed continued caution on the part of employers who are chafing under high energy prices and are uncertain about how long the economy will be stuck in a sluggish mode, reflecting fallout from housing, credit and financial troubles.

The jobless rate spiked to 5.5 percent in May. That marked the biggest over-the-month increase in two decades and left the rate at its highest since October 2004.

Job losses in both April and May turned out to be considerably deeper than had been thought. Payrolls dropped by 67,000 in April, versus the 28,000 previously reported. And, losses in May came to 62,000, rather than the 49,000 initially estimated.

So far this year, the economy has lost a total of 438,00 jobs, an average of 73,000 a month.

Private analysts predict the economy will continue to shed jobs in the months ahead, pushing the unemployment rate higher.

The number of unemployed people in June was 8.5 million, up from 7 million a year ago.

In a separate report from the department, the number of newly laid off people signing up for unemployment insurance rose sharply last week. New applications jumped by 16,000 to 404,000, the highest level since late March. The increase was bigger than economists were expecting; they were forecasting claims to rise to around 385,000.

Oil prices on Wednesday hit a new record above $144 a barrel, while gasoline prices reached a new nationwide high of $4.092 a gallon on average, according to AAA, the Oil Price Information Service and Wright Express.

Economists expect the unemployment rate to hit 6 percent or higher early next year, even if the economy were to show better growth. Companies will be reluctant to ramp up hiring until they feel certain the economy will stay on firmer footing.