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About Oregon daily emerald. (Eugene, Or.) 1920-2012 | View Entire Issue (Oct. 31, 2003)
Nation & World News President credits tax relief for economy's improvement uespite economic growtn, unemployment numbers may present a problem for Bush in the election By William Neikirk Chicago Tribune (KRT) WASHINGTON — The economy's surprising growth spurt brought smiles to the faces of Republicans throughout the capital, but their joy could be short-lived if it is not fol lowed by an employment increase that makes Americans feel secure in their jobs as the election approaches. For now, President Bush's tax cuts, plus spending on the war in Iraq and extremely low interest rates, did what they were expected to do — give the economy a huge dose of stimulus and even cause businesses to start invest ing again. That means the economic story could be breaking in Bush's fa vor, and the president wasted little time taking credit. "The tax relief we passed is working," Bush said during a speech in Colum bus, Ohio. "We left more money in the hands of the American people, and the American people are moving this econ omy forward." But he added, "We cannot expect economic growth numbers like this every quarter. Democrats seized on that point, not ing that job growth is still lagging. 'One good quarter does not make an election," political consultant Dane Strother said. Sen. Joseph Lieberman, D-Conn., said, "We've lost 3 million jobs, 3 mil lion people have fallen into poverty, the budget deficit and national debt are growing, and health care and college tu ition costs are escalating." Although Republicans are likely to say that Bush's tax cuts helped the economy grow, analysts said other factors, such as lower interest rates and higher production efficiency, were major contributors. Some of the new efficiency has come at the ex pense of jobs, as companies have learned to do more with fewer work ers — a phenomenon that could work to Bush's political disadvantage. In order for Bush to eliminate the economy as an issue that could be used against him in 2004, employment will have to pick up sharply, and the jobless rate, now at 6.1 percent, will have to de cline. But creating jobs is not as simple and as automatic as it once was in America, and that is a major challenge for the president. Now, intense global competition and high productivity are putting a crimp in the job-making machine. It takes higher economic growth to make a major dent in the unemployment rate Some suggest it may take sustained annual growth of 4 percent or more for a couple of years to do the job. The 7.2 percent growth in third quar ter GDP did nothing to increase em ployment. In fact over the quarter, the nation lost 146,000 jobs, a testament to high productivity, said Larry Mishel, economist at the Economic Policy In stitute in Washington. In past economic recoveries, growth rates of 6 percent or more for several quarters were not uncommon. But the growth rate in this recovery has been subdued, and the jobless rate has in creased. Now, the question is whether the economy has kicked into a higher gear that will drive spending and invest ment for the next several years. No one knows for sure, but one pes simist, Gary Shilling, who runs his own economic consulting firm in Springfield, N.J., said, "I think we will see a lot slower growth going ahead." He added, "All that stimulus from tax cuts has been masking layoffs and cost-cutting in business. When you take that away, and you see consumers' salaries and wages decreasing, you could well slide back into recession." (cj 2003, Chicago Tribune. Distributed by Knight Ridder/ Tribune Information Services. House slashes loan proposal The House is expected to pass an $87.5 billion aid package of grants for Afghanistan and Iraq By James Kuhnhenn Knight Ridder Newspapers (KRT) WASHINGTON — Bending to President Bush's demand that U.S. aid to Iraq must be given as grants, not loans, the House of Representa tives headed Thursday night toward final approval of spending $87.5 bil lion on Iraq and Afghanistan. Victory for Bush in the House was assured and amounted to a decisive, albeit wary, endorsement of the presi dent's policy of occupation in Iraq. The Senate is expected to pass the package on Monday. The final bill would provide $64.7 billion for U.S. troops, $400 million less than Bush sought. Lawmakers also trimmed Bush's Iraq reconstruc tion request from $20.3 billion to $18.6 billion. But the president pre vailed over broad sentiment in Con gress that Iraqis repay $ 10 billion of that amount. Negotiators working out differ ences between the House and Senate versions of the bill added $400 mil lion to Bush's request for Afghanistan relief and reconstruction, making it total $1.2 billion. They also stripped out other Senate provisions opposed by the adminis tration that would have added $1.3 billion for veterans' health care and would have called on the Pentagon to add 10,000 troops to the Army. They also dropped language in both House and Senate versions that encouraged Iraqis to write a national constitution guaranteeing freedom of religion, which critics said could complicate U.S.-Iraq relations by in serting American values into the Iraqi constitutional process. The loan provision dominated at tention on the spending request. The Senate insisted in its bill that $ 10 bil lion of the reconstruction money be offered as a loan that could be forgiv en if other nations waived their Iraqi IOUs. The House had no similar pro vision, but lawmakers there passed a nonbinding resolution backing the Senate position. Bush threatened to veto the bill if the loan language survived, arguing that the United States shouldn't add to Iraq's massive debt. Despite efforts by Sen. Sam Brownback of Kansas and other Republican loan advocates to work out a deal, negotiators on Wednesday struck it from the bill. "I think that the (negotiators) probably have a tin ear to what the American people are saying to them," said House Democratic Leader Nan cy Pelosi, D-Calif. "Why should our children pay the bill down the line if the oil wells are going to be gushing and other countries are going to get their loans repaid?" In reducing the president's request for reconstruction money, lawmakers knocked out money for garbage trucks, a ZIP code system and hous ing developments. (c) 2003, Knight Ridder/ Tribune Information Services. 017365 PEARMIV'S ■ ■■ ww ■ P No Cover Costume Contest with Prizes! Local DJ Music 9:OOpm-2:30am 444 East 3rd Avenue (south side of Ferry Street Bridge, take 3rd Avenue exit and make an immediate left turn into parking lot) \llL/ USE Q/SELY® Every Watt Counts .o-0 SHUTOFF Computers at Night C0^ Sponsored by the UO Campus Environmental Issues Committee wwwgiieitiKmsoiiliiie.com 017449 JET PROGRAM Japan Exchange and Teaching Program Live in Japan for a year or more and participate in the Japan Exchange and Teaching (JET) Programl Every year the Japanese Government invites people from around the world to participate in this unique program, to serve as Assistant Language Teachers or Coordinators for International Relations. Currently, there are over 6,200 participants in the Program from 40 different countries. Benefits include round trip airfare, salary, paid vacation, subsidized housing, and a professional work environment. Applicants must: • Have U.S. Citizenship Or hold citizenship of one of the other 40 participating countries. You must also apply in your home country, * Hold a Bachelor's Degree by July 2004 No Japanese language ability required for the Assistant Language Teacher position. The Consulate-General of Japan in Portland, Oregon will be at University of Oregon for an informational orientation on the Japan Exchange and Teaching (JET) Program on the following day; Date: 11/5/03 Time: 3:00 - 4:30 Building: Erb Memorial Union (EMU) Room: Umpqua Room For on application or more information call I -800-mfo-/et or the Consulate-General of Japan in Portland at (503) 221-1811, or visit our website at www emb/apan org
