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