CREATING JOBS IN A RECOVERING ECONOMY

By U.S. Senator Jim Talent

The last few weeks have been filled with hopeful economic news.  The U.S. economy more than doubled the number of jobs expected in October, unemployment claims fell the lowest level since March 2001, and workers increased productivity at the fastest rate in 18 months.  

The good news began with reports of the surging gross domestic product.  The GDP was full steam ahead in the third-quarter, growing at an annual rate of 7.2 percent with a 6.6 percent increase in consumer spending, the fastest pace in 15 years, and an 11 percent increase in business spending, the fastest rate since the first quarter of 2000.  The surge was the strongest since the first quarter of 1984.

The good news is in large part due to President Bush's jobs and growth package.  The President's economic policies are beginning to have a stimulative effect, and we all hope these improvements will continue to translate into jobs long term.

Although the news is positive, and it appears we've turned the corner on the economy, I've said we need to be cautiously optimistic.  There are many people who have not yet benefited from these hopeful signs and we need to do even more to help America's economy.  

President Bush is urging the Congress to pass his six-point economic agenda so Americans can reap the benefits of a recovering economy.  The six items include Association Health Plans for America's uninsured, medical liability and class-action reforms, regulatory relief, trade legislation to open up new markets for our agriculture producers, permanent tax relief and a comprehensive energy bill.  This is a good, pro-jobs, pro-growth agenda that will help the economy continue to recover and I am urging the Congress to enact it.

I was especially pleased the top item in the President's six-point plan is Association Health Plans (AHPs), a bill I've sponsored with others in the Senate.  It would allow small business people to join together through their trade associations to purchase health care for themselves, their employees and their families at no taxpayer expense.  The President is right, this isn't just a health care bill, it's a jobs bill.  The House passed it on a bipartisan basis by 100 votes.  Now the Senate needs to act.

On the second point, Missouri is facing a medical liability crisis and a class-action lawsuit crisis and we need common sense reform.  Hundreds of experienced physicians are closing their practices or moving to other states because of out of control increases in medical liability insurance.  These rising costs are not only affecting access to care for patients, particularly women and seniors living in rural areas, but they are also costing jobs and making health care more expensive for everyone.  We also need to pass class action reform to prevent frivolous lawsuits that kill jobs by putting small businesses out of business.  Without reform, we will continue to lose jobs and class actions will continue to benefit trial attorneys instead of the people who have actually been hurt.

Thirdly, we need regulatory relief.  I've always believed that what is good for small business is good for America.  Unfair and unnecessary regulations are hurting small businesses, consumers and the economy.  Congress must continue to work with and encourage government agencies to make greater efforts to review the impact of regulations on small businesses, as well as their impact on jobs and our economy.

Fourth, we need to encourage jobs and growth in Missouri by promoting good trade policy.  Missouri exports range from agricultural to manufacturing products.  We need to provide businesses and the agriculture sector with greater opportunities and new markets for their products.  I'm continuing to work on these issues on the President's Export Council.

On the fifth point, we need to make President Bush's tax cuts permanent - including the death tax, the marriage penalty and the child tax credit.  If we don't make tax relief permanent, individuals, families and small business men and women are going to be saddled with huge tax increases in just a few short years.  This would be a body blow to jobs and our economy.

Lastly, we need to pass a pro-growth, pro-jobs energy bill.  And we are closer than ever to passing a bill that is good for the economy, our producers and the environment.  Passing this bill is the main reason I wanted to serve on the Senate Energy Committee.  Athough there is still some work to do, I am optimistic we can pass a good energy bill this year.

The economy is responding positively to the portions of the jobs and growth agenda we have passed so far, and good economic news should make the Congress even more vigilant to keep the faith and finish the job.

Sen. Jim Talent (R-Mo.) was elected to serve Missouri in the U.S. Senate in November 2002.  Previously he served in the U.S. House of Representatives (1993-2001) and the Missouri House (1985-1992).  Sen. Talent is a member of four Senate committees: Energy, Armed Services, Agriculture and Aging.