Washington, D.C. - U.S. Congressman Kevin Brady (R-The Woodlands) a member of the tax writing House Ways and Means Committee and deputy whip issued the following statement
following the release of positive economic data pointing to vibrant economic growth.
Brady plays a key role as both a whip and Ways and Means Committee member in navigating critical tax relief legislation through Congress.
"Numbers released today by the Commerce Department confirm the economy’s surge forward is directly linked to President Bush’s tax relief measures. Reducing the tax burden working families and businesses face results in long term economic growth and job creation.
"The principle is simple, the less money the government takes out of American pockets in taxes, the more money they have to spend on goods and services.
"Today’s news is especially good for Americans looking for work. American businesses created 72,000 jobs in September and jobless claims fell by 5,000. Wages and benefits are also up 1%.
Congressman Brady is also a tremendous proponent of fair trade. Economist noted that trade contributed to GDP growth this quarter.
"Foreigners bought American goods and pumping money into U.S. Companies this quarter. This is great news and should help pave the way for better trade relations with America and countries interested in purchasing ‘made in the U.S.’ goods.
A summary of today’s economic news, courtesy of the Ways and Means Committee, follows.
Third Quarter GDP: 7.2%
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The Bureau of Economic Analysis announced this morning that the U.S. Gross Domestic Product (GDP) for the third quarter grew an amazing 7.2 percent (annual rate). This follows 3.3 percent growth in the second quarter. This is the fastest quarterly growth in 19 years.
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The largest contributors to this rapid growth were: consumer purchases of goods, business purchases of equipment and a strong increase in exports.
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Total business equipment investment increased $36 billion.
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Nominal GDP has increased by $532 billion in the past four quarters.
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Housing sector growth remains strong, increasing over 20 percent (annual rate).
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Exports rose for the first time in four quarters to over $1 trillion (annual rate).
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Recently enacted tax legislation helped spur consumer spending, lowered the cost of capital in the corporate sector and encouraged business investment.
Weekly Jobless Claims Continue to Decline
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Initial weekly jobless claims data, the earliest indicator of changes in the labor market, continues to improve. Data released this morning indicates that claims fell to 386,000. This data follows the announcement of 72,000 private sector jobs created in September.
This is the fourth week that jobless claims have been below 400,000. The four-week moving average has been trending down since May 2003. (See chart.)
