Printer Friendly Version of the U.S. Economic Strength
The U.S. economy is fundamentally strong, but the housing correction, credit turmoil, and high oil prices are weighing on growth this year and short-term risks are to the downside. The Economic Stimulus Act of 2008, signed into law on February 13, will help protect the strength of our economy as we weather the housing downturn and other challenges. This agreement includes short-term incentives to bolster business investment and consumer spending to keep our economy growing and creating jobs this year.
Economic Growth Package
Treasury Releases Social Security Papers
To build on the discussions that Secretary Paulson has had with members of Congress in both parties, Treasury will release a series of issue briefs that will discuss Social Security reform, focusing on the nature of the problem and those aspects of reform that have broad support.
U.S. Economic Strength
Employment Fell in February:
Job Growth: Payroll employment fell by 63,000 in February, following a decrease of 22,000 jobs in January, The United States has added 8.2 million jobs since August 2003. Employment increased in 44 states and the District of Columbia over the year ending in January. (Last updated: March 11, 2008)
Low Unemployment: The unemployment rate edged down to 4.8 percent in February from 4.9 percent in January. Unemployment rates declined or remained steady in 18 states over the year ending in January. (Last updated: March 11, 2008)
There Are Still Many Signs of Economic Strength:
Business Investment: Business spending on commercial structures and equipment rose solidly in the fourth quarter. Healthy corporate balance sheets should support continued investment growth. (Last updated: February 27, 2008)
Exports: Strong global growth is boosting U.S. exports, which grew by 7.9 percent over the past 4 quarters. (Last updated: February 27, 2008)
Inflation: Core inflation remains contained. The consumer price index excluding food and energy rose 2.3 percent over the 12 months ending in February. (Last updated: March 14, 2008)
The Economic Stimulus Package Will Provide a Temporary Boost to Our Economy:
The package will help our economy weather the housing correction and other challenges. The Economic Stimulus Act of 2008, signed into law by President Bush has two main elements—temporary individual tax relief so that working Americans have more money to spend and temporary tax incentives for businesses to invest and grow. Together, the legislation will provide about $150 billion of tax relief for the economy in 2008, leading to the creation of over half a million additional jobs by the end of this year.(Last updated: February 29, 2008)
Pro-Growth Policies Will Enhance Long-Term U.S. Economic Strength:
We are on track to make significant further progress on the deficit. The FY07 budget deficit was down to 1.2 percent of GDP, from 1.9 percent in FY06. Much of the improvement in the deficit reflects strong revenue growth, which in turn reflects strong economic growth. Looking ahead, higher spending on entitlement programs dominates the future fiscal situation; we must squarely face up to the challenge of reforming these programs.
Last Updated:
March 14, 2008
