It isn't the tax cuts that hurt, its the deficit we now have. It will bite
us sooner or later, later mostlikely in order to assure the election.
"Simple Simon" wrote in message
...
Remember when the liberals tried to claim tax cuts harm
the economy? Bwahahahahahhahahahahahah. Wrong again.



2004 Will Be the U.S.'S Best Year Economically in Last 20 Years,
The Conference Board Reports in a Revised Forecast

http://biz.yahoo.com/prnews/031211/nyth120_1.html

S.Simon


NEW YORK, Dec. 11 /PRNewswire/ -- Revising its year-end economic forecast
sharply upward, The Conference Board today projected that
real GDP growth will hit 5.7% next year, making 2004 the best year
economically in the last 20 years.
The forecast, by Conference Board Chief Economist Gail Fosler, expects
worker productivity, which set a 20-year record in the third
quarter, to rise at a healthy 3.6% next year. That would follow a gain of
4.3% this year.

The economic forecast is prepared for more than 2,500 corporate members of
The Conference Board's global business network, based in
66 nations.

KEY BAROMETERS FLASHING GROWTH

"Growing business spending and continued strength in consumer spending are
generating growth throughout the U.S. economy," says
Fosler. "This burgeoning strength is reflected in The Conference Board's
widely-watched Leading Economic Indicators, the Consumer
Confidence Index and the Help-Wanted Advertising Index. While the labor
market, a critical factor in sustaining growth, is growing
slowly, a pick-up in hiring may already have begun."

Real consumer spending, which continues to fuel growth, will increase at a
4.7% pace next year, up from about 3.2% this year.
Another gain of 4.3% is projected for 2005.

While the U.S. economy is expected to generate more than one million new
jobs next year, the unemployment rate will edge down only
slightly, averaging 5.6% in 2004.

The Conference Board forecast notes that as the U.S. economy bounces back,
so is Europe, although growth will be subdued compared to
most other major parts of the world. "For all the concern about a weak
dollar," says Fosler, "the dollar will be worth more than the
euro by the end of the year."

Real capital spending, which will rise by only 2.7% this year, will climb
11.7% next year and another 8.6% in 2005. Pre-tax
corporate operating profits will top $1 trillion next year, up from a
projected $928 billion this year. Another trillion-dollar-plus
gain in profits is expected in 2005.

The continued recovery in business profits, which was a key ingredient in
funding new investment (crucial in making 2004 a strong
growth year), depends on price relief. Business profits will benefit from
both improved volume and recovering profit margins in
2004, as inflation creeps back toward 3% by the end of the year.

Source: Revised Conference Board Economic Forecast
December 2003