Audio Treasury Secretary John Snow responds to a question Labor Secretary Elaine Chao responds to a question U.S. Rep. Martin Sabo criticizes the Bush economic plan Photos Treasury Secretary John Snow Labor Secretary Elaine Chao Your Voice Join the conversation with other MPR listeners in the News Forum.

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Bush economic team faces tough questions on Midwest tour
July 29, 2003

Treasury Secretary John Snow faced some tough questions while visiting Milwaukee Tuesday, from factory workers concerned about the loss of manufacturing jobs. (Photo courtesy of U.S. Treasury Department)

President Bush's economic team traveled through Wisconsin Tuesday to promote the president's economic policies. Labor Secretary Elaine Chao, Commerce Secretary Don Evans and Treasury Secretary John Snow will bring their "Jobs and Growth" bus tour to Minnesota Wednesday. Democrats say the team has nothing to brag about, since there's been little job creation under President Bush.

St. Paul, Minn. — The three Bush Cabinet members took their tour to a Harley-Davidson plant in suburban Milwaukee. Treasury Secretary John Snow told about 200 Harley employees and suppliers that while unemployment has been climbing in recent months, it's usually one of the last indicators to turn around during a recovery.

The three were questioned by workers nervous about the sluggish economy and loss of jobs overseas. Snow says when the first wave of a $330 billion tax cut package begins to show up in Americans' paychecks, consumer spending will pick up.

	Labor Secretary Elaine Chao

"What this tax bill does is put more money in the hands of 92 million Americans. Virtually everybody who pays taxes gets tax relief. And it's pretty sizable tax relief. Typical family of four at $40,000 ends up with over $1,000 of tax relief," Snow says.

Mike Retzer, who works for Ram Tool, a Harley supplier, says he was disappointed by Snow's answer. He says tax cuts won't help the U.S. economy if Americans spend the money on products imported from China.

"He did not address how we're controlling this free trade that's decimating our manufacturing and service jobs. Increasingly, service jobs are going overseas," Retzer says.

The "Jobs and Growth" bus tour also coincided with news that consumer confidence fell 7 points in July, as Americans reacted to a 6.4 percent unemployment rate.

Democrats say President Bush's economic plan has not worked. U.S. Rep. Martin Sabo, a DFLer representing Minnesota's 5th District, says the Bush administration is on pace to have the worst record of job creation of any president since World War II. Sabo says the Bush economic team appears to be trying to divert attention from that record.

I would ask them, why have you lost over three million jobs in the country? Why have we gone from 2001 projections of surpluses as far as the eye can see to deficits projected as long as one can see? - U.S. Rep. Martin Sabo, DFL-Minn.

"I would ask them, why have you lost over three million jobs in the country?" Sabo says. "Why have we gone from 2001 projections of surpluses as far as the eye can see to deficits projected as long as one can see?"

Sabo acknowledges that the Sept. 11, 2001, terrorist attacks have had an impact on the economy, but he says fallout from the attacks isn't the biggest factor. Republicans argue that the economy started to slide during the end of President Clinton's term.

"Oh, I hope the Democrats keep talking about the economy," says State Republican Party chairman Ron Eibensteiner. He says the economy is turning around quickly, and he credits the president's tax package.

"This tax cut is a very pro-growth, pro-jobs tax cut, and by next summer, when the economy is growing at a 5 percent, and in some cases maybe even a 5.5 percent GDP growth, the Democrats will not be -- they won't want to bring up the economy anymore because there won't be anything to talk about," says Eibensteiner.

The tax package includes lower withholding rates that took effect this month, and child-tax credits of up to $400 per child, which have started going out to families. It also provides incentives for businesses to buy equipment.

Economist Louis Johnston, a professor at St. John's University and the College of St. Benedict, says the public should pay attention to what the Cabinet members are emphasizing on their road trip.

"They should listen for whether these officials are talking about tax cuts directed at individuals and families versus businesses," Johnston says. "If they're talking about families, then that means money that's going to come directly into a family's pocket. On the other hand, if they're talking about business tax cuts, that's stuff that's going to take awhile to work its way through the system."

Johnston says he doesn't think a president should be held responsible for poor economic performance, or credited when times are good. But he says the economy is likely to be a key issue for Bush's re-election bid.

Bush's economic team is taking his tax cut message to two states that Bush narrowly lost in the 2000 election -- and hopes to win in 2004.

(Chuck Quirmbach of Wisconsin Public Radio contributed to this report)

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