U.S. commerce secretary visits CMU, talks about economy

Our economy is doing well and has an even brighter future, according to U.S. Commerce… Our economy is doing well and has an even brighter future, according to U.S. Commerce Secretary Don Evans.

Earlier this week, he spoke to a group of graduate students at Carnegie Mellon University’s School of Industrial Administration.

“The manufacturing sector is growing,” Evans said. “By itself, it would be the fifth largest economy in the world today.”

And most economists predict more growth, he said.

According to a Sept. 16 press release from the Department of Commerce, disposable personal income is now up 3.4 percent, and the gross domestic product increased 3.1 percent during the second quarter.

However, Evans added that the manufacturing sector has faced challenges, including decreased demand and trouble in international markets.

“[The] government doesn’t create wealth and [the] government doesn’t create jobs,” Evans said. “The private sector does.”

What the government can do is help create an environment for economic growth, he said.

To do that, President George W. Bush plans to discuss economic growth with key leaders in the global economy, open more international markets and take steps to enforce international trade laws.

Evans also discussed Bush’s Six-Point Plan to develop economic growth and create jobs. His plan includes making “tax relief permanent,” lowering health care costs, cracking down on frivolous lawsuits, ensuring that the United States has an affordable and reliable energy supply, “streamlining regulations and reporting requirements,” and opening international markets to American products.

“We can’t be the only engines of growth in the world,” Evans said.

Technology will also play a key role in U.S. economic growth, he added.

“You’re the future,” Evans told the graduate students. “You represent the future for my children and my grandchildren and this nation.”

Before his speech, Evans attended a demonstration of robots designed at CMU.

According to Evans, CMU is “one of the greatest campuses in the world” for technology and innovation.

“We’ve always been the innovating nation in the world,” Evans said. And college students, like those at CMU, will ensure that the U.S. continues to be, he said.

Pitt Economics Professor Jim Cassing agrees with Evans’ assertion that the economy is doing well. Personal income has increased, and there are many reasons to be optimistic, he said.

Advancements in technology, Cassing said, have usually proven to be “[engines] of growth.”

However, Bush’s Six-Point Plan probably will not have much of an impact on the economy “one way or another,” Cassing said. Similar plans from previous government administrations have not proven to be very effective, and Bush’s plan will probably be no different, he added.

The economy is not usually influenced by government intervention, but the plan might reassure voters that Bush is concerned about the economy, he said.

“I think a lot of it is just political posturing,” Cassing said.