Rep. Blunt touts strength of nation’s economy

March 25, 2008 10:18 pm

— By Susan Redden
sredden@joplinglobe.com
The condition of the U.S. economy is not as bad as it is being portrayed, U.S. Rep Roy Blunt said Tuesday on a tour of a Joplin-area manufacturer.
Blunt never spoke the word recession, instead citing “unemployment at historic lows” and an increase in housing starts in February.
“You won’t hear that on the 24-hour news,” he said. “All the fundamentals are strong, especially in Southwest Missouri. I’m concerned we’re going to talk ourselves into economic problems.”
Blunt made the comments while touring MSW Restaurant Furnishings near Carterville, calling attention to a part of the economic stimulus package he said should benefit businesses such as restaurant suppliers.
He said the stimulus legislation includes an accelerated depreciation schedule that will allow businesses that invest at least $800,000 into new equipment to write off $250,000 in taxes the first year.
“That change in the tax code will allow businesses to write off more of their investments in equipment and facilities,” Blunt said. “It should help small businesses expand and add jobs. We really should see a reaction in the next couple of months.”
Curt McCoy is president of the company that his father started nearly 50 years ago in a garage at his home in Joplin. He said the manufacturer currently employs nearly 80 workers, and the work force should grow to nearly 100 later this year. He said the growth normally is cyclical and is based on a construction season that includes restaurant building.
More jobs could be added, McCoy said, if changes in the tax code cause more restaurant owners to remodel sooner than normal. He said lawmakers get complaints from the restaurant industry about the current 20-year depreciation schedule because of the need to upgrade more frequently.
Blunt, the 7th District congressman who is minority whip in the House, said the more aggressive depreciation schedule is among several changes in the tax code designed to stimulate the economy by encouraging production and job creation.
“It’s the best part of the stimulus package because it’s better than one-time spending,” he said, referring to federal rebate checks to be mailed later this year.
He acknowledged reports that many people say they plan to pay off debts with their rebate checks, which are designed to spur consumer spending.
“If they pay off debt that won’t be a bad thing, because some of them will turn around and incur more debt,” he said.
Blunt agreed that gasoline-price hikes are affecting shipping and other areas of the economy, and he said the United States needs an energy policy that encourages energy production, including from alternative sources.
“And we’ve got to use our own resources, from biofuels to wind, to take the pressure off,” he said.


Local company

MSW Restaurant Furnishings is northeast of Joplin, near Carterville, and supplies furnishings for restaurants including Cheddars, Fuddruckers, KFC, Pizza Hut, Ruby Tuesday, Taco Bell, Steak n Shake and TGI Friday’s. Curt McCoy, company president, said the company sells to businesses throughout the United States and in other countries, and it once shipped a salad bar to Sri Lanka.

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