Economy Roars, Why Don't Americans Feel It?

May 31, 2006 — -- President Bush's new pick to steer the nation's economy will take the job at a time of strong growth and low unemployment, but he'll still have his work cut out for him.

The nomination of Goldman Sachs' chairman Henry Paulson to replace Treasury Secretary John Snow is seen by many as a way for Bush to woo back Americans who are feeling down and out about the economy.

A new ABC News poll finds 60 percent of Americans disapprove of the president's handling of the economy. Just 38 percent approve. Still, Bush has sounded confident about the U.S. economy.

"When he's confirmed by the Senate, Hank [Paulson] will build on John's fine work. He takes this new post at a hopeful time for American businesses and workers," Bush said.

"In the first quarter of 2006, the U.S. economy grew at an annual rate of 5.3 percent, the fastest growth in 2.5 years. We added 5.2 million new jobs since August of 2003. The national unemployment rate is down to 4.7 percent. Productivity is high, and that's leading to higher wages and a higher standard of living for the American people."

"Although it does not always feel like it, the economy is doing well," said "Good Morning America" financial contributor Mellody Hobson.

She points out unemployment is low, the stock market is at near-record levels, and the economy is growing at a brisk pace. Additionally, interest rates are still low compared to historic levels.

Hobson believes that Americans' less rosy outlook on the economy is linked to high gas prices.

"American consumers are strapped right now," she said. "They are grappling with high levels of home equity and credit card debt, and are now even further on the ropes because of the high price of gasoline."