THE PRESIDENT: Well, Dr. Sloan, thanks for having us all. And I
want you to thank all the good folks here at Baylor University for
putting on a great show. I know a lot of people worked hard.
(Applause.)
I'm really glad a lot of folks from around the country got to see
Baylor. It's a fantastic University and I want to thank the folks
here who came from all around the country. Welcome to central Texas
in the middle of August. (Laughter.)
People here are the people that really make America work: the
entrepreneurs and the visionaries, the carpenters, the union heads,
the educators, grandmothers. We're here to listen to you, to get a
report from what I call the front lines of the American economy. And
it's an important report. And the American people need to hear your
report.
My economic team and I heard much of the discussion. We will read
the summaries, we'll think about it and we'll move forward to create
jobs for Americans. I want to thank all those who led the panels. I
want to thank our speakers for doing a fantastic job today.
I am so very grateful for our fellow citizens who are deeply
concerned about the direction of our country. On stage today we're
joined by four people who I mentioned during the radio address over
the weekend. I want to thank Xavier Teixido, who is the chairman of
the board of the National Restaurant Association. Xavier is an
entrepreneur who obviously runs a restaurant, and is now head of a
very important association.
Maria Sobrino, who is the founder of Lulu's. I don't know if
Maria is going to be serving us all after lunch, but I certainly
hope so, because she does a great job. Robert Landon, the driver
from UPS; Jimmie Morgan, material management at Boeing. These are
four ordinary Americans, as Phyllis called them, who have got
opinions. And we heard their opinions, and they're important
opinions.
And so I want to thank the Vice President and members of my
administration for coming down here to listen, to listen to what
Americans have to say.
There's no question our economy has been challenged by a
recession that was beginning when we took office. That the terrorist
attacks of September the 11th that Phyllis talked about had a lot to
do with our economy and the state of affairs from today.
And recently we have had to deal with corporate scandals that
were long in the making -- they finally have come to light. Three
factors that affected our economy. One of the things that we heard
today is that our economy has strengths that are greater than the
challenges. I mean, after all, our workers and farmers are the most
productive in the world; that our entrepreneurs are incredibly
visionary; that inflation and interest rates are low; that today we
saw a report that consumer spending is still robust. We've had
three-quarters of positive growth after three-quarters of negative
growth.
No, the foundations of the American economy are strong. Yet, the
only purpose of a strong foundation is to build on it. And that's
what we're discussing today. And we're determined, this
administration is determined to build on the long-term security of
the American people.
Here's the way I put it. If somebody wants to work and can't find
a job, we have a problem. And we need to do something about it here
in America. We have heard from Americans who are concerned, but not
discouraged. We've seen problems. But we're confident in the
long-term health of this economy. We share a sense of optimism about
America, because we understand our country.
Too many Americans have lost a large portion of their retirement
funds, and they've lost a sense of security in the process. I know
that. Too many Americans have lost jobs, especially in the high-tech
world, in the manufacturing sector. Too many Americans run into
economic and regulatory barriers when they try to create a business
or expand their business. Too many construction projects have halted
because they cannot get terrorism insurance. The goal must be to
create an environment of sustained economic growth. We've got work
to do. I know that -- but we're going to do the work. It starts with
listening to our fellow Americans to find good ideas, and implement
them.
Here's one good idea to make sure we continue to grow our
economy. And that is Congress, for the long-term economic security
of America, needs to restrain spending. (Applause.) The session and
the cost of war and the cost of homeland defense have increased our
deficits. Yet, I am determined to fund the great priorities of our
government while exercising the spending restraint that will return
America to the path of a balanced budget as soon as possible. More
money spent in Washington means less money in the hands of American
families and entrepreneurs; less money in the hands of risk-takers
and job creators.
A limited and focused government is essential to a growing
economy. And if the Congress won't show spending restraint, I intend
to enforce spending restraint. (Applause.) And this work of
enforcement on spending continues today. At the end of the session,
the Congress passed an emergency spending bill to strengthen our
military, protect the homeland and to complete the commitment of $20
billion I made to the citizens of New York. But they also sent along
more than $5 billion in extra spending I didn't ask for. Some of
that $5 billion I have endorsed and will work to secure through
amendments to the '03 budget -- like AIDS prevention money and
support for Israel and Palestine.
But a lot of that money has nothing to do with national
emergency, and I'll give you one example: a new facility for storing
the government's collection of bugs and worms. I made my opposition
clear. We were pretty plainspoken about the supplemental. But those
who wrote the bill designed it so I have to spend all $5 of the
extra billion dollars or spend none of it. That's how they wrote the
supplemental. Those are the rules they placed upon my
administration. I understand their position, and today they're going
to learn mine. We'll spend none of it. (Applause.)
As I said, for truly pressing needs and priorities -- such as
AIDS prevention and resources for the Middle East -- we'll send to
Congress specific amendments to get these funds quickly. However,
we're not going to spend $4 billion we don't need in order to unlock
$1 billion we do. For the good of our economy, for the good of the
people who pay taxes, my administration will spend what is truly
needed and not a dollar more. (Applause.) Spending restraint is just
one of the many responsibilities that we accept.
In order to build on the long-term security for the American
people, we must always think about growth and jobs. I want to get
American construction workers back to work. And that's why we need
to have a terrorism insurance policy. I want those who wear the hard
hats, who are willing to take risks by suspending themselves above
the land, by building commercial projects that are significant in
size -- I want them working.
I want to thank Doug McCarron for being here. He wants them
working, too. We're working hand in hand to see to it that Congress
finally gets the message that we need a terrorism insurance bill to
get American hard hats back to work. (Applause.)
People say, does it matter? Of course it matters. There's over $8
billion of commercial construction that has been suspended last
year. That means $8 billion worth of projects in which somebody is
going to be able to work and put food on the table for their family.
And we need an energy policy, too. Listen, energy policy is not
only good for economic security, it's good for national security. We
can do a much better job of harnessing technologies to conserve more
energy. We can do a better job of finding renewable sources of
energy. But for the sake of our economic security and for the sake
of our national security, we need to become less dependent on
foreign sources of crude oil and we need to put our people to work
by good solid energy projects here at home. Congress needs to get me
an energy bill. They need to stop talking and they need to start
acting by getting a good, sound energy bill to my desk as soon as
they get home. (Applause.)
You've heard a lot about the tax relief plan we passed. Thank
goodness we passed it when we did. We cut taxes in the middle of a
recession because we believe by letting people keep more of their
own money it'll cause them to demand a good or a service, and when
they demand a good or a service, somebody will produce a good or a
service. And when somebody produces that good or service, somebody
is more likely to find work.
The tax relief was incredibly important and it's going to be
important as time goes on, because it's phased in. Now, there are
some in Washington who want to stop the tax relief, which is like a
tax increase, which would be an unmitigated disaster given the
economic situation in which we find ourselves.
But rather than me talking about let's stop the tax reductions,
what Congress needs to do is to join us in the call to make these
tax relief permanent -- (applause) -- permanent so small business --
(applause.) Make it permanent so we send a signal throughout society
that people should be able to plan; send a signal that we understand
job creation is the number one priority of economic policy out of
Washington, D.C.
In order to make sure the economy grows, we must bring the
promise of broadband technology to millions of Americans. My
administration is promoting investment in broadband. We will
continue to work to prevent new access taxes on broadband
technology. If you want something to be used more, you don't tax it.
And broadband technology is going to be incredibly important for us
to stay on the cutting edge of innovation here in America. The
Federal Communications Commission is focusing on policies to
encourage high-speed Internet service for every home and every
business in America. The private sector will deploy broadband. But
government at all levels should remove hurdles that slow the pace of
deployment. (Applause.)
In order to build long-term security we will enforce the rules
and laws on the books. I say as plainly as I can to CEOs: if you
break the law, we will hunt you down, we will arrest you, and we'll
prosecute you. We expect the highest of high standards when it comes
to corporate America. I want the books open and transparent, the
numbers need to be real.
The good news for our economy and our society is by far the vast
majority of CEOs are good, honorable people; they care deeply about
their shareholders and their employees. Now that both Republicans
and Democrats have come together to pass a sound corporate
responsibility bill, my administration will take the new law and we
will hold those to account who do not uphold the high standards
Americans expect from those of us in positions of responsibility.
(Applause.)
I believe -- I believe to build the long-term security of
America, we need to encourage ownership. We want to have an
environment and where people feel comfortable by starting their own
business. We want the Curtis McGuires of the world to flourish.
Another way we can promote ownership is to encourage home ownership.
One of the statistics that concerns me deeply and concerns those in
my administration is this: too many minorities do not own a home in
America. Under 50 percent of African Americans and Hispanic
Americans own a home. That's just too few, as far as I'm concerned.
You see, owning a home is part of the American experience. And so
I'm promoting policies that will encourage home ownership.
And we've set this goal, by the way, that we want there to be 5.5
million minority families owning a home over the next 10 years.
Which means government ought to have a policy that helps people with
a downpayment. People take a look at owning a home and they realize
the downpayment is a frightening thought. We ought to have a
downpayment assistance program out of Washington, D.C.
We need to make sure we have education programs, so that people
understand what it means to buy a home; so that they're educated in
what it takes to own a home. We need to make sure that we have got
money available for home ownership, minority home ownership. I want
to thank Fannie Mae, Franklin Raines for being here. He is joined
with many in the private sector to unlock millions of dollars, to
make it available for the purchase of a home. Listen, when people
own a home, they have a stake in the future of our society. If we're
interested in economic security, we must promote home ownership for
all Americans. (Applause.)
And the same for promoting asset ownership for all Americans. One
of the most heartening statistics is more and more Americans are
building their balance sheets through pension plans; they're owning
stocks and bonds; they've got a future other than their income
stream. And that's vital and that's important. But to make sure that
those who own their pensions are fully protected, we need law out of
Congress. I proposed a law, the House passed it -- the Senate needs
to act -- which says the following things.
One, people should not be forced to hold a large portion of their
accounts in a company's stock. If you're working for a company and
you own that stock, you should be able to diversify after a three
year period of time. Secondly, you ought to get sound investment
advice every quarter, not every year. Thirdly, as we pass a
corporate responsibility bill, if the CEO is able to unload the
stock, so should the employee. What's good for the boss is good for
the people working for the boss. And we need to make sure that all
investment advice is sound investment advice. And these workers have
got their money and their future tied up in these pension plans
ought to get the best -- best advice possible.
These are good reforms, and Congress needs to act on these
reforms, in order to encourage what we call an ownership society. In
order to make sure that we continue to grow our economy, we need to
be aggressive when it comes to trade policy. Zoellick mentioned to
me, he said they're all looking to me. They may be looking to me,
Zoellick, I'm looking to you. (Laughter.) You're the Trade
Representative, you've now got the tools, go out there and start
negotiating free trade agreements around the world. (Applause.)
We're back at the bargaining table as a result of getting the
Trade Promotion Authority vote out of the United States Congress. It
is essential that we move aggressively, because trade means jobs.
More trade means higher incomes for American workers. Listen, a
confident nation is one which opens up markets. A nation which isn't
confident is one that closes its markets, and puts walls around.
I'm confident. I'm confident in the American entrepreneurs, I'm
confident in our high tech industry, I'm confident in our farmers
and ranchers. I'm confident that when we compete, we're the best in
the world, and therefore I want to trade. I want to open up those
markets. I want to level those playing fields. Open trade is good
for American workers and American families. (Applause.)
I agree completely with the health care panel, ably led by Tommy,
that health security is an important part of economic security.
There's a lot we need to do in Washington, but it starts with
trusting the American people to make the right decisions. That's
where it starts. There is a fundamental debate in Washington, D.C.
It goes like this -- do you trust -- who do you trust? Do you trust
the American people, do you trust the elderly to make the right
decisions for Medicare, or do you want the government making those
decisions?
I know that sounds like a simple formula, but it's true, it's
true. The debate is, is that, there are some in Washington who
believe that the federal government should make all the decisions on
behalf of the American people when it comes to their health care. We
don't. We believe the government can right a check, but we believe
that the ultimate decision maker is the people of -- is the person
we're trying to help. That's the ultimate decision maker. We want
our seniors to have more choices. Medicare is a vital program, but
it's old and it's stale and it's tired. Medicine has changed,
Medicare hasn't. We need to modernize Medicare by giving our seniors
more viable choices when it comes to meeting their own specific
health care needs. (Applause.)
Health care must be affordable and it must be accessible. And one
way to make it more affordable and more accessible is to have a
medical liability reform at the federal government. Too many
lawsuits are driving our doctors out of practice and are driving up
the cost for too many of our citizens. (Applause.) We have got a
serious problem in America when it comes to frivolous lawsuits. And
we need to deal with it. And I hope the members of the Congress are
listening carefully when they get -- when they're back in their
districts. They need to be talking to the people whose lives are
being affected by these junk lawsuits. And for the sake of good
medicine and good health care, we need medical liability reform out
of Washington, D.C., as soon as possible. (Applause.)
And finally, I appreciate so very much the panel's discussion
about making sure every child in America gets educated. There is no
question we need to set high standards here in America. If we have
low standards, guess what's going to happen. We will continue to get
bad results. If we believe certain children can't learn, the system
will just shuffle them through. The system will quit on them, and
we've got to stop that in America. The best way to make sure that we
enforce high standards is to say that if you receive federal
dollars, you the state must measure. You must show us whether or not
every child is learning to read and write and add and subtract.
Prove it, and if not, you've got to change the system. We cannot
have children stuck in schools that won't teach and won't change.
For the good of our economic security and for good of our
children, we must be willing to challenge the status quo when the
children can't read and write and add and subtract. And the only way
to determine if that's the case is to have strong accountability.
And I can assure you, Janet, so long as this administration is in
power, we will insist upon accountability, no matter how long, how
loud the cries of those who believe the status quo works.
(Applause.)
This administration believes every child can learn. This
administration wants every child to learn. And you mark my words, by
having high standards and holding people to account, our children
are going to learn. And America is going to be a much better place
for it.
We heard a lot of things government can do. And this
administration is willing to work with Congress to do them, restrain
spending, pass terrorism insurance, protect the pensions and promote
trade, punish those who lie, cheat or steal. But there are also
things that people in America can do, people right here in this room
must do. It's time for corporate America to earn back our trust. And
that starts with having CEOs lead the way, by having open balance
sheets, fair numbers, by authorizing the numbers that are --
tomorrow, starting tomorrow; by proving what I know -- that by far
the vast majority of those leading corporate America are good,
honorable people. But I'm calling upon you to help earn back that
culture that says we trust what we read, we trust the advice we're
getting.
You need to know that I'm incredibly optimistic about America.
Oh, I know the hurdles -- Phyllis talked about hurdles we face. And
we do have hurdles. We've got a war to fight. But it's a war we're
going to win. We've got a homeland to protect. And we're doing
everything we can to protect the homeland. And we've got the
economic security of our fellow Americans to worry about.
But I'm confident in America. I'm confident in the skill of our
people. I'm confident in our spirit. I know -- I know -- that we're
the greatest nation on the face of the earth, because we're a land
full of people that are caring and decent, hard-working and
compassionate. Oh, there may be some tough times here in America.
But this country has gone through tough times before, and we're
going to do it again. And we're going to show the world how to be a
prosperous and compassionate and decent country.
Thank you all for coming. God bless you all. (Applause.)