Highlights from the Remarks of
Commerce Secretary Don Evans
To the American Society of Newspaper Editors
Annual Convention
New Orleans, La.
April 10, 2003

• Many people might wonder if President Bush is only focused on the war. He clearly understands that he is the one person solely responsible for homeland security, economic security and national security. Let me assure all of you, he is focused on homeland security. He is focused on economic security. And he is focused on national security. The President is upholding all his responsibilities and is focused on all of them. He knows you can’t have economic security without homeland security and national security.
  
• At $10.6 trillion, the U.S. economy is the strongest in the world. We represent about a third of the global economy. But we are not growing at our full potential. The March unemployment numbers show that we need more jobs.
  
• Our underlying economy is extremely resilient. Its continuing strength in long-term fundamentals keep me optimistic. Consider the following facts:
  
  o Nationwide, incomes are rising faster than inflation. Inflation has been in check for over a decade. This allows us to pursue pro-growth monetary and fiscal policies.
  o Interest rates are the lowest in 41 years, allowing Americans to refinance their homes, adding more than $120B a year, for the past few years, to their pocketbooks and to the economy.
  o The homeownership rate – a central part of the American dream – is 68 percent, hovering around its highest rate ever.
  o Productivity of American workers – last year the most important indicator of our economic strength – grew by 4.8 percent, the strongest showing in the last 50 years.
  
• The United States is the only major economy that is still growing. Our own economy would be stronger if the world’s economy were stronger. We sell less abroad because our trading partners lack the purchasing power to buy American goods and services.
  
• This notion that we can’t afford tax relief because we’re fighting the war on terror is wrong. It was for that reason, while facing similar criticism that President Kennedy said: “We shall, therefore, neither postpone our tax cut plans nor cut into essential national security programs. This administration is determined to protect America’s security and survival and we are also determined to step up its economic growth. I think we must do both.” Presidents of both political parties have weathered opposition to pass pro-growth policies. The country is fortunate they did.
  
• And I know there’s been some talk about the deficit. Let me just put things in perspective. The deficit we face is manageable at 2.8 percent of GDP. In ten of the past twenty years, the deficit exceeded three percent of GDP. My friends, the President is worried about the jobs deficit. The federal debt is approximately 35 percent of the GDP. And that is below where it’s averaged for the last 60 years. The debt service is the lowest it has been in 20 years. The federal debt and deficit are manageable, and we must focus on growing the economy so there is more for everybody.