Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Remarks at the Moore School of Business
University of South Carolina
Columbia, South Carolina

Thank you. When Senator Graham asked me to meet with tomorrow’s global business leaders, I was delighted. Let me first commend you for your choice of studies. As players in the global economy, you will be tackling some big issues.

Let me start by talking about the U.S. economy and how we’ve created an environment for economic growth.

The U.S. economy is strong and resilient.

• Real GDP grew at a strong 3.8 percent annual rate in the second quarter.
• The economy has now experienced nearly 6 years of uninterrupted growth.
• 8.2 million non-farm payroll jobs have been added since August 2003 – 1.6 million over the past 12 months.
• In fact, since August 2003, America has added more jobs than all other major industrialized nations combined.
• The unemployment rate was 4.6 in August, well below the average of each of the past four decades.
• Productivity is up. According to a recent International Labor Organization report, the United States has the most productive workers in the world.
• Real after-tax per capita personal income has increased by over $3,500 during this Administration.

Any country that aspires to this kind of growth must maintain an environment that encourages entrepreneurship. That means low taxes, less regulation, and open and fair trade. Importantly, it means believing in and empowering individuals.

Our free-market economy works because it puts the power in the hands of the individual and the private sector—not the government.

Our job in government is to develop sensible policies that encourage growth and create jobs. We believe the private sector does a better job of capital allocation than the government. The entrepreneurial spirit of people is what drives economies forward.

As Thomas Jefferson said in 1789, “It is a great truth that industry, commerce and security are the surest roads to the happiness and prosperity of a people.”

First, we have to start with the belief that growth and prosperity are worthy goals.

• Without growth, everything is a problem.
• With growth, everything is possible.
• With growth a country can afford social programs.
• With growth a country can invest in a sustainable environment.
• There is no substitute for growth.

And across the globe we have seen what happens when a country strives toward growth and prosperity for its people.

There are more people than ever before involved in the flow of global trade and capital. As markets open further, as democracy spreads, and as ideas are shared, we all win. Emerging economies have become more innovative and entrepreneurial, and we have gained billions of new customers.

The U.S. has been thriving in this environment. Last year our exports were up 12.7 percent to a record $1.4 trillion dollars. Through the first six months of this year, exports increased by 11.4 percent to $916 billion dollars year-to-date over 2006.

Our policies are clearly delivering results. Like business, countries and governments can be measured by results. The challenge is not to have an equal distribution of poverty; the challenge is to create opportunities to create new wealth.

One of the best opportunities we have for peace is to understand and appreciate worldwide diversity. And the great thing is that if we increase our understanding of other cultures it will make us more effective in the world economy.

A country’s effectiveness increasingly will be brought about by education and a population with a sense of worldliness.

Education is the great equalizer. It equalizes people inside a country, and it equalizes nations. Real social justice is about giving everyone a shot at education.

But, educating our people will not be enough. It will require even more than that.

Think about this: Many advanced economies around the world face declining populations. Without a growing workforce an economy can’t grow. In the U.S., the number of people in the prime working years, ages 25-54, is expected to increase by a mere 0.3 percent per year over the next seven years. We can’t grow our economy at three percent without a workforce. So we will need immigration.

According to the UN, by 2150, China’s share of the world population will be reduced by a third. Europe’s share will shrink by more than half, down to just five percent. Russia’s population is already declining.

The reality is that every country around the world is going to have to embrace immigration in order to prosper. Every country you will work in and with, will be dealing with this challenge.

Those who can welcome immigrants and assimilate immigrants will have an advantage. Successful economies welcome newcomers for their contributions and ideas.

I want to thank Senator Graham for his leadership in working with us to develop a comprehensive immigration policy. It is something our country and our economy needs. I believe wisdom will prevail and we will ultimately come back to this issue.

As you leave this campus in the next few years you will be stepping into a world transformed. The challenges of the modern economy are different from those of the economy I faced when I was a young man in business.

But there are some core leadership principles I believe transcend industries, generations and cultures. Today, I’d like to leave you with those principles.

In the end it’s all about leadership and results: in government and in the private sector. I’ve had the opportunity to observe great leaders in action. The ones who really stand out all had similar traits.

First and most important is the ability to choose the right people to work with and implement their plans and policies. Nothing is more critical.

Second is the will to lead. Great leaders enjoy the challenge, the demands, the pressure of leadership. It’s risky. Everyone waits for the leader to show the way.

Third, is the willingness to make difficult decisions. Great leaders don’t pass the buck. They confront problems when they see them.

Fourth, is believing in something bigger than themselves.

People will always notice if a leader is just looking out for himself or herself. Great leaders are team players. They believe in doing good for those they serve.

Fifth, is knowing what they do well and what others do better. They surround themselves with a great team, and they develop talent for future leadership roles. This is one of the most rewarding parts of the job.

Finally, great leaders stay humble. Those who accomplish the most, boast the least.

It is my hope that you leave the University of South Carolina armed with intelligence, an appreciation for world cultures and the will to lead.

Thank you.