Deputy Secretary's Speech

Deputy Commerce Secretary David A. Sampson
Gaston Chamber of Commerce Mt. Holly Economic Development Conference
Mt. Holly, North Carolina

Good morning. I'm delighted to be here today on behalf of President Bush.

• I'd like to thank Congresswoman Myrick for inviting me to speak. As you all know, Sue is a terrific leader and a rising star back in Washington. She's helping set the agenda on homeland security, trade, tax relief, controlling federal spending and a host of other issues vital to the nation's interest.
• I also want to thank the Gaston Chamber of Commerce for hosting this breakfast.
• I have great respect for Chambers of Commerce, as I was the President and CEO for the Arlington, Texas Chamber of Commerce some years ago.

Successful economic development is always driven by leadership at the local level. The federal government can be a valuable partner, but the real leg-work of economic development is done by local leadership and the private sector.

I do think it's worthwhile, however, to consider the national context in which you are working, and to remind ourselves of what we have achieved as a nation in the past few years:

Economy

• We have over 6.6 million new jobs since August 2003--51,000 in September and 188,000 in August--that's 37 months straight of payroll increases.
• The unemployment rate at 4.6% is below the average for the past four decades;
• Wages are growing, gas prices are dropping, and real, after-tax incomes per capita have risen 9% since January 2001;
• Consumer spending is up 3.7% so far this year, and consumer confidence remains strong going forward.
• Overall, the economy grew a solid 3.5% over the past year, and we've had strong growth for 19 straight quarters.
• The Dow is up nearly 60% since its low in early 2003; the NASDAQ is up more than 80% over the same period.
• The American economy is strong, growing and as resilient as ever, despite the recent challenges of devastating hurricanes and higher energy costs.

Tax relief and other economic policies proposed by President Bush are spurring growth across the nation and creating jobs.

Regional/Local Development
A growing national economy gives Gaston County and the rest of the state a better opportunity to realize economic growth. It takes both smart national policies and strong local initiatives to ensure that the American dream reaches all parts of the country.

As we all know, the region's textile industry was hit hard by global competition. The Economic Development Administration (EDA) worked closely with Sue and with local leaders in crafting the Cleveland-Gaston Comprehensive Economic Development Strategy. This is the kind of forward-looking plan every community needs to create new 21st century jobs.

It's extremely gratifying to see the progress being made here and the great partnerships that are being formed. The new Dole vegetable processing plant is a great asset for this area. It shows how investing in education, worker training, and infrastructure can bring in new companies.

And building the U.S. National Whitewater Center along the beautiful Catawba River was a brilliant decision. A center for professional athletes is very creative and certain to bring in related businesses and create jobs. You could also capitalize on its draw as a regional tourism destination, as Idaho has done, by attracting potential investors while they're vacationing.

Our job as economic developers is to constantly be looking over the horizon for new ideas, searching for the next key elements will keep us competitive into the future.

The EDA invested some $62 million in nearly 160 projects in North Carolina over the last five years. That seed investment attracted $2.1 billion in private investment, creating or saving nearly 36,000 jobs.

To further this growth, the President's tax cuts are putting more dollars into your pockets, letting you choose how to spend, save and invest. Small businesses are a critical part of our economy, accounting for over a quarter of new jobs being created, and they are able to flourish with lower taxes. Only the private sector can generate wealth; the government can only redistribute it.

• In North Carolina alone:
• Over 3 million taxpayers have lower income tax bills;
• 846,000 married couples and single parents are benefiting from an increase in the child tax credit;
• Over 600,000 taxpayers are benefiting from reduced tax rates on capital gains and dividends.

These are big numbers, and Congress needs to make these tax cuts permanent.

Closing
The key to keeping our nation on track, our economy growing and our communities vibrant is effective leadership.

Every new period brings challenges as economies face transition. There is no golden age to economic development. You cannot "freeze" an ideal economy in time. The reality that we face today is an ever-changing marketplace where the key to success is looking ahead and taking advantage of new ideas and new ways of doing things.

President Bush understands this. He has read the compass and set a clear direction. As a result, we have an incredibly strong and resilient economy, the greatest in the world. Last week, I was on the Gulf Coast, and being reminded of the hurricanes a year ago at the same time that the Dow was topping 12,000 for the first time ever made me realize how incredibly resilient and strong the American economy truly is.

I am trained as a historian, and looking at our history, I believe we have every reason to be optimistic about our future. Even when we face the economic challenges we have faced in the last five and one-half years, attacks on 9/11, unprecedented instances of corporate fraud, and hurricanes of truly epic proportions, we should continue to see "opportunity in every difficulty," as Winston Churchill once said.

We have in front of us tremendous opportunities to make this a stronger country, a safer country, a more prosperous country, a country that can continue to lead the economic and innovative world for generations to come.

I thank you very much for your leadership. And I look forward to a very stimulating discussion.