FROM THE OFFICE OF PUBLIC AFFAIRS

Thank you so much for having me here today.

I’m delighted to have the chance to talk with all of you because it’s a chance to give credit where credit is due.

You see, our economy is in a very different place than it was one year ago… and a lot of the reason why is the hard work of business owners like you.

Just one year ago, the American economy was in a very different position than it is today. Then there was talk of a double-dip recession, with some commentators holding out the specter of deflation. Even those who saw the economy in pretty good shape characterized the recovery as at best wobbly, weak or anemic. 

The economy is now in a strong recovery, with a GDP growth rate of 6.1 percent in the last half of 2003 – the fastest six-month growth rate in nearly 20 years. Leading private forecasts are projecting growth of four percent plus for the 2004 year, well above historical growth rates. The latest Blue Chip report forecast GDP would grow 4.7 percent in 2004, the highest in 20 years.

Exports are up. The manufacturing sector is beginning to come back. The housing industry remains strong. Business confidence is up and business spending has rebounded. We are beginning to see some come-back in the labor markets. Some good news came last week when initial jobless claims hit their lowest point in over three years.

By sustaining this growth going forward, I am confident that we will see good jobs pick up in the months ahead, as indicated by all the private sector surveys which indicate strong jobs growth over the course of the next year.

Economic recovery like this is not an accident… it happened as a direct result of the President’s tax cuts and business owners like you.

The tax cuts were designed to give entrepreneurs and employers like you the break that you needed to invest in your companies.

Whether you use tax savings for hiring new employees or upgrading essential equipment, tax cuts help your business, and that’s what the President wanted. And today we want to make sure you can continue to keep more of your own money, to invest it in your businesses the way you see fit.

Because you create the jobs. You are the most dynamic business sector.

Hispanic-owned businesses growing at an impressive rate… and that’s very good news. Over 1.2 million of America’s small businesses are owned by Hispanics… and the number of Hispanic-owned firms is growing at a rate of about thirty percent. That’s twice the rate of all other firms. In an economy where small businesses create three-quarters of the net new jobs, this rate of increase is extremely significant.

It’s good news for our economy, and for every American who is looking for a job.

The standing of Hispanic business owners and of this group here today is a great example of American dreams coming true.

I understand that the founders of this Chamber had their first meetings in a High School gymnasium because they could not afford to meet in a hotel or any rented space.

And look at you today. Gathered in this elegant hotel. You are a group that represents an economic dynamism that other sectors envy. You are politically powerful… Capitol Hill takes your phone calls – that’s why you’re here in Washington today – and I hope it’s clear how much the Bush Administration appreciates you.

Look around this room. Every single person in here is a success story, and the U.S. Hispanic Chamber of Commerce itself is a huge success story.

As Treasury Secretary, I think people expect me to talk mostly to, and about, big business. And big business has its place in our economy as well… but small businesses like yours have always been, and will always be, the true lifeblood of the American economy.

That’s why your struggle to have affordable access to health insurance is so frustrating to me, and to President Bush.

You are contributing so much to the economy, and to the lives of others through the jobs you create… yet the health insurance marketplace is hostile territory for you. I encourage you to remind your Congressmen of that when you are making your visits to the hill this week. Remind them that the ability of this Chamber of offer an Association Health Plan would make a huge difference in your lives, the lives of your employees, and of their families.

Remind them that you are carrying this economy, and the ability to offer health insurance to your employees is key if your business is to remain strong and competitive.

The President and I are carrying that message… but no one can convey the message of your community as powerfully as you do yourselves.

You might run into some folks on Capitol Hill this week who want to raise your taxes.

I hope you’ll tell them “no!”

We’ve come too far, and you’ve worked too hard to bring this economy back… a tax increase now would be a blow, and an insult to your job-creating efforts.

I think your lawmakers will listen to you. So use your voices… they are extremely powerful.

Use them back home, too. You are leaders in your community, and people will be looking to you as they try to understand who is on their side, and who they should believe in Washington, DC.

Let them know that some good things have been done, but there is always more work to do.

For example, on the health care front, small-business owners, their employees and individuals can now take advantage of Health Savings Accounts – a tool that can help make health coverage more affordable through tax savings.

But we need to add another tool – Association Health Plans – to that toolbox of health care options.

And tax cuts have helped every American who pays taxes. They’ve helped small businesses like yours. But taxes could be raised if Congress forgets how important low taxes are for growth and job creation.

You hold the key to our economy, and a lot of lawmakers know it. They may just need to be reminded.

In closing I want to say again how glad I am to be here with you… and how glad I am that your group is here in Washington, DC for a legislative conference. Capitol Hill needs to hear from you, and you have the power to make them listen.

Thank you for your efforts here this week, and for what you do every day to keep the American Dream alive and growing.

Thank you very much – have a great conference.

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