Highlights from the Remarks by U.S. Commerce Secretary Don Evans
To the Financial Services Roundtable
September 12, 2002
Washington, D.C.
(Remarks attributable to Secretary Evans)

· My message on the economy can be summed up in two words: confidence and faith.

· I have confidence in the fundamentals of our economy ... confidence in our people ... confidence in our priorities and in our President. And I think this is a message that all Americans need to hear, over and over again.

· The fundamentals of our current economy are just as strong as our system. We have virtually all the fundamentals that any economist or entrepreneur would hope for. We have: low inflation, low interest rates, rising incomes, increasing productivity, a highly innovative culture, and a ready labor force.

· We’ve had three straight quarters of growth. And the recession was the mildest in 30 years. Consumer spending remains strong. New jobs are being created. Sure, it could be better. But the unemployment rate is below six percent. And this President won’t be satisfied until every American who wants to work, has a job.

· For all the frustrations with market declines, for all the post-bubble pain, even after the crimes and confiscations of a few unworthy CEOs…even after that, the market is still on a long-term growth path. Why? Because economic growth is on track. It’s been averaging 3 percent since October, which is right in line with the long-term growth potential of this economy (3 to 3.5 percent). So, the fundamentals are there…and our free-market system is stronger than ever.

· All across this great land, families have figured out that real estate is a smart place to be. The value of real estate, which is the larger portion of Americans’ wealth, rose 20 percent since March 2000. So while the total value of household assets is down (because of the stock market), it’s not down as much as news reports on CNBC and CNN might have you believe.

· Yes, there are soft spots. Capital spending is stalled because of reckless spending in the late ‘90s. Job creation needs to be stronger. And yes, the American people want to see something done about bogus accounting practices and thinly-veiled corporate thievery by a handful of cheaters. But as I said, the fundamentals are there. Our system is the best. The people are responding. And so is this Administration.

· Our country needs an energy policy. More than a year ago the President put forth the first comprehensive national energy plan in decades. It is past time for Congress to act, to pass legislation that promotes conservation and production. It will reduce our dependency on foreign oil, guard against energy price shocks, and ensure affordable energy supplies.

· We urgently need this legislation on terrorism risk insurance. Both the House and Senate have passed bills that must now go to a conference to work out a compromise that President Bush can sign. The President has been asking Congress to pass a bill since 9/11, and for good reason. Airlines can’t get the insurance they need. Countless commercial construction projects are at a standstill because owners can’t get insurance protection against potential future terrorist attacks. An estimated $8 billion in projects were suspended last year alone. And that’s holding back the economy. That means thousands of American families are without jobs.

· Another issue stalled in Congress is pension reform. We absolutely must make certain that when people put their hard-earned money into a pension plan that it is fully protected. President Bush proposed a bill. The House passed it. Now the Senate needs to act.

· Congress also needs to make tax relief permanent. There are some who want to stop the tax cuts already in the pipeline. That would amount to a tax increase. And I have yet to find the textbook that says raise taxes to jump-start an economy!

· Fiscal discipline is also a must. President Bush is determined to fund homeland security and the priorities of our government. And he knows that the recession and the cost of the war on terrorism have increased our deficits. But he also insists that Congress must restrain itself. In a war-time environment, when precious resources simply cannot be wasted, there’s to be no pork-barrel spending.