FROM THE OFFICE OF PUBLIC AFFAIRS

September 28, 2004
JS-1961

The Honorable John W. Snow
Prepared Remarks: Breakfast Roundtable with Business Leaders
Reno, NV
September 28, 2004

Thank you for having me here today; it's great to be in Nevada.

It's great to see the economy here doing so well – you are actually outperforming the national economy, which is on a steady positive path of its own. Nevada's unemployment rate has continued to fall and is well below the national average. You created 2,800 new jobs here in Nevada in August, bringing your total for the year to 31,100 new jobs.

I am optimistic that this trend of growth and job creation will continue as Nevadans continue to enjoy tax relief. Tax bills will be lower this year for 845,000 Nevada taxpayers thanks to the President's tax cuts, and more than 160,000 business taxpayers like you in Nevada can use their tax savings to invest in new equipment, hire additional workers and increase employee pay.

Our nation's economy has come a long way in a relatively short amount of time, and Nevada is a terrific example of the resiliency and strength of the American free-market economy.

Think of where we've been: When he took office, President Bush inherited an economy in steep decline. The stock market bubble had been pierced. We were then shocked by terrorist attacks and wounded by reprehensible behavior by corporate CEOs that hurt employees, investors and investor confidence.

September 11^th hit Nevada particularly hard because of the dampening effect that terrible day had on tourism – a major industry in this state.

We are fortunate that our economy is the most open, flexible, adaptive and resilient in the world. Our powerful core elements – small-business owners and entrepreneurs, an outstanding workforce, and the simple fact that we operate as a free market – have enabled us to recover from those very difficult economic times.

Sound monetary policy from the Federal Reserve Board helped to stimulate our recovery as well. Lower interest rates encouraged investment, which is critical for economic recovery and growth.

Finally, President Bush's tax cuts gave our economy the oxygen it needed to right itself, and continue on a path of growth and job creation.

Today, this country's economy is growing. Homeownership is at an all-time high as is household wealth. We found out yesterday that new homes are being sold at an annual rate of almost 1.2 million and are on track for another record year. GDP growth has been very strong, and lots of good jobs are being created. We've seen 12 straight months of job growth, totaling 1.7 million jobs. The unemployment rate is down in 47 states from one year ago, and at 5.4 percent is lower than the average of the 1970s, 80s and 90s.

It is clear that we are on the right path. But we are not satisfied; we can and will do even better.

While there can be no doubt that tax relief and good monetary policy have helped our economy, it is clear that there are many other factors that influence our ability to grow. As business leaders, you understand that better than anyone.

From the cost of energy and health insurance to the threat of baseless lawsuits, your business has to deal with any number of given headwinds on any given day.

You've also got to worry about being in compliance with a myriad of government regulations, and there is a cost associated with that as well. Tax relief helped, but there are a number of other ways in which government can help lighten the burdens that slow down your growth.

The President's goal is to give you more freedom and to make sure you're being treated fairly. He understands that, as small-business owners and operators, fairness and freedom are the only two things that you really want from your government.

You seek the freedom to start up a new business venture, to run it and grow it, or to close the door and go fishing if that's what you want to do. You also want to be treated fairly, and you deserve nothing less.

In exchange for fairness and freedom, your unspoken promise to your country and our economy is: job creation and the fuel our economic engine runs on.

Small business is critical to our economy because you provide that sound foundation, and so many jobs. That's why the President cut your taxes and has called on Capitol Hill to give you the option of Association Health Plans to reduce your health insurance costs. That's why he wants to make the tax code simpler, fairer, and pro-growth. And it's why he wants to reduce that fear of baseless lawsuits that haunts you, costs you money, and ultimately acts as a tax on economic growth in this country.

The most profound threat to our economy, of course, is the threat of terrorism. While we will never forget what happened to us three years ago, we also will not be afraid as we go forward. And your government is mobilized to fight that threat wherever it hides. At the Treasury Department, we are tracking and cutting off the flow of blood money from the killers.

In partnership, the government and the private financial sectors have dedicated ourselves this task. Because while hatred fuels the terrorist agenda, money makes it possible.

The public and private financial community has accomplished a lot together on this front of the war on terror in the last three years. The United States has designated 387 entities as terrorists or supporters of designated terrorists and frozen nearly $142 million in terrorist-related assets.  More than $37 million has been frozen in the United States.

The U.S. has also identified and frozen over $4.5 million in al Qaida-related funds.  In addition, almost $72 million has been frozen by other governments worldwide. 

Almost 1500 terrorist-related accounts and transactions have been blocked around the world, including 151 in the United States. 

Our efforts are making a difference.

I believe we've made a lot of progress on a number of fronts – the war on terror, the re-establishment of our economic strength. A lot of our economic growth can be attributed to your good work. As usual small business has kept up your end of the bargain by expanding and creating jobs. These contributions are not going unnoticed, and the President remains dedicated to keeping the burdens on your businesses as light as possible.

We have work to do – in Nevada and across America. But if we continue on the path of freedom and making sure individuals and entrepreneurs have an open and fair environment in which they can work and grow, our best economic days will remain ahead of us and I am optimistic about our future.

Thank you so much for having me here today; I look forward to our discussion.