FROM THE OFFICE OF PUBLIC AFFAIRS

June 17, 2004
js-1730

The Honorable John W. Snow
Prepared Remarks
Women’s High Tech Coalition
San Jose, CA

Thank you very much; I'm delighted to be here with you.

I'd like to talk about something today that I know you appreciate deeply. In fact, I think it's a basic truth that you will recognize as central to your industry:

The ability of the American economy to be dynamic and strong is very much dependent on the ability of America's entrepreneurs to be fast-moving and creative.

Your industry is a good example of this. It moves at the speed of light. The fact that new developments in technology are so rapidly out-pacing the government's ability to accommodate them in terms of regulatory structure… well, that was one of the main reasons why your group was created!

So it's clear you know the value of agility and speed in business. And you also know that "speed" and "agility" are terms not often associated with government.

I think that government ought to always be aware of the value of speed and innovation. We ought to always be aware that slowing down innovation means slowing down our economy… and slowing down the creation of new jobs.

That's why government needs to keep a constant watch on the things that create drag on private industry – things like excessive taxation and regulation, high health care costs and a legal environment where abusive lawsuits run rampant over entrepreneurs.

When government relieves free enterprise from any of those burdens, our economy responds. The current economic growth that we are seeing – and it is extremely impressive – is a direct response to President Bush's tax cuts and the sound monetary policy set by the Federal Reserve.

We can't underestimate how important fiscal policy has been in recent years. The Bush Administration inherited an economy that was in decline… one that was then battered by terrorist attacks and revelations of corporate corruption dating back to the 1990s.

People were losing jobs; the situation was serious.

The steps that were taken to lighten the tax burden on small-business owners, families and investors were a critical stimulus for growth.

It's the beauty of a free-market economy… if government gets out of the way, the natural strength of the economy shines through.

Today, and for several months now, we have seen the results.

Now our economy is not just recovering – it's growing at a rapid rate.

We've had the strongest three quarter growth rate in almost 20 years, averaging at an annual rate of 5.6 percent.

The strength of the housing market continues to benefit families across America , with homeownership at an all time high of 68.6 percent.

The best indicator of all has been the creation of good jobs. Nearly a quarter of a million jobs were created in May, more than a million this year so far, and nearly a million and a half over the past nine months. Employment over the past year was up in 44 of the 50 states, and the unemployment rate was down in all regions and in 47 of the 50 states.

Here in California, you added 23,600 jobs to the payrolls in May. That was the third straight month of job growth. This is huge news for a state economy that has struggled. I'm so pleased to know that jobs are being created for Californians.

Virtually all national economic indicators are trending upward as well. And it's an incredible thing to witness, because the numbers aren't just numbers. They represent such good news for so many American families.

The challenge now is how to keep growth and job creation going strong. Keeping the burden of tax cuts lower is the first key element for success.

But can government do better in other areas? Yes, we can always do better. And I think we need to.

While we certainly have the strongest economy in the world, we are increasingly aware of the fact that our economic challenges are changing. Which means that government needs to change as well.

That said, I want to emphasize that we should not change the basic principles on which our country was founded, and our government designed. In fact, it is important to bring those basics back into focus and see whether current government even matches up with them!

We also have to be honest about our current challenges. For example, countries like India and China have large populations of skilled, educated workers – and thanks to technology, those workers are competing directly with our own. When you consider that these highly skilled workers can be employed for a lower cost, the question is clear: how can we compete? How can America continue to create good, well-paying jobs in this country?

From my travels across America I know that this question is being discussed at dinner tables and coffee shops all across this country.

We face a challenge. But we've never shrunk from a challenge before, we've overcome many in hour history, and this time will be no different.

It's clear that education and worker training must be the first item on the agenda if we are to meet the challenges of the present, and of the future.

But of course, the best job skills are irrelevant without the best new jobs. And those jobs have got to be created by American entrepreneurs.

We must make America a magnet for innovation and entrepreneurship. We must always encourage, not discourage, the spirit of enterprise. We must continue to remove barriers to the resourcefulness and creativity of the American people.

I'm interested in taking a very hard look at the parts of government that have dulled the competitive edge of private industry – and cutting them back or doing away with them altogether, if appropriate.

To a large extent, I'm talking about our regulatory structure. Well-intentioned regulations have often had the unintended consequence of burdening free enterprise and stifling creativity and growth.

Taxes do the same thing. The more you tax something, the less you get of it. We were reminded of that principle last week, when memorializing our great 40 th president: Ronald Reagan.

Reagan saw that taxes were out of control, that government had grown far too much, like a weed that seems harmless but can choke a tree – not intentionally, but due to its own growth.

So Reagan took brave steps to cut taxes dramatically, and continue the regulatory reforms of the 1970s… and these actions led to some of the greatest economic times our country has ever known.

If we truly dedicate ourselves to major changes like that, to making government an institution that creates an environment for enterprise, we will not only unleash the enormous potential of our own workers and businesses, we will attract the investment capital of the world.

We will be the land of choice not only for the entrepreneurs lucky enough to be born here, but also for those in other countries that seek a place where they can employ highly skilled workers and be welcomed as an economic asset by the government that regulates and taxes them.

The future of our economy is dependent on the ideas and innovations that will come from women like you.

The government can't create a strong economy; the American people, women in business, small-business owners… that's who grows the economy.

It is instead government's responsibility to stay out of your way as much as we can while creating a climate in which you can make the most of your creative abilities.

I commend all that you do to make our economy the most dynamic, prosperous economy in the world. I will certainly do my best to stay out of your way, because I know your ideas are creating the jobs of the future.

Thank you for having me here today, thank you for your hard work, and for your dedication to pursuing that most basic ideal for yourselves: the American Dream.

-30-