FROM THE OFFICE OF PUBLIC AFFAIRS

Good morning. I know it's early in the morning for many of you, and thank you for coming. For me, it's always exciting to be here in this hotbed of innovation and ideas. You all exemplify the power of America's ingenuity. Your experiences showcase what you can accomplish in America with nothing more than a good idea. The way our economy responds to innovation is what makes America a leader in the world of ideas - on the cutting edge of so many industries worldwide.

And it is that innovative spirit that will rekindle economic growth in the United States. We're taking steps to ensure that our prosperity continues. First, the tax cut means that $40 billion is showing up in consumers pocketbooks in the third quarter of this year. Whether taxpayers spend it or invest it, it can only be good for the economy. Second, we are pushing to expand trade around the world, so that US companies and US workers can sell their products in more markets around the world.

During the economic boom of the last decade, growth in exports made up more than one-fifth of the growth in our economy. Last year the United States exported about $780 billion in goods and services.

Growing global trade has been good for Americans both as consumers and as workers. NAFTA and the Uruguay round alone have boosted income and lowered prices for an average American family of four by at least $1,300. Export related jobs pay about 15% more than the average US wage.

Most importantly, trade creates a virtuous cycle. Bringing down barriers in other nations creates opportunities for US workers and businesses. And increasing the flow of goods and services between nations expands the global economy and creates more income in other nations, who in turn have more purchasing power to buy US goods and services.

We thrive on competition. It is what keeps us searching for that next great idea. That's why we have the world's most open trade regime. We welcome competition at home and abroad, because it keeps us on our toes. We have no reason to fear competition - it is what fuels our success.

You might call me an eternal optimist, but the facts back me up. Look at the amazing turnaround in US manufacturing in the last 20 years. We woke up one day and realized the world was catching up to our productivity in manufacturing. According to the pessimists who preach "the race to the bottom", US manufacturers should have responded by sending all production overseas. Did we abandon those industries, and let the rest of the world make those products? No way. We rose to the challenge, often learning from our foreign competitors and adopting their methods to improve our own productivity. And American manufacturing today continues to lead the world.

Open markets and competition provide a challenge to each and everyone one of you every day. You all are successful because you respond to that challenge. And as you innovate and invent, you create millions of high-paid jobs for working Americans. In California alone, 1.1 million jobs come from manufacturing exports.

This month Congress will vote to give the President Trade Promotion Authority, so we can continue to bring down trade barriers and open up foreign markets to US products. So long as we continue to reach out to global markets, we'll continue to lead the world. There is no end to what American ingenuity can achieve and what prosperity it can create for working families across the nation.