President Bush Discusses the Economy at the Home Depot in Maryland
Remarks by the President in a Conversation on the Economy with Employers and Employees
The Home Depot
Halethorpe, Maryland
THE PRESIDENT: Thank you, all. I left my credit card at home.
(Laughter.) Thanks for having me. I'm honored to be here at a great
company. I really appreciate the spirit of the company; I appreciate
the fact that this company cares about the people who work here. And
that's really what we're here to talk about, is people working and
realizing their dream. I want people working in the country.
I want you to know I'm an optimistic guy for a lot of reasons.
I've seen what we've been through. I want to remind you what this
country has been through in order to get to where we are today.
First, we were in recession -- you know that, better than me, what
that means. It means fewer people coming in to buy things, as far as
you're concerned. And the recession started in 2001, early 2001. And
we started to come out of the recession a little bit, you probably felt
it around the summer of 2001, maybe fall of 2001. And then the enemy
hit us, and that hurt.
Again, those of you on the front lines of the retail business know
what I'm talking about; the cash registers weren't ringing quite as
much and people weren't coming through the aisles quite as much. And
it hurt us. It hurt the country a lot. It kind of changed our
attitude. And it should change your attitude. We should never forget
the lessons of September the 11th, 2001. I have an obligation, the
congressmen who are here have an obligation. I want to thank Roscoe
Bartlett and Dutch Ruppersberger and Ben Cardin, who's district this
is.
We have an obligation to do everything we can to keep this country
secure, to never forget the lessons of September the 11th, 2001; to
find the enemy before they come again, to stay on the offensive, and to
bring these killers to justice, which is what we're going to do.
(Applause.)
But it hurt our economy when they attacked us, of course. Not only
did it change foreign policy, in other words, we can't sit there and
pick and choose what threat we deal with. Now that we have become
vulnerable, we're going to have deal with the threats before they
mature and come upon us. But it hurt our economy. It hurt us pretty
bad.
And then we started to recover, and I just wanted to remember
another thing we've overcome. Some of the corporate citizens of
America forgot what it meant to be a responsible citizen. This guy's a
responsible guy. (Applause.) See, some of them didn't tell the truth,
though. We had some of our citizens not tell the truth. They forgot
what it meant to be a leader, and it hurt the confidence of the
people. You might remember that period of time. There were these
scandals and people began to wonder whether or not there was honesty in
the system.
By the way, the way you deal with that, of course, is you find them
and you put them into jail. Those who lie, cheat and steal go to
jail. (Applause.) And then, as you know, I made the decision to deal
with threats. As we saw, we put the doctrine out that said, if you
harbor a terrorist, you're just as guilty as the terrorists; and the
Taliban, we took them down for the sake of our own security and for the
sake of the long-suffering people of Afghanistan.
And then I obviously made the decision to go into Iraq. And by the
way, a free and peaceful Iraq is in our nation's interest. (Applause.)
It's in our security interest -- that affected the economy. When you
turned on your TV, it said, America is marching to war. That's not
very conducive for -- that's not a very positive statement. It doesn't
build a lot of confidence -- people, you know, marching to war, why
would I want to invest in my home? Or why would I want to come to Home
Depot if we're fixing to go to war?
So we've overcome a lot when you think about it. Today, the
unemployment rate dropped, as you may know, from 6 percent to 5.9
percent. More workers are going to work, over 380,000 have joined the
work force in the last couple of months. We've overcome a lot. We're
a strong country, a strong economy. A lot of it has to do with the
fact that we got the best workers in the world. (Applause.) Our
productivity is high. I hope some of it has to do -- I know some of it
has to do, I hope you understand some of it has to do with the fact
that the role of government can help create growth. See, when a person
has more money in their pocket, they're likely to come to Home Depot.
AUDIENCE MEMBER: Right. (Applause.)
THE PRESIDENT: If they have less money in their pocket, they may
not come here. And so I worked with the Congress -- I want to thank
Congressman Ehrlich, when he was in the Congress, now Governor
Ehrlich. We cut taxes on people. It's your money to begin with, by
the way. You've got more money to spend. And when you have more money
to spend, it increases demand for a good or a service. And when that
demand increases for a good or a service, somebody has to produce it.
And so the tax relief went for everybody, not just the favorite few
-- everybody got tax relief. And it helped the economy. It also
helped small business. You're going to hear from some entrepreneurs
here. And, by the way, most new jobs in America are created by small
businesses. We're happy to have the Home Depot job, don't get me
wrong. (Laughter.) But the truth is, most new jobs are started by the
entrepreneurs. And so you're wondering why we've got small business
owners here, because I want you to hear from them. I want you to hear
what it means to have a little more money in your pocket.
Most small businesses pay tax at the individual income tax level.
See, these two small businesses do -- you're Subchapter S's, which
means when the taxes come out, you pay like you're an individual, your
business does. Which means when you reduce individual taxes, really
what you're doing is you're making a big difference for small
businesses across America, so that they can grow and hire new people.
If small businesses create most new jobs, then it makes sense to
reward small businesses for labor and risk by reducing their taxes --
which we did. And we did a couple of other smart things. If you're
married, you ought not to be penalized in the tax code. It seems like
the tax code ought to encourage people to be married, not discourage
them from being married. (Applause.)
We know how hard it is to raise a child, and, therefore, we
increased the child credit to $1,000 per child. That helps if you're a
mom or a dad. And, actually, this summer I remember going -- I think
it was to Philadelphia, where they were making the checks. I said, the
check is in the mail. After I said it, I felt a little nervous.
(Laughter.) Fortunately, it was in the mail. And so you got the
difference between the child credit today and the new child credit of
$1,000 per child. That's important -- that's important relief. That's
part of the money going into your pocket. We also provided incentives
for small businesses to make investment. When small businesses invest
in machinery or computer equipment, somebody has to build it, see. And
when somebody builds that machine, somebody is more likely to find
work. And so, in other words, we passed a plan that makes sense.
Part of the things you'll hear me talk about is how to continue the
growth. I mean, we're growing. This economy is good. It can be
better, so more people find work. One of the ways to make sure this
economy continues to grow is to make all the tax relief we passed
permanent. See, it's about to -- it's going to go away in phases. The
child credit is going to go back down, the marriage penalty will go
back up, taxes will go up unless we make this permanent. It doesn't
make any sense to have a tax code that gyrates like that. You need
stability in your tax code, particularly for the small business owners
and planners.
So one thing that I want you to take away from here is that if
you're interested in job creation and job growth for the future, the
tax relief we passed must become permanent. (Applause.)
I want to thank all the local officials who have come, by the way.
I know the lieutenant governor is here. I want to thank the members of
the house and the senate. It turns out when a President shows up, all
kinds of people come. (Laughter.) And I want to thank you for being
here. It's an honor to be here. I look forward to maybe shaking a
couple of hands on the way out. (Applause.) Pretty soon. Yes,
pictures, we'll get a picture. Maybe buy a chain saw. (Laughter and
applause.)
AUDIENCE MEMBER: We carry your brand. (Laughter.)
THE PRESIDENT: Why don't we start off -- we've got a man here who
is building homes. One of the interesting things about our policy is
that when interest rates go low, it provides incentive for people to
buy a home -- mortgages down. We want a lot of people owning homes.
We've got a minority home ownership gap in America, by the way, we've
got to close. See, we just don't want one segment of our population
owning homes, we want everybody owning a home. We want everybody to
feel comfortable.
I put a plan up to the Congress to do that, help with downpayments,
to make sure the fine print in the contract becomes a little larger so
everybody understands what they're signing before they go in. It makes
people a little nervous when you -- particularly the first-time
homebuyer, if you know what I mean. So we've got programs to help
educate, we've got programs to simplify the process, we've got programs
to help with the downpayment. Low interest rates help.
And our man here, Jim Montgomery is an owner. He's an
entrepreneur. By the way, he is at one of these companies, a
Subchapter S, it's called, that pays taxes at the individual rate. So
when we cut his taxes individually, we also cut taxes on his business,
so he can more likely be able to hire somebody else. He wants to hire
and expand. But Jim, welcome. Tell us about your business, tell us
what's on your mind. It's your chance to tell the governor, and the
lieutenant governor, if you don't like things here in Maryland.
(Laughter.) If you don't like things at the federal level, write your
congressman. (Laughter.)
* * * * *
THE PRESIDENT: That is a tax cut. When you provide an incentive
for somebody to buy equipment -- that's what Jim is talking about -- it
means somebody has to make the equipment, or somebody has got to sell
the equipment, in your case. (Laughter.) I appreciate you bringing
that up, because it's an integral part of the tax plan, to encourage
investment. And investment means jobs. And that's what we're really
talking about -- jobs. See, I'm glad he's building homes, I'm glad
people are owning homes, but I'm also glad there's an incentive for him
to go out and buy additional equipment. Somebody has got to make that
equipment. And when somebody makes that equipment, somebody is
working, and that's what we're really talking about. We're talking
about the human dignity that comes from people being able to find a
job.
Thank you for being an entrepreneur. I appreciate your spirit.
See, one of the great strengths of America is what we call the
entrepreneurial spirit. It's a chance for -- to create an environment
so people like Jim feel comfortable about building their own business.
And it's an exciting part of our economy and a vibrant part. Just like
the Bell Nursery folks here -- we've got an owner, we've got a regional
manager. Tell us about your business, Gary.
* * * * *
THE PRESIDENT: A couple of points you made. One of the things
that's interesting -- low interest rates allow people to refinance
their homes. You all know better than a lot the effects of
refinancing. I mean, people refinance, come in with a little cash, it
gives them a chance to remodel.
Secondly, I do want to mention a couple of things that are
important for small businesses. One, health care. It's important for
large businesses, really important for small businesses. It's
difficult for a small business to provide health care, because they
don't have any purchasing power. What we need to do is allow small
businesses to accumulate purchasing power -- it's called associated
health care plans. If you've got more people demanding, it means you
can reduce the price. We need the associated health care plans.
Another thing that affects all business, by the way, but especially
hurts small businesses, are excessive regulations. I mean, if you've
got four employees, you don't want to be spending a lot of time filling
out paperwork. The governor, I know, is working hard to reduce
excessive paperwork at the state level. We're doing so at the federal
level. Look, I readily concede we've got a lot more to do. There's a
lot of paperwork, a lot of regulation.
Another thing that's a problem is lawsuits. They get to be a
problem on these small business owners, and large business owners.
Medical liability reform is an issue we need. I'll tell you why,
they're driving up the cost of your medicine, and it's making fewer
doctors practice medicine. Medicine ought to be affordable and ought
to be available. And these lawsuits -- everybody ought to be able to
sue, don't get me wrong. We just don't want the junk lawsuits and the
frivolous lawsuits and the lawyers who are simply fishing for a rich
settlement to be prevalent. (Applause.)
Anyway, I'm interested in hearing how this great company works.
Obviously, I heard the enthusiasm -- (laughter) -- when I was coming
in. But John, why don't you start off, and then you can introduce your
fellow workers.
* * * * *
THE PRESIDENT: Let me ask you a question. So what's your feel?
You're hearing from people, when they're coming through, shopping, and
--
MR. FERRAIUOLO: I've got to tell you, our business in this store,
this year, is about 18 percent better than last year. So where last
year things were a little bit of a struggle, I think the enthusiasm and
interest in people, the confidence level as people came in shopping
wasn't quite there. People are now going from last year, I think,
doing projects that were maybe necessities, I see people doing a little
dreaming again and wanting to step themselves up and move forward and
doing some wanting in their purchasing as opposed to just necessities.
THE PRESIDENT: That's good. John, by the way -- he probably
doesn't want me to tell you this, but I'm going to tell you anyway --
he got $1,200 of tax relief as a result of the tax reductions.
Probably considered a fair amount of money, I would guess.
MR. FERRAIUOLO: That's an awfully great amount of money. What
happened there, I think last year there were a few months when my wife
came home, she found a check in the mail, and you know what --
THE PRESIDENT: Thank goodness. (Laughter and applause.)
MR. FERRAIUOLO: She basically -- she said, sign here, I'll do it
for you. (Laughter.) And then she went shopping, and she took the
chance to buy herself a few treats. And I think with the rest of it,
one of the things I've been able to do is up my 401(k) contributions.
THE PRESIDENT: That's good.
MR. FERRAIUOLO: So I can keep a little bit more of that money for
my future.
THE PRESIDENT: That's wonderful.
* * * * *
THE PRESIDENT: One of the things I like to talk about is the need
for us to be a responsible society; people take responsibility for the
decisions they make in life, people take responsibility -- people
seize opportunity. The thing I like about Jessica's story is she's
willing to seize an opportunity. If you notice, she came looking, she
worked hard to find a position, and now she's found a company that is
doing its responsibility -- in other words, helping people realize
their dreams. And that's a very important part of corporate America.
That's one of the reasons I like Bob, is he understands that.
One of the things that this company does is it provides volunteer
time and encourages people to help love your neighbor like you'd like
to be loved yourself. One of the things about America is -- look,
we've just gone through an interesting story, that says to me that
things look pretty good for the economy. And we've been through a
lot. In other words, it's a fabulous country, because we'll handle
every challenge put in front of us, every challenge, because we've got
wonderful people.
The strength of this country, though, is not our military, although
we'll keep it strong. It's strong, it needs to stay strong and will.
It's not a -- thank you, sir. (Applause.) And by the way, thanks for
supporting the military. And if you've got a loved one over there, you
tell them the Commander-in-Chief is incredibly proud, proud of what
they're doing. (Applause.)
A PARTICIPANT: They're right out there.
THE PRESIDENT: Where?
A PARTICIPANT: This young man right here.
THE PRESIDENT: Thank you for your service. I appreciate you,
thanks. (Applause.) That's great. The strength is not our military,
it's not our wallet, it's the heart and soul of the American people.
That's the strength. And the fact that this company is willing to say,
you know, follow your heart and go help somebody who hurts, is an
important part of keeping this country strong. It really is. The fact
that people are willing to hear the universal call to love a neighbor
like you'd like to be loved yourself is really an important part of
this nation. It's a vital part of the nation. So for those of you who
are dreaming big dreams and working for them, like Jessica is, thanks
for doing that, and like our business owners. I appreciate that. It's
important that you dream big dreams and work hard.
For those of you who are helping people realize their dreams, I
thank you, as well. It's an incredibly vital part of a bright future
for our country. There's nothing America can't achieve, nothing we
can't achieve. You know why? Because this country is full of fabulous
people. It's my honor to be with a lot of them here today.
(Applause.)
Thank you for coming. God bless. Thank you for your time.
(Applause.)