University of Alabama at Birmingham
Alys Stephens Center
10:20 A.M. CDT
THE PRESIDENT: Thank you all very much. Thank you for coming. So
I come up here with Thornton and he says, I think driving a bulldozer
is a little easier than introducing you. (Laughter.) I said, well,
you must be a pretty good bulldozer driver then, Thornton, because you
did a great job of introducing me. Thank you very much. I appreciate
your being here. (Applause.)
Thornton is the President of Stanley Construction Company. He's
one of several business leaders from Alabama I met with today to talk
about what we can do together to help this economy recover.
I want to first tell you how proud I am to be back in Alabama.
It's a great state. It's produced some wonderful Americans, starting
with my National Security Advisor, born and raised, Condoleezza Rice,
right here in Birmingham. (Applause.)
And I'd be in trouble with the Secretary of State -- at least his
wife -- if I didn't remind you all that Alma Powell was raised, born
and raised right here in Birmingham, Alabama, too. (Applause.)
It's an honor to travel today with members of the congressional
delegation, two fine United States Senators: Senator Shelby and
Senator Sessions. Thank you all for coming. (Applause.) We've
attracted quite a few members of the House delegation here. I'm not
suggesting that they're here to be close to the President just in case
they can get aboard Air Force One when we're heading back.
(Laughter.) But if you guys do get on, you'll find it to be a
comfortable plane. (Laughter.) But I'm proud that Sonny Callahan and
Terry Everett and Bob Riley and Bob Aderholt and Spencer Bachus are
with us, too. Thank you all for coming. (Applause.)
These are fine members, and they're good people to work with, and
they put their country first. And I appreciate that a lot.
(Applause.)
I know the Lieutenant Governor is here, and the Attorney General is
here, and the Mayor is here -- Mayor of Birmingham. I want to thank
you three for coming, as well. I appreciate your hospitality.
(Applause.)
I personally want to thank the good folks here at UAB, University
of Alabama-Birmingham, for allowing us to use, first of all, this
fantastic facility. I had the honor of speaking with the President
earlier today. I am proud of the accomplishments of this fine
university. It is a university that is on the leading edge of
important medical research. It's a university that has fostered and
kindled the growth of small businesses here in Birmingham. President
Marc was rightly proud of the place, and I know you are, as well. And
I want to thank you for your hospitality from the bottom of my heart.
(Applause.)
And, finally, one of the things I like to do when I come to a
community is meet and herald those soldiers in the armies of compassion
which exist all across our country. And today when I got off of Air
Force One, there was a man named Roman Gary there. Roman, are you
here? Where are you, Roman? There he is.
Roman Gary -- the reason I bring up Roman is he is a -- he's a man
who understands that our children need love; in order for our society
to be a vibrant and whole place, there are some who need to be having
an adult in their life, somebody who -- there's a child somewhere in
Birmingham and all across the country and needs somebody to put their
arm around them and to say: I love you; you're a part of America.
And so Roman understands that. It didn't require a government law,
it didn't require a giant act of Congress or a Presidential edict. It
required somebody like Roman loving a neighbor like he would like to be
loved himself. And, therefore, he has poured his heart and soul into
Big Brothers and Big Sisters here in Birmingham, Alabama. And I thank
you. (Applause.)
Our society can and will change, one heart, one soul, one
conscience at a time. And while each of us can't do everything, each
of us can do something to advance a decent a whole society. And so
Roman, on behalf of the thousands of your fellow Americans who heard
the call to help the communities in which you live, people who have
assumed responsibility for their lives here in America, I want to thank
you, and thank all of you all for doing the same thing. (Applause.)
A secure America is an America that is a compassionate America. A
secure America is also an America that is willing to hunt down
international killers one by one and bring them to justice.
(Applause.) And that's what we're going to do. It doesn't matter how
long it takes, this country will defend our freedoms. This country
will defend civilization itself. This country will not let the acts of
a few cold-blooded killers stand. (Applause.)
As well, in order for us to have the security we all want, America
must get rid of the hangover that we now have as a result of the binge,
the economic binge we just went through. We were in a land of -- there
was endless profit, there was no tomorrow when it came to, you know,
the stock markets and corporate profits. And now we're suffering a
hangover for that binge.
But I want you to know the economy, our economy is fundamentally
strong. This economy is -- has got foundations for growth so the
people who want to find work can find work; so that the entrepreneurs
in America can flourish.
Listen to the facts. Inflation is low. An important part of an
economic recovery is to make sure that inflation is under control. It
is. We've got sound monetary policy. Interest rates are reasonable.
If people want to borrow money, you don't have to pay a lot of
interest. Productivity is increasing. We lead the world in
productivity gains as a result of the entrepreneurial spirit and the
fine workers we have in America. That's an important indication of how
sound our economy is.
The first quarter growth of 2002 was a little over 6 percent.
That's a pretty good sign that the foundations for growth are there.
Orders for durable goods for the past six months are up. The
manufacturing sector was done, but slowly but surely it is recovering
from a slow-down that began for all of our economy in early of March
2000.
Last month, retail sales were up by 1 percent. Consumers are
buying. In other words, in spite of the fact that we've been in a
slump for a while, and in spite of the fact that the terrorists
attacked us and affected our economic outlook, American business and
workers are resilient and resolved. And this economy is coming back.
That's the fact.
But I understand this, that the American economy is constructed on
confidence: confidence to invest and build, confidence for our small
business owners to take risk, confidence that the job base will expand,
confidence to produce and hire. And so I want to talk to you today
about ways in which I intend to continue to work in Washington to build
confidence, to build on the foundations, the strong foundations for
economic vitality that exists, to build on the good statistics we're
beginning to see. Of course, I like to remind people that Washington
is full of all kinds of numbers-crunchers. They talk about this number
here, and that number there. My attitude is, so long as somebody who
wants to work can't find work, we've got a problem we need to deal
with.
And so I want to talk about long-term economic growth and what we
can do about it. I want to make sure it is clear to those in Congress
that I will resist runaway congressional spending which could serve as
a drag on economic vitality. (Applause.)
And finally, I expect and you expect and our country expects the
highest ethical standards in corporate America. (Applause.) First,
we're promoting long-term growth, the kind of growth that understands
that the main job creators in America are small business
entrepreneurs. (Applause.) And if you're interested in recovery -- if
you're interested in recovery of the job base, it is important for us
to remember who creates most of the jobs: and those are the small
business owners in America. And that's why I fought so hard for a tax
cut for the American people. I believe when you cut taxes, it spurs
economic growth, particularly in the small business sector.
(Applause.)
Most entrepreneurs are not incorporated. Most small businesses are
what they call sole proprietors or limited partnerships. And so they
pay tax like an individual pays tax. And so when we reduce the taxes
on the individuals, we reduce the taxes on small business growth. It
was important to do that. I remember the outcry, of course, because if
you want more money in Washington, you don't want to let the people
keep their own money. So they started quoting these textbooks that
said, when times are slow, raise taxes; when times are slow, don't let
the people keep their money.
The textbook I read says that if we let you have your own money,
you'll decide to spend it on a good and service. And if you decide to
spend it on the good and service, somebody will produce the good and
service. And when somebody produces the good and service, it means
somebody is going to find work.
In the tax relief plan, we reduced the marriage penalty.
(Applause.) We reduced the alternative minimum tax which affects many
small business owners. And we did something else that's important --
it's important for all small business owners -- and that is we
eliminated the death tax. (Applause.) I say we eliminated the death
tax. By a quirk of the Senate rules, the death tax, however, isn't
eliminated after 10 years. That's a hard one to explain. (Applause.)
We eliminated it, but didn't eliminate it.
So for the good of long-term planning, for the good of the
entrepreneurial spirit, for the good of allowing people to pass their
business, farm, or ranch to whoever they want to pass it to, we need to
make the tax cuts that we put in place permanent. (Applause.)
I want to expand trade. I believe that will help create jobs.
Confident people are willing to expand trade. Non-confident people,
you know, people who aren't confident about America and our ability to
compete, want to build barriers around the country. And I'm
confident. Listen, I know our farmers -- Alabama farmers, Texas
farmers, farmers all across the country are the best in the world. And
if you're the best at something, we ought to be opening up markets for
them so they can sell their products around the world. (Applause.)
We're good at a lot things in America, and we ought to be selling
our products all around the world. It's time for Congress to quit
talking and start acting, and giving me trade promotion authority so we
can open up more markets and more people can find work right here in
America. (Applause.)
There's an issue that the Congress needs to get to my desk quickly
that will show good judgment and way to help our economy recover, and
that is to pass a terrorism insurance bill. It basically says that the
government will help cover certain losses for insurance companies for a
terrorist act. It is important that we pass this so that major
construction projects which cannot get insurance can go forward. And
when those construction projects go forward all across the country, it
means somebody is going to be able to find work.
It's important for us to be realistic about how to provide help so
that there is insurance coverage for projects. We can do so that
creates jobs -- not jobs for trial lawyers. We must not have
legislation -- (applause.) This legislation must keep in mind the
workers of America, and not open up our government and/or employers to
unnecessary and frivolous and junk lawsuits. (Applause.)
And I appreciate -- I appreciate the reform-minded folks here in
the state of Alabama who understand that junk and frivolous lawsuits
affect small business owners like Thornton. It makes it hard for him
to expand his business, to hire people. Listen, you ought to have your
day in court, no question about it. But we've got to make sure that
these junk and frivolous lawsuits stop running up the cost of doing
business and make it harder for people to employ people here in
America. (Applause.)
And finally -- and finally, good economic policy starts with good
education policy. And I want to share with you right quickly what has
happened in Washington in terms of public education and why I think
it's going to make a tremendous difference in the lives of citizens all
across Alabama and all across the country. An educated work force is
necessary if we intend to compete.
A lady representing Honda told us today that -- I think she said
there's going to be additional 2,000 jobs here in Alabama. This is in
the face of what appears to be pretty rough economic times for some.
But 2,000 new jobs is fantastic. It also means that you make sure
you've got to have 2,000 educated workers. And it starts with public
schools. It starts with making sure every child in America learns the
basics -- learns to read and write and add and subtract. Which means
you start with setting the highest of high standards.
I can't tell you how important that is, to set high standards and
to have high standards. Because if you don't, if you have low
standards it means certain kids aren't going to learn. If you lower
the bar, guess what's going to happen? You'll have low results.
People who adhere to low standards in public education essentially
admit there are certain kids who can't learn. I don't accept it.
As a matter of fact, I know what happens in systems that say there
are certain children who can't learn. It basically means, if we want
to be honest about it, inner-city African American kids are just
shuffled through the school system as if they don't matter. Children
whose parents don't speak English as a first language, they're deemed
to be hard to educate, so it's just easy to move them through.
For the good of our country, for the good of the job base, for the
good of the American Dream, we must end that kind of education policy
in America. (Applause.)
And that means high standards for every child. That means a
mind-set that says every child can learn, and we expect every child to
learn. It means that when you receive federal money -- and by the way,
we have filled the coffers last time around with federal money for
Title I programs. There's a lot of money available for the states now
as a result of the funding last time.
It says though, in return, we expect you to show us whether or not
the children are learning to read and write and ad and subtract. We
expect there to be strong accountability. In return for taxpayer's
money, we the taxpayers want to know whether or not high standards are
being met. We expect the children to be able to read and write and add
and subtract, we want the children to be able to read and write and add
and subtract, and we expect you to deliver on the promise that children
should be able to read and write and add and subtract. (Applause.)
I've heard the argument. Listen, I was the governor of a great
state that fought hard for accountability. I heard every argument in
the book against accountability: you know, it's racist to test. It's
racist not to test. It's racist not to test. (Applause.) If you
expect all children to learn, we want to know, and the testing ought to
be viewed as a way to determine what works and what doesn't work. It
ought to be viewed as a way to say, if there is a problem, let's
address it now, early, before it's too late. We want to know. You
can't solve a problem unless you're able to diagnose the problem.
And the accountability is the diagnostic tool available for not the
bureaucrats in Washington, D.C., the local folks, because we believe in
local control of schools. (Applause.) I firmly believe that the
education plan that we passed is going to make a significant difference
in making sure we achieve the national goal of not one child, no child
should be left behind in America. (Applause.)
In order to make sure we have economic growth and vitality, in
order to make sure we build on the foundation that is laid for economic
growth, I will enforce fiscal discipline in Washington, D.C. I think
it is so important that we make sure that we fund our priorities --
fighting the war and the homeland defense, educating our children --
and that Congress hold the line on additional spending. Because if
there is perceived deficits, the markets react, and if there's
perceived deficit, sure enough what's going to happen is people are
going to start calling for tax increases. And you don't want to run a
person's taxes up in the middle of an economic recovery.
Secondly, my philosophy is, is that I'd rather you spend your
money. We want to fund our priorities, but when it all comes down to
it, after the priorities are funded, you're better at spending your
money than I am. It's your choice to spend your money on your
families. (Applause.)
Congress must control its appetites for additional spending. There
is -- I submitted what they call a supplemental. It's an urgent
request for funding the war and homeland security. I submitted that
over four months ago, and yet, I haven't ever seen anything from
Congress yet. The Senate needs to act, and the House needs to act to
get this to my bill -- to my desk, so we can fund programs. And part
of the problem is, is that the Senate wants to add billions more than
we requested to the supplemental. They view it as a funding
opportunity, as opposed to a -- as a focused approach on funding the
war against terror and making sure our homeland -- the agencies are
funded.
Now, they're going to say, well, you know, we're going to maybe
play this down to the very last minute. No. Now is not the time for
games when it comes to the appropriations process. (Applause.)
There is no budget in the Senate. The House passed a budget;
there's no budget in the Senate. Which means, I guess, that I'm going
to have to remind the spenders in Washington that I have submitted a
budget. And I hope they watch it very carefully as they determine the
size of the appropriation bills. The defense of the country is a
priority. Homeland defense is a priority. Other parts of the budget
have grown, but we expect them to be realistic about how they spend.
After all, the budget plan I proposed says if Congress is realistic and
reasonable and funds priorities, that we can balance the budget in the
year 2005.
Now, that requires discipline, and I intend to help Congress
understand discipline is needed in Washington, D.C. One of the best
ways to make sure that our economy grows is for there to be a joint
effort in being fiscally responsible with your money. And that's
exactly what's going to happen in Washington, D.C. (Applause.)
Another way to make sure that we foster growth and restore
confidence is to hold people accountable for misdeeds in the public
sector. It is important for corporate America to hear this call -- you
are -- in order to be a responsible American, you must behave
responsibly. We expect there to be full disclosure of assets and
liabilities. We expect there to be fair accounting practices. We
expect you to treat your investors and employees with the respect they
deserve. And if not, we intend to do something about it at the federal
level. We intend to hold people accountable.
That's why I set up what they call a Corporate Fraud Task Force in
the Justice Department. We also have proposed doubling the jail time
for corporate fraud. A proposed provision is to make sure that
corporate executives cannot transfer company funds to their personal
accounts while their company is under investigation. (Applause.) I am
for increasing the budget of the regulatory authorities, to make sure
that there is enough manpower and technology available to run down the
facts and to hold people accountable. We're making sure that
executives who commit improper acts will forfeit phony profits. And
we're saying that if you have defrauded investors, you can never serve
as a CEO or on the board of directors of a company again. (Applause.)
I support the creation of a strong, independent board that will
provide effective oversight of the accounting profession. In other
words, I'm willing to work with Congress to make sure that we've got
the necessary law in place that will hold people accountable without
stifling the entrepreneurial spirit of America, without stifling
innovation in America. (Applause.)
The House has passed a bill, the Senate is going to pass a bill
tonight, I understand. The two need to get together as quickly as
possible, and get me a bill that I can sign before the August recess.
(Applause.) But the truth of the matter is, we can't pass a law that
says you'll love your neighbor like yourself. And we can't pass a law
that says you will be honest. We can pass laws that say, if you're not
honest, we'll get you. (Applause.) Corporate America must make the
decision each as an individual that you're going to uphold high
standards, that you have a responsibility to our society, that you've
got the responsibility to your shareholder and your employee to treat
both with the respect they deserve.
Now, the good news for our country is that by far, the vast
majority -- by far -- of people who have taken on the responsibility to
run a corporation are good, honorable people. A few have damaged the
reputation of the many, and that's why we've got the Corporate Fraud
Task Force. But I call upon all of us in America to understand the
awesome responsibilities we have in this country -- the
responsibilities if you run a company, to be forthright and open, and
the responsibilities if you live in America to help work in the
community in which you live to make it a better place.
You know, I like to remind our fellow citizens that out of the evil
done to America is going to come some incredible good. I believe
that. Oh, some are saying, maybe he's too optimistic. That's what I
believe about America. I believe our soul is strong, our Constitution
is firm. I believe this country's great strength is the fact that
we're such a decent and honorable group of people, that out of the evil
done to America will come peace.
If we're strong and steady and resolved, we can achieve peace. Out
of the evil done to America will come an economic vitality that will be
vibrant, because we're an entrepreneurial people, risk takers and
dreamers and doers. And out of the evil done to America will come a
better America, because in our prosperity and wealth, we've got to
remember there are pockets of despair and hopelessness and addiction.
There are some in our society who wonder whether or not America is
really -- the American Dream is meant for them. There are some young
Americans who have no hope. And I refuse to concede that, however. I
believe that out of the evil done to America can come some incredible
good, particularly as our fellow Americans respond to the call to love
a neighbor like you'd like to be loved yourself.
I'm a strong proponent of the faith-based initiative, because I
understand that government can hand out money, but it cannot put hope
in people's hearts or a sense of purpose in people's lives.
(Applause.)
No, I believe the enemy hit us, but they didn't know who they were
hitting. They must have thought we'd file a lawsuit or two.
(Laughter.) But they didn't realize that when it comes to the defense
of our freedoms, we're strong. And when it comes to the love of our
fellow human beings, we're compassionate.
I want to tell you I'm honored that you came out today. My vision
for the country is one that's positive and hopeful. I believe there is
a better day right around the corner for all Americans. And I believe
that because I know that I'm the President of the greatest country on
the face of the earth.
Thanks for coming today. May God bless you, and God bless
America. Thank you all. (Applause.)