[Congressional Record (Bound Edition), Volume 150 (2004), Part 2]
[House]
[Page 1516]
[From the U.S. Government Publishing Office, www.gpo.gov]




  ECONOMIC REPORT OF THE PRESIDENT--MESSAGE FROM THE PRESIDENT OF THE 
                  UNITED STATES (H. DOC. NO. 108-145)

  The SPEAKER pro tempore (Mr. Cole) laid before the House the 
following message from the President of the United States; which was 
read and, together with the accompanying papers, without objection, 
referred to the Joint Economic Committee and ordered to be printed:

To the Congress of the United States:
  As 2004 begins, America's economy is strong and getting stronger. 
Over the past several years, this Nation has faced major economic 
challenges resulting from the decline of the stock market beginning in 
early 2000, a recession that began shortly after, revelations about 
corporate governance scandals, slow growth among many of our major 
trading partners, terrorist attacks, and the war against terror, 
including in Afghanistan and Iraq. These challenges affected business 
and consumer confidence and resulted in hardship for people in many 
industries and regions of our Nation. Americans have responded to each 
challenge, and now we have the results: renewed confidence, strong 
growth, new jobs, and a mounting prosperity that will reach every 
corner of America.
  This Report, prepared by my Council of Economic Advisers, describes 
the economic challenges we faced, the actions we took, and the results 
we are seeing. It also discusses our plan to continue growing the 
economy and creating jobs.
  In May 2003, I signed a Jobs and Growth bill that focused on three 
key goals. First, we accelerated previously passed tax relief and let 
American households keep more of their own money to save, invest, and 
spend. Second, we increased incentives for small businesses to invest 
in new equipment and plant expansions. Third, we enacted important tax 
relief on dividend income and capital gains to help investors and 
businesses. These actions were designed to promote investment, job 
creation, and income growth. By all three measures of performance, we 
are seeing signs of success.
  Since May 2003, we have seen the economy grow at its fastest pace in 
nearly 20 years. Consumers and businesses have gained confidence. 
Retail sales are strong, and Americans are buying, building, and 
renovating houses at a record pace. Investment has strengthened, with 
spending on business equipment the best in 5 years. The unemployment 
rate has fallen from it peak of 6.3 percent last June to 5.7 percent in 
December, and employment is beginning to rise as new jobs are created 
especially in small business. Productivity growth has been strong, 
leading to higher incomes for workers, while the tax relief we passed 
means that American families keep more of their money instead of 
sending it to Washington.
  We are moving in the right direction, but have more to do. I will not 
be satisfied until every American who wants a job can find one. I have 
outlined a six-point plan to promote job creation and strong economic 
growth. This plan includes initiatives to help manage rising health 
care costs to make health care more affordable and accessible for 
American workers and families; reduce the burden of junk lawsuits on 
the economy; ensure a reliable and affordable energy supply; simplify 
and streamline government regulations; open foreign markets for 
American goods and services; and allow businesses and families to keep 
more of their hard-earned money and plan with confidence by making our 
tax relief permanent. This year, I will work with the Congress to 
achieve these goals.
  I will also continue to work with the Congress on another important 
shared goal: controlling federal spending and reducing the deficit. The 
federal budget is in deficit, foremost because of the economic slowdown 
and then recession that began in 2000 and the additional costs of 
fighting the war on terror and protecting the homeland. We are 
continuing to take action to restrain spending and bring the deficit 
down. By carefully evaluating priorities and being good stewards of the 
taxpayer's money, we will cut the budget deficit in half over the next 
five years.
  The task of reducing the deficit will become easier because America's 
economy is growing. We have taken the actions needed to restore growth, 
and we are pursuing additional policies to help create jobs for 
American workers and families. I'm optimistic about the future of our 
economy because I know the values of America and the decency and 
entrepreneurial spirit of our people.
                                                      George W. Bush.  
The White House, February 2004.

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