[Economic Report of the President (2002)]
[Administration of George W. Bush]
[Online through the Government Printing Office, www.gpo.gov]

107th Congress, 2d Session............................H. Doc. 107-158

 
Economic Report of the President





Transmitted to the Congress
February 2002


together with

THE ANNUAL REPORT
of the
COUNCIL OF ECONOMIC ADVISERS



UNITED STATES GOVERNMENT PRINTING OFFICE

WASHINGTON : 2002

---------------------------------------------------------------------

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CONTENTS

Page

ECONOMIC REPORT OF THE PRESIDENT .............................     1

ANNUAL REPORT OF THE COUNCIL OF ECONOMIC ADVISERS*............     5

OVERVIEW .....................................................    15

CHAPTER 1. RESTORING PROSPERITY ..............................    23

CHAPTER 2. STRENGTHENING RETIREMENT SECURITY .................    65

CHAPTER 3. REALIZING GAINS FROM COMPETITION ..................    99

CHAPTER 4. PROMOTING HEALTH CARE QUALITY AND ACCESS ..........   145

CHAPTER 5. REDESIGNING FEDERALISM FOR THE 21ST CENTURY .......   187

CHAPTER 6. BUILDING INSTITUTIONS FOR A BETTER ................   215
ENVIRONMENT

CHAPTER 7. SUPPORTING GLOBAL ECONOMIC INTEGRATION ............   251

APPENDIX A.  REPORT TO THE PRESIDENT ON THE ACTIVITIES
OF THE COUNCIL OF ECONOMIC ADVISERS DURING 2001 ............   301

APPENDIX B.  STATISTICAL TABLES RELATING TO INCOME,
EMPLOYMENT, AND PRODUCTION ...........................   313


* For a detailed table of contents of the Council's Report, see page 9



ECONOMIC REPORT
OF THE PRESIDENT



ECONOMIC REPORT OF THE PRESIDENT

To the Congress of the United States:

Since the summer of 2000, economic growth has been unacceptably
slow. This past year the inherited trend of deteriorating growth was
fed by events, the most momentous of which was the terrorist attacks
of September 11, 2001. The painful upshot has been the first
recession in a decade. This is cause for compassion--and for action.

Our first priority was to help those Americans who were hurt most
by the recession and the attacks on September 11. In the immediate
aftermath of the attacks, my Administration sought to stabilize our
air transportation system to keep Americans flying. Working with the
Congress, we provided assistance and aid to the affected areas in
New York and Virginia. We sought to provide a stronger safety net
for displaced workers, and we will continue these efforts. Our
economic recovery plan must be based on creating jobs in the private
sector. My Administration has urged the Congress to accelerate tax
relief for working Americans to speed economic growth and create jobs.

We are engaged in a war against terrorism that places new demands
on our economy, and we must seek out every opportunity to build an
economic foundation that will support this challenge. I am confident
that Americans have proved they will rise to meet this challenge.

We must have an agenda not only for physical security, but also for
economic security. Our strategy builds upon the character of
Americans: removing economic barriers to their success, combining
our workers and their skills with new technologies, and creating
an environment where entrepreneurs and businesses large and small
can grow and create jobs. Our vision must extend beyond America,
engaging other countries in the virtuous cycle of free trade, raising
the potential for global growth, and securing the gains from
worldwide markets in goods and capital. We must ensure that this
effort builds economic bonds that encompass every American.

America faces a unique moment in history: our Nation is at war,
our homeland was attacked, and our economy is in recession. In
meeting these great challenges, we must draw strength from the
enduring power of free markets and a free people. We must also
look forward and work toward a stronger economy that will buttress
the United States against an uncertain world and lift the fortunes
of others worldwide.


THE WHITE HOUSE
FEBRUARY 2002








THE ANNUAL REPORT
OF THE
COUNCIL OF ECONOMIC ADVISERS




LETTER OF TRANSMITTAL

Council of Economic Advisers,
Washington, D.C., February 5, 2002



Mr. President:
The Council of Economic Advisers herewith submits its 2002 Annual
Report in accordance with the provisions of the Employment Act of
1946 as amended by the Full Employment and Balanced Growth Act of 1978.

Sincerely,


Robert Glenn Hubbard
Chairman





Randall S. Kroszner
Member




Mark B. McClellan
Member