    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book II)]
    [July 15, 2002]
    [Pages 1234-1240]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks at the University of Alabama-Birmingham in Birmingham, Alabama
    July 15, 2002

        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.
    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 Adviser, born and raised, Condoleezza Rice, right here in Birmingham. 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.
        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. 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. These are
    fine Members, and they're good people to work with, and they put their
    country first. And I appreciate that a lot.
        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.
        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

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    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.
        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.
        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 and 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.
        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. 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 coldblooded killers
    stand.
        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 6 months are up. The manufacturing sector was
    down, but slowly but surely it is recovering from a slowdown that began
    for all of our economy in early of March 2000. Last month, retail sales
    were up by one 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.

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        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.
        And finally, I expect and you expect and our country expects the
    highest ethical standards in corporate America. First, we're promoting
    long-term growth, the kind of growth that understands that the main job
    creators in America are small-business entrepreneurs. 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. 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. 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.
        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. 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.
        I want to expand trade. I believe that will help create jobs.
    Confident people are willing to expand trade. Nonconfident 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.
        We're good at a lot of things in America, and we ought to be selling
    our products all around the world. It's time for Congress

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    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.
        There's an issue that the Congress needs to get to my desk quickly
    that will show good judgment and a 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--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.
        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.
        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 workforce 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.
        And that means high standards for every child. That means a mindset
    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 add and

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    subtract. We expect there to be strong accountability. In return for
    taxpayers' 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.
        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. 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, DC--the local folks, because we believe in
    local control of schools. 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.
        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, DC. 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.
        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 4
    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. We expect--[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

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    is needed in Washington, DC. 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, DC.
        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. 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. 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.
        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. 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. 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

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    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.
        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.

    Note: The President spoke at 10:20 a.m. at the Alys Stephens Center. In
    his remarks, he referred to Thornton Stanley, Sr., president, Stanley
    Construction Co.; Alma Powell, wife of Secretary of State Colin L.
    Powell; Lt. Gov. Steve Windom of Alabama; Bill Pryor, Alabama State
    attorney general; Mayor Bernard Kincaid of Birmingham; and Malcolm
    ``Mack'' Portera, interim president, University of Alabama-Birmingham.
    The President also referred to Title I of the Improving America's
    Schools Act of 1994 (Public Law No. 103-382), which amended Title I of
    the Elementary and Secondary Education Act of 1965 (Public Law No. 89-
    10).