    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book II)]
    [August 1, 2003]
    [Pages 973-975]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Following a Cabinet Meeting and an Exchange With Reporters
    August 1, 2003

        The President. We had a good Cabinet meeting, talked about a lot of
    issues. The Secretary of State and
    Defense brought us up to date about our
    desires to spread freedom and peace around the world. And the economics
    team of Secretary Snow, Evans, and Chao, who have been
    traveling the country, reported back that there's a positive feeling in
    America about our economy.
        And my attitude is, is that even though some of the numbers are
    good, there are still too many people looking for work, and so we're
    going to keep working on the economy until people can find a job.
        We took some strong action in the past. We reduced taxes on the
    working people, and those tax reductions will be reflected in their
    paychecks soon. Expansion of the child tax credit is helpful to people
    because checks are now in the mail. Both of those events will enhance
    demand for goods and services, which will make it more likely somebody
    will find work.
        There is more to do here in Washington. I'm pleased that the House
    of Representatives and the Senate both have now passed energy bills.
    It's time for them to reconcile their differences, when they get back
    from their August breaks, and get a bill to my desk.
        We need tort reform in America so that our entrepreneurs are more
    likely to focus on capital formation than lawsuits, frivolous lawsuits.
    We need to make sure we get a Medicare bill passed; that's going to be
    helpful for workers today to help plan for their future, to know there's
    a modern Medicare system.
        I appreciate the fact that the Congress has passed trade agreements
    with Singapore and Chile, which means there will be more markets
    available for American entrepreneurs and farmers and ranchers. The more
    places for us to sell products, the more likely it is somebody is going
    to be able to find a job.
        And so even though there's been some progress made in terms of
    numbers, this administration focuses on lives. And when there are people
    looking for work and they can't find a job, it means we're going to
    continue to try to put progrowth, expansive policies in place.

    [[Page 974]]

        So I want to thank the Cabinet members who are focusing on these--
    this very important part of our agenda, and I appreciate your upbeat
    report.
        Let me--I'll answer a couple of questions. Tom [Tom Raum, Associated
    Press] and Patsy [Patricia Wilson, Reuters]. Tom and Patsy will be
    asking questions this morning, and then you won't be asking questions.
    [Laughter]

    National Economy

        Q. Mr. President, are you surprised, and can you explain why 3 huge
    tax cuts and 12 rate cuts by the Fed have not done more in creating jobs
    to this point? And do you think that we're in a jobless recovery?
        The President. I think--I think it's important to remember the
    history of the last couple of years. In March of 2000, the stock market
    began a precipitous decline. That was in March of 2000. And then the
    country went into a recession, which would be the first quarter of 2001,
    and we acted. We called the Congress together and passed a significant
    tax cut. Economic historians would say that the recession of 2001 was
    one of the more shallow recessions. Some would probably say, ``Well,
    maybe you shouldn't have acted, and let the recession go deeper, which
    would have made--may have made for a more speedy recovery.'' Our
    attitude is that we're worried about people's lives; a deep recession
    would have meant more people would have been out of work. We want people
    to work in America; it's in our country's interest they do so.
        Then as the economy kind of got going again, the enemy attacked us.
    September the 11th had a significant impact on our economy. And then we
    discovered some of our corporate CEOs forgot to tell the truth, and that
    affected confidence. And then, as you may remember, Tom, we had the
    steady drumbeat to war. As I mentioned in my press conference the other
    day, on our TV screens there was a--on some TV screens--there was a
    constant reminder for the American people, ``march to war.'' War is not
    a very pleasant subject in people's minds. It's not conducive for the
    investment of capital.
        In spite of all those obstacles and because this administration has
    acted firmly, our economy is growing. And we're confident that over
    time, people will be able to find a job. But we're not going to rest,
    and there's more to do. We need an energy policy. We need tort reform.
    We need Congress to join with the administration to promote progrowth
    policies. But this economy is vibrant and strong, just like our country
    is vibrant and strong. We've overcome a lot, but there's more to do. And
    there's no question there's more to do. And we will do it.
        Patsy.

    North Korea

        Q. Thank you, sir. Does your offer still stand for assistance to
    North Korea if they give up their nuclear program? And how can you deal
    with someone like Kim Chong-il, a man you don't trust?
        The President. Yes. Thank you for bringing that question up, because
    we had some--what we think as positive developments. As you know, we
    were very concerned about trying to enter into a bilateral agreement
    with Kim Chong-il because of the fact that he
    didn't tell the truth to previous administrations. And so we took a new
    tack, and that was to work with our--with China, primarily China,
    initially, to engage China in the process so that there is more than one
    voice speaking to Mr. Kim Chong-il.
        And thanks to the Chinese leadership--and we do applaud Hu Jintao and his administration for agreeing to be a
    responsible party in the neighborhood in which they live--it looks like
    we'll have a multinational forum. What that really means is that more
    than the United States and China will show up to have a meaningful
    discussion with Mr. Kim Chong-il. That means

    [[Page 975]]

    Japan will be there. After all, Japan is an important part of the
    neighborhood. South Korea will be there. They've had a vested interest
    in having discussions and dialogs with Kim Chong-il. And Russia has
    agreed to join, which means there are now five nations in North Korea
    sitting at a table, all aimed at convincing--the discussions will be all
    aimed at convincing Mr. Kim Chong-il to change his attitude about
    nuclear weaponry.
        In the past, it was the lone voice of the United States speaking
    clearly about this. Now we'll have other parties who have got a vested
    interest in peace on the Korean Peninsula. And so I would say the
    progress is being--is good progress. And we're upbeat about the fact
    that others are assuming responsibility for peace besides the United
    States of America. And we'll see how the dialog goes. We fully
    understand the past. We are hopeful, however, that Mr. Kim Chong-il, because he's hearing other voices, will make the
    decision to totally dismantle his nuclear weapons program, that he will
    allow there to be complete transparency and verifiability. And we're
    optimistic that that can happen.
        Listen, thank you all for coming. For those of you in Crawford, I
    will see you--going to Crawford, I will see you soon. As you can tell, I
    got my summer buzz. [Laughter] I'm ready to get down there and enjoy the
    weather.

    Note: The President spoke at 11:20 a.m. in the Cabinet Room at the White
    House. In his remarks, he referred to Chairman Kim Chong-il of North
    Korea; and President Hu Jintao of China.