    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book II)]
    [November 3, 2003]
    [Pages 1449-1456]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks at CraneWorks in Birmingham, Alabama
    November 3, 2003

        Thanks for the warm welcome. It's great to be back in the great
    State of Alabama. I'm honored you all came out. Today I'm going to talk
    about a couple things on my mind. One is our economy. I want to make
    sure people are working here in Alabama and all across America. I'm
    going to talk about how to make America a more secure place.
        Before I do, I want to thank the CraneWorks boys for hosting us, the
    brothers, the Upton
    boys--[laughter]--entrepreneurs, job creators, dreamers, people who have
    created something out of nothing. I want to thank the employees as well
    for being such hard-working, good folks here at CraneWorks. I'm honored
    to be in your place of business. I'm honored here--in a company that is
    creating jobs, new jobs, to be talking about how best we can continue to
    create new jobs all across America. This economy of ours is growing. The
    entrepreneurial spirit is strong. But there's more work to do, and
    that's what I want to talk to you all today about. Before I do so, I do
    want to thank David and Steve for hosting us.
         I want to thank Rom Reddy as well. Rom is
    a local entrepreneur. He started Nexcel Synthetics. I'm going to talk a
    little bit about his business, but I know he's got some employees here
    as well, hard-working people who have helped take this startup company
    from nothing to something in a quick period of time. The chief executive
    officer has got a bright and enthused future about this little company.
    He's talking about creating more jobs, but he also said,

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    ``When you get up there, make sure you recognize the people that work
    with me in my company, because I wouldn't be having, or we wouldn't be
    having the success we're having without the good, hard-working people
    that are working with Rom.'' So wherever you are, thank you for coming.
        I'm traveling in some pretty fancy company today, at least from the
    airport to here. Your Governor, Bob Riley, is here
    today, and I want to thank my friend for serving the State of Alabama. I
    appreciate you being here, Governor.
        Two really fine United States Senators are here with us, strong
    allies, good friends, and that's Richard Shelby and Jeff Sessions. I appreciate
    you all coming. The mighty Alabama congressional delegation is strong
    and active. Spencer Bachus and Robert
    Aderholt and Jo Bonner
    and Mike Rogers and Terry Everett are all with us today. Congresspeople, thanks for
    coming. Attorney general from the State of Alabama is with us, Bill
    Pryor. I'm honored that Judge Pryor is here.
        Today, when I landed out there, I met a fellow named Jason
    Nabors. You probably never heard of Jason. He
    is a soldier in the army of compassion here in Birmingham, Alabama. The
    reason I like to bring up people who are volunteering in their community
    is, oftentimes people look at America and say, ``Well, that's a mighty
    country,'' because we've got a strong military; it's a mighty country
    because our wallets are heavier than other people around the world. No,
    we're a mighty country because the people who live here in this country
    are decent, caring, compassionate people who have heard the call to love
    a neighbor just like you'd like to be loved yourself.
        Jason Nabors works at a local law firm, and
    by the way, his law firm encourages the lawyers in that firm to find a
    way to contribute to the Birmingham community by helping somebody who
    hurts. He's involved with First Look. It is a nonprofit organization
    that is created to increase the number of youngsters and young adults in
    the service to the people of Alabama by encouraging them to follow their
    hearts, by mentoring a child, by helping somebody who may be addicted,
    by feeding the hungry and housing the homeless.
        I see we've got Scouts with us today. There's nothing better than
    being a Boy Scout leader and sending good signals and examples to the
    youth of America. For all of you who take time out of your busy lives to
    help somebody in need, I want to thank you from the bottom of my heart.
    You are the strength of our country.
        When we talk about our economy and the future of our country, it's
    important to remember what we have been through. See, we've been through
    a lot here in America. The stock market started to decline about 9
    months before Dick Cheney and I showed up in
    Washington, and then the country was in a recession. That means three
    quarters of negative growth. That means we were headed backwards. That
    means people were not finding work. That means we had trouble on the
    homefront of many homes across the country, because people weren't able
    to do their job of providing food for their families; they were looking
    for work.
        And then we began to recover somewhat, and the enemy hit us on
    September the 11th, 2001, and that hurt. It hurt us economically.
    Frankly, it hurt us psychologically, because most of us grew up in a
    period where we thought oceans would protect us from harm. We saw a
    problem overseas, we could deal with it if we felt it was necessary for
    our security, but we at home were secure. We were protected. It was a
    big blow to us. It hurt a lot. We responded. We dedicated ourselves to
    the security of this country. We understood the challenge. America is a
    tough, resolved nation when we're challenged.
        And then we began to recover from that, and our confidence was
    shaken by the fact that some of our chief executive officers

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    forgot what it meant to be responsible citizens. They didn't tell the
    truth. They didn't tell the truth to their employees. They didn't tell
    the truth to their shareholders. They betrayed the trust. We passed
    laws, by the way, that are sending a clear signal: If you betray the
    trust, there will be a consequence; we will hold you responsible for not
    telling the truth. But the fact that some in corporate America betrayed
    the trust affected our confidence.
        And then, as you well know, we marched to war in Afghanistan and
    Iraq for the security of our country and for the peace of the world, all
    of which affected our confidence. It affected the economy. I mean,
    Alabama has been hit hard by--in the manufacturing sector, the textile
    sector. These are challenges, but we met the challenges with action. We
    took tough action in order to move this economy forward.
        First of all, as I mentioned, we passed new laws that say if you're
    going to cheat, we will hold you to account. And if you noticed, some of
    those who behaved irresponsibly are now being held to account. Secondly,
    we acted on principle. We said the best way to get this economy going
    and the best way to help people find work is to let people keep more of
    their own money. We understand how the economy works. If a person has
    more of his or her own money, they're likely to demand a good or a
    service, and when somebody demands a good or a service, in this economy,
    somebody is going to produce the good or a service. And when somebody
    produces a good or a service, somebody is more likely to find a job.
        And so therefore, I went to the Congress, not once but twice, and
    said, ``In order for people to be able to find work here in the country,
    let's pass meaningful, real tax relief.'' And I want to thank the
    two Senators and the Members of Congress who are here today for
    joining me in passing tax relief so people can find work.
        We wanted tax relief to be as broad and as fair as possible, so we
    reduced taxes on everybody who pays taxes. We thought that was a fair
    principle. Government shouldn't try to pick or choose winners and losers
    on who gets tax relief. If you're going to reduce taxes, reduce them on
    everybody, which is precisely what we did. We felt like the marriage
    penalty sent the wrong signal. See, we want people to be married. We
    think marriage is good. We think it's a part of a--[applause]--but the
    Tax Code penalized marriage. And so we've reduced the marriage penalty.
        We understand that it's--when the economy is slow and people are
    worried about the future, that it takes a lot to raise a child. And so
    we increased the child credit from $600 per child to $1,000 per child.
    This summer, I remember going to Pennsylvania where they were cutting
    the checks, and I said, ``The check's in the mail.'' Fortunately, it
    turned out to be in the mail. [Laughter] People got money back, money in
    their pocket. If you had a child, you got $400 per child. That meant
    you're in a position to demand the additional good or a service, which
    meant somebody was more likely to find work here.
        We also wanted to encourage investment. If you're interested in job
    creation, then you must be interested in encouraging investment. When
    people invest in plant equipment, for example, it means somebody is
    going to have to produce the plant--produce the equipment. And so we
    encouraged investment by quadrupling the expense deduction for small
    business investment. I'm going to talk a little bit about that in a
    second. But we also cut taxes on dividends and capital gains to
    encourage investment. More investment means more jobs.
        We also believe that if you're a small business or a farmer or a
    rancher, you ought to be able to leave your assets to whomever you
    choose without the Government getting in the way again, so we're phasing
    out the Federal death tax. We

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    don't believe the IRS should follow you into your grave. [Laughter]
        We passed these measures to help individuals, but the measures we
    passed also are incredibly important to the small-business sector of
    America. The small-business sector of our country is vital for job
    creation. See, most new jobs in America are created by small businesses.
    Most small businesses pay a tax at the individual income tax level.
        See, if you're a Subchapter S, or a limited liability corporation,
    just like the two small businesses I've spoken of today, then when we
    cut individual taxes, it's really a cut in taxes for small businesses.
    It means small-business owners have got more money to invest, and when
    they invest, it means somebody is more likely to find a job. It is
    essential for those politicians in Washington to know that individual
    income tax relief is incredibly important for job creation, not only
    because it stimulates demand but because it provides a vital boost in
    the arm for the small-business sector here in America. The Uptons bought nine cranes last
    year in order to rent them out. And they told me that one of the reasons
    why is because of the tax relief. It provided an incentive for them to
    purchase additional equipment.
        Now, that means a couple of things: Somebody has got to make the
    equipment, which means somebody is working; somebody has got to maintain
    the equipment, go rent the equipment; it means people here at CraneWorks
    are more likely to keep a job; but in the
    Uptons' case, or this case, you've actually
    added 15 jobs this year. Now, that's a lot for a startup company, but
    it's a really a lot when you think about the 15 jobs here and the 15
    jobs there and this small business in another State. It's the compound
    effect of the hiring decisions of millions of small businesses that
    paint a good perspective for people to be able to find work. If you're
    interested in job creation in America, you've got to understand the role
    small businesses play in the creation of new jobs in this economy.
    CraneWorks is such an example.
        Steve Upton says about investing, ``You go
    out there; you take your risks''--these are his words, not mine--``you
    put people to work; you get aggressive; and you get business.'' That's
    the entrepreneurial spirit. That's what America is all about. That just
    goes with having a vision for a better tomorrow. That vision was cleared
    up somewhat by the tax plan we passed, and I appreciate the Congressmen
    understanding and the Senators understanding the vital role that small
    business plays.
        Now look, CraneWorks isn't going to succeed because of Government
    policy. It's up to the Uptons to figure out how to build a strategy that
    works. It's up to the Uptons to figure out a marketing plan. It's up to
    them to make wise investment decisions. It's up to them to treat their
    employees with dignity. But all Government is doing is trying to put a
    little wind at their sails, and it seems to be working.
        I appreciate Rom Reddy. He's an
    entrepreneur. He said the tax relief helped him gain confidence in
    making investments--as he said, leveraged up the opportunity to make
    investments, so he bought $6 million in new equipment so he could get in
    the artificial turf business. And somebody had to make the equipment
    when he purchased it. Somebody had to sell the equipment. In other
    words, it's part of economic activity, when people make rational
    decisions in the marketplace. Tax relief encouraged rational decisions
    to be made in the marketplace.
        Rom's company has gone from zero sales,
    zero turf sales, to 17 million in a quick period of time. He's added 60
    new jobs in one year. Sixty people are now working. The tax relief
    helped him to have the confidence necessary to move forward. By the way,
    a lot of his sales are going in Europe and China. See, I'm going to talk
    a little bit about what it means to open up markets, but I just want you
    to know that his

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    business is going to be more successful because he's developing a
    product that he's confident he can sell in other markets, which is good
    for job creation, and it's good for the 60 he's got working for him and
    the some he intends to add. Tax relief puts money into the pockets of
    those who are hiring new people.
        We've got a consistent and effective strategy, and we're making
    progress. Remember, this last week, a surprising announcement--at least,
    it confounded some of the experts--that our third quarter economic
    growth was vibrant. And that's good. Inflation is down, and that's good.
    After-tax incomes are up. People are keeping more of their own money,
    and that's really important for economic growth.
        We've got the best workforce in the world here in America,
    incredibly high productivity gains, which is vital for competition and
    job creation in the long run. By reducing taxes, this administration
    kept a promise. We did the right thing at the right time for the
    American economy.
        And our country is approaching a choice now. Just as our economy is
    gaining some momentum, some in our Nation's Capital, some in Washington,
    are saying now is the right time to raise taxes. To be fair, they think
    any time's a good time to raise taxes. [Laughter] They're consistent.
    [Laughter] So am I. I strongly disagree. Raising taxes now will wreck
    economic recovery and will punish hard-working Americans and endanger
    thousands of jobs.
        There's some other things we can do to make sure that the momentum
    in our economy continues, and I want to talk about them right quick.
    It's what we call the six-point plan. I've laid it out for Congress to
    consider. First, in order to make sure our small-business sector is
    strong and vibrant and make sure they continue to create new jobs, we
    must allow small businesses to form what we call associated health
    plans. That will allow small businesses to pool risk so that they can
    better control the cost of health care.
        We also must have medical liability reform. I'm worried about the--
    what I call frivolous lawsuits that make it hard for docs to practice
    medicine and run up the cost of medicine. It makes medicine less
    affordable and less available. And by the way, frivolous lawsuits
    increase the cost of the Federal budget to Medicaid and Medicare and
    veterans health benefits. You need your day in court when you run into a
    bad doc, but we've got to control these frivolous lawsuits because
    they're making health care too costly. Since it affects the Federal
    budget, medical liability reform is a national issue that requires a
    national solution. The Senate needs to pass that bill.
        And the Senate needs to get out for the junk lawsuits that make it
    hard to do business. It's important that we have a judicial system
    that's fair and balanced. Class action lawsuits oftentimes are not fair
    and balanced. After all, the money goes to the lawyers and not to the
    people who got hurt. We need a system that's fair and balanced, and the
    Senate needs to act on that.
        We've got to cut useless government regulations. We need to do it at
    the Federal level. Riley needs to do it here at the State level. We need
    to make sure our entrepreneurs are focused on job creation, not filling
    out needless paperwork.
        But I believe if you're good at something, you ought to promote it.
    We're great farmers. We're really good ranchers. We're great
    entrepreneurs. We ought to be opening up markets for U.S. products. If
    you're interested in job creation, companies ought to be encouraged to
    sell overseas. If you're good at something, let's promote it. I'm
    concerned, like you are, that trade is not on a level playing field, so
    this administration is spending a lot of time to make sure that trade is
    a two-way street, that it's fair, that it's open.
        But I want you to know that 220 foreign companies from 30 nations
    have located right here in Alabama, in factories and offices, which
    means jobs for Alabama citizens. Trade, if it's done right, can help

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    create new jobs, and that's what this administration is committed to
    doing.
        We also ought to make sure that tax relief is permanent. It's hard
    for me to explain the rules in Washington. Let me put it to you this
    way: the Congress giveth and the Congress taketh away--not because of these Members, by the
    way. But much of the tax relief we passed is scheduled to go away, and
    that's a problem if you're a small-business owner.
        The Upton boys need to have certainty in the Tax Code, so when they
    plan in the future, they know what the rules are going to be. If you're
    raising a family, you don't want the child credit to go back down again.
    If you're married, you don't want the marriage penalty to raise. And
    yet, because of the quirk in the law, the taxes we passed will steadily
    increase over time. And we've got to make the tax relief permanent. For
    the sake of job creation, the Congress must make the tax relief
    permanent.
        And finally, we need a national energy policy. If you're in the
    manufacturing sector, you rely upon energy. And the thought of energy
    supplies being disrupted because of shortages makes it hard for people
    to plan and be aggressive about the future. We had a wake-up call this
    summer. It became quite evident that some of the electricity grid needs
    to be modernized so that people can know the lights are going to be on
    in their houses, so businessowners can plan for the future.
        We submitted a plan to Congress about 2 years ago that had some key
    principles. One, we need to modernize the electricity grid. We need to
    encourage more investment. Those providing electricity must do so on a--
    must have reliability standards not on a voluntary basis, on a mandatory
    basis. We're going to make it mandatory that you make sure you've got
    backup systems available for the people, so if the electricity goes out
    here, you can crank it back up there. But the system needs to be
    modernized. It's antiquated in some parts.
        Secondly, we need to use our technologies to encourage conservation.
    That's very important. Conservation is a vital part of the future of our
    country. We also use our technologies to find different sources of
    energy. I think it would be great if we were able to grow our way out of
    an energy crisis, have the farmers produce product that'll be converted
    into fuel. That makes sense.
        But we've also got to find more energy and use the energy we've got
    at home. We need clean coal technology. We need to use our technologies
    to explore in environmentally friendly ways. Let me tell you what I'm
    telling you, for the sake of national security and for the sake of
    economic security, we need to be less reliant on foreign sources of
    energy.
        The House passed a bill. The Senate passed a bill. They're now
    reconciling their differences. They need to get the job done. They need
    to get an energy bill to my desk. They need to make sure that this
    country is planning for the future with good, sound energy policy.
        We've overcome a lot in this country. The economy took some serious
    shocks. But you know, the entrepreneurial spirit is strong, and the
    workforce is vibrant. We handled a lot; we've overcome it. And now we're
    growing. And the six-point plan I laid out is a plan that says to the
    Congress, ``Let's get together to make sure the economic momentum
    continues.'' We want people working. We're saddened by the fact that
    somebody might be looking for work and can't find a job. There's more
    jobs to be created here in America. We've laid the foundation for
    growth. They need to get these other six things done so we can continue
    the momentum.
        I'm optimistic about our future because I'm optimistic when I meet
    people like Rom and the Upton boys. They love their country.
    They love the people working with them. The entrepreneurial spirit in
    their heart is strong. They take risk. They're willing to make
    calculated risk in order to not

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    only expand their businesses but to make employment possible for people
    here in the great State of Alabama.
        As we overcome the challenges to the economy, we're also answering
    the challenges to the national security. September the 11th, 2001, moved
    the country to grief. It also moved us to action. We must never forget
    the lessons of September the 11th, 2001. We must never forget that
    tragic day.
        I made a pledge that day, and we've kept it. We will bring the
    guilty to justice. We will secure America. We put together a Homeland
    Security Department to do the best we possibly can in coordinating
    Federal efforts and State efforts and local efforts to protect people.
    We're doing everything we can to get resources to the--those on the
    frontline of national, State, and local emergency. That would be your
    firefighters and your police officers and your emergency-management
    teams. But the best way to secure the homeland is to hunt the enemy down
    one at a time and bring them to justice, which is what America is going
    to do.
        America cannot retreat from our responsibilities. We can't hope for
    the best. See, that's what September the 11th taught us, that we must be
    diligent and active. We can't hope terrorists will change their
    attitudes. I like to remind people that therapy is not going to work
    with this bunch. [Laughter] And that's why we've got some really
    incredibly brave people on the hunt. We will win the war on terror;
    there's no doubt in my mind. We will not rest; we will not tire until
    the danger to America and civilization is removed.
        We have got a great United States military, and some of the best
    have fallen in service to our fellow Americans. We mourn every loss. We
    honor every name. We grieve with every family. And we will always be
    grateful that liberty has found such brave defenders.
        We have put the best on the job of securing America and defending
    the peace. Five hundred soldiers in the 877th Engineer Battalion, the
    Alabama National Guard, are deployed. They're fixing roads so life will
    be better. They're rebuilding orphanages. They're repairing schools.
    These proud sons and daughters of Alabama were responsible for
    demolishing the final hideout of the thugs, the sons of Saddam
    Hussein.
        We're grateful for them, and I'm grateful to their families for
    making the sacrifice. You see, freedom's home is America. We're
    freedom's defender. We understand that the advance of human liberty is
    in our national interests. We remember the lessons of September the
    11th, but we also remember that free nations do not attack their
    neighbors, free nations do not develop weapons of mass terror to
    blackmail or hold hostage the world. We also know that America--that
    freedom is not America's gift to the world; that's what we know; freedom
    is the Almighty's gift to everybody who lives in this world.
        The terrorists and the killers and those who harbor terrorists
    cannot stand the thought of a free society in their midst. That's why
    the mission in Iraq is vital. A free Iraq will be a peaceful Iraq, and a
    free and peaceful Iraq are important for the national security of
    America. A free and peaceful Iraq will make it more likely that our
    children and grandchildren will be able to grow up without the horrors
    of September the 11th. We'll defeat the terrorists there so we don't
    have to face them on our own streets.
        The enemy in Iraq believes America will run. That's why they're
    willing to kill innocent civilians, relief workers, coalition troops.
    America will never run. America will do what is necessary to make our
    country more secure.
        We've come through a lot in this country, and yet, there is a lot
    more to do. By being patient and united and determined, by remembering
    the values that make us a strong and unique nation, this country will
    prosper, and our Nation will prevail.

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        I want to thank you all for coming. May God bless you all, and may
    God continue to bless America.

    Note: The President spoke at 10:35 a.m. in the equipment warehouse. In
    his remarks, he referred to David and Steve Upton, owners, CraneWorks;
    Rom L. Reddy, founder, chairman of the board, and chief executive
    officer, Nexcel Synthetics, LLC; and Uday and Qusay Hussein, sons of
    former President Saddam Hussein of Iraq, who were killed July 22 by U.S.
    military forces in Mosul, Iraq.