    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book II)]
    [August 2, 2003]
    [Pages 976-977]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 976]]

    The President's Radio Address
    August 2, 2003

        Good morning. This week, we received some encouraging news on the
    economy. The Nation's economy grew faster than expected in the second
    quarter. Manufacturers are receiving more orders, and their inventories
    need to be replenished. Homebuilders are busy meeting near-record
    demand, and retailers report that consumers are buying more goods. Many
    economists expect that growth will accelerate in the coming months.
        Yet this week's employment report also shows that many Americans who
    want to work are still having trouble finding a job. My administration
    is acting to promote faster growth to encourage the creation of new
    jobs. The key to job growth is higher demand for goods and services.
    With higher demand, businesses are more likely to hire new employees.
        The best way to promote growth and job creation is to leave more
    money in the pockets of households and small businesses instead of
    taxing it away. So we lowered income tax rates, cut taxes on dividends
    and capital gains, reduced the marriage penalty, and increased the child
    tax credit. This week, the checks for up to $400 per child started
    arriving in the mailboxes of American families. That money will help
    American families move the economy forward.
        We have also taken action to help small businesses, who are the job
    creators of America. We increased tax incentives for equipment
    purchases, giving small businesses an additional reason to invest. More
    orders for machinery and equipment means more jobs, and more business
    investment can lead to greater worker productivity, which helps raise
    worker wages.
        We are starting to see results from our actions. My administration's
    economists believe that if we had not passed tax relief, our
    unemployment rate would have been nearly one percentage point higher,
    and as many as 1.5 million Americans would not have the jobs they have
    today.
        This week, three members of my Cabinet--Treasury Secretary John
    Snow, Commerce Secretary Don Evans, and Labor Secretary Elaine Chao--visited business owners and their workers in the Midwest.
    They received reports that the economy is picking up.
        Last month, I met with Mike Gendich, who
    owns a part-making company in Michigan called Metalmite. Mike's
    customers are keeping him busier than he has been in 3 years, giving him
    reason to hire three new workers. Tax relief has given him reason to
    invest in new equipment to keep those workers productive. In Mike's
    words, tax relief ``can be the difference between making an investment
    or not.'' When small-business owners like Mike make new investments,
    that can also be the difference between someone finding work or not.
        Tax relief is one part of my aggressive, progrowth agenda for
    America's economy. We're negotiating free trade agreements with
    countries to create new markets for products made in America. Congress
    needs to pass a sound energy bill to ensure our Nation has reliable,
    affordable supplies of energy. And Congress needs to let small
    businesses join together to purchase affordable health insurance for
    their employees. We need legal reform to stop the frivolous lawsuits
    that are a drag on our economy. We have pushed Congress to make the
    child credit refundable for lower income families. And we're working to
    control spending in Washington, DC, so that Government spending does not
    rise any faster than the average household budget is expected to grow
    this year.
        America's economy has challenges, and I will not be satisfied until
    every American looking for work can find a job. By steady,

    [[Page 977]]

    persistent action, we are preparing the way for vigorous growth and more
    jobs. I have confidence in our economic future because I have confidence
    in the people whose effort and creativity make this economy run, the
    workers and the entrepreneurs of America.
        Thank you for listening.

    Note: The address was recorded at 11:53 a.m. on August 1 in the Cabinet
    Room at the White House for broadcast at 10:06 a.m. on August 2. The
    transcript was made available by the Office of the Press Secretary on
    August 1 but was embargoed for release until the broadcast. The Office
    of the Press Secretary also released a Spanish language transcript of
    this address.