[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,

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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.