    [Public Papers of the Presidents of the United States: George W. Bush (2005, Book II)]
    [December 31, 2005]
    [Pages 1904-1905]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    December 31, 2005

        Good morning. Two thousand five has been a year of strong progress
    toward a freer, more peaceful world and a more prosperous America. This
    year we watched the Iraqi people defy the terrorists and suicide bombers
    and hold three successful elections, voting to choose the only
    constitutional, democratic government in the Arab world. We also saw the
    people of Afghanistan elect a democratic Parliament in a nation that
    only a few years ago was ruled by the Taliban.
        These are amazing achievements in the history of liberty. As freedom
    and democracy take hold in a troubled region, we are making the American
    people safer here at home and laying the foundation of peace for future
    generations.
        The United States has a vital interest in the success of a free
    Iraq, so in the year ahead, we will continue to pursue the comprehensive
    strategy for victory that I have discussed with you in recent weeks.
    This strategy has security, political, and economic elements. First, our
    coalition is staying on the offense, finding and clearing the enemy out
    of Iraqi cities, towns, and villages, transferring more control to Iraqi
    units, and building up the Iraqi security forces so they can
    increasingly lead the

    [[Page 1905]]

    fight to secure their country. Second, we are helping Iraqis build the
    political institutions of an inclusive, unified, and lasting democracy.
    And third, our coalition is overcoming earlier setbacks and moving
    forward with a reconstruction plan to rebuild Iraq's economy and
    infrastructure. As we help Iraq build a peaceful and stable democracy,
    the United States will gain an ally in the war on terror, inspire
    reformers across the Middle East, and make the American people more
    secure.
        During 2005, thanks to our tax relief, spending restraint, and the
    hard work of the American people, our economy remained the envy of the
    world. Our economy has been growing strongly for more than 2 years, and
    has added nearly 4\1/2\ million jobs since May of 2003. More Americans
    own their homes than at any time in our Nation's history. Inflation is
    low. Productivity is high, and small businesses are flourishing. Real
    disposable income is up. Consumers are confident, and early reports
    suggest good retail sales this holiday season.
        To keep our economy moving forward, we must continue to pursue sound
    policies in Washington and be wise with taxpayers' money. We made real
    progress this year in restraining Government spending. Last February, I
    submitted to Congress the most disciplined budget proposal since Ronald
    Reagan was President. Working with the Congress, we ended or reduced
    about 90 lower priority or poorly performing Government programs, cut
    nonsecurity discretionary spending, and kept overall discretionary
    spending growth below the rate of inflation. We have now cut the rate of
    growth in nonsecurity discretionary spending each year I have been in
    office.
        Before their holiday recess, both the House and the Senate also
    voted to cut mandatory spending by nearly $40 billion. This will be the
    first reduction of entitlement spending in nearly a decade. By being
    responsible with the taxpayers' money, we are funding our Nation's
    priorities, while staying on track to cut the deficit in half by 2009.
        In the new year, we must also make permanent the tax relief that has
    kept our economy growing. We will work to expand free and fair trade, so
    America's farmers, workers, and businesses can enjoy the opportunities
    the global economy offers. We'll build on the progress we've made with
    this year's energy bill, so our Nation will be less dependent on foreign
    sources of energy. We will continue to promote an ownership society in
    which people have more control over their retirement and health care.
    We'll continue to improve education and job training programs, so our
    citizens have the skills necessary to compete and succeed in the 21st
    century. And we will show the compassionate heart of our Nation and
    provide the people of the gulf coast the help they need to rebuild after
    Hurricanes Katrina and Rita.
        In 2005, America grew in prosperity, advanced the cause of freedom
    and peace, and enhanced our security. Our duties continue in the new
    year, and I'm confident that our Nation will meet the challenges that
    lie ahead.
        Thank you for listening, and happy New Year.

    Note: The address was recorded at 7:52 a.m. on December 30 in the
    Cabinet Room at the White House for broadcast at 10:06 a.m. on December
    31. The transcript was made available by the Office of the Press
    Secretary on December 30 but was embargoed for release until the
    broadcast. The Office of the Press Secretary also released a Spanish
    language transcript of this address.