    [Public Papers of the Presidents of the United States: George W. Bush (2006, Book I)]
    [May 19, 2006]
    [Pages 959-970]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on American Competitiveness in Highland Heights, Kentucky
    May 19, 2006

        The President. Thanks. Please be seated. Geoff, thanks for the introduction. He said I was the last
    sitting President--the last sitting President to be here before me was a
    Texan. [Laughter] I don't know what took the other ones so long to get
    here--[laughter]--but I'm proud to be here; particularly proud to be in
    NKU, Northern Kentucky University. Thank you very much for letting me
    come by.
        It's a good place to come to, to make sure that America understands
    we don't need to fear the future because we can shape it. That's what I
    want to talk to you about today, is the need for the United States of
    America to remain the leader of

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    the world. And one way you remain the leader is you have places like
    excellence--centers like Northern Kentucky University where you've got
    innovative curriculum, high standards, the willingness to work in your
    community--all aimed at making sure our kids have got the skills
    necessary to compete. And that's why I'm here.
        So I want to thank the president--Mr. President, thanks for having me. [Laughter] He'd probably rather be
    called doctor. But, Jim, thank you for having us. Thank the faculty for
    letting me come. I appreciate you teaching; teaching is a noble
    profession. For the students who are here, one career path you ought to
    think about is being a teacher. And one thing you've always got to
    remember is the child's first teacher is a mother and a father.
        I bring my RSVPs from Laura. She is giving a
    graduation speech tomorrow--she just didn't get the invitation to come
    to NKU to give the graduation speech here. [Laughter] If you had been
    wise, you would have had her and not me. [Laughter] She sends her best.
    She is really, really a good person, and I'm proud to--[applause]--I'm
    proud to call her wife. She's got to be the most patient woman in
    America. [Laughter] She's doing great; she sends her best.
        I appreciate very much Congressman Geoff Davis. He's an interesting person. He served his country in the
    United States military. He didn't have to run for the United States
    Congress; chose to do so--I think sets a good example for people to
    understand, public service is a noble calling. And I want to thank you
    for inviting me here, Geoff.
        I appreciate Senator Jim Bunning
    being here as well. So I was asking him what it was like to face the
    Cincinnati Reds. [Laughter] You might remember those days--[laughter]--
    at least I do. He's not only a fine Senator, he's a wonderful person.
    And his wife, Mary, reminded me she came here
    to NKU just a couple of years ago. [Laughter] She had the same kind of
    career my mother did. Got in, got out without a
    degree, but nevertheless loved the experience. [Laughter]
        I appreciate very much State Senator David Williams, president of the State senate. Thanks for coming. Make
    sure they got plenty of money to run this university, Senator. I've
    known Williams long enough where I can tell him that, see. [Laughter]
    It's great to see you. It's good to see the Judge as well. I appreciate Katie Stine--is with us today.
    Senator Stine, thanks for coming.
        I want to thank the mayor--I want to thank Mayor Roettger, who is the mayor of Highland--the city of
    Highland Heights. Thanks for being here, Mr. Mayor. I want to thank all
    the local and State officials here. I want to thank Gary
    Toebben, who is the president of the Northern
    Kentucky Chamber. Thanks for having me here. I met Dr. Ed
    Hughes. If you don't know Ed, Ed is the
    founding president and CEO of Gateway Community and Technical College.
        I want to say a quick word about community colleges. They're a
    really important part of making sure the United States is able to
    compete. People around here, if you've got a growing economy and are
    looking for labor, you need to support your community colleges. They're
    one of the really important institutions of the United States. And so
    for the community college students who are here, welcome; thanks for
    coming. Appreciate you taking advantage of the opportunities available
    to you.
        We're living in historic times. They are exciting times. If you're a
    student getting ready to graduate from NKU, you've got a job available
    for you that's paying better than a lot of other college graduates have
    ever been able to get. This is a good time to be getting out of college.
        On the other hand, these are difficult times in some ways, when you
    think about it. I mean, we're at war. And war is unsettling to people.
    War puts a strain on the

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    United States of America. War causes people to think about the future in
    different ways.
        These are times of globalization. In other words, we're all
    connected now. Competition is coming at the United States from different
    places around the world. These are times of change. Technology changes
    so rapidly that it can create a sense of concern amongst our citizens.
        I don't know if you know this or not, but by the time somebody gets
    30 in this job market, people have changed jobs several times. That
    stands in stark contrast to the days when previous generations would go
    to work and stay at the job all their life. Pension funds are different
    now. We've got 401(k), defined contribution plans as opposed to defined
    benefit plans. These are changing times. And the fundamental question
    facing any nation, but particularly ours, is how do we adjust to those
    times? What do we do about it?
        The temptation during changing times and unsettling times, for some,
    is to retreat and say, you know, it's really not worth it. We've been
    through this period in our Nation's history, a time when people would
    look abroad or look afar and say, ``Well, these just seem such difficult
    problems that it's probably best that we don't take them on,'' or that,
    ``Competition in the economic sphere is such that the best way to deal
    with that kind of competition is just to wall ourselves off.''
        Those two tendencies, which have happened in our Nation's history--
    tenants of thought--would be called isolationism and protectionism. And
    I'm here to talk today about why it is really important for us to reject
    those two notions--that the United States of America must not wall
    ourselves off from the world and must not forget our duty to help lead
    the world to be a better place.
        Now there's a practical reason why we shouldn't isolate ourselves,
    and that is, there's an enemy that still wants to hurt us. And it's
    important for you all to know that everyday that I wake up I think about
    the war on terror. I knew that after September the 11th--and many of the
    decisions I make are based upon what happened on that day, September the
    11, 2001. My job is to do everything I can to protect the American
    people. And I knew that after the attacks there would be a tendency by
    people to say, well, maybe there's not a war, maybe that's just an
    isolated incident. Part of my job, by the way, was to say to the
    American people, ``Go about your business; create jobs; go to school;
    raise your families--let us worry about it in Washington, DC.''
        But I think about this all the time. I know that in order for us to
    be able to defend ourselves, we have got to be active in the world.
    Another way to put it is, we will stay on the offense and bring the
    terrorists to justice before they hurt us again.
        What's unsettling about these times for some is that we face a
    determined enemy. Let me tell you what I think about the enemy. The
    enemy is--they're coldblooded killers, the best way to describe them.
    They will take innocent life to achieve a tactical and strategic
    objective. These are people that are bound by an ideology. See, they're
    driven by an ideological fervor. In other words, they're not just
    isolated angry people; they're people that have got a point of view.
        Perhaps the best way to describe the point of view is to remind
    people what life was like under the Taliban in Afghanistan. There's no
    freedom to dissent, no freedom to worship; if you're a woman, you were a
    second class citizen; if you were a young girl, you had no chance, very
    little chance to be educated. In other words, they had a view of the
    world which is 100 percent opposite of us. And that's the ideology of
    these people. And they believe it. They strongly believe that they
    should distort a great religion and convert it to meet their means. It's
    totalitarian in nature. It's something akin to dealing with fascism

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    and communism but with a different flavor to it.
        Now, I recognize some in our country don't believe that, and that's
    okay. The great thing about our country is, we all have different views.
    But I believe it. And I know that if we were ever to retreat and isolate
    and say it's just too difficult to get involved, that ideology would
    flourish. After all, they've told us what their ambitions are, through
    intercepted communications and the different ways of finding out
    information. They have made it clear in their communications with each
    other that democracies are soft, capitalism is a failed system, and that
    it's just a matter of time before the United States of America were to
    lose its nerve.
        That's what they believe. They believe if they can make life painful
    enough, that we will retreat from the battlefield, that we will give
    them safe haven--allow them to get safe haven. They want to reestablish
    roots in a country like they did in Afghanistan so they can help topple
    moderate governments in the Middle East as well as launch attacks
    against the United States of America. That's what they have said. As
    your Commander--as your President and as the Commander in Chief, it's
    probably pretty wise that I take the words of the enemy seriously, which
    I do.
        And so therefore, for those who think it's probably best to let the
    world kind of drift off without American leadership or American
    involvement, they really don't see the world the way--at least the way I
    see it. And I understand some would like to see the world the way they
    hope it would be. But you've got to have a President who sees the world
    the way it is. And the way it is, is a dangerous place that requires the
    United States of America to be on the offense. And so we're waging the
    global war on terror.
        And the global war on terror has a variety of fronts. The two most
    notable fronts, of course, are Afghanistan and Iraq. In Afghanistan, I
    said if you harbor a terrorist, you're as guilty as a terrorist. I know
    full well that when the President says something, he better mean it. I
    meant it. And when the Taliban didn't believe us, we liberated the
    country. And today, there's a new democracy in the world, and that's
    important, particularly for the students to understand, because
    eventually I'm going to tie in democracy and peace. But there is a new
    democracy, and we're helping that democracy survive and grow.
        Secondly, I said if you see a threat, you've got to take threats
    seriously. I saw a threat. Now, I don't want to rehash the history of
    the decisionmaking that went on in the runup to the war of Iraq. I would
    just remind people that people in both political parties and people all
    around the world saw a threat. And I feel strongly that the world is
    better off without Saddam Hussein in power.
        And no matter what your position was on the issue of war in Iraq--
    and I can understand why good people differ about my decision--but we've
    got to make sure we don't retreat from the world and allow the good work
    that has gone on to collapse so that the enemy is able to gain a safe
    haven from which to create havoc and launch attacks. And so therefore,
    we have developed a plan for victory. It's not a plan for retreat; it's
    a plan for victory.
        And the definition of victory is to support the Iraqis so they can
    sustain themselves, govern themselves, defend themselves, be an ally in
    the war on terror, and deny safe haven to Al Qaida. That's the goal.
        The work is difficult work. It's hard to help a society go from a
    tyranny to a democracy. You see, the people who lived under the thumb of
    Saddam Hussein were terrorized by him. He
    divided the society up. He pitted groups of people against each other.
    He was ruthless in his administration of his so-called justice, and as a
    result, there's a lot of scarred emotions and distrust.
        And yet something amazing happened in December of last year--
    admittedly it seems

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    like an eternity ago--but 12 million Iraqis defied car bombers, killers,
    and terrorists and declared in unity, ``We want to be free.'' It's an
    amazing moment in the history of freedom. They've said to their
    Government and said to the people, ``Look, we want to live in a free
    society. We want to be able to express ourselves. We want to be able to
    elect our officials.'' And so the political process is one that's now
    moving forward to honor that request, to honor the 12 million who voted.
        There's a government forming in Iraq. This is a new process for
    them. You might remember, we had a little trouble getting our own
    Constitution up and running; we weren't a perfect democracy in our
    beginnings either. But nevertheless, what particularly the students now
    are seeing is, as a result of active involvement--not only to defend
    ourselves but adherence to some basic beliefs--a new democracy in the
    heart of the Middle East is emerging.
        We're training these Iraqis so they can take the fight to the enemy.
    I have said clearly to the American people, as the Iraqi forces step up,
    we will step down. But it's really important for us to understand that
    if we leave too early, the new democracy will falter. It's in the
    Nation's interest that democracy prevail, because democracies help yield
    the peace.
        A nation that becomes isolationist will be one that doesn't
    understand that democracy can change the world, is one that says, well,
    let's just get out of there before we complete the mission; let's just
    not worry about what takes place in parts of the world other than,
    perhaps, our own neighborhood. But to me, that's a bad choice, because,
    you see, during a period of time when we thought everything was calm,
    there was resentment and bitterness growing, which enabled an enemy to
    recruit suiciders who were willing to launch an attack on our Nation,
    which has caused more people to lose their life than in Pearl Harbor.
        And so therefore, I really think it's important for the American
    Government to work with allies to stay on the leading edge of change, to
    not lose our nerve, and to remember the lessons of history.
        One of the interesting lessons of history is to look at Europe. We
    had World War I and World War II in a pretty quick period of time, and
    we lost a lot of troops there. And today, Europe is whole and at peace.
    So what happened? What caused the world to change? What caused the world
    to change was, Europe established democracies, and history has proven
    democracies don't war with each other.
        I love to tell the story about my relationship with Prime Minister
    Koizumi. You know, my dad was a young guy; right before he went to college, he
    joined up in the United States Navy just like a lot of others did--and
    I'm sure some of your relatives did the same thing--to fight the
    Japanese. Yet today, I sit down at the peace table with Koizumi. We talk
    about North Korea; we talk about Iraq; we talk about how allies can work
    to keep the peace.
        I find it really interesting that that's taking place. And what
    happened was, was that between the time that the United States fought
    the Japanese and the time old George W. sitting down there at the table
    with the Prime Minister, Harry Truman
    said, let's help the Japanese develop a Japanese-style democracy. See,
    it's really important for the students here to understand that liberty
    and freedom have got the--have proven the capacity to convert enemies
    into allies. And if you're interested in keeping the peace, it's
    important for the United States of America to lead.
        There's something universal about freedom. I believe in the
    universality of freedom. I believe everybody desires to be free. I don't
    believe freedom is only owned by America; I don't believe only
    Methodists can be free. I believe everybody desires to be free, and the
    United States of America must lead the world to be more free.

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        But our concern shouldn't just be in winning the war on terror and
    changing the conditions that enable folks to recruit--in other words,
    battling the ideology of hatred with the ideology of hope. An active
    nation is one that also works hard in places like the Sudan, where ours
    is the only nation in the world that has condemned what's going on in
    Darfur as genocide. The United States must lead to make sure--
    [applause]. A confident nation that does it's duty in the international
    community is one that does what we're doing now in Darfur. We provide
    over 85 percent of the food aid to help the refugees in this area. We're
    taking the lead in the United Nations to call the world to account.
        I believe to whom much is given, much is required. And therefore,
    it's important for the United States to continue to lead in the fight
    against HIV/AIDS in places like the continent of Africa. I believe that
    when we see starvation, this great Nation of ours should lead the world
    to help feed the hungry. I believe when we see devastation, the United
    States must continue to be willing to use assets to help people such as
    those whose lives were turned upside down by the tsunamis or the
    earthquakes in Pakistan. You see, a confident nation--a nation confident
    in its ideals and confident in its capacity must continue to lead and
    not isolate ourselves from the world.
        We've got a good economy right now. And that's good news.
    Unemployment rate is 4.7 percent nationwide. We've got--productivity is
    up; homeownership is up; after-tax--real after-tax income is up by over
    8 percent since 2001. Things are rocking along. The entrepreneurial
    spirit is strong. And yet when you think about it--when some think about
    it, they look at our economic future, and they're very worried. They're
    troubled. See, they're troubled by competition from places like China
    and India. And I can understand that. These are vast labor markets that
    are just beginning to grow.
        And the response, in some instances, is to say, ``Let's just don't--
    let's don't take them on; let us kind of pull back and wall ourselves
    off through protectionist policy.'' For those of you who've studied
    history, you might remember, we've had this kind of--we've had these
    decisions before in our Nation's history.
        How about the 1920s? You might remember the 1920s, at least through
    your history books, at least--and that is, is that we were an
    isolationist nation. We said, ``Let them figure it out in Europe; we'll
    let them work out their differences over there. We don't need to be
    involved.'' And we had high protective tariffs--and, by the way, really
    high taxes. And as a result, there's a worldwide depression. I'm not
    saying all of it was caused by those tendencies; I'm saying some of it
    was caused by those tendencies. So we've been through a period of time
    where we said let's--we lose our confidence; let's not be bold in our
    willingness to do the right things at home so that we can compete.
        My attitude is this about America: We shouldn't fear the future, I
    told you. And I want to talk to you about some ways that we can shape
    the future in order to make sure America remains the leader. I'm not
    only talking about the leader for peace, but I'm also talking about the
    economic leader of the world. It's in our interests that that be the
    case. When our Nation leads and remains the most productive place in the
    world, it means a higher standard of living for our people. It means
    better wages, better quality of life. It means you're more likely to
    realize your dream. If we wall ourselves off and stagnate as an economy,
    it's going to be harder for this great American Dream to continue to
    renew itself.
        And so here are some ideas for you as to how to make sure we
    continue to shape the future. One is to keep taxes low. The reason why
    it's important to keep taxes low is because in a global economy, capital
    will tend to flow where taxes are low. And the

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    other reason why is, is that you want money in the hands of the
    entrepreneurs.
        You might remember, we've been through a lot in the last 5 years:
    recession; stock market collapse; corporate scandals; attacks on the
    country; natural disasters; high energy prices. Yet, we're growing;
    we're strong. And one of the reasons why is, is because we let the
    people keep more of their own money. See, the theory is, is that when
    somebody has more of their own money to spend, save, or invest, the
    economy grows. And so if we're going to be competitive, we've got to
    make sure that we keep money in the people's pockets. That's how the
    entrepreneurial spirit remains strong.
        It's really important for our citizens to remember that 70 percent
    of new jobs in America are created by small-business owners. And the
    more money they have in their coffers, the more likely it is they're
    going to create jobs for the American people.
        Secondly, we want this always to be the best place for
    entrepreneurship. We want people in our country saying, you know, ``If
    I've got a good idea and willing to work hard, I'm going to take a risk
    because I want to own my own business.'' There's nothing better than
    meeting somebody who says, you know, ``I started my business recently,
    Mr. President, and I'm doing just fine--and by the way, thanks for the
    tax relief so I can keep some more money to expand.''
        You'll hear, in Washington, people saying, ``Well, we've got to
    raise the taxes in order to balance the budget.'' That's not the way
    Washington works. If we were to raise your taxes, Washington would
    figure out new ways to spend your money. And it might sound good; the
    titles of the programs will sound just fine, but we've got to make sure
    we set priorities with your money. My number-one priority is this: So
    long as we've got a troop in harm's way, a man or woman in uniform who's
    risking their lives for the security of America, they're going to get
    whatever it takes to do their job. [Applause] Thank you all.
        But we can cut this deficit in half if we're wise about how we spend
    your money, by setting priorities. And we will. The interesting thing
    about progrowth economic policies, coupled with fiscal sanity in
    Washington, is that when the economy grows, it creates more revenues for
    the Treasury. Last year, we've got about $100 billion more revenues to
    our Treasury than anticipated. And this year, there's 11 percent ahead
    of where we were last year. And so if you hold your spending down by
    setting priorities and grow your economy, the deficit shrinks. And
    that's one way to control your budget.
        But the real budget problems we face beyond the current account is--
    of the budget--is the unfunded liabilities inherent in Social Security
    and Medicare. If this Nation wants to be competitive, we have got to
    make sure that we reform Medicare and Social Security. And here's the
    problem, and this is--I'm addressing this particularly for the ones
    coming up, the people getting ready to get in the workplace, because the
    truth of the matter is, Social Security is fine for people who are
    eligible today. And Social Security is in pretty good shape for baby
    boomers. As a matter of fact, we're the problem. [Laughter] We're
    getting ready to retire--just so happens I turn 62 in 2008, which is a
    convenient age. [Laughter]
        But there's a lot of us, see, and we're living longer than anybody
    anticipated. I'm riding that mountain bike because I'm trying to retard
    the aging process. [Laughter] But a lot of my--baby boomers are more
    conscious of their health. In other words, we're mindful that if you
    smoke, it's going to shorten your lifetime, or if you're drinking too
    much, it will affect you. And so there's been a--there's a health
    consciousness among my generation. There's a lot of us, and there's
    fewer people paying into

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    the system, and we've been promised greater benefits, which means we're
    on a collision course for our younger workers. And you're paying into
    this system that's going to be broke. And it's going to affect our
    ability to compete. That's what I'm telling you.
        And so Congress has got to listen to this. Let's get rid of all the
    politics once and for all up there and come together and put a
    bipartisan solution to Social Security and Medicare so that we can say
    to a young generation of Americans, ``We did our duty.'' And by doing
    our duty, by solving a problem that, admittedly, is down the road--but
    the longer we wait, the more acute the problem is going to be. Now is
    the time to fix it to make sure the United States of America remains the
    economic leader of the world. [Applause] Thank you all.
        I was just getting warmed up, and we're running out of oxygen in
    here. [Laughter]
        Trade is an interesting issue. One way to determine whether the
    Nation has lost its confidence is whether or not the Nation is willing
    to trade, be a free trading nation. And I can understand people's
    concerns about imports coming in from China and imports coming in from
    India. But I don't think we ought to allow those concerns to close down
    markets. As a matter of fact, I feel very strongly that the United
    States of America must do the right things internally and also open up
    markets so that we can keep competition in a global way.
        Here's the thing: My job is to make sure that we're treated fairly,
    that with opening markets--our own markets and getting other people to
    open their markets, that they treat us the way we treat them, because I
    strongly believe, one, trade is good for the world; two, it's a good way
    to alleviate poverty; three, it's important for creating jobs. Northern
    Kentucky, by the way, benefits from trade. One reason your job base is
    strong is because we're selling goods made here, elsewhere.
        The way I like to tell the American people--it's like China, for
    example. I was with President Hu. I said, ``Mr.
    President, it's fine for you, selling your goods here, but you've got to
    understand something about the American people: We just want to be
    treated fairly. So intellectual property rights, if you have a product
    here, we're not going to steal the patent--steal the intellectual
    property rights from you; don't steal it from us. If you--treat our
    manufacturers well; make sure your currency moves like our currency
    moves. That's all we want, Mr. President.'' The American people are
    fair. And the reason I'm confident in talking about why opening markets
    will be good for us, because I firmly believe we can compete with
    anybody, anytime, anywhere. And America must never, never lose that
    thought.
        So I know I shocked some people the other day when I got up and
    said, we're addicted to oil and that's a problem. But if we're really
    interested in being a competitive nation, we're going to have to do
    something about our reliance upon oil--now. So I'm working with Congress
    to promote what's called this Advanced Energy Initiative. And we're
    working on a variety of fronts. First, one thing we can do is make sure
    we promote clean coal technology. We've got a lot of coal--like, 250-
    some odd years worth of coal. We also care about our environment here in
    America. And we've also got the capacity to make sure that we develop
    the technologies that will enable us to use this coal. One way to get
    off oil and hydrocarbons is to use our coal in an environmentally
    friendly way, and I believe we'll be able to do so. We're spending a lot
    of money in Washington, by the way, on clean coal technology, and I
    think it's a proper use of taxpayers' money to do so.
        We're also investigating coal-to-liquid technology. In other words,
    we'll be able to use our coals to be able to provide liquids that we'll
    be able to use, as well as an energy source. But there's some other

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    interesting ideas going on. For example, I like the idea of our farmers
    being able to provide energy to power automobiles; it's called ethanol.
        But there will be some technological breakthroughs that allow us to
    use switchgrass. Somebody said, what is it? Well, it's grass that looks
    like a switch--[laughter]--that grows in dry climate. See, that makes
    sense, doesn't it, to be able to investigate whether or not we can
    convert that kind of material to energy? I think we'll be able to. Wood
    chips--now all of this sounds fanciful to some, which the Internet
    seemed fanciful at one point in time.
        And so we're spending money at the Federal level to investigate ways
    to be able to diversify. One of the interesting technologies that's now
    on the market is hybrid automobiles. But there's new battery technology
    being developed, and I'm told we're close to breakthroughs in this
    technology that will enable you to drive your first 40 miles on
    electricity alone. That's a pretty good deal, if we're able to achieve
    that kind of breakthrough. Particularly in big cities--a lot of people
    in big cities aren't going to drive 40 miles a day. They may not drive
    40 miles a week. But nevertheless, when you start taking that amount of
    demand off the market, for gasoline, it starts to begin to affect our
    national and economic security.
        In terms of electricity, we have got to move forward with nuclear
    power. Nuclear power is clean--and we're spending money on solar energy
    and wind energy. There's not going to be a single breakthrough; there's
    going to be a variety of sources, of new renewable energy sources that
    are going to enable us to be able to say to the next generation coming,
    we're less reliant on oil. It's in our economic interests and it's in
    our national security interests that we spend money now to develop the
    technologies that will get us off oil so we can leave behind an America
    that's competitive, that will be able to compete in the global economy.
        I'm now getting to the reason I came here--[laughter]--and that is
    that this country of ours, in order to be competitive, must always be on
    the leading edge of technological change and, therefore, must be always
    the best at research and development and, at the same time, must educate
    our children so they have the skills necessary to fill the jobs of the
    21st century.
        NKU has got some really innovative programs, kind of a seamless
    transition from high school to college. You've got math and science
    fairs. You're focusing a lot of your attention on making sure the skill
    sets that you teach your children are relevant, that will actually keep
    us competitive.
        Let me talk about research and development right quick. I believe
    there's a proper Federal role for basic research. The reason why is,
    there has been some Federal research projects which have made a
    difference in your lives. People here probably don't understand it, but
    at least understand this. But the Defense Department spent a lot of
    money on figuring out ways to communicate, out of which came the
    Internet. See, the Internet came to be as a result of Federal research
    dollars being spent. I like to mountain bike; I like to put a little
    country and western music on my iPod. [Laughter] The iPod came to be
    because of Federal research into microdrive storage and different
    technologies. And so therefore, in order to make sure America is
    competitive and that we're the leader of the world, I believe we ought
    to double the amount of money we spend in basic research at the Federal
    level.
        Secondly, what's interesting is, most research money is spent by the
    private sector. One of the great things about our system is it
    encourages people to--encourages corporations to invest so they can
    remain productive and be able to compete. One of the tools that we've
    used to encourage people to invest in research and development is the
    research and development tax credit.

    [[Page 968]]

    Curiously enough, it expires on a regular basis, which then causes
    uncertainty. If you're not sure the tax thing is going to be around, you
    may not want to invest. And so in order to make sure we continue to get
    the $200 billion a year we get from private sector into research and
    development, we need to make the research and development tax credit
    permanent.
        Thirdly, if our children don't have the skills necessary to fill the
    jobs of the 21st century, the jobs are going somewhere else; make no
    mistake about that. In a global economy, whether we like it or not,
    whether we're protectionists or confident, the jobs will go somewhere
    else. And so therefore, it's really important that the United States of
    America focus hard on the math and sciences. And by the way, we made a
    pretty good start with No Child Left Behind. And the reason why is, is
    that we're beginning to change the attitudes towards one of the real
    keys to success, and that is measurement.
        So I go to Washington, and I said, we'll be strongly committed to
    helping Title I students in particular with additional money, but I want
    the States and the local governments to show us whether or not the kids
    are learning. I didn't think that was too much of a request to ask.
        We didn't say, ``Here, you do this curriculum.'' We didn't say that.
    We didn't say, ``You've got to hire so-and-so or run your schools this
    way,'' because I believe in local control in schools. But we did say,
    ``Why don't you show us--measure.'' Let's stop guessing in America. Let
    us know for certain whether or not our children are going to be able to
    compete in the 21st century, starting with making sure every child
    learns to read. I don't think that's too much to ask, to make sure every
    child can read. If you can't read, you're not going to be a scientist or
    an engineer. You won't be able to fill the jobs of the 21st century.
        And so we started No Child Left Behind, and I want to appreciate the
    State of Kentucky for implementing the No Child Left Behind standards.
    It says we're going to raise standards--we're not going to tell you how
    to run your schools, but you need to measure. And by the way, if you
    find that a child can't read at grade level, here's a little extra money
    to help. In other words, we use the accountability system to be able to
    diagnose problems early and solve them before it's too late.
        In the old days--you might remember those days--we just kind of
    shuffled the kids through. And guess who got shuffled through? Inner-
    city African American kids, just move them through; it's so much more
    easy; just let them go. Kids whose parents don't speak English as a
    first language, they're too tough; just move them through. But that's
    not fair, and it's not right, and it's going to mean America will not be
    able to compete. And so we shut that practice down, and America is
    better for it.
        And so let me read you some interesting statistics--I'm able to read
    these to you because we measure. [Laughter] In 2005, America's fourth
    graders posted the best scores in reading and math in the history of the
    test. In other words, there's a norming test to determine whether or not
    the local accountability system--standards or systems are making a
    difference. African American fourth graders set records in reading and
    math. The Nation's Report Card showed eighth graders earned the best
    math scores recorded ever. Eighth grade Hispanic and African American
    students achieved the highest math scores ever.
        In other words, we've had an achievement gap in our country, and
    because we focus on each child and measure and insist that curriculum
    work, that achievement gap is growing--in order for this country--is
    shrinking. In order for this country to be competitive, all our students
    have got to get a good education. Everybody must be drilled in the
    basics. And now it's time to add. It's time to add math--focus on math
    and science. This college is going to--this university will benefit by
    making

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    sure that we've got high school students--junior high and high school
    students coming out of our--these institutions with the capacity to be
    interested in math and the skill set necessary to be able to take on
    some of the really interesting courses being taught here.
        And so why am I concerned about math? Well, we also know that by the
    time a student gets to high school, most of our students have fallen
    behind the rest of the developed world in math and science. You're able
    to measure. And that's not good enough for America. It's a warning
    signal, it seems like to me. If we're going to be a confident nation
    that doesn't wall ourselves off from the world, that competes and leads,
    we better make sure the next generation of children coming up not only
    are good readers but have got the ability to be skillful in math and
    science and engineering and physics and chemistry.
        And here's some ideas for us. First, I believe we ought to expand
    Advanced Placement programs around the country by providing money to
    train 70,000 high school teachers over the next 5 years to teach AP.
    Now, AP is an interesting program. Some of you probably know what it is.
    Here's the way I like to describe it: We're going to set high standards,
    and we're going to expect the best. And we're going to have teachers
    with that skill set necessary to convince students it's in their
    interest to learn AP. I went to an interesting AP school in Dallas,
    Texas, and they said it's graduating more AP students than any other
    high school in the country. Of course, you know how Texans are. Anyway--
    [laughter].
        But I walked into a classroom and had a young Latino--guy had a pony
    tail on, and he said, ``I want to be an astrophysicist, Mr. President.''
    And it was child after child--because they had an AP teacher raise those
    standards--say, I want to be a chemist; I want to be a physicist. We can
    do this in America. And one way to start is to make sure that AP classes
    flourish.
        Secondly, we're going to have a program that has 30,000, what we
    call, adjunct professors. These will be math and science professionals
    who will go into classrooms--one way to say this strategy is to say,
    ``Look, it's okay to be a math--and scientist; it's cool.'' But we
    need--I went to a classroom outside of Maryland, and there was a NASA
    engineer in there, and he could make science
    really seem interesting to these kids.
        Thirdly, we've got to make sure that we have the same rigorous
    examination of our math curriculum that we did with our reading
    curriculum. See, we went through a whole process of helping local
    districts determine whether or not the reading curriculum they were
    using was going to work. By the way, one way to determine is you
    measure.
        And so Secretary of Education Spellings has established what's called the national math--I
    signed, through Executive order, her recommendation--the national math
    panel. They met this week earlier. They're 17 expert panelists and 6
    members from other Government agencies. They're going to help design
    standards and accountability, as well as teaching methods. In other
    words, we're going to get focused on this, and we expect our States to
    join us and to focus on math and science. It is really important that we
    start laying that skill set now for the next generation of Americans if
    we're going to be confident.
        And by the way, in the eighth grade, if you start falling behind in
    math, you ought to get that supplemental service money, that extra help,
    just like we provide for third and fourth graders in reading when they
    begin to fall behind.
        Obviously, some are saying, ``Well, that sounds great, Mr.
    President, how about helping those of us who can't go to college, go to
    college.'' I'm a big believer in Pell grants. Pell grants are a very
    important part of making sure American education lays that foundation
    for excellence. We've increased the number of Pell grants since

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    I've been your President by a million. We've got 5 million kids now
    getting Pell grants, and the maximum grant has gone from 3,750 to 4,050.
    If you qualify, you get 4,050. But I think we ought to provide
    additional incentives to the Pell grant program. We call them enhanced
    Pell grants--and we're working with Congress--they've actually just
    passed the two ideas that I think make sense.
        One is that if you're a graduate with a 3.0 and you've taken a
    rigorous high school curriculum--if you take a rigorous high school
    curriculum and you go to college and maintain a 3.0 in college for your
    first 2 years, your Pell grant increases 750 for the first year, 1,300
    for the second year. The purpose of this is to say to high schools, keep
    raising that standard. Keep providing rigorous courses in math and
    science, and for the students that qualify, there will be a reward. And
    by the way, once you get into college, there will be an additional
    $4,000, on top of the Pell grant, for third and fourth year students who
    have maintained 3.0 and who major in math, science, or a critical
    foreign language.
        And so here are some incentives to build on this strategy to make
    sure America competes. So before you all pass out, I want to say one
    other thing--[laughter]. Laura said, whatever you
    do, don't go over to Kentucky and get a little long-winded. I obviously
    didn't listen. [Laughter]
        I feel passionately about our country's future. I am optimistic
    about America. I've got a unique perspective. I am able to see America
    in a different way from you all. I am able to see these unbelievable
    acts of kindness that take place on a regular basis here in our country,
    people willing to say, I want to serve my country by loving a neighbor.
    I also understand that our value system, our belief in human liberty is
    just a powerful motivator for good. And I know the entrepreneurial
    spirit is a way to make sure people are able to realize dreams.
        And so what I really want to share with you is I understand that
    there's some uncertainty and worries because of circumstances today, but
    you've got a President whose--I've got no doubt in my mind that the
    world is headed toward peace and that this country is going to remain
    the economic leader of the world. We just can't lose our confidence.
    America shouldn't fear the future, because we're going to shape the
    future.
        Thanks for letting me come by.

    Note: The President spoke at 3:30 p.m. at Northern Kentucky University.
    In his remarks, he referred to James C. Votruba, president, Northern
    Kentucky University; Kentucky State Senator Katie Kratz Stine; Mayor
    Charles W. Roettger III of Highland Heights, KY; Prime Minister
    Junichiro Koizumi of Japan; and President Hu Jintao of China.