    [Public Papers of the Presidents of the United States: George W. Bush (2006, Book II)]
    [August 18, 2006]
    [Pages 1524-1527]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Following a Meeting With Economic Advisers and an Exchange With
    Reporters at Camp David, Maryland
    August 18, 2006

        The President. Thank you all for coming. We've just finished a
    really informative meeting with my economic team. I want to thank them
    for their service to the country. I'm really proud to be serving the
    American people alongside them. I've put together a really good team of
    people; smart, capable, decent, honorable people who are serving America
    with great distinction.
        We discussed the state of the economy. We discussed where our
    economy is headed, and we discussed the steps that we're going to take
    to ensure that our economy continues to lead the world. The foundation
    of our economy is solid, and it's strong. Because of the tax cuts we
    passed, American workers and families and small businesses are keeping
    more of the money they earn. And they're using that money to drive this
    economy of ours forward.
        The economy grew at 4 percent annual rate during the first half of
    2006, and this means that our economy is maintaining solid growth and
    performing in line with expectations. Our solid economic growth is
    creating real benefits for American workers and families and
    entrepreneurs. Since August 2003, we've added more than 5.5 million new
    jobs. The unemployment rate is 4.8 percent. Productivity growth is
    strong. Behind the numbers are stories of hard-working Americans who are
    realizing their dreams. The entrepreneurial spirit in this country is
    strong, and that's good for America.
        You know, in Miami a couple of weeks ago, and I met a fellow named
    Nelson Gonzalez. Ten years ago, he and a
    friend started a computer business in a garage
    with $10,000. Their revenues are $192 million today. They employ about
    750 people around the world.
        I visited a fellow in Wisconsin named John West. He runs a manufacturing company. Over the past 2 years,
    John's factory has expanded from 65 employees to 90 employees. He told
    me he's receiving more orders than he can fill, and he's looking for
    more workers.
        The other day I went to York, Pennsylvania, to visit the Harley-
    Davidson plant. They're selling motorcycles all over the world. Harley
    has doubled its workforce in the past decade. In other words, things are
    good for American workers and good for

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    the entrepreneurs, and that's good for the country.
        The economic growth has had a positive impact on the budget, and
    that's good for the taxpayers. Last year, economic growth pushed up
    Federal tax revenues by 14.5 percent; it's the largest increase in 24
    years. This year tax revenues are projected to increase by another 11.4
    percent, and at the same time, we are working with Congress to restrain
    Federal spending. We're meeting our priorities, and we're restraining
    Federal spending.
        We recently learned that this year's deficit is projected to be 30
    percent lower than we initially thought, and that means we're on track
    to cut the deficit in half by 2008, a full year ahead of the original
    goal.
        We've got to keep this economy growing through progrowth economic
    policies. Taxes need to be kept low. We're working with Congress to
    restrain spending. Congress needs to pass the line-item veto so we can
    work together to cut out wasteful and unnecessary spending. We're going
    to work to make sure health care is more affordable for our businesses
    and our families. We will continue to invest in new energy technologies
    so we can promote alternative sources of energy and be wise stewards
    with the environment. We'll continue to work to stop the spread of junk
    lawsuits, and we'll continue to open up markets for American products.
        We also discussed ways to keep this economy of ours competitive,
    flexible, and dynamic into the future. We discussed ways to make sure we
    improve education and job training. It's really important for our
    workers to have the skills necessary so we can remain a competitive
    country. It's really important for Congress to fully fund the American
    Competitiveness Initiative to make sure this country remains the
    economic leader we want it to be.
        And we also talked about the need for this administration to work
    with Congress to really deal with the biggest challenge facing our
    budget and a huge challenge for our economic growth in the future, and
    that is the unsustainable growth of spending on programs like Social
    Security, Medicare, and Medicaid. These programs need to be reformed so
    that they will be available for our children and our grandchildren. It's
    a difficult issue, I know, for Members of Congress. The people here with
    me clearly see the problem, and we look forward to working with both
    Republicans and Democrats to do our duty, and that's to solve the
    problem.
        All of us here are confident about the future of this country. Over
    the past 5 years, our economy has faced unprecedented challenges, from
    recession to corporate scandal to terrorist attack to natural disasters.
    And through it all, our free enterprise system has proved to be the most
    resilient and responsive in the world.
        With hard work and wise policies, we'll meet every challenge that
    comes. And in so doing, we'll help more Americans realize their dreams
    and continue to make this country a grand--a land of great
    opportunities.
        And now I'll answer a couple of questions. Deb [Deb Riechmann,
    Associated Press], you got any?

    Situation in the Middle East/United Nations Security Council Resolution
    1701

        Q. Mr. President, on Lebanon, how can you say that Hizballah has
    suffered such a bad defeat when it's rebuilding--helping rebuild in
    southern Lebanon and it remains intact? And secondly, are you
    disappointed at all about France's decision to scale back its support of
    the international force?
        The President. I think when people take a sober look at what took
    place in Lebanon, they'll realize that the destruction was caused by
    Hizballah. Hizballah caused the crisis. It was Hizballah's kidnaping of
    Israeli soldiers as well as Hizballah's launching rockets that caused
    Israel to defend herself from an action that the Lebanese Government
    didn't support.

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        Hizballah acted as a government within a government, and the world
    came to that recognition very quickly. I remember--I don't know if you
    traveled to St. Petersburg with us, but one of the first things that
    happened in the G-8 after this crisis occurred was that we all sat
    around the table and came to the conclusion very quickly, this type of
    behavior from a state within a state is intolerable for peace.
        The first reaction, of course, of Hizballah and its supporters is,
    declare victory. I guess I would have done the same thing if I were
    them. But sometimes it takes people a while to come to the sober
    realization of what forces create stability and which don't. Hizballah
    is a force of instability. I appreciate the Siniora's Government's efforts to make it clear to the Lebanese
    people that they are the legitimate Government of Lebanon and they will
    work to rebuild that country. Prime Minister Siniora gave a very, I
    thought, a very interesting speech the other night, and a powerful
    speech, about how it's now time for the duly elected Government of
    Lebanon to do its duty and help rebuild. And they're getting help from
    around the international community to do so.
        Other part of your--oh, the peacekeepers. Diplomacy takes a while,
    as you know. You watched the unfolding of the U.N. resolution necessary
    to get a cease-fire in the first place--it took a while. And we will
    continue to work with friends and allies to make it clear to them, now
    is the time to address the root causes of the problem, and that's being
    Hizballah's state within a state, particularly in southern Lebanon. And
    we'll work with nations to step up to the plate and do what they voted
    to do at the United Nations, and that is to provide robust international
    forces to help the Lebanese Army retake the south.
        Hizballah, they're pretty comfortable there in south Lebanon.
    They're now going to find themselves not only that which caused the
    destruction, but they'll find themselves with now a Lebanese army, with
    U.N. help, making it clear they won't have the safe haven necessary--
    that they think is necessary to launch attacks.
        The issue is broader than just Hizballah. The issue is also Syria
    and Iran, two nations that supported Hizballah in its attempts to create
    enough havoc so that, I guess, people feel like they could take
    political advantage of the situation; we just can't let them do it.

    French Role in Lebanon

        Q. But what about France, though?
        The President. France has said they'd send some troops. We hope they
    send more. And there's been different signals coming out of France.
    Yesterday they had a statement. Today they had a statement. We're
    working with France. France is a friend. France is an ally. France has
    got a great stake in the future of Lebanon.
        President Chirac has made it very clear
    that he believes that democracy in Lebanon is very important--been
    supportive of the Siniora Government like we
    have. France and the United States cosponsored 1559. That's the U.N.
    resolution that was the beginning of the end of Syria's involvement in--
    or Syria's occupation in Lebanon. So we have common interests with
    France, and they are a very important part of the international scene
    and will be a very important player in Lebanon.
        Toby [Tabassum Zakaria, Reuters].

    North Korea

        Q. Mr. President, are there indications that North Korea is
    preparing to conduct its first nuclear bomb test? And if that were to
    occur, how would the United States respond?
        The President. Well, it's a hypothetical question, and you're asking
    me to divulge any intelligence information I have, and I'm not going to
    do that, as you know. I'm not going to break tradition.
        If North Korea were to conduct a test, it's just a constant reminder
    for people in the neighborhood, in particular, that North

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    Korea poses a threat. And we expect there to be--we expect our friends
    and those sitting around the table with us to act in such a manner as to
    help rid the world of the threat.

    War on Terror/Terrorist Surveillance Program

        Q. Mr. President, the Federal ruling yesterday that declared your
    terrorist surveillance program unconstitutional--the judge wrote that it
    was never the intent of the Framers to give the President such
    unfettered control. How do you respond, sir, to opponents who say that
    this ruling is really the first nail in the coffin of your
    administration's legal strategy in the war on terror?
        The President. I would say that those who herald this decision
    simply do not understand the nature of the world in which we live. You
    might remember, last week, working with the--with people in Great
    Britain, we disrupted a plot. People were trying to come and kill
    people. This country of ours is at war, and we must give those whose
    responsibility it is to protect the United States the tools necessary to
    protect this country in a time of war.
        The judge's decision was a--I strongly
    disagree with that decision, strongly disagree. That's why I instructed
    the Justice Department to appeal immediately, and I believe our appeals
    will be upheld.
        I made my position clear about this war on terror. And by the way,
    the enemy made their position clear yet again when we were able to stop
    them. And I--the American people expect us to protect them, and
    therefore, I put this program in place. We believe--strongly believe
    it's constitutional.
        And if Al Qaida is calling in to the United States, we want to know
    why they're calling. And so I made my position clear. It would be
    interesting to see what other policymakers--how other policymakers
    react.
        Listen, thank you all very much.

    Note: The President spoke at 11:33 a.m. In his remarks, he referred to
    Ehud Goldwasser and Eldad Regev, Israeli soldiers captured and held
    captive by militants in Lebanon since July 12, 2006; Prime Minister Fuad
    Siniora of Lebanon; President Jacques Chirac of France; and U.S.
    District Court Judge for the Eastern District of Michigan Anna Diggs
    Taylor.