    [Public Papers of the Presidents of the United States: George W. Bush (2007, Book I)]
    [February 3, 2007]
    [Pages 94-96]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    February 3, 2007

        Good morning. This week was filled with more good news about
    America's economy. We learned that our economy grew at an annual rate of
    3.5 percent in the fourth quarter of last year. Overall, our economy
    grew 3.4 percent in 2006, up from 3.1 percent in 2005. The Dow Jones
    reached an alltime high this week for the 27th time in the past 4
    months. And we learned that America created 111,000 new jobs in January,
    which means we have added over 7.4 million jobs in the past 3\1/2\
    years.
        This good news is a result of the hard work of the American people
    and progrowth economic policies like tax relief. By cutting taxes, we
    put more money into the hands of American families and small businesses.
    You have used this money to produce strong and lasting economic growth.
    And now Congress needs to make this tax relief permanent, so we can keep
    America's economy growing.
        Progrowth economic policies also play a vital role in our plan to
    balance the Federal budget. Our growing economy has produced record
    levels of tax revenue. This increase in tax revenue has helped us cut
    the deficit in half 3 years ahead of schedule. And on Monday, we will
    take the next step when I submit to Congress a budget that will
    eliminate the deficit by 2012.

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        To meet this goal, we must set priorities for Government spending.
    My top priority will continue to be keeping America safe and winning the
    war against extremists who want to destroy our way of life. The budget I
    will submit to Congress includes the cost of funding the global war on
    terror, including in Iraq and Afghanistan. Our troops deserve our full
    support, and this budget gives them the resources they need.
        Cutting the deficit during a time of war requires us to restrain
    spending in other areas. One good way to help eliminate wasteful
    spending is to pass earmark reform. Earmarks are special interest items
    that are often slipped into bills at the last hour. Even worse, more
    than 90 percent of earmarks never make it to the floor of the House and
    Senate for a vote. They are dropped into committee reports that are not
    even part of the bill that arrives on my desk, yet they are treated as
    if they have the force of law. The time has come to end this practice.
    So I will work with Democrats and Republicans in Congress to continue
    reforming the budget process, expose every earmark to the light of day
    and a vote in Congress, and cut the number and cost of earmarks at least
    in half.
        Another important tool for eliminating wasteful spending is the
    line-item veto. Today, when lawmakers tack porkbarrel spending onto
    large bills, the President is left with an all-or-nothing choice: either
    sign the bill with the wasteful spending or veto the whole bill and deny
    funding for vital programs. With the line-item veto, the President can
    sign the funding for necessary programs into law and send the
    unnecessary provisions back to Congress for a prompt up-or-down vote on
    whether to uphold the spending. Forty-three Governors have a line-item
    veto. I urge Congress to pass the line-item veto, so we can work
    together to control Federal spending.
        Controlling spending also requires us to address the unsustainable
    growth of entitlement programs such as Social Security, Medicare, and
    Medicaid. Spending for these programs is growing faster than inflation,
    faster than our economy, and faster than our ability to pay for it.
    Unless we act, we will saddle our children and grandchildren with tens
    of trillions of dollars of unfunded obligations. They will face three
    bad options: huge tax increases, huge budget deficits, or huge and
    immediate cuts in benefits. Republicans and Democrats need to come
    together to confront the challenge of entitlement spending and ensure
    that these vital programs are there when our children and grandchildren
    need them.
        I look forward to working with Members of Congress from both sides
    of the aisle to address these challenges. Together, we can pass a budget
    that keeps our economy strong, keeps America safe, and makes deficit
    spending a thing of the past.
        Thank you for listening.

    Note: The address was recorded at 7:35 a.m. on February 2 in the Cabinet
    Room at the White House for broadcast at 10:06 a.m. on February 3. The
    transcript was made available by the Office of the Press Secretary on
    February 2, but was embargoed for release until the broadcast. The
    Office of the Press Secretary also released a Spanish language
    transcript of this address.

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