    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book I)]
    [May 2, 2008]
    [Pages 619-633]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on the National Economy and a Question-and-Answer Session in
    Maryland Heights, Missouri
    May 2, 2008

        The President. Thank you very much. Please be seated. Thank you.
    What he said was, ``It's about time you
    made it.'' [Laughter] Dave was right: I was scheduled here at World
    Wide, and then the fires hit in California, and I went out there to help
    the people try to recover from the natural disaster. And I told him at
    the Christmas party there at the White House, I said, ``I'm coming
    back.'' I've always felt like if you're a politician and you make a
    promise, you better keep it. [Laughter] And so I have.
        And the reason why I wanted to come then and wanted to come back is,
    I think it's very important for the President to recognize success and
    for the President to herald entrepreneurship. And so in meeting with
    Dave and Jim
    and the employees of this company, really what I'm saying is that the
    entrepreneurial spirit is alive and well here at World Wide.
        You heard the man say that over the
    past 7 years, revenues have tripled, and they've expanded the job base
    by 500 people. And what's relevant for America is that it's the small-
    business sector--I don't know if you call yourself small anymore; you're
    probably a medium-sized business sector--[laughter]--that creates jobs.
    Seventy percent of new jobs in America are created by small and medium-
    sized businesses. And if you're worried about the economy like I'm
    worried about the economy, then it makes sense to put policy in place
    that encourages investment and growth with the job creators.
        And that's what I want to spend a little time talking to you about.
    But before I do so, I do want to thank the World Wide Technology
    employees. The truth of the matter is, this company is doing well cause
    you've got imaginative leadership, but you've also got great employees
    who are well motivated, taken care of, inspired. And it's been my honor
    to meet some of your employees, and I look forward to answering some of
    your questions here in a minute.

    [[Page 620]]

        I do want to thank the Governor of the
    State of Missouri for joining us. Governor Blunt, I'm proud you're here.
    Thank you for taking time out of your schedule. The Governor and I
    discussed the recent storms that have hit parts of Missouri. I assured
    him that we will stay in touch with his office and the emergency teams
    to make sure that if there needs to be a Federal response, we will be
    ready to give one. And obviously, for those who've lost their property
    today, we send our heartfelt condolences, and just want you to know that
    when natural disaster strikes, if the disaster is--merits it, there will
    be a ample and robust government response. So thanks for coming,
    Governor.
        I'm also proud to be here with the United States Senator, Kit
    Bond from Missouri. Needless to
    say, he used his time on Air Force One to make sure I understood the
    issues that were facing the State of Missouri. We spent a little time
    talking about the Missouri River. And Todd Akin
    is with us too. Congressman, I'm proud you're here. Thanks for coming.
        So we're getting economic news. There's a lot of data beginning to
    move. On Wednesday, the--they talked about the fact that the economy in
    the first quarter grew at 0.6 percent. That's the same as it grew in the
    fourth quarter of last year. That's not good enough for America. It's
    positive growth, but we can do better than that. Today there was another
    report out that showed that we lost 20,000 jobs last month, even though
    the unemployment rate dropped to 5 percent. In other words, the
    unemployment rate went down. And again, that's a sign that this economy
    is not as robust as any of us would like it.
        The good news is, is that we anticipated this. Last fall, we started
    to get indications that the economy was going to slow down. And so I--
    believe it or not, you can actually work with Congress sometimes on--
    with people on both sides of the aisle, which is what we did; these
    two Members were incredibly constructive--to pass a stimulus
    package, progrowth package.
        There's two aspects to that package I want to spend some time
    talking about. One of them is, is that you're going to get some money--
    turns out, it's your own money, but you're going to get it back.
    [Laughter] Six hundred dollars per person, $1,200 per couple, $300 per
    child; a family of four will be getting a $1,800 check. And the reason
    why--and by the way, it's going to affect 130 million families. And the
    reason why that is good policy, first of all, it's a temporary tax
    relief, recognizing that we're going to recover. And this is to help
    stimulate that recovery.
        Secondly, we wanted to make sure that people were encouraged to be
    consumers. We wanted there to be consumption in our society, and no
    better way to stimulate consumption than to let you have some of your
    own money back.
        Thirdly, it turns out that this money is going to be very helpful in
    helping people deal with high energy prices and food price. I'm going to
    spend a little time on energy here in a minute.
        And fourthly, it's big enough. In other words, we didn't want to
    make a political statement. We wanted to make a statement that will
    affect this economy. When you're affecting 130 million households, with
    over $150 billion of progrowth package, it's going to affect us
    positively. The experts say that beginning--toward the end of this
    quarter and the beginning of next quarter, we should see some positive
    signs as a result of the progrowth economic package.
        Now, some of you are saying, ``You think I'm ever going to see my
    money? We've heard `the check is in the mail' deal before.'' Well, it's
    coming. They started hitting last Monday. And Secretary of the Treasury
    Paulson is on top of this, and so
    you'll start seeing--if you're not--if you didn't get your money
    electronically, you're going to start seeing it come in the check form.

    [[Page 621]]

        And for those people in Missouri and around the Nation that do not
    file income taxes, you need to contact the local IRS office because
    you're likely to be eligible. And therefore, you got to make sure you
    sign up for the program in order to get the money. We want you to get
    the money. And so if you're involved in a church group that's worried
    about helping people, then make sure that parishioners, or make sure
    people in the community centers understand that if you're not a filer,
    you're still eligible to get a check.
        Now, the other aspect of the program was to stimulate investment for
    companies like World Wide. In other words, there's a--you can affect the
    Tax Code that provides incentives for the CEOs to say, ``I think we
    need--we ought to buy some equipment.'' And that's important for a
    couple of reasons: One, it makes you more productive; it makes you more
    competitive; it gives the employees a better chance to keep this company
    on a cutting edge.
        Secondly, somebody has to make that which you purchase. So if the
    Tax Code says it's in your interest to buy a piece of equipment or to
    buy software or to buy something to make this company a better company,
    then somewhere in the economy somebody is going to make it for you. And
    that also creates jobs. There's a ripple effect for using the Tax Code
    to stimulate investment.
        I was talking to Dave and
    Jim, and they were telling me that the
    incentives built in the progrowth plan for businesses will--have--are
    causing them to make new investments for you that they may have put off
    for later years. And the effects of this aspect of the progrowth plan
    are beginning to kick in as well; in other words, it's just starting. We
    passed the deal in February.
        The point I'm trying to tell you is, is that we worked well with
    Congress, and that the effects of a robust attempt to inject life hasn't
    really kicked in yet. And I'm--if you believe these economists, if they
    had three hands they'd say, ``On the one hand, on the other hand, and
    then on the third hand.'' [Laughter] But we've got some smart folks
    around that are analyzing what this means, and they feel confident about
    it.
        I've been--since I've been your President, I want to remind you, we
    have been through a recession, we have been through a terrorist attack,
    we have been at war, we have had corporate scandals, we have had major
    natural disasters, and yet this economy always recovers. We're a
    resilient economy because we've got good, capable, smart, hard-working
    people in America. And I know it's tough times, and I know you're having
    to pay more at the fuel pump than you want, but this economy is going to
    come on. I'm confident it will. And I want to thank the folks at World
    Wide for being a part of the leading edge of optimism here in America
    and the leading edge in making sure that people can find good, hard--
    paying jobs.
        Let me talk about energy very quickly. I'm fully aware that people
    are paying dearly at the pump. The other day at a press conference I
    said it's like a tax; it's a tax on you. The more that gasoline goes up,
    the more you're paying for the pump, the less money you have in your
    pocket to spend for your family. I will tell you, it's taken us awhile
    to get in this fix, and therefore, it's going to take us awhile to get
    out of the fix. But I want to remind you that an energy policy that
    basically prohibits America from finding oil in our own land is an
    energy policy that has led to high gasoline prices.
        When I first got to the Congress, I suggested that we have a
    comprehensive energy policy: one that recognizes the short-term effects
    of being reliant upon foreign oil; one that says we can use new
    technologies that will enable us to power our automobiles in different
    kinds of ways, using ethanol, for example, or battery technology; and
    one ultimately that will allow hydrogen to power the car.

    [[Page 622]]

        So we worked well with Congress on the interim step. As you know,
    ethanol is beginning to take off. And I'm convinced we're going to be
    able to make ethanol out of something other than corn here relatively
    quickly, like wood chips or grasses grown in the desert, which will be
    very exciting for the American people. Hydrogen, we're doing a lot of
    research on your behalf to have hydrogen-powered automobiles, which
    means you're running on hydrogen, the waste product of which is water.
        But in the meantime, in the short run, we didn't allow exploration
    for oil and gas in places like Alaska or Outer Continental Shelf. And
    guess what happened? World demand exceeded supply, and now you're paying
    for it. If Congress truly is interested in helping relieve the price of
    gasoline, they would do two things. They would recognize that we can
    drill for oil and gas in environmentally friendly ways here in the
    United States, where there is good reserves. And they would build
    refineries; they would encourage the construction of refineries. Do you
    know that there hasn't been a new refinery built in America since 1976?
    No wonder there's constricted supplies. If you want more of something,
    in this case, you got to build the additional manufacturing capability.
    And so our gasoline supplies are restricted as well.
        My attitude is, I understand the pain, but I also understand if we
    don't allow us to explore in environmentally friendly ways for oil and
    gas reserves in the United States of America, we'll remain dependent in
    the short term on foreign oil. And that's not good for us.
        I want to talk about housing very quickly. The key to the housing
    market is for the market to adjust--you know, built too many houses. We
    just got to work through the system. But there's things Government
    should and can do that is responsible--mainly, is to help creditworthy
    people stay in their home. That's the best thing we can do, is to help
    somebody who is capable of paying the mortgage, and if they just need a
    little help to be able to stay in the home, is to help provide that
    help.
        And here's the dilemma: If you got a--bought yourself a mortgage, in
    the old days when you--the originator of your mortgage, like a savings
    and loan, was somebody that you could go and talk in the office, say,
    ``Listen, man, I got a little bit of a problem. I'm in a bind. I need a
    little help on my interest payment. Or can you extend my note out a
    little bit?'' The originator of the mortgage, the guy who loaned you the
    money, still owned the paper. In this day and age, the person that
    loaned you the money for the mortgage may not own the mortgage anymore.
        And so we came together--the Treasury Department and groups that
    help people understand the mortgage market and refinancing experts--and
    put together what's called the HOPE NOW Alliance, which enables people
    to go and renegotiate loans. That's what we want to do. We want to help
    people stay in their homes. The market is going to correct. And what we
    want to do is to say, here's a way for you to stay in your home. They go
    to these lenders, big lenders and say, look, just help them out a little
    bit--delay interest or renegotiate the interest rates or extend the
    payments. We've helped about 1,400,000 homeowners stay in their homes.
        I know there's all kinds of proposals coming out of Congress. I
    mean, one such proposal was: Why don't you use your money to buy empty
    houses? Well, that doesn't help the person who's no longer in the house.
    That may help the lender; that may help the speculator. I'm interested
    in helping the homeowner. And so I--we'll work with Congress on
    legislation, but in my judgment, the best kind of legislation focuses on
    the person that actually owns the home.
        Now, look, some people were in there speculating. I don't think
    Government ought to help speculators. And Government--you know, the
    truth of the matter is, some folks probably shouldn't have tried

    [[Page 623]]

    to buy a home in the first place. But there's a lot of good,
    creditworthy people; they just need a little relief to stay in the home.
        The other thing I'm worried about is these reset mortgages. What I'm
    very concerned about is somebody went out and got them a mortgage, and
    the person that sold them the mortgage said, ``Boy, this is a good, low
    interest rate for you.'' They forgot to tell them the second half: that
    in a couple of years, it's going to bump up. These resets, as you know,
    you buy a low interest rate, and you get on the paper, and then by a
    couple of years later, all of a sudden, the interest rate booms up.
        And I'm--what I'm really concerned about is fraudulent tactics that
    didn't tell people that didn't really quite understand what was going
    on, the full story. And it's a Federal responsibility to make sure if
    that stuff goes on, people are held to account. We don't want people
    being cheated in America.
        The other thing that the Government can do is to reform what's
    called these GSEs. These are big Government-backed lending institutions.
    And we can reform them and get them focused on their core mission, which
    is to help the mortgage industry move forward, help people in homes.
        And finally, another interesting idea is to let the States' housing
    authorities issue tax-free bonds, which will then provide more money for
    refinancing.
        Finally, I do want to talk about trade. It's an interesting subject
    here in America. There's a lot of people who say trade is bad for our
    country. We shouldn't be a nation that opens up markets, that's what
    they're saying. Unless, of course, you're a Missouri farmer who's
    selling your product into foreign markets. Unless, of course, you're
    World Wide Technology, which is expanding in a robust way and is looking
    for new markets. By the way, it's in your interests if you're working
    for World Wide that markets be open. If you're good at what you're
    doing--and you are, obviously; otherwise, you wouldn't be successful--
    then trade policy ought to make it easier for you to enter foreign
    markets.
        All I want is for America to be treated the way we treat other
    nations. I think that's a reasonable thing to ask. And so let me talk
    about the Colombia free trade agreement. You might have been reading
    about that lately. It's one of these issues that has created
    consternation, at least in Washington. Most goods from Colombia come
    into the United States duty free. That's a result of longstanding
    congressional policy. Most of our goods and services are taxed going
    into Colombia. Most goods coming here come in duty free; most goods
    produced in the United States, or services like yours, pay a tariff.
    That means a tax. It's more expensive. It's harder to get into the
    market because what you charge is upped by tax.
        I think it makes sense to have Congress say, ``We want Colombia to
    treat us just the way we treat Colombia.'' It turns out, 9,000
    businesses export into Colombia in the United States, 8,000 of which are
    small and midsized businesses. Isn't that interesting? Many of the
    people benefiting, people working for companies that export into
    Colombia, work for small businesses and medium-sized businesses.
        But Congress doesn't see it that way right now. A lot of Members of
    Congress do, but they have absolutely shut down the vote on the Colombia
    free trade agreement. And I think it's irresponsible. If you're worried
    about the state of the economy, we ought to be opening up markets, not
    shutting down markets. We ought to be insisting we're treated fairly.
        And I'll tell you another problem. In not moving the Colombia free
    trade agreement, we are turning our back on a very strong ally of the
    United States of America. There's a President of Colombia named
    Uribe, and he's got a tough situation
    down there because he's dealing with what's called FARC, which is an
    extremist group

    [[Page 624]]

    that uses drug dollars to perpetuate violence and to move their products
    mainly to here. And here's a man who says, ``I'm going to deal with
    them, and I'm going to be tough with them.'' And then all of a sudden,
    the United States Congress turns its back on him. What kind of message
    is that?
        And so I'm--I strongly urge the Congress to understand that opening
    up markets is good for our economy. But I also strongly urge the
    Congress to understand, whether it would be Colombia or Panama or Korea,
    that we can't be turning our backs on our allies. This is good
    economics, and it's good national security.
        Those are some of the things on my mind. I've got a lot on my mind,
    by the way. [Laughter] Getting ready to march down the aisle and--
    [laughter].
        What I thought I'd do is answer some questions--any question, any
    topic. I've been around long enough to dodge them if I can't figure out
    the answer. [Laughter] I can ask myself one.
        Yes, sir, Mr. Chairman--oh, Mr. President. Fine. [Laughter]

    Health Care

        Q. So as Dave mentioned, we're doing very well as a company. Had a
    very good first quarter, best first quarter ever. Last year, last 3
    years, we've grown about 29 percent. One of the challenges that we have
    is managing the cost of health care. So with all of our employees here,
    can you give some of your thoughts in regards to how do we manage the
    continuing increased cost of health care?
        The President. Absolutely. In essence, there's two paths. One is for
    the Government to basically make most of the decisions. In other words,
    say, we're going to make sure you have health care, and we'll make sure
    it's available for you. And the problem with that system is, they
    basically make decisions for you.
        I happen to believe in private medicine. I think it is by far the
    best route to go because private medicine has made American health care
    the best in the world. I don't care what people tell you, America's
    health care is on the leading edge of change, and our American people
    get really good health care.
        Now the question is, who pays for it? The question is, is it
    available and is it affordable? And so the approach I've taken is to,
    one, remember the most important element in any system is the buyer, is
    the consumer, is the customer. That would be you, if you're a patient.
    And therefore, the policies that I've articulated have been all aimed at
    empowering you to have more decisionmaking in the health care system, so
    as to help deal with costs. If there's no decisionmaking in the system--
    in other words, there's no shopping, there's no consumerism--price goes
    up. It's just--it's an economic fact.
        And so I'm a strong believer in health savings accounts. I don't
    know if you have them here, but they are very empowering instruments.
    They let you make the decisions. They let you save when you don't spend
    money. They let you roll the money over, tax free. They let you pull it
    out, tax free, for medical care. It's your money, and it grows.
        The other thing is, is that it's portable. When you go from one job
    to the next, it follows you. So I think it's a very important aspect in
    a society in which, if you're under 30 years old, you're likely to have
    worked for seven or eight jobs. In other words, this is a very highly
    mobile workplace we have now.
        Secondly, if you're a small business, you ought to be allowed to
    pool risk, just like big companies can do. But you ought to be able to
    do it across jurisdictional boundaries. That's fancy words for, if
    you're a restaurant in Missouri, you ought to be able to put your
    employees in a risk pool with a restaurant in Texas. The larger the risk
    pool--in other words, the more people involved in the insurance--the
    less price goes up, the easier it is for somebody to find

    [[Page 625]]

    affordable product. But now it's against the law to do that. So small
    businesses ought to be allowed to pool risk. That's what big companies
    do. And I believe we ought to treat World Wide just like--give World
    Wide the same advantages in the marketplace that big companies get to
    do. Those are called association health plans.
        The Tax Code is discriminatory. It says that if you work for a
    company, you get tax benefits. If you don't, you don't get tax benefits.
    If you're a very small company trying to provide health care, the Tax
    Code discriminates against your employees. We ought to change the Tax
    Code. We ought to treat everybody the same in the Tax Code, all aiming
    to drive the establishment of an individual market so that people can
    better afford health care.
        Now, look, we spend a lot of money, by the way, on people who need
    help. My view of America is that we're rich enough to take care of
    people who can't help themselves, and we do. We got a robust Medicare
    system, which, by the way, my administration reformed for the first time
    since Lyndon Johnson--substantially reformed it since Lyndon Johnson was
    the President. And now you get a prescription drug benefit. So for all
    you guys my age, get yourself a prescription drug benefit pretty soon.
    [Laughter]
        We take care of the--through Medicaid--community health centers all
    throughout the country, and we're expanding them so that people can get
    primary care in a place other than an emergency room.
        Thirdly, there needs to be transparency in pricing. How many of you
    ever asked a doctor how much something costs? Have you ever shopped? And
    the answer is, no, you likely haven't. It's because the system--somebody
    else pays your bill in a third-party payer system. And so when somebody
    else pays the bill, there is no incentive to worry about cost. ``Hey,
    what do I care? Somebody else is paying the bill,'' you think, until
    your benefit structure starts to change because of inflation in the
    health care system.
        And so the whole purpose is to have transparency in the system. One
    of the things we're doing--you know, we're a big purchaser of health
    care, thanks to you--like, veterans, Medicare, Medicaid. And so we're
    now saying that if you participate with the Government, post price, let
    people see what the different prices are; post quality ratings. It's
    nice to know, if you're a consumer, isn't it? Whether or not you got a--
    whether or not somebody you're thinking about paying has got a good
    record.
        The other thing is, is that one of the real cost drivers--there are
    other cost drivers I want to discuss--so in other words, consumerism
    helps deal with cost; transparency helps deal with cost. This is a
    system in which there's been no cost consciousness whatsoever.
        Thirdly, there--information technology--the best way to describe
    this in health care is that people are still taking handwritten files,
    putting them under their arms, and delivering it from one office to the
    next. And that means oftentimes there's medical errors because the files
    get lost. Doctors can't write very clearly anyway. And so you--something
    gets illegible.
        Most industries--your industry is using high-tech to modernize.
    There's a lot of cost efficiencies that can be wrung out of the system
    by the advent of information technology. The dream is that someday
    you've got a medical record, your own medical record--by the way, tamper
    proof, in other words, protected--that you can use from one office to
    the next. It's a sign that efficiencies in the system have taken hold.
        I'll tell you an interesting story about that. The Veterans
    Administration in New Orleans was clobbered during Katrina. And so you
    had a lot of veterans leaving the New Orleans area--many of them going
    to Houston, for example--but they had electronic medical records. It
    turns out, the Veterans Affairs is generally ahead of the

    [[Page 626]]

    rest of the field. And all they did was take their chip and they plugged
    it into the computers in Houston, and the whole medical records was
    available. That's--not only it's good for the customer, the patient, but
    what I'm telling you is, it'll help wring out the inefficiencies in the
    system. Health care is an inefficient system right now.
        And finally--it's a long answer, sorry. [Laughter] I've thought a
    lot about it. [Laughter] I've analyzed what's best on how to deal with
    this. It's a very--it's a tough issue for you, and it's a tough issue
    for small businesses. It's a tough issue. But one of the cost drivers,
    just so you know, is lawsuits. And if you're an attorney, I don't mean
    to be stepping on your toe. Well, everybody needs a good attorney, you
    know--particularly me, since I'm getting sued all the time. But it's a--
    [laughter]--I think I am.
        If you're a doctor and you're afraid you're going to get sued, you
    practice additional medicine. It's called defensive medicine. You
    prescribe tests and procedures and perhaps medications that really may
    not be necessary, but are necessary if you're getting sued, and the suit
    could drive you out of business. I--and therefore, I'm a big believer in
    medical liability reform. If you've got an egregious suit, you should be
    able to take it to the courthouse.
        But it's these junk lawsuits that are doing two things around
    America. They're running good doctors out of practice. I mean, people
    say, ``I can't afford liability insurance,'' and when they can, they're
    going to pass it on to you in higher bills. But since you're not paying
    the bills--somebody else is--it's okay by you. The problem is, it's part
    of a cost driver. It's making medicine more expensive than it should be.
        I really think, at the core of this issue, America has got to be
    very careful about what kind of health care system to embrace. It's
    essential that we not undermine private medicine. If you really think
    about the health care advances in America relative to the rest of the
    world, they've been phenomenal. And to me it's that entrepreneurial
    spirit that's important to maintain on the kind of forefront here in
    America, and at the same time, make sure we've got a rational approach
    to health care. There's a long answer to a short question.
        Any other questions?
        Yes, sir. Everybody gets nervous. I used to hate to ask questions in
    class. [Laughter] ``I hope he doesn't call on me.'' [Laughter]

    Domestic Agenda/War on Terror

        Q. I have a statement and a question.
        The President. Okay.
        Q. First of all, I want to thank you for encouraging World Wide to
    sell more CISCO equipment. [Laughter] As an employee at CISCO, we
    greatly appreciate it.
        The President. Yes. There's a marketing genius. [Laughter] The guy
    has got the national TV cameras on him, and he's going to leave here on
    his cell phone and say, ``Hey, boss, did you see me on C-SPAN?''
    [Laughter]
        Q. And the question is, outside of the economy, what do you see as
    your single biggest domestic challenge through the end of your term?
        The President. The biggest domestic challenge is to protect America
    from attack. That's the biggest domestic challenge.
        I wish I didn't have to say that. You know, it's--but that's
    reality. The President doesn't have the luxury of dealing with the world
    the way he wished it was. My job is to do everything I can to rally
    forces to protect you. And I never thought I would be a war President,
    never wanted to be a war President, didn't campaign in 2000 saying, I'm
    going to be a war President. The interesting thing about life is that
    sometimes you get dealt a hand you didn't expect--oftentimes you do. And
    the question isn't whether you get dealt the hand. The question is, how
    do you play it? And here's how I'm playing it.
        First, I expect the Congress to give our professionals all the tools
    they need to protect you again. Let me just start--let me

    [[Page 627]]

    just take a step back. There must be some in the country who don't
    believe that the enemy is a threat. I just completely disagree with you.
    And I would remind people, since September the 11th, a day which
    affected me deeply, there have been a lot of attacks on innocent people
    by extremists who use murder as a tool to advance their ideology.
        The Government--and this is--the reason I say it's the biggest
    domestic challenge is because it's our most important responsibility. I
    mean, there's a lot of important issues, but protecting the people is by
    far the most important thing. It's the thing I think about the most.
    This is a different kind of war, and it's hard for some Americans to get
    their hands around it.
        This is a war where we're dealing with nonstate actors. World War
    II, there was Germany and Japan and Italy. Cold war, there's a big
    standoff between the Soviet and the United States. There is no nation
    involved in this war. These are people who, however, share an ideology.
    Just think about what life was like in Afghanistan under the Taliban
    with Al Qaida driving the agenda. This is where girls have no rights.
    You can't worship freely. This is a very dark, grim vision that they
    believe they must spread far and wide. That's what they think.
        And they--one way they achieve their objectives, of course, is to
    intimidate by death. There's no rules with these people. There's just--
    so America has got to understand that in order to find them, we've got
    to get in their heads. If you're facing a nation, you can find the
    nation. If you're facing people that bury in failed states, you've got
    to understand how to find them.
        One of the interesting debates in Washington, DC, is whether or not
    we ought to be using modern technologies to understand how this enemy
    thinks and to get in and figure out what they're planning. And a lot of
    times that comes over communications companies. The way I put it, just
    so people can understand in plain English: If Al Qaida is making a phone
    call into the United States of America, we better know why. If you're
    interested in protecting an attack and there's a dirty number being
    called, the Government of the United States better understand the
    intentions and why that phone call is being made. And so--and we had
    that bill passed, thanks to Senator Bond, and yet, curiously enough, the Congress decided to
    allow the bill to expire. It's called the Protect America Act. And now
    the Protect America Act is expired, as if the enemy has gone away.
        And so I--one huge issue for us is to make sure that the American
    people understand the facts. You see, what's happened is, is that these
    phone companies which have allegedly helped the United States monitor
    conversations are now being sued for billions of dollars of lawsuits.
    Isn't that interesting? All I'm asking for is the Congress to provide
    liability protection for patriotic companies that are serving to help
    you. And yet we can't get them to do it. They're not going to let it
    vote. They passed it out of the Senate--Kit did a really good job of
    working with his Democrat counterpart--and they buried that bill in the
    House of Representatives.
        And this is bad for America. I'm telling you, if you expect me to do
    my job, you better make sure Congress gives our professionals the tools.
    And we can do this, by the way, in a way that, I promise you, guarantees
    your civil liberties. We just shouldn't be extending the same liberties
    to you--to a bunch of thugs that want to murder the American people.
        This is another long answer. [Laughter] But I--it's very important
    for you to understand my thinking. I spend a lot of time on this issue,
    as you can imagine. Second aspect--so in other words, we'll give our
    professionals tools. We got a lot of really good people working. We meet
    all the time, Government is meeting constantly, ferreting out any
    information.
        And by the way, just so you know, we're picking up people on the
    battlefield, and

    [[Page 628]]

    the battlefield is varied. I mean, we're finding Al Qaida in Iraq.
    That's--they're trying to kill people in Iraq to drive us out. We're
    finding them in remote regions of Afghanistan. And a lot of times,
    they're carrying computers. And so you say, ``Where do you get
    numbers?'' We're getting them off the computers of the people we're
    capturing or bringing to justice. And if there's a phone number on one
    of those computers of one of these thugs and it links to a phone number
    somewhere in America, I really think it's in our interest to find out
    why.
        The other thing is just to keep the pressure on them. It's hard to
    plot and plan if you're moving, if there's enormous pressure, which
    really is important that we deny safe haven. You hear a lot of
    discussion about safe haven. Well, safe haven means that these nonstate
    actors are able to find breathing space to be able to plot. And they're
    sophisticated. You know, 19 kids on 3 airplanes, it's a sophisticated
    operation--4 airplanes, excuse me. This is a sophisticated operation.
    And they're good communicators. These people are--they're a tough enemy.
        And so we're pressuring all the time. You probably read your
    newspaper today. I can understand if you didn't, but you probably--
    [laughter]--there's--well anyway, there was a strike in Somalia, and the
    headline says ``Al Qaida operative.'' We're constantly trying to find
    these people before they hurt you and pressuring all the time.
        Finally--and by the way, Afghanistan was denial of a safe haven,
    and--as well as I saw an existential threat, as did most of Congress, in
    Saddam Hussein. I understand there's a lot of looking back. But getting
    rid of Saddam Hussein was the right thing.
        And now the question is, will we help the 50 million people in
    Afghanistan and in Iraq that we liberated realize the blessings of
    freedom? I'm telling you, it's essential that we do so. This is an
    ideological war. The people we face have an ideology. Those that came
    and killed nearly 3,000 citizens on our soil, in the largest attack in
    American history on U.S. soil, believe something, and so do we.
        We believe in human rights and human dignity. We believe in the
    right to a person to worship or not worship and be equally American. We
    say loud and clear, ``It doesn't matter whether you're Christian, Hindu,
    Muslim, Jewish, don't believe in anything, you're equally American.''
    They say, ``We'll kill you if you don't worship the way we tell you
    to.'' And so it's the advance of liberty and freedom which will
    ultimately achieve the peace we want for our children.
        Someday, an American President is going to be saying, this is not
    that big an issue anymore. But it's going to take an ideology to spread.
    And so when you see hopelessness as an American President, you got to
    understand that the only way these thugs can recruit is when they find
    hopeless people. I mean, who wants to be a suicide bomber except a
    hopeless person. You notice none of the leaders ever become suicide
    bombers, by the way. [Laughter]
        And so it's--so what you're watching is, you're watching democracy
    unfold. And some say: ``It's not worth it. Who cares how they live?''
    I'm telling you that we better care how people live. That's why, for
    example, the HIV/AIDS initiative in Africa is a cornerstone of Bush
    foreign policy; or helping moms whose little babies are needlessly dying
    because of mosquito bites is a cornerstone of Bush foreign policy; just
    like helping Afghan citizens and Iraqi citizens realize the blessings of
    a free society is a cornerstone of my policy--because in all cases,
    we're helping people deal with hopelessness. And it's worth it, and it's
    necessary.
        And I operate on this principle--it's a cornerstone principle: I
    believe in an Almighty, and I believe a gift of that Almighty to every
    man, woman, and child--every man, woman, and child--is freedom. That's
    what I believe. I believe deep--[applause]. And if you believe that and
    you happen

    [[Page 629]]

    to be the President of the most influential nation, shouldn't you use
    the influence to help people realize the blessings of freedom? And
    that's what you're watching happen. And it's going to happen, unless, of
    course, America grows tired and weary; unless we say it's not worth it
    and we become isolationist and protectionist.
        And so to answer your question, I thank you for giving me a chance
    to share that with you; it's a big issue for the American people. It's
    a--what you just asked about is a really important thing for our people
    to understand. We've been in ideological struggles before.
        Let me end--finish this really long answer with--[laughter]--I want
    to tell you something interesting about my Presidency. One of my best
    buddies in this war against extremists was the Prime Minister of Japan,
    Prime Minister Koizumi. You might
    remember, he's the guy that Laura and I took to
    Elvis's shop--Elvis's place in Memphis. [Laughter] People go: ``So what?
    So what's the big deal? Other Presidents have had relations with the
    Japanese Prime Minister.'' Yes, but other Presidents haven't necessarily
    been in this kind of struggle before.
        And my dad fought the Japanese--that's
    what's interesting--just like many of your relatives did. They were the
    sworn enemy of the United States of America. If you think back to 1940--
    forties, midforties--if you'd have thought an American President would
    stand up and say, ``My close buddy in dealing with the threats to our
    countries would be the Prime Minister of Japan,'' they'd say, ``Man,
    you're nuts, hopelessly idealistic.'' Except the truth is, 60 years
    after 19-year-old Navy fighter pilot George H.W. Bush took off on a
    mission serving his country, his son sits down with Prime Minister
    Koizumi talking about how we can spread
    freedom as the great alternative to these jihadists that kill. And I
    have found that to be one of the really ironic twists of history.
        What happened between 41--that's what
    they call the old man, 41; I'm the 43d President, 43--something
    happened: Democracy took hold. What I'm telling you is, liberty is
    transformative, freedom is powerful, and if you believe in the
    universality of freedom, then it makes sense to encourage others to
    realize the blessings of freedom for the sake of peace.
        Any other questions? Look, as you can tell, I can talk all day long.
    [Laughter]
        Yes, sir. Name--[laughter]--in case I'm a talk show host afterwards,
    you know? [Laughter]

    Price of Food

        Q. [Inaudible]--I'm Japanese.
        The President. And American?
        Q. Yes.
        The President. Well, then you're American first.
        Q. That's right. [Laughter] Good point. And I ask this partly
    because I'm hungry, but your thoughts on rising food prices?
        The President. Yes, thank you. [Laughter] By the way, that's a
    polite way of saying, ``Hey, man, how about cutting it short.''
    [Laughter]
        You know, it's a very interesting debate that's taking place.
    There's two aspects of rising food prices: one, how it affects our own
    citizens. And again, I'm--we're spending billions of dollars on people
    who can't afford food, and that's good. We don't have a scarcity issue
    in America, interestingly enough; we got a price issue. Our shelves
    aren't going empty, it's just costing more money. And it's why, for
    example, we've expanded Women and Infants with Children's program to
    make sure we can help the poor.
        Secondly, there is scarcity in the world, and I happen to believe
    when we find people who can't find food, we ought to help them find it.
    I just told you why. There's nothing more hopeless than to be a mom
    wondering whether or not their child is going to get food the next day.
    And so I announced a major initiative.

    [[Page 630]]

        By the way, just so you know, America is by far the most generous
    nation when it comes to helping the hungry, no contest. We're an
    unbelievably compassionate nation. And so I asked Congress to put some
    more money out. It will be over--it's about $5 billion, over a 2-year
    period of time, of food. Now, keep in mind, we're spending about 19
    billion here at home.
        Secondly, I think we ought to change our food policy in Africa and
    other third--developing countries. I think we ought to be buying food
    directly from farmers as opposed to giving people food. I think we ought
    to be saying, why don't we help you be able to deal with scarcity by
    encouraging your farmers to grow and be efficient growers. Otherwise,
    we're going to be in this cycle forever.
        Now, let me talk about price. As you know, I'm a ethanol person. I
    believe, as I told you, the interim step to getting away from oil and
    gas is to go to ethanol and battery technologies for your automobiles. I
    think it makes sense for America to be growing energy. I'd much rather
    be paying our farmers when we go to the gas pump than paying some nation
    that may not like us.
        And so--but most of ethanol now--or nearly all of ethanol now is
    produced as a result of corn. And the price of corn is real high now.
    And so people say, ``Well, it's your renewable fuels policy that is
    causing the price of food to go up.'' I've looked at this issue a lot.
    Actually, the reason why food prices are high now is because, one,
    energy costs are high. And if you're a farmer, you're going to pass on
    your cost of energy in the product you sell; otherwise, you go broke.
    And when you're paying more for your diesel, paying more for your
    fertilizer, because it's got a lot of natural gas in it--in other words,
    when your basic costs are going up, so does the cost of food.
        Worldwide, there is increasing demand. There turns out to be
    prosperity in the developing world, which is good. It's going to be good
    for you, because you'll be selling products into countries--big
    countries perhaps--and it's hard to sell products into countries that
    aren't prosperous. In other words, the more prosperous the world is, the
    more opportunity there is.
        It also, however, increases demand. So, for example, just as an
    interesting thought for you, there are 350 million people in India who
    are classified as middle class. That's bigger than America. Their middle
    class is larger than our entire population. And when you start getting
    wealth, you start demanding better nutrition and better food. And so
    demand is high, and that causes the price to go up.
        And finally, there's been weather-related problems. Some of the
    major producers of food have had drought. That's what happens. Weather
    patterns change. And so there's a lot of reasons why the price of food
    is high. And no question that ethanol has had a part of it, but I simply
    do not subscribe to the notion that it is the main cost driver for your
    food going up.
        Anyway, it's a good question. You don't look hungry. [Laughter]
        Yes.

    President's Legacy/Faith-Based and Community Organizations

        Q. First off, I would like to thank you for--[inaudible].
        The President. Thank you.
        Q. Secondly, maybe on a more lighter note, what are your plans after
    you--[inaudible]?
        The President. Thank you. Yes. I'm heading home. I tell people that,
    first of all, it's been a huge honor to serve the country, and I'm
    really glad I did. And I thank the American people for giving me a
    chance to serve. It's--as you can imagine, it's been a remarkable
    experience.
        A couple of points on that--what's probably counterintuitive to you
    is that this has been a great experience for our family. I've lived in
    the White House now for 7\1/2\ years, and the furniture is interesting--

    [[Page 631]]

    [laughter]--but it's like a museum. [Laughter] And there's love in that
    White House, thanks to a good wife. She's great.
    Laura is a--[applause]--which is one of the reasons this has been a
    fabulous experience.
        You know, obviously, there's some good days and some bad days. I
    feel so strongly about my principles and my values, and I'm an
    optimistic guy, that what may appear to be really difficult to deal
    with--like my buddies from Midland, Texas--that, for me, it's just part
    of the job. Interestingly enough, it is a lot harder to have been the
    son of the President than to be the
    President.
        And so it's been a joyous experience. You know, one of the great,
    really fun things we do is we welcome our pals from west Texas to the
    White House, and they come to the Oval Office. And they're walking
    around, they say, ``Man, I can't believe I'm here.'' And then they take
    a look at me--[laughter].
        So the first thing is, I'm heading home. I came from Texas with a
    set of values, and I'm going to go home with the same set of values. In
    order to be making consistent decisions in this complex world, you can't
    be shifting your principles in order to be the popular guy. I guess I'll
    go home and mow the lawn. I don't--[laughter].
        I'm interested in promoting the whole--what I talked to you about--
    the whole philosophy behind the freedom agenda. I think it's going to be
    very important to be kept in the forefront of American philosophical
    thought. And I'm going to build a Presidential library at SMU. It's
    where Laura went to university, there in Dallas.
    And I'd like to have a think tank. This isn't a political precinct; this
    will be a place where we get the thinkers from around the world to come
    and write about and articulate the transformative power of freedom,
    abroad and at home.
        One of the initiatives that I'm very proud of is the interface
    between government and faith-based and community groups. I believe that
    government ought to empower people who have been called to serve for
    reasons other than just government law. And there are thousands, by the
    way, of social entrepreneurs all throughout the country, little healers
    and helpers that just can make a difference in somebody's lives. And I
    think it's in our interests to empower groups through the use of your--
    taxpayers' money, without using your money to proselytize. And let me
    give you an example.
        If you're a drug addict or a heavy boozer, sometimes it requires
    more than a psychological counseling session to convince you to quit. As
    a matter of fact, a lot of people have turned to a higher power, which
    is not part of a government program. And so I'm--strongly support
    taxpayers' money going to an individual that seeks help and allowing
    that person, if he or she so chooses, to seek the redemptive power of a
    higher being as part of a government program.
        And so I'd like to--and that's something else I'd like to foster.
    But other than that, I mean, that's as far as I've--I got a lot to do. I
    mean, I really do have a lot to do. It's--which makes the job exciting.
        Now that you didn't ask, I'll tell you something interesting about--
    so if you walk in the Oval Office, I hope you'd be struck by a beautiful
    rug that's there. And so I was getting ready to be sworn in as
    President. And we're at the Blair House, which is right across the
    street from the White House. And as you can imagine, it was a slightly
    nerve-wracking moment, when I was preparing the Inaugural Address to be
    sworn in as your President. And the guy calls and says, like, ``You're
    supposed to pick the rug.'' I said, ``Huh?'' [Laughter] He said, ``So
    you're supposed to pick the color rug you want in the Oval Office.'' And
    the first lesson there is, when you're short on a subject--and I'm short
    on rugs--delegate. [Laughter]
        And I think it's going to be very important, as you pay attention to
    the Presidential race, to try to come up with not only who you agree
    with, obviously, but

    [[Page 632]]

    whether that person knows how to delegate, knows how to set up a
    structure so that good information can make it into the Oval Office in a
    way that enables good decisionmaking. The temptation, of course, is to
    walk in the Oval Office and say, ``Oh, man, you're looking beautiful.''
    And the President doesn't need somebody--because generally he's not
    looking beautiful. The President needs somebody to walk in and say,
    ``Here's what I think.''
        So when you think about good, solid advisers--at least in my case--
    think about somebody like Condoleezza Rice
    or Hank Paulson--used to run Goldman
    Sachs--or Bob Gates. These are strong,
    capable people. And my job is to make sure that the environment is such
    that they can walk in and say, ``Mr. President, here's what I'm
    thinking; here's my advice.'' And their job, by the way, once the
    President makes up his mind, is say, ``Yes, sir, Mr. President.''
    [Laughter] And so in this case, I delegated to Laura. [Laughter] And I should--and it's--and by the way, it's
    not ``Yes, sir, Mr. President,'' it's--[laughter]--``Yes, ma'am, First
    Lady.'' [Laughter]
        I said--here's an interesting lesson about the Presidency and life
    in general if you're delegating. I said to
    Laura--I said, ``I want the rug to say `optimistic person comes to
    work.' '' I didn't say, ``Here are the colors.'' In other words, I left
    the tactics to her, and the strategic thought was mine. The strategic
    thought is--behind that is that you can't possibly lead unless you're
    optimistic that tomorrow is going to be better. And just so you know, I
    hope at least one thing you come away from this is, I am absolutely
    optimistic, in my very soul and very core, that in the defense of
    America, we're laying the foundation for peace.
        And so the rug looks like the sun. And you walk in, man, I'm telling
    you, it is optimistic. [Laughter] It's a fabulous rug.
        Yes.

    Faith-Based and Community Organizations/Pope Benedict XVI/President's Visit to Romania

        Q. I just want to start by saying that my mom prays for you every
    day.
        The President. Yes. Thank you.
        Q. All right. I'm Dan Buck. I'm with St. Patrick's Center, and we
    help end homelessness for thousands of folks in St. Louis.
        The President. There you go.
        Q. But your Faith-Based and Community Initiative has truly broken
    down walls between government and faith-based organizations.
        The President. Thank you for saying that.
        Q. We have grown from 4 million to 12 million. We serve more people
    more effectively because of that partnership. How do we grow it after
    your administration? Will this continue, and is there plans in place
    that the FBCI will continue?
        The President. Well, I think--thank you for asking that, and thanks
    for your kind words. It's just going to be very important for
    organizations that understand the power and the leverage that can be
    gained by the use of money that could be going elsewhere to stay in the
    program. It's going to require Governors to open up faith-based offices,
    as well, and just get it ingrained in the system. And then your elected
    officials have to understand how powerful this has been. It's--again it
    recognize--there's some great Federal programs, some State programs, but
    there's a lot of programs that are really effective that can be helped
    by empowering individuals to have a script or money that they can redeem
    at their services.
        And so thanks for saying--are you a Catholic? Yes. So here's one of
    the great moments of the Presidency: the Holy Father coming to the South
    Lawn. I'm telling you, it was a magnificent moment. It's the largest
    crowd we've ever had on the South Lawn. And it was really interesting,
    from this Methodist's perspective, was to watch

    [[Page 633]]

    the reaction for our fellow citizens to His Holy Father. And it was a
    magnificent moment. The day--it was a beautiful day, and the Army choir
    sang ``The Battle Hymn of the Republic.'' That was just great. Anyway,
    we had a wonderful trip, and it was such an honor.
        I mean, you get to do some fabulous things as President. You asked
    about the--and one of them is welcoming the Holy Father to the south
    ground of the White House. You know, we--Laura
    and I went out to Andrews Air Force Base to see him, and then his first
    public event was there, and then he went on from there for the rest of
    his trip.
        It was--you know, representing our country has been a fabulous
    experience--I want to conclude by one story, and then I got to--I'm
    heading out of here. And this guy is hungry. [Laughter] So am I. Yes.
    [Laughter]
        I'm going to tell you an interesting story about this experience
    in--so I was going to Bucharest, Romania. Romania had just been admitted
    into NATO. And the big deal there for the Romanian citizens that had
    come under the--come out from underneath the clutch of a brutal dictator
    named Ceausescu was, if you're a member of NATO, there's a clause that
    says, ``An attack on one is an attack on all.'' In essence, if there's--
    they get the--they have the United States of America, the great United
    States of America, as somebody to help them, as an ally. And that's
    really important for a lot of countries. And they had just been accepted
    into NATO, and the President asked me and
    Laura to go. And there was 225,000 people, more
    or less, in the town square to see the American President, and it was
    raining.
        Now the interesting thing from my perspective was that I was here,
    and there was a balcony lit in the town square, and I was told this was
    where the tyrant Ceausescu and his wife had made their last public
    appearance. And the story has it that he--somebody started chanting,
    ``Liar,'' and he realized his power was slipping away, and then he tried
    to get out of there. And anyway, he was done in by the people. They were
    tired of him. He was a brutal guy.
        And so that was my line of sight. And the President introduced me, and just as I got up to speak, a full
    rainbow appeared. And it was a startling moment. And I turned back--
    Laura was, like, from me to you back there--I
    went, ``Look, baby, look up there.'' And so when I pointed up, 225,000
    heads whipped around to look at the rainbow. I then ad-libbed, ``God is
    smiling on Bucharest.'' And the reason I did is because the rainbow
    ended right behind the balcony where the tyrant had given his last
    speech. Liberty is transformative, and it will yield the peace we want.
        Thanks for coming by. God bless.

    Note: The President spoke at 11:11 a.m. at World Wide Technology, Inc.
    In his remarks, he referred to David L. Steward, chairman of the board,
    James P. Kavanaugh, chief executive officer, and Joseph G. Koenig,
    president, World Wide Technology, Inc; President Alvaro Uribe Velez of
    Colombia; Pope Benedict XVI; and former President Ion Iliescu of
    Romania.