    [Weekly Compilation of Presidential Documents Volume 40, Number 13 (Monday, March 29, 2004)]
    [Pages 462-472]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Remarks in a Discussion on Job Training and the Economy in Nashua, New
    Hampshire

    March 25, 2004

        Lucille Jordan. Mr. President, on behalf of the faculty, the
    administration, the students, and the great citizens of the great State
    of New Hampshire, I'd like to welcome you to our campus. Mr. President,
    thank you.
        The President. Lucille, thanks. Thank you all. Thanks for having me.
    We're going to have an interesting dialog today about jobs, job
    creators, and education, and how they all work together to make sure
    that this State remains competitive and a good place to find work.
        Before we do so, though, I do want to thank you, Lucille, for--and
    your board and your faculty and your students--for welcoming me here.
    It's not easy to have the President come. [Laughter] Seems like there's
    a large entourage. But I appreciate it. And it's going to be--I think
    you're going to enjoy this. I know I am.
        Participant. I'm planning on it. [Laughter]
        The President. Good. I had the privilege today of riding from the
    airport in Manchester with your great Governor, Craig Benson. Appreciate
    you coming, Governor. I got to see the New Hampshire Government in
    action, because also in the car was the speaker, Gene Chandler, and the
    senate leader, Tom Eaton. I appreciate you all being here.
        I know the State attorney general is here. Peter, where are you?
    Thanks for coming. Good to see you, sir. Got a lot of members of the
    State house and State senate here. I know that Senator Jane O'Hearn, who
    happens to be the chair of the senate education committee--Lucille told
    me to be especially nice to her. [Laughter] Thank you for coming.
        I first want to tell you how optimistic I am about the future of the
    country. You know why? Because we've overcome a lot, when you think
    about it. In the last 3 years, this country has really been challenged.
    Our spirit has been challenged. Our economy has been challenged, and
    we've overcome them. We're a great country, full of wonderful people,
    dedicated, hard-working people.

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        When I say the economy has overcome a lot, let me explain what I
    mean. We've been through a recession. That means things are going
    backwards. Ask any of these businessowners what it's like to be in a
    recession. They'll tell you it's plenty tough. It's hard to plan. It's
    hard to be optimistic when you don't have any growth. It's hard to find
    work during a recession.
        As well we got attacked on September the 11th, and that affected our
    spirit. It affected our economy. Cheryl McGinnis is with us today. It
    affected her life. Her husband Tom was the pilot of American Airline
    Flight 11.
        The Government has got a solemn duty to protect America. And that's
    why we created the Department of Homeland Security. That's why we put
    out the PATRIOT Act, so our FBI and CIA can share intelligence to make
    sure we know who's here to hurt us. That's why the great United States
    military is on the offensive against--[applause]. The best way to
    protect us is to stay on the offensive and to find terrorists before
    they try to harm us again, and they will. That's what they're trying to
    do. Our solemn duty is to protect America.
        There's a commission going on in Washington, DC. It's a very
    important commission. It's a commission determined to look at the 8
    months of my administration and the 8 years of the previous
    administration to determine what we can learn, what we can do to make
    sure we uphold our solemn duty. Had I known that the enemy was going to
    use airplanes to strike America, to attack us, I would have used every
    resource, every asset, every power of this Government to protect the
    American people.
        There's a lot of good folks working to keep us safe. We overcame
    September the 11th because this Nation refused to be intimidated. We
    weren't going to let killers and assassins determine our course of life.
    It's a great nation because the people of America are resolute and
    strong and determined people.
        And then we found out we had some corporate leaders that didn't tell
    the truth. And it hurt us. It was another obstacle to overcome. You see,
    business numbers and accounting all depend upon honesty, and the fact
    that there were some in our society who were irresponsible citizens and
    who didn't tell the truth, it cost a lot of people jobs. It hurt our
    confidence. It was yet another hurdle to overcome. We reacted strongly,
    I want you to know. We passed tough laws. Perhaps you've seen on your TV
    screens some of the people that forgot to be responsible citizens
    getting their day in court. The message is--should be loud and clear to
    people in the business world: We're not going to tolerate dishonesty in
    the boardrooms of America.
        Part of the war on terror is to--is broader than just Al Qaida. The
    war on terror encompasses other theaters as well. You see, the lesson of
    September the 11th is we must deal with threats before they fully
    materialize. You can't just see a threat and hope it goes away. That's
    the lesson of September the 11th. Remember, prior to September the 11th,
    we thought oceans could protect us. But the strategic calculations of
    America must shift in order to do our duty to keep this country safe.
        I saw a threat; the Congress saw a threat; the United Nations
    Security Council saw a threat in the form of Saddam Hussein. He was not
    only a threat to people in the Middle East because of terrorist ties;
    he's a threat to America or anybody else who loved freedom. He's a
    threat to his own people. He had torture chambers and mass graves.
        And so I went to the United Nations. I think you might remember
    that--[laughter]--and said, ``Deal with the guy. He's been out there for
    11 years defying every time you have said, `Disarm for the sake of
    peace, for the sake of freedom.' And he ignored it.'' And so I said,
    ``We'll give him one more chance.'' And we did. The United Nations
    Security Council voted unanimously to say to Saddam, ``Disarm, or face
    serious consequences.'' And he was defiant once again. And given the
    lessons of September the 11th, I had a choice: You either take the word
    of a madman, a guy who had gassed his own people at one point in time,
    or defend America. I'll defend our country every time. [Applause] Thank
    you all. Thanks.
        During the runup to the liberation of Iraq, on our TV screens you
    see, ``March to War.'' That's hard to the business world. It's hard for
    job creators. It's not a very--it's not--

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    you don't get a lot of confidence when you think your country is
    marching to war. War is negative. I did what I thought was right. Now
    we're marching to peace. But we overcame that part.
        So we've been through recession, an attack, corporate scandals, and
    war. And yet our economy is growing and getting stronger. Part of it had
    to do, I think, with the policy of our administration, which is tax
    cuts. See, I believe that when you let somebody have more of their own
    money to spend or save, that person is likely to demand an additional
    good or a service. And when they demand a good or a service, the way our
    economy works, somebody will produce the good or a service. And when
    somebody produces the good or a service, somebody is a lot more likely
    to find work.
        And so this tax stimulation came right at the right time. We cut the
    taxes on everybody. Sometimes in Washington, if you hear the tax debate,
    they say, ``Well, this person deserves tax cuts and this one doesn't.''
    It's kind of like picking and choosing winners and losers, which I don't
    think is good tax policy. My attitude is, if you pay taxes and you want
    tax relief, then everybody ought to get tax relief.
        We increased the child credit to $1,000 per child. That helps people
    raising their families. If you've got children, it helps a lot. Reduced
    the marriage penalty. It doesn't make much sense to penalize marriage in
    the Tax Code when you're trying to encourage marriage in society. I
    mean, marriage is a good thing, not a bad thing. Put the death tax on
    its way to extinction. If you're a small-business owner, you ought to be
    able to leave your assets to whomever you choose. You get taxed when
    you're growing your business, and you get taxed after you leave the
    Earth. And sometimes it's hard to pass on your assets to whoever you
    want. I mean, one of the ways to encourage entrepreneurship is to say,
    ``Build your business and leave it--leave your assets to whomever,
    whether it's a business or a farm or a ranch.'' So we did some good
    things with the tax cut.
        Let me tell you what else we did that relates to small business.
    Most of the new jobs in America are created by small-business owners.
    Seventy percent of small businesses--or new jobs are created by small
    businesses. And so most small businesses are Subchapter S corporations
    or sole proprietorships. Those are legal words for meaning they pay tax
    at the individual income tax rate. So when you cut the taxes on the
    individuals, you're really cutting taxes on small businesses around
    America. And if you're interested in job growth, it makes sense to allow
    small businesses to have more of their own capital so they can expand
    and grow and hire more people.
        We also provided incentives in the Tax Code to allow small
    businesses to deduct up to $100,000, as opposed to $25,000. We had bonus
    depreciation plans available for investment. So we've made a difference,
    and the results are good. They really are good, when you think about it.
    And the unemployment rate here in this State is 4.1 percent. That's
    good, real good. The inflation is low. Interest rates are low.
    Homeownership is at the highest rate ever. That's positive for society.
    We want people owning things. We want people owning their own business.
    We want people owning their own home. By the way, minority homeownership
    rates are extraordinarily high in America, and that is really important
    too for our country. Manufacturing is increasing, and we've had job
    growth.
        Now, there's more to do, and we're not going to be satisfied until
    people who want to work can find a job. And so what are the things we
    can do? Well, one, we need an energy plan. It's hard to run a business;
    it's hard to be a manufacturer if you're worried about the reliability
    of energy. Ask somebody what it's like to run a business that requires
    energy and your energy bills spike up, or what was it like if you're
    worried about getting electricity at all, because the grid is
    antiquated. It wasn't all that long ago, like last summer, that much of
    the East Coast was affected because the grid is old.
        We need an energy bill that encourages conservation, alternative
    sources of energy, a bill that modernizes the electricity system, and a
    bill that makes us less dependent on foreign sources of energy. In order
    to make sure jobs stay here at home, in order to make sure people can
    find work, we need to be competitive. That's what we need to be thinking
    about--how to make sure we can

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    do a better job of encouraging the entrepreneurial spirit to be strong
    so people create jobs in America. One way is good energy policy.
        We need tort reform. If you're a businessowner--[applause]. You talk
    to any businessowner, and in most places, they're worried about junk
    lawsuits that run up the cost of doing business. When they spend more
    time fighting off a junk lawsuit, it means there's less time hiring
    somebody.
        We need to worry about the cost of medicine. Listen, health care
    costs are going up. You ask any businessowner what it's like to run a
    small business, and they'll tell you, ``One of my big fears is that I
    can't provide for my employees,'' they'll tell you, because the cost of
    health care is going up. There's a debate in Washington. There's a
    philosophical debate over who you want running the health care. There's
    some up there, good people, good, honest, decent Americans who say, ``We
    want the Federal Government making all the health care decisions.'' I'm
    on the other side of that. I think we want consumers to be making--
    [applause].
        There's some practical ways to do that. One, small businesses ought
    to be allowed to pool risk across jurisdictional lines so they can get
    the same purchasing power that big businesses have. Those are called
    association health care plans. Another interesting option for small
    businesses and employees is called health savings accounts; lets you put
    money in your health saving account tax-free, earn money tax-free, take
    money out tax-free. And you combine that with a major medical insurance
    policy, you've got yourself affordable health care, and it's good for
    small businesses. These are exciting options that are now developing in
    the marketplace, where the consumer has got more choice over the
    decisionmaking, as opposed to Government.
        Finally, in order to make sure that the health care costs are
    reasonable, we need medical liability reform. I want to praise the
    Governor and the speaker and the senator for working on medical
    liability reform here in New Hampshire. We need national medical
    liability reform too.
        There's three other things I want to talk about right quick. I
    promise you others are going to talk. You know how we are in Washington,
    once we get a mike--[laughter]--it's hard to pry it out of our hands.
        Ms. Jordan. College presidents----
        The President. Yes, college presidents. [Laughter]
        The tax cuts are set to expire. The child credit goes down next
    year. The marriage penalty goes up, and the 10-percent bracket as part
    of the overall tax cuts changes to the bad. Now, Congress needs to make
    these permanent. They need to make sure that people have more money in
    their pocket. We're strong. We're getting stronger. There's more to do.
    It's hard to run a business if you're uncertain about what the Tax Code
    is going to look like, and we definitely want our consumers to have more
    money in their pockets as we're coming out of what has been a very
    difficult period of time. You've heard the challenges we've overcome. If
    they don't make these tax cuts permanent, it means they're raising taxes
    on people with families. It means they're raising taxes on people who
    are married. It means they're raising taxes on people who are in the 10-
    percent bracket. The tax cuts need to be permanent.
        There is a temptation in Washington to say the solution to jobs
    uncertainty is to isolate America from the world. It's called economic
    isolationism, a sense that says, ``Well, we're too pessimistic. We don't
    want to compete. As opposed to opening up markets, let's close markets,
    starting with our own.'' That is very dangerous for the New Hampshire
    economy. One in five jobs in New Hampshire depends upon exports. In
    other words, it depends upon the ability to get our goods into somebody
    else's market.
        Presidents before me, both Republican and Democrat, had made the
    decision to make our markets relatively open compared to other
    countries, because it's good for U.S. consumers. You see, when consumers
    have got more choices and there's more competition, it gives you--it
    helps satisfy your demand at reasonable price.
        And so the fundamental question is, do we keep our market open, or
    do we close it. My attitude is, we keep it open but make sure others
    open theirs too, see, and make sure the playing field is level. I've got
    great confidence in New Hampshire's workers. I've

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    got great confidence in New Hampshire's entrepreneurs. I've got great
    confidence in products that say ``Made in the USA.'' And so do a lot of
    people who live in other lands. So let's sell. Let's have a--I'm going
    to continue what I've been doing and say, ``You reduce your barriers,
    see? Ours are down; just treat us the same.'' One way to make sure jobs
    don't go overseas, and one sure way to make sure we're vibrant here at
    home is to insist that other people lower their barriers so we can
    compete. That's all we ask. Just give us a chance. America's--Americans
    can rise to the challenge. Trust me.
        Okay, here we go. Two other things--I want to mention one other
    fellow before I get off here. Remind me, Larry, to mention you.
    [Laughter] I want to talk about education and the role of education to
    make sure jobs are here at home and that people can find work.
        First, we've got to get it right at the elementary school level.
    We've got to make sure that every child learns to read and write and add
    and subtract. I'm a big believer in accountability, not because I want
    to punish--I don't see--if the goal is to teach every child to read at
    grade level by the third grade and keep him at grade level, I don't see
    how you can figure that out unless you measure.
        Now, the people of New Hampshire ought to be running your own
    business. You don't want the Federal Government telling you how to run
    your schools. You want to be able to design your own accountability
    systems. But I would hope you would want government at all levels
    saying, ``What are the results?''
        And so we're spending record amounts of money at the Federal level,
    for particularly Title I students, which are poor students. And Senator
    Gregg, by the way, has been working hard for education matters. A good
    guy, I'm sure he would be here, but he's voting. [Laughter] But so we're
    asking the question, and we're going to get good results. See,
    accountability allows you to test your curriculum. Accountability lets
    you determine who needs help today, before it's too late. And one thing
    I'm not going to tolerate as your President--and you shouldn't tolerate
    as citizens--is just shuffling kids through the system and hope they
    learn. Those days have got to end.
        We've got remedial programs to help high school and junior high
    kids. Let's face it. Because there hasn't been accountability and hasn't
    been rigorous examinations of curriculum, some teachers need to be
    retrained, we're shuffling some kids through. And all of the sudden,
    they show up in high school, and they can't read. And so we need to have
    a focus on remedial education. I've asked Congress to put up some money
    to do just that, to help States and districts do that.
        But I think one of the great and hopeful opportunities for the
    country is to utilize our community college systems to make sure that
    people are trained for the jobs which actually exist. Community colleges
    have got the capacity to be flexible in their curriculum. They don't
    stay stuck in a certain kind of course load. Community colleges are able
    to say to businesses, local businesses, ``What do you need?'' Local
    businesses say to community colleges, ``This is what we need.'' Mayors
    and Chamber of Commerces are able to say to community colleges, ``In
    order for us to track a certain type of business or jobs, here's what we
    need.''
        And so long as the community college has got able leadership, like
    educational entrepreneurs like Lucille, and are willing to be flexible,
    you can actually match people with the skills needed to work in the new
    jobs of the 21st century. Listen, our economy is changing. We're a
    productive workforce, and some people need to be retrained in order to
    be productive workers. And the community college is a great place to do
    so.
        And that is what we're going to start talking about. But I mentioned
    Larry, Larry Jeffery. You probably don't know Larry. I didn't know him
    until I landed, and he was standing at the foot of Air Force One, the
    steps of Air Force One. He's here because he is a volunteer. He's a
    mentor. He teaches--he helps people learn what it's like to start your
    own business. We're going to talk to some people who have started their
    own business here today. It's heartening to know that a World War II
    vet, experienced businessperson, is willing to take time out of his life
    to mentor.

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        The reason I bring up--raise your hand, Larry, will you? There you
    go. That's him. The reason why I bring up Larry is because the strength
    of this country is the heart and souls of our citizens. You know, people
    say, ``Well, America is strong because of our military''--and it's one
    reason, and by the way, we'll keep the military strong--or ``We're
    strong because we're a prosperous nation, we're the largest economy in
    the world, and we've got a great spirit here.'' But we're really strong
    because we've got people who want to love their neighbor just like
    they'd like to be loved themselves.
        I know it happens all over Nashua and the State of New Hampshire,
    where people get involved with church and synagogue and mosque in order
    to help a neighbor in need, or whether you go to your local civic group
    or whether you're a mentor. Listen, my call to you is, be like Larry.
    Take time out of your life and help change America, one heart and one
    soul at a time, and the country will be better off for it.
        All right, here we go. Lucille says she's tired of me talking.
    [Laughter] Lucille is the president of the community college in which we
    sit. I have chosen this community college because she is doing exactly
    what I think a community college ought to do, which is to be practical
    in its application of education in order for people to be able to find a
    job. Explain to people how you're doing it.
        Ms. Jordan. I will. But before I do that, with all due respect, I
    need to tell you that I have the best job in the United States as
    president of this college.

    [Ms. Jordan made brief remarks.]

        The President. Yes, let me ask you about this one program, the
    national emergency grants. What happens is, is that sometimes, under
    certain circumstances, when a business gets shut down, there is worker-
    training money available at the Federal level to go to community
    colleges to help retrain workers for jobs which exist. And I believe
    we--the Federal Government granted a national emergency grant to this
    college.
        Ms. Jordan. Yes.
        The President. And how's that going?
        Ms. Jordan. Very well, very well.
        The President. A plant shut down in Manchester.
        Ms. Jordan. Yes, and actually I think our sister campus in
    Manchester is----
        The President. Is handling most of it.
        Ms. Jordan. ----really helping them out a great deal, not only in
    the English second language area but as well as helping them out gaining
    new skills in manufacturing and computer skills in programming. And it's
    a real success, very much so, credit to the president Tom Wisbey.
        The President. The point I'm making is, is that you can be proactive
    and reactive, proactive to find a curriculum that works to attract jobs
    or if jobs expand, reactive to economic downturn for a particular
    company, and help people. And that's what the community colleges are
    good at. They're good at taking people and converting their skill base
    to a useful skill base.
        I'll tell you a very interesting story. I went out to Mesa Community
    College in Arizona, and I met a lady who had been a graphic design
    artist, I think for 15 years. And she went back to the community college
    and went to a technically based program. I think it was a 6-month
    program, if I'm not mistaken. She got out and joined Cable One, and in
    her entry-level job, she made more, after having gone to 6 months of
    community college, than she had in her 15th year as a graphic design
    artist. In other words, the transference of skills, the ability to make
    a person more productive, raises pay.
        And the community college system--if people are interested in the
    community college system, think about going back to school for a period
    of time to raise your pay, to raise your standard of living, to give
    yourself a better shot at making a living by being employed by companies
    who are vibrant, competitive, and 21st century companies.
        Ms. Jordan. Absolutely.
        The President. Is that what you find?
        Ms. Jordan. I think another area too that we don't think about often
    in industry is the allied health industry. And one of the things that
    we've done in a partnership here in Nashua is Southern New Hampshire
    Medical Center. We did not have the money to open up a lab. They came to
    us and said, ``Look, we have a nursing shortage. We want to open

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    it up to the public. We're going to open up a million-dollar lab on
    their west campus,'' and they did that. And as a result, we have new
    nurses in the field.
        The President. You know, it's an interesting point. Again, if
    anybody's listening--[laughter]--and you're trying to work, think about
    the health care field. In a lot of our States around the country, there
    is a shortage of health care workers. Now, it's going to require a
    desire to go back and get the skills necessary to go into the health
    care field. Government can't make you make the decision to be a--to work
    and to gain new skills, but we darn sure can open the door. And that's
    what we're here to talk about.
        Let me talk about Mike for a second, if you don't mind. Mike Hills
    is a student. He is a--I can't wait for you to hear his story. If you'd
    look at Mike walking down the street, you'd say, ``You don't look like a
    student to me.'' [Laughter]
        Mike Hills. I hear it at the campus sometimes too.
        The President. There you go. [Laughter] Tell us your story, Michael.
    Tell us what you're doing, why you're a student here. Give us a little
    sense of the background. Bring people up to date. There may be somebody
    listening who is wondering whether or not it is worthwhile to go back to
    a place like Nashua, New Hampshire Community Tech. How you're paying?
    Are you paying it out of your pocket? How you getting here?
        Mr. Hills. Well, first, before I begin, Mr. President, I'd like to
    thank you for coming and having me here with you. I'd like to take a
    moment to introduce to you my brother Patrick and my--[Laughter]
        The President. Patrick, how are you? Keep your remarks short,
    Patrick, will you? We've got--[Laughter]
        Mr. Hills. ----and my girlfriend, Nancy, who is sitting right next
    to me.
        The President. I would suggest reversing the order next time,
    Michael. [Laughter]
        Mr. Hills. Well, you know, they say blood is thicker than water.
        The President. Yeah, right. [Laughter]
        Mr. Hills. Well, as you know, I'm a 41-year-old student here at the
    college, and I started here in September 2003. Before I started here, I
    was in the retail business. I sold everything from soup to nuts. You
    name it, I probably sold it. And I have two daughters at home, and as
    you know, raising two daughters becomes more expensive as they get
    older. [Laughter]
        The President. Hair gets a little whiter too, doesn't it?
        Mr. Hills. As you can see, yes.

    [Mr. Hills made brief remarks.]

        The President. Good. Can I ask you one more question? You remind me
    of old Larry over there, you know? [Laughter] That's good.
        Mr. Hills. Thank you, sir.
        The President. As I understand, you got a little help to come here?
        Mr. Hills. Yes, I did, through financial aid, through Pell Grants,
    through Stafford loans. I also was awarded the Triple A scholarship, the
    American Motors Association, and also two upon graduating that will also
    enable me to be ASE-certified, which is the Automotive Service of
    Excellence, which is an accredited program. It's not mandatory, but it
    also makes you more marketable in your area. And I encourage anybody who
    is thinking about going back to school--let me tell you, dollars and
    cents make some sense.
        The President. There's money available. There's Pell Grants
    available. There's Trade Adjustment assistance available. There's
    national emergency grants available. You got to want it, now. You just
    can't say, ``Okay, I think I'm going to gain skills just by thinking
    about it.'' People are going to have to seize the initiative. It's up to
    the individual, like Mike, but it's available. And that's why I'm so
    glad Mike is here to explain that even at 41 or, perhaps, especially at
    41, there's great opportunities if you're willing to seize the moment.
        Heather is with us, Heather Limanek. So Heather's working along.
    She's got one child. By the way, if the child credit is not made
    permanent, Heather pays more taxes next year. Just think about that now.
    [Laughter] So when--the Congress--I'm not worried about your Senators or
    your Congressmen, but there are some others you need to be thinking
    about. The people up there in Washington who say, ``Oh, we're going to
    repeal the tax. We're going to tax the rich,''

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    that means they're going tax small-business owners. And if they don't
    make the child credit permanent, they're going to be taxing Heather
    right at the wrong time. So it's important for people to put a face with
    the consequences of bad tax policy.
        Anyway, she's here--guess what happens? She's got a kid. She's
    working. She gets laid off in 2000, and then what happens?

    [Heather Limanek, student, New Hampshire Community Technical College,
    and owner, Heather's Happenings, made brief remarks.]

        The President. Yes, let me tell you something. That's great, a
    fantastic story. What a great story. She has a dream, goes back to
    school, and starts her own business. It happens all the time in America.
    The job of Government is to create an environment in which people are
    confident about chasing their dreams. It's really the thing that makes
    our economy so unique and vibrant, isn't it.
        Heather gets laid off, gets kicked in the gut, I think you said.
    [Laughter] Stomach, yes. [Laughter] Anyway, and now she's a
    businessowner. Government can't guarantee success. That's up to Heather.
    And it's why she's staying in school, to learn the skills necessary to
    be as good a small-business owner as she can. But we darn sure can make
    the environment such that somebody like Heather feels comfortable about
    taking risks.
        We're really proud of you. I love the story. It's what I love about
    our country, isn't it? Somebody can own something that she can call her
    own and make it work. You noticed she said, ``I hope to be hiring people
    next summer.'' That's how it works in America.
        By the way, speaking about people hiring somebody, David Dunfee is
    with us today. He is the president of D.G. O'Brien, Inc. Tell us about
    D.G. Who is D.G.?

    [David Dunfee made brief remarks.]

        The President. Yes, let me step in. He got him 175 employees, which
    is a good size company, but he's a Subchapter S corporation, which means
    he pays taxes at the individual income tax rate. So when you hear them
    in Washington talking about taxing the rich, that's the rich right
    there, see? That's who they're talking about. They're talking about
    taxing employers. If you're a small-business owner and they're running
    up the top rates on you, you're taxing people who are creating jobs.
        It makes no sense to be draining capital out of the economy, out of
    his coffers. He says he wants to expand this year. It means he's going
    to add more employees. If they're taking money away from this company,
    they're not going to be adding more employees. That's how the economy
    works. That is why I am so strong on making sure that the tax cuts are
    permanent.
        Tell me--the other thing you noticed he said, because of the bonused
    appreciation--that's an accountant word for, we're trying to encourage
    you to buy equipment. That's what that means. What did you buy?
        Mr. Dunfee. Last year, we spent about $400,000 in capital equipment,
    anywhere from machine tools to computers to CAD stations. And this year,
    in part because of that tax credit, we're upping that 25 percent to
    $500,000 and buying additional equipment to improve our productivity.
        The President. You see, he makes a capital decision. In other words,
    he's going to go buy a machine. Somebody has got to build the machine.
    So when you said--when you heard me talk about increasing demand for a
    good or a service, it's precisely what I'm talking about. He increased
    demand last year for additional capital purchases by $400,000. This
    year, he's going to make another $500,000 of purchasing. Somebody has
    got to make those goods. And when somebody fills his order, it means a
    worker is more likely to retain a job or find a--or a worker is able to
    find a job. And that's how this economy works of ours. And that's what
    the decisionmaking process, not only by this company but by millions
    like him all across America, help define whether our economy is vibrant
    or not.
        And I appreciate, Dave, your--taking on this business and being an
    employer. You notice the other thing he said, ``The employees make it
    work.'' That's a great owner of a company and a great manager if he
    says--he gives the credit where credit belongs.

    [Mr. Dunfee made further remarks.]

        The President. Yes, I think you need to look at health savings
    accounts, seriously. An

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    employer, for example, can buy a catastrophic plan with a high
    deductible, say $1,000 deductible. It's a fairly inexpensive plan
    relative to the current plans on the market that you're probably buying.
    And then the employer and the employee can match on some basis,
    depending upon the nature of the company, a tax-free entry into the
    health savings account, out of which the consumer pays incidental
    medicals until you get up to $1,000. But if you don't spend all $1,000,
    you earn interest, tax free, and you can roll it over from one year to
    the next. In other words, you have a health savings account, and it
    makes sense because it puts the consumer in charge of health decisions.
    It also encourages people to make healthy decisions with their bodies,
    like walk and exercise and don't drink too much and quit smoking.
    There's a lot of serious things you can do to keep their health savings
    account vibrant because it's your money.
        Anyway, I wish you would look at that. I think you'll find it to be
    some pretty interesting.

    [Mr. Dunfee made further remarks.]

        The President. Fiscal policy can determine pressure on interest
    rates. We've got a plan to cut the deficit in half. Let me talk about
    the deficit right quick. We have a deficit, and we've got a deficit
    because we were in a recession, for starters. A recession means less
    revenue is coming into the Treasury, and if you don't cut expenses, you
    don't get a deficit. We didn't cut expenses. As a matter of fact, we
    increased expenses, particularly in two areas--the military. If I put
    somebody in harm's way, they're going to get the best, as far as I'm
    concerned. [Applause]
        Thank you all. Sit down, please. Yes, I appreciate you applauding
    our troops. That's who you're applauding.
        But we can get the deficit down half. It's going to have to be tough
    on spending. And it's hard--appropriators are appropriators, and they
    take their title seriously. And so we're working with Congress to set
    priorities and to bring the deficit down, which will help, but Alan
    Greenspan has a lot to do with it. I'll tell--I'll pass it on.
    [Laughter]
        Mr. Dunfee. The only other thing I ask you to do is, let's bury that
    death tax.
        The President. Yes, I agree. Let me talk about the death tax again.
    If you noticed, early in his discussion, he said he was struggling with
    being a second-generation owner. I'll tell you what he was struggling
    with. He was struggling with, probably, the debt you had to borrow in
    order to have the assets passed on from one generation to the next.
    That's what happens.
        There's a lot of small-business owners who, when they faced with
    paying a death tax, have to sell the business in order to do so. And it
    just doesn't make sense. It's just not--it's a bad tax. It discourages
    entrepreneurship. It makes it harder for this good man to make sure his
    business is vibrant so that he keeps people working here.
        So when you heard me talk about the death tax being good for the
    entrepreneur--getting rid of the death tax being good for the
    entrepreneurial spirit. That's what I meant. I meant it encourages
    people. It makes it easier for the businessowner to decide to pass their
    assets on to kids, families, whoever--charitable trusts, whatever it may
    be--without the Government standing in between the decider and the
    person who benefits from the transfer of the company. That's what he's
    talking about.
        It's important for small-business owners to make sure the death tax
    does not come back. Catch this, though. The way the law is written, the
    death tax comes back to life in 2011. So here we are--let's advance to
    2010, and we're all alive. [Laughter] And the death tax has been scaled
    down, and all of a sudden, it pops back up to existence. Imagine what
    policy is going to be like. You talk about confusing. And you know, a
    lot of people are going to be--well, never mind how they're going to be
    thinking. I'm just telling you, it's bad law.
        George, you are a--you weren't born here in this country, were you?
        George Kassas. If you'd like me to.
        The President. No, no. [Laughter]
        Mr. Kassas. I was born in Lebanon, sir.
        The President. So you're a first-generation American.
        Mr. Kassas. Yes, sir.
        The President. Welcome.
        Mr. Kassas. Thank you. Thank you so much. Thank you.

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        The President. You weren't even born here, and you're the cofounder
    of a successful company. Is that an accurate assessment?
        Mr. Kassas. Yes, sir.
        The President. Well, then, why don't you just tell us about it?
        Mr. Kassas. Okay. Thank you so much, sir, for the opportunity to be
    with you on this stage. And it's a great privilege and a distinct honor
    for me.
        I'd like to avoid the mistake Mike made so I'd like to introduce my
    family first to you. [Laughter] That's Kristen, Juliet, Tony, and
    George.
        The President. That wouldn't be--that's not George W., is it?
    [Laughter]

    [Mr. Kassas, cofounder and executive vice president for operations and
    business development, Cedar Point Communications, made further remarks.]

        The President. Let me stop you. George has got two employees in the
    year 2000. You'll have 116--is that right?
        Mr. Kassas. Yes, if you add the 25, absolutely.
        The President. By the end of '04, you'll have 116 employees. That's
    really good news, isn't it? Think about that. I'm glad you're doing
    well, and there are any--tax credit does need to be permanent.
        What I'm interested in people knowing is to connect, when you talk
    about the entrepreneurial spirit in small businesses, with job creation.
    This one company alone that was a dream in this guy's brain has now
    added employment of 117. It happens all over America. There's a lot of
    Georges in this world. [Laughter] There's a lot of entrepreneurs who
    dream big dreams and who work hard to achieve it. And the job of our
    society, in order to be competitive and to keep jobs here, is to make
    sure that entrepreneurial spirit is strong with good policy. And that's
    what we're talking about.
        What else you got to say?
        Mr. Kassas. Mr. President, this year and well into future years, we
    will be exporting our product to many customers around the world,
    starting this summer. And what does that mean? It means that every time
    we export, we grow the company; we add jobs; we invest in our capital
    equipment. It's just as simple as that.
        The President. Yes, well, I appreciate you understanding that. He is
    talking about--see, what he needs to be talking to me about is to make
    sure that the markets he wants to export into don't have a bunch of
    trade barriers and tariffs. See, what George wants from his Government
    is to say, ``Don't shut it down here. Open it up over there.'' Just give
    him a chance to compete. We've got to reject economic isolationism in
    America. We've got to be bold and confident. We've got to believe in our
    people. We've got to believe the Georges of the world can compete
    anywhere if just given a chance to do so.
        So when you hear me talking about trade policy, that's what I'm
    talking about. I'm talking about giving our entrepreneurs a chance to
    compete on a level playing field. And if you give Americans a chance to
    compete on a level playing field, we'll win just about every time.
        Listen, I want to thank you all for coming. I hope you have found
    the conversations with your fellow citizens as stimulating, as
    interesting as I have. I mean, one of the things that's--I like to
    remind people, I'm an optimistic person. And the reason I'm an
    optimistic person is I listen to these kind of stories all the time,
    doers and dreamers and achievers, people who honor their family, people
    who love their country more than anything else. It is such an honor to
    be with you all. I'm so glad you're here.
        Thank you for what you're doing. Thank you for being such great
    Americans. And may God bless you all.

    Note: The President spoke at 1:21 p.m. at New Hampshire Community
    Technical College at Nashua/Claremont. In his remarks, he referred to
    Gov. Craig Benson and State Attorney General Peter W. Heed of New
    Hampshire; Gene Chandler, speaker, New Hampshire State house of
    representatives; Thomas R. Eaton, president, New Hampshire State senate;
    and New Hampshire State Senator Jane O'Hearn. Discussion participant
    Lucille Jordan referred to Thomas Wisbey, president, New Hampshire
    Community Technical College Manchester. A portion of these remarks could
    not be verified because the tape was incomplete.

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