FROM THE OFFICE OF PUBLIC AFFAIRS

Thank you so much for having me here today.

It’s terrific to be here, and I appreciate all the work you do, every day, to make Cincinnati, and the state of Ohio, a great place to live.

I appreciate that you’ve been going through economic change here in Ohio – with the manufacturing sector’s productivity meaning less job production and an unemployment rate here that’s higher than any of us would like it to be. But increased productivity is not bad news overall, and I hope you’ll agree that the economy across America is a lot better today than it was one year ago.

I’m very pleased with the direction of our economy today, and there is no doubt in my mind that we have President Bush’s leadership on tax cuts to thank for a strong recovery from a very short recession. When combined with low interest rates, the Bush tax cuts were every bit as effective as we hoped they’d be.

Just one year ago, the American economy was in a very different position than it is today. Then there was talk of a double-dip recession, with some commentators holding out the specter of deflation. Even those who saw the economy in pretty good shape characterized the recovery as at best wobbly, weak or anemic. 

Now, as you well know, the economy is now in a strong recovery, with a GDP growth rate of 6.1 percent in the last half of 2003 – the fastest six-month growth rate in nearly 20 years. Leading private forecasts are projecting growth of four percent plus for the 2004 year, well above historical growth rates. The latest Blue Chip report forecast GDP would grow 4.7 percent in 2004, the highest in 20 years.

Exports are up. The manufacturing sector is beginning to come back. The housing industry remains strong. Business confidence is up and business spending has rebounded. We are beginning to see some come-back in the labor markets. It is heartening to see that initial jobless claims have been at their lowest point in over three years.

By sustaining this growth going forward, I am confident that we will see good jobs pick up in the months ahead, as indicated by all the private sector surveys which indicate strong jobs growth over the course of the next year.

I know that some Ohioans are worried about their jobs going overseas. The President and I share that concern. Our economy is in transition in many ways, and that can be frightening… but there are ways to get through the transition that will mean a better future for everyone. Where workers are trained for the new jobs of the 21st century.

Some prescribe a policy of isolationism instead. It’s a pessimistic view that our businesses and our workers can’t compete. You and I know that’s not true.

We need to embrace the global economy. That’s as clear here in Ohio as anywhere.

Thousands of workers’ jobs in Ohio depend on trade agreements that enable Ohio-made products to compete in markets around the world. Since the enactment of NAFTA in 1994, Ohio’s exports to Mexico have tripled, and last year exports totaled more than two billion dollars. Since the end of 2000, Ohio’s exports increased more than any state in the country.

Exports are vital to our Nation’s economic strength. The President often points out that today America is selling computer chips to Japan, producing BMWs for export to Germany, and exporting California wine to France.

Think about this when you think about free trade versus a policy of isolationism: Only 5% of the global population lives in the U.S.  That means that 95% of our potential market is outside the U.S.  We need to stay engaged with the rest of the world, to keep those markets opened to our farmers, our service industry and our manufacturers – to businesses like yours.  We have the best workforce in the world, the most innovative businesses, and the most competitive companies. We can compete with anybody, given the chance.

Anyone who thinks otherwise ought to come here to Ohio. People all over the world are buying products made here in Ohio – cars and tires, batteries and jet engines, ball bearings and electronics, and crops from your farms. My hat is off to you, the business people and entrepreneurs of this state.

You have a great workforce here in Ohio as well… and more than 900 foreign facilities employ people in this state, including major companies like Honda. Ten percent of Honda’s international workforce lives here in Ohio. About 16,000 Ohioans work for Honda, and those are good, high-paying jobs. There are also 165 different Ohio companies that supply Honda with parts and material. And those companies represent eve more jobs.

It’s clear that free trade helps create jobs at home by opening foreign markets to American exports, and by encouraging foreign companies to set up operations here in the U.S. It helps to lower prices and increase choices for American consumers. Exports supported about 12 million jobs during the 1990s and foreign-owned firms provide jobs to around 6.4 million workers today.

Free trade stimulates economic growth, for this country and for our trading partners.

Cutting taxes, and keeping them low, is another critical part of creating that environment for growth. That’s why President Bush pushed Congress so hard for serious tax cuts last year. And, as I mentioned before, the good economic news we have today shows that the tax cuts worked.

More than 4.4 million taxpayers in Ohio will have lower income tax bills in 2004 under because of the President’s leadership.

Nearly 860,000 business taxpayers like you will be can use your tax savings from the two Acts to invest in new equipment, hire additional workers, and increase pay.

And 2004 Ohio state revenue is estimated to be nearly $1.8 billion higher than it would have been without the President’s tax relief acts.

I hope that those of you who own your own business are finding those tax cuts as helpful was we wanted them to be. I hope they allowed you to re-invest in your business by hiring more people, developing new products or services, or upgrading some of your most important equipment.

The President had you in mind when he designed the tax cuts, and he’s committed to making them permanent, too. We need Congress to agree with him on that.

We also need Congress to help us enact meaningful lawsuit abuse reform. Excessive, baseless suits are acting as a drag on your businesses and our nation’s economy, and that’s got to change. The threat of frivolous lawsuits is the ultimate disincentive for hiring new people, and the President has called on Congress to act.

We have choices to make in this country regarding our economy. And I believe that we must choose a path that we know will lead to growth.

We have to choose between higher taxes and lower taxes. We have to choose between economic isolationism or embracing the opportunity of the world’s markets. And we must choose between our historic national attitude of “can do” and the attitude that personal injury lawyers have encouraged, and that is: “can sue.”

These are the choices that most impact business decisions and the future of our economy.

I look forward to working with all of you as we pursue the common goal of economic growth.

Thank you for having me here today.