FROM THE OFFICE OF PUBLIC AFFAIRS

June 8, 2004
JS-1716

The Honorable John W. Snow
Prepared Remarks
MONEY Summit
New York City
June 8, 2004

Before I remark on the state of the economy, I'd like to take a moment in remembrance of a great American, Ronald Reagan.  

With the passing this weekend of Ronald Reagan America has lost one of the commanding and gracious figures of our time.  His smile and charm are seared in our memories as is his deep commitment to the American values he cherished.  No one among the world leaders can lay so great a claim as he to having ended the Cold War, brought down the Berlin Wall and restored democratic institutions in the former Soviet Bloc.  He stands as a giant of our times who may have baffled the historians but never the American people who always rallied to him.  The great voice has been stilled but what he said and what he stood for will live on forever.

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It's hard to believe that just a year ago, discussions about the economy were filled with pessimism – there was talk of a double-dip recession, and some even raised the specter of deflation.

I believe that the President's tax cuts, combined with sound monetary policy, enabled our incredibly resilient and robust economy to achieve the incredible recovery and growth rate that we see today.

The third quarter of 2003 was a break-through quarter, with astounding GDP growth of over eight percent.

Over the past nine months, we've seen the best growth in almost 20 years; GDP has been averaging an outstanding annual rate of 5.6 percent over the past three quarters.

Business spending has rebounded. Business and consumer confidence is up. American households sense that the job market is strengthening. 

And best of all, we've had good news of strong job growth. In the ninth straight month of growth, the economy created nearly a quarter million jobs in May, bringing the total increase since August to more than 1.4 million. The unemployment rate, which is down substantially from its peak last summer, remains below the average of each of the past three decades.  Employment over the past year was up in 44 of the 50 states. The unemployment rate was down in all regions and in 47 of the 50 states.

One newspaper recently had a headline that read: "Higher-Pay Jobs Make a Comeback."  The story made the point that as the U.S. economy grows stronger, the labor market is beginning to create better-paying jobs and that signs point to a turnaround for professional, service and manufacturing work.

It's great to see that the manufacturing sector is coming back, because it's an important source of jobs… nearly 100,000 manufacturing jobs have been created in the past four months.

The housing industry is extremely strong, with homeownership at an all-time high, and this is something to be very proud of, as a nation. New and existing home sales remain strong. Also worth noting, housing starts continue at high levels.

When I speak to financial leaders from other parts of the world, they are in awe of how quick and how strong our economic recovery has been. They are taking note of something that is truly unique: the most free market economy in the world.

When we lift the weights that hold it down – like excessive taxation – it soars.

All is not perfect, of course. Americans are now challenged by high oil prices, and far too many still seek work.

We need tax cuts to be made permanent, we need economic growth to continue, and we need the Congress to pass the President's energy policy.

We also need to be ever-mindful of maintaining and increasing our global competitiveness.

America has the best economy in the world, and the best workers in the world. We are limited only by ourselves: our own desire to succeed, and sometimes our own mistakes in the realm of public policy.

It is my opinion as an economist that President Bush is an excellent steward of our economy. I would not have joined his team otherwise.

It is a privilege to serve the country that leads the world in growth – I know how blessed we are to live in a truly free-market economy, and I'm dedicated to keeping it as free, as unencumbered as possible. Because it is our freedom that gives rise to our economic strength.

Thank you for all you do to shine a light on this great economy, and thank you so much for having me here today.