Good morning. This week, we received some encouraging news on the economy.
The nation's economy grew faster than expected in the second quarter. Manufacturers
are receiving more orders and their inventories need to be replenished, home
builders are busy meeting near-record demand, and retailers report that consumers
are buying more goods. Many economists expect that growth will accelerate
in the coming months.
Yet this week's employment report also shows that many Americans who want
to work are still having trouble finding a job. My administration is acting
to promote faster growth to encourage the creation of new jobs. The key to
job growth is higher demand for goods and services. With higher demand, businesses
are more likely to hire new employees.
The best way to promote growth and job creation is to leave more money in
the pockets of households and small businesses, instead of taxing it away.
So we lowered income tax rates, cut taxes on dividends and capital gains,
reduced the marriage penalty and increased the child tax credit. This week,
the checks for up to $400 per child started arriving in the mailboxes of
American families. That money will help American families move the economy
We have also taken action to help small businesses, who are the job creators
of America. We increased tax incentives for equipment purchases, giving small
businesses an additional reason to invest. More orders for machinery and
equipment means more jobs. And more business investment can lead to greater
worker productivity, which helps raise worker wages.
We are starting to see results from our actions. My administration's economists
believe that if we had not passed tax relief, our unemployment rate would
have been nearly one percentage point higher, and as many as 1.5 million
Americans would not have the jobs they have today.
This week, three members of my Cabinet -- Treasury Secretary John Snow,
Commerce Secretary Don Evans, and Labor Secretary Elaine Chao -- visited
business owners and their workers in the Midwest. They received reports that
the economy is picking up.
Last month I met with Mike Gendich, who owns a part-making company in Michigan
called Metalmite. Mike's customers are keeping him busier than he has been
in three years, giving him reason to hire three new workers. Tax relief has
given him reason to invest in new equipment, to keep those workers productive.
In Mike's words, tax relief, "can be the difference between making an
investment or not." When small business owners like Mike make new investments,
that can also be the difference between someone finding work or not.
Tax relief is one part of my aggressive, pro-growth agenda for America's
economy. We're negotiating free trade agreements with countries to create
new markets for products made in America. Congress needs to pass a sound
energy bill to ensure our nation has reliable, affordable supplies of energy.
And Congress needs to let small businesses join together to purchase affordable
health insurance for their employees. We need legal reform to stop the frivolous
lawsuits that are a drag on our economy. We have pushed Congress to make
the child credit refundable for lower-income families. And we're working
to control spending in Washington, D.C., so that government spending does
not rise any faster than the average household budget is expected to grow
America's economy has challenges, and I will not be satisfied until every
American looking for work can find a job. By steady, persistent action, we
are preparing the way for vigorous growth and more jobs. I have confidence
in our economic future, because I have confidence in the people whose effort
and creativity make this economy run -- the workers and the entrepreneurs