U.S. Secretary of Commerce Donald L. Evans
Remarks for Transforming Enterprise Conference
(as prepared for delivery)
January 28, 2003
Washington, DC
Thank you. Welcome to the Commerce Department – and the second day of our Transforming Enterprise Conference. As Phil [Bond] mentioned, I’m the second engineer to serve as Secretary of Commerce. The first was Herbert Hoover. He went on to be President. I’ve already told President Bush not to worry! I love the job I have.
It is a real privilege to be able to serve this President – I’ve known him for a long time ... he’s an extraordinary person and an extraordinary leader. And it’s a real privilege to serve this great nation, to be a public servant.
We are all called to serve something greater than ourselves. We also have a responsibility to ensure that each and every man and woman has the opportunity to achieve the American dream. It’s a universal dream, really, the dream of peace and prosperity for our families, our communities, our countries.
I want to take a moment here to thank all of you for your contributions to this effort, here in America ... and around the globe.
Technology is transforming lives. We’ve gone from a world that used to be connected by airport terminals to a world that is connected by computer terminals. And with the explosion of information technology has come a fundamental shift in productivity. IT-intensive industries contributed to the positive productivity growth during 2001 [1.1%]. And for the first three quarters of 2002, productivity growth climbed at an unusually robust pace of about 5%. In addition, IT-intensive industries continue to greatly contribute to slow price growth, tempering overall inflation.
Everywhere I go, I see the difference that technology is making: helping window manufacturers in Paducah be more productive and efficient … giving graduate students at Notre Dame access to all the information on the worldwide web.
As policymakers, it’s important for us to understand the transformations taking place in our society so we can craft information-age policies nationally and internationally. To me, it boils down to government’s fundamental role ... creating the conditions for growth.
When we do this, a spirit of competition takes hold, leading to more innovation ... which leads to greater productivity ... which leads to more economic growth ... which leads to a better quality of life ... which leads to a world that lives in peace and prosperity.
Clearly, it begins with education. That is the first condition for growth. You cannot have a successful information economy without an educated workforce. And every American child is capable of being part of an information workforce. That’s why this President’s very first act was the Leave No Child Behind education legislation. An educated workforce is necessary to compete in this global economy.
The second condition is a vibrant entrepreneurial sector ... with people ready to innovate, take risks and compete. Toward that end, this administration has proposed record amounts of R&D funding to support continued innovation and scientific discovery at our universities and federal labs.
But it’s the private sector, entrepreneurs, who move discoveries from the lab to the marketplace. And when they do that they take a risk. That’s why the President’s growth and jobs package proposes to make equity financing more available to entrepreneurs. The President’s plan would eliminate penalties on some productive investments ... such as the double tax on dividends. And it will triple the tax write-off for equipment purchases from $25,000 to $75,000 ... an incentive for small businesses run by those entrepreneurs to expand and hire. This also should increase opportunities for industries that produce IT hardware and software.
The President has offered a bold plan to deal with a big challenge. The plan would provide $674 billion in tax relief over 10 years. Nearly $56 billion would come in 2003. Those are pretty modest amounts for a $10-trillion-a-year economy ... over $100 trillion for ten years. The key is that the money goes where it will do the most good.
We need to keep this economy moving ahead. And we urgently need more job creation. We won’t be satisfied until every American who wants a job has a job.
Having just returned from the World Economic Forum in Switzerland, I can tell you the entire global community is looking to America to increase our growth rate. And I can also tell you this: this President is focused on growth ... and has been from day one … from the education bill … to the tax cut ... to the stimulus bill of last year ... to the growth and jobs package of this year.
And we know that technology is key to a prosperous and productive future.
I think Congress understands this and I hope members in both parties work together to quickly move the President’s growth and jobs package forward.
I’m confident that with strong Presidential leadership, with spending discipline, with pro-growth policies ... and with a vibrant and innovative private sector ... we will expand the economy and help create more jobs. And I’m equally confident that the people in this room and throughout the tech industry will continue to play a critical role.
So, let’s get on with it.
Thank you and God bless you.