FROM THE OFFICE OF PUBLIC AFFAIRS

September 17, 2004
JS-1927

The Honorable John W. Snow
Prepared Remarks
Following Roundtable on Workforce Development and Retraining
Hondros College
Westerville, OH
September 16, 2004

Thank you for having me here today; it is always a pleasure to come home to Ohio.

And I'm delighted to be here at Hondros College to talk with you all about workforce development and retraining. You're doing great work here at Hondros, and that means so much to your students, but it also means a lot to your local, state and national economies.

When I became Treasury Secretary, I never thought that I'd be spending so much time on education and health care, but those are clearly the two issues driving the future of our economy.

But before I talk about how to achieve a strong economy in the future, I want to share with you some news about the present state of our country's economy, and some perspective on where we came from to get here.

Just a few short years ago, this great nation suffered some devastating economic blows. The President inherited an economy in steep decline. The stock market bubble had been pierced. And then we were hit by the horror of September of 11^th and the need to fight a war unlike any that has ever been waged. Corporate scandals involving reprehensible behavior by CEOs shook confidence in our markets, and those events literally kicked us while we were down.

As a manufacturing state, Ohio was hit especially hard by those difficult economic times. There is nothing harder on an individual and a family than losing a job and having trouble finding a new one. I appreciate what you are going through, what you have been through, and I know that it hasn't been easy. I also know that new jobs cannot come soon enough for the people of Ohio.

We are fortunate as a country because there has been good economic news on the national level. We've seen 12 consecutive months of job creation, with new jobs having been created for 1.7 million Americans, according to the Department of Labor's Bureau of Labor Statistics (BLS). Another BLS survey shows job gains at 2.4 million… and I imagine the real number is somewhere between those two. Since August 2003, employment has increased in 47 states and unemployment rates have decreased in 45 states. GDP growth has been strong, and homeownership has reached record highs.

The signs are very promising, but there is no doubt that there is more to do. That's why this Administration is committed to the President's pro-growth policies that will keep our economy moving forward.

It is critical that we persevere because Ohio needs some good news. You've had a net gain of nearly 12,000 new jobs since January, but it hasn't been enough, and gains haven't been as steady as we'd like.

Much remains to be done. We need to return Ohio to its rightful prosperity. I remember when Ohio was a Mecca for jobs and it drew people from all across the country. I want those days to return.

While I was in Cincinnati yesterday, I was pleased to learn that 57 percent of employers in that area are planning on hiring new employees in the upcoming months, according to a Manpower, Inc. survey released this week. I was very encouraged by this news, and I believe it indicates that better times are ahead for Ohio workers.

I think Ohio should also take pride and confidence in your outstanding homeownership rate: 72.8 percent of Buckeyes own their own homes, and that's terrific news.

So I am optimistic that times will get better in Ohio. You will not be left behind; the U.S. economy is too strong for that and Ohio's workers and businesses have a long tradition of excellence and success. We're going to keep growing as a country, and Ohioans will be part of that growth.

As of today, more than 4.4 million taxpayers in Ohio will have lower income tax bills in 2004 thanks to the President's tax cuts. Nearly 860,000 of Ohio's business taxpayers, like you, can use your tax savings to invest in new equipment, hire additional workers, and increase pay.  This tax relief is helping, and we need to make it permanent so it can continue to provide oxygen to your state's economy.

We also need to reduce the amount and cost of frivolous lawsuits and make health insurance more affordable. We need fundamental reform of our tax code that makes it simpler and fairer – a code that encourages economic growth and job creation. We've also got to have an energy policy that keeps costs low, reduces dependence on foreign oil and creates jobs for American workers.

But our biggest challenge today, the most important adjustment we can make, is in the area of education.

I am often asked: what is the most important thing I can do, as Treasury Secretary, to strengthen the American economy? And I think that people appreciate the economic significance of tax cuts... but it strikes me that this question is even better answered by Education Secretary Rodney Paige. For nothing will have a bigger, more lasting impact on the American economy than educating and preparing America's workforce for the jobs of today and tomorrow. Primary, secondary and continuing education - for generations to come - are by far the most important efforts toward achieving continued economic prosperity.

The American workforce must be more flexible than ever before in order to remain competitive. We all must dedicate ourselves to a lifetime of learning if we are to keep up with our incredibly dynamic entrepreneurial, job-creating sector.

All over America, jobs are going begging because prospective employees lack the requisite skills.

It therefore makes sense that we should take an entrepreneurial approach to the challenge. That's exactly what you are doing here at Hondros College.  Your curriculum is relevant to local employment opportunities and the education your graduates take with them is increasing their earning potential considerably. This is how our workforce investment system should work, and it is the President's goal to have it work this way all across America.

I commend you for the fine work you and your students are doing here at Hondros. Working together, we will bring Ohio's economy back to its rightful prosperity.

Thank you.