U.S. Secretary Elaine L. Chao

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Remarks as prepared

Remarks to
National Association of Wholesaler-Distributors National Conference
Washington, D.C.
January 28, 2003

Thank you, Bob. I’m delighted to be here this afternoon.

This Executive Summit meets during an exciting time in Washington. A new majority runs Congress. New legislative priorities are at the top of the agenda. And tonight, President George W. Bush will present his vision for securing America’s future, both here at home and around the world.

I won’t give any secrets from the speech… you’ll have to watch for yourselves… but I can tell you this: I think you are going to like what you are going to hear.

The president’s State of the Union address is a blueprint to build a stronger, more prosperous economy. It envisions an economy fueled by lower taxes, less burdensome government regulations, and the entrepreneurial spirit.

And that is good news for the men and women working in the country’s warehouses.

President George W. Bush shares the plain-speaking, hard-working values of America’s wholesaler-distributors.

Over the years, your association and its “family” of 40,000 members have advanced real-world solutions to everyday challenges. They are the kind of solutions this president believes in, and we want to thank you for your hard work and support.

When the president proposed the most comprehensive tax relief package in decades, you were there. When we returned common sense to workplace regulations—particularly the ruling on ergonomics—you were with us.

And when the Administration made the case for affordable, accessible health care through Association Health Plans, you were right there again. You took the lead in proposing real-world solutions to improve the lives of the American people.

This Administration knows that you are one of the lynchpins of our nation’s economy.

From small family-run operations to Fortune 500 companies, wholesalers house and distribute the goods that America and the world rely upon.

And that’s why your association is respected in Washington, and especially by this Administration.

In fact, your president Dirk Van Dongen is so well-known at the White House that President George W. Bush has given him a special nickname… “Dirkus.”

Not everyone is given a nickname by the president. It’s a reflection of the trust and esteem the president has for Dirk and your association.

Now President George W. Bush needs your help again to push through his new economic growth proposals.

As you know, he has proposed a bold economic plan that will usher in a new era of investment, innovation, and integrity.

It is the right plan at the right time for America.

Thanks to his 2001 tax relief package, we experienced one of the shortest and shallowest recessions in modern American history.

In 2002, his historic free trade agreement, terrorism insurance, and tough corporate governance reforms propelled our economy forward despite the damage done by September 11^th and corporate scandals.

As a result, our country today is coming out of recession and on the road to economic recovery.

Nationwide, incomes are rising faster than inflation. Interest rates are the lowest in thirty-seven years. Productivity of American workers—the most important indicator of economic strength—rose to an astounding 5.6 percent over the last four measured quarters. That’s the best showing since 1972.

This is all great news.But you and I know that more needs to be done.

Which is why the President is focusing on both short-term and long-term actions.

President George W. Bush does not look at tomorrow’s Dow or next quarter’s corporate profits for his compass. He’s looking beyond “quick fixes” to policies that will create the long-term foundation for sustained economic growth.

Most of you know the details of the president’s plan—but here are a few highlights:

First, the president puts the tax cuts planned for 2004, 2006, and 2009 in effect immediately. As he said, “if tax relief is good enough for Americans three years from now, it is good enough for them today.”

In particular, he is killing the “death tax” once and for all.

Second, his plan eliminates the double taxation on stock market dividends. This tax relief will be felt throughout the entire economy. It will give nearly 35 million Americans more of their own money to spend and invest. And it will pump as much as $20 billion this year into the economy.

Third, his economic growth plan will strengthen incentives for small businesses to expand and create jobs. That’s so important because small businesses are the engine of job creation in this country.

As you know, current tax laws permit you to write off as expenses up to $25,000 worth of equipment purchases. The president’s plan would triple that to $75,000. This will give you greater confidence to make purchases of technology, machinery, and other equipment now.

In short, this Administration is doing everything possible to put more money into the pockets of the American taxpayers, to help create jobs and to make it more attractive for people to invest.

Of course, there are times when working families need some extra help, especially when they’re out of work.

As the president has said, one worker out of work is one too many.

That’s why President George W. Bush has proposed Personal Re-employment Accounts for at-risk dislocated workers.They will provide unemployed workers who qualify with an additional $3,000 to learn new skills and to purchase other benefits to speed re-entry into the job market.

It is a whole new approach to helping dislocated workers get back on their feet. By providing choice and flexibility, we get people back into steady, good-paying jobs.

This is President Bush’s trademark: common-sense solutions to everyday challenges.

And we are implementing his vision and common-sense approach at the Department of Labor.

Our team is moving ahead to bring the Department’s culture and regulatory policies into line with today’s workplace realities.

We’re modernizing the nation’s labor laws, beginning with the white-collar exemptions under the Fair Labor Standards Act. This is the core set of regulations that determines who is eligible for overtime. They haven’t been updated in nearly 30 years.It’s so difficult to interpret the out of date and ambiguous rules that they generate more class action lawsuits in the workplace than anti-discrimination laws. We’re going to change that by bringing these regulations into conformity with the realities of the 21^st century workplace.

This is just part of our effort to modernize our regulatory agenda. We’ve trimmed our regulatory agenda of overly burdensome, ineffective and nonsensical regulations by nearly one-third. We strongly believe that the best way to protect workers is to help employers and employees work together to achieve safety in the workplace and not just come in after the fact with citations. We will not hesitate to use the hammer of enforcement for those who deserve it. Ensuring that our regulations are relevant and understandable will help provide a safer workplace and avoid costly and lengthy lawsuits.

After all, our mission is to protect workers and their wages, not fill the coffers of trial-lawyers!

And you and I know how important it is for employers to provide accessible and affordable health care to hard-working employees. Association Health Plans are one of the best ways to do that. With your help we’re going to get it done!

Finally, the Department has tackled head-on one of the most hotly debated workforce issues around—ergonomics.

We’ve taken a common-sense approach that will encourage compliance, not litigation.

Our ergonomics initiative is based on the principle that the best way to deliver more worker protection now is through employer and employee outreach and education. Years of contentious rulemaking, slowly winding through the courts, does little to help workers and employers today.

On all these issues, you can trust President George W. Bush and his Administration to make the tough decisions to do what is best for America’s future.

As the President reminds us, however, government can only do so much.

There are intangible assets that are as important to the fabric of the American economy—as the size of the GDP.

Those intangibles are trust and integrity. Trust is the foundation of the free enterprise system.

You know better than anyone that trust cannot be legislated or earned overnight. It takes time, steadiness of character and the goodwill that comes from pursuing a principled course. We must rebuild the public’s trust in the nation’s economic institutions before consumer confidence can be fully restored.

The President has provided us with tremendous leadership on this issue.According to a recent poll, over 80% of Americans trust President George W. Bush to say what he believes. From experience, I know that to be true. We can count on him to look us in the eye and tell us what needs to be done. That’s why the president’s new economic package needs to be passed through the Congress.

I look forward to working with you to win passage of the President’s package. It’s key to revitalizing our economy and to ensuring the economic security of our nation. That’s not only good for your businesses, but for your families and for our country.

Thank you for inviting me for being here today. And God bless America.

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