THE PRESIDENT: Good morning. This week, the Commerce Department reported
that GDP grew at an annual rate of six-tenths of a percent in the first
quarter. This rate of growth is not nearly as high as we would like. And
after a record 52 months of uninterrupted job growth, April was the
fourth month in a row in which our economy lost jobs, although the
unemployment rate dropped to five percent.
My Administration has been clear and candid on the state of the economy.
We saw the economic slowdown coming, we were up front about these
concerns with the American people, and we've been taking decisive action.
In February, I signed an economic growth package to put more than $150
billion back into the hands of millions of American families, workers,
and businesses. This week, the main piece of that package began being
implemented, as nearly 7.7 million Americans received their tax rebates
electronically. Next week, the Treasury Department will begin mailing
checks to millions more across the country. And by this summer, it
expects to have sent rebates to more than 130 million American
households. These rebates will deliver up to $600 per person, $1,200 per
couple, and $300 per child.
This package will help American families increase their purchasing power
and help offset the high prices that we're seeing at the gas pump and
the grocery store. It will also provide tax incentives for American
businesses to invest in their companies, which will help create jobs.
Most economic experts predict that the stimulus will have a positive
effect on the economy in this quarter and even a greater impact in the
next. And Americans should have confidence in the long-term outlook for
our economy.
While getting more money back in the hands of Americans is a good start,
there are several additional steps that Congress needs to take to ease
the burdens of an uncertain economy. Americans are concerned about
energy prices. To increase our domestic energy supply, Congress needs to
allow environmentally safe energy exploration in northern Alaska, expand
America's refining capacity, and clear away obstacles to the use of
clean, safe nuclear power.
Americans are concerned about rising food prices. Yet, despite this
growing pressure on Americans' pocketbooks, Congress is considering a
massive farm bill. Instead, they should pass a fiscally responsible bill.
Americans are concerned about making their mortgage payments and keeping
their homes. Yet Congress has failed to pass legislation I have
repeatedly requested to modernize the Federal Housing Administration
that will help more families stay in their homes, reform Fannie Mae and
Freddie Mac to ensure they focus on their housing mission, and allow
state housing agencies to issue tax-free bonds to refinance sub-prime
loans.
Americans are concerned about their tax bills. With all the other
pressures on their finances, American families should not have to worry
about the Federal government taking a bigger bite out of their
paychecks. So Congress should eliminate this uncertainty and make the
tax relief we passed permanent.
America is now facing a tough economic period, but our long-term outlook
remains strong. This week we saw evidence that our economy is continuing
to grow in the face of challenges. This should come as no surprise. No
temporary setbacks can hold back the most powerful force in our economy –-
the ingenuity of the American people. Because of your hard work and
dedication, I am confident that we will weather this rough period and
emerge stronger than ever.
Thank you for listening.
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