Offering comfort to an area hit hard by the recession, President Bush on Tuesday outlined to Silicon Valley businesspeople how his tax-reduction policies and corporate-friendly reforms could improve the economy.
Appearing at a downtown convention hall during a fundraising swing through the state for Republican gubernatorial nominee Bill Simon, Bush recapped his administration’s successes on a broad array of issues in his 30-minute address to two local groups, the Commonwealth Club and the Churchill Club.
Noting figures released last week indicating the economy grew 5.8 percent during the first quarter of 2002, Bush said that much work is still needed.
Unemployment up
Unemployment in Santa Clara County, the home to Silicon Valley, rose to 7.4 percent in March from 2.2 percent a year ago, while the number of high-tech consulting jobs during that same period declined 17.4 percent, according to the California Employment Development Department.
“Business investment and job creation are not what they should be,” Bush said.
“We cannot be content with one quarter’s news. We cannot be complacent,” he added. “So long as somebody who wants to work can’t find work, that’s a problem for America.”
Touching on common Republican themes, Bush called for less government regulation of business, for “stable and affordable” sources of energy, and for making the lower tax rates approved last year permanent, saying they will spur growth and create jobs.
Bush also pressed the Senate to pass so-called fast-track negotiating authority, which would give him more power to forge international trade agreements. The House passed the legislation late last year.
“Our economy grows when trade barriers fall,” Bush said.
“I’m confident in the ability of American entrepreneurs and producers to compete in the world. I’m confident that our farmers and ranchers can compete in the world. And I know American technology companies are the best in the world,” he said. “We must open markets so they can sell in the world.”
Audience members, many of whom represent major technology companies, greeted Bush’s remarks with enthusiastic applause.
“I’m interested in having less [government] regulation and less litigation,” said Ray Zinn, chief executive officer of San Jose-based Micrel Semiconductors in San Jose.
“Government should become more a partner with business and less an adversary, like it was with Microsoft,” he added. “Government should act more cooperatively with business, like it does in Japan.”
Saying he doesn’t believe in a “sink-or-swim” society, Bush also discussed his social policies aimed at boosting education and moving more people from the welfare rolls and into jobs.
One long-standing problem expressed by Silicon Valley businesses has been the lack of qualified candidates to fill job openings in high-tech fields. Many have sought employees from other countries, using the federal H-1B visa program.
Welfare reform law
Congress is expected to begin work in the next few weeks on reauthorization of the welfare reform law, which moved more than 10 million people off the public-assistance rolls during the last five years.
Bush wants states to move 70 percent of their welfare cases into jobs, up from the current 50 percent. He also wants participants to work 40 hours a week, up from 30. States have been critical of the plan because it offers little new money and would force them to spend more of their funds.
But Bush said the nation “must strengthen the work requirements that prevent dependency and despair. Millions of Americans once on welfare are finding that a job is more than a source of income. It is a source of dignity.”
Provision criticized
The president also has faced criticism from some women’s groups and community-based social agencies for a provision of the welfare-reform proposal that would promote marriage among welfare recipients. The opponents equated the provision to social engineering and asserted it would force many women into abusive marriages.
“Not every child has two devoted parents at home, I understand that. And not every marriage can or should be saved. But the evidence shows that strong marriages are good for children,” Bush said.
“When a couple on welfare wants to break bad patterns and start or strengthen a marriage, we should help local groups give them counseling that teaches commitment and respect,” he added.
