19 October 2001

Treasury Secretary O'Neill on U.S. Economic Recovery

U.S. Secretary of the Treasury Paul O'Neill believes that signs of economic recovery have appeared in the U.S. but warns that its economic health will depend on whether consumers regain confidence in the economy and the success and cost-effectiveness of new protections against future terrorist acts.

In a statement issued October 19 at the White House following a meeting with business leaders, O'Neill urged Congress to speed the implementation of income tax cuts and pass a bill giving the President authority to negotiate trade agreements that Congress would have to pass within strict time limits and without amendments, or reject.

These two congressional actions, he said, would be "an effective battle plan to assure that our economy can support our efforts to engage an enemy the like of which we have never seen before."

Following is the text of O'Neill's statement:

The terrorist attacks of September 11 sent shockwaves through our economy. But we will recover. This nation, its people, and its economy will continue to excel.

How quickly our economy recovers will depend in large part on how fast consumers regain their confidence and on our success in incorporating new protections against possible terrorist acts without material reductions in productivity.

We are seeing concrete signs that we are beginning to regain our economic footing. Consumers are returning to the stores, airline usage is increasing and there are buyers again for `big ticket' goods such as automobiles.

And we are working with Congress on a tax relief package to support our recovery. The House will vote next week on a bill that includes all the elements the President has called for to restore consumer spending, boost business investment and help those directly affected by the September 11 attacks. To boost spending and investment, he has asked Congress to speed the implementation of the income tax rate cuts enacted this spring. He has asked the Congress to accelerate the expensing of business investment and eliminate the corporate AMT. He has also asked Congress to provide tax relief to low and middle-income Americans.

The final piece of President's economic recovery plan is expanding global trade. As I've said before, our world is more interconnected than we realize. At no time is that more obvious than now, as the President builds an international coalition to take on terrorism. The President must have Trade Promotion Authority so that the United States can continue to lead the world in a global effort to increase the flow of goods, services, knowledge and ideas that improve living standards here and around the world.

Together, Trade Promotion Authority and the economic growth package we are currently negotiating with Congress are an effective battle plan to assure that our economy can support our efforts to engage an enemy the like of which we have never seen before. We'll work with the Congress to speed a return to economic strength, proving that no terror can destroy America's prosperity.