M O B J E C T I V I S T: Abridged

Treasury Secretary Snow gave an online interview recently. I provide a Reader's Digest abridged edition:

Daniel, from Levittown writes:
Dear Mr. Snow -- I read on your web-site that "The American economy is the envy of the world." My wife and I are both teachers and we are expecting our first child in May. My concern is that I have read many reports that a recesion in right around the corner and that school districts will be forced to lay of teachers. Is the Bush ecomomic plan have any provisions that will keep this from happening. Thank you for our service to our country.

John Snow
Hello, Spaniel, and thank you for writing in with your story and this very important question. There is flatly no reason to be worried about a national economic recession in the near future, and I hope I can put your worries to rest.
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Hector, from Chicago writes:
Is there a way to lower natural gas and oil prices? How do we do it? Can we maybe provide more incenitives for oil producers so they give us cheaper gas? Is there a way to decrese the ballooning deficit in the next few years?
John Snow
Hello, Rectum, thanks for these good questions. The energy bill that the President signed this summer made an unprecedented commitment to energy conservation, improved production and efficiency as well as the development of alternative and renewable energy sources such as ethanol and biodiesel fuel. All of these things, over the long term, should help us reduce our dependency on expensive foreign oil. The energy bill was an important first step toward a more affordable and reliable supply of energy for American consumers.
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David, from Rockledge Fl writes:
What short and long term effects could implementing a Flat Tax have on the overall Economy.
John Snow
Your question is very timely, Devil! There is a lot of interest in simplifying our tax code, and the President appointed a panel earlier this year to delve into this issue.
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Jon, from NY, NY writes:
Why am I still left thinking there never was a social security crisis?

John Snow
Well, Joan, that's because the crisis is in the future -- the President brought Social Security to the forefront of the Washington, DC policy agenda because there is a very serious looming crisis for the system.
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Brady, from tennessee writes:
Dear Sir, why do you continue to allow the dollar to be devalued? If the dollar is high than gasoline and other products are cheaper..I know the obvious answer is the trade deficit will be lower because our products overseas are cheaper. It does not matter. we will always have a trade deficit big or small..I suggest increasing the value of the dollar to make gas cheaper here.
John Snow
Brainy, we believe that a strong dollar is in America's national interest. This is a policy that we have had for some time and continue to support.
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Tom, from Dallas writes:
What does the Administration plan to do about the trade deficit? Do you believe the terms of trade must improve. Would solving the energy problem and improving domestic auto prodution help. What are some of the other solutions to conundrum?
John Snow
Hi, Tomb, thanks for writing in today. We are working steadily with our trading partners on this issue. The most important factor leading to our trade deficit is that the U.S. economy has had much higher rates of economic growth ad job creation than our major trading partners over the past decade. In an open economy, like the United States, this means that we have more wealth and freedom to buy products from all over the world -- and Americans use a higher proportion of that wealth and freedom to purchase imports. Our major trading partners -- Japan and Europe in particular -- have grown slowly or not at all for much of the past decade, and their economies are not as open to imports as is the United States. Our trading partners have a responsibility to put in place pro-growth policies that will lead to strong growth and therefore enable them to purchase more goods and services from American producers, which will help bring trade more into balance.
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Kristina, from Loretto, PA writes:
Secretary Snow,Is there a real estate bubble in the economy right now?

Thanks KrispyKreme
John Snow
While we should always be on guard for "bubbles" or areas where economic activity doesn't correspond with underlying economic fundamentals -- as was the case with stock market bubble of the late 1990s.
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Taylor, from Kentucky writes:
what is it like being secretary of the treasury,also working for thepresident?
John Snow
Thanks for writing today, Trailer. Being Treasury Secretary is a truly great honor.
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jaxon, from sherman oaks, ca writes:
who decides which figure's picture goes on the money
John Snow
Hello, Jockson, thanks for this question. There are a lot of interesting facts about our nation's currency that might interest you at www.moneyfactory.gov -- I encourage you to check it out.
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adam, from studio city writes:
why did you take away the two dollar bill?

John Snow
Thanks for this interesting question, Adman. But actually, the $2 note hasn't gone away at all.
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Cliff, from Brimfield, Ohio writes:
Secretary Snow: What affect has mother nature done to the United States Treasury as a result of all these hurricanes? Short term and Long term.
Thank You
John Snow
Thanks for this important question, Spliff. It's great to hear from a fellow Buckeye.
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John, from Texas writes:
What the excuse for allowing US corporations to cheat on their taxes by having offshore tax havens?
John Snow
Everyone should pay their fair share of taxes. When anyone breaks the law to avoid paying taxes it hurts all of us. Rest assured that the Treasury Department is committed to enforcing penalties for tax evasion.
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Emily, from Woodlake CA. writes:
I've heard that the economy is falling but to me it seems to be raising.
Is that true? Thanks "Emmy"

John Snow
Hi, Enema, and thanks for writing in with this important question. The U.S. economy has endured a number of shocks in recent years, and I know that can be worrisome, but the good news is that we've not only survived these shocks, we've recovered wonderfully and our economy is the largest, strongest and most resilient in the world.
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Jacques, from Baltimore, Maryland
writes:
Mr.Secretary,First and foremost, I'd like to thank you for taking the time out of your busy schedule to discuss the economy with the american people. This is a vital discussion at a crucial time. I have three questions for you. What are some of the positive actions the Bush administration is taking to strenghten our economy in 2006. Some have argued that the budget deficit (National Debt) and the ongoing war in Iraq have adversely impacted the economy. What's your take on that? Do you see a more vibrant economy in the upcoming year. The president had promised to cut the budget deficit in half in five years. Do you think that's feasible?
I look foward to your reply.
Once again, thanks for discussing the state of the economy with us.
John Snow
Thank you for writing in today, Jockstrap. All of your questions are good!
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Jessica, from Gardner, MA writes:
I would like to know why the government is so insistant that the economy is fine? Gas, heating oil and electric prices are outrageous, there is no enforcement on cost of living raises and there is NO extra money.
Please explain to me on how the economy is "strong". Thank you

John Snow
Hi, Dessicant, thanks for participating in "Ask the White House!" My answer to Enema's question, earlier, addressed a lot of your concerns about the economy (which is doing very well -- growing and creating jobs at a terrific rate), but I do want to address your concern about energy costs.
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daniel, from westport, ct
writes:
Can you tell me how much of the excess Social Security payroll taxes -- payroll taxes collected by the government but not spent on benefits -- have been spent on government operations in the past five fiscal years?
And if Social Security is facing a crisis, why were those funds spent on government operations?

John Snow
Thanks for this terrific question, Damnyou. The total amount of Social Security surpluses that have been spent on other programs is at $1.7 trillion today.
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shirley, from ohio writes:
a lot of us voters believe Greenspan is hurting the ecomomy with interest hikes. President Bush nominates another man who says he'll continue Greenspan's policy of hiking interest rates. how are we failing to see that interest rate hikes are helping the economy?
John Snow
Greetings to my fellow Buckeye, Churlish. Thanks for your question.
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Kate, from Ohio writes:
We are all lulled into a false sense of security and most of us are shielded from the truth about the economy. Why doesn't the administration tell the people the truth, don't we all deserve that?
Isn't that part of the American Dream that millions of people strive to accomplish? The purpose of the government is to keep us, the people, informed, is it really that hard to just tell us the truth even if it is not what we want to hear?
John Snow
Thanks for joining us on "Ask the White House" today, Kite. Don't forget that America also has the largest economy in the world and deficits as a percentage of GDP is the more important measure.
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Daniel, from Lakeville, CT writes:
How much impact will the many hurricanes this season have on economic growth? Thank you.
John Snow
As I mentioned to Spliff earlier, the storms likely took away from economic wealth in the third quarter, and we've already seen the impact in terms of lost jobs, but I am optimistic that rebuilding efforts will restore lost GDP by the first quarter of next year.
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John Snow

Thanks to everyone for all these wonderful questions. It's always a pleasure to be on "Ask the White House" and I look forward to our next online discussion!