While this trend clearly benefits those who began with considerable wealth, it also improved the lot of tens of millions of American workers through their pension funds. Even those with modest investments have seen their wealth grow. With lower inflation, savings in fixed-income securities have maintained their purchasing power. Thus, whether before or after taxes, there is no doubt that the vast bulk of the American people are far better off under a policy of fiscal responsibility in Washington. Unemployment and inflation are at 30 year lows.
Interest rates remain well below the levels of the preceding decade, despite continued growth.
Economic growth has exceeded expectations and inflation-adjusted business equipment investment remains strong. All told, we have a strong foundation for further non-inflationary, sustainable economic expansion. Good news, however, should not lead us to take for granted how much we have achieved or to put at risk our hard won prosperity. Our prosperity is the result of our fiscal discipline, and it would be a mistake to turn back. I would like to first focus on the long term and defining choices for our future.