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THE WHITE HOUSE
O f f i c e o f the Press Secretary
For Immediate Release
January 25, 1994
STATE OF THE UNION ADDRESS
BY THE PRESIDENT
The House of Representatives
9:15
P.M. EST
THE PRESIDENT: Thank you very much. Mr. Speaker, Mr.
President, members of the 103rd Congress, my f e l l o w Americans:
I'm not at a l l sure what speech i s i n t h e TelePrompter
t o n i g h t — (laughter) — but I hope we can t a l k about the s t a t e of
the Union.
I ask you t o begin by r e c a l l i n g the memory of the giant
who presided over t h i s Chamber w i t h such force and grace. T i p
O'Neill l i k e t o c a l l h i m s e l f "a man of t h e House." And he s u r e l y was
t h a t . But, even more, he was a man of t h e people, a b r i c k l a y e r ' s son
who helped t o b u i l d the g r e a t American middle class. T i p O'Neill
never f o r g o t who he was, where he came from, or who sent him here.
Tonight he's s m i l i n g down on us f o r the f i r s t time from the Lord's
G a l l e r y . But i n h i s honor, may we, t o o , always remember who we are,
where we come from, and who sent us here.
(Applause.)
I f we do t h a t we w i l l r e t u r n over and over again t o the
p r i n c i p l e t h a t i f we simply give ordinary people equal o p p o r t u n i t y ,
q u a l i t y education, and a f a i r shot at t h e American Dream, they w i l l
do e x t r a o r d i n a r y t h i n g s .
We gather t o n i g h t i n a world of changes so profound and
r a p i d t h a t a l l nations are t e s t e d . Our American h e r i t a g e has always
been t o master such change, t o use i t t o expand o p p o r t u n i t y a t home
and our l e a d e r s h i p abroad. But f o r too long, and i n t o o many ways,
t h a t h e r i t a g e was abandoned, and our country d r i f t e d .
For 3 0 years, f a m i l y l i f e i n America has been breaking
down. For 2 0 years, the wages of working people have been stagnant
or d e c l i n i n g . For the 12 years of t r i c k l e - d o w n economics, we b u i l t a
f a l s e p r o s p e r i t y on a hollow base as our n a t i o n a l debt quadrupled.
From 1989 t o 1992, we experienced the slowest growth i n a h a l f
century. For too many f a m i l i e s , even when both parents were working,
the American Dream has been s l i p p i n g away.
In 1992, the American people demanded t h a t we change. A
year ago I asked a l l of you t o j o i n me i n accepting r e s p o n s i b i l i t y
f o r the f u t u r e o f our country. Well, we d i d . We replaced d r i f t and
deadlock w i t h renewal and reform. And I want t o thank every one of
you here who heard the American people, who broke g r i d l o c k , who gave
them the most successful teamwork between a President and a Congress
i n 30 years.
(Applause.)
This Congress produced a budget t h a t cut the d e f i c i t by
h a l f a t r i l l i o n d o l l a r s , cut spending and raised income taxes on only
the w e a l t h i e s t Americans. (Applause.) This Congress produced t a x
r e l i e f f o r m i l l i o n s of low income workers t o reward work over
welfare. I t produced NAFTA. I t produced the Brady b i l l , now the
Brady law. And thank you, Jim Brady, f o r being here, and God bless
you, s i r . (Applause.)
MR
OE
�- 2-
This Congress produced t a x cuts t o reduce t h e taxes of
nine out o f 10 small businesses who use the money t o i n v e s t more and
create jobs.
I t produced more research and treatment f o r AIDS, more
childhood immunizations, more support f o r women's h e a l t h research,
more a f f o r d a b l e c o l l e g e loans f o r the middle class; a new n a t i o n a l
service program f o r those who want t o give something back t o t h e i r
country and t h e i r communities f o r higher education; a dramatic
increase i n high-tech investments t o move us from a defense t o a
domestic high-tech economy. This Congress produced a new law, t h e
Motor Voter b i l l , t o help m i l l i o n s o f people r e g i s t e r t o vote. I t
produced Family and Medical Leave.
A l l passed. A l l signed i n t o law w i t h n o t one s i n g l e
veto. (Applause.) These accomplishments were a l l commitments I made
when I sought t h i s o f f i c e . And, i n f a i r n e s s , they a l l had t o be
passed by you i n t h i s Congress.
But I am persuaded t h a t the r e a l
c r e d i t belongs t o t h e people who sent us here, who pay our s a l a r i e s ,
who hold our f e e t t o t h e f i r e .
But what we do here i s r e a l l y beginning t o change l i v e s .
Let me j u s t give you one example. I w i l l never f o r g e t what the
Family and Medical Leave law meant t o j u s t one f a t h e r I met e a r l y one
Sunday morning i n the White House.
I t was unusual t o see a f a m i l y there t o u r i n g e a r l y
Sunday morning, b u t he had h i s w i f e and h i s three c h i l d r e n there, one
of them i n a wheelchair. I came up, and a f t e r we had our p i c t u r e
taken and had a l i t t l e v i s i t , I was walking o f f and t h a t man grabbed
me by the arm and he said, "Mr. President, l e t me t e l l you something.
My l i t t l e g i r l here i s desperately i l l . She's probably n o t going t o
make i t . But because of the Family Leave law, I was able t o take
time o f f t o spend w i t h her — the most important time I ever spent i n
my l i f e — without l o s i n g my j o b and h u r t i n g the r e s t o f my family.
I t means more t o me than I w i l l ever be able t o say. Don't you
people up here ever t h i n k what you do doesn't make a d i f f e r e n c e . I t
does." (Applause.)
Though we are making a d i f f e r e n c e , our work has j u s t
begun. Many Americans s t i l l haven't f e l t the impact o f what we've
done. The recovery s t i l l hasn't touched every community or created
enough jobs. Incomes are s t i l l stagnant; there's s t i l l too much
v i o l e n c e and not enough hope i n too many places. Abroad, the young
democracies we are s t r o n g l y supporting s t i l l face very d i f f i c u l t
times and look t o us f o r leadership. And so t o n i g h t , l e t us resolve
to continue the journey o f renewal; t o create more and b e t t e r jobs;
to guarantee h e a l t h s e c u r i t y f o r a l l ; t o reward work over w e l f a r e ; t o
promote democracy abroad; and t o begin t o reclaim our s t r e e t s from
v i o l e n t crime and drugs and gangs; t o renew our own American
community. (Applause.)
Last year we began t o p u t our house i n order by t a c k l i n g
the budget d e f i c i t t h a t was d r i v i n g us toward bankruptcy. We c u t
$255 b i l l i o n i n spending, i n c l u d i n g e n t i t l e m e n t s , and over 340
separate budget items. We froze domestic spending and used honest
budget numbers.
Led by the Vice President, we launched a campaign t o
r e i n v e n t government.
We c u t s t a f f , c u t perks, even trimmed the f l e e t
of f e d e r a l limousines. A f t e r years o f leaders whose r h e t o r i c
attacked bureaucracy but whose a c t i o n s expanded i t , we w i l l a c t u a l l y
reduce i t by 252,000 people over t h e next f i v e years. By the time we
have f i n i s h e d , t h e f e d e r a l bureaucracy w i l l be a t i t s lowest p o i n t i n
3 0 years. (Applause.)
Because the d e f i c i t was so large and because they
b e n e f i t t e d from t a x cuts i n the 198 0s, we d i d ask t h e w e a l t h i e s t
MORE
�THE WHITE HOUSE
O f f i c e of the Press Secretary
For Immediate Release
January 25, 1994
STATE OF THE UNION ADDRESS
BY THE PRESIDENT
The House of Representatives
9:15
P.M. EST
THE PRESIDENT: Thank you very much. Mr. Speaker, Mr.
President, members of the 103rd Congress, my f e l l o w Americans:
I'm not at a l l sure what speech i s i n the TelePrompter
t o n i g h t — (laughter) — but I hope we can t a l k about the s t a t e of
the Union.
I ask you t o begin by r e c a l l i n g the memory of the giant
who presided over t h i s Chamber w i t h such force and grace. T i p
O'Neill l i k e t o c a l l himself "a man of t h e House." And he surely was
t h a t . But, even more, he was a man of t h e people, a b r i c k l a y e r ' s son
who helped t o b u i l d the great American middle class. T i p O'Neill
never f o r g o t who he was, where he came from, or who sent him here.
Tonight he's s m i l i n g down on us f o r the f i r s t time from the Lord's
Gallery. But i n h i s honor, may we, too, always remember who we are,
where we come from, and who sent us here.
(Applause.)
I f we do t h a t we w i l l r e t u r n over and over again t o the
p r i n c i p l e t h a t i f we simply give ordinary people equal opportunity,
q u a l i t y education, and a f a i r shot at the American Dream, they w i l l
do e x t r a o r d i n a r y t h i n g s .
We gather t o n i g h t i n a world o f changes so profound and
r a p i d t h a t a l l nations are t e s t e d . Our American h e r i t a g e has always
been t o master such change, t o use i t t o expand o p p o r t u n i t y a t home
and our leadership abroad. But f o r too long, and i n too many ways,
t h a t h e r i t a g e was abandoned, and our country d r i f t e d .
For 30 years, f a m i l y l i f e i n America has been breaking
down. For 2 0 years, the wages of working people have been stagnant
or d e c l i n i n g . For the 12 years of t r i c k l e - d o w n economics, we b u i l t a
f a l s e p r o s p e r i t y on a hollow base as our n a t i o n a l debt quadrupled.
From 1989 t o 1992, we experienced the slowest growth i n a h a l f
century. For too many f a m i l i e s , even when both parents were working,
the American Dream has been s l i p p i n g away.
In 1992, the American people demanded t h a t we change. A
year ago I asked a l l of you t o j o i n me i n accepting r e s p o n s i b i l i t y
f o r the f u t u r e of our country. Well, we d i d . We replaced d r i f t and
deadlock w i t h renewal and reform. And I want t o thank every one of
you here who heard the American people, who broke g r i d l o c k , who gave
them the most successful teamwork between a President and a Congress
i n 3 0 years.
(Applause.)
This Congress produced a budget t h a t cut the d e f i c i t by
h a l f a t r i l l i o n d o l l a r s , cut spending and raised income taxes on only
the w e a l t h i e s t Americans. (Applause.) This Congress produced t a x
r e l i e f f o r m i l l i o n s of low income workers t o reward work over
welfare. I t produced NAFTA. I t produced the Brady b i l l , now the
Brady law. And thank you, Jim Brady, f o r being here, and God bless
you, s i r . (Applause.)
MR
OE
�- 3 -
Americans to pay more to reduce the d e f i c i t . So on A p r i l 15th, the
American people w i l l discover the truth about what we did l a s t year
on taxes. Only the top 1 — (applause) — yes, l i s t e n — the top 1.2
percent of Americans, as I said a l l along, w i l l pay higher income tax
rates. Let me repeat — (applause) — Only the wealthiest 1.2
percent of Americans w i l l face higher income tax rates and no one
else w i l l . And that i s the truth.
(Applause.)
Of course, there were, as there always are in p o l i t i c s ,
naysayers who said t h i s plan wouldn't work. But they were wrong.
When I became President the experts predicted that next year's
d e f i c i t would be $300 b i l l i o n . But because we acted, those same
people now say the d e f i c i t i s going to be under $180 b i l l i o n — 40
percent lower then was previously predicted. (Applause.)
Our economic program has helped to produce the lowest
core i n f l a t i o n rate and the lowest interest rates i n 2 0 years. And
because those interest rates are down, business investment and
equipment i s growing at seven times the rate of the previous four
years; auto sales are way up; home sales are at a record high.
Millions of Americans have refinanced t h e i r homes, and our economy
has produced 1.6 million private sector jobs in 1993 — more than
were created i n the previous four years combined. (Applause.)
The people who supported t h i s economic plan should be
proud of i t s early r e s u l t s . Proud. But everyone i n t h i s chamber
should know and acknowledge that there i s more to do.
Next month I w i l l send you one of the toughest budgets
ever presented to Congress.
I t w i l l cut spending in more than 300
programs, eliminate 100 domestic programs, and reform the ways in
which governments buy goods and services. This year we must again
make the hard choices to l i v e within the hard spending c e i l i n g s we
have s e t . We must do i t . We have proved we can bring the d e f i c i t
down without choking off recovery, without punishing seniors of the
middle c l a s s , and without putting our national security at r i s k . I f
you w i l l s t i c k with t h i s plan, we w i l l post three consecutive years
of d e c l i n i n g d e f i c i t s for the f i r s t time since Harry Truman lived in
the White House. And once again, the buck stops here.
(Applause.)
Our economic plan also bolsters our strength and our
c r e d i b i l i t y around the world. Once we reduce the d e f i c i t and put the
s t e e l back into our competitive edge, the world echoed with the sound
of f a l l i n g trade b a r r i e r s . In one year, with NAFTA, with GATT, with
our e f f o r t s i n Asia and the National Export Strategy, we did more to
open world markets to American products than at any time i n the l a s t
two generations.
That means more jobs and r i s i n g l i v i n g standards for the
American people; low d e f i c i t s ; low i n f l a t i o n ; low i n t e r e s t rates; low
trade b a r r i e r s and high investments. These are the building blocks
of our recovery. But i f we want to take f u l l advantage of the
opportunities before us in the global economy, you a l l know we must
do more.
As we reduce defense spending, I ask Congress to invest
more i n the technologies of tomorrow. Defense conversion w i l l keep
us strong m i l i t a r i l y and create jobs for our people here at home.
(Applause.)
As we protect our environment, we must invest in the
environmental technologies of the future which w i l l create jobs.
This year we w i l l fight for a r e v i t a l i z e d Clean Water Act and a Safe
Drinking Water Act and a reformed Super fund program. And the Vice
President i s right — we must also work with the private sector to
connect every classroom, every c l i n i c , every library, every hospital
in America into a national information super highway by the year
2000.
(Applause.)
MORE
�- 4 -
Think of i t — i n s t a n t access t o i n f o r m a t i o n w i l l
increase p r o d u c t i v i t y , w i l l help t o educate our c h i l d r e n . I t w i l l
provide b e t t e r medical care. I t w i l l create j o b s . And I c a l l on the
Congress t o pass l e g i s l a t i o n t o e s t a b l i s h t h a t i n f o r m a t i o n super
highway t h i s year.
(Applause.)
As we expand o p p o r t u n i t y and create jobs, no one can be
l e f t out. We must continue t o enforce f a i r l e n d i n g and f a i r housing
and a l l c i v i l r i g h t s laws, because America w i l l never be complete i n
i t s renewal u n t i l everyone shares i n i t s bounty.
(Applause.)
But we a l l know, t o o , we can do a l l these t h i n g s — put
our economic house i n order, expand world t r a d e , t a r g e t the jobs of
the f u t u r e , guarantee equal o p p o r t u n i t y — but i f we're honest, w e ' l l
a l l admit t h a t t h i s strategy s t i l l cannot work unless we also give
our people the education, t r a i n i n g and s k i l l s they need t o seize the
o p p o r t u n i t i e s of tomorrow. (Applause.)
We must set tough, world-class academic and occupational
standards f o r a l l our c h i l d r e n and give our teachers and students the
t o o l s they need t o meet them. Our Goals 2000 proposal w i l l empower
i n d i v i d u a l school d i s t r i c t s t o experiment w i t h ideas l i k e c h a r t e r i n g
t h e i r schools t o be run by p r i v a t e corporations, or having more
p u b l i c school choice — t o do whatever they wish t o do as long as we
measure every school by one high standard: Are our c h i l d r e n l e a r n i n g
what they need t o know t o compete and win i n the g l o b a l economy?
(Applause.)
reforms.
Goals 2000 l i n k s world-class standards t o grass-roots
And I hope Congress w i l l pass i t w i t h o u t delay.
Our School t o Work I n i t i a t i v e w i l l f o r the f i r s t time
l i n k school t o the world of work, p r o v i d i n g a t l e a s t one year of
apprenticeship beyond high school. A f t e r a l l , most of the people
we're counting on t o b u i l d our economic f u t u r e won't graduate from
c o l l e g e . I t ' s time t o stop i g n o r i n g them and s t a r t empowering them.
(Applause.)
We must l i t e r a l l y transform our out-dated unemployment
system i n t o a new reemployment system. The o l d unemployment system
j u s t s o r t of kept you going w h i l e you waited f o r your o l d j o b t o come
back. We've got t o have a new system t o move people i n t o new and
b e t t e r jobs because most of those o l d jobs j u s t don't come back. And
we know t h a t the only way t o have r e a l job s e c u r i t y i n the f u t u r e , t o
get a good job w i t h a growing income, i s t o have r e a l s k i l l s and the
a b i l i t y t o l e a r n new ones. So we've got t o streamline today's
patchwork of t r a i n i n g programs and make them a source of new s k i l l s
f o r our people who lose t h e i r jobs.
Reemployment, not unemployment, must become the
centerpiece of our economic renewal. I urge you t o pass i t i n t h i s
session of Congress. (Applause.)
And j u s t as we must transform our unemployment system,
so must we also r e v o l u t i o n i z e our welfare system. I t doesn't work.
I t d e f i e s our values as a n a t i o n . I f we value work, we can't j u s t i f y
a system t h a t makes welfare more a t t r a c t i v e than work i f people are
w o r r i e d about l o s i n g t h e i r h e a l t h care. (Applause.) I f we value
r e s p o n s i b i l i t y , we can't ignore the $34 b i l l i o n i n c h i l d support
absent parents ought t o be paying t o m i l l i o n s of parents who are
t a k i n g care of t h e i r c h i l d r e n .
(Applause.) I f we value strong
f a m i l i e s , we can't perpetuate a system t h a t a c t u a l l y penalizes those
who stay together.
Can you believe t h a t a c h i l d who has a c h i l d gets more
money from the government f o r l e a v i n g home than f o r s t a y i n g home w i t h
MORE
�- 3 -
Americans t o pay more t o reduce the d e f i c i t . So on A p r i l 15th, the
American people w i l l discover the t r u t h about what we d i d l a s t year
on taxes. Only the top l — (applause) — yes, l i s t e n — the top 1.2
percent of Americans, as I said a l l along, w i l l pay higher income tax
r a t e s . Let me repeat — (applause) — Only the w e a l t h i e s t 1.2
percent of Americans w i l l face higher income tax r a t e s and no one
else w i l l . And t h a t i s the t r u t h .
(Applause.)
Of course, there were, as there always are i n p o l i t i c s ,
naysayers who said t h i s plan wouldn't work. But they were wrong.
When I became President the experts p r e d i c t e d t h a t next year's
d e f i c i t would be $300 b i l l i o n . But because we acted, those same
people now say the d e f i c i t i s going t o be under $180 b i l l i o n — 40
percent lower then was p r e v i o u s l y p r e d i c t e d .
(Applause.)
Our economic program has helped t o produce the lowest
core i n f l a t i o n r a t e and the lowest i n t e r e s t rates i n 2 0 years. And
because those i n t e r e s t r a t e s are down, business investment and
equipment i s growing a t seven times the r a t e of the previous four
years; auto sales are way up; home sales are at a record high.
M i l l i o n s of Americans have refinanced t h e i r homes, and our economy
has produced 1.6 m i l l i o n p r i v a t e sector jobs i n 1993 — more than
were created i n the previous four years combined.
(Applause.)
The people who supported t h i s economic plan should be
proud of i t s e a r l y r e s u l t s . Proud. But everyone i n t h i s chamber
should know and acknowledge t h a t there i s more t o do.
Next month I w i l l send you one of the toughest budgets
ever presented t o Congress. I t w i l l c u t spending i n more than 3 00
programs, e l i m i n a t e 100 domestic programs, and reform the ways i n
which governments buy goods and services. This year we must again
make t h e hard choices t o l i v e w i t h i n the hard spending c e i l i n g s we
have s e t . We must do i t . We have proved we can b r i n g the d e f i c i t
down w i t h o u t choking o f f recovery, w i t h o u t punishing seniors of the
middle c l a s s , and w i t h o u t p u t t i n g our n a t i o n a l s e c u r i t y a t r i s k . I f
you w i l l s t i c k w i t h t h i s p l a n , we w i l l post three consecutive years
of d e c l i n i n g d e f i c i t s f o r the f i r s t time since Harry Truman l i v e d i n
the White House. And once again, the buck stops here.
(Applause.)
Our economic plan also b o l s t e r s our s t r e n g t h and our
c r e d i b i l i t y around t h e world. Once we reduce the d e f i c i t and put the
s t e e l back i n t o our c o m p e t i t i v e edge, the world echoed w i t h the sound
of f a l l i n g t r a d e b a r r i e r s . I n one year, w i t h NAFTA, w i t h GATT, w i t h
our e f f o r t s i n Asia and the National Export Strategy, we d i d more t o
open w o r l d markets t o American products than at any time i n the l a s t
two generations.
That means more jobs and r i s i n g l i v i n g standards f o r the
American people; low d e f i c i t s ; low i n f l a t i o n ; low i n t e r e s t r a t e s ; low
trade b a r r i e r s and h i g h investments. These are the b u i l d i n g blocks
of our recovery. But i f we want t o take f u l l advantage of the
o p p o r t u n i t i e s before us i n the g l o b a l economy, you a l l know we must
do more.
As we reduce defense spending, I ask Congress t o invest
more i n the technologies of tomorrow. Defense conversion w i l l keep
us s t r o n g m i l i t a r i l y and create jobs f o r our people here a t home.
(Applause.)
As we p r o t e c t our environment, we must i n v e s t i n the
environmental technologies of the f u t u r e which w i l l create jobs.
This year we w i l l f i g h t f o r a r e v i t a l i z e d Clean Water Act and a Safe
D r i n k i n g Water Act and a reformed Superfund program. And the Vice
President i s r i g h t — we must also work w i t h the p r i v a t e sector t o
connect every classroom, every c l i n i c , every l i b r a r y , every h o s p i t a l
i n America i n t o a n a t i o n a l i n f o r m a t i o n super highway by the year
2000.
(Applause.)
MR
OE
�- 5 -
a parent or a grandparent?
And we ought to change i t .
That's not j u s t bad policy, i t ' s wrong.
(Applause.)
I worked on t h i s problem for years before I became
President, with other governors and with members of Congress of both
p a r t i e s and with the previous administration of another party. I
worked on i t with people who were on welfare — l o t s of them. And I
want to say something to everybody here who cares about t h i s issue.
The people who most want to change t h i s system are the people who are
dependent on i t . They want to get off welfare. They want to go back
to work. They want to do right by t h e i r kids.
I once had a hearing when I was a governor and I brought
in people on welfare from a l l over America who had found t h e i r way to
work. The woman from my state who t e s t i f i e d was asked t h i s question:
What's the best thing about being off welfare and in a job?
And,
without blinking an eye, she looked at 40 governors and she said,
"When my boy goes to school and they say what does your mother do for
a l i v i n g , he can give an answer." These people want a better system
and we ought to give i t to them. (Applause.)
Last year we began t h i s . We gave the states more power
to innovate because we know that a l o t of great ideas come from
outside Washington, and many states are already using i t . Then this
Congress took a dramatic step. Instead of taxing people with modest
incomes into poverty, we helped them to work t h e i r way out of poverty
by dramatically increasing the earned income tax c r e d i t . I t w i l l
l i f t 15 m i l l i o n working families out of poverty, rewarding work over
welfare, making i t possible for people to be successful workers and
successful parents. Now that's real welfare reform. (Applause.)
But there i s more to be done. This spring I w i l l send
you a comprehensive welfare reform b i l l that builds on the Family
Support Act of 1988 and restores the basic values of r e s p o n s i b i l i t y .
We'll say to teenagers, i f you have a child out of wedlock, we w i l l
no longer give you a check to set up a separate household. We want
families to stay together. Say to absent parents who aren't paying
t h e i r c h i l d support, i f you're not providing for your children, we'll
garnish your wages, suspend your license, track you across state
l i n e s , and i f necessary, make some of you work off what you owe.
(Applause.)
People who bring children into t h i s world cannot and
must not walk away from them. But to a l l those who depend on
welfare, we should offer ultimately a simple compact. We'll provide
the support, the job training, the c h i l d care you need for up to two
years. But a f t e r that, anyone who can work must — i n the private
sector, wherever possible; in community services, i f necessary.
That's the only way we'll ever make welfare what i t ought to be — a
second chance, not a way of l i f e .
(Applause.)
I know i t w i l l be d i f f i c u l t to tackle welfare reform in
1994 at the same time we tackle health care. But l e t me point out, I
think i t i s inevitable and imperative. I t i s estimated that one
m i l l i o n people are on welfare today because i t ' s the only way they
can get health care coverage for t h e i r children. Those who choose to
leave welfare for jobs without health benefits — and many entry jobs
don't have health benefits — find themselves i n the incredible
position of paying taxes that help to pay for health care coverage
for those who made the other choice to stay on welfare. No wonder
people leave work and go back to welfare to get health care coverage.
We have got to solve the health care problem to have r e a l welfare
reform. (Applause.)
So t h i s year, we w i l l make history by reforming the
health care system.
And I would say to you, a l l of you, my fellow
public servants, this i s another issue where the people are way ahead
of the p o l i t i c i a n s . (Applause and laughter.) That may not be
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popular w i t h e i t h e r p a r t y , but i t happens t o be the t r u t h .
(Laughter.)
You know, the F i r s t Lady has received now almost a
m i l l i o n l e t t e r s from people a l l across America and from a l l walks of
life.
I ' d l i k e t o share j u s t one of them w i t h you.
Richard Anderson of Reno, Nevada, l o s t h i s j o b and, w i t h
i t , h i s h e a l t h insurance. Two weeks l a t e r , h i s w i f e , Judy, suffered
a c e r e b r a l aneurysm. He rushed her t o the h o s p i t a l , where she stayed
i n i n t e n s i v e care f o r 21 days.
The Andersons' b i l l s were over $120,000. Although Judy
recovered and Richard went back t o work, a t $8 an hour, the b i l l s
were too much f o r them and they were l i t e r a l l y forced i n t o
bankruptcy.
"Mrs. C l i n t o n , " he wrote t o H i l l a r y , "no one i n the
United States of America should have t o lose everything they've
worked f o r a l l t h e i r l i v e s because they were unfortunate enough t o
become i l l . "
I t was t o help the Richard and Judy Andersons of America
t h a t the F i r s t Lady and so many others have worked so hard and so
long on t h i s h e a l t h care reform issue. We owe them our thanks and
our a c t i o n .
(Applause.)
I know t h e r e are people here who say there's no h e a l t h
care c r i s i s . T e l l i t t o Richard and Judy Anderson. T e l l i t t o the
58 m i l l i o n Americans who have no coverage a t a l l f o r some time each
year. T e l l i t t o the 81 m i l l i o n Americans w i t h those p r e e x i s t i n g
c o n d i t i o n s — those f o l k s are paying more or they can't get insurance
at a l l , or they can't ever change t h e i r jobs because they or someone
i n t h e i r f a m i l y has one o f those p r e e x i s t i n g c o n d i t i o n s . T e l l i t t o
the small businesses burdened by the skyrocketing cost of insurance.
Most small businesses cover t h e i r employees, and they pay on average
3 5 percent more i n premiums than b i g businesses or government. Or
t e l l i t t o the 76 percent of insured Americans, three out of four
whose p o l i c i e s have l i f e t i m e l i m i t s . And t h a t means they can f i n d
themselves w i t h o u t any coverage a t a l l j u s t when they need i t the
most.
So i f any of you believe there's no c r i s i s , you t e l l i t
t o those people — because I can't. (Applause.)
There are some people who l i t e r a l l y do not understand
the impact of t h i s problem on people's l i v e s .
And a l l you have t o
do i s go out and l i s t e n t o them. Just go t a l k t o them anywhere i n
any congressional d i s t r i c t i n t h i s country. They're Republicans and
Democrats and independents — i t doesn't have a l i c k t o do w i t h
p a r t y . They t h i n k we don't get i t . And i t ' s time we show them t h a t
we do get i t . (Applause.)
From the day we began, our h e a l t h care i n i t i a t i v e has
been designed t o strengthen what i s good about our h e a l t h care
system: the world's best h e a l t h care p r o f e s s i o n a l s , c u t t i n g edge
research and wonderful research i n s t i t u t i o n s , Medicare f o r older
Americans. None of t h i s — none of i t should be put a t r i s k .
But we're paying more and more money f o r l e s s and less
care. Every year fewer and fewer Americans even get t o choose t h e i r
doctors. Every year doctors and nurses spend more time on paperwork
and less time w i t h p a t i e n t s because of the absolute b u r e a u c r a t i c
nightmare the present system has become. This system i s r i d d l e d w i t h
i n e f f i c i e n c y , w i t h abuse, w i t h fraud, and everybody knows i t .
the shots.
I n today's h e a l t h care system, insurance companies c a l l
They pick whom they cover and how they cover them. They
MR
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�- 5 -
a parent or a grandparent?
And we ought t o change i t .
That's not j u s t bad p o l i c y , i t ' s wrong.
(Applause.)
I worked on t h i s problem f o r years before I became
President, w i t h other governors and w i t h members of Congress of both
p a r t i e s and w i t h the previous a d m i n i s t r a t i o n o f another p a r t y . I
worked on i t w i t h people who were on welfare — l o t s of them. And I
want t o say something t o everybody here who cares about t h i s issue.
The people who most want t o change t h i s system are the people who are
dependent on i t . They want t o get o f f welfare. They want t o go back
t o work. They want t o do r i g h t by t h e i r k i d s .
I once had a hearing when I was a governor and I brought
i n people on w e l f a r e from a l l over America who had found t h e i r way t o
work. The woman from my s t a t e who t e s t i f i e d was asked t h i s question:
What's the best t h i n g about being o f f welfare and i n a job? And,
w i t h o u t b l i n k i n g an eye, she looked a t 40 governors and she s a i d ,
"When my boy goes t o school and they say what does your mother do f o r
a l i v i n g , he can give an answer." These people want a b e t t e r system
and we ought t o give i t t o them. (Applause.)
Last year we began t h i s . We gave the states more power
t o innovate because we know t h a t a l o t of great ideas come from
outside Washington, and many s t a t e s are already using i t . Then t h i s
Congress took a dramatic step. Instead of t a x i n g people w i t h modest
incomes i n t o poverty, we helped them t o work t h e i r way out o f poverty
by d r a m a t i c a l l y increasing the earned income t a x c r e d i t . I t w i l l
l i f t 15 m i l l i o n working f a m i l i e s out of poverty, rewarding work over
w e l f a r e , making i t possible f o r people t o be successful workers and
successful parents. Now t h a t ' s r e a l welfare reform. (Applause.)
But there i s more t o be done. This spring I w i l l send
you a comprehensive welfare reform b i l l t h a t b u i l d s on the Family
Support Act of 1988 and restores the basic values of r e s p o n s i b i l i t y .
We'll say t o teenagers, i f you have a c h i l d out of wedlock, we w i l l
no longer give you a check t o set up a separate household. We want
f a m i l i e s t o stay together. Say t o absent parents who aren't paying
t h e i r c h i l d support, i f you're not p r o v i d i n g f o r your c h i l d r e n , w e ' l l
garnish your wages, suspend your l i c e n s e , t r a c k you across s t a t e
l i n e s , and i f necessary, make some of you work o f f what you owe.
(Applause.)
People who b r i n g c h i l d r e n i n t o t h i s world cannot and
must not walk away from them. But t o a l l those who depend on
w e l f a r e , we should o f f e r u l t i m a t e l y a simple compact. We'll provide
the support, the j o b t r a i n i n g , the c h i l d care you need f o r up t o two
years. But a f t e r t h a t , anyone who can work must — i n the p r i v a t e
sector, wherever possible; i n community services, i f necessary.
That's the only way w e ' l l ever make welfare what i t ought t o be — a
second chance, not a way of l i f e .
(Applause.)
I know i t w i l l be d i f f i c u l t t o t a c k l e welfare reform i n
1994 a t the same time we t a c k l e h e a l t h care. But l e t me p o i n t out, I
t h i n k i t i s i n e v i t a b l e and imperative. I t i s estimated t h a t one
m i l l i o n people are on welfare today because i t ' s the only way they
can get h e a l t h care coverage f o r t h e i r c h i l d r e n . Those who choose t o
leave w e l f a r e f o r jobs without h e a l t h b e n e f i t s — and many e n t r y jobs
don't have h e a l t h b e n e f i t s — f i n d themselves i n the i n c r e d i b l e
p o s i t i o n of paying taxes t h a t help t o pay f o r h e a l t h care coverage
f o r those who made the other choice t o stay on welfare. No wonder
people leave work and go back t o welfare t o get h e a l t h care coverage.
We have got t o solve the h e a l t h care problem t o have r e a l w e l f a r e
reform.
(Applause.)
So t h i s year, we w i l l make h i s t o r y by reforming the
h e a l t h care system.
And I would say t o you, a l l of you, my f e l l o w
p u b l i c servants, t h i s i s another issue where the people are way ahead
of the p o l i t i c i a n s .
(Applause and laughter.) That may not be
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can cut off your benefits when you need your coverage the most.
are in charge.
They
What does i t mean? I t means every night millions of
well-insured Americans go to bed j u s t an i l l n e s s , an accident or a
pink s l i p away from having no coverage or financial ruin. I t means
every morning millions of Americans go to work without any health
insurance at a l l — something the workers in no other advanced
country i n the world do. I t means that every year, more and more
hard-working people are told to pick a new doctor because t h e i r boss
has had to pick a new plan. And countless others turn down better
jobs because they know i f they take the better job, they w i l l lose
t h e i r health insurance.
I f we j u s t l e t the health care system continue to d r i f t ,
our country w i l l have people with l e s s care, fewer choices and higher
bills.
Now, our approach protects the quality of care and
people's choices. I t builds on what works today in the private
sector — to expand employer-based coverage, to guarantee private
insurance for every American. And I might say, employer-based
private insurance for every American was proposed 2 0 years ago by
President Richard Nixon to the United States Congress. I t was a good
idea then, and i t ' s a better idea today. (Applause.)
Why do we want guaranteed private insurance? Because
right now nine out of 10 people who have insurance get i t through
t h e i r employers. And that should continue. And i f your employer i s
providing good benefits at reasonable prices, that should continue,
too. That ought to make the Congress and the President f e e l better.
Our goal i s health insurance everybody can depend on —
comprehensive benefits that cover preventive care and prescription
drugs; health premiums that don't j u s t explode when yo get sick or
you get older; the power no matter how small your business i s to
choose dependable insurance at the same competitive rates governments
and big business get today; one simple form for people who are sick;
and, most of a l l , the freedom to choose a plan and the right to
choose your own doctor.
Our approach protects older Americans. Every plan
before the Congress proposes to slow the growth of Medicare. The
difference i s t h i s : We believe those savings should be used to
improve health care for senior c i t i z e n s . Medicare must be protected,
and i t should cover prescription drugs, and we should take the f i r s t
steps i n covering long-term care. (Applause.)
To those who would cut Medicare without protecting
seniors, I say the solution to today's squeeze on middle-class
working people's health care i s not to put the squeeze on middlec l a s s r e t i r e d people's health care. We can do better than that.
When i t ' s a l l said and done, i t ' s pretty simple to me.
Insurance ought to mean what i t used to mean — you pay a f a i r price
for security, and when you get s i c k , health care's always there, no
matter what.
Along with the guarantee of health security, we a l l have
to admit, too, there must be more responsibility on the part of a l l
of us i n how we use t h i s system. People have to take t h e i r kids to
get immunized. We should a l l take advantage of preventive care. We
must a l l work together to stop the violence that explodes our
emergency rooms. We have to p r a c t i c e better health habits, and we
can't abuse the system. And those who don't have insurance under our
approach w i l l get coverage, but t h e y ' l l have to pay something for i t ,
too. The minority of businesses that provide no insurance at a l l ,
and in so doing, s h i f t the cost of the care of t h e i r employees to
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others, should c o n t r i b u t e something. People who smoke should pay
more f o r a pack of c i g a r e t t e s . Everybody can c o n t r i b u t e something i f
we want t o solve the h e a l t h care c r i s i s . There can't be any more
something f o r nothing. I t w i l l not be easy but i t can be done.
(Applause.)
Now, i n the coming months I hope very much t o work both
Democrats and Republicans t o reform a h e a l t h care system by using the
market t o b r i n g down costs and t o achieve l a s t i n g h e a l t h s e c u r i t y .
But i f you look a t h i s t o r y we see t h a t f o r 60 years t h i s country has
t r i e d t o reform h e a l t h care. President Roosevelt t r i e d . President
Truman t r i e d . President Nixon t r i e d . President Carter t r i e d .
Every
time the s p e c i a l i n t e r e s t s were powerful enough t o defeat them. But
not t h i s t i m e .
(Applause.)
I know t h a t f a c i n g up t o these i n t e r e s t s w i l l r e q u i r e
courage. I t w i l l r a i s e c r i t i c a l questions about the way we finance
our campaigns and how l o b b y i s t s y i e l d t h e i r i n f l u e n c e . The work of
change, f r a n k l y , w i l l never get any easier u n t i l we l i m i t t h e
influence o f w e l l - f i n a n c e d i n t e r e s t who p r o f i t from t h i s c u r r e n t
system. So I also must now t o c a l l on you t o f i n i s h the j o b both
Houses began l a s t year by passing tough and meaningful campaign
finance reform and lobby reform l e g i s l a t i o n t h i s year.
(Applause.)
You know, my f e l l o w Americans, t h i s i s r e a l l y a t e s t f o r
a l l of us. The American people provide those of us i n government
service w i t h t e r r i f i c h e a l t h care b e n e f i t s a t reasonable costs. We
have h e a l t h care t h a t ' s always there. I t h i n k we need t o g i v e every
hard-working, tax-paying American the same h e a l t h care s e c u r i t y they
have already given t o us.
(Applause.)
I want t o make t h i s very c l e a r . I am open, as I have
said repeatedly, t o the best ideas of concerned members o f both
p a r t i e s . I have no special b r i e f f o r any s p e c i f i c approach, even i n
our own b i l l , except t h i s : I f you send me l e g i s l a t i o n t h a t does not
guarantee every American p r i v a t e h e a l t h insurance t h a t can never be
taken away, you w i l l force me t o take t h i s pen, veto the l e g i s l a t i o n ,
and w e ' l l come r i g h t back here and s t a r t a l l over again.
(Applause.)
But I don't t h i n k t h a t ' s going t o happen. I t h i n k we're
ready t o a c t now.
I b e l i e v e t h a t you're ready t o act now.
And i f
you're ready t o guarantee every American the same h e a l t h care t h a t
you have, h e a l t h care t h a t can never be taken away, now — not next
year or t h e year a f t e r — now i s the time t o stand w i t h t h e people
who sent us here. Now.
(Applause.)
As we take these steps together t o renew our s t r e n g t h at
home, we cannot t u r n away from our o b l i g a t i o n t o renew our leadership
abroad. This i s a promising moment. Because of the agreements we
have reached t h i s year, l a s t year, Russia's s t r a t e g i c nuclear
m i s s i l e s soon w i l l no longer be pointed a t the United States, nor
w i l l we p o i n t ours a t them. (Applause.) Instead of b u i l d i n g weapons
i n space, Russian s c i e n t i s t s w i l l help us t o b u i l d the i n t e r n a t i o n a l
space s t a t i o n .
(Applause.)
Of course, t h e r e are s t i l l dangers i n the w o r l d —
rampant arms p r o l i f e r a t i o n , b i t t e r regional c o n f l i c t s , e t h n i c and
n a t i o n a l i s t tensions i n many new democracies, severe environmental
degradation the world over, and f a n a t i c s who seek t o c r i p p l e the
world's c i t i e s w i t h t e r r o r . As the world's g r e a t e s t power, we must,
t h e r e f o r e , m a i n t a i n our defenses and our r e s p o n s i b i l i t i e s .
This year, we secured indictments against t e r r o r i s t s and
sanctions against those who harbor them. We worked t o promote
environmentally sustainable economic growth. We achieved agreements
w i t h Ukraine, w i t h Belarus, w i t h Kazahkstan t o e l i m i n a t e completely
t h e i r nuclear arsenal. We are working t o achieve a Korean Peninsula
f r e e of nuclear weapons. We w i l l seek e a r l y r a t i f i c a t i o n of a t r e a t y
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�- 7 -
can cut o f f your b e n e f i t s when you need your coverage the most.
are i n charge.
They
What does i t mean? I t means every n i g h t m i l l i o n s of
w e l l - i n s u r e d Americans go t o bed j u s t an i l l n e s s , an accident or a
p i n k s l i p away from having no coverage or f i n a n c i a l r u i n . I t means
every morning m i l l i o n s of Americans go t o work w i t h o u t any health
insurance a t a l l — something t h e workers i n no other advanced
country i n the w o r l d do. I t means t h a t every year, more and more
hard-working people are t o l d t o p i c k a new doctor because t h e i r boss
has had t o p i c k a new plan. And countless others t u r n down b e t t e r
jobs because they know i f they take the b e t t e r j o b , they w i l l lose
t h e i r h e a l t h insurance.
I f we j u s t l e t the h e a l t h care system continue t o d r i f t ,
our country w i l l have people w i t h less care, fewer choices and higher
bills.
Now, our approach p r o t e c t s the q u a l i t y of care and
people's choices. I t b u i l d s on what works today i n the p r i v a t e
sector — t o expand employer-based coverage, t o guarantee p r i v a t e
insurance f o r every American. And I might say, employer-based
p r i v a t e insurance f o r every American was proposed 2 0 years ago by
President Richard Nixon t o the United States Congress. I t was a good
idea then, and i t ' s a b e t t e r idea today.
(Applause.)
Why do we want guaranteed p r i v a t e insurance? Because
r i g h t now nine out of 10 people who have insurance get i t through
t h e i r employers. And t h a t should continue. And i f your employer i s
p r o v i d i n g good b e n e f i t s a t reasonable p r i c e s , t h a t should continue,
too.
That ought t o make the Congress and the President f e e l b e t t e r .
Our goal i s h e a l t h insurance everybody can depend on —
comprehensive b e n e f i t s t h a t cover preventive care and p r e s c r i p t i o n
drugs; h e a l t h premiums t h a t don't j u s t explode when yo get s i c k or
you get o l d e r ; the power no matter how small your business i s t o
choose dependable insurance at the same competitive rates governments
and b i g business get today; one simple form f o r people who are s i c k ;
and, most of a l l , t h e freedom t o choose a plan and the r i g h t t o
choose your own doctor.
Our approach p r o t e c t s o l d e r Americans. Every plan
before the Congress proposes t o slow the growth of Medicare.
The
d i f f e r e n c e i s t h i s : We b e l i e v e those savings should be used t o
improve h e a l t h care f o r senior c i t i z e n s . Medicare must be protected,
and i t should cover p r e s c r i p t i o n drugs, and we should take the f i r s t
steps i n covering long-term care.
(Applause.)
To those who would cut Medicare w i t h o u t p r o t e c t i n g
seniors, I say the s o l u t i o n t o today's squeeze on middle-class
working people's h e a l t h care i s not t o put the squeeze on middleclass r e t i r e d people's h e a l t h care. We can do b e t t e r than t h a t .
When i t ' s a l l said and done, i t ' s p r e t t y simple t o me.
Insurance ought t o mean what i t used t o mean — you pay a f a i r p r i c e
f o r s e c u r i t y , and when you get s i c k , h e a l t h care's always there, no
matter what.
Along w i t h the guarantee of health s e c u r i t y , we a l l have
t o admit, t o o , t h e r e must be more r e s p o n s i b i l i t y on the p a r t of a l l
of us i n how we use t h i s system. People have t o take t h e i r kids t o
get immunized. We should a l l take advantage of p r e v e n t i v e care. We
must a l l work together t o stop t h e v i o l e n c e t h a t explodes our
emergency rooms. We have t o p r a c t i c e b e t t e r h e a l t h h a b i t s , and we
can't abuse the system. And those who don't have insurance under our
approach w i l l get coverage, but t h e y ' l l have t o pay something f o r i t ,
too.
The m i n o r i t y of businesses t h a t provide no insurance at a l l ,
and i n so doing, s h i f t the cost of the care of t h e i r employees t o
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to ban chemical weapons worldwide. And e a r l i e r today, we joined with
over 3 0 nations to begin negotiations on a comprehensive ban to stop
a l l nuclear testing.
(Applause.)
But nothing, nothing i s more important to our security
than our nation's armed forces. We honor their contributions,
including those who are carrying out the longest humanitarian a i r
l i f t i n history i n Bosnia; (applause) — those who w i l l complete
t h e i r mission in Somalia t h i s year and t h e i r brave comrades who gave
t h e i r l i v e s there. (Applause.)
Our forces are the f i n e s t military our nation has ever
had. And I have pledged that as long as I am President, they w i l l
remain the best equipped, the best trained and the best prepared
fighting force on the face of the Earth. (Applause.)
Last year I proposed a defense plan that maintains our
post-Cold War security at a lower cost. This year many people urged
me to cut our defense spending further to pay for other government
programs. I said, no. The budget I send to Congress draws the line
against further defense cuts. I t protects the readiness and quality
of our forces.
Ultimately, the best strategy i s to do that. We must
not cut defense further. I hope the Congress without regard to party
w i l l support that position. (Applause.)
Ultimately, the best strategy to ensure our security and
to build a durable peace i s to support the advance of democracy
elsewhere. Democracies don't attack each other, they make better
trading partners and partners i n diplomacy. That i s why we have
supported, you and I , the democratic reformers i n Russia and i n the
other s t a t e s of the former Soviet bloc. I applaud the bipartisan
support t h i s Congress provided l a s t year for our i n i t i a t i v e s to help
Russia, Ukraine, and the other s t a t e s through t h e i r epic
transformations.
Our support of reform must combine patience for the
enormity of the task and vigilance for our fundamental interest and
values. We w i l l continue to urge Russia and the other states to
press ahead with economic reforms. And we w i l l seek to cooperate
with Russia to solve regional problems, while i n s i s t i n g that i f
Russian troops operate i n neighboring states, they do so only when
those s t a t e s agree to t h e i r presence and in s t r i c t accord with
international standards. (Applause.)
But we must also remember as these nations chart their
own futures — and they must chart t h e i r own futures — how much more
secure and more prosperous our own people w i l l be i f democratic and
market reform succeed a l l across the former communist bloc. Our
policy has been to support that move and that has been the policy of
the Congress. We should continue i t .
That i s why I went to Europe e a r l i e r t h i s month — to
work with our Europeans partners, to help to integrate a l l the former
communist countries into a Europe that has a p o s s i b i l i t y of becoming
unified for the f i r s t time in i t s entire history — i t s entire
history — based on the simple commitments of a l l nations in Europe
to democracy, to free markets and to respect for existing borders.
With our a l l i e s we have created a Partnership For Peace
that i n v i t e s states from the former Soviet bloc and other non-NATO
members to work with NATO in m i l i t a r y cooperation. When I met with
Central Europe's leaders including Lech Walesa and Vaclav Havel, men
who put t h e i r l i v e s on the line for freedom, I told them that the
security of t h e i r region i s important to our country's security.
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This year we must also do more t o support democratic
renewal and human r i g h t s and sustainable development a l l around the
world. We w i l l ask Congress t o r a t i f y t h e new GATT accord. We w i l l
continue standing by South A f r i c a as i t works i t s way through i t s
bold and hopeful and d i f f i c u l t t r a n s i t i o n t o democracy. We w i l l
convene a summit of the Western Hemisphere's leaders from Canada t o
the t i p o f South America. And we w i l l continue t o press f o r the
r e s t o r a t i o n of t r u e democracy i n H a i t i .
(Applause.)
And as we b u i l d a more c o n s t r u c t i v e r e l a t i o n s h i p w i t h
China, we must continue t o i n s i s t on c l e a r signs of improvement i n
t h a t n a t i o n ' s human r i g h t record. (Applause.)
We w i l l also work f o r new progress toward t h e Middle
East peace. Last year the world watched Yitzhak Rabin and Yassir
A r a f a t a t the White House when they had t h e i r h i s t o r i c handshake of
r e c o n c i l i a t i o n . But there i s a long, hard road ahead. And on t h a t
road I am determined t h a t I and our a d m i n i s t r a t i o n w i l l do a l l we can
t o achieve a comprehensive and l a s t i n g peace f o r a l l the peoples of
the region.
Now, there are some i n our country who argue t h a t w i t h
the Cold War, America should t u r n i t s back on the r e s t o f the world.
Many around the world were a f r a i d we would do j u s t t h a t . But I took
t h i s o f f i c e on a pledge t h a t had no p a r t i s a n t i n g e t o keep our nation
secure by remaining engaged i n the r e s t of the world. And t h i s year,
because o f our work t o g e t h e r — enacting NAFTA, keeping our m i l i t a r y
strong and prepared, supporting democracy abroad — we have
r e a f f i r m e d America's leadership, America's engagement. And as a
r e s u l t , t h e American people are more secure than they were before.
(Applause.)
But w h i l e Americans are more secure from t h r e a t s abroad,
I t h i n k we a l l know t h a t i n many ways we are less secure from t h r e a t s
here a t home. Every day the n a t i o n a l peace i s shattered by crime.
I n Petaluma, C a l i f o r n i a , an innocent slumber p a r t y gives way t o
agonizing tragedy f o r the f a m i l y of P o l l y Klaas. An o r d i n a r y t r a i n
r i d e on Long I s l a n d ends i n a h a i l of 9 - m i l l i m e t e r rounds. A t o u r i s t
i n F l o r i d a i s nearly burned a l i v e by b i g o t s simply because he i s
black. Right here i n our Nation's C a p i t a l , a brave young man named
Jason White, a policeman, the son and grandson of policemen, i s
r u t h l e s s l y gunned down. V i o l e n t crime and the fear i t provokes are
c r i p p l i n g our s o c i e t y , l i m i t i n g personal freedom and f r a y i n g the t i e s
t h a t bind us.
The crime b i l l before Congress gives you a chance t o do
something about i t — a chance t o be tough and smart. What does t h a t
mean? Let me begin by saying, I care a l o t about t h i s issue. Many
years ago, when I s t a r t e d out i n p u b l i c l i f e , I was the a t t o r n e y
general o f my s t a t e . I served as a governor f o r a dozen years; I
know what i t ' s l i k e t o sign laws increasing p e n a l t i e s , t o b u i l d more
p r i s o n c e l l s , t o carry out the death p e n a l t y . I understand t h i s
issue. And i t i s not a simple t h i n g .
F i r s t , we must recognize t h a t most v i o l e n t crimes are
committed by a small percentage of c r i m i n a l s who too o f t e n break the
laws even when they are on parole. Now those who commit crimes
should be punished. And those who commit repeated, v i o l e n t crimes
should be t o l d , when you commit a t h i r d v i o l e n t crime, you w i l l be
put away, and put away f o r good. Three s t r i k e s , and you are out.
(Applause.)
Second, we must take serious steps t o reduce v i o l e n c e
and prevent crime, beginning w i t h more p o l i c e o f f i c e r s and more
community p o l i c i n g . (Applause.) We know r i g h t now t h a t p o l i c e who
work the s t r e e t s , know the f o l k s , have t h e respect of t h e
neighborhood k i d s , focus on high crime areas — we know t h a t they are
more l i k e l y t o prevent crime as w e l l as catch c r i m i n a l s . Look a t the
MR
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�- 9 -
t o ban chemical weapons worldwide. And e a r l i e r today, we j o i n e d w i t h
over 3 0 nations t o begin n e g o t i a t i o n s on a comprehensive ban t o stop
a l l nuclear t e s t i n g .
(Applause.)
But nothing, nothing i s more important t o our s e c u r i t y
than our nation's armed forces. We honor t h e i r c o n t r i b u t i o n s ,
i n c l u d i n g those who are c a r r y i n g out the longest humanitarian a i r
l i f t i n h i s t o r y i n Bosnia; (applause) — those who w i l l complete
t h e i r mission i n Somalia t h i s year and t h e i r brave comrades who gave
t h e i r l i v e s t h e r e . (Applause.)
Our forces are the f i n e s t m i l i t a r y our n a t i o n has ever
had. And I have pledged t h a t as long as I am President, they w i l l
remain the best equipped, the best t r a i n e d and the best prepared
f i g h t i n g force on the face of the Earth. (Applause.)
Last year I proposed a defense plan t h a t maintains our
post-Cold War s e c u r i t y a t a lower cost. This year many people urged
me t o cut our defense spending f u r t h e r t o pay f o r other government
programs. I s a i d , no. The budget I send t o Congress draws the l i n e
against f u r t h e r defense cuts. I t p r o t e c t s the readiness and q u a l i t y
of our forces.
U l t i m a t e l y , the best s t r a t e g y i s t o do t h a t . We must
not cut defense f u r t h e r . I hope the Congress w i t h o u t regard t o p a r t y
w i l l support t h a t p o s i t i o n .
(Applause.)
U l t i m a t e l y , the best s t r a t e g y t o ensure our s e c u r i t y and
t o b u i l d a durable peace i s t o support the advance of democracy
elsewhere. Democracies don't a t t a c k each other, they make b e t t e r
t r a d i n g partners and partners i n diplomacy.
That i s why we have
supported, you and I , the democratic reformers i n Russia and i n the
other s t a t e s of the former Soviet bloc. I applaud the b i p a r t i s a n
support t h i s Congress provided l a s t year f o r our i n i t i a t i v e s t o help
Russia, Ukraine, and the other s t a t e s through t h e i r epic
transformations.
Our support of reform must combine patience f o r the
enormity, of the t a s k and v i g i l a n c e f o r our fundamental i n t e r e s t and
values. We w i l l continue t o urge Russia and the other states t o
press ahead w i t h economic reforms. And we w i l l seek t o cooperate
w i t h Russia t o solve r e g i o n a l problems, while i n s i s t i n g t h a t i f
Russian troops operate i n neighboring s t a t e s , they do so only when
those s t a t e s agree t o t h e i r presence and i n s t r i c t accord w i t h
i n t e r n a t i o n a l standards.
(Applause.)
But we must also remember as these nations chart t h e i r
own f u t u r e s — and they must c h a r t t h e i r own f u t u r e s — how much more
secure and more prosperous our own people w i l l be i f democratic and
market reform succeed a l l across the former communist bloc. Our
p o l i c y has been t o support t h a t move and t h a t has been the p o l i c y of
the Congress. We should continue i t .
That i s why I went t o Europe e a r l i e r t h i s month — t o
work w i t h our Europeans p a r t n e r s , t o help t o i n t e g r a t e a l l the former
communist c o u n t r i e s i n t o a Europe t h a t has a p o s s i b i l i t y of becoming
u n i f i e d f o r the f i r s t time i n i t s e n t i r e h i s t o r y — i t s e n t i r e
h i s t o r y — based on the simple commitments of a l l nations i n Europe
t o democracy, t o f r e e markets and t o respect f o r e x i s t i n g borders.
With our a l l i e s we have created a Partnership For Peace
t h a t i n v i t e s s t a t e s from the former Soviet bloc and other non-NATO
members t o work w i t h NATO i n m i l i t a r y cooperation. When I met w i t h
Central Europe's leaders i n c l u d i n g Lech Walesa and Vaclav Havel, men
who put t h e i r l i v e s on the l i n e f o r freedom, I t o l d them t h a t the
s e c u r i t y of t h e i r region i s important t o our country's s e c u r i t y .
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experience of Houston, where the crime rate dropped 17 percent i n one
year when that approach was taken.
Here tonight i s one of those community policeman — a
brave, young detective, Kevin Jett, whose beat i s eight square blocks
in one of the toughest neighborhoods i n New York. Every day he
restores some sanity and safety and a sense of values and connections
to the people whose l i v e s he protects. I'd l i k e to ask him to stand
up and be recognized tonight.
Thank you, s i r . (Applause.)
You w i l l be given a chance to give the children of t h i s
country, the law-abiding working people of this country — and don't
forget, i n the toughest neighborhoods i n t h i s country, in the highest
crime neighborhoods i n t h i s country, the vast majority of people get
up every day and obey the law, pay t h e i r taxes, do t h e i r best to
r a i s e t h e i r kids. They deserve people l i k e Kevin J e t t . And you're
going to be given a chance to give the American people another
100,000 of them well trained. And I urge you to do i t . (Applause.)
You have before you crime l e g i s l a t i o n which also
e s t a b l i s h e s a police corps to encourage young people to get an
education and pay i t off by serving as police o f f i c e r s ; which
encourages r e t i r i n g m i l i t a r y personnel to move into police forces, an
inordinate resource for our country — one which has a safe schools
provision which w i l l give our young people the chance to walk to
school i n safety and to be in school i n safety instead of dodging
bullets.
These are important things. (Applause.)
The t h i r d thing we have to do i s to build on the Brady
B i l l — the Brady Law.
(Applause.) To take further steps to keep
guns out of the hands of criminals.
I want to say something about this issue. Hunters must
always be free to hunt. Law-abiding adults should always be free to
own guns to protect t h e i r homes. I respect that part of our culture,
I grew up i n i t . But I want to ask the sportsmen and others who
l a w f u l l y own guns to j o i n us in t h i s campaign to reduce gun violence.
I say to you, I know you didn't create t h i s problem, but we need your
help to solve i t . There i s no sporting purpose on Earth that should
stop the United States Congress from banishing assault weapons that
out-gun police and cut down children. (Applause.)
Fourth, we must remember that drugs are a factor i n an
enormous percentage of crimes. Recent studies indicate, sadly, that
drug use i s on the r i s e again among our young people. The crime b i l l
contains — a l l the crime b i l l s contain — more money for drug
treatment for criminal addicts, and boot camps for youthful offenders
that include incentives to get off drugs and to stay off drugs.
Our administration's budget with a l l i t s cuts can paint
a large increase in funding for drug treatment and drug education.
You must pass them both. We need them desperately.
(Applause.)
My fellow Americans, the problem of violence i s an
American problem. I t has no partisan or philosophical element.
Therefore, I urge you to find ways as quickly as possible to set
aside p a r t i s a n differences and pass a strong, smart, tough crime
bill.
(Applause.) But further, I urge you to consider t h i s : As you
demand tougher penalties for those who choose violence, l e t us also
remember how we came to t h i s sad point.
In our toughest neighborhoods, on our meanest streets,
in our poorest rural areas, we have seen a stunning and simultaneous
breakdown of community, family and work — the heart and soul of
c i v i l i z e d society. This has created a vast vacuum which has been
f i l l e d by violence and drugs and gangs. So I ask you to remember
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t h a t even as we say no t o crime, we must g i v e people — e s p e c i a l l y
our young people — something t o say yes t o . (Applause.)
Many of our i n i t i a t i v e s — from j o b t r a i n i n g t o welfare
reform t o h e a l t h care t o n a t i o n a l service — w i l l help t o r e b u i l d
distressed communities, t o strengthen f a m i l i e s , t o provide work. But
more needs t o be done. That's what our community empowerment agenda
i s a l l about — challenging businesses t o provide more investment
through empowerment zones; ensuring banks w i l l make loans i n the same
communities t h e i r deposits come from; passing l e g i s l a t i o n t o unleash
the power of c a p i t a l through community development banks t o create
jobs — o p p o r t u n i t y and hope where they're needed most.
I t h i n k you know t h a t t o r e a l l y solve t h i s problem,
w e ' l l a l l have t o put our heads together, leave our i d e o l o g i c a l armor
aside and f i n d some new ideas t o do even more. And l e t ' s be honest;
we a l l know something else too: Our problems go way beyond the reach
of government. They're rooted i n the lose of values, i n the
disappearance of work and the breakdown of our f a m i l i e s and our
communities.
My f e l l o w Americans, we can c u t the d e f i c i t , create
jobs, promote democracy around the world, pass welfare reform and
h e a l t h care, pass the toughest crime b i l l i n h i s t o r y , but s t i l l leave
too many of our people behind.
The American people have got t o want t o change from
w i t h i n i f we're going t o b r i n g back work and f a m i l y and community.
We cannot renew our country when w i t h i n a decade more than h a l f of
the c h i l d r e n w i l l be born i n t o f a m i l i e s where t h e r e has been no
marriage. We cannot renew t h i s country when 13-year-old boys get
semi-automatic weapons t o shoot 9-year-olds f o r k i c k s . We can't
renew our country when c h i l d r e n are having c h i l d r e n and the f a t h e r s
walk away as i f the kids don't amount t o anything. We can't renew
the country when our businesses eagerly look f o r new investments and
new customers abroad, but ignore those people r i g h t here a t home who
would give anything t o have t h e i r jobs and would g l a d l y buy t h e i r
products i f they had the money t o do i t . (Applause.)
We can't renew our country unless more of us — I mean
a l l of us — are w i l l i n g t o j o i n the churches and the other good
c i t i z e n s — people l i k e of the black m i n i s t e r s I've worked w i t h over
the years, or the p r i e s t s and the nuns I met a t Our Lady of Help i n
East Los Angeles, or my good f r i e n d , Tony Campollo i n P h i l a d e l p h i a —
unless we're w i l l i n g t o work w i t h people l i k e t h a t , people who are
saving k i d s , adopting schools, making s t r e e t s s a f e r — a l l o f us can
do t h a t . We can't renew our country u n t i l we r e a l i z e t h a t
governments don't r a i s e c h i l d r e n , parents do.
(Applause.)
Parents who know t h e i r c h i l d r e n ' s teachers and t u r n o f f
the t e l e v i s i o n and help w i t h the homework and teach t h e i r k i d s r i g h t
from wrong — those kinds of parents can make a l l the d i f f e r e n c e . I
know, I had one.
(Applause.)
I'm t e l l i n g you, we have got t o stop p o i n t i n g our
f i n g e r s at these k i d s who have no f u t u r e , and reach our hands out t o
them. Our country needs i t , we need i t , and they deserve i t .
(Applause.)
So I say t o you t o n i g h t , l e t ' s give our c h i l d r e n a
f u t u r e . Let us take away t h e i r guns and g i v e them books. Let us
overcome t h e i r despair and replace i t w i t h hope. Let us, by our
example, teach them t o obey the law, respect our neighbors, and
cherish our values. Let us weave these s t u r d y threads i n t o a new
American community t h a t can once more stand strong against the forces
of despair and e v i l because everybody has a chance t o walk i n t o a
b e t t e r tomorrow.
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experience of Houston, where the crime r a t e dropped 17 percent i n one
year when t h a t approach was taken.
Here t o n i g h t i s one of those community policeman — a
brave, young d e t e c t i v e , Kevin J e t t , whose beat i s e i g h t square blocks
i n one of the toughest neighborhoods i n New York. Every day he
r e s t o r e s some s a n i t y and safety and a sense of values and connections
t o t h e people whose l i v e s he p r o t e c t s . I ' d l i k e t o ask him t o stand
up and be recognized t o n i g h t .
Thank you, s i r .
(Applause.)
You w i l l be given a chance t o give the c h i l d r e n of t h i s
country, t h e law-abiding working people of t h i s country — and don't
f o r g e t , i n the toughest neighborhoods i n t h i s country, i n the highest
crime neighborhoods i n t h i s country, the vast m a j o r i t y of people get
up every day and obey the law, pay t h e i r taxes, do t h e i r best t o
r a i s e t h e i r kids. They deserve people l i k e Kevin J e t t . And you're
going t o be given a chance t o give the American people another
100,000 o f them w e l l t r a i n e d . And I urge you t o do i t . (Applause.)
You have before you crime l e g i s l a t i o n which also
e s t a b l i s h e s a p o l i c e corps t o encourage young people t o get an
education and pay i t o f f by serving as p o l i c e o f f i c e r s ; which
encourages r e t i r i n g m i l i t a r y personnel t o move i n t o p o l i c e forces, an
i n o r d i n a t e resource f o r our country — one which has a safe schools
p r o v i s i o n which w i l l give our young people the chance t o walk t o
school i n safety and t o be i n school i n safety instead of dodging
b u l l e t s . These are important t h i n g s .
(Applause.)
The t h i r d t h i n g we have t o do i s t o b u i l d on the Brady
B i l l — the Brady Law.
(Applause.) To take f u r t h e r steps t o keep
guns out o f the hands of c r i m i n a l s .
I want t o say something about t h i s issue. Hunters must
always be f r e e t o hunt. Law-abiding a d u l t s should always be f r e e t o
own guns t o p r o t e c t t h e i r homes. I respect t h a t p a r t of our c u l t u r e ,
I grew up i n i t . But I want t o ask the sportsmen and others who
l a w f u l l y own guns t o j o i n us i n t h i s campaign t o reduce gun violence.
I say t o you, I know you d i d n ' t create t h i s problem, but we need your
help t o solve i t . There i s no s p o r t i n g purpose on Earth t h a t should
stop the United States Congress from banishing assault weapons t h a t
out-gun p o l i c e and c u t down c h i l d r e n .
(Applause.)
Fourth, we must remember t h a t drugs are a f a c t o r i n an
enormous percentage o f crimes. Recent studies i n d i c a t e , sadly, t h a t
drug use i s on the r i s e again among our young people. The crime b i l l
contains — a l l the crime b i l l s contain — more money f o r drug
treatment f o r c r i m i n a l addicts, and boot camps f o r y o u t h f u l offenders
t h a t include i n c e n t i v e s t o get o f f drugs and t o stay o f f drugs.
Our a d m i n i s t r a t i o n ' s budget w i t h a l l i t s cuts can p a i n t
a l a r g e increase i n funding f o r drug treatment and drug education.
You must pass them both. We need them desperately.
(Applause.)
My f e l l o w Americans, the problem of v i o l e n c e i s an
American problem. I t has no p a r t i s a n or p h i l o s o p h i c a l element.
Therefore, I urge you t o f i n d ways as q u i c k l y as p o s s i b l e t o set
aside p a r t i s a n d i f f e r e n c e s and pass a strong, smart, tough crime
bill.
(Applause.) But f u r t h e r , I urge you t o consider t h i s : As you
demand tougher p e n a l t i e s f o r those who choose v i o l e n c e , l e t us also
remember how we came t o t h i s sad p o i n t .
I n our toughest neighborhoods, on our meanest s t r e e t s ,
i n our poorest r u r a l areas, we have seen a stunning and simultaneous
breakdown of community, family and work — the h e a r t and soul of
c i v i l i z e d society. This has created a vast vacuum which has been
f i l l e d by violence and drugs and gangs. So I ask you t o remember
MORE
�- 13 -
Oh, there w i l l be naysayers who fear t h a t we won't be
equal t o the challenges of t h i s time. But they misread our h i s t o r y ,
our h e r i t a g e . Even today's headlines — a l l those t h i n g s t e l l us we
can and we w i l l overcome any challenge.
When the earth shook and f i r e s raged i n C a l i f o r n i a , when
I saw the M i s s i s s i p p i deluge the farmlands o f t h e Midwest i n a 500year f l o o d , when the century's b i t t e r e s t c o l d swept from North Dakota
to Newport News, i t seemed as though the w o r l d i t s e l f was coming
apart a t t h e seams. But t h e American people — they j u s t came
together. They rose t o the occasion, neighbor helping neighbor,
strangers r i s k i n g l i f e and limb t o save t o t a l strangers — showing
the b e t t e r angels of our nature.
Let us not reserve the b e t t e r angels only f o r n a t u r a l
d i s a s t e r s , l e a v i n g our deepest and most profound problems t o p e t t y
political fighting.
(Applause.) Let us instead be t r u e t o our
s p i r i t — f a c i n g f a c t s , coming together, b r i n g i n g hope and moving
forward.
Tonight, my f e l l o w Americans, we are summoned t o answer
a question as o l d as the r e p u b l i c i t s e l f : What i s t h e s t a t e of our
union? I t i s growing stronger, b u t i t must be stronger s t i l l .
With
your help, and God's help, i t w i l l be.
Thank you and God bless America.
END
(Applause.)
10:18 P.M. EST
�THE WHITE HOUSE
O f f i c e of the Press Secretary
For Immediate Release
~
January 24, 199 5
REMARKS BY THE PRESIDENT
IN STATE OF THE UNION ADDRESS
U.S.
9:14
Capitol
P.M. EST
THE PRESIDENT: Mr. President, Mr. Speaker, members of
the 104th Congress, my f e l l o w Americans: Again we are here i n the
sanctuary of democracy, and once again, our democracy has spoken. So
l e t me begin by c o n g r a t u l a t i n g a l l of you here i n the 104th Congress,
and c o n g r a t u l a t i n g you, Mr. Speaker. (Applause.)
I f we agree on nothing else t o n i g h t , we must agree t h a t
the American people c e r t a i n l y voted f o r change i n 1992 and i n 1994.
(Applause.) And as I look out at you, I know how some of you must
have f e l t i n 1992.
(Laughter and applause.)
I must say t h a t i n both years we d i d n ' t hear America
s i n g i n g , we heard America shouting. And now a l l of us, Republicans
and Democrats a l i k e , must say: We hear you. We w i l l work together
t o earn the jobs you have given us.
(Applause.) For we are the
keepers o f the sacred t r u s t , and we must be f a i t h f u l t o i t i n t h i s
new and very demanding era.
Over 200 years ago, our founders changed the e n t i r e
course of human h i s t o r y by j o i n i n g together t o create a new country
based on a s i n g l e powerful idea: " e hold these t r u t h s t o be s e l f W
evident, t h a t a l l men are created equal, endowed by t h e i r Creator
w i t h c e r t a i n i n a l i e n a b l e r i g h t s , and among these are l i f e , l i b e r t y
and the p u r s u i t of happiness."
I t has f a l l e n t o every generation since then t o preserve
t h a t idea — the American idea — and t o deepen and expand i t s
meaning t o new and d i f f e r e n t times: To L i n c o l n and h i s Congress, t o
preserve the Union and t o end slavery. To Theodore Roosevelt and
Woodrow Wilson, t o r e s t r a i n the abuses and excesses o f the I n d u s t r i a l
Revolution, and t o assert our leadership i n the world. To F r a n k l i n
Roosevelt, t o f i g h t the f a i l u r e and pain of the Great Depression, and
t o win our country's great s t r u g g l e against fascism. And t o a l l our
presidents since, t o f i g h t the Cold War.
Especially, I r e c a l l two who s t r u g g l e d t o f i g h t t h a t
Cold War i n partnership w i t h congresses where the m a j o r i t y was of a
d i f f e r e n t p a r t y . To Harry Truman, who summoned us t o u n p a r a l l e l e d
p r o s p e r i t y a t home, and who b u i l t the a r c h i t e c t u r e of the Cold War.
And t o Ronald Reagan, whom we wish w e l l t o n i g h t , and who exhorted us
to c a r r y on u n t i l the t w i l i g h t s t r u g g l e against communism was won.
(Applause.)
I n another time of change and challenge, I had the honor
t o be the f i r s t president t o be elected i n the post-Cold War era, an
era marked by the global economy, the information r e v o l u t i o n ,
u n p a r a l l e l e d change and opportunity and i n s e c u r i t y f o r the American
people.
mission
I came to t h i s hallowed chamber two years ago on a
to restore the American Dream f o r a l l our people and t o
MP I
O.
�- 2 -
make sure that we move into the 21st century s t i l l the strongest
force for freedom and democracy in the entire world. I was
determined then to tackle the tough problems too long ignored. In
t h i s effort I am frank to say that I have made my mistakes, and I
have learned again the importance of humility in a l l human endeavor.
But I am also proud to say tonight that our country i s stronger than
i t was two years ago.
(Applause.)
Record numbers — record numbers of Americans are
succeeding in the new global economy. We are at peace and we are a
force for peace and freedom throughout the world. We have almost s i x
m i l l i o n new jobs since I became president, and we have the lowest
combined rate of unemployment and i n f l a t i o n in 25 years. (Applause.)
Our businesses are more productive and here we have worked to bring
the d e f i c i t down, to expand trade, to put more police on our streets,
to give our c i t i z e n s more of the tools they need to get an education
and to rebuild their own communities.
But the r i s i n g tide i s not l i f t i n g a l l boats. While our
nation i s enjoying peace and prosperity, too many of our people are
s t i l l working harder and harder, for l e s s and l e s s . While our
businesses are restructuring and growing more productive and
competitive, too many of our people s t i l l can't be sure of having a
job next year or even next month. And far more than our material
riches are threatened; things far more precious too us — our
children, our families, our values.
Our c i v i l l i f e i s suffering in America today. Citizens
are working together less and shouting at each other more. The
common bonds of community which have been the great strength of our
country from i t s very beginning are badly frayed. What are we to do
about i t ?
More than 60 years ago, at the dawn of another new era,
President Roosevelt told our nation, "New conditions impose new
requirements on government and those who conduct government." And
from that simple proposition, he shaped the New Deal, which helped to
restore our nation to prosperity and define the relationship between
our people and t h e i r government for h a l f a century.
That approach worked in i t s time. But we today, we face
a very different time and very different conditions. We are moving
from an I n d u s t r i a l Age built on gears and sweat to an Information Age
demanding s k i l l s and learning and f l e x i b i l i t y . Our government, once
a champion of national purpose, i s now seen by many as simply a
captive of narrow interests, putting more burdens on our c i t i z e n s
rather than equipping them to get ahead. The values that used to
hold us a l l together seem to be coming apart.
So tonight, we must forge a new s o c i a l compact to meet
the challenges of t h i s time. As we enter a new era, we need a new
set of understandings, not just with government, but even more
important, with one another as Americans.
That's what I want to t a l k with you about tonight. I
c a l l i t the New Covenant. But i t ' s grounded in a very, very old idea
— that a l l Americans have not just a right, but a solid
r e s p o n s i b i l i t y to r i s e as far as their God-given talents and
determination can take them; and to give something back to their
communities and their country in return. Opportunity and
r e s p o n s i b i l i t y : They go hand in hand. We can't have one without the
other. And our national community can't hold together without both.
(Applause.)
Our New Covenant i s a new set. of understandings for how
we can equip our people to meet the challenges of a new economy, r.ow
we can change the way our government worr.s to f i t a different time,
and, above a l l , how we can repair the damaged bonds in our society
::OP.Z
�- 3 -
and come together behind our common purpose. We must have dramatic
change in our economy, our government and ourselves.
My fellow Americans, without regard to party, l e t us
r i s e to the occasion. Let us put aside partisanship and pettiness
and pride. As we embark on this new course, l e t us put our country
f i r s t , remembering that regardless of party label, we are a l l
Americans. And l e t the f i n a l test of everything we do be a simple
one:
I s i t good for the American people? (Applause.)
Let me begin by saying that we cannot ask Americans to
be better c i t i z e n s i f we are not better servants. You made a good
s t a r t by passing that law which applies to Congress a l l the laws you
put on the private sector, and I was proud to sign i t yesterday.
(Applause.)
But we have a lot more to do before people r e a l l y trust
the way things work around here. Three times as many lobbyists are
in the s t r e e t s and corridors of Washington as were here 2 0 years ago.
The American people look at their capital and they see a c i t y where
the well-connected and the well-protected can work the system, but
the i n t e r e s t s of ordinary c i t i z e n s are often l e f t out.
As the new Congress opened i t s doors, lobbyists were
s t i l l doing business as usual — the g i f t s , the t r i p s , a l l the things
that people are concerned about haven't stopped. Twice t h i s month
you missed opportunities to stop these practices. I know there were
other considerations in those votes, but I want to use something that
I've heard my Republican friends say from time to time — there
doesn't have to be a law for everything. So tonight, I ask you to
j u s t stop taking the lobbyists' perks. Just stop. (Applause.)
We don't have to wait for l e g i s l a t i o n to pass to send a
strong signal to the American people that things are r e a l l y changing.
But I also hope you w i l l send me the strongest possible lobby reform
b i l l , and I ' l l sign that, too.
(Applause.)
We should require lobbyists to t e l l the people for whom
they work what they're spending, what they want. We should also curb
the role of big money in elections by capping the cost of campaigns
and l i m i t i n g the influence of PACs. (Applause.)
And as I have said for three years, we should work to
open the airwaves so that they can be an instrument of democracy, not
a weapon of destruction by giving free TV time to candidates for
public o f f i c e . (Applause.)
When the l a s t Congress k i l l e d p o l i t i c a l reform l a s t
year, i t was reported in the press that the lobbyists actually stood
in the h a l l s of t h i s sacred building and cheered. This year, l e t ' s
give the folks at home something to cheer about. (Applause.)
More important, I think we a l l agree that we have to
change the way the government works. Let's make i t smaller, less
costly and smaller — leaner, not meaner. (Applause.)
and well.
I just told the Speaker the equal time doctrine i s alive
(Laughter.)
The Mew Covenant approach t o governing i s as d i f f e r e n t
from the o l d bureaucratic way as the computer i s from the manual
t y p e w r i t e r . The o l d way of governing around here protected organized
i n t e r e s t s . We should look out f o r ~he i n t e r e s t s of ordinary people.
The o l d way divided us by i n t e r e s t , ccristituency or class. The :"w
.e
Covenant way should unite us behind a common v i s i o n of what's best
f o r our country. The old way dispensed services through large, topdown, i n f l e x i b l e bureaucracies. The ::ew Covenant way should s h i f t
these resources and decision-making from bureaucrats t o c i t i z e n s ,
�- 4 -
injecting choice and competition and individual responsibility into
national policy. (Applause.)
The old way of governing around here actually seemed to
reward f a i l u r e . The New Covenant way should have b u i l t - i n incentives
to reward success. The old way was centralized here in Washington.
The New Covenant way must take hold in the communities a l l across
America. And we should help them to do that. (Applause.)
Our job
to empower people to
our security here at
do what we should do
a partner to help us
(Applause.)
here i s to expand opportunity, not bureaucracy;
make the most of their own l i v e s ; and to enhance
home and abroad. We must not ask government to
for ourselves. We should rely on government as
to do more for ourselves and for each other.
I hope very much that as we debate these s p e c i f i c and
exciting matters, we can go beyond the s t e r i l e discussion between the
i l l u s i o n that there i s somehow a program for every problem on the one
hand, and the other i l l u s i o n that the government i s a source of every
problem we have. Our job i s to get r i d of yesterday's government so
that our own people can meet today's and tomorrow's needs. And we
ought to do i t together. (Applause.)
You know, for years before T became president, I heard
others say they would cut government and how bad i t was. But not
much happened. We actually did i t . We cut over a quarter of a
t r i l l i o n dollars in spending, more than 300 domestic programs, more
than 100,000 positions from the federal bureaucracy i n the l a s t two
years alone. Based on decisions already made, we w i l l have cut a
t o t a l of more than a quarter of a million positions from the federal
government, making i t the smallest i t has been since John Kennedy was
president, by the time I come here again next year. (Applause.)
Under the leadership of Vice President Gore, our
i n i t i a t i v e s have already saved taxpayers $63 b i l l i o n . The age of the
$500 hammer and the ashtray you can break on David Letterman i s gone.
Deadwood programs, l i k e mohair subsidies, are gone. We've
streamlined the Agriculture Department by reducing i t by more than
1,200 o f f i c e s . We've slashed the small business loan form from an
inch thick to a single page. We've thrown away the government's
10,000-page personnel manual. And the government i s working better
in important ways: FEMA, the Federal Emergency Management Agency,
has gone from being a disaster to helping people in disasters.
(Applause.)
You can ask the farmers in the Middle West who fought
the flood there or the people in California who have dealt with
floods and earthquakes and f i r e s , and t h e y ' l l t e l l you that.
Government workers, working hand in hand with private business,
r e b u i l t Southern California's fractured freeways in record time and
under budget. And because the federal government moved fast, a l l but
one of the 5,600 schools damaged in the earthquake are back in
business.
Now, there are a lot of other things that I could talk
about. I want to just mention one because i t w i l l be discussed here
in the next few weeks. University administrators a l l over the
country have told me that they are saving weeks and weeks of
bureaucratic time now because of cur direct college loan program,
which makes college loans cheaper and more affordable, with better
repayment terms for students, costs the government less, and cuts out
paperwork and bureaucracy for the government and for the
u n i v e r s i t i e s . We shouldn't cap that program. We should give every
college in America the opportunity to be a part of i t .
(Applause.)
Previous government programs gather dust. The
reinventing government report i s getting results. And we're not
�- o -
through. There's going to be a second round of r e i n v e n t i n g
government.
We propose to cut $130 b i l l i o n i n spending by s h r i n k i n g
departments, extending our freeze on domestic spending, c u t t i n g 60
p u b l i c housing programs down t o three, g e t t i n g r i d of over 100
programs we do not need, l i k e the I n t e r s t a t e Commerce Commission and
the Helium Reserve Program. (Applause.) And we're working on
g e t t i n g r i d of unnecessary regulations and making them more sensible.
The programs and regulations t h a t have o u t l i v e d t h e i r usefulness
should go. We have t o cut yesterday's government t o help solve
tomorrow's problems.
(Applause.)
And we need t o get government closer t o the people i t s
meant t o serve. We need t o help move programs down t o the p o i n t
where s t a t e s and communities and p r i v a t e c i t i z e n s i n the p r i v a t e
sector can do a b e t t e r job. I f they can do i t , we ought t o l e t them
do i t . We should get out of the way and l e t them do what they can do
better.
(Applause.)
Taking power away from f e d e r a l bureaucracies and g i v i n g
i t back t o communities and i n d i v i d u a l s i s something everyone should
be able t o be f o r . I t ' s time f o r Congress t o stop passing on t o the
s t a t e the cost of decisions we make here i n Washington.
(Applause.)
I know there are s t i l l serious d i f f e r e n c e s over the
d e t a i l s of the unfunded mandates l e g i s l a t i o n , but I want t o work w i t h
you t o make sure we pass a reasonable b i l l which w i l l p r o t e c t the
n a t i o n a l i n t e r e s t s and give j u s t i f i e d r e l i e f where we need t o give
it.
(Applause.)
For years, Congress concealed i n the budget scores of
pet spending p r o j e c t s . Last year was no d i f f e r e n t . There was a $1
m i l l i o n t o study stress i n p l a n t s , and $12 m i l l i o n f o r a t i c k removal
program t h a t d i d n ' t work. I t ' s hard t o remove t i c k s ? those of us who
have had them know. (Laughter.) But, I ' l l t e l l you something; i f
y o u ' l l g i v e me the l i n e - i t e m veto, I ' l l remove some of t h a t
unnecessary spending. (Applause.)
But I t h i n k we should a l l
would agree, t h a t government s t i l l has
Our young people — we should t h i n k of
people h o l d our f u t u r e i n t h e i r hands.
veterans. (Applause.) And our senior
are.
remember, and almost a l l of us
important r e s p o n s i b i l i t i e s .
t h i s when we cut — our young
We s t i l l owe a debt t o our
c i t i z e n s have made us what we
Now, my budget cuts a l o t . But i t p r o t e c t s education,
veterans, Social Security and Medicare — (applause) — and I hope
you w i l l do the same t h i n g . (Applause.) You should, and I hope you
will.
(Applause.)
And when we give more f l e x i b i l i t y t o the states, l e t us
remember t h a t there are c e r t a i n fundamental n a t i o n a l needs t h a t
should be addressed i n every s t a t e , north and south, east and west —
immunization against childhood disease — (applause) — school
lunches i n a l l our schools — (applause) — Head S t a r t , medical care
and n u t r i t i o n f o r pregnant women and i n f a n t s — (applause) — medical
care and n u t r i t i o n f o r pregnant women and i n f a n t s .
(Applause.) A l l
these t h i n g s — (applause) — a l l these things are i n the national
interest.
I applaud your desire t o get r i d of c o s t l y and
unnecessary r e g u l a t i o n s . But when we deregulate, l e t ' s remember what
n a t i o n a l a c t i o n i n the national i n t e r e s t has given us: safer foods
for our f a m i l i e s , safer toys f o r our c h i l d r e n , safer nursing homes
for our parents, safer cars and highways, and safer workplaces, clean
a i r and cleaner water. Do we need common sense and fairness i n our
r e g u l a t i o n s ? You bet we do. But we can have common sense and s t i l l
provide f o r safe d r i n k i n g water. We can have f a i r n e s s and s t i l l
clean up t o x i c dumps, and we ought t o do i t . (Applause.)
�- 6-
Should we cut the d e f i c i t more? Well, of course, we
should. Of course, we should. (Applause.) But we can bring i t down
in a way that s t i l l protects our economic recovery and does not
unduly punish people who should not be punished, but instead should
be helped.
I know many of you in t h i s chamber support the balanced
budget amendment. (Applause.) I certainly want to balance the
budget. Our administration has done more to bring the budget down
and to save money than any in a very, very long time. (Applause.)
I f you believe passing this amendment i s the right thing to do, then
you have to be straight with the American people. They have a right
to know what you're going to cut — (applause) — and how i t ' s going
to affect them. (Applause.)
We should be doing things i n the open around here. For
example, everybody ought to know i f t h i s proposal i s going to
endanger Social Security. (Applause.) I would oppose that, and I
think most Americans would.
Nothing i s done more to undermine our sense of common
r e s p o n s i b i l i t y than our f a i l e d welfare system. This i s one of the
problems we have to face here i n Washington i n our New Covenant. I t
rewards welfare over work. I t undermines family values. I t l e t s
millions of parents get away without paying t h e i r child support. I t
keeps a minority, but a s i g n i f i c a n t minority of the people on welfare
trapped on i t for a very long time.
I worked on t h i s problem f c r a long time, nearly 15
years now. As a governor I had the honor of working with the Reagan
administration to write the l a s t welfare reform b i l l back i n 1988.
In the l a s t two years we made a good s t a r t i n continuing the work of
welfare reform. Our administration gave two dozen states the right
to slash through federal rules and regulations to reform their own
welfare systems, and to t r y to promote work and responsibility over
welfare and dependency.
Last year I introduced the most sweeping welfare reform
plan ever presented by an administration. We have to make welfare
what i t was meant to be — a second chance, not a way of l i f e . We
have to help those on welfare move to work as quickly as possible, to
provide child care and teach them s k i l l s i f that's what they need for
up to two years. And after that, there ought to be a simple hard
r u l e : anyone who can work must go to work. (Applause.) I f a parent
i s n ' t paying c h i l d support, they should be forced to pay.
(Applause.) We should suspend drivers' licenses, track the across
state l i n e s , make them work off what they owe. That i s what we
should do. Governments do not r a i s e children, people do. And the
parents must take responsibility for the children they bring into
t h i s world.
(Applause.)
I want t o work w i t h you, w i t h a l l o f you, t o pass
w e l f a r e reform. But our goal must be t o l i b e r a t e people and l i f t
them up, from dependence t o independence, from welfare t o work, from
mere c h i l d b e a r i n g t o responsible parenting. Our goal should not be
t o punish them because they happen t o be poor. (Applause.)
We should — we should require work and mutual
r e s p o n s i b i l i t y . But we shouldn't cut people o f f j u s t because they're
poor, they're young, or even because they're unmarried. We should
promote r e s p o n s i b i l i t y by r e q u i r i n g young mothers t o l i v e a t home
w i t h t h e i r parents or i n other supervised s e t t i n g s , by r e q u i r i n g them
t o f i n i s h school. But we shouldn't put them and t h e i r c h i l d r e n out
on the s t r e e t . (Applause.)
And I know a l l the arguments, pro and con, and I have
read and thought about t h i s f o r a long time. I s t i l l don't t h i n k we
"ORE
�- 7 -
can in good conscious punish poor children for the mistakes of their
parents. (Applause.) My fellow Americans, every single survey shows
that a l l the American people care about t h i s without regard to party
or race or region. So l e t this be the year we end welfare as we know
i t . But also l e t this be the year that we are a l l able to stop using
t h i s issue to divide America.
No one i s more eager to end welfare — (applause.) I
may be the only president who has actually had the opportunity to s i t
in a welfare office, who's actually spent hours and hours talking to
people on welfare. And I am t e l l i n g you, people who are trapped on
i t know i t doesn't work. They also want to get off. So we can
promote together education and work and good parenting. I have no
problem with punishing bad behavior or the refusal to be a worker or
a student, or a responsible parent. I j u s t don't want to punish
poverty and past mistakes. A l l of us have made our mistakes, and
none of us can change our yesterdays. But every one of us can change
our tomorrows. (Applause.)
And America's best example of that may be Lynn Woolsey,
who worked her way off welfare to become a congresswoman from the
state of C a l i f o r n i a . (Applause.)
I know the members of t h i s Congress are concerned about
crime, as are a l l the citizens of our country. And I remind you that
l a s t year, we passed a very tough crime b i l l — longer sentences,
three s t r i k e s and you're out, almost 60 new capital punishment
offenses, more prisons, more prevention, 100,000 more police. And we
paid for i t a l l by reducing the s i z e of the federal bureaucracy and
giving the money back to local communities to lower the crime rate.
There may be other things we can do to be tougher on
crime, to be smarter with crime, to help to lower that rate f i r s t .
Well, i f there are, l e t ' s talk about them and l e t ' s do them. But
l e t ' s not go back on the things that we did l a s t year that we know
work; that we know work because the l o c a l law enforcement o f f i c e r s
t e l l us that we did the right things, because local community leaders
who have worked for years and years to lower the crime rate t e l l us
that they work.
Let's look at the experience of our c i t i e s and our rural
areas where the crime rate has gone down and ask the people who did
i t how they did i t . And i f what we did l a s t year supports the
decline i n the crime rate — and I am convinced that i t does — l e t
us not go back on i t . Let's s t i c k with i t , implement i t . We've got
four more hard years of work to do to do that. (Applause.)
I don't want to destroy the good atmosphere in the room
or in the country tonight, but I have to mention one issue that
divided t h i s body greatly l a s t year. The l a s t Congress also passed
the Brady B i l l and, in the crime b i l l , the ban on 19 assault weapons.
I don't think i t ' s a secret to anybody i n t h i s room that several
members of the l a s t Congress who voted for that aren't here tonight
because they voted for i t . (Applause.) And I know, therefore, that
some of you who are here because they voted for i t are under enormous
pressure to repeal i t . I just have to t e l l you how I feel about i t .
The members of Congress who voted for that b i l l and I
would never do anything to infringe on the right to keep and bear
arms to hunt and to engage in other appropriate sporting a c t i v i t i e s .
I've done i t since I was a boy, and I'm going to keep right on doing
i t u n t i l I can't do i t anymore. But a l o t of people laid down their
seats in Congress so that police o f f i c e r s and kids wouldn't have to
lay down t h e i r l i v e s under a hail of assault weapon attack -- and I
w i l l not l e t that be repealed. (Applause.) I w i l l not l e t i t be
repealed. (Applause.)
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I'd l i k e to talk about a couple of other issues we have
to deal with. I want us to cut more spending, but I hope we won't
cut government programs that help to prepare us for the new economy,
promote responsibility and are organized from the grass roots up, not
by federal bureaucracy. The very best example of this i s the
National Service Corps
AmeriCorps. (Applause.)
I t passed with strong bipartisan support. And now there
are 20,000 Americans, more than every served i n one year in the Peace
Corps, working a l l over this country, helping people person to person
in l o c a l , grass-roots volunteer groups, solving problems and, i n the
process, earning some money for t h e i r education. This i s citizenship
at i t s best. I t ' s good for the AmeriCorps members, but i t ' s good for
the rest of us, too. I t ' s the essence of the New Covenant, and we
shouldn't stop i t . (Applause.)
A l l Americans, not only in the states most heavily
affected, but i n every place in this country, are rightly disturbed
by the large numbers of i l l e g a l aliens entering our country. The
jobs they hold might otherwise be held by c i t i z e n s or legal
immigrants. The public service they use impose burdens on our
taxpayers. That's why our administration has moved aggressively to
secure our borders more by hiring a record number of new border
guards, by deporting twice as many criminal a l i e n s as ever before, by
cracking down on i l l e g a l hiring, by barring welfare benefits to
i l l e g a l aliens.
In the budget I w i l l presenc to you we w i l l try to do
more to speed the deportation of i l l e g a l a l i e n s who are arrested for
crimes, to better identify i l l e g a l aliens i n the workplace as
recommended by the commission headed by former Congresswoman Barbara
Jordan.
We are a nation of immigrants. But we are also a nation
of laws. I t i s wrong and ultimately self-defeating for a nation of
immigrants to permit the kind of abuse of our immigration laws we
have seen i n recent years, and we must do more to stop i t .
(Applause.)
The most important job of our government in this new era
i s to empower the American people to succeed i n the global economy.
America has always been a land of opportunity, a land where, i f you
work hard, you can get ahead. We've become a great middle class
country. Middle c l a s s values sustain us. We must expand that middle
c l a s s , and shrink the underclass, even as we do everything we can to
support the millions of Americans who are already successful in the
new economy.
America i s once again the world's strongest economic
power, almost s i x million new jobs in the l a s t two years, exports
booming, i n f l a t i o n down, high-wage jobs are coming back. A record
number of American entrepreneurs are l i v i n g the American Dream. I f
we want i t to stay that way, those who work and l i f t our nation must
have more of i t s benefits.
Today, too many of those people are being l e f t out.
They're working harder for less. They have l e s s security, less
income, less certainty that they can even afford a vacation, much
l e s s college for t h e i r kids or retirement for themselves. We cannot
l e t t h i s continue.
I f we don't act, our economy w i l l probably keep doing
what i t ' s been doing since about 1978, when the income growth began
to go to those at the very top of our economic scale and the people
in the vast middle got very l i t t l e growth, and people who worked l i k e
crazy but were on the bottom then f e l l even further and further
behind in the years afterward -- no matter how hard they worked.
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We've got t o have a government t h a t can be a r e a l
partner i n making t h i s new economy work f o r a l l of our people; a
government t h a t helps each and every one of us t o get an education,
and t o have the opportunity t o renew our s k i l l s . That's why we
worked so hard t o increase educational o p p o r t u n i t i e s i n the l a s t two
years — from Head S t a r t t o p u b l i c schools, t o apprenticeships f o r
young people who don't go t o c o l l e g e , t o making c o l l e g e loans more
a v a i l a b l e and more affordable. That's the f i r s t t h i n g we have t o do.
We've got t o do something t o empower people t o improve t h e i r s k i l l s .
The second t h i n g we ought t o do i s t o help people r a i s e
t h e i r incomes immediately by lowering t h e i r taxes. (Applause.)
We
took the f i r s t step i n 1993 w i t h a working f a m i l y tax cut f o r 15
m i l l i o n f a m i l i e s w i t h incomes under $27,000; a tax cut t h a t t h i s year
w i l l average about $1,000 a family. And we also gave tax reductions
t o most small and new businesses.
Before we could do more than t h a t , we f i r s t had t o b r i n g
down the d e f i c i t we i n h e r i t e d , and we had t o get economic growth up.
Now we've done both. And now we can cut taxes i n a more
comprehensive way.
But tax cuts should r e i n f o r c e and promote our
f i r s t o b l i g a t i o n — t o empower our c i t i z e n s through education and
t r a i n i n g t o make the most of t h e i r own l i v e s .
The s p o t l i g h t should shine on those who make the r i g h t
choices f o r themselves, t h e i r f a m i l i e s and t h e i r communities.
I have
proposed the Middle Class B i l l of Rights, which should p r o p e r l y be
c a l l e d the B i l l of Rights and R e s p o n s i b i l i t i e s because i t s p r o v i s i o n s
only b e n e f i t those who are working t o educate and r a i s e t h e i r
c h i l d r e n and t o educate themselves.
I t w i l l , t h e r e f o r e , give needed
tax r e l i e f and r a i s e incomes i n both the short run and the long run
i n a way t h a t b e n e f i t s a l l of us.
There are four p r o v i s i o n s . F i r s t , a tax deduction f o r
a l l education and t r a i n i n g a f t e r high school. (Applause.) I f you
t h i n k about i t , we permit businesses t o deduct t h e i r investment, we
permit i n d i v i d u a l s t o deduct i n t e r e s t on t h e i r home mortgages, but
today an education i s even more important t o the economic well-being
of our whole country than even those t h i n g s are. We should do
everything we can t o encourage i t . And I hope you w i l l support i t .
Second, we ought t o cut taxes, $500 f o r f a m i l i e s w i t h
c h i l d r e n under 13.
(Applause.)
T h i r d , we ought t o f o s t e r more savings and personal
r e s p o n s i b i l i t y by p e r m i t t i n g people t o e s t a b l i s h an I n d i v i d u a l
Retirement Account and withdraw from i t tax f r e e f o r the cost of
education, h e a l t h care, f i r s t - t i m e home-buying or the care of a
parent.
(Applause.)
And f o u r t h , we should pass a G.I. B i l l f o r America's
workers. We propose t o collapse nearly 70 f e d e r a l programs and not
give the money t o the states, but give the money d i r e c t l y t o the
American people; o f f e r vouchers t o them so t h a t they, i f they're l a i d
o f f or i f they're working f o r a very low wage, can get a voucher
worth $2,600 a year f o r up t o two years t o go t o t h e i r l o c a l
community colleges or wherever else they want t o get the s k i l l s they
need t o improve t h e i r l i v e s . Let's empower people i n t h i s way. Move
i t from the government d i r e c t l y t o the workers of America.
(Applause.)
Now, any one of us can c a l l f o r a tax cut, but I won't
accept one t h a t explodes the d e f i c i t or puts our recovery at r i s k .
We ought t o pay f o r our tax cuts f u l l y and honestly.
(Applause.)
Just two years ago, i t was an open question whether we
would f i n d the strength to cut the d e f i c i t . Thanks t o the courage of
the people who were here then, -any of wnom d i d n ' t r e t u r n , we d i d cut
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the d e f i c i t . We began to do what others said would not be done. We
cut the d e f i c i t by over $600 b i l l i o n , about $10,000 for every family
in t h i s country.
I t ' s coming down three years in a row for the f i r s t
time since Mr. Truman was president, and I don't think anybody in
America wants us to l e t i t explode again.
(Applause.)
In the budget I w i l l send you, the Middle Class B i l l of
Rights i s f u l l y paid for by budget cuts i n bureaucracy, cuts i n
programs, cuts i n special interest subsidies. And the spending cuts
w i l l more than double the tax cuts. My budget pays for the Middle
Class B i l l of Rights without any cuts i n Medicare. And I w i l l oppose
any attempts to pay for tax cuts with Medicare cuts. That's not the
right thing to do. (Applause.)
I know that a lot of you have your own ideas about tax
r e l i e f , and some of them I find quite interesting. I r e a l l y want to
work with a l l of you. My test for our proposals w i l l be: W i l l i t
create jobs and raise incomes? Will i t strengthen our families and
support our children? I s i t paid for? W i l l i t build the middle
c l a s s and shrink the underclass? I f i t does, I ' l l support i t . But
i f i t doesn't, I won't.
The goal of building the middle c l a s s and shrinking the
underclass i s also why I believe that you should raise the minimum
wage. (Applause.) I t rewards work. Two and a half million
Americans — 2.5 million Americans, often women with children, are
working out there today for $4.25 an hour. I n terms of real buying
power, by next year that minimum wage w i l l be at a 40-year low.
That's not my idea of how the new economy ought to work.
Now, I've studied the arguments and the evidence for and
against a minimum wage increase. I believe the weight of the
evidence i s that a modest increase does not cost jobs, and may even
lure people back into the job market. But the most important thing
i s , you can't make a l i v i n g on $4.25 an hour. (Applause.)
Especially i f you have children, even with the working families tax
cut we passed l a s t year. In the past, the minimum wage has been a
bipartisan issue, and I think i t should be again. So I want to
challenge you to have honest hearings on t h i s ; to get together; to
find a way to make the minimum wage a l i v i n g wage.
Members of Congress have been here l e s s than a month,
but by the end of the week, 2 8 days into the new year, every member
of Congress w i l l have earned as much i n congressional salary as a
minimum wage worker makes a l l year long.
(Applause.)
Everybody else here, i n c l u d i n g the President, has
something else t h a t too many Americans do w i t h o u t , and t h a t ' s h e a l t h
care. Now, l a s t year, we almost came t o blows over health care. But
we d i d n ' t do anything. And the cold, hard f a c t i s t h a t , since l a s t
year, since I was here, another 1.1 m i l l i o n Americans i n working
f a m i l i e s have l o s t t h e i r h e a l t h care. And t h e c o l d , hard f a c t i s
t h a t many m i l l i o n s more, most of them farmers and small
businesspeople and self-employed people, have seen t h e i r premiums
skyrocket, t h e i r co-pays and deductibles go up. There's a whole
bunch o f people i n t h i s country t h a t , i n the s t a t i s t i c s have h e a l t h
insurance, but r e a l l y what they've got i s a piece o f paper t h a t says
they won't lose t h e i r home i f they get s i c k .
Now, I s t i l l believe our country has got t o move toward
p r o v i d i n g h e a l t h s e c u r i t y f o r every American f a m i l y .
(Applause.)
But I know t h a t l a s t year, as the evidence i n d i c a t e s , we b i t o f f more
than we could chew. So I'm asking you t h a t we work together. Let's
do i t step by step. Let's do whatever we have t o do t o get something
done. Let's at l e a s t pass meaningful insurance reform so t h a t no
American r i s k s l o s i n g coverage f o r facing skyrocketing prices.
(Applause.) That nobody loses t h e i r coverage because they face high
MR
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�- 11 -
prices or unavailable insurance, when they change jobs and lose a
job, or a family member gets s i c k .
I want to work together with a l l of you who have an
interest in t h i s — with the Democrats who worked on i t l a s t time,
with the Republican leaders l i k e Senator Dole who has a longtime
commitment to health care reform and made some constructive proposals
in t h i s area l a s t year. We ought to make sure that self-employed
people in small businesses can buy insurance at more affordable rates
through voluntary purchasing pools. We ought to help families
provide long-term care for a sick parent or a disabled c h i l d . We can
work to help workers who lose their jobs at l e a s t keep t h e i r health
insurance coverage for a year while they look for work. And we can
find a way — i t may take some time, but we can find a way — to make
sure that our children have health care. (Applause.)
You know, I think everybody in t h i s room, without regard
to party, can be proud of the fact that our country was rated as
having the world's most productive economy for the f i r s t time in
nearly a decade. But we can't be proud of the fact that we're the
only wealthy country in the world that has a smaller percentage of
the work force and their children with health insurance today than we
did 10 years ago, the l a s t time we were the most productive economy
in the world. So l e t ' s work together on t h i s . I t i s too important
for p o l i t i c s as usual. (Applause.)
Much of what the American people are thinking about
tonight i s what we've already talked about. A l o t of people think
that the security concerns of America today are entirely internal to
our borders. They relate to the security of our jobs and our homes,
and our incomes and our children, our streets, our health and
protecting those borders. Now that the Cold War has passed, i t ' s
tempting to believe that a l l the security issues, with the possible
exception of trade, reside here at home. But i t ' s not so. Our
security s t i l l depends upon our continued world leadership for peace
and freedom and democracy. We s t i l l can't be strong at home unless
we're strong abroad.
The financial c r i s i s in Mexico i s a case in point. I
know i t ' s not popular to say i t tonight, but we have to act. Not for
the Mexican people, but for the sake of the millions of Americans
whose livelihoods are tied to Mexico's well-being. I f we want to
secure American jobs, preserve American exports, safeguard America's
borders, then we must pass the s t a b i l i z a t i o n program and help to put
Mexico back on track.
Now l e t me repeat: i t ' s not a loan, i t ' s not f o r e i g n
aid, i t ' s not a b a i l out. We w i l l be given a guarantee l i k e cos i g n i n g a note w i t h good c o l l a t e r a l t h a t w i l l cover our r i s k s . This
l e g i s l a t i o n i s the r i g h t t h i n g f o r America. That's why the
b i p a r t i s a n leadership has supported i t . And I hope you i n Congress
w i l l pass i t q u i c k l y . I t i s i n our i n t e r e s t , and we can e x p l a i n i t
to the American people, because we're going t o do i t i n the r i g h t
way.
(Applause.)
You know, t o n i g h t , t h i s i s the f i r s t State of the Union
address ever d e l i v e r e d since the beginning of the Cold War when not a
s i n g l e Russian m i s s i l e i s pointed at the c h i l d r e n of America.
(Applause.) And along w i t h the Russians, we're on the way t o
destroying the m i s s i l e s and the bombers t h a t carry 9,000 nuclear
warheads. We've come so f a r so f a s t i n t h i s post-Cold War world t h a t
i t ' s easy t o take the decline of the nuclear t h r e a t f o r granted. But
i t ' s s t i l l there, and we aren't f i n i s h e d yet.
This year I ' l l ask the Senate t o approve START I I , t o
e l i m i n a t e weapons t h a t carry 5,000 more warheads. The United States
w i l l lead the charge to extend i n d e f i n i t e l y the nuclear
N o n p r o l i f e r a t i o n Treaty -- (applause); to enact a comprehensive
�- 12 -
:clear t e s t ban — (applause); and to eliminate chemical weapons,
ipplause.) To stop and r o l l back North Korea's potentially deadly
i c l e a r program, we'll continue to implement the agree we have
cached with that nation. I t ' s smart; i t ' s tough; i t ' s a deal based
i continuing inspection with safeguards for our a l l i e s and
irselves.
(Applause.)
This year I ' l l submit to Congress comprehensive
j g i s l a t i o n to strengthen our hand in combatting t e r r o r i s t s —
aether they strike at home or abroad. As the coward's who bombed
le World Trade Center found out, t h i s country w i l l hunt down
i r r o r i s t s and bring them to j u s t i c e .
(Applause.)
Just this week, another horrendous t e r r o r i s t act i n
srael k i l l e d 19 and injured scores more. On behalf of the American
jople and a l l of you, I send our deepest sympathy to the families of
le victims. I know that in the face of such e v i l , i t i s hard for
le people in the Middle East to go forward. But the t e r r o r i s t s
jpresent the past, not the future. We must and we w i l l pursue a
>mprehensive peace between I s r a e l and a l l her neighbors in the
.ddle East.
(Applause.)
Accordingly, l a s t night I signed an executive order that
.11 block the assets in the United States of t e r r o r i s t organizations
iat threaten to disrupt the peace process. I t prohibits financial
•ansactions with these groups. And tonight I c a l l on our a l l i e s and
iace-loving nations throughout the world to join us with renewed
•rvor i n a global effort to combat terrorism. We cannot permit the
iture to be marred by terror and fear and paralysis. (Applause.)
From the day I took the oath of office, I pledged that
ir nation would maintain the best-equipped, best-trained and best•epared m i l i t a r y on Earth. We have, and they are. They have
naged the dramatic downsizing of our forces after the Cold War with
markable s k i l l and s p i r i t . But to make sure our military i s ready
ir action, and to provide the pay and the quality of l i f e the
l i t a r y and t h e i r families deserve, I'm asking the Congress to add
5 b i l l i o n i n defense spending over the next s i x years. (Applause.)
:
I have v i s i t e d many bases at home and around the world,
nee I became president. Tonight, I repeat that request with
newed conviction. We ask a very great deal of our Armed Forces.
> that they are smaller i n number, we ask more of them. They go
w
;t more often to more different places and stay longer. They are
:lled to service in many, many ways. And we must give them and
leir families what the times demand and what they have earned,
.pplause.)
Just think about what our troops have done in the l a s t
:ar, showing America at i t s best — helping to save hundreds of
:ousands of people in Rwanda, moving with lightning speech to head
:f another threat to Kuwait, giving freedom and democracy back to
e people of H a i t i .
(Applause.)
We have proudly supported peace and prosperity and
•eedom from South Africa to Northern Ireland, from Central and
.stern Europe to Asia, from Latin America to the Middle East. A l l
•.ese endeavors are good in those places, but they make our future
>re confident and more secure.
Well, my fellow Americans, that's my agenda for
'.erica's future: Expanding opportunity, not bureaucracy; enhancing
•.curity at home and abroad; empowering our people to make the most
t h e i r own l i v e s . I t ' s ambitious and achievable, but i t ' s not
.ough. We even need more than new ideas for changing the world or
uipping Americans to compete in the new economy; more than a
vernment that's smaller, smarter and wiser; more than a l l the
r
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changes we can make in government and in the private sector from the
outside i n .
Our fortunes and our posterity also depend upon our
a b i l i t y to answer some questions from within — from the values and
voices that speak to our hearts as well as our heads; voices that
t e l l us we have to do more to accept responsibility for ourselves and
our families, for our communities, and, yes, for our fellow c i t i z e n s .
We see our families and our communities a l l over t h i s country coming
apart. And we feel the common ground shifting from under us. The
PTA, the town h a l l meeting, the b a l l park — i t ' s hard for a l o t of
overworked parents to find the time and space for those things that
strengthen the bonds of t r u s t and cooperation. Too many of our
children don't even have parents and grandparents who can give them
those experiences that they need to build their own character and
their sense of identity.
We a l l know what while we here in t h i s chamber can make
a difference on those things, that the real differences w i l l be made
by our fellow citizens
where they work and where they l i v e .
And
i t w i l l be made almost without regard to party. When I used to go to
the s o f t b a l l park in L i t t l e Rock to watch my daughter's league, and
people would come up to me, fathers and mothers, and t a l k to me, I
can honestly say I had no idea whether 90 percent of them were
Republicans or Democrats. When I v i s i t e d the r e l i e f centers after
the floods in California — Northern California — l a s t week, a woman
came up to me and did something that very few of you would do — she
hugged me and said, "Mr. President, I'm a Republican, but I'm glad
you're here." (Laughter and applause.)
Now, why? We can't wait for disasters to act the way we
used to act every day. Because as we move into t h i s next century,
everybody matters; we don't have a person to waste. And a l o t of
people are losing a l o t of chances to do better. That means that we
need a New Covenant for everybody.
For our corporate and business leaders, we're going to
work here to keep bringing the d e f i c i t down, to expand markets, to
support t h e i r success in every possible way. But they have an
obligation when they're doing well to keep jobs in our communities
and give t h e i r workers a f a i r share of the prosperity they generate.
(Applause.)
For people in the entertainment industry i n t h i s
country, we applaud your c r e a t i v i t y and your world-wide success, and
we support your freedom of expression. But you do have a
responsibility to assess the impact of your work and to understand
the damage that comes from the incessant, repetitive, mindless
violence and irresponsible conduct that permeates our media a l l the
time. (Applause.)
We've got to ask our community leaders and a l l kinds of
organizations to help us stop our most serious s o c i a l problem: the
epidemic of teen pregnancies and births where there i s no marriage.
I have sent to Congress a plan to targets schools a l l over t h i s
country with anti-pregnancy programs that work. But government can
only do so much. Tonight, I c a l l on parents and leaders a l l across
t h i s country to join together in a national campaign against teen
pregnancy to make a difference. We can do this, and we must.
(Applause.)
And I would l i k e to say a special word to our religious
leaders. You know, I'm proud of the fact the United States has more
houses of worship per capita than any country in the world. These
people who lead our houses of worship can ignite their congregations
to carry their faith into action; can reach out to a l l of our
children, to a l l of the people in distress, to those who have been
savaged by the breakdown of a l l we hold dear. Because so much of
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what we've done must come from the inside out, and our religious
leaders and their congregations can make a l l the difference. They
have a role in the New Covenant as well.
There must be more responsibility for a l l of our
c i t i z e n s . You know, i t takes a l o t of people to help a l l the kids in
trouble stay off the streets and in school. I t takes a l o t of people
to build the Habitat for Humanity houses that the Speaker celebrates
on h i s lapel pin. I t takes a l o t of people to provide the people
power for a l l of the c i v i c organizations i n t h i s country that made
our communities mean so much to most of us when we were kids. I t
takes every parent to teach the children the difference between right
and wrong and to encourage them to learn and grow; and to say no to
the wrong things, but also to believe that they can be whatever they
want to be.
I know i t ' s hard when you're working harder for less,
when you're under great stress to do these things. A l o t of our
people don't have the time or the emotional stress they think to do
the work of citizenship.
Most of us i n p o l i t i c s haven't helped very much. For
years, we've mostly treated c i t i z e n s l i k e they were consumers or
spectators, sort of p o l i t i c a l couch potatoes who were supposed to
watch the TV ads, either promise them something for nothing or play
on their fears and frustrations. And more and more of our citizens
now get most of their information i n very negative and aggressive
ways that are hardly conducive to honest and open conversations. But
the truth i s , we have got to stop seeing each other as enemies, just
because we have different views.
I f you go back to the beginning of t h i s country, the
great strength of America, as de Tocgueville pointed out when hie came
here a long time ago, has always been our a b i l i t y to associate with
people who were different from ourselves and to work together to find
common ground. And i n t h i s day, everybody has a r e s p o n s i b i l i t y to do
more of that. We simply cannot wait for a tornado, a f i r e , or a
flood to behave l i k e Americans ought to behave i n dealing with one
another.
(Applause.)
I want to f i n i s h up here by pointing out some folks that
are up with the F i r s t Lady that represent what I'm trying to talk
about — c i t i z e n s . I have no idea what t h e i r party a f f i l i a t i o n i s or
who they voted for in the l a s t election. But they represent what we
ought to be doing.
Cindy Perry teaches second graders to read i n AmeriCorps
in rural Kentucky. She gains when she gives. She's a mother of
four. She says that her service inspired her to get her high school
equivalency l a s t year. (Applause.) She was married when she was a
teenager. Stand up, Cindy.
(Applause.) She was married when she
was a teenager, she had four children, but she had time to serve
other people, to get her high school equivalency. And she's going to
use her AmeriCorps money to go back to college. (Applause.)
Stephen Bishop i s the p o l i c e c h i e f o f Kansas C i t y .
(Applause.) He's been a n a t i o n a l leader. (Applause.) Stand up
(applause). He's been a n a t i o n a l leader i n using more p o l i c e i n
community p o l i c i n g , and he's worked w i t h AmeriCorps t o do i t . And
the crime rate i n Kansas C i t y has aone down as a r e s u l t of v/hat he
did.
Corporal Gregory Depestre went t o H a i t i as p a r t of h i s
adopted country's force t o help secure democracy i n h i s n a t i v e land.
(Applause.) And I might add, we must be the only country i n the
world t h a t could have gone t o H a i t i and taken Haitian-Americans there
who could speak the language and t a l k t o the people. And he was one
of them, and we're proud of him. (Applause.)
MR
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�- 15 -
The next two folks I've had the honor of meeting and
getting to know a l i t t l e b i t , the Reverend John and the Reverend
Diana Cherry of the AME Zion Church in Temple H i l l s , Maryland. I'd
l i k e to ask them to stand. (Applause.) I want to t e l l you about
them. In the early '80s, they l e f t government service and formed a
church in a small l i v i n g room in a small house, i n the early '80s.
Today that church has 17,000 members. I t i s one of the three or four
biggest churches i n the entire United States. I t grows by 200 a
month. They do i t together. And the special focus of their ministry
i s keeping families together. (Applause.)
Two things they did make a big impression on me. I
v i s i t e d their church once, and I learned they were building a new
sanctuary closer to the Washington, D.C, line i n a higher crime,
higher drug rate area because they thought i t was part of t h e i r
ministry to change the l i v e s of the people who needed them.
(Applause.)
The second thing I want to say i s , that once Reverend
Cherry was at a meeting at the White House with some other religious
leaders, and he l e f t early to go back to h i s church to minister to
150 couples that he had brought back to h i s church from a l l over
America to convince them to come back together, to save t h e i r
marriages, and to r a i s e t h e i r kids. This i s the kind of work that
c i t i z e n s are doing in America. We need more of i t , and i t ought to
be l i f t e d up and supported.
(Applause.)
The l a s t person I want to introduce i s Jack Lucas from
Hattiesburg, M i s s i s s i p p i . Jack, would you stand up?
(Applause.)
F i f t y years ago, i n the sands of Iwo Jima, Jack Lucas taught and
learned the lessons of citizenship. On February the 20th, 1945, he
and three of h i s buddies encountered the enemy and two grenades at
t h e i r feet. Jack Lucas threw himself on both of them. In that
moment, he saved the l i v e s of h i s companions, and miraculously in the
next instant, a medic saved h i s l i f e . He gained a foothold for
freedom, and at the age of 17, just a year older than h i s grandson,
who i s up there with him today, and h i s son, who i s a West Point
graduate and a veteran, at 17, Jack Lucas became the youngest Marine
in history and the youngest soldier in t h i s century to win the
Congressional Medal of Honor. (Applause.)
A l l these years later, yesterday, here's what he said
about that day: " I t didn't matter where you were from or who you
were, you r e l i e d on one another. You did i t for your country."
We a l l gain when we give, and we reap what we sow.
That's at the heart of t h i s New Covenant — responsibility,
opportunity and c i t i z e n s h i p . More than stale chapters in some remote
c i v i c s book; they're s t i l l the virtue by which we can f u l f i l l
ourselves and reach our God-given potential and be l i k e them; and
also to f u l f i l l the eternal promise of t h i s country — the enduring
dream from that f i r s t and most sacred covenant.
I believe every person in t h i s country s t i l l believes
that we are created equal, and given by our Creator, the right to
l i f e , liberty and the pursuit of happiness. This i s a very, very
great country. And our best days are s t i l l to come.
Thank you, and God bless you a l l .
END
(Applause.)
10:35 P.M.
EST
�THE WHITE HOUSE
O f f i c e of the Press Secretary
For Iminediate Release
January 25, 1994
STATE OF THE UNION ADDRESS
BY THE PRESIDENT
The House of Representatives
9:15
P.M. EST
THE PRESIDENT: Thank you very much. Mr. Speaker, Mr.
President, members o f the 103rd Congress, my f e l l o w Americans:
I'm not a t a l l sure what speech i s i n the TelePrompter
t o n i g h t — (laughter) — but I hope we can t a l k about the s t a t e o f
the Union.
I ask you t o begin by r e c a l l i n g the memory of t h e g i a n t
who presided over t h i s Chamber w i t h such force and grace. T i p
O'Neill l i k e t o c a l l himself "a man of the House." And he s u r e l y was
t h a t . But, even more, he was a man of the people, a b r i c k l a y e r ' s son
who helped t o b u i l d the great American middle class. Tip O ' N e i l l
never f o r g o t who he was, where he came from, or who sent him here.
Tonight he's s m i l i n g down on us f o r the f i r s t time from the Lord's
G a l l e r y . But i n h i s honor, may we, t o o , always remember who we are,
where we come from, and who sent us here.
(Applause.)
I f we do t h a t we w i l l r e t u r n over and over again t o the
p r i n c i p l e t h a t i f we simply give ordinary people equal o p p o r t u n i t y ,
q u a l i t y education, and a f a i r shot a t the American Dream, they w i l l
do e x t r a o r d i n a r y t h i n g s .
We gather t o n i g h t i n a world of changes so profound and
r a p i d t h a t a l l nations are t e s t e d . Our American h e r i t a g e has always
been t o master such change, t o use i t t o expand opportunity a t home
and our leadership abroad. But f o r too long, and i n too many ways,
t h a t h e r i t a g e was abandoned, and our country d r i f t e d .
For 30 years, f a m i l y l i f e i n America has been breaking
down. For 20 years, the wages of working people have been stagnant
or d e c l i n i n g . For the 12 years of t r i c k l e - d o w n economics, we b u i l t a
f a l s e p r o s p e r i t y on a hollow base as our n a t i o n a l debt quadrupled.
From 1989 t o 1992, we experienced the slowest growth i n a h a l f
century. For too many f a m i l i e s , even when both parents were working,
the American Dream has been s l i p p i n g away.
I n 1992, the American people demanded t h a t we change. A
year ago I asked a l l of you t o j o i n me i n accepting r e s p o n s i b i l i t y
f o r the f u t u r e o f our country. Well, we d i d . We replaced d r i f t and
deadlock w i t h renewal and reform. And I want t o thank every one of
you here who heard the American people, who broke g r i d l o c k , who gave
them the most successful teamwork between a President and a Congress
i n 30 years.
(Applause.)
This Congress produced a budget t h a t cut the d e f i c i t by
h a l f a t r i l l i o n d o l l a r s , cut spending and raised income taxes on only
the w e a l t h i e s t Americans. (Applause.) This Congress produced t a x
r e l i e f f o r m i l l i o n s o f low income workers t o reward work over
welfare. I t produced NAFTA. I t produced the Brady b i l l , now the
Brady law. And thank you, Jim Brady, f o r being here, and God bless
you, s i r . (Applause.)
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�- 2-
This Congress produced tax cuts t o reduce the taxes of
nine out o f 10 small businesses who use the money t o i n v e s t more and
create j o b s .
I t produced more research and treatment f o r AIDS, more
childhood immunizations, more support f o r women's h e a l t h research,
more a f f o r d a b l e college loans f o r the middle class; a new n a t i o n a l
service program f o r those who want t o g i v e something back t o t h e i r
country and t h e i r communities f o r higher education; a dramatic
increase i n high-tech investments t o move us from a defense t o a
domestic h i g h - t e c h economy. This Congress produced a new law, the
Motor Voter b i l l , t o help m i l l i o n s of people r e g i s t e r t o vote. I t
produced Family and Medical Leave.
A l l passed. A l l signed i n t o law w i t h n o t one s i n g l e
veto. (Applause.) These accomplishments were a l l commitments I made
when I sought t h i s o f f i c e . And, i n f a i r n e s s , they a l l had t o be
passed by you i n t h i s Congress.
But I am persuaded t h a t the r e a l
c r e d i t belongs t o the people who sent us here, who pay our s a l a r i e s ,
who hold our f e e t t o the f i r e .
But what we do here i s r e a l l y beginning t o change l i v e s .
Let me j u s t give you one example. I w i l l never f o r g e t what t h e
Family and Medical Leave law meant t o j u s t one f a t h e r I met e a r l y one
Sunday morning i n the White House.
I t was unusual t o see a f a m i l y there t o u r i n g e a r l y
Sunday morning, but he had h i s w i f e and h i s three c h i l d r e n there, one
of them i n a wheelchair. I came up, and a f t e r we had our p i c t u r e
taken and had a l i t t l e v i s i t , I was walking o f f and t h a t man grabbed
me by the arm and he s a i d , "Mr. President, l e t me t e l l you something.
My l i t t l e g i r l here i s desperately i l l . She's probably not going t o
make i t . But because o f the Family Leave law, I was able t o take
time o f f t o spend w i t h her — the most important time I ever spent i n
my l i f e — w i t h o u t l o s i n g my j o b and h u r t i n g the r e s t o f my family.
I t means more t o me than I w i l l ever be able t o say. Don't you
people up here ever t h i n k what you do doesn't make a d i f f e r e n c e . I t
does." (Applause.)
Though we are making a d i f f e r e n c e , our work has j u s t
begun. Many Americans s t i l l haven't f e l t t h e impact o f what we've
done. The recovery s t i l l hasn't touched every community or created
enough j o b s . Incomes are s t i l l stagnant; there's s t i l l too much
violence and not enough hope i n too many places. Abroad, t h e young
democracies we are s t r o n g l y supporting s t i l l face very d i f f i c u l t
times and look t o us f o r leadership. And so t o n i g h t , l e t us resolve
t o continue t h e journey o f renewal; t o create more and b e t t e r jobs;
t o guarantee h e a l t h s e c u r i t y f o r a l l ; t o reward work over welfare; t o
promote democracy abroad; and t o begin t o reclaim our s t r e e t s from
v i o l e n t crime and drugs and gangs; t o renew our own American
community. (Applause.)
Last year we began t o put our house i n order by t a c k l i n g
the budget d e f i c i t t h a t was d r i v i n g us toward bankruptcy. We c u t
$255 b i l l i o n i n spending, i n c l u d i n g e n t i t l e m e n t s , and over 340
separate budget items. We froze domestic spending and used honest
budget numbers.
Led by the Vice President, we launched a campaign t o
r e i n v e n t government. We cut s t a f f , cut perks, even trimmed the f l e e t
of f e d e r a l limousines. A f t e r years of leaders whose r h e t o r i c
attacked bureaucracy but whose actions expanded i t , we w i l l a c t u a l l y
reduce i t by 252,000 people over the next f i v e years. By the time we
have f i n i s h e d , t h e f e d e r a l bureaucracy w i l l be a t i t s lowest p o i n t i n
3 0 years. (Applause.)
Because the d e f i c i t was so large and because they
b e n e f i t t e d from t a x cuts i n the 1980s, we d i d ask the w e a l t h i e s t
MR
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�- 3 -
Americans t o pay more t o reduce the d e f i c i t . So on A p r i l 15th, the
American people w i l l discover the t r u t h about what we d i d l a s t year
on taxes. Only the top 1 — (applause) — yes, l i s t e n — the top 1.2
percent of Americans, as I said a l l along, w i l l pay higher income t a x
r a t e s . Let me repeat — (applause) — Only the w e a l t h i e s t 1.2
percent of Americans w i l l face higher income tax r a t e s and no one
else w i l l . And t h a t i s the t r u t h .
(Applause.)
Of course, t h e r e were, as there always are i n p o l i t i c s ,
naysayers who said t h i s plan wouldn't work. But they were wrong.
When I became President the experts p r e d i c t e d t h a t next year's
d e f i c i t would be $300 b i l l i o n . But because we acted, those same
people now say the d e f i c i t i s going t o be under $180 b i l l i o n — 40
percent lower then was p r e v i o u s l y p r e d i c t e d .
(Applause.)
Our economic program has helped t o produce the lowest
core i n f l a t i o n r a t e and the lowest i n t e r e s t rates i n 2 0 years.
And
because those i n t e r e s t r a t e s are down, business investment and
equipment i s growing a t seven times the r a t e of the previous four
years; auto sales are way up; home sales are at a record high.
M i l l i o n s of Americans have refinanced t h e i r homes, and our economy
has produced 1.6 m i l l i o n p r i v a t e sector jobs i n 1993 — more than
were created i n the previous four years combined.
(Applause.)
The people who supported t h i s economic plan should be
proud of i t s e a r l y r e s u l t s . Proud. But everyone i n t h i s chamber
should know and acknowledge t h a t t h e r e i s more t o do.
Next month I w i l l send you one of the toughest budgets
ever presented t o Congress. I t w i l l cut spending i n more than 3 00
programs, e l i m i n a t e 100 domestic programs, and reform the ways i n
which governments buy goods and s e r v i c e s . This year we must again
make the hard choices t o l i v e w i t h i n the hard spending c e i l i n g s we
have s e t . We must do i t . We have proved we can b r i n g the d e f i c i t
down w i t h o u t choking o f f recovery, w i t h o u t punishing seniors of the
middle c l a s s , and w i t h o u t p u t t i n g our n a t i o n a l s e c u r i t y a t r i s k . I f
you w i l l s t i c k w i t h t h i s plan, we w i l l post three consecutive years
of d e c l i n i n g d e f i c i t s f o r the f i r s t time since Harry Truman l i v e d i n
the White House. And once again, the buck stops here.
(Applause.)
Our economic plan also b o l s t e r s our s t r e n g t h and our
c r e d i b i l i t y around the world. Once we reduce the d e f i c i t and put the
s t e e l back i n t o our competitive edge, the world echoed w i t h the sound
of f a l l i n g t r a d e b a r r i e r s . I n one year, w i t h NAFTA, w i t h GATT, w i t h
our e f f o r t s i n Asia and the National Export Strategy, we d i d more t o
open w o r l d markets t o American products than at any time i n the l a s t
two generations.
That means more jobs and r i s i n g l i v i n g standards f o r the
American people; low d e f i c i t s ; low i n f l a t i o n ; low i n t e r e s t r a t e s ; low
trade b a r r i e r s and high investments. These are the b u i l d i n g blocks
of our recovery. But i f we want t o take f u l l advantage of the
o p p o r t u n i t i e s before us i n the g l o b a l economy, you a l l know we must
do more.
As we reduce defense spending, I ask Congress t o i n v e s t
more i n the technologies of tomorrow. Defense conversion w i l l keep
us s t r o n g m i l i t a r i l y and create jobs f o r our people here a t home.
(Applause.)
As we p r o t e c t our environment, we must i n v e s t i n the
environmental technologies of the f u t u r e which w i l l create jobs.
This year we w i l l f i g h t f o r a r e v i t a l i z e d Clean Water Act and a Safe
D r i n k i n g Water Act and a reformed Superfund program. And the Vice
President i s r i g h t — we must also work w i t h the p r i v a t e sector t o
connect every classroom, every c l i n i c , every l i b r a r y , every h o s p i t a l
i n America i n t o a n a t i o n a l i n f o r m a t i o n super highway by the year
2000.
(Applause.)
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�- 4 -
Think of i t — i n s t a n t access t o i n f o r m a t i o n w i l l
increase p r o d u c t i v i t y , w i l l help t o educate our c h i l d r e n . I t w i l l
provide b e t t e r medical care. I t w i l l create j o b s . And I c a l l on the
Congress t o pass l e g i s l a t i o n t o e s t a b l i s h t h a t i n f o r m a t i o n super
highway t h i s year.
(Applause.)
As we expand o p p o r t u n i t y and create jobs, no one can be
l e f t out. We must continue t o enforce f a i r lending and f a i r housing
and a l l c i v i l r i g h t s laws, because America w i l l never be complete i n
i t s renewal u n t i l everyone shares i n i t s bounty.
(Applause.)
But we a l l know, too, we can do a l l these t h i n g s — put
our economic house i n order, expand world t r a d e , t a r g e t the jobs of
the f u t u r e , guarantee equal o p p o r t u n i t y — but i f we're honest, w e ' l l
a l l admit t h a t t h i s s t r a t e g y s t i l l cannot work unless we a l s o give
our people the education, t r a i n i n g and s k i l l s they need t o seize the
o p p o r t u n i t i e s of tomorrow. (Applause.)
We must set tough, world-class academic and occupational
standards f o r a l l our c h i l d r e n and give our teachers and students the
t o o l s they need t o meet them. Our Goals 2000 proposal w i l l empower
i n d i v i d u a l school d i s t r i c t s t o experiment w i t h ideas l i k e c h a r t e r i n g
t h e i r schools t o be run by p r i v a t e corporations, or having more
p u b l i c school choice — t o do whatever they wish t o do as long as we
measure every school by one high standard: Are our c h i l d r e n l e a r n i n g
what they need t o know t o compete and win i n the g l o b a l economy?
(Applause.)
reforms.
Goals 2 000 l i n k s world-class standards t o grass-roots
And I hope Congress w i l l pass i t w i t h o u t delay.
Our School t o Work I n i t i a t i v e w i l l f o r the f i r s t time
l i n k school t o the world of work, p r o v i d i n g a t l e a s t one year of
apprenticeship beyond high school. A f t e r a l l , most of the people
we're counting on t o b u i l d our economic f u t u r e won't graduate from
c o l l e g e . I t ' s time t o stop i g n o r i n g them and s t a r t empowering them.
(Applause.)
We must l i t e r a l l y transform our out-dated unemployment
system i n t o a new reemployment system. The o l d unemployment system
j u s t s o r t of kept you going w h i l e you waited f o r your o l d j o b t o come
back. We've got t o have a new system t o move people i n t o new and
b e t t e r jobs because most of those o l d jobs j u s t don't come back. And
we know t h a t the only way t o have r e a l job s e c u r i t y i n the f u t u r e , t o
get a good j o b w i t h a growing income, i s t o have r e a l s k i l l s and the
a b i l i t y t o l e a r n new ones. So we've got t o streamline today's
patchwork of t r a i n i n g programs and make them a source of new s k i l l s
f o r our people who lose t h e i r jobs.
Reemployment, not unemployment, must become the
centerpiece of our economic renewal. I urge you t o pass i t i n t h i s
session of Congress. (Applause.)
And j u s t as we must transform our unemployment system,
so must we also r e v o l u t i o n i z e our welfare system. I t doesn't work.
I t d e f i e s our values as a n a t i o n . I f we value work, we can't j u s t i f y
a system t h a t makes welfare more a t t r a c t i v e than work i f people are
w o r r i e d about l o s i n g t h e i r h e a l t h care. (Applause.) I f we value
r e s p o n s i b i l i t y , we can't ignore the $34 b i l l i o n i n c h i l d support
absent parents ought t o be paying t o m i l l i o n s of parents who are
t a k i n g care of t h e i r c h i l d r e n . (Applause.) I f we value s t r o n g
f a m i l i e s , we can't perpetuate a system t h a t a c t u a l l y penalizes those
who stay t o g e t h e r .
Can you b e l i e v e t h a t a c h i l d who has a c h i l d gets more
money from the government f o r l e a v i n g home than f o r s t a y i n g home w i t h
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a parent or a grandparent?
And we ought t o change i t .
That's not j u s t bad p o l i c y , i t ' s wrong.
(Applause.)
I worked on t h i s problem f o r years before I became
President, w i t h other governors and w i t h members of Congress of both
p a r t i e s and w i t h t h e previous a d m i n i s t r a t i o n of another party. I
worked on i t w i t h people who were on welfare — l o t s of them. And I
want t o say something t o everybody here who cares about t h i s issue.
The people who most want t o change t h i s system are the people who are
dependent on i t . They want t o get o f f welfare. They want t o go back
t o work. They want t o do r i g h t by t h e i r kids.
I once had a hearing when I was a governor and I brought
i n people on w e l f a r e from a l l over America who had found t h e i r way t o
work. The woman from my s t a t e who t e s t i f i e d was asked t h i s question:
What's the best t h i n g about being o f f welfare and i n a job? And,
w i t h o u t b l i n k i n g an eye, she looked a t 40 governors and she said,
"When my boy goes t o school and they say what does your mother do f o r
a l i v i n g , he can g i v e an answer." These people want a b e t t e r system
and we ought t o g i v e i t t o them. (Applause.)
Last year we began t h i s . We gave the s t a t e s more power
t o innovate because we know t h a t a l o t of great ideas come from
outside Washington, and many states are already u s i n g i t . Then t h i s
Congress took a dramatic step. Instead of t a x i n g people w i t h modest
incomes i n t o poverty, we helped them t o work t h e i r way out of poverty
by d r a m a t i c a l l y i n c r e a s i n g the earned income tax c r e d i t . I t w i l l
l i f t 15 m i l l i o n working f a m i l i e s out of poverty, rewarding work over
w e l f a r e , making i t p o s s i b l e f o r people t o be successful workers and
successful parents. Now t h a t ' s r e a l welfare reform. (Applause.)
But t h e r e i s more t o be done. This s p r i n g I w i l l send
you a comprehensive welfare reform b i l l t h a t b u i l d s on the Family
Support Act of 1988 and restores the basic values o f r e s p o n s i b i l i t y .
We'll say t o teenagers, i f you have a c h i l d out of wedlock, we w i l l
no longer give you a check t o set up a separate household. We want
f a m i l i e s t o stay together. Say t o absent parents who aren't paying
t h e i r c h i l d support, i f you're not p r o v i d i n g f o r your c h i l d r e n , w e ' l l
g a r n i s h your wages, suspend your l i c e n s e , t r a c k you across s t a t e
l i n e s , and i f necessary, make some o f you work o f f what you owe.
(Applause.)
People who b r i n g c h i l d r e n i n t o t h i s w o r l d cannot and
must not walk away from them. But t o a l l those who depend on
w e l f a r e , we should o f f e r u l t i m a t e l y a simple compact. We'll provide
the support, the j o b t r a i n i n g , the c h i l d care you need f o r up t o two
years. But a f t e r t h a t , anyone who can work must — i n the p r i v a t e
s e c t o r , wherever p o s s i b l e ; i n community services, i f necessary.
That's the only way w e ' l l ever make welfare what i t ought t o be — a
second chance, not a way of l i f e .
(Applause.)
I know i t w i l l be d i f f i c u l t t o t a c k l e welfare reform i n
1994 a t t h e same time we t a c k l e h e a l t h care. But l e t me p o i n t out, I
t h i n k i t i s i n e v i t a b l e and imperative. I t i s estimated t h a t one
m i l l i o n people are on welfare today because i t ' s the only way they
can get h e a l t h care coverage f o r t h e i r c h i l d r e n . Those who choose t o
leave w e l f a r e f o r jobs without h e a l t h b e n e f i t s — and many entry jobs
don't have h e a l t h b e n e f i t s — f i n d themselves i n the i n c r e d i b l e
p o s i t i o n o f paying taxes t h a t help t o pay f o r h e a l t h care coverage
f o r those who made the other choice t o stay on w e l f a r e . No wonder
people leave work and go back t o w e l f a r e t o get h e a l t h care coverage.
We have got t o solve the h e a l t h care problem t o have r e a l welfare
reform.
(Applause.)
So t h i s year, we w i l l make h i s t o r y by reforming the
h e a l t h care system.
And I would say t o you, a l l of you, my f e l l o w
p u b l i c servants, t h i s i s another issue where the people are way ahead
of t h e p o l i t i c i a n s .
(Applause and laughter.) That may not be
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popular w i t h e i t h e r p a r t y , but i t happens t o be the t r u t h .
(Laughter.)
You know, the F i r s t Lady has received now almost a
m i l l i o n l e t t e r s from people a l l across America and from a l l walks of
life.
I'd l i k e t o share j u s t one of them w i t h you.
Richard Anderson of Reno, Nevada, l o s t h i s j o b and, w i t h
i t , h i s h e a l t h insurance. Two weeks l a t e r , h i s w i f e , Judy, s u f f e r e d
a c e r e b r a l aneurysm. He rushed her t o the h o s p i t a l , where she stayed
i n i n t e n s i v e care f o r 21 days.
The Andersons' b i l l s were over $120,000. Although Judy
recovered and Richard went back t o work, at $8 an hour, the b i l l s
were too much f o r them and they were l i t e r a l l y forced i n t o
bankruptcy.
"Mrs. C l i n t o n , " he wrote t o H i l l a r y , "no one i n the
United States of America should have t o lose everything they've
worked f o r a l l t h e i r l i v e s because they were unfortunate enough t o
become i l l . "
I t was t o help the Richard and Judy Andersons of America
t h a t the F i r s t Lady and so many others have worked so hard and so
long on t h i s h e a l t h care reform issue. We owe them our thanks and
our a c t i o n .
(Applause.)
I know there are people here who say there's no h e a l t h
care c r i s i s . T e l l i t t o Richard and Judy Anderson. T e l l i t t o the
58 m i l l i o n Americans who have no coverage a t a l l f o r some time each
year. T e l l i t t o the 81 m i l l i o n Americans w i t h those p r e e x i s t i n g
c o n d i t i o n s — those f o l k s are paying more or they can't get insurance
at a l l , or they can't ever change t h e i r jobs because they or someone
i n t h e i r f a m i l y has one of those p r e e x i s t i n g c o n d i t i o n s . T e l l i t t o
the small businesses burdened by the skyrocketing cost of insurance.
Most small businesses cover t h e i r employees, and they pay on average
35 percent more i n premiums than b i g businesses or government. Or
t e l l i t t o t h e 76 percent of insured Americans, three out o f f o u r
whose p o l i c i e s have l i f e t i m e l i m i t s . And t h a t means they can f i n d
themselves w i t h o u t any coverage a t a l l j u s t when they need i t the
most.
So i f any of you b e l i e v e there's no c r i s i s , you t e l l i t
t o those people — because I can't. (Applause.)
There are some people who l i t e r a l l y do not understand
the impact of t h i s problem on people's l i v e s .
And a l l you have t o
do i s go out and l i s t e n t o them. Just go t a l k t o them anywhere i n
any congressional d i s t r i c t i n t h i s country. They're Republicans and
Democrats and independents — i t doesn't have a l i c k t o do w i t h
p a r t y . They t h i n k we don't get i t . And i t ' s time we show them t h a t
we do get i t . (Applause.)
From the day we began, our h e a l t h care i n i t i a t i v e has
been designed t o strengthen what, i s good about our h e a l t h care
system: the world's best h e a l t h care p r o f e s s i o n a l s , c u t t i n g edge
research and wonderful research i n s t i t u t i o n s , Medicare f o r o l d e r
Americans. None of t h i s — none of i t should be put a t r i s k .
But we're paying more and more money f o r less and less
care. Every year fewer and fewer Americans even get t o choose t h e i r
doctors. Every year doctors and nurses spend more time on paperwork
and less time w i t h p a t i e n t s because of the absolute bureaucratic
nightmare the present system has become. This system i s r i d d l e d w i t h
i n e f f i c i e n c y , w i t h abuse, w i t h f r a u d , and everybody knows i t .
the shots.
I n today's h e a l t h care system, insurance companies c a l l
They p i c k whom they cover and how they cover them. They
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can cut o f f your b e n e f i t s when you need your coverage the most.
are i n charge.
They
What does i t mean? I t means every n i g h t m i l l i o n s of
w e l l - i n s u r e d Americans go t o bed j u s t an i l l n e s s , an accident or a
pink s l i p away from having no coverage or f i n a n c i a l r u i n . I t means
every morning m i l l i o n s of Americans go t o work w i t h o u t any h e a l t h
insurance a t a l l — something the workers i n no other advanced
country i n the world do. I t means t h a t every year, more and more
hard-working people are t o l d t o p i c k a new doctor because t h e i r boss
has had t o p i c k a new plan. And countless others t u r n down b e t t e r
jobs because they know i f they take t h e b e t t e r j o b , they w i l l lose
t h e i r h e a l t h insurance.
I f we j u s t l e t the h e a l t h care system continue t o d r i f t ,
our country w i l l have people w i t h l e s s care, fewer choices and higher
bills.
Now, our approach p r o t e c t s the q u a l i t y o f care and
people's choices. I t b u i l d s on what works today i n t h e p r i v a t e
sector — t o expand employer-based coverage, t o guarantee p r i v a t e
insurance f o r every American. And I might say, employer-based
p r i v a t e insurance f o r every American was proposed 20 years ago by
President Richard Nixon t o the United States Congress. I t was a good
idea then, and i t ' s a b e t t e r idea today.
(Applause.)
Why do we want guaranteed p r i v a t e insurance? Because
r i g h t now nine out of 10 people who have insurance get i t through
t h e i r employers. And t h a t should continue. And i f your employer i s
p r o v i d i n g good b e n e f i t s a t reasonable p r i c e s , t h a t should continue,
too.
That ought t o make the Congress and the President f e e l b e t t e r .
Our goal i s h e a l t h insurance everybody can depend on —
comprehensive b e n e f i t s t h a t cover p r e v e n t i v e care and p r e s c r i p t i o n
drugs; h e a l t h premiums t h a t don't j u s t explode when yo get s i c k or
you get o l d e r ; the power no matter how small your business i s t o
choose dependable insurance a t the same competitive r a t e s governments
and b i g business get today; one simple form f o r people who are sick;
and, most of a l l , the freedom t o choose a plan and the r i g h t t o
choose your own doctor.
Our approach p r o t e c t s o l d e r Americans. Every plan
before t h e Congress proposes t o slow t h e growth of Medicare.
The
d i f f e r e n c e i s t h i s : We b e l i e v e those savings should be used t o
improve h e a l t h care f o r senior c i t i z e n s . Medicare must be protected,
and i t should cover p r e s c r i p t i o n drugs, and we should take the f i r s t
steps i n covering long-term care.
(Applause.)
To those who would cut Medicare w i t h o u t p r o t e c t i n g
seniors, I say the s o l u t i o n t o today's squeeze on middle-class
working people's h e a l t h care i s not t o put the squeeze on middleclass r e t i r e d people's h e a l t h care. We can do b e t t e r than t h a t .
When i t ' s a l l said and done, i t ' s p r e t t y simple t o me.
Insurance ought t o mean what i t used t o mean — you pay a f a i r p r i c e
f o r s e c u r i t y , and when you get s i c k , h e a l t h care's always there, no
matter what.
Along w i t h the guarantee of h e a l t h s e c u r i t y , we a l l have
t o admit, t o o , there must be more r e s p o n s i b i l i t y on t h e p a r t of a l l
of us i n how we use t h i s system. People have t o take t h e i r k i d s t o
get immunized. We should a l l take advantage of p r e v e n t i v e care. We
must a l l work together t o stop the v i o l e n c e t h a t explodes our
emergency rooms. We have t o p r a c t i c e b e t t e r h e a l t h h a b i t s , and we
can't abuse the system. And those who don't have insurance under our
approach w i l l get coverage, but t h e y ' l l have t o pay something f o r i t ,
too.
The m i n o r i t y of businesses t h a t provide no insurance a t a l l ,
and i n so doing, s h i f t the cost of the care of t h e i r employees t o
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others, should c o n t r i b u t e something. People who smoke should pay
more f o r a pack of c i g a r e t t e s . Everybody can c o n t r i b u t e something i f
we want t o solve the h e a l t h care c r i s i s . There can't be any more
something f o r n o t h i n g . I t w i l l not be easy but i t can be done.
(Applause.)
Now, i n the coming months I hope very much t o work both
Democrats and Republicans t o reform a h e a l t h care system by using the
market t o b r i n g down costs and t o achieve l a s t i n g h e a l t h s e c u r i t y .
But i f you look a t h i s t o r y we see t h a t f o r 60 years t h i s country has
t r i e d t o reform h e a l t h care. President Roosevelt t r i e d . President
Truman t r i e d . President Nixon t r i e d . President Carter t r i e d .
Every
time the s p e c i a l i n t e r e s t s were powerful enough t o defeat them. But
not t h i s time.
(Applause.)
I know t h a t f a c i n g up t o these i n t e r e s t s w i l l r e q u i r e
courage. I t w i l l r a i s e c r i t i c a l questions about the way we finance
our campaigns and how l o b b y i s t s y i e l d t h e i r i n f l u e n c e . The work of
change, f r a n k l y , w i l l never get any easier u n t i l we l i m i t the
i n f l u e n c e of w e l l - f i n a n c e d i n t e r e s t who p r o f i t from t h i s current
system. So I a l s o must now t o c a l l on you t o f i n i s h the job both
Houses began l a s t year by passing tough and meaningful campaign
finance reform and lobby reform l e g i s l a t i o n t h i s year.
(Applause.)
You know, my f e l l o w Americans, t h i s i s r e a l l y a t e s t f o r
a l l of us. The American people provide those of us i n government
s e r v i c e w i t h t e r r i f i c health care b e n e f i t s a t reasonable costs. We
have h e a l t h care t h a t ' s always there. I t h i n k we need t o give every
hard-working, tax-paying American the same h e a l t h care s e c u r i t y they
have already given t o us.
(Applause.)
I want t o make t h i s very c l e a r . I am open, as I have
said repeatedly, t o the best ideas of concerned members of both
p a r t i e s . I have no special b r i e f f o r any s p e c i f i c approach, even i n
our own b i l l , except t h i s : I f you send me l e g i s l a t i o n t h a t does not
guarantee every American p r i v a t e h e a l t h insurance t h a t can never be
taken away, you w i l l force me t o take t h i s pen, veto the l e g i s l a t i o n ,
and w e ' l l come r i g h t back here and s t a r t a l l over again.
(Applause.)
But I don't t h i n k t h a t ' s going t o happen. I t h i n k we're
ready t o act now.
I believe t h a t you're ready t o act now. And i f
you're ready t o guarantee every American the same h e a l t h care t h a t
you have, h e a l t h care t h a t can never be taken away, now — not next
year or the year a f t e r — now i s the time t o stand w i t h the people
who sent us here. Now.
(Applause.)
As we take these steps together t o renew our s t r e n g t h at
home, we cannot t u r n away from our o b l i g a t i o n t o renew our leadership
abroad. This i s a promising moment. Because of the agreements we
have reached t h i s year, l a s t year, Russia's s t r a t e g i c nuclear
m i s s i l e s soon w i l l no longer be pointed at the United States, nor
w i l l we p o i n t ours a t them. (Applause.) Instead of b u i l d i n g weapons
i n space, Russian s c i e n t i s t s w i l l help us t o b u i l d the i n t e r n a t i o n a l
space s t a t i o n .
(Applause.)
Of course, there are s t i l l dangers i n the world —
rampant arms p r o l i f e r a t i o n , b i t t e r r e g i o n a l c o n f l i c t s , ethnic and
n a t i o n a l i s t tensions i n many new democracies, severe environmental
degradation the w o r l d over, and f a n a t i c s who seek t o c r i p p l e the
world's c i t i e s w i t h t e r r o r . As the world's g r e a t e s t power, we must,
t h e r e f o r e , m a i n t a i n our defenses and our r e s p o n s i b i l i t i e s .
This year, we secured indictments against t e r r o r i s t s and
sanctions against those who harbor them. We worked t o promote
environmentally sustainable economic growth. We achieved agreements
w i t h Ukraine, w i t h Belarus, w i t h Kazahkstan t o e l i m i n a t e completely
t h e i r nuclear a r s e n a l . We are working t o achieve a Korean Peninsula
f r e e of nuclear weapons. We w i l l seek e a r l y r a t i f i c a t i o n of a t r e a t y
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to ban chemical weapons worldwide. And e a r l i e r today, we j o i n e d w i t h
over 3 0 nations t o begin n e g o t i a t i o n s on a comprehensive ban t o stop
a l l nuclear t e s t i n g .
(Applause.)
But nothing, nothing i s more important t o our s e c u r i t y
than our nation's armed forces. We honor t h e i r c o n t r i b u t i o n s ,
i n c l u d i n g those who are c a r r y i n g out the longest humanitarian a i r
l i f t i n h i s t o r y i n Bosnia; (applause) — those who w i l l complete
t h e i r mission i n Somalia t h i s year and t h e i r brave comrades who gave
t h e i r l i v e s t h e r e . (Applause.)
Our forces are the f i n e s t m i l i t a r y our n a t i o n has ever
had. And I have pledged t h a t as long as I am President, they w i l l
remain the best equipped, the best t r a i n e d and the best prepared
f i g h t i n g force on the face of the Earth. (Applause.)
Last year I proposed a defense plan t h a t maintains our
post-Cold War s e c u r i t y at a lower cost. This year many people urged
me t o cut our defense spending f u r t h e r t o pay f o r other government
programs. I s a i d , no. The budget I send t o Congress draws the l i n e
against f u r t h e r defense cuts. I t p r o t e c t s the readiness and q u a l i t y
of our forces.
U l t i m a t e l y , the best s t r a t e g y i s t o do t h a t . We must
not cut defense f u r t h e r . I hope the Congress w i t h o u t regard t o p a r t y
w i l l support t h a t p o s i t i o n .
(Applause.)
U l t i m a t e l y , the best s t r a t e g y t o ensure our s e c u r i t y and
t o b u i l d a durable peace i s t o support the advance of democracy
elsewhere. Democracies don't a t t a c k each other, they make b e t t e r
t r a d i n g p a r t n e r s and partners i n diplomacy.
That i s why we have
supported, you and I , the democratic reformers i n Russia and i n the
other states o f the former Soviet bloc. I applaud the b i p a r t i s a n
support t h i s Congress provided l a s t year f o r our i n i t i a t i v e s t o help
Russia, Ukraine, and the other s t a t e s through t h e i r epic
transformations.
Our support of reform must combine patience f o r the
enormity.of the task and v i g i l a n c e f o r our fundamental i n t e r e s t and
values. We w i l l continue t o urge Russia and the other states t o
press ahead w i t h economic reforms. And we w i l l seek t o cooperate
w i t h Russia t o solve r e g i o n a l problems, while i n s i s t i n g t h a t i f
Russian troops operate i n neighboring s t a t e s , they do so only when
those states agree t o t h e i r presence and i n s t r i c t accord w i t h
i n t e r n a t i o n a l standards.
(Applause.)
But we must also remember as these nations chart t h e i r
own f u t u r e s — and they must c h a r t t h e i r own f u t u r e s — how much more
secure and more prosperous our own people w i l l be i f democratic and
market reform succeed a l l across the former communist bloc. Our
p o l i c y has been t o support t h a t move and t h a t has been the p o l i c y of
the Congress. We should continue i t .
That i s why I went t o Europe e a r l i e r t h i s month — t o
work w i t h our Europeans p a r t n e r s , t o help t o i n t e g r a t e a l l the former
communist c o u n t r i e s i n t o a Europe t h a t has a p o s s i b i l i t y of becoming
u n i f i e d f o r the f i r s t time i n i t s e n t i r e h i s t o r y — i t s e n t i r e
h i s t o r y — based on the simple commitments of a l l nations i n Europe
t o democracy, t o f r e e markets and t o respect f o r e x i s t i n g borders.
With our a l l i e s we have created a Partnership For Peace
t h a t i n v i t e s s t a t e s from the former Soviet bloc and other non-NATO
members t o work w i t h NATO i n m i l i t a r y cooperation. When I met w i t h
Central Europe's leaders i n c l u d i n g Lech Walesa and Vaclav Havel, men
who put t h e i r l i v e s on the l i n e f o r freedom, I t o l d them t h a t the
s e c u r i t y of t h e i r region i s important t o our country's s e c u r i t y .
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This year we must also do more t o support democratic
renewal and human r i g h t s and sustainable development a l l around the
world. We w i l l ask Congress t o r a t i f y the new GATT accord. We w i l l
continue standing by South A f r i c a as i t works i t s way through i t s
bold and hopeful and d i f f i c u l t t r a n s i t i o n t o democracy. We w i l l
convene a summit of the Western Hemisphere's leaders from Canada t o
the t i p o f South America. And we w i l l continue t o press f o r the
r e s t o r a t i o n of t r u e democracy i n H a i t i .
(Applause.)
And as we b u i l d a more c o n s t r u c t i v e r e l a t i o n s h i p w i t h
China, we must continue t o i n s i s t on c l e a r signs of improvement i n
t h a t n a t i o n ' s human r i g h t record. (Applause.)
We w i l l also work f o r new progress toward the Middle
East peace. Last year the world watched Yitzhak Rabin and Yassir
A r a f a t a t the White House when they had t h e i r h i s t o r i c handshake of
r e c o n c i l i a t i o n . But t h e r e i s a long, hard road ahead. And on t h a t
road I am determined t h a t I and our a d m i n i s t r a t i o n w i l l do a l l we can
t o achieve a comprehensive and l a s t i n g peace f o r a l l t h e peoples of
the r e g i o n .
Now, there are some i n our country who argue t h a t w i t h
the Cold War, America should t u r n i t s back on the r e s t o f the world.
Many around the world were a f r a i d we would do j u s t t h a t . But I took
t h i s o f f i c e on a pledge t h a t had no p a r t i s a n t i n g e t o keep our nation
secure by remaining engaged i n the r e s t of the world. And t h i s year,
because o f our work t o g e t h e r — enacting NAFTA, keeping our m i l i t a r y
strong and prepared, supporting democracy abroad — we have
r e a f f i r m e d America's leadership, America's engagement. And as a
r e s u l t , the American people are more secure than they were before.
(Applause.)
But while Americans are more secure from t h r e a t s abroad,
I t h i n k we a l l know t h a t i n many ways we are less secure from t h r e a t s
here a t home. Every day t h e n a t i o n a l peace i s shattered by crime.
I n Petaluma, C a l i f o r n i a , an innocent slumber party gives way t o
agonizing tragedy f o r the f a m i l y of P o l l y Klaas. An o r d i n a r y t r a i n
r i d e on Long I s l a n d ends i n a h a i l of 9-millimeter rounds. A t o u r i s t
i n F l o r i d a i s nearly burned a l i v e by b i g o t s simply because he i s
black. Right here i n our Nation's C a p i t a l , a brave young man named
Jason White, a policeman, the son and grandson of policemen, i s
r u t h l e s s l y gunned down. V i o l e n t crime and the fear i t provokes are
c r i p p l i n g our s o c i e t y , l i m i t i n g personal freedom and f r a y i n g the t i e s
t h a t b i n d us.
The crime b i l l before Congress gives you a chance t o do
something about i t — a chance t o be tough and smart. What does t h a t
mean? Let me begin by saying, I care a l o t about t h i s issue. Many
years ago, when I s t a r t e d out i n p u b l i c l i f e , I was the attorney
general o f my s t a t e . I served as a governor f o r a dozen years; I
know what i t ' s l i k e t o s i g n laws increasing p e n a l t i e s , t o b u i l d more
p r i s o n c e l l s , t o carry out the death p e n a l t y . I understand t h i s
issue. And i t i s not a simple t h i n g .
F i r s t , we must recognize t h a t most v i o l e n t crimes are
committed by a small percentage of c r i m i n a l s who too o f t e n break the
laws even when they are on parole. Now those who commit crimes
should be punished. And those who commit repeated, v i o l e n t crimes
should be t o l d , when you commit a t h i r d v i o l e n t crime, you w i l l be
put away, and put away f o r good. Three s t r i k e s , and you are out.
(Applause.)
Second, we must take serious steps t o reduce violence
and prevent crime, beginning w i t h more p o l i c e o f f i c e r s and more
community p o l i c i n g .
(Applause.) We know r i g h t now t h a t p o l i c e who
work t h e s t r e e t s , know the f o l k s , have the respect of the
neighborhood k i d s , focus on high crime areas — we know t h a t they are
more l i k e l y t o prevent crime as w e l l as catch c r i m i n a l s . Look at the
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experience of Houston, where the crime r a t e dropped 17 percent i n one
year when t h a t approach was taken.
Here t o n i g h t i s one of those community policeman — a
brave, young d e t e c t i v e , Kevin J e t t , whose beat i s e i g h t square blocks
i n one of the toughest neighborhoods i n New York. Every day he
r e s t o r e s some s a n i t y and safety and a sense of values and connections
t o the people whose l i v e s he p r o t e c t s . I ' d l i k e t o ask him t o stand
up and be recognized t o n i g h t .
Thank you, s i r .
(Applause.)
You w i l l be given a chance t o give t h e c h i l d r e n o f t h i s
country, the law-abiding working people of t h i s country — and don't
f o r g e t , i n the toughest neighborhoods i n t h i s country, i n the highest
crime neighborhoods i n t h i s country, the vast m a j o r i t y of people get
up every day and obey the law, pay t h e i r taxes, do t h e i r best t o
r a i s e t h e i r kids. They deserve people l i k e Kevin J e t t . And you're
going t o be given a chance t o give the American people another
100,000 o f them w e l l t r a i n e d . And I urge you t o do i t . (Applause.)
You have before you crime l e g i s l a t i o n which also
e s t a b l i s h e s a p o l i c e corps t o encourage young people t o get an
education and pay i t o f f by serving as p o l i c e o f f i c e r s ; which
encourages r e t i r i n g m i l i t a r y personnel t o move i n t o p o l i c e forces, an
i n o r d i n a t e resource f o r our country — one which has a safe schools
p r o v i s i o n which w i l l give our young people the chance t o walk t o
school i n safety and t o be i n school i n safety instead of dodging
b u l l e t s . These are important t h i n g s .
(Applause.)
The t h i r d t h i n g we have t o do i s t o b u i l d on the Brady
B i l l — the Brady Law.
(Applause.) To take f u r t h e r steps t o keep
guns out of the hands of c r i m i n a l s .
I want t o say something about t h i s issue. Hunters must
always be f r e e t o hunt. Law-abiding adults should always be f r e e t o
own guns t o p r o t e c t t h e i r homes. I respect t h a t p a r t o f our c u l t u r e ,
I grew up i n i t . But I want t o ask the sportsmen and others who
l a w f u l l y own guns t o j o i n us i n t h i s campaign t o reduce gun v i o l e n c e .
I say t o you, I know you d i d n ' t create t h i s problem, but we need your
h e l p t o solve i t . There i s no s p o r t i n g purpose on Earth t h a t should
stop the United States Congress from banishing assault weapons t h a t
out-gun p o l i c e and c u t down c h i l d r e n .
(Applause.)
Fourth, we must remember t h a t drugs are a f a c t o r i n an
enormous percentage of crimes. Recent studies i n d i c a t e , sadly, t h a t
drug use i s on the r i s e again among our young people. The crime b i l l
contains — a l l the crime b i l l s contain — more money f o r drug
treatment f o r c r i m i n a l addicts, and boot camps f o r y o u t h f u l offenders
t h a t include i n c e n t i v e s t o get o f f drugs and t o stay o f f drugs.
Our a d m i n i s t r a t i o n ' s budget w i t h a l l i t s cuts can p a i n t
a l a r g e increase i n funding f o r drug treatment and drug education.
You must pass them both. We need them desperately.
(Applause.)
My f e l l o w Americans, the problem of v i o l e n c e i s an
American problem. I t has no p a r t i s a n or p h i l o s o p h i c a l element.
Therefore, I urge you t o f i n d ways as q u i c k l y as p o s s i b l e t o s e t
aside p a r t i s a n d i f f e r e n c e s and pass a strong, smart, tough crime
bill.
(Applause.) But f u r t h e r , I urge you t o consider t h i s : As you
demand tougher p e n a l t i e s f o r those who choose v i o l e n c e , l e t us also
remember how we came t o t h i s sad p o i n t .
I n our toughest neighborhoods, on our meanest s t r e e t s ,
i n our poorest r u r a l areas, we have seen a stunning and simultaneous
breakdown of community, family and work — the h e a r t and soul of
c i v i l i z e d society. This has created a vast vacuum which has been
f i l l e d by violence and drugs and gangs. So I ask you t o remember
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�- 12 -
t h a t even as we say no t o crime, we must g i v e people — e s p e c i a l l y
our young people — something t o say yes t o . (Applause.)
Many of our i n i t i a t i v e s — from job t r a i n i n g t o welfare
reform t o h e a l t h care t o n a t i o n a l service — w i l l help t o r e b u i l d
d i s t r e s s e d communities, t o strengthen f a m i l i e s , t o provide work. But
more needs t o be done. That's what our community empowerment agenda
i s a l l about — challenging businesses t o provide more investment
through empowerment zones; ensuring banks w i l l make loans i n the same
communities t h e i r deposits come from; passing l e g i s l a t i o n t o unleash
the power of c a p i t a l through community development banks t o create
jobs — o p p o r t u n i t y and hope where they're needed most.
I t h i n k you know t h a t t o r e a l l y solve t h i s problem,
w e ' l l a l l have t o put our heads together, leave our i d e o l o g i c a l armor
aside and f i n d some new ideas t o do even more. And l e t ' s be honest;
we a l l know something else too: Our problems go way beyond the reach
of government. They're rooted i n the lose of values, i n the
disappearance of work and the breakdown of our f a m i l i e s and our
communities.
My f e l l o w Americans, we can cut the d e f i c i t , create
jobs, promote democracy around the world, pass welfare reform and
h e a l t h care, pass the toughest crime b i l l i n h i s t o r y , but s t i l l leave
too many o f our people behind.
The American people have got t o want t o change from
w i t h i n i f we're going t o b r i n g back work and f a m i l y and community.
We cannot renew our country when w i t h i n a decade more than h a l f of
the c h i l d r e n w i l l be born i n t o f a m i l i e s where there has been no
marriage. We cannot renew t h i s country when 13-year-old boys get
semi-automatic weapons t o shoot 9-year-olds f o r k i c k s . We can't
renew our country when c h i l d r e n are having c h i l d r e n and the f a t h e r s
walk away as i f the kids don't amount t o anything. We can't renew
the country when our businesses eagerly look f o r new investments and
new customers abroad, but ignore those people r i g h t here a t home who
would give anything t o have t h e i r jobs and would g l a d l y buy t h e i r
products i f they had the money t o do i t . (Applause.)
We can't renew our country unless more of us — I mean
a l l of us — are w i l l i n g t o j o i n the churches and the other good
c i t i z e n s — people l i k e of the black m i n i s t e r s I've worked w i t h over
the years, or the p r i e s t s and the nuns I met a t Our Lady of Help i n
East Los Angeles, or my good f r i e n d , Tony Campollo i n P h i l a d e l p h i a —
unless we're w i l l i n g t o work w i t h people l i k e t h a t , people who are
saving k i d s , adopting schools, making s t r e e t s safer — a l l of us can
do t h a t . We can't renew our country u n t i l we r e a l i z e t h a t
governments don't r a i s e c h i l d r e n , parents do.
(Applause.)
Parents who know t h e i r c h i l d r e n ' s teachers and t u r n o f f
the t e l e v i s i o n and help w i t h the homework and teach t h e i r k i d s r i g h t
from wrong — those kinds of parents can make a l l the d i f f e r e n c e . I
know, I had one.
(Applause.)
I'm t e l l i n g you, we have got t o stop p o i n t i n g our
f i n g e r s a t these kids who have no f u t u r e , and reach our hands out t o
them. Our country needs i t , we need i t , and they deserve i t .
(Applause.)
So I say t o you t o n i g h t , l e t ' s give our c h i l d r e n a
f u t u r e . Let us take away t h e i r guns and g i v e them books. Let us
overcome t h e i r despair and replace i t w i t h hope. Let us, by our
example, teach them t o obey the law, respect our neighbors, and
cherish our values. Let us weave these s t u r d y threads i n t o a new
American community t h a t can once more stand strong against the forces
of despair and e v i l because everybody has a chance t o walk i n t o a
b e t t e r tomorrow.
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Oh, t h e r e w i l l be naysayers who f e a r t h a t we won't be
equal t o the challenges of t h i s time. But they misread our h i s t o r y ,
our h e r i t a g e . Even today's headlines — a l l those t h i n g s t e l l us we
can and we w i l l overcome any challenge.
When t h e earth shook and f i r e s raged i n C a l i f o r n i a , when
I saw t h e M i s s i s s i p p i deluge the farmlands of t h e Midwest i n a 500year f l o o d , when t h e century's b i t t e r e s t cold swept from North Dakota
t o Newport News, i t seemed as though the world i t s e l f was coming
apart a t the seams. But the American people — they j u s t came
together. They rose t o the occasion, neighbor h e l p i n g neighbor,
strangers r i s k i n g l i f e and limb t o save t o t a l s t r a n g e r s — showing
the b e t t e r angels o f our nature.
Let us not reserve t h e b e t t e r angels only f o r n a t u r a l
d i s a s t e r s , l e a v i n g our deepest and most profound problems t o p e t t y
political fighting.
(Applause.) Let us instead be t r u e t o our
s p i r i t — f a c i n g f a c t s , coming together, b r i n g i n g hope and moving
forward.
Tonight, my f e l l o w Americans, we are summoned t o answer
a question as o l d as t h e r e p u b l i c i t s e l f : What i s t h e s t a t e o f our
union? I t i s growing stronger, b u t i t must be s t r o n g e r s t i l l .
With
your help, and God's help, i t w i l l be.
Thank you and God bless America.
END
(Applause.)
10:18 P.M. EST
�THE WHITE HOUSE
O f f i c e of the Press Secretary
For Immediate Release
February 17, 1993
ADDRESS BY THE PRESIDENT
TO THE JOINT SESSION OF CONGRESS
The C a p i t o l
9:10
P.M. EST
THE PRESIDENT: Mr. President, Mr. Speaker, members o f
the House and the Senate, d i s t i n g u i s h e d Americans here as v i s i t o r s i n
t h i s Chamber, as am I .
I t i s nice t o have a f r e s h excuse f o r g i v i n g
a long speech. (Laughter.)
When Presidents speak t o Congress and the n a t i o n from
t h i s podium, t y p i c a l l y , they comment on the f u l l range and challenges
and o p p o r t u n i t i e s t h a t face the United States. But t h i s i s not an
ordinary time, and f o r a l l the many tasks t h a t r e q u i r e our a t t e n t i o n ,
I b e l i e v e t o n i g h t one c a l l s on us t o focus, t o u n i t e , and t o a c t .
And t h a t i s our economy. For more than anything e l s e , our task
t o n i g h t as Americans i s t o make our economy t h r i v e again.
Let me begin by saying t h a t i t has been too long, a t
l e a s t three decades, since a President has come and challenged
Americans t o j o i n him on a great n a t i o n a l journey, not merely t o
consume the bounty of today, but t o i n v e s t f o r a much greater one
tomorrow.
(Applause.)
Like i n d i v i d u a l s , nations must u l t i m a t e l y decide how
they wish t o conduct themselves, how they wish t o be thought of by
those w i t h whom they l i v e , and l a t e r , how they wish t o be judged by
h i s t o r y . Like every i n d i v i d u a l , man and woman, nations must decide
whether they are prepared t o r i s e t o the occasions h i s t o r y presents
them.
We have always been a people of y o u t h f u l energy and
daring s p i r i t . And at t h i s h i s t o r i c moment, as communism has f a l l e n ,
as freedom i s spreading around the world, as a g l o b a l economy i s
t a k i n g shape before our eyes, Americans have c a l l e d f o r change. And
now i t i s up t o those of us i n t h i s room t o d e l i v e r f o r them.
Our n a t i o n needs a new d i r e c t i o n . Tonight I present t o
you a comprehensive plan t o set our n a t i o n on t h a t new course. I
believe we w i l l f i n d our new d i r e c t i o n i n the basic o l d values t h a t
brought us here over the l a s t two centuries — a commitment t o
opportunity, t o i n d i v i d u a l r e s p o n s i b i l i t y , t o community, t o work, t o
f a m i l y and t o f a i t h . We must now break the h a b i t s of both p o l i t i c a l
p a r t i e s and say t h e i r can be no more something f o r nothing and admit
f r a n k l y t h a t we are a l l i n t h i s together.
(Applause.)
The c o n d i t i o n s which brought us as a n a t i o n t o t h i s
p o i n t are well-known:
Two decades of low p r o d u c t i v i t y , growth, and
stagnant wages; p e r s i s t e n t unemployment and underemployment; years of
huge government d e f i c i t s and d e c l i n i n g investment i n our f u t u r e ;
exploding h e a l t h care costs and lack of coverage f o r m i l l i o n s o f
Americans; legions of poor c h i l d r e n ; education and job t r a i n i n g
o p p o r t u n i t i e s inadequate t o the demands of t h i s tough, g l o b a l
economy. For too long we have d r i f t e d w i t h o u t a strong sense o f
purpose or r e s p o n s i b i l i t y or community.
MR
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�- 2 -
And our p o l i t i c a l system so o f t e n has seemed paralyzed
by s p e c i a l i n t e r e s t groups, by p a r t i s a n b i c k e r i n g and by the sheer
complexity of our problems. I believe we can do b e t t e r because we
remain the greatest n a t i o n on Earth, the world's strongest economy,
the world's only m i l i t a r y superpower.
I f we have the v i s i o n , the
w i l l and the heart t o make the changes we must, we can s t i l l enter
the 21st century w i t h p o s s i b i l i t i e s our parents could not even have
imagined, and enter i t having secured the American Dream f o r
ourselves and f o r f u t u r e generations. (Applause.)
I w e l l remember 12 years ago President Reagan stood a t
t h i s very podium and t o l d you and the American people t h a t i f our
n a t i o n a l debt were stacked i n thousand-dollar b i l l s the stack would
reach 67 miles i n t o space. Well, today t h a t stack would reach 2 67
m i l e s . I t e l l you t h i s not t o assign blame f o r t h i s problem. There
i s p l e n t y of blame t o go around i n both branches of the government
and both p a r t i e s . The time has come f o r the blame t o end.
(Applause.) I d i d not seek t h i s o f f i c e t o place blame. I come here
t o n i g h t t o accept r e s p o n s i b i l i t y and I want you t o accept
r e s p o n s i b i l i t y w i t h me. And i f we do r i g h t by t h i s country, I do not
care who gets the c r e d i t f o r i t . (Applause.)
The plan I o f f e r you has f o u r fundamental components.
F i r s t , i t s h i f t s our emphasis i n p u b l i c and p r i v a t e spending from
consumption t o investment — i n i t i a l l y by jump-starting the economy
i n t h e short-term, and i n v e s t i n g i n our people, t h e i r jobs, and t h e i r
incomes over the long run. Second, i t changes the r h e t o r i c of t h e
past i n t o the actions of the present by honoring work and f a m i l i e s i n
every p a r t of our p u b l i c decision-making. Third, i t s u b s t a n t i a l l y
reduces the f e d e r a l d e f i c i t honestly and c r e d i b l y by using i n the
beginning the most conservative estimates of government revenues,
not, as the Executive Branch has done so o f t e n i n the past, using the
most o p t i m i s t i c ones. (Applause.)
And f i n a l l y , i t seeks t o earn the t r u s t of the American
people by paying f o r these plans f i r s t w i t h cuts i n government waste
and e f f i c i e n c y ; second, w i t h cuts, not gimmicks, i n government
spending; and by f a i r n e s s f o r a change i n the way a d d i t i o n a l burdens
are borne.
(Applause.)
Tonight I want t o t a l k w i t h you about what government
can do because I b e l i e v e government must do more. But l e t me say
f i r s t t h a t the r e a l engine of economic growth i n t h i s country i s the
p r i v a t e sector. (Applause.) And second, t h a t each of us must be an
engine o f growth and change. The t r u t h i s t h a t as government creates
more o p p o r t u n i t y i n t h i s new and d i f f e r e n t time, we must also demand
more r e s p o n s i b i l i t y i n t u r n .
jobs
have
sure
that
Our immediate p r i o r i t y must be t o create jobs, create
now.
Some people say, w e l l , we're i n a recovery and we don't
t o do t h a t . Well, we a l l hope we're i n a recovery, but we're
not c r e a t i n g new jobs. And there's no recovery worth i t s s a l t
doesn't put the American people back t o work.
(Applause.)
To create jobs and guarantee a strong recovery, I c a l l
on Congress t o enact an immediate package of jobs investments of over
$30 b i l l i o n t o put people t o work now, t o create a h a l f a m i l l i o n
j o b s . Jobs t o r e b u i l d our highways and a i r p o r t s , t o renovate
housing, t o b r i n g new l i f e t o r u r a l communities and spread hope and
o p p o r t u n i t y among our nation's youth. Especially, I want t o
emphasize a f t e r the events of l a s t year i n Los Angeles and the
countless s t o r i e s of despair i n our c i t i e s and i n our poor r u r a l
communities, t h i s proposal w i l l create almost 700,000 new summer jobs
f o r displaced, unemployed young people alone t h i s summer.
(Applause.)
And t o n i g h t , I i n v i t e America's business leaders t o j o i n
us i n t h i s e f f o r t so t h a t together we can provide over one m i l l i o n
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�- 3-
summer jobs i n c i t i e s and poor r u r a l areas f o r our young people.
(Applause.)
Second, our plan looks beyond today's business cycle
because our a s p i r a t i o n s extend i n t o the next century. The heart o f
t h i s plan deals w i t h the long-term. I t i s an investment program
designed t o increase p u b l i c and p r i v a t e investment i n areas c r i t i c a l
t o our economic f u t u r e . And i t has a d e f i c i t reduction program t h a t
w i l l increase the savings a v a i l a b l e f o r the p r i v a t e sector t o i n v e s t ,
w i l l lower i n t e r e s t r a t e s , w i l l decrease t h e percentage o f t h e
f e d e r a l budget claimed by i n t e r e s t payments, and decrease the r i s k o f
f i n a n c i a l market d i s r u p t i o n s t h a t could adversely a f f e c t our economy.
Over the long run, a l l t h i s w i l l b r i n g us a higher r a t e
of economic growth, improved p r o d u c t i v i t y , more h i g h - q u a l i t y jobs,
and an improved economic competitive p o s i t i o n i n t h e world. I n order
t o accomplish both increased investment and d e f i c i t reduction,
something no American government has ever been c a l l e d upon t o do a t
the same time before, spending must be cut and taxes must r a i s e d .
The spending cuts I recommend were c a r e f u l l y thought
through i n a way t o minimize any adverse economic impact, t o capture
the peace dividend f o r investment purposes, and t o switch the balance
i n the budget from consumption t o more investment. The t a x increases
and the spending cuts were both designed t o assure t h a t the cost o f
t h i s h i s t o r i c program t o face and deal w i t h our problems w i l l be
borne by those who could r e a d i l y a f f o r d i t the most. Our plan i s
designed, furthermore, and perhaps i n some ways most i m p o r t a n t l y , t o
improve the health o f American business through lower i n t e r e s t r a t e s ,
more i n c e n t i v e s t o i n v e s t , and b e t t e r t r a i n e d workers.
Because small business has created such a high
percentage o f a l l t h e new jobs i n our n a t i o n over the l a s t 10 or 15
years, our plan includes the boldest targeted i n c e n t i v e s f o r small
business i n h i s t o r y .
(Applause.) We propose a permanent investment
tax c r e d i t f o r the smallest firms i n t h i s country, w i t h revenues o f
under $5 m i l l i o n .
(Applause.) That's about 90 percent o f the f i r m s
i n America employing about 4 0 percent o f the work f o r c e , b u t c r e a t i n g
a b i g m a j o r i t y of t h e n e t new jobs f o r more than a decade.
And we propose new rewards f o r entrepreneurs who take
new r i s k s . We propose t o give small business access t o a l l t h e new
technologies of our time. And we propose t o a t t a c k t h i s c r e d i t
crunch which has denied small business t h e c r e d i t they need t o
f l o u r i s h and prosper. (Applause.)
With a new network of community development banks and $1
b i l l i o n t o make the dream o f e n t e r p r i s e zones r e a l , we propose t o
b r i n g new hope and new jobs t o s t o r e f r o n t s and f a c t o r i e s from South
Boston t o South Texas t o South Central Los Angeles.
(Applause.)
This plan invests i n our roads, our bridges, our t r a n s i t systems, i n
high-speed railways and high-tech i n f o r m a t i o n systems. And i t
provides the most ambitious environmental cleanup i n partnership w i t h
s t a t e and l o c a l government o f our time, t o put people t o work and t o
preserve the environment f o r our f u t u r e .
(Applause.)
Standing as we are on the edge o f a new century, we know
t h a t economic growth depends as never before on opening up new
markets overseas and expanding the volume o f world trade. And so, we
w i l l i n s i s t on f a i r trade r u l e s i n i n t e r n a t i o n a l markets as a p a r t of
a n a t i o n a l economic s t r a t e g y t o expand trade, i n c l u d i n g the
successful completion o f the l a t e s t round o f world trade t a l k s and
the successful completion o f a North American Free Trade Agreement,
w i t h appropriate safeguards f o r our workers and f o r the environment.
(Applause.)
At the same time — and I say t h i s t o you i n both
p a r t i e s and across America t o n i g h t , a l l the people who are l i s t e n i n g
MR
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— i t i s not enough t o pass a budget or even t o have a t r a d e
agreement. The world i s changing so f a s t t h a t we must have
aggressive, t a r g e t e d attempts t o create the high-wage jobs of the
f u t u r e . That's what a l l our competitors are doing. We must give
s p e c i a l a t t e n t i o n t o those c r i t i c a l i n d u s t r i e s t h a t are going t o
explode i n the 21st century, but t h a t are i n t r o u b l e i n America today
l i k e aerospace.
(Applause.) We must provide special assistance t o
areas and t o workers displaced by cuts i n the defense budget and by
other unavoidable economic d i s l o c a t i o n s .
(Applause.)
And, again, I w i l l say we must do t h i s together. I
pledge t o you t h a t I w i l l do my best t o see t h a t business and labor
and government work together f o r a change.
(Applause.)
But a l l of our e f f o r t s t o strengthen the economy w i l l
f a i l — l e t me say t h i s again; I f e e l so s t r o n g l y about t h i s — a l l
of our e f f o r t s t o strengthen the economy w i l l f a i l unless we also
take t h i s year — not next year, not f i v e years from now, but t h i s
year — bold steps t o reform our h e a l t h care system.
(Applause.)
I n 1992, we spent 14 percent of our income on h e a l t h
care, more than 3 0 percent more than any other country i n the world;
and yet we were the only advanced n a t i o n t h a t d i d not provide a basic
package of h e a l t h care b e n e f i t s t o a l l of i t s c i t i z e n s . Unless we
change the present p a t t e r n , 50 percent of the growth i n the d e f i c i t
between now and the year 2000. w i l l be i n h e a l t h care costs. By the
year 2000 almost 20 percent of our income w i l l be i n h e a l t h care.
Our f a m i l i e s w i l l never be secure, our businesses w i l l never be
strong and our government w i l l never again be f u l l y solvent u n t i l we
t a c k l e the h e a l t h care c r i s i s . We must do i t t h i s year.
(Applause.)
The combination of the r i s i n g cost of care and the lack
of care and the fear of l o s i n g care are endangering the s e c u r i t y and
the very l i v e s of m i l l i o n s of our people. And they are weakening our
economy every day. Reducing h e a l t h care costs can l i b e r a t e l i t e r a l l y
hundreds of b i l l i o n s of d o l l a r s f o r new investment i n growth and
jobs. B r i n g i n g h e a l t h costs i n l i n e w i t h i n f l a t i o n would do more f o r
the p r i v a t e sector i n t h i s country than any tax cut we could give and
any spending program we could promote. Reforming h e a l t h care over
the long run i s c r i t i c a l l y e s s e n t i a l t o reducing not only our d e f i c i t
but t o expanding investment i n America.
(Applause.)
Later t h i s spring, a f t e r the F i r s t Lady and the many
good people who are helping her a l l across the country complete t h e i r
work, I w i l l d e l i v e r t o Congress a comprehensive plan f o r h e a l t h care
reform t h a t f i n a l l y w i l l b r i n g costs under c o n t r o l and provide
s e c u r i t y t o a l l of our f a m i l i e s , so t h a t no one w i l l be denied the
coverage they need, but so t h a t our economic f u t u r e w i l l not be
compromised e i t h e r .
(Applause.) We'll have t o r o o t out f r a u d and
overcharges, and make sure t h a t paperwork no longer chokes your
doctor. We 11 have t o maintain the highest American standards and
the r i g h t t o choose i n a system t h a t i s the world's f i n e s t f o r a l l
those who can access i t . (Applause.)
1
But f i r s t we must make choices. We must choose t o give
the American people the q u a l i t y they demand and deserve w i t h a system
t h a t w i l l not bankrupt the country or f u r t h e r d r i v e more Americans
i n t o agony.
Let me f u r t h e r say t h a t I want t o work w i t h a l l of you
on t h i s . I r e a l i z e t h i s i s a complicated issue. But we must address
i t . And I b e l i e v e i f there i s any chance t h a t Republicans and
Democrats who disagree on taxes and spending or anything else could
agree on one t h i n g , surely we can a l l look a t these numbers and go
home and t e l l our people the t r u t h . We cannot continue these
spending p a t t e r n s i n p u b l i c or p r i v a t e d o l l a r s f o r h e a l t h care f o r
less and less and less every year. We can do b e t t e r . And I —
(applause).
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Perhaps the most fundamental change the new d i r e c t i o n I
propose o f f e r s i s i t s focus on the f u t u r e and i t s investment, which I
seek i n our c h i l d r e n . Each day we delay r e a l l y making a commitment
t o our c h i l d r e n c a r r i e s a dear cost. Half of the two-year-olds i n
t h i s country today don't receive the immunizations they need against
deadly diseases. Our plan w i l l provide them f o r every e l i g i b l e
c h i l d . And we know now t h a t we w i l l save $10 l a t e r f o r every $1 we
spend by e l i m i n a t i n g preventable childhood diseases. That's a good
investment no matter how you measure i t . (Applause.)
I recommend t h a t the Women, I n f a n t s and Children's
n u t r i t i o n program be expanded so t h a t every expectant mother who
needs the help gets i t . (Applause.) We a l l know t h a t Head S t a r t ,
a program t h a t prepares c h i l d r e n f o r school i s a success s t o r y .
We
a l l know t h a t i t saves money, but today i t j u s t reaches b a r e l y over
o n e - t h i r d of a l l the e l i g i b l e c h i l d r e n . Under t h i s p l a n , every
e l i g i b l e c h i l d w i l l be able t o get a head s t a r t .
(Applause.)
This i s not j u s t the r i g h t t h i n g t o do, i t i s the smart
t h i n g t o do. For every d o l l a r we i n v e s t today w e ' l l save $3
tomorrow. We have t o s t a r t t h i n k i n g about tomorrow. I've heard t h a t
somewhere before. (Laughter.)
We have t o ask more i n our schools of our students, our
teachers, our p r i n c i p a l s , our. parents. Yes, we must give them the
resources they need t o meet high standards, but we must also use the
a u t h o r i t y and the i n f l u e n c e and the funding of the education
department t o promote s t r a t e g i e s t h a t r e a l l y work i n l e a r n i n g . Money
alone i s not enough. We have t o do what r e a l l y works t o increase
l e a r n i n g i n our schools.
(Applause.)
We have t o recognize t h a t a l l of our high school
graduates need some f u r t h e r education i n order t o be competitive i n
t h i s g l o b a l economy. So we have t o e s t a b l i s h a p a r t n e r s h i p between
businesses and education and the government f o r apprenticeship
programs i n every s t a t e i n t h i s country t o give our people the s k i l l s
they need. (Applause.)
L i f e l o n g l e a r n i n g must b e n e f i t not j u s t
young h i g h school graduates, but workers, too, throughout t h e i r
career.
The average 18-year-old today w i l l change jobs seven
times i n a l i f e t i m e . We have done a l o t i n t h i s country on worker
t r a i n i n g i n the l a s t few years, but the system i s too f r a c t u r e d .
We
must develop a u n i f i e d , s i m p l i f i e d , s e n s i b l e , streamlined worker
t r a i n i n g program so t h a t workers receive the t r a i n i n g they need
regardless of why they l o s t t h e i r jobs or whether they simply need t o
l e a r n something new t o keep them. We have got t o do b e t t e r on t h i s .
(Applause.)
And, f i n a l l y , I propose a program t h a t got a great
response from the American people a l l across t h i s country l a s t year:
A program of n a t i o n a l service t o make c o l l e g e loans a v a i l a b l e t o a l l
Americans and t o challenge them at the same time t o g i v e something
back t o t h e i r country as teachers or p o l i c e o f f i c e r s or community
service workers — t o give them the o p t i o n t o pay the loans back, but
at tax time, so they can't beat the b i l l , but t o encourage them
instead t o pay i t back by making t h e i r country stronger and making
t h e i r country b e t t e r and g i v i n g us the b e n e f i t of t h e i r knowledge.
(Applause.)
A generation ago when President Kennedy proposed and the
United States Congress embraced the Peace Corps, i t defined the
character of a whole generation of American committed t o serving
people around the world. I n t h i s n a t i o n a l service program, we w i l l
provide more than twice as many s l o t s f o r people before they go t o
college t o be i n n a t i o n a l service than ever served i n the Peace
Corps. This program could do f o r t h i s generation of members of
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�- 6-
Congress what t h e Land Grant College Act d i d and what the GI B i l l d i d
f o r former congressmen. I n the f u t u r e , h i s t o r i a n s who got t h e i r
education through the n a t i o n a l s e r v i c e loan w i l l look back on you and
thank you f o r g i v i n g America a new lease on l i f e i f you meet t h i s
challenge.
(Applause.)
I f we b e l i e v e i n jobs and we b e l i e v e i n l e a r n i n g , we
must b e l i e v e i n rewarding work. I f we believe i n r e s t o r i n g t h e
values t h a t make America s p e c i a l , we must b e l i e v e t h a t there i s
d i g n i t y i n a l l work, and there must be d i g n i t y f o r a l l workers.
To those who care f o r our s i c k , who tend our c h i l d r e n ,
who do our most d i f f i c u l t and t i r i n g jobs, the new d i r e c t i o n I
propose w i l l make t h i s solemn, simple commitment: By expanding t h e
refundable earned income tax c r e d i t , we w i l l make h i s t o r y . We w i l l
reward the work o f m i l l i o n s of working poor Americans by r e a l i z i n g
the p r i n c i p l e t h a t i f you work 40 hours a week and you've got a c h i l d
i n the house, you w i l l no longer be i n poverty.
(Applause.)
Later t h i s year, we w i l l o f f e r a plan t o end welfare as
we know i t . I have worked on t h i s issue f o r the b e t t e r p a r t o f a
decade. And I know from personal conversations w i t h many people t h a t
no one — no one wants t o change the welfare system as badly as those
who are trapped i n i t .
(Applause.)
I want t o o f f e r the people on welfare the education, the
t r a i n i n g , t h e c h i l d care, the h e a l t h care they need t o get back on
t h e i r f e e t , b u t say, a f t e r two years, they must get back t o work,
too, i n p r i v a t e business i f p o s s i b l e , i n p u b l i c service i f necessary.
We have t o end welfare as a way o f l i f e and make i t a path t o
independence and d i g n i t y . (Applause.)
Our next great goal should be t o strengthen our
f a m i l i e s . I compliment the Congress f o r passing the Family and
Medical Leave A c t as a good f i r s t step. (Applause.)
But i t i s time
t o do more. This plan w i l l give t h i s country the toughest c h i l d
support enforcement system i t has ever had. I t i s time t o demand
t h a t people take r e s p o n s i b i l i t y f o r the c h i l d r e n they b r i n g i n t h i s
world.
(Applause.)
And I ask you t o help t o p r o t e c t our f a m i l i e s against
the v i o l e n t crime which t e r r o r i z e s our people and which t e a r s our
communities a p a r t . We must pass a tough crime b i l l .
(Applause.) I
support not only the b i l l which d i d n ' t q u i t e make i t t o the
President's desk l a s t year, but also an i n i t i a t i v e t o put 100,000
more p o l i c e o f f i c e r s on the s t r e e t — (applause) — t o provide
bootcamps f o r f i r s t - t i m e nonviolent offenders f o r more space f o r the
hardened c r i m i n a l s i n j a i l — (applause) — and I support an
i n i t i a t i v e t o do what we can t o keep guns out of the hands o f
criminals.
(Applause.)
Let me say t h i s . I w i l l make you t h i s bargain:
w i l l pass t h e Brady b i l l , I ' l l sure sign i t .
(Applause.)
I f you
Let me say now, we should move t o the harder p a r t s .
(Applause.)
I t h i n k i t i s c l e a r t o every American, i n c l u d i n g every
member o f Congress of both p a r t i e s , t h a t the confidence o f the people
who pay our b i l l s i n our i n s t i t u t i o n s i n Washington i s not high. We
must r e s t o r e i t . We must begin again t o make government work f o r
o r d i n a r y taxpayers, not simply f o r organized i n t e r e s t groups. And
t h a t beginning must s t a r t w i t h r e a l p o l i t i c a l reform.
(Applause.)
I am asking the United States Congress t o pass a r e a l
campaign finance reform b i l l t h i s year. (Applause.)
I ask you t o
increase the p a r t i c i p a t i o n of the American people by passing t h e
motor v o t e r b i l l promptly. (Applause.)
I ask you t o deal w i t h the
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�- 7 -
undue i n f l u e n c e of s p e c i a l i n t e r e s t by passing a b i l l t o end the tax
deduction f o r lobbying and t o act q u i c k l y t o r e q u i r e a l l the people
who lobby you t o r e g i s t e r as l o b b y i s t s by passing the lobbying
registration b i l l .
(Applause.)
Believe me, they were cheering t h a t l a s t s e c t i o n a t
home. I b e l i e v e lobby reform and campaign finance reform are a sure
path t o increased p o p u l a r i t y f o r Republicans and Democrats a l i k e
because i t says t o the v o t e r s back home, "This i s your House. This
i s your Senate. We're your h i r e d hands. And every penny we draw i s
your money."
(Applause.)
Next, t o r e v o l u t i o n i z e government we have t o ensure t h a t
we l i v e w i t h i n our means, and t h a t should s t a r t a t the top and w i t h
the White House. I n the l a s t few days I have announced a cut i n the
White House s t a f f of 25 percent, saving approximately $10 m i l l i o n . I
have ordered a d m i n i s t r a t i v e cuts i n budgets of agencies and
departments.
I have cut the f e d e r a l bureaucracy — or w i l l over the
next four years — by approximately 100,000 p o s i t i o n s , f o r a combined
savings of $9 b i l l i o n .
(Applause.)
I t i s time f o r government t o
demonstrate i n the c o n d i t i o n we're i n t h a t we can be as f r u g a l as any
household i n America.
And t h a t ' s why I also want t o congratulate the Congress.
I n o t i c e the announcement of the leadership today t h a t Congress i s
t a k i n g s i m i l a r steps t o cut i t s costs. I t h i n k t h a t i s important. I
t h i n k i t w i l l send a very c l e a r s i g n a l t o the American people.
(Applause.)
But i f we r e a l l y want t o cut spending we're going t o
have t o do more, and some of i t w i l l be d i f f i c u l t . Tonight I c a l l
f o r an across-the-board freeze i n f e d e r a l government s a l a r i e s f o r one
year. (Applause.) And t h e r e a f t e r , during t h i s four-year p e r i o d , I
recommend t h a t s a l a r i e s r i s e a t one p o i n t lower than the cost of
l i v i n g allowance normally involved i n federal pay increases.
(Applause.)
Next, I recommend t h a t we make 150 s p e c i f i c budget cuts,
as you know, and t h a t a l l those who say we should cut more be as
s p e c i f i c as I have been.
(Applause.)
F i n a l l y , l e t me say t o my f r i e n d s on both sides of the
a i s l e , i t i s not enough simply t o cut government, we have t o r e t h i n k
the whole way i t works. When I became President I was amazed a t j u s t
the way the White House worked i n ways t h a t added l o t s of money t o
what taxpayers had t o pay — outmoded ways t h a t d i d n ' t take maximum
advantage of technology and d i d n ' t do t h i n g s t h a t any business would
have done years ago t o save taxpayers' money.
So I want t o b r i n g a new s p i r i t of innovation i n t o every
government department.
I want t o push education reform, as I said,
not j u s t t o spend more money, but t o r e a l l y improve l e a r n i n g . Some
t h i n g s work and some t h i n g s don't. We ought t o be s u b s i d i z i n g the
t h i n g s t h a t work and discouraging the t h i n g s t h a t don't. I ' d l i k e t o
use t h a t superfund t o clean up p o l l u t i o n f o r a change and not j u s t
pay lawyers.
(Applause.)
I n the aftermath of a l l the d i f f i c u l t i e s w i t h the
savings and loans, we must use f e d e r a l bank r e g u l a t o r s t o p r o t e c t the
s e c u r i t y and s a f e t y of our f i n a n c i a l i n s t i t u t i o n s , but they should
not be used t o continue the c r e d i t crunch and t o stop people from
making s e n s i b l e loans.
(Applause.)
I ' d l i k e f o r us t o not only have w e l f a r e reform but t o
reexamine the whole focus of a l l of our programs t h a t help people t o
s h i f t them from e n t i t l e m e n t programs t o empowerment programs. I n the
end we want people not t o need us anymore. I t h i n k t h a t ' s important.
(Applause.)
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�- 8-
But i n the end we have t o get back t o t h e d e f i c i t . For
years there's been a l o t o f t a l k about i t , but very few c r e d i b l e
e f f o r t s t o deal w i t h i t . And now I understand why, having d e a l t w i t h
the r e a l numbers f o r four weeks. (Laughter.) But I b e l i e v e t h i s
plan does — i t t a c k l e s the budget d e f i c i t s e r i o u s l y and over t h e
long-term. I t puts i n place one o f the biggest d e f i c i t reductions
and one o f the biggest changes i n f e d e r a l p r i o r i t i e s from consumption
t o investment i n the h i s t o r y o f t h i s country a t the same time over
the next f o u r years.
Let me say t o a l l the people watching us t o n i g h t , who
w i l l ask me these questions beginning tomorrow as I go around t h e
country and who've asked i t i n the past, we're not c u t t i n g t h e
d e f i c i t j u s t because experts say i t ' s the t h i n g t o do or because i t
has some i n t r i n s i c m e r i t . We have t o cut the d e f i c i t because the
more we spend paying o f f the debt, t h e less t a x d o l l a r s we have t o
invest i n jobs and education and the f u t u r e o f t h i s country. And the
more money we take out o f the pool o f a v a i l a b l e savings, the harder
i t i s f o r people i n the p r i v a t e sector t o borrow money a t a f f o r d a b l e
i n t e r e s t r a t e s f o r a college loan f o r t h e i r c h i l d r e n , f o r a home
mortgage, or t o s t a r t a new business.
That's why we've got t o reduce the debt — because i t i s
crowding out other a c t i v i t i e s t h a t we ought t o be engaged i n and t h a t
the American people ought t o be engaged i n . (Applause.) We cut the
d e f i c i t so t h a t our c h i l d r e n w i l l be able t o buy a home, so t h a t our
companies can i n v e s t i n the f u t u r e and i n r e t r a i n i n g t h e i r workers,
so t h a t our government can make the kinds o f investments we need t o
be a stronger and smarter and safer n a t i o n .
I f we don't act now, you and I might not even recognize
t h i s government 10 years from now. I f we j u s t stay w i t h the same
trends o f t h e l a s t four years, by the end o f the decade the d e f i c i t
w i l l be $635 b i l l i o n a year, almost 80 percent o f our gross domestic
product. And paying i n t e r e s t on t h a t debt w i l l be t h e c o s t l i e s t
government program of a l l . We'll s t i l l be the world's l a r g e s t
debtor. And when members o f Congress come here, t h e y ' l l be devoting
over 20 cents on the d o l l a r t o i n t e r e s t payments, more than h a l f of
the budget t o h e a l t h care and t o other e n t i t l e m e n t s . And y o u ' l l come
here and d e l i b e r a t e and argue over s i x or seven cents on the d o l l a r ,
no matter what America's problems are.
We w i l l not be able t o have the independence we need t o
chart the f u t u r e t h a t we must. And w e ' l l be t e r r i b l y dependent on
f o r e i g n funds f o r a large p o r t i o n of our investment.
This budget plan by c o n t r a s t w i l l , by 1997, c u t $140
b i l l i o n i n t h a t year alone from the d e f i c i t . A r e a l spending cut, a
r e a l revenue increase, a r e a l d e f i c i t r e d u c t i o n , using t h e
independent numbers of the Congressional Budget O f f i c e .
(Laughter.)
Well, you can laugh, my f e l l o w Republicans, but I ' l l p o i n t out t h a t
the Congressional Budget O f f i c e was normally more conservative i n
what was going t o happen and closer t o r i g h t than previous Presidents
have been.
(Applause.)
I d i d t h i s so t h a t we could argue about p r i o r i t i e s w i t h
the same s e t o f numbers. I d i d t h i s so t h a t no one could say I was
e s t i m a t i n g my way out of t h i s d i f f i c u l t y . I d i d t h i s because i f we
can agree together on the most prudent revenues we're l i k e l y t o get,
i f the recovery stays and we do r i g h t t h i n g s economically, then i t
w i l l t u r n out b e t t e r f o r the American people than we say than t h e
l a s t 12 years. Because t h e r e were d i f f e r e n c e s over t h e revenue
estimates, you and I know t h a t both p a r t i e s were given greater elbow
room f o r i r r e s p o n s i b i l i t y . This i s t i g h t e n i n g the r e i n on t h e
Democrats as w e l l as the Republicans.
Let's a t l e a s t argue about the
same set o f numbers so the American people w i l l t h i n k we're keeping
s t r a i g h t w i t h them.
(Applause.)
MR
OE
�- 9 -
As I said e a r l i e r , my recommendation makes more than 150
d i f f i c u l t reductions to cut the federal spending by a t o t a l of $24 6
b i l l i o n . We are eliminating programs that are no longer needed, such
as nuclear power research and development. (Applause.) We're
slashing subsidies and canceling wasteful projects. But many of
these programs were j u s t i f i e d i n their time, and a l o t of them are
d i f f i c u l t for me to recommend reductions i n . Some r e a l l y tough ones
for me personally.
I recommend that we reduce interest subsidies to the
Rural E l e c t r i c Administration. That's a d i f f i c u l t thing for me to
recommend. But I think that I cannot exempt the things that exist i n
my state, or i n my experience, i f I ask you to deal with things that
are d i f f i c u l t for you to deal with. We're going to have to have no
sacred cows except the fundamental abiding interest of the American
people.
(Applause.)
I have to say that we a l l know our government has been
j u s t great at building programs. The time has come to show the
American people that we can l i m i t them, too; that we can not only
s t a r t things, that we can actually stop things. (Applause.)
About the defense budget, I r a i s e a hope and a caution.
As we restructure our m i l i t a r y forces to meet the new threats of the
post-Cold War world, i t i s true that we can responsibly reduce our
defense budget. And we may a l l doubt what that range of reductions
i s . But l e t me say that as long as I am President, I w i l l do
everything I can to make sure that the men and women who serve under
the American Flag, w i l l remain the best-trained, the best-prepared,
the best-equipped fighting force in the world. And every one of you
should make that solemn pledge. We s t i l l have r e s p o n s i b i l i t i e s
around the world. We are the world's only superpower. This i s s t i l l
a dangerous and uncertain time. And we owe i t to the people i n
uniform to make sure that we adequately provide for the national
defense and for their interests and needs.
(Applause.)
Backed by an effective national defense and a stronger
economy, our nation w i l l be prepared to lead a world challenged — as
i t i s everywhere — by ethnic conflict, by the p r o l i f e r a t i o n of
weapons of mass destruction, by the global democratic revolution and
by challenges to the health of our global environment.
I know t h i s economic plan i s ambitious, but I honestly
believe i t i s necessary for the continued greatness of the United
States. And I think i t i s paid for f a i r l y , f i r s t by cutting
government, then by asking the most of those who benefited the most
in the past, and by asking more Americans to contribute today so that
a l l of us can prosper tomorrow.
For the wealthiest — those earning more than $180,000
per year — I ask you a l l who are l i s t e n i n g tonight to support a
r a i s e i n the top rate for federal income taxes from 31 to 3 6 percent.
(Applause.) We recommend a 10 percent surtax on incomes over
$250,000 a year — (applause) — and we recommend closing
some loopholes that l e t some people get away without paying any tax
at a l l .
(Applause.)
For businesses with taxable incomes in excess of $10
m i l l i o n we recommend a r a i s e in the corporate tax rate also to 3 6
percent, as well as a cut i n the deduction for business entertainment
expenses.
(Applause.) Our plan seeks to attack tax subsidies that
actually reward companies more for shutting t h e i r operations down
here and moving them overseas than for staying here and reinvesting
in America.
(Applause.)
I say that as someone who believes that American
companies should be free to invest around the world and, as a former
MORE
�- 10 -
governor who a c t i v e l y sought investment of f o r e i g n companies i n my
s t a t e , but the tax code should not express a preference t o American
companies f o r moving somewhere else. And i t does i n p a r t i c u l a r cases
today.
(Applause.)
We w i l l seek t o ensure t h a t through e f f e c t i v e tax
enforcement f o r e i g n corporations who do make money i n America simply
pay the same taxes t h a t American companies make on the same income.
(Applause.)
To middle class Americans who have paid a great deal f o r
the l a s t 12 years and from whom I ask a c o n t r i b u t i o n t o n i g h t , I w i l l
say again as I d i d on Monday n i g h t , you're not going alone anymore,
you're c e r t a i n l y not going f i r s t and you're not going t o pay more f o r
l e s s as you have too o f t e n i n the past.
I want t o emphasize the f a c t s about t h i s plan:
98.8
percent of America's f a m i l i e s w i l l have no increase i n t h e i r income
tax r a t e s — (applause) — only 1.2 percent a t the t o p . Let me be
c l e a r : There w i l l also be no new cuts i n b e n e f i t s f o r Medicare.
(Applause.) As we move toward the f o u r t h year, w i t h the explosion i n
h e a l t h care costs, as I s a i d , p r o j e c t e d t o account f o r 50 percent of
the growth of the d e f i c i t between now and the year 2000, there must
be planned cuts i n payments t o providers — t o doctors, t o h o s p i t a l s ,
t o labs — as a way of c o n t r o l l i n g h e a l t h care costs. But I see
these only as a stop-gap u n t i l we can reform the e n t i r e h e a l t h care
system. I f y o u ' l l help me do t h a t , we can be f a i r t o the providers
and t o the consumers of h e a l t h care.
(Applause.)
Let me repeat t h i s , because I know i t matters t o a l o t
of you on both sides of the a i s l e . This plan does not make a
recommendation f o r new cuts i n Medicare b e n e f i t s f o r any b e n e f i c i a r y .
Secondly, the only change we are making i n S o c i a l S e c u r i t y i s one
t h a t has already been p u b l i c i z e d . The plan does ask older Americans
w i t h higher incomes who do not r e l y s o l e l y on Social Security t o get
by.to c o n t r i b u t e more. This plan w i l l not a f f e c t the 80 percent of
S o c i a l Security r e c i p i e n t s who do not pay taxes on Social Security
now.
Those who do not pay tax on Social S e c u r i t y now w i l l not be
a f f e c t e d by t h i s plan.
Our plan does include a broad-based tax on energy. And
I want t o t e l l you why I selected t h i s and why I t h i n k i t ' s a good
idea. I recommend t h a t we adopt a BTU tax on the heat content of
energy as the best way t o provide us w i t h revenue t o lower the
d e f i c i t because i t also combats p o l l u t i o n , promotes energy
e f f i c i e n c y , promotes the independence economically of t h i s country,
as w e l l as helping t o reduce the debt, and because i t does not
d i s c r i m i n a t e against any area — u n l i k e a carbon tax t h a t ' s not too
hard on the coal s t a t e s ; u n l i k e a gas tax t h a t ' s not too tough on
people who d r i v e a long way t o work; u n l i k e an ad valorem t a x i t
doesn't increase j u s t when the p r i c e of an energy source goes up.
And i t i s environmentally responsible. I t w i l l help us i n the f u t u r e
as w e l l as i n the present w i t h the d e f i c i t .
(Applause.)
Taken together these measures w i l l cost an American
f a m i l y w i t h an income of about $4 0,000 a year l e s s than $17 a month.
I t w i l l cost American f a m i l i e s w i t h incomes under $30,000 nothing,
because of other programs we propose — p r i n c i p a l l y those r a i s i n g the
earned income tax c r e d i t .
Because of our p u b l i c l y - s t a t e d determination t o reduce
the d e f i c i t , i f we do these t h i n g s , we w i l l see the c o n t i n u a t i o n of
what's happened j u s t since the e l e c t i o n . Just since the e l e c t i o n ,
since the Secretary of the Treasury, the D i r e c t o r of the O f f i c e of
Management and Budget and others who have begun t o speak out p u b l i c l y
i n favor of a tough d e f i c i t reduction plan, i n t e r e s t r a t e s have
continued t o f a l l long-term. That means t h a t f o r the middle class,
who w i l l pay something more each month, i f they had any c r e d i t needs
MR
OE
�- 11 -
or demands t h e i r increased energy costs w i l l be more than o f f s e t by
lower i n t e r e s t costs f o r mortgages, consumer loans, c r e d i t cards.
This can be a wise investment f o r them and t h e i r country now.
(Applause.)
I would also p o i n t out what the American people already
know, and t h a t i s , because we're a b i g , vast country where we d r i v e
long distances, we have maintained f a r lower burdens on energy than
any other advanced country. We w i l l s t i l l have f a r lower burdens on
energy than any other advanced country. And these w i l l be spread
f a i r l y , w i t h r e a l attempts t o make sure t h a t no cost i s imposed on
f a m i l i e s w i t h incomes under $30,000 and t h a t the costs are very
modest u n t i l you get i n t o the higher income groups where the income
taxes t r i g g e r i n .
Now, I ask a l l of you t o consider t h i s : Whatever you
t h i n k of the tax program, whatever you t h i n k o f the spending c u t s ,
consider the cost of not changing. Remember the numbers t h a t you a l l
know. I f we j u s t keep on doing what we're doing, by the end of the
decade w e ' l l have a $650-billion-a-year d e f i c i t . I f we j u s t keep on
doing what we're doing, by the end of the decade, 2 0 percent of our
n a t i o n a l income w i l l go t o h e a l t h care every year — twice as much as
any other country on the face of the globe. I f we j u s t keep on doing
what we're doing, over 2 0 cents on the d o l l a r w i l l have t o go t o
service the debt.
Unless we have the courage now t o s t a r t b u i l d i n g our
f u t u r e and stop borrowing from i t , we're condemning ourselves t o
years of stagnation i n t e r r u p t e d by occasional recessions, t o slowgrowth i n jobs, t o no more growth i n income, t o more debt, t o more
disappointment. Worse less — unless we change, unless we increase
investment and reduce the debt, t o r a i s e p r o d u c t i v i t y so t h a t we can
generate both jobs and incomes, we w i l l be condemning our c h i l d r e n
and our c h i l d r e n ' s c h i l d r e n t o a l e s s e r l i f e than we enjoyed.
Once Americans looked forward t o doubling t h e i r l i v i n g
standards every 25 years. At present p r o d u c t i v i t y r a t e s , i t w i l l
take 100 years t o double l i v i n g standards, u n t i l our grandchildren's
grandchildren are born. I say t h a t i s too long t o w a i t .
(Applause.)
Tonight the American people know we have t o change. But
they're also l i k e l y t o ask me tomorrow and a l l of you f o r the weeks
and months ahead whether we have the f o r t i t u d e t o make the changes
happen i n the r i g h t way.
They know t h a t as soon as I leave t h i s
Chamber and you go home, various i n t e r e s t groups w i l l be out i n force
lobbying against t h i s or t h a t piece of t h i s p l a n . And t h a t the
forces of conventional wisdom w i l l o f f e r a thousand reasons why we
w e l l ought t o do t h i s but we j u s t can't do i t .
Our people w i l l be watching and wondering, not t o see
whether you disagree w i t h me on a p a r t i c u l a r issue, but j u s t t o see
whether t h i s i s going t o be business as usual or a r e a l new day.
Whether we're a l l going t o conduct ourselves as i f we know we're
working f o r them. We must scale the w a l l s of the people's
skepticisms, not w i t h our words but w i t h our deeds.
(Applause.)
A f t e r so many years of g r i d l o c k and i n d e c i s i o n , a f t e r so
many hopeful beginnings and so few promising r e s u l t s , the American
people are going t o be harsh i n t h e i r judgments of a l l of us i f we
f a i l t o seize t h i s moment.
This economic plan can't please everybody.
I f the
package i s picked apart, there w i l l be something t h a t w i l l anger each
of us, won't please anybody. But i f i t i s taken as a whole, i t w i l l
help a l l of us.
So I ask you a l l t o begin by r e s i s t i n g the temptation t o
focus only on a p a r t i c u l a r spending cut you don't l i k e or some
p a r t i c u l a r investment t h a t wasn't made. And nobody l i k e s the t a x
increases, but l e t ' s j u s t face f a c t s . For 20 years, through
�- 12 -
a d m i n i s t r a t i o n s of both p a r t i e s , incomes have s t a l l e d and debt has
exploded, and p r o d u c t i v i t y has not grown as i t should. We cannot
deny t h e r e a l i t y o f our c o n d i t i o n . We have got t o play t h e hand we
were d e a l t and play i t as best we can.
(Applause.)
My f e l l o w Americans, t h e t e s t of t h i s plan cannot be
what i s i n i t f o r me, i t has got t o be what i s i n i t f o r us.
(Applause.)
I f we work hard and i f we work together, i f we
rededicate ourselves t o c r e a t i n g jobs, t o rewarding work, t o
strengthening our f a m i l i e s , t o r e i n v e n t i n g our government, we can
l i f t our c o u n t r i e s fortunes again.
Tonight, I ask everyone i n t h i s Chamber and every
American t o look simply i n t o your heart, t o spark your own hopes, t o
f i r e your own imagination. There i s so much good, so much
p o s s i b i l i t y , so much excitement i n t h i s country now, t h a t i f we act
b o l d l y and honestly, as leaders should, our legacy w i l l be one of
p r o s p e r i t y and progress. This must be America's new d i r e c t i o n . Let
us summon t h e courage t o seize i t .
Thank you.
God bless America.
END
(Applause.)
10:10 P.M. EST
�THE WHITE HOUSE
O f f i c e of the Press Secretary
For Iminediate Release
February 17, 1993
ADDRESS BY THE PRESIDENT
TO THE JOINT SESSION OF CONGRESS
The C a p i t o l
9:10
P.M. EST
THE PRESIDENT: Mr. President, Mr. Speaker, members o f
the House and the Senate, d i s t i n g u i s h e d Americans here as v i s i t o r s i n
t h i s Chamber, as am I .
I t i s nice t o have a f r e s h excuse f o r g i v i n g
a long speech. (Laughter.)
When Presidents speak t o Congress and the n a t i o n from
t h i s podium, t y p i c a l l y , they comment on the f u l l range and challenges
and o p p o r t u n i t i e s t h a t face the United States. But t h i s i s not an
o r d i n a r y time, and f o r a l l the many tasks t h a t r e q u i r e our a t t e n t i o n ,
I b e l i e v e t o n i g h t one c a l l s on us t o focus, t o u n i t e , and t o a c t .
And t h a t i s our economy. For more than anything e l s e , our task
t o n i g h t as Americans i s t o make our economy t h r i v e again.
Let me begin by saying t h a t i t has been too long, a t
l e a s t three decades, since a President has come and challenged
Americans t o j o i n him on a great n a t i o n a l journey, not merely t o
consume the bounty of today, but t o i n v e s t f o r a much greater one
tomorrow.
(Applause.)
Like i n d i v i d u a l s , nations must u l t i m a t e l y decide how
they wish t o conduct themselves, how they wish t o be thought of by
those w i t h whom they l i v e , and l a t e r , how they wish t o be judged by
h i s t o r y . Like every i n d i v i d u a l , man and woman, nations must decide
whether they are prepared t o r i s e t o the occasions h i s t o r y presents
them.
We have always been a people of y o u t h f u l energy and
daring s p i r i t . And at t h i s h i s t o r i c moment, as communism has f a l l e n ,
as freedom i s spreading around the world, as a g l o b a l economy i s
t a k i n g shape before our eyes, Americans have c a l l e d f o r change. And
now i t i s up t o those of us i n t h i s room t o d e l i v e r f o r them.
Our n a t i o n needs a new d i r e c t i o n . Tonight I present t o
you a comprehensive plan t o set our n a t i o n on t h a t new course. I
b e l i e v e we w i l l f i n d our new d i r e c t i o n i n the basic o l d values t h a t
brought us here over the l a s t two c e n t u r i e s — a commitment t o
o p p o r t u n i t y , t o i n d i v i d u a l r e s p o n s i b i l i t y , t o community, t o work, t o
f a m i l y and t o f a i t h . We must now break the h a b i t s of both p o l i t i c a l
p a r t i e s and say t h e i r can be no more something f o r nothing and admit
f r a n k l y t h a t we are a l l i n t h i s together.
(Applause.)
The c o n d i t i o n s which brought us as a n a t i o n t o t h i s
p o i n t are well-known:
Two decades of low p r o d u c t i v i t y , growth, and
stagnant wages; p e r s i s t e n t unemployment and underemployment; years of
huge government d e f i c i t s and d e c l i n i n g investment i n our f u t u r e ;
exploding h e a l t h care costs and l a c k of coverage f o r m i l l i o n s o f
Americans; legions of poor c h i l d r e n ; education and j o b t r a i n i n g
o p p o r t u n i t i e s inadequate t o the demands of t h i s tough, g l o b a l
economy. For too long we have d r i f t e d w i t h o u t a strong sense o f
purpose or r e s p o n s i b i l i t y or community.
MORE
�- 2 -
And our p o l i t i c a l system so o f t e n has seemed paralyzed
by s p e c i a l i n t e r e s t groups, by p a r t i s a n b i c k e r i n g and by the sheer
complexity of our problems. I believe we can do b e t t e r because we
remain t h e greatest n a t i o n on Earth, the world's strongest economy,
the world's only m i l i t a r y superpower. I f we have the v i s i o n , the
w i l l and the heart t o make the changes we must, we can s t i l l enter
the 21st century w i t h p o s s i b i l i t i e s our parents could not even have
imagined, and enter i t having secured the American Dream f o r
ourselves and f o r f u t u r e generations. (Applause.)
I w e l l remember 12 years ago President Reagan stood at
t h i s v e r y podium and t o l d you and the American people t h a t i f our
n a t i o n a l debt were stacked i n thousand-dollar b i l l s the stack would
reach 67 miles i n t o space. Well, today t h a t stack would reach 2 67
miles. I t e l l you t h i s not t o assign blame f o r t h i s problem. There
i s p l e n t y of blame t o go around i n both branches of the government
and both p a r t i e s . The time has come f o r t h e blame t o end.
(Applause.) I d i d not seek t h i s o f f i c e t o place blame. I come here
t o n i g h t t o accept r e s p o n s i b i l i t y and I want you t o accept
r e s p o n s i b i l i t y w i t h me. And i f we do r i g h t by t h i s country, I do not
care who gets the c r e d i t f o r i t . (Applause.)
The plan I o f f e r you has four fundamental components.
F i r s t , i t s h i f t s our emphasis i n p u b l i c and p r i v a t e spending from
consumption t o investment — i n i t i a l l y by j u m p - s t a r t i n g the economy
i n t h e short-term, and i n v e s t i n g i n our people, t h e i r jobs, and t h e i r
incomes over the long run. Second, i t changes the r h e t o r i c of the
past i n t o the actions of the present by honoring work and f a m i l i e s i n
every p a r t o f our p u b l i c decision-making. T h i r d , i t s u b s t a n t i a l l y
reduces the f e d e r a l d e f i c i t honestly and c r e d i b l y by using i n the
beginning the most conservative estimates o f government revenues,
not, as t h e Executive Branch has done so o f t e n i n the past, using the
most o p t i m i s t i c ones. (Applause.)
And f i n a l l y , i t seeks t o earn the t r u s t of the American
people by paying f o r these plans f i r s t w i t h cuts i n government waste
and e f f i c i e n c y ; second, w i t h cuts, not gimmicks, i n government
spending; and by f a i r n e s s f o r a change i n the way a d d i t i o n a l burdens
are borne.
(Applause.)
Tonight I want t o t a l k w i t h you about what government
can do because I believe government must do more. But l e t me say
f i r s t t h a t the r e a l engine of economic growth i n t h i s country i s the
p r i v a t e sector. (Applause.) And second, t h a t each of us must be an
engine o f growth and change. The t r u t h i s t h a t as government creates
more o p p o r t u n i t y i n t h i s new and d i f f e r e n t time, we must also demand
more r e s p o n s i b i l i t y i n t u r n .
jobs
have
sure
that
Our immediate p r i o r i t y must be t o create jobs, create
now.
Some people say, w e l l , we're i n a recovery and we don't
t o do t h a t . Well, we a l l hope we're i n a recovery, but we're
n o t c r e a t i n g new jobs. And there's no recovery worth i t s s a l t
doesn't put the American people back t o work.
(Applause.)
To create jobs and guarantee a strong recovery, I c a l l
on Congress t o enact an immediate package o f jobs investments of over
$30 b i l l i o n t o put people t o work now, t o create a h a l f a m i l l i o n
jobs. Jobs t o r e b u i l d our highways and a i r p o r t s , t o renovate
housing, t o b r i n g new l i f e t o r u r a l communities and spread hope and
o p p o r t u n i t y among our nation's youth. E s p e c i a l l y , I want t o
emphasize a f t e r the events of l a s t year i n Los Angeles and the
countless s t o r i e s of despair i n our c i t i e s and i n our poor r u r a l
communities, t h i s proposal w i l l create almost 700,000 new summer jobs
f o r d i s p l a c e d , unemployed young people alone t h i s summer.
(Applause.)
And t o n i g h t , I i n v i t e America's business leaders t o j o i n
us i n t h i s e f f o r t so t h a t together we can provide over one m i l l i o n
MR
OE
�- 2 -
And our p o l i t i c a l system so often has seemed paralyzed
by special interest groups, by partisan bickering and by the sheer
complexity of our problems. I believe we can do better because we
remain the greatest nation on Earth, the world's strongest economy,
the world's only military superpower. I f we have the vision, the
w i l l and the heart to make the changes we must, we can s t i l l enter
the 21st century with p o s s i b i l i t i e s our parents could not even have
imagined, and enter i t having secured the American Dream for
ourselves and for future generations. (Applause.)
I well remember 12 years ago President Reagan stood at
t h i s very podium and told you and the American people that i f our
national debt were stacked in thousand-dollar b i l l s the stack would
reach 67 miles into space. Well, today that stack would reach 267
miles. I t e l l you t h i s not to assign blame for t h i s problem. There
i s plenty of blame to go around i n both branches of the government
and both parties. The time has come for the blame to end.
(Applause.) I did not seek t h i s office to place blame. I come here
tonight to accept responsibility and I want you to accept
responsibility with me. And i f we do right by t h i s country, I do not
care who gets the credit for i t .
(Applause.)
The plan I offer you has four fundamental components.
F i r s t , i t s h i f t s our emphasis i n public and private spending from
consumption to investment — i n i t i a l l y by jump-starting the economy
in the short-term, and investing i n our people, t h e i r jobs, and their
incomes over the long run. Second, i t changes the rhetoric of the
past into the actions of the present by honoring work and families in
every part of our public decision-making. Third, i t substantially
reduces the federal d e f i c i t honestly and credibly by using i n the
beginning the most conservative estimates of government revenues,
not, as the Executive Branch has done so often i n the past, using the
most optimistic ones.
(Applause.)
And f i n a l l y , i t seeks to earn the t r u s t of the American
people by paying for these plans f i r s t with cuts i n government waste
and efficiency; second, with cuts, not gimmicks, i n government
spending; and by fairness for a change i n the way additional burdens
are borne. (Applause.)
Tonight I want to t a l k with you about what government
can do because I believe government must do more. But l e t me say
f i r s t that the r e a l engine of economic growth i n t h i s country i s the
private sector. (Applause.) And second, that each of us must be an
engine of growth and change. The truth i s that as government creates
more opportunity i n t h i s new and different time, we must also demand
more responsibility in turn.
jobs
have
sure
that
Our immediate p r i o r i t y must be to create jobs, create
now.
Some people say, well, we're i n a recovery and we don't
to do that. Well, we a l l hope we're i n a recovery, but we're
not creating new jobs. And there's no recovery worth i t s s a l t
doesn't put the American people back to work. (Applause.)
To create jobs and guarantee a strong recovery, I c a l l
on Congress to enact an immediate package of jobs investments of over
$30 b i l l i o n to put people to work now, to create a half a million
jobs. Jobs to rebuild our highways and airports, to renovate
housing, to bring new l i f e to r u r a l communities and spread hope and
opportunity among our nation's youth. Especially, I want to
emphasize after the events of l a s t year i n Los Angeles and the
countless stories of despair i n our c i t i e s and i n our poor r u r a l
communities, t h i s proposal w i l l create almost 700,000 new summer jobs
for displaced, unemployed young people alone t h i s summer.
(Applause.)
And tonight, I invite America's business leaders to join
us i n t h i s effort so that together we can provide over one million
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�e
S
,cop'»
THE WHITE HOUSE
Office of the Press Secre ..^y
For Immediate Release
February 17, 1993
ADDRESS BY THE PRESIDENT
TO THE JOINT SESSION OF CONGRESS
The Capitol
9:10 P.M. EST
THE PRESIDENT: Mr. President, Mr. Speaker, members of
the House and the Senate, distinguished Americans here as v i s i t o r s i n
t h i s Chamber, as am I . I t i s nice to have a fresh excuse for giving
a long speech. (Laughter.)
When Presidents speak to Congress and the nation from
t h i s podium, t y p i c a l l y , they comment on the f u l l range and challenges
and opportunities that face the United States. But t h i s i s not an
ordinary time, and for a l l the many tasks that require our attention,
I believe tonight one c a l l s on us to focus, to unite, and to act.
And that i s our economy. For more than anything else, our task
tonight as Americans i s to make our economy thrive again.
Let me begin by saying that i t has been too long, at
l e a s t three decades, since a President has come and challenged
Americans to j o i n him on a great national journey, not merely to
consume the bounty of today, but to invest for a much greater one
tomorrow. (Applause.)
Like individuals, nations must ultimately decide how
they wish to conduct themselves, how they wish to be thought of by
those with whom they l i v e , and later, how they wish to be judged by
history. Like every individual, man and woman, nations must decide
whether they are prepared to r i s e to the occasions history presents
them.
W have always been a people of youthful energy and
e
daring s p i r i t . And at t h i s h i s t o r i c moment, as communism has fallen,
as freedom i s spreading around the world, as a global economy i s
taking shape before our eyes, Americans have called for change. And
now i t i s up to those of us i n t h i s room to deliver for them.
Our nation needs a new direction. Tonight I present to
you a comprehensive plan to set our nation on that new course. I
believe we w i l l find our new direction i n the basic old values that
brought us here over the l a s t two centuries — a commitment to
opportunity, to individual responsibility, to community, to work, to
family and to f a i t h . W must now break the habits of both p o l i t i c a l
e
parties and say t h e i r can be no more something for nothing and admit
frankly that we are a l l in t h i s together. (Applause.)
The conditions which brought us as a nation to t h i s
point are well-known: Two decades of low productivity, growth, and
stagnant wages; persistent unemployment and underemployment; years of
huge government d e f i c i t s and declining investment i n our future;
exploding health care costs and lack of coverage for millions of
Americans; legions of poor children; education and job training
opportunities inadequate to the demands of t h i s tough, global
economy. For too long we have drifted without a strong sense of
purpose or responsibility or community.
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�- 3-
summer jobs i n c i t i e s and poor r u r a l areas f o r our young people.
(Applause.)
Second, our p l a n looks beyond today's business cycle
because our a s p i r a t i o n s extend i n t o the next century. The heart of
t h i s plan deals w i t h the long-term. I t i s an investment program
designed t o increase p u b l i c and p r i v a t e investment i n areas c r i t i c a l
t o our economic f u t u r e . And i t has a d e f i c i t r e d u c t i o n program t h a t
w i l l increase t h e savings a v a i l a b l e f o r the p r i v a t e sector t o i n v e s t ,
w i l l lower i n t e r e s t r a t e s , w i l l decrease the percentage o f t h e
f e d e r a l budget claimed by i n t e r e s t payments, and decrease the r i s k of
f i n a n c i a l market d i s r u p t i o n s t h a t could adversely a f f e c t our economy.
Over the long run, a l l t h i s w i l l b r i n g us a higher r a t e
of economic growth, improved p r o d u c t i v i t y , more h i g h - q u a l i t y jobs,
and an improved economic competitive p o s i t i o n i n the world. I n order
t o accomplish both increased investment and d e f i c i t reduction,
something no American government has ever been c a l l e d upon t o do a t
the same time before, spending must be cut and taxes must raised.
The spending cuts I recommend were c a r e f u l l y thought
through i n a way t o minimize any adverse economic impact, t o capture
the peace dividend f o r investment purposes, and t o switch the balance
i n the budget from consumption t o more investment. The t a x increases
and the spending cuts were both designed t o assure t h a t the cost of
t h i s h i s t o r i c program t o face and deal w i t h our problems w i l l be
borne by those who could r e a d i l y a f f o r d i t the most. Our plan i s
designed, furthermore, and perhaps i n some ways most i m p o r t a n t l y , t o
improve the h e a l t h o f American business through lower i n t e r e s t rates,
more i n c e n t i v e s t o i n v e s t , and b e t t e r t r a i n e d workers.
Because small business has created such a high
percentage of a l l the new j o b s i n our nation over the l a s t 10 or 15
years, our plan includes the boldest targeted i n c e n t i v e s f o r small
business i n h i s t o r y .
(Applause.) We propose a permanent investment
tax c r e d i t f o r the smallest firms i n t h i s country, w i t h revenues o f
under $5 m i l l i o n .
(Applause.) That's about 90 percent o f the firms
i n America employing about 4 0 percent of the work f o r c e , but c r e a t i n g
a b i g m a j o r i t y of the net new jobs f o r more than a decade.
And we propose new rewards f o r entrepreneurs who take
new r i s k s . We propose t o give small business access t o a l l t h e new
technologies o f our time. And we propose t o a t t a c k t h i s c r e d i t
crunch which has denied small business the c r e d i t they need t o
f l o u r i s h and prosper. (Applause.)
With a new network o f community development banks and $1
b i l l i o n t o make the dream o f e n t e r p r i s e zones r e a l , we propose t o
b r i n g new hope and new jobs t o s t o r e f r o n t s and f a c t o r i e s from South
Boston t o South Texas t o South Central Los Angeles.
(Applause.)
This plan invests i n our roads, our bridges, our t r a n s i t systems, i n
high-speed railways and high-tech information systems. And i t
provides the most ambitious environmental cleanup i n partnership w i t h
s t a t e and l o c a l government o f our time, t o put people t o work and t o
preserve the environment f o r our f u t u r e .
(Applause.)
Standing as we are on the edge o f a new century, we know
t h a t economic growth depends as never before on opening up new
markets overseas and expanding the volume of w o r l d trade. And so, we
w i l l i n s i s t on f a i r trade r u l e s i n i n t e r n a t i o n a l markets as a p a r t o f
a n a t i o n a l economic s t r a t e g y t o expand trade, i n c l u d i n g t h e
successful completion of t h e l a t e s t round o f w o r l d trade t a l k s and
the successful completion o f a North American Free Trade Agreement,
w i t h appropriate safeguards f o r our workers and f o r the environment.
(Applause.)
At the same time — and I say t h i s t o you i n both
p a r t i e s and across America t o n i g h t , a l l the people who are l i s t e n i n g
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�- 4 -
— i t i s not enough t o pass a budget or even t o have a t r a d e
agreement. The world i s changing so f a s t t h a t we must have
aggressive, targeted attempts t o create the high-wage jobs of the
f u t u r e . That's what a l l our competitors are doing. We must give
s p e c i a l a t t e n t i o n t o those c r i t i c a l i n d u s t r i e s t h a t are going t o
explode i n the 21st century, but t h a t are i n t r o u b l e i n America today
l i k e aerospace.
(Applause.) We must provide special assistance t o
areas and t o workers displaced by cuts i n the defense budget and by
other unavoidable economic d i s l o c a t i o n s .
(Applause.)
And, again, I w i l l say we must do t h i s together. I
pledge t o you t h a t I w i l l do my best t o see t h a t business and labor
and government work together f o r a change.
(Applause.)
But a l l of our e f f o r t s t o strengthen the economy w i l l
f a i l — l e t me say t h i s again; I f e e l so s t r o n g l y about t h i s — a l l
of our e f f o r t s t o strengthen the economy w i l l f a i l unless we also
take t h i s year — not next year, not f i v e years from now, but t h i s
year — bold steps t o reform our health care system.
(Applause.)
I n 1992, we spent 14 percent of our income on h e a l t h
care, more than 3 0 percent more than any other country i n the world;
and y e t we were the only advanced nation t h a t d i d not provide a basic
package of h e a l t h care b e n e f i t s t o a l l of i t s c i t i z e n s . Unless we
change the present p a t t e r n , 50 percent of the growth i n the d e f i c i t
between now and the year 2 000 w i l l be i n h e a l t h care costs. By the
year 2 000 almost 2 0 percent of our income w i l l be i n h e a l t h care.
Our f a m i l i e s w i l l never be secure, our businesses w i l l never be
strong and our government w i l l never again be f u l l y solvent u n t i l we
t a c k l e the h e a l t h care c r i s i s . We must do i t t h i s year.
(Applause.)
The combination of the r i s i n g cost of care and the lack
of care and t h e fear of l o s i n g care are endangering the s e c u r i t y and
the v e r y l i v e s of m i l l i o n s of our people. And they are weakening our
economy every day. Reducing h e a l t h care costs can l i b e r a t e l i t e r a l l y
hundreds of b i l l i o n s of d o l l a r s f o r new investment i n growth and
jobs. B r i n g i n g health costs i n l i n e w i t h i n f l a t i o n would do more f o r
the p r i v a t e sector i n t h i s country than any tax cut we could give and
any spending program we could promote. Reforming h e a l t h care over
the l o n g run i s c r i t i c a l l y e s s e n t i a l t o reducing not only our d e f i c i t
but t o expanding investment i n America.
(Applause.)
Later t h i s s p r i n g , a f t e r the F i r s t Lady and the many
good people who are h e l p i n g her a l l across the country complete t h e i r
work, I w i l l d e l i v e r t o Congress a comprehensive plan f o r h e a l t h care
reform t h a t f i n a l l y w i l l b r i n g costs under c o n t r o l and provide
s e c u r i t y t o a l l of our f a m i l i e s , so t h a t no one w i l l be denied the
coverage they need, but so t h a t our economic f u t u r e w i l l not be
compromised e i t h e r . (Applause.) We'll have t o root out fraud and
overcharges, and make sure t h a t paperwork no longer chokes your
doctor. We 11 have t o maintain the highest American standards and
the r i g h t t o choose i n a system t h a t i s the world's f i n e s t f o r a l l
those who can access i t . (Applause.)
1
But f i r s t we must make choices. We must choose t o give
the American people the q u a l i t y they demand and deserve w i t h a system
t h a t w i l l not bankrupt the country or f u r t h e r d r i v e more Americans
i n t o agony.
Let me f u r t h e r say t h a t I want t o work w i t h a l l of you
on t h i s . I r e a l i z e t h i s i s a complicated issue. But we must address
i t . And I b e l i e v e i f t h e r e i s any chance t h a t Republicans and
Democrats who disagree on taxes and spending or anything else could
agree on one t h i n g , surely we can a l l look a t these numbers and go
home and t e l l our people the t r u t h . We cannot continue these
spending p a t t e r n s i n p u b l i c or p r i v a t e d o l l a r s f o r h e a l t h care f o r
less and less and less every year. We can do b e t t e r . And I —
(applause).
MR
OE
�- 4 -
— i t i s not enough to pass a budget or even to have a trade
agreement. The world i s changing so fast that we must have
aggressive, targeted attempts to create the high-wage jobs of the
future. That's what a l l our competitors are doing. We must give
special attention to those c r i t i c a l industries that are going to
explode i n the 21st century, but that are i n trouble i n America today
l i k e aerospace. (Applause.) We must provide special assistance to
areas and to workers displaced by cuts in the defense budget and by
other unavoidable economic dislocations.
(Applause.)
And, again, I w i l l say we must do t h i s together. I
pledge to you that I w i l l do my best to see that business and labor
and government work together for a change. (Applause.)
But a l l of our efforts to strengthen the economy w i l l
f a i l — l e t me say t h i s again; I feel so strongly about t h i s — a l l
of our efforts to strengthen the economy w i l l f a i l unless we also
take t h i s year — not next year, not five years from now, but t h i s
year — bold steps to reform our health care system.
(Applause.)
In 1992, we spent 14 percent of our income on health
care, more than 30 percent more than any other country i n the world;
and yet we were the only advanced nation that did not provide a basic
package of health care benefits to a l l of i t s c i t i z e n s . Unless we
change the present pattern, 50 percent of the growth i n the d e f i c i t
between now and the year 2000 w i l l be i n health care costs. By the
year 2000 almost 20 percent of our income w i l l be i n health care.
Our families w i l l never be secure, our businesses w i l l never be
strong and our government w i l l never again be f u l l y solvent u n t i l we
tackle the health care c r i s i s . We must do i t t h i s year. (Applause.)
The combination of the r i s i n g cost of care and the lack
of care and the fear of losing care are endangering the security and
the very l i v e s of millions of our people. And they are weakening our
economy every day. Reducing health care costs can l i b e r a t e l i t e r a l l y
hundreds of b i l l i o n s of dollars for new investment i n growth and
jobs. Bringing health costs in line with i n f l a t i o n would do more for
the private sector i n t h i s country than any tax cut we could give and
any spending program we could promote. Reforming health care over
the long run i s c r i t i c a l l y essential to reducing not only our d e f i c i t
but to expanding investment in America.
(Applause.)
Later t h i s spring, after the F i r s t Lady and the many
good people who are helping her a l l across the country complete their
work, I w i l l deliver to Congress a comprehensive plan for health care
reform that f i n a l l y w i l l bring costs under control and provide
security to a l l of our families, so that no one w i l l be denied the
coverage they need, but so that our economic future w i l l not be
compromised either. (Applause.) We'll have to root out fraud and
overcharges, and make sure that paperwork no longer chokes your
doctor. We'll have to maintain the highest American standards and
the right to choose i n a system that i s the world's f i n e s t for a l l
those who can access i t .
(Applause.)
But f i r s t we must make choices. We must choose to give
the American people the quality they demand and deserve with a system
that w i l l not bankrupt the country or further drive more Americans
into agony.
Let me further say that I want to work with a l l of you
on t h i s . I r e a l i z e t h i s i s a complicated issue. But we must address
i t . And I believe i f there i s any chance that Republicans and
Democrats who disagree on taxes and spending or anything else could
agree on one thing, surely we can a l l look at these numbers and go
home and t e l l our people the truth. We cannot continue these
spending patterns i n public or private dollars for health care for
l e s s and l e s s and l e s s every year. We can do better. And I —
(applause).
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�- 3 -
summer jobs i n c i t i e s and poor rural areas for our young people.
(Applause.)
Second, our plan looks beyond today's business cycle
because our aspirations extend into the next century. The heart of
t h i s plan deals with the long-term. I t i s an investment program
designed to increase public and private investment i n areas c r i t i c a l
to our economic future. And i t has a d e f i c i t reduction program that
w i l l increase the savings available for the private sector to invest,
w i l l lower interest rates, w i l l decrease the percentage of the
federal budget claimed by interest payments, and decrease the r i s k of
financial market disruptions that could adversely affect our economy.
Over the long run, a l l t h i s w i l l bring us a higher rate
of economic growth, improved productivity, more high-quality jobs,
and an improved economic competitive position i n the world. In order
to accomplish both increased investment and d e f i c i t reduction,
something no American government has ever been called upon to do at
the same time before, spending must be cut and taxes must raised.
The spending cuts I recommend were carefully thought
through i n a way to minimize any adverse economic impact, to capture
the peace dividend for investment purposes, and to switch the balance
in the budget from consumption to more investment. The tax increases
and the spending cuts were both designed to assure that the cost of
t h i s h i s t o r i c program to face and deal with our problems w i l l be
borne by those who could readily afford i t the most. Our plan i s
designed, furthermore, and perhaps i n some ways most importantly, to
improve the health of American business through lower interest rates,
more incentives to invest, and better trained workers.
Because small business has created such a high
percentage of a l l the new jobs in our nation over the l a s t 10 or 15
years, our plan includes the boldest targeted incentives for small
business i n history. (Applause.) We propose a permanent investment
tax credit for the smallest firms i n t h i s country, with revenues of
under $5 million. (Applause.) That's about 90 percent of the firms
in America employing about 4 0 percent of the work force, but creating
a big majority of the net new jobs for more than a decade.
And we propose new rewards for entrepreneurs who take
new r i s k s . We propose to give small business access to a l l the new
technologies of our time. And we propose to attack t h i s credit
crunch which has denied small business the credit they need to
flourish and prosper. (Applause.)
With a new network of community development banks and $1
b i l l i o n to make the dream of enterprise zones r e a l , we propose to
bring new hope and new jobs to storefronts and factories from South
Boston to South Texas to South Central Los Angeles.
(Applause.)
This plan invests i n our roads, our bridges, our t r a n s i t systems, in
high-speed railways and high-tech information systems. And i t
provides the most ambitious environmental cleanup i n partnership with
state and l o c a l government of our time, to put people to work and to
preserve the environment for our future. (Applause.)
Standing as we are on the edge of a new century, we know
that economic growth depends as never before on opening up new
markets overseas and expanding the volume of world trade. And so, we
w i l l i n s i s t on f a i r trade rules i n international markets as a part of
a national economic strategy to expand trade, including the
successful completion of the l a t e s t round of world trade t a l k s and
the successful completion of a North American Free Trade Agreement,
with appropriate safeguards for our workers and for the environment.
(Applause.)
At the same time — and I say t h i s to you i n both
parties and across America tonight, a l l the people who are listening
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�- 5 -
Perhaps the most fundamental change the new d i r e c t i o n I
propose o f f e r s i s i t s focus on the f u t u r e and i t s investment, which I
seek i n our c h i l d r e n . Each day we delay r e a l l y making a commitment
t o our c h i l d r e n c a r r i e s a dear cost. Half of the two-year-olds i n
t h i s country today don't receive the immunizations they need against
deadly diseases. Our plan w i l l provide them f o r every e l i g i b l e
c h i l d . And we know now t h a t we w i l l save $10 l a t e r f o r every $1 we
spend by e l i m i n a t i n g preventable childhood diseases. That's a good
investment no matter how you measure i t . (Applause.)
I recommend t h a t the Women, I n f a n t s and Children's
n u t r i t i o n program be expanded so t h a t every expectant mother who
needs the help gets i t . (Applause.) We a l l know t h a t Head S t a r t ,
a program t h a t prepares c h i l d r e n f o r school i s a success s t o r y .
We
a l l know t h a t i t saves money, but today i t j u s t reaches barely over
o n e - t h i r d of a l l the e l i g i b l e c h i l d r e n . Under t h i s p l a n , every
e l i g i b l e c h i l d w i l l be able t o get a head s t a r t .
(Applause.)
This i s not j u s t the r i g h t t h i n g t o do, i t i s the smart
t h i n g t o do. For every d o l l a r we i n v e s t today w e ' l l save $3
tomorrow. We have t o s t a r t t h i n k i n g about tomorrow. I've heard t h a t
somewhere before. (Laughter.)
We have t o ask more i n our schools of our students, our
teachers, our p r i n c i p a l s , our parents. Yes, we must g i v e them the
resources they need t o meet high standards, but we must also use the
a u t h o r i t y and the i n f l u e n c e and the funding of the education
department t o promote s t r a t e g i e s t h a t r e a l l y work i n l e a r n i n g . Money
alone i s not enough. We have t o do what r e a l l y works t o increase
l e a r n i n g i n our schools.
(Applause.)
We have t o recognize t h a t a l l of our high school
graduates need some f u r t h e r education i n order t o be competitive i n
t h i s g l o b a l economy. So we have t o e s t a b l i s h a p a r t n e r s h i p between
businesses and education and the government f o r apprenticeship
programs i n every s t a t e i n t h i s country t o give our people the s k i l l s
they need. (Applause.)
L i f e l o n g l e a r n i n g must b e n e f i t not j u s t
young high school graduates, but workers, too, throughout t h e i r
career.
The average 18-year-old today w i l l change jobs seven
times i n a l i f e t i m e . We have done a l o t i n t h i s country on worker
t r a i n i n g i n the l a s t few years, but the system i s too f r a c t u r e d .
We
must develop a u n i f i e d , s i m p l i f i e d , sensible, streamlined worker
t r a i n i n g program so t h a t workers receive the t r a i n i n g they need
regardless of why they l o s t t h e i r jobs or whether they simply need t o
l e a r n something new t o keep them. We have got t o do b e t t e r on t h i s .
(Applause.)
And, f i n a l l y , I propose a program t h a t got a great
response from the American people a l l across t h i s country l a s t year:
A program of n a t i o n a l s e r v i c e t o make c o l l e g e loans a v a i l a b l e t o a l l
Americans and t o challenge them at the same time t o give something
back t o t h e i r country as teachers or p o l i c e o f f i c e r s or community
s e r v i c e workers — t o give them the o p t i o n t o pay the loans back, but
at t a x time, so they can't beat the b i l l , but t o encourage them
instead t o pay i t back by making t h e i r country stronger and making
t h e i r country b e t t e r and g i v i n g us the b e n e f i t of t h e i r knowledge.
(Applause.)
A generation ago when President Kennedy proposed and the
United States Congress embraced the Peace Corps, i t defined the
character of a whole generation of American committed t o serving
people around the world. I n t h i s n a t i o n a l service program, we w i l l
provide more than twice as many s l o t s f o r people before they go t o
c o l l e g e t o be i n n a t i o n a l s e r v i c e than ever served i n the Peace
Corps. This program could do f o r t h i s generation of members of
MR
OE
�- 6-
Congress what the Land Grant College Act d i d and what the GI B i l l d i d
f o r former congressmen. I n the f u t u r e , h i s t o r i a n s who got t h e i r
education through the n a t i o n a l service loan w i l l look back on you and
thank you f o r g i v i n g America a new lease on l i f e i f you meet t h i s
challenge.
(Applause.)
I f we b e l i e v e i n jobs and we b e l i e v e i n l e a r n i n g , we
must b e l i e v e i n rewarding work. I f we b e l i e v e i n r e s t o r i n g t h e
values t h a t make America s p e c i a l , we must b e l i e v e t h a t there i s
d i g n i t y i n a l l work, and there must be d i g n i t y f o r a l l workers.
To those who care f o r our s i c k , who tend our c h i l d r e n ,
who do our most d i f f i c u l t and t i r i n g jobs, t h e new d i r e c t i o n I
propose w i l l make t h i s solemn, simple commitment: By expanding the
refundable earned income tax c r e d i t , we w i l l make h i s t o r y . We w i l l
reward the work o f m i l l i o n s of working poor Americans by r e a l i z i n g
the p r i n c i p l e t h a t i f you work 40 hours a week and you've got a c h i l d
i n the house, you w i l l no longer be i n poverty.
(Applause.)
Later t h i s year, we w i l l o f f e r a plan t o end welfare as
we know i t . I have worked on t h i s issue f o r the b e t t e r p a r t o f a
decade. And I know from personal conversations w i t h many people t h a t
no one — no one wants t o change the welfare system as badly as those
who are trapped i n i t .
(Applause.)
I want t o o f f e r the people on w e l f a r e the education, the
t r a i n i n g , t h e c h i l d care, the h e a l t h care they need t o get back on
t h e i r f e e t , but say, a f t e r two years, they must get back t o work,
too, i n p r i v a t e business i f possible, i n p u b l i c service i f necessary.
We have t o end welfare as a way o f l i f e and make i t a path t o
independence and d i g n i t y . (Applause.)
Our next great goal should be t o strengthen our
f a m i l i e s . I compliment the Congress f o r passing the Family and
Medical Leave Act as a good f i r s t step. (Applause.)
But i t i s time
t o do more. This plan w i l l give t h i s country the toughest c h i l d
support enforcement system i t has ever had. I t i s time t o demand
t h a t people take r e s p o n s i b i l i t y f o r the c h i l d r e n they b r i n g i n t h i s
world.
(Applause.)
And I ask you t o help t o p r o t e c t our f a m i l i e s against
the v i o l e n t crime which t e r r o r i z e s our people and which t e a r s our
communities apart. We must pass a tough crime b i l l .
(Applause.) I
support not only the b i l l which d i d n ' t q u i t e make i t t o t h e
President's desk l a s t year, but also an i n i t i a t i v e t o put 100,000
more p o l i c e o f f i c e r s on the s t r e e t — (applause) — t o provide
bootcamps f o r f i r s t - t i m e nonviolent offenders f o r more space f o r t h e
hardened c r i m i n a l s i n j a i l — (applause) — and I support an
i n i t i a t i v e t o do what we can t o keep guns out o f the hands o f
criminals.
(Applause.)
Let me say t h i s . I w i l l make you t h i s bargain:
w i l l pass t h e Brady b i l l , I ' l l sure sign i t .
(Applause.)
I f you
Let me say now, we should move t o the harder p a r t s .
(Applause.)
I t h i n k i t i s c l e a r t o every American, i n c l u d i n g every
member o f Congress o f both p a r t i e s , t h a t the confidence o f the people
who pay our b i l l s i n our i n s t i t u t i o n s i n Washington i s not high. We
must r e s t o r e i t . We must begin again t o make government work f o r
o r d i n a r y taxpayers, not simply f o r organized i n t e r e s t groups. And
t h a t beginning must s t a r t w i t h r e a l p o l i t i c a l reform.
(Applause.)
I am asking the United States Congress t o pass a r e a l
campaign finance reform b i l l t h i s year. (Applause.)
I ask you t o
increase the p a r t i c i p a t i o n o f the American people by passing t h e
motor v o t e r b i l l promptly. (Applause.)
I ask you t o deal w i t h the
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�- 6-
Congress what the Land Grant College Act did and what the GI B i l l did
for former congressmen. In the future, historians who got t h e i r
education through the national service loan w i l l look back on you and
thank you for giving America a new lease on l i f e i f you meet t h i s
challenge. (Applause.)
I f we believe i n jobs and we believe i n learning, we
must believe i n rewarding work. I f we believe i n restoring the
values that make America special, we must believe that there i s
dignity i n a l l work, and there must be dignity for a l l workers.
To those who care for our sick, who tend our children,
who do our most d i f f i c u l t and t i r i n g jobs, the new direction I
propose w i l l make t h i s solemn, simple commitment: By expanding the
refundable earned income tax credit, we w i l l make history. We w i l l
reward the work of millions of working poor Americans by r e a l i z i n g
the principle that i f you work 40 hours a week and you've got a child
in the house, you w i l l no longer be i n poverty. (Applause.)
Later t h i s year, we w i l l offer a plan to end welfare as
we know i t . I have worked on t h i s issue for the better part of a
decade. And I know from personal conversations with many people that
no one — no one wants to change the welfare system as badly as those
who are trapped i n i t . (Applause.)
I want to offer the people on welfare the education, the
training, the child care, the health care they need to get back on
t h e i r feet, but say, after two years, they must get back to work,
too, i n private business i f possible, i n public service i f necessary.
We have to end welfare as a way of l i f e and make i t a path to
independence and dignity. (Applause.)
Our next great goal should be to strengthen our
families. I compliment the Congress for passing the Family and
Medical Leave Act as a good f i r s t step. (Applause.) But i t i s time
to do more. This plan w i l l give t h i s country the toughest c h i l d
support enforcement system i t has ever had. I t i s time to demand
that people take responsibility for the children they bring i n t h i s
world.
(Applause.)
And I ask you to help to protect our families against
the violent crime which terrorizes our people and which tears our
communities apart. We must pass a tough crime b i l l .
(Applause.) I
support not only the b i l l which didn't quite make i t to the
President's desk l a s t year, but also an i n i t i a t i v e to put 100,000
more police o f f i c e r s on the street — (applause) — to provide
bootcamps for first-time nonviolent offenders for more space for the
hardened criminals i n j a i l — (applause) — and I support an
i n i t i a t i v e to do what we can to keep guns out of the hands of
criminals. (Applause.)
(Applause.)
Let me say t h i s . I w i l l make you t h i s bargain: I f you
Let me
a Brady b i l l , I ' l l sure sign i t .
(Applause.)
w i l l pass the Brady
Let me say now, we should move to the harder parts.
(Applause.)
I think i t i s clear to every American, including every
member of Congress of both parties, that the confidence of the people
who pay our b i l l s i n our institutions i n Washington i s not high. We
must restore i t . We must begin again to make government work for
ordinary taxpayers, not simply for organized interest groups. And
that beginning must s t a r t with real p o l i t i c a l reform.
(Applause.)
I am asking the United States Congress to pass a real
campaign finance reform b i l l t h i s year. (Applause.) I ask you to
increase the participation of the American people by passing the
motor voter b i l l promptly.
(Applause.) I ask you to deal with the
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�- 5-
Perhaps the most fundamental change the new direction I
propose offers i s i t s focus on the future and i t s investment, which I
seek i n our children. Each day we delay r e a l l y making a commitment
to our children c a r r i e s a dear cost. Half of the two-year-olds in
t h i s country today don't receive the immunizations they need against
deadly diseases. Our plan w i l l provide them for every e l i g i b l e
c h i l d . And we know now that we w i l l save $10 l a t e r for every $1 we
spend by eliminating preventable childhood diseases. That's a good
investment no matter how you measure i t .
(Applause.)
I recommend that the Women, Infants and Children's
nutrition program be expanded so that every expectant mother who
needs the help gets i t .
(Applause.) W a l l know that Head Start,
e
a program that prepares children for school i s a success story. W
e
a l l know that i t saves money, but today i t j u s t reaches barely over
one-third of a l l the e l i g i b l e children. Under t h i s plan, every
e l i g i b l e child w i l l be able to get a head s t a r t .
(Applause.)
This i s not j u s t the right thing to do, i t i s the smart
thing to do. For every dollar we invest today we'll save $3
tomorrow. W have to s t a r t thinking about tomorrow. I've heard that
e
somewhere before. (Laughter.)
W have to ask more i n our schools of our students, our
e
teachers, our principals, our parents. Yes, we must give them the
resources they need to meet high standards, but we must also use the
authority and the influence and the funding of the education
department to promote strategies that r e a l l y work i n learning. Money
alone i s not enough. W have to do what r e a l l y works to increase
e
learning i n our schools. (Applause.)
W have to recognize that a l l of our high school
e
graduates need some further education i n order to be competitive in
t h i s global economy. So we have to establish a partnership between
businesses and education and the government for apprenticeship
programs i n every state i n t h i s country to give our people the s k i l l s
they need. (Applause.) Lifelong learning must benefit not j u s t
young high school graduates, but workers, too, throughout t h e i r
career.
The average 18-year-old today w i l l change jobs seven
times i n a lifetime. W have done a l o t i n t h i s country on worker
e
training i n the l a s t few years, but the system i s too fractured. W
e
must develop a unified, simplified, sensible, streamlined worker
training program so that workers receive the training they need
regardless of why they lost t h e i r jobs or whether they simply need to
learn something new to keep them. W have got to do better on t h i s .
e
(Applause.)
And, f i n a l l y , I propose a program that got a great
response from the American people a l l across t h i s country l a s t year:
A program of national service to make college loans available to a l l
Americans and to challenge them at the same time to give something
back to t h e i r country as teachers or police o f f i c e r s or community
service workers — to give them the option to pay the loans back, but
at tax time, so they can't beat the b i l l , but to encourage them
instead to pay i t back by making t h e i r country stronger and making
t h e i r country better and giving us the benefit of t h e i r knowledge.
(Applause.)
A generation ago when President Kennedy proposed and the
United States Congress embraced the Peace Corps, i t defined the
character of a whole generation of American committed to serving
people around the world. In t h i s national service program, we w i l l
provide more than twice as many s l o t s for people before they go to
college to be i n national service than ever served i n the Peace
Corps. This program could do for t h i s generation of members of
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�- 7 -
undue i n f l u e n c e of s p e c i a l i n t e r e s t by passing a b i l l t o end the t a x
deduction f o r lobbying and t o act q u i c k l y t o r e q u i r e a l l the people
who lobby you t o r e g i s t e r as l o b b y i s t s by passing the lobbying
registration b i l l .
(Applause.)
Believe me, they were cheering t h a t l a s t s e c t i o n a t
home. I b e l i e v e lobby reform and campaign finance reform are a sure
path t o increased p o p u l a r i t y f o r Republicans and Democrats a l i k e
because i t says t o the v o t e r s back home, "This i s your House. This
i s your Senate. We're your h i r e d hands. And every penny we draw i s
your money."
(Applause.)
Next, t o r e v o l u t i o n i z e government we have t o ensure t h a t
we l i v e w i t h i n our means, and t h a t should s t a r t a t the top and w i t h
the White House. I n the l a s t few days I have announced a cut i n the
White House s t a f f of 25 percent, saving approximately $10 m i l l i o n . I
have ordered a d m i n i s t r a t i v e cuts i n budgets of agencies and
departments.
I have cut the federal bureaucracy — or w i l l over the
next f o u r years — by approximately 100,000 p o s i t i o n s , f o r a combined
savings of $9 b i l l i o n .
(Applause.) I t i s time f o r government t o
demonstrate i n the c o n d i t i o n we're i n t h a t we can be as f r u g a l as any
household i n America.
And t h a t ' s why I also want t o congratulate the Congress.
I n o t i c e the announcement of the leadership today t h a t Congress i s
t a k i n g s i m i l a r steps t o cut i t s costs. I t h i n k t h a t i s important. I
t h i n k i t w i l l send a very c l e a r s i g n a l t o the American people.
(Applause.)
But i f we r e a l l y want t o cut spending we're going t o
have t o do more, and some of i t w i l l be d i f f i c u l t . Tonight I c a l l
f o r an across-the-board freeze i n f e d e r a l government s a l a r i e s f o r one
year.
(Applause.) And t h e r e a f t e r , during t h i s four-year p e r i o d , I
recommend t h a t s a l a r i e s r i s e at one p o i n t lower than the cost of
l i v i n g allowance normally involved i n f e d e r a l pay increases.
(Applause.)
Next, I recommend t h a t we make 150 s p e c i f i c budget cuts,
as you know, and t h a t a l l those who say we should cut more be as
s p e c i f i c as I have been.
(Applause.)
F i n a l l y , l e t me say t o my f r i e n d s on both sides of the
a i s l e , i t i s not enough simply t o cut government, we have t o r e t h i n k
the whole way i t works. When I became President I was amazed a t j u s t
the way the White House worked i n ways t h a t added l o t s of money t o
what taxpayers had t o pay — outmoded ways t h a t d i d n ' t take maximum
advantage of technology and d i d n ' t do t h i n g s t h a t any business would
have done years ago t o save taxpayers' money.
So I want t o b r i n g a new s p i r i t of innovation i n t o every
government department.
I want t o push education reform, as I s a i d ,
not j u s t t o spend more money, but t o r e a l l y improve l e a r n i n g . Some
t h i n g s work and some t h i n g s don't. We ought t o be s u b s i d i z i n g the
t h i n g s t h a t work and discouraging the t h i n g s t h a t don't. I ' d l i k e t o
use t h a t superfund t o clean up p o l l u t i o n f o r a change and not j u s t
pay lawyers.
(Applause.)
I n the aftermath of a l l the d i f f i c u l t i e s w i t h the
savings and loans, we must use federal bank r e g u l a t o r s t o p r o t e c t the
s e c u r i t y and safety of our f i n a n c i a l i n s t i t u t i o n s , but they should
not be used t o continue the c r e d i t crunch and t o stop people from
making sensible loans.
(Applause.)
I'd l i k e f o r us t o not only have welfare refonn but t o
reexamine the whole focus of a l l of our programs t h a t help people t o
s h i f t them from e n t i t l e m e n t programs t o empowerment programs. I n the
end we want people not t o need us anymore. I t h i n k t h a t ' s important.
(Applause.)
MR
OE
�- 8 -
But i n the end we have t o get back t o the d e f i c i t . For
years there's been a l o t of t a l k about i t , b u t very few c r e d i b l e
e f f o r t s t o deal w i t h i t . And now I understand why, having d e a l t w i t h
the r e a l numbers f o r four weeks. (Laughter.) But I b e l i e v e t h i s
plan does — i t t a c k l e s the budget d e f i c i t s e r i o u s l y and over t h e
long-term. I t puts i n place one o f the biggest d e f i c i t reductions
and one o f the biggest changes i n f e d e r a l p r i o r i t i e s from consumption
t o investment i n the h i s t o r y o f t h i s country a t the same time over
the next four years.
Let me say t o a l l the people watching us t o n i g h t , who
w i l l ask me these questions beginning tomorrow as I go around t h e
country and who've asked i t i n the past, we're not c u t t i n g t h e
d e f i c i t j u s t because experts say i t ' s the t h i n g t o do or because i t
has some i n t r i n s i c m e r i t . We have t o cut the d e f i c i t because t h e
more we spend paying o f f the debt, t h e less t a x d o l l a r s we have t o
i n v e s t i n jobs and education and the f u t u r e o f t h i s country. And the
more money we take out o f the pool o f a v a i l a b l e savings, the harder
i t i s f o r people i n the p r i v a t e sector t o borrow money a t a f f o r d a b l e
i n t e r e s t rates f o r a college loan f o r t h e i r c h i l d r e n , f o r a home
mortgage, or t o s t a r t a new business.
That's why we've got t o reduce the debt — because i t i s
crowding out other a c t i v i t i e s t h a t we ought t o be engaged i n and t h a t
the American people ought t o be engaged i n . (Applause.) We cut t h e
d e f i c i t so t h a t our c h i l d r e n w i l l be able t o buy a home, so t h a t our
companies can i n v e s t i n the f u t u r e and i n r e t r a i n i n g t h e i r workers,
so t h a t our government can make the kinds o f investments we need t o
be a stronger and smarter and safer n a t i o n .
I f we don't act now, you and I might not even recognize
t h i s government 10 years from now. I f we j u s t stay w i t h the same
trends o f the l a s t four years, by the end o f t h e decade the d e f i c i t
w i l l be $635 b i l l i o n a year, almost 80 percent o f our gross domestic
product. And paying i n t e r e s t on t h a t debt w i l l be the c o s t l i e s t
government program o f a l l . We'll s t i l l be the world's l a r g e s t
debtor. And when members of Congress come here, t h e y ' l l be devoting
over 2 0 cents on the d o l l a r t o i n t e r e s t payments, more than h a l f o f
the budget t o h e a l t h care and t o other e n t i t l e m e n t s . And y o u ' l l come
here and d e l i b e r a t e and argue over s i x or seven cents on the d o l l a r ,
no matter what America's problems are.
We w i l l not be able t o have the independence we need t o
c h a r t t h e f u t u r e t h a t we must. And w e ' l l be t e r r i b l y dependent on
f o r e i g n funds f o r a large p o r t i o n o f our investment.
This budget plan by c o n t r a s t w i l l , by 1997, c u t $140
b i l l i o n i n t h a t year alone from the d e f i c i t . A r e a l spending c u t , a
r e a l revenue increase, a r e a l d e f i c i t r e d u c t i o n , using t h e
independent numbers of the Congressional Budget O f f i c e .
(Laughter.)
Well, you can laugh, my f e l l o w Republicans, b u t I ' l l p o i n t out t h a t
the Congressional Budget O f f i c e was normally more conservative i n
what was going t o happen and c l o s e r t o r i g h t than previous Presidents
have been.
(Applause.)
I d i d t h i s so t h a t we could argue about p r i o r i t i e s w i t h
the same set o f numbers. I d i d t h i s so t h a t no one could say I was
e s t i m a t i n g my way out o f t h i s d i f f i c u l t y . I d i d t h i s because i f we
can agree together on the most prudent revenues we're l i k e l y t o get,
i f t h e recovery stays and we do r i g h t t h i n g s economically, then i t
w i l l t u r n out b e t t e r f o r the American people than we say than t h e
l a s t 12 years. Because there were d i f f e r e n c e s over the revenue
estimates, you and I know t h a t both p a r t i e s were given greater elbow
room f o r i r r e s p o n s i b i l i t y . This i s t i g h t e n i n g the r e i n on t h e
Democrats as w e l l as the Republicans.
Let's a t l e a s t argue about the
same s e t o f numbers so the American people w i l l t h i n k we're keeping
s t r a i g h t w i t h them.
(Applause.)
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�- 8 -
But in the end we have to get back to the d e f i c i t . For
years there's been a l o t of talk about i t , but very few credible
efforts to deal with i t . And now I understand why, having dealt with
the.real numbers for four weeks. (Laughter.) But I believe t h i s
plan does — i t tackles the budget d e f i c i t seriously and over the
long-term. I t puts in place one of the biggest d e f i c i t reductions
and one of the biggest changes in federal p r i o r i t i e s from consumption
to investment in the history of t h i s country at the same time over
the next four years.
Let me say to a l l the people watching us tonight, who
w i l l ask me these questions beginning tomorrow as I go around the
country and who've asked i t in the past, we're not cutting the
d e f i c i t j u s t because experts say i t ' s the thing to do or because i t
has some i n t r i n s i c merit. We have to cut the d e f i c i t because the
more we spend paying off the debt, the l e s s tax dollars we have to
invest in jobs and education and the future of t h i s country. And the
more money we take out of the pool of available savings, the harder
i t i s for people in the private sector to borrow money at affordable
interest rates for a college loan for t h e i r children, for a home
mortgage, or to s t a r t a new business.
That's why we've got to reduce the debt — because i t i s
crowding out other a c t i v i t i e s that we ought to be engaged in and that
the American people ought to be engaged i n . (Applause.) We cut the
d e f i c i t so that our children w i l l be able to buy a home, so that our
companies can invest in the future and i n retraining t h e i r workers,
so that our government can make the kinds of investments we need to
be a stronger and smarter and safer nation.
I f we don't act now, you and I might not even recognize
t h i s government 10 years from now.
I f we j u s t stay with the same
trends of the l a s t four years, by the end of the decade the d e f i c i t
w i l l be $635 b i l l i o n a year, almost 80 percent of our gross domestic
product. And paying interest on that debt w i l l be the c o s t l i e s t
government program of a l l . We'll s t i l l be the world's largest
debtor. And when members of Congress come here, t h e y ' l l be devoting
over 20 cents on the dollar to interest payments, more than half of
the budget to health care and to other entitlements. And you'll come
here and deliberate and argue over s i x or seven cents on the dollar,
no matter what America's problems are.
We w i l l not be able to have the independence we need to
chart the future that we must. And we'll be t e r r i b l y dependent on
foreign funds for a large portion of our investment.
This budget plan by contrast w i l l , by 1997, cut $140
b i l l i o n in that year alone from the d e f i c i t . A r e a l spending cut, a
real revenue increase, a real d e f i c i t reduction, using the
independent numbers of the Congressional Budget Office. (Laughter.)
Well, you can laugh, my fellow Republicans, but I ' l l point out that
the Congressional Budget Office was normally more conservative in
what was going to happen and closer to right than previous Presidents
have been. (Applause.)
I did t h i s so that we could argue about p r i o r i t i e s with
the same set of numbers. I did t h i s so that no one could say I was
estimating my way out of t h i s d i f f i c u l t y . I did t h i s because i f we
can agree together on the most prudent revenues we're l i k e l y to get,
i f the recovery stays and we do right things economically, then i t
w i l l turn out better for the American people than we say than the
l a s t 12 years. Because there were differences over the revenue
estimates, you and I know that both parties were given greater elbow
room for i r r e s p o n s i b i l i t y . This i s tightening the rein on the
Democrats as well as the Republicans. Let's at l e a s t argue about the
same set of numbers so the American people w i l l think we're keeping
straight with them. (Applause.)
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undue influence of special interest by passing a b i l l to end the tax
deduction for lobbying and to act quickly to require a l l the people
who lobby you to register as lobbyists by passing the lobbying
registration b i l l .
(Applause.)
Believe me, they were cheering that l a s t section at
home. I believe lobby reform and campaign finance reform are a sure
path to increased popularity for Republicans and Democrats alike
because i t says to the voters back home, "This i s your House. This
i s your Senate. We're your hired hands. And every penny we draw i s
your money." (Applause.)
Next, to revolutionize government we have to ensure that
we l i v e within our means, and that should s t a r t at the top and with
the White House. In the l a s t few days I have announced a cut in the
White House s t a f f of 25 percent, saving approximately $10 million. I
have ordered administrative cuts in budgets of agencies and
departments. I have cut the federal bureaucracy — or w i l l over the
next four years — by approximately 100,000 positions, for a combined
savings of $9 b i l l i o n . (Applause.) I t i s time for government to
demonstrate i n the condition we're i n that we can be as frugal as any
household i n America.
And that's why I also want to congratulate the Congress.
I notice the announcement of the leadership today that Congress i s
taking similar steps to cut i t s costs. I think that i s important. I
think i t w i l l send a very clear signal to the American people.
(Applause.)
But i f we r e a l l y want to cut spending we're going to
have to do more, and some of i t w i l l be d i f f i c u l t . Tonight I c a l l
for an across-the-board freeze in federal government s a l a r i e s for one
year. (Applause.) And thereafter, during t h i s four-year period, I
recommend that s a l a r i e s r i s e at one point lower than the cost of
l i v i n g allowance normally involved in federal pay increases.
(Applause.)
Next, I recommend that we make 150 s p e c i f i c budget cuts,
as you know, and that a l l those who say we should cut more be as
s p e c i f i c as I have been. (Applause.)
F i n a l l y , l e t me say to my friends on both sides of the
a i s l e , i t i s not enough simply to cut government, we have to rethink
the whole way i t works. When I became President I was amazed at just
the way the White House worked i n ways that added l o t s of money to
what taxpayers had to pay — outmoded ways that didn't take maximum
advantage of technology and didn't do things that any business would
have done years ago to save taxpayers' money.
So I want to bring a new s p i r i t of innovation into every
government department. I want to push education reform, as I said,
not j u s t to spend more money, but to r e a l l y improve learning. Some
things work and some things don't. We ought to be subsidizing the
things that work and discouraging the things that don't. I'd l i k e to
use that superfund to clean up pollution for a change and not j u s t
pay lawyers. (Applause.)
In the aftermath of a l l the d i f f i c u l t i e s with the
savings and loans, we must use federal bank regulators to protect the
security and safety of our financial i n s t i t u t i o n s , but they should
not be used to continue the credit crunch and to stop people from
making sensible loans. (Applause.)
I'd l i k e for us to not only have welfare reform but to
reexamine the whole focus of a l l of our programs that help people to
s h i f t them from entitlement programs to empowerment programs. In the
end we want people not to need us anymore. I think that's important.
(Applause.)
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As I said e a r l i e r , my recommendation makes more than 150
d i f f i c u l t reductions t o cut the f e d e r a l spending by a t o t a l of $246
billion.
We are e l i m i n a t i n g programs t h a t are no longer needed, such
as nuclear power research and development. (Applause.) We're
slashing subsidies and canceling wasteful p r o j e c t s . But many of
these programs were j u s t i f i e d i n t h e i r time, and a l o t of them are
d i f f i c u l t f o r me t o recommend reductions i n . Some r e a l l y tough ones
f o r me personally.
I recommend t h a t we reduce i n t e r e s t subsidies t o the
Rural E l e c t r i c A d m i n i s t r a t i o n . That's a d i f f i c u l t t h i n g f o r me t o
recommend. But I t h i n k t h a t I cannot exempt the t h i n g s t h a t e x i s t i n
my s t a t e , or i n my experience, i f I ask you t o deal w i t h t h i n g s t h a t
are d i f f i c u l t f o r you t o deal w i t h . We're going t o have t o have no
sacred cows except the fundamental abiding i n t e r e s t of the American
people.
(Applause.)
I have t o say t h a t we a l l know our government has been
j u s t great a t b u i l d i n g programs. The time has come t o show the
American people t h a t we can l i m i t them, t o o ; t h a t we can not only
s t a r t t h i n g s , t h a t we can a c t u a l l y stop t h i n g s . (Applause.)
About the defense budget, I r a i s e a hope and a caution.
As we r e s t r u c t u r e our m i l i t a r y forces t o meet the new t h r e a t s of the
post-Cold War world, i t i s t r u e t h a t we can responsibly reduce our
defense budget. And we may a l l doubt what t h a t range of reductions
i s . But l e t me say t h a t as long as I am President, I w i l l do
everything I can t o make sure t h a t the men and women who serve under
the American Flag, w i l l remain the b e s t - t r a i n e d , the best-prepared,
the best-equipped f i g h t i n g force i n the world. And every one of you
should make t h a t solemn pledge. We s t i l l have r e s p o n s i b i l i t i e s
around the world. We are the world's only superpower. This i s s t i l l
a dangerous and u n c e r t a i n time. And we owe i t t o the people i n
uniform t o make sure t h a t we adequately provide f o r the n a t i o n a l
defense and f o r t h e i r i n t e r e s t s and needs. (Applause.)
Backed by an e f f e c t i v e n a t i o n a l defense and a stronger
economy, our n a t i o n w i l l be prepared t o lead a world challenged — as
i t i s everywhere — by ethnic c o n f l i c t , by t h e p r o l i f e r a t i o n of
weapons of mass d e s t r u c t i o n , by the g l o b a l democratic r e v o l u t i o n and
by challenges t o the h e a l t h of our g l o b a l environment.
I know t h i s economic plan i s ambitious, but I honestly
b e l i e v e i t i s necessary f o r the continued greatness of the United
States. And I t h i n k i t i s paid f o r f a i r l y , f i r s t by c u t t i n g
government, then by asking the most of those who b e n e f i t e d the most
i n the past, and by asking more Americans t o c o n t r i b u t e today so t h a t
a l l of us can prosper tomorrow.
For the w e a l t h i e s t — those earning more than $180,000
per year — I ask you a l l who are l i s t e n i n g t o n i g h t t o support a
r a i s e i n the top r a t e f o r f e d e r a l income taxes from 31 t o 3 6 percent.
(Applause.) We recommend a 10 percent surtax on incomes over
$250,000 a year — (applause) — and we recommend c l o s i n g
some loopholes t h a t l e t some people get away w i t h o u t paying any tax
at a l l . (Applause.)
For businesses w i t h taxable incomes i n excess of $10
m i l l i o n we recommend a r a i s e i n the corporate t a x r a t e also t o 36
percent, as w e l l as a cut i n the deduction f o r business entertainment
expenses. (Applause.) Our plan seeks t o a t t a c k t a x subsidies t h a t
a c t u a l l y reward companies more f o r s h u t t i n g t h e i r operations down
here and moving them overseas than f o r s t a y i n g here and r e i n v e s t i n g
i n America. (Applause.)
I say t h a t as someone who believes t h a t American
companies should be f r e e t o i n v e s t around the world and, as a former
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governor who a c t i v e l y sought investment of f o r e i g n companies i n my
s t a t e , but the tax code should not express a preference t o American
companies f o r moving somewhere else. And i t does i n p a r t i c u l a r cases
today.
(Applause.)
We w i l l seek t o ensure t h a t through e f f e c t i v e t a x
enforcement f o r e i g n corporations who do make money i n America simply
pay the same taxes t h a t American companies make on the same income.
(Applause.)
To middle class Americans who have paid a great deal f o r
the l a s t 12 years and from whom I ask a c o n t r i b u t i o n t o n i g h t , I w i l l
say again as I d i d on Monday n i g h t , you're not going alone anymore,
you're c e r t a i n l y not going f i r s t and you're not going t o pay more f o r
less as you have too o f t e n i n the past.
I want t o emphasize the f a c t s about t h i s plan:
98.8
percent of America's f a m i l i e s w i l l have no increase i n t h e i r income
tax r a t e s — (applause) — only 1.2 percent a t the top. Let me be
clear: There w i l l also be no new cuts i n b e n e f i t s f o r Medicare.
(Applause.) As we move toward the f o u r t h year, w i t h the explosion i n
health care costs, as I s a i d , p r o j e c t e d t o account f o r 50 percent of
the growth of the d e f i c i t between now and the year 2000, t h e r e must
be planned cuts i n payments t o providers — t o doctors, t o h o s p i t a l s ,
to labs — as a way of c o n t r o l l i n g h e a l t h care costs. But I see
these only as a stop-gap u n t i l we can reform the e n t i r e h e a l t h care
system. I f y o u ' l l help me do t h a t , we can be f a i r t o the providers
and t o the consumers of h e a l t h care.
(Applause.)
Let me repeat t h i s , because I know i t matters t o a l o t
of you on both sides of the a i s l e . This plan does not make a
recommendation f o r new cuts i n Medicare b e n e f i t s f o r any b e n e f i c i a r y .
Secondly, the only change we are making i n Social Security i s one
t h a t has already been p u b l i c i z e d . The p l a n does ask older Americans
w i t h higher incomes who do not r e l y s o l e l y on Social S e c u r i t y t o get
by.to c o n t r i b u t e more. This plan w i l l not a f f e c t the 80 percent of
Social S e c u r i t y r e c i p i e n t s who do not pay taxes on Social Security
now.
Those who do not pay tax on Social Security now w i l l not be
a f f e c t e d by t h i s plan.
Our plan does include a broad-based tax on energy. And
I want t o t e l l you why I selected t h i s and why I t h i n k i t ' s a good
idea. I recommend t h a t we adopt a BTU t a x on the heat content of
energy as the best way t o provide us w i t h revenue t o lower the
d e f i c i t because i t also combats p o l l u t i o n , promotes energy
e f f i c i e n c y , promotes the independence economically of t h i s country,
as w e l l as h e l p i n g t o reduce the debt, and because i t does not
d i s c r i m i n a t e against any area — u n l i k e a carbon tax t h a t ' s not too
hard on the coal s t a t e s ; u n l i k e a gas t a x t h a t ' s not too tough on
people who d r i v e a long way t o work; u n l i k e an ad valorem t a x i t
doesn't increase j u s t when the p r i c e of an energy source goes up.
And i t i s environmentally responsible. I t w i l l help us i n the future
as w e l l as i n the present w i t h the d e f i c i t .
(Applause.)
Taken together these measures w i l l cost an American
family w i t h an income of about $40,000 a year less than $17 a month.
I t w i l l cost American f a m i l i e s w i t h incomes under $30,000 nothing,
because of other programs we propose — p r i n c i p a l l y those r a i s i n g the
earned income tax c r e d i t .
Because of our p u b l i c l y - s t a t e d determination t o reduce
the d e f i c i t , i f we do these t h i n g s , we w i l l see the c o n t i n u a t i o n of
what's happened j u s t since the e l e c t i o n . Just since the e l e c t i o n ,
since the Secretary of the Treasury, the D i r e c t o r of the O f f i c e of
Management and Budget and others who have begun t o speak out p u b l i c l y
i n favor of a tough d e f i c i t reduction p l a n , i n t e r e s t rates have
continued t o f a l l long-term. That means t h a t f o r the middle class,
who w i l l pay something more each month, i f they had any c r e d i t needs
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governor who actively sought investment of foreign companies in my
state, but the tax code should not express a preference to American
companies for moving somewhere else. And i t does in p a r t i c u l a r cases
today.
(Applause.)
W w i l l seek to ensure that through effective tax
e
enforcement foreign corporations who do make money in America simply
pay the same taxes that American companies make on the same income.
(Applause.)
To middle class Americans who have paid a great deal for
the l a s t 12 years and from whom I ask a contribution tonight, I w i l l
say again as I did on Monday night, you're not going alone anymore,
you're certainly not going f i r s t and you're not going to pay more for
l e s s as you have too often in the past.
I want to emphasize the facts about t h i s plan: 98.8
percent of America's families w i l l have no increase in t h e i r income
tax rates — (applause) — only 1.2 percent at the top. Let me be
clear: There w i l l also be no new cuts i n benefits for Medicare.
(Applause.) As we move toward the fourth year, with the explosion in
health care costs, as I said, projected to account for 50 percent of
the growth of the d e f i c i t between now and the year 2000, there must
be planned cuts in payments to providers — to doctors, to hospitals,
to labs — as a way of controlling health care costs. But I see
these only as a stop-gap u n t i l we can reform the entire health care
system. I f you'll help me do that, we can be f a i r to the providers
and to the consumers of health care.
(Applause.)
Let me repeat t h i s , because I know i t matters to a l o t
of you on both sides of the a i s l e . This plan does not make a
recommendation for new cuts in Medicare benefits for any beneficiary.
Secondly, the only change we are making i n Social Security i s one
that has already been publicized. The plan does ask older Americans
with higher incomes who do not rely solely on Social Security to get
by.to contribute more. This plan w i l l not affect the 80 percent of
Social Security recipients who do not pay taxes on Social Security
now.
Those who do not pay tax on Social Security now w i l l not be
affected by t h i s plan.
Our plan does include a broad-based tax on energy. And
I want to t e l l you why I selected t h i s and why I think i t ' s a good
idea. I recommend that we adopt a BTU tax on the heat content of
energy as the best way to provide us with revenue to lower the
d e f i c i t because i t also combats pollution, promotes energy
efficiency, promotes the independence economically of t h i s country,
as well as helping to reduce the debt, and because i t does not
discriminate against any area — unlike a carbon tax that's not too
hard on the coal states; unlike a gas tax that's not too tough on
people who drive a long way to work; unlike an ad valorem tax i t
doesn't increase j u s t when the price of an energy source goes up.
And i t i s environmentally responsible. I t w i l l help us i n the future
as well as in the present with the d e f i c i t .
(Applause.)
Taken together these measures w i l l cost an American
family with an income of about $40,000 a year l e s s than $17 a month.
I t w i l l cost American families with incomes under $30,000 nothing,
because of other programs we propose — p r i n c i p a l l y those r a i s i n g the
earned income tax credit.
Because of our publicly-stated determination to reduce
the d e f i c i t , i f we do these things, we w i l l see the continuation of
what's happened j u s t since the election. Just since the election,
since the Secretary of the Treasury, the Director of the Office of
Management and Budget and others who have begun to speak out publicly
in favor of a tough d e f i c i t reduction plan, interest rates have
continued to f a l l long-term. That means that for the middle c l a s s ,
who w i l l pay something more each month, i f they had any credit needs
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�- 9 -
As I said e a r l i e r , my recommendation makes more than 150
d i f f i c u l t reductions to cut the federal spending by a t o t a l of $246
b i l l i o n . We are eliminating programs that are no longer needed, such
as nuclear power research and development. (Applause.) We're
slashing subsidies and canceling wasteful projects. But many of
these programs were j u s t i f i e d in their time, and a l o t of them are
d i f f i c u l t for me to recommend reductions i n . Some r e a l l y tough ones
for me personally.
I recommend that we reduce interest subsidies to the
Rural E l e c t r i c Administration. That's a d i f f i c u l t thing for me to
recommend. But I think that I cannot exempt the things that exist in
my state, or in my experience, i f I ask you to deal with things that
are d i f f i c u l t for you to deal with. We're going to have to have no
sacred cows except the fundamental abiding interest of the American
people.
(Applause.)
I have to say that we a l l know our government has been
j u s t great at building programs. The time has come to show the
American people that we can l i m i t them, too? that we can not only
s t a r t things, that we can actually stop things. (Applause.)
About the defense budget, I r a i s e a hope and a caution.
As we restructure our military forces to meet the new threats of the
post-Cold War world, i t i s true that we can responsibly reduce our
defense budget. And we may a l l doubt what that range of reductions
i s . But l e t me say that as long as I am President, I w i l l do
everything I can to make sure that the men and women who serve under
the American Flag, w i l l remain the best-trained, the best-prepared,
the best-equipped fighting force i n the world. And every one of you
should make that solemn pledge. We s t i l l have r e s p o n s i b i l i t i e s
around the world. We are the world's only superpower. This i s s t i l l
a dangerous and uncertain time. And we owe i t to the people i n
uniform to make sure that we adequately provide for the national
defense and for t h e i r interests and needs.
(Applause.)
Backed by an effective national defense and a stronger
economy, our nation w i l l be prepared to lead a world challenged — as
i t i s everywhere — by ethnic c o n f l i c t , by the p r o l i f e r a t i o n of
weapons of mass destruction, by the global democratic revolution and
by challenges to the health of our global environment.
I know t h i s economic plan i s ambitious, but I honestly
believe i t i s necessary for the continued greatness of the United
States. And I think i t i s paid for f a i r l y , f i r s t by cutting
government, then by asking the most of those who benefited the most
in the past, and by asking more Americans to contribute today so that
a l l of us can prosper tomorrow.
For the wealthiest — those earning more than $180,000
per year — I ask you a l l who are l i s t e n i n g tonight to support a
r a i s e i n the top rate for federal income taxes from 31 to 3 6 percent.
(Applause.) We recommend a 10 percent surtax on incomes over
$250,000 a year — (applause) — and we recommend closing
some loopholes that l e t some people get away without paying any tax
at a l l .
(Applause.)
For businesses with taxable incomes i n excess of $10
million we recommend a r a i s e i n the corporate tax rate also to 36
percent, as well as a cut i n the deduction for business entertainment
expenses. (Applause.) Our plan seeks to attack tax subsidies that
actually reward companies more for shutting t h e i r operations down
here and moving them overseas than for staying here and reinvesting
in America.
(Applause.)
I say that as someone who believes that American
companies should be free to invest around the world and, as a former
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or demands t h e i r increased energy costs w i l l be more than o f f s e t by
lower i n t e r e s t costs f o r mortgages, consumer loans, c r e d i t cards.
This can be a wise investment f o r them and t h e i r country now.
(Applause.)
I would also p o i n t out what the American people already
know, and t h a t i s , because we're a b i g , vast country where we drive
long distances, we have maintained f a r lower burdens on energy than
any other advanced country. We w i l l s t i l l have f a r lower burdens on
energy than any other advanced country. And these w i l l be spread
f a i r l y , w i t h r e a l attempts t o make sure t h a t no cost i s imposed on
f a m i l i e s w i t h incomes under $30,000 and t h a t the costs are very
modest u n t i l you get i n t o the higher income groups where the income
taxes t r i g g e r i n .
Now, I ask a l l of you t o consider t h i s : Whatever you
t h i n k of the tax program, whatever you t h i n k of the spending cuts,
consider the cost of not changing. Remember the numbers t h a t you a l l
know. I f we j u s t keep on doing what we're doing, by the end of the
decade w e ' l l have a $650-billion-a-year d e f i c i t . I f we j u s t keep on
doing what we're doing, by the end of the decade, 2 0 percent of our
n a t i o n a l income w i l l go t o h e a l t h care every year — t w i c e as much as
any other country on the face of the globe. I f we j u s t keep on doing
what we're doing, over 20 cents on the d o l l a r w i l l have t o go t o
service the debt.
Unless we have the courage now t o s t a r t b u i l d i n g our
f u t u r e and stop borrowing from i t , we're condemning ourselves t o
years of stagnation i n t e r r u p t e d by occasional recessions, t o slowgrowth i n j o b s , t o no more growth i n income, t o more debt, t o more
disappointment. Worse less — unless we change, unless we increase
investment and reduce the debt, t o r a i s e p r o d u c t i v i t y so t h a t we can
generate both jobs and incomes, we w i l l be condemning our c h i l d r e n
and our c h i l d r e n ' s c h i l d r e n t o a lesser l i f e than we enjoyed.
Once Americans looked forward t o doubling t h e i r l i v i n g
standards every 25 years. At present p r o d u c t i v i t y r a t e s , i t w i l l
take 100 years t o double l i v i n g standards, u n t i l our grandchildren's
grandchildren are born. I say t h a t i s too long t o w a i t .
(Applause.)
Tonight the American people know we have t o change. But
they're also l i k e l y t o ask me tomorrow and a l l of you f o r the weeks
and months ahead whether we have the f o r t i t u d e t o make the changes
happen i n the r i g h t way.
They know t h a t as soon as I leave t h i s
Chamber and you go home, various i n t e r e s t groups w i l l be out i n force
lobbying against t h i s or t h a t piece of t h i s plan. And t h a t the
forces of conventional wisdom w i l l o f f e r a thousand reasons why we
w e l l ought t o do t h i s but we j u s t can't do i t .
Our people w i l l be watching and wondering, not t o see
whether you disagree w i t h me on a p a r t i c u l a r issue, but j u s t t o see
whether t h i s i s going t o be business as usual or a r e a l new day.
Whether we're a l l going t o conduct ourselves as i f we know we're
working f o r them. We must scale the w a l l s of the people's
skepticisms, not w i t h our words but w i t h our deeds.
(Applause.)
A f t e r so many years of g r i d l o c k and i n d e c i s i o n , a f t e r so
many hopeful beginnings and so few promising r e s u l t s , the American
people are going t o be harsh i n t h e i r judgments of a l l of us i f we
f a i l t o seize t h i s moment.
This economic plan can't please everybody.
I f the
package i s picked a p a r t , there w i l l be something t h a t w i l l anger each
of us, won't please anybody. But i f i t i s taken as a whole, i t w i l l
help a l l of us.
So I ask you a l l t o begin by r e s i s t i n g the temptation t o
focus only on a p a r t i c u l a r spending cut you don't l i k e or some
p a r t i c u l a r investment t h a t wasn't made. And nobody l i k e s the tax
increases, but l e t ' s j u s t face f a c t s . For 20 years, through
�- 12 -
a d m i n i s t r a t i o n s o f both p a r t i e s , incomes have s t a l l e d and debt has
exploded, and p r o d u c t i v i t y has n o t grown as i t should. We cannot
deny t h e r e a l i t y of our c o n d i t i o n . We have got t o play t h e hand we
were d e a l t and play i t as best we can. (Applause.)
My f e l l o w Americans, t h e t e s t of t h i s plan cannot be
what i s i n i t f o r me, i t has got t o be what i s i n i t f o r us.
(Applause.)
I f we work hard and i f we work together, i f we
rededicate ourselves t o creating jobs, t o rewarding work, t o
strengthening our f a m i l i e s , t o r e i n v e n t i n g our government, we can
l i f t our c o u n t r i e s fortunes again.
Tonight, I ask everyone i n t h i s Chamber and every
American t o look simply i n t o your h e a r t , t o spark your own hopes, t o
f i r e your own imagination. There i s so much good, so much
p o s s i b i l i t y , so much excitement i n t h i s country now, t h a t i f we a c t
b o l d l y and honestly, as leaders should, our legacy w i l l be one of
p r o s p e r i t y and progress. This must be America's new d i r e c t i o n . Let
us summon t h e courage t o seize i t .
Thank you.
God bless America.
END
(Applause.)
10:10 P.M. EST
�- 12 -
administrations of both parties, incomes have s t a l l e d and debt has
exploded, and productivity has not grown as i t should. We cannot
deny the r e a l i t y of our condition. We have got to play the hand we
were dealt and play i t as best we can. (Applause.)
My fellow Americans, the t e s t of t h i s plan cannot be
what i s i n i t for me, i t has got to be what i s i n i t for us.
(Applause.)
I f we work hard and i f we work together, i f we
rededicate ourselves to creating jobs, to rewarding work, to
strengthening our families, to reinventing our government, we can
l i f t our countries fortunes again.
Tonight, I ask everyone i n t h i s Chamber and every
American to look simply into your heart, to spark your own hopes, to
f i r e your own imagination. There i s so much good, so much
p o s s i b i l i t y , so much excitement i n t h i s country now, that i f we act
boldly and honestly, as leaders should, our legacy w i l l be one of
prosperity and progress. This must be America's new direction. Let
us summon the courage to seize i t .
Thank you.
God bless America.
END
(Applause.)
10:10 P.M. EST
�- 11 -
or demands t h e i r increased energy costs w i l l be more than offset by
lower interest costs for mortgages, consumer loans, credit cards.
This can be a wise investment for them and t h e i r country now.
(Applause.)
I would also point out what the American people already
know, and that i s , because we're a big, vast country where we drive
long distances, we have maintained far lower burdens on energy than
any other advanced country. We w i l l s t i l l have far lower burdens on
energy than any other advanced country. And these w i l l be spread
f a i r l y , with real attempts to make sure that no cost i s imposed on
families with incomes under $30,000 and that the costs are very
modest u n t i l you get into the higher income groups where the income
taxes trigger i n .
Now, I ask a l l of you to consider t h i s : Whatever you
think of the tax program, whatever you think of the spending cuts,
consider the cost of not changing. Remember the numbers that you a l l
know. I f we j u s t keep on doing what we're doing, by the end of the
decade we'll have a $650-billion-a-year d e f i c i t . I f we j u s t keep on
doing what we're doing, by the end of the decade, 2 0 percent of our
national income w i l l go to health care every year — twice as much as
any other country on the face of the globe. I f we j u s t keep on doing
what we're doing, over 2 0 cents on the dollar w i l l have to go to
service the debt.
Unless we have the courage now to s t a r t building our
future and stop borrowing from i t , we're condemning ourselves to
years of stagnation interrupted by occasional recessions, to slowgrowth i n jobs, to no more growth i n income, to more debt, to more
disappointment. Worse l e s s — unless we change, unless we increase
investment and reduce the debt, to raise productivity so that we can
generate both jobs and incomes, we w i l l be condemning our children
and our children's children to a lesser l i f e than we enjoyed.
Once Americans looked forward to doubling t h e i r l i v i n g
standards every 25 years. At present productivity rates, i t w i l l
take 100 years to double l i v i n g standards, u n t i l our grandchildren's
grandchildren are born. I say that i s too long to wait. (Applause.)
Tonight the American people know we have to change. But
they're also l i k e l y to ask me tomorrow and a l l of you for the weeks
and months ahead whether we have the fortitude to make the changes
happen i n the right way. They know that as soon as I leave t h i s
Chamber and you go home, various interest groups w i l l be out i n force
lobbying against t h i s or that piece of t h i s plan. And that the
forces of conventional wisdom w i l l offer a thousand reasons why we
well ought to do t h i s but we j u s t can't do i t .
Our people w i l l be watching and wondering, not to see
whether you disagree with me on a particular issue, but j u s t to see
whether t h i s i s going to be business as usual or a r e a l new day.
Whether we're a l l going to conduct ourselves as i f we know we're
working for them. We must scale the walls of the people's
skepticisms, not with our words but with our deeds. (Applause.)
After so many years of gridlock and indecision, after so
many hopeful beginnings and so few promising r e s u l t s , the American
people are going to be harsh i n t h e i r judgments of a l l of us i f we
f a i l to seize t h i s moment.
This economic plan can't please everybody. I f the
package i s picked apart, there w i l l be something that w i l l anger each
of us, won't please anybody. But i f i t i s taken as a whole, i t w i l l
help a l l of us.
So I ask you a l l to begin by r e s i s t i n g the temptation to
focus only on a particular spending cut you don't l i k e or some
p a r t i c u l a r investment that wasn't made. And nobody l i k e s the tax
increases, but l e t ' s j u s t face facts. For 20 years, through
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
A name given to the resource
Office of Press and Communications - Philip J. “P.J.” Crowley
Creator
An entity primarily responsible for making the resource
National Security Council
Is Part Of
A related resource in which the described resource is physically or logically included.
<a href="http://clinton.presidentiallibraries.us/items/show/36076">Collection Finding Aid</a>
Identifier
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2011-0516-S
Description
An account of the resource
This collection consists of White House press releases from the files of P.J. Crowley. Crowley served as Special Assistant to the President for National Security Affairs and Senior Director of Public Affairs the National Security Council from 1997–1999. The press releases are arranged by subject or, as in the case of the Weekly Compilation of Presidential Documents, by date.
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Extent
The size or duration of the resource.
370 folders in 33 boxes
Text
A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.
Original Format
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Paper
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
A name given to the resource
Clinton - State of the Union Address [1]
Creator
An entity primarily responsible for making the resource
National Security Council
Office of Press and Communications
Philip "PJ" Crowley
Identifier
An unambiguous reference to the resource within a given context
2011-0516-S
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 4
<a href="http://catalog.archives.gov/id/7585702"></a>
<a href="http://clinton.presidentiallibraries.us/items/show/36076">Collection Finding Aid</a>
Source
A related resource from which the described resource is derived
7585702
42-t-7585702-20110516s-004-020-2015
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: NSC Cable, Email, and Records Management System
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Format
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Adobe Acrobat Document
Medium
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Preservation-Reproduction-Reference