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State of the Union 1991
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State of the Union 1991
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Records of the White House Office of the Chief of Staff to the President (George H. W. Bush Administration)
Ed Rogers' Subject Files
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This is not a textual record. This is used as an
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George H.W. Bush Presidential Records
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Rogers, Ed, Files
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State of the Union 1991
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23
1
THE PRESIDENT'S STATE OF THE UNION SPEECH
JANUARY 29, 1991 -- TALKING POINTS
International:
Halfway around the world we are engaged in the hard work of
freedom. A new world order of peace, security, and the rule
of law, is being built by the brave men and women now
serving in the Persian Gulf.
America stands with the United Nations, and armed forces
from 28 countries, to reverse Saddam Hussein's aggression in
the Gulf. We are on course and we will prevail.
Highlights of the President's agenda for investment in the
future:
-- legislation to achieve excellence in education;
-- support for research and development in technology;
-- a comprehensive national energy strategy;
-- a new national highway system;
-- comprehensive new banking reform measures;
-- a national drug strategy for combatting drug abuse and
crime; and
-- election law reform.
Themes:
America's future lies in unlocking every citizen's
potential. The legislative accomplishments of the last year
-- enhancing opportunities for Americans with disabilities,
giving child care support directly to parents, and making
affordable housing available to more Americans -- strengthen
the power and freedom of choice for individuals and
families.
The President seeks to affirm America as a nation of
principle, a nation without unfair barriers, preferences, or
bias. A nation that protects and expands the potential of
individuals while it creates new jobs and economic growth as
a competitor in the global economy.
A strong economy and expanded economic freedom are chief
among the goals of the President's economic growth package,
which includes tax-free family savings accounts, IRAs for
first-time home-buyers, and incentives for long-term
investment.
President Bush called on every American to ready the nation
for the future by working to enhance freedom at home, to
foster freedom abroad, and to make America a community of
conscience.
THE WHITE HOUSE
Office of the Press Secretary
EMBARGOED FOR RELEASE
AND WIRE TRANSMISSION
UNTIL 9:00 PM (EST)
TUESDAY, JANUARY 29, 1991
THE PRESIDENT'S STATE OF THE UNION ADDRESS
FACT SHEET
The President's 1991 State of the Union address discussed:
A New World Order
Preparing for the Next American Century
The War in the Gulf
The President explained that he came to speak to the Congress
and all Americans "certain that we stand at a defining hour."
I. A NEW WORLD ORDER
A. Peace and the Rule of Law
The President declared that what is at stake in the Persian
Gulf is more than just the independence of Kuwait. It is a new
world order where diverse nations are brought together to give
permanence to the universal aspirations of mankind:
Peace and security;
Freedom; and
The rule of law.
The world has "resisted the trap of appeasement, cynicism, and
isolation" and is united in demanding Iraq's immediate and
unconditional withdrawal from Kuwait. We are working to
achieve victory over tyranny and lawless aggression. America
has "a unique responsibility to do the hard work of freedom."
-2-
B. Constructive Change
The President noted that "the end of the Cold War has been a
victory for all humanity. Germany is united. Europe has
become whole and free -- and America's leadership was
instrumental in making it possible."
C. U.S.-Soviet Relations
The President stated that "our relationship with the Soviet
Union is important, not only to us, but to the world." It has
contributed to positive, historic change.
The President also noted that "like many other nations, we have
been deeply concerned by the violence in the Baltics." The
President stated that in discussions with the Soviet leadership
"we have been given representations, which, if fulfilled, would
result in the withdrawal of some Soviet forces, a reopening of
dialogue with the Republics, and a move away from violence."
We will watch carefully as the situation develops; we will also
maintain our contacts with Soviet leaders to encourage
democratization and reform.
II. PREPARING FOR THE NEXT AMERICAN CENTURY
The President asserted that the spirit that is winning a
victory for world peace and justice in the Persian Gulf is "the
same spirit that gives us the power and the potential to meet
our toughest challenges at home." The President called for
"new initiative in government, in our communities, and from
every American, to prepare for the next American century."
The President encouraged all Americans to join the "community
of conscience", asserting that "we have within our reach the
promise of a renewed America." He said "we can find meaning
and reward by serving some purpose higher than ourselves."
The President called for "strengthening the power and freedom
of choice of individuals and families." He declared that "the
strength of a democracy is not in bureaucracy," but "in the
people and their communities." The President called for the
unleashing of "the potential of our most precious resource --
our citizens." This should be done by returning to "families,
communities, counties, cities, states, and institutions of
every kind, the power to chart their own destiny."
-3-
A.
Encouraging Economic Growth
The President explained that he understands the genuine
economic distress experienced by many Americans. He
offered three reasons to be optimistic about the economy:
-
Inflation is low;
-
Inventories are low; and
-
Exports are strong.
The President expressed confidence that "we will get this
recession behind us, and return to growth -- soon."
Controlling Federal Spending and Enforcing the Budget
Agreement
The President declared that strong economic growth
requires control of Federal spending. He will transmit a
budget that holds the growth in spending to less than the
rate of inflation.
The budget agreement put the Federal government on a pay-
as-you-go plan and cut the growth of debt by nearly $500
billion.
Encouraging Savings and Investment
The President explained that the budget agreement helped
free private funds for savings and job-creating
investment.
In addition, the President announced that his budget again
includes:
Tax-free family savings accounts;
Penalty-free withdrawals from IRAs for first-
time home buyers; and
A strengthened long-term capital gains
incentive.
He also asked congressional leaders, the Administration,
and the Federal Reserve to cooperate in a study, led by
Federal Reserve Chairman Alan Greenspan, to reach
technical agreement on the budgetary and other economic
effects of a strengthened capital gains incentive.
-4-
B.
Investing in the Future
The President said that we must match incentives for
economic growth today with long-term investments for the
next American century.
Budget Priorities
The President indicated that his FY 1992 budget priorities
will include promoting investments in children, education,
infrastructure, space, and high technology.
Strengthening Education
The President will propose a new Educational Excellence
Act which contains strategic initiatives to improve the
learning achievement of all Americans and to restructure
the nation's educational system. Initiatives in the
Educational Excellence Act will:
Stimulate fundamental reform and restructure our
education system through promoting educational
choice and alternative certification for
teachers and principals.
Promote local control and innovation in
education by providing increased flexibility in
funding at the Federal and state levels in
exchange for enhanced accountability.
Assist educators in their mission to improve
student performance by: rewarding schools that
demonstrate improved achievement among students;
rewarding excellent teachers; and providing
innovation in training school administrators.
Provide incentives to school districts to design
and implement innovative approaches to
mathematics and science education; enhance the
endowments of Historically Black Colleges and
Universities; and contribute to improving
literacy.
-5-
Strengthening Transportation Infrastructure
The President believes a strong highway system is a
critical investment for our economic success. He
indicated that he would shortly outline the details of a
new National Highway System managed in partnership with
the States.
Enhancing Research and Development
To strengthen our research and development capability and
economic competitiveness the President will propose:
A record Federal budget commitment to science
and expanding the frontiers of knowledge,
including basic research and making government
research more available to the private sector
for speedier commercialization;
Increased support for generic or enabling
technologies at the pre-competitive stage of R&D
in such areas as high-performance computing, new
energy technologies, and advanced manufacturing
and materials; and
Making permanent the R&E tax credit.
Reducing Energy Vulnerability
The President will soon present a comprehensive National
Energy Strategy that calls for energy conservation and
efficiency, increased domestic energy development, and
greater use of alternative fuels. The elements of the
strategy are designed to:
Foster economic growth through the availability
of ample supplies of reasonably priced energy;
Enhance energy security by reducing
vulnerability to oil disruptions; and
Increase research and development of a wide
range of promising energy technologies.
Providing Financial Security
The President said that we will continue to make sure
banks are safe, sound, and able to provide adequate credit
-6-
for job-creating loans for factories, businesses, and
homebuyers.
He stated that "sound banks should be making more sound
loans, now -- and interest rates should be lower, now."
The Treasury will shortly unveil a plan to bring America's
financial system into the 21st century. The elements of
the plan are designed to:
Continue to protect the deposits of America's
workers and savers;
Assure the safety, soundness, and
competitiveness of our financial institutions;
Create a regulatory system that is strong,
simple, and streamlined; and
Move toward a deposit insurance fund that is
well capitalized with industry funds.
Expanding World Trade
The President called for an expansion of world trade, to
create new opportunities for U.S. exports, which have
grown by 23 percent over the past two years to nearly $400
billion. His priorities include:
-
Strengthening and expanding the world trading system
through the swift and successful completion of the
Uruguay Round of multilateral trade negotiations.
These negotiations aim to open markets
worldwide, lower government subsidies and trade
barriers that distort agricultural markets, and
establish rules of fair play in areas vital to
U.S. competitiveness -- such as services,
agriculture, and high technology.
The lower trade barriers that would result from
a successful Uruguay Round could increase world
output by approximately $5 trillion over the
next ten years, and U.S. output by $1 trillion.
-
A U.S.- Mexico Free Trade Agreement (FTA), first
endorsed by President Bush and Mexico's President
Carlos Salinas de Gortari in June 1990.
-7-
A comprehensive FTA would aim to eliminate
barriers to trade in goods and services and
investment between the United States and Mexico,
as well as provide for the protection of
intellectual property rights.
It would free trade totalling $59 billion
between the two countries.
The FTA might also include Canada, thus creating
the world's largest market, with 360 million
consumers and $6 trillion in total output.
-
Implementing the Enterprise for the Americas
Initiative, launched by President Bush last June.
The President's initiative aims to spur economic
growth and create jobs among the nations of the
Western Hemisphere by removing barriers to trade
and investment, and by reducing debt burdens.
The initiative envisions the eventual
development of a hemispheric zone of free trade.
The United States has begun the process of
opening markets to trade and investment with
over a dozen countries in the region.
The President will propose legislation to enable
full implementation of the investment and debt
reduction portions of the initiative.
-
Export Promotion. The Administration will be taking
quality and export programs to cities around the
country, to make certain that more U.S. firms know
the export potential of top quality goods and
services.
C.
Giving Power and Opportunity to the Individual
The President announced an action plan to "put more power
and opportunity in the hands of the individual."
Creating Job Opportunities
The President called for new incentives to create jobs in
our inner cities by encouraging investment through
enterprise zones.
-8-
Increasing Home Ownership
The President also called for increasing tenant ownership
and control of public housing to help build the bonds of
community in neighborhoods that need help.
Fighting Discrimination
The President stated that "civil rights are also crucial
to protecting equal opportunity." He called on all
Americans to speak out against racism, bigotry, and hate.
The President indicated that "we will continue our
vigorous enforcement of existing statutes," and promised
to press the Congress again "to strengthen the laws
against employment discrimination without resorting to the
use of unfair preferences."
Protecting People From Crime and Combatting Drug Abuse
The President described freedom from crime as a basic
civil right and said that we must eradicate the fear that
stalks our cities.
-
He announced that the Attorney General will soon
convene a Crime Summit of our nation's law
enforcement officials.
-
He called for prompt action on tough crime control
legislation. The President will propose legislation
that will include:
A meaningful Federal death penalty for the most
heinous crimes with procedures to ensure its
fair and colorblind application;
Habeas corpus reform to reduce unnecessarily
repetitive appeals that clog the courts and
delay justice;
Exclusionary rule reform to ensure that evidence
gathered by law enforcement officials in a good
faith belief that they are acting lawfully can
be used to help courts establish the truth;
Provisions to strengthen Federal laws concerning
the safety of women by modifying rules on the
-9-
admissibility of evidence in cases of sex
crimes, enhancing penalties for the distribution
of illegal drugs to pregnant women, increasing
penalties for recidivist sex offenders, and
offering greater protection for victims below
the age of sixteen; and
New authority to enhance international
cooperation among law enforcement officials to
combat international criminal activity,
including international terrorism.
-
The President noted that recent data shows we are
making progress in reducing drug abuse, but that much
remains to be done. The Administration will soon
release the third edition of the National Drug
Control Strategy.
This comprehensive strategy includes increased
resources for drug prevention and education,
treatment, law enforcement, and international
initiatives.
Enhancing Good Health Through Prevention
The President stated that good health is every American's
right and responsibility. He announced that he will
propose an aggressive program of new prevention
initiatives to promote a healthier America and to help
control costs.
The initiatives are designed to make Americans of all ages
healthier.
Infant health will be improved through an
initiative that targets cities with
exceptionally high infant mortality rates;
Children will benefit from large increases in
immunization resources;
Adults will benefit from new efforts to promote
physical activity and reduce injury, reduce
tobacco use, and implementation of a new program
to detect breast and cervical cancer; and
Elderly women will benefit from mammography
services newly available to Medicare
beneficiaries.
-10-
Giving People More Choice in Government
The President urged "reviving the ideal of the citizen
politician who comes not to stay, but to serve."
He endorsed term limitations in order to reduce
the influence of special interests.
He also endorsed election reform -- total
elimination of Political Action Committees -- as
necessary to put more power in the hands of
individuals.
D.
Moving Government Closer to the People
The President said that "where power cannot be put
directly in the hands of the individual, it should be
moved closer to the people -- away from Washington."
The President called for a more dynamic program life
cycle.
Some programs should increase;
Some should decrease;
Some should be terminated; and
Some should be consolidated and turned over to
the States.
The President's Budget includes a list of potential
programs for turnover totalling more than $20 billion.
Working with the Governors and the Congress, the President
proposed selecting at least $15 billion in such programs
and turning them over to the States in a single
consolidated grant, fully funded, for flexible management
by the States. This initiative will:
Allow the Federal Government to reduce overhead;
Allow States to manage more flexibly and
efficiently;
Move power and decision-making closer to the
people; and
Encourage the innovative power of "States as
Laboratories."
-11-
III. THE WAR IN THE GULF
A. The Heroism of Our Servicemen and Servicewomen
The President said that, in this defining hour for America
and the world, "there is no one more devoted, more
committed to the hard work of freedom than every soldier
and sailor, every Marine, airman and Coastguardsman --
every man and woman now serving in the Persian Gulf." He
stated that our commitment to them must match their
commitment to their country.
B. We Are on Course
The President said that while we worked hard to avoid war,
Saddam Hussein repeatedly rejected the path of diplomacy
and peace. But we will prevail; we are on course.
"Iraq's capacity to sustain war is being destroyed Time
will not be Saddam's salvation.
C. Objectives in the Gulf
The President reaffirmed our objectives:
Drive Iraq from Kuwait. Iraq must comply with all
relevant United Nations resolutions.
Restore Kuwait's legitimate government. Kuwait will
once again be free.
Ensure stability and security in the Gulf region. It
is our hope that Iraq will live as a peaceful and
cooperative member of the family of nations.
The President stated that most Americans know
instinctively why we are in the Gulf -- "we had to stop
Saddam now, not later." The President noted the
undeniable value of thoughtful dissent. The right to
speak out "is one of the reasons we've been united in
purpose and principle for 200 years."
D. Strategic Benefits of High Technology
The President observed that our progress in the Gulf is
the result of using American technology and economic
-12-
strength to minimize the risk to human life. Our men and
women have the best and deserve the best.
The President directed that the Strategic Defense
Initiative (SDI) program be refocused on providing
protection from limited ballistic missile strikes -- from
whatever their source.
E.
The Unity of the International Community
The President observed that for the first time in the
post-war era, the international community is united. It
has an opportunity to fulfill the long-held promise of a
new world order -- where brutality goes unrewarded, and
aggression meets collective resistance.
The President praised the courage and success of the
pilots of the coalition countries and the leadership
provided by the United Nations, an organization that is
now confirming its founders' vision.
The President also commended our friends and allies who
have provided the bulk of the financial costs of Desert
Shield, and expressed confidence that they will similarly
financially support Desert Storm.
F.
U.S. Determination is Great
The President stated that Saddam will not benefit from
targeting innocent civilians, from environmental
terrorism, or by abusing POWs. We will succeed, and in
the process send a powerful message to any dictator or
despot who would follow Saddam's lead.
G.
The Special Role of U.S. Leadership
The President stated that "the United States bears a major
share of leadership" in the Gulf War effort. He noted
that the burden of leadership is a "strength that has made
America the beacon of freedom in a searching world."
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
January 29, 1991
ADDRESS BY THE PRESIDENT
ON THE STATE OF THE UNION
The U.S. Capitol
Washington, D.C.
9:09 P.M. EST
THE PRESIDENT: Mr. President, and Mr. Speaker, and
members of the United States Congress. I come to this House of the
people to speak to you and all Americans, certain that we stand at a
defining hour. Halfway around the world, we are engaged in a great
struggle in the skies and on the seas and sands. We know why we're
there. We are Americans -- part of something larger than ourselves.
For two centuries, we've done the hard work of freedom. And tonight,
we lead the world in facing down a threat to decency and humanity.
What is at stake is more than one small country; it is a
big idea: a new world order, where diverse nations are drawn
together in common cause to achieve the universal aspirations of
mankind -- peace and security, freedom, and the rule of law. Such is
a world worthy of our struggle and worthy of our children's future.
(Applause.)
The community of nations has resolutely gathered to
condemn and repel lawless aggression. Saddam Hussein's unprovoked
invasion -- his ruthless, systematic rape of a peaceful neighbor --
violated everything the community of nations holds dear. The world
has said this aggression would not stand -- and it will not stand.
(Applause.)
Together, we have resisted the trap of appeasement,
cynicism, and isolation that gives temptation to tyrants. The world
has answered Saddam's invasion with 12 United Nations resolutions,
starting with a demand for Iraq's immediate and unconditional
withdrawal and backed up by forces from 28 countries of six
continents. With few exceptions, the world now stands as one.
The end of the Cold War has been a victory for all
humanity. A year and a half ago, in Germany, I said that our goal
was a Europe whole and free. Tonight, Germany is united. Europe has
become whole and free -- and America's leadership was instrumental in
making it possible. (Applause.)
Our relationship to the Soviet Union is important, not
only to us, but to the world. That relationship has helped to shape
these and other historic changes. But like many other nations, we
have been deeply concerned by the violence in the Baltics, and we
have communicated that concern to the Soviet leadership.
The principle that has guided us is simple: Our
objective is to help the Baltic peoples achieve their aspirations,
not to punish the Soviet Union. (Applause.) In our recent
discussions with the Soviet leadership, we have been given
representations which, if fulfilled, would result in the withdrawal
of some Soviet forces, a reopening of dialogue with the Republics,
and a move away from violence.
We will watch carefully as the situation develops. And
we will maintain our contact with the Soviet leadership to encourage
MORE
- 2 -
continued commitment to democratization and reform. (Applause.) If
it is possible, I want to continue to build a lasting basis for
U.S.-Soviet cooperation, for a more peaceful future for all mankind.
The triumph of democratic ideas in Eastern Europe and
Latin America, and the continuing struggle for freedom elsewhere all
around the world all confirm the wisdom of our nation's founders.
Tonight, we work to achieve another victory . a victory
over tyranny and savage aggression.
We in this Union enter the last decade of the 20th
century thankful for our blessings, steadfast in our purpose, aware
of our difficulties, and responsive to our duties at home and around
the world.
For two centuries, America has served the world as an
inspiring example of freedom and democracy. For generations, America
has led the struggle to preserve and extend the blessings of liberty.
And today, in a rapidly changing world, American leadership is
indispensable. Americans know that leadership brings burdens and
sacrifices. But we also know why the hopes of humanity turn to us.
We are Americans: we have a unique responsibility to do the hard
work of freedom. And when we do, freedom works. (Applause.)
The conviction and courage we see in the Persian Gulf
today is simply the American character in action. The indomitable
spirit that is contributing to this victory for world peace and
justice is the same spirit that gives us the power and the potential
to meet our toughest challenges at home.
We are resolute and resourceful. If we can selflessly
confront evil for the sake of good in a land so far away, then surely
we can make this land all that it should be. If anyone tells you
that America's best days are behind her, they're looking the wrong
way. (Applause.)
Tonight, I come before this House and the American people
with an appeal for renewal. This is not merely a call for new
government initiatives; it is a call for new initiative in
government, in our communities, and from every American to prepare
for the next American century.
America has always led by example. So who among us will
set this example? Which of our citizens will lead us in this next
American century? Everyone who steps forward today -- to get one
addict off drugs, to convince one troubled teenager not to give up on
life, to comfort one AIDS patient, to help one hungry child.
We have within our reach the promise of a renewed
America. We can find meaning and reward by serving some purpose
higher than ourselves -- a shining purpose, the illumination of a
thousand points of light. And it is expressed by all who know the
irresistible force of a child's hand, of a friend who stands by you
and stays there -- a volunteer's generous gesture, an idea that is
simply right.
The problems before us may be different, but the key to
solving them remains the same. It is the individual -- the
individual who steps forward. And the state of our Union is the
union of each of us, one to the other -- the sum of our friendships,
marriages, families, and communities.
We all have something to give. So if you know how to
read, find someone who can't. If you've got a hammer, find a nail.
If you're not hungry, not lonely, not in trouble, seek out someone
who is. Join the community of conscience. Do the hard work of
freedom. And that will define the state of our Union. (Applause.)
Since the birth of our nation, "We the people" has been
the source of our strength. What government can do alone is limited
-- but the potential of the American people knows no limits.
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- 3 -
We are a nation of rock-solid realism and clear-eyed
idealism. We are Americans. We are the nation that believes in the
future. We are the nation that can shape the future. And we've
begun to do just that by strengthening the power and choice of
individuals and families.
Together, these last two years, we've put dollars for
child care directly in the hands of parents instead of bureaucracies.
(Applause.) Unshackled the potential of Americans with disabilities.
(Applause.) Applied the creativity of the marketplace in the service
of the environment, for clean air; and made home ownership possible
for more Americans. (Applause.)
The strength of a democracy is not in bureaucracy. It is
in the people and their communities. In everything we do, let us
unleash the potential of our most precious resource our citizens,
our citizens themselves. We must return to families, communities,
counties, cities, states, and institutions of every kind the power to
chart their own destiny, and the freedom and opportunity provided by
strong economic growth. And that's what America is all about.
(Applause.)
I know tonight in some regions of our country, people are
in genuine economic distress. And I hear them.
Earlier this month, Kathy Blackwell, of Massachusetts,
wrote me about what can happen when the economy slows down, saying,
"My heart is aching, and I think that you should know your people out
here are hurting badly."
I understand. And I'm not unrealistic about the future.
But there are reasons to be optimistic about our economy.
First, we don't have to fight double-digit inflation.
Second, most industries won't have to make big cuts in production
because they don't have big inventories piled up. And third, our
exports are running solid and strong. In fact, American businesses
are exporting at a record rate.
So let's put these times in perspective. Together, since
1981, we've created almost 20 million jobs, cut inflation in half,
and cut interest rates in half.
And, yes, the largest peacetime economic expansion in
history has been temporarily interrupted. But our economy is still
over twice as large as our closest competitor.
We will get this recession behind us and return to growth
soon. (Applause.) We will get on our way to a new record of
expansion and achieve the competitive strength that will carry us
into the next American century.
We should focus our efforts today on encouraging economic
growth, investing in the future, and giving power and opportunity to
the individual. (Applause.)
We must begin with control of federal spending.
(Applause.) That's why I'm submitting a budget that holds the growth
in spending to less than the rate of inflation. And that's why, amid
all the sound and fury of last year's budget debate, we put into law
new, enforceable spending caps so that future spending debates
will mean a battle of ideas, not a bidding war. (Applause.)
Though controversial, the budget agreement finally put
the federal government on a pay-as-you-go plan and cut the growth of
debt by nearly $500 billion. And that frees funds for saving and
job-creating investment.
Now, let's do more. My budget again includes tax-free
family savings accounts; penalty-free withdrawals from IRAs for
first-time home buyers - (applause) -- and to increase jobs and
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- 4 -
growth, a reduced tax for long-term capital gains. (Applause.)
I know there are differences among us (laughter) --
about the impact and the effects of a capital gains incentive. So
tonight, I'm asking the congressional leaders and the Federal Reserve
to cooperate with us in a study, led by Chairman Alan Greenspan, to
sort out our technical differences so that we can avoid a return to
unproductive partisan bickering. (Applause.)
But just as our efforts will bring economic growth now
and in the future, they must also be matched by long-term investments
for the next American century.
That requires a forward-looking plan of action -- and
that's exactly what we will be sending to the Congress. We've
prepared a detailed series of proposals that include:
A budget that promotes investment in America's future --
in children, education, infrastructure, space, and high technology;
legislation to achieve excellence in education --
building on the partnership forged with the 50 governors at the
Education Summit, enabling parents to choose their children's schools
and helping to make America number one in math and science; --
(applause) --
a blueprint for a new national highway system -- a
critical investment in our transportation infrastructure; --
(applause) --
a research and development agenda that includes record
levels of federal investment, and a permanent tax credit to
strengthen private R&D and to create jobs; -- (applause) --
a comprehensive national energy strategy that calls for
energy conservation and efficiency, increased development, and
greater use of alternative fuels; -- (applause) --
a banking reform plan to bring America's financial system
into the 21st century so that our banks remain safe and secure and
can continue to make job-creating loans for our factories, our
businesses and home-buyers.
You know, I do think there has been too much pessimism.
Sound banks should be making sound loans now and interest rates
should be lower, now. (Applause.)
In addition to these proposals, we must recognize that
our economic strength depends on being competitive in world markets.
We must continue to expand American exports. A successful Uruguay
Round of world trade negotiations will create more real jobs and more
real growth for all nations. You and I know that if the playing
field is level, America's workers and farmers can out-work,
out-produce anyone, anytime, anywhere. (Applause.)
And with a Mexican Free Trade Agreement and our
Enterprise for the Americas Initiative, we can help our partners
strengthen their economies and move toward a free trade zone
throughout this entire hemisphere. (Applause.)
The budget also includes a plan of action right here at
home to put more power and opportunity in the hands of the
individual. And that means new incentives to create jobs in our
inner cities, by encouraging investment through enterprise zones. It
also means tenant control and ownership of public housing. Freedom
and the power to choose should not be the privilege of wealth. They
are the birthright of every American. (Applause.)
Civil rights are also crucial to protecting equal
opportunity. (Applause.) Every one of us has a responsibility to
speak out against racism, bigotry, and hate. (Applause.) We will
continue our vigorous enforcement of existing statutes, and I will
MORE
- 5 -
once again press the Congress to strengthen the laws against
employment discrimination without resorting to the use of unfair
preferences. (Applause.)
We're determined to protect another fundamental civil
right freedom from crime and the fear that stalks our cities. The
Attorney General will soon convene a crime summit of our nation's law
enforcement officials. And to help us support them, we need tough
crime control legislation, and we need it now. (Applause.)
And as we fight crime, we will fully implement our
national strategy for combatting drug abuse. Recent data show that
we are making progress, but much remains to be done. We will not
rest until the day of the dealer is over, forever. (Applause.)
Good health care is every American's right and every
American's responsibility. And so we are proposing an aggressive
program of new prevention initiatives -- for infants, for children,
for adults, and for the elderly to promote a healthier America and
to help keep costs from spiralling. (Applause.)
It's time to give people more choice in government, by
reviving the ideal of the citizen politician who comes not to stay,
but to serve. And one of the reasons that there is so much support
across this country for term limitations is that the American people
are increasingly concerned about big-money influence in politics. So
we must look beyond the next election, to the next generation. And
the time has come to put the national interest above the special
interest -- and totally eliminate political action committees.
(Applause.)
And that would truly put more competition in elections,
and more power in the hands of individuals. And where power cannot
be put directly in the hands of the individual, it should be moved
closer to the people. away from Washington.
The federal government too often treats government
programs as if they are of Washington, by Washington, and for
Washington. Once established, federal programs seem to become
immortal.
It's time for a more dynamic program life cycle: Some
programs should increase. Some should decrease. Some should be
terminated. And some should be consolidated and turned over to the
states. (Applause.)
My budget includes a list of programs for potential
turnover totalling more than $20 billion. Working with Congress and
the governors, I propose we select at least $15 billion in such
programs and turn them over to the states in a single consolidated
grant -- fully funded for flexible management by the states.
(Applause.)
The value -- the value of this turnover approach is
straightforward. It allows the federal government to reduce
overhead. It allows states to manage more flexibly and more
efficiently. It moves power and decision-making closer to the
people. And it reinforces a theme of this administration:
appreciation and encouragement of the innovative powers of "States as
Laboratories."
This nation was founded by leaders who understood that
power belongs in the hands of people. And they planned for the
future. And so must we -- here and all around the world.
As Americans, we know that there are times when we must
step forward and accept our responsibility to lead the world away
from the dark chaos of dictators, toward the brighter promise of a
better day.
Almost 50 years ago we began a long struggle against
aggressive totalitarianism. Now we face another defining hour for
MORE
- 6 -
America and the world.
There is no one more devoted, more committed to the hard
work of freedom, than every soldier and sailor, every Marine, airman,
and Coastguardsman every man and woman now serving in the Persian
Gulf. (Applause.) Oh, how they deserve -- (applause) -- and what a
fitting tribute to them.
You see what a wonderful, fitting tribute to them.
Each of them has volunteered volunteered to provide for this
nation's defense -- and now they bravely struggle, to earn for
America, for the world, and for future generations, a just and
lasting peace.
Our commitment to them must be equal to their commitment
to their country. They are truly America's finest. (Applause.)
The war in the Gulf is not a war we wanted. We worked
hard to avoid war. For more than five months we, along with the Arab
League, the European Community, the United Nations, tried every
diplomatic avenue. U.N. Secretary General Perez de Cuellar;
Presidents Gorbachev, Mitterrand, Ozal, Mubarak, and Bendjedid; Kings
Fahd and Hassan; Prime Ministers Major and Andreotti just to name
a few -- all worked for a solution. But time and again, Saddam
Hussein flatly rejected the path of diplomacy and peace.
The world well knows how this conflict began and when:
It began on August 2nd, when Saddam invaded and sacked a small,
defenseless neighbor. And I am certain of how it will end. So that
peace can prevail, we will prevail. (Applause.) Thank you.
Tonight, I am pleased to report that we are on course.
Iraq's capacity to sustain war is being destroyed. Our investment,
our training, our planning all are paying off. Time will not be
Saddam's salvation.
Our purpose in the Persian Gulf remains constant: to
drive Iraq out of Kuwait, to restore Kuwait's legitimate government,
and to ensure the stability and security of this critical region.
Let me make clear what I mean by the region's stability
and security. We do not seek the destruction of Iraq, its culture,
or its people. Rather, we seek an Iraq that uses its great
resources, not to destroy, not to serve the ambitions of a tyrant,
but to build a better life for itself and its neighbors. We seek a
Persian Gulf where conflict is no longer the rule, where the strong
are neither tempted nor able to intimidate the weak.
Most Americans know instinctively why we are in the Gulf.
They know we had to stop Saddam now, not later. They know that this
brutal dictator will do anything; will use any weapon; will commit
any outrage, no matter how many innocents suffer.
They know we must make sure that control of the world's
oil resources does not fall into his hands, only to finance further
aggression. They know that we need to build a new, enduring peace --
based not on arms races and confrontation, but on shared principles
and the rule of law.
And we all realize that our responsibility to be the
catalyst for peace in the region does not end with the successful
conclusion of this war.
Democracy brings the undeniable value of thoughtful
dissent and we've heard some dissenting voices here at home --
some, a handful, reckless -- most responsible. But the fact that all
voices have the right to speak out is one of the reasons we've been
united in purpose and principle for 200 years. (Applause.)
Our progress in this great struggle is the result of
years of vigilance and a steadfast commitment to a strong defense.
Now, with remarkable technological advances like the Patriot missile,
MORE
- 7 -
we can defend against ballistic missile attacks aimed at innocent
civilians.
Looking forward, I have directed that the SDI program be
refocused on providing protection from limited ballistic missile
strikes whatever their source. (Applause.) Let us pursue an SDI
program that can deal with any future threat to the United STates, to
our forces overseas, and to our friends and allies.
The quality of American technology, thanks to the
American worker, has enabled us to successfully deal with difficult
military conditions and help minimize precious loss of life. We have
given our men and women the very best. And they deserve it.
(Applause.)
We all have a special place in our hearts for the
families of our men and women serving in the Gulf. They are
represented here tonight by Mrs. Norman Schwarzkopf. (Applause.) We
are all very grateful to General Schwarzkopf and to all those serving
with him. And I might also recognize one who came with Mrs.
Schwarzkopf - Alma Powell, the wife of the distinguished Chairman of
the Joint Chiefs. (Applause.) And to the families, let me say our
forces in the Gulf will not stay there one day longer than is
necessary to complete their mission. (Applause.)
The courage and success of the RAF pilots, of the
Kuwaiti, Saudi, French, the Canadians, the Italians, the pilots of
Qatar and Bahrain - all are proof that for the first time since
World War II, the international community is united. The leadership
of the United Nations, once only a hoped-for ideal, is now confirming
its founders' vision. (Applause.)
I am heartened that we are not being asked to bear alone
the financial burdens of this struggle. Last year, our friends and
allies provided the bulk of the economic costs of Desert Shield. And
now, having received commitments of over $40 billion for the first
three months of 1991, I am confident they will do no less as we move
through Desert Storm. (Applause.)
But the world has to wonder what the dictator of Iraq is
thinking. If he thinks that by targeting innocent civilians in
Israel and Saudi Arabia, that he will gain advantage, he is dead
wrong. (Applause.) If he thinks that he will advance his cause
through tragic and despicable environmental terrorism, he is dead
wrong. (Applause.) And if he thinks that by abusing the coalition
prisoners of war he will benefit, he is dead wrong. (Applause.)
We will succeed in the Gulf. And when we do, the world
community will have sent an enduring warning to any dictator or
despot, present or future, who contemplates oulaw aggression.
The world can, therefore, seize this opportunity to
fulfill the long-held promise of a new world order, where brutality
will go unrewarded and aggression will meet collective resistance.
Yes, the United States bears a major share of leadership
in this effort. Among the nations of the world, only the United
States of America has both the moral standing and the means to back
it up. We're the only nation on this Earth that could assemble the
forces of peace. This is the burden of leadership and the strength
that has made America the beacon of freedom in a searching world.
This nation has never found glory in war. Our people
have never wanted to abandon the blessings of home and work for
distant lands and deadly conflict. If we fight in anger, it is only
because we have to fight at all. And all of us yearn for a world
where we will never have to fight again.
Each of us will measure within ourselves the value of
this great struggle. Any cost in lives -- any cost is beyond our
power to measure. But the cost of closing our eyes to aggression is
beyond mankind's power to imagine.
MORE
- 8 -
This we do know: Our cause is just. Our cause is moral.
Our cause is right. (Applause.)
Let future generations understand the burden and the
blessings of freedom. Let them say we stood where duty required us
to stand.
Let them know that, together, we affirmed America and the
world as a community of conscience.
The winds of change are with us now. The forces of
freedom are together, united. We move toward the next century more
confident than ever that we have the will at home and abroad to do
what must be done, the hard work of freedom.
May God bless the United States of America. Thank you
very, very much. (Applause.)
END
9:57 P.M. EST
THE WHITE HOUSE
WASHINGTON
January 30, 1991
MEMORANDUM FOR WHITE HOUSE SENIOR STAFF
FROM:
Frederick D. McClure 7m
SUBJECT:
1991 State of the Union Address
I thought you might enjoy this commemorative copy of the
President's 1991 State of the Union Address.
The State of the Union
Address to the
102nd Congress
First Session
President George Bush
January 29, 1991
Washington, D.C.
PRESIDENTIAL ADDRESS:
THE STATE OF THE UNION, 1991
THE CAPITOL
TUESDAY, JANUARY 29, 1991
Mr. President, Mr. Speaker, members of the United States Congress. I come
to this House of the people, to speak to you and all Americans, certain that we
stand at a defining hour.
Halfway around the world, we are engaged in a great struggle in the skies and
on the seas and sands. We know why we're there. We are Americans: part of some-
thing larger than ourselves.
For two centuries, we've done the hard work of freedom. And tonight, we lead
the world in facing down a threat to decency and humanity.
What is at stake is more than one small country, it is a big idea: a new world
order-where diverse nations are drawn together in common cause, to achieve the
universal aspirations of mankind: peace and security, freedom, and the rule of law.
Such is a world worthy of our struggle, and worthy of our children's future.
The community of nations has resolutely gathered to condemn and repel lawless
aggression. Saddam Hussein's unprovoked invasion-his ruthless, systematic rape of
a peaceful neighbor-violated everything the community of nations holds dear. The
world has said this aggression would not stand-and it will not stand. Together, we
have resisted the trap of appeasement, cynicism, and isolation that gives temptation
to tyrants. The world has answered Saddam's invasion with 12 United Nations resolu-
tions, starting with a demand for Iraq's immediate and unconditional withdrawal-
and backed up by forces from 28 countries of six continents. With few exceptions,
the world now stands as one.
The end of the Cold War has been a victory for all humanity. A year and a
half ago, in Germany, I said our goal was a Europe whole and free. Tonight, Germany
is united. Europe has become whole and free-and America's leadership was instru-
mental in making it possible.
Our relationship with the Soviet Union is important, not only to us, but to the
world. That relationship has helped to shape these and other historic changes. But,
like many other nations, we have been deeply concerned by the violence in the
Baltics, and we have communicated that concern to the Soviet leadership.
The principle that has guided us is simple: our objective is to help the Baltic
peoples achieve their aspirations, not to punish the Soviet Union. In our recent discus-
sions with the Soviet leadership, we have been given representations, which, if fulfilled,
would result in the withdrawal of some Soviet forces, a re-opening of dialogue with
the Republics, and a move away from violence. We will watch carefully as the situation
develops. And we will maintain our contact with the Soviet leadership to encourage
continued commitment to democratization and reform.
1
If it is possible, I want to continue to build a lasting basis for U.S.-Soviet coopera-
tion, for a more peaceful future for all mankind.
The triumph of democratic ideas in Eastern Europe and Latin America-and the
continuing struggle for freedom elsewhere around the world-all confirm the wisdom
of our nation's founders.
Tonight, we work to achieve another victory-a victory over tyranny, and savage
aggression.
We in this Union enter the last decade of the 20th Century thankful for our
blessings, steadfast in our purpose, aware of our difficulties, and responsive to our
duties at home and around the world.
For two centuries, America has served the world as an inspiring example of
freedom and democracy. For generations, America has led the struggle to preserve
and extend the blessings of liberty. And today, in a rapidly changing world, American
leadership is indispensable. Americans know that leadership brings burdens, and re-
quires sacrifice.
But we also know why the hopes of humanity turn to us.
We are Americans: we have a unique responsibility to do the hard work of freedom.
And when we do-freedom works. The conviction and courage we see in the Persian
Gulf today is simply the American character in action. The indomitable spirit that
is contributing to this victory for world peace and justice is the same spirit that gives
us the power and the potential to meet our toughest challenges at home.
We are resolute and resourceful. If we can selflessly confront evil for the sake
of good in a land so far away, then surely we can make this land all that it should
be.
If anyone tells you America's best days are behind her, they're looking the wrong
way.
Tonight, I come before this House, and the American people, with an appeal
for renewal. This is not merely a call for new government initiatives, it is a call
for new initiative in government, in our communities, and from every American—
to prepare for the next American century.
America has always led by example. So who among us will set this example?
Which of our citizens will lead us in this next American century? Everyone who
steps forward today, to get one addict off drugs. To convince one troubled teenager
not to give up on life
...
to comfort one AIDS patient
to help one hungry
child.
We have within our reach the promise of a renewed America. We can find meaning
and reward by serving some purpose higher than ourselves-a shining purpose, the
illumination of a thousand points of light. It is expressed by all who know the irresistible
force of a child's hand, of a friend who stands by you and stays there-a volunteer's
generous gesture, an idea that is simply right.
The problems before us may be different, but the key to solving them remains
the same: it is the individual-the individual who steps forward. And the state of
2
our Union, is the union of each of us, one to the other: the sum of our friendships,
marriages, families, and communities.
We all have something to give. So if you know how to read, find someone
who can't. If you've got a hammer, find a nail. If you're not hungry, not lonely,
not in trouble-seek out someone who is.
Join the community of conscience. Do the hard work of freedom. That will define
the state of our union.
Since the birth of our nation, "We the people" has been the source of our
strength. What government can do alone is limited-but the potential of the American
people knows no limits.
We are a nation of rock-solid realism and clear-eyed idealism. We are Americans:
We are the nation that believes in the future. We are the nation that can shape
the future.
And we've begun to do just that-by strengthening the power and choice of
individuals, and families.
Together, these last two years, we've put dollars for child care directly in the
hands of parents, instead of bureaucracies. Unshackled the potential of Americans
with disabilities. Applied the creativity of the marketplace in the service of the environ-
ment, for clean air. And made home-ownership possible for more Americans.
The strength of a democracy is not in bureaucracy. It is in the people, and
their communities. In everything we do, let us unleash the potential of our most
precious resource-our citizens. We must return to families, communities, counties,
cities, states, and institutions of every kind, the power to chart their own destiny,
and the freedom and opportunity provided by strong economic growth. That's what
America is all about.
I know, tonight, in some regions of our country, people are in genuine economic
distress. I hear them.
Earlier this month, Kathy Blackwell of Massachusetts wrote me about what can
happen when the economy slows down, saying "My heart is aching, and I think
that you should know-your people out here are hurting badly."
I understand. And I'm not unrealistic about the future. But there are reasons
to be optimistic about our economy. First, we don't have to fight double digit inflation.
Second, most industries won't have to make big cuts in production, because they
don't have big inventories piled up. And third, our exports are running solid and
strong. In fact, American businesses are exporting at a record rate.
So let's put these times in perspective. Together, since 1981, we've created
almost 20 million jobs, cut inflation in half, and cut interest rates in half. Yes, the
largest peacetime economic expansion in history has been temporarily interrupted.
But our economy is still over twice as large as our closest competitor.
We will get this recession behind us, and return to growth-soon. We will get
on our way to a new record of expansion, and achieve the competitive strength
that will carry us into the next American century.
3
We should focus our efforts today on encouraging economic growth, investing
in the future, and giving power and opportunity to the individual.
We must begin with control of federal spending. That's why I'm submitting a
budget that holds the growth in spending to less than the rate of inflation. And that's
why, amid all the sound and fury of last year's budget debate, we put into law
new, enforceable spending caps-so that future spending debates will mean a battle
of ideas, not a bidding war.
Though controversial, the budget agreement finally put the Federal Government
on a pay-as-you-go plan-and cut the growth of debt by nearly 500 billion dollars.
And that frees funds for saving and job-creating investment.
Now, let's do more. My budget again includes tax-free family savings accounts;
penalty-free withdrawals from I.R.A.'s for first-time home-buyers; and, to increase jobs
and growth, a reduced tax for long-term capital gains.
I know there are differences among us about the impact and the effects of a
capital gains incentive. So tonight, I am asking the Congressional leaders and the
Federal Reserve to cooperate with us in a study-led by Chairman Alan Greenspan-
to sort out our technical differences so that we can avoid a return to unproductive
partisan bickering.
But just as our efforts will bring economic growth now, and in the future, they
must also be matched by long term investments for the next American century.
That requires a forward looking plan of action-and that's exactly what we will
be sending to the Congress. We have prepared a detailed series of proposals, that
include:
A budget that promotes investment in America's future-in children,
education, infrastructure, space, and high technology.
Legislation to achieve excellence in education-building on the
partnership forged with the 50 governors at the Education Summit-
enabling parents to choose their children's schools-and helping to
make America #1 in math and science.
A blueprint for a new National Highway System-a critical invest-
ment in our transportation infrastructure.
A research and development agenda that includes record levels
of federal investment, and a permanent tax credit to strengthen pri-
vate R & D, and create jobs.
A comprehensive National Energy Strategy that calls for energy
conservation and efficiency, increased development, and greater use
of alternative fuels.
A banking reform plan to bring America's financial system into
the 21st Century-so that our banks remain safe and secure, and
can continue to make job-creating loans for our factories, businesses
and home-buyers. I do think there has been too much pessimism.
4
Sound banks should be making more sound loans, now-and interest
rates should be lower, now.
In addition to these proposals, we must recognize that our economic strength
depends upon being competitive in world markets. We must continue to expand Ameri-
ca's exports. A successful Uruguay Round of world trade negotiations will create
more real jobs, and more real growth-for all nations. You and I know, that if the
playing field is level, America's workers and farmers can out-work and out-produce
anyone, anytime, anywhere.
And with a Mexican Free Trade Agreement, and our Enterprise for the Americas
Initiative, we can help our partners strengthen their economies, and move toward
a free trade zone throughout this entire hemisphere.
The budget also includes a plan of action right here at home to put more power
and opportunity in the hands of the individual. That means new incentives to create
jobs in our inner cities, by encouraging investment through enterprise zones. It also
means tenant control and ownership of public housing. Freedom and the power to
choose should not be the privilege of wealth. They are the birthright of every American.
Civil Rights are also crucial to protecting equal opportunity. Every one of us
has a responsibility to speak out against racism, bigotry, and hate. We will continue
our vigorous enforcement of existing statutes, and I will once again press the Congress
to strengthen the laws against employment discrimination without resorting to the
use of unfair preferences.
We're determined to protect another fundamental civil right-freedom from crime,
and the fear that stalks our cities. The Attorney General will soon convene a Crime
Summit of our nation's law enforcement officials. And to help us support them, we
need tough crime control legislation, and we need it now.
As we fight crime, we will fully implement our National Strategy for Combatting
Drug Abuse. Recent data show we are making progress, but much remains to be
done. We will not rest until the day of the dealer is over, forever.
Good health care is every American's right, and every American's responsibility.
So we are proposing an aggressive program of new prevention initiatives-for infants,
for children, for adults, and for the elderly-to promote a healthier America, and
to help keep costs from spiralling.
It's time to give people more choice in government, by reviving the ideal of
the citizen politician who comes not to stay, but to serve. One of the reasons there
is so much support for term limitations is that the American people are increasingly
concerned about big-money influence in politics. We must look beyond the next elec-
tion, to the next generation. The time has come to put the national interest above
the special interest-and totally eliminate Political Action Committees. That would truly
put more competition in elections, and more power in the hands of individuals. And
where power cannot be put directly in the hands of the individual, it should be moved
closer to the people-away from Washington.
The Federal Government too often treats government programs as if they are
of Washington, by Washington, and for Washington. Once established, federal pro-
grams seem to become immortal.
5
It's time for a more dynamic program life cycle: Some programs should increase.
Some should decrease. Some should be terminated. And some should be consolidated
and turned over to the States.
My budget includes a list of programs for potential turn-over totalling more than
$20 billion. Working with Congress and the Governors, I propose we select at least
$15 billion in such programs and turn them over to the States in a single consolidated
grant-fully funded-for flexible management by the States.
The value of this turn-over approach is straightforward. It allows the Federal
Government to reduce overhead. It allows States to manage more flexibly and more
efficiently. It moves power and decision-making closer to the people. And it reenforces
a theme of this Administration: appreciation and encouragement of the innovative
power of "States as Laboratories." This nation was founded by leaders who understood
that power belongs in the hands of people. They planned for the future. And so
must we-here, and around the world.
As Americans, we know there are times when we must step forward, and accept
our responsibility to lead the world away from the dark chaos of dictators, toward
the brighter promise of a better day.
Almost 50 years ago we began a long struggle against aggressive totalitarianism.
Now we face another defining hour for America and the world.
There is no one more devoted, more committed to the hard work of freedom,
than every soldier and sailor, every Marine, airman and Coastguardsman-every man
and woman now serving in the Persian Gulf.
Each of them has volunteered to provide for this nation's defense-and now
they bravely struggle, to earn for America, for the world, and for future generations,
a just and lasting peace.
Our commitment to them must be the equal of their commitment to their country.
They are truly America's finest.
The war in the Gulf is not a war we wanted. We worked hard to avoid war.
For more than five months we, along with the Arab League, the European Community,
and the United Nations, tried every diplomatic avenue. U.N. Secretary General Perez
de Cuellar; Presidents Gorbachev, Mitterand, Ozal, Mubarak and Bendjedid; Kings
Fahd and Hassan; Prime Ministers Major and Andreotti-just to name a few-all
worked for a solution. But time and again, Saddam Hussein flatly rejected the path
of diplomacy and peace.
The world well knows how this conflict began, and when: It began on August
2nd, when Saddam invaded and sacked a small, defenseless neighbor. And I am
certain of how it will end. So that peace can prevail, we will prevail.
Tonight, I'm pleased to report that we are on course. Iraq's capacity to sustain
war is being destroyed. Our investment, our training, our planning-all are paying
off. Time will not be Saddam's salvation.
Our purpose in the Persian Gulf remains constant: to drive Iraq out of Kuwait,
to restore Kuwait's legitimate government, and to ensure the stability and security
of this critical region.
6
Let me make clear what I mean by the region's stability and security. We do
not seek the destruction of Iraq, its culture, or its people. Rather, we seek an Iraq
that uses its great resources, not to destroy, not to serve the ambitions of a tyrant,
but to build a better life for itself, and its neighbors. We seek a Persian Gulf where
conflict is no longer the rule, where the strong are neither tempted nor able to intimidate
the weak.
Most Americans know instinctively why we are in the Gulf. They know we had
to stop Saddam now, not later. They know this brutal dictator will do anything; will
use any weapon; will commit any outrage, no matter how many innocents must suffer.
They know we must make sure that control of the world's oil resources does
not fall into his hands, only to finance further aggression. They know that we need
to build a new, enduring peace-based not on arms races and confrontation, but
on shared principles, and the rule of law.
And we all realize that our responsibility to be the catalyst for peace in the
region does not end with the successful conclusion of this war.
Democracy brings the undeniable value of thoughtful dissent-and we have heard
some dissenting voices here at home-some reckless, most responsible. But the fact
that all voices have the right to speak out is one of the reasons we've been united
in purpose and principle for 200 years.
Our progress in this great struggle is the result of years of vigilance, and a
steadfast commitment to a strong defense. Now, with remarkable technological ad-
vances like the Patriot missile, we can defend against ballistic missile attacks aimed
at innocent civilians.
Looking forward, I have directed that the SDI program be refocused on providing
protection from limited ballistic missile strikes-whatever their source. Let us pursue
an SDI program that can deal with any future threat to the United States, to our
forces overseas, and to our friends and allies. The quality of American technology,
thanks to the American worker, has enabled us to successfully deal with difficult
military conditions, and help minimize loss of life. We have given our men and women
the very best. And they deserve it.
We all have a special place in our hearts for the families of our men and women
serving in the Gulf. They are represented here tonight, by Mrs. Norman Schwarzkopf.
We are very grateful to General Schwarzkopf, and to all those serving with him.
And to the families, let me say, our forces in the Gulf will not stay there one day
longer than is necessary to complete their mission.
The courage and success of the RAF pilots-of the Kuwaiti, Saudi, French-
the Canadians, Italians-the pilots of Qatar and Bahrain-all are proof that for the
first time since World War II, the international community is united. The leadership
of the United Nations, once only a hoped-for ideal, is now confirming its founders'
vision.
I am heartened that we are not being asked to bear alone the financial burden
of this struggle. Last year, our friends and allies provided the bulk of the economic
costs of Desert Shield, and having now received commitments of over $40 billion
7
for the first three months of 1991, I am confident they will do no less as we move
through Desert Storm.
But the world has to wonder what the dictator of Iraq is thinking. If he thinks
that by targeting innocent civilians in Israel and Saudi Arabia, that he will gain advan-
tage-he is dead wrong. If he thinks that he will advance his cause through tragic
and despicable environmental terrorism-he is dead wrong. And if he thinks that
by abusing the coalition POWs, he will benefit-he is dead wrong.
We will succeed in the Gulf. And when we do, the world community will have
sent an enduring warning to any dictator or despot, present or future, who contemplates
outlaw aggression.
The world can therefore seize this opportunity to fulfill the long-held promise
of a new world order-where brutality will go unrewarded, and aggression will meet
collective resistance.
Yes, the United States bears a major share of leadership in this effort. Among
the nations of the world, only the United States of America has had both the moral
standing, and the means to back it up. We are the only nation on this earth that
could assemble the forces of peace.
This is the burden of leadership-and the strength that has made America the
beacon of freedom in a searching world.
This nation has never found glory in war. Our people have never wanted to
abandon the blessings of home and work, for distant lands and deadly conflict. If
we fight in anger, it is only because we have to fight at all. And all of us yearn
for a world where we will never have to fight again.
Each of us will measure, within ourselves, the value of this great struggle. Any
cost in lives is beyond our power to measure. But the cost of closing our eyes
to aggression is beyond mankind's power to imagine.
This we do know: Our cause is just. Our cause is moral. Our cause is right.
Let future generations understand the burden and the blessings of freedom. Let
them say, we stood where duty required us to stand.
Let them know that together, we affirmed America, and the world, as a community
of conscience.
The winds of change are with us now. The forces of freedom are united. We
move toward the next century, more confident than ever, that we have the will at
home and abroad, to do what must be done-the hard work of freedom.
May God bless the United States of America.
8
THE WHITE HOUSE
WASHINGTON
January 31, 1991
MEMORANDUM FOR MARLIN FITZWATER
FROM:
JOHN UNDELAND & SUSAN TYNDALL, SOT NEWS SUMMARY
RE:
CONGRESSIONAL REACTION TO
THE STATE OF THE UNION ADDRESS
SEN. MITCHELL
"The president's way (to bring the deficit down and jobs home) is
to give huge tax cuts to those with incomes over $200,000 a year,"
Mitchell said in a Democratic response. "We disagree."
(Reuter, 1/30)
"As critical as the Gulf conflict is, the other business of the
nation won't wait," Mitchell said in the Democratic response. "The
president says he seeks a new world order. We ask him to join us
in putting our own house in order. We have a crisis abroad. But
we also have a crisis here at home." About the gulf, Mitchell
said: "Now that war has begun, we'll work to see that it's swift
and decisive, with the least possible loss of life." Mitchell said
the nation's first domestic priority must be economic growth to end
the current recession and the first step for growth was a national
energy policy.
(AP, 1/30)
Mitchell said that Democrats support the war against Iraq, but he
accused President Bush of ignoring injustice elsewhere in the world
as well as needs at home. "We cannot oppose repression in one
place and overlook it in another, Mitchell said in the Democratic
response. "Students massacred in China, priests murdered in
Central America, demonstrators gunned down in Lithuania -- these
acts of violence are as wrong as Iraqi soldiers killing civilians,"
he said. Mitchell reminded the nation that through the 1980s
Republican administrations helped build Saddam Hussein's army. "We
can't repeat that kind of mistake," he said. And while Bush
"says he seeks a new world order," Mitchell said, "we also have
a crisis here at home. We ask him to join us in putting our own
house in order," he said, with the first priority a program for
economic growth.
(AP, 1/29)
REP. FOLEY
Foley agreed with other Democrats that the cap gains proposal
probably won't fly. "I don't think tax reduction is a good idea
at this very moment," he said on NBC's "Today."
(AP, 1/30)
-erom-
-2-
FOLEY (continued)
President Bush's promise of victory against Iraq drew cheers, but
his State of the Union address left Democrats spoiling for a fight
over his domestic agenda. "There need to be some things that are
dealt with even while we're fighting a war," Foley said today.
"We're clearly going to be united in the sense of bringing the war
to an end," Foley said on NBC's "Today."
(AP, 1/30)
REP. GEPHARDT
Gephardt promised cooperation from Congress "to turn his rhetoric
into action so that we fight just as hard for our troops when they
come home as they are fighting for us overseas." But, he said,
"It will be made impossible if his only real prescription for the
economy is cutting capital gains taxes for the wealthiest families
while leaving the soldiers' families to fend for themselves."
(AP, 1/30)
"The administration can do what it wants on capital gains. But
it's a mistake, it's wrong."
(Miami Herald, 1/30)
"We don't need SDI, we never did,' said Gephardt. He suggested the
Patriot should be upgraded rather than millions of dollars spent
on a strategic defense system.
(Reuter, 1/30)
Gephardt said the job [to prepare the public for a possibly bloody
war] is not the president's alone. "We all have a responsibility
to explain to the American people the costs, and it's not going to
come without sacrifice."
(AP, 1/30)
SEN. NUNN
Nunn said Bush's comments on the gulf conflict were "unifying and
uplifting."
(Washington Post, 1/30)
REP. ASPIN
"I think we have expectations that are unrealistic," said Aspin.
The war so far has been "essentially devoid of casualties,"
creating "a standard impossible to match." The president, said
Aspin, needs to prepare Americans for increased losses before a
full-scale ground war begins.
(AP, 1/30)
REP. PANETTA
Panetta said Bush in his speech "displays greater authority in
confronting the war effort than in meeting the serious economic and
domestic needs within our society." Panetta complained Bush
offered little evidence that enough resources would be committed
to the nation's problems.
(Reuter, 1/30)
Referring to Bush's proposal of Fed study of cap gains, Panetta
said: "It's going into the deep, dark caverns of a commission
[But] if the President decides to push it, then clearly Democrats
are prepared to respond in kind" [implying a tax on millionaires].
(Wall Street Journal, 1/31)
-
-3-
REP. GRAY
"The bottom line is: It appears the administration is firing real
bullets at Saddam Hussein and shooting blanks at home."
(Washington Post, 1/30)
REP. ROSTENKOWSKI
"The chairman has no interest in seeing the capital-gains issue
surface this year," said Patrick Jones, a spokesman for
Rostenkowski.
(AP, 1/30)
SEN. BENTSEN
"The president talked about capital gains in a throwaway line,
which should tell you there are divisions within the administration
on this one, said Bentsen. "I frankly don't think capital gains
is going any place."
(AP, 1/30)
Bentsen said he was hopeful -- but skeptical -- about Bush's call
for a "comprehensive national energy strategy. We have been
promised an energy policy time and again over the past decade only
to be let down each time."
(Dallas Morning News, 1/30)
Bentsen shared Mitchell's disappointment with the nation's health
care policy, decrying "the president's failure to focus more on the
serious problem of skyrocketing health care costs."
(Houston Chronicle, 1/30)
SEN. BIDEN
"The only criticism that I would have is that tonight would have
been the place where he prepared the American people for the
sacrifices that would have to be made in a land war." (AP, 1/30)
SEN. KENNEDY
Kennedy commended the president for including a "strong emphasis"
on domestic policy in the speech and said he was "encouraged" that
Bush talked about domestic problems. "We need to devote as much
energy and commitment to challenges at home, such as illness,
ignorance, injustice and poverty, as we are to the Persian Gulf.
Support for our troops also means support for the kind of America
they are fighting for."
(Boston Globe, 1/30)
SEN. KERRY
Kerry applauded the part of the speech dealing with the war, but
said, "The domestic part of the speech was almost unreal. It
lacked a kind of real commitment to the problems of people. I've
heard for seven years talk about making the nation No. 1 in math
and science, but year after year they don't put money in the
education budget."
(Boston Globe, 1/30)
-елош-
-4-
REP. MAVROULES
Bush touched on some good ideas, like tax credits for research and
development and enterprise zones, "but now we're going to have to
find out where the money will come from and how it will affect the
deficit.' Otherwise, Bush "grasped the emotion of the nation. It
was a little picker-upper."
(Boston Globe, 1/30)
REP. ESPY
Espy said Bush "spent more time identifying the domestic agenda
than I thought he would, and I was pleased by that."
(Washington Post, 1/30)
SEN. JOHNSTON
"It was a call for unity in the Persian Gulf War. All the rest was
background noise.'
(Washington Post, 1/30)
REP. FAZIO
Fazio faulted Bush for failing to prepare the nation for what could
be protracted, bloody war. "He wanted to retain the optimism that
this is going to be short
The opportunity was lost to talk
about the difficult days ahead." [At the same time] Fazio praised
Bush's efforts to convey a sense of national purpose. "It was an
important opportunity to unify the country and he did it very
well."
(Washington Post, 1/30)
REP. JOHN LEWIS
"He did not prepare the American people for a long war or for the
possibility of many, many casualties," said Lewis.
(AP, 1/30)
Lewis blasted the president's call for a civil rights legislation.
"He vetoed the bill in 1990. We will send him the same bill. I
think he is trying to talk out of both sides of his mouth without
any sense of vision or blueprint for the 21st century. And on the
question of the Persian Gulf, he didn't prepare the Americans for
a long war. The applause was for the troops, not for him, but for
the young men and women in the gulf."
(Boston Globe, 1/30)
SEN. BRADLEY
Bradley said Bush's renewed proposal to cut taxes on capital gains
"won't make health care or housing more affordable."
(USA Today, 1/30)
Bradley said the nation was properly focused on bringing the war
to a successful end. "But I don't want to see the men and women
serving in the gulf come home to find more burdens facing their
families, higher taxes, a deeper recession, and a government that
has continued to neglect very real human needs."
(Boston Globe, 1/30)
-елош-
-5-
SEN. ADAMS
Adams said Bush had led the nation into war under the false notion
that it would be quick and relatively easy. "He was misleading
people. I think it was a mistake" not to prepare the country for
what could be "a very cataclysmic event."
(AP, 1/30)
SEN. HARKIN
Bush "never said anything" about the true costs of the war, said
Harkin. "I believe the president set himself up for a great fall"
by promising a long list of costly domestic policy initiatives in
his speech, "then saying we're going to pay for this war....
Now
that's a dead end, and he's going down the road 100 miles an hour.'
(AP, 1/30)
SEN. GORE
Gore, who supported giving Bush the authority to take the nation
to war, said the State of the Union speech would not have been an
appropriate place for such somber messages [as Harkin & Adams
called for]. Bush properly used it as "the place to define our
goals and purposes" and did a good job at that, he said.
(AP, 1/30)
REP. OBEY
Obey said the emphasis on the Persian Gulf war "shows how difficult
it will be to focus the government's attention on the fact that
there are a lot of Americans in trouble here at home. A year from
now, the American people will have the right to ask: Did our
government try to do as much for Americans as it did for Kuwaitis?"
(Philadelphia Inquirer, 1/30)
REP. DINGELL
"I was very much disappointed about his remarks on domestic
programs. I considered it almost entirely recycled legislation
...it has about the same appetizing qualities as last week's
lunch."
(Detroit News, 1/30)
REP. COLLINS
"I came because I didn't want to miss the experience of my first
State of the Union address, and now I'm disappointed because it's
more of the same. "
(Detroit News, 1/30)
SEN. ROBB
Robb said that Bush succeeded in reinforcing the will of Americans
to stand behind the troops. "But the rest of the speech looked
like an attempt to include something on just about any subject that
could be mentioned. There were a lot of buzzwords without much
sense of purpose or program to them. I don't think anyone has any
real expectations for much of an agenda."
(Washington Post, 1/31)
-елош-
-6-
REP. MOAKLEY
"There are two wars going on. There is a war going on over there
and a war going on in this country
He gave drugs one line and
education one line. He didn't go into specifics on the domestic
problems." Moakley also said Democrats will fight any effort to
cut the capital gains tax.
(Boston Globe, 1/30)
REP. JENKINS
Cap gains cut backer Jenkins interpreted the call for a study as
a way to shelve the issue. "Since they've asked for a study, it
appears to me that takes it off the front burner."
(Wall Street Journal, 1/31)
SEN. GRAHAM
Cap gains cut advocate Graham: "It's not a very high probability."
(Wall Street Journal, 1/31)
SEN. SARBANES
"I think it's important that the president put forth a domestic
agenda, although I don't think it truly came to grips with the
problems we face."
(Baltimore Evening Sun, 1/30)
SEN. MIKULSKI
Mikulski said Bush offered "no clear anti-recession plan. I am
absolutely worried to death that the economy is going to be one of
the casualties of war." Mikulski criticized Bush for not speaking
more strongly about the Soviet Union's repression of the Baltics.
(Baltimore Evening Sun, 1/30)
Mikulski said the failure to address domestic problems will have
serious consequences long after the Persian Gulf war is over.
"When our guys and gals come back from the desert they want a job,
they want their kids to be in good schools, and they want their
streets to be safe. You can't do that by good intentions."
(Washington Post, 1/31)
REP. CARDIN
"I particularly appreciated that he struck a balance between
national and international [concerns]."
(Baltimore Evening Sun, 1/30)
REP. MCMILLEN
"I think it was one of his best orations for making his case for
being in the Persian Gulf."
(Baltimore Evening Sun, 1/30)
REP. GEREN
Geren expressed dismay about Bush's vague prescription for a short
recession. "We have been living with recession in Texas for five
years. I don't know what he thinks is short or long."
(Dallas Morning News, 1/30)
-more-
-7-
REP. ATKINS
"I think the Kathy Blackwells who don't have health insurance or
who are struggling to pay for a mortgage deserve more than the
warmed-over nostrums that the president gave."
(Boston Globe, 1/30)
REP. RANGEL
Although Bush won standing applause for his war statements, Rangel
remained seated when Bush declared, "Our cause is right.'
(Reuter, 1/30)
REP. CONYERS
"The president has locked himself in his war room, leaving our
domestic needs banging at the door. There is ample money to fight
foreign wars or to bail out the savings and loans, but there are
only scarce resources to restore our cities and our people's hopes.
We are losing the fight to give our troops opportunities when they
come home from the war.
(AP, 1/29)
REPUBLICANS
SEN. DOLE
Dole praised Bush for striking the right tone in his address.
President Bush had his priorities right tonight. This was no time
for an ordinary state of the union, it was really time for a state
of unity message," he said. "We'll have plenty of time to roll
up our sleeves and tackle the serious domestic agenda he
outlined."
(AP, 1/30)
Dole called the speech "what our troops expected to hear from their
commander in chief
The president properly left politics at
home and put national unity first."
(USA Today, 1/30)
REP. GINGRICH
Gingrich said he liked what he heard from Bush, even on domestic
issues. "I'm not sure that some conservatives will be happy under
any circumstances. If you look hard enough, there will be reasons
it isn't good enough. But it was a pretty good speech."
(Washington Post, 1/31)
"I think he was quite clear that freedom is not cost-free. He
talked about the danger of dictators, of losing lives. I thought
he was quite clear."
(AP, 1/29)
REP. MICHEL
Michel said, "There's no question but that the regular domestic
program tends to get somewhat downgraded because the prosecution
of the war is paramount for all of us." At the same time, Michel
added that the president made the point that despite the war,
"Life goes on, the business of government goes on." (AP, 1/30)
-
-8-
SEN. GRAMM
Gramm said the speech was "a powerful and visionary message that
set the Middle East conflict in context of the America's
responsibility in a new world order." Gramm called Bush's
bipartisan approach to a renewed proposal for capital gains tax
cuts "an excellent way to try and find a way around Democratic
opposition."
(Houston Chronicle, 1/30)
Gramm pronounced the president's address a skillful marriage of
foreign and domestic concerns. "Trying to get a balance between
the two is very difficult. He's achieved it." Gramm said the
address was "a powerful speech. It's a visionary speech."
(Dallas Morning News, 1/30
SEN. SIMPSON
Congressional Republicans plan to push ahead with President Bush's
proposed capital-gains tax cut despite stiff opposition from
Democratic leaders. "If you have the votes you'll eventually get
something passed,' said Simpson. He noted 66 House Democrats voted
for the cut last year and predicted 12 to 15 Democratic senators
will support it this year.
(AP, 1/30)
SEN. COCHRAN
"The majority leader and other Democrats are trashing the president
for being a Republican. They're taking cheap shots that he doesn't
deserve."
(Baltimore Sun, 1/30)
REP. ARMEY
Armey said he was impressed by the foreign policy part of the
speech. "He just as well could have phoned in the rest of it." "
(Washington Post, 1/31)
REP. JERRY LEWIS
"The bipartisan support indicates that the president will get the
backing of the Congress he needs."
(USA Today, 1/30)
REP. VANDER JAGT
Referring to Bush's call for a cap gains tax cut, Vander Jagt said:
"It is a very difficult, uphill fight."
(Wall Street Journal, 1/31)
REP. ROHRABACHER
"Until we see the follow-through and the implementation, he's not
back in the good graces, not only of conservatives but of most
Republicans" who oppose tax increases. Rohrabacher said he did
like the speech itself.
(Washington Post, 1/31)
REP. LOWERY
Conservative Republicans appeared especially delighted with Bush's
domestic proposals. Lowery called them "completely unifying for
House Republicans. It's a growth agenda."
(Washington Post, 1/30)
-елош-
-9-
REP. BARTLETT
"It was a great speech. It was George Bush's finest. It was the
right mix. He said what needed to be said about the war, but he
also devoted a great deal of attention to the domestic side."
(Dallas Morning News, 1/30)
SEN. DOMENICI
"The thing he did, and we helped him to do it, is he said we are
united behind him to see that this war is won and that we are
behind our armed forces."
(Dallas Morning News, 1/30)
Domenici praised the President's suggestion that some unspecified
federal spending programs be terminated. "For the first time, we
may get a priority debate."
(Washington Post, 1/30)
REP. PURSELL
"The Democrats want to keep spending and building the federal
bureaucracy, and he was saying throughout the whole speech, let's
terminate $15 billion to $20 billion in programs here at the
federal level and return government to the people. That was lined
throughout that speech and they don't pick that up.
(Detroit News, 1/30)
REP. MORELLA
"Given the backdrop of war, this has got to be one of the most
difficult speeches he ever made. It was necessary he concentrate
on the Middle East situation. He mentioned domestic issues more
than I thought he would, albeit they were one-liners. I think it
was an effective speech thematically, not with specificity."
(Washington Post, 1/31)
REP. FIELDS
Fields called the speech "excellent. I have never seen anybody so
cool. It shows we have a president who is a great leader."
(Houston Chronicle, 1/30)
REP. LAMAR SMITH
Smith found the speech "all-encompassing, including a number of
domestic policy initiatives as well as a report on the state of
foreign affairs. I thought it was a good balance."
(Houston Chronicle, 1/30)
###
THE WHITE HOUSE
Office of the Press Secretary
EMBARGOED FOR RELEASE
AND WIRE TRANSMISSION
UNTIL 9:00 PM (EST)
TUESDAY, JANUARY 29, 1991
THE PRESIDENT'S STATE OF THE UNION ADDRESS
FACT SHEET
The President's 1991 State of the Union address discussed:
A New World Order
Preparing for the Next American Century
The War in the Gulf
The President explained that he came to speak to the Congress
and all Americans "certain that we stand at a defining hour."
I. A NEW WORLD ORDER
A. Peace and the Rule of Law
The President declared that what is at stake in the Persian
Gulf is more than just the independence of Kuwait. It is a new
world order where diverse nations are brought together to give
permanence to the universal aspirations of mankind:
Peace and security;
Freedom; and
The rule of law.
The world has "resisted the trap of appeasement, cynicism, and
isolation" and is united in demanding Iraq's immediate and
unconditional withdrawal from Kuwait. We are working to
achieve victory over tyranny and lawless aggression. America
has "a unique responsibility to do the hard work of freedom."
-2-
B. Constructive Change
The President noted that "the end of the Cold War has been a
victory for all humanity Germany is united. Europe has
become whole and free -- and America's leadership was
instrumental in making it possible."
C. U.S.-Soviet Relations
The President stated that "our relationship with the Soviet
Union is important, not only to us, but to the world." It has
contributed to positive, historic change.
The President also noted that "like many other nations, we have
been deeply concerned by the violence in the Baltics.' The
President stated that in discussions with the Soviet leadership
"we have been given representations, which, if fulfilled, would
result in the withdrawal of some Soviet forces, a reopening of
dialogue with the Republics, and a move away from violence."
We will watch carefully as the situation develops; we will also
maintain our contacts with Soviet leaders to encourage
democratization and reform.
II. PREPARING FOR THE NEXT AMERICAN CENTURY
The President asserted that the spirit that is winning a
victory for world peace and justice in the Persian Gulf is "the
same spirit that gives us the power and the potential to meet
our toughest challenges at home." The President called for
"new initiative in government, in our communities, and from
every American, to prepare for the next American century."
The President encouraged all Americans to join the "community
of conscience", asserting that "we have within our reach the
promise of a renewed America." He said "we can find meaning
and reward by serving some purpose higher than ourselves."
The President called for "strengthening the power and freedom
of choice of individuals and families." He declared that "the
strength of a democracy is not in bureaucracy," but "in the
people and their communities." The President called for the
unleashing of "the potential of our most precious resource --
our citizens." This should be done by returning to "families,
communities, counties, cities, states, and institutions of
every kind, the power to chart their own destiny."
-3-
A.
Encouraging Economic Growth
The President explained that he understands the genuine
economic distress experienced by many Americans. He
offered three reasons to be optimistic about the economy:
-
Inflation is low;
-
Inventories are low; and
-
Exports are strong.
The President expressed confidence that "we will get this
recession behind us, and return to growth -- soon."
Controlling Federal Spending and Enforcing the Budget
Agreement
The President declared that strong economic growth
requires control of Federal spending. He will transmit a
budget that holds the growth in spending to less than the
rate of inflation.
The budget agreement put the Federal government on a pay-
as-you-go plan and cut the growth of debt by nearly $500
billion.
Encouraging Savings and Investment
The President explained that the budget agreement helped
free private funds for savings and job-creating
investment.
In addition, the President announced that his budget again
includes:
Tax-free family savings accounts;
Penalty-free withdrawals from IRAs for first-
time home buyers; and
A strengthened long-term capital gains
incentive.
He also asked congressional leaders, the Administration,
and the Federal Reserve to cooperate in a study, led by
Federal Reserve Chairman Alan Greenspan, to reach
technical agreement on the budgetary and other economic
effects of a strengthened capital gains incentive.
-4-
B.
Investing in the Future
The President said that we must match incentives for
economic growth today with long-term investments for the
next American century.
Budget Priorities
The President indicated that his FY 1992 budget priorities
will include promoting investments in children, education,
infrastructure, space, and high technology.
Strengthening Education
The President will propose a new Educational Excellence
Act which contains strategic initiatives to improve the
learning achievement of all Americans and to restructure
the nation's educational system. Initiatives in the
Educational Excellence Act will:
Stimulate fundamental reform and restructure our
education system through promoting educational
choice and alternative certification for
teachers and principals.
Promote local control and innovation in
education by providing increased flexibility in
funding at the Federal and state levels in
exchange for enhanced accountability.
Assist educators in their mission to improve
student performance by: rewarding schools that
demonstrate improved achievement among students;
rewarding excellent teachers; and providing
innovation in training school administrators.
Provide incentives to school districts to design
and implement innovative approaches to
mathematics and science education; enhance the
endowments of Historically Black Colleges and
Universities; and contribute to improving
literacy.
-5-
Strengthening Transportation Infrastructure
The President believes a strong highway system is a
critical investment for our economic success. He
indicated that he would shortly outline the details of a
new National Highway System managed in partnership with
the States.
Enhancing Research and Development
To strengthen our research and development capability and
economic competitiveness the President will propose:
A record Federal budget commitment to science
and expanding the frontiers of knowledge,
including basic research and making government
research more available to the private sector
for speedier commercialization;
Increased support for generic or enabling
technologies at the pre-competitive stage of R&D
in such areas as high-performance computing, new
energy technologies, and advanced manufacturing
and materials; and
Making permanent the R&E tax credit.
Reducing Energy Vulnerability
The President will soon present a comprehensive National
Energy Strategy that calls for energy conservation and
efficiency, increased domestic energy development, and
greater use of alternative fuels. The elements of the
strategy are designed to:
Foster economic growth through the availability
of ample supplies of reasonably priced energy;
Enhance energy security by reducing
vulnerability to oil disruptions; and
Increase research and development of a wide
range of promising energy technologies.
Providing Financial Security
The President said that we will continue to make sure
banks are safe, sound, and able to provide adequate credit
-6-
for job-creating loans for factories, businesses, and
homebuyers.
He stated that "sound banks should be making more sound
loans, now -- and interest rates should be lower, now."
The Treasury will shortly unveil a plan to bring America's
financial system into the 21st century. The elements of
the plan are designed to:
Continue to protect the deposits of America's
workers and savers;
Assure the safety, soundness, and
competitiveness of our financial institutions;
Create a regulatory system that is strong,
simple, and streamlined; and
Move toward a deposit insurance fund that is
well capitalized with industry funds.
Expanding World Trade
The President called for an expansion of world trade, to
create new opportunities for U.S. exports, which have
grown by 23 percent over the past two years to nearly $400
billion. His priorities include:
-
Strengthening and expanding the world trading system
through the swift and successful completion of the
Uruguay Round of multilateral trade negotiations.
These negotiations aim to open markets
worldwide, lower government subsidies and trade
barriers that distort agricultural markets, and
establish rules of fair play in areas vital to
U.S. competitiveness -- such as services,
agriculture, and high technology.
The lower trade barriers that would result from
a successful Uruguay Round could increase world
output by approximately $5 trillion over the
next ten years, and U.S. output by $1 trillion.
-
A U.S. - Mexico Free Trade Agreement (FTA), first
endorsed by President Bush and Mexico's President
Carlos Salinas de Gortari in June 1990.
-7-
A comprehensive FTA would aim to eliminate
barriers to trade in goods and services and
investment between the United States and Mexico,
as well as provide for the protection of
intellectual property rights.
It would free trade totalling $59 billion
between the two countries.
The FTA might also include Canada, thus creating
the world's largest market, with 360 million
consumers and $6 trillion in total output.
-
Implementing the Enterprise for the Americas
Initiative, launched by President Bush last June.
The President's initiative aims to spur economic
growth and create jobs among the nations of the
Western Hemisphere by removing barriers to trade
and investment, and by reducing debt burdens.
The initiative envisions the eventual
development of a hemispheric zone of free trade.
The United States has begun the process of
opening markets to trade and investment with
over a dozen countries in the region.
The President will propose legislation to enable
full implementation of the investment and debt
reduction portions of the initiative.
-
Export Promotion. The Administration will be taking
quality and export programs to cities around the
country, to make certain that more U.S. firms know
the export potential of top quality goods and
services.
C.
Giving Power and Opportunity to the Individual
The President announced an action plan to "put more power
and opportunity in the hands of the individual."
Creating Job Opportunities
The President called for new incentives to create jobs in
our inner cities by encouraging investment through
enterprise zones.
-8-
Increasing Home Ownership
The President also called for increasing tenant ownership
and control of public housing to help build the bonds of
community in neighborhoods that need help.
Fighting Discrimination
The President stated that "civil rights are also crucial
to protecting equal opportunity." He called on all
Americans to speak out against racism, bigotry, and hate.
The President indicated that "we will continue our
vigorous enforcement of existing statutes," and promised
to press the Congress again "to strengthen the laws
against employment discrimination without resorting to the
use of unfair preferences."
Protecting People From Crime and Combatting Drug Abuse
The President described freedom from crime as a basic
civil right and said that we must eradicate the fear that
stalks our cities.
-
He announced that the Attorney General will soon
convene a Crime Summit of our nation's law
enforcement officials.
-
He called for prompt action on tough crime control
legislation. The President will propose legislation
that will include:
A meaningful Federal death penalty for the most
heinous crimes with procedures to ensure its
fair and colorblind application;
Habeas corpus reform to reduce unnecessarily
repetitive appeals that clog the courts and
delay justice;
Exclusionary rule reform to ensure that evidence
gathered by law enforcement officials in a good
faith belief that they are acting lawfully can
be used to help courts establish the truth;
Provisions to strengthen Federal laws concerning
the safety of women by modifying rules on the
-9-
admissibility of evidence in cases of sex
crimes, enhancing penalties for the distribution
of illegal drugs to pregnant women, increasing
penalties for recidivist sex offenders, and
offering greater protection for victims below
the age of sixteen; and
New authority to enhance international
cooperation among law enforcement officials to
combat international criminal activity,
including international terrorism.
-
The President noted that recent data shows we are
making progress in reducing drug abuse, but that much
remains to be done. The Administration will soon
release the third edition of the National Drug
Control Strategy.
This comprehensive strategy includes increased
resources for drug prevention and education,
treatment, law enforcement, and international
initiatives.
Enhancing Good Health Through Prevention
The President stated that good health is every American's
right and responsibility. He announced that he will
propose an aggressive program of new prevention
initiatives to promote a healthier America and to help
control costs.
The initiatives are designed to make Americans of all ages
healthier.
Infant health will be improved through an
initiative that targets cities with
exceptionally high infant mortality rates;
Children will benefit from large increases in
immunization resources;
Adults will benefit from new efforts to promote
physical activity and reduce injury, reduce
tobacco use, and implementation of a new program
to detect breast and cervical cancer; and
Elderly women will benefit from mammography
services newly available to Medicare
beneficiaries.
-10-
Giving People More Choice in Government
The President urged "reviving the ideal of the citizen
politician who comes not to stay, but to serve."
He endorsed term limitations in order to reduce
the influence of special interests.
He also endorsed election reform -- total
elimination of Political Action Committees -- as
necessary to put more power in the hands of
individuals.
D.
Moving Government Closer to the People
The President said that "where power cannot be put
directly in the hands of the individual, it should be
moved closer to the people -- away from Washington. "
The President called for a more dynamic program life
cycle.
Some programs should increase;
Some should decrease;
Some should be terminated; and
Some should be consolidated and turned over to
the States.
The President's Budget includes a list of potential
programs for turnover totalling more than $20 billion.
Working with the Governors and the Congress, the President
proposed selecting at least $15 billion in such programs
and turning them over to the States in a single
consolidated grant, fully funded, for flexible management
by the States. This initiative will:
Allow the Federal Government to reduce overhead;
Allow States to manage more flexibly and
efficiently;
Move power and decision-making closer to the
people; and
Encourage the innovative power of "States as
Laboratories.
"
-11-
III. THE WAR IN THE GULF
A. The Heroism of Our Servicemen and Servicewomen
The President said that, in this defining hour for America
and the world, "there is no one more devoted, more
committed to the hard work of freedom than every soldier
and sailor, every Marine, airman and Coastguardsman --
every man and woman now serving in the Persian Gulf." He
stated that our commitment to them must match their
commitment to their country.
B. We Are on Course
The President said that while we worked hard to avoid war,
Saddam Hussein repeatedly rejected the path of diplomacy
and peace. But we will prevail; we are on course.
"Iraq's capacity to sustain war is being destroyed Time
will not be Saddam's salvation.
C.
Objectives in the Gulf
The President reaffirmed our objectives:
Drive Iraq from Kuwait. Iraq must comply with all
relevant United Nations resolutions.
Restore Kuwait's legitimate government. Kuwait will
once again be free.
Ensure stability and security in the Gulf region. It
is our hope that Iraq will live as a peaceful and
cooperative member of the family of nations.
The President stated that most Americans know
instinctively why we are in the Gulf -- "we had to stop
Saddam now, not later." The President noted the
undeniable value of thoughtful dissent. The right to
speak out "is one of the reasons we've been united in
purpose and principle for 200 years."
D.
Strategic Benefits of High Technology
The President observed that our progress in the Gulf is
the result of using American technology and economic
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strength to minimize the risk to human life. Our men and
women have the best and deserve the best.
The President directed that the Strategic Defense
Initiative (SDI) program be refocused on providing
protection from limited ballistic missile strikes -- from
whatever their source.
E. The Unity of the International Community
The President observed that for the first time in the
post-war era, the international community is united. It
has an opportunity to fulfill the long-held promise of a
new world order -- where brutality goes unrewarded, and
aggression meets collective resistance.
The President praised the courage and success of the
pilots of the coalition countries and the leadership
provided by the United Nations, an organization that is
now confirming its founders' vision.
The President also commended our friends and allies who
have provided the bulk of the financial costs of Desert
Shield, and expressed confidence that they will similarly
financially support Desert Storm.
F.
U.S. Determination is Great
The President stated that Saddam will not benefit from
targeting innocent civilians, from environmental
terrorism, or by abusing POWs. We will succeed, and in
the process send a powerful message to any dictator or
despot who would follow Saddam's lead.
G.
The Special Role of U.S. Leadership
The President stated that "the United States bears a major
share of leadership" in the Gulf War effort. He noted
that the burden of leadership is a "strength that has made
America the beacon of freedom in a searching world."
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
January 29, 1991
ADDRESS BY THE PRESIDENT
ON THE STATE OF THE UNION
The U.S. Capitol
Washington, D.C.
9:09 P.M. EST
THE PRESIDENT: Mr. President, and Mr. Speaker, and
members of the United States Congress. I come to this House of the
people to speak to you and all Americans, certain that we stand at a
defining hour. Halfway around the world, we are engaged in a great
struggle in the skies and on the seas and sands. We know why we're
there. We are Americans -- part of something larger than ourselves.
For two centuries, we've done the hard work of freedom. And tonight,
we lead the world in facing down a threat to decency and humanity.
What is at stake is more than one small country; it is a
big idea: a new world order, where diverse nations are drawn
together in common cause to achieve the universal aspirations of
mankind -- peace and security, freedom, and the rule of law. Such is
a (Applause.) world worthy of our struggle and worthy of our children's future.
The community of nations has resolutely gathered to
condemn and repel lawless aggression. Saddam Hussein's unprovoked
invasion -- his ruthless, systematic rape of a peaceful neighbor --
violated everything the community of nations holds dear. The world
has (Applause.) said this aggression would not stand -- and it will not stand.
Together, we have resisted the trap of appeasement,
cynicism, and isolation that gives temptation to tyrants. The world
has answered Saddam's invasion with 12 United Nations resolutions,
starting with a demand for Iraq's immediate and unconditional
withdrawal and backed up by forces from 28 countries of six
continents. With few exceptions, the world now stands as one.
The end of the Cold War has been a victory for all
humanity. A year and a half ago, in Germany, I said that our goal
was a Europe whole and free. Tonight, Germany is united. Europe has
become whole and free -- and America's leadership was instrumental in
making it possible. (Applause.)
Our relationship to the Soviet Union is important, not
only to us, but to the world. That relationship has helped to shape
these and other historic changes. But like many other nations, we
have been deeply concerned by the violence in the Baltics, and we
have communicated that concern to the Soviet leadership.
The principle that has guided us is simple: Our
objective is to help the Baltic peoples achieve their aspirations,
not to punish the Soviet Union. (Applause.) In our recent
discussions with the Soviet leadership, we have been given
representations which, if fulfilled, would result in the withdrawal
of some Soviet forces, a reopening of dialogue with the Republics,
and a move away from violence.
We will watch carefully as the situation develops. And
we will maintain our contact with the Soviet leadership to encourage
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continued commitment to democratization and reform. (Applause.) If
it is possible, I want to continue to build a lasting basis for
U.S.-Soviet cooperation, for a more peaceful future for all mankind.
The triumph of democratic ideas in Eastern Europe and
Latin America, and the continuing struggle for freedom elsewhere all
around the world all confirm the wisdom of our nation's founders.
Tonight, we work to achieve another victory -- a victory
over tyranny and savage aggression.
We in this Union enter the last decade of the 20th
century thankful for our blessings, steadfast in our purpose, aware
of our difficulties, and responsive to our duties at home and around
the world.
For two centuries, America has served the world as an
inspiring example of freedom and democracy. For generations, America
has led the struggle to preserve and extend the blessings of liberty.
And today, in a rapidly changing world, American leadership is
indispensable. Americans know that leadership brings burdens and
sacrifices. But we also know why the hopes of humanity turn to us.
We are Americans: we have a unique responsibility to do the hard
work of freedom. And when we do, freedom works. (Applause.)
The conviction and courage we see in the Persian Gulf
today is simply the American character in action. The indomitable
spirit that is contributing to this victory for world peace and
justice is the same spirit that gives us the power and the potential
to meet our toughest challenges at home.
We are resolute and resourceful. If we can selflessly
confront evil for the sake of good in a land so far away, then surely
we can make this land all that it should be. If anyone tells you
that America's best days are behind her, they're looking the wrong
way. (Applause.)
Tonight, I come before this House and the American people
with an appeal for renewal. This is not merely a call for new
government initiatives; it is a call for new initiative in
government, in our communities, and from every American -- to prepare
for the next American century.
America has always led by example. So who among us will
set this example? Which of our citizens will lead us in this next
American century? Everyone who steps forward today -- to get one
addict off drugs, to convince one troubled teenager not to give up on
life, to comfort one AIDS patient, to help one hungry child.
We have within our reach the promise of a renewed
America. We can find meaning and reward by serving some purpose
higher than ourselves -- a shining purpose, the illumination of a
thousand points of light. And it is expressed by all who know the
irresistible force of a child's hand, of a friend who stands by you
and stays there -- a volunteer's generous gesture, an idea that is
simply right.
The problems before us may be different, but the key to
solving them remains the same. It is the individual the
individual who steps forward. And the state of our Union is the
union of each of us, one to the other -- the sum of our friendships,
marriages, families, and communities.
We all have something to give. So if you know how to
read, find someone who can't. If you've got a hammer, find a nail.
If you're not hungry, not lonely, not in trouble, seek out someone
who is. Join the community of conscience. Do the hard work of
freedom. And that will define the state of our Union. (Applause.)
Since the birth of our nation, "We the people" has been
the source of our strength. What government can do alone is limited
-- but the potential of the American people knows no limits.
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We are a nation of rock-solid realism and clear-eyed
idealism. We are Americans. We are the nation that believes in the
future. We are the nation that can shape the future. And we've
begun to do just that -- by strengthening the power and choice of
individuals and families.
Together, these last two years, we've put dollars for
child care directly in the hands of parents instead of bureaucracies.
(Applause.) Unshackled the potential of Americans with disabilities.
(Applause.) Applied the creativity of the marketplace in the service
of the environment, for clean air; and made home ownership possible
for more Americans. (Applause.)
The strength of a democracy is not in bureaucracy. It is
in the people and their communities. In everything we do, let us
unleash the potential of our most precious resource -- our citizens,
our citizens themselves. We must return to families, communities,
counties, cities, states, and institutions of every kind the power to
chart their own destiny, and the freedom and opportunity provided by
strong (Applause.) economic growth. And that's what America is all about.
in genuine economic distress. And I hear them.
I know tonight in some regions of our country, people are
Earlier this month, Kathy Blackwell, of Massachusetts,
wrote me about what can happen when the economy slows down, saying,
here are hurting badly."
"My heart is aching, and I think that you should know your people out
I understand. And I'm not unrealistic about the future.
But there are reasons to be optimistic about our economy.
First, we don't have to fight double-digit inflation.
Second, most industries won't have to make big cuts in production
because they don't have big inventories piled up. And third, our
exports are running solid and strong. In fact, American businesses
are exporting at a record rate.
So let's put these times in perspective. Together, since
1981, we've created almost 20 million jobs, cut inflation in half,
and cut interest rates in half.
And, yes, the largest peacetime economic expansion in
history has been temporarily interrupted. But our economy is still
over twice as large as our closest competitor.
We will get this recession behind us and return to growth
soon. (Applause.) We will get on our way to a new record of
expansion and achieve the competitive strength that will carry us
into the next American century.
We should focus our efforts today on encouraging economic
growth, investing in the future, and giving power and opportunity to
the individual. (Applause.)
We must begin with control of federal spending.
(Applause.) That's why I'm submitting a budget that holds the growth
in spending to less than the rate of inflation. And that's why, amid
all the sound and fury of last year's budget debate, we put into law
new, enforceable spending caps so that future spending debates
will mean a battle of ideas, not a bidding war. (Applause.)
Though controversial, the budget agreement finally put
the federal government on a pay-as-you-go plan and cut the growth of
debt by nearly $500 billion. And that frees funds for saving and
job-creating investment.
Now, let's do more. My budget again includes tax-free
family savings accounts; penalty-free withdrawals from IRAs for
first-time home buyers - (applause) -- and to increase jobs and
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growth, a reduced tax for long-term capital gains. (Applause.)
I know there are differences among us -- (laughter) --
about the impact and the effects of a capital gains incentive. So
tonight, I'm asking the congressional leaders and the Federal Reserve
to cooperate with us in a study, led by Chairman Alan Greenspan, to
sort out our technical differences so that we can avoid a return to
unproductive partisan bickering. (Applause.)
But just as our efforts will bring economic growth now
and in the future, they must also be matched by long-term investments
for the next American century.
That requires a forward-looking plan of action -- and
that's exactly what we will be sending to the Congress. We've
prepared a detailed series of proposals that include:
A budget that promotes investment in America's future --
in children, education, infrastructure, space, and high technology;
legislation to achieve excellence in education --
building on the partnership forged with the 50 governors at the
Education Summit, enabling parents to choose their children's schools
and helping to make America number one in math and science; --
(applause) --
a blueprint for a new national highway system -- a
critical investment in our transportation infrastructure; --
(applause) --
a research and development agenda that includes record
levels of federal investment, and a permanent tax credit to
strengthen private R&D and to create jobs; -- (applause) --
a comprehensive national energy strategy that calls for
energy conservation and efficiency, increased development, and
greater use of alternative fuels; -- (applause) --
into the 21st century so that our banks remain safe and secure and
a banking reform plan to bring America's financial system
can continue to make job-creating loans for our factories, our
businesses and home-buyers.
You know, I do think there has been too much pessimism.
Sound banks should be making sound loans now -- and interest rates
should be lower, now. (Applause.)
In addition to these proposals, we must recognize that
our economic strength depends on being competitive in world markets.
We must continue to expand American exports. A successful Uruguay
Round of world trade negotiations will create more real jobs and more
real growth for all nations. You and I know that if the playing
field is level, America's workers and farmers can out-work,
out-produce anyone, anytime, anywhere. (Applause.)
And with a Mexican Free Trade Agreement and our
Enterprise for the Americas Initiative, we can help our partners
strengthen their economies and move toward a free trade zone
throughout this entire hemisphere. (Applause.)
The budget also includes a plan of action right here at
home to put more power and opportunity in the hands of the
individual. And that means new incentives to create jobs in our
inner cities, by encouraging investment through enterprise zones. It
also means tenant control and ownership of public housing. Freedom
and the power to choose should not be the privilege of wealth. They
are the birthright of every American. (Applause.)
Civil rights are also crucial to protecting equal
opportunity. (Applause.) Every one of us has a responsibility to
speak out against racism, bigotry, and hate. (Applause.) We will
continue our vigorous enforcement of existing statutes, and I will
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once again press the Congress to strengthen the laws against
employment discrimination without resorting to the use of unfair
preferences. (Applause.)
We're determined to protect another fundamental civil
right freedom from crime and the fear that stalks our cities. The
Attorney General will soon convene a crime summit of our nation's law
enforcement officials. And to help us support them, we need tough
crime control legislation, and we need it now. (Applause.)
And as we fight crime, we will fully implement our
national strategy for combatting drug abuse. Recent data show that
we are making progress, but much remains to be done. We will not
rest until the day of the dealer is over, forever. (Applause.)
American's responsibility. And so we are proposing an aggressive
Good health care is every American's right and every
program of new prevention initiatives -- for infants, for children,
for adults, and for the elderly -- to promote a healthier America and
to help keep costs from spiralling. (Applause.)
reviving the ideal of the citizen politician who comes not to stay,
It's time to give people more choice in government, by
but to serve. And one of the reasons that there is so much support
across this country for term limitations is that the American people
are increasingly concerned about big-money influence in politics. So
we must look beyond the next election, to the next generation. And
the time has come to put the national interest above the special
interest (Applause.) -- and totally eliminate political action committees.
And that would truly put more competition in elections,
and more power in the hands of individuals. And where power cannot
be put directly in the hands of the individual, it should be moved
closer to the people -- away from Washington.
The federal government too often treats government
programs as if they are of Washington, by Washington, and for
Washington. immortal. Once established, federal programs seem to become
It's time for a more dynamic program life cycle: Some
programs should increase. Some should decrease. Some should be
terminated. And some should be consolidated and turned over to the
states. (Applause.)
My budget includes a list of programs for potential
turnover totalling more than $20 billion. Working with Congress and
the governors, I propose we select at least $15 billion in such
programs and turn them over to the states in a single consolidated
grant (Applause.) fully funded for flexible management by the states.
The value -- the value of this turnover approach is
straightforward. It allows the federal government to reduce
overhead. It allows states to manage more flexibly and more
efficiently. It moves power and decision-making closer to the
people. And it reinforces a theme of this administration:
Laboratories. appreciation and encouragement of the innovative powers of "States as
This nation was founded by leaders who understood that
power belongs in the hands of people. And they planned for the
future. And so must we -- here and all around the world.
As Americans, we know that there are times when we must
step forward and accept our responsibility to lead the world away
from the dark chaos of dictators, toward the brighter promise of a
better day.
Almost 50 years ago we began a long struggle against
aggressive totalitarianism. Now we face another defining hour for
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America and the world.
There is no one more devoted, more committed to the hard
work of freedom, than every soldier and sailor, every Marine, airman,
and Coastguardsman -- every man and woman now serving in the Persian
Gulf. (Applause.) Oh, how they deserve - -- (applause) -- and what a
fitting tribute to them.
You see -- what a wonderful, fitting tribute to them.
Each of them has volunteered -- volunteered to provide for this
nation's defense -- and now they bravely struggle, to earn for
America, for the world, and for future generations, a just and
lasting peace.
Our commitment to them must be equal to their commitment
to their country. They are truly America's finest. (Applause.)
The war in the Gulf is not a war we wanted. We worked
hard to avoid war. For more than five months we, along with the Arab
League, the European Community, the United Nations, tried every
diplomatic avenue. U.N. Secretary General Perez de Cuellar;
Presidents Gorbachev, Mitterrand, Ozal, Mubarak, and Bendjedid; Kings
Fahd and Hassan; Prime Ministers Major and Andreotti -- just to name
a few all worked for a solution. But time and again, Saddam
Hussein flatly rejected the path of diplomacy and peace.
The world well knows how this conflict began and when:
It began on August 2nd, when Saddam invaded and sacked a small,
defenseless neighbor. And I am certain of how it will end. So that
peace can prevail, we will prevail. (Applause.) Thank you.
Tonight, I am pleased to report that we are on course.
Iraq's capacity to sustain war is being destroyed. Our investment,
our training, our planning - all are paying off. Time will not be
Saddam's salvation.
Our purpose in the Persian Gulf remains constant: to
drive Iraq out of Kuwait, to restore Kuwait's legitimate government,
and to ensure the stability and security of this critical region.
Let me make clear what I mean by the region's stability
and security. We do not seek the destruction of Iraq, its culture,
or its people. Rather, we seek an Iraq that uses its great
resources, not to destroy, not to serve the ambitions of a tyrant,
but to build a better life for itself and its neighbors. We seek a
Persian Gulf where conflict is no longer the rule, where the strong
are neither tempted nor able to intimidate the weak.
Most Americans know instinctively why we are in the Gulf.
They know we had to stop Saddam now, not later. They know that this
brutal dictator will do anything; will use any weapon; will commit
any outrage, no matter how many innocents suffer.
They know we must make sure that control of the world's
oil resources does not fall into his hands, only to finance further
aggression. They know that we need to build a new, enduring peace --
based not on arms races and confrontation, but on shared principles
and the rule of law.
And we all realize that our responsibility to be the
catalyst for peace in the region does not end with the successful
conclusion of this war.
Democracy brings the undeniable value of thoughtful
dissent -- and we've heard some dissenting voices here at home --
some, a handful, reckless most responsible. But the fact that all
voices have the right to speak out is one of the reasons we've been
united in purpose and principle for 200 years. (Applause.)
Our progress in this great struggle is the result of
years of vigilance and a steadfast commitment to a strong defense.
Now, with remarkable technological advances like the Patriot missile,
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we can defend against ballistic missile attacks aimed at innocent
civilians.
Looking forward, I have directed that the SDI program be
refocused on providing protection from limited. ballistic missile
strikes whatever their source. (Applause.) Let us pursue an SDI
program that can deal with any future threat to the United STates, to
our forces overseas, and to our friends and allies.
The quality of American technology, thanks to the
American worker, has enabled us to successfully deal with difficult
military conditions and help minimize precious loss of life. We have
given (Applause.) our men and women the very best. And they deserve it.
We all have a special place in our hearts for the
families of our men and women serving in the Gulf. They are
represented here tonight by Mrs. Norman Schwarzkopf. (Applause.) We
with him. And I might also recognize one who came with Mrs.
are all very grateful to General Schwarzkopf and to all those serving
Schwarzkopf Alma Powell, the wife of the distinguished Chairman of
the Joint Chiefs. (Applause.) And to the families, let me say our
forces in the Gulf will not stay there one day longer than is
necessary to complete their mission. (Applause.)
The courage and success of the RAF pilots, of the
Kuwaiti, Saudi, French, the Canadians, the Italians, the pilots of
Qatar and Bahrain -- all are proof that for the first time since
World War II, the international community is united. The leadership
of the United Nations, once only a hoped-for ideal, is now confirming
its founders' vision. (Applause.)
I am heartened that we are not being asked to bear alone
the financial burdens of this struggle. Last year, our friends and
allies provided the bulk of the economic costs of Desert Shield. And
now, having received commitments of over $40 billion for the first
three months of 1991, I am confident they will do no less as we move
through Desert Storm. (Applause.)
But the world has to wonder what the dictator of Iraq is
thinking. If he thinks that by targeting innocent civilians in
Israel and Saudi Arabia, that he will gain advantage, he is dead
wrong. (Applause.) If he thinks that he will advance his cause
through tragic and despicable environmental terrorism, he is dead
wrong. (Applause.) And if he thinks that by abusing the coalition
prisoners of war he will benefit, he is dead wrong. (Applause.)
We will succeed in the Gulf. And when we do, the world
community will have sent an enduring warning to any dictator or
despot, present or future, who contemplates oulaw aggression.
The world can, therefore, seize this opportunity to
fulfill the long-held promise of a new world order, where brutality
will go unrewarded and aggression will meet collective resistance.
Yes, the United States bears a major share of leadership
in this effort. Among the nations of the world, only the United
States of America has both the moral standing and the means to back
it up. We're the only nation on this Earth that could assemble the
forces of peace. This is the burden of leadership and the strength
that has made America the beacon of freedom in a searching world.
This nation has never found glory in war. Our people
have never wanted to abandon the blessings of home and work for
distant lands and deadly conflict. If we fight in anger, it is only
because we have to fight at all. And all of us yearn for a world
where we will never have to fight again.
Each of us will measure within ourselves the value of
this great struggle. Any cost in lives -- any cost -- is beyond our
power to measure. But the cost of closing our eyes to aggression is
beyond mankind's power to imagine.
MORE
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This we do know: Our cause is just. Our cause is moral.
Our cause is right. (Applause.)
Let future generations understand the burden and the
blessings of freedom. Let them say we stood where duty required us
to stand.
Let them know that, together, we affirmed America and the
world as a community of conscience.
The winds of change are with us now. The forces of
freedom are together, united. We move toward the next century more
confident than ever that we have the will at home and abroad to do
what must be done, the hard work of freedom.
May God bless the United States of America. Thank you
very, very much. (Applause.)
END
9:57 P.M. EST
THE PRESIDENT'S STATE OF THE UNION SPEECH
JANUARY 29, 1991 -- TALKING POINTS
International:
Halfway around the world we are engaged in the hard work of
freedom. A new world order of peace, security, and the rule
of law, is being built by the brave men and women now
serving in the Persian Gulf.
America stands with the United Nations, and armed forces
from 28 countries, to reverse Saddam Hussein's aggression in
the Gulf. We are on course and we will prevail.
Highlights of the President's agenda for investment in the
future:
-- legislation to achieve excellence in education;
-- support for research and development in technology;
-- a comprehensive national energy strategy;
-- a new national highway system;
-- comprehensive new banking reform measures;
-- a national drug strategy for combatting drug abuse and
crime; and
-- election law reform.
Themes:
America's future lies in unlocking every citizen's
potential. The legislative accomplishments of the last year
-- enhancing opportunities for Americans with disabilities,
giving child care support directly to parents, and making
affordable housing available to more Americans -- strengthen
the power and freedom of choice for individuals and
families.
The President seeks to affirm America as a nation of
principle, a nation without unfair barriers, preferences, or
bias. A nation that protects and expands the potential of
individuals while it creates new jobs and economic growth as
a competitor in the global economy.
A strong economy and expanded economic freedom are chief
among the goals of the President's economic growth package,
which includes tax-free family savings accounts, IRAs for
first-time home-buyers, and incentives for long-term
investment.
President Bush called on every American to ready the nation
for the future by working to enhance freedom at home, to
foster freedom abroad, and to make America a community of
conscience.
BOND DONATELLI
INCORPORATED
November 26, 1990
The Honorable Edward M. Rogers, Jr.
Deputy Assistant to the President and
Executive Assistant to the Chief of Staff
The White House
Washington, D.C. 20500
Dear Ed:
Enclosed are some general thoughts Rich and I put together on
the economic dimension of future White House strategy. They are
submitted in response to Governor Sununu's latest letter.
Best of luck.
Sincerely,
Frank J. Donatelli
1414 Prince Street, Suite 300, Alexandria, Virginia 22314 (703) 684-5991 (703) 684-0538 Fax
The best that can be said of this year's budget impasse is
that it has finally ended. Time will tell what impact the
resulting agreement has on the country's economic fortunes, but one
thing we know already is that the political fortunes of the GOP
have suffered serious damage. Consider the casualty list:
(1) The President's "No New Taxes" pledge.
The one campaign promise the President is most identified with
and the glue that has held a diverse GOP coalition together, is now
gone.
(2) Republicans and the "rich."
The GOP has been attacked daily as the "party of the rich."
Democrats have been at least partially successful in driving a
wedge between the GOP's middle and high income supporters. The
latest Wall Street Journal poll finds the GOP identified as the
party most interested in protecting the rich by 64% to 13%.
(3) Economic Recession
The Democrats are again predicting recession and an end to
the "false prosperity" of the 1980's because of the large deficits
-- due to the Reagan-Bush tax cuts for the wealthy. Thus the
Democrats have formulated their "explanation" for the economic
slowdown that can be adapted as a theme against the President
himself in 1992.
(4) Republicans and economic performance
The public view that Republicans are superior to Democrats as
the party best able to keep the economy strong, hold taxes down,
and restrain spending has been badly eroded. The Journal finds the
Democrats are now favored as the party best able to keep the
economy strong (31-26) and for dealing with taxes (39-28), a
stunning turnaround from the last decade.
(5) Competence and Ideology
The President's image of "competence" has been tarnished by
the many Administration "flip flops" on tax policy.
The national economic debate, which has been dominated by
Republicans at least since the tax revolt of 1978 (save the
recession year of 1982), and which has emphasized low taxes and
spending, optimism about the future, deregulation of the economy,
and free and fair trade is now being replaced by Democratic
arguments for increased taxes on the very wealthy, targeted federal
programs to assist the "middle class", economic nationalism to save
jobs, and reregulation of key sectors of the economy to prevent
future S&L debacles.
The 1992 presidential cycle began the day after the mid-term
elections ended. Democratic candidates will begin refining their
campaign themes. Democratic leaders in Congress will focus on
legislative priorities designed to frame an advantageous agenda
1
beginning with renewed efforts to enact a "millionaire's surtax."
For the GOP, it is critical that the economic debate be
refocused on the Republican economic agenda. The White House needs
to revamp its rhetoric and include several new elements.
(1) Defend the Reagan-Bush Record.
Democrats have had a field day attacking the "greed" and
"false prosperity" of the 1980s. The President was a key player
in the Reagan-Bush Administration and his political fortunes are
heavily influenced by the public perception of the recent past.
A stronger defense of the decade that saw record increases in
employment and lower inflation and interest rates is critical to
any future Republican prospects.
(2) Reestablish the growth message.
Republicans have been successful by emphasizing a mixture of
growth and opportunity. The public will support a program that
emphasizes growth instead of redistribution. This year's budget
submission should include positive proposals to get the economy
moving again such as capital gains tax cuts, expanded IRAs,
enterprise zones, and privatization. The costs would be paid from
spending reductions. Such a program would be an attractive
contrast to the next Democratic tax increase proposal.
(3) Bring back the Misery Index.
The Democratic economic legacy of the late 1970s is still a
heavy burden for the party to carry. The Democratic program of tax
and spending increase, protectionism and reregulation would
certainly deepen a recession, not prevent one. Whatever the
judgement on the 1980's, most everyone thinks the 1970's were
worse.
(4) Pick a fight and win.
The President is uncomfortable with confrontation in domestic
policy. Nevertheless, he needs to confront his critics on a key
issue, with no compromise and, most importantly, win. Such an
approach would give added definition to his program and refurbish
his image as a strong and competent chief executive.
(5) Talk to the public.
The public is more pessimistic about the direction of the
country and the economy than in the recession year of 1982. And
why not - when Democratic gloom and doom pronouncements go
unanswered? You would think unemployment is 10% again, not its
current 5.7% rate. The White House can no longer ignore public
opinion. No more secret deals with the Congress. The President
needs to speak often directly to the people on behalf of his
programs, build public support for them, and prepare the people
for new public policy initiatives. If he doesn't define his
objectives, his opponents will.
2
Election year rhetoric is important in determining how
successful candidates are in communicating their established themes
to the electorate, but it is in the year(s) before the election
that the themes are developed and refined. For the GOP, the
refinement cannot commence a moment too soon.
3
Jan. 31 / Administration of George Bush, 1990
Address Before a Joint Session of the
A year ago in Poland, Lech Walesa de-
Congress on the State of the Union
clared that he was ready to open a dialog
January 31, 1990
with the Communist rulers of that country;
and today, with the future of a free Poland
Mr. President, Mr. Speaker, Members of the
in their own hands, members of Solidarity
United States Congress:
lead the Polish Government.
I return as a former President of the
A year ago, freedom's playwright Vaclav
Senate and a former Member of this great
Havel languished as a prisoner in Prague.
House. And now, as President, it is my
And today it's Vaclav Havel, President of
privilege to report to you on the state of
Czechoslovakia.
the Union.
And 1 year ago, Erich Honecker, of East
Tonight I come not to speak about the
Germany, claimed history as his guide, and
state of the Government, not to detail
he predicted the Berlin Wall would last an-
every new initiative we plan for the coming
other hundred years. And today, less than 1
year nor to describe every line in the
year later, it's the Wall that's history.
budget. I'm here to speak to you and to the
Remarkable events-events that fulfill
American people about the state of the
the long-held hopes of the American
Union-about our world-the changes
people; events that validate the longstand-
we've seen, the challenges we face, and
ing goals of American policy, a policy based
what that means for America.
on a single, shining principle: the cause of
There are singular moments in history,
freedom.
dates that divide all that goes before from
America, not just the nation but an idea,
all that comes after. And many of us in this
alive in the minds of people everywhere. As
chamber have lived much of our lives in a
this new world takes shape, America stands
world whose fundamental features were de-
at the center of a widening circle of free-
fined in 1945; and the events of that year
dom-today, tomorrow, and into the next
decreed the shape of nations, the pace of
century. Our nation is the enduring dream
progress, freedom or oppression for millions
of every immigrant who ever set foot on
of people around the world.
these shores, and the millions still struggling
Nineteen forty-five provided the common
to be free. This nation, this idea called
frame of reference, the compass points of
America, was and always will be a new
the postwar era we've relied upon to under-
world-our new world.
stand ourselves. And that was our world,
At a workers' rally, in a place called
until now. The events of the year just
Branik on the outskirts of Prague, the idea
ended, the revolution of '89, have been a
called America is alive. A worker, dressed
chain reaction, changes so striking that it
in grimy overalls, rises to speak at the facto-
marks the beginning of a new era in the
ry gates. He begins his speech to his fellow
world's affairs.
citizens with these words, words of a distant
Think back-think back just 12 short
revolution: "We hold these truths to be self-
months ago to the world we knew as 1989
evident, that all men are created equal, that
began.
they are endowed by their Creator with
One year-one year ago, the people of
certain unalienable Rights, and that among
Panama lived in fear, under the thumb of a
these are Life, Liberty and the pursuit of
dictator. Today democracy is restored;
Happiness."
Panama is free.
It's no secret that here at home freedom's
Operation Just Cause has achieved its ob-
door opened long ago. The cornerstones of
jective. The number of military personnel
this free society have already been set in
in Panama is now very close to what it was
place: democracy, competition, opportunity,
before the operation began. And tonight I
private investment, stewardship, and of
am announcing that well before the end of
course leadership. And our challenge today
February, the additional numbers of Ameri-
is to take this democratic system of ours, a
can troops, the brave men and women of
system second to none, and make it better:
our Armed Forces who made this mission a
a better America, where there's a job for
success, will be back home.
everyone who wants one; where women
146
Administration of George Bush, 1990 / Jan. 31
working outside the home can be confident
We need to save more. We need to
their children are in safe and loving care
expand the pool of capital for new invest-
and where government works to expand
ments that need more jobs and more
child-care alternatives for parents; where
growth. And that's the idea behind a new
we reconcile the needs of a clean environ-
initiative I call the Family Savings Plan,
ment and a strong economy; where "Made
which I will send to Congress tomorrow.
in the USA" is recognized around the world
We need to cut the tax on capital gains,
as the symbol of quality and progress;
encourage risktakers, especially those in our
where every one of us enjoys the same op-
small businesses, to take those steps that
portunities to live, to work, and to contrib-
translate into economic reward, jobs, and a
ute to society and where, for the first time,
better life for all of us.
the American mainstream includes all of
We'll do what it takes to invest in Ameri-
our disabled citizens; where everyone has a
roof over his head and where the homeless
ca's future. The budget commitment is
get the help they need to live in dignity;
there. The money is there. It's there for
where our schools challenge and support
research and development, R&D-a record
our kids and our teachers and where all of
high. It's there for our housing initiative-
them make the grade; where every street,
HOPE-to help everyone from first-time
every city, every school, and every child is
homebuyers to the homeless. The money's
drug-free; and finally, where no American is
there to keep our kids drug-free-70 per-
forgotten-our hearts go out to our hostages
cent more than when I took office in 1989.
who are ceaselessly on our minds and in our
It's there for space exploration. And it's
efforts.
there for education-another record high.
That's part of the future we want to see,
And one more thing: Last fall at the edu-
the future we can make for ourselves, but
cation summit, the Governors and I agreed
dreams alone won't get us there. We need
to look for ways to help make sure that our
to extend our horizon, commit to the long
kids are ready to learn the very first day
view. And our mission for the future starts
they walk into the classroom. And I've
today.
made good on that commitment by propos-
In the tough competitive markets around
ing a record increase in funds-an extra
the world, America faces the great chal-
half-a-billion dollars-for something near
lenges and great opportunities. And we
and dear to all of us: Head Start.
know that we can succeed in the global
Education is the one investment that
economic arena of the nineties, but to meet
means more for our future because it means
that challenge, we must make some funda-
the most for our children. Real improve-
mental changes-some crucial investment
ment in our schools is not simply a matter
in ourselves.
of spending more: it's a matter of asking
Yes, we are going to invest in America.
more-expecting more-of our schools, our
This administration is determined to en-
teachers, of our kids, of our parents, and
courage the creation of capital, capital of all
ourselves. And that's why tonight I am an-
kinds: physical capital-everything from our
nouncing America's education goals, goals
farms and factories to our workshops and
developed with enormous cooperation from
production lines, all that is needed to
the Nation's Governors. And if I might, I'd
produce and deliver quality goods and qual-
like to say I'm very pleased that Governor
ity services; intellectual capital-the source
Gardner [Washington] and Governor Clin-
of ideas that spark tomorrow's products;
ton [Arkansas], Governor Branstad [Iowa],
and of course our human capital-the tal-
Governor Campbell [South Carolina], all of
ented work force that we'll need to com-
whom were very key in these discussions,
pete in the global market.
these deliberations, are with us here to-
Let me tell you, if we ignore human cap-
night.
ital, if we lose the spirit of American inge-
By the year 2000, every child must start
nuity, the spirit that is the hallmark of the
school ready to learn.
American worker, that would be bad. The
The United States must increase the high
American worker is the most productive
school graduation rate to no less than 90
worker in the world.
percent.
147
Jan. 31 / Administration of George Bush, 1990
And we are going to make sure our
tion Agency to Cabinet rank-not more bu-
schools' diplomas mean something. In criti-
reaucracy, not more red tape, but the cer-
cal subjects-at the 4th, 8th, and 12th
tainty that here at home, and especially in
grades-we must assess our students' per-
our dealings with other nations, environ-
formance.
mental issues have the status they deserve.
By the year 2000, U.S. students must be
This year's budget provides over $2 bil-
first in the world in math and science
lion in new spending to protect our envi-
achievement.
ronment, with over $1 billion for global
Every American adult must be a skilled,
change research, and a new initiative I call
literate worker and citizen.
America the Beautiful to expand our nation-
Every school must offer the kind of disci-
al parks and wildlife preserves that improve
plined environment that makes it possible
recreational facilities on public lands, and
for our kids to learn. And every school in
something else, something that will help
America must be drug-free.
keep this country clean from our forestland
Ambitious aims? Of course. Easy to do?
to the inner cities and keep America beauti-
Far from it. But the future's at stake. The
ful for generations to come: the money to
Nation will not accept anything less than
excellence in education.
plant a billion trees a year.
These investments will keep America
And tonight let me say again to all the
competitive. And I know this about the
Members of the Congress: The American
American people: We welcome competi-
people did not send us here to bicker.
tion. We'll match our ingenuity, our energy,
There is work to do, and they sent us here
our experience and technology, our spirit
to get it done. And once again, in the spirit
and enterprise against anyone. But let the
of cooperation, I offer my hand to all of
competition be free, but let it also be fair.
you. Let's work together to do the will of
America is ready.
the people: clean air, child care, the Educa-
Since we really mean it and since we're
tional Excellence Act, crime, and drugs. It's
serious about being ready to meet that chal-
time to act. The farm bill, transportation
lenge, we're getting our own house in
policy, product-liability reform, enterprise
order. We have made real progress. Seven
zones-it's time to act together.
years ago, the Federal deficit was 6 percent
And there's one thing I hope we will be
of our gross national product-6 percent. In
able to agree on. It's about our commit-
the new budget I sent up 2 days ago, the
ments. I'm talking about Social Security. To
deficit is down to 1 percent of gross nation-
every American out there on Social Securi-
al product.
ty, to every American supporting that
That budget brings Federal spending
system today, and to everyone counting on
under control. It meets the Gramm-
it when they retire, we made a promise to
Rudman target. It brings that deficit down
you, and we are going to keep it.
further and balances the budget by 1993
We rescued the system in 1983, and it's
with no new taxes. And let me tell you,
sound again-bipartisan arrangement. Our
there's still more than enough Federal
budget fully funds today's benefits, and it
spending. For most of us, $1.2 trillion is still
assures that future benefits will be funded
a lot of money.
as well. The last thing we need to do is
And once the budget is balanced, we can
mess around with Social Security.
operate the way every family must when it
There's one more problem we need to
has bills to pay. We won't leave it to our
address. We must give careful consideration
children and our grandchildren. Once it's
to the recommendations of the health-care
balanced, we will start paying off the na-
studies underway now. That's why tonight
tional debt.
I'm asking Dr. Sullivan, Lou Sullivan, Secre-
And there's something more we owe the
tary of Health and Human Services, to lead
generations of the future: stewardship, the
a Domestic Policy Council review of recom-
safekeeping of America's precious environ-
mendations on the quality, accessibility, and
mental inheritance.
cost of our nation's health-care system. I am
It's just one sign of how serious we are:
committed to bring the staggering costs of
we will elevate the Environmental Protec-
health care under control.
148
Administration of George Bush, 1990 / Jan. 31
The state of the Government does indeed
and one of the first to fall. But he knew
depend on many of us in this very chamber.
what he believed in. He carried the idea we
But the state of the Union depends on all
call America in his heart.
Americans. We must maintain the demo-
I began tonight speaking about the
cratic decency that makes a nation out of
changes we've seen this past year. There is
millions of individuals. I've been appalled at
a new world of challenges and opportuni-
the recent mail bombings across this coun-
ties before us, and there's a need for leader-
try. Every one of us must confront and con-
ship that only America can provide. Nearly
demn racism, antisemitism, bigotry, and
40 years ago, in his last address to the Con-
hate, not next week, not tomorrow, but
gress, President Harry Truman predicted
right now-every single one of us.
such a time would come. He said: "As our
The state of the Union depends on
world grows stronger, more united, more
whether we help our neighbor-claim the
attractive to men on both sides of the Iron
problems of our community as our own.
Curtain, then inevitably there will come a
We've got to step forward when there's
time of change within the Communist
trouble, lend a hand, be what I call a point
of light to a stranger in need. We've got to
world." Today, that change is taking place.
take the time after a busy day to sit down
For more than 40 years, America and its
and read with our kids, help them with
allies held communism in check and en-
their homework, pass along the values we
sured that democracy would continue to
learned as children. That's how we sustain
exist. And today, with communism crum-
the state of the Union. Every effort is im-
bling, our aim must be to ensure democra-
portant. It all adds up. It's doing the things
cy's advance, to take the lead in forging
that give democracy meaning. It all adds up
peace and freedom's best hope: a great and
to who we are and who we will be.
growing commonwealth of free nations.
Let me say that so long as we remember
And to the Congress and to all Americans, I
the American idea, so long as we live up to
say it is time to acclaim a new consensus at
the American ideal, the state of the Union
home and abroad, a common vision of the
will remain sound and strong.
peaceful world we want to see.
And to those who worry that we've lost
Here in our own hemisphere, it is time
our way-well, I want you to listen to parts
for all the peoples of the Americas, North
of a letter written by Private First Class
and South, to live in freedom. In the Far
James Markwell, a 20-year-old Army medic
East and Africa, it's time for the full flower-
of the 1st Battalion, 75th Rangers. It's dated
ing of free governments and free markets
December 18th, the night before our
that have served as the engine of progress.
armed forces went into action in Panama.
It's time to offer our hand to the emerging
It's a letter servicemen write and hope will
democracies of Eastern Europe so that con-
never be sent. And sadly, Private Mark-
tinent-for too long a continent divided-
well's mother did receive this letter. She
can see a future whole and free. It's time to
passed it along to me out there in Cincin-
build on our new relationship with the
nati.
Soviet Union, to endorse and encourage a
And here is some of what he wrote: "I've
peaceful process of internal change toward
never been afraid of death, but I know he is
democracy and economic opportunity.
waiting at the corner. I've been trained to
We are in a period of great transition,
kill and to save, and so has everyone else. I
great hope, and yet great uncertainty. We
am frightened what lays beyond the fog,
recognize that the Soviet military threat in
and yet do not mourn for me. Revel in the
Europe is diminishing, but we see little
life that I have died to give you. But most
change in Soviet strategic modernization.
of all, don't forget the Army was my choice.
Therefore, we must sustain our own strate-
Something that I wanted to do. Remember
gic offense modernization and the Strategic
I joined the Army to serve my country and
Defense Initiative.
ensure that you are free to do what you
But the time is right to move forward on
want and live your lives freely."
a conventional arms control agreement to
Let me add that Private Markwell was
move us to more appropriate levels of mili-
among the first to see battle in Panama,
tary forces in Europe, a coherent defense
149
Jan. 31 / Administration of George Bush, 1990
program that ensures the U.S. will continue
Now, I know you're probably thinking,
to be a catalyst for peaceful change in
Well, that's just a grandfather talking. Well,
Europe. And I've consulted with leaders of
maybe you're right. But I've met a lot of
NATO [North Atlantic Treaty Organiza-
children this past year across this country,
tion]. In fact, I spoke by phone with Presi-
as all of you have, everywhere from the Far
dent Gorbachev just today.
East to Eastern Europe. And all kids are
I agree with our European allies that an
unique, and yet all kids are alike-the bud-
American military presence in Europe is es-
ding young environmentalists I met this
sential and that it should not be tied solely
to the Soviet military presence in Eastern
month, who joined me in exploring the
Europe. But our troop levels can still be
Florida Everglades; the little leaguers I
lower. And so, tonight I am announcing a
played catch with in Poland, ready to go
major new step for a further reduction in
from Warsaw to the World Series; and even
U.S. and Soviet manpower in central and
the kids who are ill or alone-and God bless
eastern Europe to 195,000 on each side.
those boarder babies, born addicted to
This level reflects the advice of our senior
drugs and AIDS and coping with problems
military advisers. It's designed to protect
no child should have to face. But you know,
American and European interests and sus-
when it comes to hope and the future,
tain NATO's defense strategy. A swift con-
every kid is the same-full of dreams ready
clusion to our arms control talks-conven-
to take on the world-all special, because
tional, chemical, and strategic-must now
they are the very future of freedom. And to
be our goal. And that time has come.
them belongs this new world I've been
Still, we must recognize an unfortunate
speaking about.
fact: In many regions of the world tonight,
And so, tonight I'm going to ask some-
the reality is conflict, not peace. Enduring
thing of every one of you. Now, let me start
animosities and opposing interests remain.
And thus, the cause of peace must be
with my generation, with the grandparents
served by an America strong enough and
out there. You are our living link to the
sure enough to defend our interests and our
past. Tell your grandchildren the story of
ideals. It's this American idea that for the
struggles waged at home and abroad, of sac-
past four decades helped inspire this revolu-
rifices freely made for freedom's sake. And
tion of '89.
tell them your own story as well, because
Here at home and in the world, there's
every American has a story to tell.
history in the making, history to be made.
And, parents, your children look to you
Six months ago, early in this season of
for direction and guidance. Tell them of
change, I stood at the gates of the Gdansk
faith and family. Tell them we are One
Shipyard in Poland at the monument to the
Nation under God. Teach them that of all
fallen workers of Solidarity. It's a monu-
the many gifts they can receive liberty is
ment of simple majesty. Three tall crosses
their most precious legacy and of all the
rise up from the stones, and atop each cross,
gifts they can give the greatest is helping
an anchor, an ancient symbol of hope.
others.
The anchor in our world today is free-
dom, holding us steady in times of change,
And to the children and young people
a symbol of hope to all the world. And free-
out there tonight: With you rests our hope,
dom is at the very heart of the idea that is
all that America will mean in the years and
America. Giving life to that idea depends
decades ahead. Fix your vision on a new
on every one of us. Our anchor has always
century-your century, on dreams we
been faith and family.
cannot see, on the destiny that is yours and
In the last few days of this past momen-
yours alone.
tous year, our family was blessed once
And finally, let all Americans-all of us
more, celebrating the joy of life when a
together here in this chamber, the symbolic
little boy became our 12th grandchild.
center of democracy-affirm our allegiance
When I held the little guy for the first time,
to this idea we call America. And let us
the troubles at home and abroad seemed
remember that the state of the Union de-
manageable and totally in perspective.
pends on each and every one of us.
150
Administration of George Bush, 1990 / Feb. 1
God bless all of you, and may God bless
The President has concluded that this
this great nation, the United States of
proposal reflects the minimum level of U.S.
America.
forces needed in Europe to protect Ameri-
can interests and to sustain NATO's strategy
Note: The President spoke at 9:05 p.m. in
of forward defense and flexible response.
the House Chamber of the Capitol. He was
Even if-as we expect-Soviet forces in this
introduced by Thomas S. Foley, Speaker of
region are reduced even further, the
the House of Representatives. The address
United Stated does not envision the further
was broadcast live on nationwide radio and
reduction of its forces in Europe below this
television. Prior to his address, the President
new level.
attended a reception in the Speaker's Con-
ference Room hosted by the congressional
leadership.
Remarks at the Annual National Prayer
Breakfast
February 1, 1990
White House Fact Sheet on the
President's Conventional Armed Forces
Thank you, ladies and gentlemen. Thank
in Europe Initiative
you all. Thank you very, very much. Vice
January 31, 1990
President and Mrs. Quayle, and Chuck
Grassley, Sam Nunn, and my dear friend
After initial discussions with NATO allies,
Billy Graham, and Ruth. Jim Baker, that
the President concluded that changes
was a very inspiring testament of faith. I
which have taken place in Europe over the
also want to salute our very special guests
last 3 months have made it possible to pro-
who have traveled far to join us in a prayer
pose lower levels in the area of greatest
for peace and understanding: President Moi
concentration of forces: central and eastern
of Kenya; President Ershad of Bangladesh;
Europe. However, the United States will
Major Buyoya, the marvelous head of Bu-
maintain significant military forces in
rundi; President Cristiani, a longtime
friend; the Prime Minister Kisekka. And I
Europe as long as our allies desire our pres-
ence as part of a common security effort.
just express for all of us a very hearty wel-
Therefore, in his State of the Union Ad-
come, and to President Ershad, a happy
birthday greeting to go with Bev Shea's.
dress to Congress on January 31, President
We're delighted you're here.
Bush proposed to revise NATO's current
And I want to thank Bev Shea and Billy.
position in the Conventional Armed Forces
It'll probably read: Prayer Breakfast, Bev
in Europe (CFE) negotiations to lower sub-
Shea; Supporting Cast: Secretary of State;
stantially the levels of U.S. and Soviet
Billy Graham. [Laughter] A lot of Presi-
ground and air force manpower in central
dents out here, Senators and Congressmen.
and eastern Europe to 195,000 on each
side. Forces withdrawn will be demobilized.
He was magnificent. [Laughter] Magnifi-
cent music.
There would be approximately 225,000 U.S.
It's often said in my line of work that a
ground and air force personnel in Europe
candidate or a proposal hasn't got a prayer.
after CFE reductions are completed. The
Well, I'm pleased to be with an audience
proposal responds to rapid changes in east-
about whom that will never be said.
ern Europe and is designed to help propel
[Laughter] And this breakfast is the result
the CFE negotiations to an early conclusion
of years of quiet diplomacy-I wouldn't say
in 1990.
secret diplomacy-quiet diplomacy by an
The President's initiative would super-
ambassador of faith, Doug Coe. And I salute
sede an earlier proposal establishing a level
him.
of 275,000 each of U.S. and Soviet ground
And I was moved once again by what
and air force manpower stationed outside of
Sam and Liz told us of Members and staff-
their respective national territories in the
ers on the Hill who like to regularly meet
Atlantic to the Urals region.
to share a few quiet moments of prayer and
151
Skake of XLe Union
NOVEMBER
6.
1990
The Washington Post
page
A6
Stumping in Texas, Bush Pounds 'Pundits'
Poll Shows President's Approval Rating Up After Campaign-Swing Focus on Gulf
By Ann Devroy
Washington Post Staff Writer
"Hold onto your wallets, they' after you,
every single one of you," Bush told his audi-
TYLER, Tex., Nov. 5-After attacking
ences.
the usual suspects-the tax-and-spend,
In his final day, Bush also included what
weak-on-crime liberal Democrats-Presi-
has been a standard segment on Iraq in which
dent Bush today saved the last of his 1990
he pledged, "I will give the sanctions time to
midterm political criticism for Washington
work. I hope and pray there will never be a
"pundits."
shot fired in anger." But, he added, "there
Launching a three-stop Texas tour for the
will be no compromise" with Saddam Hus-
GOP ticket, Bush took on "all these great
sein. "Unchecked and uncontrolled aggres-
inside-the-Beltway experts telling us every-
sion could be world war tomorrow."
thing that's wrong with the United States."
An ABC News poll conducted over the
The president urged his audience to "go
weekend found that Bush's job approval rat-
the polls and say what's right about it." He
ing has rebounded in recent days as the
cited the Texas candidacies of Republicans
president has focused on the crisis in the
Clayton Williams for governor and Phil
Middle East in speeches around the coun-
Gramm for Senate as two things right about
try. The survey of 1,015 adults found that
America.
59 percent approved of the job Bush was
Launching into an extemporaneous end
doing as president, up from 51 percent in an
to his stump speech here, Bush mocked "the
ABC poll completed early last week.
cynics, these Washington pundits that we
After a day campaigning, Bush returned
130 Houston to sign the budget reconciliation
get on these tiring shows all the time. I
package and 13 appropriation bills that had
don't know if you're like I am, maybe you've
been the center of so much political turmoil
enjoyed these things, but I can only take so
the past two months.
much self-flagellation."
Fitzwater said he did not believe an elec-
To wild cheering, Bush shouted, "Don't
tion-eve signing of such unpopular legisla-
tell me what's wrong about this country,
tion would have any effect on the voting. "It
show us what's right. Get out and do your
is a deficit-cutting bill the country needs,"
civic duty."
he said. "Got to do the country's business."
The Tyler stop was one of three rallies
Bush addressed before returning to Hous-
ton, his legal residence, where he will vote
Tuesday. The president will have spent
three days in Texas, after campaigning the
past week in Massachusetts, Florida, Ohio,
Minnesota, Iowa and New Mexico.
White House Press Secretary Marlin
Fitzwater said that regardless of how Re-
publicans do Tuesday, the president will
continue to campaign for GOP candidates.
That's "just the way he feels about the party
and about campaigning. He'll always do it,"
Fitzwater said. Asked whether Bush will
take some credit if Republicans do well,
Fitzwater joked, "I expect we will claim vic-
tory no matter what happens."
In Texas, Bush got enthusiastic greetings
all across the state where he was introduced
as a "great Texas president" by Gramm.
Bush steered clear of mentioning Dem-
ocratic gubernatorial candidate Ann Rich-
ards by name, even when he was campaign-
ing in her home territory in Waco. But he
joked there that he was late because he and
Williams "set off the metal detectors with
our silver feet." And he grinned widely
when Gramm attacked her and said, "Anr
Richards does not speak for Texas wher
she attacks our Texas President."
Richards was the keynote speaker at the
1988 Democratic National Convention,
where she mockingly attacked Bush, saying
he was born with a "silver foot" in his mouth.
Here and on his other stops, Bush ac-
cused the Democrats of engaging in "that
tired, liberal, divide class warfare rhetoric
about soaking the rich" when in fact, he
said, their budget proposals would increase
taxes for middle-income Americans.
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POLYCONOMICS. INC.
Political and Economic Communications
Jude Wanniski
President
86 Maple Avenue
Morristown, NJ 07960
Tel. 201-267-4640
Fax. 201-539-4025
October 31, 1990
ER - INFO
The Hon. John Sununu
Chief of Staff
The White House
Washington, D.C. 20500
Dear John:
The President could make a major, positive difference on the
outcome of next Tuesday's elections with a Sunday night paid
political spot of only a minute or two, urging voter turnout on
behalf of a growth agenda in the 102nd Congress. If you can get
one voter in every precinct to show up for the GOP instead of
staying home, you can prevent a rout and save a lot of candidates
now on the ropes. They have to have a positive incentive to vote.
The President has to announce he is going to challenge the
Democrats throughout 1991 to drop their clacc warfare baloney and
pass a capital gains tax for the nation at large, and a zero
percent capgains tax for the inner cities. By linking the two
thoughts together, it is clear the issue is growth vs.
stagnation. He should mention the Democrats have blocked the
urban enterprise zone idea for 10 years! The President's message
in the final days should NOT BE plastering the Democrats as the
party of tax and spend -- a message that lost for the GOP for
half a century. He should ridicule the Democratic pledge to tax
millionaires: why don't we just shoot them all? But primarily he
must hammer on the strategy of capital tax cuts for growth. Ask
Bob Teeter what he thinks. I believe he will agree this would
make a difference.
Sincerely, as always,
Juan Jude Wanniski
10/31/90
12:10
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POLYCONOMICS
001
POLYCONOMICS, INC.
Political and Economic Communications
THE NEXT TWO YEARS
To judge by the telephone calls in the last few days, the despair among Polyconomics' clients about
the next two years of the Bush Administration is so complete that what remains of my patented
optimism seems almost perverse. The dominant school of thought, which includes many of the
Reaganauts in Washington's political and intellectual circles, is that the real George Bush has revealed
himself in the last several weeks as a man without vision or solid beliefs, that he doesn't even realize
how thoroughly he has been humiliated by the Democrat brain-trust, that he isn't going to change,
that we are stuck with him, and should dig in for the duration; it is utterly hopeless to expect him to
repair his presidency in any meaningful way. A smaller, less abject school assumes there will be
serious soul-searching by the President and his family and friends after next Tuesday's elections. GOP
congressional leadership will chip in with gloves-off advice. So will the Cabinet. And as a result,
changes will be made in people and policies. It only takes a few people in key posts to screw up an
entire government. It only takes a few changes to get things humming again. At this point, though,
it takes an unusual degree of optimism to believe the President will know what changes to make.
If we stand back for a moment, we can begin to rebuild our confidence about the future with the
simple realization that even successful political revolutions have to expect to surmount
counterrevolutionary forces. As mighty as they may seem, the Democrats are not an especially
interesting force. The class-warfare themes they've been playing lately are so moth-eaten that the
Democrat leaders are rightly astonished that they've worked at all. The Gipper would have shredded
that stratagem, as he often did when they would dust it off.
No, the really interesting political party remains the GOP. What we've seen this year was certainly
messy, but it may have been the Last Hurrah of the Old Guard. When three out of four House
Republicans voted with Rep. Newt Gingrich against the White House budget deal with the Democrats,
it should have been clear the party's base is solidly with its growth wing. These backbenchers, who
for the most part were originally attracted to the banner of growth and opportunity Rep. Jack Kemp
ran up in 1976, are getting stronger each year, not weaker. If President Bush is to win re-election in
1992, he will have to accommodate his party's future, not its past.
In 1980, the Reagan Revolution wrested power away from the austerity forces that had dominated
the Republican agenda for half a century. George Bush, of course, had come out of that tradition, but
in the Reagan years, as Vice President, he seemed swept up by the success of the revolutionary
economic ideas at their center. In his New Orleans "read my lips" acceptance speech, he seemed
converted, but in politics, conversions are rarely complete. The idea that deficits are immoral has been
the curse of the GOP from Hoover to Dewey, Goldwater, Nixon and Ford, a guilt trip the Democrats
have gleefully encouraged.
The Old Guard in the Bush Cabinet, as exemplified by Treasury Secretary Nick Brady, has always
been vulnerable to the assertion that the Reagan growth years were bought by credit-card deficits.
In 1981, the Old Guard captured David Stockman at the budget bureau with the immorality argument,
spawning the nation's worst recession since the 1930s. In 1990, Richard Darman, arch-enemy of
"now-nowism," became the budget moralist in his quest for a deal at any price. Until the very last
moment, the growth forces had pinned their hopes on White House chief of staff John Sununu, who
had promised there would be no deal without a capital-gains tax cut to offset the contractionary
elements of the summit deal. When Sununu, who was wedged between Brady and Darman, caved in,
the rout within the administration was complete.
In blocking the first deal, Newt Gingrich performed an incredibly important service to his
Republican Party. Without his leadership, the growth wing of the GOP would have been without a
leader, Housing Secretary Jack Kemp being inside the Cabinet, bound hand and foot. Had Gingrich
86 Maple Avenue
Morristown, N.J. 07960
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002
not elevated the opposition, we could not now be contemplating a vigorous reassertion of the GOP's
growth wing next year. It would be scattered and demoralized. The White House is putting out the
word that Gingrich forced them to agree to a worse deal, in order to get Democrats to pass what
Republicans would not. The argument itself displays a certain intellectual vacuity that is the hallmark
of the unprincipled pragmatist. To the naked eye, both junk piles that Gingrich tried to sweep from
the House floor were of equal height. The stir he made thrilled the growth forces in the GOP. The
battle was lost, but the banner is still being carried in strategic retreat.
Regrouping for 1991 and beyond will be most successful if it does not assume that President Bush
will come 'round automatically. Gingrich cannot expect in January, when the Democrats put forward
their latest plan to tax the rich with a millionaire surtax, that the Bush administration will be any
more successful in countering this political theatre than they were this year. House and Senate
Republicans will be advancing their own growth agenda in January, not out of any inflated idea that
the Democrat Congress will lie down and adopt it. They will have to prepare for 1992 and the
Republican platform, and a Presidential race with or without George Bush at the top of the ticket.
Unless the President makes some critical changes in his economic and political team, he will
continue to find himself floundering with a divided and dispirited party, sinking in the polls. As the
GOP cannot be united under an austerity banner, the only alternative is a return to growth. The
President's tendency, of course, will be to reach down into his bag of old acquaintances even in
putting together a White House reorganization. It is already in the breeze that an "economic post" will
80 to retiring Rep. Bill Frenzel of Minnesota, who the President knows from his days on House Ways
and Means in 1967-70. Frenzel is dyed-in-the-wool, the ranking Republican on the House Budget
Committee, whose chief economist is Martha Phillips, wife of Kevin Phillips, who has been among
the most relentless foes of the Reagan Revolution.
Among the most important posts to be filled is a political one, the chairmanship of the Republican
National Committee. From the earliest days of the Bush Administration, RNC Chairman Lee Atwater
has been incapacitated by a malignant brain tumor. Because he is one of the few political operatives
who enjoys the confidence of the President, Atwater's absence as an active player this year left
Darman and Sununu in complete charge of the political scene. Robert Teeter, the President's pollster,
had been counseling a growth strategy from the beginning of the year. But all critics of the Darman
budget strategy have been muffled on the grounds that he is in charge, and that's that. Atwater at full
strength, could have broken through the palace guard. Other GOP operatives like Ed Rollins of the
House Campaign Committee were alarmed at the process throughout, but could not get a hearing.
Clearly the best choice for RNC Chairman would be Jack Kemp, at least at this point with the
GOP having been successfully recast by the Democrats as The Party of the Rich. More than any other
Republican, Kemp is identified with the poor, the homeless, the minorities, economic growth and
entrepreneurial capitalism. Kemp at the RNC would send the strongest signal that the Bush
Administration is getting back on that track. At the RNC, especially with the President contemplating
1992, Kemp would be a player to be reckoned with in economic policymaking, not the outsider he
has been to date. The GOP would recoup the youth vote and make deep inroads in black and Hispanic
America. Kemp would have two dozen African-Americans recruited to run for Congress by '92. One
would instantly have to bet on Bush's re-election if he appointed Kemp. Who, though, is the front-
runner for the RNC? I'm told that it is the President's loyal friend Robert Mosbacher, Secretary of
Commerce, yachtsman, polo player, and one of the wealthiest men in the Cabinet.
Sununu as chief of staff would have been exemplary, but for his excessive confidence in and
unalloyed support of Darman. Even now, Sununu is taking most of the heat for the budget debacle,
demonstrating the ability of Darman to deflect criticism from himself. It's at least possible to imagine
Sununu recovering and functioning well in the next two years of a growth administration. It's hard
to imagine Darman hanging around, however. Now that he has bagged his $490 billion Deal, he would
simply be pushing around peanuts, and he will never again enjoy the confidence in his skills that the
President and Sununu placed in him. One would hope that Treasury Secretary Nicholas Brady would
resign after more than two hapless years on his beat. There are any number of younger growth-
oriented Wall Streeters who the President knows from the Yale Alumni Club who could quickly get
Treasury in shape. I will send the names if asked. I'd really love to be bullish on Bush again.
Jude Wanniski October 31, 1990
Skake of the Union
ER - INFO
THE WHITE HOUSE
WASHINGTON
October 29, 1990
MEMORANDUM FOR GOVERNOR SUNUNU
FROM:
EDE HOLIDA MA
SUBJECT:
Jack Kemp's Economic Empowerment Task Force
Secretary Kemp sent out the attached letter last week
announcing the first meeting of the DPC Economic Empowerment Task
Force on November 15. He has asked each agency to bring ideas
for empowering low-income people to that meeting for discussion.
Leading up to that meeting the Task Force will probably have
one or two meetings with outside experts, such as Stuart Butler
of the Heritage Foundation, to educate the group on what it means
to empower people. These ad hoc meetings would be chaired by
Charles Kolb, who acts as the coordinator for the Task Force.
I will keep you updated on the activities of the Economic
Empowerment Task Force.
Attachment
SUMMATMENT
AND'
/
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
THE SECRETARY
WASHINGTON, D.C. 20410
October 23, 1990
MEMORANDUM FOR: Members of the Domestic Policy Council (DPC)
Economic Empowerment Task Force
FROM:
Jack Kemp, Chairman Kemp
SUBJECT:
First Task Force Meeting
The first meeting of the Domestic Policy Council's Economic
Empowerment Task Force will take place on November 15, 1990, from
10:00 to 11:30 a.m. in the Roosevelt Room of the White House, and
will be for principals only. Enclosed is a copy of the charter
which outlines the President's mandate to our Task Force. Please
come prepared to discuss what your Department can contribute to
this ambitious and important undertaking.
With this in mind, I'd like to ask you to prepare a brief
presentation--about five minutes in length--outlining three or
more ideas to empower low-income Americans which could be
implemented in your Department. Don't limit yourself to short-
term, incremental changes in existing programs. Although such
modifications will play a role in developing our anti-poverty
agenda, I want all of us to be challenged, especially in this
planning stage, to consider ambitious, far-reaching ideas.
Please submit your ideas in writing to Anna Kondratas,
Assistant Secretary of HUD for Community Planning and
Development, by COB November 5, 1990. Also, please call Charles
Kolb, Deputy Assistant to the President for Domestic Policy and
staff coordinator of the Task Force, to confirm your attendance.
I look forward to seeing you at the first Economic Empowerment
Task Force meeting. A list of Task Force members is enclosed.
Enclosures
THE WHITE HOUSE
WASHINGTON
September 4, 1990
MEMORANDUM FOR THE VICE PRESIDENT
THE SECRETARY OF THE TREASURY
THE SECRETARY OF INTERIOR
THE SECRETARY OF AGRICULTURE
THE SECRETARY OF LABOR
THE SECRETARY OF HEALTH AND HUMAN SERVICES
THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT
THE SECRETARY OF EDUCATION
THE DIRECTOR OF THE OFFICE OF MANAGEMENT
AND BUDGET
THE CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISORS
THE ADMINISTRATOR OF THE SMALL BUSINESS
ADMINISTRATION
THE ASSISTANT TO THE PRESIDENT FOR ECONOMIC AND
DOMESTIC POLICY
SUBJECT:
Economic Empowerment Task Force
As approved by the President, an Economic Empowerment Task
Force will be formed under the Domestic Policy Council to
continue the development and coordinate the implementation of the
Administration's anti-poverty agenda. The Task Force replaces
and succeeds the Low Income Opportunity Board and will report to
the President through the Domestic Policy Council.
The Economic Empowerment Task Force will: 1) advance the
Administration's comprehensive economic empowerment strategy;
2) identify new initiatives consistent with the principles of the
Administration's economic empowerment and budget policies;
3) coordinate the review of current programs by each Department,
including a study of the distributional effects of existing
programs; and 4) develop and implement proposals to integrate
services and move toward a "client-centered" approach.
The Secretary of Housing and Urban Development will chair
the Task Force. Task Force members shall be Assistant Secretary
rank or higher. Staff assistance will be provided by each
Department 88 needed and coordinated by the Deputy Assistant to
the President for Domestic Policy.
The chairman of the Task Force will coordinate its
activities with the Executive Secretary to the Domestic Policy
Council.
2
Please forward the name of your agency's representative to
John Schall, Deputy Executive Secretary to the Domestic Policy
Council, at 456-7090 as soon as possible.
Thank you very much for your cooperation.
ONLA Dick Thurnburgh
Chairman Pro Tempore
Domestic Policy Council
ECONOMIC EMPOWERMENT TASK FORCE
Membership as of September 18, 1990
CHAIRMAN
The Honorable Jack Kemp
Secretary of Housing & Urban Development
Rm. 10000
451 - 7th St., S.W.
Washington, D.C. 20410
PHONE: 708-0417 (Leah Levy)
FAX #: 708-2476
MEMBERS
John Schall
Deputy Executive Secretary to the
Domestic Policy Council
Rm. 222 Old EOB
The White House
Washington, D.C. 20500
PHONE: 456-7090 (Mary Tsivgoulis)
FAX #: 456-2223 OR 456-7739
Charles Kolb
Deputy Assistant to the President
for Domestic Policy
2d Floor/West Wing
The White House
Washington, D.C. 20500
PHONE: 456-6515 (Peggy Smith)
FAX #: 456-2878
Richard (Dick) Schmalensee
Member
Council of Economic Advisers
Rm. 315 Old EOB
Washington, D.C. 20500
PHONE: 395-5036 (Francine)
FAX #: 395-6947
Thomas (Tom) Scully
Associate Director for Human Resources,
Veterans and Labor
Office of Management and Budget
Rm. 262 Old EOB
Washington, D.C. 20500
PHONE: 395-5178 (Margaret)
FAX #: 395-7289
- 2 -
Allan (Al) Hubbard
Assistant to the Vice President
for Domestic Policy
Rm. 286 Old EOB
The White House
Washington, D.C. 20500
PHONE: 456-6614 (Tracey St. Pierre)
FAX #: 395-4031
Anna Kondratas
Assistant Secretary for Community Planning
and Development
Dept. of Housing & Urban Development
Rm. 7100
451 - 7th St., S.W.
Washington, D.C. 20410
PHONE: 708-2690 (Stella Patterson)
FAX #: 708-3363
Catherine Bertini
Assistant Secretary for Food
& Consumer Services
Dept. of Agriculture
Rm. 207-W Administration Building
14th & Independence Ave., S.W.
Washington, D.C. 20250
PHONE: 447-7711 (Gerri Strickland)
FAX #: 475-3100
Helen E. (Betsy) Brand
Assistant Secretary for the Office of
Vocational and Adult Education
Dept. of Education
Rm. 4090 Switzer Building
330 C St., S.W.
Washington, D.C. 20202-7100
PHONE: 732-2251 (Elaine Matthews)
FAX #: 732-3897
Roberts T. Jones
Assistant Secretary for Employment &
Training Administration
Dept. of Labor
Rm. S-2307
Washington, D.C. 20210
PHONE: 523-6050 (Jean)
FAX #: 523-6827
- 3 -
William Lucas
Director, Office of Liaison Services
Dept. of Justice
Rm. 4213 Main Justice
Washington, D.C. 20530
PHONE: 514-3465 (Doris Brown)
FAX #: 514-2504
Frank A. Bracken
Undersecretary of Interior
Dept. of Interior
Rm. 5100 Main Interior
Washington, D.C. 20240
PHONE: 208-4863 (Doris Johnston)
FAX #: 208-7508
Martin Gerry
Assistant Secretary for Planning
and Evaluation
Dept. of Health & Human Services
Rm. 415-F Humphrey Building
200 Independence Ave., S.W.
Washington, D.C. 20201
PHONE: 245-1858 (Mary Williams)
FAX #: (Try First -- 245-6518 OR 472-6927 OR 245-6699)
Sidney L. Jones
Assistant Secretary for Economic Policy
Dept. of the Treasury
Rm. 3454 Main Treasury
Washington, D.C. 20220
PHONE: 566-2551 (Patsy Kinser)
FAX #: 786-8452
Mitchell Crusto
Associate Deputy Administrator for
Finance, Investment and Procurement
Small Business Administration
Suite 900
1441 L St., N.W.
Washington, D.C. 20416
PHONE: 653-2842 (Brenda McClough)
FAX #: 653-2262
Miss 3ty Union
zile
October 1, 1990
MEMORANDUM
RE: A "Post-Budget Summit" Economic Agenda
This memo presents a menu of economic reforms that could
be incorporated into the President's "post-budget summit"
economic agenda this Fall. The proposals are presented in four
sections: Tax Proposals, Spending Proposals, Competitiveness
Proposals, and Reforming Government.
TAX PROPOSALS
Reduce the Capital Gains Tax
Reducing tax rates on capital gains would promote
investment and increase economic growth, help American
businesses compete in the global environment, increase
receipts for the Treasury, and increase jobs and the
quality of life for all Americans.
Allen Sinai, of the Boston Company Economic Advisor
recently testified before Congress that a full-scale 50
percent capital gains cut would increase total GNP by 2.8
percent ($155 billion) by 1995.
Capital Losses Deductibility; Indexing of Capital Gains
Allowing capital losses to be deductible and indexing of
gains against inflation would enhance growth and
competitiveness, and return to the original intentions
behind the tax code's treatment of capital gains.
Reform the Corporate Income Tax
Establishing a cash-flow corporate income tax would
eliminate the current bias in favor of debt. Businesses
could expense all new investments.
For foreign-owned business subsidiaries: examine the
problem of transfer pricing in determining whether such
businesses are paying the proper amount of tax.
-2-
Increase the Personal Exemption
The federal income tax burden on American families with
children has soared by over 2,500 percent since 1948, far
beyond increases faced by single individuals and married
couples without children. To have the same value relative
to income it held in 1948, today's personal exemption
would have to be raised to about $6,300.
Certain public policy organizations with special expertise
in family policy, such as the Family Research Council and
the Heritage Foundation, recommend increasing the personal
exemption on federal tax payments beyond its current level
of $2,000 per dependent, arguing that this would greatly
reduce the financial burden of maintaining a family.
The Progressive Policy Institute, an offshoot of the
Democratic Leadership Council, in its recent report
"Putting Children First,' suggests increasing the personal
income tax exemption for children to at least $6,000.
Thomas Humber of the Heritage Foundation proposes
increasing the personal exemption to $6,300. Humber
writes:
"Restoring the personal exemption to the
equivalent of its level after World War II would
allow that family to keep thousands of dollars
more of its own money, making the family less
dependent on government, improving access to
health care, child care and education
opportunities, and giving the working poor a
fighting chance to climb out of poverty."
O
Expand The Earned Income Tax Credit
The Earned Income Tax Credit (EITC) promotes family
stability and self-sufficiency by targeting assistance to
low-income families with children. Unlike many other
welfare programs, the EITC is available to two-parent
families as well as single-parent households. It
encourages work rather than dependency, and provides
greater benefits as income increases.
Given these benefits of the EITC, many policy experts,
including those at the US Chamber of Commerce, the
Progressive Policy Institute, the Heritage Foundation and
politicians of both political parties have called for an
expansion of the EITC. The Republican party pledged to
expand it in its 1988 platform:
"
we will work to boost
-3-
the incomes of the working poor through the earned income
tax credit, especially for workers who support children."
Most of these proposals call for increasing the credit,
tying the credit to the number of children in a family,
and making more workers eligible.
Reform Pension/Retirement Plans
Rep. Newt Gingrich recently proposed creating "IRA Plus"
accounts that would give Americans greater flexibility to
use their retirement accounts in medical emergencies or to
send a child to college without early-withdrawal
penalties. Gingrich also proposed allowing penalty-free
withdrawal from IRAs or 401(k) retirement plans to buy a
house for the first time.
Reduce Social Security Taxes
Since the Social Security system was created in 1935, the
burden of federal payroll taxes on middle-income families
has risen continuously. Eighty percent of all American
families now pay more in federal payroll taxes than they
do in federal income taxes.
A Social Security payroll tax deduction could return
Social Security to a pay-as-you-go-system, increase fuel
productivity and job creation while reducing unemployment
and welfare dependency. Recent proposals to reduce the
payroll tax include those by the Progressive Policy
Institute, the Heritage Foundation, Senator Pat Moynihan
and Rep. Newt Gingrich.
Eliminate the Social Security Earnings Test
The "earnings test," which reduces Social Security
benefits for working senior citizens, imposes marginal tax
rates of 50 to 70 percent on many elderly workers, and
thus discourages many senior citizens from working. The
federal tax code should not discourage older Americans
from holding jobs and contributing to economic growth.
The Heritage Foundation recommends eliminating the
earnings test for workers between the ages of 65 and 69,
and Sen. Armstrong introduced legislation last session to
increase the income threshold level on the earnings test
so that it adversely affects fewer elderly workers.
-4-
Allow Ownership of Social Security
Individuals could have title to their Social Security
accounts, thereby permitting a person ownership of at
least what he or she paid in, plus interest.
Establish A 19.5 Percent Flat Rate Tax
A flat tax would have the benefits of simplicity (and
therefore greater public respect) and significantly pro-
growth supply-side effects. Such a plan would work by
greatly simplifying the existing scheme of deductions.
The structure of a system with a 19.5 percent rate would
look something like the following:
Deductions would be phased out between $50,000 and
$100,000 of earned income and/or $1,000 and $51,000
of unearned income. Deductions could only be taken
against earned income:
-- Mortgage interest with ceiling $6,000
-- Charitable giving with ceiling (50 percent of
income for cash, 30 percent for assets).
-- Medical expenses in excess of 7.5 percent of
income.
-- Employee contributions to social security.
--
Earned income deduction of $6,000 plus 20
percent of earnings up to $25,000.
In addition, there could be an Refundable Dependant
Exemption element as follows:
--
50 percent of earned income up to $5000 for the
first child and 25 percent, up to $2500 for each
additional child.
-- Phased out between $50,000 and $100,000 of
earned income and/or $1,000 and $51,000 of
unearned income.
O
Other Tax Reforms
Some limitation or elimination of mortgage deductions, and
state and local tax deductions would be pro-competitive.
-5-
SPENDING PROPOSALS
Enhanced Rescission Authority/Line Item Veto
According to a February 1989 Gallup poll, 70 percent of
all Americans favor giving the President the power of a
line-item veto. A consensus has emerged that it will be
nearly impossible for the country to control spending
without such power. The nation's states are way ahead of
the federal government in this area -- 43 of nation's
states already have the line item veto. Enhanced
rescission authority would permit the President to reduce
(or "zero-out") spending bills, thus providing an adding
element of flexibility over the line item veto.
COMPETITIVENESS PROPOSALS
O
Encourage Educational Choice
The American people understand that education is also a
competitiveness issue. They also know that education
spending has increased -- in real terms by about a third
over the last decade, while the number of students has
remained about the same -- and yet educational
performance, as measured by standardized tests such as the
SAT, and by comparison with the students of other
countries, continues to decline. A grassroots consensus
is growing that the only way to attain true education
reform is to infuse the system with competition and
accountability through choice. A recent Gallup poll
revealed that 63 percent of all Americans favor parental
choice in public schools. Already, at least eight states
have instituted choice programs.
Vice President Quayle recently commented, "Nothing is more
important to our nation's ability to compete than
improving the education of our young people. Let me tell
you -- on the competitiveness agenda, education comes
first."
Reform Welfare Programs
Experts across the country have suggested plans to
guarantee that every person in America who has a job
-6-
receives a package of aid that places him or her above the
poverty level.
Mickey Kaus, in "The Work Ethic State," proposed that
every American be ensured a job, and that to be eligible
for any benefits an individual must be employed. Pete
Dupont propose a "Work and Family Responsibility Plan," a
job-opportunity program that offers jobs to all able-
bodied Americans at 90 percent of the minimum wage. And
in February 1990, the Progressive Policy Institute
proposed an "American Working Wage," whereby every family
with an employed member would be assured non-poverty
status.
REFORMING POLITICS
Limit Congressional Terms
Calls for limiting the number of terms state and federal
legislators serve have been growing in recent months.
Oklahoma has recently passed such a measure on state
legislative terms. Colorado and California are each
addressing proposed initiatives to limit congressional
terms. This sentiment matches the anti-
Congress/PAC/special interest sentiment growing throughout
the country.
PAC Reform
Ethics
Diminish Litigiousness
Increasingly, individual's efforts are being paralyzed by
the growth of our litigious society: communities cannot
attract doctors because of the enormous insurance fees
doctors face, individuals' entrepreneurial projects are
stifled by complicated liability requirements, and
countless sums of money are consumed by our legal system
facing complicated law suits. It is estimated that
Americans spend $300 billion each year, directly and
indirectly, to cover increased liability. This trend is
particular to America, which comprises 5 percent of the
world's population, yet has 60 percent of the world's
lawyers.
-7-
Measures to diminish the litigious nature of our society
include ending the deductibility of corporate legal fees
and adopting the "English Rule" as part of Federal Civil
procedure.
###
?
MARKET CONSENSUS SURVEYS, INC.
MARKET CONSENSUS
01/05/2900 03:17
Facsimile For Distribution To: ED ROGORS
FROM
Company: WH
At fax#:
202-456-2397
Pages to follow: 5
FROM:
WILL FELTUS
MARKET CONSENSUS SURVEYS, INC. 7700 Leesburg Pike, Falls Church VA 22043
Telephone: 703/734-7941 Fax: 703/790-9389
MESSAGE:
TO
ED- THIS WHAT WE TALKED ABOUT
SATURDAY.
P.01
MARKET CONSENSUS SURVEYS, INC.
7700 Leesburg Pike, Falls Church VA 22043
Telephone: 703/734-7941 Facsimile: 703/790-9389
Я
MEMORANDUM
TO:
Ed Rogers
Via fax 202-456-2397
FROM:
Will Feltus his
DATE:
October 12, 1990
Ed, enjoyed secing you at Thad's event the other night. Thus far we've
contributed about $100,000 to Senate campaigns and state party federal committees.
I've also spent a good deal of time talking with campaign people, AA's, etc.
With only one week left in Battle of the Budget II and the election rapidly
approaching, it be helpful to go on the offense. A suggested two-step pre-clection
tactic:
1. The President tells this Congress to go home. If the latest Democratic
Ways & Means plan runs into the least amount of trouble, the President
should ask this Congress to pass a continuing resolution until the end of
January, 1991, sign it and send the 101st Congress home. Let's see if the
new Congress can do a better job; we already know it can't do any worse.
This strategy would still leave open the possibility of a lame duck session of
politically brave lawmakers but not make it necessary.
2. The President asks the country to send him a new Congress who can get
the job done. After sending this Congress packing -- thus clearly affixing
blame for the problem -- the President needs a new Congress he can work
with. "Get me some fresh blood." The 101st Congress should be the last
Congress which fails to solve our country's deficit problem.
Very few voters know that the "old" Congress passes out of existence and a
"new" Congress is elected to take its place. If the President could educate voters on
this, it would focus the electorate's anti-incumbent energy on the "old" Democratic
controlled Congress. To get the message out might require national spot buys;
given the rich/poor drubbing we got on capital gains, I don't think we want to
count on the so-called free media.
I know the original strategy was not to nationalize the election by a theme
or advertising. Unfortunately, it is becoming nationalized on it's own and
advertising may be necessary to stamp our message on it. If Presidential spots are
done, one third of the buy should be Mrs. Bush into the camera.
1991
Regardless of how the 1990 elections turn out, they are already being
interpreted as a mandate for change. We need to make sure that those changes take
place in 1991, lest voters also change their Presidential voting preferences in 1992.
P.02
01
FROM
21:20 0061/50/10
Looking ahead to 1992, what
ly
more important than what actually h
ion
which is deeper than now expected, 1
tion
will be determined by how politically
next fall.
Mid St of UnionZili
not
This argues for a fast start an
attractive ideas both (1) solve a probl
Mia
was
the strength of supply side economics
X
cut.
National Dividend Act
The only new idea I've heard i
criteria is the National Dividend Act.
supporters (see the attached testimonia
an.
He is a successf Florida businessman
met
him
in
1987,
when he commissioned MOR and Peter Hart to do a poll on his proposal. It was
suported by a two-to-one margin (see attached). Importantly, it was somewhat
more popular among independents and Democrats than among Republicans. The
National Dividend Act proposes:
1. To repeal the double taxation of dividends, place a constitutional or
statutory cap on income tax rates, and pay all corporate income taxes into a
separate National Dividend Trust Fund.
2. Instead of being spent by Congress, all monies in the National Dividend
Trust Fund would be equally distributed in quarterly dividends to every
adult or registered voter - unless there was a deficit.
3. Get the budget in balance through a combination of spending freezes
and taxes, and the Trust Fund will start running a surplus in just a few
years.
Checks could start going out during a Republican administraton. The
beauty of the idea is that it rewards a balanced budget. Once voters understand
they can get dividend checks worth an estimated $900 per year, a public interest
group is created with clout which dwarf the special interest advocates of transfer
payments and other programs. Congress wouldn't dare fail to balance the budget.
The idea also has ancillary benefits. Profit becomes a good word, instead of
a bad one -- when companies make more money, the dividend is bigger. It also
encourages Americans to buy American. (Of course, we could certify foreign
companies' which pay equivalent amounts into the fund.)
I'm sure there are a half dozen MBA/CPA types at OMB who can tell you
why this won't work. However, based on the poll I did, there are a 140 million
Americans who will think it is a good idea. That will look like a pretty good
number in a couple of years.
Ed, to be frank, I could use the $900 myself.
CC:
Teeter, Charlie B.
20'd
TO
FROM
03:18 0061/50/10
THE ULTIMATE SELF INTEREST
MARKET OPINION RESEARCH/PETER HART POLL
TABLE 3
TABLE 2
Based on what you understand about the National Profit Sharing
Now, I'd like to 80 over some of the specific provisions of the National Profit
and Dividend Act, do you favor or oppose the proposal?
Sharing and Dividend Act, and have you tell me if you think each one is a good
idea or a bad idea?
01/85/1980 03:19 FROM
Total
Ren.
Indep.
Dem.
Good Bad Don't
Idea Idea Know PDIᵃ
Strongly favor
22%
21%
20%
24%
Just somewhat favor
34
31
35
37
In any year there is a federal deficit, money
from the corporate trust fund would be used
Just somewhat oppose
14
15
16
13
to pay off as much of the deficit as
possible.
76% 20% 4% +56
Strongly oppose
17
20
15
14
Federal income taxes paid on corporation
Don't Know
12
13
14
11
profits would be put in a trust fund at the
U.S. Treasury, and kept separate from
Refused/NA
I
I
I
1
income taxes paid by individuals.
62
27
11
+35
Total
100%
100%
100%
100%
Money left in the trust fund after paying the
deficit would be paid out as a national
profit sharing dividend.
62
32
5
+30
Collapsed:
The national profit sharing dividend would
Favor
56%
52%
54%
61%
average as much as $900 per person each year.
61
33
6
+28
Oppose
31
35
31
28
TO
The profit sharing dividend would be paid to
Total
100%
100%
100%
100%
all adult American citizens, 18 years or
older, who are registered to vote.
56
40
3
+16
PDI
+25
+17
+23
+33
The same national profit sharing dividend
would be paid to all adult Americans,
regardless of their income level.
53
43
4
+10
PDI-Percentage favor minus percentage oppose.)
a
PDI: Percentage Difference Index-% "Good idea" minus % *Bad idea."
P.04
04
95
THE ULTIMATE SELF INTEREST
MARKET OPINION RESEARCH/PETER HART POLL
TABLE 4
TABLE 5
Based on what you've heard $0 far about the National Profit Sharing and
01/05/1988 03:19
Here are some statements others have made about the National Profit Sharing and
Dividend Act, and, for each one, please tell me if you agree or disagree with
Dividend Act, would you say that this proposal is a good idea which
it.
should be considered by Congress or a bad idea which should not be
considered by Congress?
Neither Agree
Total
Rep.
Indep.
Dem.
FROM
Nor Disagree
Agree and Don't Know Disaaree PD1ª
Very good idea
26%
23%
25%
31%
Corporations and business
Fairly good idea
38
36
36
40
leaders are very likely to
oppose the National Profit
12
6
8
Sharing and Dividend Act.
78%
8%
13%
+65
Fairly bad idea
9
Very bad idea
14
IT
14
12
Because Americans would want
to receive a national profit
sharing dividend check, members
Don't know
12
13
20
8
of Congress would become much
*
.
I
I
more relucient to spend more
Refused/NA
than the government takes in.
63
9
29
+34
If Congress is ever able to
balance the federal budget,
a national profit sharing
dividend would help keep
Suppose a candidate for Congress supported the National Profit
the federal budget balanced.
61
12
28
+33
Sharing and Dividend Act -- would this give you a more favorable
or less favorable impression of the candidate?
TO
Since Americans contribute to
the profitability of corpor-
ations through their consumer
Total
Rep.
Indep.
Dem.
purchases, it makes good sense
to let Americans share in
those corporate profits.
62
8
31
+31
More favorable
52%
49%
40%
59%
Instead of paying a national
No difference
20
19
30
18
profit sharing dividend, it
16
would be better to Ict the
Less favorable
19
23
19
U.S. government spend the
Don't know
8
8
10
7
corporate income tax revenues
on federal projects and
*
programs.
45
II
+1
Refused/NA
1
1
**
44
The National Profit Sharing
and Dividend Act is just
another government giveaway
program.
36
12
52
-16
P.05
97
96
"As a co-sponsor of the National Dividend Act, I assure you that I
will continue to urge my colleagues to consider the merits of this
legislation."
Carrol A. Campbell, Jr.
Member of Congress
A FEW COMMENTS ON MR. PERRY'S PLAN
"I believe this proposed legislation has a great deal of merit, and I
"A daring plan to preserve the free enterprise system and reverse the
hope that the House Ways and Means Committee will consider it
trend toward national bankruptcy brought on by yearly federal
carefully in the weeks ahead."
01/05/1900 03:20
budget deficits has been developed and should be implemented.
Howard H. Baker, Jr.
Congress won't accept the National Dividend Plan and members
United States Senate
will not until they get pressure from the grassroots."
Dr. Martin R. Gainsbrugh
"It's a great idea."
FROM
Former Chief Economist
Stanley J. Modic, Editor
The Conference Board
Industry Week
"THE NATIONAL DIVIDEND PLAN is more complex than the
"The logic is irresistible, and presents our lawmakers with a
idea of a balanced-budget amendment, which is inching its way to
plausible structure for a truly popular economy."
national consideration. Yet it holds the hope of achieving far more
widely shared goals."
Editorial
The Patriot-News Co.
Thomas Gephardt, Associate Editor
Harrisburg, Pennsylvania
Cincinnati Enquirer
"I want to assure you of my continuing strong support for this
"As deficits continue to mount, this would be a good time for
legislation, and of my efforts to see that it does receive favorable
Congress to seriously consider a revolutionary plan to refinance the
action."
country. Some profound economic minds that have studied the
TO
concept-have become converts."
Guy Vander Jagt
Member of Congress
Editorial
The Sacramento Union
"I think your success to date is evidence of your devotion to the issue
and we will watch with interest action on this legislation over the
"I can't tell you how much I admire your steadfastness. The
next several months."
compelling logic of your case (and the interesting trade-offs you've
developed). Too bad there aren't more great Americans like you to
Donald L. Calvin
carry the ball."
Executive Vice President
New York Stock Exchange
William E. Simon
Former Secretary of the Treasury
4
5
P.06
THE WHITE HOUSE
WASHINGTON
October 18, 1990
THE CHIEF of STAFF
has seen
MEMORANDUM FOR GOVERNOR SUNUNU
FROM:
EDE HOLIDAY MA
SUBJECT:
Summary of Fall 1990 Issues Assessment Project
I. OVERVIEW
During the past few weeks, the Office of Cabinet Affairs worked
with the Cabinet and key agency heads on a project to assess
their Fall agendas and to integrate their plans with the four key
domestic policy themes the President discussed at the September
17 Cabinet meeting. This project has three elements:
1. Written reports. In September, we solicited a report on the
key activities, initiatives and problems of each department (save
State and Defense) and the key agencies for September through
December. These very detailed reports -- some 350 pages
total -- were assembled and distributed among White House staff.
2. Departmental meetings. Using the reports as a guide, we
conducted a series of meetings attended by senior management
staff from each department or agency and a core group of
individuals from the White House (including Cabinet Affairs, OMB,
Press and the Offices of Policy Development and Communications).
The meetings were held both to review the long-range reports and
help frame a common understanding of the principles and themes
that undergird the Administration's domestic policy. Part II of
this memo elaborates on those meetings.
3. Follow-up. This project has greatly improved our
understanding of what to expect from the departments and agencies
in the coming months. Part III of this memo contains a summary
of the key items still pending. Because our meetings revealed a
number of issues that seem to require interdepartmental
coordination, White House guidance or policy review, this
memorandum makes a number of recommendations for appropriate
follow-up to the Fall assessment.
II. THE DEPARTMENTAL MEETINGS
The series of departmental meetings was conducted over three
weeks and had two basic purposes.
2
First, the meetings allowed a thorough review of each
department's written report -- a modified and significantly
expanded version of the weekly Cabinet Report. In each case we
reviewed the department's highest priorities for the September
through December period.
On the whole, these management reviews were extremely valuable.
In discussing the reports, numerous other long-range projects and
general concerns were ventilated. Already we have identified and
reconciled perhaps two dozen significant issues that came up in
the Fall assessment. We have distributed information about
various problems or initiatives described in the reports to
affected White House offices. Other issues require further work
or review, as described in the department-by-department entries.
Second, the meetings were organized to cement a common
understanding about the basic elements of Administration domestic
policy and to develop a common rhetorical currency to explain our
domestic policy.
We encouraged a vigorous exchange of views between White House
and departmental staff -- typically a department was represented
by the Deputy Secretary, the chief of staff and the senior public
affairs officer -- on the themes common to so much of the
Administration's domestic policy. We encouraged each department,
when possible, to frame its priorities in light of what the
President identified at the September 17 Cabinet meeting as the
four key domestic themes he will continue to stress in the coming
months:
1. an anti-recession/growth agenda that continues
regulatory restraint and combats protectionism.
2. education, empowerment and "kinder-gentler" issues, such
as the importance of public service.
3. crime and drugs.
4. energy and the environment.
Because this initial agenda assessment exercise proved helpful to
us, I propose to conduct this agenda assessment with the
departments and agencies on a regular basis, once every four
months. We will ask for modifications in the written reports and
will conduct the follow-up meetings somewhat differently and more
quickly. It is, however, a management effort that is well worth
making routine.
III. ON THE HORIZON AT THE DEPARTMENTS
A department-by-department review of key issues follows. The
brief entries are not intended as an exhaustive treatment of any
3
single item, but as a handy summary of pending matters. In cases
where it appears that follow-up is desirable, we have made
recommendations.
Although the President's summary of his four broad domestic
agenda themes was delivered after the departmental reports had
been submitted, his four themes clearly permeate the domestic
policy agenda of the departments. Our summary of pending issues
underscores this fact by aggregating the entries, where possible,
into categories defined by the four themes.
Also attached is a brief index to our summary of the pending
departmental issues.
4
INDEX OF DEPARTMENTAL SUMMARIES
I. Anti-recession/Growth Issues
Implement a Market-Oriented Farm Bill (Agriculture).
Complete Uruguay Round Negotiations (Agriculture).
Complete the Canadian Open Border Agreement (Agriculture).
Prioritize and Target International Trade Promotion (Commerce).
Increase Focus on Private Sector Issues (Commerce).
Expand Research and Development and Commercialization Activities
of National Laboratories (Energy).
Develop Energy Conservation and Production Measures (Energy).
Continue Development of Superconducting Supercollider (Energy).
Complete National Energy Strategy (Energy).
Pass the President's HOPE Legislation (HUD).
Establish an Agenda for Economic Empowerment (HUD).
Promote Deregulation of the Urban Housing Market (HUD).
Promote a Renewal of Urban Neighborhoods (HUD).
Develop Coherent, Balanced Western Water Policy (Interior).
Consider Long-Term Analysis of Endangered Species Act (Interior).
Support Energy Production Measures (Interior).
Determine Strategy on Civil Rights Bill (Justice).
Restore the Minimum Wage Small Business Exemption (Labor).
Expand International Cooperation on Labor Issues (Labor).
Liberalize International Air Cargo Markets (Transportation).
Review Aviation Noise Policy (Transportation).
Consider National Maritime Policy (Transportation).
Pass President's Enterprise for the Americas Initiative
(Treasury).
Complete the Comprehensive Study of the Federal Deposit Insurance
System (Treasury).
Promote the Brady Plan (Treasury).
Complete Uruguay Round Negotiations (USTR).
Pass President's Enterprise for the Americas Initiative (USTR).
Complete Negotiations of Bilateral Agreements with Eastern
European Countries (USTR).
Emphasize Comparative Risk-Based Scientific Approach to
Environmental Protection (EPA).
Develop Pollution Prevention and Recycling Initiatives (EPA).
II. Education, Empowerment and Kinder-Gentler Issues
Protect Animal Welfare (Agriculture).
Measure Progress Toward the National Education Goals (Education).
5
Promote Choice in Education (Education).
Reduce Student Loan Defaults (Education).
Sustain the Principles of the Education Excellence Act
(Education).
Improve Hispanic Education (Education).
Promote Educational Excellence Abroad (Education).
Commission on Drug Free Schools (Education).
Pursue Outreach Programs in Math/Science Education (Energy).
Continue Development of Superconducting Supercollider (Energy).
Stimulate National Discussion on Health Care (HHS).
Promote Health Abroad (HHS).
Focus on Minority Health Issues (HHS).
Address Refugee Resettlement Problem (HHS).
Pass the President's HOPE Legislation (HUD).
Establish an Agenda for Economic Empowerment (HUD).
Provide Fair Housing Access for the Handicapped (HUD).
Link Services for the Poor (HUD).
Reorganize Responsibilities for Indian Affairs (Interior).
Celebrate Anniversary of National Park System (Interior).
Determine Strategy on Civil Rights Bill (Justice).
Obtain Passage of Job Training Partnership Act Amendments
(Labor).
Issue the Final Report of the Coal Commission (Labor).
Expand Dole's Mentoring Initiative (Labor).
Complete Glass Ceiling Initiative Review (Labor).
Restore the Minimum Wage Small Business Exemption (Labor).
Complete Departmental Management Review (Transportation).
Study Future Structure of Veterans Health Care (VA).
Eliminate Interdepartmental Redundancies (VA).
Highlight Importance of Environmental Education (EPA).
Celebrate Elevation of EPA to Cabinet Status and Its 20th
Anniversary (EPA).
III. Crime and Drug Issues
Submit Report of Commission on Drug Free Schools (Education).
Reorganize Responsibilities for Indian Affairs (Interior).
Pass the Crime Bill (Justice).
Initiate Drunk Driving Ad Campaign (Transportation).
Develop and Implement the President's Annual Drug Control
Strategy (ONDCP).
Release National Household Survey (ONDCP).
Highlight Local Efforts Against Drugs (ONDCP).
Highlight State Efforts Against Drugs (ONDCP).
6
IV. Energy and the Environment Issues
Protection of the Spotted Owl (Agriculture).
Complete National Energy Strategy (Energy).
Develop Energy Conservation and Production Measures (Energy).
Initiate Environmental Restoration and Waste Management Programs
(Energy).
Present the Facts on the Problem of Lead-Based Paint (HUD).
Develop Coherent, Balanced Western Water Policy (Interior).
Celebrate Anniversary of National Park System (Interior).
Designate New Wilderness Areas (Interior).
Support Energy Production Measures (Interior).
Participate in Development of Wetlands Policy (Interior).
Consider Long-Term Analysis of Endangered Species Act (Interior).
Support Energy Conservation Measures (Transportation).
Emphasize Comparative Risk-Based Scientific Approach to
Environmental Protection (EPA).
Pursue Analysis of Environmental Problems Across Various Media
(EPA).
Pass and Implement Clean Air Act Amendments (EPA).
Develop Administration Position for Resource Conservation and
Recovery Act Reauthorization (EPA).
Develop Pollution Prevention and Recycling Initiatives (EPA).
Assess Superfund Program (EPA).
Highlight Importance of Environmental Education (EPA).
Prepare National Strategy for Groundwater Protection (EPA).
Celebrate Elevation of EPA to Cabinet Status and Its 20th
Anniversary (EPA).
Release and Discuss Report on Carcinogenic Effects of
Electromagnetic Fields (EPA).
V.
Other Issues
Preempt State Regulation of Electric Utilities (Agriculture).
Complete the 1990 Census (Commerce).
Complete Study of Nuclear Weapons Reconfiguration (Energy).
Respond to Court Ruling on Child Disability Benefits (HHS).
Submit Nomination for the Director of NIH (HHS).
Release Cost of Raising Children Report (HHS).
Pass Debt Collection Legislation (Justice).
Monitor Pending Court Cases (Justice).
Improve Aviation Security (Transportation).
Reauthorize Surface Transportation Legislation (Transportation).
Complete IRS Regulations for the Presidential Election Campaign
Fund (Treasury).
Undertake IRS Modernization (Treasury).
Václav Havel
Address to the United States
Congress, February 1990
We've chosen to end our book with the complete text of the
address given on February 22, 1990 by Václav Havel, now
the president of Czechoslovakia, to a joint session of the
United States Congress. In this eloquent speech, Mr. Havel
has once again best expressed the intelligence, decency,
courage, and hope for the future that have characterized the
revolution he and others have led in Central Europe.
My advisers advised me to speak on this important occasion in
Czech. I don't know why. Perhaps they wanted you to enjoy the
sweet sounds of my mother tongue.
The last time they arrested me, on October 27 of last year, I
didn't know whether it was for two days or two years.
Exactly one month later, when the rock musician Michael
Kocab told me that I would probably be proposed as a presiden-
tial candidate, I thought it was one of his usual jokes.
On December 10, 1989, when my actor friend Jiri Bartoska, in
the name of the Civic Forum, nominated me as a candidate for
president of the republic, I thought it was out of the question that
the parliament we had inherited from the previous regime would
elect me.
Nineteen days later, when I was unanimously elected presi-
dent of my country, I had no idea that in two months I would be
speaking before this famous and powerful assembly and that
what I would say would be heard by millions of people who had
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Address to the United States Congress, February 1990
487
never heard of me and that hundreds of politicians and political
sion - among other things-provided significant help to us
scientists would study every word I said.
Czechs and Slovaks.
When they arrested me on October 27, I was living in a
Thanks to the great support of your president, Wilson, our
country ruled by the most conservative Communist government
first president, Tomás Garrigue Masaryk, was able to found our
in Europe, and our society slumbered beneath the pall of a
modern independent state. He founded it, as you know, on the
totalitarian system. Today, less than four months later, I am
same principles on which the United States of America was
speaking to you as the representative of a country that has set out
founded, as Masaryk's manuscripts held by the Library of Con-
on the road to democracy, a country where there is complete
gress testify.
freedom of speech, that is getting ready for free elections, and
In the meantime, the United States made enormous strides. It
that wants to create a prosperous market economy and its own
became the most powerful nation on Earth, and it understood
foreign policy.
the responsibility that flowed from this. Proof of this are the
It is all very extraordinary.
hundreds of thousands of your young citizens who gave their
But I have not come here to speak for myself or about my
lives for the liberation of Europe and the graves of American
feelings or merely to talk about my own country. I have used this
airmen and soldiers on Czechoslovak soil.
small example of something I know well to illustrate something
But something else was happening as well: the Soviet Union
general and important.
appeared, grew, and transformed the enormous sacrifices of its
We are living in very extraordinary times. The human face of
people suffering under totalitarian rule into a strength that, after
the world is changing so rapidly that none of the familiar
World War II, made it the second most powerful nation in the
political speedometers are adequate.
world. It was a country that rightly gave people nightmares,
We playwrights, who have to cram a whole human life or an
because no one knew what would occur to its rulers next and
entire historical era in a two-hour play, can scarcely understand
what country they would decide to conquer and drag into their
this rapidity ourselves. And if it gives us trouble, think of the
"sphere of influence," as it is called in political language.
trouble it must give political scientists, who spend their whole
All of this taught us to see the world in bipolar terms, as two
lives studying the realm of the probable and have even less
enormous forces, one a defender of freedom, the other a source
experience with the realm of the improbable than we play-
of nightmares. Europe became the point of friction between
wrights.
these two powers, and thus it turned into a single enormous
Let me try to explain why I think the velocity of the changes in
arsenal divided into two parts. In this process, one half of the
my country, in Central and Eastern Europe, and of course in the
arsenal became part of that nightmarish power, while the other-
Soviet Union itself, has made such a significant impression on
the free part bordering on the ocean and having no wish to be
the face of the world today, and why it concerns the fate of us all,
driven into it, was compelled, together with you, to build a
including you Americans. I would like to look at this first from
system to which we probably owe the fact that we still exist.
the political point of view and then from a point of view that we
So you may have contributed to the salvation of us Europeans,
might call philosophical.
of the world, and thus of yourselves for a third time: you have
Twice in this century the world has been threatened by
helped us survive until today without a hot war this time but
catastrophe; twice this catastrophe was born in Europe; and twice
merely a cold one.
you Americans, along with others, were called upon to save
And now what is happening is happening: the totalitarian
Europe, the whole world, and yourselves. The first rescue mis-
system in the Soviet Union and in most of its satellites is
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Address to the United States Congress, February 1990
489
breaking down, and our nations are looking for a way to democ-
racy and independence. The first act in this remarkable drama
or not, we are located in the very heart of Europe, and, thanks to
began when Mr. Gorbachev and those around him who were
this, we have no view of the sea and no real navy. I mention this
faced with the sad reality of their country initiated their policy of
because political stability in our country has traditionally been
perestroika. Obviously they had no idea either what they were
important for the whole of Europe. This is still true today. Our
setting in motion or how rapidly events would unfold. We knew
Government of National Understanding, our present Federal
a lot about the enormous number of growing problems that
Assembly, the other bodies of the state, and I myself will person-
slumbered beneath the honeyed, unchanging mask of socialism.
ally guarantee this stability until we hold free elections, planned
But I don't think any of us knew how little it would take for these
for June. We understand the terribly complex reasons, domestic
problems to manifest themselves in all their enormity and for the
political reasons above all, why the Soviet Union cannot with-
longings of these nations to emerge in all their strength. The
draw its troops from our territory as quickly as they arrived in
mask fell away so rapidly that, in the flood of work, we have
1968. We understand that the arsenals built there over the past
literally no time to be astonished.
twenty years cannot be dismantled and removed overnight. Nev-
What does this all mean for the world in the long run?
ertheless, in our bilateral negotiations with the Soviet Union, we
Obviously a number of things. This is, I am firmly convinced, a
would like to have as many Soviet units as possible moved out of
historically irreversible process, and as a result Europe will begin
our country before the elections, in the interest of political
again to seek its own identity without being compelled to be a
stability. The more successful our negotiations, the more those
divided armory any longer. Perhaps this will create the hope that
who are elected in our places will be able to guarantee political
sooner or later your boys will no longer have to stand on guard
stability in our country even after the elections.
for freedom in Europe, or come to our rescue, because Europe
Second, I often hear the question: How can the United States
will at last be able to stand guard over itself But that is still not
of America help us today? My reply is as paradoxical as the whole
the most important thing: the main thing is, it seems to me, that
of my life has been: You can help us most of all if you help the
these revolutionary changes will enable us to escape from the
Soviet Union on its irreversible, but immensely complicated,
rather antiquated straitjacket of this bipolar view of the world
road to democracy. It is far more complicated than the road open
and to enter at last into an era of multipolarity. That is, into an era
to its former European satellites. You yourselves know best how
in which all of us - large and small, former slaves and former
to support, as rapidly as possible, the nonviolent evolution of this
masters - will be able to create what your great President Lin-
enormous, multinational body politic toward democracy and
coln called "the family of man." Can you imagine what a relief
autonomy for all of its peoples. Therefore, it is not fitting for me
this would be to that part of the world that for some reason is
to offer you any advice. I can only say that the sooner, the more
called the Third World, even though it is the largest?
quickly, and the more peacefully the Soviet Union begins to
I don't think it's appropriate simply to generalize, so let me be
move along the road toward genuine political pluralism, respect
specific:
for the rights of nations to their own integrity and to a working
First, as you certainly know, most of the big wars and other
that is a market economy, the better it will be, not just for the
conflagrations over the centuries have traditionally begun and
Czechs and Slovaks, but for the whole world. And the sooner
ended on the territory of modern Czechoslovakia, or were some-
you yourselves will be able to reduce the burden of the military
how related to that area. Let the Second World War stand as the
budget borne by the American people. To put it metaphorically,
most recent example. This is understandable: whether we like it
the millions you give to the East today will soon return to you in
the form of billions in savings.
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Address to the United States Congress, February 1990
491
Third, it is not true that the Czech writer Václav Havel wishes
Fifth, naturally we welcome the initiative of President Bush,
to dissolve the Warsaw Pact tomorrow and then NATO the day
which was essentially accepted by Mr. Gorbachev as well, accord-
after that, as some eager journalists have written. Václav Havel
ing to which the number of American and Soviet troops in
merely thinks what he has said here, that for another hundred
Europe should be radically reduced. It is a magnificent shot in
years, American soldiers shouldn't have to be separated from
the arm for the Vienna disarmament talks and creates favorable
their mothers just because Europe is incapable of being a guaran-
conditions not only for our own efforts to achieve the quickest
tor of world peace, which it ought to be, in order to make some
possible departure of Soviet troops from Czechoslovakia but also
amends, at least, for having given the world two world wars.
indirectly for our own intention to make considerable cuts in the
Sooner or later Europe must recover and come into its own and
Czechoslovak army, which is disproportionately large in relation
decide for itself how many of whose soldiers it needs, so that its
to our population. If Czechoslovakia were forced to defend itself
own security and all the wider implications of that security may
against anyone, which we hope will not happen, then it would be
radiate peace into the whole world. Václav Havel cannot make
capable of doing so with a considerably smaller army, because
decisions about things that are not proper for him to decide. He
this time - after not just decades but centuries - its defense
is merely putting in a good word for genuine peace, and for
would be supported by the common and indivisible will of both
achieving it quickly.
its peoples and its leadership. Our freedom, our independence,
Fourth, Czechoslovakia thinks that the planned summit con-
and our newborn democracy have been purchased at great cost,
ference of countries participating in the Helsinki process should
and we shall not surrender them. For the sake of order, I should
take place soon and that, in addition to what it wants to accom-
add that whatever steps we take are not intended to complicate
plish, it should aim to hold the so-called Helsinki II conference
the Vienna disarmament talks but, on the contrary, to facilitate
earlier than 1992, as originally planned. Above all, we feel it could
them.
be far more significant than seemed possible before. We think
Sixth, Czechoslovakia is returning to Europe. In the general
that Helsinki II should become something equivalent to the
interest and its own interest as well, it wants to coordinate this
European peace conference that has not yet been held - one that
return - both politically and economically - with the other
would finally put a formal end to the Second World War and all
returnees, which means, above all, with its neighbors the Poles
its unhappy consequences. Such a conference would officially
and the Hungarians. We are doing what we can to coordinate
bring a future democratic Germany, in the process of unifying
these returns. And at the same time, we are doing what we can so
itself, into a new pan-European structure that could decide about
that Europe will be capable of really accepting us, its wayward
its own security system. This system would naturally require
children. Which means that it may open itself to us and may
some connection with that part of the globe we might label the
begin to transform its structures - which are formally European
"Helsinki" part, stretching westward from Vladivostok all the
but de facto Western European - in that direction, but in such a
way to Alaska. The borders of the European states, which, by the
way that it will not be to its detriment but rather to its advantage.
way, should become gradually less important, should finally be
Seventh, I have already said this in our parliament, and I
guaranteed legally by a common, regular treaty. It should be
would like to repeat it here in this Congress, which is architec-
more than obvious that the basis for such a treaty would have to
turally far more attractive: for many years, Czechoslovakia as
be general respect for human rights, genuine political pluralism,
someone's meaningless satellite - has refused to face up honestly
and genuinely free elections.
to its coresponsibility for the world. It has a lot to make up for. If
I dwell on this and so many important things, it is only because I
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Address to the United States Congress, February 1990
493
feel - along with my fellow citizens - a sense of culpability for
At the same time, unintentionally, of course, it has given us
our former reprehensible passivity and a rather ordinary sense of
something positive: a special capacity to look, from time to time,
indebtedness.
somewhat further than someone who has not undergone this
Eighth, we are of course delighted that your country is so
bitter experience. A person who cannot move and live a some-
readily lending its support to our fresh efforts to renew democ-
what normal life because he is pinned under a boulder has more
racy. Both our peoples were deeply moved by the generous offers
time to think about his hopes than someone who is not trapped
made a few days ago in Prague at the Charles University, one of
that way.
the oldest in Europe, by your secretary of state, Mr. James Baker.
What I am trying to say is this: we must all learn many things
We are ready to sit down and talk about them.
from you, from how to educate our offspring and how to elect
Ladies and gentlemen, I have been president for only two
our representatives all the way to how to organize our economic
months and I haven't attended any schools for presidents. My
life so that it will lead to prosperity and not to poverty. But it
only school was life itself Therefore I don't want to burden you
doesn't have to be merely assistance from the well educated, the
any longer with my political thoughts, but instead I will move on
powerful, and the wealthy to someone who has nothing and
to an area that is more familiar to me, to what I would call the
therefore has nothing to offer in return.
philosophical aspect of those changes that still concern everyone,
We too can offer something to you: our experience and the
although they are taking place in our corner of the world.
knowledge that has come from it.
As long as people are people, democracy in the full sense of the
This is a subject for books, many of which have already been
word will always be no more than an ideal; one may approach it
written and many of which have yet to be written. I shall
as one would a horizon, in ways that may be better or worse, but
therefore limit myself to a single idea.
it can never be fully attained. In this sense you too are merely
approaching democracy. You have thousands of problems of all
The specific experience I'm talking about has given me one
kinds, as other countries do. But you have one great advantage:
great certainty: Consciousness precedes Being, and not the other
way around, as Marxists claim.
you have been approaching democracy uninterruptedly for more
For this reason, the salvation of this human world lies
than 200 years, and your journey toward the horizon has never
been disrupted by a totalitarian system. Czechs and Slovaks,
nowhere else than in the human heart, in the human power to
despite their humanistic traditions that go back to the first
reflect, in human meekness, and in human responsibility.
millennium, have approached democracy for a mere twenty
Without a global revolution in the sphere of human con-
years, between the two world wars, and now for the 3½ months
sciousness, nothing will change for the better in the sphere of
since November 17 of last year.
our Being as humans; and the catastrophe toward which this
The advantage that you have over us is obvious at once.
world is headed, be it ecological, social, demographic, or a
general breakdown of civilization, will be unavoidable. If we are
The Communist type of totalitarian system has left both our
nations, Czechs and Slovaks - as it has all the nations of the
no longer threatened by world war, or by the danger that the
Soviet Union and the other countries the Soviet Union subju-
absurd mountains of accumulated nuclear weapons might blow
gated in its time - a legacy of countless dead, an infinite spec-
up the world, this does not mean that we have definitively won.
We are in fact far from the final victory.
trum of human suffering, profound economic decline, and above
We are still a long way from that "family of man"; in fact, we
all enormous human humiliation. It has brought us horrors that
fortunately you have not known.
seem to be receding from the ideal rather than drawing closer to
it. Interests of all kinds - personal, selfish, state, national, group,
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Address to the United States Congress, February 1990
495
and, if you like, company interests - still considerably outweigh
It is easy to have independence in your program and then leave
genuinely common and global interests. We are still under the
others to carry that program out. If everyone thought that way,
sway of the destructive and vain belief that man is the pinnacle of
pretty soon no one would be independent.
creation, not just a part of it, and that therefore everything is
I think that you Americans should understand this way of
permitted. There are still many who say they are concerned not
thinking. Wasn't it the best minds of your country, people you
for themselves but for the cause, while they are demonstrably out
could call intellectuals, who wrote your famous Declaration of
for themselves and not for the cause at all. We are still destroying
Independence, your Bill of Rights, and your Constitution and
the planet that was entrusted to us and its environment. We still
who - above all - took upon themselves the practical respon-
close our eyes to the growing social, ethnic, and cultural conflicts
sibility for putting them into practice? The worker from Branik
in the world. From time to time we say that the anonymous
in Prague that your president referred to in his State of the
megamachinery we have created for ourselves no longer serves
Union message this year is far from being the only person in
us, but rather has enslaved us, yet we still fail to do anything
Czechoslovakia, let alone in the world, to be inspired by those
about it.
great documents. They inspire us all. They inspire us despite
In other words, we still don't know how to put morality ahead
the fact that they are over 200 years old. They inspire us to be
of politics, science, and economics. We are still incapable of
citizens.
understanding that the only genuine backbone of all our
When Thomas Jefferson wrote, "Governments are instituted
actions if they are to be moral - is responsibility. Responsibility
among Men deriving their just Powers from the Consent of the
to something higher than my family, my country, my company,
Governed," it was a simple and important act of the human
my success. Responsibility to the order of Being, where all our
spirit.
actions are indelibly recorded, and where, and only where, they
What gave meaning to that act, however, was the fact that the
will be properly judged.
author backed it up with his life. It was not just his words, it was
The interpreter or mediator between us and this higher
his deeds as well.
authority is what is traditionally referred to as human conscience.
I will end where I began: history has accelerated. I believe that,
If I subordinate my political behavior to this imperative medi-
once again, it will be the human mind that will notice this
ated to me by my conscience, I can't go far wrong. If on the
acceleration, give it a name, and transform those words into
contrary I were not guided by this voice, not even ten presidential
deeds.
schools with 2,000 of the best political scientists in the world
could help me.
This is why I ultimately decided - after resisting for a long
time - to accept the burden of political responsibility.
I am not the first, nor will I be the last, intellectual to do this.
On the contrary, my feeling is that there will be more and more
of them all the time. If the hope of the world lies in human
consciousness, then it is obvious that intellectuals cannot go on
forever avoiding their share of responsibility for the world and
hiding their distaste for politics under an alleged need to be
independent.