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26
22
7
7
Sec. Brady
DRAFT NO. 2
9/8/92: 1 PM
I. Introduction: The Challenge
p.60
This is my Agenda for American Renewal substance
economic problems we face, sets forth the I
comment
]
guide our actions, and explains the integra
pursuing to meet the challenge.
per Andrew Khis
Over past weeks I have been discussing
9/8 730pm
of my economic agenda. In coming weeks I
ideas. This document shows how the pieces fit together.
It is important to begin by standing back for a moment,
taking stock of where we are as a great nation in the broader
sweep of history.
the former SV.
The American people have just completed the greatest mission
of all, the triumph of democratic capitalism over a frightening,
rapacious, totalitarian nuclear superpower Mission
accomplished.
Throughout history, when long wars end, people have been
confronted with the problems of converting to peacetime and
establishing a new b
In wartime, the
This is wrong. cl am night.
Domestic needs are no
see FC copies.
conflict tries to loc
less privileged membe
-JAG
-
Today, this year
the United States is
The American people recognize this historical watershed.
They want and deserve a peacetime system of taxation, a peacetime
freedom from unnecessary intrusion into our lives, a peacetime
commitment to sound money, a peacetime dedication to unfinished
work and unsolved problems close to home.
At the same time, Americans are aware of epic changes in the
world and the economy. They sense the disquiet in many of the
industrialized democracies that have been our partners in the
long struggle. Our own economy has been going through some
profound changes. And I know change can be difficult,
particularly for those who feel its effects more directly.
Americans sense we face an era of great opportunity, but that
there are also great risks if we fail to make the right choices,
if we fail to engage wisely.
It is vital for our nation to demonstrate its unique ability
to transform anxiety into regeneration. Only the United States
has the people, the resources, the economic strength -- and
especially the principles and ideals -- to pick up the challenge.
For America to be safe and strong we must meet the defining
challenge of the '90s: to win the economic competition -- to win
the peace.
The United States must be an economic superpower, an export
superpower, and a military superpower.
My approach to this future is to look forward -- to open new
markets, prepare our people to compete, to restore our social
fabric -- to save and invest -- so we can win.
2
This future depends on economic growth, but not for the few
at
at the expense of the many, not for the present and the expense
of the future.
In this country, we have always preferred an entrepreneurial
capitalism that grows from the bottom up, not the top down, a
capitalism that begins on Main Street and extends to Wall Street,
not the other way around.
Nor have we been taken in by the view my opponent prefers,
that Government should accumulate capital -- by taxing it and
borrowing it from the people, and investing it according to some
industrial policy design.
My agenda is for an inclusive America, not an exclusive or
reclusive America. My international economic and trade strategy
will promote free trade arrangements east and west, north and
south, to strengthen our global economic reach and complement our
worldwide security presence. At the same time, we need to foster
the capabilities at home youth that will keep us in the lead. To help
prepare all American
children
for a constantly changing
workplace, I want to make radical changes in our education
system.
Each
young child phsse
should graduate with skills, self-discipline,
an a strong sense of self worth. I will sharpen the competitive
edge of our businesses through encouraging entrepreneurial
capitalism and small business, deploying advances in R&D &
technology, and reforming our legal system so it no longer puts
us at a global disadvantage. My agenda promotes economic
security for working men and women through job training that will
3
ease adjustments and provide people new capabilities for work in
the face of competition and change. And I will enable families
to concentrate on building for the future by giving them the
means to protect themselves against today's cost of health care
and by making it easier to build retirement security. I want our
efforts to reach out to all our citizens, leaving no one behind,
because we will need the work, aspiration, and energy of each and
every American. Finally, since our competitive strength and
entrepreneurial spirit must flow from the private sector, I will
streamline government to meet changing needs. It should not
siphon off more resources than is absolutely necessary.
Cunting
dottors
Taken together, in mutual support of one another, the
in
int
components of this agenda should empower America to seek a grand
REAL
we
goal: to double the size of our economy to $10 trillion, in no
more than 10 years.
Ry The year 2000 [Includez of
Think of what we could do with another $5 trillion in annual
income. With an economy that size, we could provide the
resources, private and public, to satisfy our most ambitious
social and financial requirements. We could simultaneously renew
America and pay down our national debt.
So now let me turn to how we can meet the challenge and
reach our goal.
II. The Context: Five Changes Underway in the Economy
5.7
/0 (Yru 2000)
3% years
5.7
Lo
@ 6.5%
4
The U.S. economy has been working its way through five
profound changes; they establish the context for my agenda.
The first great change in our economy is ironically due to
our very success in ending the Cold War. Since our superpower
rival of the last half century has disappeared, we are now able
to do something we have all hoped for since the close of World
War II -- lighten the load. In the short run, this adjustment
has meant cutbacks and lay-offs in many industries that have
depended on defense spending. We need to take steps to ease this
transition. But in the medium and long run, reductions in
defense spending will free up many new resources for our people
and economy.
Falling apart?
Second, it seems that almost every day you can find a story
about a major U.S. corporation that is restructuring itself. Our
industries are in the process of transforming themselves from the
old-style hierarchical organization to so-called "flattened"
structures. This new industrial organization emphasizes a
skills-based workplace, "lean production," and short product
cycles rather than mass production, In effect, we are
integrating R&D, manufacturing, and marketing into a seamless web
of innovation. It is a change comparable to the one we made when
Henry Ford led the country from craft-based production to mass
manufacturing early in this century.
We have to make these adaptations if America's industries
are to keep ahead of their international competitors. Strong
sales and productivity increases are the prerequisites for
5
creating more jobs, boosting wages, and upgrading benefits. In
fact, it is partly because of these changes that American firms
lead the world in exports and that the increase in U.S.
manufacturing productivity during the '80s was our best
performance since World War II.
Nevertheless, these changes also have produced layoffs and
relocations among both blue and white collar workers. Middle-
aged breadwinners are wondering whether their company will be the
next to make announcements, and they worry about their jobs,
health care and pension rights. Some are also deeply troubled by
the prospect that after sacrificing to send their kids to college
to
-- often the first generation to attend -- that/some of these
children their diplomas aren't golden tickets to security.
Third, the 1980s wiped away the dismal economic performance
of the late '70s. We enjoyed the longest peacetime expansion in
U.S. history, lasting seven and a half years. We created over 21
million jobs, more than all the new jobs in the other major
industrial countries and the rest of Western Europe combined.
Yet great booms produce excesses, and this time too many
companies, too many financial institutions, too many governments,
and too many household took on too much debt.
We have been paying down that debt over the last three years
-- and lower interest rates have helped us do it. Millions of
people have refinanced homes at lower rates, reducing mortgage
payments by as much as $1,200 to $1,500 a year. When companies
restructured, they paid down debt, strengthened balance sheets,
2000
to
2500
6
FOR THE THE are porvano Boskin
POLEMICM
COUNTRY
NO. OF BANKS
United States
12,500
Japan
150
United Kingdom
550
Canada
65
Germany
900
Domestic Finance
February 12, 1991
and positioned themselves to enjoy greater profits when stronger
growth resumes. This process will leave our economy leaner and
more powerful; indeed many firms already are. But while that
debt was being paid down, people bought fewer goods and companies
put less money into new investments and jobs. The process is
largely over, but it has left consumers and companies a little
cautious.
Fourth, we entered the '80s with a banking system designed
50 years earlier -- a relic woefully out of place in an era when
billions of dollars could be sent around the world in a
Carigive
microsecond. The United States entered the 1980s with some
no
14,000 commercial banks and 4,600 savings and loans. In
figuies
comparison, Canada had
, Germany had 200 / and Japan had
Have
So The vast majority of those small U.S. banks and S&Ls
pr90s
operated in a heavily controlled environment where their costs of
Printed
funds were limited by ceilings on your passbook accounts. Other
Meber
regulations restricted competition by imposing costs and
frave
inefficiencies on savers and borrowers.
ml
In the late '70s, this out-of-date system was buffeted by
Sthr
record interest and inflation rates; it was challenged by
competition from new financial services. As in any other line of
business, the less efficient institutions could not survive. But
because our banks and S&Ls held insured deposit accounts for most
hardworking Americans, the streamlining process had to be managed
in a way that enabled the Government to protect your savings.
where The serves they could offer were
limited by antegriated and and competiture laws and
The Government picked up these costs so your savings would be
safe.
This process, too, is nearing its end. A strong economy
must have a good banking and financial system so entrepreneurs
can get capital, business and farms can get loans, and families
we have preposed a comprehence plan to modulne u
can buy homes and cars We will have a more competitive and m Donly
sy Sten
efficient financial system that will serve companies and families So
better.
Over the next few years, the Government will actually
gain revenues from the sales of billions of dollars of assets
that it acquired from banks and S&Ls as it protected savers.
But
this process has left lenders cautious. Business borrowing rates
and mortgage rates are way down, but it's still too hard for
small businesses to gain access to capital and credit. We are
still taxing capital too much.
The final economic change is perhaps the most profound of
all: No nation is an island today. We are part of a global
economy. To grow is to trade; to expand is to compete. One
manufacturing job out of every six depends directly on our
exports; so does one acre out of every three planted by American
farmers.
This international economic influence has three
implications.
One, when growth slumps abroad, it drags our economy down
with it. Both Western Europe {especially Germany} and Japan are
going through major readjustment - and that has contributed to
and over 20 million account
our sluggishness.
in total
The government has Sycceded in this task - every penny
of Puble Sovers deposita (for many Their life soups) have
been procected
Two, it means that if America is going to be strong and
growing in the 21st Century, we must be ready and able to compete
around the globe. We need to encourage entrepreneurial
capitalism and investment at home, and at the same time ensure
that our labor force remains the best in the world.
Three, we need to seize opportunities to develop new
markets, particularly in areas that have potential for
significant growth in the future. One of the other benefits of
the end of the Cold War is the extraordinary potential to expand
trade and sales to hundreds of millions of potential customers
who not long ago were our enemies.
III. Start with Strengths
In developing an agenda for the future, we should take a
clear-eyed look at our strengths as well as weaknesses. Not
surprisingly, the other side has conveniently skipped over our
country's many strengths. Frankly, they want you to believe
America is over the hill and past its prime. But they have no
more right to convince you the economy is worse than it is for
political advantage than I have to sugarcoat the problems. So we
let me just note 10 key facts. (See Appendix A for others.)
The Misery Index -- the sum of inflation and
unemployment -- is down to 10.8% today, from 19.6% in
1980.
9
Inflation has fallen to roughly 3%, the lowest in a
quarter of a century (except for 1986).
O/C
Interest rates are at a 20 year low. Mortgage rates
are now in the 8% range, half the rate President Reagan
encountered in his first year. Thanks to these low
121.2 Today
rates, more people can afford to own a home today than
at any time since 1973.
AFFORDIRILING Index
mDee 123.1 76
will
JSE
SEEPS
While unemployment is still far too high, the share of
the working age population with jobs during my
122.7 in 4th 9
administration has averaged 62.2%, the highest in U.S.
ofall
history.
ok
The United States has the highest home ownership rate
of all major industrialized countries: More than 66%
A
'90
of U.S. households own their own homes, as compared
with 61% in Japan and 39% in Germany.
The U.S. sends 60% of its children on to higher
education, second only to 12g Canada, and well above the
32% rate in Germany and 30% in Japan. And 51% of these
U.S. students are women, as compared with 38% in Japan
and 26% in Germany.
10
With exports of $622 billion, the U.S. is the world's
largest exporting nation. Exports increased by 40%
during my Administration. may he but
35%
we Ciulde 'ffet is
POINTS RENT OF #5 on
date.
We produce 25% of the world's total output with 5% of
the world's population.
WRONG
19.4%
in
GAT
a
Manufacturing is now accounting OUT for 22.6% of U.S. GDP
A stutch
990
The Some as
a higher percentage than a decade ago.
Soles Fres not
The productivity of American workers is CHECK
producting
more
approximately 26% above those in Germany and
be you up
INDICATORS
30% above those in Japan.
TABLE OF PRODUCTION
Culiers - 'so
"1992 EC REPORT OF THE PRES"
"w"
TABLE B-10
BY SECTOR of ECONOMY Ate
23%
I do not mean to suggest either that all is well or that we
-DATA
1820
do not need to lead and manage the changes taking place in the
B499
world and at home more actively. We do.
RATTO
Nevertheless, it is important to recognize honestly what we
OF
have accomplished over the past 12 years, so we can build on our
MANUF OVER
strengths. During our long expansion, we increased U.S. GDP by
BILLIONS
GOP
$1.1 trillion -- a figure greater than the total size of the
1989
month
or
German economy. So I know our goal of a $10 trillion economy is
EL
attainable.
We're also in a strong position internationally.
REPONY of pons,
But we're going to need the national adaptability and capability
to keep leading our competitors. And we must have the courage of
our convictions to say "no" to the wrong sort of changes for the
11
future -- false promises based on false premises -- changes we
cannot afford at this key moment in the world economic
competition.
IV. Guiding Principles:
Before outlining the specifics of my agenda, I will set out
four guiding principles. An effective strategy must be dynamic.
As new problems or opportunities present themselves, we will need
to make adjustments. Guiding principles will ensure we follow a
consistent path and help shape our policies into the future.
First, start with the basics: I believe America is composed
of individuals, not special interests. Individuals gain primary
strength, protection and inspiration from their families and
communities, not the legal system or Government social services.
People find their friends and their enjoyment in voluntary
association with one another, not in some bureaucrat's paint-by-
numbers dream.
The individual, families, communities. That's where we
start.
Second, we have to keep to the fundamentals of sound
economic growth: lower tax rates, limits on Government spending,
greater competition, less economic regulation, sound money, and
more open trade that can free tremendous private initiative and
growth.
12
Experience has shown that these are the steps we need to
take to create jobs, raise wages, spur entrepreneurs, expand
capital and investment, and build businesses.
Third, in the '90s Government can build on these
fundamentals by offering opportunity and hope for individuals,
families, and communities. There is a conservative agenda for
helping people, for responding to their needs. And we've seen
that these are approaches that work.
We prefer a hand-up to a hand out. We want to empower
people to make their own choices, to break away from dependency.
We want to give individuals and families economic security by
giving them the capital, the capabilities, and the confidence to
decide for themselves. We want everyone to have a stake in
society, to own property, so everyone will build something with
it for themselves and our country Whereas my opponent's
approach may place emphosis on redistribution and "leveling,"
our programs will unleash initiative, reward success, and
encourage excellence. Our approach is to give people the power
to work, save, and be their best.
Finally, all our policies must be brought together
effectively if we are to prosper as a people and succeed as a
nation. America must have appropriate new approaches for the
changes at home -- just as we've launched new policies to lead
and manage change abroad. We must concentrate on the
interrelationship between domestic and foreign policy and between
economic and security policy. At the same time, we must execute
13
our agenda more effectively with a new Congress, state and local
governments, and the private sector. Our aim must be to press
our policies together, as a package, to make America secure and
strong.
Therefore, my Agenda for American Renewal necessitates
action on six interconnected fronts. Because we face complex
problems, no one solution will suffice. The whole of these
elements will be a solution greater than the sum of its parts:
A Strategic Global Economic and Trade Policy
YOUNGPEOPLE
Preparing our Children for the 21st Century Economy
Sharpening Business' Competitive Edge: Encouraging
Entrepreneurial Capitalism
Economic Security for Working People
Leaving No One Behind: Economic Opportunity for Every
American
Keeping Government Slim
This is how America will create a $10 trillion economy.
14
V. A Strategic Global Economic and Trade Policy:
During the Cold War, we built a global security structure to
contain and counter the Soviet Union and communist aggression.
We forged military alliances across the Atlantic and Pacific that
underpinned that structure. In the post-Cold War era, we need a
strategic global economic and trade policy that will ensure our
position as an economic and export superpower as well. We are
well positioned to achieve this goal. We enjoy the largest fully
integrated market in the world; this gives us leverage with other
countries that want access to our markets. Once the Congress
enacts NAFTA, our position will be further strengthened. NAFTA
will open an important market, a Mexican economy whose growth
prospects will quickly transform its expanding industries and
consumers into excellent American customers. Equally important,
the integration of United States, Mexican, and Canadian
capabilities will improve our global competitiveness by enabling
American firms to purchase inputs at lower costs. This will help
U.S. firms to stay in the forefront of high wage, high value
added production.
Our geopolitical position is also advantageous. The United
States is both a Pacific and a European power; our political and
security ties link us with the largest and most rapidly growing
economies across both oceans. Our trans-Pacific trade already
exceeds our Atlantic trade; that's one reason why the United
15
States helped launch an organization for Asia-Pacific Economic
Cooperation that will further strengthen our economic ties with
that region. In addition, the countries in our own hemisphere,
from Central America to Chile, are looking to strengthen their
economic and trading ties with us as they move away from autarkic
economic policies and toward free markets.
200 bre even
The spirit of freedom -- in Eastern Europe, the former
docthing
Soviet Union, and Latin America -- also offers us a special
opportunity. Free people and free markets develop hand in hand.
In these and other countries around the globe, American values,
American products, and the English language hold special
attraction. These political and economic ties are complemented
by the appeal of American culture all around the world. This is
a new "soft power" we can employ. Today, our entertainment
industry is the United States' second largest export business.
Finally, as the primary founder and the most significant
proponent of the GATT global trading system, we continue to have
special influence if we act in ways that will truly open markets,
including our own. The key to America's growth, expansion, and
innovation has always been our openness to trade, investment,
ideas, and people.
Therefore, the next steps in my strategic trade policy are
to secure Congressional agreement to NAFTA and to complete the
global trade negotiations {the so called Uruguay Round
negotiations in GATT}. Our NAFTA agreement will be excellent for
American business, workers, and consumers. Nevertheless,
I
JOBS
16
and
Create hbs
expect a difficult fight in the Congress in early 1993 because of
those special interests who band together with a protectionist
purpose. The global trade negotiations, in turn, could be very
close to a breakthrough if the United States continues to act as
a strong world leader. There is a proposed draft text that
establishes the outlines of a significant new GATT agreement.
Once we assure cuts in the subsidized agricultural trade along
the lines of that text -- to enable our farmers to secure their
competitive advantage -- I believe we will be able to complete
the Uruguay Round agreement.
An improved global trading system is, however, only a base
for further trade liberalization, stronger investment ties, and
increasing global growth. We need to start to develop a
strategic network of free trade agreements {FTAs} across the
Atlantic and the Pacific and in our own hemisphere. This network
will stand in sharp contrast to the illogic and backwardness of
economic blocs. If we are to be a true export superpower, we
cannot be tied down to one region. Instead, my intent is to use
our attractive domestic market as the basis of a muscular free
trade policy that will strengthen America's global economic reach
and complement our worldwide security presence.
By focusing on opening markets, I also believe we can reduce
structural barriers to competition in North America, Western
Europe, Japan, and elsewhere. Competition will encourage
entrepreneurial capitalism -- at the expense of entrenched
interests -- spurring even greater global growth.
17
More specifically, I will need to secure from the Congress
additional trade negotiating authority within the first half of
1993. To overcome the special interests and the protectionists,
I will need a mandate from the American people. If we are to be
an export and economic superpower, the President must take a
strong stand on the negotiation of trade and economic agreements.
The Congress will presume vacillation as weakness, and the
national interest will lose out to the logrolling tradeoffs of
Congressional business as usual. That's one very big issue at
stake in this election.
With new negotiating authority, I would pursue new trading
and economic opportunities in Latin America under my Enterprise
for the Americas Initiative, starting with
Chile.
I would also
like to work towards FTAs with Poland, Hungary, and
Czechoslovakia by the end of my second term. And I would explore
the possibility of a connection between NAFTA and the ASEAN FTA,
or AFTA. It will not take long for other countries to begin to
express their interest in new trade and business ties with us.
For example, leaders in Australia and Korea have already spoken
of their interest in forging closer economic ties.
As we are developing this economic and trading structure for
the 21st Century, I will vigorously safeguard and promote
American trading interests. For example, I am committed to a
sizable Export Enhancement Program {EEP} to ensure that our
farmers can go head-to-head with the European Community's
subsidized agricultural exports. We know from our experience
18
with military security that the key to economic security must be
based on "Peace Through Strength" -- no unilateral disarmament.
That's why I recently announced the largest quantity of wheat
ever available under our EEP program -- almost 30 million metric
tons to 28 customers. I will ensure that our ExIm Bank and the
Overseas Private Investment Corporation (OPIC), work with teams
of our ambassadors to develop trade and investment opportunities
for U.S. firms. We've already begun this with the six ASEAN
countries. I will particularly stress helping America's small
business people to develop trading opportunities. If we are
going to orient our economy towards exports and international
economic competition, we can't just rely on our larger
businesses. I have visited small factories all across the United
States that first survived and then prospered by orienting
themselves toward the new international economic competition. I
know Americans can do it.
VI. Preparing Our Children for the 21st Century
In the 21st Century our primary national resource will be
our people. Materials, machines, and methods will come and go,
but the American worker will remain the key to our economic
security. Since the workplace of the 21st Century will be
constantly changing, we need to prepare the American people to
adapt to and lead the process of change. Therefore, our kids
19
must arrive at school ready to grow, and they need schools where
they will learn how to keep learning all their lives.
Our New American Schools will help prepare our children to
become the useful citizens of tomorrow. Equally important, we
want to enhance children's sense of self-worth, their confidence,
their sense of participation in a larger community and society.
This is an example of what I mean when I talk about a
conservative philosophy of empowerment, helping people to help
themselves.
I want to do my best to help all children come into the
world as truly "created equal." That's why I am more than
doubling spending for a Healthy Start initiative that targets
communities with high infant mortality rates. We are also
increasing prenatal care, nutrition services and substance abuse
treatment for pregnant women. And I want everyone to get out the
word that the behavior of parents is probably the most important
contribution to infant health.
We need to focus especially on the preschool years, so that
children coming to school are healthy and curious. Funding for
the Women, Infants and Children Nutrition Assistance program
(WIC) has grown 366% between 1980 and 1992; my request for an
additional $240 million for 1993 brings the annual cost to $2.8
billion.
I have also increased funding for the Head Start program by
127% -- for a total of $2.8 billion in 1993. That includes an
additional $600 million increase for next year -- an
20
unprecedented 27% annual jump -- so that a year of Head Start
will be available for every eligible four-year old whose parents
want to participate. (Under my budget, almost 800,000 children
will receive a year of Head Start before entering elementary
school.)
Child immunizations are also vital to safeguard kids'
health. Every year since 1981-82, 95% or more of the children
entering elementary school have been immunized against the
vaccine-preventable diseases. Now we are focusing greater
attention on preschool children. My 1993 budget calls for an 18%
increase in child immunization grants.
I want the United States to offer opportunity and encourage
excellence; we must be fully capable of competing in a global
economy. Therefore, it is imperative that our educational system
prepare and point the way for our children. As in the past,
education should be the ladder that the child of modest means can
climb to better him or herself.
Our current school system is falling short of these
needs -- and the poor are hurt most. Only 19 out of 66 public
high schools in Chicago graduate more than half their students,
and many of these graduates can barely read or write.
Our educational establishment is caught in a sort of time
warp, a system created for another age when the needs were not
the same, children grew up differently, and adults rarely changed
jobs.
21
Money alone is not the answer -- the United States already
spends more per pupil than any other country but Switzerland.
And funding for the Education Department has increased 42% over
my term.
The answer is a radical overhaul of our educational system.
If we want to change our country, we've got to change our
schools. That's what my Education 2000 program is all about.
The first step is to establish world-class standards for our
elementary and secondary schools. We are moving ahead with the
development of these standards in math, science, English,
history, geography, arts, and civics.
Second, we need voluntary national achievement tests to
measure the progress of our students. That way we can compare
the performance of different schools in helping our children
achieve the national standards.
Third, we need to give schools the flexibility to become
educational entrepreneurs -- to figure out the best ways to
motivate our children, use technology, include parents, and
involve new types of teachers. We will create "Education
Enterprise Zones. " There is no particular reason why schools have
to end at 3 p.m. so that students can watch TV for five hours a
day. We need to free school administrators and teachers from
rules, regulations, and reports that have become a poor
substitute for student achievement; we can do away with red tape
once we institute a new testing system that evaluates schools on
the basis of their performance, not their bureaucracy.
22
Finally, we must give all parents the means and freedom to
choose which schools will serve their children the best. This
component is critical to the success of the whole, integrated
overhaul of our educational system. Competition, the underlying
principle for this radical reform, will not work unless we give
consumers the ability to choose.
Wealthy families already have this choice for their
children. Many of the people that you saw at the Democratic
National Convention have this choice for their children. Why
shouldn't you have this choice for your children?
Chicago's public school teachers -- 47% of them -- send
their kids to private schools. But my opponent and his special
interest supporters don't think you should have the same choice
unless you are privileged enough to afford it.
One of the greatest educational innovations in this country
was the passage of the GI Bill after World War II. No one told
my generation that a vet couldn't go to Notre Dame or Brigham
Young or Baylor or Howard or Yeshiva.
So I want a "GI Bill for Children" to help give lower and
middle income families the means to select any school: public,
private, or religious. I also want scholarships available to be
spent on after-school, Saturday and summer academic programs.
For those who argue that my approach will weaken the public
school system, I would remind them that the first GI Bill was a
tremendous boon for public universities. or listen to Starr
Parker, a small business owner actively promoting choice in the
23
Black community, who put it this way: "The rich have choice now.
When I was on welfare, there was no way I could put my child in a
good school. It's time we stop condemning the poor to a monopoly
education system."
We've already made significant progress in starting this
radical reform agenda. Some 44 states, and over 1700
communities, have already adopted my new national education
strategy -- America 2000. Indeed, this progress offers a good
example of my commitment to pursue my agenda whether or not
Congress dawdles. I will work with governors, state legislators,
community officials, and the private sector if Congress balks.
I hope the new Congress will not remain subservient to the
educational establishment and special interests that want to
resist this revolution. Because a new system of education in
this country is probably the most important ingredient in making
America the winning economic and export superpower in the post-
Cold War era.
This must not only be my agenda, but yours, too. I will
fight to give parents in America the right to choose the school
their children will attend, but you need to help, too. When you
return from work, turn off the television, help your son or
daughter with homework if you can, back up your child's teacher
who's trying to enforce discipline, join your local PTA, and
support your children's schools. My approach -- Education 2000
-- relies on parental, business, and community involvement in
creating new schools that break the mold.
24
I put the family at the center of our society. I believe
that parents are best able to make decisions about their
children, that federal policies should support parents, that we
should increase the range of choices available to parents, and
that government assistance should be targeted to those families
most in need.
The other side may talk about similar problems, but they are
approaching them with a fundamentally different ideology. You
can see the contrast not only in education, but in health care,
or in the debate that took place over my Child Care proposal,
which we fought for and managed to enact into law. The
opposition prefers uniformity to variety and choice. Because
they place a higher value on "leveling" society, they will tend
to rely on government bureaucracies to offer "standard service."
My approach to education, child care, health care, and other
topics is to rely on a diverse private sector to supply the
service and to empower families to make their own choices. I
don't want to pull everyone down to make them equal. I want to
give everyone the tools to lift themselves as high as they can.
VII. Sharpening Businesses' Competitive Edge:
Encouraging Entrepreneurial Capitalism
Our ultimate success as an economic superpower is dependent
on encouraging the entrepreneurial spirit of our private
businesses. I call it entrepreneurial capitalism, and I saw it
25
work when I started a small business in Texas. I also call it
common sense.
You allow people to keep most of what they produce, and they
will produce more than they can use, the rest being capital. You
invite people to risk failure by allowing them to keep the
rewards of success, and they will keep trying until they succeed.
When capital is taxed lightly, it becomes abundant. When it
is taxed heavily, as it is now, it becomes scarce, available only
to those at the top, who need it least of all. That's not what I
want. Without capital, as Jesse Jackson pointed out, capitalism
is just an "ism". If capital were abundant labor would become
?
scarcer. And the unemployment lines would shrink. That's what I
want.
So I want to cut the capital gains tax and index it for
inflation. I want to create enterprise zones in inner city and
rural areas. I want to make the R&D tax credit permanent. I
want to provide an additional first-year depreciation allowance
for purchases of property.
Those are fundamentals. In addition, there are three other
ways we need to sharpen the competitive edge of American
business:
strengthen small business;
support civilian R&D linked to a research extension
network; and
26
reform our costly legal system.
A. Strengthen Small Business
Small business is the backbone of a growing economy. Small
businesses employ more than half the American workforce; they
account for 39% of our GNP. Small business creates two thirds of
our new jobs.
I am seeking to aid small businesses by reducing costly tax
and regulatory burdens, increasing access to credit, and removing
barriers to competition.
I have taken steps designed specifically to ease the tax
burden on small businesses. For example, the IRS has proposed
regulations to allow small businesses to deposit payroll taxes on
a monthly basis. And it has released a ruling allowing over 16
million sole proprietors to deduct tax preparation fees as a
business expense rather than as a limited itemized deduction.
I want to build on these actions. For example, we are
working on a Single Wage Reporting System that would permit
businesses to report state and federal wage information through a
single entity, thereby consolidating tax reporting requirements
and reducing the burden.
In coming weeks I will talk more about ways we can encourage
small businesspeople and the jobs they create.
On the regulatory front, I have extended for one year the
freeze on paperwork and unnecessary federal regulation that I
27
imposed last winter; the federal regulatory weight hits small
businesses particularly hard. I have also instructed federal
agencies to look for ways to modify existing regulations that
impose a special economic burden on small business. For example,
to increase access to capital for small businesses, the SEC has
announced proposals to reduce and in some cases eliminate the
public disclosure requirement for small companies issuing stock.
Since small businesses are particularly vulnerable when
credit is tight, we have to help them as our financial system is
restructuring. That's why we have authorized over $6 billion in
general business loan guarantees through SBA in 1992 -- an
increase of more than 50% above 1991.
SBA's New England Lending and Recovery Project is a pilot
effort that extends credit to viable small firms when access is
limited because banks are having difficulty. If it works well
and is needed, I'll expand the project to other regions. We also
have worked with bank regulators to base real estate values on
income earning potential rather than liquidation value. We have
taken steps to restructure the small business investment program,
the only venture capital program in the government. And we are
developing ways to offer special financing to exporting
entrepreneurs.
Through its procurement assistance program, SBA helped small
businesses secure federal contracts worth over $35 billion in FY
90 -- almost 20% of all prime contracts let during that year.
28
To ensure that small businesses can help their communities
overcome disasters, we will be providing approximately $
million in low-interest loans to small businesses in Florida,
Louisiana, California, and elsewhere.
Finally, we need to help small business by removing burdens
to competition. My health care reforms would reduce costs for
small businesses without costly government mandates or higher
taxes. Enactment of my legislation to establish uniform federal
law on product liability would relieve a major competitive
handicap that is keeping new products from the market, boasting
insurance costs sky high, and killing jobs.
B. Support Civilian R&D
To be the world's economic leader tomorrow, we clearly have
to invest in R&D and new technologies today. Given the pace of
change, we have to both come up with new inventions and organize
ourselves to deploy new technology without delay.
The changes in industrial organization that I described
earlier have three major implications for technology development.
First, the more rapid product development cycle places a premium
on bringing an idea quickly from the lab to the marketplace.
Second, we need to put new technologies to work in all
applications in order to reap the full competitive and economic
benefits from our R&D. While Americans invented the FAX machine,
we did not benefit from its explosive popularity. Third, we need
to rely increasingly on flexible, agile manufacturing, rather
than old style mass production. We should have the capability to
29
make a variety of products quickly and economically -- a process
characterized by short product cycles, but also high quality
output.
Taken together, these developments emphasize
decentralization -- an approach exactly opposite to my
opponent's "national industrial policies" led by government
bureaucrats. We need to get technology development, production,
and marketing closer to the consumer, not further away.
Moreover, my opponent's call for a cut in support for university-
based research will hurt the development of cutting edge
technology.
My agenda will increase funding for basic research and
complement that work with a focus on applied research and
development. Despite cuts by Congress, we have managed to
increase funding for basic research by 25 percent since 1989 --
to a record level. We are supporting applied R&D through a
series of new, high pay-off investments in critical technologies:
a High Performance Computing and Communications
initiative that will assist the development of a
thousand-fold increase in computing capability and a
one hundred-fold increase in communications speed by
1996.
30
an initiative to improve the manufacturing and
performance of materials -- improvements that will
enable advances in a wide range of other technologies.
an expanded program in biotechnology research with
applications in health, agriculture, and environmental
protection.
the establishment of the U.S. Advanced Battery
consortium, a jointly-funded four year effort to
develop an advanced battery for an emissions-free
electric car.
a significant increase in our aeronautics research
budget, underscoring the importance we place on the
U.S. aeronautics industry in an increasingly
competitive global market place.
the establishment of five regional manufacturing
technology centers for the distribution of modern
manufacturing tools, such as computer-aided design,
numerically controlled machines, and robotics.
These efforts to develop and apply new technologies need to
be complemented by the identification and removal of barriers to
the private sector's ability to bring new products and services
31
to the market. That's why my regulatory reform efforts --
including a process that subjects regulations to a
competitiveness analysis while still protecting health and safety
and a proposal to sunset regulations -- are critical to
supporting our enhanced technology development.
Just take one example: my opponent has proposed a major new
federal government investment in the field of national
telecommunications networks at the exact time that the private
sector is seeking to develop such a network on its own, but has
been stopped from doing so by federal regulations. (Get the
facts.)
C. Reform Our Legal System
Our competitive edge will be dulled if businesses are
continually handicapped by a legal system that serves lawyers but
frightens people. Therefore, another component of my agenda is a
reform of the American civil justice system.
America has experienced a civil litigation explosion. Over
the past 30 years, federal lawsuits have tripled. Instead of
being fast, fair, and affordable, our civil justice system is
slow, expensive, and putting us at a global disadvantage.
Long delays in dispute resolution waste valuable judicial
resources, force early settlement by those who cannot afford to
wait, discourage those who have meritorious suits, and encourage
frivolous suits by those who hope to leverage unjust settlements.
High punitive damage awards are passed on to consumers through
32
higher prices, job cuts, higher insurance, and fewer new
products.
According to a soon-to-be released study by the National
Association of Manufacturers, Americans spend $200 billion a year
just on direct costs to lawyers. That does not even count
lawyers on payrolls or the money spent on court settlements.
Our legal system is killing our international
competitiveness. Other nations do not face high domestic
litigation costs. Foreign companies only need 2-5% of the
product liability insurance our firms must carry because we do
not have uniform state standards for product liability and
punitive damages.
The litigation explosion affects everyone. High liability
costs have closed playgrounds and pools, forcing kids on the
street with nothing to do. Companies are afraid to offer
products that are available in Europe -- like a carseat for
children built right in the car or a medical treatment for AIDS
-- because they fear the liability.
My product liability reform legislation takes the trial
lawyers head on. I want to stop wide variation among states'
product liability rules; stop important products from being kept
off the market; stop excessive litigation costs with more money
going to lawyers than to injured consumers; cut excessive
insurance rates; and end excessive consumer costs.
My "Access to Justice Act of 1992" is intended to restore
fairness and efficiency to the nation's civil justice system
33
through: alternatives to federal civil trials such as alternative
dispute resolution; incentives for pre-litigation settlement,
including precomplaint notification; and a "loser pays" rule
requiring the loser to pay the winner's legal fees in suits
involving federal diversity jurisdiction.
We also need to continue our work with the states to
encourage fundamental change at the state and local level.
Lawyers, especially trial lawyers, are a powerful vested
interest in our society. They are well represented in Congress
and high on the lists of political contributors. My opponent
knows them very well. But this is a problem too important to
leave to the lawyers and their friends in high places. We must
sue each other less and care for each other more.
VIII. Economic Security for Working People
The American business of the 21st Century will need workers
who will bring them to life and keep them ahead of our
competition. To be able to contribute and concentrate, working
men and women will want to know that they can enjoy economic
opportunity and security. We can only achieve true security by
developing people's capability, not dependency. And we can best
supply security through the private sector, not government
bureaucracies.
It will be government's role to expedite workers'
adjustments in a fast-changing marketplace, provide people the
34
means to work and take care of their families, and arm people to
face the future by empowering them to make their own choices. In
particular, we can enable families to focus on building a future
by alleviating their fears about one of the single biggest costs
and problems that can knock them back: health care. And we can
help foster retirement security through encouraging portable
pension savings.
A. Job Training
Given the rapidity of change in the international and
domestic marketplace, we have to prepare people for the prospect
of changing jobs and learning new skills many times throughout
the course of a productive life. Therefore, we need a range of
job training and placement services -- for young people, factory
workers, white collar employees, and particularly during this
period, defense industry workers.
That's why one important portion of my recently-announced
workforce adjustment initiative is designed to shift the
government away from the old narrowly defined, expensive, and
less effective trade adjustment assistance that paid people off
without giving them real help to get back the work.
Work means more than income to Americans. It is also
fundamental to people's self-esteem, their self-confidence.
These are attitudes, values, that I want to encourage. I want
all Americans to be builders -- for their families, their
communities, their country. To encourage the work ethic, we need
35
to make every effort to match people with the jobs created by our
entrepreneurial capitalism.
The three key features of my job training proposal are: (1)
universal coverage, so all dislocated workers will have access to
basic transition assistance and training support; (2) skill grant
vouchers of up to $3000 to help meet the costs of adding new
skills and training; and (3) a tripling of the resources
currently devoted to training and worker adjustment, an
allocation of $10 billion over five years.
This proposal builds on my January plan to streamline the
federal job training system through "one-stop shopping" in every
community. Experience has demonstrated that the most effective
training and placement services are those closely developed with
local employers through private industry councils. That way the
training is designed to develop skills that employers know they
will need.
My expanded job training efforts will also be specially
designed to help those who may need to change jobs or careers
as
a result of NAFTA or other trade agreements and the downsizing of
our defense-related industries.
But we will ensure that we offer
TEAR
JERKING
training and placement to all workers: those who have lost their
jobs, have been notified that their jobs are being terminated, or
have been employed in industries experiencing significant changes
and workforce adjustments and who fear job loss in the future.
These dislocated workers would be eligible to receive three
types of assistance: (1) transition- assistance that includes
36
skills assessment, counseling, job-search assistance, and job
referral; (2) training assistance in the form of skill grants;
and (3) transition income support where necessary for workers
completing retraining.
I've also proposed a specially-targeted Youth Skills
Initiative.
A new Youth Training Corps will provide economically and
socially disadvantaged young people with intensive vocational
training through 55 residential YTC centers nationwide; these
centers will be located primarily in rural areas and will seek to
utilize converted defense facilities. The YTC will draw from the
military's high level of leadership and training expertise by
giving a hiring preference to individuals leaving our armed
forces.
I will also complement the YTC with a "Treat and Train"
program to strengthen existing youth drug training programs.
To help meet the needs of young people not planning to go on
to college, I will expand the National Youth Apprenticeship
Program that I began in January. This program offers high school
juniors and seniors a combination of classroom instruction and a
structured, paid, work-experience program. I want student
apprentices to receive both a high school diploma and a widely-
recognized certificate of skill competency. Students will also
have the opportunity to continue training at the post-secondary
level.
37
I started my Apprenticeship Program as a demonstration
program in 6 states; in my second term, I will expand it to all
50.
Finally, I will more than double the size of the present
JROTC program, a very successful and popular partnership between
the military and schools. JROTC emphasizes self-discipline,
values, citizenship, personal responsibility, and staying in
school -- it's a first class alternative to drugs and gangs. My
goal is to establish 2,900 JROTC units by 1994. Initially, we
will expand this program in inner-city high schools, but I want
to make JROTC available to every high school across the country
that requests it. This program is another way in which we can
relate the successful experience of America's veterans to the
next generation.
B. Affordable Health Care for All Americans
The economic security of men and women requires a major
reform of the U.S. health care system. The present system
provides high quality, high-tech medicine, but at an unacceptable
price: spending has increased at a rate two to three times the
rest of the economy; thirty-four million Americans have no health
insurance; and millions more are afraid to change jobs for fear
of losing their health insurance.
My program will build on the strengths of the system --
consumer choice, innovation, and state of the art medicine --
while controlling costs and expanding access.
38
I want to guarantee access to health insurance for all poor
families through tax credits {or vouchers for those who don't pay
taxes} sufficient to pay for a basic health insurance plan
($3,750 for a family). Other low and middle income families
would get tax relief to partially offset the cost of their health
insurance. In total, some 95 million Americans will benefit.
My program also includes:
provisions that encourage small businesses to develop
less costly health care insurance networks for their
employees by combining resources to achieve broader
risk sharing, economies of scale, and purchasing power;
"job lock" protection for employees and their families
so that they will not lose coverage if and when a
person changes jobs;
guaranteed insurability so that people with "pre-
existing" illnesses cannot be denied a job or health
coverage on the job;
100% tax deductibility of health care premiums paid by
the self-employed, as compared to the present 25%
deductibility;
39
malpractice reforms that will reduce the number of
unnecessary procedures performed on patients and
thereby reduce the cost of medical care; and
reforms to encourage widespread use of electronic
billing to save an estimated $2 billion a year in paper
costs.
Taken together, my program would cut health care costs by
$394 billion over five years through preventive care, reducing
defensive medicine, malpractice reform, encouraging enrollment in
cost-effective health plans, arming consumers with information
about cost and quality, and eliminating administrative waste and
unnecessary paperwork.
I believe we can provide access to affordable health care
for all Americans, while preserving choice for patients and their
families in selecting doctors, hospitals, health care programs,
and employment. My approach, in contrast with my opponent's,
relies on the private sector to deliver health care services.
But I would make the market work for us by enhancing competition,
which will cut costs. My malpractice reforms would cut costs
further by removing the fear of lawsuits that leads to wasteful
procedures.
I firmly believe that a move to national health insurance,
as some of my opponents want, would be a major, irretrievable
mistake. That course would turn over the health care sector -- a
40
full 13% of our economy -- to the government. The result would
be more bureaucracy, rationed care, inefficiency, and, in the
end, even higher costs.
My opponent's "pay or play" approach winds up in the same
place as nationalized, bureaucratic health insurance -- but
through a different route. And it is likely to kill a lot of
jobs along the way. Increasing the costs of labor -- the "play"
in his approach -- will lead businesses to hire fewer workers.
Offering the alternative of government-sponsored health care paid
for with new taxes on payrolls -- the "pay" -- will dump the
problem in the laps of government bureaucracy with the costs paid
for by businesses and workers.
C. Pension Portability
I have also been concerned about the ability of workers to
preserve their retirement pensions as they change jobs. This is
a growing need because of the increased likelihood that most
workers will have more than one employer over the course of their
working years.
I proposed an initiative last year to increase pension
portability, expand pension coverage, and simplify the law
governing pension plans. And I am pleased that I was able to
sign a law this summer that incorporated the key elements of my
proposal. The new law enhances retirement security by permitting
workers to transfer accrued pension benefits directly to an IRA
or to their new employer's pension plan.
41
Despite this improvement, I believe we must continue to look
for ways to make it easier for workers who change jobs to take
pensions with them. We need to eliminate incentives to "cash
out" benefits and increase incentives to save for the future.
Job training, affordable health care, retirement security.
When combined with a new system of education and entrepreneurial,
competitive business, we can offer working men and women real
economic security in the 21st Century.
IX. Leaving No One Behind: Economic Opportunity for Every
American
For over 200 years, the most exceptional aspect of American
society has been the belief, the hope, that this is a land where
people can make a better life for themselves and their children.
It's this spirit, the commitment to the American Dream, that has
made our country and our society the most dynamic in the world.
If we are going to use that energy to drive us forward into the
21st Century, we will need to tap the aspirations of each and
every one of our citizens. No one should be left behind for want
of opportunity.
Many of the programs that I have discussed above -- health
care. for all Americans, child care, job training, pension
portability, a new competitive school system based on community
involvement and choice for all American families -- support my
plan to empower all Americans to make their own choices and
42
better their lives. But I believe we need to do more for certain
citizens who have fallen too far behind.
My philosophy for enabling all Americans to have a piece of
the American Dream is simple: it's based on property and work.
Our urban and welfare programs must be designed to enable people
to break the cycle of poverty, get back on their feet, get back
to work, and take responsibility for their own choices and their
own lives.
My ideas are in direct conflict with the logic of "welfare
rights" that emphasizes entitlements. Nor do I favor "income
maintenance" strategies that assume the problem of poverty is
simply a lack of income that can be made up by government.
Our goal should be to help people develop the human and
financial capital that enables them to become self-sufficient.
We have made a start down this path with our implementation of
the welfare-to-work logic of the Family Support Act of 1988. We
have been encouraging flexible and innovative implementation
through waivers that enable states to develop new programs to
enhance parental and family responsibility and to insist on
education and job training for those on welfare.
In our inner cities, we need to restore hope by clearing
away the handicap of crime, building a core of property owners,
creating business incentives, restoring infrastructure, and
focusing our programs on work and discipline.
Enterprise zones can create solid economic foundations in
distressed communities. Our "Weed and Seed" effort can help
43
reclaim and revitalize impoverished and embattled communities by
eliminating the fear of drugs and violence, targeting coordinated
human services programs, and improving the housing stock and
infrastructure.
We also need to extend opportunity by enabling lower income
families to build assets -- for example, by allowing aid
recipients to accumulate higher savings without losing their
eligibility.
And we need to expand homeowner opportunities to lower and
middle income families. For example, HOPE grants enable more
inner-city people to own their own homes. Our $5,000 tax credit
for first-time home buyers would help; so would permitting
voucher recipients to apply their rental subsidies toward the
purchase of a home.
We can enhance the choice, quality, and availability of
housing through affordable rent subsidies in the form of housing
vouchers, and through our "Perestroika in Public Housing" program
that widens opportunities for public housing tenants to change
the management of troubled projects.
This property and work-based approach need not be more
expensive than the traditional welfare bureaucracy. For example,
over the past 12 years, federal spending for low income
assistance doubled even after inflation -- from $9.1 billion in
1980 to $18.3 billion this year (both in 1992 dollars). This
year, HUD is providing housing assistance to 4.6 million
low-income families, up from 3.1 million in 1980. I have pressed
44
to switch some of this funding to vouchers because they are more
cost effective than constructing new public housing units.
Furthermore, families wouldn't have to wait five years for the
units to be built, and the vouchers give families more choice.
For too long, the barons of Congress have refused to discard
failed programs that perpetuate welfare dependency. Originally,
many of these programs were well intentioned, and I respect those
who tried them. But now we know better. Give us a chance to try
a different approach that will empower people to help themselves,
to build some capital for their families, to make choices that
develop self-respect and discipline. That's the real way to
offer economic opportunity for every American, to leave no one
behind.
X. Keeping Government Slim
My blueprint envisages an important government role to make
a secure and strong America. But it is also important that
government not siphon off more private resources than is
absolutely necessary to perform the functions that will help us
win the economic competition. Because an overweight government
-- one that serves the special interests instead of America's
interest -- will handicap our country in the race of a new era.
A number of the items on my agenda can be accomplished by
redirecting current funding away from bureaucracies and towards
people. My agenda empowers people with the means to work, own
45
property, build capital, raise families, and be effective
contributors within our private market economy. Some of my ideas
-- for example, legal and health care reforms -- should help us
save money.
Contrary to the assertions of some politicians and special
interest groups, spending as a percentage of the nation's GDP has
been going up, not down. In 1991, the Federal government spent
23.5% of what our nation produced. That compares with 17.6% in
1965, 19.9% in 1970, 22.0% in 1975, and 22.3% in 1980. So not
only has government grown as the economy has grown, but
government is taking a bigger share. The American people are not
taxed too little. The American government spends too much.
In my acceptance speech I noted some of the efforts I will
make to hold down spending. I have proposed capping growth on
mandatory spending, other than social security. That would still
permit spending at present levels plus an adjustment for
inflation and population growth. Yet this cap would save $294
billion over five years.
To start to implement this cap, I have proposed almost $72
billion in specific spending cuts for "mandatory" programs (FY93-
97). If you add these proposed cuts to others I have previously
called for but which Congress has not yet enacted, my specific
cuts would total about $132 billion over five years. I have also
proposed the outright elimination of 246 specific discretionary
programs.
46
By way of comparison, my opponent has specifically proposed
less than $5 billion in cuts in mandatory programs. And he has
specifically proposed to eliminate only one program -- the
honeybee subsidy program, which Senator Gore voted to retain.
Furthermore, I proposed freezing all other spending, and I
will enforce this freeze by vetoing any bill Congress sends me
that spends more than I asked for in my budget.
I've asked Congress for the line item veto, a disciplinary
tool utilized effectively by the governors of 43 states. This
veto authority is important not only to help cut spending, but to
increase my leverage with a Congress that seeks to tax more and
spend more.
Government should be subject to the discipline of a balanced
budget amendment. State governments operate that way.
Businesses operate that way. Families operate that way. And
given the breakdown of Congressional discipline, we need an
amendment to ensure that the Federal government operates that
way. If we had such an amendment earlier, we wouldn't be paying
almost $200 billion dollars a year on interest for the debt left
us by earlier Congresses.
I also believe taxpayers should have the right to direct 10%
of their tax payments to reduce debt and spending through a
"check-off" on their tax forms. If all taxpayers took the full
10%, the cut would be about $50 billion. That's only 3% of the
Federal budget of about $1.5 trillion. Since federal spending
has been growing at a rate of about 8% per year, even this
47
proposed cut would still enable spending to grow; it would just
grow more slowly.
Some editorialists slight my checkoff proposal, but the
American people seem to like it, and I think I know why. The
checkoff proposal traces its roots to a venerable tradition in
American history. At the turn of this century, many people were
concerned that the government establishment was slipping away
from the people it is supposed to serve. This movement led to a
number of innovations such as referenda, the right of recall, and
the direct election of senators. The idea of term limits for
Senators and Congressmen, which I fully support, is another of
this type of reform. At the time each was proposed, the
conventional thinkers mocked the changes. The same is true
today. Given the breakdown in spending discipline in Congress,
it's time that we insist on compensating reforms that give the
people a bigger say in the direction of Federal government
spending. I say it's time to give the people the power to cut
the deficit.
The size and structure of the Government also needs to be
slimmed down and changed. Its organization of the Federal
Government reflects ways of doing business that are now 30 to 50
years old. Companies all across America have been restructuring,
cutting costs, becoming more efficient -- preparing to be more
competitive in a fast-changing marketplace. I believe the
Federal Government can and should do the same thing. I'll be
48
talking more about this later, but I believe a streamlining of
the Federal Government should include three elements:
First, I will cut the operating budget of the Executive
Office of the President by 33% if Congress agrees to subject its
operations to a cut of the same size. With fewer Congressional
staffers badgering the Executive Branch, I know we can cut costs
by that amount. Second, I believe all federal employees earning
above $55,000 a year should be subject to a 5% pay cut; other
Americans have tightened their belts, and so should the better-
paid federal workers. Finally, I believe we can restructure and
reduce the size of the Executive Branch through a consolidation
of agencies and bureaus that will enable us to do our job better.
Why should the Federal Government by the only large organization
in America that continually adds size and offices, and never gets
rid of anything? Therefore, I will submit a streamlined
reorganization plan for the Executive Branch to the new Congress
-- and I hope they take the hint, too.
Let me give you an example. In many respects, the Arms
Control and Disarmament Agency, or ACDA, is a creature of the
Cold War. It needs to adapt to the times. Its highly trained
scientists and engineers are a valuable resource. Some of them
can support our efforts to stem and reverse the proliferation of
weapons of mass destruction. But others may be well suited to
work at defense conversion -- transforming the genius of modern
day swords into 21st Century plowshares.
49
Multiply this idea by a hundred, or even a thousand, others.
We can get ride of some tasks, conduct others more efficiently,
and add new ones where appropriate to support my agenda.
I also am committed to reducing the tax burden on the
American people. I have said that I will propose to further
reduce taxes across-the-board, provided we pay for those cuts
with specific spending reductions that I consider appropriate, so
that we do not increase the deficit.
To give you a an illustrative sense of the kinds of tax cuts
we could achieve if we discipline spending, just consider what we
could do if Congress acted on the $130 billion in specific
spending reductions that I have already proposed. These savings
alone could finance an across-the-board rate cut of 1 percent, a
reduction of the small business tax rate from 15% to 10%, an
increase in small business expensing of investment in equipment,
and a reduction of the capital gains tax.
In sum, my direction is clear -- I want to spend less and
tax less. My opponent wants to spend more and tax more.
I believe the Federal Government can reallocate its almost
$1.5 trillion in spending more effectively if we implement my
agenda. The reductions in defense spending that we have already
begun will provide some of these funds, and I don't want them
wasted in a torrent of new spending programs designed by a horde
of special interests.
I honestly believe that this is the only way to get the size
and spending of government under control. I know that serious-
50
minded people believe we need to increase revenues to close the
deficit. But it won't work. I have seen too many times that
efforts to close the deficit by increasing taxes have only turned
out to give Congress a license to spend more money. There's a
reason for this. Spending is power for Congressmen. That's how
they show influence, placate interest groups. That's how they
get elected. If you give them more tax money, they will spend
it.
XI. A Strategy for Implementation
This year is an important turning point for the United
States. We are entering a new era, and for the first time in
many years, it appears that Congress will have 150 new faces for
the President to work with. That's why I'm asking for a mandate
for my program. That's why I have promised that I will meet with
all new members -- all 150 or more -- before they are besieged by
the special interests and permanent staffs.
I also believe we need to take another step to ensure that
the new Congress does not become like the old one. The root of
the present problem is political contributions from organized
special interests through political action committees, or PACS.
Ten years ago, PACs raised and contributed $ million to
political candidates. This year the number will be closer to
$ million. The other party doesn't want to do anything about
it, because they are the biggest recipients. I want to put them
51
to the test. I want a new Congress to stay clean. So an
important part of my new legislative agenda will be a simple bill
that bars all contributions by PACS.
I am committed to making my program work with Congress.
Between the election and the convening of a new Congress, I will
lay out an implementation plan for my agenda. I intend to be
ready to present the new Congress a first-year plan to carry out
the legislative proposals described in this agenda:
A radical overhaul of American education to emphasize
excellence, standards, competition, entrepreneurial
schools, and a "G.I. Bill for Kids" that will give
parents a choice of schools
My job training programs
My health care reforms
A package to cut spending, including a cap on the
growth of mandatory spending, a taxpayers' "checkoff"
to reduce the debt, a line-item veto, and a balanced
budget amendment
Tax cuts paid for through spending reductions and
growth, including reductions to spur entrepreneurial
capitalism and small business
52
NAFTA
New trade negotiating authority so we can conclude new
Free Trade Agreements across the Atlantic, the Pacific,
and in our own hemisphere
A government reorganization plan to streamline the
structure, ensure functions fit new needs, and cut
salaries at higher levels
Reform of our legal system
A package to clear away crime, build business, and put
people to work in our inner cities
An expansion of Civilian R&D linked to new applications
Ban on PAC contributions
Limits on Congressional terms
Now I know I may not be able to get everything I want in the
exact way I want it. But your support for a mandate to get it
done would give me momentum. And then I intend to fight for this
53
agenda, fight as hard as I can to get as much as I can, and come
back again to get more.
If Congress hesitates on some fronts, I intend to keep
moving forward. You have seen that we can implement back-to-
work welfare reform by granting waivers that enable the states to
do the job more effectively. Similarly, 44 states and more than
I
1700 communities have started to implement my educational reforms
while Congress has stalled. We can get a great deal done at the
state and local levels.
I will work with governors, state legislatures, local
governments, and the private sector to pursue my agenda. While I
want a Congress that can help me do the job, I'm committed to
getting the job done one way or the other.
This is my Agenda for American Renewal. With the end of the
long Cold War, we can direct more energy and resources to target
problems at home. The American people want that. The American
people deserve that.
At the same time, Americans recognize that the great events
of recent years have shook the world, and it will never be the
same. If we are to succeed as a nation and as a people, if we
are to hold true to all that has made America the last, best hope
on earth, then our renewal at home must at the same time enable
us make the 21st Century another American Century.
54
My Agenda draws together our people and our government to
take on this challenge. We will create a $10 trillion economy.
We will renew America. We will win the peace.
My approach to this challenge is fundamentally different
from my opponent's. I want to stimulate entrepreneurial
capitalism. I want to help people by enabling them to make their
own choices about health, education, job training, and child care
from a variety of competing alternatives. I want to supply
services through the private sector. I believe people should sue
each other less and care for each other more. I want Government
to spend less and tax less. I will fight without hesitation for
a free and fair flow of trade, capital, and ideas around the
world. I believe America should compete, not retreat.
I know times have been tough for too many Americans. I have
sought to explain the causes of these problems and what I will do
about them. Of course, you will have change. The question is
what type of change. You face a serious choice. And I ask, when
you step into that voting booth, please consider carefully which
candidate's agenda for change fits best with your beliefs,
America's experience, and lasting peace and prosperity.
55
Agenda
for American
Renewal
Byed
Agenda
for American
Renewal
1
I.
In wartime, the costs of
Introduction:
Government are always high.
"We
Domestic needs are not fully
are a nation at
The Challenge
met. In times of conflict, a
peace. But being at
good nation tries to look after
America stands at the
its poor, its sick, its elderly, its
peace with others and
edge of a new era, a new cen-
less privileged members, but
tury. Here is my bridge to the
being at peace with
not as completely as it should
other shore: An Agenda for
or would like to.
ourselves are different
American Renewal - diagnos-
ing the economic problems we
things. The one we have
Today, this year, for the
face, setting forth the princi-
first time since December
achieved. The other, we
ples to guide our actions, and
1941, the United States is not
explaining the approach I am
can and will."
engaged in a war, hot or cold.
pursuing.
We are a nation at peace.
Over past weeks I have
But being at peace with others
been discussing some of the el-
and being at peace with our-
ements of my economic agen-
selves are different things.
da. In coming weeks I will be
The one we have achieved.
expanding on my ideas. This
The other, we can and will.
document shows how the
pieces fit together.
The American people rec-
ognize this historical water-
It is important to step
shed. They want and deserve a
back for a moment, to take
peacetime system of taxation,
stock of where we are as a
a peacetime freedom from un-
great nation in the broader
necessary intrusion into our
sweep of history.
lives, a peacetime commitment
to sound money, a peacetime
The American people have
dedication to unfinished work
just completed the greatest
and unsolved problems close to
mission of all, the triumph of
home.
democratic capitalism over
imperialistic communism.
At the same time,
Mission accomplished.
Americans are aware of epic
changes in the world and the
Throughout history, when
economy. They sense the dis-
long wars end, people have
quiet in many of the industri-
been confronted with the prob-
alized democracies that have
lems of converting to peace-
been our partners in the long
time and establishing a new
struggle. Our own economy
basis for securing peace and
has been going through some
prosperity.
profound changes. And I un-
2
derstand how difficult change
In this country, we have
I will sharpen the competi-
can be, particularly for those
always preferred an entrepre-
tive edge of our businesses by
who feel its effects most direct-
neurial capitalism that grows
encouraging entrepreneurial
ly. Americans sense we face an
from the bottom up, not the
capitalism and small business,
era of great opportunity, but
top down, a capitalism that be-
deploying advances in R&D
that there are also great risks
gins on Main Street and ex-
and technology, and reforming
if we fail to choose wisely.
tends to Wall Street, not the
our legal system so it no
other way around.
longer puts us at a global dis-
We must now demonstrate
advantage.
our unique ability to trans-
Nor have we been taken in
form anxiety into regenera-
by the view my opponent
My agenda promotes eco-
tion. Only in America do we
prefers, that Government
nomic security for working
have the people, the resources,
should accumulate capital -
men and women through job
the economic strength - and
by taxing it and borrowing it
training that will ease adjust-
especially the principles and
from the people, and investing
ments and provide people with
ideals - to pick up the chal-
it according to some industrial
new capabilities for work in
lenge.
policy design.
the face of competition and
change. And I will enable fam-
For America to be safe and
My agenda is for an inclu-
ilies to concentrate on building
strong we must meet the
sive America, not an exclusive
for the future by giving them
defining challenge of the '90s:
America - and certainly not a
the means to protect them-
to win the economic competi-
reclusive one. We will chal-
selves against today's cost of
tion - to win the peace.
lenge the world with an inter-
health care, and by making it
national economic and trade
easier to build tomorrow's re-
The United States must be
strategy that will promote free
tirement security. I want our
a military superpower, an ex-
trade arrangements east and
efforts to reach out to all our
port superpower, and an eco-
west, north and south, to
citizens, leaving no one be-
nomic superpower.
strengthen our global econom-
hind, because we will need the
ic reach and complement our
work, aspiration, and energy
My approach is to look
worldwide security presence.
of each and every American.
forward - to open new mar-
At the same time, we need to
kets, prepare our people to
foster the capabilities at home
Finally, since our competi-
compete, to strengthen the
that will keep us in the lead.
tive strength and entrepre-
American family, to save and
neurial spirit must flow from
invest - so we can win.
Developed economies need
the private sector, I will
developing minds. To help pre-
streamline Government to
This future depends on
pare all our children for a con-
meet changing needs.
economic growth, but not for
stantly changing workplace, I
the few at the expense of the
want to make radical changes
We can empower America
many, not for the present at
in our education system. Each
to reach a grand goal: a $10
the expense of the future.
child should graduate with
trillion economy by the first
skills, self-discipline, and self-
years of the 21st Century.
confidence.
3
When President Reagan
race, we are now able to do
and I assumed office in 1981,
something we have all hoped
the U.S. economy was about
for since the close of World
"The first great
$3 trillion. We've almost dou-
War II - lighten the load of
change in our economy
bled that over the past 12
the defense burden.
years. So I know we can nearly
is ironically due to our
double it again through sus-
In the short run, this ad-
very success in ending
tainable real growth over the
justment has meant cutbacks
coming decade.
and lay-offs in many indus-
the Cold War.
tries that have depended on
we are now able to
With a $10 trillion econo-
to
defense spending. We must
my, we could provide the re-
ease this transition. But in the
do something we have
sources, private and public, to
medium and long run, reduc-
all hoped for since the
satisfy our most ambitious so-
tions in defense spending will
cial and financial require-
free up many new resources
close of World War II - -
ments. We could simultane-
for our people and economy.
lighten the load of the
ously renew America and pay
down our national debt.
Second, it seems that al-
defense burden."
most every time you open the
So now let me turn to how
business pages you can find a
we can meet the challenge and
story about a major U.S. cor-
reach our goal.
poration that is restructuring
itself. Our industries are in
the process of transforming
II.
themselves from old-style hier-
The Context:
archical organizations to so-
Five Changes
called "flattened pyramids."
This new industrial organiza-
Underway in the
tion emphasizes a skills-based
Economy
workplace, "lean production,"
a "just in time" inventory, and
The U.S. economy has
short product cycles rather
been working its way through
than mass production. Our
five profound changes. They
companies are integrating
establish the context for my
R&D, manufacturing, and
agenda.
marketing into a seamless web
of innovation. This is a revolu-
The first great change in
tion as dramatic as the one
our economy is ironically due
when Henry Ford led the
to our very success in ending
country from craft-based pro-
the Cold War. Since our super-
duction to mass manufactur-
power rival of the last half
ing early in this century.
century has dropped out of the
4
We have to make these
created over 21 million jobs,
entered the 1980s with some
adaptations succeed if
more than all the new jobs in
14,000 commercial banks and
America's industries are to
the other major industrial
4,600 savings and loans. In
keep ahead of their interna-
countries and the rest of
comparison, Canada had about
tional competitors. Strong
Western Europe combined. Yet
160, and Japan had under
sales and productivity increas-
great booms produce excesses,
100. The vast majority of those
es are the prerequisites for
and this time too many compa-
small U.S. banks and S&Ls
creating more jobs, boosting
nies, too many financial insti-
operated in a heavily con-
wages, and upgrading
tutions, and too many house-
trolled environment where
benefits. In fact, it is partly be-
holds took on too much debt.
their costs of funds were limit-
cause of these changes that
ed by ceilings on your pass-
our annual growth in manu-
We have been paying
book accounts. Other regula-
facturing productivity over the
down that debt - and lower
tions restricted competition by
past 10 years was over 50%
interest rates have helped us
imposing costs and inefficien-
higher than in the Carter
do it. Millions of people have
cies on savers and borrowers.
years. It's why American firms
refinanced homes at lower
lead the world in exports.
rates, reducing mortgage pay-
In the late '70s, this out-of-
ments by as much as $1,200 to
date system was buffeted by
Nevertheless,
these
$1,500 a year. When compa-
record interest and inflation
changes also have produced
nies restructured, they paid
rates; it was challenged by
layoffs and relocations among
down debt, strengthened bal-
competition from new financial
both blue and white collar
ance sheets, and positioned
services. As in any other line
workers. Middle-aged bread-
themselves to enjoy greater
of business, the less efficient
winners are wondering
profits when stronger growth
institutions could not survive.
whether their company will be
resumes. This process will
But because our banks and
the next to make announce-
leave our economy leaner and
S&Ls held insured deposit ac-
ments, and they worry about
more powerful. Many firms al-
counts for most hardworking
their jobs, health care, and
ready are. But while that debt
Americans, the streamlining
pension rights. Some are also
was being paid down, people
process had to be managed in
troubled by the prospect that
bought fewer goods, and com-
a way that enabled the
after sacrificing to send their
panies put less money into
Government to protect your
kids to college - often the
new investments and jobs. The
savings. In effect, the
first generation to attend -
process is largely over, but it
Government picked up these
that these children's diplomas
has left consumers and compa-
costs so your savings would be
may not be golden tickets to
nies a little cautious.
safe.
security.
Fourth, we entered the
This process, too, is near-
Third, the 1980s wiped
'80s with a banking system de-
ing its end A strong economy
away the dismal economic per-
signed 50 years earlier - an
must have a good banking and
formance of the late '70s. We
incongruous relic in an era
financial system so entrepre-
enjoyed the longest peacetime
when billions of dollars can be
neurs can get capital, busi-
expansion in U.S. history, last-
sent around the world in a mi-
nesses and farms can get
ing seven and a half years. We
crosecond. The United States
loans, and families can buy
5
homes and cars. We will have
Two, it means that if
a more competitive and effi-
America is going to be strong
"No
nation is an
cient financial system that will
and growing in the 21st
serve companies and families
Century, we must be ready,
island today. We are
better. Over the next few
able, and willing to compete
years, the Government will ac-
around the globe. We need to
part of a global
tually gain revenues from the
encourage entrepreneurial
economy. To grow is to
sales of billions of dollars of
capitalism and investment at
assets that it acquired from
home, and at the same time
trade; to expand is to
banks and S&Ls as it protect-
ensure that our labor force re-
compete. One
ed savers. But this process has
mains the best in the world.
left lenders cautious. Business
manufacturing job out
borrowing rates and mortgage
Three, we need to seize op-
of every six depends
rates are way down, but it's
portunities to develop new
still too hard for small busi-
markets, particularly in areas
directly on our exports.
nesses to gain access to capital
that have potential for
One acre out of every
and credit. We are still taxing
significant growth in the fu-
capital too much.
ture. One of the other benefits
three is sowed for sale
of the end of the Cold War is
abroad."
The final economic change
the extraordinary potential to
is perhaps the most far-reach-
expand trade and sales to hun-
ing of all: No nation is an is-
dreds of millions of potential
land today. We are part of a
customers who not long ago
global economy. To grow is to
were the captives of our
trade; to expand is to compete.
enemies.
One manufacturing job out of
every six depends directly on
our exports. One acre out of
III.
every three is sowed for sale
Start with
abroad.
Strengths
This international econom-
ic interdependence has three
In developing an agenda
implications.
for the future, we should take
a clear-eyed look at our
One, when growth slumps
strengths as well as weakness-
abroad, it drags our economy
es. Not surprisingly, the other
down with it. Both Western
side has conveniently skipped
Europe (especially Germany)
over our country's many
and Japan are going through
strengths. Frankly, they want
major readjustments - and
you to believe America is over
that has contributed to our
the hill and past its prime. But
sluggishness.
they have no more right to
6
convince you the economy is
own homes, as compared
falling. We must know our
worse than it is for political
with 59% in Japan and
strengths before we build on
advantage than I have to un-
40% in Germany.
them. Over the past 12 years,
derstate the problems. So let
we increased the U.S. economy
me just note several key facts.
The U.S. sends more of its
by about $2.8 trillion - that's
like creating the total size of
per
students on to higher edu-
the German economy twice
P.O
The Misery Index - the
cation - 68% - than any
sum of inflation and unem-
other country, well above
over. So I know our goal of a
ployment - is down to
the 32% rate in Germany
K5084.
Forth
$10 trillion economy is attain-
10.8% today, from 19.6%
able.
and 30% in Japan. And
in 1980.
52% of these U.S. students
are women, as compared
We're also in a strong posi-
tion internationally. But we're
Inflation has fallen to
with 26% in Japan and
roughly 3%, the lowest in
38% in Germany.
going to need the national
adaptability and capability to
a quarter of a century (ex-
keep leading our competitors.
cept for 1986).
With exports of $622 bil-
And we must have the courage
lion, the U.S. is the world's
of our convictions to say "no"
Interest rates are at a 20
largest exporting nation.
to the wrong sort of changes
year low. Mortgage rates
Exports increased by 40%
for the future - false promis-
are now in the 8% range,
during my Administration.
es based on false premises -
half the rate President
changes we cannot afford at
Reagan encountered in his
We produce 25% of the
this key moment in the world
first year. Thanks to these
world's total output with
economic competition.
low rates, more people can
5% of the world's popula-
afford to own a home today
tion.
than at any time since
IV.
1973.
The productivity of
Guiding
American workers is ap-
Principles
While unemployment is
proximately 26% above
still far too high, the share
those in Germany and 30%
Before outlining the
of the working age popula-
above those in Japan.
specifics of my agenda, I want
tion with jobs during my
to set out four guiding princi-
administration has aver-
I do not mean to suggest
ples. An effective strategy
aged 62.2%, the highest in
either that everything is well
must be dynamic. As new
U.S. history.
or that we do not need to lead
problems or opportunities pre-
and manage the changes tak-
sent themselves, we will need
The United States has the
ing place in the world and at
to make adjustments. Guiding
highest home ownership
home more actively. We do.
principles will ensure we fol-
rate of all major industri-
low a consistent path and help
alized countries: 66% of
But you can't chart the
shape our policies into the
U.S. households own their
stars if you think the sky is
future.
7
First, start with the ba-
for helping people, for re-
sics: We are a nation of special
sponding to their needs. And
"We
individuals, not special inter-
we've seen that these are ap-
have to keep to
ests. Individuals gain primary
proaches that work.
the fundamentals of
strength, protection, and in-
spiration from their families
We prefer a hand up to a
sound economic
and communities, not the legal
handout. We want to empower
growth: lower tax rates,
system or Government social
people to make their own
services. People find their
choices, to break away from
limits on Government
friends and their enjoyment in
dependency. We want to give
spending, greater
voluntary association with
individuals and families eco-
one another, not in some bu-
nomic security by giving them
competition, less
reaucrat's paint-by-numbers
the capital, the capabilities,
economic regulation,
dream.
and the confidence to decide
for themselves. We want
sound money, and more
Individuals, families, com-
everyone to have a stake in so-
open trade that can free
munities. That's where we
ciety, to own property, so
start.
everyone will build something
tremendous private
with it for themselves and our
initiative and growth."
Second, we have to keep to
country. Whereas my oppo-
the fundamentals of sound
nent's approach may place a
economic growth: lower tax
premium on redistribution and
rates, limits on Government
"leveling," our programs will
spending, greater competition,
unleash initiative, reward suc-
less economic regulation,
cess, and encourage excel-
sound money, and more open
lence. Our approach is to give
trade that can free tremen-
people the power to work,
dous private initiative and
save, and be their best.
growth.
Finally, all our policies
Experience has shown that
must be brought together ef-
these are the steps we need to
fectively if we are to prosper
take to create jobs, raise
as a people and succeed as a
wages, spur entrepreneurs, ex-
nation. America must have ap-
pand capital and investment,
propriate new approaches for
and build businesses.
the changes at home - just as
we've launched new policies to
Third, in the '90s Govern-
lead and manage change
ment can build on these fun-
abroad. We must recognize the
damentals by offering opportu-
interrelationship between do-
nity and hope for individuals,
mestic and foreign policy -
families, and communities.
between economic and security
There is a conservative agenda
policy. At the same time, we
8
must execute our agenda more
This is how America will
excellent American customers.
effectively with a new
create a $10 trillion economy.
Equally important, the inte-
Congress, state and local gov-
gration of United States,
ernments, and the private sec-
Mexican, and Canadian capa-
tor. Our aim must be to press
V.
bilities will improve our global
our policies together, as a
Challenging
competitiveness by enabling
package, to make America se-
cure and strong.
the World:
American firms to purchase
inputs at lower costs. This will
A Strategic
help U.S. firms to stay in the
Therefore, my Agenda for
Global Economic
forefront of high wage, high
American Renewal mandates
and Trade Policy
value-added production.
action on six interconnected
fronts. Because we face com-
During the Cold War, we
Our geopolitical position is
plex problems, no one solution
built a global security struc-
also advantageous. The United
will suffice. The whole of these
ture to contain and counter
States is both a Pacific and a
elements will be a solution
the Soviet Union and commu-
European power; our political
greater than the sum of its
nist aggression. We forged mil-
and security ties link us with
parts:
itary alliances across the
the largest and most rapidly
Atlantic and Pacific that un-
growing economies across both
Challenging the World: A
derpinned that structure. In
oceans. Our trans-Pacific trade
Strategic Global Economic
the post-Cold War era, we
already exceeds our Atlantic
and Trade Policy
need a strategic global eco-
trade; that's one reason why
nomic and trade policy that
we helped launch an organiza-
Preparing Our Children
will ensure our position as an
tion for Asia-Pacific Economic
for the 21st Century
economic and export super-
Cooperation that will further
Economy
power as well.
strengthen our economic ties
with that region. Our own
We are well positioned to
neighbors - from Central
Sharpening Business'
achieve this goal. We enjoy the
America to Chile - want to
Competitive Edge: En-
largest fully integrated market
build bridges of trade with us
couraging Entrepreneurial
in the world; this gives us
so they can build better
Capitalism
leverage with other countries
economies for their people.
that want access to our mar-
Promoting Economic Se-
ket. Once the Congress enacts
"The ball of liberty,"
curity for Working People
the North American Free
Jefferson once wrote, "is now
Trade Agreement (NAFTA),
so well in motion that it will
Leaving No One Behind:
our position will be further
roll around the globe." He was
Economic Opportunity for
strengthened. NAFTA will
right.
Every American
open an important market, a
Mexican economy whose
Freedom has rolled
growth prospects will quickly
through Eastern Europe, the
"Rightsizing" Government
transform its expanding in-
former Soviet Union, and
dustries and consumers into
Latin America - and the ball
9
is now in our court. Free peo-
1993 because of those special
ple and free markets develop
interests who herd together
hand in hand. People value
with a protectionist purpose.
"Free people and free
American values. People want
The global trade negotiations,
markets develop hand
to buy what we have to sell.
in turn, could be very close to a
English is the language of
breakthrough if the United
in hand. People value
freedom and business.
States continues to act as a
American values. People
strong world leader. There is a
Our political and economic
proposed draft text that estab-
want to buy what we
ties are complemented by the
lishes the outlines of a
have to sell."
appeal of American culture all
significant new GATT agree-
around the world. This is a
ment. Once we assure cuts in
new "soft power" we can em-
the subsidized agricultural
ploy. Today, our movies,
trade along the lines of that
music, and videos are among
text - to enable our farmers to
our top-selling exports.
secure their competitive advan-
tage - I believe we will be able
Finally, as the primary
to complete the Uruguay
founder and the most signi-
Round agreement.
ficant proponent of the GATT
global trading system, we con-
An improved global trad-
tinue to have a strong hand as
ing system is, however, only a
long as we use it to truly open
base for freer trade, for
markets, including our own.
stronger investment ties, for
The key to America's growth,
increased global growth. We
expansion, and innovation has
need to start to develop a
always been our openness to
strategic network of free trade
trade, investment, ideas, and
agreements [FTAs] across the
people.
Atlantic and the Pacific and in
our own hemisphere. This net-
Therefore, the next steps in
work will stand in sharp con-
my strategic trade policy are to
trast to the backward blocs of
secure Congressional agree-
economic isolation. If we are to
ment to NAFTA and to com-
be a true export superpower,
plete the global trade negotia-
we cannot be tied down to one
tions - the so called Uruguay
region. Instead, my intent is to
Round negotiations in GATT.
use our attractive domestic
Our NAFTA agreement will
market as the basis of a mus-
open doors for American busi-
cular free trade policy that
nesses, workers, and con-
will strengthen America's
sumers. It will create good jobs.
global economic reach and
Nevertheless, I expect a tough
complement our worldwide se-
fight in the Congress in early
curity presence.
10
By focusing on opening
slovakia by the end of my sec-
will ensure that our
markets, I also believe we can
ond term. And I would explore
ExTm Bank and the Overseas
reduce structural barriers to
the possibility of a connection
Private Investment Corpora-
competition in North America,
between NAFTA and the
tion (OPIC) work with teams
Western Europe, Japan, and
ASEAN FTA, or AFTA. It will
of our ambassadors to develop
elsewhere. Competition will
not take long for other coun-
trade and investment opportu-
encourage entrepreneurial
tries to begin to express their
nities for U.S. firms. We've al-
capitalism - at the expense of
interest in new trade and busi-
ready begun this with the six
entrenched interests -
ness ties with us. For example,
ASEAN countries - and it's
spurring even greater global
leaders in Australia and Korea
working. I will particularly
growth.
have already spoken of their
stress helping America's small
interest in forging closer eco-
businesspeople to develop
More specifically, I will
nomic ties.
trading opportunities. These
need to secure from the
companies look small - but
Congress additional trade ne-
Some see new threats, oth-
they trade big. I know. I start-
gotiating authority within the
ers see old enemies. I see new
ed my own. And I have visited
first half of 1993. To overcome
markets, new opportunities,
small factories all across the
the special interests and the
new jobs.
United States that first sur-
protectionists, I will need a
vived and then prospered by
mandate from the American
As we develop this eco-
taking on the foreign competi-
people If America is going to
nomic and trading network for
tion. I know Americans can do
be an export and economic su-
the 21st Century, I will fight
it.
perpower, the U.S. President
hard to promote American
must take a strong stand on
trading interests. For exam-
the negotiation of trade and
ple, I am committed to a siz-
VI.
economic agreements. The
able Export Enhancement
Congress will read vacillation
Preparing Our
Program [EEP] to ensure that
and equivocation as weakness,
our farmers can go head-to-
Children for the
and the national interest will
head with the European
21st Century
lose out to the logrolling trade-
Community's subsidized agri-
Economy
offs of Congressional business
cultural exports. We know
as usual. That's one very big
from our experience with mili-
In the 21st Century our
issue at stake in this election.
tary security that the key to
greatest national resource will
economic security must be
be our people. Materials, ma-
With new negotiating au-
based on "Peace Through
chines, and methods will come
thority, I will pursue new
Strength" - not unilateral
and go, but the American
trading and economic opportu-
disarmament. That's why I re-
worker will remain the key to
nities in Latin America under
cently announced the largest
our economic security. Since
my Enterprise for the
quantity of wheat ever avail-
the workplace of the 21st
Americas Initiative, starting
able under our EEP program
Century will be constantly
with Chile. I would also like to
- almost 30 million metric
changing, we need to prepare
work towards FTAs with
tons to 28 customers.
the American people to adapt
Poland, Hungary, and Czecho-
to and direct the process of
11
change. Therefore, our kids
tion Assistance program (WIC)
must arrive at school ready to
has grown 258% between 1980
grow, and they need schools
and 1992; my request for an
Materials, machines,
where they will learn how to
additional $240 million for
and methods will come
keep learning all their lives.
1993 brings the annual cost to
$2.8 billion.
and go, but the
Our New American
American worker will
Schools will help prepare our
I have also increased fund-
children to become the con-
ing for the Head Start pro-
remain the key to our
tributing citizens of tomorrow.
gram by 127% - for a total of
Equally important, we want to
$2.8 billion in 1993. That in-
economic security. Since
enhance children's sense of
cludes an additional $600 mil-
the workplace of the
self-worth, their confidence,
lion increase for next year -
their sense of participation in
an unprecedented 27% annual
21st Century will be
a larger community and soci-
jump - so that a year of Head
constantly changing, we
ety. This is the conservative
Start will be available for
philosophy of empowerment,
every eligible four-year old
need to prepare the
helping people to help them-
whose parents want to partici-
American people to
selves.
pate. (Under my budget, al-
most 800,000 children will re-
adapt to and direct the
I want to do my best to
ceive a year of Head Start be-
process of change.
help all children come into the
fore entering elementary
world as truly "created equal."
school.)
Therefore, our kids must
That's why I am more than
arrive at school ready to
doubling funding for a Healthy
Child immunizations are
Start initiative that targets
also vital to safeguard our
grow, and they need
communities with high infant
kids' health. Every year since
mortality rates. We are also
schools where they will
1981-82, 95% or more of the
increasing prenatal care, nu-
children entering elementary
learn how to keep
trition services, and substance
school have been immunized
abuse treatment for pregnant
learning all their lives."
against the vaccine-pre-
women. And I want everyone
ventable diseases. Now we are
to spread the word that every
focusing greater attention on
parent must share the gift of
preschool children. My 1993
good health with their chil-
budget calls for an 18% in-
dren.
crease in child immunization
grants.
We need to focus especial-
ly on the preschool years, so
I want the United States
that children coming to school
to offer opportunity and en-
are healthy and curious.
courage excellence; we must be
Funding for the Women,
fully capable of competing in a
Infants and Children Nutri-
global economy. Therefore, it
12
is imperative that our educa-
meet world-class standards.
school choice off the adminis-
tional system prepare and
We are moving ahead with the
trator's desk and put it back
point the way for our children.
development of these stan-
on the kitchen table. Choice is
As in the past, education
dards in math, science,
critical to the success of the
should be the ladder that the
English, history, geography,
whole, integrated overhaul of
child of modest means can
arts, and civics.
our educational system.
climb to better him or her self.
Competition, the underlying
Second, we need voluntary
principle for this radical re-
Our current school system
national achievement tests to
form, will not work unless we
is falling short of these needs
measure the progress of our
give consumers the ability to
- and the poor are hurt most.
students. That way we can
choose.
Only 19 out of 66 public high
compare the performance of
schools in Chicago graduate
different schools in helping
Wealthy families already
more than half their students,
our children achieve the na-
have this choice for their chil-
and many of these graduates
tional standards.
dren. Many of the people that
can barely read or write.
you saw at the Democratic
Third, we need to give
National Convention have this
Our educational establish-
schools the flexibility to be-
choice for their children. Why
ment is caught in a sort of
come educational entrepre
shouldn't you have this choice
time warp, a system created
neurs - to figure out the best
for your children?
for another age when the
ways to motivate our children,
needs were not the same, chil-
use technology, include par-
Chicago's public school
dren grew up differently, and
ents, and involve new types of
teachers - 46% of them -
adults rarely changed jobs.
teachers. We will create
send their kids to private
"Education Enterprise Zones.
schools. But my opponent and
Money alone is not the an-
There is no particular reason
his special interest supporters
swer - the United States al-
why schools have to end at
don't think you should have
ready spends more per pupil
3 p.m. so that students can sit
the same choice unless you are
than any other country but
in front of the TV for five
privileged enough to afford it.
Switzerland. And funding for
hours a day. We need to free
the Education Department has
school administrators and
One of the greatest educa-
increased 41% over my term.
teachers from rules, regula-
tional innovations in this
tions, and reports that have
country was the passage of the
The answer is a radical
become a poor substitute for
GI Bill after World War II. No
overhaul of our educational
student achievement; we can
one told my generation that a
system. If we want to change
do away with red tape once we
vet couldn't go to Notre Dame
our country, we've got to
institute a new testing system
or Brigham Young or Baylor or
change our schools. That's
that evaluates schools not on
Howard or Yeshiva.
what my America 2000 pro-
the basis of how many forms
gram is all about.
they complete, but of how
So I want a "GI Bill for
many minds they prepare.
Children" to help give lower
Our kids can't beat world
and middle income families
class competition if they can't
Finally, we must take
the means to select any school:
13
public, private, or religious. I
tablishment and special inter-
also want scholarships avail-
ests that want to resist this
able to be spent on after-
revolution. A new system of
"Wealthy families
school, Saturday and summer
education in this country is
already have this choice
academic programs.
probably the most important
ingredient over time in mak-
for their children. Many
For those who argue that
ing America the winning eco-
my approach will weaken the
of the people that you
nomic and export superpower
public school system, I would
in the post-Cold War era.
saw at the Democratic
remind them that the first GI
Bill was a tremendous boon for
National Convention
This must not only be my
public universities. Or listen
agenda, but yours, too. I will
have this choice for their
to Starr Parker, a small busi-
fight to give parents in
ness owner actively promoting
America the right to choose
children. Why shouldn't
choice in the Black communi-
the school their children will
you have this choice for
ty, who put it this way: "The
attend, but you need to help,
rich have choice now. When I
too. After you check out of
your children?"
was on welfare, there was no
work, check into your child's
way I could put my child in
homework. Talk to your child's
school. It's time we stop con-
teacher. Join your local PTA.
demning the poor to a monop-
My approach - America 2000
oly education system."
- relies on parental, business,
and community involvement
We've already made
in creating new schools that
significant progress in starting
break the mold.
this radical reform agenda.
Some 44 states, and over 1700
I put the family at the cen-
communities, have already
ter of our society. Government
adopted my new national edu-
must try to help families -
cation strategy - America
not replace them. When it
2000. Indeed, this progress of-
comes to choices for our chil-
fers a good example of my
dren, parents really do know
commitment to pursue my
best. We should increase the
agenda whether or not
range of choices available to
Congress dawdles. If Congress
parents, and Government as-
balks, I will work with gover-
sistance should be targeted to
nors, state legislators, commu-
those families most in need.
nity officials, and the private
sector.
The other side may talk
about similar problems, but
I hope the new Congress
they are approaching them
will not remain an apple pol-
with a fundamentally different
isher for the educational es-
ideology. You can see the con-
14
trast not only in education,
business in Texas. I also call it
the competitive edge of
but in health care, or in the
common sense.
American business:
debate that took place over my
child care proposal, which we
You allow people to keep
strengthen small business;
fought for and managed to
most of what they produce,
enact into law. The opposition
and they will produce more
prefers uniformity to variety
than they can use, the rest
support civilian R&D
and choice. Because they place
being capital. You invite peo-
linked to a research exten-
a higher value on "leveling" so-
ple to risk failure by allowing
sion network; and
ciety, they will tend to rely on
them to keep the rewards of
Government bureaucracies to
success, and they will keep
reform our costly legal
offer "standard service." My
trying until they succeed.
system.
approach to education, child
care, health care, and other
A.
When capital is taxed
topics is to rely on a diverse
lightly, it becomes abundant.
Strengthen
Small Business
private sector to supply the
When it is taxed heavily, as it
service and to empower fami-
is now, it becomes scarce,
Small business is the
lies to make their own choices.
available only to those at the
backbone of a growing econo-
I don't want to pull everyone
top, who need it least of all.
my. Small businesses create
down to make them equal. I
That's not what I want. Even
two thirds of our new jobs;
want to give everyone the tools
Jesse Jackson put it this way:
they account for 39% of our
to climb as high as they can
"Subtract capital from capital-
GNP.
dream.
ism and all that's left is the
'ism'." If capital were abun-
I am seeking to aid small
dant, labor would become
businesses by reducing costly
VII.
scarcer. And the unemploy-
tax and regulatory burdens,
Sharpening
ment lines would shrink.
increasing access to credit,
Business'
That's what I want.
and removing barriers to com-
Competitive
petition.
So I want to cut the capital
Edge:
gains tax and index it for
I have taken steps de-
Encouraging
inflation. I want to create en-
signed specifically to ease the
Entrepreneurial
terprise zones in inner city
tax burden on small business-
and rural areas. I want to
Capitalism
es. For example, the IRS has
make the R&D tax credit per-
proposed regulations to allow
manent. I want to provide an
small businesses to deposit
Our ultimate success as an
additional first-year deprecia-
payroll taxes on a monthly
economic superpower is depen-
tion allowance for purchases of
basis. And it has released a
dent on encouraging the entre-
property.
ruling allowing over 16 million
preneurial spirit of our private
sole proprietors to deduct tax
businesses. I call it entrepre-
Those are fundamentals.
preparation fees as a business
neurial capitalism, and I saw
In addition, there are three
expense rather than as a limit-
it work when I started a small
other ways we need to sharpen
ed itemized deduction.
15
I want to build on these
billion in general business
actions. For example, we are
loan guarantees through SBA
working on a Single Wage
in 1992 - an increase of more
"I
am seeking to aid
Reporting System that would
than 50% above 1991.
small businesses by
permit businesses to report
state and federal wage infor-
SBA's New England
reducing costly tax and
mation through a single enti-
Lending and Recovery Project
regulatory burdens,
ty, thereby consolidating tax
is a pilot effort that extends
reporting requirements and
credit to viable small firms
increasing access to
reducing the burden.
when access is limited because
credit, and removing
banks are having difficulty. If
In coming weeks I will talk
it works well and is needed,
barriers to
more about ways we can en-
I'll expand the project to other
courage small businesspeople
regions. We also have worked
competition."
and the jobs they create.
with bank regulators to base
real estate values on income
On the regulatory front, I
earning potential rather than
have extended for one year the
liquidation value. We have
freeze on paperwork and un-
taken steps to restructure the
necessary federal regulation
small business investment
that I imposed last winter; the
program, the only venture cap-
federal regulatory weight hits
ital program in the Govern-
small businesses particularly
ment. And we are developing
hard. I have also instructed
ways to offer special financing
federal agencies to look for
to exporting entrepreneurs.
ways to modify existing regu-
lations that impose a special
Through its procurement
economic burden on small
assistance program, SBA
business. For example, to in-
helped small businesses se-
crease access to capital for
cure federal contracts worth
small businesses, the SEC has
over $35 billion in FY 90 -
announced proposals to reduce
almost 20% of all prime con-
and in some cases eliminate
tracts let during that year.
the public disclosure require-
ment for small companies is-
To ensure that small busi-
suing stock.
nesses can help their commu-
nities overcome disasters, we
Since small businesses are
will be pressing forward with
particularly vulnerable when
approximately $1.7 billion in
credit is tight, we have to help
low-interest loans to small
them as our financial system
businesses in Florida,
is restructuring. That's why
Louisiana, California, and
we have authorized over $6
elsewhere.
16
Finally, we need to help
Americans invented VCR tech-
a High Performance
small business by removing
nology and the FAX machine,
Computing and Communi-
burdens to competition. My
we did not capitalize on their
cations Initiative that will
health care reforms would re-
explosive popularity. Third, we
enable the development of
duce costs for small businesses
need to rely increasingly on
a thousand-fold increase in
without costly Government
flexible, agile manufacturing,
computing capability by
mandates or higher taxes.
rather than old style mass pro-
1996 and a one hundred-
Enactment of my legislation to
duction. We should have the
fold increase in communi-
establish uniform federal law
capability to make a variety of
cations speed.
on product liability would re-
products quickly and economi-
lieve a major competitive
cally - a process character-
an initiative to improve
handicap that is keeping new
ized by short product cycles,
the manufacturing and
products from the market,
but also high quality output.
performance of materials
boosting insurance costs sky
- improvements that will
high, and killing jobs.
Taken together, these de-
enable advances in a wide
velopments emphasize decen-
B.
range of other technolo-
tralization - an approach ex-
Support Civilian R&D
gies.
actly opposite to my oppo-
nent's "national industrial
To be the world's economic
policies" led by Government
an expanded program in
leader tomorrow, we clearly
bureaucrats. We need to get
biotechnology research
have to invest in R&D and
technology development, pro-
with applications in
new technologies today. Given
duction, and marketing closer
health, agriculture, and
the pace of change, we have to
to the consumer, not further
environmental protection.
both come up with new inven-
away. Moreover, my oppo-
tions and organize ourselves to
nent's call for a cut in support
the establishment of the
deploy new technology without
for university-based research
U.S. Advanced Battery
delay.
will hurt the development of
consortium, a jointly-fund-
cutting edge technology.
ed four-year effort to de-
The changes in industrial
velop an advanced battery
organization that I described
My agenda will increase
for an emissions-free
earlier have three major impli-
funding for basic research and
electric car.
cations for technology develop-
complement that work with a
ment. First, the more rapid
focus on applied research and
product development cycle
development. Despite cuts by
a significant increase in
places a premium on bringing
Congress, we have managed to
our aeronautics research
an idea quickly from the lab to
increase funding for basic re-
budget, underscoring the
the marketplace. Second, we
search by 26% since 1989 - to
importance we place on
need to put new technologies
a record level. We are support-
the U.S. aeronautics in-
to work in all applications in
ing applied R&D through a
dustry in an increasingly
order to reap the full competi-
series of new, high pay-off
competitive global market
tive and economic benefits
investments in critical
place.
from our R&D. While
technologies:
17
the establishment of seven
C.
regional manufacturing
Reform Our
technology centers for the
Legal System
"America has
distribution of modern
suffered a civil litigation
manufacturing tools, such
Our competitive edge will
as computer-aided design,
be dulled if businesses are con-
explosion. Over the past
numerically-controlled ma-
tinually handicapped by a
30 years, federal
chines, and robotics.
legal system that serves
lawyers but frightens people.
lawsuits have almost
These efforts to develop
Therefore, another component
tripled. Instead of being
and apply new technologies
of my agenda is a reform of the
need to be complemented by
American civil justice system.
fast, fair, and affordable,
the identification and removal
our civil justice system is
of barriers to the private sec-
America has suffered a
tor's ability to bring new prod-
civil litigation explosion. Over
slow, expensive, and
ucts and services to the mar-
the past 30 years, federal law-
ket. That's why my regulatory
suits have almost tripled.
putting us at a global
reform efforts - including a
Instead of being fast, fair, and
disadvantage."
process that subjects regula-
affordable, our civil justice
tions to a competitiveness
system is slow, expensive, and
analysis while still protecting
putting us at a global disad-
health and safety, and a pro-
vantage.
posal to "sunset" regulations
- are critical to supporting
Long delays in dispute res-
our enhanced technology
olution waste valuable judicial
development.
resources, force early settle-
ment by those who cannot af-
Just take one example: my
ford to wait, discourage those
opponent has proposed a
who have meritorious suits,
major new Federal Govern-
and encourage frivolous suits
ment investment in the field of
by those who hope to leverage
national telecommunications
unjust settlements. High puni-
networks at the exact time
tive damage awards are
that our private sector is seek-
passed on to consumers
ing to develop such a network
through higher prices, job
on its own, but has been
cuts, higher insurance, and
stopped from doing so by fed-
fewer new products.
eral regulations.
According to a soon-to-be
released study by the National
Association of Manufacturers,
Americans spend up to $200
billion a year just on direct
18
costs to lawyers. That does not
nation's civil justice system
our competition. To be able to
even count lawyers on payrolls
through: alternatives to feder-
contribute and concentrate,
or the money spent on court
al civil trials such as alterna-
working men and women will
settlements.
tive dispute resolution; incen-
want to know that they can
tives for pre-litigation settle-
enjoy economic opportunity
Our legal system is killing
ment, including pre-complaint
and security. We can only
our international competitive-
notification; and a "loser pays"
achieve true security by devel-
ness. Other nations do not face
rule requiring the loser to pay
oping people's capability, not
high domestic litigation costs.
the winner's legal fees in suits
dependency. And we can best
Foreign companies only need
involving federal diversity
supply security through the
6% of the product liability in-
jurisdiction.
private sector, not Govern-
surance our firms must carry
ment bureaucracies.
because we do not have uni-
We also need to continue
form state standards for prod-
our work with the states to en-
It will be Government's
uct liability and punitive
courage fundamental change
role to expedite workers' ad-
damages.
at the state and local level.
justments in a fast-changing
marketplace, provide people
The litigation explosion af-
Lawyers, especially trial
the means to work and take
fects everyone. High liability
lawyers, are a powerful vested
care of their families, and arm
costs have closed playgrounds
interest in our society. They
people to face the future by
and pools, forcing kids on to
are well represented in
empowering them to make
the street with nothing to do.
Congress and high on the lists
their own choices. In particu-
Some companies are afraid to
of political contributors. My
lar, we can enable families to
offer products at home that
opponent knows them very
focus on building a future by
are available overseas because
well. But this is a problem too
alleviating their fears about
they fear the liability.
important to leave to the
one of the single biggest costs
lawyers and their friends in
and problems that can knock
My product liability re-
high places. We must sue each
them back: health care. And
form legislation confronts the
other less and care for each
we can help foster retirement
trial lawyers head on. I want
other more.
security through encouraging
to stop wide variation among
portable pension savings.
states' product liability rules;
stop important products from
VIII.
A.
being kept off the market; stop
Promoting
Job Training
excessive litigation costs with
more money going to lawyers
Economic
Given the rapidity of
than to injured consumers; cut
Security for
change in the international
excessive insurance rates; and
Working People
and domestic marketplace, we
end excessive consumer costs.
have to prepare people for the
The American businesses
prospect of changing jobs and
My "Access to Justice Act
of the 21st Century will need
learning new skills many
of 1992" is intended to restore
workers who will bring them
times throughout the course of
fairness and efficiency to the
to life and keep them ahead of
a productive life. Therefore,
19
we need a range of job training
of adding new skills and train-
and placement services - for
ing; and (3) a tripling of the re-
"Wo means more
young people, factory workers,
sources currently devoted to
white collar employees, and
training and worker adjust-
than income to
particularly during this peri-
ment, an allocation of $10 bil-
od, defense industry workers.
lion over five years.
Americans. It is also
fundamental to
That's why one important
This proposal builds on my
portion of my recently-an-
January plan to streamline
people's self-esteem,
nounced workforce adjustment
the federal job training system
their self-confidence,
initiative is designed to shift
through "one-stop shopping" in
the Government away from
every community. Experience
and the respect of
the old narrowly defined, ex-
has demonstrated that the
others. These are
pensive, and less effective
most effective training and
trade adjustment assistance
placement services are those
attitudes, values, that
that paid people off without
closely developed with local
giving them real help to get
employers through private in-
want to encourage. /
back the work.
dustry councils. That way the
want all Americans to
training is designed to develop
Work means more than in-
be builders - for their
skills that employers know
come to Americans. It is also
they will need.
families, their
fundamental to people's self-
esteem, their self-confidence,
My expanded job training
communities, their
and the respect of others.
efforts will also be specially
country."
These are attitudes, values,
designed to help those who
that I want to encourage. I
may need to change jobs or
want all Americans to be
careers as a result of NAFTA
builders - for their families,
or other trade agreements
their communities, their coun-
and the downsizing of our de-
try. To encourage the work
fense-related industries. But
ethic, we need to make every
we will ensure that we offer
effort to match people with the
training and placement to all
jobs created by our entrepre-
workers.
neurial capitalism.
These dislocated workers
The three key features of
would be eligible to receive
my job training proposal are:
three types of assistance: (1)
(1) universal coverage, so all
transition-assistance that in-
dislocated workers will have
cludes skills assessment, coun-
access to basic transition as-
seling, job-search assistance,
sistance and training support;
and job referral; (2) training
(2) skill grant vouchers of up
assistance in the form of skill
to $3000 to help meet the costs
grants; and (3) transition
20
income support where neces-
tured, paid, work-experience
B.
sary for workers completing
program. I want student ap-
Affordable
retraining.
prentices to receive both a
Health Care for
high school diploma and a
All Americans
I've also proposed a
widely recognized certificate of
specially-targeted Youth Skills
skill competency. Students
The economic security of
Initiative.
will also have the opportunity
men and women requires a
to continue training at the
major reform of the U.S.
A new Youth Training
post-secondary level.
health care system. The pre-
Corps will provide economical-
sent system provides high
ly and socially disadvantaged
I started my Apprentice-
quality, high-tech medicine,
young people with intensive
ship Program as a demonstra-
but at an unacceptable price:
vocational training through 55
tion program in 6 states; in my
spending has increased at a
residential YTC centers na-
second term, I will expand it to
rate two to three times the
tionwide; these centers will be
all 50.
rest of the economy; thirty-
located primarily in rural
four million Americans have
areas and will seek to utilize
Finally, I will more than
no health insurance; and mil-
converted defense facilities,
double the size of the present
lions more are afraid to
putting them to good use. The
JROTC program, a very suc-
change jobs for fear of losing
YTC will draw from the mili-
cessful and popular partner-
their health insurance.
tary's high level of leadership
ship between the military and
and training expertise by giv-
schools. JROTC emphasizes
My program will build on
ing a hiring preference to indi-
self-discipline, values, citizen-
the strengths of the system -
viduals leaving our armed
ship, personal responsibility,
consumer choice, innovation,
forces. The discipline that tri-
and staying in school - it's a
and state of the art medicine
umphed in Desert Storm can
first class alternative to drugs
- while controlling costs and
win at home, too.
and gangs. My goal is to estab-
expanding access.
lish 2,900 JROTC units by
I will also complement the
1994. Initially, we will expand
I want to guarantee access
YTC with a "Treat and Train"
this program in inner-city high
to health insurance for all poor
program to strengthen exist-
schools, but I want to make
families through tax credits
ing youth drug training pro-
JROTC available to every high
(or vouchers for those who
grams.
school across the country that
don't pay taxes) sufficient to
requests it. This program is
pay for a basic health insur-
To help meet the needs of
another way in which we can
ance plan ($3,750 for a family).
young people not planning to
relate the successful experi-
Other low and middle income
go on to college, I will expand
ence of America's veterans to
families would get tax relief to
the National Youth Appren-
the next generation.
partially offset the cost of their
ticeship Program that I began
health insurance. In total,
in January. This program of-
some 95 million Americans
fers high school juniors and se-
will benefit.
niors a combination of class-
room instruction and a struc-
21
My program also includes:
Taken together, my pro-
gram would cut health care
"I
provisions that encourage
believe we can
costs by $394 billion over five
small businesses to develop
years through preventive care,
provide access to
less costly health care in-
malpractice reform, reducing
surance networks for their
defensive medicine, encourag-
affordable health care
employees by combining re-
ing enrollment in cost-effective
for all Americans, while
sources to achieve broader
health plans, arming con-
risk sharing, economies of
sumers with information
preserving choice for
scale, and purchasing
about cost and quality, and
patients and their
power;
eliminating administrative
waste and unnecessary paper-
families in selecting
"job lock" protection for em-
work.
doctors, hospitals,
ployees and their families
so that they will not lose
I believe we can provide
health care programs,
coverage if and when a per-
access to affordable health
and employment"
son changes jobs;
care for all Americans, while
preserving choice for patients
guaranteed insurability so
and their families in selecting
that people with "preexist-
doctors, hospitals, health care
ing" illnesses cannot be de-
programs, and employment.
nied a job or health cover-
My approach, in contrast with
age on the job;
my opposition, relies on the
private sector to deliver health
care services. But I would
100% tax deductibility of
make the market work for us
health care premiums paid
by the self-employed, as
by enhancing competition,
which will cut costs. My mal-
compared to the present
25% deductibility;
practice reforms would cut
costs further by removing the
fear of lawsuits that leads to
malpractice reforms that
wasteful procedures.
will reduce the number of
unnecessary procedures
I firmly believe that a
performed on patients and
move to national health insur-
thereby reduce the cost of
ance, as some of my opponents
medical care; and
want, would be a major, irre-
trievable mistake. That course
reforms to encourage wide-
would turn over the health
spread use of electronic
care sector - a full 13% of our
billing to save an estimated
economy - to the Govern-
$11 billion a year in paper
ment. The result would be
costs.
more bureaucracy, rationed
22
care, inefficiency, and, in the
sign a law this summer that
better life for themselves and
end, even higher costs.
incorporated my portability
their children. It's this spirit,
proposal. The new law en-
the commitment to the
My opponent's "play or
hances retirement security by
American Dream, that has
pay" approach winds up in the
permitting workers to transfer
made our country and our 80-
same place as nationalized,
accrued pension benefits di-
ciety the most dynamic in the
bureaucratic health insurance
rectly to an IRA or to their
world.
- but through a different
new employer's pension plan.
route. And it is likely to kill a
If we are going to use that
lot of jobs along the way, espe-
Despite this improvement,
energy to drive us forward into
cially in small businesses.
I believe we must continue to
the 21st Century, we will need
Increasing the costs of labor -
look for ways to make it easier
to tap the aspirations of each
the "play" in his approach -
for workers who change jobs to
and every one of our citizens.
will lead businesses to hire
take pensions with them. We
No one should be left behind
fewer workers. Offering the al-
need to eliminate incentives to
for want of opportunity.
ternative of Government-
"cash out" benefits and in-
Many of the programs that
sponsored health care paid for
crease incentives to save for
I have discussed above -
with new taxes on payrolls -
the future.
health care for all Americans,
the "pay" - will dump the
child care, job training, pen-
problem in the lap of a
Job training, afford-
sion portability, a new compet-
Government bureaucracy with
able health care, retirement
itive school system based on
the costs paid for by business-
security - when combined
community involvement and
es and workers.
with a new system of educa-
choice for all American fami-
tion and entrepreneurial, com-
C
lies - support my plan to em-
petitive business, we can offer
Pension Portability
power all Americans to make
working men and women real
their own choices and better
economic security in the 21st
I have also been concerned
their lives. But I believe we
Century.
about the ability of workers to
need to do more for certain cit-
izens who have fallen too far
preserve their retirement pen-
sions as they change jobs. This
behind.
IX.
is a growing need because of
Leaving No
My philosophy for en-
the increased likelihood that
most workers will have more
One Behind:
abling all Americans to share
than one employer over the
Economic
the American Dream is sim-
ple: it's based on property and
course of their working years.
Opportunity for
work. Our urban and welfare
Every American
programs must be designed to
I proposed an initiative
enable people to break the
last year to increase pension
For over 200 years, the
cycle of poverty, get back on
portability, expand pension
most exceptional aspect of
their feet, get back to work,
coverage, and simplify the law
American society has been the
and take responsibility for
governing pension plans. And
belief, the hope, that this is a
their own choices and their
I am pleased that I was able to
land where people can make a
own lives.
23
I disagree with the failed
Our "Weed and Seed" effort
logic of "welfare rights" and its
can help reclaim and revitalize
impoverished and embattled
"My
emphasis on entitlement. I
philosophy for
disagree with "income mainte-
communities by eliminating
enabling all Americans
nance" strategies - strategies
the fear of drugs and violence,
that merely maintain poverty
targeting coordinated human
to share the American
and contain potential.
services programs, and im-
Dream is simple: it's
proving the housing stock and
Our goal should not be
infrastructure.
based on property and
more dependence- - but rather
work. Our urban and
a new Declaration of
We also need to extend op-
Independence - to help peo-
portunity by enabling lower
welfare programs must
ple develop the human and
income families to build assets
be designed to enable
financial capital to share the
- for example, by allowing aid
American Dream. We have
recipients to accumulate high-
people to break the
taken the first step with our
er savings without losing their
cycle of poverty, get
implementation of the welfare-
eligibility.
to-work logic of the Family
back on their feet, get
Support Act of 1988. We have
And we need to expand
back to work, and take
been encouraging flexible and
homeowner opportunities for
innovative implementation
lower and middle income fami-
responsibility for their
through waivers that enable
lies. For example, HOPE
own choices and their
states to develop new pro-
grants enable more inner-city
grams to enhance parental
people to own their own
own lives."
and family responsibility and
homes. Our $5,000 tax credit
to insist on education and job
for first-time home buyers
training for those on welfare.
would help; so would permit-
Welfare policies won't work
ting voucher recipients to
unless people do.
apply their rental subsidies to-
ward the purchase of a home.
In our inner cities, we
need to restore hope by clear-
We can enhance the
ing away the handicap of
choice, quality, and avail-
crime, building a core of prop-
ability of housing through af-
erty owners, creating business
fordable rent subsidies in the
incentives, restoring infra-
form of housing vouchers, and
structure, and focusing our
through our "Perestroika in
programs on work and
Public Housing" program that
discipline.
widens opportunities for pub-
lic housing tenants to change
Enterprise zones can cre-
the management of troubled
ate solid economic foundations
projects.
in distressed communities.
24
This property and work-
X.
what our nation produced.
based approach need not be
That compares with 17.6% in
more expensive than the tradi-
"Rightsizing"
1965, 19.9% in 1970, 22.0% in
tional welfare bureaucracy.
Government
1975, and 22.3% in 1980. So
For example, over the past 12
not only has Government
years, federal spending for low
My blueprint envisages an
grown as the economy has
income assistance doubled
important Government role to
grown, but Government is tak-
even after inflation - from
make a secure and strong
ing a bigger share. The
$9.1 billion in 1980 to $18.3
America. But it is also impor-
American people are not taxed
billion this year (both in 1992
tant that Government not
too little. The American
dollars). This year, HUD is
siphon off more private re-
Government spends too much.
providing housing assistance
sources than are absolutely
to 4.6 million low-income fami-
necessary to perform the func-
In my acceptance speech I
lies, up from 3.1 million in
tions that will help us win the
noted some of the efforts I will
1980. I have tried to rechannel
economic competition. Because
make to hold down spending. I
some of this funding to vouch-
an overweight Government -
have proposed capping the
ers because they are more
serving itself seconds rather
growth of mandatory spend-
cost effective than con-
than serving the people first -
ing, other than social security.
structing new public housing
will weigh us down in the race
That would still permit spend-
units. Furthermore, families
of a new era.
ing at present levels plus an
wouldn't have to wait five
adjustment for inflation and
years for the units to be built,
Much of my agenda can be
population growth. Yet this
and the vouchers give families
accomplished simply by redi-
cap would save $294 billion
more choice.
recting current funding away
over five years.
from bureaucracies and to-
For too long, Congress has
wards people. My agenda em-
To start to implement this
stubbornly refused to discard
powers people with the means
cap, I have proposed over $72
failed programs that perpetu-
to work, own property, build
billion in specific spending
ate welfare dependency. No
capital, raise families, and be
cuts for "mandatory" programs
doubt, many of these programs
effective contributors within
(FY93-97). If you add these
were well intentioned. But
our private market economy.
proposed cuts to others I have
now we know better. Give us a
Some of my ideas - legal and
previously called for but which
chance to try a different ap-
health care reforms, for
Congress has not yet enacted,
proach that will empower peo-
example - should even help
my specific cuts would total
ple to help themselves, to
us save money.
about $132 billion over five
build some capital for their
years. I have also proposed
families, to make choices that
Contrary to the assertions
the outright elimination of
develop self-respect and disci-
of some politicians and special
246 specific discretionary
pline. That's the real way to
interest groups, spending as a
programs.
offer economic opportunity for
percentage of the nation's
every American, to leave no
GDP has been going up, not
By way of comparison, my
one behind.
down. In 1991, the Federal
opponent has specifically pro-
Government spent 23.5% of
posed less than $5 billion in
25
cuts in mandatory programs.
I also believe taxpayers
And he has singled out only
should have the right to direct
Government should
one program for elimination -
10% of their tax payments to
the honeybee subsidy pro-
reduce debt and spending
be subject to the
gram, which his running mate
through a "check-off" on their
voted four times to retain.
tax forms. If all taxpayers took
discipline of a balanced
the full 10%, the cut would be
budget amendment.
Furthermore, I proposed
about $50 billion. That's only
freezing all other spending,
3% of the Federal budget of
State governments
and I will enforce this freeze
about $1.5 trillion. Since feder-
operate that way.
by vetoing any bill Congress
al spending has been growing
sends me that spends more
at a rate of about 8% per year,
Businesses operate that
than I asked for in my budget.
even this proposed cut would
way. Families operate
still enable spending to grow;
I've asked Congress for the
it would just grow more
that way. And given the
line item veto, a disciplinary
slowly.
breakdown of
tool used effectively by the
governors of 43 states. This
Some editorialists dismiss
Congressional discipline,
veto authority is important not
my checkoff proposal, but the
we need an
only to help cut, but to in-
American people seem to like
crease a President's leverage
it, and I think I know why. My
amendment to ensure
with a Congress that seeks to
proposal traces its roots to an
tax more and spend more.
American tradition. At the
that the Federal
turn of this century, many
Government operates
Government should be
people were concerned that
subject to the discipline of a
the Government establish-
that way, too."
balanced budget amendment.
ment was slipping away from
State governments operate
the people it was supposed to
that way. Businesses operate
serve. This movement led to
that way. Families operate
such venerable "gimmicks" as
that way. And given the
referenda, the right of recall,
breakdown of Congressional
and the direct election of U.S.
discipline, we need an amend-
Senators. The idea of term
ment to ensure that the
limits for Senators and
Federal Government operates
Congressmen, which I fully
that way, too. If we had had
support, is another reform of
such an amendment years ago,
this type. At the time each was
we wouldn't be paying almost
proposed, the conventional
$200 billion dollars a year now
thinkers chuckled at the
on interest for the debt left us
changes. The same is true
by earlier Congresses.
today. Given the complete
breakdown in spending disci-
pline in Congress, it's time
26
that we insist on compensat-
ers. Finally, I believe we can
my agenda.
ing reforms that give the peo-
restructure and reduce the
ple a bigger say in the direc-
size of the Executive Branch
I also am committed to re-
tion of Federal Government
through a consolidation of
ducing the tax burden on the
spending. I say it's time to give
agencies and bureaus that will
American people. I have said
the people the power to cut the
enable us to do our job better.
that I will propose to further
deficit
Why should the Federal
reduce taxes across-the-board,
Government be the only large
provided we pay for those cuts
The size and structure of
organization in America that
with specific spending reduc-
the Government also needs to
continually adds size and of-
tions that I consider appropri-
be slimmed down and
fices, and never gets rid of
ate, so that we do not increase
changed. The organization of
anything? Therefore, I will
the deficit.
the Federal Government
submit a streamlined reorga-
reflects ways of doing business
nization plan for the Executive
To illustrate the kinds of
that are now 30 to 50 years
Branch to the new Congress -
tax cuts we could achieve if we
old. Companies all across
and I hope they take the hint,
discipline spending: just con-
America have been restructur-
too.
sider what we could do if
ing, cutting costs, becoming
Congress acted on the $132
more efficient - preparing to
Let me give you an exam-
billion in specific spending re-
be more competitive in a fast-
ple. In many respects, the
ductions that I have already
changing marketplace. I be-
Arms Control and Disarma-
proposed. These savings alone
lieve the Federal Government
ment Agency, or ACDA, is a
could finance an across-the-
can and should do the same
creature of the Cold War. It
board rate cut of 1 percent, a
thing. I believe a streamlining
needs to adapt to the times. Its
reduction of the small busi-
of the Federal Government
highly trained scientists and
ness tax rate from 15% to 10%,
should include three elements:
engineers are a valuable re-
an increase in small business
source. Some of them can sup-
expensing of investment in
First, I will cut the operat-
port our efforts to stem and re-
equipment, and a reduction of
ing budget of the Executive
verse the proliferation of
the capital gains tax.
Office of the President by 33%
weapons of mass destruction.
if Congress agrees to subject
But others may be well suited
In sum, my direction is
its operations to a cut of the
to work at weapons destruc-
clear - I want to spend less
same size. With fewer
tion and defense conversion -
and tax less. My opponent
Congressional staffers badger-
transforming the genius of
wants to spend more and tax
ing the Executive Branch, I
modern day swords into 21st
more.
know we can cut costs by that
Century plowshares.
amount. Second, I believe all
I believe the Federal
federal employees earning
Multiply this idea by a
Government can reallocate its
above $75,000 a year should
hundred, or even a thousand,
almost $1.5 trillion in spend-
be subject to a 5% pay cut;
others. We can get rid of some
ing more effectively if we im-
other Americans have tight-
tasks, conduct others more
plement my agenda. The re-
ened their belts, and so should
efficiently, and add new ones
ductions in defense spending
the better-paid federal work-
where appropriate to support
that we have already begun
27
will provide some of these
members - all 150 or more -
funds, and I don't want them
before they are besieged by the
"Between the
wasted in a torrent of new
special interests and perma-
spending programs designed
nent staffs.
election and the
by a horde of special interests.
I also believe we need to
convening of a new
I honestly believe that this
take another step to ensure
Congress, / will lay out
is the only way to get the size
that the new Congress does
and spending of Government
not become like the old one.
an implementation plan
under control. I know that se-
The root of the present prob-
for my agenda. / intend
rious-minded people believe
lem is political contributions
we need to increase revenues
from organized special inter-
to be ready to present
to close the deficit. But it won't
ests through political action
the new Congress a
work. I have seen too many
committees, or PACS. In the
times that efforts to close the
run up to the 1980 elections,
first-year plan to carry
deficit by increasing taxes
PACs raised and contributed
out the legislative
have only turned out to give
$55 million to political candi-
Congress a license to spend
dates. In the same time period
proposals described in
more money. There's a reason
before the '90 elections, PACs
for this. Spending is power for
spent about $160 million. The
this agenda."
Congressmen. That's how they
other party doesn't want to do
show influence, and placate
anything about it, because
their friends, the interest
they are the biggest recipients.
groups. If you give Congress-
I want to put them to the test.
men more tax money, they will
I want a new Congress to stay
spend it.
clean. So an important part of
my new legislative agenda will
be a simple bill to abolish
XI.
PACs subsidized by corpora-
A Strategy for
tions, unions, and trade
Implementation
associations.
This year is an important
I am committed to making
turning point for the United
my program work with Con-
States. We are entering a new
gress. Between the election
era, and for the first time in
and the convening of a new
many years, it appears that
Congress, I will lay out an im-
Congress will have 150 new
plementation plan for my
faces for the President to work
agenda. I intend to be ready to
with. That's why I'm asking
present the new Congress a
for a mandate for my program.
first-year plan to carry out the
That's why I have promised
legislative proposals described
that I will meet with all new
in this agenda:
28
A radical overhaul of
structure, ensure functions
implement my educational re-
American education to em-
fit new needs, and cut
forms while Congress has
phasize excellence, stan-
salaries at higher levels
stalled. We can get a great
dards, competition, entre-
deal done at the state and
preneurial schools, and a
local levels.
Reform of our legal system
"G.I. Bill for Kids" that
will give parents a choice
I will work with governors,
of schools
A package to clear away
state legislatures, local gov-
crime, build business, and
ernments, and the private sec-
put people to work in our
My job training programs
tor to pursue my agenda.
inner cities
While I want a Congress that
can help me do the job, I'm
My health care reforms
An expansion of Civilian
committed to getting the job
R&D linked to new appli-
done one way or the other.
A package to cut spending,
cations
including a cap on the
growth of mandatory
Ban on PAC contributions
spending, a taxpayers'
"checkoff" to reduce the
debt, a line-item veto, and
Limits on Congressional
a balanced budget amend-
terms
ment
Now I know I may not be
Tax cuts paid for through
able to get everything I want
spending reductions and
in the exact way I want it. But
growth, including reduc-
your support for a mandate to
tions to spur entrepre-
get it done would give me mo-
neurial capitalism and
mentum. I intend to fight for
small business
this agenda, fight as hard as I
can to get as much as I can,
and then come back again to
NAFTA
get more.
New trade negotiating au-
If Congress hesitates on
thority so we can conclude
some fronts, I intend to keep
new Free Trade Agree-
moving forward. You have
ments across the Atlantic,
seen that we can implement
the Pacific, and in our own
back-to-work welfare reform
hemisphere
by granting waivers that en-
able the states to do the job
more effectively. Similarly, 44
A Government reorganiza-
states and more than 1700
tion plan to streamline the
communities have started to
29
This is my Agenda for
through the private sector. I
American Renewal. With the
believe people should sue each
"With
the end of the
end of the long Cold War, we
other less and care for each
can target peace, prosperity,
other more. I want Govern-
long Cold War, we can
and promise at home. The
ment to spend less and tax
American people want that.
less. I will fight without hesi-
target peace, prosperity,
The American people deserve
tation for a free and fair flow
and promise at home.
that.
of trade, capital, and ideas
around the world. I believe
The American people
At the same time, Ameri-
America should compete, not
want that. The
cans recognize that the great
retreat.
events of recent years have
American people
shaken the world, and it will
I know times have been
deserve that"
never be the same. If we are to
difficult for too many
succeed as a nation and as a
Americans. I have sought to
people, if we are to hold true to
explain the causes of these
all that has made America the
problems and what I will do
EARTH,
last, best hope of man on
about them. Of course you will
earth, then our renewal at
have change. The question is
home must at the same time
what kind of change. You face
enable us to make the 21st
a serious choice. And I ask,
Century another American
when you step into that voting
Century.
booth, please consider careful-
ly which candidate's agenda
My Agenda draws together
for change fits best with your
our people and our Govern-
beliefs, America's experience,
ment to take on this challenge.
and our hopes for lasting
We will create a $10 trillion
peace and prosperity.
economy. We will renew
America. We will win the
peace.
My approach to this chal-
lenge is fundamentally differ-
ent from my opponent's. I
want to stimulate entrepre-
neurial capitalism. I want to
help people by enabling them
to make their own decisions
about health, education, job
training, and child care from a
variety of competing alterna-
tives. I want to supply services
BUSH
***
QUAYLE
92
1030 15th Street, NW
Washington, DC 20005
Paid for by Bush-Quayle '92 General Committee, Inc.
September 10, 1992
MEMORANDUM FOR ROBERT ZOELLICK
TORIE CLARKE
FROM:
JENNIFER GROSSMAN
CAROL AARHUS
SUBJECT:
CHICAGO PUBLIC SCHOOL TEACHERS INFORMATION
AGENDA FOR AMERICAN RENEWAL
Regarding the fact that appears in the Agenda for an
American Renewal ((46% of public school teachers in Chicago send
their kids to private schools) ) : It was fact-checked. Here are
our sources:
O
Heritage Foundation Report March 21, 1990 (enclosed).
The report in turn cites a 1988 Harris poll.
O
An American Enterprise Institute Report by Dennis Doyle
[formerly a Department of Education employee, now a
senior fellow at the Hudson Institute]. His report was
called "Where Public School Teachers Send their
Children to School: A Preliminary Analysis." His
information came from a 1986 census study.
O
A Wall Street Journal editorial. 6/26/92
O
A Washington Times editorial by Don Lambro. 7/6/92
John Fund, WSJ, 212-416-2000
Dennis Doyle, formerly AEI and DoEd, 301-986-9350 (o)
301-986-0093 (h)
Study -- "Where Public School Teachers Send Their Children
to School: A Preliminary Analysis", study done in
Spring of 1986, based on a 1986 census study. Research
for report was done on a multi-city level. Doyle's
source: John McKnight, professor at Northwestern
University, who gave him the information from a
magazine called the Chicago Reporter. This was
considered a very reputable source and no one has ever
challenged the numbers.