Ask the Scholar

Document scope · 1 page
doc
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory. For page-specific OCR and visual context, open one of the page chats.

Scholar Source Context

Document identity
localId
415892620
label
[Domestic Political, 1989-1991]
core
doc
dtoType
document
pageCount
1
Source metadata
Source extras
naId
415892620
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
2887dc49e4a38246
ocrText
Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Snow, Tony, Files Subseries: Subject File, 1988-1993 OA/ID Number: 13893 Folder ID Number: 13893-019 Folder Title: [Domestic Political, 1989-1991] Stack: Row: Section: Shelf: Position: G 18 29 2 1 Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01. Paper Re: Some Thoughts Regarding a Vice Presidential Address n.d. on Domestic Policy. (3 pp.) Collection: Record Group: Bush Presidential Records Office: Speechwriting, White House Office of Series: Snow, Robert Anthony (Tony) Subseries: Subject File Open on Expiration of PRA WHORM Cat.: (Document Follows) File Location: [Domestic Political] By CAP (NLGB) onoilsles Date Closed: 12/22/2004 OA/ID Number: 13893-019 FOIA/SYS Case #: S Appeal Case #: Re-review Case #: 2005-0485-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. Vi Harvey. culled 3/14 M.Albrecht SOME THOUGHTS REGARDING A VICE PRESIDENTIAL ADDRESS ON x6175 DOMESTIC POLICY Pundits, pols and pusillanimous Democrats all carp that a victorious George Bush remains vulnerable on the "vision thing" ie. domestic policy. They claim that after Desert Storm, Republicans will wave the bloody shirt while they will turn the nation's attention slowly to res domestica they can't wait. But among the policies tested, and proven in the Persian Gulf are several that have direct bearing on the domestic agenda, and we should neither hesitate nor wait to make the point. First, is the policy of an All Volunteer Force initiated by the Nixon administration. It's salient features are: -choice -merit based opportunity -market based compensation -strictly enforced color blindness -competitive strategy (invest/ utilize people and technology on the basis of marginal payoffs) -tough training where teachers and students are rewarded and penalized on the basis of performance on standardized measures of knowledge. They Sell us short. S Democrats have consistently criticized this approach as unfair and unsuccessful. They claimed AVF forces would be substandard. They protested that the poorest would be impressed to protect the richest. Racial tensions would undermine readiness. The forces would be mercenaries who wouldn't/couldn't fight. They preferred a draft (many are on the record) some want to nationalize our youth through a national service program that would encompass both military and civilian conscription. They prefer quotas to merit based opportunity. They reject choice in education and job opportunity. The Democrats were wrong on gulf policy and they are wrong on domestic policy. We learned alot in Desert Storm we learned that an All volunteer force works, works very well indeed and we learned that the principles that underwrite that policy work as well. THESE ARE THE SAME PRINCIPLES THAT GUIDE OUR DOMESTIC POLICY INITIATIVES -EDUCATIONAL AND VOCATIONAL CHOICE -MARKET DRIVEN INCENTIVES -EQUAL OPPORTUNITY NOT QUOTAS -INDIVIDUAL RESPONSIBILITY AND EMPOWERMENT THEY WILL WORK AS WELL FOR THE AVERAGE AMERICAN, BLACK AND WHITE, AS THEY DID FOR OUR FORCES IN THE GULF. DEMOCRATS OFFER THE DOMESTIC VERSION OF A DRAFT LACK Faith- use compulsory methods. THE DIFFERENCES BETWEEN REPUBLICANS AND DEMOCRATS ON SOCIAL POLICY This memorandum lists several ways in which the Republican approach to social policy differs from the Democratic approach. In each area, we can frame the debate so as to get the majority of voters on our side. In general, we should identify the Republican Party with what Jim Pinkerton calls "The New Paradigm," a model of thought that stresses innovation and empowerment. We should identify the Democrats with "The Old Paradigm," which emphasizes paternalistic government control. There are a number of exceptions to the picture drawn below: on any given point, there are Democrats who embrace the New Paradigm. For instance, Democratic Governor Rudy Perpich of Minnesota support school choice. By and large, however, these distinctions do mark the overall differences between us and them. 1. Market Forces. The New Deal generation grew up with the Depression and thus came to think that society's biggest problem is market failure. The post-New Deal generations grew up with the disaster of the Great Society. Although they are hardly blind fans of business -- witness Nader's popularity - they distrust big government's ability to manage the ? economy. For voters in their 30s, the failure of big government became personal and tangible with Carter's double digit inflation. (then or now? The Democrats believe in administering prices and terms of trade. Republicans believe in market forces. This does not mean retreating to laissez-faire, but instead devising market-oriented, non bureaucratic solutions to public problems. Democratic Way Republican Way Rigid command & control Market-based environmental environmental regulations policies (e.g., emissions trading) Urban renewal: gutting Enterprise zones: building neighborhoods and warehousing neighborhoods and providing the poor opportunity Protectionism Free trade Xerox Telecopier 7020 ; 7- 5-90 ; 2:26PM ; CCITT G3+ OPDT# 2. Individual options and empowerment The New Deal generation grew up worrying about economic survival. They did not have the luxury of choosing among a wide array of foods, garments, etc. The post- New Deal generations grew up expecting more than "one-size-fits-all. The Democrats believe in government monopolies, in which bureaucrats decide what goods and services to provide the people. Republicans believe in giving people a wider range of options, and in helping them get the means to exercise those options. Democratic Way Republican Way Mandatory school assignments School choice Child care bureaucracies Family and religious-based child care Traditional public housing Tenant management and ownership; housing vouchers 3. Decentralization From the 1930s to the 1960s, Washington, DC was the hometown of positive change. The state capitals were dominated by backward-thinking hacks. Today, innovations are coming from Sacramaneto and Springfield. Washington is the home office of reaction, not action. Democrats believe in running things from Washington. Republicans believe in dispersing authority to the level closest to the course of authority. Democratic Way Republican Way Centralized control of schools Control of schools by parents and localities Transportation plans micro- Encourage state and local experiments managed from Washington in toll roads and telecommuting 4. What Works: Quality, Not Quantity In 1986, Lee Atwater told a Cato Institute conference: "Bigger is not better anymore -- better is better. That's one of the things that the [1984] Hart campaign understood very clearly [T]here is a new drive for true excellence in this country that's very important." Both as consumers and voters, Americans of the 1990s are seeking value. Telecopier 7020 5-90 2:26PM 00111 UPO,# 4 Democrats emphasize input: they judge how well we do by how much we spend. Republicans emphasize outcomes, judging by the quality of results instead of the quantity of dollars. Democrats see paperwork as an end in itself. Republicans see it as an obstacle to progress. Democratic Way Republican Way Appraising education by Appraising education by performance dollars spent testing Automatic promotion of Competence testing bureaucrats Credentialism Alternative certification of teachers 5. Accountability The logical consequence of big government paternalism is that no one is accountable for his own behavior. All problems are the fault are a vague "society." The logical consequence of individual opportunity is that rewards and punishments should go to those who deserve them. Democratic Way Republican Way Drug abuse is an illness: Drug abuse is a crime: while not emphasis on treatment neglecting treatment, emphasis on user accountability Crime is society's problem: Crime is caused by criminals: rehabilitation and furloughs the answer is tough punishment, are the answer. including the death penalty. indu nerponsibility This is not censorship, this is choice. Deliberate moral choice. And people who are concerned about what Michael Novak called "the ecology of symbols and imagery in our own home" ought not to be intimidated by the ridicule of sophisticates from speaking about their concern in public ways. That goes for private citizens and public officials. BULLETIN: How would you respond to the criticism that what you have just said is not "politically correct." HORNER: No, it's not. I am not politically correct. I can react on two levels to that. One would be to say again why it is necessary to speak out. Another is to say that we are experiencing moral confusion and want of courage on a large scale that will come home to roost, that what we are seeing in our poor children and in our elites that is SO bad for our future that anyone who does not become radically politically incorrect on this subject - and soon - - will be held accountable a decade from now by their own children for the world we have created. LAST LAUGHS: 0 David Letterman: Ladies and gentiemen, you think you've got problems? Listen to this. President Reagan calls up the state of California, and he asks if he can get permission to be buried on the grounds of the Ronald Reagan Library in the Simi Valley. Now to me, boy, this is really a sign that maybe your memory is on the blink, if you think you're dead. (NBC Late Night With David Letterman, 2/22/91) o David Letterman: Top Ten Things That Will Get You Kicked Out Of the Republican Guard 10) Giggling during story time. 9) Asking commander during inspection, "Are those Bugle Boy jeans?" 8) Forging letter of recommendation from Steinbrenner. 7) Whenever enemy aircraft appears, dropping your gun and screaming like a woman. 6) Wearing "Home of the Scud Missile" boxer shorts. 5) Comments like, "Wow! That Hussein guy is nuts!" 4) Holding membership in B'nai Brith. 3) Showering. 2) Double dating with Arthur Kent. 1) Laughing hysterically as you point to the sky and say, "Hey, look everybody! More B-52s!" (NBC Late Night With David Letterman, 2/22/91) Copyright © 1991 by the Bulletin Broadfaxing Network. Reproduction without permission prohibited. The White House Bullotin is published business days by the Bullotin Broadfaxing Network, Alexandria, Virginia. -- END OF FAX -- 6 the beltway - who can get together and hammer out a compromise. One Administration official had criticized the timing of such a summit because, unlike the education summit, which involved governors who had been working on a consensus on educational issues for nearly a decade, no such consensus exists in the health care field. Kasich emphasized that "all the issues are already on the table, and it's a matter of making hard choices. It won't be easy to do things like tell lawyers they can't sue as much anymore." Kasich is concerned that health care reform has been put off too long, and that the price tag for delay warrants the immediate attention of the Congress. "We've got a $124-billion Medicare budget that is going up 12 percent every year," Kasich said, "and yet we've got hospitals closing and doctors leaving the profession and people not getting care. Inaction is what is beginning to destroy the system." INSIDE LOOKING OUT: The second of a two-part interview with Deputy Secretary of Health and Human Services Constance Horner. Horner, who served as Director of the Office of Personnel Management from 1985 to 1989, discusses ways in which the government and the private culture can help children and families. BULLETIN: How can a federal dollar be spent or managed to foster a better environment for infant vitality and child health? HORNER: Much of the money needs to be directed to simple medical problems. However, | think most people recognize that the problems children are experiencing now are not the result of simple medical difficulties, but of social and behavior choices of their parents. Therefore, federal money that is designed to enhance the health of children needs to be targeted to create an opportunity for change in the lives of adults. For example, if a parent smokes, and that smoking exacerbates a child's allergy to the point of injuring the child's hearing, we cannot simply direct money to the child's encounter with the ear doctor. We have to devote money to the woman's encounter with her addiction. However, that money will do very little good if it is simply put out there in the form of available programs. It must be accompanied by a strong moral injunction to mothers and fathers and neighbors and local officials to bring to bear a loving judgement and a call to correction upon the person who is, by his or her own behavior, bringing injury to the child. This is true whether the illness is physical or emotional. We need to tell truth here. To use Vaclav Havel's wonderful talismanic saying from his years in the Czech underground: "We must name good and evil." We must not worry anymore about being politically correct when to do so would contribute to the destruction of children. BULLETIN: What would you say to the criticism that these sorts of problems are largely due to poverty? HORNER: It is culture more than money that provides the kind of life-giving, community-supporting behavior that produces healthy children. We know that children with two loving parents who stick with them; love, discipline, and challenge them; work hard; and go to church are better off. We know from social science that these traditional things work. It is not just poor children who are suffering the lack of an ordered, wholesome culture. It is middle class and rich children also. We need to tell our children and all television producers that violence is not going to be their daily entertainment fare anymore. We are creating some children for whom sadism is associated with sex because that's what they've seen on MTV; children for whom murder is easy because that's what they've seen on TV. The adult world, in exploring for its own pleasure the outer limits of acceptable behavior, has been indifferent to the impact of that exploration on vastly more vulnerable children. I believe that adults must engage in sacrifice and self discipline - to forego what are after all base and tawdry forms of entertainment - for the sake of children. 5 TX HISTORY: TX has a "no excuse needed" absentee voting period. In those 17 days any voter can vote absentee at a local location. For example, there can be five different local locations in a county -- town hall, court house, post office, super market, donut shop. The No Excuse Absentee voting period lasted from Oct. 17 to today. In the 1988 general election in Texas, about 25% of all the votes cast were cast prior to Election Day. In the March '90 gubernatorial primary, the Williams campaign used the system to its benefit. TEXAS TODAY: Through 10/30, the TX Secretary of State's office reported that 500,000 voters had already voted; Sec. of State George Bayoud has predicted that fully half of the state's voters will vote absentee (DALLAS TIMES HERALD 11/1). Zack Dawes of the Williams campaign for Gov reports that Victory '90 (subsidized by the state GOP) has placed 500,000 calls to likely absentee voters, and sent mailings to 1.2M likely absentee voters (compared to a reported 800,000 Richards mailing on the Dem side). The GOP list was made up of GOP primary voters and absentees identified by phone banks. HOTLINE sources say that Unity '90, coordinating the Dem effort with mail, field activity and phone banks; the GOTV effort is concentrated in counties with over 65% Dem registration. *18 SIMPSONS: 2 CARS IN EVERY GARAGE AND 3 EYES ON EVERY FISH Last night's "Simpsons" on FOX-TV featured Homer Simpson's boss at the nuclear plant, Montgomery Burns, deciding to run for governor when safety violations (discovered when Bart Simpson catches a three-eyed fish in the ol' Fishin' Hole) risk shutting down the plant. There were some classic lines: When Homer suggests Burns runs, Burns yells, "Get off your soapbox, Simpson! Do you realize how much it costs to run for office?" Homer: "More than any honest man could afford. I bet you could afford it I mean, if you were governor, you could decide what's safe and what isn't." So Burns gets himself a campaign manager, who says, "Here's the problem as I see it: While Governor Bailey is beloved by all, ninety-eight percent of the voters rate you as despicable or worse. That's why we've assembled the finest campaign team money can buy. This is your speech writer, your joke writer, your spin doctor, your make-up man and your personal trainer [and] the team of investigators: your muckraker, your character assassin, your mudslinger, your garbologist." Task one is the PR problem of the headline-making three-eyed fish, so Burns hits the airwaves with "an actor portraying Charles Darwin," allowing Burns to point out, "If our anti- nuclear naysayers and choose-up-siders were to come upon an elephant frolicking in the waters next to our nuclear power plant they'd probably blame his ridiculous nose on the nuclear bogeyman. The truth is, this fish is a miracle of nature with a taste that can't be beat." Governor Bailey holds out, saying, "My worthy opponent seems to think that the voters of this state are gullible fools. I, however, prefer to rely on their intelligence and good judgment" (reporter response: "Interesting strategy") -- but after scenes of Burns railing against taxes, wearing a sombrero, at a construction site and even riding a tank while wearing a helmet, it's a 50-50% race. Burns' manager: "The voters now see you as. imperial and God-like But there's a downside to it. The latest polls indicate you're in danger of losing touch with the common man." Thus, an election-eve live television dinner with the Simpsons is planned (Bart: "Cool man -- a media circus"), and impromptu questions are even planted. For Lisa Simpson: "Mr. Burns, your campaign seems to have the momentum of a runaway freight train. Why are you so popular?" But when Marge Simpson -- always a Governor Bailey supporter -- surprises Burns and the camera crews by serving a dinner of the three-eyed fish, a trembling Burns is caught on live television spitting out a bite of this "miracle of nature," destroying his candidacy with headlines like, "Burns Can't Swallow Own Story.' " But Burns wryly sums up his reaction, to his aide Smithers: "Ironic, isn't it Smithers? This anonymous clan of slack-jawed troglodytes has cost me the election, and yet if I were to have them killed, I would be the one to go to jail. That's democracy for you" ("Simpsons" script release; FOX-TV, 11/1). *19 ROLLING ROLLINS: NRCC "BLOOD BATH" COMING WEDNESDAY? "In order to assure that [NRCC co-chair Ed] Rollins would be axed, White House Chief of Staff John Sununu [has] persuaded Rep. Don Sundquist [R-TN] to challenge" Rep. Guy Vander Jagt (R-MI), the current NRCC chair (Ralph Hallow, WASH. TIMES, 11/2). ANTI-ROLLINS: "Ousting Mr. Vander Jagt -- and discrediting Mr. Rollins -- is seen by some of the House members supporting Mr. Sundquist as a way to stop Mr. Gingrich from gaining even more power in the House, a goal with which the White House is not unsympathetic, Bush aides said" (Hosler, 11/2). "Vander Jagt said that he and Bush have been friends but that now Bush was 'ticked off' at him. Sundquist and Sununu got in touch with each other, GOP sources said. Sundquist then announced that he would challenge Vander Jagt for the chairmanship" (Lawrence O'Rourke, ST. LOUIS POST-DISPATCH, 11/2). HOUSTON CHRONICLE's Cragg Hines calls it GOP "civil war": "Sununu and his deputy, Ed Rogers, are seen as Rollins' chief antagonists in the White House" (11/2). PRO-ROLLINS: Vander Jagt "said yesterday that Rollins 'will definitely stay on after the election and for 1992. "NRCC officials said Rollins has told Vander Jagt that he intends to fulfill his four-year contract" through '92 (Kim Mattingly, ROLL CALL, 11/1). GOP consultant Eddie Mahe wants Rollins to stay (Hallow, 11/2). Rollins "is considered to be allied closely with Newt Gingrich" (Karen Hosler, Baltimore SUN, 11/2). BUSH'S CLOUT: "Vander Jagt said he politely told Bush that he would not fire Rollins." Vander Jagt: "Absolutely, Ed Rollins will stay. He told it like it was The president is not forcing him out" 'Rourke, 11/2). KICKOFF: Senior Bush official: "There is clearly going to be a blood bath, starting Wednesday morning" (Hallow, 11/2). POLL UPDATE *21 HOTLINE/KRC: CHRONOLOGY OF SEVEN WEEK BUSH SLIDE 1,004 registered voters were interviewed 10/28-30, margin of error is +/- 3% (S.F. EXAMINER, BOSTON GLOBE, WBZ, 11/1) QUESTION: Favorability of President Bush. 10/30 10/23 10/16 10/9 10/2 9/25 9/18 Favorable 65% 70% 70% 72% 76% 82% 81% Unfavorable 26% 24% 26% 20% 17% 13% 13% QUESTION: President Bush's job rating on ... OVERALL 10/30 10/23 10/16 10/9 10/2 9/25 9/18 Bush positive 44% 52% 50% 58% 61% 64% 66% Bush negative 36% 31% 30% 25% 23% 19% 18% DEFICIT Bush positive 19% 19% 18% 24% 18% 15% 16% Bush negative 66% 63% 67% 62% 60% 65% 61% ECONOMY Bush positive 19% 22% 25% 26% 29% 25% Bush negative 61% 57% 55% 49% 49% 52% FOR. POLICY Bush positive 48% 54% 53% 58% 63% 67% 61% Bush negative 29% 30% 29% 23% 18% 18% 20% *22 WALL STREET JOURNAL/NBC: BUSH JOB RATING "BOTTOMED OUT" 507 registered voters were interviewed 10/30-31 by the organizations of Reobert Teeter and Peter Hart. No margin of error given; HOTLINE estimate +\- 4.35% (WSJ, 11/2, NBC, 11/1). NOW 10/26 "EARLY" 1990 -- Bush job approval 56% 59% 75% disaproval 32 32 15 -- Most important reason for U.S. presence in Persian Gulf: NOW 9/90 Forcing Iraq out of Kuwait 46% 39% Protecting oil supplies 35 50 -- 46% "say they would bè more likely to support a candiate who objects to current Gulf policies." -- Who got more of what they wanted in the budget deal? Democrats 39% Bush 28 -- "Voters by 45% to 39% accept the [Dem] interpretation that the Republicans protected teh rich over the GOP contention that the Democrats forced higher taxes." -- "Voters by 47% to 38% are more likely to support a cnadidate becuase he voted for teh final deal." -- "The GOP by a 36% to 31% is still seen as better able to get the country out of a recession -- "53% to 37% say they are more likely to support an abortion rights candidate." *10 RHODE ISLAND: PELL AIDE ALERTS CHENEY TO HIDDEN MESSAGES Pell aide C.B. Scott Jones "has been reprimanded for writing" Sec. of Defense Dick Cheney -- on Senate stationery -- "to raise the question of whether President Bush and other top officials have used a 'code word' in speeches on the Persian Gulf situation" (John Mulligan, PROVIDENCE JOURNAL). Jones wrote Cheney on 10/3 "to report that the word 'Simone' has 'appeared' when tapes of separate speeches of [Bush, Cheney and Sec/State Baker] are played backwards." The 62-year-old Jones, who "is assigned, among other duties, to look into paranormal phenomena, such as ESP, " referred to the procedure as "reverse speech therapy. Pell said he had never heard of reverse speech therapy nor did he know of the letter. "Nevertheless, the matter focused fresh attention on Pell's longtime interest in extrasensory perception, the possibility of an afterlife and other such matters of 'human potential. Pell believed the letter "was motivated by patriotic reasons, " but added that "Jones shouldn't have penned the letter under Senate auspices 'without checking with me. Pell CoS Thomas Hughes "reprimanded" Jones and said, "as a political matter, 'it certainly isn't helpful. Pell "said he still values Jones' services,' and went on to describe "Jones' work with Princeton scientists on the possibility that people can cause objects to move by the power of thought." Pell's opponent, Rep. Claudine Schneider (R), said "it sounds bizarre,' adding that she knows nothing about it. "Jones said that, based on a number of conversations he has had with Miss Schneider over the years, her interest in human-potential-style phenomena 'very much parallels the senator's" (10/19). Seemone nomes President Bush's Vetoes 1989 Bill Bill Description Date Outcome* HR 2 Minimum Wage Increase June 13 House sustained, 247-178 S J Res 113 FS-X Plane Codevelopment July 31 Senate sustained, 66-34 H J Res 390 Thrift-bailout bill Aug. 16 No override attempt enrollment requirements (pocket-vetoed) HR 2990 Labor, HHS, Education FY 1990 Appropriations Oct. 21 House sustained, 231-191 HR 3028 District of Columbia FY 1990 Appropriations Oct. 27 No override attempt HR 2939 Foreign Aid FY 1990 Appropriations Nov. 19 No override attempt HR 3610 District of Columbia FY 1990 Appropriations Nov. 20 No override attempt HR 1231 Eastern Airlines Strike Resolution Nov. 21 House austained, 261-160 HR 1487 State Department 7 Authorization Nov. 21 No override attempt HR 2712 Chinese Immigrant Status Nov. 30 Senate sustained, 62-37 1990 Bill Bill Description Date Outcome* HR 2364 Amtrak Authorization May 24 Senate sustained, 64-36 HR 20 Hatch Act Amendments June 15 House overrode, 327-93 Senate action pending "Yeto overrides require & two-thirds majority vote of both houses. THE WHITE HOUSE WASHINGTON June 6, 1990 MEMORANDUM FOR THE PRESIDENT THROUGH: ED ROGERS DEPUTY ASSISTANT TO THE PRESIDENT AND EXECUTIVE ASSISTANT TO THE CHIEF OF STAFF FROM: DAVID CARNEY SPECIAL ASSISTANT TO THE PRESIDENT AND DEPUTY DIRECTOR, OFFICE OF POLITICAL AFFAIRS SUBJECT: RESULTS OF JUNE 5TH PRIMARY RACES General John Van de Camp to win the Democrat nomination for In California, Former Mayor Dianne Feinstein defeated Attorney Governor. Feinstein will face Senator Pete Wilson in the gubernatorial general election in November. Feinstein has now proven she is in this race to win and will be a tough opponent for Wilson. Several Ballot Initiatives also appeared on the primary ballot. Both were soundly defeated. This only increases the importance Proposition #118 and #119 dealt with the Reapportionment process. of Pete Wilson's victory in November. Proposition #115 (Wilson's Crime initiative) were victorious as was Proposition #108 and #111 (Gas Tax Initiatives). This will double the current increase in gasoline from 9 to 18 cents per gallon. Out of 23 initiatives on the ballot, 21 were victorious. Only the Reapportionment initiatives were defeated. Republican State Treasurer Thomas Hayes defeated former U.S. Treasurer Bay Buchanan for the GOP nomination. Hayes will face November. Kathleen Brown, Democratic Chairman Jerry Brown's sister in In Montana, Lt. Governor Allen Kolstad defeated 3 other candidates to win the Republican nomination for the U. S. Senate seat currently held by Democrat Max Baucus. In New Mexico, Frank Bond defeated Les Houston and 2 other Governor Bruce King easily won the Democrat nomination. candidates to win the Republican nomination for Governor. Former In Alabama, Education Association President Paul Hubbert will face Attorney General Don Siegelman in a June 26th run-off election, to determine a Democrat opponent for Governor Guy Hunt. Hubbert will have the backing of liberal teachers organizations, should he win the run-off. Hunt currently appears to be in good vulnerable. shape, although a well-run democrat campaign could render him In what is seen as somewhat of a surprise win, Harvey Gannt defeated Mike Easley in the North Carolina democrat run-off election for the U.S. Senate nomination. Gantt, a black former mayor of Charlotte, is more liberal than his opponent, and will be an easy target for incumbent Jesse Helms due to his opposition to the death penalty and support of the NEA. There was a surprise in New Jersey's 12th congressional district primary. In the Republican primary, State Senator Dick Zimmer came from behind to defeat the early leader, Assemblyman Rod Frelinghuysen, and won the GOP nomination. Ex-football player Phil McConkey, the only pro-life candidate, also came from an expected third place finish to beat Frelinghuysen. Zimmer will now face pro-life advocate and businesswoman Marguerite Chandler. In other New Jersey races, Bill Bradley easily defeated "peace and freedom" candidate Peter Seyler and Christy Whitman won the Republican nomination running unopposed. Daniel Mangini, the Republican congressional candidate in the open 1st seat, won the November. nomination unopposed. He will face Democrat Robert Andrews in The Iowa primary election produced some interesting results for both Republicans and Democrats. Speaker of the House, Don Avenson, won the Democratic nomination for Governor defeating Attorney General, Tom Miller, and businessman John Chrystal. Avenson was the favored front runner over the last couple of weeks and is the most liberal of the three candidates. He is well-known statewide and will give Governor Terry Branstad a tough race. Avenson will go into the fall campaign with little money due to an expensive primary. Whereas, Branstad, who spent no money date. during the primary has approximately 3 million dollars raised to Avenson, who is pro-choice, is expected to make abortion a key issue in his campaign and will likely attack Governor Branstad's pro-life position. Due to the high profile and closeness of the Democratic which Governor's race, Democratic turnout was larger than expected, outregister the Republicans in Iowa. could be a source of concern for Branstad because Democrats NARAL (National Abortion Rights Action League) will make both Governor Branstad and Congressman Tom Tauke two of their top targets this year due to their strong pro-life stances. Election returns are attached for your use and information. ALABAMA: GOVERNOR: Republican Primary Democrat Primary (77% of the votes counted) (83% of the votes counted) Governor Guy Hunt 114,336/96% Paul Hubbert Jim Watley 201,055/32% 3,075/3% Don Siegelman 150,798/24% Fob James 137,984/22% Ronnie Flippo 111,386/18% Charles Bishop 27,682/4% CONGRESS: AL-2 (66% of the votes counted) Congressman Bill Dickinson Democrat Primary Faye Baggiano 44,230 George Balmer 14,921 AL-5 Open Seat (Flippo) Republican Primary (65% of the votes counted) Democrat Primary (50% of the votes counted) Albert McDonald 2,496 Bud Cramer Jim Asquith 20,538 568 Eddie Frost Annie B. Wells 8,891 529 Evelyn Pratt 7,443 Lynn Greer 10,777 Garland Terry 2,969 Bill Spears 505 David Wood 364 * Greer and Cramer will have a run-off on June 26th. CALIFORNIA: GOVERNOR: (63% precincts reporting) Democrat Primary Dianne Feinstein 808,679 52% John Van de Kamp 645,883 41% LT. GOVERNOR: (63% precincts reporting) Republican Primary John Seymour 507,727 45% Marian Bergesen 621,124 55% (Bergesen is pro-life while Seymour is pro-choice) TREASURER: (63% precincts reporting) Republican Primary Tom Hayes 601,257 54% Bay Buchanan 512,496 46% BALLOT INTIATIVES: 118 (Reapportionment) No 66.9% Yes 33.1% 119 (Reapportionment) No 64% Yes 36% CONGRESS: Republican Primary CA-19 Robert Lagomarsino 41,334 89% Alan Winterbone 5,260 11% CA-21: Elton Gallegly 56,484 70% Sang Korman 19,398 30% CA-44 Republican Primary Democrat Primary Randy "Duke" Cunningham 45% Bates 62.6% Joe Ghougassian 30% Georgiou 37.4% IOWA: GOVERNOR: Democrat Primary (90% of the votes counted) Don Avenson 39% Tom Miller 31% John Chrystal 26% TREASURER: (63% precincts reporting) Republican Primary Tom Hayes 601,257 54% Bay Buchanan 512,496 46% BALLOT INTIATIVES: 118 (Reapportionment) No 66.9% Yes 33.1% 119 (Reapportionment) No 64% Yes 36% CONGRESS: Republican Primary CA-19 Robert Lagomarsino 41,334 89% Alan Winterbone 5,260 11% CA-21: Elton Gallegly 56,484 70% Sang Korman 19,398 30% CA-44 Republican Primary Democrat Primary Randy "Duke" Cunningham 45% Bates 62.6% Joe Ghougassian 30% Georgiou 37.4% IOWA: GOVERNOR: Democrat Primary (90% of the votes counted) Don Avenson 39% Tom Miller 31% John Chrystal 26% ATTORNEY GENERAL: Republican Primary (90% of the votes counted) Kelly 59% Schmett 41% CONGRESS: Republican Primary Democrat Primary (94% of the votes counted) (90% of the votes) CD-2 Open Seat (Tauke) Jim Nussle 39% Eric Tabor 54% Joe Ertle 36% Steve Soverign 46% Wayne Moldenhauer 25% MONTANA: U.S. SENATE: (88% precincts reporting) Republican Primary Allen Kolstad 36,373 43% Bruce Vohauer 23,029 36% Bill Ferrall 9,365 13% John Dominech 5,346 8% NEW JERSEY: CONGRESS: NJ-1 Open Seat (Florio) Daniel Mangini won the Republican nomination unopposed. Democrat Robert Andrews won his party's nomination with 52% of the vote. NJ- 12 Open Seat (Courter) (99% of the vote counted) Zimmer 15,395 McConkey 12,614 Frelinghuysen 11,951 Shanahan 928 NEW MEXICO: GOVERNOR: Republican primary Democrat primary (99% of the votes counted) (50% of the votes) Les Houston 33% Bruce King 51% Harry Kinney 6% Paul Bardacke 41% Frank Bond 55% Tony Scarborough 4% James Caudell 5% Bob Gold 4% NORTH CAROLINA: U.S. SENATE: (democrat run-off) (94% of the vote counted) Harvey Gannt 290,248 60% Mike Easley 193,742 40% These figures are based on information derived until 7:00am. OFFICE am PRESIDENT STATES UNITED EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 JUN 8 1989 MEMORANDUM TO DAVID F. DEMAREST, JR. ASSISTANT TO THE PRESIDENT FOR COMMUNICATIONS FROM: Robert E. Grady BOb SUBJECT: Recreational Land Acquisition Projects Included in the FY 1990 President's Budget Attached for your information are lists of FY 1990 proposed recreational land acquisitions by the Departments of the Interior (National Park Service, Fish and Wildlife Service, Bureau of Land Management) and Agriculture (Forest Service). These projects will be funded under the President's initia- tive, announced in his February 9th budget address, to seek over $200 million in appropriations annually from FY 1990 to FY 1993 for Interior and Agriculture land acquisition. This compares to a request of $23 million in the previous Administration's budget, consistent with its desire to eliminate funding for land acquisition. The Departments recently submitted these lists to Congress. Funding of these projects will promote a variety of Administration objectives, such as providing recreation to urban area populations ("parks for people"), preserving valuable wetlands, and protecting threatened and endangered species habitats. The projects are a clear demonstration of the President's commitment to environmental protection and enhancement, and should be used in his upcoming trips and speeches across the country to help bring this message home to the electorate. Follow-up questions regarding the listed projects should be directed to me or Dave Gibbons of OMB (x4586). Attachments CC: e.g. - wight be useful in a speed Speechwriters: Ms. Chriss Winston in a local over to say Mr. Edward McNalley Mr. Dan McGroarty Mr. Mark Davis "my budget contains X million in Mr. Mark Lange Mr. Curt Smith to expand X park." Hope this is helpful! lob SENT BY:Xerox Telecopier 7020 ; 5-12-89 : 11:34 ; 2023431911- 93956899:# 2 5/11/89 DEPARTMENT OF THE INTERIOR FY 1990 Land Acquisition (In thousands of dollars) BLM FWS NPS TOTAL Acquisition management 1,100 1,874 6,317 9,291 NPS State assistance management n/a n/a 3,383 3,383 Emergency and hardship 0 1,500 6,079 7,579 Projects 19,785 48,041 53,680 121,506 Bureau totals 20,885 51,415 69,459 141,759 SENT BY:Xerox Telecopier 7020 ; 5-12-89 : 11:34 ; 2023431911- 93956899:# 3 05/12/89 Page 1 DEPARTMENT OF THE INTERIOR FY 1990 Land Acquisition - Bureau Listing (dollars in thousands) No. of FY 90 Cumulative Bureau Parcel Acres ($000) Cost BLM Big Hole River, MT 393 180 BLM Bizz Johnston Trail, CA 150 300 BLM Bruneau River, ID 160 40 BLM Carrizo Plains, CA 35,000 6,000 BLM Chuckwalla Banch, CA 2,500 500 BLM Colo R/Blk Ridge Canyon, CO 1,200 300 BLM Desert Tortoise Nat Area, CA 600 1,200 BLM E1 Malpais, NM 50,000 1,250 BLM Fig Springs, AZ 640 210 BLM Kings Range NCA, CA 600 500 BLM Lomas/Santa Fe, MT 142 590 BLM Lower Salmon River, ID 1,568 1,200 BLM McCain Valley RCA, CA 400 250 BLM New River ACEC, OR 120 500 BLM N. Fork American River, CA 240 250 BLM Oregon Nat'l Trail, ID 1,600 405 BLM Overflow Wetlands HMP, NM 804 240 BLM Owyhee River, OR & ID 1,500 1,320 BLM Pariette Wetlands, UT 503 210 BLM Rio Chama, NM 1,020 350 BLM Rio Grande, CO 280 70 BLM S Fork Merced River, CA 160 250 BLM S. Fork Snake River, ID 1,700 1,750 BLM Upper Missouri W/S River, MT 419 200 BLM Upper Sacramento River, CA 1,300 1,720 19,785 SENT BY:Xerox Telecopier 7020 ; 5-12-89 ; 11:34 ; 2023431911- 93956899:# 4 03/11/89 Page 1 DEPARTMENT OF THE INTERIOR FY 1990 Land Acquisition - Bureau Listing (dollars in thousands) No. of FY 90 Cumulative Bureau Parcel Acros ($000) Cost FWS Ace Rivers Basin, SC 1,200 1,000 FWS Blunt-nosed Lizard, CA 150 160 FWS Bogue Chitto, LA 2,505 1,200 FWS Cape May, NJ 500 1,000 FWS Crystal River, FL 10 900 FWS Eastern Shore, VA 220 200 FWS Grest Swamp, NJ 200 2,000 FWS James River, VA 3,500 2,000 FWS J.N. "Ding" Darling, FL 43 300 FWS Lake Thompson, SD 5,000 1,000 FWS Lower Rio Grande, TX 8,000 10,000 FWS Minnesota Valley, MN 1,130 4,516 FWS Pelican Island, FL 249 1,900 FWS Pettaquamscutt, RI 150 1,400 FWS Sacramento River, CA 4,065 4,643 FWS San Francisco Bay, CA 1,400 4,000 FWS San Joaquin River, CA 2,500 5,000 FWS San Pablo Bay, CA 1,493 3,500 FVS Steigerwald Lake, WA 190 722 FWS Tinicum Nat'l Envir Ctr, PA 100 1,000 FWS Trempealesu, WI 500 500 FWS Trustom Pond, RI 70 1,100 48,041 SENT BY:Xerox Telecopier 7020 ; 5-12-89 ; 11:35 ; 2023431911- 93956899:# 5 05/12/89 Page 1 DEPARTMENT OF THE INTERIOR FY 1990 Land Acquisition - Bureau Listing (dollars in thousands) No. of FY 90 Cumulative Bureau Parcel Acres ($000) Cost NPS Acadia NP, ME 233 1,000 NPS Antistam NBP, MD 62 500 NPS Appalachian Trail, Multi 2,387 7,000 NPS Big Cypress N Pres, FL 5,894 4,000 NPS Chattahoochee River NRA, GA 225 5,000 NPS Congaree Swamp, SC 733 1,000 NPS Cuyahoga Valley NRA, OH 175 3,500 NPS Delaware Water Gap NRA, NJ/PA 96 750 NPS El Malpais, NM 3,500 3,500 NPS Jean Lafitte NHP & Pres, LA 1,000 1,000 NPS New River Gorge NR, WV 2,812 2,500 NPS NP of American Samoa, Saipan 9,000 400 NPS Santa Monica Mts. NRA, CA 3,059 21,530 NPS Timucuan E & H Res, FL 100 1,500 NPS War in the Pacific, Guam 1 500 53,680 U.S. FOREST SERVICE FY 1990 L&WCF PROGRAM NO. OF COST PROJECT/STATE ACRES ($000) Caribbean NF, Puerto Rico 300 430 Mt. Baker-Snoqualmie NF, WA 160 2,000 Pacific Crest Trail 1,000 1,000 Pere Marquette W&SR, MI 500 500 Appalachian Trail 6,000 3,000 Chattooga W&SR, GA 1,000 1,000 Hells Canyon, NRA, OR/ID 500 500 Sawtooth, NRA, ID 400 2,000 Oregon Dunes, NRA, OR 300 500 Cascade Head, SRA, OR 200 1,000 Ocala NF, FL 532 4,000 Humboldt NF, NV 5,950 1,400 Monongahela NF, WV 7,000 2,800 Flaming Gorge NRA, WY 6 12 Hiawatha NF, MI 13,000 3,500 Toiyabe NF, CA/NV 4,000 4,000 Spruce Knobs-Seneca Rock NRA, WV 700 500 Flathead W&SR, MT 800 1,500 Inyo NF, CA 248 1,000 Green Mountain NF, VT 3,500 1,750 Desoto NF, MS 800 700 Quachita NF, AR 8,000 5,000 Ozark NF, AR 3,500 2,000 San Bernardino NF, CA 450 2,000 Roosevelt NF, CO 320 960 Siuslaw NF, OR 568 2,500 Wenatchee NF, WA 15 700 Columbia River Gorge, NSA, WA/OR 3,000 5,000 Carson NF, NM 525 375 Osceola NF, FL 6,000 1,750 Gallatin NF, MT 1,000 1,000 Lake Tahoe Basin, CA/NV 250 3,500 Inyo NF, CA 317 400 BWCA Wilderness, MN 10 500 Project Total 58,777 Acquisition Management 6,054 TOTAL 64,831 November 2, 1990 FOR: ALL SPEECHWRITERS FROM: D. MC GROARTY RE: BREAKFAST BRIEFING IN THE MESS The coffee was weak, the camaraderie strong and the guest Ben Wattenberg -- author, think tanker, philosopher-in-residence at AEI (and former speechwriter) who is publishing his 4th book analyzing demographic trends, The First Universal Nation. Wattenberg's thesis is that upward trends in birth rate and immigration will fuel economic growth, and have an ameliorating affect on the deficit and on shortages in the social security trust fund. His reasoning: Many immigrants have been trained/educated outside the U.S. at other nations' expense, then come here to work their productive years. They "pay into the system" for decades before they begin to make claims on it. Accordingly, Wattenberg: Praised the 1990 Immigration Bill ("a great and positive surprise"), which will allow a 40% increase in immigration. ** Stands against anything that makes it tougher to raise a family. Noted that our tax code was once much more "pro-family": in the late 40's, the personal exemption was $600. It would have to be $6000 dollars in today's dollars -- not the current $2050. In other words, had the exemption kept place with inflation, a two-child household would today receive an additional $8000 dollars in federal tax deductions. ** Had high praise for the Child Care tax credit. Sound social policy, through tax code. No new bureaucracy -- just "good green dollars." It helps working families -- and is not a gravy train for welfare parents. It is flexible: lets families decide whether to use the credit for child care -- or take added time off to stay home with child. Wattenberg would like to see it expanded to provide relief for more families of moderate means. Wattenberg on matters of current interest: He doesn't worry about the deficit -- which he sees at lower level of GNP than in 1985-1986. "The apocalyptic case wasn't made then when it could have been --- and it's less persuasive now." Interestingly, he doesn't view the current situation as proof of political paralysis. What some see as governmental gridlock (ahem), he sees as simple difference of opinion. He described the recent budget endgame this way: the Executive- Legislative elite decided to remedy the deficit problem, produced a bipartisan package. Then, "the people's House" told them to "stuff it. "Go back and do it again." The result: a new package that is more palatable. Wattenberg: "If that's not the way the system is supposed to work, then somebody show me the new Constitution." ** He made a sharp attack on quotas -- and strongly supports the Bush veto of the so-called Civil Rights Act of 1990. He suggests more a more sustained public defense of the Bush position, in light of any renewed attempt to pass a 1991 Quota Bill. For Wattenberg, quotas cut at the heart of the American idea: a society based on opportunity and merit. He sees quotas not as a remedy, but as a recipe for disaster: a question of extending quotas from Blacks, Asian-Americans, hispanics and women to new Eastern European immigrants, African and Caribbean Blacks, Russian Jews, Polish Catholics. Ultimately, he fears a society splintered by ethnic origin, gender and race. ** Wattenberg is very much an internationalist -- a devotee of what Tocqueville called "American exceptionalism.' He sees the U.S. engaged world-wide in a contest for culture, which we can and should fight to win. Talks about the Apocalyptic Bean Counters of the America in Decline" school -- and reminds that Rome prevailed by culture, not by the balance of trade in chariot wheels. The key post Cold-war question now, he says, is which type of democracy will prevail. America retains a powerful attraction: 9 in 10 foreign-born cabbies, asked to describe what they think about America, will use the word opportunity in the first paragraph --if not their first sentence. # # # SENI ENTER INST 605 9364 ;# 2 THE HRSI UNIVERSAL NATION Leading Indicators and Ideas about the Surge of America in the 1990s Indicators: Demographics Since the baby boom. American fertility has fallen sharply, plateaued. and now may be rising somewhat. The number of new immigrants to Total Fertility Rates (Expressed as the United States has been steadily Children Born Per Woman rising since World War II Year Fertility Rate 1. Number of Immigrants 1950 3.0 children Period Immigrants un Millions 1955 3.5 1901-10 8.8 1960 3.6 1911-20 5.7 1965 2.9 1921-30 4.1 1970 2.5 1931-40 0.5 Counting 1975 1.8 1941-50 1.0 Estimated 1980 1.8 1951-60 2.5 Illegals 1986 1.8 1961-70 3.3 3.8 1987 1.9 1971-80 4.5 6.0 1988 1.9 (est.) 1981-90 5.8 7.8 1989 2.00 (est.) Mar. 1989-Mar. 1990 2.00 (est.) 1991-2000 7.0 9.0 (est.) 1990 (Jan June) 2.10 (est.) E. According to the previous "most likely" population projection, the U.S. population begins to level off by about the middle of the 2020s. and subsequently Gils. An increase in fertility or immigration substantially changes that projection. U.S. Population Projections (in Millions) Previous Previous Previous Current Increase due "Most Likely" Immigration. TFR. 800,000 Estimated Expected Current to Higher Aggres Year Projection 2.0 TFR Previous Immigration "Most Likely" Expected Immigration Extre Growth Growth 1990 251 & Fertility 251 Growth 251 251 -- -- 2000 268 272 272 276 17 25 8 2010 8 283 292 291 300 15 24 , 17 2020 294 312 307 325 11 25 14 31 2030 301 328 318 346 7 21 14 45 2040 302 340 324 364 1 18 17 62 2050 300 350 327 379 -2 15 17 79 2080 292 356 333 402 -8 23 31 110 # See note. The U.S. will grow substantially. target of toming Its competiton will not. Population Projections are all ready- (in Millions of People) Nation/Region 1990 2000 2025 Camer U's overseas -EE. conterl billecture United States' 251 276 336 Canada 27 1 foreign here. 29 32 USCanada* 278 305 368 which type of demr... Mexico in bectariment cultural Superpor Japan 89 107 150 124 129 128 ansle West Europe 361 360 350 East Europe 140 148 160 Unified Europe 501 509 510 FP ABC's. World 5.321 6.259 8,491 THE FREE PRES . Current estimated "most likelv" projections A Division of Macmillar NOV 1 '90 11:45 2028627177 PAGE.002 IMMIG BILL V 40%9 IMPACT OF B.Kt + 1M on Deficit 55. Debt wontgo from imin. SS $ line less out Mil missurary new order for 1/2, Reagon itrus. opp, growth, footal, cut'lim Qustar - Balhauyeston. pol. paralysis? W; guidlord or fast diff forguion tax code w: culture generally pol. S tructure personal ld- (946 to Nowreal 9 ln 10 cabbies - Genera = opportunity w/d be 6000 BUILDING A BETTER AMERICA APRIL 24, 1989 SUMMARY Since President Bush took office, he has addressed a series of tough issues, meeting both urgent short-term priorities and working toward solutions to the long-term challenges facing the nation. Relying on basic American principles -- traditional family values, choice, accountability, fairness, excellence, peace through strength -- the President is building a better America by: 1. Keeping the economy strong -- with no new taxes 2. Seizing international opportunities for peace 3. Investing in our future 4. Working for a kinder, gentler America Keeping the Economy Strong -- with No New Taxes Record economic growth -- 76 months of economic expansion. Nearly 20 million new jobs have been created, and the unemployment rate is now at its lowest since December, 1973. Real median family income set a new record in 1987 and continues to grow. A comprehensive budget proposal sent to the Congress and an unprecedented bipartisan agreement with the Congress reached on the budget reducing the Federal budget deficit, meeting Gramm-Rudman-Hollings deficit reduction targets with no new taxes A comprehensive plan to rescue the Savings and Loan industry which has cleared the Senate An initiative for cutting the capital gains tax rate sent to the Congress to encourage investment and create jobs and opportunity In the Uruguay Round of GATT trade negotiations, substantial progress has been made by the Administration toward reducing trade barriers to U.S. exports A plan for raising the minimum wage to $4.25 coupled with a six month training wage Seizing International Opportunities for Peace The signing of a bipartisan accord with the Congress on Central America The initiation of a dialogue with the Soviet Union. Secretary Baker met with Foreign Minister Shevardnadze in March, and these talks will continue when the two meet next in Moscow An eight-step program to support Polish political and economic reforms Intensive Presidential consultations with the leaders of 34 nations, including 18 bilateral meetings held during the Asia trip A plan to strengthen the international response to Third World debt Comprehensive foreign policy and defense strategy reviews initiated Investing in Our Future Improving Education A comprehensive legislative package for educational excellence sent to the Congress Protecting our Environment A multi-agency commitment to oversee the Alaskan oil spill cleanup effort The development of Clean Air Act revisions, with provisions for control of acid rain and other problems An announcement of an effort to seek legislative authority to ban hazardous waste exports, where agreements do not exist for their safe disposal A call for the worldwide phaseout of CFCs by the year 2000 A plan of action to identify and prioritize clean up of defense and civilian radioactive waste A legislative proposal, already enacted by the House, to deregulate natural gas by January 1, 1993 Fighting Drugs and Crime A major $6 billion anti-drug abuse initiative focusing on education, rehabilitation, interdiction and enforcement Action in response to the drug emergency in the District of Columbia, including enforcement support, more prison space, and stepped-up efforts in prevention and rehabilitation A temporary suspension of imports of certain types of semi- automatic weapons Action to modify lease and grievance procedures to facilitate eviction of those involved in drug related criminal activity from public housing New aviation security initiatives announced by the Secretary of Transportation, to counteract terrorism in the skies Working for a Kinder, Gentler America Child Care A child care initiative to give low and moderate income working families greater choice and flexibility in meeting their child care needs Legislation to increase the FY 1990 authorization for Head Start by $250 million to help up to 95,000 more 4-year olds National Service The creation of the Office of National Service in the White House, and leadership in the Administration's initiative on volunteerism Welfare Reform and Medicaid Quick action to implement major welfare reform legislation that will help reduce long-term welfare dependency Expansion of the Medicaid program to serve more pregnant women, infants, and children Homelessness An initiative to provide over $1 billion in federal resources to help end homelessness and pave the way to jobs, permanent housing and health care Ethics and Civil Rights A comprehensive ethics proposal to make uniform the standards among all three branches of government Whistleblower protection legislation, now law, to strengthen the rights of those who report misdeeds and mismanagement Enforcement of the new Fair Housing Laws, to fully prosecute those discriminating in housing opportunities on the basis of religion, race, age, ethnicity, handicap or family status Support by the Department of Justice for the objectives of the Hate Crimes Bill, which provides for the collection of data about crimes motivated by race, religion, ethnicity or sexual orientation President Bush has set an agenda for the country. He is orienting us as a nation toward the future -- building a better America -- keeping America strong and at peace. Leadership is the ability to see the shape of things to come, to address tomorrow's challenges today. George Bush is preparing the nation for the 21st Century. BUILDING A BETTER AMERICA APRIL 24, 1989 KEEPING THE ECONOMY STRONG -- WITH NO NEW TAXES Keeping our nation's economy strong is the key to managing change successfully. The news is good: Record expansion: We are now in the 76th month of the current economic expansion. Job creation: Nearly 20 million new jobs have been created, and the unemployment rate has declined to 4.9 percent, a 15 year low. During this decade, America has created more new jobs than Japan and the nations of Western Europe combined. Record income: Per capita personal income, after taxes and inflation, has risen 17 percent during the expansion; real income of the median family -- the family exactly in the middle of the income distribution -- set a new record in 1987 and continues to grow. Industrial output: During this expansion, American industrial output has grown 33 percent compared with overall economic growth of 26 percent. This is double Europe's growth rate in industrial output and even slightly more than Japan's rate of increase during the same period. Inflation under control: We have had seven straight years of consumer price inflation under 5 percent. The Administration supports the Federal Reserve's efforts to restrain inflation while maintaining real economic growth. The Administration and the Fed share the goal of ultimately achieving price stability -- zero inflation. ACTION BY THE ADMINISTRATION: Presenting a budget: The President put forth a budget which addresses our fundamental obligations for protection of national security and support of the needy, while providing sufficient funds to advance high-priority initiatives. The President's budget restrains overall growth of spending and meets the Gramm-Rudman-Hollings targets -- with no new taxes. Reaching a budget agreement with Congress: The President and Congress announced on April 14 a budget plan to reduce the estimated FY 1990 deficit by about $64 billion below FY 1989. The deficit will be reduced to $99.4 billion, as required by the Gramm-Rudman-Hollings law. This is the 2 first budget agreement reached before the start of the budget year and not framed in the context of crisis. O Savings and Loan reform: The Administration has transmitted the "Financial Institutions Reform, Recovery and Enforcement Act of 1989". to Congress, which has already cleared the Senate. The proposal includes provisions to: -- Assure financial integrity of deposit insurance by raising the annual premium rate for both commercial banks and S&Ls. -- Resolve the status of existing insolvent banks in an orderly fashion. -- Improve supervisory control by bringing S&Ls up to the same standards applied to commercial banks. -- Enhance enforcement of bank fraud provisions. Capital gains tax rate cut: The re-establishment of a capital gains differential will encourage capital formation, and investment and stimulate job creation. The President has sent to the Congress a proposal which includes: -- A 45 percent capital gains exclusion for qualified capital gains, making the maximum capital gains tax rate 15 percent. -- A phased-in increase in the qualifying holding period from one year to three years. -- Families earning under $20,000 would be exempted from the tax. O Minimum wage proposal: The President is seeking to minimize the adverse economic impact of an across-the-board increase in the minimum wage, and to keep job opportunities available for youth and those seeking to enter the economic mainstream. His proposal is: -- A 27 percent increase in the minimum wage over three years to $4.25 for most workers. -- Maintaining the current $3.35 minimum for all new employees of a firm on the job for less than six months, regardless of age or previous employment. -- An increase in the small business exemption to include all firms, not just retail and service establishments, with gross sales under $500,000. -- An increase in the tip credit from 40 percent to 50 percent. The President's pledge to veto an excessive increase in the minimum wage has gained strong support in both Houses of Congress. International Trade: The Administration broke a logjam in international trade talks which had existed since late 1988. In breaking the stalemate, the United States advanced its proposal to correct and prevent trade distortions in agriculture. This clears the way for negotiations that -- if 3 successful over the next 20 months -- will greatly expand rules governing free and open trade. O Agricultural initiatives: -- The announcement of additional advance deficiency payments of 10 percent available to producers of wheat, feed grains, rice and upland cotton. -- The establishment of a top-level Working Group on Rural Development to focus on an action-oriented agenda. 4 SEIZING INTERNATIONAL OPPORTUNITIES FOR PEACE The Administration's policy of peace through strength is working. As he prepares for both the 40th Anniversary of NATO in Brussels and the economic summit in Paris, President Bush has undertaken a number of foreign policy initiatives to maintain America's position of world leadership. ACTION BY THE ADMINISTRATION: Bipartisan accord: On March 24, the President signed the Bipartisan Accord on Central America with top leaders of the Congress. The agreement sets out the broad outlines of a strong and effective U.S. policy in the region: Humanitarian aid: Congress has agreed to support the Administration's request for continued humanitarian assistance for the Nicaraguan Democratic Resistance at current levels through the elections in Nicaragua scheduled for February, 1990. Democracy and Regional Peace: The burden of proof is on the Sandinista government to do something it has steadfastly refused to do from 1979 to 1989: keep its promises to its people and its neighbors. If those pledges of democracy and peace continue to be violated, we hope and expect that other nations will find ways to join us to condemn those actions. But if those promises are kept, we have an opportunity to start a new day in Central America. Support for reform in Poland: The Polish people are now taking concrete steps which deserve our active support. Those reforms include the legalization of Poland's heroic trade union movement, Solidarity, and were recognized by President Bush's initiative, which contained eight steps to support Polish political and economic reforms: The President is asking the Congress to join him in providing Poland access to our Generalized System of Preferences, which offers selective tariff relief to beneficiary countries. We are working with our allies and friends in the Paris Club to develop sustainable new schedules for Poland to repay its debt, easing a heavy burden so that a free market can grow. : The President is also asking Congress to join him in authorizing the Overseas Private Investment Corporation to operate in Poland. The President is proposing negotiations for a private business agreement with Poland to encourage cooperation between U.S. firms and Poland's private businesses. The U.S. will continue to consider supporting, on their merits, viable loans to the private sector by the International Finance Corporation. 5 The President supports the Roundtable agreements that clear the way for Poland to be able to work with the International Monetary Fund on programs that encourage sound, new, market-oriented economic policies. The Administration is also encouraging business and non-profit groups to develop innovative programs to swap Polish debt for equity in Polish enterprises; and for charitable, humanitarian and environmental projects. The President will support imaginative educational, cultural and training programs to help liberate the creative energies of the Polish people. Bilateral meetings: The President has met with a total of 34 foreign leaders while in office, including a series of 18 bilateral meetings during the trip to Emperor Hirohito's funeral. President Bush has met with leaders from the Middle East, including Prime Minister Shamir of Israel, President Mubarak of Egypt and King Hussein of Jordan. A dialogue has begun with the Soviet Union. Secretary Baker met with Foreign Minister Shevardnadze in March, and these talks will continue when the two meet next in Moscow Inter-American Development Bank: The Bush Administration successfully concluded negotiations which will lead to a substantial increase in the Bank's resources. The resulting $22.5 billion in lending over the 1990-93 period will support development efforts in major Latin American debtor countries as well as the smaller countries of Central America and the Caribbean. Initiative on Third World Debt: The President's initiative to strengthen the international strategy on Third World debt has already received broad international support from both industrialized and developing countries. The approach is designed to promote sustained growth in developing countries by: Emphasizing sound market-oriented economic policies in debtor countries, particularly measures to promote investment and repatriation of flight capital; Increasing the focus on debt and debt service reduction to complement new lending by commercial banks; Using resources from the World Bank and International Monetary Fund to catalyze voluntary debt and debt service reduction by the commercial banks. GATT: In the Uruguay Round of GATT trade negotiations, the Administration has made substantial progress toward reducing trade barriers to U.S. exports. Policy reviews: President Bush has ordered a comprehensive review of foreign policy and defense strategies, soon to be completed. 9 eradication programs, such as Operation Polar Cap, a federally led effort which broke up a $1.2 billion drug money-laundering operation. The President strongly supports the death penalty for drug kingpins who commit drug-related murders, and will appoint judges who will strongly enforce the drug penalty laws. The Administration imposed a temporary suspension of imports of certain types of semi-automatic weapons, and has undertaken an emergency study to identify the best means of reducing drug-related killings and other violent crime. Public housing: The Bush Administration is working to make public housing drug free, to protect the rights of the vast majority of decent, law-abiding public housing residents. The Department of Housing and Urban Development has acted: -- To modify its lease and grievance procedures to facilitate eviction of those involved in drug related criminal activity; -- To make drug use and trafficking a lease violation subject to eviction proceedings; To target federal assistance to anti-drug security measures; -- To revoke federal housing subsidies from those dealing in drugs; --- To involve the private and voluntary sectors in efforts to rid public housing of drugs and give residents, especially young people, a stake in their communities and their futures. In addition, the Office of National Drug Control Policy has responded to the drug emergency in the District of Columbia: I A Metropolitan Area Task Force will be expanded, with 57 additional representatives from federal agencies, and state and local police from D.C., Maryland and Virginia. -- More prisons: The federal Bureau of Prisons will take custody of 250 inmates from the D.C. jail, and work to locate land for construction of a new prison. Enforcement: The FBI will provide support to D.C. police in investigations of drug-related murders. Rehabilitation: The National Institute on Drug Abuse will provide assistance in local treatment efforts and will be authorized to establish three new outpatient clinics by 1990. Prevention: The Department of Education will provide the District with 50 percent more funds for drug prevention programs in city schools. The Department of Labor will work with the business community to increase job training for youth, and will provide a $100,000 grant to establish employee assistance programs for drug abuse. 10 WORKING FOR A KINDER, GENTLER AMERICA CHILD CARE The changing nature of American society heightens the need for quality, affordable, accessible child care. President Bush wants to put choice in the hands of parents so that they -- not government -- have the power to select the best and safest environment for their children. ACTION BY THE ADMINISTRATION: Child care: The President has proposed a child care package, the "Working Family Child Care Assistance Act of 1989" which: : Provides a new refundable child care tax credit of up to $1000 per child under four, for low and moderate income working families. -- Makes the existing Child and Dependent Care Tax Credit refundable. -- Does not discriminate against religious- and family- based child care. The President has directed Secretary of Labor Dole to study the market for liability insurance to determine if liability issues impair child care. Head Start: The President has also transmitted legislation to the Congress which would increase the FY 1990 authorization for Head Start by $250 million; this will pay for enrollment of up to 95,000 more four-year-olds in the program. NATIONAL SERVICE President Bush has said that "From now on in America, any definition of a successful life must include serving others." ACTION BY THE ADMINISTRATION: Office of National Service: The President established in the White House the Office of National Service to lead the Administration's national service movement. This Office will identify effective community service models and encourage others to duplicate them across the country. It will challenge individuals, schools, businesses, civic and service groups, religious institutions and other entities to expand existing community service programs and to create new ones. The goal of this Office is to make service to others a central part of every American's life, and in so doing, to help to ameliorate the urgent ills which fray the fabric of American society. The Office will recommend changes in national social and economic policy to promote and encourage 11 service, including tort law reform, welfare law reform and housing, to name a few. Presidential Proclamation: In signing the proclamation commemorating National Volunteer Week, April 9-15, the President challenged every American who cares about the future of this country to engage in some meaningful form of community service. He awarded 18 Presidential Awards to those chosen from nearly 2000 applications -- to winners who embody the ideals of goodness, compassion and concern for others. WELFARE REFORM The Administration has developed a major new education and job training program to help recipients of Aid to Families with Dependent Children move off welfare and become economically self- sufficient. ACTION BY THE ADMINISTRATION: Welfare reform: The Administration issued proposed rules on April 18 to implement the major provisions of the Family Support Act of 1988. The proposed rules are designed to: : Target job training assistance to those who are most likely to benefit and who are most at risk for long- term welfare dependency. -- Provide maximum level of flexibility to AFDC parents in obtaining the type of child care that best suits their needs, consistent with the Administration's legislative proposals on child care. JOBS Program: The Administration is proposing to spend $3.3 billion over the next five years implementing the JOBS program. The changes will pay benefits in the future by reducing the number of individuals on welfare. It is estimated that 138,000 families will be able to leave welfare rolls over the next five years as a result of this program. EXPANSION OF MEDICAID The Administration is committed to health care for the disadvantaged, calling for full funding of Medicaid, $37.6 billion for FY 1990, an increase of $3.3 billion, or 9.6 percent over the FY 1989 level. ACTION BY THE ADMINISTRATION: Expanding Medicaid: On April 18, the Administration forwarded to Congress proposed legislation to make federal programs better serve pregnant women, infants and children. The legislation would expand significantly the population 12 Medicaid serves, making Medicaid available to 1.9 million more women when they became pregnant. The legislation would: -- Increase by 374,000 the number of pregnant women and children eligible for Medicaid. -- Foster greater participation in Medicaid by eligible pregnant women by providing services to pregnant women who are presumed eligible for Medicaid before a formal eligibility determination is made; and by requiring States to operate outreach programs in areas of high infant mortality. -- Entitle all children under age 6 who are receiving Food Stamps to Medicaid coverage for immunizations. -- Make the Federal match rate for State administration expenses a uniform 50 percent by gradually reducing special administrative match rates ranging from 75 to 100 percent. The savings that would result would allow the legislative eligibility changes proposed by the President to be implemented within the current program's spending level. HOUSING/HOMELESSNESS President Bush has taken a number of steps to create an "opportunity society" of jobs, growth, housing and hope for Americans in need of a helping hand. ACTION BY THE ADMINISTRATION: Homelessness: A proposal to provide over $1 billion in federal resources to help end homelessness and pave the way to jobs, permanent housing, health care and human dignity. President Bush's proposal calls for fully funding the McKinney Homeless Assistance Act and for a new $50 million matching grant program to promote public/private partnerships to assist homeless families and the mentally ill. Enterprise zones: A call for enactment of enterprise zone legislation, to give urban and rural areas the opportunity for jobs and hope for the future. President Bush asked Congress to enact labor and capital-based incentives to create jobs and entrepreneurial activity in our most distressed communities. Affordable housing: A commitment to making housing more affordable for low-income families, and to provide homeownership opportunities to the poor and young families just starting out. President Bush proposes to assist 109,000 new families in need of low-income housing, and has pledged to maintain assistance to those families already being helped. President Bush has also signalled his commitment to empowering poor residents of public housing to become homeowners through resident management and ownership of public housing. 13 ETHICS AND CIVIL RIGHTS High ethical standards and civil rights for all Americans are central to this Administration, and we will enforce them -- strictly, comprehensively, fairly, and to the letter and spirit of the law. ACTION BY THE ADMINISTRATION: O Ethics: The President issued an Executive Order creating the President's Commission on Federal Ethics Law Reform. On March 9, the Commission filed its report and its recommendations to the President. Legislation was sent April 12th to the Congress, and the President issued an Executive Order announcing ethical principles for the conduct of executive branch employees. The President's proposals include: -- A ban on outside earned income for non-career Presidential appointees in the executive branch, including all employees in the immediate White House Office. -- Expanded financial disclosure for all three branches of government. -- Prohibition of the conversion of political contributions for personal or office use. -- A comprehensive review of federal campaign finance laws, including an assessment of the impact of PACs on parties, competition and political debate. The President believes that PAC contributions to candidates should be eliminated, and he will be consulting with the Congress on this issue. President Bush is also opposed to federal funding of congressional campaigns. -- Deferral of tax liability when an individual is required by his or her agency to divest assets in order to avoid conflicts of interest. : Strengthened rules against abusing the revolving door for private gain at the expense of the public trust. These rules also apply to the legislative branch. -- A 25 percent pay raise for federal judges was proposed in separate legislation submitted April 12, while the ethics reform legislation restricts their acceptance of honoraria. President Bush believes that honoraria for Members of Congress should be banned; however, the President will not formalize that proposal until after he consults with Congress on that issue and their pay raise. He will include in that discussion the question of a pay increase for certain executive branch positions. : The extension of the Independent Counsel statute to cover the Congress. -- The extension of the federal statute that prohibits employees from taking actions that enhance their own financial interest to cover legislative and judicial branch employees. 14 -- The establishment of an independent ethics office for the Congress, to be headed by a clearly nonpartisan official, confirmed by both houses. : The application of the existing one-year post- employment "cooling-off" period for senior executive- branch employees to the legislative and judicial branches. Whistleblower protection: The President supports public servants who revere the trust placed in them by the American people. On April 10, the President signed S. 20, the "Whistleblower Protection Act of 1989. " This law will strengthen the protections and procedural rights available to those federal employees who report misdeeds and mismanagement. : This new law will enhance the authority of the Office of Special Counsel, and whistleblowers will also now be allowed to take their cases to the Merit Systems Protection Board. -- The statute alters the legal burdens of proof, making it easier for employees to be vindicated when they are wrongfully penalized by their supervisors for whistleblowing activities. Civil rights: The Administration has taken a number of actions to protect the civil rights of all Americans, including several court actions in key civil rights cases. : On March 8, the Department of Justice endorsed the objectives of the Hate Crimes Bill and voiced no opposition to the bill's enactment. The Hate Crimes Bill provides for the collection of data about crimes motivated by race, religion, ethnicity or sexual orientation. : On March 13, Attorney General Thornburgh announced the filing of Federal housing discrimination lawsuits seeking monetary damages and civil penalties under the expanded enforcement authority of the Fair Housing Amendments Act of 1988. # # # housing projects, and, with the D.C. police, will tighten security and maintenance at projects. Rehabilitation: The National Institute on Drug Abuse will provide assistance in local treatment efforts and will be authorized to establish three new outpatient clinics by 1990. Prevention: The Department of Education will provide the District with 50 percent more funds for drug prevention programs in city schools. The Department of Labor will work with the business community to increase job training for youth, and will provide a $100,000 grant to establish employee assistance programs for drug abuse. Strengthened rules against abusing the revolving door for private gain at the expense of the public trust. These rules also apply to the legislative branch. A 25 percent pay raise for federal judges, while restricting their acceptance of honoraria. President Bush believes that honoraria for Members of Congress should be banned. However, the President will not make that formal proposal until after he consults with Congress on the question of a congressional pay raise. He will include in that discussion the question of a pay increase for certain Executive Branch positions. The extension of the Independent Counsel statute to cover the Congress. The extension of the federal statute that prohibits employees from taking actions that enhance their own financial interest to cover legislative and judicial branch employees. The establishment of an independent ethics office for the Congress, to be headed by a clearly nonpartisan official, confirmed by both houses. The application of the existing one-year post-employment "cooling-off" period for senior executive-branch employees to the legislative and judicial branches. Community Service A Thousand Points of Light In his inaugural address, President Bush said: "I have spoken of a thousand points of light - of all the community organizations that are spread like stars throughout the nation, doing good. The old ideas are new again because they are not old, they are timeless: duty, sacrifice, commitment, and a patriotism that finds its expression in taking part and pitching in." The President aims to build a better America not just through government programs but through a nationwide community service program. The President's program has three elements: - Call on all individuals and institutions to take steps to address society's problems. - Identify, enlarge and multiply effective volunteer efforts. - Discover and encourage new leaders. In 1989, President Bush announced the formation of a foundation called the Points of Light Initiative. Each day the foundation recognizes individuals and group efforts that are improving America's communities. - Through a foundation project called ServNet, groups will be asked to donate the services of some of their most talented people for a period of time. - Another foundation project, ServLink, will improve existing methods of matching volunteers with service opportunities. Says House Republican Whip Newt Gingrich: "No government bureaucracy will win the war on drugs, or nurture a generation of educated, hard-working citizens in the inner city. Only an outpouring of civic energy and commitment can bring about that level of change in individuals, families, and communities." Between 1980 and 1988, private philanthropy funds increased from $48.7 billion to $104.4 billion - a 53 percent increase after inflation. (1990 Statistical Abstract, p. 372) Agriculture Strengthening America's farmers By pursuing sound fiscal and monetary policies, the administration wants to provide a stable business environment in which farmers can borrow at affordable interest rates. The administration supports a 1990 Farm Bill that increases the competitiveness of American farmers and ranchers and maintains a safety net. The President's proposed cut in the capital gains tax rate would apply to the sale of farm- land. This tax cut can keep American agricul- ture dynamic and prosperous. The President encourages alternative uses of farm products like éthanol and other new fuels. The President knows that productive agricul- ture can be compatible with a sound environ- ment. In 1990, the federal government will spend nearly a third of a billion dollars on research and technical support for farmers that will help stop the contamination of land and water and make farming practices consistent with environmental protection. The President's "America the Beautiful" initiative will establish a new reforestation program to plant more than a billion trees a year. Many countries subsidize production and export of agricultural commodities or curb imports. The administration has submitted a comprehensive proposal for reforming world agricultural trade. The proposal calls for a worldwide phase-out of export subsidies in five years and other trade-distorting subsidies in ten years. Health Care Toward a healthier America "The future health of our citizens is heavily dependent upon our success in four major areas: We must develop an appropriate and effective health policy; we must contain medical costs; we must continue to make advances in biomedical research and biotechnology; and we must encourage increased personal responsibil- ity for health and disease prevention." - Dr. Louis Sullivan, Secretary of Health and Human Services. (Roll Call, 3-26-90, p. 15) The United States spends more of its gross domestic product (GDP) on health care than any other industrialized country (FY91 Budget, p. 185). We spend 11.2 percent, compared with 8.6 percent in Canada, and 6.8 percent in Japan. In 1970, spending on mandatory health programs took up about 5 percent of federal budget outlays. In 1995, that figure is projected to reach 15 percent. Accelerating the pace of health research The President supports an expanded program of basic research in the Department of Health and Human Services. The President's budget proposes an 18 percent increase for all federal HIV/AIDS programs. Health care reform The President proposes to restructure physi- cian payment in the Medicare program and extend use of "prudent purchasing" principles to secure the best value for Medicare beneficiar- ies and taxpayers alike. The President's policy encourages "managed care," the coordinated delivery of medical services through an organization (such as an HMO or a preferred-provider organization) that assures quality care. The President supports a new program to evaluate medical technologies and strengthen existing quality assurance programs. Environment A conservationist tradition The Republican Party has a long tradition of protecting our nation's environment. Teddy Roosevelt, a great Republican president, was the father of the conservation movement in America. Roosevelt said we should "use [our natural resources], but use them so that as far as possible our children will be richer, and not poorer, because we have lived." Today, we again have a Republican president who is committed to preserving the environment. President Bush's environmental policy: five principles 1) Sound ecology and a strong economy can coexist and, indeed, help one another. We must harness the power of the marketplace in the service of the environment. 2) Protecting the environment will take more than just federal action. We must expand creative state, local and private environmental initiatives. 3) Preventing pollution is far more efficient than cleaning it up once it's occurred. We must focus on technologies that reduce or prevent pollution. 4) Protecting the environment is a global concern. Because pollution respects no borders, international cooperation is essential. 5) Environmental laws must be vigorously enforced. Polluters will pay. The Environmental President: President Bush's proud record President Bush has already made great strides in fulfilling his pledge to be the environmental president. His administration has: Proposed the first major rewrite of the Clean Air Act in 13 years. The new Clean Air Bill will reduce emissions that cause acid rain, smog and air pollution. Launched a $1 billion a year research pro- gram on global climate change. Proposed to elevate the Environmental Protection Agency to cabinet-level status while expanding its programs by 12 percent. Added three quarters of a billion dollars this year alone to clean up hazardous waste at federal facilities. Promoted the use of cleaner alternative fuels, which has already prompted several major oil companies to begin marketing reformulated gasoline. Proposed a worldwide phase-out of chlo- roflourocarbons (CFCs) by the year 2000 to protect the ozone layer. Launched the "America the Beautiful" initiative to plant a billion new trees a year in America. Banned all U.S.-African ivory imports to help protect the elephant population. Set a goal of "no net loss" of wetlands for our country. Crime President Bush has said: "My vision for the '90s is an America where punishment is at least as tough as the crime." (Address to conservative leaders, 4-26-90) The President has called upon Congress to pass his four-part crime program, which: I. Strengthens current laws by: - Restoring an enforceable death penalty. - Curbing plea bargaining. - Toughening penalties for those who commit crimes with firearms. II. Strengthens law enforcement by: - Hiring additional law enforcement officers. - Reforming the "exclusionary rule" to allow evidence to be admitted if the searching officers acted in good faith. III. Strengthens criminal prosecution by: - Hiring additional prosecutors. - Reforming habeas corpus procedures to reduce the strain on federal courts. IV. Strengthens the prison system by: - Expanding prison construction. - Converting unused federal property for use as federal prisons or jails. Republican leadership gets tough on criminals Between 1960 and 1980, liberal policies eroded the justice system. In 1960, there were 299 prison commitments for every 1,000 adult arrests for serious crimes. By 1980, that figure had plunged to 196 (Bureau of Justice Statis- tics, Prisoners in 1988, April 1989, p. 6). Not coincidentally, crime and victimization soared during these two decades. Starting in 1980, the GOP's "get-tough-on- crime" philosophy started to take hold: Result: By 1987, the state prison commitment rate was up to 301 per 1,000 arrests. And the victimiza- tion rate had fallen. The American people want to get tougher on crime Seventy-two percent support the death penalty for murder, up from 54 percent in 1980. (CBS poll concluded 4-2-90) Seventy-nine percent think that criminals currently get off too easily in court. (Gallup poll 6-21-89) Defense The Republican Record The triumph of democracy and the collapse of communism are a result of a decade-long Re- publican policy of peace through strength. Re- publican policies of the '80s rebuilt our defenses and made the world a safer place for our children. Accomplishments include: The INF treaty. For the first time in history, an entire class of nuclear missiles was elimi- nated. A U.S.-Soviet agreement, in principle, to reduce their respective strategic nuclear arsenals. A continuing commitment to the Strategic Defense Initiative (SDI) to protect against a missile attack. Negotiations on conventional armed forces (CFE) with the Soviet Union. President Bush has proposed lowering the number of troops in the CFE treaty to 195,000. President Bush's Open Skies initiative, which savings of over $35 billion and will guarantee will allow frequent aerial observation of partici- protection of America and her allies. pating nations, is being negotiated. This is an old policy with a renewed importance, repre- senting unprecedented access to and trust of Germany and NATO the Soviet Union. The United States supports the reunification President Bush and Soviet President Gor- of East and West Germany and its continued bachev have signed an agreement to destroy membership in NATO. The alliance must most of the U.S. and Soviet chemical weapons remain as a cornerstone of free nations of the West. by 2002. Production of such weapons will cease. The future The fundamental U.S. security goal is to preserve our freedom. As recent events have reduced the threat of a Soviet/Warsaw Pact attack in Europe, both President Bush and Defense Sec. Dick Cheney are carefully plan- ning a transition to peacetime defense. Sec. Cheney has cautioned, "Intentions can change overnight - defense capabilities last a long time." A strong America is essential to global stability. The Bush administration will work to continue successful arms control negotiations. A six-year program will realign the defense budget. This year's defense plan will produce Housing And Homeless President Bush's housing policy: providing HOPE The President's forward-looking plan for housing is called HOPE - Home ownership and Opportunity for People Everywhere. HOPE encompasses four principles: 1. Empowering poor families to achieve self- sufficiency and have a stake in their communi- ties. President Bush is proposing HOPE grants to provide funds for resident management and home ownership in public housing, government- held vacant and foreclosed properties and financially distressed properties. President Bush seeks to increase funding for the Urban Homesteading program, which turns over government-held properties to cities that then provide them at nominal cost to moderate- income families. 2. Expanding housing opportunities for moder- ate-to-low income families and young families just starting out. The HOPE initiative would allow first-time home buyers to withdraw funds from their IRAs without penalty. HOPE includes Housing Opportunity Zones, Fiction: There are as many as 5 million home- a program to target federal incentives to those less people. distressed communities that best remove tax Fact: One homeless person is one too many. In and regulatory barriers to affordable housing. 1980, the National Academy of Sciences esti- 3. Helping end the tragedy of homelessness. mated the number at 650,000, the Urban Institute found 570,000, and the General The President supports full funding of the McKinney Act, which provides for a wide Accounting Office - an arm of Congress - put the number between 300,000 to 600,000. variety of programs of aid to the homeless. (Warren Brookes column, The Washington The President proposes a new "Shelter Plus Times, 10-3-89) Care" program to help the homeless mentally ill or recovering substance abusers. 4. Creating jobs and economic opportunities in distressed inner cities and rural areas. HOPE would create 50 enterprise zones to encourage job creation and attract seed capital for business development. It will provide for a zero capital gains tax rate on tangible invest- ments in enterprise zones. Liberal fictions about housing and homelessness Fiction: Housing assistance was cut during the 1980s. Fact: Between 1980 and 1990, outlays for housing assistance increased from $5.6 billion to $16.3 billion - more than an 80 percent increase after inflation. (FY90 Historical Tables, p. 70; FY91 Budget, p. A-296) Child Care President Bush on child care: "My philosophy with respect to child care is to put choice in the hands of parents not in the hands of the state. I will build a policy around parental choice. Particularly we must find a way to put a greater range of choices in the hands of low-income parents - because they face the greatest difficulty in meeting the demands of work and family." ("Building a Better America," 2-9-89) The President's proposal A new refundable Child Care Tax Credit for low-income working families of up to $1,000 for each child younger than age four. Refundability of the current Child Care and Dependent Care tax credit. Principles of the President's proposal Parents know best Parents are best able to make decisions about their children's care and should have the discretion to make these decisions. New federal support for child care should go directly to parents. Federal policy should not discriminate against parents who work at home. Federal policy now neglects the contributions and sacrifices made by two-parent families in fight against that. [The House Democrats' bill] which one parent stays at home to care for the would cost nearly $30 billion, three times our children. original proposal, and force, compel many Parental choice must increase. states to change their rules. So let's expand the horizons of our kids, not the budget of the Federal policy should increase, not decrease, bureaucracy, and through tax incentives give the range of child-care choices available to families the help that they need to solve their parents. Parents should be free to select care child care problems themselves." (Address to from relatives, neighbors, churches, schools, conservative leaders, 4-26-90) employers or other sources. We must target families most in need. Poor families should receive benefits commen- surate with their needs. Most child care is family care. (FY91 Budget, P. 194) In families with an employed parent, 43 percent of children younger than six are cared for by mothers who do not work outside the home. Of under-five children whose mothers do work outside the home, 48 percent are cared for by relatives. "Family day care homes" account for 24 percent. Child care centers, including preschools, enroll only 22 percent of these children. President Bush scores Democratic "alternatives" "I will not see the option of religious-based child care restricted or eliminated. We're going to Science And Space Investing In Competitiveness Keeping America's scientific lead In 1988, American government and industry spent a total of $132 billion on research and development - more than the combined R&D spending of France, West Germany, Britain and Japan. In relation to their overall economies, however, these countries and the U.S. each spent about the same, roughly 2 1/2 percent of their GNP. Industry accounted for half of America's R&D spending in the 1980s. R&D had a direct rate of return of 30 percent - three times higher than for physical capital. Encouraging private research and development President Bush believes that research yields new knowledge, products and processes that make America more competitive in interna- tional markets, foster economic growth, and improve the quality of life for all Americans. The President is taking the lead on three fronts: Proposing to make permanent the 20 percent tax credit targeted to encourage research and experimentation. Pursuing better international protection of intellectual property. Endorsing changes in product liability laws to help restore balance to the tort system, increase competitiveness, reduce uncertainty and - proceeding with technology development for provide incentives to produce safe products. the National Aerospace Plane. Increasing federal research Industrial policy: another and development misguided liberal dream The President is committed to doubling the Some liberal Democrats have called for an budget of the National Science Foundation by "industrial policy" in which the federal govern- 1993. ment picks specific technologies for special tax treatment or subsidy. The President is working to continue Ameri- can leadership in space exploration, including: The Bush administration believes the best - Funding of further Space Shuttle flights; way to support the development of civilian technology is by improving private incentives, - Development of Space Station Freedom; and not by trying the impossible job of second- - Planning exploration of the Moon and Mars. guessing consumer decisions. Strengthening federal science and technology policy On April 20, 1989, the President established the National Space Council, chaired by Vice President Quayle. The President established the Council on Competitiveness, also chaired by Vice President Quayle, to oversee regulatory and other com- petitiveness issues. Manned mission to Mars The President has lifted the sights of the space program with his call for a manned mission to Mars. He is: - supporting greater efforts for launching robotic science missions; - accelerating the technology and advanced launch systems to support planetary exp- loration; and Civil Rights The President's commitment to a better America "And our challenge today is to take this demo- cratic system of ours - a system second to none - and make it better. A better America where every one of us enjoys the same opportu- nities to live, to work, and to contribute to society. And where, for the first time, the American mainstream includes all of our disabled citizens. (President's 1990 State of the Union Address) Protecting the civil rights of all Americans The President called upon Congress to reauthorize the Commission on Civil Rights. Following congressional action, the President signed legislation reauthorizing the Commis- sion through FY 91. The President endorsed and signed the Hate Crimes Bill, which provides for the collection of data about crimes based on prejudice. Attorney General Thornburgh filed federal housing discrimination lawsuits seeking monetary damages and civil penalties under the Fair Housing Amendments of 1988. The President is committed to policies that would extend civil rights protection to disabled Americans. Because of President Bush's policies, two- thirds of black Americans approve of the way he is doing his job. (NBC poll, April 1990) Opportunity and progress the 1968 fair housing law in the Senate. Between 1986 and 1988, black enrollment in As Vice President, George Bush supported independent colleges and universities increased the Fair Housing Amendments of 1988, which by 7.1 percent (U.S. Department of Education strengthened anti-discrimination housing laws. figures, reported by The New York Times, (3-30-90). Economic progress Since the beginning of the economic recovery, black employment has grown by more than two Since the beginning of the economic expan- million. (Economic Report of the President 1990, sion in 1982, the median income of black p. 333) households has increased 11.8 percent after inflation. The median income of Latino house- President Bush, has appointed more Asian holds has increased 9.4 percent. (1990 Statisti- Americans to senior administration jobs - at cal Abstract, p. 444) least 30 - than any previous administration. - Between 1980 and 1988, according to the Since 1982, the percentage of black house- Census Bureau, the Asian population of the holds making more than $50,000 a year (1988 constant dollars) has doubled - from 4.9 United States grew by 70 percent. Asian- Americans numbered about 6.5 million in percent to 9.9 percent. (U.S. Census, Monday 1988, up from 3.8 million eight years earlier. Income, p.24) (The New York Times, 3-2-90) In 1989, the first Cuban-American was elected to Congress: Republican Ileana Ros- Lehtinen of Florida. The Republican Record Without the support of key Republicans in the '60s such as Senate Minority Leader Ever- ett Dirksen, crucial civil rights legislation would not have become law. As a Texas congressman, George Bush was one of a handful of Southern lawmakers to vote for the fair housing law of 1968. Republican Senator Edward Brooke of Massachusetts, the only black member of the U.S. Senate during the 20th century, sponsored Savings and Loans President Bush acts To protect the savings of millions of Ameri- cans, President Bush led the effort to pass the Financial Institutions Reform, Recovery and Enforcement Act of 1989. The law sets tough standards to ensure that such a crisis never happens again. President Bush has reaffirmed his commit- ment to tough action against S&L fraud: "We will not rest until the cheats and the chiselers and the charlatans spend a large chunk of their lives behind the bars of a federal prison." (Washington Post, June 23, 1990) The Department of Justice has achieved results in its war on financial institution fraud, including 791 major fraud convictions in 1989. President Bush supports legislation to provide additional enforcement tools that will allow the government to step up the attack on financial institution fraud. A total of 220 agents are being added to the battle, and the President has asked Congress for an additional $25 million for the IRS and Justice Department for investigators and prosecutors. Congress had the responsibility Before 1989, Congress had provided that every major regulator, except the Comptroller of the Currency, be independent of the presi- dent and accountable primarily to Congress. Asleep at the wheel: The Democratic Congress William Proxmire, former chairman of the Senate Banking Committee, said that members of Congress "were just plain lulled to sleep" The result: The Democratic Speaker helped while the problem was growing. The S&Ls cause one of the greatest financial problems in "went down fast, and Congress didn't react soon our history. enough." (St. Louis Post-Dispatch, May 23, 1989) Republicans called for action In 1984, the Bush Task Group on Regulation of Financial Services recommended comprehen- sive reform of the regulatory system. In 1986, the administration asked Congress to replenish the funds of the Federal Savings and Loan Insurance Corporation (FSLIC), which protected savings accounts and which was facing insolvency. Democrats stalled The Reagan administration proposed legisla- tion to carry out the Bush Task Force reforms, but the Democratic Congress refused to move the legislation. It took Congress two years to enact legisla- tion to protect small savers by shoring up FSLIC. Democratic Leadership: making things worse As House Majority Leader, Jim Wright, once took the FSLIC bill off the House calendar to pressure the regulators to change their stand on a matter affecting a big Dallas real estate syndicator. Democrat Wright also: - Sought to have at least two federal regula- tors removed from office. - Intervened on behalf of a Democratic Party official who had been banned from the thrift industry for regulatory violations. Education Administration leads education reform President Bush has said that "our progress won't be measured by bureaucracies built and dollars spent. It will be measured by results, and by what our children learn and accom- plish." (Remarks on Teacher of the Year Award, 4-4-90) President's education summit sets national goals For the first time in U.S. history, a president convened the nation's governors to address education. In February, President Bush and the nation's governors agreed that by the year 2000: Every child must start school ready to learn. The high school graduation rate must top 90 percent. Students must show competency in English, math, science, history and geography. American students will lead the world in math and science achievement. Every adult will know how to read, possess the skills necessary in a competitive global economy, and have the knowledge necessary to exercise the rights and responsibilities of citizenship. Every school will be free of drugs and vio- lence and instead offer a disciplined setting for learning. President Bush has said: "I believe that excel- lence comes from higher standards, a greater accountability, and more freedom to move 90). Most people agree that we need to make within a school system" (Address to conserva- further progress, but that score represents an tive leaders, 4-26-90). President Bush's Educa- improvement from the 1980 level of 890. tional Excellence Act calls for a restructuring of High School graduation up: In 1988, 76 the educational system by providing: percent of the population aged 25 and over had Presidential Merit Schools: Awards to schools completed high school, compared with 69 that make progress in raising achievement, percent in 1980. (Digest, p. 4) fighting drugs and reducing dropout rates. Teacher salaries improve: Between 1980 and Presidential Awards to excellent teachers. 1988, the average salary (constant 1987-88 Short-term aid to districts establishing dollars) of elementary and secondary teachers magnet schools. increased from $24,000 to $28,000. (Digest, p. Alternative teacher certification programs. 77) A National Science Scholars program to encourage top high school students to under- School choice is the wave take college work in science, math or engineer- of the future ing. Sustaining black colleges: Matching funds to Educational excellence comes from higher historically black college and university endow- standards, greater accountability and more ment fundraising. freedom to move within a school system. - By a 2-to-1 margin, Americans support letting parents choose which public school their Spending alone will not children will attend. (Gallup poll, The Washing- solve our problems ton Post, 8-25-89) Between 1963 and 1980, federal spending for elementary and secondary education increased by 328 percent after inflation. (Historical Tables, FY90 Budget, pp. 63-65) During this time of increasing federal spend- ing, average combined SATs fell from 976 to 890. (Digest of Education Statistics 1989, p. 120) The increased federal effort failed because American education had strayed from the basics: reading, writing and respect. Recovering from the mistakes of the '60s: Republican leadership points the way SAT scores improve: In 1989, combined SAT scores averaged 903 (The Washington Post, 5-3- Peace and Freedom The triumph of democracy Will any of us ever forget the stirring sights of 1989? First, we witnessed peaceful revolutions in Poland and Hungary. Then, the tremors set off by the falling of the Berlin Wall upended communism in East Germany and Czechoslova- kia. Now change has come to the Americas - to Panama, to Nicaragua, perhaps to Cuba. These events, which President Bush calls the "Revolu- tion of '89," are miraculous, but not accidental. They are, in part, due to steady leadership. It is no accident that under Republican leadership, one billion people of the earth found freedom. Contrast this to the almost daily humiliations of the era when liberal Democrats were in power - the steady encroachment of Marxist- Leninism in the Americas, the growing tension within the Western alliances. The Republican Record: a safer and more peaceful world Successive Republican administrations have promoted peace and freedom around the globe. In 1990, after a decade of Republican leader- ship, about 3.2 billion (about 66 percent) of the world's population are free. In January 1979, only about 2.2 billion (about 55 percent) of the world's population lived free of communist tyranny and military dictatorship. Republican presidents have also cultivated a new, more peaceful relationship with the Soviet Union. The historic INF agreement has elimi- nated an entire class of nuclear weapons and has paved the way for further arms-reductions agreements. By January 1990, 17 countries in Latin America could be considered democratic. In the 1970s, only seven Latin American and Carib- bean nations could boast of open or democratic societies. Panama Camp David Summit Then there is the restoration of democracy in President Bush's June 1990 summit meeting Panama. On Dec. 20, 1989, President Bush sent with Soviet President Gorbachev was a success- U.S. forces to protect American lives, restore ful step toward relaxing tensions and establish- the democratic process, preserve the integrity ing closer relations between the Soviet and of the Panama Canal Treaties and decapitate American peoples. the outlaw regime of Manuel Noriega. The Bush administration signed a landmark U.S. Forces were withdrawn less than two agreement that will eventually eliminate both weeks after the operation began and Manuel nations' chemical weapons stockpiles. Noriega turned himself over to U.S. forces on - Other accords between the two nations Jan. 3, 1990. include agreements on cultural exchange, environmental issues, civil aviation and mari- Nicaragua time transportation accords, customs accords Democracy also triumphed in Marxist Nicara- and trade agreements, including an accord gua. Presidents Reagan and Bush lent their bolstering U.S. grain sales. unfailing support to the Nicaraguan freedom fighters, helping to bring about free elections in German reunification Nicaragua and a stunning end to the Sandin- President Bush is standing firm for support of a ista regime. united Germany as a member of NATO. Grenada The People's Republic of China With the support of other nations in the region, President Bush is working to preserve the United States liberated the island nation of America's important relationship with the Grenada from communist dictatorship. people of China. Reform will be encouraged through open lines of communication and trade. Libya President Bush condemns the repression of Action was taken against state-sponsored the Chinese people and therefore suspended terrorism by raiding Libyan bases in 1986. governmental sales and commercial export of weapons. Eastern Europe The "Revolution of 1989," the overthrow of communism in Eastern Europe, was a funda- mental victory for Republican foreign policy. Both the Berlin Wall and the Warsaw Pact came tumbling down. In Poland, Czechoslova- kia, East Germany, Bulgaria and Romania, people clamored for political and economic freedom. The survival of fledgling democracies is a priority of the Bush Administration. In Novem- ber 1989, the United States enacted a $938 million aid package to Poland and Hungary. Drugs President Bush has said. "Congress needs to provide tough laws to deal with a tough prob- lem. Working together, we can - we will defeat this scourge. America has earned her victories through determination and desire." (Santa Ana, Calif., 3-2-90) President Bush's national drug control strategy 1. Attack the drug market at the source and on the street. Extend the death penalty to: - Major drug kingpins; - Drug kingpins who attempt to kill to obstruct justice; and - Federal drug felons whose crimes result in death. Hire additional prosecutors, law enforcement officers and court personnel. Help the Andean countries fight drug produc- tion. Step up efforts to eradicate domestic mari- juana. Improve interdiction at our borders. 2. Treat the drug user. Increase drug treatment grants to the states. Triple assistance to "crack babies." 3. Prevent drug use through efforts in schools, workplaces and communities. Strengthen drug-free workplace require- ments for federal contractors and grant recipients. Increase outlays for prevention efforts. Strong public support dropped to 35.4 percent - still far too high, but the lowest figure since the National Institute on Sixty-nine percent of Americans approve of Drug Abuse (NIDA) surveys started in 1975. the way President Bush is handling the drug (L.A. Times, 2-14-90) problem. (Gallup poll, 1-17-90) After a continuous increase since 1986, the Sixty-three percent say President Bush has number of cocaine overdoses reported by made "some" or "a lot of" progress in dealing hospital emergency rooms in major cities held with the drug problem. (Gallup poll, 1-17-90) steady from late 1988 through the third quarter of 1989. (Baltimore Sun, 2-8-90) Republican leadership points the way to better law enforcement According to the NIDA, 37 million Americans used illicit drugs during 1985. By 1988, that Responding to presidential leadership, federal, number had fallen to 28 million. (NIDA release, state and local authorities have started crack- August 1989) ing down: The proportion of adults aged 18 to 25 who In 1989, federal agents seized 181,000 used marijuana at least five times a month pounds of cocaine - three times the amount dropped from 18.7 percent in 1977 to 6.9 they seized in 1986. (The New York Times, percent in 1988. (Morbidity and Mortality 4-22-90) Weekly Report, 4-20-90) In 1988, state and local authorities made Between 1979 and 1988 the proportion of 289,000 arrests for sale or manufacture of high school seniors aware of the risks of regular drugs - more than twice the number of arrests marijuana use increased from 42 percent to 77 they made in 1984. (Bureau of Justice percent. (MMWR, 4-20-90) Statistics, Drug and Crime Facts 1989, p. 8) In 1987, 78 percent of suspects in drug cases were prosecuted, up from 73 percent in 1980. This was a higher rate than for any other crime category. (BJS, Drug and Crime, p. 9) The number of suspects prosecuted for drug offenses increased from 7,000 in 1980 to 18,000 in 1987 - an increase of 153 percent. (BJS, Drug and Crime, p. 9) Progress: drug abuse reduced The War on Drugs is not yet won. Any level of drug use is too high. And the crack problem is still causing havoc. But thanks to tougher Republican policies, signs of progress are appearing: In 1989, the proportion of high school seniors who reported using drugs within the last year Trade President Bush has extended the fight against drugs to Latin American trade policy. In November 1989, President Bush proposed Opening world markets the Andean Trade Initiative to orient regional nations away from the drug trade by expanding President Bush's trade policy has a clear legitimate trade opportunities. goal: to create a world where open markets are based on free and fair trade practices. Mexico - Republicans believe that trade wars kill jobs, President Bush is committed to creating new and free trade creates jobs. With the walls of jobs and opening new markets between the isolation being torn down around the world, United States and Mexico by negotiating a free- now is not the time to build a protectionist wall trade pact. around the United States - as many liberal President Bush and Mexican President Democrats would. Carlos Salinas will conduct formal talks in : - America needs free trade, fair trade and December 1990, in Monterey, Mexico. Conclu- more trade. Protectionism is a problem, not a sion of a free-trade pact would coincide with an solution. invitation to Canada to join in the arrange- ment, creating a North American free-trade zone stretching from the Arctic Circle to Cen- Highlights: the Republican Record tral America. Aggressive Republican leadership has im- proved our international trade position. With Eastern Europe U.S. exports steadily increasing, the trade President Bush has promoted the transfor- deficit was cut by 28 percent between 1987 and mation of centrally planned economies to 1989. (exports minus imports-customs value). market-oriented economies. (Economic Indicators, p. 35 April 1990) President Bush's $938 million economic aid The Bush administration has been a leader in package to Poland and Hungary is a success. In tariff negotiations, promoting open markets Poland, the switch to a market economy is around the world. working. Inflation has dropped from 80 percent in January 1990 to 5 percent in March. President Bush has created an interagency Future economic agreements will continue to group to assure that U.S. trade interests are stimulate and protect new opportunities for represented in the 1992 European Community. U.S. business. The Bush administration has The Bush administration has encouraged proposed a complete overhaul of the system for commercial banks to reduce the debts of devel- controlling high-tech exports to allow access to oping countries. Mexico, the Philippines and Western technology. Costa Rica have reached debt-reduction agree- ments with U.S. banks under President Bush's debt plan. The administration will enforce and use U.S. trade laws to best advance the goals of open markets and fair trade. American competitiveness in the global market place is being promoted by Vice Presi- dent Dan Quayle as chairman of the Council on Competitiveness. Soviet Union Japan Both the Malta and Washington summits President Bush is ensuring that Japan, the have improved economic ties between the two world's second largest market, opens to U.S. superpowers. President Bush will continue to business and operates competitively. The Bush link trade with progress in political and eco- administration's successful identification of nomic reforms. market opening priorities under the 1988 Trade - The Malta Summit began negotiation of a Act has won trade concessions from the Japa- new trade agreement, including GATT observer nese. President Bush has ensured open mar- status for the Soviet Union. New accords signed kets for satellites, supercomputers and forest at the June 1990 Washington Summit will products. Under President Bush's administra- triple airline capacity between the two nations tion, Japan has been removed from the list of and increase Soviet purchases of U.S. grain countries with unacceptable trade barriers. from 9 million tons to 10 million tons annually. China President Bush supports genuine efforts to bring fundamental, free-market reforms to the America's outrage at the tragedy of Tian- anmen Square was expressed by Congress and Soviet economy. by sanctions promptly enacted by the Bush - President Bush offered Soviet President Administration. These sanctions remain Mikhail Gorbachev the opportunity to achieve unchanged. Notwithstanding, the President has "Most Favored Nation" status, providing the repeatedly made it clear that these actions Soviet government passes liberalized emigra- were never designed to hurt the Chinese tion reform laws. The President said: people. "I want to see Lithuania have its freedom. We The President extended "Most Favored are committed to self-determination for the Nation" trade status with China because it was Baltic states. And although I take great pleas- in the best interest of the U.S. and the Chinese ure and joy and am pleased that the emigration people. Discontinuing MFN could cost the U.S. of Soviet Jews is at an all-time high, I want to $6 billion a year in trade as well as inadver- see unfettered emigration." (The Washington tently damage the Hong Kong economy, which Times, 6/8/90) stood to lose 20,000 jobs and $10 billion in Trade with the Soviet Union has rebounded trade. Many of our trading partners - includ- in the last two years. Bilateral trade soared to ing the United Kingdom, Japan, and even over $4 billion in October 1989, compared with Taiwan - urged that MFN be retained. $2.6 billion during the same period in 1988. The people of China who trade with the Agricultural exports alone tripled during the United States are the engine of reform, the same period. opening to the outside world. The President believes: "Our responsibility is best met not by Canada isolating those forces from contact but by An historic tariff-free zone has been created by keeping open the channels of commerce and U.S.-Canada Free Trade Agreement (FTA) that communications." has stimulated growth, boosted incomes and increased the competitiveness of firms in both Latin America nations. During 1989, the first year of the President Bush has expanded and developed agreement, goods and services trade exceeded open markets in the Caribbean and Latin $200 billion. America. Brazil, Argentina, Colombia and Venezuela have liberalized their trade policies. The Economy Investing in America Investment is soaring. Between 1980 and Sustaining record growth: 1989, real net private domestic investment rose longest peacetime expansion from $153 billion to $216 billion (1982 dollars) - a 41 percent increase. (Economic Report of Thanks to Republican economic policy, the President 1990, p. 313) America is enjoying the longest peacetime expansion in history. Unless congressional Between 1980 and 1989, real business expen- Democrats scuttle the recovery with their big- ditures for new plant and equipment increased spending policies, each month this year will set from $333 billion to $450 billion (1982 dollars) a new record for the length of peacetime eco- - a 35 percent increase. (Statistical Abstract nomic growth: July represents the 92nd month 1990, p. 538) of consecutive growth. Between 1980 and 1989, the economy grew Capital gains by almost a third. Real gross national product President Bush proposes to cut the tax rates (1982 dollars) rose from $3.187 trillion to on capital gains for long-term investments. $4.144 trillion - an increase of nearly one trillion dollars. (Economic Indicators, April A cut in the capital gains rate would foster 1990, p. 2) growth and increase competitiveness of Ameri- can businesses. The tax rate on capital gains in - The real growth in gross national product the United States now tops that of any other has amounted to $3,800 for every man, industrial country except Australia and Great woman and child in the United States. Britain. Both Australia and Great Britain, however, index capital gains for inflation, thus The great American job machine effectively reducing their tax rate. Since the expansion started in late 1982, the economy has created more than 21 million new Protecting Social Security jobs. (Economic Report of the President 1984, p. President Bush is determined to protect the 263; Economic Indicators, April 1990, p. 14) steadily accruing Social Security trust fund - The economic expansion produced five new from raids on its reserves. jobs every minute. Seniors have made progress against poverty. - Inflation hit a 16-year low. Since 1970, the poverty rate among people age 65 and over has been cut in half. (Census, In 1989, the civilian unemployment rate was Money Income, p. 60): 5.3 percent - the lowest annual average since 1973. In 1980, the last year the Democrats 1970 24.6% controlled the White House, the unemployment 1980 15.7% rate was 7.1 percent and rising. (Economic 1988 12.0% Report of the President 1990, p. 339) - If the Democrats' 1980 unemployment rate had prevailed in 1989, an additional 2.27 million Americans would have been out of work. Checking inflation half the level of 1983. (CBO, Economic and Budget Outlook, January 1990, pp. 33, 123) The most common measure of inflation, the consumer price index, rose by a modest 4.8 Article I of the Constitution gives the power percent in 1989. In 1980, when Democratic of the purse to the House of Representatives, policies were choking the economy, the inflation which has been ruled by the Democrats for rate rose to 13.5 percent, nearly three times as nearly 36 years. large. (Economic Indicators, April 1990, p. 24) - Inflation increased each year the Democrats Helping families and individuals were last in the White House. President Bush endorses Family Savings Ac- - If the Democratic inflation rate had lasted counts. He has proposed that withdrawals throughout the 1980s, prices today would be made after 7 years should be tax-free. 108 percent higher. President Bush is helping home buyers. The Republican Democratic administration has proposed a waiver of the 10 price price percent excise tax penalty for early withdrawal of up to $10,000 from Individual Retirement Loaf of Bread $0.93 $ 1.93 Accounts. The withdrawn funds would have to Toothbrush $1.09 $ 2.27 be used for first-time home purchases. Sport Shirt $22.00 $45.76 Color TV $300.00 $624.00 Democratic policies devastated American New Car $13,000.00 $27,040.00 families. Between 1978 and 1982, real median family income (1988 dollars) fell from $32,006 to $28,727. Republican policies have restored Lower interest rates prosperity to the family. Between 1983 and 1988, real median family income increased from As Jimmy Carter was cleaning out his desk $29,307 to $32,191. (U.S. Census, Money in December 1980, the prime interest rate hit Income and Poverty Status in the United States 21.5 percent. In 1989, the prime averaged 10.87 percent, about half the Democratic level. 1988, p. 11) (Economic Report of the President, 1984, p. 299; Between 1980 and 1988, the share of Ameri- Economic Indicators, April 1990, p. 30) can households with incomes under $15,000 (1988 dollars) fell from 29.4 percent to 27.3 percent. Meanwhile, more and more Americans Controlling the budget climbed into higher income levels. The share of President Bush is facing the budget issue households with incomes over $50,000 rose squarely. In May, he began a budget summit from 15.8 percent to 20.8 percent. (U.S. Census, with congressional leaders of both parties, with Money Income, p. 23) the primary goal of maintaining peace and Between 1980 and 1989, real per capita dis- increasing prosperity. posable personal income (1982 dollars) rose 20 President Bush supports a line-item veto and percent. (Economic Indicators, April 1990, p. 6) a balanced-budget amendment. Although the poverty rate rose in three of the In fiscal 1989, the budget deficit stood at 2.9 four Carter years, it fell in six of the first eight percent of GNP - still too high, but less than Republican years.