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FOIA Number: 2006-0462-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the William J. Clinton Presidential Library Staff. Collection/Record Group: Clinton Presidential Records Subgroup/Office of Origin: Speechwriting Series/Staff Member: Terry Edmonds Subseries: OA/ID Number: 10982 FolderID: Folder Title: EITC [Earned Income Tax Credit]/Min. Wage Stack: Row: Section: Shelf: Position: S 0 0 0 0 PRESIDENT WILLIAM J. CLINTON REMARKS ON THE MINIMUM WAGE BRIEFING ROOM July 9, 1996 This is a very good day for America's working families. Today's vote by the Senate means that there will be a minimum wage increase this year. A 90 cent increase in the minimum wage will honor our most basic values: work and family, opportunity and responsibility. It will help working people without hurting our economy. It is the right thing to do. Today, the minimum wage is not a living wage. You can't raise a family on $4.25 an hour. This restores the bipartisan commitment that the minimum wage will keep pace with the cost of living. This action will directly benefit millions of hardworking Americans. 60% of minimum wage workers are women. More than a third are the sole breadwinners in their households. Over 2 million children live in poor or near-poor families where a worker will now get a raise. I am gratified that a bipartisan majority of the Senators rejected a killer amendment that would have stopped this bill. This provision would have been a powerful incentive for employers to push employees out of their jobs after six months. It would have locked millions of Americans into lower real wages. The way has now been cleared to final passage of a minimum wage increase. I call on Congress to send me a final bill quickly so American workers can get their raise as soon as possible. There is no reason minimum wage workers should have to wait any longer for their raise. It is no time to "nickel and dime" working families. Our economy is now the sturdiest it has been in decades. We have seen 10 million new jobs, the unemployment rate at 5.3%, 3.7 million new homeowners, and rising real hourly wages for the first time in a decade. Now we must make sure that all Americans have the opportunity to share the benefits of our growing economy. This has been a tough fight, but working families have won a remarkable victory. Today's vote by the Senate will make it possible for more of our people to reap the rewards of hard work. Again, I thank the members of the Senate who took this step, and I look forward to signing it into law. ### 7-8-97 (C) Quinn/Chirwa memo on Supreme Court's July 1 denial of cert in Texas V. Hopwood. History. Hopwood challenged the UT Law School's "dual-track" admissions program which used lower numerical admissions standards for minority candidates than for non-minority candidates. The district court held the program unconstitutional, and the law school abandoned it in favor of an admissions program fashioned after the Court's 1978 ruling in Bakke which approved the use of race as a factor. Although the constitutionality of the law school's new admissions program was not at issue before it, the 5th Circuit affirmed the district court's ruling, and held that contrary to Bakke, universities may not take race into account when making admissions decisions if the goal is simply to further diversity. Cert Petition. In filing for cert, Texas did not appeal the lower courts' judgments that the law school's original "dual-track" admissions program was unconstitutional, but requested that the Court overturn the portion of the 5th Circuit ruling regarding the inapplicability of the Bakke holding. DOJ filed an amicus brief in support of cert urging the Court to declare that Bakke remains the law of the land. Supreme Court. Although the Court declined to hear the case, the concurring opinion by Justices Ginsburg and Souter acknowledged the issues raised by the 5th Circuit's ruling regarding the vitality of Bakke. They did not view Hopwood as the appropriate case to resolve those issues, however, because the constitutionality of the law school's current admissions program was not squarely at issue before the Court. (D) Gibbons memo on Japanese support for science. The GOJ is embarking on a & major expansion of federal support of research. By the year 2000, they plan to have a $37 billion non-military science and technology budget (about the same dollar level as the U.S., and double their 1992 budget). "While we are focused on the struggle with Congress to protect our S&T budget, I also urge that we take great care in our own budget planning Under current Administration projections we are headed for a substantial retreat in support for S&T. For the first time in history, Japanese government spending on S&T could eclipse our own federal research investments." E Rasco follow-up on FDA review of Myotrophin. Carol is monitoring the FDA approval process of the drug which may benefit June Davison, wife of Fred Davison, and others with ALS. The FDA has granted patients and doctors early access to the drug while it remains under study. Cephalon Inc., the manufacturer, expects demand for the drug to exceed supply, and therefore is planning to distribute it through a lottery and has set up a toll-free number to register patients for the lottery. Carol has forwarded this news to the Davisons. (F) Tyson memo on Pete Peterson's Atlantic Monthly article. Laura forwards a detailed assessment of the piece in response to your inquiries. (G) Sec. Reich memo on "GI Bill of Rights." He forwards a recommended statement. We have forwarded copies to Laura Tyson, Don Baer and Gene Sperling. (H) Sec. Reich's July 2 National Press Club speech, "Nickel-and-Diming America's can Working Families." He suggests that it may be useful for a radio address. "(8 all a they good THE PRESIDENT HAS SEEN 7-8-96 MEMORANDUM TO THE PRESIDENT From: RBR 96JUL5 PI:22 Date: July 3, 1996 RE: "GI Bill of Rights" You may want to make a statement like the one I have attached. Attachment A year and a half ago I proposed replacing our bureaucratic system of job training with a market-based system. I asked Congress to consolidate the federal government's 70 different job-training programs and give people who had lost their job vouchers instead, up to $2,600 worth, which they could cash in at a local community college or technical institute and get the training they needed, when they needed it. Participating institutions would issue "report cards" on how they were doing placing people in new jobs, so that laid- off workers could be wise shoppers. Local businesses, educators, and citizens from their communities would oversee one-stop career centers, where workers could get career guidance. Last fall it looked like we had a good, bi-partisan effort going. But then something happened. For over 6 months, the other side simply disappeared into negotiations with themselves. The product that emerged a few weeks ago is a real disappointment. Vouchers have shrunk to little pilot projects. There are no report cards at all. In fact, there are no standards -- most of the training dollars simply go to state bureaucracies, with no accountability. There are no local workforce development boards. And our hugely successful School-to-Work apprenticeship program (in which over a half million young people are now involved, with 100,000 participating businesses) would be terminated. What happened? The idea was hijacked by the radical right -- by Phyllis Schlafly and her Eagle Forum. [...] If Congress sent me a bill tomorrow which did all the things we set out to do -- consolidate programs, offer vouchers and report cards, create community-based workforce development boards, and continue our School-to- Work program -- I'd sign it in a heartbeat. UNITED STATES DEPARTMENT OF LABOR OFFICE OF THE SECRETARY 712 To: 96 JUL 3 P12: 00 Fr: RBR Urehi. for Sat. radiv address? THE PRESIDENT HAS SEEN 7-8-96 WORKING FOR AMERICA'S WORKFORCE For Release Nickel-and-Diming America's Working Families Robert B. Reich U.S. Secretary of Labor The National Press Club Washington, DC July 2, 1996 The day after tomorrow, families across this land will engage in our annual celebration of the American Dream. Next week, the United States Senate will decide whether that dream is to be available to all hard-working families. Struggling working families are the unspoken heroes of America. Mothers and fathers, working long hours at tough jobs, sometimes doing two shifts. Doing work that's hard on muscles and joints. Doing what needs to be done: Janitors, maids, child-care workers, cashiers, busboys, fork-lift operators, gas-station attendants. The people who vacuum the boardrooms, file the papers, answer the phones, serve the food, cut and sew the clothing, empty the bedpans, pick the crops, sweep the halls. These are the invisible workers of America. Over ten million of them earn less than $5.15 an hour. And they are the voiceless workers of America. They are not what the Beltway types like to call a "special interest." There is no National Association of Working Poor on K Street to lobby their cause in the halls of Congress. These are the people who sit at kitchen tables late at night figuring out which bills they must pay, which can let slide a few more weeks. Hoping they or their kids stay healthy because they can't afford to see a doctor. Worrying that their golden years will go sour because they have no pension. They're not on welfare, although some come dangerously close. They don't need a capital gains tax cut, because they have no capital. They don't need a "medical savings account" because they can't afford to save. They simply work hard -- very, very hard -- and play by the rules. Today, in the most powerful nation on the planet, in the most successful economy in the world, almost one out of ten working families lives in poverty. 1 National productivity is up. Corporate profits are up. Unemployment and inflation are down. So far under our watch 9.7 million new jobs have been created -- most of them paying well. This economy is doing better than it has in three decades. But millions of struggling families are in danger of being left behind. And that's why the fight now being waged in Washington is so important. -- We're proud of having expanded the earned income tax credit for 15 million hard- working, low-wage families. But the other side wants to contract it. -- We want to protect the extra overtime pay on which so many hourly workers depend, and at the same time give working families the flexibility to take overtime as extra leave. But they want to give employers -- not employees -- the right to decide whether and when extra leave should substitute for extra pay. -- We want to crack down on sweatshop employers who cheat their workers out of hard-earned wages. But they continue to cut the number of workplace inspectors. -- We want to expand opportunities for working people and their children to get the education and skills they need -- including at least two years of free tuition at an average community college. The other side seeks to cut funds for education and job training. -- We want to give poor working women safe, affordable child care. But they disagree. They won't provide the child care that poor women need in order to move from welfare to work. -- We want to preserve and protect the right of hardworking people to seek a better life by forming unions and bargaining for better wages and benefits. The other side wants to gut this right by allowing companies to set up sham unions. Perhaps no issue better dramatizes the plight of struggling working families -- and the struggle here in Washington to help them -- than the President's effort to pass a modest 90 cent increase in the minimum wage. We want to raise the minimum wage because $4.25 an hour-- $8,500 a year -- is not a fair wage. The other side disagrees. Who are these invisible workers, who would benefit if the minimum wage were raised? More than two-thirds are adults. Almost 60 percent are women. More than a third are the sole breadwinners in their households. 2 Talk about family values. We recently found that some 2.3 million children live in poor or near-poor families where a worker would get a raise if the minimum wage were increased 90 cents an hour. The minimum wage is nearing a 40 year low in terms of real purchasing power. The last increase, five years ago, has been all but wiped out by inflation. 97 percent of it already gone. But the other side continues to fight, delay, obstruct, do whatever possible to deny hardworking families this modest 90-cent adjustment for inflation. Let me tell you what they're up to now. Raising the minimum wage is so popular with the American public, who recognize it as an issue of basic fairness, that the other side wants to set things up next week so that they can seem to be voting in favor of it. Don't be fooled. It's a cruel shell game. They plan to amend it with a series of exceptions whose net effect will be to deny this 90-cent-an-hour raise to millions of workers. Here's shell game Number One: They propose to exclude anyone who's in a job less than six months. Because low-wage workers change jobs so often, the practical effect of this would be to deny a raise to 42 percent of workers who would otherwise get one: That's four million working people. 1 And you don't need to be a rocket scientist to know that this provision will create a powerful incentive for employers to push people out of jobs before the 6 months is up. The President will veto any bill with this cynical amendment. Shell game Number Two: They want to exclude anyone employed by a company with less than half a million dollars in yearly earnings This is much broader than the small business exclusion in current law. Workers in fully two-thirds of all businesses would be denied a raise. Another guaranteed veto. Shell game Number Three: They want another six month delay -- until January 1997. Remember it's been nearly a year-and-a-half since the President first offered his minimum wage proposal. In fact, the second installment of that raise -- to $5.15 an hour -- would be taking effect this week if the other side hadn't blocked it. Another six months will cost a minimum wage worker $878. When you're making only $8,500 a year, $878 makes a big difference. Another reason to veto. They are pushing other mean-spirited exclusions. Consider this one, directly from the pockets of the restaurant industry: They want to deny any increase to tipped employees like waiters and waitresses. That's two million people right there who wouldn't get a raise. 1 Tabulations from the Current Population Survey. See Appendix A. 3 So this is their response to the invisible workers of America: Here's 90 cents -- unless you re among the excluded millions, who will be locked into a minimum wage at a 40-year low. Enough of this pettiness. Stop nickel-and-diming America's struggling working families. The economy is strong. People at the top are doing better than ever. You've delayed and obstructed long enough. Vote a clean 90 cent increase in the minimum wage, and do it as soon as you return next week. Let us resolve this Fourth of July weekend that the American dream will be available to every American who puts in a hard day's work. And when the Senate returns next week, let them honor the people who do the work that keeps America going. ### 4 Appendix A Percentage of Hourly Paid Workers by Hourly Wage Rate and Tenure with Current Employer. (16 years and over, Total reporting specific tenure; February 1995) $4.25 Total $4.25 to $5.14 1 year or less, Total 35.5% 76.6% 66.8% 6 months or less 20.4% 54.4% 42.3% 0 to 1 month 5.5% 15.3% 12.1% 0 to 3 months 11.2% 32.5% 24.2% More than 1 year, Total 64.5% 23.4% 33.2% Source: Unpublished tabulations from the Current Population Survey. Note: The percentages in this table are based on data from the February 1995 Contingent Work supplement to the Current Population Survey (CPS), which included data on employer tenure. Due to differences in sample, imputation, and weighting, the estimates of the number of hourly workers and of those at or around any specific wage level based on this supplement differ somewhat from the figures derived from the basic monthly CPS earnings sample. Also, estimates of the number of hourly paid workers and those at particular wage levels are known to vary during the course of the year due to seasonal fluctuations in the labor force. Seasonality likely affects job tenure patterns as well; however, tenure data are only collected in occasional supplements to the CPS. Minimum Wage Increase: Who Benefits? U.S. Department of Labor July 2, 199 Kids benefit Пi 2.34 million kids in poor or near-poor families Including: П TT 1.52 million kids in poor or near-poor families with only a single bread-winner Each icon = 100,000 Source: Economic Policy Institute, based on 1995 Current Population Su Minimum Wage Increase: Who Benefits? U.S. Department of Labor July 2, 199 Families benefit 1.19 million families with children ......................... Each icon = 100,000 Source: Economic Policy Institute, based on 1995 Current Population Su 720,000 families with no children ############## 1.39 million single adults all have somthing to contribute. Divorce or separation are simply not an option for our national family. When a child is gunned down on a street in the Bronx, no matter what our race, he is our child. When a woman dies from a beating, no matter what our race, she is our sister. Now, on October 16, 1995 we are confronting two Americas. Under my watch, I will do everything in my power to see that soon there is only one. One America under the rule of law; one justice system; equal opportunity; one America. We mst begin How do we get there? By recommitting ourselves to the values that have stood us so well for so long: opportunity and responsibility. mst do met Let us begin with opportunity. It is obvious that we we still have a big job to do in equalazing opportunity in this country. And frankly, it is becoming more difficult because of the current rush to dismantle many of the basic economic protections we put in place over the past 50 years. Take the minimum wage for example. Today, a person who works full-time at the minimum wage brings home only $8,500. It's just not enough to support a family. Its real value today is 27 percent lower than it was in 1979. If we do not raise it this year, it will be at a 40-year Anners all low. We need to raise the minimum wage so that more people, black and white can raise their children in dignity and security. crurs, The same thing can be said about our efforts to give tax relief to 14 million low-income, working Americans. Ronald Reagan called the Earned Income Tax Credit "The best anti-poverty, the best pro-family, the best job creation measure to come out of Congress. " So why are we fighting to keep it alive? Why is there even a question about the EITC, Medicare, Medicaid, college loans? They are our best guarantee of equal opportunity, for they help people help themselves. Lor the tools may need to Head start Responsibility is a two-way street. And nowhere is this more important than in our efforts to promote public safety and us preserve the rule of law. Citizens must respect the law and those let must not who enforce it. And police have a life and death responsibility to never abuse the power given them by the people. On this covenant, our vision of law and order rests. Fahrhood mrs, Finally T out to spede to met abt anter, very specific area or There's another area of responsibility I want to talk about The single biggest social problem our society faces is the absence of fathers. One child in four grows up in a home without a father. Without a father to nurture, without a father to teach, without a father to care, without a father to teach boys to be men and to teach girls to expect respect from men. This is not only a black problem or Latino problem or a white problem, it is an American problem. 4 untress I know this in my own life. My father died before I was born. My stepfather fought a lifelong battle with alcohol that stopped him from being the father I needed. But as an adult, a father in turn, I did what illions of men do every day. I know what it's like to stay up until dawn rocking a sick child, and I know what it's like to watch my child go out to play -- a child whom I would defend with my life -- and know that there may be danger down the street. I've done all of this I've made my mistakes I know that it isn't easy: building a family is the hardest job a man can do. But it is also the most important. That is why I honor the hundreds of thousands of black men marching in Washington as a demonstration of their commitment to themselves, their families and their communities. They understand that, while we all have responsibilities to each other, it is they who hold the key to their progress in this country. That is why I honor the millions more at home. Men of every color who day-in and day-out do what it takes to be good fathers. That is why I say to all men, wherever you are today: step up and be the kind of father you needed and wanted and, if you were lucky, actually got. I say to those men who have never met their children: reach out to your them. Be there for them. Your child, your flesh and blood, needs you. And I say to those men who send money to support their kids in keeping with their promises: Keep sending those checks. Your children need them. We'll enforce the law and catch you if you stop. But your money is no replacement for your nurturing, your caring, and your loving your child. That yn + And I say to those men who go home every night and love and care for their children. I say to them as President, as a father, as a man, and as a former fatherless child: God Bless you. Ld rowlar, is all wat we are me all too Fathers, mothers, brothers, sisters -- Americans of all races, let us remember our commitment to each other. We have no better areat man withed we example than the man who walked, not only this campus, but the dirt roads, the main streets, and the inner cities of this queat not why country. Lyndon Johnson lived a life dedicated to the promise of equality of opportunity and compassion for all. He said, "I want to be the President who helped to end hatred among his fellow men and who promoted love among the people of all races and all regions. " If President Johnson were here today, we could tell him that though we may not have realized that dream, we will not rest until it is made real. Yes, mere or men in Some voices would undermine our progress by selling short the great character of the American people. But they will not win 5 me great role models pust and present who will lead is In vah 01 reguts ness: Name are. T unt to syle art the day. We will win the day. And, with your help, that day will come soon. Thank you and God bless you all. 6 DRAFT 10/14/95 11:00 am PRESIDENT WILLIAM J. CLINTON REMARKS FOR THE LIZ CARPENTER LECTURE COLLEGE OF LIBERAL ARTS UNIVERSITY OF TEXAS AT AUSTIN OCTOBER 16, 1995 Acknowledgments: [The First Lady spoke in 1993] ; President Robert Berdahl ["Bird-All"] Bernard Rappaport [chairman, Board of Regents] Nicole Bell [student; introduces you] Chancellor Bill Cunningham; Barbara Jordan; Lucy Johnson; Congressman Pickle; Sheldon Eklund [Dean of Liberal Arts]; Jane Cummings {Chairperson of Students Distinguished Lectures]; Gary Mauro; and, most of all, Liz Carpenter. Liz said she has a file of letters longer than War and Peace inviting me to come here. [This plays off joke in Liz Carpenter's intro.] We all know she didn't need anything that long. When she asked me to come to Austin, I knew I was going. After all, anyone whose life has been touched by this remarkable woman -- a woman who worked side-by-side with President and Mrs. Johnson, who mastered the White House press corps, who reared not only her own children, but, at the age of 70, her late brother's teenage children, too -- knows there is one word that is simply not in her vocabulary, and that word is "no." Come to think of it, I don't know all that many Texans who take "no" for an answer. My dear friends and fellow Americans, in recent weeks every one of us has been made aware of a simple fact. We have been made aware of it so clearly that there is absolutely no excuse to avert our eyes: white Americans and black Americans often see the same world in drastically different ways. The issue is not the outcome of any one event but, rather: What can we do now? First, while many hearts are sore, let us take a moment to give thanks for the fact that we have made progress up that mountain Dr. King described. Remember, it was not so long ago that our neigborhoods, businesses, schools, jobs, and voting booths were closed to many Americans simply because of the color of their skin. It was not so long ago that there were hardly any people of color serving in our state houses, our school boards, our city halls, and even our Congress. No one can deny that we are doing better. have ame a day Reconciliation is the great dream of the American people. We mayo should not underestimate its power. That power fueled the civil rights movement of the sixties and motivated the sanitation workers in Memphis in 1968 who stood bravely with their leader, Dr. King, wearing the sober faces of men who simply wanted to 1 raise their families. The placards they held said sumply, "I am a Man. " Second, let me tell you today that the racial debate we are having today is not a setback for us, but a great opportunity -- one that we cannot let pass us by. Some of our best moments as Americans have come when we have had the courage to face the truth about those times when we have failed to live up to our own best ideals. That act is not one of weakness, but of proud American optimism. These confrontations with the truth bring about what historians call "open moments. " At such turning points, Americans moved against slavery, struggling away from the horror that one American could hold another captive; they moved to embrace women's suffrage, recognizing at last that we don't have an American to waste. These moments left us with a legacy of greatness because we looked in the national mirror and were brave enough to say: "This is not who we are. We are better than that. " (mdet As the Great Emancipator said, "A house divided upon itself cannot stand. " The two worlds we see now each contain both truth and distortion. And what I am going to do today is tell the truth about racism to both black and white America. Only this kind of honesty will bring about the many acts of reconciliation that will unite both these worlds into one America. word dryped Here is where the worstnof black Americans have some merit: the justice system has a history of racial abuses, ranging from the Scottsboro case to Emmett Till to Rodney King. Police forces in some of our towns and cities reveal persistent vestiges of the bad old days. hay onto We know that African American males are many times more likely to be the victims of homicide than any other group in this country. And there are still more African American men in our prisons than in our colleges. A report released just the other day revealed not fn that nearly one in three African American men in their twenties the were either in jail, on parole, or otherwise under the supervision of the criminal justice system. Nearly one in three. If one in three white men were under criminal justice wet supervision, the nation would declare a national emergency. We must first face and then erase that ugly truth. There is anguy something beyond wrong when a law-abiding black father has to Makes tell his law-abiding son to fear the police whose salaries are paid by his taxes. not Second, and even more fundamental: there is great economic disparity between blacks and whites. It is fashionable to talk about African Americans as if they were part of a protected class. Many whites think blacks are getting more than their fair share in jobs and promotions. The truth is African Americans 2 still make an average of 60 percent less than white people. More than half of African American children live in poverty. Clearly, we must do better. Here is where the worst of white fears have some merit. There is a fear of the violence that is too prevalent in urban areas. There is legitimate fear of a few black leaders who -- in contrast to the vast majority of African Americans -- want to play on hatred and venom to do the work of inspiration. Finally, there is the fear that African Americans will not be able to see white people as more than enemy faces, all of whom carry a sliver of bigotry in their hearts. This gap between the two realities is unacceptable for the functioning of a democracy, for our growth and prosperity, and for our service as a light unto the rest of the world. As Dr. King said, "We must learn to live together as brothers, or [we will] perish as fools." But having recognized one another's real grievances, I now say: that is not enough. We must also take responsibility for ourselves. No one can complain about bad treatment without also cleaning out their own house. To white America I say: clean your house of racism. Too many destructive ideas are gaining currency in your midst. The taped voice of one policeman should fill you with outrage. Stand up and be heard denouncing this sort of rhetoric so loudly and clearly that your black fellow citizens can hear you. White racism may be black people's burden, but it is white people's problem. Again I say: clean your house. Black America -- I honor the presence of millions of men in Washington today committed to personal responsibility and I call on you and your brothers and sisters across this nation to clean your house: Step up to your responsibilities as parents. Step up to your responsibilities as role models. Step up to your responsibilities as citizens. You do have a stake in the American Dream. But let me be clear: One million men are right to be standing up for personal responsibility. But one million men do not make one man right if his message is one of division and hate. No good house was ever built on a bad foundation. Nothing good ever came of hate. too There are many today -- white and black, on the left and the right, on street corners and on the radio waves -- who for their own purposes SOW division. To them I say: this must end. We are all one family. One family. Not just neighbors, not fellow citizens; not separate camps; but family: white, black, latino, men, women, able-bodied, disabled. No matter our differences, we ^ 3 DRAFT 10/13/95 PRESIDENT WILLIAM J. CLINTON REMARKS FOR THE LIZ CARPENTER LECTURE COLLEGE OF LIBERAL ARTS UNIVERSITY OF TEXAS AT AUSTIN OCTOBER 16, 1995 Acknowledgments: [The First Lady spoke in 1993] ; Bernard Rappaport [chairman, Board of Regents/introduces you]; President Bob Berdahl [Bird-all] Chancellor Bill Cunningham; Barbara Jordan; Lucy Johnson; Congressman Pickle; Sheldon Eklund [Dean of Liberal Arts]; Jane Cummings [Chairperson of Students Distinguished Lectures]; Gary Mauro; and most of all, Liz Carpenter. Liz said she has a file of letters longer than War and Peace inviting me to come here. [This plays off joke in Liz Carpenter's intro. ] We all know she didn't need anything that long. When she asked me to come to Austin, I knew I was going. After all, anyone whose life has been touched by this remarkable woman a woman who worked side-by-side with President and Mrs. Johnson a woman who mastered the White House press corps a woman who reared not only her own children, but, at the age of 70, her late brother's teenage children, too anyone who knows Liz Carpenter knows there is one word that is simply not in this woman's vocabulary, and that word is "no." My dear friends and fellow Americans, today I want to talk about the issue of race in America. In recent weeks, it has become apparant to many of our citizens that there is a deep, widening, and dangerous divergence in the way African Americans and White Americans view our national community. As I have said many times, diversity is the great strength of America. We literally don't have a person to waste. And the worst thing we can do at the dawn of the 21st century is to drift apart. I have seen and confronted racial division from all sides all my life. Eliminating it is one of the driving passions of my service to America. I share the frustration of so many good Americans who want to see us finally conquer the sickness of racism. But unfortunately, racial division is still a fact of life in America. And all of us have a responsibility to do something about it. Dignity and reconciliation is the great dream of the American people. We should not underestimate the power of that dream. That was the power that fueled the civil rights movement of the sixties. That was the power of the sanitation workers in Memphis who stood bravely with their leader, Dr. Martin Luther King, wearing the sober faces of men who wanted to raise their families. Wearing placards around their necks that simply said, "I am a Man." 1 Lyndon Johnson understood this when he said in 1965, "I want to be the President who helped to end hatred among his fellow men and who promoted love among the people of all races and all regions and all parties." I want to be able to tell Lyndon that he may not have realized that dream, but we have not forgotten it and we will not rest until it is made real. It is true that there are many voices that would undermine our progress by fundamentally misreading and underestimating the character of the American people. But they will not win the day. We will win the day. Peace and harmony will win the day. It is important to identify the barriers to the achievement of racial harmony. I believe they are two-fold. First, we must face the fact of the great economic disparity that still exists in this country between Blacks and Whites. It is fashionable these days to talk about African Americans as if they were part of a protected class, protected by Affirmative Action and other social perks. Many Whites think that Blacks are getting more than their fair share in terms of jobs, promotions, and a helping hand. The truth is African Americans still make less than 60 percent on average of what Whites do in this country. More than 50 percent of African American children live in poverty. We also know that African American males are many times more likely to be the victims of homicide than any other group in this country. And there are still more African American men in our prisons than in our colleges. Two days after the country was riveted by the O.J. Simpson verdict, another verdict was rendered that received very little attention. A report by the Washington-based Sentencing Project revealed that nearly one in three African American men in their twenties were either in jail, on parole, or otherwise under the supervision of the criminal justice system. Nearly one in three! One of the authors of the report remarked that if one in three White men were under criminal justice supervision, the nation would declare a national emergency. We must first face, and then erase that ugly truth. How do we do it? With a combination of greater personal responsibility and greater opportunity. It is obvious that we still have a big job to do in equalizing opportunity in this country. And frankly, it is becoming more difficult because of the current rush to dismantle many of the basic economic protections we put in place over the past 50 years. Take the minimum wage for example. Today, a person who works full-time -- 40 hours a week, 50 weeks a year -- at the minimum wage brings home only $8,500. It's just not enough to support a family. The minimum wage is not a livable wage. Its real value today is 27 percent lower than it was in 1979. If it is not boosted this year, it will be worth less than at any time in 40 years. I don't understand why we are having this big fight in Washington about this. We need to raise the minimum wage so that more people, Black and White can raise their children in 2 dignity and security. The same thing can be said about our efforts to give tax relief to 14 million low-income, working Americans. Ronald Reagan called the Earned Income Tax Credit "The best anti-poverty, the best pro-family, the best job creation measure to come out of Congress.' So why are we fighting like hell to keep it alive? We are having similar debates about Medicare and Medicaid, college loans, and the other issues. If we really believe in equal opportunity in this country, we've got to help those at the bottom lift themselves up. That's number one. The second thing we've got to do is demand greater responsibility from everyone, Black and White, rich, middle class and poor. Poverty should not be an excuse for hatred, violence, or irresponsible behavior. Wealth should not be an excuse for callousness. Today, thousands of Black men are marching in Washington as a demonstration of their commitment to themselves, their families and their communities. They understand that, while we all have responsibilities to each other, it is they who hold the key to their progress in this country -- not White people and not government. I honor their presence and I call on them to live up to the promise of this day. America needs its strong Black men if we are going to move forward in the days to come. But, let me be clear: One million men are right to be standing up for personal responsibility. But one million men do not make one man right if his message is one of division and hate. No good house has ever been built on a bad foundation. Nothing good ever came out of hate. Responsibility is a two-way street. And one where is this more important than in our efforts to promote public safety and preserve the rule of law. Citizens have an obligation to respect and honor the law and those who enforce it. This basic contract is at the core of civilized society. But, police have a special responsibility to be impartial. To be fair. They must never abuse the power we have given them. Here is where the worst fears of some African Americans have some merit. The concerns of many African Americans are not baseless. The criminal justice system has a history of racial abuses, ranging from the Scottsboro case to Emmett Till, to the heinous crimes of lynching. Vestiges of the bad old days of the abuse of police power still exist in some of our towns and cities. There is something beyond wrong when a law-abiding black father has to tell his law-abiding Black son to fear the police whose salaries are paid by his taxes. I pledge to all of you that I will do everything in my power to weed out these abuses and abusers. They have no place in this land of opportunity. 3 In closing, let me say that the single biggest social problem our society faces is the absence of fathers. There just are not enough daddies. One child in four grows up in a home without a father Without a father to nurture, without a father to teach, without a father to care, without a father to teach boys to be men and to teach girls what to expect from men. This is not only a Black problem or an Hispanic problem or a White problem, it is an American problem. Today, hundreds of thousands of black men are gathered in Washington. There are 120 million more men at home. I say to all men, of every color, wherever you are today: step up and be the kind of father you needed and wanted and, if you were lucky, actually got. I didn't. My father died before I was born. My stepfather fought a lifelong battle with alcohol that stopped him from being the father I wanted and needed. But I did my part. I know what it's like to stay up until dawn rocking a sick child, and I know what it's like to watch my child go out to play -- a child whom I would defend with my life -- and know that there may be a criminal lurking down the street. I've done all of this, and I know that it isn't easy; that building a family is the hardest job a man can do. But it is also the most important. So I say to those men who have never met their children: reach out to your them. Be there for them. Your child, your flesh and blood, needs you. And I say to those men who send checks. Keep sending them. Your child needs them. We'll enforce the law and catch you if you stop. But your check and your money is no replacement for your nurturing, your caring and your loving your child. And I say to those men who go home every night and love and care for their children. I say to them as President, as a father, as a man, and as a former fatherless child: God Bless you and thank you. 4 DRAFT 10/14/95 PRESIDENT WILLIAM J. CLINTON REMARKS FOR THE LIZ CARPENTER LECTURE COLLEGE OF LIBERAL ARTS UNIVERSITY OF TEXAS AT AUSTIN OCTOBER 16, 1995 Acknowledgments: [The First Lady spoke in 1993] ; President Robert Berdahl ["Bird-All"]; Bernard Rappaport [chairman, Board of Regents] Nicole Bell [student; introduces you] Chancellor Bill Cunningham; Barbara Jordan; Lucy Johnson; Congressman Pickle; Sheldon Eklund [Dean of Liberal Arts]; Jane Cummings {Chairperson of Students Distinguished Lectures]; Gary Mauro; and, most of all, Liz Carpenter. Liz said she has a file of letters longer than War and Peace inviting me to come here. [This plays off joke in Liz Carpenter's intro.] We all know she didn't need anything that long. When she asked me to come to Austin, I knew I was going. After all, anyone whose life has been touched by this remarkable woman -- a woman who worked side-by-side with President and Mrs. Johnson, who mastered the White House press corps, who reared not only her own children, but, at the age of 70, her late brother's teenage children, too -- knows there is one word that is simply not in her vocabulary, and that word is "no." Come to think of it, I don't know all that many Texans who take "no" for an answer. My dear friends and fellow Americans, in recent weeks every one of us has been made aware of a simple fact. We have been made aware of it so clearly that there is absolutely no excuse to avert our eyes: white Americans and black Americans often see the same world in drastically different ways. The issue is not the outcome of any one event but, rather: What can we do now? First, while many hearts are sore, let us take a moment to give thanks for the fact that we have made progress up that mountain Dr. King described. Remember that the closeness and respect between the races in daily life -- much of which we take for granted today -- would, a mere 30 years ago, have been undreamable. Reconciliation is the great dream of the American people. We should not underestimate its power. That power fueled the civil rights movement of the sixties and motivated the sanitation workers in Memphis in 1968 who stood bravely with their leader, Dr. King, wearing the sober faces of men who simply wanted to raise their families. The placards they held said simply, "I am a Man. " 1 Lyndon Johnson, who walked this campus many times, understood this dream, too. "I want to be the President who helped to end hatred among his fellow men and who promoted love among the people of all races and all regions and all parties, " he said 30 years ago. I want to be able to tell President Johnson that he may not have realized that dream, but we will not rest until it is made real. Some voices would undermine our progress by fundamentally misreading and underestimating the character of the American people. But they will not win the day. We will win the day. the racial dehate we are having today Second, let me tell you today that this is not a setback for us, but a great opportunity -- one that we cannot let pass us by. Some of our best moments as Americans have come when we have had the courage to face the truth about those times when we have failed to live up to our own best ideals. That act is not one of weakness, but of proud American optimism. These confrontations with the truth bring about what historians call "open moments.' " At such turning points, Americans moved against slavery, struggling away from the horror that one American could hold another in thrall; they moved to embrace women's suffrage, recognizing at last that we don't have an American to waste. These moments left us with a legacy of greatness because we looked in the national mirror and were brave enough to say: "This is not who we are. We are better than that. " As the Great Emancipator said, "A house divided upon itself cannot stand. " The two worlds we see now each contain both truth and distortion. And what I am going to do today is tell the truth about racism to both black and white America. Only this kind of honesty will bring about the many acts of reconciliation that will unite both these worlds into one America. Here is where the worst of black Americans have some merit: the justice system has a history of racial abuses, ranging from the Scottsboro case to Emmett Till to the heinous crimes of lynching. Police forces in some of our towns and cities reveal persistent vestiges of the bad old days. We know that African American males are many times more likely to be the victims of homicide than any other group in this country. And there are still more African American men in our prisons than in our colleges. A report released just the other day revealed that nearly one in three African American men in their twenties were either in jail, on parole, or otherwise under the supervision of the criminal justice system. Nearly one in three. There is something beyond wrong when a law-abiding black father has to tell his law-abiding son to fear the police whose salaries are paid by his taxes. Second, and even more fundamental: there is great economic 2 still make an average of 60 percent less than white people. More than half of African American children live in poverty. Clearly, we must do better. Here is where the worst of white fears have some merit. There is a fear of the violence that is too prevalent in urban areas. There is legitimate fear of a few black leaders who -- in contrast to the vast majority of African Americans -- want to play on hatred and venom to do the work of inspiration. Finally, there is the fear that African Americans will not be able to see white people as more than enemy faces, all of whom carry a sliver of bigotry in their hearts. This gap between the two realities is unacceptable for the functioning of a democracy, for our growth and prosperity, and for our service as a light unto the rest of the world. As Dr. King said, "We must learn to live together as brothers, or [we will] perish as fools." But having recognized one another's real grievances, I now say: that is not enough. We must also take responsibility for ourselves. No one can complain about bad treatment without also cleaning out their own house. To white America I say: clean your house of racism. Too many destructive ideas are gaining currency in your midst. The taped voice of one policeman should fill you with outrage. Stand up and be heard denouncing this sort of rhetoric so loudly and clearly that your black fellow citizens can hear you. White racism may be black people's burden, but it is white people's problem. Again I say: clean your house. Black America -- I honor the presence of millions of men in Washington today committed to personal responsibility and I call on you and your brothers and sisters across this nation to clean your house: Step up to your responsibilities as parents. Step up to your responsibilities as role models. Step up to your responsibilities as citizens. You do have a stake in the American Dream. But let me be clear: One million men are right to be standing up for personal responsibility. But one million men do not make one man right if his message is one of division and hate. No good house was ever built on a bad foundation. Nothing good ever came of hate. There are many today -- white and black, on the left and the right, on street corners and on the radio waves -- who for their own purposes SOW division. To them I say: this must end. We are all one family. One family. Not just neighbors, not fellow citizens; not separate camps; but family: white, black, Latino, men, women, able-bodied, disabled. No matter our differences, we 3 all have somthing to contribute. Divorce or separation are simply not an option for our national family. When a child is gunned down on a street in the Bronx, no matter what our race, he is our child. When a woman dies from a beating, no matter what our race, she is our sister. Now, on October 16, 1995 we are confronting two Americas. Under my watch, I will do everything in my power to see that soon there is only one. One America under the rule of law; one justice system; equal opportunity; one America. How do we get there? By recommitting ourselves to the values that have stood us so well for so long: opportunity and responsibility. Let us begin with opportunity. It is obvious that we still have a big job to do in equalizing opportunity in this country. And frankly, it is becoming more difficult because of the current rush to dismantle many of the basic economic protections we put in place over the past 50 years. Take the minimum wage for example. Today, a person who works full-time at the minimum wage brings home only $8,500. It's just not enough to support a family. Its real value today is 27 percent lower than it was in 1979. If we do not raise it this year, it will be at a 40-year low. We need to raise the minimum wage so that more people, black and white can raise their children in dignity and security. The same thing can be said about our efforts to give tax relief to 14 million low-income, working Americans. Ronald Reagan called the Earned Income Tax Credit "The best anti-poverty, the best pro-family, the best job creation measure to come out of Congress." So why are we fighting to keep it alive? Why is there even a question about the EITC, Medicare, Medicaid, college loans? They are our best guarantee of equal opportunity, for they help people help themselves. because Responsibility is a two-way street. And nowhere is this more important than in our efforts to promote public safety and preserve the rule of law. Citizens must respect the law and those who enforce it. And police have a life and death responsibility to never abuse the power given them by the people. On this covenant, our vision of law and order rests. There's another area of responsibility I want to talk about. The single biggest social problem our society faces is the absence of fathers. One child in four grows up in a home without a father. Without a father to nurture, without a father to teach, without a father to care, without a father to teach boys to be men and to teach girls to expect respect from men. This is not only a black problem or Latino problem or a white problem, it is an American problem. 4 disparity between blacks and whites. It is fashionable to talk about African Americans as if they were part of a protected class. Many whites think blacks are getting more than their fair share in jobs and promotions. The truth is African Americans still make an average of 60 percent less than white people. More than half of African American children live in poverty. Clearly, we must do better. Here is where the worst of white fears have some merit. There is a fear of the violence that is too prevalent in urban areas. There is legitimate fear of a few black leaders who -- in contrast to the vast majority of African Americans -- want to play on hatred and venom to do the work of inspiration. Finally, there is the valid fear that African Americans will not be able to see white people as more than enemy faces, all of whom carry a sliver of bigotry in their hearts. This gap between the two realities is unacceptable for the functioning of a democracy, for our growth and prosperity, and for our service as a light unto the rest of the world. But having recognized one another's real grievances, I now say: that is not enough. We must also take responsibility for ourselves. No one can complain about bad treatment without also cleaning out their own house. To white America I say: clean your house of racism. Too many destructive ideas are gaining currency in your midst. The taped voice of one policeman should fill you with outrage. Stand up and be heard denouncing this sort of rhetoric so loudly and clearly responder that your black fellow citizens can hear you. White racism may be stepup black people's burden, but it is white people's problem. Again say: clean your house. today step families set I back to Black America I honor the presence of millions of men in your children God- and with resist Washington committed to personal responsibility and I call to you: clean your house of racism. One million men are right to be all might your standing up for personal responsibility. But one million men do not make one man right if his message is one of division and the and hate. No good house was ever built on a bad foundation. Nothing hogly good ever came of hate. to those who would build your siren your unity and self reliance on the hatred of others. brothers + sisters + call of call There are many today -- white and black, on the left and the racism. right, on street corners and on the radio waves -- who for their Parents own purposes SOW division. To them I say: this must end. We are all one family. One family. Not just neighbors, not fellow citizens; not separate tribes; but family: white, black, latino, weare men, women, able-bodied, disabled. Some family members have more del power, some have more obligations, some are weaker, some are different stronger: but there is no such thing as divorce or separation. That is not an option. allhame Bittal 3 something Despite to contribute Now, on October 16, 1995 we are confronting two Americas. Under my watch, I will do everything in my power to see that soon there is only one. One America under the rule of law; one justice system; equal opportunity; one America. trensfring So do there valuesthat how we get by What we must do: Opportunity and responsibility. have made this country great Let us begin with opportunity. Today, a person who works full- time at the minimum wage brings home only $8,500. It's just not enough to support a family. Its real value today is 27 percent lower than it was in 1979. If we do not raise it this year, it will be at a 40-year low. We need to raise the minimum wage so that more people, Black and White can raise their children in dignity and security. The same thing can be said about our efforts to give tax relief to 14 million low-income, working Americans. Ronald Reagan called the Earned Income Tax Credit "The best anti-poverty, the best pro-family, the best job creation measure to come out of Congress." So why are we fighting to keep it alive? Why is there even a question about the EITC, Medicare, Medicaid, college loans? They are our best guarantee of equal opportunity, for they help people help themselves. Responsibility is a two-way street. And nowhere is this more important than in our efforts to promote public safety and preserve the rule of law. Citizens must respect the law and those who enforce it. And police have a life and death responsibility to never abuse the power given them by the people. On this covenant, our vision of law and order rests. In closing, let me say that the single biggest social problem our society faces is the absence of fathers. One child in four grows up in a home without a father. Without a father to nurture, without a father to teach, without a father to care, without a father to teach boys to be men and to teach girls to expect respect from men. This is not only a black problem or Latino problem or a white problem, it is an American problem. I know this in my own life. My father died before I was born. My stepfather fought a lifelong battle with alcohol that stopped him from being the father I needed. But as an adult, a father in turn, I did my best to do my part. I know what it's like to stay up until dawn rocking a sick child, and I know what it's like to watch my child go out to play -- a child whom I would defend with my life -- and know that there may be danger down the street. I've done all of this, I've made my mistake, I know that it isn't easy: building a family is the hardest job a man can do. But it is also the most important. 4 That is why I honor the hundreds of thousands of black men marching in Washington as a demonstration of their commitment to themselves, their families and their communities. They understand that, while we all have responsibilities to each other, it is they who hold the key to their progress in this country. That is why I honor the 120 million more men at home. Men of every color who day-in and day-out dedicate themselves to being good fathers. That is why I say to all men, wherever you are today: step up and be the kind of father you needed and wanted and, if you were lucky, actually got. I say to those men who have never met their children: reach out to your them. Be there for them. Your child, your flesh and blood, needs you. And I say to those men who send money to support their kids in keeping with their promises: Keep sending those checks. Your children need them. We'll enforce the law and catch you if you stop. But your money is no replacement for your nurturing, your caring and your loving your child. And I say to those men who go home every night and love and care for their children. I say to them as President, as a father, as a man, and as a former fatherless child: God Bless you. 5 DRAFT 10/14/95 11:00 am PRESIDENT WILLIAM J. CLINTON REMARKS FOR THE LIZ CARPENTER LECTURE COLLEGE OF LIBERAL ARTS UNIVERSITY OF TEXAS AT AUSTIN OCTOBER 16, 1995 Acknowledgments: [The First Lady spoke in 1993], ; President Robert Berdahl ["Bird-All"]; Bernard Rappaport [chairman, Board of Regents] Nicole Bell [student; introduces you] Chancellor Bill Cunningham; Barbara Jordan; Lucy Johnson; Congressman Pickle; Sheldon Eklund [Dean of Liberal Arts]; Jane Cummings {Chairperson of Students Distinguished Lectures]; Gary Mauro; and, most of all, Liz Carpenter. Liz said she has a file of letters longer than War and Peace inviting me to come here. [This plays off joke in Liz Carpenter's intro.] We all know she didn't need anything that long. When she asked me to come to Austin, I knew I was going. After all, anyone whose life has been touched by this remarkable woman -- a woman who worked side-by-side with President and Mrs. Johnson, who mastered the White House press corps, who reared not only her own children, but, at the age of 70, her late brother's teenage children, too -- knows there is one word that is simply not in her vocabulary, and that word is "no." Come to think of it, I don't know all that many Texans who take "no" for an answer. My dear friends and fellow Americans, in recent weeks every one of us has been made aware of a simple fact. We have been made aware of it so clearly that there is absolutely no excuse to avert our eyes: white Americans and black Americans often see the same world in drastically different ways. The issue is not the utcome of any one event but, rather: What can we do now? First, while many hearts are sore, let us take a moment to give thanks for the fact that we have made progress up that mountain Dr. King described. Remember, it was not so long ago that our neigborhoods, businesses, schools, jobs, and voting booths were closed to many Americans simply because of the color of their skin. It was not so long ago that there were hardly any people of color serving in our state houses, our school boards, our city halls, and even our Congress. No one can deny that we are doing better. Reconciliation is the great dream of the American people. We should not underestimate its power. That power fueled the civil rights movement of the sixties and motivated the sanitation workers in Memphis in 1968 who stood bravely with their leader, Dr. King, wearing the sober faces of men who simply wanted to 1 Se only plainly raise their families. The placards they held said simply, "I am a Man." Second, let me tell you today that the racial debate we are having today is not a setback for us, but a great opportunity -- one that we cannot let pass us by. Some of our best moments as Americans have come when we have had the courage to face the truth about those times when we have failed to live up to our own best ideals. That act is not one of weakness, but of proud American optimism. These confrontations with the truth bring about what historians call "open moments.' At such turning points, Americans moved against slavery, struggling away from the horror that one American could hold another captive; they moved to embrace women's suffrage, recognizing at last that we don't have an American to waste. These moments left us with a legacy of greatness because we looked in the national mirror and were brave enough to say: "This is not who we are. We are better than that." remidedus, against As the Great Emancipator said, "A house divided upon itself cannot stand. " The two worlds we see now each contain both truth and distortion. And what I am going to do today is tell the truth about racism to both black and white America. Only this kind of honesty will bring about the many acts of reconciliation that will unite both these worlds into one America. Here is where the worst of black Americans have some merit: the justice system has a history of racial abuses, ranging from the Scottsboro case to Emmett Till to Rodney King. Police forces in some of our towns and cities reveal persistent vestiges of the bad old days. also know that there are wide We know that African American males are many times more likely to be the victims of homicide than any other group in this country. And there are still more African American men in our prisons than in our colleges. A report released just the other day revealed that nearly one in three African American men in their twenties were either in jail, on parole, or otherwise under the supervision of the criminal justice system. Nearly one in three. If one in three white men were under criminal justice supervision, the nation would declare a national emergency. We must first face and then erase that ugly truth. There is something beyond wrong when a law-abiding black father has to tell his law-abiding son to fear the police whose salaries are paid by his taxes. Second, and even more fundamental: there is great economic disparity between blacks and whites. It is fashionable to talk about African Americans as if they were part of a protected class. Many whites think blacks are getting more than their fair share in jobs and promotions. The truth is African Americans 2 I know this in my own life. My father died before I was born. My stepfather fought a lifelong battle with alcohol that stopped him from being the father I needed. But as an adult, a father in turn, I did what millions of men do every day. I know what it's like to stay up until dawn rocking a sick child, and I know what it's like to watch my child go out to play -- a child whom I would defend with my life -- and know that there may be danger down the street. I've done all of this, I've made my mistakes, I know that it isn't easy: building a family is the hardest job a man can do. But it is also the most important and the ost rewarding. That is why I honor the hundreds of thousands of black men marching in Washington as a demonstration of their commitment to themselves, their families and their communities. They understand that, while we all have responsibilities to each other, it is they who hold the key to their progress in this country. That is why I honor the millions more at home. Men of every color who day-in and day-out do what it takes to be good fathers. Tha is I say to all men, wherever you are today: step up and be the kind of father you needed and wanted and, if you were lucky, actually got. I say to those men who have never met their children: reach out to your them. Be there for them. Your child, your flesh and blood, needs you. only And I say to those men who send money to support their kids keeping with their promises: Keep sending those checks. Your children need them. We 11 enforce the law and catch you if you stop. But your money is no replacement for your nurturing, your caring and your loving your child. And I say to those men who go home every night and love and care for their children. I say to them as President, as a father, as a man, and as a former fatherless child: God Bless you. Fathers, mothers, brothers, sisters -- Americans of all races, let us remember our commitment to each other. We have no better example than the man who walked, not only this campus, but the dirt roads, the main streets, and the inner cities of this great country. Lyndon Johnson lived a life dedicated to the promise of equality of opportunity and compassion for all. He said, "I want to be the President who helped to end hatred among his fellow men and who promoted love among the people of all races and all regions. " If President Johnson were here today, we could tell him that though we may not have realized that dream, we will not rest until it is made real we do. Some voices would undermine our progress by selling short the great character of the American people. But they will not win 5 the day. We will win the day. And, with your help, that day will come soon. Thank you and God bless you all. 6 SEP-14-95 FRI 04:57 OFFICE OF COUNSELOR FAX NO. 2022195693 P.01 The U.S. Department of Labor DEPARTMENT OF Office of the Counselor to the Secretary 200 Constitution Avenue, N.W., Room S-2233 UNITED LABOR. . AMERICA Washington, D.C. 20210 TEL (202) 219-6331 STATES OF FAX (202) 219-5693 FAX COVER SHEET DATE: TO: Terry Edwonds ORG: WH Speech writing TEL #: FAX#: 456-5709 FROM: # OF PAGES (INC. COVER): 6 Term - hear you already have the Pons's remarks I at the Women's Bureau event. Here's some Rach stuff that might also help (see p.4)_ Dan The information contained in this facsimile message is privileged, confidential and protected from disclosure. If you think you have received this fax in error, if you do not receive all the pages. or if you have any problem receiving this transmission, please call (202) 219-6331. Thank you. NUMAN services Office of the Assistant Secretary MEALTH DEPARTMENT OF HEALTH & HUMAN SERVICES for Public Affairs for Speechwriting Division working families Minium wage Talking Points- Alameda- budget we need a taxcut lay out conditions speison of final budget deal diminsh - st this - doesn't must not have a tax increase onworking families - Miss Harvey 622-0016- 10:30-ma22-0016 622-0016 MUMAN Office of the Assistant Secretary ****** DEPARTMENT OF HEALTH & HUMAN SERVICES for Public Affairs Speechwriting Division Radio Address- 7- anti- Alameda t manterey- LahorDay-Pressure on wases 7 Part free growing Prosperity Passing If you bad told me that we would have in butthat wases that couldn'the - rewase xtra 2thirs (- EITC - need to wase ( berry pressured PRINTER FONT 12 POINT_COURIER PRINTER FONT 12 POINT COURIER REWARDING WORK: THE CASE FOR INCREASING THE MINIMUM WAGE "The most important thing is, you can't make a living on $4.25 an hour. Especially if you have children, even with the working families tax cut we passed last year. In the past, the minimum wage has been a bipartisan issue, and I think it should be again. So I want to challenge you to have honest hearings on this; to get together; to find a way to make the minimum wage a living wage." President Clinton State of the Union Address January 24, 1995 The President's Proposal: The President's proposal would increase the minimum wage from $4.25 to $5.15 over two years, through two 45 cent increases. The last increase, passed by a bipartisan vote in 1989, was also a 90 cent increase in two 45 cent stages. For a full-time, year-round worker at the minimum wage, a 90 cent increase would raise yearly income by $1,800 -- as much as the average family spends on groceries in over 7 months. Maintaining the Historic Value of Work: If the minimum wage were to stay at its, current level ($4.25), it would fall to its lowest real level in forty years. Indeed, the value of the minimum wage is now 27% lower than it was in 1979, and has fallen 45 cents in real value since its last increase in April of 1991. The first half of the President's 90 cent proposal simply restores the minimum wage to its value from the last increase. Raising the Minimum Wage Primarily Helps Adult Workers -- Most of Whom Rely on Their Minimum Wage Jobs to Support Their Families: Nearly two-thirds of minimum wage workers are adults (64%) ; over one third of all minimum wage workers (38%) are the sole breadwinners in their families; the average minimum wage worker brings home half of his or her family's earnings. Thus, a wage increase significantly boosts the standard of living for millions of households. Rewards Work Over Welfare: The minimum wage increase provides another crucial measure to reward work and an additional incentive to choose work over welfare. Between 11 Million and 13 Million Workers would Benefit from the President's Proposal to Increase the Minimum Wage: An estimated 11 million workers, paid by the hour, earn between $4.25 and $5.14. Research indicates that an increase in the minimum wage to $5.15 could have a "ripple" effect on another 2.5 million workers who earn within 60 cents of the new minimum wage. Empirical Evidence Shows the President's Proposal Can Increase Wages without Costing Jobs: Over a dozen empirical studies have found that moderate increases in the minimum wage do not have a significant impact on employment. As Nobel Laureate Robert Solow stated: "[T]he evidence of job loss is weak. And the fact that the evidence is weak suggests that the impact on jobs is small." A 90 Cent Increase in the Minimum Wage Will Lift a Family of Four Out of Poverty: The dramatic extension of the Earned Income Tax Credit helped lift hundreds of thousands of working families out of poverty. Yet, by 1996, even the EITC is not enough to lift above the poverty line a family of four making the minimum wage. With the 90 cent minimum wage increase, food stamps, and the EITC, a family of four with a year-round minimum wage worker would be lifted above the poverty line. The Last Minimum Wage -- Also 90 Cents -- Garnered Strong Bipartisan Support. In 1989, the minimum wage was passed by votes of 382-37 (135 Republicans) in the House, and 89-8 in the Senate (36 Republicans) and was supported by Senator Dole and Rep. Gingrich. Staff Contact: Robert Gordon, NEC Last Updated: July 7, 1995 Laber Anne Lewis 219-6181 6220016 Michael Barr Treasury EiTe Jasan 62620 War Week Ending Friday, May 26, 1995 Remarks at the Women's Bureau to talk her out of it because I thought it Reception would be bad for her career. But it's worked May 19, 1995 out all right for her, I think. [Laughter] You know, 75 years ago a reception like Thank you very much. I was sitting here this would not have taken place. In 1920, listening to my marvelous wife speak, and I women had less than one in five jobs in this was thinking, you know, I've been seeing her. economy and, as Hillary said, were only then the lately long distance, on Oprah Winfrey and gaining the right to vote. When she said, "In for on the "Morning Show" this morning, and 25 years from now, the President and her I thought, boy, I'm glad she lives here. husband would open the time capsule," I [Laughter] looked at Karen and Bob and said, "If the I want to thank Secretary Reich and the demographic trends continue, the percent- Women's Bureau Director, Karen Nuss- ages will almost mandate a woman Presi- baum. She has done a wonderful job. I am dent." [Laughter] Karen said, "Yes, if they very grateful to her and to him. I want to vote their own interests." [Laughter] To in say a special word of appreciation to the peo- which I replied, "We should give them every ple who sponsored this event today: from opportunity." [Laughter] American Home Products, the senior vice When the Women's Bureau was born, it president, Fred Hassan, and the corporate was designed then to improve the lot of secretary, Carol Emerling. Let's give them women in the work force by fighting for fair 914 a hand for what they did. [Applause] There wages and expanding opportunities for edu- are many distinguished women leaders here, cation and training and protecting women 13 today, but I do want to recognize one person physically at work. who has been a friend of mine for more than Those folks 75 years ago, I think, would 20 years now, Congresswoman Eddie Ber- be surprised at how far we've come. Hun- nice Johnson, from Texas. We're glad to see dreds of women here celebrate the progress you. Thank you very much for being here. that we have made in all walks of American You know, the concerns of working women life. I'm proud that in this administration we are one of the few subjects that I didn't have have six women Cabinet Secretaries, twice to be educated about-[laughter]-because as many as has ever served in any Cabinet I grew up with them. I lived with my grand- of the President before. Over 40 percent of parents till I was 4, and my grandmother was our appointees have been women, and a far a working woman from the 1930's on. In the higher percentage of women have been ap- little town where I was born, an awful lot pointed to the bench and to major Federal of the women, both white and black, who positions than previous administrations. Two of the lived in poor families or near-poor families of these appointees are former Directors of 23607: worked as a matter of course. No one gave the Women's Bureau: Esther Peterson, the much thought to it one way or the other. U.S. Representative to the U.N. General As- Doeu- My mother was a working woman from the sembly, and the Assistant to the President 20402. will be 1940's on, beginning shortly after I was old for Public Liaison, Alexis Herman, who is :r year enough to at least crawl around on my own. here with six other Directors of the Women's ers for And it certainly never occurred to me from Bureau. Let's give them all a hand here. [Ap- ments, !. The the first day that I met Hillary that she would plause] ailing) do anything other than pursue her career. All of you represent women across this aterial [Laughter] As a matter of fact, I spent the country who work long hours, do your best Docu- first 2 or 3 years of our relationship trying to raise your families, and contribute to your 867 868 May 19 / Administration of William J. Clinton, 1995 communities. Extraordinary working women matically expand and make more affordable today are doing their best to hold our country loans to go to college. together, our communities together, and But there is much, much more to be done. frankly, our hard-pressed middle class to- I am proud of the fact that last year the Small gether. They deserve our admiration, our re- Business Administration cut its budget but spect, and most importantly, our support. expanded loans to women entrepreneurs by I ran for office in large measure because 85 percent in one year-I might add, without I was afraid that having won the cold war, reducing loans to qualified males. [Laughter] we might squander the peace and the victory; We expanded for everybody. that having struggled so hard to make the But I think it's important that we recognize American dream available to other people that women in the workplace are caught in around the world, we might lose it for large a lot of cross-currents today, because all numbers of our people here at home as we American workers, or at least more than half move into the 21st century and the global of us, are working longer hours for the same economy, the technological revolution open- or lower pay that we were making 10 years ing all of us to unbelievable pressures and ago. And therefore, more and more parents changes which can be good or difficult. are working harder for the same or less and I believe that my job is, first, to provide spending less time with their children. for the security of the American people; sec- Women feel this pressure very deeply insofar ondly, to give people the tools they need to as they have either sole, primary, or even just help themselves live up to their God-given half of the responsibility for taking care of potential; and thirdly, to try to create as many their children as well as earning a living. Be- opportunities as I possibly can. cause male workers over the age of 45, on In a way, the first major piece of legislation average, have lost 14 percent of their earning I signed as President, which had been bounc- power in the last 10 years, women in the ing around here for 7 years and had suffered work force and in the home feel the anxiety through two vetoes, was emblematic of all of their husband's sense of loss and insecurity three of those objectives. It was the family and frustration and anger. and medical leave law. What is causing all this, and what are we Not very long ago, I was home for a couple to do about it? Well, what is causing it all of days and I went back to my old church, is the impact of the global economy and the and a lady I didn't know came up to me and dramatic revolution in technology on our so- said, "I really want to thank you. I know we're ciety, opening up all kinds of new changes not supposed to talk about politics at church, in ways that are perfectly wonderful if you but I don't really think this is politics. I got can access them but terrifying if you cannot. cancer, and I had to take some time off and For example-we don't have the figures yet deal with it, and my husband had to take on '94, but I think '94 will confirm '93's some time off and work with me. And neither trend-in 1993 we had the largest number one of us lost our jobs, and we're both back of new businesses started in America in any working now. And it wouldn't have happened year in history and the largest number of new if it hadn't been for the family and medical millionaires in America in any year in history. leave law." And that is a good thing. That is a good thing. I am proud of the fact that we have moved And that is happening because so many of aggressively to immunize all of our children us are now able to access the world of the under the age of 2; to enroll every pregnant future. Many of you in this room are part woman and infant in the country who needs of the trend toward a brighter, bigger, broad- it in the Women, Infants and Children Pro- er tomorrow. gram for nutrition; to expand Head Start and But there is also a fault line in our society lift the standards in our schools and expand that is splitting the middle class apart, putting apprenticeship programs for young people unbearable pressures on families, making who don't go on to universities; and some- them less secure and making them less able thing which will make a big difference in the to live up to the fullest of their abilities. You lives of young women in the future, to dra- know it, and I know it. 1995 Administration of William J. Clinton, 1995 / May 19 869 dable That's why the family and medical leave it was a national program or one of the State law was important. If people are going to be networks around here, but they went down done. working for smaller companies, not bigger South to a town that had a lot of minimum Small ones, and moving around, at least they ought wage workers. And they went in this plant but to know they can take some time off without to interview a remarkable woman who by losing a job if there's someone sick in their worked in this plant at a minimum wage. And family or if a baby is born or some other they said to this lady, "You know, your em- emergency arises. That's why it was impor- ployer says, if we raise the minimum wage, tant. that they'll either have to lay people off or That's why the efforts of the Secretary of put more money into machinery and reduce in Labor and the Secretary of Education to cre- their employment long-term. What do you all ate a fabric, a seamless fabric, of lifelong say to that?" I could not have written the half learning, whenever people lose their jobs or script. [Laughter] This lady sort of threw her same feel that they're underemployed, it's terribly shoulders back and looked into the eyes of years important. the television reporter and said, "Honey, I'll And that's why I believe it is especially im- take my chances." [Laughter] and portant to women that we raise the minimum If we are going to bring our budget deficit wage this year. Women represent three out into balance, which will be good for all of sofar of five minimum wage workers but only half us, if we are going to have to over a period just the work force. of years cut back on expenditures that the of I have done everything I could to create Government used to make, that makes it Be- a climate in which people are encouraged to even more important for people who do go on choose work over welfare, in which people out into the private sector and work full-time, are encouraged to be successful parents and play by the rules, and want to make their the successful workers. I believe that. That's own way without public assistance, to be re- what the earned-income tax credit was all warded for that work. This is a huge issue. about in 1993. Let me tell you what that One other thing I want to say that must meant: That meant this year that the average be done this year: The Secretary of Labor we family of four with an income under $27,000 has taken the initiative in trying to consoli- it all got a $1,000 tax cut below what they paid date a lot of these various job-training pro- the before this administration came into office. grams into a fund from which you can get so- And it means 3 years from now, if the Con- a check or a voucher, if you're unemployed gress will stick with it and not repeal it, we or underemployed, to take to the local com- you will be able to say that no one who works munity college or the training institution of full-time and has children at home, when your choice to get permanent reeducation yet they go home from work, will live below the opportunities for a lifetime. And we ought '93's poverty line. That is the best war against wel- to do that. fare we could wage. I'd like to close by introducing someone any But it isn't enough. If we do not raise the who was a working woman, who was a par- new minimum wage this year, next year it will be, ticular influence in my life at an early time. in real dollar terms, the lowest it has been The people who sponsored this event invited in 40 years. Now that is not my idea of what me to pick someone to participate, and so of the 21st century American economy is all I picked this person. Lonnie Luebben was the about. I want a smart-work, high-wage econ- my 11th grade honors English teacher. And part omy, not a hard-work, low-wage economy. I believe that I was in the first class she road- And the working women of America and taught, but anyway, she looked awful young their children and their husbands deserve it at the time-{laughter}-and she still does. is well. She had a remarkable way of making lit- You know, I don't get to watch a lot of erature come to life. And one of the most kind of extra television, but the other night, memorable trips I ever took in my life-I able just by accident, I was watching a news pro- still remember-it was the first time I ever You gram where a special was being done on the went to the wild mountains of the Ozarks minimum wage. And I don't even know if in north Arkansas, along the river that was 870 May 19 / Administration of William J. Clinton, 1995 Ad the first river Congress, over 20 years ago, the U.S. Merchant Marine has built on its set aside in the national wild rivers act. They legacy of patriotism. Its great tradition of m: thought it was the wildest of all the rivers courage and valor is an inspiration to all ye: in the United States. [Laughter] And we ex- Americans. ty- plored caves that still had ammunition stored -This year, as we honor those who served ed from the Civil War. We talked to mountain and sacrificed for our Nation during World nir people who had never been more than 20 War II, the contributions of the U.S. Mer- miles away from home. It was one of the chant Marine are a special source of pride. most remarkable experiences I have ever We will always remember the heroism of [Fi had. She taught me a great deal about Amer- those mariners and the dangers they faced 11: ican folklore and literature and life. And just to protect our liberty. before we walked out here, she gave me a America's Merchant Marine and civilian No contribution for the time capsule, the text- Fed seafarers have put themselves at risk- time book with which she taught our class so many reco and again to support our Armed Forces. issu. years ago. They provided pivotal service during OPER- So if you will forgive me, I would like to ATION DESERT STORM, during Ameri- close this event by asking my teacher to come ca's humanitarian mission in Somalia, and The up here and accept my thanks for being a throughout OPERATION RESTORE DE- Ma. working woman over 30 years ago. Thank you MOCRACY in Haiti. very much. Again. let me thank American Home Prod- Today, our country remains determined to C ucts. Let me thank all of you for coming. maintain a strong U.S. flag presence on the Tre: high seas, a commitment central to advancing will Let me thank Congresswoman Eddie Ber- our Nation's national and economic security. bloc nice Johnson. And I've just been told that Congresswoman Lynn Woolsey is also here I urge Americans to join efforts in support Whi somewhere; thank you. There she is, the her- of maritime revitalization legislation and our traff oine of the State of the Union Address. ongoing shipbuilding production program. Pc I thank you all. Please stay around. Have Americans' pioneering spirit has endowed oper our Nation with the most innovative mari- Rep a good. time. We're delighted to see you. Goodbye. Thank you. time technologies and the most skilled inno- sinat the vative maritime technologies and the most skilled maritime labor force on Earth. Work- Thro NOTE: The President spoke at 5:38 p.m. on the South Lawn at the White House, at a 75th anni- Gulf ing together, we can preserve this critical ad- versary celebration of the Department of Labor's close vantage for generations to come. Women's Bureau. This item was not received in In recognition of the importance of the by t time for publication in the appropriate issue. Servi U.S. Merchant Marine, the Congress, by a distin joint resolution approved May 20, 1933, has admi Proclamation 6803-National designated May 22 of each year as "National Maritime Day, 1995 Maritime Day" and has authorized and re- publi Th May 19, 1995 quested the President to issue annually a Dire proclamation calling for its appropriate ob- of ex By the President of the United States servance. famil of America Now, Therefore, I, William J. Clinton, and ( President of the United States of America, and A Proclamation do hereby proclaim May 22, 1995, as Na- guest The United States owes much to our mer- tional Maritime Day. I urge the people of Th chant sailors. At our Nation's beginning, the United States to observe this day with tect 1 these outstanding citizens opened new ave- appropriate programs, ceremonies, and ac- years nues of commerce and helped nurture a tivities and by displaying the flag of the Unit- and t fledgling democracy into a beacon of free- ed States at their homes and in their commu- are tl dom for people around the world. Since nities. I also request that all ships sailing Thou President Franklin D. Roosevelt first pro- under the American flag dress ship on that that claimed National Maritime Day 62 years ago, day. work THE WHITE HOUSE Office of the Press Secretary (Monterey, California) For Immediate Release September 4, 1995 REMARKS BY THE PRESIDENT AT ALAMEDA COUNTY ANNUAL LABOR DAY PICNIC Alameda County Fairgrounds Pleasanton, California 3:30 P.M. PDT THE PRESIDENT: Thank you. Can you hear me in the back? Good. Ladies and gentlemen, I am so glad to be here to share Labor Day with you, to count our blessings and to embrace our challenges. But let me just begin by thanking you for that wonderful welcome. I feel right at home, and I'm proud to be with the working families of this country. (Applause.) I also want to say how very pleased I am to be here with all the distinguished labor leaders and public officials who are here behind me from the state of California, some from our administration; to be here with President Donahue. You know, this is his birthday. He has to celebrate his birthday on Labor Day. He gets a two-fer today, so we ought to say happy birthday, Tom. (Applause.) I'm delighted to be here with Jack Henning, who still gives one of the best speeches I ever heard; with John Sweeney and Laura Miller and Chuck Mack and George Korpius, and all the other labor leaders who are here. I thank Judy Goff and Orrin Merrin for having me here. And I want to say a special word of thanks to the people who represent you in Congress, two of the finest people in the entire United States Congress, Congressman Ron Dellums and Senator Barbara Boxer. They are great people. (Applause.) You know, we are going through a sea change in American life. You know it and I know it. What I want to tell you is I believe that when the history of this time is written and people look back on how you and other ordinary Americans lived, they will say that this period represented the biggest challenge and the biggest change to the way we live and work and raise our families of any period since 100 years ago, when we changed from being a primarily agricultural and rural society to being an industrial society and a more urban one. All of you know that facts. We've ended the Cold War. We're moving into a global economy. We have MORE - 2 - more and more competition and more and more technology. We have more opportunities and more fears. And there are a lot of good things that are going on today, but there are a lot of troubling things as well. And I came here to tell you that in the next 90 days in Washington, DC, we're going to make some decisions that will say a lot about what kind of people we are and where we're going. And I believe -- I believe that if we decide to work together and work for the future, the 21st century and the global economy will be America's time. But we have to make that decision. I want a high-wage, high-growth, high-opportunity future; not a hard-work, low-wage, insecure future for the working families of the United States of America. (Applause.) I've worked as hard as I know how to bring the economy back. But let me ask you this -- you all know what the problem is. If I had told you 30 months ago, the day I became President, that the following things would happen -- just listen to this as a good news, bad news story. In our country we have 7 million new jobs. We have 2.5 million new homeowners. We have 1.5 million new small businesses. We have reduced the deficit from $290 billion to $260 billion a year. (Applause.) We have done it while increasing our investment in education and training and technology and research to generate new jobs. We have doubled the loans of the small business administration to try to create more small business opportunities. We have done all these things. In California, as hard hit as you were by all the defense cuts, the jobs that were lost in the previous four years have been replaced and then some. And we're overcoming the impacts. of earthquakes and fires and defense cuts. And California's coming back. But you know what? In spite of all of that, the median wage has dropped one percent. That means most working people are working harder for the same or lower wages that they were making not just two years ago, but 10 and 15 years ago. That is the great challenge of this time. Are we going to be a smart-work, high-opportunity, high-wage country, or a hard-work, low-wage country where the middle class is dividing? And that is the thing that ought to inform every decision we make. I think I know what we have to do, and I want you to stand with me because you know what we have to do. MORE The first thing we ought to do -- the very first thing we ought to do is to say we are going to do no harm, we're going to stop trying to undo the protections in the American law for working men and women. (Applause.) We're going to stop trying to weaken workplace safety. Let's work in partnership with managers to make it a safer workplace in America, not walk away from our obligations to the safety, health and welfare of the American workers. (Applause.) Then, what is our affirmative agenda? Number one, don't cut education and training -- spend more on it. (Applause.) And for those who say -- those who say we have to do that to balance the budget, I say, that is wrong. My balanced budget plan gives the working families of America a tax deduction for the cost of all education after high school. (Applause.) Our balanced budget plan would give working people who lose their jobs the right to a voucher worth $2,600 a year for two years to take to the nearest community college or other education and training institution to get a better start in life. (Applause.) Increase our investment in education. Don't cut it. The second thing we ought to do is to have fair as well as free trade. That's what the fight with the Japanese over autos and auto parts was all about. I'm all for more trade, but it's got to be more fair. It's got to be fair to American workers. We can now compete with anybody in the world and win if we're given a fair chance to do SO. (Applause.) The third thing we ought to do is raise the minimum wage. (Applause.) Let me tell you, there is not evidence to support the claim that opponents of the minimum wage always make that it costs jobs. But we know one thing for sure: On January, 1, 1996, if we do not raise the minimum wage this year, it will drop in terms of what the money will buy to a 40-year low. Two-thirds of the people making minimum wage are adults. Forty percent of the people making the minimum wage are the sole support of their families. We have children growing up on it. It is wrong to expect people to work for $4.25 an hour. Let us raise the minimum wage and do it now. (Applause.) In California, we have a lot of other things to do. We have to maintain the defense conversion programs that our administration has put in place. We should not cut the attempts to build people's future. I have worked as hard as I could to make sure that you knew that the defense contractors and the people that worked on the military bases, who won the Cold War for this country, would not be left out in the cold when the defense budget was cut. And we have to keep working on that. MORE - 4 - Let me give you an example of the kind of thing I'm talking about. Today, it is my honor to announce that our Department of Transportation is going to give to Cal-Start, a consortium of California companies, $3.4 million to help them start building electric cars for the future of America. (Applause.) Men and women who used to weld Bradley fighting vehicles together for our national defense will now build family vehicles that will use smart technology, help the environment and give people good jobs for a good future for their families. That's the kind of thing we ought to be doing more of in this country. (Applause.) They will be made at what used to be the Alameda Naval Air Station. This is the kind of thing that I want our government to do, to work with you in partnership for the future. And just today, right before I came out here, the head of Amerigon, Lon Bell, and George Korpius, the head of the Machinist Union, signed an agreement that commits both sides, management and labor, to teamwork and a true partnership on the shop floor, working together, working for tomorrow. America ought to follow that model. We need more of it. (Applause.) Folks, this is happening all over California. Earlier today, in Monterey, I dedicated the new campus of Cal State on the grounds of Fort Ord. (Applause.) They had --instead of a place that is a shell, an empty shell, they're now going to have a vital university. They had 4,000 applications for the first 600 places open there. And within just a few years, they'll have thousands and thousands of people there, creating more jobs than were there when Fort Ord was running at full steam. That is the future of American -- (applause) -- working together, working for tomorrow. (Applause.) In Sacramento, Packard Bell has already hired about 5,000 people, including 500 people where they've moved jobs from overseas back to the United States to Northern California to assemble personal computers at a former Army depot, with more jobs there than were lost at the height of the defense production. That is the future of California and the future of America. (Applause.) Let me just say one more thing on this Labor Day. In the last 2.5 years, we had 7 million new jobs, 2.5 million new homeowners, 1.5 million new businesses, record corporate profits, the stock market's gone to 4,700. I think it is time for American businesses to follow the lead of our best employers and share more of MORE - 5 - those profits with their working people. The government can't do that; business has to do that. (Applause.) Thirty years ago, in the biggest companies in this country, the average executive made about 12 times what the average shop worker did. Today it's 120 times. It's time for the working people -- AUDIENCE: Boooo! THE PRESIDENT: All right, let me tell you. I'm all for people becoming millionaires. We've had more self-made millionaires since I've been President than any comparable period in American history. And I like that. That's the American idea. But the people of this country that make it go are the average working families. And they deserve their fair share of their own productivity and competitiveness. And it's time to do it. (Applause.) So when I leave you today, I'm going back to Washington for the critical struggles over the budget in the next 90 days. And I will say again, this is the period of biggest change we've had in 100 years. We are going to shape the future. Are we going forward together, looking toward tomorrow, or are we going to be divided? Are we going to have a high-wage, high-growth, high-opportunity future for your children, or a hard-work, low-wage future for half of the working people in this country? Those are the questions. Yes, we have to balance the budget, but let's do it in a way that increases our investment in education, technology, research and the good jobs of tomorrow. Let's not walk away from it. (Applause.) Yes, middle-class people ought to have tax relief for education and child-rearing. But let's don't cut taxes so much just to find tax cuts for people who don't need it and, in turn, turn around and raise the cost of Medicare, raise the cost of nursing home care on ordinary, elderly people and their middle-class children who cannot afford it. That is wrong. We should not do that. (Applause.) Yes, we ought to reform regulation and reduce cumbersome bureaucracy. You know something this is something you ought to tell tomorrow when you're talking to people -- our administration has reduced the size of government, the number of regulations, and the number of government programs more in two years than the previous two administrations did in 12. But I did not reduce worker protections and our commitments to clean water, clean air and safe food. MORE - 6 - That is nuts. We should not do that. It is not good for America. (Applause.) So as Congress comes back to work, as you send Ron Dellums and Barbara Boxer and Diane Feinstein back to their labors, let me tell you, folks, send a message to everybody. This country, it got where it is today because we pulled together and we worked together and we worked for tomorrow. I just got back from Hawaii, celebrating the 50th anniversary of the end of World War II. I met with veterans from all different races and all different backgrounds who forgot all their differences and worked together. And that's why we won. And when they came home, the G.I. Bill gave them all the chance to go to college and to own their own homes and to educate their children. And that's why America won the Cold War and did so well. (Applause.) This idea, this crazy idea that somehow we can go into the 21st century by weakening our middle class, by dividing our people against each other, by convincing hard-working middle-class people that the reason they don't have a good income is because of welfare or affirmative action or immigration -- all of which need improvement, and we've done more on that the guys did before as well -- but that's not what's holding your wage down. What's holding your wage down. What's holding your wage down is the inability to get a fair deal in a competitive global economy because we need more investment in education, more investment in training, more investment in high-wage jobs. And you know that in your heart of hearts. This country never got anywhere being divided against one another. So let's go forward together for a better future. (Applause.) God bless you all and thank you. (Applause.) END 3:46 P.M. PDT THE WHITE HOUSE Office of the Press Secretary (Monterey, California) For Immediate Release September 4, 1995 REMARKS BY THE PRESIDENT AT THE DEDICATION OF THE FORMER FORT ORD AS CALIFORNIA STATE UNIVERSITY AT MONTEREY BAY California State University at Monterey Bay Monterey, California 12:02 P.M. PDT THE PRESIDENT: Thank you so much. It's a gorgeous day. It's a wonderful reception. I thank you. I can't imagine anybody in America who's having a better time on Labor Day than I am right now. And I thank you. (Applause.) Senator Boxer and Lieutenant Governor Davis, Congressman Mineta, Secretary West, Chancellor Munitz, President Peter Smith --my longtime friend from the time he was the Lieutenant Governor of Vermont and I was the Governor of Arkansas; we worked on education together. You've got a good person here. You're very lucky to have him. (Applause.) To my good friend, Congressman Sam Farr, who has worked like a demon for this project, and talks to me about it incessantly. (Applause.) You think I came out here because of Leon, but the truth is I showed up today because I couldn't bear to watch Sam Farr cry if I hadn't come. (Laughter and applause.) And let me say to Beatrice, I'm glad your daddy is here. If you were my daughter, I'd have been very proud of you here today. You were great. You were terrific. (Applause.) Thank you. (Applause.) Stand up there. (Applause.) Give him a hand. (Applause.) Give him a hand. (Applause.) Thank you, sir. (Applause.) Thank you. (Applause.) I want to thank all the others who made this possible, the other distinguished platform guests. And to Melrose Basco (phonetic) -- thank you for singing the National Anthem. You were terrific. (Applause.) I thank the Watsonville (phonetic) Community Band, and the Bethel Missionary Church Choir, the Western Stage of Hartinel College (phonetic.) El Tiatro Composino (phonetic) -- everyone who kept you occupied and entertained in the beginning. I thank the members of the General Assembly who worked hard to make this possible. MORE - 2 - You know, I was listening to Leon talk about the time he introduced me in Rome. That's really true. He translated my remarks in Rome. We were in the town square there -- thousands and thousands of those handsome, robust Romans were around (laughter) -- Leon and I standing before the cheering crowd. They were chattering away in Italian. The attractive, young mayor of Rome was to my left. I leaned over and I said, "What are they saying, Mayor?" He said, "Do you really want to know?" (Laughter.) I said, "Yes." He said, "They're saying, who's that guy up there with Leon Panetta?" (Laughter and applause.) This fall I'm going to take him to Ireland and give him a dose of his own medicine. (Laughter.) We were in there a few moments ago, and I was meeting some of the folks that helped to make this project possible. And one lady went through the line and shook my hand, and she said, "Mr. President, follow your heart -- and do what Leon tells you to." (Laughter.) I want to say if she had told me to do what Sylvia tells me to, I'd come nearer to doing it. (Laughter.) One of the reasons that I felt so strongly -- the first time I had a talk with Leon Panetta and I asked him to become head of the Office of Management and Budget, which, in many ways, in a time when we're downsizing the government and when we have to cut so much and still try to save enough money to invest in things like education, it was really important for me to have someone who not only understood the value of a dollar and how the budget worked, but someone I thought had good, basic American values and knew what it would take to build the community of America for the 21st century. That's why I asked Leon Panetta to do that job. (Applause.) And I have to tell you, when you pick somebody you don't know for a position, you don't know real well, it's very difficult to know whether you're making the right decision. You always kind of look for clues, you know. And I'm now old enough and been in enough jobs that I've hired thousands of people to do different things. And I have to tell you, one of the things that made the biggest impression on me, probably because of my own experience, was the partnership that Leon and Sylvia had working for this congressional district over so many years. That's the kind of thing we need more of in our country today, and it made a big impression. And I thank you. (Applause.) I've got a lot to say today, and you may not remember much of it. If you don't remember anything else, remember this: This country will be the greatest country in the world in the 21st century, just as it has been in the 20th century, if, but only if, we take all the challenges that are before us and approach them in the MORE - 3 - same way that you approached the challenge that you face when Fort Ord closed and you made this the 21st campus for the 21st century in California. (Applause.) We are at a period of historic change -- the way we work; the way we live; the way we relate to each other; the way we relate to others beyond our borders; the way we think about our lives; the way we think about the relationship of the economy to the environment; the way we think about the relationship of managers to workers; the way we think about our respective obligations to raise our children well and to succeed in the workplace at the same time. These things are undergoing a profound change, greater than anything we have seen in our country since the beginning of the 20th century when we moved from being primarily an agricultural and rural country into being an industrial and more urban country. We are out of the Cold War. We have moved into a global economy. We are transforming our economy, even manufacturing and agriculture, into a more information-based, technology-based economy. Things are changing rapidly. And what we know and what we can learn more than ever before will determine what we can earn, and in some cases, whether we can earn. This is a period of very, very profound change. And when you face these kind of challenges, it matters not only what particular decisions you make, but how you do it. And what has always made America great is when the chips were down and when we have a lot of challenges, we overlook our differences, we embrace what we have in common, we work together and we work for tomorrow. That is what I have been trying to say to the American people since the day I announced for President in October '91. This is a new and different time. We've got to work together and we've got to work for tomorrow. (Applause.) You know, I just had the profound honor of representing all of you as the President to commemorate the 50th anniversary of the end of World War II. It was moving to me in many ways. But I would ask you to remember what happened to this country. If you look back in history now, you think, well, we couldn't have lost. But in the war in the Pacific, we lost all our early battles, and we had to come back. In the war in Europe before we got in, Great Britain hardly won a battle for two years and they had to come back. When we began, there were 17 countries in the world with bigger armies than the United States had. And we had to put it all together. It looked so inevitable in the light of history, but it wasn't. It happened because free people beat dictators. People who chose to live together beat empires. People who willfully found common ground and bridged their differences joined hands and moved forward. That's how we MORE - 4 - did that. And don't you ever forget it. And that's what we have to do now if we want this country to be what we expect it to be in the 21st century. (Applause.) It's amazing how long it took us after the war to learn the lessons of the war in the peace. We honored our veterans. We gave them the G.I. Bill. They had a chance to go to college. They had a chance to buy a home because we recognized our obligations to each other and to the future. We built the greatest economy the world had ever know in the aftermath of the second world war. We rebuilt our former enemies -- Germany and Japan. We rebuilt our allies in Europe who were devastated. We expanded the benefits of global commerce to Latin America, to Asia and to other places. We did a good job in that because we worked together and we worked for tomorrow. We won the Cold War because we were strong and resolute and because, eventually, people's hunger for freedom brought down the Iron Curtain because we worked together and we worked for tomorrow. Now, if you look at what we have to do today in this period of profound change -- I will say again, a period of change as great as we have faced in 100 years -- we have to change the whole way our national government works. It has to be smaller, it has to be less bureaucratic. It has to be more oriented toward results and releasing the energies of people and establishing these kinds of partnerships, and less oriented just telling people exactly what they have to do. (Applause.) We have got to balance the federal budget. You know, I say this to all the people who like government programs that can promote education, as I do. This country never had a permanent deficit in all of our history until 1981. We had deficits when we needed them. When the economy was slow, we'd spend a little more money and juice it up. Then when the economy got good, we'd balance the budget and clear our debts and go on. or we'd borrow money when we wanted to invest in something, just the way you borrow money if you start a business or build a home or buy an automobile. But we didn't borrow money just to go out to dinner at night. We weren't borrowing money all the time until 1981. And after having been a country now for 217 -- 19 years now, almost 219 years, we quadrupled our debt in only 12 years. That's bad for you and me. Our budget would be balanced today if it weren't for the interest run up in the 12 years before I became president. (Applause.) And -- that we have to pay on that debt. It would be balanced today. And next year -- unless we have real luck with the interest rates -- next year interest on the debt will exceed the defense budget. MORE - 5 - Now, that's not good. That's not a good thing. Nobody in this audience -- I don't care if you're a Democrat or a Republican or an independent or whatever your politics are -- you don't want that little baby that was held up to me in the audience a few moments ago to grow up into a world where everybody pays taxes just to pay interest on the debt. Nobody's got any money to invest in this kind of project a generation from now. So we have to do that. We have to reassert the values that made this country great, that helped us in the war and afterward. We have to have policies and practices that strengthen our families and our communities and that reward personal responsibility. And above all, we have got to equip our people to meet the challenges of the 21st century. Our parents built America and passed it on to my generation. And we dare not let this time pass without making sure that we have given the next generation a chance to live the American Dream. (Applause.) I will say again: There is nothing we have to do at the national level as a people that we cannot do if we follow the directions that you have laid out here -- common sense, common ground, higher ground. Think about what we've got in common. Think about possibilities, not problems. Believe in the future. Colonel Hendrickson, who was once Fort Ord's commander and is now the Vice President of Administration for this fine institution, says -- and I quote -- "On the same ground where we once taught 18-year-old soldiers to fight and survive in a war environment, we are now teaching 18-year-old students to compete and flourish in the global economy." That's what you have done together, and that's what America must do together. (Applause.) I am proud of the contribution that your national government could make. I think we owed it to you, with the economic development grants, the environmental clean-up, the help for the displaced workers, the young AmeriCorps volunteers who were working to help people here. I am proud of all that. (Applause.) But that $240 million was an investment in your future and you earned it. You contributed to our victory in the Cold War. Your nation could not leave you out in the cold. It was the right thing to do. But you made it possible by all the things that you did here. So I ask everybody who is cynical about America's future to just look around. You want to know what to do. You want to know how we ought to do our business in Washington, how should we decide how to MORE - 6 - balance the budget. Look around. We ought to behave the way you did. You couldn't run a family, a business, a university, a church, a civic organization, you couldn't run anything in this country the way people try to run politics in Washington -- (laughter and applause) -- where talking is more important than doing; the night's sound bite on the evening news, if you want to be on it, you know you have to have conflict, not cooperation. If you have cooperation, people will go to sleep, and you won't get on the news. (Applause.) You have to exaggerate every difference and make it 10 times bigger than it is. And you have to be willing to sacrifice every good in the moment for the next election. No one could run anything that way. So we have an obligation now to do what you do, to do what you did here. The large buildings to my left and right were battery headquarters for artillery units. One is the library, the other is a multimedia center. I don't know whether a Republican or a Democrat turned them into that. I just know it's good for the country because you're going to be better educated. That's the way we ought to run the country. (Applause.) The old airfield will become an airport for business planes. And when people land and give their numbers, they won't have to talk about politics, they'll just be permitted to land and do their business. Not only that, the golf courses, are going to be operated for the public. (Applause.) This is happening throughout California, you know. And Alameda County, where I'm going later, machinists who once welded Bradley fighting vehicles together are now going to be building electric cars for the 21st century. (Applause.) Up in Sacramento, Packard Bell has already hired almost 5,000 people, including 500 jobs they brought back from overseas to assemble personal computers at a former Army depot. We can do this, folks. (Applause.) It's not complicated, it's just hard. (Applause.) It's hard. It requires a lot of effort, but it's not complicated. All across America on this Labor Day, our people are beginning to convert from the Cold War economy to the new economy of the 21st century. And we are trying to do what we can to help. We brought the deficit down from $290 billion a year when I took office to $160 billion this year. Interest rates are down. (Applause.) Trade and exports are up. (Applause.) Investment in education and technology and research are all up. We've got 7 million new jobs, 2.5 million new homeowners, 1.5 million new small businesses -- a record in this time MORE - 7 - period. (Applause.) California lagged behind because California rose so much on the economy of the Cold War. So when the Cold War was over, you got hurt worse than other states. Then you had to deal with earthquakes and fires and, you know, God just wanted to test you and see how strong you were. (Applause.). Leon's a Catholic -- he tells me it's a character-builder. (Laughter.) He's advising me on this every day. But California is coming back. The unemployment rate is down, but much more importantly, people here are building for the long run. That's what this is. This is a decision. This thing we celebrate today is a decision that you made for yourselves, your children and your grandchildren. It's a decision you made for the 21st century. It's a decision you made by working together to prepare for tomorrow. It's not very complicated. That's what your country needs to do. And that's what I'm determined that we will do. (Applause.) Now, I want to emphasize one of our greatest challenges on this Labor Day when we reward work. One of our greatest challenges is that the global economy works so differently from the economy we've lived in, that everybody's work is no longer being rewarded. If you had told me -- I thought I understood this economy. I was a governor for a dozen years. I worked on base closings and defense conversion, everything like that, with committees like the one that made this possible. I thought I really understood this economy. But if you had told me on the day I became President that in 30 months we'd have over seven million jobs, the stock market would be at 4,700, corporate profits would be at a record high, we'd have 2.5 million new homeowners, we'd have the largest number of new small businesses recorded in any two-year period since the end of World War II, but the median wage would go down one percent, I wouldn't have believed it. And most of you wouldn't either. But technology is changing so fast -- so many jobs are in competition in the global economy, and money can move across national borders like that. And nothing any person in public life can do will stop that -- that the working people of this country that are bringing our economy back have not gotten their fair share of our prosperity. And that is our biggest challenge on this Labor Day. (Applause.) What is the answer? The answer, first of all, is not to close our borders, it's to continue to expand trade because trade-related jobs pay about 20 percent more than jobs that have nothing to do with the global economy. MORE - 8 - We can't turn away from that. (Applause.) But we have to for fair as well as free trade. And that's why I'm so proud of the agreement we negotiated with the Japanese over automobiles and auto parts. We want more trade, but on terms that are fair to all Americans. The other thing we have to do is to do more of what you're doing. We must see that all of our young people finish high school and that everybody -- everybody -- has access to education after high school. We've got to open the doors of college education to all Americans. (Applause.) Our administration has worked hard to make more affordable college loans available to all the young people in this country. Millions of people now can borrow money to go to college at lower cost on better repayment terms. We have worked hard to try to increase our investment in education from Head Start through college. I have two proposals now before the Congress in our balanced budget plan that I pray will pass. One would give American middle class people a tax deduction for the cost of all education after high school -- (applause) -- without regard to the age of the people who get it. (Applause.) The other would collapse about 70 different government training programs into a big pot of money. And whenever anybody is unemployed or underemployed or on welfare, they could get a voucher worth $2,600 a year to take to the nearest community education institution like this one. (Applause.) Don't go through a program -- go to your local institution. (Applause.) That's something we could do to provide a G.I. Bill in our time for America's working people. (Applause.) Those two things would lift the incomes of the American people. I also think we ought to raise the minimum wage. (Applause.) Let me tell you, if we don't raise the minimum wage this year, on January the 1st of next year, our minimum wage in terms of what the money will buy will be at a 40-year low. I want a high-wage, high-growth, high-opportunity, not a hard-work, low-wage 21st century. And I think you do, too. (Applause.) And that's what we ought to do. (Applause.) Now, I believe that the reason wages are stagnant for so many people is that we haven't done enough to educate our people. We haven't done enough to try to raise the incomes of our people. The government can't do all that, however. The people in the private sector have a responsibility, too. The best American companies are out there today sharing their profits with their workers and making sure that they're well-treated. And all American companies on this Labor Day should be challenged to follow the example of the best American companies. The MORE - 9 - people of this country are our most important resource. (Applause.) In the next year or so, all of you are going to have to decide what you think the answer to this wage problem is. There are people who will tell you that the answer to the -- the real reason middle class wages are stagnant is that welfare people are taking all your tax money away, or that we have too many immigrants, or that affirmative action is destroying opportunities for the middle class. Well, let me tell you, in each of those areas, we have problems. But that's not the real reason for the middle class economic anxieties. We ought to move more people from welfare to work because they'd be better off and their kids would be better off and our country would be stronger. But the welfare rolls are going down as the job rolls go up. It's only five percent of our budget. I want desperately to have more welfare reform. I've done more in the last two years than was done in the previous 12 years to have more welfare reform. I have done more in the last two years than was done in the previous 12 years to move people from welfare to work. And I will continue to do that. But if we want to raise wages of middle-class people, we have to have good jobs, good educations, and a competitive economic policy. If you look at the immigration issue, there are problems. We have too many illegal immigrants in the country. We've done what we could to close the borders and to send people back. But you know what? This is a nation of immigrants. Most of us do not have ancestors who were born here. (Applause.) So I've tried to deal with this issue in a responsible way. Former Congresswoman Barbara Jordan, a great American, headed a commission for us and said, here's how you can relieve the problems of immigration in America and still make us a nation of immigrants. When I was in Hawaii -- let me just tell you one story. When I was in Hawaii for the 50th anniversary of World War II, the commission asked me if I would spend the afternoon playing golf with six veterans of World War II. And I did, and we just sort of lolled around. We didn't even finish the round. We had the best time in the world talking. Let me tell you, one of those men was a Japanese American who came to this country on his own as a boy because he dreamed of coming to America. When the war broke out, they put him in an internment camp. He still volunteered to serve his country. By the grace of God, the war ended about three days before he would have been MORE - 10 - on an island fighting against two of his own brothers who were in uniform for Japan. When the bomb was dropped in Japan, it injured his house, and his mother and his youngest brother subsequently died of radiation poisoning. There's not another country in the world that could tell that story. Why? Because people from all over the world wanted to be part of what is America. And we should never forget that. We'll have times when we can have higher immigration quotas and times when we should have smaller ones because of the economy and how much it takes to absorb people. But we should never, ever, ever permit ourselves to get into a position where we forget that almost everybody here came from somewhere else, and that America is a set of ideas and values and convictions that make us strong. (Applause.) I feel the same way about this affirmative action issue. I have lived with this for 20 years now. And let me tell you, there are problems with the affirmative action programs of the federal government. I've already abolished one that I thought was excessive. And I was glad to do it. And we're reforming a lot of them. But let me tell you that we are a better, stronger country because we have made a conscious effort to give people without regard to their race or gender an opportunity to live up to their God-given capacities. (Applause.) We are a better, stronger country. (Applause.) I'm against quotas. I'm against reverse discrimination. I'm against giving anybody unqualified anything they're not qualified for. But I am for making a conscious effort to bring the American people together. If you doubt it, look at our military. We have the best military in the world. Nobody doubts it. (Applause.) It's the most successfully integrated institution in the United States of America and nobody unqualified gets anything. But there was a conscious effort made to do that. Last year, a quarter of a million new roles were open to American women in military services and they're doing every one of them very well. And that's just one example. (Applause.) So I say to you, let's look at this -- let's fix the problems in America, but let's do it with common sense. Let's look for common ground. Let's do it the way you built this great institution. Let's do it in a way that will grow our economy. So when we come back to Washington, we've got some tough decisions to make. I've got a plan to balance the budget. The Congress has two different plans in the MORE - 11 - House and Senate. We have to cut government spending. I'm all for that. But we ought not to cut education. We ought to increase our investment in education as we balance the budget. (Applause.) We ought to cut taxes, but we shouldn't cut taxes so much and give such tax cuts to people who don't need them that we have to cut Medicare and Medicaid and hurt our obligations to the elderly people in this country -- (applause) -- who depend upon them for health care. (Applause.) We ought to cut the size of government and we ought to cut regulation. Let me tell you, we have already reduced the size of your federal government by 150, 000 people. It will be reduced by 270,000 people if not another law is passed by what's already been done. We have reduced thousands of regulations. We ought to do more of that. But we should not cripple the ability of the American people through their government to assure safe food, clean air, clean water and a decent environment. Because we all have a stake in that. (Applause.) I want all of you to follow this very closely. When I go back to Washington and the Congress takes up its business, this will be no ordinary time. For the first time, both parties are committed to balancing the federal budget. The question is, how will we do it and what will the priorities be. And that will determine what kind of country we're going to be. I believe we've got to work together and work for tomorrow. I do not want any more of the politics of partisan polarization. I believe the American people are pretty much like all of you sitting around here today. You are celebrating an incredible achievement that you know is a good, right, decent thing. And you are here as Americans. Now, there will be plenty of things for us to disagree on, but at this moment our national security in the 21st century depends upon our agreeing to invest in our people, and to grow our economy, and to pull our country together as we balance this budget. So the decisions made in the next 60 to 90 days will determine what kind of country we're going to be into the 21st century. And I ask every one of you, without regard to your party or your philosophy, to implore your representatives to reach for that common higher ground, to work together and to work for tomorrow. Just think about it. By Christmas, if we do our job right, we could have passed a balanced budget, provided for that tax deduction for education expenses, MORE - 12 - overhauled welfare, expanded educational opportunities, strengthened instead of undermined health care security and put our people on the road to raising their incomes as they work harder. We can do that. But we've got to do what you did here. We have got to work together and we've got to work for tomorrow. Wish us well. Insist on it and help us get it done. Thank you and God bless you all. (Applause.) END 12:36 P.M. PDT EITC Talking Points 0 The Republican budget proposal targets the Earned Income Tax Credit (EITC) for $25 billion in cuts. EITC is critical to helping low and moderate income people to stay off welfare and remain at work. The Congressional majority's proposal raises income taxes on as many as 14.4 million working American families. These working Americans - about 12% of all taxpayers - would face an average tax hike of $239 in 1996 alone. The Clinton Administration believes it is important to balance the budget and has a plan to do so. Our plan would accomplish this objective without raising taxes on those struggling to work their way out of poverty or trying to stay in the middle class. We should not balance the budget on the backs of hard working American families by raising their taxes. The EITC supports working Americans with a tax credit which helps families stay off welfare, go to work, get into and stay in the middle class. In 1996, the Administration's EITC will reduce taxes, on average, by nearly $1,400 for over 20 million American workers and their families who earn up to $28,500 a year. The EITC furthers two key goals: First, the ETTC helps move families move from welfare to work by making work pay. Second, together with the President's minimum wage, it rewards work so parents who work full-time do not have to raise their children in poverty. Social security taxes and various means-tested benefits create economic disincentives for welfare recipients to move to work; for each additional dollar a worker earns, benefits decline and payroll taxes increase. The EITC offsets these disincentives and rewards work. At the lowest income levels, the EITC grows with each dollar of earnings; more work means more working tax credits. The EITC is a welfare-to-work initiative with no bureaucracy. The ETTC (and the minimum wage) helps ensure that families who work hard and play by the rules do not have to raise their children in poverty or see their living standards decline even further. In the last twenty years, payroll taxes have increased, the minimum wage has declined to its lowest real value in 40 years, and income inequality has been growing. The EITC, now in its 20th year, has long enjoyed bipartisan support. Presidents Reagan, Bush and Clinton all expanded the credit. President Reagan called the EITC "The best anti- poverty, the best pro-family, the best job creation measure to come out of Congress." Under the Republican plan, over 2 million families in California alone - about 15% of California taxpayers - would each face a tax increase averaging $245 in 1996 and $3,319 over seven years. The over one million California families with two more children would be the hardest hit, with an average tax increase of $315 in 1996 alone. Huge cuts in this working person's tax credit will have a punishing effect on families struggling to stay even in our economy. Every dollar counts when it comes to raising a family, and this plan would take money out of the pockets of working people. It will make it harder for many to enter the workforce, force others onto welfare, and even push families out of the middle class. 0 The Republican assault on the value of work is not limited to their tax hike on working families; they are also opposing a real minimum wage; they're gutting education and training to prepare American workers to compete and win in the global economy; they are undermining workplace safety; their welfare reform proposals don't help families get off welfare and into work. Memorandum To: Gene Sperling From: Michael Barr Republican efforts to raise taxes on working families by cutting the EITC will be an important part of the budget debate this fall, for three reasons: First, Republicans cuts in the EITC are a tax hike on over 14 million working families. The impact is direct, and directly counter to the Republican's main tax cut message. Their tax breaks for the rich are a perfect foil. And we can correctly charge them with pushing families out of the middle class. Second, as the Republicans find their Medicare and Medicaid cuts harder to sustain, they will turn next to the ETTC; in order effectively to pursue our Medicare strategy, we need to cut off the EITC as an alternative place to look for budget savings, or our efforts on Medicare will be for naught. Third, in their zeal to find money for their 7 year plan and tax cuts for the most affluent, Republicans are abandoning the value of work, and of work over welfare. As you know, President Reagan called the EITC "the best antipoverty, the best pro-family, the best job-creation measure to come out of the Congress." The fight about EITC is also then a fight about the value of work. Our ETTC efforts need to be escalated during recess and early September. The push on Medicare is already bearing fruit, and there are now signs that Republicans are looking elsewhere for budget savings to fill the likely significant shortfall in their plan. We have indications that even moderate House members are seeking to triple the currently understood House cuts in ETTC. Over the past month and a half, we have been explaining the EITC cuts to the press and interested groups, and making the EITC an important part of Treasury's budget events. Secretary Rubin has highlighted the EITC in press interviews, with remarkably strong results. Favorable press stories have come out every week for the past month and a half. Now, we think a higher level of visibility is needed in key markets. We believe that this can be accomplished without distracting from the Medicare effort. Secretary Rubin will focus on EITC on Labor Day. The White House (and others) should put limited additional resources over recess into explaining the effects of the ETTC tax hikes in a handful of high-participation, anti-tax, conservative states: Louisiana, Mississippi, Alabama, and Oklahoma. Almost a third of Mississippi taxpayers, a quarter of Louisiana, a fifth of Alabama, and over 16% of Senator Nickles' Oklahomans taxpayers filed for the EITC in 1993. Later, we would suggest adding in other high utilization, conservative states such as Texas, North and South Carolina, South Dakota, or high utilization states such as Delaware (Roth). We would then add in high-utilization states, such as Rhode Island (Chafee), Oregon (Packwood), New York (D'Amato). Date: 09/14/95 Time: 15:04 House GOP Plans Cuts in Working-Poor Tax Credit, Corporate Breaks WASHINGTON (AP) House tax-writers will consider legislation next week trimming $30 billion over seven years from corporate tax preferences and carving the earned-income tax credit for the working poor by $23 billion. The money would be used to reduce the budget deficit and extend a parcel of expiring tax credits aimed at encouraging corporations to conduct research, hire the hard-to-employ and reimburse employees' tuition. If approved by the Ways and Means Committee next week, the bill would be folded into the massive deficit-reduction package expected to reach the House floor later in the fall. The tax measure, proposed by Rep. Bill Archer, R-Texas, chairman of the Ways and Means Committee, is separate from the House-passed $350 billion Contract With America'' tax cut, which includes a $500-per-child tax credit and a 50 percent cut in capital-gains taxes. Earlier this year, Archer had resisted calls by Democrats and even some Republicans, including Rep. John Kasich of Ohio, the House Budget Committee chairman, to prune so-called corporate welfare. Archer objected to loophole closing, considering it a back-door tax increase, but agreed to review existing preferences to see if any had become outdated. He said he had come up with a list of about two dozen revisions that would raise about $30 billion through 2002. I want to change business as usual by focusing on what I believe are good public policies, Archer said. Some of the loophole-narrowing provisions have been much debated, such as a GOP version of a Clinton administration proposal to tax wealthy people who renounce their citizenship to avoid federal taxes. Others had been previously announced but little noticed, such as a bipartisan proposal to limit corporations' tax-favored stock swaps. Others have received little public debate but have been hotly contested behind the scenes by lobbyists. Among these, according to a source familiar with Archer's proposal, is repeal of the Section 936 credit encouraging manufacturers to operate in U.S. territories. Existing beneficiaries, most of whom are pharmaceutical companies operating in Puerto Rico, would continue to receive the credit for 10 years. Also targeted are tax advantages for ethanol producers, large family-owned corporate farms and producers of films and other entertainment, the source said. Meanwhile, Democratic aides said Republicans plan also to reduce the earned-income credit by $23 billion over seven years. The GOP plan would tighten anti-fraud enforcement, deny the credit to childless persons and those with retirement income and eliminate it for those now at the top of the eligibility range, they said in a memo for Democratic Ways and Means members. The credit was designed as an incentive for poor families to continue working, rather than go on welfare. APNP-09-14-95 1513EDT