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THE BUSH ADMINISTRATION RECORD ON
THE AMERICANS WITH DISABILITIES ACT
"Disabled Americans must become full partners in
America's opportunity society." "
-- President George Bush
February 9, 1989
The President signed the Americans with Disabilities Act of
1990 on July 26, 1990. The Act is the broadest expansion of
the Nation's civil rights laws since the Civil Rights Act of
1964. It opens the door of opportunity to the 43 million
Americans who have some form of disability.
The legislation prohibits discrimination in employment, public
services, public accommodations, and transportation, and
provides for telecommunications relay services.
Background
The Americans with Disabilities Act began with the 1986 report
of the National Council on Disability entitled "Toward
Independence" which then-Vice President Bush accepted on behalf
of the Administration. The Council proposed broad legislation
to expand Federal civil rights laws to include persons with
disabilities.
During the 1988 campaign, Vice President Bush expressed his
support for legislation to extend to people with disabilities
the same basic equal opportunities protections that are
afforded to women and minorities.
The Administration renewed that commitment and supported such
legislation in Congressional testimony by Attorney General
Thornburgh on June 22, 1989. Negotiations between key
legislators and the Administration led to an agreement
announced by the White House on August 2, 1989.
The Legislation: Employment
The ADA prohibits discrimination against qualified persons with
disabilities because of their or their associates' disability
and requires employers to make reasonable accommodations for
qualified applicants or employees, unless an undue hardship
would result. The provisions apply to job application
procedures; hiring, advancement, or discharge of employees;
1
employee compensation; job training; and other terms,
conditions, and privileges of employment.
Employers with 25 or more employees are initially covered by
the ADA. Two years after the law takes effect, the number
drops to 15 or more. The employment provisions take effect
twenty four months after the date of enactment.
The employment title will be enforced through cases brought
before the Equal Employment Opportunity commission, suits
brought by the Attorney General, or through private lawsuits.
Public Service
The ADA prohibits State and local governments from excluding
qualified persons with disabilities from participation on or
denying them the benefits of services, programs, or activities.
Many State and local government activities are already covered
by a similar prohibition in the Rehabilitation Act of 1973; the
ADA covers all State and local governments and any department
or instrumentality of a State or local government in their
entirety.
The ADA requires every public entity which operates a fixed
route bus system to purchase only new buses or rail vehicles
that are readily accessible to and usable by individuals with
disabilities. The ADA also requires public operators of fixed
route bus systems to provide paratransit that offers a
comparable level of service to that available to individuals
without disabilities.
Intercity and commuter rail will be required to provide at
least one passenger car per train within five years that is
readily accessible to individuals with disabilities. Train
stations are to be made accessible within thirty years, with
the requirement for commuter, rapid, and light rail limited to
key stations.
The public services requirements take effect 18 months after
enactment; buses and rail vehicles ordered beginning one month
after enactment must be accessible.
Enforcement will be through complaints lodged with the
Department of Justice, Department of Transportation, or other
government agency, as appropriate, or through private lawsuits.
Public Accommodations
The ADA broadly defines public accommodations and includes
places of lodging, restaurants, theaters, concert halls,
bakeries, grocery stores, clothing stores, shopping centers,
laundromats, banks, barber shops, offices of accountants,
2
lawyers, and health care providers, museums, libraries, zoos,
homeless shelters, adoption agencies, and golf courses.
Private clubs and religious organizations are exempt.
Public accommodations are prohibited from discriminating on the
basis of disability. The prohibition extends to denying
participation, offering disabled persons unequal or separate
benefits, or would require accommodation of disabled persons in
an integrated setting, unless an undue burden would result.
In addition, newly constructed public accommodations must be
accessible. Elevators are required in buildings with three or
more stories. All public accommodations would be required to
remove architectural and communication barriers where removal
is readily achievable.
Enforcement of the public accommodations provisions will be
through suits brought by the Attorney General or through
private lawsuits.
New over-the-road buses ordered on or after July 26, 1996 (July
26, 1997, for small companies), must be accessible. After
completion of a study, the President may extend the deadline by
one year, if appropriate.
The public accommodations provisions took effect on January 26,
1992.
Telecommunications
The ADA ensures equivalent telephone services for speech or
hearing impaired persons by providing for telecommunications
relay services where they are not already available. These
services provide the ability for an individual who has a
hearing or speech impairment and uses a telecommunications
device for deaf persons (TDD) or similar terminal to communi-
cate with a hearing individual who does not use such a device.
TDD or terminal users will dial the relay service; the relay
service will in turn dial the non-TDD user and repeat the TDD
user message aloud and type the response for the TDD user. The
same service is available for voice telephone users who with to
call persons using TDDs. These provisions will be enforced by
the states and the Federal Communications Commission.
The ADA also requires closed captioning of public service
announcements produced or funded by the Federal Government.
(February 18, 1992)
3
THE BUSH ADMINISTRATION RECORD ON
CIVIL JUSTICE REFORM
"Civil justice reform is absolutely essential to
our country's well-being.
Americans
understand that civil justice reform means growth,
competitiveness, and jobs. That's why I feel so
strongly about these recommendations."
-- President George Bush
October 23, 1991
The Bush Administration is strongly committed to major reform of
America's civil justice system. The workings of that system
affect all Americans. Unfortunately, virtually every participant
knows that the costs of litigation -- in both time and money --
often outweigh the benefits. Excessive costs and unwarranted
delays do nothing to help vindicate rights.
Since the rule of law is a foundation of our society, it is
imperative that we reduce the costs and delay frequently
associated with litigation. Too many cases are brought that
should not have been, and too many cases drag on for years. So
the President's Council on Competitiveness, chaired by Vice
President Dan Quayle, authored the Agenda for Civil Justice
Reform in America which proposed 50 specific reforms to reduce
the costs and delays in the system, open the courthouse doors,
and guarantee people their day in court.
None of the recommendations impairs any substantive rights;
instead, they will help ensure that deserving victims actually
receive their compensation earlier and at less cost.
Five areas are targeted for major reforms:
Discovery. The Administration's reforms will discourage
overuse and abuse of discovery.
Punitive Damages. Our proposals restore fairness by placing
appropriate limits on punitive damages, bifurcating trials,
and requiring clear proof of wrongdoing.
Fairness Rule for Attorneys' Fees. We recommend mechanisms
to make the prevailing party whole by making the loser pay
the winner for his or her legal fees.
Expert Evidence. We must make certain that expert testimony
is an objective aid to the court, not unfounded "junk
science.' "
"Multi-Door Courthouse." This proposal to promote
alternative dispute resolution affirms that citizens must
have greater choice to elect an effective alternative to
court adjudication.
Specific recommendations for reform include requiring disclosure
of "core information" as part of the discovery process,
penalizing abusive discovery practices, maintaining safeguards
for trade secrets during litigation, requiring judges to set
early trial dates, requiring expert testimony to be limited to
"widely accepted" theories, and reform of the procedures in cases
involving punitive damages.
Federal Reforms
The President has issued an Executive Order on Civil Justice
Reform directing Federal litigators to implement immediately the
Agenda for Civil Justice Reform in America recommendations in
civil litigation involving the United States Government. The
President's directive seeks to produce a more fair American legal
system by making Government attorneys a model for parties in the
private sector. The Executive Order will be a catalyst for
reform by the Congress as well. The Bush Administration has
transmitted the "Access to Justice Act of 1992" calling for
enactment of those reforms that can only be accomplished through
changing the law. We have also asked the Supreme Court to revise
the rules of procedure and evidence to help make the system more
rational and efficient.
State Reforms
Many reforms proposed for the Federal system may be equally
applicable to the State court systems. As a result, the
Administration has published the Civil Justice Reform Model State
Amendments and a Model State Punitive Damages Act to assist with
reforms in the State systems. Reform at the State level could
have a dramatic effect, since most litigation occurs in State,
not Federal, courts.
Private Sector Activities
The White House has received thousands of letters from
individuals, small businessmen, corporations, and public interest
groups pointing out problems with our current civil justice
system. This broad-based showing of the need for civil justice
reform is a resounding endorsement of the Administration's
initiative. And just as the Executive Order is effective
guidance for Federal attorneys, many private parties are finding
that they can use the recommendations as guidelines in resolving
disputes as well.
The Bush Administration is committed to the fair, efficient, and
early resolution of disputes. We have called upon every branch
of government at every level to join us in this crucial battle to
help reduce the burdens of excessive and needless legislation.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
CIVIL RIGHTS
"Discrimination, whether on the basis of race,
national origin, sex, religion or disability, is
worse than wrong. It's an evil that strikes at
the very heart of the American ideal. "
-- President George Bush
November 21, 1991
Opportunity
The Bush Administration's approach to civil rights is based on
two fundamental goals: equal opportunity and enhanced
opportunity. The Administration's accomplishments include
successes on several fronts: existing laws have been vigorously
enforced, new legislation has been sought where appropriate, and
several new milestones have been reached in the long quest to
ensure that all Americans can achieve everything that their
ability and character allow.
The Americans with Disabilities Act of 1990
The culmination of several years of effort, the ADA is generally
recognized as the most significant civil rights legislation in
the past quarter century. This landmark statute, for which
President Bush began working long before he was elected
President, promises to open up all aspects of American life to
individuals with disabilities: employment opportunities,
government services, public accommodations, transportation, and
telecommunications.
The ADA is the world's first comprehensive declaration of
equality for people with disabilities. Its passage has made the
United States the international leader on this important human
rights issue. It ensures that persons with disabilities enjoy
basic guarantees that most of us take for granted: independence,
freedom of choice, control of their lives, and the opportunity to
blend fully and equally into the rich mosaic of the American
mainstream.
With major, innovative legislation like the ADA, implementation
by the Executive branch can be as important as the statute
itself. The Bush Administration has moved quickly and decisively
to carry out a variety of new programs that will fulfill the
promises of the statute.
The Civil Rights Act of 1991
President Bush has consistently supported efforts to strengthen
legal protections against employment discrimination, while
resisting counterproductive proposals that would have led to
quotas and unfair preferences.
In October 1990, the President announced with regret that he was
compelled to veto a defective civil rights bill that would have
harmed rather than helped the cause of civil rights. After a
year of hard work by the Administration and congressional
leaders, a new bill was devised. As the President noted when
signing it into law on November 21, 1991, "[T]his bill will not
encourage quotas or racial preferences because this bill will not
create lawsuits on the basis of numbers alone."
The new statute codifies the doctrine of disparate impact,
thereby assuring that American workers are protected against
employment policies with discriminatory effects as well as
against those adopted with an intent to discriminate. At the
same time, the new law preserves the major evidentiary safeguards
devised by the Supreme Court to prevent this doctrine from
inducing employers to adopt quotas or other unfair preferences.
In addition to numerous other provisions that strengthen our
employment discrimination laws, the Civil Rights Act of 1991
expands both the right to challenge discriminatory seniority
systems and the statutory prohibition against racial
discrimination in connection with employment contracts. The new
law also creates, for the first time, meaningful monetary
remedies for all forms of workplace harassment outlawed under
Title VII of the Civil Rights Act of 1964.
Reflecting the President's belief in the desirability of solving
problems outside the courtroom, the new civil rights act contains
several significant innovations. Along with strong new remedies
for the victims of discrimination and harassment, for example,
the statute has provisions capping damages that are an important
model to be followed in tort reform. The new law also
specifically encourages mediation and arbitration between parties
before the last resort of litigation. As the President pointed
out: "Our goal and our promise is harmony -- a return to
civility and brotherhood -- as we build a better America for
ourselves and our children."
Hate Crime Statistics Act
The Bush Administration has vigorously prosecuted Federal
violations involving hate crimes, and will continue to do so.
Thanks to the Hate Crime Statistics Act, which the President
signed into law on April 23, 1990, the Administration will be
able to determine whether new enforcement measures are needed to
bring hatemongers out of hiding and into the light of justice.
At the same time, by collecting and publicizing this information,
we can shore up our first line of defense against the erosion of
civil rights by alerting the cops on the beat. As President Bush
noted when signing this bill: "For America to continue to be a
good place for any of us to live, it must be a good place for all
of us to live."
Strong Enforcement of Civil Rights Laws
The Administration has vigorously pursued enforcement of civil
rights laws. For instance, 35 cases of hate crimes were
prosecuted in FY 1990 and 30 in FY 1991, with conviction rates of
100% and 98% respectively. The Justice Department received over
600 redistricting plans under the Voting Rights Act in FY 1991.
Payments continued to Japanese-Americans interned during World
War II under the Civil Liberties Amendments Act of 1988. In the
Departments:
By early 1991, HUD had resolved nearly 12,000 of 16,000
outstanding fair housing cases.
In 1990, Education received and resolved more civil rights
complaints than in any previous year in its history -- and
in record time.
The largest settlements in the history of Labor's Federal
Contract Compliance cases were achieved in this
Administration. A single case involving employment
discrimination against women and minorities resulted in a
payment of $14 million. Another case resulted in a back pay
settlement of $3.5 million for approximately 1000 women who
were discriminated against in hiring.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
IMMIGRATION
"[I]mmigrants have enriched the United States
beyond measure
they have shared eagerly
in the hard work of freedom, helping to defend
the ideals of liberty and self-government and
helping to build our churches, schools,
factories, farms, and railroads."
-- President Bush
December 27, 1991
On November 29, 1990, the President signed into the law the
most comprehensive reform of our immigration laws in 66 years
-- the Immigration Act of 1990. The Act provides for a
significant increase in the total number of immigrants
permitted to enter the United States each year, promotes family
reunification, and encourages immigration of skilled persons.
The Administration's Immigration Policy
The President believes that our immigration policies should
serve two purposes: to help reunite families, thereby
reinforcing the family as the essential unit of society, and to
encourage the admission of skilled immigrants. Such talented
workers improve the competitiveness of our workforce and help
relieve labor shortages in key technical areas. In order to
prevent illegal immigration, we must ensure that our
immigration laws are fairly and effectively enforced.
Reforming Immigration
The Immigration Act of 1990 represents a comprehensive reform
of our laws relating to legal immigration.
The Act provides that total immigration may increase from
540,000 in 1989 to 700,000 per year from 1991-1995. After
1995, total immigration levels will be at least 675,000.
The Act more than doubles annual employment-based
immigration, from 54,000 to 140,000 per year. New
criteria help to increase the average skill levels of
these immigrants and encourage the immigration of
exceptionally talented people, such as scientists,
engineers, and educators.
The Act continues very generous treatment immigration
treatment for immediate family members.
Forty thousand visas annually through 1994 are allocated
specifically to broaden the diversity of our immigrant
pool. This number will rise to 55,000 in 1995.
Several arbitrary immigration exclusion grounds were
eliminated, allowing increased immigration from the former
Soviet bloc and other newly democratized countries.
Apprehending and Deporting Criminal Aliens
The Administration is taking a number of measures that should
enable Federal, State, and local law enforcement officials more
effectively to identify, apprehend, detain, and deport aliens
who commit criminal acts.
The Immigration and Naturalization Service (INS) will add
95 criminal investigators to expand law enforcement. Of
these, 22 agents will be assigned to Organized Crime Drug
Enforcement Task Forces. The total budget for INS will
increase by $174 million over the 1992 level of $1.3
billion.
To assist Federal, State, and local law enforcement
agencies to identify quickly illegal aliens arrested for
criminal activity, the INS will establish a National
Operations Support Center to provide a centralized
database for storing criminal alien information.
To provide for expedited deportation proceedings against
criminal aliens, the INS and the Executive Office of
Immigration Review (EOIR) have implemented an
Institutional Hearing Program. The program enables
deportation proceedings to begin for aggravated felons and
other criminal aliens while they are still serving their
sentences. In many cases, the alien can be immediately
deported upon completion of the sentence.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
THE RIGHT TO LIFE
"As I look back
I am encouraged by the progress
which has taken place. Attempts by Congress to expand
funding, Federal funding for abortions have been
defeated, and the Supreme Court has taken welcome steps
toward reversing its Roe V. Wade decision."
-- President George Bush
January 22, 1991
"[A]bortion deals with the lives of two human beings,
mother and child."
-- January 23, 1989
While the United States boasts a long and honorable tradition of
respect for human life and the rights of individuals, one key
issue related to the sanctity of life is a divisive one in
America today: the issue of abortion. Throughout his time in
office, President Bush has remained a steadfast defender of the
unborn person's right to life. He recognizes that persons of
goodwill may disagree on this issue, one of the most complex and
difficult Americans face today.
The President's Position
The President has devoted much time and careful thought to this
issue over the years and has not reached these decisions easily
or lightly. He is opposed to abortion except when the life of
the mother is threatened or when there is rape or incest. In
addition, he opposes the use of Federal funds to pay for abortion
except when the life of the mother is threatened.
Supporting the Hyde Amendment
Abortion is a deeply emotional and very personal decision for all
Americans. It is made even more difficult when the underlying
issue is whether the government -- and ultimately the American
taxpayer -- is asked to pay for abortions and under what
circumstances. Since 1981, the Federal Government has determined
that taxpayer funds should be used for abortion in only the most
narrow of circumstances: where the life of the mother is
endangered (the "Hyde Amendment").
President Bush has firmly resisted Congressional efforts to
change the Hyde Amendment. He has vetoed five Congressional
attempts to amend the Hyde Amendment or otherwise expand Federal
support for abortion:
HR 2990, Labor, HHS, and Education, and Related Agencies
Appropriations Act, FY 1990 (10/21/89)
HR 3026, District of Columbia Appropriations, 1990
(10/27/89)
HR 3610, District of Columbia Appropriations, 1990
(11/20/89)
HR 2699, District of Columbia Appropriations, 1992 (pocket
veto effective midnight 8/17/91)
HR 2707, Labor, HHS, Education, and Related Agencies
Appropriations, 1992 (11/19/91).
Congress has not overridden any of these vetoes, and acceptable
language on abortion has been substituted in the final bills.
Other Federal Efforts
The President supports other Federal policies designed to
discourage abortion:
The Defense Department prohibits abortions at U.S. military
facilities, unless the life of the mother is endangered.
Current law prohibits U.S. Government contributions to
international organizations involved with coercive abortion
programs. To maintain this standard, the President vetoed
HR 2939, Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1990. This bill would have
repealed the Kemp-Kasten Amendment, which denies U.S.
population assistance funds to any organization that
supports or participates in the management of any program
that includes coercive abortion or involuntary
sterilization.
The President strongly supports international family
planning programs which do not involve these objectionable
activities.
Title X Regulations
HHS has promulgated regulations that prohibit the use of Federal
family planning funds for abortion-related activities. President
Bush vetoed HR 2707 on November 19, 1991, because it sought to
prohibit implementation of these regulations. The President
issued a Presidential Memorandum to Secretary Sullivan
reaffirming that these regulations in no way inhibit with the
confidentiality of the doctor/patient relationship. The
Administration seeks to ensure both that the integrity of Title X
as a prepregnancy family planning program is maintained and that
women who are pregnant, or have a medical problem, are referred
to providers who can ensure continuity of care. Nothing should
prevent a woman from receiving complete medical information about
her condition from a physician, and the Supreme Court
specifically found that these Title X regulations in no way
violate free speech rights.
Promoting Adoption
As the President has said, "there is a better way: the way of
adoption, the way of life." The President has repeatedly called
for America to turn away from abortion towards alternatives such
as adoption. Our Nation has finally begun to dismantle legal,
financial, and attitudinal barriers to adoption, and the Bush
Administration is working with State and local governments to
encourage adoption.
The Administration has proposed to restore and double to
$3000 the special needs adoption tax deduction, effective
for adoptions on or after February 1, 1992.
But there is still much work to do. We must continue to promote
public awareness of adoption and to find ways of bringing
prospective parents together with the thousands of children who
continue to wait. Finally, we must continue to offer
encouragement to the courageous women who, despite the pressures
of a crisis pregnancy, reject abortion and choose life for their
unborn children.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
PROTECTING OLDER AMERICANS: SOCIAL SECURITY
To every American out there on Social Security, to
every American supporting that system today, and to
everyone counting on it when they retire: we made
a promise to you -- and we are going to keep it.
-- President George Bush
January 31, 1990
Not Fixing What Isn't Broken
The Bush Administration has one guiding principle when it comes to
Social Security: what isn't broken doesn't need fixing. The
Social Security system is sound, and the best way to keep it sound
is to leave it just the way it is.
More Americans than Ever Rely on Social Security
When President Bush took office, 34.6 million Americans
received Old Age and Survivors benefits and another 4.1
million received Disability Insurance benefits, for a total
of 38.6 million Americans.
Three years later, 36.1 million Americans receive Old Age and
Survivors benefits and 4.5 million receive Disability
Insurance benefits, for a total of 40.6 million Americans.
Benefits Have Risen
Social Security beneficiaries have received full cost of
living adjustments (COLAs), including 3.7% for 1992.
Average benefits for retired workers have risen from $537 to
$629 per month since President Bush took office.
Liberalizing the Earnings Test
If Social Security recipients aged 65 to 69 wish to supplement
their benefits with earnings, they may earn only up to $10,200 this
calendar year before their Social Security benefits are reduced.
Beyond this limit, each three dollars of earnings reduces benefits
by one dollar. Presently, this earnings test falls most heavily
on older Americans who do not have significant savings or income
employment. from pension plans and can seriously constrain their choices of
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
POINTS OF LIGHT
"From now on in America, any definition of a
successful life must include service to others.' "
-- President George Bush
President Bush has placed voluntary community service -- the
Points of Light movement -- at the top of the Nation's agenda.
On taking office in January 1989, the President established the
White House Office of National Service, the first office within
the White House devoted exclusively to encouraging community
service. Often called the "White House Points of Light Office,"
its mission has been to help the President develop and implement
his community service strategy for the nation.
The Strategy
This strategy has three parts:
1.
To change the Nation's attitudes about service and call
every individual and institution in America to claim
society's problems as their own.
2.
To identify, enlarge, and multiply successful community
service initiatives across the country.
3.
To discover and develop new community service leaders within
every institution in America.
Presidential Activities
Through a wide variety of leadership activities, the President
has used the "bully pulpit" to foster the growth of the Points of
Light movement. He has made more than 350 speeches and public
statements, authored op-ed articles for major publications, taped
public service announcements, sent written messages to hundreds
of volunteer events, regularly visited individuals and groups
engaged in community service, and participated in other events
calling attention to community service.
Daily Points of Light. Each day, Monday through Saturday,
the President honors an individual, group, or organization
for an outstanding effort to solve a social problem through
community service. By January 1992, well over 600 Daily
Points of Light, who exemplify practical solutions to nearly
every serious social problem, had been named. Daily Points
of Light have come from all sectors of society -- families
and individuals, schools, places of worship, clubs and
neighborhood groups, businesses and labor unions, and other
associations.
Addressing these Daily Points of Light gathered in Orlando,
Florida, on September 30, 1991, the President called for
"Communities of Light," where each school, business, place of
worship, and group in a community would become a Point of Light.
The White House Office of National Service
Through the Office of National Service, the President calls on
all leaders to pursue a nationwide strategy to engage every
American in community service. He recognizes and honors
individuals and organizations with the Daily Point of Light Award
and the President's Annual Points of Light Awards and, through
these awards, encourages others to replicate "what works.' " In
addition, the Office helps support institutions that build and
strengthen the movement, such as the Points of Light Foundation,
the Commission on National and Community Service, and the ACTION
agency. It also proposes policy initiatives that reduce barriers
to voluntary service, such as the protection of volunteers from
unwarranted liability.
The Points of Light Foundation
The President called for and serves as Honorary Chairman of this
independent, nonprofit organization. Established in 1990, the
Foundation's mission is to engage all Americans in direct and
consequential community service aimed at solving serious social
problems. Its work has five major areas of concentration:
Communications: national advertising campaigns and other
means of calling Americans to engage in voluntary service.
Outreach: challenging business, education, and nonprofit
leaders to greater and more effective engagement in
community problem-solving.
Youth Engaged in Service (YES) encouraging young people to
take part in solving the problems of their communities.
President Bush called for this initiative in 1988.
Local Points of Light Networks: community service
clearinghouses, built from the nearly 400 local volunteer
centers with which the Foundation is affiliated.
Servlink: institutions and means of communications in every
community that will link people to community service
opportunities.
The Commission on National and Community Service
Authorized by the National and Community Service Act of 1990, the
Commission became operational in 1991. It seeks to promote the
development of a major national community service movement,
focused initially on youth but welcoming all. The Commission's
task is to provide funding, training, and technical assistance to
States and communities to develop and expand service opportuni-
ties. The Commission is administered by a 21-member Board of
Directors nominated by the President and confirmed by the Senate.
Volunteer Liability Reduction Initiatives
The President has proposed three major initiatives to reduce
concerns about unwarranted liability as a barrier to
volunteering:
The National Center for Community Risk Management and
Insurance. The President called for the creation of this
national clearinghouse to reduce liability barriers to
volunteering. The Center, which began operating in 1991,
provides educational materials and encourages corporate risk
managers to help community programs. It will also analyze
and propose means of addressing insurance needs.
The Model State Volunteer Service Act. The President has
proposed a model State act to reduce volunteer liability.
Adopted by Alabama and Delaware, it is currently under
consideration by the legislatures of many other States, in
at least 15 of which it has been formally introduced.
Amendments to the Risk Retention Act. The President has
proposed certain amendments to this Act to enable volunteer
organizations to obtain insurance more easily.
The President's Annual Points of Light Awards
Formerly called the President's Volunteer Action Awards,
President Bush gives this recognition to individuals and programs
that help achieve one of five goals for their community:
Exceptional care for children and youth developing good
character and values.
Excellent schools and a culture that fosters lifelong
learning.
Employment opportunities and the hope of economic
advancement.
A decent, drug-free and safe place to live in a clean
environment.
Quality health care and a sense of well-being.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
SUPPORT FOR SCIENCE AND TECHNOLOGY
"Of all humanity's concerns, the power of knowing
is the greatest pursuit [and] the surest promise
for a brighter future
So let us pursue
the adventure of science as a sacred trust. Let
us keep the fire of the American mind burning
brightly for the sake of the future that our
children deserve."
-- President George Bush
February 15, 1991
The Bush Administration fully recognizes the profound impact of
science and technology on our lives and on our world, and science
and technology have been central elements of Bush Administration
policies. In the three years since George Bush became President,
Federal support for nondefense R&D has gone up by a third. Basic
research funding has gone up by one quarter. Defense research
and programs have grown, although the defense budget has
decreased. And President Bush has taken a number of actions to
increase the coordination and effectiveness of Federal efforts in
science and technology.
An Investment in Our Future
The Bush Administration views support for science and technology
as a vital investment in our national future. Nearly all the
great post-war inventions -- computers, microelectronics, genetic
engineering, fiber optics, to name but a few -- were invented in
America. The U.S. effort in science, the most accomplished
scientific effort in history, has provided a strong foundation
for the development of new technologies which have been
successfuly applauded by the private sector. Many of these new
technologies reflect America's fundamental commitment to
scientific and technological leadership and the ongoing
partnership between the Federal Government and American
universities and research establishments.
Administration Actions
The Fiscal Year 1993 budget reaffirms the President's commitment
to science and technology. It proposes to spend $76 billion for
research and development, with particular emphases on civilian
research and development, which would go up 7% from FY 1992
levels, and on basic research, which would go up 8%.
Specific Administration actions in basic research include:
Increasing support to individual investigators in our
Nation's colleges, universities, and other research
institutions
Continuing to decipher the human genetic code through the
Human Genome Project
Focusing on competitive research through the National
Research Initiative in agriculture
Building the major facilities -- such as telescopes,
satellites, and particle accelerators -- that will take
scientists to the frontiers of their fields.
The President has proposed to keep funding for the National
Science Foundation -- a major source of support for the
individual investigators who are the backbone of American science
-- on a path that would allow it to double over the period 1987-
1994.
In civilian applied research and development, the Administra-
tion's strategy is to invest in areas of R&D that support agency
mission requirements but also have potentially broad applications
in the private sector, even though the commercial applications
themselves would not be funded by the government. In such cases,
the government's role is to support the development of generic or
enabling technologies at the preemption stage of R&D. This
strategy emphasizes collaborative arrangements with industry and
academia.
Increasing Coordination
Funding increases are only one measure of the Administration's
commitment to research and development. It has also organized
special interagency Presidential Initiatives in areas of
particular promise and importance. It has sought to speed the
transfer of technology from Federal laboratories to private
industry. And it has worked to foster an economic climate in
which industries can invest in the R&D that will keep them
competitive -- for example, by proposing that Congress make the
Research and Experimentation tax credit permanent.
In addition, the President upgraded the Science Advisor to the
rank of Assistant to the President for Science and Technology,
established a high-level President's Council of Advisors on
Science and Technology (PCAST), and revitalized the Federal
Coordinating Council for Science, Engineering, and Technology.
The United States has led the world into the modern age of
science and technology. Now the Bush Administration is ensuring
that we will lead the world into a future of even greater
accomplishment.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
ADVANCED MATERIALS AND PROCESSING
"We are committed to making the investments now
which will lay the groundwork for American
leadership in the 21st century."
-- President George Bush
February 9, 1989
The Bush Administration is committed to U.S. scientific and
technological leadership in advanced materials and processing
R&D. Advanced materials and advanced processing of materials are
critical to the Nation's quality of life, security, and economic
strength. Advanced materials are the building blocks of advanced
technologies. Millions of manufacturing jobs depend on the
availability of high quality specialized materials.
Materials science and engineering has become as fundamental to
technology development as mathematics is to the natural sciences.
Exploiting the unprecedented opportunities in materials science
and technology will require cooperation throughout government,
academia, and industry.
The Advanced Materials and Processing Program
The Administration's FY 1993 budget launched a Presidential
Initiative on advanced materials and processing, coordinated
across 10 agencies. This Advanced Materials and Processing
Program (AMPP) will improve the manufacture and performance of
materials to enhance the Nation's economic growth, security,
industrial productivity, and quality of life. For FY 1993, the
Administration requested $1.82 billion for the program.
This Presidential Initiative will focus on synthesis and
processing -- areas that encompass the development of new
materials and new technologies to process materials and the
integration of processing with design and manufacturing
requirements. The program will focus special attention on how
universities, government laboratories, and industry can work
together and on the process of technology transfer from basic
research to applications. In this way, it will emphasize
programs aimed at bridging the gap between the innovation of new
materials and their applications.
Working with the Private Sector
The President's program reflects the recommendations of private
sector organizations as well as the mission needs of the
individual agencies involved. Interactions with the private
sector will be emphasized as the initiative progresses to improve
the synergy between the Federal R&D program and industrial
research activities.
The United States has been the world leader in fundamental
materials science and technology research. Advanced materials
have applications throughout our economy, from aircraft to
computers to automobiles and the President is determined that the
United States extend its leadership in this key area of science
and technology for the 21st century.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
BIOMEDICAL RESEARCH
"If American medicine is to continue to do the
job, we must maintain our world leadership in
medical research and development
The clock
is ticking, and medical breakthroughs tomorrow
depend on action today."
-- President George Bush
February 22, 1990
The President's strong support for medical and life sciences
research has brought us to the dawn of an era in which
discoveries in basic science promise new methods for the
prevention and treatment of disease and disability.
The Bush Administration's policies recognize that new knowledge
and new techniques for both prevention and treatment now promise
a significantly improved quality of life. For example, new
vaccines, new drugs, low-cost and simpler diagnostic techniques,
and improved methods of treatment are leading to better health
throughout life and improved medical management.
Support for Biomedical Research
The President has proposed larger increases for biomedical and
behavioral research than has any President in history. In the
Fiscal Year 1993 budget, he proposed an investment of $10.6
billion for health research, an increase of 35% over the amount
appropriated in FY 1989. A particular emphasis has been research
by individual investigators, who produce much of the fundamental
new knowledge on which major advances are based.
A Base for the Future
Federally supported researchers have contributed in a number of
other ways to our national well-being. They have developed many
of the tools used in biotechnology, fast becoming a major
American industry. They have trained the researchers and doctors
who will use and build on their work. And they are part of long-
term programs -- such as the Human Genome Project -- that will
provide the body of information needed for future breakthroughs.
Deregulation and Incentives
The Bush Administration is working to reform the drug approval
and other related regulatory processes so that patients do not
unnecessarily wait for the approval of new therapies and
diagnostics. The Administration is working to improve the
economic climate in which industries can invest in R&D that will
keep them competitive -- for example, by proposing that Congress
make the Research and Experimentation tax credit permanent,
proposing capital gains incentives, and supporting process patent
legislation.
Areas of Focus
The Administration has launched a new decade-long research
program that could lead to greatly improved means for the
prevention of three of the leading causes of death and disability
among women -- cardiovascular diseases, cancer, and osteoporosis.
Human gene therapy experiments now being conducted at the
National Institutes of Health offer hope for many individuals
with genetically related disorders.
The fundamental science of drug and alcohol addiction is being
studied through research supported by the Alcohol, Drug Abuse,
and Mental Health Administration, with the goal of reducing the
human and social toll caused by substance abuse. Rapid advances
in neurobiology promise hope for the victims of Alzheimer's
disease and other serious neurological illnesses. AIDS research
is being funded at a level over $1 billion. Infant health and
mortality, illnesses common among the elderly, and health
problems among minorities and the underserved are all receiving
special attention. In addition, the Administration is working to
ensure that government-sponsored research and private research
move more quickly into the marketplace.
Toward the Future
The United States is entering an era when basic biological
knowledge will provide a foundation for improved and more cost-
effective medical care, a better quality of life for people not
only in this country but around the world, and increased economic
growth. The Bush Administration is committed to sustaining and
expanding U.S. leadership in this vital area.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
BIOTECHNOLOGY RESEARCH
"Scientific and technological advancement have
always been at the very heart of our nation's
pioneer spirit, pushing the boundaries of our
knowledge, creating economic opportunity, and
increasing our standard of living and making this
a healthier and safer world in which to live."
-- President George Bush
March 3, 1989
The President recognizes the importance of biotechnology to our
future technological strength, economic growth, health, and
quality of life. The United States has been the world leader in
biological research for the past 30 years, providing a foundation
for current U.S. preeminence in biotechnology research. This
leadership, however, is being challenged as the field changes and
rapidly expands.
Biotechnology has the potential to change and improve virtually
every facet of American life, from the food we eat and the water
we drink to the energy that fuels our machines and the materials
from which they are constructed. In addition, it offers novel
approaches to conquering disease, reducing world hunger, and
reducing environmental pollution.
Biotechnology will also be a powerful influence on our Nation's
economic growth and industrial leadership. Biotechnology
products had estimated sales of $4 billion in 1991 with prospects
for growth to more than $50 billion within the next ten years.
These advances will require careful planning across Government
agencies and close cooperation with the Congress and the wide
variety of industrial users of biotechnology.
The Biotechnology Research Initiative
In the Fiscal Year 1993 budget, the President proposed a national
Biotechnology Research Initiative designed to extend U.S.
leadership in biotechnology research and commercialization for
the 21st century. The budget requests over $4 billion for the
program, an increase of 7% above the FY 1992 level and 18 percent
over the last two years.
Twelve Federal agencies participate in the Biotechnology Research
Initiative, with research efforts in areas ranging from the use
of microorganisms to clean up the environment and marine
biotechnology to human genome research and molecular medicine.
The largest fraction of the budget will support programs in the
Department of Health and Human Services -- primarily the National
Institutes of Health -- but large increases in funding over FY
1992 levels are proposed for research related to manufacturing,
bioprocessing, energy, and the environment.
Reducing Regulatory Barriers
Under the Biotechnology Working Group of the Council on
Competitiveness, the Bush Administration is also working to
remove unnecessary or outdated regulatory barriers in order to
maximize the benefits that biotechnology can provide to the
American people. In this way, the Federal Government can help
the private sector bring new discoveries to the marketplace to be
available for all Americans and the rest of the world.
Through its support of biotechnology research and regulatory
reform, the Bush Administration is taking advantage of the
countless opportunities offered by our new understanding of the
living world.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
HIGH PERFORMANCE COMPUTING AND COMMUNICATIONS
"The development of high-performance computing and
communications technology offers the potential to
transform radically the way in which all Americans
will work, learn, and communicate in the future.
It holds the promise of changing society as much
as the other great inventions of the 20th
century."
-- President George Bush
December 9, 1991
Part of the Administration's strategy to enhance U.S.
competitiveness is a special initiative in high-performance
computing and communications. This initiative will result in new
private sector jobs and new opportunities for sustained economic
growth. It is an excellent example of how the government,
industry, and academia can work together on the underlying
research needed to develop new and important technologies.
In less than a lifetime, information technology has become the
largest and the fastest growing industry in the world. The
industry was largely invented in America, and America continues
to lead the world in information technology. President Bush is
committed to maintaining and strengthening that lead.
The HPCC Program
In the Fiscal Year 1992 budget, the President proposed an
interagency initiative in High Performance Computing and
Communications (HPCC). Nine agencies are participating in the
program. Congress appropriated $655 million for the initiative
in FY 1992. For FY 1993, the President proposed a budget of $803
million for the initiative -- an increase of 23%.
The goal of the HPCC initiative is to meet, by 1996, the needs of
Federal agencies to investigate and understand a wide range of
fundamental scientific and engineering problems. These have
applications throughout our society and economy.
To achieve this goal, the program has adopted a number of
strategies. It is fostering novel computer designs in which a
single architecture can span the range from desktop to teraop
(trillions of operations per second) models. It is pursuing
"Grand Challenge" applications -- important problems throughout
government and industry that are beyond current computing
capabilities -- to achieve software innovations and serve major
human needs. It is seeking to combine the power of major
computing resources with extremely fast communications and to
make that combination more widely available through a high speed
National Research and Education Network (NREN). And it is
developing the human resources needed for information technology
in the United States through the support of basic research.
These four components of the program -- Computer Systems,
Advanced Software Technology and Algorithms, the National
Research and Education Network, and Basic Research and Human
Resources -- are all poised for major advances.
Broad Public and Private Support
The President's program has enjoyed enthusiastic support from
every affected sector. The High Performance Computing Act of
1991, signed into law by President Bush on December 9, 1991,
provides a strong Congressional endorsement for the initiative.
The Computer Systems Policy Project, formed by the Chief
Executive Officers of twelve leading American computer companies,
undertook a year-long examination of the program, and many other
private sector and governmental groups have provided input to the
program as well.
Private industry is working closely with Federal agencies and
laboratories in the planning, funding, and management of this
initiative to ensure that the fruits of this research program are
brought into the educational and commercial marketplaces just as
soon as possible.
In time, this visionary initiative of the Bush Administration
will be seen as a milestone in the history of computing. Its
ultimate impact will far transcend even the ambitious scope of
the present and proposed programs.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
COMMERCIAL SPACE BUSINESS
"The commercial space business has grown so far
and so fast that it now takes in about as much
money as all the receipts at the movie theatres
all over the United States."
-- President George Bush
January 24, 1992
Under the Bush Administration's leadership, private sector
investment in space hardware and systems has significantly
increased. Spurred by the President's policies encouraging
greater commercial space activity, space commerce revenues are
expected to grow 20% this year. The communications satellite
sector alone will generate foreign sales of $1 billion in 1992
-- the equivalent of 100,000 imported cars.
The Administration has cleared away a maze of regulatory barriers
which have impeded the competitiveness of the commercial space
industry. These efforts include removing the government as a
competitor to private launch vehicles, allowing competition to
the Intelsat communications monopoly, simplifying export
regulations on space-related products, and endorsing the
government's role as "anchor-tenant" in assisting commercial
space ventures. The Administration has also significantly
reduced barriers to transfer of space-related technologies from
government research laboratories to the private sector.
New Commercial R&D Facilities
Administration decisions to procure services from the private
sector -- rather than develop its own hardware -- have resulted
in a new market for privately-funded space materials research
projects. For example, Spacehab, a commercial company, raised
$100 million to build a research facility to be flown regularly
on the Space Shuttle. The government will lease experiment space
in the Spacehab facility -- as will private firms -- for research
in protein crystals, metal alloys, life-saving drugs, and other
advanced materials.
Centers for the Commercial Development of Space
The Bush Administration has supported the establishment of
university-based NASA Centers for the Commercial Development of
Space. More than 200 U.S. corporations interested in space
business opportunities have affiliated with these Centers
enabling industry to learn to use the unique attributes of space
for commercial purposes.
Contracting for Services from the Private Sector
Bush Administration policies have facilitated the development of
the U.S. commercial space sector, enabling, for example, the
emergence of a multi-hundred million dollar commercial space
industry providing services to the civil and military space
programs. The Department of Transportation has been aggressively
working to promote a competitive commercial launch industry. DOT
reports that in 1992, the commercial launch industry, which now
contracts to launch U.S. Government payloads, is expected to
generate revenues of $400 million. The first privately developed
and operated commercial environmental monitoring satellite,
SeaStar, is to be launched in 1993 and will provide NASA and
private users with environmental data on the world's oceans.
New Space Markets
The Administration has encouraged a new market for small, low-
cost satellites which could provide telecommunications services
to anyone, anywhere in the world. The Department of Commerce
estimates that this new service market could generate sales of $5
billion a year.
In addition, by permitting industry to access satellite signals
from the Department of Defense's Global Positioning System (GPS),
the Administration has enabled the development of a potential
multi-billion dollar market for navigation equipment. Some of
this equipment, developed by the private sector, provided precise
navigation information to our Armed Forces during Operation
Desert Storm. This same equipment is now employed in a variety
of commercial applications, including land surveying, fishery
management, and ship and aircraft tracking.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
MISSION TO PLANET EARTH
"My sincere belief is that environmental
protection and economic growth, well managed,
complement one another We can serve this
generation while preserving the Earth for the next
and all that follow."
-- President George Bush
April 17, 1990
The U.S. Global Change Research Program (USGCRP) is a major
initiative of the Bush Administration to provide the scientific
basis needed for developing sound environmental policies on
issues of global change such as ozone depletion.
A key element of this national effort is the observation of Earth
from space. The USGCRP agencies have laid out a blueprint for
gathering information on the land, air, and oceans from space,
including a NASA effort known as Mission to Planet Earth.
The Earth Observing System
The Earth Observing System (EOS), a key component of Mission to
Planet Earth, is a satellite system being developed to collect
data on global change. The Bush Administration has redesigned
the program by breaking the large, complex satellites into
smaller spacecraft to get results on global change faster and
with less risk.
The Upper Atmosphere Research Satellite, launched in 1991, is
already providing very important new information. By the
beginning of the next decade, an unprecedented volume of
information will be flowing from NASA satellites to a host of
scientists and researchers.
Landsat
The President acted to maintain U.S. leadership in earth remote
sensing by continuing the Landsat program. By directing NASA and
the Defense Department to work together to develop the next
generation Landsat imaging satellite, he broke down old barriers
between the military and civilian space programs. This action
will make more data available for global change research than
ever before, and at prices which are more affordable. At the
same time, it will ensure that essential national security needs
are met and that support continues for the large and fast-
growing private sector remote sensing industry.
Other Supporting Activities
The Bush Administration has mobilized resources among a host of
government agencies to speed up our understanding of the
environment. The unique expertise of the Energy Department is
being employed to develop the technology to build -- and quickly
launch -- a satellite to measure the Earth's radiation balance.
The technologies the Department developed for nuclear weapons
production are being applied to this task.
The Department of Defense will increase access to data from
military environmental satellites, as appropriate, for use by
global change researchers. NOAA's meteorological satellites are
already contributing data, and the efforts of researchers from
the U.S. Geological Survey, the Department of Agriculture, the
Environmental Protection Agency, other government agencies, and
the private sector have been focused on this effort.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
SPACE EXPLORATION
"Space Station Freedom
a permanent lunar
base
a manned expedition to Mars
these
objectives are the cornerstone of my Administra-
tion's far-reaching plan for investing in
America's future.'
-- President George Bush
May 11, 1990
America's Apollo 11 spacecraft placed the first humans on the
Moon on July 20, 1969. Twenty years later, President Bush
announced a new set of goals for the 21st century -- to return
Americans to the Moon to stay and to mount a mission to Mars.
This Space Exploration Initiative supports the goals President
Bush set forth in his 1989 National Space Policy, including:
to expand human presence and activity beyond Earth orbit
into the Solar System;
to use space to obtain scientific, technological and
economic benefits for the American people;
to encourage private sector participation in space;
to improve the quality of life on Earth.
President Bush initiated a nationwide search for innovative ideas
for returning to the Moon and landing humans on Mars. The
private sector, academia, the general public, and the research
laboratories and facilities of the federal government all were
asked to participate.
Vice President Quayle, Chairman of the National Space Council,
established an independent advisory group -- the Synthesis Group
-- to analyze the results. He asked the team to concentrate on
innovative concepts and technical solutions, and to explore new
technologies to lower costs and enable nearer term mission
options. Its May 1991 report, which charted several possible
courses for the next 30 years, has been valuable in planning the
exploration of the Moon and Mars.
Space Station Freedom
The Administration reaffirmed that Space Station Freedom is the
next critical step in manned space exploration. It led a
successful effort to defend the program against an attempt to
terminate it in Congress during 1991. During 1990, it
restructured the program and focused the design around two
objectives -- life sciences experimentation and microgravity
research -- and reduced its cost and complexity.
New Lunar Missions
The President has proposed funding for two new relatively low-
cost, robotic exploration missions to the Moon. Both spacecraft,
which are planned for launch in 1995 and 1996, and will carry
instruments for completing the mapping of the Moon and surveying
lunar resources.
Planetary Exploration and Other Space Science
The President has continued his strong commitment to space
science. The 1993 budget devotes about 23% of NASA's funding for
research efforts in physics, astronomy, life sciences, planetary
exploration, earth sciences, materials, and communications. This
is consistent with the recommendations of the Advisory Committee
on the Future of the U.S. Space Program.
In planetary exploration, the Magellan (Venus), Galileo
(Jupiter), and Ulysses (Sun) missions have been launched in the
last two years and are providing exciting new scientific
information. The Mars Observer mission designed to examine the
geologic and climatic evolution of Mars will be launched in late
1992, and the development of the Cassini mission to Saturn will
proceed.
In physics and astronomy, the President's budget continues to
support the operation of two Great Observatories, the Hubble
Space Telescope (launched in 1990) and the Gamma Ray Observatory
(launched in 1991). The budget also continues the development of
the third Great Observatory, the Advanced X-Ray Astrophysics
Facility, which will be launched in the late 1990s.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
TRANSPORTATION TO SPACE
"In the 20th century, our pathways to progress and
development have been the momentous highway and
dam projects. In the 21st century, our next great
pathway will be space transportation."
-- Vice President Dan Quayle
July 24, 1991
President Bush has acted to reduce the future cost of
transportation to space and to make space launches much more
reliable and predictable. His initiatives will encourage new
uses of space by American industry, enhance our national
security, and provide a reliable basis for gaining new knowledge
from space and exploring our solar system.
The National Space Council, chaired by Vice President Dan Quayle,
has developed a comprehensive roadmap for the future of space
transportation. This National Space Launch Strategy, signed by
President Bush in July 1991, guides U.S. government investments,
ensures that manned and cargo carrying needs are satisfied,
eliminates unnecessary regulations, and fosters opportunities for
the U.S. private sector launch industry.
The New Launch System
The Administration has begun the development of a new fleet of
launch vehicles, the first since the Space Shuttle in the early
1970s. This New Launch System (NLS) will take advantage of
modern technology to build more cost-effective, reliable, quick-
turnaround launch vehicles. NLS is being developed jointly by
the Department of Defense and NASA and will be a family of
vehicles with a range of lift capabilities. The fleet will meet
the future needs of Defense and NASA and strengthen the
capabilities of the U.S. private sector, reduce operational
pressures on the Space Shuttle, support Space Station Freedom,
and provide a basis for meeting future space exploration needs.
The Space Shuttle
The Bush Administration has taken actions which will extend the
operational lifetime of the existing fleet of four Space Shuttle
orbiters to meet America's manned spaceflight needs beyond this
decade. This will be done by using vehicles other than the Space
Shuttle for missions which do not require the presence of
astronauts, and by lowering the planned launch rate. In addition,
steps are being take to lower the cost of operating the Space
Shuttle program by 15% over five years. These actions should
ensure that the purchase of additional Space Shuttle orbiters
will not be required while maintaining the program's strong
commitment to safety.
Advanced Technology
The National Aerospace Plane (NASP) and other Administration
initiatives to develop and demonstrate future launch technologies
are paying direct benefits today. NASP-derived materials are
being tested by surgeons for joint replacements, and NASP has
significantly advanced high speed computing capabilities, which
has applications in such areas as automobile design. Programs
like NASP will ensure that the Nation maintains its aerospace
leadership in the competitive world markets of the 21st century.
The Private Sector
Commercial space is one of the fastest growing sectors of the
U.S. economy, thanks to Bush Administration policies. To
maintain a competitive commercial launch industry, the President
has directed a series of actions to ensure free and fair
international markets. These include conducting trade negotia-
tions, considering commercial needs into all government decisions
on space launch, facilitating private sector use of excess
government launch facilities, and encouraging infrastructure
investments by the States. Administration policies have also
encouraged government and industry partnerships, producing
innovative new capabilities such as the Pegasus winged launch
vehicle.
(February 18, 1992)
Towards a Better America
THE BUSH ADMINISTRATION RECORD ON
AVIATION
"Our forebears made an investment in the future that
has paid us a handsome return and provided us with
a higher quality of life than they enjoyed.
our mission for the next decade and the next century
is to build on those achievements to ensure
connections among all parts of the United States
and with the world. Our competitive success in a
global economy depends on it."
-- President George Bush
February 26, 1989
During President Bush's term, the Administration has requested and
received record levels of funding for aviation programs, launched
important initiatives to make aviation safer, quieter, and more
competitive and addressed the future of aviation through a
comprehensive Strategic Plan outlining aviation goals and policies.
Aviation and the U.S. Economy
The President and the Administration have worked to ensure that the
U.S. economy derives the greatest possible benefit from commercial
air service -- by providing for the future of America's critical
aviation infrastructure, by increasing the commercial opportunities
available to U.S. airlines both here and abroad by working to
ensure that commercial aviation remains competitive, and by putting
more U.S. cities on the international aviation map.
Aviation Infrastructure
The Administration, working with Congress, has obtained record
levels of Federal funding for the aviation infrastructure. Over
the four Fiscal Years 1990-1993, the Administration will have made
available $33.8 billion for aviation programs, including $8.9
billion for modernizing the air traffic system, $7.3 billion for
improving airports, and over $800 million for research to ensure
that ours remains the most efficient and productive aviation system
in the world. The President's FY 1993 request for aviation
programs -- $9.44 billion -- represents a 43% increase over 1990.
Congress enacted the Administration's proposal to authorize
passenger facility charges at local airports so that additional
airport capacity may be built to enable more airline competitors
at airports.
Airport Noise
The Administration advocated, and Congress enacted, a statute
requiring that the noisiest aircraft be phased out of use by the
end of the decade, thus ensuring our citizens the quietest possible
airport environment by a date certain.
Aviation Safety and Security
The President has taken a strong stand for improving the safety and
security of global air travel. From FY 1991 to FY 1993, the
President will have increased security funding by over $16 million
(a 30% increase), including many new positions overseas. New
explosive detection technology has been introduced.
The
Administration has vigorously pursued the investigation into the
bombing of Pan Am 103.
Aviation Competition
The Administration is committed to the policy of airline
deregulation and has steadfastly resisted Congressional attempts
to re-regulate the airline industry. The Administration issued the
13-volume study Competition in the U.S. Airline Industry to
document benefits of deregulation and answer its critics.
In addition, the Administration has taken concrete steps to ensure
that the industry remains competitive. We have allowed more
foreign capital to be invested in U.S. airlines so our carriers may
have the benefit of world capital markets. (As required by law,
airlines will remain under the control of U.S. citizens.) Finally,
the Administration has on infrequent occasions intervened in
airline route and slot transfers where the acquisition by certain
carriers would be anticompetitive.
Expanding International Air Service to America's Cities
The Administration has been aggressive in its efforts to maximize
the benefits of international air service to the U.S. economy,
recognizing how critical this is to trade, investment, tourism, and
jobs. Through a strategic program of negotiations with foreign
governments, the Administration has created important new
opportunities abroad for U.S. carriers and has enabled more U.S.
communities than ever to enjoy the huge economic dividends that
flow from more convenient, direct international air service.
Global Air Navigation
Through the use of satellite navigation and communication, the Bush
Administration has led the world in improving the future efficiency
and effectiveness of the global air traffic control system.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
MASS TRANSIT
"Ideas fly around the globe at the speed of light
because we have an infrastructure to handle the
traffic. We need that in surface transportation,
too. After all, mobility is the lifeblood of our
modern economy.
-- President George Bush
December 18, 1991
During President Bush's first term, the Federal mass transit
assistance program has been strengthened. Thanks to new statutory
provisions the Administration proposed and Congress enacted, local
officials now have flexibility to use many categories of Federal
highway assistance for mass transit investment, if that is in the
best interest of their community.
The President's mass transit program will result in cleaner air,
increased productivity, easier transportation to jobs, better
mobility for all Americans, and a robust and growing economy. That
is why, under President Bush, the Federal mass transit assistance
program has been stabilized and made an important part of the
domestic assistance activities of our Nation.
Levels of Funding
During President Bush's term, over $13 billion has been
dedicated to mass transit.
This year alone, $3.6 billion will be made available to mass
transit providers in cities and towns from coast to coast.
Increased Program Flexibility
President Bush believes all Federal assistance should flow to
grantees with as little bureaucratic intrusion as possible;
he also believes programs should be structured to make Federal
dollars lever as many nonfederal investment dollars as
possible, from both the public and private sectors.
Under President Bush, Federal transit assistance may now be
used to underwrite the cost of new kinds of leases, long
popular in the private sector, that can markedly reduce the
overall cost of equipment acquisition.
Advocacy for Mass Transit
President Bush has proposed to raise, from $21 to $60 per
month, the limit on the amount of tax-free mass transit
subsidies employers may provide for their employees.
Because the President believes energy-efficient mass transit
should be a genuine option, the Executive Branch now permits
Federal employees to choose between parking and mass transit
benefits.
Research and Development
No sector of the economy can thrive if it ignores the productivity
enhancement available through new technologies. Under President
Bush, mass transit research funding has been increased so mass
transit operators will be able to deliver a better and more
productive service to the American people. A fixed percentage of
the entire Federal mass transit assistance program is now reserved
for research purposes.
Bringing Transit to the Disabled
President Bush fought for, and won, passage of the Americans with
Disabilities Act, which brings public transit within reach of all
Americans with special needs.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
THE SURFACE TRANSPORTATION EFFICIENCY ACT
"This Act will pump $11 billion into the
economy immediately -- supporting more than
600,000 jobs in Fiscal 1992. This Bill also
means investment in America's economic future
-- for an efficient transportation system is
necessary for a productive and efficient
economy.'
-- President George Bush
December 18, 1991
The Intermodal Surface Transportation Efficiency Act of 1991
contains most of the President's major innovations for
restructuring Federal surface transportation programs. The Act
authorizes $151 billion in Federal spending over six years and
establishes a framework for the post-Interstate era in America.
Surface Transportation Priorities of the Bush Administration
The Intermodal Surface Transportation Efficiency Act focuses
Federal investment on a National Highway System, a network of
primarily existing major highways that carry the bulk of
intercity travel and the Nation's commerce. The Act offers
unprecedented flexibility for State and local governments and new
opportunities for private sector involvement. Increased funding
and new incentives will promote congestion relief, highway
safety, and environmental quality. As the Administration
proposed, funding will be increased for rehabilitating and
replacing bridges. A new emphasis on technology development will
prepare our transportation network to meet tomorrow's challenges.
The Act has both the immediate effect of putting people to work
and the lasting effect of enhancing the competitiveness of the
U.S. economy.
National Highway System
The new law establishes a National Highway System (NHS) of
155,000 miles, carrying 40% of all vehicle miles traveled
and 75% of intercity truck travel.
An efficient NHS will help keep prices of American goods
down, thereby benefitting American consumers as well as
American producers, whose products in turn will be more
competitive in foreign markets.
The Act provides $38 billion in funds to keep the NHS
performing efficiently.
Flexibility and Efficiency
Funds can be used to support local transportation needs,
including highway construction and maintenance programs and
transit capital projects.
The new law permits States to contract with private
developers to construct or improve toll highways with joint
public and private investment.
Research efforts will be enhanced in partnership with State
and local governments and the private sector.
Administrative costs to the truck and bus industry in
complying with State requirements will be reduced by some $1
billion annually by the end of 1996.
The Act provides new tools to help ensure that transporta-
tion improvements address environmental concerns. For
instance, it permits the use of Federal highway funds to
develop wetlands banks to offset use of wetlands in highway
construction.
Highway Safety
Federal grants and regulations and voluntary actions by the
private sector have saved tens of thousands of lives through
programs to encourage increased seat belt use and a
reduction in drunk driving.
The Federal highway traffic safety program is strengthened
under the Act. This program works: 1990 had the lowest
fatality rate of any year since records have been kept.
Incentive grants to encourage greater occupant protection
and further reduce drunk driving are included in the Act.
Transportation is an $800 billion business in America, and this
Act is a major accomplishment of this Administration -- one which
will improve the life of every American for decades to come.
According to one estimate, 8 billion hours per year are lost to
traffic delays, and this bill will help Americans get to work or
recreation more quickly. And more immediately, as President Bush
has said, "Across America, the Transportation Act will help
companies put people back to work."
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
VETERANS AFFAIRS
"America's veterans have faced the hellish fires of
combat and the chilling presence of mortal danger so
that our children and our children's children might
dwell in a safer, more peaceful world. The freedom of
millions of people around the globe is, in many ways, a
living monument to each of them."
-- President George Bush
October 3, 1991
The Administration, through the Department of Veterans Affairs
(VA), the largest civilian Federal department, provides health
care, education, disability and housing benefits, and cemetery
services to the Nation's 27 million veterans. The VA, with more
than 250,000 employees, provides over $30 billion a year in
programs and services.
The Bush Administration is committed to meeting the needs of our
Nation's veterans. Recent programs have focused on financial and
health care benefits for veterans and providing a strong back-up
medical capacity for Operation Desert Storm.
Increase Access to Health Care
To improve veterans' health care, the Administration has:
Proposed an increase of nearly $1 billion this year for the
provision of direct medical care for veterans. This would
bring the total increase to $3.7 since FY 1989.
By next year, opened 10 new nursing homes since FY 1989 to
meet the needs of our aging veteran population.
Expanded the number of Geriatric Research, Education, and
Clinical Centers, bringing to 15 the total number of such
centers of excellence in the field of geriatrics.
Established toll-free help-lines for veterans who were
exposed to radiation during military service and for
hearing-impaired veterans.
The Administration plans to improve the VA health care system by:
Increasing resource sharing and other cooperative
arrangements with Federal, State, and private sector
providers.
Providing training opportunities for medical and allied
health care professionals to increase the supply of skilled
personnel.
Increasing AIDS and drug abuse treatment programs
Continuing construction and renovation of VA's nationwide
system of medical centers to improve patient environment and
adapt to new modalities of care.
Life Insurance Dividend Benefits for Veterans
In 1992, for the fourth time in the 75-year history of the
veterans life insurance program, more than $1 billion in
dividends will be paid to veterans holding active policies.
Increase Compensation for Disabilities
The Administration has proposed a cost of living adjustment
(COLA) for compensation benefits each year.
It also announced compensation for Vietnam veterans
suffering from several diseases based on Vietnam service.
Increase Education Possibilities for Veterans
The Administration has expanded education benefits for veterans
to include vocational, technical, correspondence, and
apprenticeship training for reservists and established a new
education program in the health care field for members of the
Ready Reserve.
Expand National Cemeteries
The Administration is committed to making burial in a national
cemetery a realistic option for all veterans, and plans to:
Construct ten additional national cemeteries in areas of the
country that are unserved.
Acquire land through purchase or donation to increase burial
capacity of existing cemeteries scheduled to close by 2020.
Make greater use of the cost-sharing opportunities through
grants to States for State veterans cemeteries.
Develop Opportunities to End Homelessness
The Administration is dedicated to providing outreach,
psychiatric and medical treatment, case management, and
residential rehabilitation for homeless veterans.
The Administration is increasing efforts to allow veterans
with financial hardship to retain their homes.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
ECONOMIC OVERVIEW OF THE BUSH ADMINISTRATION
"As we move into 1992, the fundamental conditions to
generate economic growth are falling into place."
-- President George Bush
February 5, 1992
Inflation and Interest Rates are Low
During 1991, consumer price inflation was only 3.1%, the second
lowest rate since 1967. From the end of 1982 through 1991,
consumer price inflation averaged 3.9%, compared to a 9.3%
average from the end of 1973 through 1981. Interest rates
generally are at their lowest levels in two decades or more.
Rates on 30-year fixed rate mortgages, for example, fell from
more than 11% in early 1989 to about 8.25% in mid-January 1992.
Declining rates greatly increase housing affordability: monthly
payments on a $100,000 30-year loan at an 11% mortgage rate are
$952.32; at 8.25%, monthly payments are $751.27. Furthermore,
households who already own homes can refinance their mortgages at
lower rates, freeing up income to consume or save.
International Comparisons of GDP and Productivity
The United States is the world's best example of the interrelated
strengths of democracy and market-oriented economics. Americans
have the highest standard of living in the world: U.S. gross
domestic product per capita was $22,056 in 1990 (the last year
for which comparable data are available), placing the United
States more than 35% above Germany and 25% above Japan. The
United States has the highest level of productivity of any
country in the world, with output per worker about 20% above the
average of the other major industrial countries.
Export Growth Has Been Strong
The Nation's international competitiveness is strong. Exports
have provided a significant boost to our economy. Over the past
four years, real exports have risen nearly three percentage
points of GDP; by the end of 1991, real exports reached 11.6% of
real GDP. At the same time, real imports relative to GDP have
remained relatively stable.
Free and Fair Trade
The Administration is committed to free and fair trade. Long-
term productivity growth depends on opening, not closing or
segmenting markets; expanding market opportunities provides
lasting gains for both the United States and the world. The
historic North American free trade area and the Enterprise for
the Americas Initiative will greatly expand trade in this
hemisphere. The Administration is committed to achieving a
successful conclusion of the Uruguay Round of multilateral trade
negotiations, which covers topics ranging from elimination or
reduction of tariffs to the strengthening of international rules
for trade in textiles and agriculture to the extension of rules
to cover trade in services and intellectual property.
The Economic Benefits of Winning the Cold War
Winning the Cold War allows the Nation to turn industrial
capacity that had been utilized for defense purposes toward
civilian endeavors. In the short run, the transition toward
lower defense spending will not be easy, particularly for certain
local economies that rely heavily on defense industries. Despite
these difficulties, the long-term benefits of this transformation
-- which will provide more goods and services for the Nation's
businesses and consumers -- are large.
Reducing the Long-Run Structural Deficit
The Budget Act signed in November 1990 includes deficit reduction
guidelines and budget process reforms to assure that the
reductions are actually achieved. Controlling the growth of
government spending and thus freeing up resources for private
investment are part of a more comprehensive fiscal program to
spur economic growth.
The 1993 budget includes a number of additional proposals to
bring the Federal budget and deficit under control. For example,
the budget freezes domestic discretionary budget authority,
eliminates 246 Federal programs, reduces defense spending, and
proposes an enforceable cap on the growth of unfinanced mandatory
spending.
Protecting Depositors in Financial Institutions
The Financial Institutions Reform, Recovery, and Enforcement Act
of 1989 achieved a number of important objectives. It preserved
the integrity of the deposit insurance system and ensured that no
depositor lost any Federally-insured funds; set limits on
inadequately capitalized institutions and raised minimum capital
requirements for Federally-insured institutions; estab- lished
and funded the Resolution Trust Corporation to reorganize
economically insolvent institutions; and established the Office
of Thrift Supervision within the Treasury Department to replace
the Federal Home Loan Bank Board as the chief regulator of the
S&Ls. It also established the Savings Association Insurance Fund
within the FDIC to replace the insolvent FSLIC. In addition, the
law strengthened criminal and civil sanctions for illegal
activities involving financial institutions.
Policies for Long-Term Economic Growth
While the Administration is concerned about the short-term health
of the economy, an important part of our economic strategy has
been to encourage policies conducive to significant long-term
growth and strengthening our position in the global economy.
For instance:
The Administration has pursued free and fair trade and
sought to open markets for goods and services around the
world.
Since a nation must be educated to compete successfully in
the global economy, the Administration's AMERICA 2000
program will revolutionize American education and help us
meet the National Education Goals.
An emphasis on prevention in health care reduces health care
costs and increases productivity.
We have sought to bring millions of disabled Americans fully
into the economic mainstream through the Americans with
Disabilities Act.
The Administration has invested heavily in research and
development -- supported at a record $76 billion in the FY
1993 budget.
Finally, we have sought measures to increase capital
formation and economic security for millions of individual
Americans. The President outlined such policies in his
recent State of the Union address.
These policies of the Administration will reap economic benefits
for the Nation for decades to come.
(February 10, 1992)
THE BUSH ADMINISTRATION RECORD ON
BANKING REFORM
"We need to make our banking institutions not only
more sound but more competitive."
-- President George Bush
November 25, 1991
The President signed banking legislation in December 1991 that is
much less comprehensive than that proposed by the Administration.
Although this bill makes a number of improvements to the current
system, the Administration hopes to pass legislation that will
accomplish more comprehensive reform.
A World-Class Banking System
The Administration is committed to creating a world-class banking
system that is competitive in the global marketplace and that can
better serve the needs of business and consumers. To this end,
the Administration is pursuing a carefully balanced, integrated,
and comprehensive approach to reform, designed to protect the
safety and soundness of the banking system while minimizing
taxpayer exposure and risk.
Reforming the Financial System
The banking bill (S. 543) passed in December contains the following
provisions:
It authorizes the FDIC to borrow up to $30 billion from the
Treasury for the Bank Insurance Fund (BIF) to cover deposit
insurance losses and provides additional borrowing authority
for working capital purposes;
It generally requires the FDIC to use the least costly method
of resolving failed banks;
It requires Federal bank regulatory agencies to take specific
actions based on banks' capital levels; and
It establishes new examination, audit, and accounting
requirements for banks.
The Administration's Agenda
The Administration hopes to pass legislation for a more
comprehensive reform of the banking system. Such legislation will:
Restore profitability and reduce risk through geographic and
product diversification;
Increase capital market efficiency and consumer choice by
permitting banks to have nationwide branches and a wider range
of financial services;
Reduce the likelihood of taxpayer bailouts.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
ALLEVIATING THE CREDIT CRUNCH
"The genius of the American economy is the
entrepreneurial spirit of our people. Ensuring
sound credit for economic expansion which creates
new jobs is important."
-- President George Bush
October 9, 1991
"Sound banks should be making sound loans now." "
-- January 29, 1991
In response to the credit crunch, the Administration has worked
with bank regulators and has conducted extensive meetings with
bankers, examiners, and borrowers all over the Nation.
To increase the availability of funds, the Administration is
committed to improving the lending environment overall by building
banker confidence, implementing improved real estate valuation
guidelines, and phasing out the supervisory definition of highly
leveraged transactions.
Easing the Credit Crunch
The Administration has worked with regulators to issue over 30
specific regulatory changes and clarifications in order to ease the
availability of credit. The Administration issued guidelines to:
Ensure that banks' valuation of real estate was based on
ability to generate income, not liquidation value.
Improve bank examination management.
Increase bank capital.
Eliminate the definition of highly leveraged transactions.
Guidance on asset concentrations.
The Administration has communicated extensively with the banking
industry and banking regulators to improve credit availability.
This includes three national meetings of bank examiners and over
50 regional meetings with bankers, borrowers, and regulators. The
Administration has held over 200 general exploratory meetings
hosted by the Treasury Department and the Economic Policy Council.
The Administration's program has been positive and productive.
A recent survey by the National Federation of Independent
Businesses shows a reduction in the number of business
complaints about tight credit.
The number of complaint letters to regulatory agencies
regarding harsh treatment has dropped recently.
The Administration's Agenda
The Administration will continue to work vigorously to alleviate
the credit crunch. Sound American businesses need easy access to
credit to expand and grow. To that end, the Administration will:
Promote the President's economic growth package.
Continue comprehensive bank reform efforts.
Continue to review proposals to improve credit conditions.
Finalize the EPA rule change regarding lender liability under
Superfund.
Continue sponsorship and participation in regional meetings
around the country.
Include purchased mortgage servicing rights and purchased
credit card premiums as bank capital.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
THE SAVINGS AND LOAN CLEAN-UP PROGRAM
"The lesson of the savings and loan crisis, to which
my Administration responded swiftly, is not that
competition and innovation are incompatible with
safety and soundness in the financial sector.
Rather, this experience shows that poorly designed
regulation, inadequate supervision, and limits on
risk-reducing diversification can combine to produce
behavior that undermines creditors' confidence and
imposes unnecessary burdens on taxpayers."
-- President George Bush
February 12, 1991
The Administration's program to revitalize the savings and loan
industry has resulted in the protection of millions of depositors'
accounts by the Resolution Trust Corporation (RTC). The vast
majority of private sector thrifts -- 86% -- are operating
profitably, and the industry has recently reported its first three
consecutive profitable quarters since 1986.
Most insolvent
thrifts have been seized by the RTC.
Goals for the Thrift Industry
The Administration is committed to protecting depositor savings,
restoring the safety and soundness of thrifts, cleaning up failed
thrifts while limiting taxpayer costs, and sending wrongdoers to
jail and levying fines.
Strengthening the Industry
Recognizing the seriousness of the problem, President Bush swiftly
proposed action to help the Savings and Loan industry on February
6, 1989 -- his 18th day in office. He worked hard throughout that
spring and summer to produce a bill that would meet his goals. The
resulting compromise was the Financial Institutions Reform,
Recovery, and Enforcement Act (FIRREA), which has been in place for
two and one-half years. This Act established the RTC.
The RTC has protected approximately 19 million depositors'
accounts and $187 billion in deposits.
A total of 679 insolvent thrifts have been seized, and 86% of
those have been resolved.
By the end of Fiscal Year 1992, the RTC estimates that it will
have resolved 741 failed thrifts, so long as Congress provides
adequate funding.
Through November 1991, the RTC had sold or liquidated about
63% of the $366 billion in total assets held in inventory.
Through November 1991, there had been 734 convictions for
major thrift crimes.
The Administration's Agenda
While the thrift industry has been considerably strengthened, there
is more work left to do. With the goals of protecting depositors
and taxpayers and continuing to build confidence in the savings and
loan industry, the Administration will seek to:
Pass legislation to provide the rest of the funds necessary
to continue the clean-up process.
Continue closing and resolving failed thrifts and selling
assets.
Limit taxpayers' costs.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
CONTROLLING FEDERAL SPENDING: THE BUDGET ACT
"Getting our fiscal house in order is crucial
to our Nation's long-term economic health and
prosperity."
-- President George Bush
April 25, 1990
President Bush negotiated and signed into a law a budget agreement
that includes:
tight caps on discretionary spending
a new "pay as you go" system to control the previously
explosive growth of mandatory entitlement spending
process reforms to curb runaway "supplemental" appropriations
spending, and
a new system to account better for the government's hidden
liabilities.
The budget agreement included reforms that cut entitlement spending
by over $100 billion and a new choice-based tax credit to help
families afford child care. In total, the budget agreement
contained $500 billion in deficit reduction measures.
The President proposed to reduce the deficit through reductions in
spending. Congress insisted on some higher taxes on gasoline,
alcoholic beverages, and certain higher-income individuals. For
millions of middle- to upper-middle income Americans, the agreement
also reduced the marginal income tax rate from 33% to 31%.
Despite repeated attempts by some in Congress to break the spending
discipline of the budget agreement, the President has insisted on
maintaining these reforms.
Binding Caps on Discretionary Spending
The budget agreement contains binding, statutory caps on each
category of domestic spending: domestic, international, and
defense. Whereas the old Gramm-Rudman law contained deficit
targets for each Fiscal Year, the budget agreement controls the
source of the deficit: Federal spending.
The caps have changed the annual appropriations process from
a "bidding war" to a debate over priorities.
1
Within the caps, the President has increased investment in
education, productivity-enhancing R&D, children, fighting
crime, and the environment -- while cutting wasteful pork-
barrel and special interest spending.
In his FY 1993 budget, the President proposed an absolute
freeze on total domestic discretionary spending for the
Federal Government at the previous year's level.
The President has reduced defense spending by almost 30% in
real terms since taking office; including a $50 billion cut
over the next five years proposed in his FY 1993 budget. This
is in addition to the reductions already planned.
"Pay As You Go": Stemming the Runaway Growth of Entitlements
The President secured the enactment of the first binding, compre-
hensive system to control the explosive growth of mandatory
entitlement spending -- formula-driven spending that is not subject
to annual Congressional review. Entitlements and other mandatory
programs have grown from 23% of the budget in 1960 to over 50% now.
The budget agreement requires that any new entitlement or
existing program expansion be paid for with either a cut in
another entitlement program or a specific revenue source.
As a result, the 101st Congress was the first Congress in
years that did not witness the establishment of any major new
mandatory spending programs.
The budget agreement included reforms in entitlements that
will save the taxpayer over $100 billion over five years --
cuts in agricultural subsidies, reforms to reduce the
government's exposure to defaults in loan programs, and steps
to end abuses in Medicare.
Controls on "Supplemental" Spending: stopping the Christmas Tree
The budget agreement provided the President important new tools to
curb excessive spending on supplemental appropriations --
traditional vehicles for a "Christmas tree" of Congressional
spending.
Under the old system, the President had no effective mechanism,
short of a veto, of preventing unwanted spending. Under the new
law signed by President Bush, only those items designated as true
"emergencies" can be included. If Congress adds special interest
items that increase the cost of a supplemental appropriation beyond
the level designated as an emergency by the President, spending is
automatically cut back through the sequester mechanism.
2
Exposing and Controlling Hidden Liabilities
Under President Bush, the government is for the first time prope
accounting for and working to control many contingent liabilitie.
that previously were not recorded in the budget process.
Under the old system, when the government guaranteed loans,
no liability was recorded until the borrower defaulted. Under
this system, the government was carrying and indeed increasing
a huge portfolio of risk without recording or planning for it.
Under the new credit reform system, the true subsidy value of
any type of loan instrument is recorded at the time the loan
is made. Accounting gimmickry is minimized.
The budget agreement also required reforms to increase the
creditworthiness of various borrowers and thereby reduce the
risk to the government.
The President Has Worked to Protect These Reforms
The President and the Administration have threatened to veto
dozens of bills that would have violated either the caps or
the pay-as-you-go system.
Without the President's leadership, Federal spending would
have been billions of dollars higher.
Reforms for the Future
While the budget agreement contained some helpful first steps, the
President has proposed and is working for additional measures to
cut spending and reduce the deficit:
The President has proposed a line-item veto, a tool that 43
Governors have. A recent study by the General Accounting
Office (GAO) showed that if the President had had the line-
item veto from 1984 to 1989, the deficit would have been
reduced by over $70 billion.
The President has proposed a cap on the future growth of
entitlement programs -- enough to accommodate inflation and
the growth of the beneficiary population, but far below the
projected path of dramatic increases if nothing is done.
Entitlement spending now consumes over $800 billion per year
-- more than half the Federal budget.
The President has proposed a balanced budget amendment
Constitution. The constitutions of 49 States
requirement for a balanced budget. The Presider'
Federal Government should live under the S?
(b
3
THE BUSH ADMINISTRATION RECORD ON
THE FEDERAL BUDGET DEFICIT
"[I]t's time we rediscovered a home truth the
American people have never forgotten:
This
Government is too big and spends too much."
-- President George Bush
January 28, 1992
President Bush believes that we have a deficit not because the
American people are taxed too little but because the Federal
Government spends too much.
Curbing Federal Spending
The President has aggressively sought to control the growth of
Federal spending:
In his proposed FY 1991 Budget, his first full budget, total
spending grew by 3.0%.
In his proposed FY 1992 Budget, total spending grew by only
2.6%.
In his proposed FY 1993 Budget, total spending grows by only
2.8%, and domestic discretionary spending is frozen.
In each of these three years, the growth in spending in the
President's proposed Budget has been below the rate of inflation.
This is consistent with the "flexible freeze" the President
proposed during his 1988 campaign.
Causes of the Deficit
Although the budget deficit has grown since 1989, this is due to:
Congressional decisions to increase spending above the levels
recommended by the President;
Growth in deposit insurance outlays (and the failure to
dispose of these assets as quickly as was hoped);
The continuing growth of entitlements;
Lower than expected revenues because of the recession; and
Growth in interest payments.
The President's budget proposes to reduce the deficit by almost $50
billion in FY 1993.
Proposals for Attacking the Deficit
The President has proposed to attack each component of the deficit
through:
A freeze on total domestic discretionary spending. This will
keep 1993 domestic discretionary appropriations for all
Executive Branch agencies at 1992 levels and reduce spending
below the limits agreed to in the Budget Enforcement Act.
Complete elimination of 246 programs whose funding is not
sufficiently justified.
Specific, identified cuts in defense. An orderly and
carefully-planned further reduction in defense spending of
$50 billion by 1997 will cut total real defense expenditures
of 29% since 1989.
Specific, identified reforms of entitlement programs. These
reforms will reduce spending on entitlement programs by nearly
$35 billion by 1997 -- nearly $73 billion including reform of
the deposit insurance and pension guarantee programs.
New caps on the future growth of these entitlements and on the
cumulative subsidies of hidden liabilities.
A set of policies that promote economic growth, which
Congress should enact promptly.
The President has also proposed a line-item veto to give him the
power that 43 governors have to curb unnecessary legislative
spending.
The President's proposals will, if enacted, reduce Federal deficits
as a percent of GDP from 5.6% in 1993 to 2.4% by 1997.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
ENTERPRISE ZONES
"In our hardest hit urban and rural areas our
enterprise zones proposal will create new
small businesses.
Our proposals mean
economic growth, more minority entrepreneurs,
and most important, again, jobs."
-- President George Bush
February 27, 1991
President Bush has strongly supported Federal legislation to
establish enterprise zones throughout his time in office.
Enterprise zones will attack poverty by promoting investment in
economically distressed neighborhoods. Enterprise zones will
attract new seed capital for small business start-ups, create new
incentives for entrepreneurial risk-taking, and reduce high
effective tax rates on those moving to work from welfare.
The Enterprise Zones and Jobs-Creation Act will target tax
incentives and regulatory relief to some of our Nation's most
economically depressed areas.
Under the bill, the Secretary of Housing and Urban Development
would designate up to 50 (urban, rural, and Indian) enterprise
zones over a four-year period. Designation will be based on the
level of distress, as well as on the nature and extent of State
and local efforts to improve living conditions and to eliminate
government burdens to economic activity. Designation will be for
a maximum of 24 years.
The legislation will provide tax incentives to attract seed
capital, stimulate employment, and increase the economic return
from work for the working poor:
Workers will be eligible for a 5% refundable tax credit for
the first $10,500 of wages earned in an enterprise zone
business. This will put up to $525 more income in the
pockets of low-income workers. The credit phases out
between $20,000 and $25,000 of total annual wages.
This essentially provides an immediate write-off for
investments in enterprise zone businesses. Corporations
must have less than $5 million of total assets. Expensing
will be permitted up to $50,000 annually per investor, with
a $250,000 lifetime limit.
1
The bill would also give enterprise zone communities priority for
free trade area status. Such status would, for example, allow a
business in an enterprise zone to import materials duty-free if
the materials are used to manufacture products for export to
other countries.
The basic point behind the President's enterprise zone initiative
is simple: Enterprise zones will help bring jobs to distressed
urban and rural areas.
(February 18, 1992)
2
THE BUSH ADMINISTRATION RECORD ON
INCREASING CAPITAL FORMATION
"We must encourage investment. We must make it
easier for people to invest money and create new
products, new industries, and new jobs."
-- President George Bush
January 28, 1992
Ready access to capital is a requirement of a well-functioning
economy and a tool for economic growth. The Bush Administration
has worked hard to ensure greater access to capital -- and
greater freedom for Americans to reap the rewards of their
success -- by seeking to make it easier to obtain access to
capital and to increase capital formation throughout our economy.
The President's 1989 Capital Gains Proposal
Recognizing that capital formation is key to our economic growth,
the President early in his term fulfilled his promise to work for
a reduction in the rate at which capital gains are taxed. The
President believes this will, as the experience of the 1978
capital gains tax rate cut shows, once again not lower government
revenues but will instead simply benefit the economy.
The President originally proposed a bill reducing the capital
gains tax rate on individuals in order to spur investment and
entrepreneurship. The bill provided for a 10, 20, or 30%
exclusion for capital gains on assets held by individual
investors for one, two, or three years, respectively. The bill
was approved by the House of Representatives on September 28,
1989. On November 14, the Senate voted 51 to 47 in favor of this
tax cut, yet this was fewer than the 60 votes needed to amend a
reconciliation bill.
New Capital Gains Proposal
The President has continued his effort to increase capital
formation by reducing the tax rate on capital gains. The 1993
budget includes a reduction of the capital gains tax rate for
individuals on long-term investments. The budget provides for a
15, 30, or 45% exclusion for long-term capital gains on assets
held by individual taxpayers for one, two, or three years,
respectively. The three-year holding period requirement will be
phased in over three years. Currently, about 60% of Americans
who would benefit from a reduction in capital gains tax rates
earn less than $50,000 per year.
Incentives for Homeownership
The 1993 budget includes a proposal to provide a tax credit of up
to $5000 for first-time homebuyers. By accelerating and
increasing expenditures on home purchases, such a credit would
also assist in the recovery of the homebuilding industry. The
budget also proposed penalty-free withdrawals of up to $10,000
from IRAs for a first-time home purchase.
Investment Tax Allowance
The allowance would provide firms an additional first-year
depreciation equal to 15% of the purchase price on equipment
acquired before January 1, 1993, and placed in service before
July 1, 1993. Unlike many ITC proposals, the ITA does not target
certain specific equipment and "pick winners." Along with the
reduction in the capital gains tax rates and the changes in the
alternative minimum tax, the ITA will reduce the cost of capital
faced by American companies, thereby increasing investment and
productivity.
Simplifying and Enhancing Alternative Minimum Tax Depreciation
More than one-third of large U.S. corporations pay income taxes
according to the Alternative Minimum Tax (AMT) rules, but firms
that pay taxes under the AMT currently receive less tax benefit
from depreciation than other firms. The President proposes to
repeal the "adjusted current earnings" (ACE) depreciation
adjustment for firms placing new equipment in service on or after
February 1, 1992. In this way, the proposal targets investments
in new depreciable property without providing a windfall for
prior investments.
Passive Loss Rules for Active Real Estate Developers
The tax laws would be amended so that a person's active real
estate development operations are treated the same as for other
businesses, that is, gains and losses can be netted for tax
purposes. For example, corporations are allowed to net the
income and losses from their various subsidiary operations when
filing their consolidated income taxes. Because this measure is
limited to "active" developers, it will not lead to tax loopholes
or encouragement of non-economic construction of unneeded
structures. The proposal conforms the passive loss rules to the
way other businesses operate under the tax rules.
Human Capital
The 1993 budget includes record Federal investment in Head Start,
children, and education, as well as proposals that strengthen the
war on drugs and improve the implementation of job training
through Job Training 2000. The budget also provides a deduction
for interest on student loans for higher education or post-
secondary education and penalty free IRA withdrawals for
educational expenses.
AMERICA 2000 is the President's strategy for achieving the
National Education Goals. These include having all children
starting school ready to learn, universal literacy, drug- and
violence-free schools, a high school graduation rate of 90%, and
making U.S. students first in the world in math and science.
Permanent Research and Experimentation Tax Credit
The President's budget proposes, once again, to make the Research
and Experimentation tax credit permanent. This would provide
incentives for firms to increase these activities.
Flexible Individual Retirement Accounts
The budget would establish flexible Individual Retirement
Accounts to which middle-income taxpayers may make nondeductible
contributions of up to $2500 per year and from which
contributions and interest may be withdrawn without penalty after
seven years.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
JOB TRAINING
"Job training must be more than merely make-
work. It's got to suit the needs of the
workplace and the marketplace."
-- President George Bush
January 17, 1992
President Bush believes that to compete successfully in the
global marketplace, America needs a dynamic, flexible, and
well-trained workforce. While the primary responsibility for
job training must remain in the private sector, Federal, State,
and local governments can play an important supporting role.
The Bush Administration intends to build a comprehensive and
coordinated job training system by streamlining the maze of
Federal programs currently dispersed across numerous agencies.
This system is intended to provide Americans with opportunities
to acquire the broad skills demanded in the new global economy,
through "one-stop shopping centers" designed to serve
individuals and employers more effectively.
The nucleus of the new system is the more than 600 business-
led Private Industry Councils (PICs), which will provide
greater input to job training and education programs by the
local business community. The PICs will manage Skills Centers,
the primary point of entry into Federally-funded job training
and occupational education programs. To ensure that Federal
funds support only high quality job training, the PICs will
certify, in conjunction with State programs, all local voca-
tional education and training programs. They will coordinate
the local delivery of more than $12 billion in funds, including
$7.6 billion in new and existing training vouchers. They will
directly control $4.1 billion for certain programs.
Job Training 2000
Job Training 2000" is based on four basic principles:
Simplifying and coordinating program services;
Decentralizing decision-making and creating a flexible
delivery structure for public programs that reflects local
labor market conditions;
Ensuring high standards of accountability and incentives
for quality job training services; and
Encouraging greater and more effect private sector
involvement.
1
The initiative consists of four major elements:
1. Reforming vocational training:
The initiative transforms the Employment Services offices
into Skills Centers that would serve as a "one-stop
shopping" point of entry into Federally funded job
training programs. These centers would provide skills
assessment, referral services, labor market information
and job placement assistance.
It also seeks to expand the role of the PICs, subjecting
them to performance standards and providing them with
incentive grants.
2. Facilitating the transition from school to work:
The initiative will establish voluntary skill standards
for what employees should know and be able to do in
different occupational areas.
It will also enable schools to establish youth
apprenticeship programs.
Fair Labor Standards Act changes would allow training
wages in approved programs.
3. Facilitating the transition from welfare to work:
The initiative encourages greater and more effective
private sector involvement.
It will fund demonstration projects to use private or non-
profit firms to provide basic training and job placement
for welfare recipients.
The President's health plan would eliminate loss of health
care coverage when AFDC recipients work; their health
insurance credits would help cover employer health
insurance costs.
4. Promoting life-long learning:
Each citizen eligible for Federal assistance for education
or training should have access to a simplified Lifetime
Education and Training Account consisting of a combination
of grants and loans.
Financial incentives will help make training institutions
accountable. At least 20% of the payment a training
institution would otherwise receive (excluding student living
expenses) would be paid only when the trainee completes the
program and holds a job in the field of training for at least
90 days.
(February 18, 1992)
2
THE BUSH ADMINISTRATION RECORD ON
PUBLIC SERVICE AND THE FEDERAL WORKFORCE
"I want to make sure that public service is valued and
respected because I want to encourage America's young to
pursue careers in government. There is nothing more
fulfilling than to serve your country and your fellow
citizens and to do it well. And that's what our system
of self-government depends on."
"I believe there is tremendous pent-up energy in the
Federal Government, a powerful force for good, that needs
to be released, and I want to be the President to do
that, to release the Federal manager from bureaucratic
bondage so that together we can, as I said on the steps
of the Capitol, use power to serve people."
-- President George Bush
January 26, 1989
Under President Bush, the Administration has been responsible for
changing the inflexible Federal pay system to a flexible, locality-
based system which will allow the Government to recruit and retain
the best people in the most cost-effective manner. This
initiative, coupled with more efficient recruitment strategies and
new training and development emphases, will result in a more
productive Federal Government serving the public with excellence.
The Bush Administration has a strong commitment to a high quality
public service dedicated to excellence, prudent in its use of the
public's tax dollars, and as diversified in its composition as the
Nation itself.
Increased Productivity and Improved Quality of Service
Under President Bush, there has been heightened interest in
ensuring that the Federal Government increases productivity and
improves the quality of services to the public. Between 1988 and
1991, the number of Federal organizations using quality management
principles significantly increased.
In that period, fifteen winners of the Federal Quality Award
had documented savings of over $2 billion.
Most major Departments and agencies have increased their
emphasis on quality management. Examples of departments and
agencies that have widespread efforts underway are Defense,
IRS, Interior, and NASA. Many others have quality efforts
underway for individual programs.
1
A High Quality Federal Workforce
The education, experience, and quality of the Federal workforce is
equivalent to and in some instances higher than that in the private
sector.
For example, a study of scientists and engineers in Federal
civilian agencies concludes that, in terms of qualitative
data, Federal professionals are well-educated, experienced,
and high performers. A 1990 study report of the character-
istics of 8600 scientists and engineers indicated that 49%
have advanced degrees, 23% of whom hold a doctorate; and on
average they had almost 20 years of experience."
Improved Image of Public Service
Under President Bush's leadership, the image of public service has
improved. The large numbers of college graduates interested in
entry-level professional positions provides evidence of this; since
May 1990, approximately 255,000 college graduates have applied for
the Government's professional entry level examination.
A Smaller and More Cost-Effective Federal Government
Compared to calendar year 1988, Executive Branch agencies had
22,000 fewer employees at the end of 1991. The Fiscal Year
1993 budget proposes further reductions, including a freeze
on Federal domestic employment.
Including reductions of over 40,000 civilian employees of the
Department of Defense and over 122,000 uniformed personnel,
the President's budget would decrease Executive Branch
employment by over 162,000 (4%) in FY 1993.
The use of sick leave and the turnover rates have decreased.
The Federal Government is experiencing the lowest usage of
sick leave since monitoring began seven years ago.
A More Diverse Federal Workforce
The President is living up to his commitment that his
Administration would represent the diversity of the Nation. There
has been an increase in the numbers of women, minorities, and
Americans with disabilities at all levels of Federal service.
The Office of Personnel Management reports to Congress
annually on civilian employment. A comparison of the 1988 and
1991 reports indicates a total increase in the percentage
employment of each identified minority group.
Asian and Hispanic women and Asian men showed the largest
increases.
2
Since 1988, the number of both women and minorities in
executive positions (political and career) has increased. For
example, women in the Senior Executive Service have gone from
9.4% to 12%; minorities have gone from 6.5% to 7.8%.
Federal employment of disabled Americans has increased from
6.6% in 1988 to 7% at the end of FY 91. The percentage of
disabled veterans who are Federal employees has increased from
13.2% in 1988 to 14.6% in 1991.
Efficient Recruitment and Referral Systems
The job information and referral systems designed to inform the
public of job opportunities and to refer applicants to agencies
have become more efficient during the Bush Administration.
As of January 1992, a nationwide job information system is in
place that allows the public to access, through a 7-day, 24-
hour 900 number, information about job vacancies by agency,
occupation, and geographic area.
Agencies requesting candidates to fill their vacancies can
now receive a list of qualified applicants from the OPM within
15 minutes of the time of the request.
More Cost-Effective Federal Employees Health Benefits Program
Under the Bush Administration, the Federal Employees Health
Benefits Program, the Nation's largest employer health benefits
program, has become more cost-effective, with premium increases
being far less than has been the case in the private sector. This
has been as a result of cost-containment methods such as
pre-admission certification and large case management as well as
program reserves.
In 1990/1991, the premium increase for Federal employees was
5.7% as compared to 12.1% in the private sector; in 1991/1992
the premium increase for Federal employees was 8.2% as
compared to 12% in the private sector.
Federal Employees Engaged in Community Service
The President has called on his Cabinet and other heads of Federal
agencies to recognize the community service efforts of Federal
employees and to make community service opportunities more
accessible through the workplace. The efforts of Federal employees
involved in solving serious social problems through community
service attempt to link more closely Federal offices and the
communities in which they are located.
(February 18, 1992)
3
THE BUSH ADMINISTRATION RECORD ON
TRADE
"We want the opportunity to compete aggressively in
the international marketplace. And at the same time
our consumers want access to the best goods and
services that [other] economies have to offer."
-- President Bush,
January 4, 1992
The Bush Administration is committed to opening markets for
American goods, services, and farm products. Since 1986, U.S.
exports have increased by almost 75%, reaching a record $398
billion in 1990. Rising exports have accounted for over one-third
of U.S. economic growth during the last five years. With the
increasing internationalization of the U.S. economy, our economic
prosperity is becoming ever more closely tied to our ability to
compete in overseas markets.
President Bush is committed to free and fair trade as a key to
ensuring U.S. prosperity for the future. His goal is to open new
markets for American goods, farm commodities, services, and
investment by negotiating with our trading partners to expand trade
flows and eliminate unfair barriers to American goods.
The Administration opposes protectionism. America's future lies
in opening markets and showing international leadership.
Protectionism and economic isolationism can only lead to a loss of
American competitiveness and a long-term decline in our living
standards.
The Uruguay Round
The United States is leading efforts to complete the Uruguay Round
of multilateral trade negotiations, the most ambitious in the
history of the General Agreement on Tariffs and Trade (GATT). Our
goals include sharply reducing trade barriers worldwide; extending
GATT rules to services, investment, and intellectual property; and
curbing unfair foreign subsidies that undercut American farm
exports. It has been estimated that a successful GATT agreement
would increase U.S. GNP by $1.1 trillion over ten years. The
President is a strong supporter of the GATT. As he has said,
"we've got to strengthen GATT as a matter of principle: as a sign
to the emerging democracies in Eastern Europe and in this
hemisphere that free trade is the way of the future."
1
The North American Free Trade Agreement
Increased trade is a win-win proposition. As trade expands, all
nations experience higher incomes, increased production, and
economic growth. Accordingly, the President has proposed a North
American Free Trade Agreement (NAFTA) to bring together the
economies of the United States, Mexico, and Canada. Our goal is
to expand trade and inyestment with our first and third largest
trading partners and establish a vibrant growing free trade zone.
Increased trade with Canada and Mexico could generate over 50,000
American jobs. The Administration is also committed to
strengthened cooperation with Mexico on labor standards and
environmental protection; we believe Mexico shares this commitment.
U.S.-Japan Trade
The Administration supports increasing American exports to Japan,
so that trade strengthens, rather than undermines, the alliance
between our nations. Under section 301 of U.S. trade law, the
Administration has negotiated agreements to gain access for U.S.
satellites, supercomputers, forest products, telecommunications,
semiconductors, and amorphous metals. The Administration has
concluded a broad-ranging Structural Impediments Initiative (SII)
agreement aimed at eliminating underlying structural barriers to
U.S. trade. Since 1986, U.S. exports to Japan have increased by
81 percent. Exports of manufactured goods are up by over 120
percent and the bilateral trade deficit has fallen by $17.1 billion
to $41.1 billion. President Bush delivered a forceful message
promoting free and fair trade during his recent visit to Japan.
While there has been solid progress in opening the Japanese market,
our view is that additional progress is required.
Enterprise for the Americas
The Administration has launched an Enterprise for the Americas
Initiative designed to expand our trade with Latin America and
create a true economic partnership based on reciprocal trade and
mutual respect. The initiative seeks to complement Latin American
economic and political reforms through its three pillars of trade
agreements, debt relief, and increased investment. These reforms
will help restore economic growth in a region that is a natural
market for American exports and with which we traditionally have
had close ties and important interests.
Our future prosperity depends on opening markets and continuing to
expand U.S. trade. Retreating into protectionism, managed trade,
and isolationism is a prescription for economic decline and a loss
of American leadership.
(January 17, 1992)
2
THE BUSH ADMINISTRATION RECORD ON
U.S.-PACIFIC TRADE
"Asia has transformed itself in the space of a
generation into the most rapidly growing region on
the face of the Earth."
-- President George Bush
November 12, 1991
The Bush Administration has taken the lead in adapting American
involvement to the dynamic Asia Pacific region -- our largest and
fastest growing trade partner -- in the context of acceleration
of the integration of the world economy. We have nurtured a
sustained Japanese commitment to market-opening measures and have
enlisted the support of our Asia Pacific partners in the current
effort to conclude successfully the Uruguay Round of the GATT
talks. We have helped transform the Asia Pacific Economic
Cooperation (APEC) concept into a viable institution of 15
economies, and will continue to encourage economic growth and
free and fair trade in the region, not the least by setting an
example in strengthening our own economy.
American Commercial Interests
With its 1.9 billion people and 60% of global GNP, the Asia
Pacific market is vital to U.S. prosperity. East Asia has grown
over the past ten years to become the largest foreign economic
partner of the United States. U.S. trans-Pacific trade is now
one-third larger than U.S. trade with Europe; in 1990 U.S.
manufacturers sold $115 billion worth of goods in the region, 29%
of total U.S. exports. With the region's high savings and
investment rates and dynamic entrepreneurs and governments, we
expect that by the year 2000 America's Pacific trade will be
double its Atlantic trade.
The Administration has made an investment in the future in the
Asia Pacific region. We have promoted American business
endeavors resulting in a 15 percent increase in U.S. investment
in the region from 1989-90 and an estimated 12 percent increase
in our merchandise exports to the region in the same period. Our
merchandise trade deficit with the economies of the Asia Pacific
declined an estimated 12 percent from 1989-91.
Commitment to Free Trade
Reduction of trade imbalances caused by distortions of free and
fair trade is a high priority for this Administration. We have
worked hard to promote an open world economy and a strong
multilateral trading system that will provide benefits far beyond
those to be gained from any protectionist trading bloc. The
Administration participates as a founding member in APEC, with
ASEAN at its core, the forum for dynamic promotion of market-
oriented reforms and trade liberalization throughout the region.
Our Structural Impediments Initiative, designed to improve U.S.
competitiveness and open markets in Japan, has been mutually
beneficial and was further strengthened during the President's
January visit to Japan. Japan's Global Business Partnership Plan
of Action will mean more jobs for Americans and better trade
relations between America and Japan for the long-term.
Where cooperation has been less successful in Asia, we have used
the trade policy tools available to us to persuade our partners
in the region that we are deeply committed to free and fair
trade. For example, we have used Special and Section 301 trade
action to address inadequate protection of intellectual property
rights and market access barriers in China and Thailand. Our IPR
agreement with China will help to expand U.S. exports.
In January 1992, the President visited Asian countries to
participate in the U.S.-Asia Environmental Partnership, which
will improve environmental quality in Asia while expanding
markets for U.S. goods and services.
American Competitiveness
The Administration is determined to improve America's position in
an integrated, highly competitive global economy and has embarked
upon an effort to demonstrate that national security and economic
strength are indivisible. If we are to continue to reduce trade
imbalances in the region, we must, along with the forward-looking
steps Japan and the U.S. have taken to open Japanese markets,
reduce our own budget deficits while also encouraging U.S.
private savings and investment and improving American education.
We seek to end the competitive disadvantage American
businesspeople suffer as a result of our unacceptably high
effective tax rate on capital gains.
We will continue to pursue a strategy that expands and
strengthens market economies in the Asia Pacific region. This
will require further efforts to open markets and expand trade,
strengthen cooperation with our major partners and important
financial institutions, and develop imaginative solutions to the
problems of developing countries in the region.
2
THE BUSH ADMINISTRATION RECORD ON
TRADE AND ECONOMIC RELATIONS WITH JAPAN
"In the cause of free and open trade, we want
agreements that produce permanent improvement in
access and in U.S. sales to Japanese markets and
permanent improvements in the lives of Japanese
consumers."
-- President George Bush
January 7, 1992
President Bush's trip to Japan in January 1992 was a success.
Besides building on the strong U.S.-Japanese political
partnership and strategic alliance, the President also made
progress on the important issue of building our commercial and
economic relationship with Japan -- particularly opening the
Japanese market to U.S. exports.
Strategy for World Growth
Japan and the United States are the world's two largest
economies, accounting for 40% of world Gross National Product.
As such, they bear a critical responsibility for promoting growth
not only in their countries, but around the world -: and a
growing world economy is good for the United States.
In their joint statement, "Strategy for World Growth, " both the
United States and Japan recognized that global growth is a top
priority and agreed to take actions to strengthen the
international economy.
U.S. interest rates are moving down. Japan agreed to cut
its discount rate by .5% to 4.5%.
The Japanese Government will "monitor progress to assure the
expected effects" of lower interest rates.
Resolving Bilateral Trade Problems
The Bush Administration has accomplished a great deal in our
trade relations with Japan over the past three years, seeking to
open the world's second largest market economy to U.S. exports.
For example, we have signed four telecommunications agreements,
covering cellular telephones, international network services, and
equipment; agreements covering government procurement of
supercomputers, satellites, construction services, and computer
hardware and services; and accords substantially improving our
1
access to the Japanese markets for semiconductors, wood products,
and amorphous metals.
These efforts have led to concrete results for U.S. exporters:
Since 1988, U.S. merchandise exports to Japan have risen by
an impressive 30% to $49 billion.
U.S. merchandise exports to Japan have grown 50% faster than
U.S. exports to the rest of the world. American exports to
Japan in 1990 were greater than our exports to West Germany,
France, and Italy combined.
Our telecommunications exports have risen 180% since 1988,
to about $735 million in 1991.
Our semiconductor exports have risen from $920 million in
1986, when the U.S. signed the first semiconductor agreement
with Japan, to nearly $2.4 billion in 1990.
In construction services, since 1988 U.S. firms have won
$375 million in contracts; prior to the 1988 agreement, U.S.
firms have virtually no presence in the market.
Since the June 1990 satellites agreement, one contract has
been awarded; the $600 million award went to a U.S. firm.
U.S. firms have won three out of eight contracts since the
June 1990 supercomputer agreement. Prior to the agreement,
U.S. supercomputers were chosen in only two out of 43 cases.
U.S. industry expects the June 1990 wood products agreement
to increase U.S. exports of plywood and other processed wood
products by over $1 billion annually.
The U.S. computer industry expects the agreement opening
Japan's government procurement of computers and related
services to foreign suppliers, concluded during the
President's trip to Tokyo, will result in increased sales of
$3.5-$5.5 billion annually by 1995, when the Japanese
government market for computer products and services is
projected to grow to nearly $16 billion.
The President's trip also substantially improved our access to
Japan's $65 billion paper market, the $4 billion flat glass
market, and improved our access to Japan's automobile and parts
markets as well.
Principles of Our Trade Policy
The central objective of this Administration's trade policy has
been to open markets, opening new export opportunities abroad and
stimulating growth, jobs, and prosperity at home. We seek in our
negotiations with Japan to establish an open and competitive
climate where decisions are based on price and quality alone.
Our entrepreneurs must be permitted to trade and invest in Japan
as freely as Japanese entrepreneurs are able to trade and invest
in the United States.
2
The Bush Administration is working to open the Japanese market by
lowering structural barriers through the Structural Impediments
Initiative (SII), eliminating barriers in specific sectors using
our trade laws and other means. We have had significant success:
For instance, SII negotiations resulted in streamlining the
cumbersome and restrictive Japanese approval process for
large retail stores. One beneficiary was Toys 'R Us, which
opened its first store in Japan last December and plans more
than 100 by the end of the century.
SII has also led to progress in areas such as Japanese
government procurement of computers; greater shareholder
rights; and an improved foreign investment infrastructure,
such as easier customs clearance and reformed procedures in
the Japan Patent Office.
We remain concerned about Japanese impediments to market access
and continue to work vigorously to remove these impediments in
our sector-specific negotiations, our Structural Impediments
Initiative talks, and in our efforts to successfully conclude the
Uruguay Round negotiations that are so essential to the health of
the world trade system.
"[T]his progress translates into jobs and economic
growth in America because I know the American
worker can compete with anyone around the world if
given a fair chance."
-- President George Bush
January 9, 1992
(March 9, 1992)
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THE BUSH ADMINISTRATION RECORD ON
INTERNATIONAL DEBT STRATEGY
"Nations which a few years ago were on the brink
of financial disaster are returning to the
markets, attracting major new investment and a
return of flight capital, and experiencing renewed
growth.
"
-- Secretary Nicholas F. Brady
October 13, 1991
The Bush Administration has achieved substantial progress in
addressing the debt problems of developing countries. Market-
oriented economic reforms are now seen as essential to economic
growth. Substantial amounts of debt have been reduced or
forgiven by international creditors for countries undertaking
economic reforms.
An International Strategy
The Administration has taken the lead role in forging an
international strategy to address the debt problem. This
strategy aims at restoring creditworthiness in developing
countries by encouraging them to undertake broad, sustained
economic reforms, including measures to liberalize investment
regimes to attract and retain private capital.
The Brady Plan
The Administration's plan for addressing commercial bank debt has
shown dramatic success. Eight countries accounting for $125
billion in commercial bank debt have now negotiated new financing
and debt reduction agreements with their commercial banks. The
combination of sound economic reforms and debt reduction is
causing a positive market response. These eight major debtors
have received $9 billion in new financial flows from commercial
banks and international capital markets and $11 billion in new
net direct investment flows.
Official Debt Relief
To support debtor nations undertaking economic reforms, the Bush
Administration has taken a number of actions to ease official
debt burdens. Multilaterally, through the Paris Club, the
Administration has provided longer repayment terms for both the
poorest and lower middle-income countries. Bilaterally, the U.S.
has forgiven almost $3 billion in concessional debts owed by the
poorest countries of Africa, Asia, and Latin America.
Under the Enterprise for the Americas Initiative -- of which debt
reduction is one of the three "pillars" -- $263 million owed by
countries in Latin America and the Caribbean has been forgiven.
The debt reduction "pillar" includes an innovative mechanism
which allows indebted countries to repay interest on remaining
debt in local currency for use in grassroots environmental
projects -- in effect, a "debt-for-nature" swap.
"Debt-for-Nature"
In 1990 at the Houston Economic Summit, the Group of Seven's
statement singled out debt for environment swaps as a mechanism
that can play a useful role in protecting the environment. In
the fall of 1990, the Paris Club decided to accept debt for
environment transactions as a strategy for reducing foreign debt
burdens in heavily indebted countries.
Exceptional Debt Reduction for Egypt and Poland
Vigorous efforts of the Bush Administration resulted in
multilateral and bipartisan support for exceptional debt relief
for Egypt and Poland. These actions supported Egypt's special
role in coalition efforts in Operation Desert Shield and Poland's
dramatic economic and political transformation.
The Bush Administration has promoted an international debt
strategy which is working well. We are confident that the broad
range of economic reform and debt relief efforts now underway
holds the hope of economic growth in many developing countries,
with consequent benefits not only for the developing nations
themselves but also for U.S. exporters.
(February 18, 1992)
2
THE BUSH ADMINISTRATION RECORD ON
STRATEGIC TRADE POLICY
"I've made it a priority to review and
modernize our export controls to provide vital
help to the emerging democracies without
compromising national security. Given the pace
of political change, rapid advances in
technology, and the competitive position of
American industry, we must ensure that export
controls are effective or eliminated."
-- President George Bush
March 7, 1990
Over the past three years, the Bush Administration has pursued
aggressively a transformation of strategic trade policy from the
traditional focus on the now defunct Warsaw Pact towards the
threats of the 1990s -- most visibly seen in the weapons and
missiles Saddam Hussein sought or acquired. In so doing, export
licenses that constrain U.S. industries have been reduced some 80%.
At the same time, we have achieved multilateral consensus for more
effective international controls against the proliferation of
weapons of mass destruction and the missiles to deliver them.
Past Successes
The Bush Administration entered office strongly committed to
maintaining an export control regime that for over 40 years had
denied the Soviet Union and its Warsaw Pact allies access to
strategic technology. The combined efforts of the United States
and our allies in COCOM effectively hobbled Soviet weapons
development. In weapons targeting, stealth technology, or night
vision devices, the arms and supporting systems available to NATO
allies were increasingly more effective than those possessed by
potential adversaries.
The Changing Strategic Environment
However, both the strategic balance and our bilateral relations
with the former Soviet Union began to change. The first
substantive policy review in the area of strategic trade occurred
just after the Soviets left Afghanistan. It led to the removal of
a decade-old U.S.-imposed limitation on sending any high technology
equipment to the USSR; the "no exceptions" policy was rescinded.
As the strategic environment continued to improve, the President
directed the intelligence community and Joint Chiefs of Staff to
undertake a new strategic assessment. This assessment identified
relatively few "gap-closing" technologies which were critical to
protect our strategic advantage in weapons systems. The U.S. took
the lead with its allies in removing export controls on large
numbers of other items not critical to our strategic superiority.
New Concerns -- Proliferation
During this same period, efforts by some nations to acquire weapons
of mass destruction -- chemical, biological, and nuclear -- and the
missiles to deliver them continued and intensified. In response
to this threat, the Administration developed an improved set of
nonproliferation export controls. The Administration has sought
to ensure that these controls are also implemented by other
nations.
Tasks Ahead
Working with industry, allied governments, and the Congress, the
Administration will continue to evaluate and expand on its record
of success in reducing export control constraints on East-West
trade while seeking to impose limits on proliferators. Guiding
these efforts will be a firm commitment to multilateral controls
as the most effective mechanism to protect the collective security
of free nations.
The Administration wants American companies to be able to take
advantage to the fullest extent possible of the new opportunities
for business in the former Soviet bloc; at the same time, we seek
to ensure that the United States will not inadvertently lessen
world security through trade which results in proliferation of
weapons of mass destruction.
(February 18, 1992)
THE BUSH ADMINISTRATION RECORD ON
TRAVEL AND TOURISM
"U.S. earnings from tourism are growing faster
than our receipts from goods and services as a
whole -- and this has been the case for over 30
years. "
-- President George Bush
October 28, 1991
Travel and tourism are an important part of the U.S. economy. A
$327 billion industry, travel and tourism generates more jobs
than any other industry except health services and directly
employs nearly 6,000,000 Americans. Tourism is among the top
three industries in 37 of the 50 States. In 1990, international
visitors to the United States spent approximately $52.8 billion.
Travel in the Economy
The travel industry provides a disproportionate number of
jobs for traditionally disadvantaged groups: over one
million black Americans, nearly a million Hispanic
Americans, and nearly five million women. The total payroll
for workers in the travel industry is nearly $83.4 billion.
The Presidential Initiative on Rural Economic Development
recognizes that new economic opportunities for rural America
will be found primarily in off-farm employment opportunities
such as tourism, retirement living, and commercial
recreation. As part of that initiative, Federal agencies
will provide for educational outreach programs in rural
tourism development.
Promoting the United States Abroad: Federal Support
The United States Travel and Tourism Administration (USTTA), an
agency of the Commerce Department, has regional offices serving
the ten primary tourist-producing markets of the world:
Australia, Canada, France, Germany, Italy, Japan, the
Netherlands, Mexico, South America, and the United Kingdom.
USTTA international offices conducted 118 seminars in Fiscal
Year 1991 to acquaint 9,880 international sellers of travel
services with U.S. tourism.
In FY 1991, these offices handled 407,012 consumer requests
and 185,906 trade inquiries.
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President Bush taped a special video message inviting
foreign visitors to come to the United States.
Finally, the Administration is working in the Uruguay Round
of the General Agreement on Tariffs and Trade to formalate
rules to liberalize trade in services, so Americans in the
travel industry may compete under nondiscriminatory rules.
Working with the Private Sector
The public and private sectors came together in February 1991 to
support GO*USA, led by Bill Marriott of the Marriott Corporation,
to help overcome the lag in travel caused by the Gulf War. Now,
an international marketing campaign of USTTA and the GO*USA
coalition, now led by Jim Robinson of American Express, is
seeking to strengthen our position in the competitive
international marketplace.
In FY 1991, more than 5000 industry partners invested more
than $16 million in USTTA coordinated programs to market the
U.S. as a travel destination. These programs included print
and electronic media advertising, trade shows, tours, and
literature.
(February 18, 1992)
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