President George H.W. Bush
Bush-Quayle Fundraising Dinner
Sheraton Astrodome Hotel
Houston, TX
October 31, 1991

[White House Transcript via American Presidency Project  |  C-SPAN Video]

Please be seated. And, Bob, thank you. Thank you for the superior and wonderful job you've done. You know, this is the very first event for the Bush-Quayle fundraising effort. And we wanted to start amongst friends, and we wanted to get somebody good, somebody effective to head this dinner. And I can't think of anybody better than Bob Cruikshank and all those up here and all those out there that have come through. It is wonderful beginning. And I'm grateful, and I know Dan is, to every single one of you.

I want to thank my Vice President, your Vice President and his marvelous wife, Marilyn. I can't begin to tell you of all the things he does. But I think the country now sees his substance and his value, and it's something I see every single day that I'm President as we take on a Congress that, frankly, needs a little leadership up there. I've heard him take the gloves off a little bit there, and that's fine. That suits the heck out of me.

I also want to say to Bob Mosbacher how grateful I am to have him at my side. I know all of you know him. Everybody in this room knows him as a friend. But I know him not just as a friend of longstanding but as an effective member of our Cabinet. And I can tell you, he is out there, domestically, and around the world promoting the American free enterprise system, looking after the interests of American investment, American jobs, here and abroad. And, Bob, I'm very grateful to you.

May I also thank Bobby Holt. Yes, Midland's out there somewhere. [Laughter] Holt is everywhere, and he's doing a wonderful job as our chairman, our national chairman, taking the role Bob Mosbacher had so successfully filled for us in the previous campaign.

Senator Phil Gramm, I agree with everything Dan Quayle said about him. I see him in action. And I'll tell you, when you have the minority in the Senate, when you have to play defense because of the numbers, you want a tenacious bulldog, free thinker, enterprising Senator at your side like Phil Gramm. I'm grateful to him every single day that I'm President.

I want to thank Willie Alexander for being with us, and Reverend Claude Payne, my pastor; Milo Hamilton, of course; and then the Aggies, the Texas A&M Singing Cadets. I don't know how they can still stay standing. This is about a 45-minute speech. Let's see how they do at the end of this one. [Laughter]

It's great to be back. Milo, one slight correction, you said I said, "There's so-and-so." I was looking at Red Adair, and I said, "There's that so-and-so." [Laughter]

You know, coming back here really does take you back in a sense to roots. I first became active in politics out in Odessa and Midland in `52 when I headed the Eisenhower-Nixon campaign, Barbara at my side. In '56, the same role. I think it was in that year that she and I conducted the very first primary that was ever held in Midland, Texas. Three people -- some of you have heard this story; it happens to be true -- three people voted all day in that precinct: Barbara, me, and one drunk that thought he was going to the Democratic precinct. [Laughter] And that's the gospel truth. [Laughter]

Then, I came down here to Texas, and early in the sixties I became Harris County Republican chairman. There, I think more than anyplace, Barbara and I first got a taste of what was to become a way of life for us. The party was small, very, very small in those days. And yet, the ideals and the ideas were sound: Fiscal sanity; people controlling their own destinies more; limited government; trust in the people; a compassionate, fair Government; strong defense; a country not afraid to lead. Those were some of the things that brought us together in this tiny party matrix 30 years ago in Harris County. And I must say, those are the same ideals that both Dan and I have, the same ideas that we believe in. Thirty years later, I still feel strongly about those principles and other fundamental principles that join us here tonight.

Lately, the opposition up there in Washington says we don't have an agenda. But I've noticed that their agenda for Congress is stopping our agenda for America. They are old thinkers, tired, old ideas, and all they want to do is block the agenda that I was elected to perform on by the American people. And I'm a little tired of it. You work your heart out for new ideas in trying to bring new systems to this country, and you face the old, same old tired liberal cliches in Washington, DC. We are pro-growth. We are pro-family. We are a pro-freedom agenda. And that is our agenda, to build a better America. And I wish we had more people in the Senate like Phil Gramm, and we'd be singing swiftly ahead, I'll tell you.

I was privileged to work with my dear friend, Hugh Liedtke, and others in starting two or three very small companies here in Texas. And I never forgot, and I never will forget that America owes to its small business men and women. That's one reason that, for over the last 3 years, I've fought against policies that would drive small business into the ground through Government mandates.

Every time you turn around, you've got some subcommittee chairman that's been there 30 years trying to mandate new benefits and tell some guy in Midland or Odessa how to run his life. And we're sick and tired of it. And next year, we're going to change it.

Dan Quayle has a committee trying to do something about overregulation. And you ought to hear them squirming over there in the House of Representatives, refusing to let him get his job done because they're thinking old, tired thoughts that the Federal Government ought to regulate every inch of your life. And we're tired of that one, too.

Look, I'll be the first to agree we need economic growth in this country. But we can't get it if Congress keeps piling on mandated benefits. Wonderful new programs designed by a subcommittee chairman in Washington, DC, telling everybody exactly how they're going to take their leave, what they're going to do about helping people in their neighborhoods. This isn't the way America ought to be operating. I have this wonderful sense that -- I get frustrated at times, but I've got this wonderful sense that we can change that next year by taking our message that the Congress has been around there too darn long, controlled by the same party. And it's time to change it.

Let me give you an example. I'm just getting warmed up because I heard George Mitchell on the television a few minutes ago. Now, let me tell you something here. [Laughter] Let me talk to you about an issue. I don't think there is anybody in this country, any fairminded man or woman who doesn't sympathize with someone who wants to work and is out of work. It's very easy to demagog on this issue. Nobody who has one grain of compassion likes to veto an unemployment compensation bill. But someone -- and I think I was the one elected to do this -- must consider the welfare of all the people in this country.

So, let me tell you what my position is on this unemployment compensation. Number one: I want to see the Democrats in the Senate lay politics aside and help those whose unemployment benefits have run out. Families are hurting out there. And I've said for months that I want to help them.

Secondly, I want a bill that, in helping them, does not burden every single taxpayer in this country, those that are working and those that aren't working. I don't want to see the budget agreement that Phil Gramm and others worked so hard to get into place, the spending caps on it, the only control that you as taxpayers have on a spendthrift Congress, I don't want to see it broken. And the only safeguard we have against more and more spending is that budget agreement.

Every time I turn around, the liberal Democrats want to bust the agreement. That would add to the deficit and eventually add to the tax burden of present generation's and the debt burden of future generations.

Number three on this same subject: We have a proposal before the Congress that extends benefits. It lays aside all this political rhetoric that you hear from these Democrats and get the checks in the mail to those families that are hurting and does it within the budget agreement. Bob Dole proposed that weeks ago. But the Democrats want to ram it down my ear in a political victory, and I'm going to veto their bill if they send it down in a way that's going to bust this budget again. Now, they can mark that one down.

I think it's a crying shame to play politics when people are hurting in this country. I really believe that. And they can get a bill signed by me tomorrow if they get going and send something down that lives within the budget agreement that we all agreed to, that they themselves agreed to. You tell me who's playing politics with that issue when people are hurting in this country.

It's not all negative. At times, we're able to persuade -- I remember how Lyndon used to talk: "Come reason with me." Wrench the guy's arm out of his socket. [Laughter] And he was working with control of both Houses of the Congress. I don't know how he'd do it today.

But sometimes we are able to persuade the opposition to cooperate, to join with us. I've reached out to the Congress. I don't believe there's a person in America that thinks I haven't reached out to the Congress, not always in a kind and gentle way, but always reached out to the Congress, trying to get something done for the American people and do it in a manner I was elected to do it. I was the one that was elected, Dan Quayle and I were the ones that were elected by all the people in this country. And the Senators have their responsibilities. Of course they do. But I think I have a responsibility to perform on what I told the people 3 years ago that I would do.

We did get the Clean Air Act through, compromise. Good, fair negotiation with the Democrats, amendments that employ free-market incentives and really do help the environment. We advanced the cause of property rights and home ownership with this HOPE, this homeownership initiative. We're broken down the barriers to employment of 43 million Americans with our landmark Americans with Disabilities Act, which I was very proud -- emotional in signing last year on the South Lawn of the White House.

Other times we can do some positive things on our own. Just last week, I signed an Executive order to take the first steps in reforming our legal system. Dan Quayle's committee came up with some very sound recommendations, and I was proud to incorporate them into an Executive order. We're trying, frankly, to put an end to some of these outrageous lawsuits and monstrous settlements that scare every small businessman, every doctor, and everybody else in this country to death.

There's only so much of it we can do with Executive orders. We need liability reform legislation. And yet, that legislation is bottled up by these people I'm saying tonight are old thinkers. They just don't want to take on the pressure groups, the lobbies, the tough constituents that come together and try to get for the few that which the many are denied.

Americans want liability reform. And I'd like to see the Congress move out now and do something about it. Dan Quayle has been out there on the cutting edge of this, and I am 100 percent behind him.

And I might say that he's touched -- he referred to it -- touched a sore spot with some of the members of the ABA, the American Bar Association, when he called for legal reform. But he touched a nerve with a whole lot more everyday Americans who just plain stood up and cheered. He's done a great job on it, and I am very proud to have him by my side on this issue and all the other issues we're talking about here tonight.

The Senate did a good job in a bipartisan manner on the crime bill. But then it goes over to the House, and some of these old thinkers I'm telling you about are denying the changes that the American people so clearly spoke about in the Presidential elections of 1988. We've got -- you talk about these incentives to get jobs -- we've got some incentive in a transportation bill, a job-heavy transportation bill and yet a good one. We beat back some bad legislation. We've got a good one there.

In the State of the Union message, I said to Congress, "Hey, how about passing a transportation bill in 100 days?" That was 241 days ago, and they haven't got it down to my desk to be signed yet. I think the people are tired of this kind of old thinking, old politics.

One area where we don't need a lot of legislation, need some but not a lot, is in education. We have an initiative called America 2000, a concept designed to literally revolutionize our schools.

Lamar Alexander, David Kearns, coming together as a fantastic team there, rethinking, working with Governors, Democrats, Republicans alike, to redefine what we need to achieve educational excellence.

And you talk about an exciting concept, one that's gathering momentum and excitement around the country, it's that one. And fortunately, we don't need a lot of legislation because one of the key education committees that you have to go to is tired. Think how much money are we going to spend for this, how much money are we going to spend for that, programs that have failed.

It's not a question of money. It's not a question of that. We spent $190 billion in 1980 on education. We spend $400 billion today, and we're way back in the tail end of education around the world. It isn't good enough. And we've got to think anew. Give me more Senators like Phil, and give me more congressmen like Bill Archer, and by golly, you'll see the change in education that the American people want.

You hear about consumer confidence. Yes, there's a lack of confidence. And one thing that would change it right now is sound, forward-looking banking reform legislation. And we've got those proposals, and they've been gutted by partisan infighting. How I long for a Congress where we can at least take the offense on these important issues.

One subject that many of you know an awful lot about in this room, a national energy strategy. We need that from the Congress. It would mean jobs. It would mean increased production, and it would mean less dependence on foreign oil for our energy requirements.

And I am going to continue to support environmentally responsive access to ANWR, the Alaskan Refuge, for energy production. We need it. And if you're worried about caribou, take a look at the arguments that were used about the pipeline. They'd say the caribou would be extinct. You've got to shake them away with a stick. They're all making love lying up against the pipeline. And you've got thousands of caribou up there. And yet the same voices, the same voices are arguing against ANWR today. I mean, come on. [Laughter]

I want to see us reduce our reliance on foreign oil, and we can if we pass an energy bill, one like the one that came out of Senator Bennett Johnston's -- good Democrat on this issue -- and Senator Malcolm Wallop, came out of their committee.

You know, we hear a lot about economic growth. I've called for economic growth initiatives in three State of the Union messages, and a part of that, one part of the economic growth was a capital gains tax cut. So, what happens in Washington, DC? They jump up and down and scream, "This is a tax cut for the rich." Let me tell you, I'll make them a proposal right here tonight. I will take all the political heat that they can muster. Whatever country, however much demagoguery they can bring to bear on that issue, I'll take that heat if they will give this capital gains cut a chance. Because it will create jobs and get America back to work again. And it is not a tax cut for the rich. It is a jobs measure, a small-business-creation measure, a shot-in-the-arm-for-a-sluggish-economy measure.

History has already shown that it does not add to the deficit. The Treasury scores it as a plus, not a minus. It reduces the deficit. So, let the opposition carry on all they want. We've all heard it before -- good heavens, I'm 67, I've heard it for a thousand years -- "tax cut for the rich, breaks for the rich." Let's try something a little bit different than the mandated programs from Washington that offer people a lack of dignity and a lack of hope. And in the meantime, give the Americans a break. Give them some jobs. Get going with our motivation package.

Finally, it's time we got rid of a practice where a privileged few stand outside the law, where attending to the national interest takes a back seat to serving the special interests. And very frankly, it's time that the United States Congress started following the laws it imposes on every citizen in this country.

I gave the Congress a gentle nudge on this the other day, pointing out that with all the pious cries during those Thomas hearings, Congress, now, get this, has exempted itself from sexual harassment laws. Word of honor. Yesterday the Senate did take one step to put itself under the same laws that the rest of the people have to obey. But that's just not enough. It's time that those who make the laws, live by the laws that they make others live by. Now, that is fairplay, and it's long overdue.

And speaking of Clarence Thomas, I am delighted that he's on the Supreme Court. Men supported him overwhelmingly. Women supported him overwhelmingly. Blacks supported him overwhelmingly. But the liberals in the Senate didn't support him at all. And I'm glad that the people won out on that one.

When I hear the critics in Congress arguing about our priorities, foreign policy or domestic policy. I wonder where their priorities are. The "global marketplace" isn't off in Europe or Asia or in Africa. It's right here in our neighborhoods, in our businesses, in our schools. Take a look at our North American free trade agreement. It will have a monumental effect on the quality of life here in the United States over the next decade.

We're not doing this to be nice to Mexico. We're doing it because it is in the best interest of the workers and the people of the United States of America. Every billion dollars in new trade means 20,000 more jobs. A better-educated work force means higher quality products, which means more economic growth. The cycle continues, and growth means more jobs, more opportunity for everyone.

But the world beyond our borders affects us in other ways. And we've got to make a choice: Do we meet its challenges, or do we fall behind?

And yes, since I've been President, we have been called upon to meet one crucial challenge after another. And meet them we did, each and every one. From Eastern Europe to Panama to the Persian Gulf, to dealing with the Soviet Union as history unfolds before your very eyes, in all of these, it is America that stands as a beacon of freedom throughout the world. And our prestige around the world has never been higher than it is today.

I'm still on Madrid daylight saving, or something. My eyes kind of -- because yesterday I was in Madrid, and I helped open that Middle East peace conference in Madrid. But over there, I made a terrible mistake. I flipped on CNN, and I say that with respect to CNN guys down here. But I turned it on, and I saw one of the Democrat leaders, one of the elected Democrat leaders in the House of Representatives attack me for being at that historic conference. I could not believe the small-bore nature of that partisan criticism. Here you have a historic peace conference. You're bringing together people that have been hostile and wouldn't even have been in the same room at any time in their history. And this guy gets on and says I shouldn't be in Madrid for 36 hours.

Come on. We have a responsibility here. I have a responsibility to lead, and I'm not going to let Democratic, liberal carping keep me from leading.

If I had to get -- let me put it to you so you can understand it. Let me put it in Red Adair's terms, "If I'd have had to let Ted Kennedy tell me whether I could move a quarter-of-a-million troops to the Middle East or let Schwarzkopf move from St. Petersburg or Tampa to Saudi Arabia, Schwarzkopf would still be there. The troops would still be there, and Saddam Hussein would still be in Kuwait, maybe moving into Saudi Arabia. That's what was at stake. And thank God, I didn't have to listen to these carpers telling me how to run that war.

I'm getting warmed up for next year. [Laughter] I told them I was not going to do this until about March or April of next year. [Laughter] But they get under your skin for a while. I've reached out to this Congress. [Laughter] I really have tried. And I'm getting sick and tired, as the Congress winds up, of this partisan, liberal criticism. I can't wait now to roll up my sleeves and become a candidate. [Laughter]

My point is simply this: We live in an integrated world. And in that world, you can't neatly divide foreign policy from domestic policy. When I talk with foreign leaders about new markets for American products, is it foreign policy or domestic? When I meet with groups of Latin American leaders, as I did in Cartagena, to help try to keep drugs out of America's schools and neighborhoods, is that foreign policy or is that domestic policy? When Desert Storm reignited Americans' faith in themselves, was that just foreign policy?

No. It demonstrated our special role as the world's preeminent moral, political, economic, and military power. The pride that we felt in our fighting men and women, and in ourselves shouldn't be trivialized as something "foreign."

Anyone who says we should retreat into an isolationistic cocoon is living in the last century, when we should be focusing on the next century, and the life that our kids can have in that next century. They should know that America's destiny has always been to lead. And if I have anything to do with it, lead we will.

I'll tell you, yes, there are plenty of real problems out there all across our country. They're human problems where real people, real lives are at stake. Dan talked about the family, where families are ripped asunder. Tons of problems out there. But we are going to prevail because I firmly believe that the American spirit is alive and well.

In Texas or in Washington, I know we'll keep up the fight. And we will hold as our banner the frontier resolve and the commonsense ideals of those early Texans who built our great State. I am absolutely convinced, no matter what the obstacles we face in a partisan nature, that we can do something for the kids, that we can build a better America.

So, I want to thank you for being here with us tonight. It means a great deal in many, many more ways than I can possibly tell you, for Barbara and me to start this journey, this fundraising journey right here where we feel, what Bob talked about, a sense of love and warmth and friendship. That means an awful lot, whether you're President of the United States or still living around the corner.

Thank you and God bless each and every one of you. Thank you very much.

President George H.W. Bush
Address Before a Joint Session of the Congress on the State of the Union
U.S. Capitol
Washington, DC
January 28, 1992

White House Transcript via American Presidency Project  |  C-SPAN Video]

Mr. Speaker and Mr. President, distinguished Members of Congress, honored guests, and fellow citizens:

Thank you very much for that warm reception. You know, with the big buildup this address has had, I wanted to make sure it would be a big hit, but I couldn't convince Barbara to deliver it for me. [Laughter]

I see the Speaker and the Vice President are laughing. They saw what I did in Japan, and they're just happy they're sitting behind me. [Laughter]

I mean to speak tonight of big things, of big changes and the promises they hold, and of some big problems and how, together, we can solve them and move our country forward as the undisputed leader of the age.

We gather tonight at a dramatic and deeply promising time in our history and in the history of man on Earth. For in the past 12 months, the world has known changes of almost Biblical proportions. And even now, months after the failed coup that doomed a failed system, I'm not sure we've absorbed the full impact, the full import of what happened. But communism died this year.

Even as President, with the most fascinating possible vantage point, there were times when I was so busy managing progress and helping to lead change that I didn't always show the joy that was in my heart. But the biggest thing that has happened in the world in my life, in our lives, is this: By the grace of God, America won the cold war.

I mean to speak this evening of the changes that can take place in our country, now that we can stop making the sacrifices we had to make when we had an avowed enemy that was a superpower. Now we can look homeward even more and move to set right what needs to be set right.

I will speak of those things. But let me tell you something I've been thinking these past few months. It's a kind of rollcall of honor. For the cold war didn't end; it was won. And I think of those who won it, in places like Korea and Vietnam. And some of them didn't come back. Back then they were heroes, but this year they were victors.

The long rollcall, all the G.I. Joes and Janes, all the ones who fought faithfully for freedom, who hit the ground and sucked the dust and knew their share of horror. This may seem frivolous, and I don't mean it so, but it's moving to me how the world saw them. The world saw not only their special valor but their special style: their rambunctious, optimistic bravery, their do-or-die unity unhampered by class or race or region. What a group we've put forth, for generations now, from the ones who wrote "Kilroy was here" on the walls of the German stalags to those who left signs in the Iraqi desert that said, "I saw Elvis." What a group of kids we've sent out into the world.

And there's another to be singled out, though it may seem inelegant, and I mean a mass of people called the American taxpayer. No one ever thinks to thank the people who pay a country's bill or an alliance's bill. But for half a century now, the American people have shouldered the burden and paid taxes that were higher than they would have been to support a defense that was bigger than it would have been if imperial communism had never existed. But it did; doesn't anymore. And here's a fact I wouldn't mind the world acknowledging: The American taxpayer bore the brunt of the burden and deserves a hunk of the glory.

So now, for the first time in 35 years, our strategic bombers stand down. No longer are they on 'round-the-clock alert. Tomorrow our children will go to school and study history and how plants grow. And they won't have, as my children did, air raid drills in which they crawl under their desks and cover their heads in case of nuclear war. My grandchildren don't have to do that and won't have the bad dreams children had once, in decades past. There are still threats. But the long, drawn-out dread is over.

A year ago tonight, I spoke to you at a moment of high peril. American forces had just unleashed Operation Desert Storm. And after 40 days in the desert skies and 4 days on the ground, the men and women of America's Armed Forces and our allies accomplished the goals that I declared and that you endorsed: We liberated Kuwait. Soon after, the Arab world and Israel sat down to talk seriously and comprehensively about peace, an historic first. And soon after that, at Christmas, the last American hostages came home. Our policies were vindicated.

Much good can come from the prudent use of power. And much good can come of this: A world once divided into two armed camps now recognizes one sole and preeminent power, the United States of America. And they regard this with no dread. For the world trusts us with power, and the world is right. They trust us to be fair and restrained. They trust us to be on the side of decency. They trust us to do what's right.

I use those words advisedly. A few days after the war began, I received a telegram from Joanne Speicher, the wife of the first pilot killed in the Gulf, Lieutenant Commander Scott Speicher. Even in her grief, she wanted me to know that some day when her children were old enough, she would tell them "that their father went away to war because it was the right thing to do." And she said it all: It was the right thing to do.

And we did it together. There were honest differences right here in this Chamber. But when the war began, you put partisanship aside, and we supported our troops. This is still a time for pride, but this is no time to boast. For problems face us, and we must stand together once again and solve them and not let our country down.

Two years ago, I began planning cuts in military spending that reflected the changes of the new era. But now, this year, with imperial communism gone, that process can be accelerated. Tonight I can tell you of dramatic changes in our strategic nuclear force. These are actions we are taking on our own because they are the right thing to do. After completing 20 planes for which we have begun procurement, we will shut down further production of the B - 2 bombers. We will cancel the small ICBM program. We will cease production of new warheads for our sea-based ballistic missiles. We will stop all new production of the Peacekeeper missile. And we will not purchase any more advanced cruise missiles.

This weekend I will meet at Camp David with Boris Yeltsin of the Russian Federation. I've informed President Yeltsin that if the Commonwealth, the former Soviet Union, will eliminate all land-based multiple-warhead ballistic missiles, I will do the following: We will eliminate all Peacekeeper missiles. We will reduce the number of warheads on Minuteman missiles to one and reduce the number of warheads on our sea-based missiles by about one-third. And we will convert a substantial portion of our strategic bombers to primarily conventional use. President Yeltsin's early response has been very positive, and I expect our talks at Camp David to be fruitful.

I want you to know that for half a century, American Presidents have longed to make such decisions and say such words. But even in the midst of celebration, we must keep caution as a friend. For the world is still a dangerous place. Only the dead have seen the end of conflict. And though yesterday's challenges are behind us, tomorrow's are being born.

The Secretary of Defense recommended these cuts after consultation with the Joint Chiefs of Staff. And I make them with confidence. But do not misunderstand me. The reductions I have approved will save us an additional $50 billion over the next 5 years. By 1997, we will have cut defense by 30 percent since I took office. These cuts are deep, and you must know my resolve: This deep, and no deeper. To do less would be insensible to progress, but to do more would be ignorant of history. We must not go back to the days of "the hollow army." We cannot repeat the mistakes made twice in this century when armistice was followed by recklessness and defense was purged as if the world were permanently safe.

I remind you this evening that I have asked for your support in funding a program to protect our country from limited nuclear missile attack. We must have this protection because too many people in too many countries have access to nuclear arms. And I urge you again to pass the Strategic Defense Initiative, SDI.

There are those who say that now we can turn away from the world, that we have no special role, no special place. But we are the United States of America, the leader of the West that has become the leader of the world. And as long as I am President, I will continue to lead in support of freedom everywhere, not out of arrogance, not out of altruism, but for the safety and security of our children. This is a fact: Strength in the pursuit of peace is no vice; isolationism in the pursuit of security is no virtue.

And now to our troubles at home. They're not all economic; the primary problem is our economy. There are some good signs. Inflation, that thief, is down. And interest rates are down. But unemployment is too high, some industries are in trouble, and growth is not what it should be. Let me tell you right from the start and right from the heart, I know we're in hard times. But I know something else: This will not stand.

In this Chamber, in this Chamber we can bring the same courage and sense of common purpose to the economy that we brought to Desert Storm. And we can defeat hard times together. I believe you'll help. One reason is that you're patriots, and you want the best for your country. And I believe that in your hearts you want to put partisanship aside and get the job done because it's the right thing to do.

The power of America rests in a stirring but simple idea, that people will do great things if only you set them free. Well, we're going to set the economy free. For if this age of miracles and wonders has taught us anything, it's that if we can change the world we can change America. We must encourage investment. We must make it easier for people to invest money and create new products, new industries, and new jobs. We must clear away the obstacles to growth: high taxes, high regulation, redtape, and yes, wasteful Government spending.

None of this will happen with a snap of the fingers, but it will happen. And the test of a plan isn't whether it's called new or dazzling. The American people aren't impressed by gimmicks; they're smarter on this score than all of us in this room. The only test of a plan is: Is it sound, and will it work?

We must have a short-term plan to address our immediate needs and heat up the economy. And then we need a longer term plan to keep combustion going and to guarantee our place in the world economy. There are certain things that a President can do without Congress, and I'm going to do them.

I have, this evening, asked major Cabinet departments and Federal agencies to institute a 90-day moratorium on any new Federal regulations that could hinder growth. In those 90 days, major departments and agencies will carry out a top-to-bottom review of all regulations, old and new, to stop the ones that will hurt growth and speed up those that will help growth.

Further, for the untold number of hard-working, responsible American workers and business men and women who've been forced to go without needed bank loans, the banking credit crunch must end. I won't neglect my responsibility for sound regulations that serve the public good, but regulatory overkill must be stopped. And I've instructed our Government regulators to stop it.

I have directed Cabinet departments and Federal agencies to speed up progrowth expenditures as quickly as possible. This should put an extra $10 billion into the economy in the next 6 months. And our new transportation bill provides more than $150 billion for construction and maintenance projects that are vital to our growth and well-being. And that means jobs building roads, jobs building bridges, and jobs building railways.

And I have, this evening, directed the Secretary of the Treasury to change the Federal tax withholding tables. With this change, millions of Americans from whom the Government withholds more than necessary can now choose to have the Government withhold less from their paychecks. Something tells me a number of taxpayers may take us up on this one. This initiative could return about $25 billion back into our economy over the next 12 months, money people can use to help pay for clothing, college, or to get a new car. Finally, working with the Federal Reserve, we will continue to support monetary policy that keeps both interest rates and inflation down.

Now, these are the things I can do. And now, Members of Congress, let me tell you what you can do for your country. You must pass the other elements of my plan to meet our economic needs. Everyone knows that investment spurs recovery. I am proposing this evening a change in the alternative minimum tax and the creation of a new 15-percent investment tax allowance. This will encourage businesses to accelerate investment and bring people back to work.

Real estate has led our economy out of almost all the tough times we've ever had. Once building starts, carpenters and plumbers work; people buy homes and take out mortgages. My plan would modify the passive loss rule for active real estate developers. And it would make it easier for pension plans to purchase real estate. For those Americans who dream of buying a first home but who can't quite afford it, my plan would allow first-time homebuyers to withdraw savings from IRA's without penalty and provide a $5,000 tax credit for the first purchase of that home.

And finally, my immediate plan calls on Congress to give crucial help to people who own a home, to everyone who has a business or a farm or a single investment. This time, at this hour, I cannot take no for an answer. You must cut the capital gains tax on the people of our country. Never has an issue been more demagogued by its opponents. But the demagogs are wrong. They are wrong, and they know it. Sixty percent of the people who benefit from lower capital gains have incomes under $50,000. A cut in the capital gains tax increases jobs and helps just about everyone in our country. And so, I'm asking you to cut the capital gains tax to a maximum of 15.4 percent.

I'll tell you, those of you who say, "Oh, no, someone who's comfortable may benefit from that," you kind of remind me of the old definition of the Puritan who couldn't sleep at night, worrying that somehow, someone somewhere was out having a good time. [Laughter] The opponents of this measure and those who have authored various so-called soak-the-rich bills that are floating around this Chamber should be reminded of something: When they aim at the big guy, they usually hit the little guy. And maybe it's time that stopped.

This, then, is my short-term plan. Your part, Members of Congress, requires enactment of these commonsense proposals that will have a strong effect on the economy without breaking the budget agreement and without raising tax rates.

While my plan is being passed and kicking in, we've got to care for those in trouble today. I have provided for up to $4.4 billion in my budget to extend Federal unemployment benefits. And I ask for congressional action right away. And I thank the committee. [Applause] Well, at last.

Let's be frank. Let's be frank. Let me level with you. I know and you know that my plan is unveiled in a political season. [Laughter] I know and you know that everything I propose will be viewed by some in merely partisan terms. But I ask you to know what is in my heart. And my aim is to increase our Nation's good. I'm doing what I think is right, and I am proposing what I know will help.

I pride myself that I'm a prudent man, and I believe that patience is a virtue. But I understand that politics is, for some, a game and that sometimes the game is to stop all progress and then decry the lack of improvement. [Laughter] But let me tell you: Far more important than my political future and far more important than yours is the well-being of our country. Members of this Chamber are practical people, and I know you won't resent some practical advice. When people put their party's fortunes, whatever the party, whatever side of this aisle, before the public good, they court defeat not only for their country but for themselves. And they will certainly deserve it.

I submit my plan tomorrow, and I'm asking you to pass it by March 20th. And I ask the American people to let you know they want this action by March 20th. From the day after that, if it must be, the battle is joined. And you know, when principle is at stake I relish a good, fair fight.

I said my plan has two parts, and it does. And it's the second part that is the heart of the matter. For it's not enough to get an immediate burst. We need long-term improvement in our economic position. We all know that the key to our economic future is to ensure that America continues as an economic leader of the world. We have that in our power. Here, then, is my long-term plan to guarantee our future.

First, trade: We will work to break down the walls that stop world trade. We will work to open markets everywhere. And in our major trade negotiations, I will continue pushing to eliminate tariffs and subsidies that damage America's farmers and workers. And we'll get more good American jobs within our own hemisphere through the North American free trade agreement and through the Enterprise for the Americas Initiative.

But changes are here, and more are coming. The workplace of the future will demand more highly skilled workers than ever, more people who are computer-literate, highly educated. We must be the world's leader in education. And we must revolutionize America's schools. My America 2000 strategy will help us reach that goal. My plan will give parents more choice, give teachers more flexibility, and help communities create new American schools. Thirty States across the Nation have established America 2000 programs. Hundreds of cities and towns have joined in. Now Congress must join this great movement: Pass my proposals for new American schools.

That was my second long-term proposal, and here's my third: We must make commonsense investments that will help us compete, long-term, in the marketplace. We must encourage research and development. My plan is to make the R&D tax credit permanent and to provide record levels of support, over $76 billion this year alone, for people who will explore the promise of emerging technologies.

Fourth, we must do something about crime and drugs. It is time for a major, renewed investment in fighting violent street crime. It saps our strength and hurts our faith in our society and in our future together. Surely a tired woman on her way to work at 6 in the morning on a subway deserves the right to get there safely. And surely it's true that everyone who changes his or her life because of crime, from those afraid to go out at night to those afraid to walk in the parks they pay for, surely these people have been denied a basic civil right. It is time to restore it. Congress, pass my comprehensive crime bill. It is tough on criminals and supportive of police, and it has been languishing in these hallowed halls for years now. Pass it. Help your country.

Fifth, I ask you tonight to fund our HOPE housing proposal and to pass my enterprise zone legislation which will get businesses into the inner city. We must empower the poor with the pride that comes from owning a home, getting a job, becoming a part of things. My plan would encourage real estate construction by extending tax incentives for mortgage revenue bonds and low-income housing. And I ask tonight for record expenditures for the program that helps children born into want move into excellence, Head Start.

Step six, we must reform our health care system. For this, too, bears on whether or not we can compete in the world. American health costs have been exploding. This year America will spend over $800 billion on health, and that is expected to grow to 1.6 trillion by the end of the decade. We simply cannot afford this. The cost of health care shows up not only in your family budget but in the price of everything we buy and everything we sell. When health coverage for a fellow on an assembly line costs thousands of dollars, the cost goes into the products he makes, and you pay the bill.

We must make a choice. Now, some pretend we can have it both ways. They call it "play or pay," but that expensive approach is unstable. It will mean higher taxes, fewer jobs, and eventually a system under complete Government control.

Really, there are only two options. And we can move toward a nationalized system, a system which will restrict patient choice in picking a doctor and force the Government to ration services arbitrarily. And what we'll get is patients in long lines, indifferent service, and a huge new tax burden. Or we can reform our own private health care system, which still gives us, for all its flaws, the best quality health care in the world.

Well, let's build on our strengths. My plan provides insurance security for all Americans while preserving and increasing the idea of choice. We make basic health insurance affordable for all low-income people not now covered, and we do it by providing a health insurance tax credit of up to $3,750 for each low-income family. And the middle class gets help, too. And by reforming the health insurance market, my plan assures that Americans will have access to basic health insurance even if they change jobs or develop serious health problems. We must bring costs under control, preserve quality, preserve choice, and reduce the people's nagging daily worry about health insurance. My plan, the details of which I'll announce very shortly, does just that.

Seventh, we must get the Federal deficit under control. We now have, in law, enforceable spending caps and a requirement that we pay for the programs we create. There are those in Congress who would ease that discipline now. But I cannot let them do it, and I won't.

My plan would freeze all domestic discretionary budget authority, which means no more next year than this year. I will not tamper with Social Security, but I would put real caps on the growth of uncontrolled spending. And I would also freeze Federal domestic Government employment. And with the help of Congress, my plan will get rid of 246 programs that don't deserve Federal funding. Some of them have noble titles, but none of them is indispensable. We can get rid of each and every one of them.

You know, it's time we rediscovered a home truth the American people have never forgotten: This Government is too big and spends too much. And I call upon Congress to adopt a measure that will help put an end to the annual ritual of filling the budget with pork barrel appropriations. Every year, the press has a field day making fun of outrageous examples: a Lawrence Welk museum, research grants for Belgian endive. We all know how these things get into the budget, and maybe you need someone to help you say no. I know how to say it, and I know what I need to make it stick. Give me the same thing 43 Governors have, the line-item veto, and let me help you control spending.

We must put an end to unfinanced Federal Government mandates. These are the requirements Congress puts on our cities, counties, and States without supplying the money. If Congress passes a mandate, it should be forced to pay for it and balance the cost with savings elsewhere. After all, a mandate just increases someone else's burden, and that means higher taxes at the State and local level.

Step eight, Congress should enact the bold reform proposals that are still awaiting congressional action: bank reform, civil justice reform, tort reform, and my national energy strategy.

And finally, we must strengthen the family because it is the family that has the greatest bearing on our future. When Barbara holds an AIDS baby in her arms and reads to children, she's saying to every person in this country: Family matters.

And I am announcing tonight a new Commission on America's Urban Families. I've asked Missouri's Governor John Ashcroft to be Chairman, former Dallas Mayor Annette Strauss to be Cochair. You know, I had mayors, the leading mayors from the League of Cities, in the other day at the White House, and they told me something striking. They said that every one of them, Republican or Democrat, agreed on one thing, that the major cause of the problems of the cities is the dissolution of the family. They asked for this Commission, and they were right to ask because it's time to determine what we can do to keep families together, strong and sound.

There's one thing we can do right away: Ease the burden of rearing a child. I ask you tonight to raise the personal exemption by $500 per child for every family. For a family with four kids, that's an increase of $2,000. This is a good start in the right direction, and it's what we can afford.

It's time to allow families to deduct the interest they pay on student loans. I am asking you to do just that. And I'm asking you to allow people to use money from their IRA's to pay medical and education expenses, all without penalties.

And I'm asking for more. Ask American parents what they dislike about how things are going in our country, and chances are good that pretty soon they'll get to welfare. Americans are the most generous people on Earth. But we have to go back to the insight of Franklin Roosevelt who, when he spoke of what became the welfare program, warned that it must not become "a narcotic" and a "subtle destroyer" of the spirit. Welfare was never meant to be a lifestyle. It was never meant to be a habit. It was never supposed to be passed from generation to generation like a legacy. It's time to replace the assumptions of the welfare state and help reform the welfare system.

States throughout the country are beginning to operate with new assumptions that when able-bodied people receive Government assistance, they have responsibilities to the taxpayer: A responsibility to seek work, education, or job training; a responsibility to get their lives in order; a responsibility to hold their families together and refrain from having children out of wedlock; and a responsibility to obey the law. We are going to help this movement. Often, State reform requires waiving certain Federal regulations. I will act to make that process easier and quicker for every State that asks for our help.

I want to add, as we make these changes, we work together to improve this system, that our intention is not scapegoating or finger-pointing. If you read the papers and watch TV, you know there's been a rise these days in a certain kind of ugliness: racist comments, anti-Semitism, an increased sense of division. Really, this is not us. This is not who we are. And this is not acceptable.

And so, you have my plan for America. And I'm asking for big things, but I believe in my heart you'll do what's right.

You know, it's kind of an American tradition to show a certain skepticism toward our democratic institutions. I myself have sometimes thought the aging process could be delayed if it had to make its way through Congress. [Laughter] You will deliberate, and you will discuss, and that is fine. But, my friends, the people cannot wait. They need help now.

There's a mood among us. People are worried. There's been talk of decline. Someone even said our workers are lazy and uninspired. And I thought: Really? You go tell Neil Armstrong standing on the moon. Tell the men and women who put him there. Tell the American farmer who feeds his country and the world. Tell the men and women of Desert Storm.

Moods come and go, but greatness endures. Ours does. And maybe for a moment it's good to remember what, in the dailiness of our lives, we forget: We are still and ever the freest nation on Earth, the kindest nation on Earth, the strongest nation on Earth. And we have always risen to the occasion. And we are going to lift this Nation out of hard times inch by inch and day by day, and those who would stop us had better step aside. Because I look at hard times, and I make this vow: This will not stand.

And so, we move on together, a rising nation, the once and future miracle that is still, this night, the hope of the world. Thank you. God bless you, and God bless our beloved country. Thank you very, very much.

• The Rodney King verdict precipated riots in Los Angeles...
  

Tonight I want to talk to you about violence in our cities and justice for our citizens, two big issues that have collided on the streets of Los Angeles. First, an update on where matters stand in Los Angeles.

Fifteen minutes ago I talked to California's Governor Pete Wilson and Los Angeles Mayor Tom Bradley. They told me that last night was better than the night before; today, calmer than yesterday. But there were still incidents of random terror and lawlessness this afternoon.

In the wake of the first night's violence, I spoke directly to both Governor Wilson and Mayor Bradley to assess the situation and to offer assistance. There are two very different issues at hand. One is the urgent need to restore order. What followed Wednesday's jury verdict in the Rodney King case was a tragic series of events for the city of Los Angeles: Nearly 4,000 fires, staggering property damage, hundreds of injuries, and the senseless deaths of over 30 people.

To restore order right now, there are 3,000 National Guardsmen on duty in the city of Los Angeles. Another 2,200 stand ready to provide immediate support. To supplement this effort I've taken several additional actions. First, this morning I've ordered the Justice Department to dispatch 1,000 Federal riot-trained law enforcement officials to help restore order in Los Angeles beginning tonight. These officials include FBI SWAT teams, special riot control units of the U.S. Marshals Service, the Border Patrol, and other Federal law enforcement agencies. Second, another 1,000 Federal law enforcement officials are on standby alert, should they be needed. Third, early today I directed 3,000 members of the 7th Infantry and 1,500 marines to stand by at El Toro Air Station, California. Tonight, at the request of the Governor and the Mayor, I have committed these troops to help restore order. I'm also federalizing the National Guard, and I'm instructing General Colin Powell to place all those troops under a central command.

What we saw last night and the night before in Los Angeles is not about civil rights. It's not about the great cause of equality that all Americans must uphold. It's not a message of protest. It's been the brutality of a mob, pure and simple. And let me assure you: I will use whatever force is necessary to restore order. What is going on in L.A. must and will stop. As your President I guarantee you this violence will end.

Now let's talk about the beating of Rodney King, because beyond the urgent need to restore order is the second issue, the question of justice: Whether Rodney King's Federal civil rights were violated. What you saw and what I saw on the TV video was revolting. I felt anger. I felt pain. I thought: How can I explain this to my grandchildren?

Civil rights leaders and just plain citizens fearful of and sometimes victimized by police brutality were deeply hurt. And I know good and decent policemen who were equally appalled.

I spoke this morning to many leaders of the civil rights community. And they saw the video, as we all did. For 14 months they waited patiently, hopefully. They waited for the system to work. And when the verdict came in, they felt betrayed. Viewed from outside the trial, it was hard to understand how the verdict could possibly square with the video. Those civil rights leaders with whom I met were stunned. And so was I, and so was Barbara, and so were my kids.

But the verdict Wednesday was not the end of the process. The Department of Justice had started its own investigation immediately after the Rodney King incident and was monitoring the State investigation and trial. And so let me tell you what actions we are taking on the Federal level to ensure that justice is served.

Within one hour of the verdict, I directed the Justice Department to move into high gear on its own independent criminal investigation into the case. And next, on Thursday, five Federal prosecutors were on their way to Los Angeles. Our Justice Department has consistently demonstrated its ability to investigate fully a matter like this.

Since 1988, the Justice Department has successfully prosecuted over 100 law enforcement officials for excessive violence. I am confident that in this case, the Department of Justice will act as it should. Federal grand jury action is underway today in Los Angeles. Subpoenas are being issued. Evidence is being reviewed. The Federal effort in this case will be expeditious, and it will be fair. It will not be driven by mob violence but by respect for due process and the rule of law.

We owe it to all Americans who put their faith in the law to see that justice is served. But as we move forward on this or any other case, we must remember the fundamental tenet of our legal system. Every American, whether accused or accuser, is entitled to protection of his or her rights.

In this highly controversial court case, a verdict was handed down by a California jury. To Americans of all races who were shocked by the verdict, let me say this: You must understand that our system of justice provides for the peaceful, orderly means of addressing this frustration. We must respect the process of law whether or not we agree with the outcome. There's a difference between frustration with the law and direct assaults upon our legal system.

In a civilized society, there can be no excuse, no excuse for the murder, arson, theft, and vandalism that have terrorized the law-abiding citizens of Los Angeles. Mayor Bradley, just a few minutes ago, mentioned to me his particular concern, among others, regarding the safety of the Korean community. My heart goes out to them and all others who have suffered losses.

The wanton destruction of life and property is not a legitimate expression of outrage with injustice. It is itself injustice. And no rationalization, no matter how heartfelt, no matter how eloquent, can make it otherwise.

Television has become a medium that often brings us together. But its vivid display of Rodney King's beating shocked us. The America it has shown us on our screens these last 48 hours has appalled us. None of this is what we wish to think of as American. It's as if we were looking in a mirror that distorted our better selves and turned us ugly. We cannot let that happen. We cannot do that to ourselves.

We've seen images in the last 48 hours that we will never forget. Some were horrifying almost beyond belief. But there were other acts, small but significant acts in all this ugliness that give us hope. I'm one who respects our police. They keep the peace. They face danger every day. They help kids. They don't make a lot of money, but they care about their communities and their country. Thousands of police officers and firefighters are risking their lives right now on the streets of L.A., and they deserve our support. Then there are the people who have spent each night not in the streets but in the churches of Los Angeles, praying that man's gentler instincts be revealed in the hearts of people driven by hate. And finally, there were the citizens who showed great personal responsibility, who ignored the mob, who at great personal danger helped the victims of violence, regardless of race.

Among the many stories I've seen and heard about these past few days, one sticks in my mind, the story of one savagely beaten white truck driver, alive tonight because four strangers, four black strangers, came to his aid. Two were men who had been watching television and saw the beating as it was happening, and came out into the street to help; another was a woman on her way home from work; and the fourth, a young man whose name we may never know. The injured driver was able to get behind the wheel of his truck and tried to drive away. But his eyes were swollen shut. The woman asked him if he could see. He answered, "No." She said, "Well, then I will be your eyes." Together, those four people braved the mob and drove that truck driver to the hospital. He's alive today only because they stepped in to help.

It is for every one of them that we must rebuild the community of Los Angeles, for these four people and the others like them who in the midst of this nightmare acted with simple human decency.

We must understand that no one in Los Angeles or any other city has rendered a verdict on America. If we are to remain the most vibrant and hopeful Nation on Earth we must allow our diversity to bring us together, not drive us apart. This must be the rallying cry of good and decent people.

For their sake, for all our sakes, we must build a future where, in every city across this country, empty rage gives way to hope, where poverty and despair give way to opportunity. After peace is restored to Los Angeles, we must then turn again to the underlying causes of such tragic events. We must keep on working to create a climate of understanding and tolerance, a climate that refuses to accept racism, bigotry, anti-Semitism, and hate of any kind, anytime, anywhere.

Tonight, I ask all Americans to lend their hearts, their voices, and their prayers to the healing of hatred. As President, I took an oath to preserve, protect, and defend the Constitution, an oath that requires every President to establish justice and ensure domestic tranquility. That duty is foremost in my mind tonight.

Let me say to the people saddened by the spectacle of the past few days, to the good people of Los Angeles, caught at the center of this senseless suffering: The violence will end. Justice will be served. Hope will return.

Thank you, and may God bless the United States of America.

• With polls suggesting that votes for Ross Perot could send the election into the House of Representatives, the Vice President labeled the Texan as a "temperamental tycoon who has contempt for the Constitution..."