Week Ending Friday, May 5, 1989 Remarks at the Bicentennial Thank you, Senator, and Chief Justice Burger, Secretary Lujan, Ambassador Pickering, Archbishop Iakovos, Senators Moynihan and Lautenberg, and Mayor Koch, fellow citizens of the United States. Two centuries ago, standing here, a man took an oath before a new nation and the eyes of God, an oath that I, like 40 before me, have since had the privilege to take. Everyone here today can still feel the pulse of history, the charge and power of that great moment in the genesis of this nation. Here the first Congress was in session, beginning a tradition of representative government that has endured for 200 years. Here the representatives of 13 colonies struggled to find balance, order, and unity between them. And here our first President issued a solemn address. One who was there wrote: "This great man was agitated and embarrassed more than ever he was by the leveled cannon or pointed musket. He trembled and, several times, could scarce make out to read." Well, as Representative Boggs pointed out, who wouldn't have felt some trepidation, undertaking a task which has never been tried in the world's history? And on that day, Washington spoke of his conflict of emotions. He admitted his anxieties and deficiencies, as honest men will. But then, as his first official act, he turned to God, fervently, for strength. For he knew that the advancement of America, while it might rely on its Presidents, would surely depend on Providence. How unlikely it must have seemed then that we might become United States. How uncertain that a republic could be hewn out of the wilderness of competing interests. How awesome the prospect must have seemed to the man charged with guiding the new Republic, made possible by his leadership in battle. But George Washington defined and shaped this office. It was Washington's vision, his balance of power and restraint as he watched over the Constitutional Convention in 1787, that gave the delegates enough confidence to vest powers in a Chief Executive unparalleled in any freely elected government, before or since. It was Washington's vision, his balance, his integrity that made the Presidency possible. The Constitution was, and remains, a majestic document. But it was a blueprint, an outline for democratic government, in need of a master builder to ensure its foundations were strong. Based on that document, Washington created a living, functioning government. He brought together men of genius, a team of giants, with strong and competing views. He harnessed and directed their energies. And he established a precedent for 40 Presidents to follow. For all of the turmoil and transformation of the last 200 years, there is a great constancy to this office and this Republic. So much of the vision of that first great President is reflected in the paths pursued by modern Presidents. Today we reaffirm ethics, honor, and strength in government. Two centuries ago, in his first Inaugural Address, Washington spoke of a government "exemplified by all the attributes which can win the affections of its citizens and command the respect of the world." Today, we say that leaders are not elected to quarrel but to govern. On that spring day in 1789, Washington pledged that "no party animosities will misdirect the comprehensive and equal eye which ought to watch over this great assemblance of communities and interests." Today, we seek a new engagement in the lives of others, believing that success is not measured by the sum of our possessions, our positions, or our professions, but by the good we do for others. Two hundred years ago today, Washington said there exists "in the economy and course of nature, an indissoluble union between virtue and happiness, between duty and advantage." And so, today we speak of values. At his inauguration, Washington said that "the foundations of our national policy will be laid in the pure and immutable principles of private morality." And over the last 200 years, we've moved from the revolution of democracy to the evolution of peace and prosperity. But so much remains constant; so much endures: our faith in freedom-for individuals, freedom to choose, for nations, selfdetermination and democracy; our belief in fairness equal standards, equal opportunity, the chance for each of us to achieve, on our own merits, to the very limit of our ambitions and potential; our enduring strength-abroad, a strength our allies can count on and our adversaries must respect, and at home, a sense of confidence, of purpose, in carrying forward our nation's work. My starting point has been a respect for American institutions-for Congress, and I salute the members of the House and Senate with us today; for the judiciary, and through Chief Justice Burger, I pay my respects to the judiciary; for the executive branch, represented here today by Secretary Lujan and Ambassador Pickering; and for government at all levels-and a firm belief in maintaining the powers of the Presidency. The Presidency, then as now, in oath and in office, derives from the strength and the will of the people. George Washington, residing at Mount Vernon, felt himself summoned by his country to serve his country, not to reign, not to rule, but to serve. It was the noblest of impulses because democracy brought a new definition of nobility. And it means that a complete life, whether in the 18th or 20th century, must involve service to others. Today, just as Washington heard the voice of his country calling him to public service, a new generation must heed that summons. More must hear that call. And today we stand; free Americans, citizens in an experiment of freedom that has brought sustained and unprecedented progress and blessings in abundance. As we dedicate a museum of American constitutional government, let us together rededicate ourselves to the principles to which Washington gave voice 200 years ago. Let our motivation derive from the strength and character of our forefathers, from the blood of those who have died for freedom, and from the promise of the future that posterity deserves. Let us commit ourselves to the renewal of strong, united, representative government in these United States of America. God bless you, and may God forever bless this great nation of ours. Thank you all very, very much. Note: The President spoke at 12:53 p.m. outside of Federal Hall. In his remarks, he referred to Senator Alfonse M. D'Amato; Warren Burger, former Chief Justice of the Supreme Court; Thomas R. Pickering, Ambassador to the United Nations; Archbishop Demetrios A. Iakovos of the Greek Orthodox Archdiocese of North and South America; Senators Daniel P. Moynihan and Frank Lautenberg; and Edward Koch, Mayor of New York City. Remarks at the Annual Meeting of the United States Chamber of Commerce May 1, 1989 Thank you, ladies and gentlemen. I want to thank Bill Kanaga for those kind words and commend you on the fine job that you've done as Chairman. And I also want to congratulate the Chamber's incoming Chairman, John Clendenin, and of course say hello to the Chamber's long-time President, media star-[laughter]-household word around DC, Dick Lesher. What a job he does for the Chamber. And I also want to thank the Chamber for providing me a chance to deliver a May Day message American-style. On May Day, I always think about the celebration in the Soviet Union-all those red banners, the big military parade. Even the Economic Planning Ministry had a unit in the parade: 200 economists marching along yelling, "May Day, May Day." [Laughter] Today that is beginning to change. Even the Socialist world is beginning to see that socialism isn't just another economic system: It's the death of economics. And there is a new breeze blowing. Nations the world over are coming to realize and recognize that free enterprise is the wave of the future, and that's a promising forecast for prosperity and for world peace. In the United States-let me just say in that regard, though, whenever in the world there is economic reform, the United States should be hoping that that reform succeeds. Economic reform, with its emphasis on incentive and market economics, leads to more freedom. You know, I made clear to Mr. Gorbachev up there in New York— Governors Island, when we met-that we wanted to see perestroika succeed in the Soviet Union. And likewise, we want to see success for the economic reforms in China. Incentive, economic reforms, market economies, private ownership are indeed replacing Socialist dogma in many countries, large and small. And that is an exciting trend, and in my view, it will continue. In the United States, the single most significant economic indicator of this decade is up today. We've enjoyed 77 full months of the longest peacetime economic expansion in American history. Without a doubt, this long-running economic expansion has been good for American business and for the American worker. In the past 77 monthsand the Chamber has been very helpful getting this message out-we've added nearly 20 million new jobs. And more Americans have moved up on the pay scale. Since 1982 the number of jobs paying less than $5 an hour is down 25 percent, while jobs paying $10 or more an hour have increased by 95 percent. Unemployment is at its lowest point in the past 15 years. During the economic expansion, America's industrial output is up 33 percent, overall growth up 26 percent. For those with an eye on the international competition, that's more than double Europe's industrial output growth. And the expansion has been just as good to the average American family. Per capita personal income is up 19 percent, and that's take-home, after tax pay, adjusted for inflation. Real median family income has reached a new high, and that's quite an economic success story. Our challenge now is to keep it going. We can, and we will. We've all heard the nay-sayers. I think there are a few out there whose predictions of economic disaster are now in their 78th straight month. [Laugh ter] And the nay-sayers are wrong. But why? What they've underestimated is the resilience, the remarkable responsiveness of the free enterprise system. And you can focus on government so long that you forget that it's the private sector that's home to the innovation and the economic creativity that powers this expansion. I've been a small businessman, starting out with an idea and then working with others and building it into a successful business. And I know the risks and the rewards and the payoff in pride when you succeed. Entrepreneurs know this simple truth: Nothing wagered, nothing won. And that's why I want a government that prompts entrepreneurs to take risks, not a government that forces them to take refuge. That doesn't mean that government's only job is simply to stand back and step out of the way. There's plenty for the Government to do to make sure commerce is free and fair and to maintain a climate where free enter prise can take place and prosper. And today the Federal Government's number one economic priority is dealing with the deficit. We've made a good start. The budget agreement Congress and my administration concluded 2 weeks ago can keep the Federal deficit below the GrammRudman target. And we have'nt sacrificed our social or national security responsibilities in the progress. The budget level we've agreed on will allow us to discharge the critical duties of government. We'll be able to provide for our national security, meet the needs of the disadvantaged, and fund high-priority programs. Our agreement is a first, important step. It sends a signal to the American people and to our trading partners: We're serious about getting that deficit down. And the deficit is coming down not only in straight dollar terms but as a percentage of our annual gross national product. You know, by the end of this fiscal year, we will have cut the deficit in half, from 6.3 percent of gross national product in 1983 to an estimated 3.1 percent in 1989. I urge the two Houses of Congress to pass the bipartisan budget resolution so we can keep the deficit coming on down. One word more about the budget agreement for 1990. We've agreed to $5.3 billion in new revenues as part of the deal. And let me say a word about that $5.3 billion. I mean to live by what I've said: No new taxes. And let me tell you what my favorite source of new revenue is-three guesses for this crowd. We don't have to raise taxes. We have to release the energies of free enterprise. In a growing economy, tax revenues will take care of themselves. In fiscal 1990 alone, thanks to the expanding economic activity, the Treasury will take in more than $80 billion in increased revenues not through higher taxes but under the existing tax structure-$80 billion more in 1 year. So, let's not be hunting for ways to wring another dollar in taxes out of our economy. Let's concentrate on creating conditions for continued growth. And that's why I've called on Congress to restore the capital gains differential. I am absolutely convinced that in 1990 alone this step would bring an extra $4.8 billion into the Treasury, and that doesn't count increased economic activity that is spurred by a lower tax rate. That $4.8 billion is the lion's share of the $5.3 billion we need in the way of new revenues under our budget agreement. Let's take a look at what our competitors are doing. Canada's maximum capital gains rate is about half of the U.S. rate. And how about Japan's rate? For entrepreneurs who built their businesses from scratch, a scant 1 percent. West Germany exempts all longterm capital gains on securities from any tax whatever. And the newly industrialized economies of the Pacific Rim-Singapore, Hong Kong, South Korea-have no capital gains tax at all. Among our competitors, those low rates contribute to low capital costs. Cutting our own capital gains rate would encourage productive investment in addition to generating the new revenues that we need to meet our deficit reduction agreement. I think the case for a capital gains cut is a strong one, but there are several other economic issues that I want to discuss here today. First, a pressing problem with important consequences for our long-term fiscal health, and that is the S&L situation-savings and loan. This administration recognized the immediate need to take action to stabilize the S&L system, and less than 3 weeks after taking office, we proposed a comprehensive S&L reform plan, one designed to stop the dollar drain and deal with the insolvent thrifts and restore confidence in the S&L system. The Senate passed an S&L package with a resounding majority. I think it was 91-8. I urge the House to move quickly to give us the tools we need to reform the savings and loan system by passing my bill quickly with its central provisions intact. Now, I have a second message for the Congress as it debates an increase in the minimuni wage. I've indicated my support for increasing the wage over 3 years to $4.25 an hour. I also want to establish a 6month training wage for new workers at the current $3.35 rate and expand the exemption for minimum wage requirements for all small businesses with annual sales under a half a million dollars. It's time for those who want a higher wage to move out beyond the rhetoric and take a look at the consequences. We all know the studies that show that each 10-percent increase in the minimum wage will cost America between 100,000 and 200,000 jobs, and they're jobs for those who need them the most. What workers happens when minimum-wage open that pay envelope expecting a fatter paycheck and find a pink slip instead? An irresponsible increase in the minimum wage will cost jobs, as employers cut back to compensate for increased costs-$4.25 is as far as I can go. It is my first and final offer. And I repeat that here today. We must guard against conferring benefits by government mandate and leaving employers to cope with the costs. I share your concerns about legislative efforts to mandate medical and parental leave. I also believe that choice in child care is best made by parents and not by government. And I know, because I've talked to Dick Lesher and others, that the Chamber supports the concept of choice. There are some child-care initiatives up on Capitol Hillwell-intentioned, I would readily concedewell-intentioned initiatives that would increase government intervention and crowd out parental choice. You know, as I look at government, I feel an obligation to look at every piece of legislation to see that it strengthens rather than weakens the family unit in this country. Now, cost is yet another issue. We're determined to hold the line on government spending, so it is important that money allocated for child-care assistance goes for child-care assistance. Under the ABC bill, for example, much of the money would be used to set up another Federal bureaucracy instead of getting financial help directly to parents. The child-care tax credit initiatives that I've proposed do preserve choice, letting parents decide whether to place their child in the care of a relative or in a church-run center or in a public day care facility or in their own home. Let's let parents decide what's right for themselves. And finally, I'll close with a brief comment on an issue I know is vital to those of you here today, vital, in fact, to all Americans in our evolving economy; and I'm talking about international trade. The global economy is a fact of life. It is no longer possible to draw a sharp line between domestic and international markets. This administration is committed to securing an open and fair world trading system because fair trade provides opportunities for America's competitiveness to come to the fore. We have the ingenuity to be preeminent. We have the drive to succeed. Entrepreneurs like you are our ace in the hole. Our challenge, then, is to make the most of this competitive edge. And that's why we will work vigorously to break down barriers abroad while keeping markets open here at home. If any country, including the United States, is fooled into thinking that a closed market can be a prosperous one, they're wrong. Closed markets mean closed doors to opportunity, and that means less prosperity. The Chamber of Commerce has always stood for economic freedom, and I know you share my view that there is no surer route to prosperity and progress than the system of free enterprise. The message of the past 77 months is clear: We can keep the economy strong, sustain the longest peacetime expansion in American history, and ensure America a prosperous and productive future provided that government policies preserve the greatest possible freedom for American enterprise to innovate, to create, and to compete. I am pledged to those goals. Thank you. God bless you all. And God bless the United States of America. Thank you all very much. Note: The President spoke at 10:20 a.m. at DAR Constitution Hall. Remarks at the Swearing-In Ceremony for Susan S. Engeleiter as Administrator of the Small Business Administration May 1, 1989 The President. Well, welcome, Susan and family and Members of the United States Congress; delighted you all are here. You know, I'm glad that you all could come as Susan takes the oath as Administrator of SBA. This is a very special occasion for Susan and for her husband and for her kids here, and it is for me as well. I have a wonderful place in my heart for small business people, having been in that category myself. And I think, because I once was, I do understand the challenges and the opportunities that face the smaller firms in this country. As President, I certainly understand, as do all of us, the vital importance of small enterprises to our nation's economic growth and to the employment statistics—so many jobs held by small business. Many of you are aware of the truly impressive contribution that small business makes to our overall economy: half of our workers employed by small business. During the last decade, small business has produced two out of every three new jobs. So, it's the SBA's mission to help the smaller firms to continue and expand this record. The SBA does play a vital role in our effort to keep America's economic engine strong. And so, I am pleased that this agency will be led by such a strong, articulate advocate of small businesses. During her 14-year-I should have let this front row talk about this-but her 14-year career in the Wisconsin legislature, Susan has been a pioneer: the youngest woman in the country elected to a State legislature when she took office at 22, first Republican woman to serve in the Wisconsin senate, first woman of any party to hold a major elected leadership post in |