    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [May 23, 1991]
    [Pages 549-552]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks to the National Retail Federation
    May 23, 1991

        Good morning. Thank you very much. Please be seated. It's great to
    have you all here at the White House. It's good to see Bill Howell
    behind me here, and Tracy Mullin. And of course, Boyden Gray you heard
    from--one of our top people in the White House, my friend of long
    standing, our general counsel who follows the issues that I'm sure
    you're interested in very, very closely. I'm pleased to see Jack, Jack
    Schultz here, and delighted to be with you.
        The federation, your federation, has supported our administration,
    as I think you all know, on a wide range of topics. And I wanted at the
    outset of these remarks just to express my appreciation for that and
    obviously ask, while I have this much horsepower here, for your
    continued support. But let me just talk about an issue today that is of
    importance to every person in this room, I'd say, transcending
    importance. And the subject is economic growth. It affects everybody in
    the country, including and especially perhaps the 16 million workers
    that you represent.
        While there's some disagreement about the length and the depth of
    the recession, we've got to commit ourselves to policies that are going
    to promote growth and opportunity that will carry us right into the next
    century.
        Incidentally, on the recession, I'm feeling more confident about the
    fact that we're--if not have bottomed out, are bottoming out. And I
    think there's an awful lot of economic forecasters that would agree with
    what I`ve just said.
        Our growth package can do this. It can guarantee prosperity into the
    future and it can put us on a long-term path to market-

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    driven economic growth. Our growth package begins--you might say,
    began--with trying to control Federal spending. Our budget agreement
    last year, over which I took a great deal of flak for understandable
    reasons, finally put the Federal Government on a pay-as-you-go basis,
    and it cut the growth of Federal debt by nearly $500 billion over the
    next 5 years. And that extra capital, that extra capital, not being
    money spent by the Government, means more investment; it means more
    purchasing power.
        The budget caps, I can tell you, are working. There's now some real,
    meaningful discipline in the Congress against the temptation to spend,
    spend, and spend. There's still an inclination on the part of some to do
    that, but you don't see as many spending bills coming down the pike at
    us as you would have without the spending caps that are effectively put
    on by the budget agreement.
        To increase the private savings and investment, we've also
    proposed--and we're going to fight for them--tax-free family savings
    accounts and penalty-free withdrawals from these IRA's for first-time
    home buyers.
        Our financial services reform bill--and I'm strongly committed to
    that, and I hope you'll help us work this through the Congress--will
    help modernize our financial system, change around the overlays of
    regulation, ensure the future strength of the financial system, and help
    finally to alleviate the tight credit conditions.
        We proposed cutting the tax on long-term capital gains. And I'm
    absolutely convinced that that would spur job-creating investment in our
    economy. It would cut the Tax Code's bias in favor of debt. It would
    expand incentives to invest and give a leg up to those that perhaps need
    it the most but that generate the most jobs, and I'm talking about small
    businesses, the small entrepreneur. And it would keep the American dream
    alive--a guy could start something and see it succeed--it would
    facilitate that.
        We're investing in R&D, up $8.4 billion to $76 billion. That's
    inclusive. That includes all research and development. That's still,
    even in Washington, a lot of money--$76 billion, the highest level
    ever--which will fuel even greater growth in the future.
        You, the retailers, America's retailers, know better than most that
    Government regulation shouldn't impose unnecessary burdens. We have a
    regulatory responsibility, but we must guard against unnecessary
    regulatory burdens on the working men and women. That's why the Vice
    President's Council on Competitiveness--and he's doing a superb job in
    this--will continue to review these regulations that massively come down
    the pike at us to ensure that regulatory benefits outweigh burdens by
    the widest margin possible.
        And to the degree we were able over the past 10 years to cut back on
    regulatory excess, I would give great credit to Boyden Gray, who's
    sitting here with me. He took the lead on that when I chaired that
    Regulatory Relief Council for then President Reagan.
        These proposals that I've just clicked off are only part of our
    action plan for a strong and healthy economy. We're looking beyond our
    borders for new opportunities in international markets. Over the past
    four decades, and especially in recent years, trade has kept our economy
    going strong. If there's any group in the country that understands
    that--anyone--I think it would be your group.
        Merchandise exports have risen 73 percent in the last 4 years, more
    than twice the rate of import growth. Export business accounts for an
    increasing share of our economic growth. We've seen unparalleled growth
    in world trade and huge economic benefits for the United States.
        Our trade strategy is not all that complicated. It's simple: The
    United States will continue to lead the world toward a system of free
    trade and open markets because it means economic growth; it means jobs
    for all Americans. And as the competition sorts out, it means that the
    American taxpayer or the American consumer has a better shot at paying
    less for goods.
        As you know, we've asked Congress to extend the Fast Track
    procedures. These hold the key to good faith relations between the
    administration and Congress in trade matters and between our negotiators
    and their counterparts in these trade nego-

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    tiations.
        We're expecting a final vote on Fast Track probably this afternoon,
    but anyone who takes it for granted that the vote is in the bag is
    wrong. We're going right down to the wire, and every vote counts. And
    so, when you sally forth from here, head directly to Capitol Hill--
    [laughter]--and gracefully lean on those who have not shown the wisdom
    on this matter that you've shown. We need your support, really,
    seriously, in these final hours and we can't win without the help of
    concerned Americans.
        We've got to win this for a lot of reasons, for the domestic
    consumer, for our robust growth in trade. And we also need it for strong
    foreign policy reasons. You don't have the time to hear me on how
    enthusiastic I am about the changes taking place in Mexico, what that
    means for democracy, what Fast Track for Mexico means for the countries
    south of our border. Yesterday--or the day before yesterday it was
    Lacalle of Uruguay. Two weeks ago it was Carlos Andres Perez and Michael
    Manley--Perez of Venezuela and Manley heading the CARICOM [Caribbean
    Community] from Jamaica. Everyone of them saying, look, I don't benefit
    directly, but you must pass Fast Track negotiating authority. I can't
    tell you what a bad signal it would send to your friends and allies in
    fledgling democracies south of your border if you don't pass it.
        So, in addition to what it will do for the American economy and
    American consumer, I am convinced that it has serious and a broad-based
    foreign policy ramifications.
        The last thing I want to do is to stress that equal growth, equal
    economic growth--fair economic growth--and equal opportunity go hand-in-
    hand. I want to just clear the record here--it's not directly come under
    the heading of the Retail Federation, but I want to sign a civil rights
    bill this year. And I have sent a good, strong proposal that would
    battle discrimination in the workplace up to the Congress. And I don't
    hear any discussion of it when I read the newspapers. It's always about
    somebody else's bill that they want me to digest.
        Unfortunately, the bill that I sent up is being held hostage while
    Congress pushes a bill that is almost identical to the one that I felt
    that I had to veto last year. On Tuesday, we had an announcement of a
    Democratic compromise. But it was an announcement, no bill, no exact
    language. As far as our experts can tell--and some of this is highly
    technical--the changes that they're proposing are strictly cosmetic.
        I do not want to veto another bill with the name ``civil rights'' on
    it. I think our administration has a good record on civil rights. I take
    pride in the fact that I personally have had understanding and a good
    record on civil rights. But I am not going to sign a bill that will
    foster quotas, directly or indirectly. You can put language in as it did
    in the last year saying this is not a quota bill, and then you have
    provisions in there that would have forced employers to accept quotas or
    undertake highly expensive and damaging legal costs in defending a
    position.
        If the Congress is really serious--and I don't think it's the
    Congress as much as some of the groups outside--but if they are really
    serious and they want to take a step--maybe not as big a step as they'd
    like to see, but if they want to take a step against job discrimination
    in the workplace, a step that indeed does correct some of the decisions
    that many of us feel should be corrected from the Supreme Court, then I
    would ask that they pass my bill. It's a good bill. It's a fair bill.
    And it doesn't drive the small employer into a state of frenzy because
    of fearing mindless legislative action against him.
        Then if we can do this, we can move forward in a constructive and
    bipartisan fashion to address the other elements of my program for
    expanding choice and opportunity.
        So, these were the subjects I wanted to take up with you. I want to
    end, though, where I began. You know, the longer I am in this job, the
    more I am convinced that it is the outside forces, it's the people--and
    you represent them--the people that can make things happen. I am not
    jaundiced about government. I'm still optimistic. And I believe that we
    can make good things happen if we have the support of people like
    yourselves who are willing to take the

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    time to take your message, which in this instance happens to be our
    message, up to Capitol Hill. So, I really wanted to come over and thank
    not only your leaders but all of you for what you're doing. And I'm very
    grateful.
        Today it's Fast Track. Yesterday it was something else. And tomorrow
    I'll be knocking on your door for support on something else again. But
    we have worked together, and I'm very, very grateful for that. Thank you
    very much.

                        Note: The President spoke at 11 a.m. in Room 450 of
                            the Old Executive Office Building. In his
                            remarks, he referred to National Retail
                            Federation officials W.R. Howell, chairman,
                            Tracy Mullin, president of the government and
                            public affairs division, and John J. Schultz,
                            president of the retail services division and
                            executive director; C. Boyden Gray, Counsel to
                            the President; Vice President Dan Quayle,
                            Chairman of the Council on Competitiveness;
                            President Luis Alberto Lacalle of Uruguay;
                            President Carlos Andres Perez of Venezuela; and
                            Prime Minister Michael Manley of Jamaica.