[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.