[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[February 19, 1992]
[Pages 278-281]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks to Community and Business Leaders in Knoxville, Tennessee

February 19, 1992
    Thank you for such a warm welcome back. And thank you, Senator 
Baker, my esteemed friend, for that overly generous introduction.
    May I extend my greetings to another longtime friend, Mayor Victor 
Ashe, who is doing a great job here in this community, and to thank all 
of the other Knoxville community leaders here today. And I'm not sure 
that that description includes the marvelous music we've had, but my 
thanks to those from the Vols over here who provided some upbeat sounds. 
And I also want to single out with great pride two Cabinet members who 
are with me here today: First, our Secretary of Energy, Jim Watkins, 
doing a superb job, with us over here, Jim; and then, of course, one 
that you all know so well, Lamar Alexander, our Secretary of Education.
    You may know that Lamar, as part of his mission to promote lifetime 
learning in keeping with one of our education goals, one is never too 
old to learn, convinced me to learn how to use a computer. It's really 
paid off. I can now make typographical errors twice as fast as I used to 
on the typewriter.
    And may I also single out three Members of the Tennessee 
congressional delegation, Jimmy Duncan, Jimmy Quillen, and Don 
Sundquist, all three doing a fantastic job for us in Washington. And a 
very heartfelt thanks, quick thanks, to the people at the Knoxville 
Chamber of Commerce who helped pull this magnificent event together, 
Larry Martin and Jack Hammontree and Susan Shay. And I'm pleased that 
John Waters of the TVA could join us here today.
    I feel very much at home, and I'm delighted to be here. Tennessee is 
a State with a special significance for me. After all, it's the 
Volunteer State. And during Operation Desert Storm you proved it all 
over again. So let me take this opportunity, thinking back a year just 
almost from this minute, when the ground war started, let me take this 
opportunity to thank the 6,700 Tennessee reservists and National Guard 
who were called up for Desert Storm and who served this State and served 
this country with such distinction.
    It's a pleasure to be here in Knoxville, for what you've done here 
is a model for the Nation. This city combines in one place the 
enthusiasm of cutting-edge research, the resources of Government, and 
then the energy, the dynamic energy of the private enterprise. You are 
pointing our country toward the next American century.
    We stand today at what I think most people would agree is a pivot 
point in history, at the end of one era and the beginning of another. As 
imperial communism died and as the clouds of the cold war part, America 
stands alone, the undisputed leader of the world. The old era demanded 
great sacrifices of our country; we met them, each and every one of 
them. But the new era opens up to us limitless possibilities, fresh 
challenges of the kind that have always brought out the best in America.

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    For the short term, of course, our challenge is to fire up the 
economy. I've put together a two-part plan, starting with a short-term 
package, seven commonsense steps to spur investment and create jobs. 
With inflation down and interest rates lower than they've been in 20 
years, our plan offers incentives to business to buy equipment, upgrade 
their plants, and start hiring again. It offers a real boost to the 
housing market, often at the forefront of economic recovery, with a 
$5,000 tax credit for first-time homebuyers.
    I have asked the Congress to pass this plan by March 20th. You may 
have heard about other tax plans floated up on Capitol Hill. The House 
Democrats are offering 25 cents a day, literally, in income tax relief 
in exchange for cuts in Medicare, student loans, farm payments, and true 
to form, a large permanent tax increase. That plan will deepen the 
deficit by $30 billion and cost jobs as well. That is a lose-lose 
proposition if ever there was one. Here in Knoxville, let me again 
remind the United States Congress: We are a month and a day away from 
the deadline. Help your country. Put politics aside for just those 31 
days that it takes. No more games. Pass our plan and get this economy 
moving again all across the country.
    But then we must look forward, beyond the short-term into the next 
century. Believe it or not, looking forward has become a more radical 
notion than it sounds. For some quarters, we hear the dim voice of 
defeatism, that tin trumpet sounding retreat. We're told that our future 
lies in turning away from the world, pulling down the shades, and hoping 
that the rest of the world just goes away. Well, don't be fooled by the 
tough talk and the patriotic bluster. Protectionism comes from fear, 
fear that American workers can't compete, fear that American ingenuity 
is spent, fear that we must turn away from the world because we can no 
longer lead the world. That's not the future that I see for the United 
States of America. The America of the future must embrace challenges, 
not cut and run. It must put back the frontiers of knowledge and 
technology and use our great strengths of individual initiative and 
determination. If we do, the America of the future will compete, and it 
will win.
    This century has taught us many lessons. But above them all stands 
an overarching truth: If America is to succeed economically at home, we 
must lead economically abroad. Now, our leadership ensures markets for 
American products and jobs for American workers. And it gives us room to 
spread our wings and show the world what we can do. Let us never forget: 
Our national symbol is the eagle; it is not the ostrich.
    Each generation of Americans makes an implicit compact with the 
generations that follow. We pledge that their opportunities will be 
greater than ours. Our generation will make good on that pledge but only 
if we continue to lead the world.
    So for the last 3 years, my administration has been laying the 
foundation for America's continued leadership. We've approached this 
pivot point in history, this moment of unparalleled opportunity, with a 
positive strategy to build on the enduring strengths of the American 
people, our capacity for hard work, our cutting-edge technology, our 
willingness to take risks. To continue as the world's economic leader we 
must excel in two vital areas: education and technology. That's where 
our future lies. Our strategy must target both, and it does.
    American science is the best in the world. We've got to make sure 
that the same is true of American science education. Tomorrow's 
marketplace will demand workers highly skilled in math and science. 
Tennesseans know the importance of that, and I thank you for lending me 
your Governor and U.T. president, Lamar Alexander. He's on the cutting 
edge. He's out front in trying to revolutionize the schools in this 
country. Through our America 2000 education strategy, we're getting that 
education message to the rest of the country.
    Working with the Nation's Governors, Secretary Alexander and I set 
six ambitious education goals, done on a bipartisan basis, wasn't 
Republican, Democrat, liberal, conservative. The Governors came together 
under Lamar's leadership, and we came up with these goals. And one of 
the most important ones was this: By the year 2000, American students 
will be first in the world in math and science. The budget that I've

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recently submitted to Congress calls for more than $2 billion in math 
and science education programs. That's more than a 120-percent increase 
over the past 3 years for programs at the precollege level.
    Just 2 years ago, when I was last here in your wonderful city, I 
mentioned that our Energy Secretary, Jim Watkins, had joined up with 
U.T. and Oak Ridge to start a new math and science academy for America's 
teachers. Once again, Tennessee set the pace for our country. To better 
train teachers, we plan to double the number of math and science 
instructors receiving federally assisted in-depth instruction in their 
field. This year, almost half the Nation's precollege math and science 
teachers will receive some federally funded training.
    In the old era now ending, many of our best scientists helped 
America win the cold war. The new era will free up those priceless 
talents to transform the arsenal of democracy into the engine of 
economic growth. That is the mission, that is the challenge of the 
nineties.
    It will take the right kind of investments, the kind we've been 
making for years, for 3 years. And these have been tough decisions. This 
year, I've asked for a freeze on discretionary domestic spending--got to 
do that for the overall budget--which means that any increases have to 
be the result of hard thinking about priorities. Well, we've done the 
hard thinking, and we've made a fundamental decision. Our future 
economic competitiveness demands that we invest today in one of our 
greatest strengths, research and development. And I've asked for a 
record investment in R&D, $76 billion next year alone.
    Now, let me give you just a few examples of what this means. This 
year we're investing $803 million to assist private enterprise in the 
development of a high-performance computing system 1,000 times more 
powerful than today's computer. And such a system will forecast droughts 
and hurricanes, design better aircraft, unlock the riddle of the genome.
    We're investing more than $1 billion for research in energy 
technologies to improve energy efficiency, nuclear fusion, clean coal 
technologies, and alternatives to petroleum.
    We're investing almost $1.5 billion in transportation R&D. To 
relieve our overburdened highways and airports, we're stimulating 
research in new transportation technologies such as intelligent vehicle-
highway systems and high-speed rail. Some of you unintelligent drivers 
beware; you may be replaced.
    We're increasing investment in biotechnology research for a total of 
more than $4 billion, so that we continue to lead the world in 
conquering disease and relieving world hunger. Now, this research can 
pay dividends undreamed of just a few years ago, not only in health care 
but in manufacturing, energy, and in environmental protection. One 
recent development: microorganisms that emit light signals when they 
encounter pollution in the environment.
    And there's much more, substantial increases for the superconducting 
super collider, agricultural research, and the development of advanced 
materials. We will double the budget for the National Science 
Foundation, home to some of our most fantastic scientific and 
technological advances.
    And for a generation, when Americans have looked to the future, they 
have looked to the stars. Well, we're intensifying our efforts to 
explore the Moon and the planets, a quest that not only lifts our 
spirits but brings tangible benefits in new technology and economic 
growth.
    These incredible technologies can't just sit in the science books; 
they need to work for America. And so, we're moving them out of the 
laboratory and into the marketplace. We've been busy sweeping away the 
obstacles that block the transfer of technology from the Government to 
private enterprise. And just over, I think it was 2 years ago, I signed 
a bill that allows private industry to take competitive advantage of 
Government research.
    There are 675 public-private agreements active today. In fact, I had 
a great morning. I just witnessed another one out at Oak Ridge this 
morning. The Coors Structural Ceramics Company and Oak Ridge will be 
perfecting a new ceramic material that's tougher than steel. In fact, 
Coors has decided to locate in this area to be near the scientists and 
facilities at Oak Ridge. And in doing that, Coors joins more than 20 
other

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companies that have moved to your area for the same reason. And that's 
the bottom line of these agreements: jobs for Knoxville, jobs for 
America.
    Our national technology initiative brings Government officials 
together with private businesses to let them know what Government can 
offer in new technology. This initiative will take advantage of the 
irreplaceable resources at our national labs, including Oak Ridge, to 
foster technological excellence.
    But make no mistake, Government has no business setting what's known 
as an industrial policy, where you pick winners and losers and protect 
favorite industries from market forces, no business doing that. The 
lightning pace of today's economy is too quick. It's too vital for the 
deadening hand of the bureaucrat. We will continue to lead only if we 
give the marketplace full play. A competitive market cuts fat, it 
encourages efficiency, and it rewards innovation.
    That's why for 3 years we've tried to encourage private venture 
capital. You know, America taxes capital gains at a rate higher than any 
of our world competitors. And yet the same pessimists who complain we 
can't compete still stand in the way of lower capital gains taxes. So, 
let's put an end to that self-defeating nonsense. Congress must lower 
that capital gains tax to create jobs, and the time to lower it is right 
now.
    Finally, we've asked Congress to make the R&E tax credit a permanent 
part of the Tax Code. For private companies, this credit reduces the 
cost of research and development by as much as 20 percent. American 
businesses must be able to plan for the future knowing those savings are 
secure.
    Each one of these measures has world-shaping implications. There is 
a strategy for a competitive, vigorous America, and it springs from a 
vision of what our future should be. The great blessing of our country 
is that we Americans have the power to create our own future. We have 
that extraordinary opportunity, once again, to guarantee that when our 
children attend school, they receive the best education in the world and 
that when they leave school, they enter a growing economy with good jobs 
of their choosing. Let us never forget, the future we plan for today 
belongs to them.
    I am fortunate, very, very fortunate to be President of the United 
States at an exciting time in our country's marvelous history. The world 
still looks to this great country for leadership. And we have so much to 
be grateful for, and I am proud to serve as your President.
    May God bless you, and God bless the United States of America. Thank 
you very, very much.

                    Note: The President spoke at 12:06 p.m. at the 
                        Knoxville Auditorium-Coliseum. In his remarks, 
                        he referred to former Senator Howard Baker; Jack 
                        Hammontree, president, Larry Martin, chairman, 
                        and Susan Shay, member of the board of 
                        directors, Knoxville Chamber of Commerce; and 
                        John B. Waters, member of the Board of 
                        Directors, Tennessee Valley Authority.