[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[February 29, 1992]
[Pages 352-355]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks to the Associated General Contractors of America in Dallas, 
Texas

February 29, 1992
    Thank you all. Pleased be seated. And Marvin, thank you, sir, for 
your warm welcome, for your wonderful support, for being an outstanding 
leader of the AGC. And may I salute--although you are not officially in 
the lame duck status yet--[laughter]--several more months to go--may I 
also salute Robins Jackson over here, who will be your successor and I'm 
sure will do a good job as well. I am delighted to be here with Kirk 
Fordice, the new and outstanding Governor of the State of Mississippi, 
one of your own. He's served this outfit well as president. And let me 
also single out a man I've known for years, the Mayor of your host city, 
my old friend, a former Member of Congress, Steve Bartlett. What a job 
he is doing for this great city. Steve, where the heck is he? Right over 
here. And I'm proud to stand with you today, the men and women who work 
in construction in this great country. You are one gutsy group of 
Americans, and I believe the whole country knows it.
    We mark an anniversary this week. One year ago, American and allied 
forces liberated Kuwait. In only 100 hours of ground combat, those 
troops achieved a magnificent victory. When we drew our line in the 
sand, I faced resistance from two corners. On one side was the latest 
wave of out-of-touch liberals who argued that we shouldn't fight for 
what was right. I also had to contend with another group of skeptics, 
folks who harbor a strange nostalgia for the 1930's, when America 
isolated itself from the world security challenges and from trade 
opportunities.
    But standing steadfast with me were millions of commonsense 
Americans like yourselves, and right where you've been in good times and 
in bad. People in our construction trades have never, never, ever been 
confused about our national symbol. You know it's not the ostrich; it's 
the eagle. And I am grateful for your support. We agree on the big 
issues that shape our world and on the values, the values close to home. 
And I'm talking about jobs, about family, about peace, for ourselves and 
for, as Marvin said, for our kids.
    Today, our top concern is getting the economy moving and growing 
again. And I couldn't have a better set of partners in this project than 
the Associated General Contractors of America. We've been together in 
earlier battles for this cause, and together we've won. And we've stuck 
to principles, and we've helped make this country strong. I'll always 
remember where you stood back in 1982, when times were as tough as they 
get. The economy then was still in a rather deep recession, reeling from 
the malaise days of the late seventies. Unemployment, you remember, in 
'82 was 10.7 percent. President Reagan and I knew that the only

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effective remedy wasn't more Government control; it was greater freedom. 
And you shared our long view of things, and you stood with us solidly.
    In 1990, when the business cycle turned down, you stood with your 
President once again and helped me light a fire under the do-nothing 
Congress of the United States. And because you flexed your muscle, we 
got one good piece of economic legislation in 1991, one specially good 
piece: the $150 billion Surface Transportation Act. It took longer than 
we wanted, but we got the job done.
    As you know, I've speeded up the flow of funds from this measure to 
modernize our bridges and highways. All across America, we're helping 
companies put people back to work. In fiscal '92 alone, Federal highway 
funding will support more than 900,000 jobs.
    And I have good news for the American economy as we mark the first 
anniversary of the liberation of Kuwait. As President, I've placed a top 
priority on helping Kuwait recover from the ravages of that terrible 
war, from the environmental disaster, from so many things. And as Kuwait 
rebuilds, I'm pleased to report that American companies have won more 
than half of all the reconstruction contracts. In '91 and '92 alone, 
those contracts will pump an additional $5 billion into the American 
economy, and merchandise exports alone will create 60,000 new American 
jobs. Now, this good news proves that our long-range program to create 
jobs by pushing exports is working. In the past 5 years, exports have 
generated almost half of America's growth. And we're going to keep 
putting Americans to work by opening new markets for American goods 
around the world.
    There's a lot more that we've got to do to build on our 
achievements. And in my State of the Union Message, I sent a 
comprehensive economic action plan to the Congress, and I set a 
deadline: March 20th. You and I know the major cause of the drag on our 
economy. It is that Government is too big and that it spends too much.
    And that's why I was sorry to see what the Democrats in the House of 
Representatives did just this past Thursday. To play election-year 
politics as usual--let me step back. I urged the Congress in the State 
of the Union to put politics aside and to pass an incentive program, 
telling them I'll be glad to engage with them politically after the 20th 
of March and they should lay politics aside until then. I asked them to 
put politics aside as usual, but playing politics, they passed up a 
chance to stimulate the economy.
    The plan they passed will raise the deficit, will raise taxes, will 
ruin the fledgling economic recovery, and worst of all, it will not 
create jobs. So let me right here, before the AGC, end any suspense: If 
that plan reaches my desk, I will veto it fast and send it back to the 
United States Congress.
    On March 20th, I want to sign into law reforms to get our economy 
moving. I really think that's good. And we need to get business growing 
again right now, upgrading plant and equipment again, hiring workers 
again. We need incentives, incentives like an investment tax allowance. 
Consider how that would help Williams Brothers Construction Company, 
just for example. If my 15-percent investment tax allowance is passed by 
Congress, it will mean an additional $300,000 in working capital this 
year for this equipment-intensive contractor.
    And yes, it is clearly time for Congress to cut that tax on job 
creation and investment. It is time to cut the tax on capital gains.
    To get housing back on its feet, I've put forward what I think most 
people across this country see as commonsense proposals to get people 
buying and building homes. For instance--we talk about family--but for 
instance, I'm asking for a $5,000 tax credit for first-time homebuyers. 
The Democrats in the House offer these young people nothing. But with 
our plan, young people almost able to buy that first home could do it 
with the extra $5,000 in their pocket.
    Just the other day I met with your industry partners, the National 
Association of Home Builders. Their economists predict that this year 
alone, this year alone, my plan would mean an extra 200,000 homes built 
and 415,000 new jobs in the homebuilding side of the construction 
business. Since you clear the tracts and pave the new streets and build 
the shopping and office

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centers that go with new neighborhoods, I know that growth in housing 
would be welcome on your side of the business, too.
    Your powers of persuasion are legendary. You've got a lot of 
respect, power in the corridors of power. And so, I'm counting on you to 
get my message to the Congress: Pass this incentive plan, and meet the 
deadline. Tell your Members of Congress, March 20th is when the rubber 
meets the road. And March 20th is when the Congress has to make a 
choice: Put America back to work, or go with the old tax-and-spend 
politics as usual. I believe March 20th is the time to do something good 
for the American people. Please get that message to Congress.
    While Congress chafes under that deadline, and while Senate 
Democrats now float tax plans that would end up raising tax rates for 
people who make $35,000 a year, I have taken actions on my own to get 
the economy moving. For example, we've begun an unprecedented, top-to-
bottom reform of business regulation.
    During the weeks since the State of the Union Address, we've changed 
key banking rules to ease the credit crunch. For healthy banks, we've 
changed overly strict definitions of bank capital, creating more access 
to capital. We've also cut redtape to make it easier for small 
businesses to get capital from the securities markets. And we've 
accomplished important reforms to the burdensome payroll tax system.
    But that's not all. On January 28th, I instituted a 90-day freeze on 
new Federal regulations that could hinder economic growth. And we're 
also reviewing all existing rules, and we will propose legislation 
wherever needed to reform burdensome regulation. And let me tell you, we 
will take every action we can to stop regulations that hurt growth and 
speed up rules that will help get this economy growing. We are 
overregulated, and I need your help with Congress on that point as well.
    Marvin and others have been in touch. And I know that the 
construction industry is hard-hit by Federal regulation. That's why 
we've acted to allow Federal contractors more flexibility in the use of 
less-skilled workers. We recently began implementing an important rule 
that allows such cost-saving measures. Not only will the rule make it 
easier for construction firms to do business, it will also save 
taxpayers an estimated $600 million a year.
    Many times there's a noble idea behind a regulation, but many times 
regulators go to unreasonable extremes. My message to Congress, and yes, 
to the regulators in the executive branch is this: Overregulation is 
just that, it's over. And let me say this: If there are exceptions--and 
some regulators have not gotten the word--tell your leadership, tell 
Marvin here, let us know. And I will do my level best to clear out any 
unfair obstacles to growth.
    I'm also fighting hard against another epidemic that's stricken 
America, against the epidemic of lawsuits, 18 million last year alone. I 
think you got it but lest you didn't, 18 million last year alone. The 
costs and delays in our legal system are a hidden tax on every 
construction operator, on every consumer, on every business transaction 
in this country.
    And it's not just the cost of doing business that's being affected. 
Frivolous lawsuits are tearing apart our social fabric in this country. 
Some of you probably coach Little League. You're aware, as well as I am, 
that all around this country fathers are quitting as Little League 
coaches because they're afraid of liability lawsuits. That's a sign that 
something's wrong. Or when people stop volunteering in their communities 
because they fear some ambulance-chasing lawyer, something is terribly 
wrong. And I've even heard that communities have had to cancel Fourth of 
July fireworks displays because they can't get liability insurance.
    Well, I am determined to change that. And I've sent a reform bill to 
Congress to halt needless lawsuits and to give Americans easier 
alternatives for settling disputes. I see that you in the AGC have your 
own industry initiative to achieve more partnership and fewer lawsuits 
among contractors and subcontractors. And I applaud you for doing this. 
The real answer to solving problems is to be more concerned with helping 
each other than suing each other. And I want to fight for the reforms 
that will back up that principle. So, let's work together. Let's keep 
working together to break up

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America's love affair with the lawsuit.
    Since the first settlers came to our shores, Americans have been a 
restless people. We're forever on the move building, inventing, 
expanding, renewing. And I share that spirit, and I've never been more 
restless than now about the state of affairs in Washington. The rest of 
the world looks to us as a beacon--don't listen to the naysayers on this 
point--the rest of the world looks to us as a beacon, as the strongest, 
bravest, freest, most generous nation on Earth. But in our Nation's 
Capital, the tired old liberal leadership of Congress is mired in 
cynicism and defeatism.
    For 3 years, I've wrestled with a Congress too often paralyzed, 
tangled up by a 30,000-person bureaucracy and a $1.5 billion budget, a 
Congress too caught up in protecting their special perks and privileges 
to perform the public's business. No wonder term limits for Congress are 
picking up support. And I agree. If we have term limits on the 
President, term limits for Congress is a good idea, too. And let's work 
for it.
    The old ways have to change. People want change. Each one of you is 
a proven leader in a trade that wrote the book about getting top-quality 
projects done, and done within deadlines. So, I'm counting on you to 
make Congress learn how to meet a deadline.
    My opponents have cornered the market for slick rhetoric. But when 
it comes to delivering results, I have a plan that will stimulate 
economic growth. And they don't.
    I need your help. Help me get a message to Capitol Hill. Tell them 
what hard-hat America thinks about Congress and its politics-as-usual. 
Tell them the construction trades support this plan to get our economy 
moving. And tell them I'm dead serious about that deadline and that 
you're dead serious about the deadline. And tell them my plan sets down 
a solid foundation for lifting this country to new heights.
    This convention hall holds very special memories for me. It was here 
in 1984 that Ronald Reagan and I accepted our party's nomination for a 
second term as President and Vice President of the United States. And I 
was very proud to serve with Ronald Reagan, and he's a man of vision and 
courage and achievement. And remember the recession of 1982? It was 
tough then. Remember the criticism? Remember the noise on Capitol Hill? 
Unemployment got up to 10.7 percent. But we stayed tough, kept the 
Congress from doing crazy things, renewed our commitment to keep this 
country moving forward for the long haul. We pulled out of the doldrums, 
and we kept moving America forward because we had your support and the 
support of millions like you who share our values.
    And yes, times are tough now, but we will stick to principle. And we 
will again come through these sluggish economic times. This is no time 
for despair. This is time for determination. And this is time for 
action.
    The American people are getting a little tired, frankly, of the 
gloom and doom they hear every single night on television. And I'm glad 
my frank wife, Barbara, is not here or she'd tell you what she thought 
about that. [Laughter]
    Our side will prevail again. With your mind and your muscle, we'll 
prove the pessimists wrong again. People know we're in a battle for the 
future--about jobs; it's about family; it's about world peace; it's 
about the kind of legacy we're going to leave the young ones here today. 
And we will renew this country, and I guarantee you we will keep it 
strong. And we will build a better America.
    Thank you. Good luck to each and every one of you. And may God bless 
the United States of America. Thank you very, very much.

                    Note: The President spoke at 9:44 a.m. at the Dallas 
                        Convention Center. In his remarks, he referred 
                        to Marvin Black, president of the Associated 
                        General Contractors of America.