    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [May 12, 1993]
    [Pages 638-644]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks at Cooper Union for the Advancement of Science and Art in New
    York City
    May 12, 1993

        The President. Thank you very much. It always seems to be a good
    thing for me when I'm introduced in New York by Governor Cuomo.
    [Laughter] I must confess to having mixed feelings as I sit on this
    revered stage with all these distinguished citizens. And President
    Iselin made his eloquent remarks and then your fine Mayor spoke so
    forcefully, and the brilliant chairman of the Senate Finance Committee
    brought us back to Woodrow Wilson. And then Governor Cuomo once again
    gave me a hard act to follow, and they all left the stage. I thought to
    myself, pray this is not a metaphor for the battle ahead.
        This is the second thing I have had in common with President Wilson.
    I received a fascinating letter the other day from Johnston and Murphy,
    the shoe manufacturers from Nashville, Tennessee. They have made shoes
    for every President going back to the 1850's, so they made a pair of
    shoes for President Lincoln. And they send you a little catalog, and you
    pick the shoes you want, and they send them to you with your name in
    them. It says ``Johnston and Murphy--every President served.'' And so I
    ordered these rather simple plain black shoes, and they wrote me this
    wonderful letter in which they said, ``We're from Nashville, Tennessee,
    and we know what's in your heart. So here's an extra pair of shoes.''
    And they sent me a box of blue suede shoes. [Laughter]
        And then in the letter they recounted the choices of all the
    previous Presidents. And they said that in one way my choice was not
    particularly innovative, that five other Presidents had chosen the same
    style I did, including Harry Truman, which made me very proud. But they
    said, ``You do have the biggest feet of any President since Woodrow
    Wilson.'' [Laughter] So you had two sets of big feet here from the
    Presidents.
        President Wilson said in an address that Senator Moynihan quoted:
    ``I have been dealing with young men most of my life''--he wasn't so
    gender-sensitive as he should have been--``and one of the things I have
    tried most to impress upon them is not to stay young too long, but to
    take themselves seriously.'' Now at one level I want us all to stay
    young forever, but I do think the time has come for us to take ourselves
    and our purposes more seriously. This celebrated institution and the
    community of scholars and activists it embraces is the result, as
    President Iselin said, of Peter Cooper's determination more than 130
    years ago to create an institution intellectually vigorous with free
    tuition, the first nondiscrimination policy in American history, and a
    genuine commitment to social justice. He believed you could do more than
    one thing at a time. [Laughter]
        Here Mr. Lincoln asked our country to confront the cost of the
    spread of slavery, to ask hard questions about the conditions that had
    plagued our Nation since its beginning. Remem-

    [[Page 639]]

    ber it was Thomas Jefferson, not Abraham Lincoln--Thomas Jefferson the
    slave owner--who said, ``I tremble when I think of slavery to consider
    that God is just.'' There were people who knew in their hearts the truth
    but had denied it a long time.
        Lincoln said that to continue to do that threatened to tear our
    country apart. He knew the Nation would be destroyed if slavery spread
    and that unless the country's drifting stopped, the very drift would
    carry within it the seeds of our destruction. And so, here at Cooper
    Union he asked those hard questions and gave strong answers. Soon after,
    he won the nomination of the fledgling Republican Party and went on to
    win the Presidency by only 39 percent of the popular vote, receiving
    virtually no votes south of the Mason-Dixon line. Soon after that, the
    war came, and Lincoln's fight for the Union grew into a determination to
    abolish slavery.
        Several days a week I walk alone into the room in the White House
    where Abraham Lincoln signed the Emancipation Proclamation and try to
    remember the purposes of the United States of America. The fight for the
    Union and the fight against slavery cost Abraham Lincoln his life, as
    well as the lives of hundreds of thousands of his fellow countrymen. But
    America prevailed in form and spirit. And America has endured in form
    and spirit because in times of crisis and challenge, leaders have asked
    the hard questions and given the strong answers. And the American people
    have rallied.
        Look at the condition of America today. How can we avoid asking
    those questions? To be sure, we are still the strongest Nation in the
    world politically, economically, and militarily. To be sure, more than
    anyone else in the world we have accommodated the incredible diversity
    of our land with remarkable harmony. When you look at what is happening,
    the heartbreak in the former Yugoslavia today, where there are three
    ethnic groups that genetically have no ethnic differences at all but
    call themselves ethnically different solely because of the accidents of
    religion and history, it is an incredible tribute that in this country,
    in this great city and across the country in Los Angeles and in all
    places in between, that we live together as well as we do with our
    diversity.
        But still we cannot avoid the hard questions. If we're so great, why
    are most middle class families working longer hours today than they were
    20 years ago for wages that in real terms are less than they were a
    decade ago? Why are one in 10 of our people so impoverished they're on
    food stamps? Why are over 8 million of us out of work if we're in the
    17th month of a recovery? Why are there over 35 million of us without
    health care and millions more Americans terrified of losing their health
    coverage, with 100,000 Americans a month losing their health insurance,
    and millions of others who can never change jobs under the current
    system because they or someone in their family has been sick and so they
    have a preexisting condition which makes them unemployable with health
    insurance elsewhere?
        Why? Why that half the people on welfare not get off of it as a
    safety net after just a few months? Why is there a whole class of new
    poor people, mostly young women and their little children, many of those
    children never born into an integrated family? Why? Why was--only 35
    years ago, only 35 years ago--there conditions even in New York City in
    which there were three police officers on the street for every violent
    crime, and today there are three crimes for every police officer?
        Why does the Government fail to deal with the problems that this age
    has brought to us and engaged the American people in dealing with them?
    Why have we seen the Government's debt grow from $1 trillion to $4
    trillion in the last 12 years, while we reduced our investment in the
    people of America and their promise and their ability to compete? Why in
    the world would we reduce all this defense spending, including jobs for
    engineers and scientists and factory workers, with no plan whatever to
    put that money back to work to create opportunities for them, cleaning
    up the environment or exploring the frontiers of technology here at home
    or helping us to compete with people all around the world?
        The American economy finds itself in the middle of a global
    marketplace, challenged on every hand by nations who have made wise
    investments in their people, their workers, and their technological
    edge. Yes, there is today a global recession which is making our problem
    more difficult. But if you take the long view, those who have made the
    investments in the eighties and those who are doing so now will be
    rewarded over the long run. For a decade or more, we have both expanded
    our debt and reduced our investment in areas key to our future.

    [[Page 640]]

        We also have in this country a crisis of belief and hope. When
    President Kennedy took office, younger than I was when I took office,
    over 70 percent of the American people fundamentally believed that their
    leaders would tell them the truth and that their system could succeed.
    Now it seems as if half the people just stand around waiting to be
    disappointed, waiting to be told what's wrong and who's failed and how
    the special interests once again have strangled the national interests
    and why they should go on about their business without believing things
    can be different. I believe that the nature of our challenge is this: We
    must both restore our economy and restore the confidence of our people
    in our democracy. And I do not believe we can do one without the other.
        This is a strange and, in a way, wondrous moment in our history when
    citizens everywhere desperately want things to change but still are wary
    of it and reluctant to place their faith in anyone's prescription. We
    must begin with the economy. We must change the way the Government works
    if we expect the economy to improve. And we must rebuild the confidence
    of the American people based on the three words which were the watch
    words of my campaign for President: more opportunity for all, more
    responsibility from all, and the clear understanding that we are a
    community and we're all in this together, going up or down together.
    Whether we like it or not, that is clearly the truth. And we must begin
    to act as if it were.
        How can we reduce the deficit? Let's start with the big problem of
    the debt. Well, the answer is not popular. To reduce the deficit you
    have to reverse what produced the deficit. What produced it? Tax cuts
    and spending increases. Doing what people like. The most popular thing
    in the world is for me to cut your tax and write you a check. And that
    was what was done by Government for the American people for 12 long
    years. I'll cut your tax and I'll write you a check--that's a good deal.
    It used to be known as a free lunch when I was a kid.
        We have to begin to reverse this process. And because Government has
    been at fault, first you should ask Government to change. So I have
    asked in Washington that we begin with significant spending cuts below
    the budget that was adopted last year to reduce the deficit and to free
    up resources for targeted investment in the future of our economy and of
    the young people here present in this hall.
        We should look at every program for possible savings, including ones
    that Democrats have favored for a long time. And there should be no tax
    increase, not a dollar, without the spending cuts. That is the meaning
    of the budget resolution that was passed a few weeks ago in record time.
    It contains the largest deficit reduction proposals in history, over
    $500 billion in deficit reduction over a 5-year period with more than
    200 very specific cuts in programs. Those were tough to make, but
    necessary in the face of a $4 trillion debt that will continue to grow
    until the deficit itself is reduced to zero.
        That deficit is robbing us of our ability to invest in our future.
    More and more of our money just goes to pay interest on the debt. If we
    don't change it, by the end of the decade over 20 cents on every dollar
    you pay in taxes will go just to service the debt. Now, that is also a
    redistribution of wealth away from middle class taxpayers to the upper
    income people who hold the debt, instead of to invest in the jobs and
    the education and the infrastructure of the future of New York and the
    rest of America.
        We made cuts in Medicare, a thing that is difficult to do. We asked
    upper income Social Security recipients to pay tax on more of their
    incomes, a thing that is difficult to do. In spite of the fact that I
    value public service greatly and I believe public employees too often
    have been used as whipping boys for the difficulties and frustrations of
    the moment, still I asked the public employees of the United States of
    America to have a pay freeze for a year and to keep their wage increases
    below inflation and cost of living allowances for each of the next 3
    years.
        I come from a rural State, heavily electrified by the Rural
    Electrification Agency, but I asked that the subsidies to the REA be
    reduced. I asked that certain programs that benefit cities but that
    don't have the accountability of the normal budgeting process also be
    reduced. All these were not easy. But it seems to me essential, if we're
    going to ask the American people to sacrifice, that the Government take
    the lead and show the way.
        We're also fighting, however, to do something no Government has done
    before, to both reduce the deficit and increase targeted investments in
    areas that are designed to secure the future of this country, in the
    ones Governor Cuomo mentioned: in Head Start; in the program to

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    get children off to a healthier start in life with immunizations and
    nutrition; in better programs for apprenticeship training for our work
    force; in opening the doors of college education to all Americans
    through reforming the student loan process and a program of national
    service; in new incentives for our industries to develop new technology.
    These are things which other countries do as a matter of course and take
    for granted and which lead to huge increases in productivity. The case
    for them should be plain in America once inessential spending has been
    cut.
        The cuts, however, must be credible. And credibility is difficult to
    come by in Washington today. They must be legally enforceable. They must
    be plain to the American people. After 12 years of rising deficits and
    Americans feeling deceived about the issue, I don't blame the people of
    this country for being distrustful about what they hear from Washington
    when it comes to bringing down this deficit. That is why I have decided
    today to propose that we establish a deficit reduction trust fund and
    put every penny of new taxes and the budget cuts proposed in my budget
    into the trust fund so the American people know that it has to go to
    deficit reduction.
        There are several members of the New York congressional delegation
    here today. I thank them all for being here, and I thank especially
    Congressman Schumer for his leadership on this issue. I thank Senator
    Moynihan for his support of this issue. Senator Moynihan said on the way
    up here that he thought we ought to do it to win a victory for the
    clarity of our determination to reduce the deficit. Senator Bradley had
    an op-ed piece in the paper today endorsing the idea. The time has come
    to prove that when we say we're going to do something with the people's
    money, we actually do it.
        Let me repeat what this means. We will create a trust fund in which
    every dollar that is raised will go to deficit reduction and in which
    all the net budget cuts which have been approved will do so also. This
    is very important. This seriousness, however, should not relieve us of
    our obligation to recognize that over the long run we must also bring
    down the investment deficit in this country. I am as dedicated to that
    as I ever have been. I know that long-term economic growth depends on
    high-quality and comprehensive education and training, converting the
    workers and the investments from defense that is being cut to new
    technologies which must be increased, establishing new and innovative
    partnerships with the private sector and, as I said earlier, opening the
    doors of college education to all Americans. But bringing the deficit
    down will give us the freedom to do that.
        This budget saves, as I said, about $500 billion. And the trust fund
    will ensure that we do just that. It will be a change in the way
    Washington does business. It has broad support. But I also want to
    emphasize that it will only confirm the direction on which we have
    embarked. The financial markets here in New York have already understood
    the seriousness of this administration. Look what's happened to long-
    term interest rates just since the election, just since the election:
    mortgage rates at a 20-year low, many other interest rates at record
    lows. All the analysts say that if this can continue a few more months
    in this period, we will see about $100 billion freed up for investment
    in America through people refinancing their home loans and business
    loans and taking out car loans and consumer loans at lower interest
    rates. This is a job stimulus program that is big and important. And
    bringing the deficit down so that the huge overhang of private and
    public debt of the 1980's can be refinanced is a great strategy to begin
    the economic renewal of America, and we must stick with it.
        More can be done. But to do more we have to actually rethink the
    whole way the Federal Government operates: How does it operate on its
    own terms? How does it relate to the States and the private sector? I
    asked the Congress to give me some more money for technology so I could
    run the White House with many fewer people than my predecessors had. I
    asked that we have a 14-percent across-the-board cut in the
    administrative costs of the Federal Government over the next few years:
    100,000 reduction in the payroll by attrition, over $9 billion in
    savings simply by administrative changes alone. But that is just the
    beginning.
        I have also asked Vice President Gore to head a task force which
    will reexamine every agency of the Federal Government, every program of
    the Federal Government, and the whole way it is organized. Every major
    company in America had to go through a wrenching reexamination process
    in the 1980's. The Federal Government had many of its Departments cut,
    but the way it operated continued to be largely unexamined.

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    It is time that we impose the same sort of reexamination process on the
    National Government. When we do it, we will find more savings, and more
    importantly, we will increase the quality of service to the American
    people.
        Finally, I want to compliment the House of Representatives last week
    on passing a bill with the mind-boggling title of ``enhanced
    rescission.'' But when you strip it away, what it amounts to is a
    modified line-item veto, which is enjoyed by most Governors and which
    will enable the President to strike out spending items that he believes
    are unnecessary but will give the Congress the freedom to put them back
    in after voting on them individually so, that the people can make their
    own judgment and so can the Members of Congress.
        These things will make the Federal Government more efficient and
    will set us on the path to long-term reform. We ought to also think
    about our partnership with the private sector and our partnership with
    State and local government. Mayor Dinkins mentioned it. I was gratified
    to see a couple of mentions in the press recently about the fact that
    our administration had tried to give cities more relief from unnecessary
    regulations and States more leeway in promoting various kinds of reform
    in health care. I just told Governor Cuomo that I was very excited about
    the health care reform package that he put forward in New York, and
    Hillary's task force has been very much influenced by the New York
    reforms.
        We believe that a lot of the problems of America can be solved by
    cities and States if the National Government will have targeted
    investment and then will give people their head to do what they know
    needs to be done. You'd be amazed how many programs have quite a bit of
    money in them, but most of the money, or a great deal of the money,
    never reaches the ultimate beneficiaries at the State or the city level
    because of all the layers in between. You'd be amazed. I was in Chicago
    a couple of days ago, and the Mayor of Chicago told me that there are
    one or two programs that his staff wouldn't even let him try to get for
    Chicago because the administrative hassle of securing the funds was so
    great. We're going to change that. We're going to have a new and
    different and vibrant process that trusts the people of New York and
    their elected leaders, and the State of New York and their elected
    leaders, and people throughout the country to have real innovation in
    the same way that I think we want in the private sector in the United
    States. But finally, let me say--[applause]--the Mayor, the lone
    clapper.
        We also have proposed to change the relationship between the
    Government and the private sector in a tax reform package that Senator
    Moynihan will soon take up if it passes the House, and I hope it does.
    There will be significant incentives for businesses, large and small, to
    increase their investment in this country and to be rewarded for it. We
    will have initiatives that will empower neighborhoods and give people
    significant incentives to go into neighborhoods in small towns and rural
    areas and in big cities to put real investment there to create real
    jobs. We'll provide people real incentives to end welfare as we know it
    and require them to move forward with that. We will do things that are
    different from what either party has done before to try to empower
    people to live up to their God-given potential in a new and different
    partnership between the United States and people in the private sector.
        When you strip it all away, there's still one more tough question
    that has to be answered. If you want the deficit brought down, we have
    to face the fact that in 1981, taxes were cut by 6 percent of the
    national income of this country, twice what President Reagan originally
    recommended when he was elected President. And that gap has never been
    made up.
        David Stockman, President Reagan's Budget Director, has an interview
    in a magazine called the New Politics Quarterly this month in which he
    says, ``I don't agree with all of President Clinton's spending plan, but
    at least he's telling the truth. You cannot fix the deficit without a
    tax program, because we cut taxes more than twice as much as we proposed
    to do it when we came in. We got into a bidding war. We got carried
    away. What we did was irresponsible. And then all the politicians since
    then never had the stomach to tell the American people the truth. And it
    was just more fun to cut taxes and pass out money than to do the
    reverse.'' Now, that is the hard truth.
        I really believed in the campaign that we could raise revenues
    modestly on upper income people, close some corporate tax loopholes, and
    do some other things, do the spending cuts, and bring the deficit down.
    After I was elected, the Government announced that the annual deficit
    was going to be $50 billion a year bigger

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    in 3 of the 4 years that I would serve as President, $50 billion a year
    bigger, and $15 billion bigger in the fourth year. And it became clear
    to me that under those circumstances we could not begin by cutting
    anyone's taxes; that we ought to have a responsible, balanced energy tax
    and that most of the tax burden should be borne by those who had their
    taxes lowered in the eighties while their incomes went up, people in
    higher income groups; but that we ought to have a balanced and fair
    package, not to ``soak the rich'' but to share the burden, to try to say
    this is our job.
        And so I say to you, yes, I will put this money in a trust fund, but
    that does not mean the money does not have to be paid. If you want the
    interest rates to stay down, if you want the profits of lower interest
    rates, you must undergo the pain of the spending cuts and the tax
    increases, because that's the only way to really bring the deficit down.
        Now, the question is, are we going to do this, or not? Are we going
    to do this, or not?
        Audience members. Yes, we are.
        The President. I think we are.
        There are some who say no. Today in Washington there are 80,000
    lobbyists. It's a growth industry. I'll guarantee you one thing, I
    created some jobs since I got to be President.
        But the Congress is now dealing with two bills which will help to
    reform the way our politics work. They just passed the motor voter bill,
    something young people of America really wanted and which I'm very proud
    of, which I hope and pray will continue the trend of increased voter
    participation. But now Congress is dealing with two tough other issues.
    The United States Senate passed last week a bill--finally, believe it or
    not, in the year 1993--finally requiring everybody who actually lobbies
    them to register as a lobbyist and requiring that the gifts that they
    give to Members of Congress or the expenditures they make on trips or
    whatever all be reported. Believe it or not, they weren't done before
    now. The Congress passed that with only two dissenting votes--the Senate
    did. The bill is now going to the House.
        In addition to that, last Friday I proposed a comprehensive campaign
    finance reform law which will lower the cost of congressional campaigns,
    reduce the influence of political action committees, and open the
    airwaves to challengers as well as incumbents for more honest debate. It
    is a tough, good bill. If we can pass these bills, they will help to
    open the system too.
        People are full of hope now. We've received in 3\1/2\ months more
    letters than the White House got in all of 1992. If you haven't gotten
    yours answered, I hope you'll be patient. We've got over 200 volunteers
    coming in just to open the mail and trying to sort it and read it. But
    it is a wonderful reaffirmation, the critical and the complimentary and
    support letters alike, that Americans really want their system to
    respond to them again. And we must do that.
        If the first issue is the economy--or in the vernacular of my old
    campaign sign, ``It's the economy, stupid''--that means deficit
    reduction, investment for jobs and technology, and education. It means
    controlling health care costs and dealing with that crisis. I should
    tell you that no matter how much we reduce the deficit in the next 5
    years, it will go right back up again if we don't address health care
    costs, because that's the fastest growing part of the Federal budget
    deficit.
        It must include all these things, as well as political reform and
    changing the way Government works. And change is hard. It doesn't happen
    overnight. You have to do what Lincoln did: Ask hard questions, give
    strong answers, and hope the American people rally.
        We can move forward. We can have a whole new partnership in this
    country, one that goes beyond the things that normally divide us, beyond
    the dividing lines of party, of race, of gender, of region, of income.
    We can do that. Ideas and energy can replace drift and delay. We can
    grow in wealth and wisdom and liberty.
        But this requires more than good ideas and more than political
    energy. If I may say, if you don't remember anything else I say, I hope
    you'll remember this: The human condition in the end changes by faith.
    And faith cannot be held in your hand. The Scripture that I carry to my
    place of worship every Sunday says, ``Faith is the assurance of things
    hoped for, the conviction of things unseen.'' But make no mistake about
    it, it is by far the most powerful force that can ever be mustered in
    the cause of change.
        Today we are seeing too much cynicism and too little faith, an
    obsession with the moment, an obsession with the politicians and their
    wins and their losses, an obsession with blame and division, an
    obsession with paralysis, an obsession with always pointing out the pain
    of change

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    and never embracing its promise. Without faith, in the end we always
    wind up resorting to the easy and the immediate: Tax the other guy; cut
    that other program, not mine; wait for somebody to deliver the goods to
    me, or wait for it not to happen till I can blame somebody else for what
    didn't.
        But faith changes all that. Lincoln's cause in 1860 was to keep our
    house from dividing. Our cause today is to put our house in order. If
    ``a house divided against itself cannot stand,'' surely a house in
    disarray will not provide shelter and a home. Surely a house where
    problems are denied or blamed on someone else in the next room can never
    be a home for America.
        To preserve the American dream in our time and for your future, yes,
    our leaders must ask tough questions and give strong answers. But people
    must rally to the cause of change with faith. We have to believe again,
    believe through the ``frustrations and the difficulties of the moment,''
    as Martin Luther King characterized them, believe through the inevitable
    rocks in the road to the ends of the journey. We must believe through
    the smallness and the spite that conflict always brings out in all of
    us. We must believe through that, to the spirit and generosity and
    courage that is America at its essence.
        Mr. Lincoln closed his Cooper Union speech with the following words:
    ``Let us have faith that right makes might, and in that faith, let us to
    the end dare to do our duty as we understand it.'' My fellow Americans,
    our clear duty is to revive the American dream and restore the American
    economy. And for as long as it takes, with energy and joy and humility,
    let us dare to do that duty.
        Thank you very much.

    Note: The President spoke at 3:50 p.m. at the college. In his remarks he
    referred to Jay Iselin, Cooper Union president; Mayor David Dinkins of
    New York City; and Senator Daniel Patrick Moynihan, Senate Finance
    Committee chairman.